by ForConstructionPros.com, 05.04.2010

Three of the nation's top equipment rental chains have reported significant revenue decreases for the first quarter of 2010. RSC is down 26%, United Rentals has dropped 20% and Hertz saw a decrease of 15.1%. Despite the numbers, corporate leaders express hope for future growth in the near term.

In a release on April 22, RSC Holdings noted that total revenue was $261 million and rental revenue was $222 million, compared with $351 million and $287 million, respectively, for the same period last year. The company reported a first quarter net loss of $38 million, or $0.37 per diluted share, compared with a net loss of $14 million, or $0.13 per diluted share, for the first quarter 2009.

Adjusted EBITDA was $66 million for the quarter, compared with $108 million for the same period last year. Adjusted EBITDA margin was 25.3% for the first quarter, compared with 30.6% in 2009. The change in profitability primarily reflects a decline in business activity and the resulting negative impact on volume and pricing, partially offset by the savings realized from the company's cost-cutting initiatives.

United Rentals' financial results for the first quarter 2010 show total revenue was $478 million and rental revenue was $380 million, compared with $594 million and $448 million, respectively, for the same period last year..........read more