United Leases 2Q rental revenues up 20.2%; acquisitions of BlueLine, BakerCorp cited

In asserting its 2Q outcomes, United Leases says rental revenues elevated by 20.2 p.c in contrast with the identical interval in 2018, an organization report excessive for the interval. The corporate attributes a lot of this enhance to its acquisitions of BlueLine and BakerCorp.

“The market outlook for the second half of 2019 stays optimistic primarily based on suggestions from our prospects and the sphere,” says Matthew Flannery, CEO of United Leases. “The a number of integrations we’ve underway will proceed to realize traction within the again a part of the yr.”

Supply: United Leases

Even with total optimistic outcomes, Flannery says United has “barely slower than anticipated tempo” for integrating its BlueLine acquisition and skilled “traditionally dangerous climate in a number of key areas.” Because of this, the corporate has “trimmed the higher ends on whole income and adjusted EBITDA by roughly  1 p.c and CapEx by $150 million, whereas elevating our free money circulate expectation,” he says. “We stay assured within the well being of the cycle and are well-positioned to serve our prospects with the strongest service providing in our historical past.”

Different highlights:

Fleet productiveness: “Second quarter fleet productiveness decreased 3.1 p.c year-over-year, primarily because of the affect of the BakerCorp and BlueLine acquisitions. On a professional forma foundation, fleet productiveness elevated zero.7 p.c, reflecting enhancements in rental charges and fleet combine, partially offset by decrease time utilization, primarily attributable to acquisition integration actions and adversarial climate.”

Used Gear: “The corporate generated $197 million of proceeds from used gear gross sales within the second quarter at a GAAP gross margin of 41.1 p.c and an adjusted gross margin of 49.2 p.c; this compares with $157 million at a GAAP gross margin of 41.4 p.c and an adjusted gross margin of 51.6 p.c for a similar interval final yr.”