Wednesday, equipment rental provider RSC Holdings Inc. (RRR), reported that its fourth quarter profit declined from last year, hurt by a 6.7% decrease in revenues. The company also provided revenue guidance for the first quarter.
The Scottsdale, Arizona-based company reported net income for the fourth quarter of $17.7 million or $0.17 per share, down from $38.0 million or $0.36 per share in the same quarter last year.
On average, eight analysts polled by Thomson Reuters expected the company to earn $0.31 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter declined 6.7% to $427 million from $458 million in the comparable quarter last year. Analysts had a revenue consensus of $444.13 million for the quarter.
Rental revenues decreased 6.9% to $371 million from $399 million in last year's fourth quarter. Rental revenues for the quarter accounted for 87% of total revenues.
Rental volume, including the impact of currency, declined 4.8% from the prior year's fourth quarter level.
Rental rates were down 1.7% on a sequential basis from the third quarter and down 2.1% on a year-over-year basis. Same store rental revenues were down 6.1%.
The company's industrial/non-construction revenues were down 1%, compared to the fourth quarter of 2007 and surpassed 50% of total rental revenues. Fleet utilization decreased to 67.8% from 72.0% in the year-ago quarter.
Fourth quarter operating income was $82 million, compared to $120 million in the prior year period.
For the full year, net income was $122.49 million or $1.18 per share, down from $123.25 million or $1.24 per share last year.
Revenues for the full year increased 1.6% to $1.57 billion from $1.54 billion a year ago.
Analysts were looking for earnings of $1.32 per share on revenues of $1.78 billion for fiscal 2008.
Looking forward for the first quarter, the company expects total revenue in the range of $345 million - $355 million.
Analysts currently expect the company to report revenue of $402.14 million for the quarter.
RRR closed Wednesday's regular trading session at $5.91, down $0.37 or 5.89% on volume of 243 thousand shares.
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