RSC revenue takes 26% hit
Revenue took a 26 percent dive to $261 million at equipment rental firm RSC Holdings Inc. during the first quarter.
The Scottsdale company (NYSE:RRR) reported a first-quarter net loss of $38 million, or 37 cents per diluted share, compared with a loss of $14 million, or 13 cents, for first-quarter 2009. The bottom line primarily reflects a decline in business activity and the resulting impact on volume and pricing, although that impact was partially offset by cost-cutting initiatives, officials said in announcing financials Thursday.
“While operating in a still-challenging economy, we drove utilization up with momentum building throughout the quarter. Our industrial diversification strategy and transition to playing offense enabled us to meet or exceed our first quarter revenue, adjusted EBITDA, and free cash flow expectations,” said CEO Erik Olsson in a statement. “To build on this momentum, we continued to position the company for the future with five new location openings, selective investment in our rental fleet and further investment in our sales and marketing organization with an emphasis on key account management.”