November 2000

Industry News

RentX Industries, headquartered in Denver, recently named former TruServ executive Ed Detrich director of operations for the chain’s 76 company-owned rental stores.

Detrich had most recently served as national sales manager for TruServ Corp., following several years as a rental sales and support specialist for the company. Before joining TruServ, he was employed by the U-Haul Co. of Delaware Valley and the U-Haul Co. of Central Pennsylvania for 25 years. He served as president of both operations for 18 years. 

Detrich’s duties for RentX will include responsibility for acquisitions, management, growth and overall profitability. Detrich will work with and visit store locations across the country from a central location in Louisville, Ky.

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The company also has promoted Tony Sabo to the position of director of purchasing and marketing. 

Sabo is an 18-year rental industry veteran and had served as RentX’s national purchasing manager since February. Previously, he worked as a senior buyer for TruServ Corp. for seven years and has been employed by Taylor Rental Corp. and U-Haul Corp.

Sabo’s new duties include coordinating vendor programs with the industry’s leading suppliers, consolidating the company’s current supplier base into a preferred vendor program and shaping RentX’s marketing efforts.

RentX was formed in March 1996 to pursue a national consolidation and growth strategy through the acquisition of existing rental businesses. RentX has stores in Washington, Idaho, California, Colorado, New Mexico, Oklahoma, Arkansas, Texas, Virginia, Michigan, Tennessee, South Carolina and Georgia

Ahern to partner with Payless Cashways

Ahern Rentals, headquartered in Las Vegas, recently entered into an agreement to open and manage facilities in Payless Cashways’ existing retail sites. 

Payless Cashways, a full-line building materials and finishing products company, is headquartered in Kansas City, Mo.

Larger equipment will be stored in Payless Cashways stores’ lumberyards and tools will be available inside the stores’ showrooms. Customers can rent equipment at the Ahern Rentals counter while they are at the stores purchasing material for their projects.

Ahern will supply customers with small- to medium-size tools, including power tools, saws, compressors, paint sprayers and lawn and garden items. The company also will offer larger construction equipment such as skid-steer loaders, trenchers, high-lift cranes and excavators. Jobsite delivery will be available.

“Over the last 18 months, we have made significant progress toward our goal of becoming a one-stop shop for our pro customers,” said Millard E. Barron, president and CEO of Payless Cashways. 

“In response to customer requests, we have added work apparel and vehicle maintenance materials to our product mix. Now that we are offering this important, value-added service to our proposition, we are one step closer to that goal.

“Ahern Rentals has been in operation for 47 years. They are leaders in this industry, and we are pleased to be working with them on this initiative.”

“Teaming up with Payless Cashways is a logical step for us,” said Don F. Ahern, president of Ahern Rentals. “We serve the same customer segment, so it makes sense for us to partner, bringing all the material needed to complete home maintenance, repair, remodeling and building projects together at one location.”

Ahern Rentals will move one of its current facilities in the Las Vegas area to a local Payless Cashways store. Ahern Rentals plans to have the location up and running soon. Both companies will work together to roll this program out to other Payless Cashways stores, according to a company release.

Payless Cashways operates 150 stores in 18 states located in the Midwest, Southwest, Pacific Coast and Rocky Mountain areas. The company serves the professional builder, remodel and repair contractor, institutional buyer and project-oriented consumer. The stores operate under the names Payless Cashways, Furrow, Lumberjack, Hugh M. Woods, Knox Lumber and Contractor Supply. 

Prime opens fifth location in Mexico

Prime Service, Houston, a member of the Atlas Copco Group, recently opened its fifth location in Mexico. The Monclova, Mexico, store opened Aug. 15 and will be managed by Oscar Cristo Zamarripa de los Santos. 

“We are very pleased with the Monclova opening, which is a nice complement to our four other locations of Tampico/Altamira, Guadalajara, Mexico City and Monterrey,” said Tom Bennett, chairman and CEO. “Prime plans to further increase and expand our coverage in this rapidly growing market in Mexico.”

The company operates its rental network throughout the United States, Canada, Mexico and Puerto Rico. 

United listed on S&P Midcap 400 Index

United Rentals, Greenwich, Conn., replaced Buffets, an operator of buffet-style restaurants based in Eagan, Minn., on the Standard & Poor’s MidCap 400 Index after the close of trading on Sept. 28, according to a release from Standard & Poor’s. The inclusion of United Rentals in the index reflects the growing presence and prominence of equipment rental in the U.S. economy. The company will be added to the S&P MidCap 400 Services (Commercial & Consumer) industry group.

For the six months ended June 2000, United revenues rose 46 percent, to $1.31 billion. Net income rose 53 percent to $64.6 million.

Revenues reflect increased rental transactions and the expansion of product lines, and net income reflects higher margins on rental equipment and lower S/G/A as a percentage of sales, the company said.

United’s capitalization has been reported as $1.43 billion, and it has 70.3 million common shares outstanding. The company earned $1.78 per share in the trailing 12 months and $0.51 in the most recent quarter. P/E in the trailing 12 months is 11.43. The company earned $886.6 million (EBITDA) on sales of $2.65 billion in the last 12 months.

United operates more than 700 branches in 47 states, seven Canadian provinces and Mexico. The company offers more than 600 types of equipment to a variety of customers, including construction and industrial companies, manufacturers, utilities, municipalities and homeowners. 

obituaries
William Berry

William Berry, president and a director of United Rentals, Greenwich, Conn., died following a long battle with cancer. He was 48.

Berry had spent more than 30 years in the equipment rental industry, including serving as president, chief executive officer and a director of U.S. Rentals. He was instrumental in the June 1998 merger between United Rentals and U.S. Rentals, and after the merger served as president of United Rentals until he went on medical leave in February 1999.

“Our industry has lost an outstanding business leader as well as an individual with tremendous honesty and integrity,” said Bradley Jacobs, United chairman and CEO. “Bill always kept his eye on the human side of the business, and his contributions to the success of United Rentals were immeasurable.”

“Bill was recognized as one of the most experienced and knowledgeable executives in the equipment rental business,” said Wayland Hicks, United vice chairman and chief operating officer. “He was an outstanding role model for people in the industry and understood that a business can succeed only when its employees are treated with respect and dignity.”

Berry held several operational positions in the rental industry. He began his equipment rental career at age 13 and was named president and CEO of U.S. Rentals at age 34. Berry created a number of programs including profit-sharing for all branch employees. He also helped grow U.S. Rentals from 39 locations and $45 million in revenues in 1986 to 131 locations and about $600 million in revenues in 1998.

He is survived by his wife, Susan; sons Scott and David and a daughter, Ann. 

Rental Service Corp. acquires 11 companies in U.S. and Canada

 Rental Service Corp., Scottsdale, Ariz., a member of the Atlas Copco Group, recently acquired 11 companies with 19 locations throughout North America and Canada. 

The company acquired Allied Equipment (Lethbridge), Lethbridge, Alberta, Canada; Bill’s Equipment Rentals, Medicine Hat, Alberta, Canada; two Colorado West Development Corp. d/b/a Bob’s Rental locations in Montrose and Gunnison, Colo.; two E-Z Rental & Equipment Sales locations in Wausau and Rhinelander, Wis.; Five-Star Rental, Elizabeth City, N.C.; R & J Rentals, North Platte, Neb.; Randy K Enterprises, d/b/a Kessler’s Lift Service, Millerstown, Pa.; Rental Plus with two locations in Elizabethtown, Ky., one in Lebanon, Ky., and one in Danville, Ky.; Rental Showcase, Rocky Mount, N.C.; TJR Marketing d/b/a TJR Rentals and White Hall Rental, in Berea, Richmond, London and Corbin, Ky. These companies have a combined trailing 12 month revenue of $10 million.

The acquisitions increase Rental Service Corp.’s coverage to 32 states and Canada. “We continue to make these strategic acquisitions, which further extends our operating platform throughout North America,” said Doug Waugaman, president and chief operating officer. 

Atlas Copco is an international group of industrial companies headquartered in Stockholm, Sweden. In 1999, the group had revenues of about $4.2 billion (USD), 97 percent of which were generated outside Sweden. The company employs more than 26,000 people.  

NationsRent earns $5 million in 
second quarter

For the second quarter ended June 30, NationsRent, Fort Lauderdale, Fla., reported total revenue of $170.5 million, a 30.8 percent increase from the second quarter of 1999. Revenue from equipment rentals in-creased 46.0 percent to $141.5 million and represented 83.0 percent of total revenue for the quarter, while sales of new and used equipment, parts, service and supplies represented 17 percent. Internal growth of rental revenue for the quarter was 20 percent, reflecting the benefits of the company’s focused expansion in its existing markets.

Operating income for the second quarter was $32.4 million or 19 percent of revenue compared with $27.5 million or 21.1 percent of revenue for the second quarter of 1999. Net income for the quarter was $5 million or $0.07 per diluted share compared with $0.12 cents per diluted share from operations in the second quarter of 1999. 

For the six months ended June 30, 2000, total revenue was $312.7 million, a 34.4 percent increase from the same period in 1999. Revenue from equipment rentals increased 46.4 percent to $251.9 million and represented 80.5 percent of total revenue for the first six months of 2000, while sales of new and used equipment, parts, service and supplies accounted for 19.5 percent. Operating income for the six months was $60.6 million or 19.4 percent of revenue compared with $47.1 million or 20.2 percent for the first six months of 1999. Net income for the first six months was $8.3 million or $0.11 cents per diluted share compared with $0.20 cents per diluted shares from operations for the first half of 1999.