ESSEX RENTAL CORP. PRESENTS
2008 FOURTH QUARTER AND YEAR END RESULTS FOR ITS OPERATING SUBSIDIARY, ESSEX
CRANE RENTAL CORP.
Company Expects to Generate
$0.90 - $1.20 After-Tax Free Cash Flow Per Share in 2009
BUFFALO GROVE, IL – March 30,
2009 – Essex Rental Corp.
(OTCBB: HYDQ; HYDQW; HYDQU) today presents results for the fourth quarter
and year ended December 31, 2008 for its operating subsidiary, Essex Crane
Rental Corp. (“Essex Crane”). On October 31, 2008, Essex Rental Corp.
(formerly known as Hyde Park Acquisition Corp.) (“Essex Rental”) completed its
acquisition of privately held Essex Holdings LLC and its operating subsidiary,
Essex Crane. The following results are those of Essex Crane, not of
Essex Rental, and are unaudited. Essex Rental’s audited consolidated
financial results, which include the operations of Essex Crane for only the two
months ended December 31, 2008, are included in Essex Rental’s Form 10-K to be
filed with the Securities and Exchange Commission later today.
Essex Crane Fourth Quarter
2008 Financial Highlights
revenue for the fourth quarter of 2008 rose 16.9% to $15.9 million from
$13.6 million for the fourth quarter of
EBITDA for the fourth quarter of 2008 increased 20.4% to $11.2 million,
(excluding one time expenses of $4.0 million associated with the sale of
the business to Essex Rental) from $9.3 million for the quarter ended
December 31, 2007.
Essex Crane Full Year 2008
revenue for the year ended December 31, 2008 rose 26.6% to $61.8 million
from $48.8 million in the year ended December 31,
Rental EBITDA was $41.8 million (after deducting $2.2 million of pro-forma
public company expenses and excluding one time expenses of $5.2 million
associated with the sale of the business to Essex Rental), which exceeds
management’s revised forecast of $41.1 million for 2008. This
compares to 2007 Rental EBITDA of $32.1 million, and is an increase of
Schad, President and CEO of Essex Rental and Essex Crane, commented, “We are
very pleased with Essex Crane’s results for 2008, which included increased
rental revenues and Rental EBITDA (excluding the one time expenses mentioned
below). We also ended the year in a strong financial position, which
included availability under our credit facility of nearly $40
million. In 2008, we experienced well-balanced demand across the end
markets that we serve and our financial results benefited from our strategy of
transitioning our fleet towards new heavier lift capacity cranes, which generate
higher average monthly rental rates and have higher utilization rates than the
older lower lift capacity cranes that they are replacing. These
heavier lift capacity cranes contribute significantly to our profitability and
cash flow from operations.”
Crane’s total rental related revenue for the fourth quarter of 2008, which
included revenue from rentals, repairs and maintenance, and transportation
services (but excludes used rental equipment sales), rose 10.2% to $19.4 million
from $17.6 million for the fourth quarter of 2007. This increase in
total rental revenue was driven primarily by a 16.9% increase in equipment
rental revenue to $15.9 million for the three months ended December 31, 2008
from $13.6 million in the comparable quarter in 2007.
The following information was filed by Essex Rental Corp. (ESSX) on Monday, March 30, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.