Neff Corp Releases Positive Q4 and 2015 Full Year Financial Results

Destiny A. Lopez  |

For large projects, as seen in construction, development, and government firms, it is critical to get the right tool for the job. Sometimes, these jobs require heavy duty vehicles, bulldozers, and other tools that can just be picked up or rented from a local hardware store. Neff Corp. (NEFF), a U.S. equipment rental company with over 1,000 employees, has positioned itself as the go-to rental company for professional firms and organizations.

Ranked by Rental Equipment Register magazine as one of the nation's largest equipment rental companies, Neff Corp offers a variety of leading brands of earthmoving moving equipment to various industries.

With construction companies and industrial plants, among other organizations, relying on heavy duty equipment to get the job done, the company provides access to, among others:

  • Excavators
  • Loaders
  • Bulldozers
  • industrial forklifts
  • straight boom lifts
  • Sweepers
  • air equipment
  • generators

Recently, the company revealed their overwhelmingly positive Q4 and 2015 full year results. Highlights from these reports include:

  • Revenues increasing 3.2% to $383.9 million from $372.0 million in 2014.
  • Revenues increasing 1.9% to $106.1 million from $104.1 million in the fourth quarter of 2014.
  • Rental rate growing 1.0% in 2015.
  • Adjusted EBITDA increasing $0.1 million to $186.2 million as compared to $186.1 million in 2014.

“We generated good results in 2015 with record rental revenues and adjusted EBITDA, despite the challenges from the decline in upstream oil and gas demand,” said Graham Hood, CEO of Neff Corporation. “During 2015, we experienced solid growth in our core construction driven end-markets and anticipate further growth in these markets in 2016. Outside of our branches directly affected by oil and gas, our rental revenues were up by 12.7% and our EBITDA was up by 11.4%, for the fourth quarter of 2015 compared to prior year. Our approach for 2016 is to be cautious with our CAPEXspending and to focus on rental demand in our construction end-markets."

Neff Corp has brought 2015 to a close with a strong financial performance. Up 12% today, the company’s highly recognized reputation and vast rental equipment offerings positions them to continue this momentum into 2016. "We have made significant investments in our business over the past couple of years as we strive to create shareholder value,” said Hood. “We believe the multiyear expansion for our industry will continue and we are especially encouraged by the opportunity for our earthmoving fleet to gain market share as more customers are making the decision to rent versus own. We expect to see a decreasing impact from the slowdown in our oil and gas markets and we believe that our diverse end-markets and our focus on high growth geographies will enable us to execute and deliver another year of solid growth in 2016."

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