Q1 2024 Ashtead Group PLC Earnings Call Transcript
Key Points
- Rental revenue in the US grew by 6% over last year, driven by volume and rate improvements.
- Canadian business saw a 16% increase in rental revenue, benefiting from volume and rate improvements.
- UK rental revenue increased by 6%, aligning with the company's strategy for operational efficiency and long-term returns.
- EBITDA margin in the US was 49%, reflecting strong operational performance.
- The company reaffirmed its guidance for revenue, capital expenditure, and free cash flow, indicating confidence in future performance.
- Interest expense increased significantly, impacting adjusted earnings per share.
- Total revenue growth was only 1%, reflecting lower levels of used equipment sales.
- Operating profit was affected by a high depreciation charge on a larger fleet.
- The film and TV business in Canada has not yet recovered to pre-strike levels.
- The UK business needs further progress on rental rates to achieve desired financial outcomes.
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After interest expense of 144% compared with one adjusted earnings per share were $0.974 for the quarter. Turning now to the businesses. Slide 7 shows the performance in the US. Rental revenue for the quarter grew by 6% over last year, which higher. This has been driven by combination volume and rate improvement in overall healthy end markets.
The total revenue increased 1% reflects lower levels of used equipment sales in the year when we took advantage of improving fleet deliveries and strong second hand market to catch up on deferred. Despite the third, actual components of SunBelt for data is performance. As we look to leverage the infrastructure and scale we developed during three data and improve margins.
This, combined with our folks on the cost base and lowest full erection and dismantling
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