Multi-location Rental, Sales & Service Company in Major US Oilfield
Heavy Equipment, focused on Energy & Construction Industries
As of TTM period ending 09/30/14:
Total Revenue: $49 million (approx.)
EBITDA: $14.7 million (approx.) or 30% of total revenues (no adjustments)
Multi-location equipment sales, service and rental company catering to one of largest US oilfields. Company focus on energy related construction customers; specifically contractors providing construction services to major oil producers in the midstream sector (pipelines, production facilities) and upstream sectors (drilling, completion). Some exposure to general construction, agriculture and other sectors. Company's rental segment demonstrating impressive growth trends month over month. Growth opportunities exist with increased rental focus & incorporation of additional product lines for rental.
Total revenues nearing $50 million: rental & related 43%, new & used equipment sales 37%, high margin parts and service income 20%. Rental is primary focus for current and future growth with average monthly revenue up 37% since 2012 and 17% since 2013. Ownership believes Company's rental to grow organically 20-25% in 2015 with existing business mix; opportunity in rental sector to grow incrementally beyond with further diversification of rental offerings.
Rental fleet at cost of $49 million, with average age of 27 months. Rental focus on excavators, 4WD backhoes, wheel loaders, dozers, smooth & pad foot rollers. Secondary offerings include motor graders, skid steers, forklifts, trenchers, aerial & other construction related units. Significant opportunity to increase rental fleet through current primary offering as well as increased focus on secondary offerings. Rental operations 80% devoted to energy sector, with 20% to general construction.
Company is authorized dealer/distributor for four major lines of equipment, as well as a number of secondary lines, with a focus on construction equipment. New equipment inventory of $6.7MM, used equipment inventory of $1.1MM, at cost. Equipment parts, service and sales, though construction focused, includes agricultural and other diversified non-construction components.
Construction customers with heavy focus on energy: pipeline, transport, production (50%) drilling, completion, pad site, roads (30%), and non-energy general construction (20%). Relatively low customer concentration; some exposure (23% of total revenues) to agricultural related clients and other diversified offerings.
Four very strategic locations within trade area to cover all geographies within basin. Loyal staff of 89 employees, including strong and dedicated operational and sales teams to remain with the Company. Company history spanning over 36 years. Trade area is one of nation's largest oil and agricultural hubs with strong presence in energy, ag and general construction industries. Ownership wishes to exit business in order to focus on other non-competing investment. Sale can be structured as purchase of assets.