Essex Rental Corp.

CIK:0001373988|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Equipment rentals	$ 14,068	$ 13,640	$ 38,211	$ 37,202
Transportation	1,743	2,056	4,917	6,021
Equipment repairs and maintenance	2,970	2,936	9,957	8,219
TOTAL REVENUES	24,090	29,581	71,371	75,176
Salaries, payroll taxes and benefits	3,155	3,021	9,132	8,399
Depreciation	4,473	4,538	13,385	13,755
Transportation	1,519	2,082	4,282	5,906
Equipment repairs and maintenance	2,738	3,234	8,848	8,886
Yard operating expenses	863	999	2,584	2,601
TOTAL COST OF REVENUES	17,166	23,064	53,528	59,204
GROSS PROFIT	6,924	6,517	17,843	15,972
Selling, general and administrative expenses	6,526	5,939	19,574	17,686
Impairment - rental equipment, held for sale	0	771	0	771
Other depreciation and amortization	170	195	521	708
INCOME (LOSS) FROM OPERATIONS	228	(388)	(2,252)	(3,193)
Other income (expense)	2	(3)	3	(1)
Interest expense	(4,921)	(3,669)	(12,710)	(10,243)
Foreign currency exchange losses	(306)	(172)	(557)	(225)
TOTAL OTHER INCOME (EXPENSES)	(5,225)	(3,844)	(13,264)	(10,469)
LOSS BEFORE INCOME TAXES	(4,997)	(4,232)	(15,516)	(13,662)
BENEFIT FOR INCOME TAXES	(2,034)	(1,834)	(6,146)	(5,354)
NET LOSS	$ (2,963)	$ (2,398)	$ (9,370)	$ (8,308)
Basic (shares)	25,047,223	24,813,619	24,969,196	24,801,537
Diluted (shares)	25,047,223	24,813,619	24,969,196	24,801,537
Basic earnings (loss) per share	$ (0.12)	$ (0.10)	$ (0.38)	$ (0.33)
Diluted earnings (loss) per share	$ (0.12)	$ (0.10)	$ (0.38)	$ (0.33)
Retail Spare Parts Inventory, Net
Sales Revenue, Goods, Net	$ 1,689	$ 2,165	$ 5,708	$ 6,707
Cost of Goods Sold	1,348	1,691	4,586	5,287
Property Subject to Operating Lease
Sales Revenue, Goods, Net	3,301	6,024	6,137	10,089
Cost of Goods Sold	2,781	5,074	4,700	8,253
Retail Equipment Inventory
Sales Revenue, Goods, Net	319	2,760	6,441	6,938
Cost of Goods Sold	$ 289	$ 2,425	$ 6,011	$ 6,117

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Net loss	$ (9,370)	$ (8,308)
Depreciation and amortization of tangible assets	13,652	14,210
Amortization of loan acquisition costs and other intangibles	2,025	2,094
Impairment - rental equipment, held for sale	0	771
Deferred income taxes	(6,129)	(5,392)
Share based compensation expense	412	296
Accounts receivable, net	101	(3,311)
Other receivables	26	307
Prepaid expenses and other assets	(220)	207
Spare parts inventory	(125)	(621)
Accounts payable and accrued expenses	1,746	303
Unearned rental revenue	(172)	294
Customer deposits	278	(55)
Total change in operating assets and liabilities	(2,883)	(8,164)
NET CASH USED IN OPERATING ACTIVITIES	(3,730)	(6,329)
Purchases of property and equipment	(333)	(554)
Accounts receivable from rental equipment sales	461	694
NET CASH PROVIDED BY INVESTING ACTIVITIES	5,780	3,977
Proceeds from revolving credit facilities	74,079	83,168
Payments on revolving credit facilities	(74,579)	(105,415)
Proceeds from term loans	0	30,000
Payments on term loans	(1,500)	(1,500)
Proceeds from purchase money security interest debt	1,171	0
Payments on purchase money security interest debt	(1,559)	(847)
Payments on promissory notes	0	(2,000)
Payments on capital lease obligation	(42)	(10)
Employer repurchase of shares to satisfy minimum tax withholding	(13)	(24)
Payments for loan acquisition costs	0	(1,238)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES	(2,443)	2,134
Effect of exchange rate changes on cash and cash equivalents	587	292
NET INCREASE IN CASH AND CASH EQUIVALENTS	194	74
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	1,087	1,349
CASH AND CASH EQUIVALENTS, END OF PERIOD	1,281	1,423
Board of Directors fees paid in common stock	228	150
Equipment obtained through capital lease	245	215
Equipment purchased directly through short-term debt obligation	56	2,580
Cash paid for interest	10,164	7,975
Cash paid for income taxes, net	(62)	127
Retail Equipment Inventory
Retail equipment inventory	(4,517)	(5,288)
Property Subject to Operating Lease
Gain on sale of rental equipment	(1,437)	(1,836)
Purchases of property and equipment	(485)	(6,252)
Proceeds from sale of rental equipment	$ 6,137	$ 10,089

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Cash and cash equivalents	$ 1,281	$ 1,087
Accounts receivable, net of allowances for doubtful accounts and credit memos of $3,886 and $3,019, respectively	16,419	16,981
Other receivables	1,674	1,700
Deferred tax assets	3,703	3,504
Prepaid expenses and other assets	1,736	1,516
TOTAL CURRENT ASSETS	42,865	39,333
Property and equipment, net	4,642	4,613
Spare parts inventory, net	3,898	3,816
Identifiable finite lived intangibles, net	484	735
Goodwill	1,796	1,796
Loan acquisition costs, net	3,354	5,132
TOTAL ASSETS	310,872	325,890
Accounts payable	4,979	4,966
Accrued employee compensation and benefits	1,897	2,008
Accrued taxes	3,529	3,694
Accrued interest	1,639	870
Accrued other expenses	796	1,031
Unearned rental revenue	1,677	1,849
Customer deposits	628	350
Revolving credit facilities - short-term	141,941	142,709
Term loans - short-term	32,349	2,000
Promissory notes - short-term	1,655	0
Purchase money security interest debt - short-term	1,422	1,655
Capital lease obligation - short-term	78	35
TOTAL CURRENT LIABILITIES	192,590	161,167
Revolving credit facility	2,049	1,781
Term loans	33,000	64,500
Promissory notes	0	1,655
Purchase money security interest debt	7,451	6,652
Deferred tax liabilities	28,619	34,487
Capital lease obligation	323	162
TOTAL LONG-TERM LIABILITIES	71,442	109,237
TOTAL LIABILITIES	$ 264,032	$ 270,404
Commitments and contingencies
Preferred stock, $.0001 par value, Authorized 1,000,000 shares, none issued	$ 0	$ 0
Common stock, $.0001 par value, Authorized 40,000,000 shares; issued and outstanding 25,186,791 shares at September 30, 2015 and 24,824,614 shares at December 31, 2014	3	2
Paid in capital	127,136	126,510
Accumulated deficit	(80,447)	(71,077)
Accumulated other comprehensive income	148	51
TOTAL STOCKHOLDERS' EQUITY	46,840	55,486
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	310,872	325,890
Property Subject to Operating Lease
Rental equipment, held for sale	0	790
Property and equipment, net	253,833	270,465
Retail Spare Parts Inventory, Net
Retail equipment	1,741	1,725
Retail Equipment Inventory
Retail equipment	$ 16,311	$ 12,030