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Forum List » Business News and Headlines SEC Filings, Earing Reports, Press Releases  
Electro Rent Corp. Reports Operating Results (10-K)
Posted by: gurufocus (IP Logged)
Date: August 13, 2012 07:14AM
Electro Rent Corp. (ELRC) filed Annual Report for the period ended 2012-05-31. Highlight of Business Operations:Our net income includes bargain purchase gains, net of deferred taxes, of $3.4 million and $0.2 million for fiscal 2012 and 2011, respectively, as a result of our acquisitions of EMT and Telogy, respectively. Our operating profit modestly decreased, as growth in our rental revenues and sales of new equipment were offset by lower used equipment sales and an increase in depreciation expense of $5.7 million, or 12.0%, as we have invested in additional rental equipment to support our growth, and an increase in selling, general and administrative expenses of $6.5 million, or 11.4%, primarily related to the broadening and strengthening of our sales organization in support of our resale channel, higher rental demand, and future growth opportunities.Total Revenues: Total revenues for fiscal 2012 and 2011 were $248.6 million and $228.7 million, respectively. The 8.7% increase in total revenues was due to a 9.9% increase in rental and lease revenues and a 7.4% increase in sales of equipment and other revenues. Selling, General and Administrative Expenses: Selling, general and administrative expenses increased 11.4% to $64.0 million in fiscal 2012 compared to $57.4 million in fiscal 2011. As a percentage of total revenues, selling, general and administrative expenses increased modestly to 25.7% in fiscal 2012 from 25.1% in fiscal 2011. Our selling, general and administrative expenses increased primarily due to the broadening and strengthening of our sales organization in support of our resale channel and higher rental demand. Total Revenues: Total revenues for fiscal 2011 and 2010 were $228.7 million and $145.9 million, respectively. The 56.8% increase in total revenues was due to a 25.3% increase in rental and lease revenues and a 114.2% increase in sales of equipment and other revenues. Selling, General and Administrative Expenses: Selling, general and administrative expenses increased 23.6% to $57.4 million in fiscal 2011 compared to $46.4 million in fiscal 2010. Our selling, general and administrative expenses increased primarily due to additional sales and support staff in connection with our resale channel. As a percentage of total revenues, selling, general and administrative expenses decreased to 25.1% in fiscal 2011 from 31.8% in fiscal 2010, due to the increase in total revenues.
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