General Finance Corporation (NASDAQ:GFN) Q1 2019 Earnings Conference Call - Final Transcript
Nov 06, 2018 • 11:30 am ET
Welcome to the General Finance Corporation's earnings conference call for the first quarter ended September 30, 2018. Hosting the call today for the Company's corporate offices in Pasadena, California are Mr. Jody Miller, President and CEO; and Mr. Charles Barrantes, EVP and CFO. Today's call is being recorded and will be available for replay beginning at 2:30 p.m. Eastern Time. At this time, all participants have been placed in a listen-only mode and the floor will be opened for your questions following the presentation. (Operator Instructions)
Thank you. It is now my pleasure to turn the call over to Mr. Chris Wilson, VP, General Counsel and Secretary of General Finance Corporation. Please go ahead, Mr. Wilson.
Thank you, operator. (Forward-Looking Cautionary Statements) And now, I'll turn the call over to Jody Miller, President and CEO. Jody, please go ahead.
Thank you, Chris. Good morning and we appreciate you joining us today for our First Quarter Fiscal Year 2019 Conference Call. I will begin with a brief discussion on our operations and then, our CFO, Chuck Barrantes will provide a financial overview and our outlook for the remainder of the fiscal year. Following his remarks, we will open the call up for questions.
We are extremely pleased with our very strong start to the year. The solid momentum that we experienced in fiscal 2018 has continued into our first quarter, where we delivered our highest quarterly level of revenue in the Company's history, our highest quarterly level of adjusted EBITDA in almost four years. Our North American leasing operations continue to see healthy demand in the vast majority of its end markets with total revenues in the first quarter increasing by 42% year-over-year, driven by both higher sales and leasing revenues. Sales revenues nearly doubled in the quarter, mostly due to four large sales which contributed just over $7 million of the $10.6 million year-over-year increase.
Leasing revenues increased by 25%, driven by overall strength in unit growth, higher fleet utilization and higher average rates across virtually all of our product lines during the quarter. Our core portable storage business continues to perform at the high end of our expectations, driven by consistent execution and broad-based demand across the majority of its end markets. Demand for our ground level office and storage containers were particularly strong during the quarter, as these two products lines generated year-over-year rental revenue increases of 33% and 27% respectively.
Pac-Van continues to enhance its brand in both new and existing markets and once again posted a world-class net promoter score of 85 for the quarter and in the last 12 months. In addition to organic growth, we remain focused on building the Pac-Van brand throughout North America by geographically expanding our portable storage container business, particularly into adjacent markets. During the quarter, we completed two acquisitions, one that provided a strong positions in both Bakersfield, California and Miami, Florida, and the other being a new entry into the Baltimore/D.C. market. In our current quarter, we also closed