H&E Equipment Services Reports First Quarter 2012 Results

H&E Equipment Services Inc., Baton Rouge, La., reported its first quarter results this week, which ended March 31, 2012. Highlights of the quarter included increased revenues of 28.7 percent to $173.7 million versus $134.9 million a year ago and increased net income to $4.0 million in the first quarter, compared to a net loss of $6.5 million a year ago.

 

Rental revenues increased 23 percent, or $11.2 million, to $59.6 million on higher time utilization, rates, and a larger fleet compared to a year ago. Rental gross margins increased to 42.4 percent in the first quarter compared to 35.4 percent a year ago. Average time utilization (based on original equipment cost) increased to 69.5 percent compared to 64.9 percent a year ago. Average time utilization (based on units available for rent) increased to 65.8 percent, compared to 61 percent last year. Average rental rates increased 10.1 percent compared to a year ago and 1.5 percent compared to the fourth quarter of 2011. Rental fleet age at March 31, 2012, was 42.8 months compared to an industry age of 52 months.

 

New equipment sales increased to $41.0 million, reflecting a 40.5 percent increase from a year ago due to higher demand in new crane sales.  

 

EBITDA increased 82.0 percent to $38.7 million from $21.3 million a year ago, yielding a margin of 22.3 percent compared to 15.8 percent of revenues a year ago.

 

John Engquist, H&E Equipment Services’ president and CEO, said: “The momentum in our business continued into the first quarter resulting in strong performance with growth in every segment of our business compared to a year ago. The construction environment continues to improve. and we experienced elevated demand across all the regions we serve, especially in our Gulf Coast and Intermountain regions where energy related activity remains especially high. Our rental revenues were particularly strong, growing 23.0 percent from a year ago with continued improvement in rates and utilization. We are pleased that our distribution business generated solid growth of 32.2 percent over last year’s results. We continue to benefit from our exposure in high growth industrial segments and improving market conditions, and as a result, both revenue and EBITDA grew significantly, at 28.7 percent and 82.0 percent, respectively."