H&E Equipment Services, Inc. Reports Third Quarter 2022 Results

H&E Equipment Services, Inc. Reports Third Quarter 2022 Results

BATON ROUGE, La.--(BUSINESS WIRE)--Oct. 27, 2022-- H&E Equipment Services, Inc. (NASDAQ: HEES) (“H&E” or the “Company”) today announced results for the third quarter ended September 30, 2022, citing record results for its rental business segment, meaningful fleet growth and further expansion of its branch network. On October 1, 2021, the Company sold its crane business, (the “Crane Sale”). All results and comparisons for the periods reported are presented on a continuing operations basis with the Crane Sale reported as discontinued operations in certain statements and schedules accompanying this report.

THIRD QUARTER 2022 SUMMARY

  • Revenues increased 17.7% to $324.3 million compared to $275.4 million in the third quarter of 2021.
  • Net income increased 55.2% to $38.4 million compared to $24.7 million in the third quarter of 2021. The effective income tax rate was 25.2% compared to 24.7% in the third quarter of 2021.
  • Adjusted EBITDA totaled $139.4 million, an increase of 24.1% compared to $112.3 million in the third quarter of 2021, resulting in a margin of 43.0% of revenues compared to 40.8% in the third quarter of 2021.
  • Total equipment rental revenues were $253.6 million, an increase of $56.4 million, or 28.6%, compared to $197.2 million in the third quarter of 2021. Rental revenues were $224.1 million, an increase of $47.5 million, or 26.9%, compared to $176.7 million in the third quarter of 2021.
  • Used equipment sales decreased 34.7% to $20.3 million compared to $31.1 million in the third quarter of 2021. Margins improved to 53.7% compared to 37.6% in the third quarter of 2021.
  • New equipment sales totaled $23.5 million, an increase of 21.4% when compared to $19.4 million in the third quarter of 2021.
  • Gross margin improved to 46.8% compared to 41.4% in the third quarter of 2021.
  • Total equipment rental gross margins were 50.5% compared to 45.6% in the third quarter of 2021. Rental gross margins were 55.6% compared to 50.9% over the same period of comparison.
  • Average time utilization (based on original equipment cost) was 73.3% compared to 71.9% in the third quarter of 2021. The Company’s rental fleet, based on original acquisition cost, closed the third quarter of 2022 at approximately $2.1 billion, an increase of $305.4 million, or 16.7%, compared to the third quarter of 2021.
  • Average rental rates increased 10.1% when compared to the third quarter of 2021, and 3.2% when compared to the second quarter of 2022.
  • Dollar utilization improved to 42.7% compared to 38.9% in the third quarter of 2021.
  • Average rental fleet age on September 30, 2022, was 40.6 months compared to an industry average age of 53.0 months.
  • Paid regular quarterly cash dividend of $0.275 per share of common stock.

"A combination of exceptional rental rate appreciation, robust physical fleet utilization and further fleet growth resulted in record performance for our equipment rental segment," stated Brad Barber, chief executive officer of H&E. "We continue to lead the industry in average rental rate improvement, with rates in the third quarter advancing 10.1% when compared to the same quarter in 2021, and 3.2% on a sequential quarterly basis. I believe several factors contribute to our consistent pricing success, including outstanding operational execution and the use of our proprietary “Smart Rates” platform, along with an advantageous mix of equipment, and expanding geographic reach. Also, average physical fleet utilization continued to rise, closing the quarter at 73.3%, or 140 and 10 basis points ahead of the year-ago and sequential quarters, respectively. Finally, our fleet, as measured by original equipment cost (OEC), grew $305.4 million, or 16.7% from the year-ago quarter and $277.0 million, or 14.9%, since the close of 2021. We ended the third quarter with record fleet OEC of more than $2.1 billion while establishing record revenue, gross profit, and gross margin in our equipment rental segment. On a consolidated basis, records were set for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA margin."

Mr. Barber offered an encouraging perspective on the equipment rental industry, explaining, "We expect favorable industry fundamentals to prevail through the close of 2022 and into 2023. This promising outlook is supported by a backlog of projects in the non-residential construction and industrial end markets that continue to sustain strong customer demand. In addition, global supply chains continue to constrict the availability of rental equipment. These factors reinforce a fundamentally sound business environment, leading to solid fleet utilization and favorable pricing trends. As early as 2023, we expect to benefit from the onset of numerous infrastructure projects, as well as other construction projects focused on the expansion of U.S. manufacturing capabilities and renewable energy. Collectively, these programs are expected to provide greater visibility to emerging construction opportunities."

H&E has successfully demonstrated its ability to grow, with 2022 being a record year of expansion for the Company. Concluding, Mr. Barber said, "Our strategic growth and expansion initiatives made exceptional progress in the third quarter. The previously announced acquisition of One Source Equipment Rentals Inc. (One Source), which closed on October 1, 2022, increases our branch network by 10 locations, including an initial presence in Illinois, Indiana and Kentucky. In addition, the consistent progress of our accelerated new location program was evident in the third quarter, with four branches opened during the period. The latest branch openings bring the total of new locations this year to eight. With more openings expected in the fourth quarter, we are confident in achieving our goal of no less than 10 new locations in 2022. In less than two years, we have added 28 locations to our branch network and now operate 120 branches across 29 states."

FINANCIAL DISCUSSION FOR THIRD QUARTER 2022

Revenue

Total revenues improved to $324.3 million, or 17.7%, in the third quarter of 2022 from $275.4 million in the third quarter of 2021. Total equipment rental revenues of $253.6 million improved 28.6% compared to $197.2 million in the third quarter of 2021. Rental revenues of $224.1 million increased 26.9% compared to $176.7 million in the third quarter of 2021. Used equipment sales of $20.3 million decreased 34.7% compared to $31.1 million in the third quarter of 2021. New equipment sales of $23.5 million increased 21.4% compared to $19.4 million in the same quarter of 2021. Parts sales of $16.7 million declined 4.3% when compared to the third quarter of 2021, while service revenues of $8.6 million were essentially unchanged over the same period of comparison.

Gross Profit

Gross profit of $151.9 million in the third quarter of 2022 increased 33.3% compared to $113.9 million in the third quarter of 2021. Gross margin improved to 46.8% for the third quarter of 2022 compared to 41.4% for the same quarter in 2021. On a segment basis, gross margin on total equipment rentals was 50.5% in the third quarter of 2022 compared to 45.6% in the third quarter of 2021. Rental margins were 55.6% compared to 50.9% over the same period of comparison. On average, rental rates in the third quarter of 2022 were 10.1% better than rates in the third quarter of 2021. Time utilization (based on original equipment cost) was 73.3% in the third quarter of 2022 compared to 71.9% in the third quarter of 2021. Gross margins on used equipment sales improved to 53.7% in the third quarter of 2022 compared to 37.6% in the third quarter of 2021. Gross margins on new equipment sales were 13.8% in the third quarter of 2022 compared to 12.4% over the same period of comparison. Gross margins on parts sales were 29.0% in the third quarter of 2022, compared to 24.5% in the third quarter of 2021, while gross margins on service revenues were 63.2% compared to 65.2% over the same period of comparison.

Rental Fleet

The original acquisition cost of the Company’s rental fleet as of September 30, 2022, was approximately $2.1 billion, representing an increase of $305.4 million, or 16.7%, from the end of the third quarter of 2021. Dollar utilization for the third quarter of 2022 improved to 42.7% compared to 38.9% in the third quarter of 2021.

Selling, General and Administrative Expenses

Selling, General and Administrative (SG&A) expenses for the third quarter of 2022 were $87.9 million, an increase of $13.5 million, or 18.1%, compared to $74.4 million in the third quarter of 2021. The higher expenses were largely attributable to increased employee salaries, wages, incentive compensation related to increased profitability, headcount, payroll taxes and related employee costs. Higher facilities expenses, costs associated with liability insurance and professional fees also contributed to the increase in costs. SG&A expenses in the third quarter of 2022 as a percentage of total revenues were 27.1% compared to 27.0% in the third quarter of 2021. Approximately $3.3 million of SG&A expenses in the third quarter of 2022 were attributable to nine new branches opened since the third quarter of 2021.

Income from Operations

Income from operations for the third quarter of 2022 was $64.0 million, or 19.7% of revenues, compared to $45.7 million, or 16.6% of revenues, in the third quarter of 2021.

Interest Expense

Interest expense was $13.5 million for the third quarter of 2022, essentially unchanged from the third quarter of 2021.

Net Income

Net income in the third quarter of 2022 was $38.4 million, or $1.05 per diluted share, compared to net income in the third quarter of 2021 of $24.7 million, or $0.68 per diluted share. The effective income tax rate for the third quarter of 2022 was 25.2% compared to an effective income tax rate of 24.7% in the same quarter of 2021.

Adjusted EBITDA

Adjusted EBITDA in the third quarter of 2022 increased to $139.4 million, representing 43.0% of revenues, compared to $112.3 million, or 40.8% of revenues, in the same quarter of 2021.

Non-GAAP Financial Measures

This press release contains certain non-GAAP measures (EBITDA, Adjusted EBITDA, and the disaggregation of equipment rental revenues and cost of sales numbers) detailed below. Please refer to our Current Report on Form 8-K filed with the Securities and Exchange Commission on October 27, 2022, for a description of these measures and of our use of these measures. These measures as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these non-GAAP measures are not a measurement of financial performance or liquidity under GAAP and should not be considered as alternatives to the Company's other financial information determined under GAAP.

Conference Call

The Company’s management will hold a conference call to discuss third quarter 2022 results today, October 27, 2022, at 10:00 a.m. (Eastern Time). To listen to the call, participants should dial 844-887-9400 approximately 10 minutes prior to the start of the call. A telephonic replay will become available after 1:00 p.m. (Eastern Time) on October 27, 2022, and will continue through November 3, 2022, by dialing 877-344-7529 and entering the confirmation code 6431956.

The live broadcast of H&E Equipment Services' quarterly conference call will be available online at www.he-equipment.com on October 27, 2022, beginning at 10:00 a.m. (Eastern Time) and will remain available for 30 days. Related presentation materials will be posted to the “Investor Relations” section of the Company’s web site at www.he-equipment.com prior to the call. The presentation materials will be in Adobe Acrobat format.

About H&E Equipment Services, Inc.

Founded in 1961, H&E Equipment Services, Inc. is one of the largest rental equipment companies in the nation. The Company’s fleet is among the industry’s youngest and most versatile with a superior equipment mix comprised of aerial work platforms, earthmoving, material handling, and other general and specialty lines. H&E serves a diverse set of end markets in many high-growth geographies including branches throughout the Pacific Northwest, West Coast, Intermountain, Southwest, Gulf Coast, Southeast, Midwest, and Mid-Atlantic regions.

Forward-Looking Statements

Statements contained in this press release that are not historical facts, including statements about H&E’s beliefs and expectations, are “forward-looking statements” within the meaning of the federal securities laws. Statements containing the words “may,” “could,” “would,” “should,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “intend,” “foresee” and similar expressions constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, the following: (1) risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response to the pandemic, material delays and cancellations of construction or infrastructure projects, labor shortages, supply chain disruptions and other impacts to the business; (2) general economic conditions and construction and industrial activity in the markets where we operate in North America; (3) our ability to forecast trends in our business accurately, and the impact of economic downturns and economic uncertainty in the markets we serve (including as a result of current uncertainty due to COVID-19 and inflation); (4) the impact of conditions in the global credit and commodity markets (including as a result of current volatility and uncertainty in credit and commodity markets due to COVID-19) and their effect on construction spending and the economy in general; (5) trends in oil and natural gas could adversely affect the demand for our services and products; (6) relationships with equipment suppliers; (7) increased maintenance and repair costs as we age our fleet and decreases in our equipment’s residual value; (8) our indebtedness; (9) risks associated with the expansion of our business and any potential acquisitions we may make, including any related capital expenditures, or our inability to consummate such acquisitions; (10) our possible inability to integrate any businesses we acquire; (11) competitive pressures; (12) security breaches and other disruptions in our information technology systems; (13) adverse weather events or natural disasters; (14) compliance with laws and regulations, including those relating to environmental matters, corporate governance matters and tax matters, as well as any future changes to such laws and regulations; and (15) other factors discussed in our public filings, including the risk factors included in the Company’s most recent Annual Report on Form 10-K. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, we are under no obligation to publicly update or revise any forward-looking statements after the date of this release, whether as a result of any new information, future events or otherwise. These statements are based on the current beliefs and assumptions of H&E’s management, which in turn are based on currently available information and important, underlying assumptions. Investors, potential investors, security holders and other readers are urged to consider the above-mentioned factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.

H&E EQUIPMENT SERVICES, INC.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(Amounts in thousands, except per share amounts)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Equipment rentals

 

$

253,564

 

 

$

197,184

 

 

$

680,366

 

 

$

526,014

 

Used equipment sales

 

 

20,300

 

 

 

31,071

 

 

 

60,659

 

 

 

105,746

 

New equipment sales

 

 

23,491

 

 

 

19,355

 

 

 

71,013

 

 

 

70,161

 

Parts sales

 

 

16,745

 

 

 

17,503

 

 

 

48,976

 

 

 

49,939

 

Services revenues

 

 

8,610

 

 

 

8,624

 

 

 

25,633

 

 

 

24,694

 

Other

 

 

1,570

 

 

 

1,699

 

 

 

4,754

 

 

 

4,991

 

Total revenues

 

 

324,280

 

 

 

275,436

 

 

 

891,401

 

 

 

781,545

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Rental depreciation

 

 

65,952

 

 

 

58,339

 

 

 

188,261

 

 

 

168,305

 

Rental expense

 

 

33,543

 

 

 

28,326

 

 

 

93,117

 

 

 

80,900

 

Rental other

 

 

25,989

 

 

 

20,510

 

 

 

70,775

 

 

 

55,394

 

 

 

 

125,484

 

 

 

107,175

 

 

 

352,153

 

 

 

304,599

 

Used equipment sales

 

 

9,396

 

 

 

19,383

 

 

 

31,815

 

 

 

68,426

 

New equipment sales

 

 

20,249

 

 

 

16,946

 

 

 

60,849

 

 

 

61,576

 

Parts sales

 

 

11,881

 

 

 

13,209

 

 

 

35,417

 

 

 

36,715

 

Services revenues

 

 

3,165

 

 

 

3,000

 

 

 

9,122

 

 

 

8,193

 

Other

 

 

2,222

 

 

 

1,815

 

 

 

6,248

 

 

 

4,896

 

Total cost of revenues

 

 

172,397

 

 

 

161,528

 

 

 

495,604

 

 

 

484,405

 

Gross profit

 

 

151,883

 

 

 

113,908

 

 

 

395,797

 

 

 

297,140

 

Selling, general and administrative expenses

 

 

87,871

 

 

 

74,403

 

 

 

248,813

 

 

 

213,259

 

Merger and other

 

 

547

 

 

 

9

 

 

 

547

 

 

 

115

 

Gain on sales of property and equipment, net

 

 

529

 

 

 

6,166

 

 

 

2,911

 

 

 

6,951

 

Income from operations

 

 

63,994

 

 

 

45,662

 

 

 

149,348

 

 

 

90,717

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(13,548

)

 

 

(13,430

)

 

 

(40,495

)

 

 

(40,298

)

Other, net

 

 

883

 

 

 

615

 

 

 

2,656

 

 

 

2,026

 

Total other expense, net

 

 

(12,665

)

 

 

(12,815

)

 

 

(37,839

)

 

 

(38,272

)

Income from operations before provision for income taxes

 

 

51,329

 

 

 

32,847

 

 

 

111,509

 

 

 

52,445

 

Provision for income taxes

 

 

12,953

 

 

 

8,119

 

 

 

28,967

 

 

 

13,611

 

Net income from continuing operations

 

$

38,376

 

 

$

24,728

 

 

$

82,542

 

 

$

38,834

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations:

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations before provision (benefit) for income taxes

 

$

 

 

$

6,411

 

 

$

(2,049

)

 

$

14,246

 

Provision (benefit) for income taxes

 

 

 

 

 

1,602

 

 

 

(525

)

 

 

3,626

 

Net income (loss) from discontinued operations

 

$

 

 

$

4,809

 

 

$

(1,524

)

 

$

10,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

38,376

 

 

$

29,537

 

 

$

81,018

 

 

$

49,454

 

 

H&E EQUIPMENT SERVICES, INC.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(Amounts in thousands, except per share amounts)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income from continuing operations per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.05

 

 

$

0.68

 

 

$

2.27

 

 

$

1.07

 

Diluted

 

$

1.05

 

 

$

0.68

 

 

$

2.26

 

 

$

1.07

 

Net income (loss) from discontinued operations per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 

 

$

0.13

 

 

$

(0.04

)

 

$

0.29

 

Diluted

 

$

 

 

$

0.13

 

 

$

(0.04

)

 

$

0.29

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.05

 

 

$

0.81

 

 

$

2.23

 

 

$

1.36

 

Diluted

 

$

1.05

 

 

$

0.81

 

 

$

2.22

 

 

$

1.36

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

36,462

 

 

 

36,296

 

 

 

36,402

 

 

 

36,232

 

Diluted

 

 

36,553

 

 

 

36,436

 

 

 

36,544

 

 

 

36,420

 

Dividends declared per common share outstanding

 

$

0.275

 

 

$

0.275

 

 

$

0.825

 

 

$

0.825

 

 

H&E EQUIPMENT SERVICES, INC.

SELECTED BALANCE SHEET DATA (unaudited)

(Amounts in thousands)

 

 

September 30,
2022

 

 

December 31,
2021

 

Cash and cash equivalents

 

$

220,479

 

 

$

357,296

 

Rental equipment, net

 

 

1,280,123

 

 

 

1,116,456

 

Total assets

 

 

2,218,674

 

 

 

2,080,447

 

Total debt (1)

 

 

1,251,619

 

 

 

1,250,000

 

Total liabilities

 

 

1,860,948

 

 

 

1,777,065

 

Stockholders' equity

 

 

357,726

 

 

 

303,382

 

Total liabilities and stockholders' equity

 

$

2,218,674

 

 

$

2,080,447

 

(1)

Total debt consists of the aggregate amounts on the senior unsecured notes and finance lease obligations.

H&E EQUIPMENT SERVICES, INC.

UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Amounts in thousands)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

38,376

 

 

$

29,537

 

 

$

81,018

 

 

$

49,454

 

Net Income (loss) from discontinued operations

 

 

 

 

 

4,809

 

 

 

(1,524

)

 

 

10,620

 

Net Income from continuing operations

 

 

38,376

 

 

 

24,728

 

 

 

82,542

 

 

 

38,834

 

Interest Expense

 

 

13,548

 

 

 

13,430

 

 

 

40,495

 

 

 

40,298

 

Provision for income taxes

 

 

12,953

 

 

 

8,119

 

 

 

28,967

 

 

 

13,611

 

Depreciation

 

 

73,000

 

 

 

65,040

 

 

 

209,214

 

 

 

188,005

 

Amortization of intangibles

 

 

993

 

 

 

993

 

 

 

2,978

 

 

 

2,978

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA from continuing operations

 

$

138,870

 

 

$

112,310

 

 

$

364,196

 

 

$

283,726

 

Merger and other

 

 

547

 

 

 

9

 

 

 

547

 

 

 

115

 

Adjusted EBITDA from continuing operations

 

$

139,417

 

 

$

112,319

 

 

$

364,743

 

 

$

283,841

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from discontinued operations

 

$

 

 

$

4,809

 

 

$

(1,524

)

 

$

10,620

 

Provision (benefit) for income taxes

 

 

 

 

 

1,602

 

 

 

(525

)

 

 

3,626

 

Depreciation

 

 

 

 

 

 

 

 

 

 

 

4,803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA from discontinued operations

 

$

 

 

$

6,411

 

 

$

(2,049

)

 

$

19,049

 

Merger and other

 

 

 

 

 

384

 

 

 

132

 

 

 

1,695

 

Loss on sale of discontinued operations

 

 

 

 

 

 

 

 

1,917

 

 

 

 

Adjusted EBITDA from discontinued operations

 

$

 

 

$

6,795

 

 

$

 

 

$

20,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

139,417

 

 

$

119,114

 

$

364,743

 

 

$

304,585

 

 

H&E EQUIPMENT SERVICES, INC.

UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Amounts in thousands)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

RENTAL

 

 

 

 

 

 

 

 

 

 

 

 

Equipment rentals (1)

 

$

224,126

 

 

$

176,655

 

 

$

602,551

 

 

$

471,012

 

Rental other

 

 

29,438

 

 

 

20,529

 

 

 

77,815

 

 

 

55,002

 

Total equipment rentals

 

 

253,564

 

 

 

197,184

 

 

 

680,366

 

 

 

526,014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RENTAL COST OF SALES

 

 

 

 

 

 

 

 

 

 

 

 

Rental depreciation

 

 

65,952

 

 

 

58,339

 

 

 

188,261

 

 

 

168,305

 

Rental expense

 

 

33,543

 

 

 

28,326

 

 

 

93,117

 

 

 

80,900

 

Rental other

 

 

25,989

 

 

 

20,510

 

 

 

70,775

 

 

 

55,394

 

Total rental cost of sales

 

 

125,484

 

 

 

107,175

 

 

 

352,153

 

 

 

304,599

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RENTAL REVENUES GROSS PROFIT (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

Equipment rentals

 

 

124,631

 

 

 

89,990

 

 

 

321,173

 

 

 

221,807

 

Rentals other

 

 

3,449

 

 

 

19

 

 

 

7,040

 

 

 

(392

)

Total rental revenues gross profit

 

$

128,080

 

 

$

90,009

 

 

$

328,213

 

 

$

221,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RENTAL REVENUES GROSS MARGIN

 

 

 

 

 

 

 

 

 

 

 

 

Equipment rentals

 

 

55.6

%

 

 

50.9

%

 

 

53.3

%

 

 

47.1

%

Rentals other

 

 

11.7

%

 

 

0.1

%

 

 

9.0

%

 

 

-0.7

%

Total rental revenues gross margin

 

 

50.5

%

 

 

45.6

%

 

 

48.2

%

 

 

42.1

%

(1)

Pursuant to SEC Regulation S-X, our equipment rental revenues are aggregated and presented in our unaudited consolidated statements of operations in this press release as a single line item, “Equipment Rentals.” The above table disaggregates our equipment rental revenues for discussion and analysis purposes only.

 

Leslie S. Magee
Chief Financial Officer
225-298-5261
lmagee@he-equipment.com

Jeffrey L. Chastain
Vice President of Investor Relations
225-952-2308
jchastain@he-equipment.com

Source: H&E Equipment Services, Inc.