0000950170-23-015266 | 10-Q | XBRL Viewer | HE Equipment Services INC

Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the fair value of the assets acquired and liabilities assumed as of the acquisition date.


	$'s in thousands
Cash	$	337
Accounts receivable (1)		11,163
Inventory		332
Prepaid expenses and other assets		374
Rental equipment		102,436
Property and equipment		4,216
Operating lease right-of-use assets		2,388
Intangible assets (2)		12,300
Total identifiable assets acquired		133,546
Accounts payable		(4,723	)
Tax payable		(1,674	)
Operating lease liabilities		(2,388	)
Deferred income taxes		(27,653	)
Total liabilities assumed		(36,438	)
Net identifiable assets acquired		97,108
Goodwill (3)		39,582
Net assets acquired	$	136,690

(1)

Includes an indemnification receivable of $0.7 million related to an unrecognized tax benefit.

(2)

The following table reflects the estimated fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments:


	Fair Value (amounts in thousands)		Life (years)
Customer relationships	$	10,600		10
Noncompetition agreements		1,700		1
	$	12,300

(3)

The acquired goodwill has been allocated to the equipment rentals reporting unit.

One Source Equipment Rentals, Inc [Member]

Unaudited Pro Forma Financial Information

The pro forma information for the quarter ended March 31, 2022 in the table below (amounts in thousands) is for informational purposes only and gives effect to the OSR acquisition as if it had been completed on January 1, 2022 (the “pro forma acquisition date”). The pro forma information is not necessarily indicative of our results of operations had the acquisition been completed on the pro forma acquisition date, nor is it necessarily indicative of our future results. The pro forma information does not reflect any cost savings from operating efficiencies or synergies that could result from the acquisition, nor does it reflect additional revenue opportunities following the acquisition. The unaudited pro forma financial information includes adjustments primarily related to the incremental depreciation and amortization expense of the rental equipment and intangible assets acquired, the elimination of interest expense related to historical debt as well as other expenses that are not part of the combined entity and transaction expenses.


	Three Months Ended March 31,
	2022
Total revenues	$	287,479
Net income	$	16,727

Stockholders' Equity - Summary of Activity in Stockholders' Equity (Parenthetical) (Detail) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Schedule of Capitalization, Equity [Line Items]
Cash dividends declared on common stock, per share	$ 0.275	$ 0.275
Repurchase of restricted common stock, shares	58,211	8,938
Retained Earnings [Member]
Schedule of Capitalization, Equity [Line Items]
Cash dividends declared on common stock, per share	$ 0.275	$ 0.275

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

(4) Fair Value of Financial Instruments

Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The FASB fair value measurement guidance established a fair value hierarchy that prioritizes the inputs used to measure fair value. The three broad levels of the fair value hierarchy are as follows:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly

Level 3 – Unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own assumptions

The carrying value of financial instruments reported in the accompanying condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses payable and other liabilities approximate fair value due to the immediate or short-term nature or maturity of these financial instruments. The carrying amounts and fair values of our other financial instruments subject to fair value disclosures as of March 31, 2023 and December 31, 2022 are presented in the table below (amounts in thousands).


	March 31, 2023
	Carrying Amount		Fair Value
Manufacturer flooring plans payable with interest computed at 8.25% (Level 3)	$	696	$	594
Senior Unsecured Notes due 2028 with interest computed at 3.875% (Level 2)		1,241,770		1,099,663


	December 31, 2022
	Carrying Amount		Fair Value
Manufacturer flooring plans payable with interest computed at 7.75% (Level 3)	$	422	$	392
Senior Unsecured Notes due 2028 with interest computed at 3.875% (Level 2)		1,241,409		1,070,088

At March 31, 2023 and December 31, 2022, the fair value of our senior unsecured notes due 2028 (the “Senior Unsecured Notes”) was based on quoted bond trading market prices for those notes. For our Level 3 unobservable inputs, we calculate a discount rate for our manufacturing floor plans payable based on the U.S. prime rate plus the applicable margin on our Credit Facility. The discount rate is disclosed in the above table.

During the three months ended March 31, 2023 and 2022, there were no transfers of financial assets or liabilities in or out of Level 3 of the fair value hierarchy.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Acquisitions and Dispositions - Additional Information (Detail)
$ in Thousands

3 Months Ended

Dec. 15, 2022

USD ($)

Oct. 01, 2022

USD ($)

Branch

Mar. 31, 2023

USD ($)

Branch

Mar. 31, 2022

USD ($)

Dec. 31, 2022

USD ($)

^[1]

Dec. 31, 2021

USD ($)

^[1]

Number of branch locations | Branch

$ 102,719

$ 102,690

$ 63,137

119

Gain on sales of property and equipment, net

$ 667

$ 1,386

One Source Equipment Rentals, Inc [Member]

Accrued purchase price consideration

$ 39,600

$ 39,582

^[2]

$ 800

Business acquisition percentage of equity acquired

100.00%

Number of branch locations | Branch

Business acquisition, completion date

Oct. 01, 2022

Aggregate consideration paid

$ 136,700

Acquisition costs

$ 800

Komatsu Earthmoving Distributorship [Member]

Proceeds from sale of business

$ 29,200

Net book value

14,700

Komatsu Earthmoving Distributorship [Member] | Sales from Property and Equipment, Net [Member]

Gain on sales of property and equipment, net

12,900

Komatsu Earthmoving Distributorship [Member] | Other Income [Member]

Gain on sales of property and equipment, net

$ 2,500

[1]	The total carrying amount of goodwill as of December 31, 2022 and 2021 in the table above is reflected net of $92.7 million of accumulated impairment charges.
[2]	The acquired goodwill has been allocated to the equipment rentals reporting unit.

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Cash flows from operating activities:
Net income	$ 25,674	$ 16,296
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment	8,033	6,857
Depreciation of rental equipment	81,872	60,021
Amortization of finance lease right-of-use assets	40
Amortization of intangible assets	1,683	993
Amortization of deferred financing costs	309	242
Accretion of note discount, net of premium amortization	293	293
Non-cash operating lease expense	4,560	3,983
Provision for losses on accounts receivable	1,107	645
Change in deferred income taxes	6,615	4,900
Stock-based compensation expense	2,990	1,678
Gain from sales of property and equipment, net	(667)	(1,386)
Gain from sales of rental equipment, net	(18,714)	(8,906)
Changes in operating assets and liabilities:
Receivables	7,474	(4,521)
Inventories	(138,147)	(59,671)
Prepaid expenses and other assets	(6,019)	(5,400)
Accounts payable	65,837	17,253
Manufacturer flooring plans payable	274	(1,406)
Accrued expenses payable and other liabilities	11	6,614
Net cash provided by operating activities	43,225	38,485
Cash flows from investing activities:
Purchases of property and equipment	(12,388)	(10,656)
Purchases of rental equipment	(76,578)	(44,389)
Proceeds from sales of property and equipment	849	1,621
Proceeds from sales of rental equipment	31,686	19,725
Net cash used in investing activities	(56,431)	(33,699)
Cash flows from financing activities:
Borrowings on senior secured credit facility	408,301	284,165
Payments on senior secured credit facility	(368,301)	(284,165)
Dividends paid	(9,989)	(9,942)
Purchases of treasury stock	(3,226)	(343)
Payments of deferred financing costs	(4,939)
Payments of finance lease obligations	(25)
Net cash provided by (used in) financing activities	21,821	(10,285)
Net increase (decrease) in cash and cash equivalents	8,615	(5,499)
Cash and cash equivalents, beginning of period	81,330	357,296	$ 357,296
Cash and cash equivalents, end of period	89,945	351,797	$ 81,330
Noncash asset purchases:
Assets transferred from used and new inventory to rental fleet	51,110	31,612
Purchases of property and equipment included in accrued expenses payable and other liabilities	39	(317)
Operating lease assets obtained in exchange for new operating lease liabilities	2,783	7,189
Cash paid during the period for:
Interest	767	797
Income taxes paid (net of refunds received)	$ 406	$ (51)

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements

The carrying amounts and fair values of our other financial instruments subject to fair value disclosures as of March 31, 2023 and December 31, 2022 are presented in the table below (amounts in thousands).


	March 31, 2023
	Carrying Amount		Fair Value
Manufacturer flooring plans payable with interest computed at 8.25% (Level 3)	$	696	$	594
Senior Unsecured Notes due 2028 with interest computed at 3.875% (Level 2)		1,241,770		1,099,663


	December 31, 2022
	Carrying Amount		Fair Value
Manufacturer flooring plans payable with interest computed at 7.75% (Level 3)	$	422	$	392
Senior Unsecured Notes due 2028 with interest computed at 3.875% (Level 2)		1,241,409		1,070,088

Income per Share - Additional Information (Detail)	3 Months Ended
Income per Share - Additional Information (Detail)	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Restricted common shares, percentage	1.00%	1.00%

Acquisitions and Dispositions - Unaudited Pro Forma Financial Information (Detail) - OSR [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Business Acquisition [Line Items]
Total revenues	$ 287,479
Net income	$ 16,727

Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

(11) Segment Information

We have identified five reportable segments: equipment rentals, used equipment sales, new equipment sales, parts sales and services revenues. These segments are based upon revenue streams and how management of the Company allocates resources and assesses performance. Our non-segmented revenues and costs relate primarily to ancillary charges associated with equipment repair services, and are not generally allocated to the segments. There were no sales between segments for any of the periods presented. Selling, general and administrative expenses as well as all other income and expense items below gross profit are not generally allocated to reportable segments.

We do not compile discrete financial information by segments other than the information presented below. The following table presents information about our reportable segments (amounts in thousands):


	Three Months Ended March 31,
	2023			2022
Segment Revenues:
Equipment rentals	$	262,008		$	199,225
Used equipment sales		32,115			21,526
New equipment sales		7,818			26,036
Parts sales		12,157			16,059
Services revenues		7,186			8,134
Total segmented revenues		321,284			270,980
Non-segmented revenues		1,198			1,470
Total revenues	$	322,482		$	272,450
Segment Gross Profit (Loss):
Equipment rentals	$	114,294		$	89,532
Used equipment sales		18,827			8,978
New equipment sales		1,037			3,707
Parts sales		3,505			4,355
Services revenues		4,596			5,320
Total segmented gross profit		142,259			111,892
Non-segmented gross loss		(881	)		(312	)
Total gross profit	$	141,378		$	111,580


	Balances at
	March 31,		December 31,
	2023		2022
Segment identified assets:
Equipment sales	$	181,281	$	94,918
Equipment rentals		1,451,795		1,418,951
Parts and services		13,598		12,924
Total segment identified assets		1,646,674		1,526,793
Non-segment identified assets		776,290		764,906
Total assets	$	2,422,964	$	2,291,699

The Company operates primarily in the United States and our sales to international customers for both the three months ended March 31, 2023 and 2022 were less than 1.0% of total revenues for the periods presented. No one customer accounted for more than 10% of our revenues on an overall or segment basis for any of the periods presented.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Stockholders' Equity

(5) Stockholders’ Equity

The following table summarizes the activity in Stockholders’ Equity for the three months ended March 31, 2023 and 2022, respectively (amounts in thousands, except share and per share data):


	Common Stock				Additional								Total
	Shares Issued		Amount		Paid-in Capital		Treasury Stock			Retained Earnings			Stockholders’ Equity
Balances at December 31, 2022		40,567,876	$	405	$	251,901	$	(69,964	)	$	218,700		$	401,042
Stock-based compensation		—		—		2,990		—			—			2,990
Cash dividends declared on common stock ($0.275 per share)		—		—		—		—			(9,794	)		(9,794	)
Issuance of common stock, net of forfeitures		132,501		1		—		—			—			1
Repurchase of 58,211 shares of restricted common stock		—		—		—		(3,226	)		—			(3,226	)
Net income		—		—		—		—			25,674			25,674
Balances at March 31, 2023		40,700,377	$	406	$	254,891	$	(73,190	)	$	234,580		$	416,687

Balances at December 31, 2021		40,353,299	$	403	$	244,638	$	(68,294	)	$	126,635		$	303,382
Stock-based compensation		—		—		1,678		—			—			1,678
Cash dividends declared on common stock ($0.275 per share)		—		—		—		—			(9,851	)		(9,851	)
Issuance of common stock, net of forfeitures		28,825		—		—		—			—			—
Repurchase of 8,938 shares of restricted common stock		—		—		—		(343	)		—			(343	)
Net income		—		—		—		—			16,296			16,296
Balances at March 31, 2022		40,382,124	$	403	$	246,316	$	(68,637	)	$	133,080		$	311,162

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Significant Accounting Policies

Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

(2) Significant Accounting Policies

We describe our significant accounting policies in Note 2 of the notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2022. During the three months ended March 31, 2023, there were no significant changes to those accounting policies.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and highly liquid investments with an original maturity of three months or less.

Use of Estimates

We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, which requires management to use its judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. These assumptions and estimates could have a material effect on our condensed consolidated financial statements. Actual results may differ materially from those estimates. We review our estimates on an ongoing basis based on information currently available, and changes in facts and circumstances may cause us to revise these estimates.

Revenue Recognition

We recognize revenue in accordance with two different Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) standards: 1) Topic 606 and 2) Topic 842.

Under Topic 606, Revenue from Contracts with Customers, revenue is recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenue is measured based on the consideration specified in the contract with the customer, and excludes any sales incentives and amounts collected on behalf of third parties. A performance obligation is a promise in a contract to transfer a distinct good or service to a customer. Our contracts with customers generally do not include multiple performance obligations. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for such products or services.

Under Topic 842, Leases, we account for equipment rental contracts as operating leases. We recognize revenue from equipment rentals in the period earned, regardless of the timing of billing to customers. A rental contract includes rates for daily, weekly or monthly use, and rental revenues are earned on a daily basis as rental contracts remain outstanding. Because the rental contracts can extend across multiple reporting periods, we record unbilled rental revenues and deferred rental revenues at the end of reporting periods so rental revenues earned is appropriately stated for the periods presented.

In the table below, revenues as presented in our condensed consolidated statements of income for the three months ended March 31, 2023 and 2022 are summarized by type and by the applicable accounting standard.


	Three Months Ended March 31,
	2023						2022
	Topic 842		Topic 606		Total		Topic 842		Topic 606		Total
Revenues:
Rental revenues
Owned equipment rentals	$	223,580	$	137	$	223,717	$	170,729	$	109	$	170,838
Re-rent revenue		8,359		—		8,359		6,344		—		6,344
Ancillary and other rental revenues:
Delivery and pick-up		—		15,491		15,491		—		11,100		11,100
Other		14,441		—		14,441		10,943		—		10,943
Total ancillary rental revenues		14,441		15,491		29,932		10,943		11,100		22,043
Total equipment rental revenues		246,380		15,628		262,008		188,016		11,209		199,225
Used equipment sales		—		32,115		32,115		—		21,526		21,526
New equipment sales		—		7,818		7,818		—		26,036		26,036
Parts sales		—		12,157		12,157		—		16,059		16,059
Service revenues		—		7,186		7,186		—		8,134		8,134
Other		—		1,198		1,198		—		1,470		1,470
Total revenues	$	246,380	$	76,102	$	322,482	$	188,016	$	84,434	$	272,450

Revenues by reporting segment are presented in Note 11 of our Condensed Consolidated Financial Statements, using the revenue captions reflected in our consolidated statements of income. We believe that the disaggregation of our revenues from contracts to customers as reflected above, coupled with further discussion below and the reporting segments in Note 11, depict how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. For further information related to our accounting for revenues pursuant to Topic 606 and Topic 842, see Significant Accounting Policies in Note 2 to our Annual Report on Form 10-K for the year ended December 31, 2022.

Receivables and contract assets and liabilities

We manage credit risk associated with our accounts receivables at the customer level. Because the same customers typically generate the revenues that are accounted for under both Topic 606 and Topic 842, the discussions below on credit risk and our allowance for doubtful accounts address our total revenues from Topic 606 and Topic 842.

We believe concentration of credit risk with respect to our receivables is limited because our customer base is comprised of a large number of geographically diverse customers. No single customer accounted for more than 10% of our revenues on an overall or segment basis for any of the periods presented in this Quarterly Report on Form 10-Q. We manage credit risk through credit approvals, credit limits and other monitoring procedures.

Pursuant to Topic 842 and Topic 326 for rental and non-rental receivables, respectively, we maintain an allowance for doubtful accounts that reflects our estimate of our expected credit losses. Our allowance is estimated using a loss rate model based on delinquency. The estimated loss rate is based on our historical experience with specific customers, our understanding of our current economic circumstances, reasonable and supportable forecasts, and our own judgment as to the likelihood of ultimate payment based upon available data. Our largest exposure to doubtful accounts is in our rental operations, which as discussed above is accounted for

under Topic 842 and represents 81% of our total revenues and an approximate corresponding percentage of our receivables, net and associated allowance for doubtful accounts as of March 31, 2023. We perform credit evaluations of customers and establish credit limits based on reviews of our customers’ current credit information and payment histories. We believe our credit risk is somewhat mitigated by our geographically diverse customer base and our credit evaluation procedures. The actual rate of future credit losses, however, may not be similar to past experience. Our estimate of doubtful accounts could change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease our allowance for doubtful accounts. Bad debt expense as a percentage of total revenues for both the three months ended March 31, 2023 and 2022 were approximately 0.3%.

We do not have material contract assets, impairment losses associated therewith, or material contract liabilities associated with contracts with customers. Our contracts with customers do not generally result in material amounts billed to customers in excess of recognizable revenue. We did not recognize material revenues during the three months ended March 31, 2023 or 2022 that was included in the contract liability balance as of the beginning of such periods.

Goodwill

The change to the carrying amount of goodwill for the period ended March 31, 2023 is as follows (amounts in thousands):


	Equipment Rentals		Used Eq. Sales		New Eq. Sales		Parts Sales		Service Revenues		Total
Balance at December 31, 2021 (1)	$	48,976	$	8,447	$	—	$	5,714	$	—	$	63,137
Increase (2)		39,553		—		—		—		—		39,553
Balance at December 31, 2022 (1)		88,529		8,447		—		5,714		—		102,690
Increase (3)		29		—		—		—		—		29
Balance at March 31, 2023	$	88,558	$	8,447	$	—	$	5,714	$	—	$	102,719

(1)

The total carrying amount of goodwill as of December 31, 2022 and 2021 in the table above is reflected net of $92.7 million of accumulated impairment charges.

(2)

Increase due to the OSR Acquisition.

(3)

Increase is related to the closing adjustments of the OSR Acquisition during the first quarter of 2023.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

On January 1, 2023 we adopted Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provided optional guidance for a limited time to ease the potential burden in accounting for or recognizing the effects of reference rate reform, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”) on financial reporting. Our exposure related to the expected cessation of LIBOR was limited to the interest expense and certain fees we incur on balances outstanding under our Senior Secured Credit Facility (the “Credit Facility”). We amended and restated our Credit Facility to transition to Secured Overnight Financing Rate (“SOFR”) as of February 2, 2023. The impact from the cessation of LIBOR as a reference rate did not have a material impact on our consolidated financial statements.

Stock-Based Compensation - Schedule of Non-Vested Stock Activity (Detail)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Share-Based Payment Arrangement [Abstract]
Non-vested stock, beginning balance, Number of Shares \| shares	560,456
Granted, Number of Shares \| shares	27,726
Vested, Number of Shares \| shares	(134,346)
Forfeited, Number of Shares \| shares	(1,845)
Non-vested stock, ending balance, Number of Shares \| shares	451,991
Non-vested stock, beginning balance, Weighted Average Grant Date Fair Value \| $ / shares	$ 30.02
Granted, Weighted Average Grant Date Fair Value \| $ / shares	35.53
Vested, Weighted Average Grant Date Fair Value \| $ / shares	21.29
Forfeited, Weighted Average Grant Date Fair Value \| $ / shares	29.58
Non-vested stock, ending balance, Weighted Average Grant Date Fair Value \| $ / shares	$ 32.95

Fair Value of Financial Instruments - Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Level 3 [Member] \| Carrying Amount [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Manufacturer flooring plans payable fair value	$ 696	$ 422
Level 3 [Member] \| Fair Value [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Manufacturer flooring plans payable fair value	594	392
Level 2 [Member] \| Carrying Amount [Member] \| Senior Unsecured Notes Due 2028 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Senior unsecured notes due 2028 with interest computed at 3.875% (Level 2)	1,241,770	1,241,409
Level 2 [Member] \| Fair Value [Member] \| Senior Unsecured Notes Due 2028 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Senior unsecured notes due 2028 with interest computed at 3.875% (Level 2)	$ 1,099,663	$ 1,070,088

Organization and Nature of Operations

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Nature of Operations

(1) Organization and Nature of Operations

Basis of Presentation

Our condensed consolidated financial statements include the financial position and results of operations of H&E Equipment Services, Inc. and its wholly-owned subsidiaries H&E Finance Corp., GNE Investments, Inc., Great Northern Equipment, Inc., H&E California Holding, Inc., H&E Equipment Services (California), LLC, H&E Equipment Services (Midwest), Inc. and H&E Equipment Services (Mid-Atlantic), Inc., collectively referred to herein as “we”, “us”, “our” or the “Company.”

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such regulations. In the opinion of management, all adjustments (consisting of all normal and recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023, and therefore, the results and trends in these interim condensed consolidated financial statements may not be the same for the entire year. These interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended December 31, 2022, from which the consolidated balance sheet amounts as of December 31, 2022 were derived. All significant intercompany accounts and transactions have been eliminated in these condensed consolidated financial statements.

The nature of our business is such that short-term obligations are typically met by cash flows generated from long-term assets. Consequently, the accompanying condensed consolidated balance sheets are presented on an unclassified basis.

Nature of Operations

Founded in 1961, H&E Equipment Services, Inc. is one of the largest rental equipment companies in the nation, serving customers at our 119 branch locations across 29 states. The Company’s fleet is 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.

Segment Information - Additional Information (Detail)	3 Months Ended
Segment Information - Additional Information (Detail)	Mar. 31, 2023 Segment Customer	Mar. 31, 2022 Customer
Segment Reporting Information [Line Items]
Number of reportable segment \| Segment	5
Customer accounted for more than 10% of revenue \| Customer	0	0
Maximum [Member]
Segment Reporting Information [Line Items]
Sales to international customers	1.00%	1.00%

Significant Accounting Policies - Schedule of Carrying Amount of Goodwill (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

^[1]

$ 102,690

$ 63,137

Increase

^[2]

39,553

^[3]

Equipment Rentals [Member]

102,719

102,690

^[1]

^[1]

88,529

48,976

Increase

^[2]

39,553

^[3]

Used Equipment Sales [Member]

88,558

88,529

^[1]

^[1]

8,447

8,447

^[1]

Parts Sales [Member]

^[1]

5,714

$ 5,714

^[1]

[1]	The total carrying amount of goodwill as of December 31, 2022 and 2021 in the table above is reflected net of $92.7 million of accumulated impairment charges.
[2]	Increase is related to the closing adjustments of the OSR Acquisition during the first quarter of 2023.
[3]	Increase due to the OSR Acquisition.

Senior Unsecured Notes [Member]

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Income per Share - Summary of Computation of Basic and Diluted Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Line Items]
Net income	$ 25,674	$ 16,296
Weighted average number of common shares outstanding:
Basic	36,025	36,363
Diluted	36,352	36,539
Income per share:
Basic net income per share	$ 0.71	$ 0.45
Diluted net income per share	$ 0.71	$ 0.45
Non-vested restricted stock [Member]
Weighted average number of common shares outstanding:
Effect of dilutive non-vested restricted stock	327	176
Common shares excluded from the denominator as anti-dilutive:
Non-vested restricted stock	0	0

Significant Accounting Policies - Additional Information (Detail) - Customer	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Summary Of Significant Accounting Policy [Line Items]
Customer accounted for more than 10% of revenue	0	0
Bad debt expense as a percentage of total revenues	0.30%	0.30%
Topic 842 [Member] \| Customer Concentration Risk [Member] \| Revenues [Member]
Summary Of Significant Accounting Policy [Line Items]
Percentage of revenue/purchase	81.00%
Topic 848 [Member]
Summary Of Significant Accounting Policy [Line Items]
Change in accounting principle, accounting standards update, adopted	true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2023
Change in accounting principle, accounting standards update, immaterial effect	true

Income per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Income per Share

(7) Income per Share

Income per common share for the three months ended March 31, 2023 and 2022 is based on the weighted average number of common shares outstanding during the period. The effects of potentially dilutive securities that are anti-dilutive are not included in the computation of dilutive income per share. We include all common shares granted under our incentive compensation plan which

remain unvested (“restricted common shares”) and contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (“participating securities”), in the number of shares outstanding in our basic and diluted EPS calculations using the two-class method. All of our restricted common shares are currently participating securities.

Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings allocated to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, distributed and undistributed earnings are allocated to both common shares and restricted common shares based on the total weighted average shares outstanding during the period. The number of restricted common shares outstanding was less than 1% of total outstanding shares for the three months ended March 31, 2023 and 2022 and, consequently, was immaterial to the basic and diluted EPS calculations. Therefore, use of the two-class method had no impact on our basic and diluted EPS calculations for the periods presented. The following table sets forth the computation of basic and diluted net income per common share for the three months ended March 31, 2023 and 2022 (amounts in thousands, except per share amounts):


	Three Months Ended
	March 31,
	2023		2022
Net income	$	25,674	$	16,296

Weighted average number of common shares outstanding:
Basic		36,025		36,363
Effect of dilutive non-vested restricted stock		327		176
Diluted		36,352		36,539

Income per share:
Basic net income per share	$	0.71	$	0.45
Diluted net income per share	$	0.71	$	0.45

Common shares excluded from the denominator as anti-dilutive:
Non-vested restricted stock		—		—

Senior Unsecured Notes

3 Months Ended

Mar. 31, 2023

Debt Instrument [Line Items]

Senior Secured Credit Facility

(9) Senior Unsecured Notes

On December 14, 2020, we completed the offering of our $1.25 billion, 3.875% Senior Unsecured Notes due 2028. For further information related to significant terms of the Senior Unsecured Notes, see Note 9 to the Company’s Consolidated Financial Statements included as Item 8 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. As of March 31, 2023, we were in compliance with the covenants governing our notes.

The following table reconciles our Senior Unsecured Notes to our Condensed Consolidated Balance Sheets (amounts in thousands):


Balance at December 31, 2021	$	1,239,967
Accretion of discount through December 31, 2022		1,172
Amortization of deferred financing costs through December 31, 2022		270
Balance at December 31, 2022	$	1,241,409
Accretion of discount through March 31, 2023		293
Amortization of deferred financing costs through March 31, 2023		68
Balance at March 31, 2023	$	1,241,770

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

Stock-Based Compensation

(6) Stock-Based Compensation

We account for our stock-based compensation plans using the fair value recognition provisions of ASC 718, Stock Compensation. Stock-based compensation is measured at the grant date, based on the calculated fair value of the award, net of an estimated forfeiture rate, and is recognized as an expense over the requisite employee service period (generally the vesting period of the grant). The estimated forfeiture rate is based on historical experience and revised, if necessary, in subsequent periods for actual forfeitures. There were 866,875 shares available for future stock-based payment awards under our 2016 Stock-Based Incentive Compensation Plan as of March 31, 2023.

Non-vested Stock

The following table summarizes our non-vested stock activity for the three months ended March 31, 2023:


	Number of Shares			Weighted Average Grant Date Fair Value
Non-vested stock at December 31, 2022		560,456		$	30.02
Granted		27,726		$	35.53
Vested		(134,346	)	$	21.29
Forfeited		(1,845	)	$	29.58
Non-vested stock at March 31, 2023		451,991		$	32.95

As of March 31, 2023, we had unrecognized compensation expense of approximately $11.3 million related to non-vested stock that we expect to be recognized over a weighted-average period of approximately 1.8 years. The compensation expense related to non-vested stock, which is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income for the three months ended March 31, 2023 and 2022 is $3.0 million and $1.7 million, respectively.

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2023	Apr. 20, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Trading Symbol	HEES
Entity Registrant Name	H&E Equipment Services, Inc.
Entity Central Index Key	0001339605
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		36,381,756
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Security Exchange Name	NASDAQ
Entity File Number	000-51759
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-0553291
Entity Address, Address Line One	7500 Pecue Lane
Entity Address, City or Town	Baton Rouge
Entity Address, State or Province	LA
Entity Address, Postal Zip Code	70809
City Area Code	225
Local Phone Number	298-5200
Document Transition Report	false
Document Quarterly Report	true

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivables	$ 6,548	$ 6,637
Reserves for obsolescence inventories	50	54
Accumulated depreciation, rental equipment	929,486	884,740
Accumulated depreciation and amortization, property and equipment	179,679	177,017
Accumulated amortization, operating lease right-of-use assets	55,978	51,419
Accumulated amortization, financing lease right-of-use assets	145	105
Accumulated amortization, deferred financing costs	16,759	16,518
Accumulated amortization, intangible assets	21,052	19,369
Unaccreted discount, net	6,686	6,979
Deferred financing costs	$ 1,544	$ 1,612
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	175,000,000	175,000,000
Common stock, shares issued	40,700,377	40,567,876
Common stock, shares outstanding	36,383,611	36,309,321
Treasury stock, shares	4,316,766	4,258,555

Significant Accounting Policies - Schedule of Carrying Amount of Goodwill (Parenthetical) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Goodwill, net of accumulated impairment charges	$ 92.7	$ 92.7

Senior Unsecured Notes (Tables)

3 Months Ended

Mar. 31, 2023

Senior Unsecured Notes [Member]

Debt Instrument [Line Items]

Reconciliation of Senior Unsecured Notes to Condensed Consolidated Balance Sheets

The following table reconciles our Senior Unsecured Notes to our Condensed Consolidated Balance Sheets (amounts in thousands):


Balance at December 31, 2021	$	1,239,967
Accretion of discount through December 31, 2022		1,172
Amortization of deferred financing costs through December 31, 2022		270
Balance at December 31, 2022	$	1,241,409
Accretion of discount through March 31, 2023		293
Amortization of deferred financing costs through March 31, 2023		68
Balance at March 31, 2023	$	1,241,770

Stockholders' Equity - Summary of Activity in Stockholders' Equity (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Schedule of Capitalization, Equity [Line Items]
Beginning Balances	$ 401,042	$ 303,382
Beginning Balances, shares	40,567,876
Stock-based compensation	$ 2,990	1,678
Cash dividends declared on common stock ($0.275 per share)	(9,794)	(9,851)
Issuance of common stock, net of forfeitures	1
Repurchase of shares of restricted common stock	(3,226)	(343)
Net income	25,674	16,296
Ending Balances	$ 416,687	311,162
Ending Balances, shares	40,700,377
Common Stock [Member]
Schedule of Capitalization, Equity [Line Items]
Beginning Balances	$ 405	$ 403
Beginning Balances, shares	40,567,876	40,353,299
Issuance of common stock, net of forfeitures	$ 1
Issuance of common stock, net of forfeitures, shares	132,501	28,825
Ending Balances	$ 406	$ 403
Ending Balances, shares	40,700,377	40,382,124
Additional Paid-in Capital [Member]
Schedule of Capitalization, Equity [Line Items]
Beginning Balances	$ 251,901	$ 244,638
Stock-based compensation	2,990	1,678
Ending Balances	254,891	246,316
Treasury Stock [Member]
Schedule of Capitalization, Equity [Line Items]
Beginning Balances	(69,964)	(68,294)
Repurchase of shares of restricted common stock	(3,226)	(343)
Ending Balances	(73,190)	(68,637)
Retained Earnings [Member]
Schedule of Capitalization, Equity [Line Items]
Beginning Balances	218,700	126,635
Cash dividends declared on common stock ($0.275 per share)	(9,794)	(9,851)
Net income	25,674	16,296
Ending Balances	$ 234,580	$ 133,080

Senior Unsecured Notes - Reconciliation of Senior Unsecured Notes to Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Debt Instrument [Line Items]
Senior unsecured notes, beginning balance	$ 1,241,409
Amortization of deferred financing costs	309	$ 242
Senior unsecured notes, ending balance	1,241,770		$ 1,241,409
Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Senior unsecured notes, beginning balance	1,241,409	$ 1,239,967	1,239,967
Senior unsecured notes, ending balance	1,241,770		1,241,409
Senior Unsecured Notes [Member] \| 3.875% Senior Notes [Member]
Debt Instrument [Line Items]
Accretion of discount	293		1,172
Amortization of deferred financing costs	$ 68		$ 270

Significant Accounting Policies - Summary of Revenues by Type and by Applicable Accounting Standard (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues:
Revenues	$ 322,482	$ 272,450
Topic 842 [Member]
Revenues:
Revenues	246,380	188,016
Topic 606 [Member]
Revenues:
Revenues	76,102	84,434
Rental Revenues [Member] \| Owned Equipment Rentals [Member]
Revenues:
Revenues	223,717	170,838
Rental Revenues [Member] \| Owned Equipment Rentals [Member] \| Topic 842 [Member]
Revenues:
Revenues	223,580	170,729
Rental Revenues [Member] \| Owned Equipment Rentals [Member] \| Topic 606 [Member]
Revenues:
Revenues	137	109
Rental Revenues [Member] \| Re Rent Revenues [Member]
Revenues:
Revenues	8,359	6,344
Rental Revenues [Member] \| Re Rent Revenues [Member] \| Topic 842 [Member]
Revenues:
Revenues	8,359	6,344
Ancillary And Other Rental Revenues [Member]
Revenues:
Revenues	29,932	22,043
Ancillary And Other Rental Revenues [Member] \| Topic 842 [Member]
Revenues:
Revenues	14,441	10,943
Ancillary And Other Rental Revenues [Member] \| Topic 606 [Member]
Revenues:
Revenues	15,491	11,100
Ancillary And Other Rental Revenues [Member] \| Delivery and Pick-up [Member]
Revenues:
Revenues	15,491	11,100
Ancillary And Other Rental Revenues [Member] \| Delivery and Pick-up [Member] \| Topic 606 [Member]
Revenues:
Revenues	15,491	11,100
Ancillary And Other Rental Revenues [Member] \| Other [Member]
Revenues:
Revenues	14,441	10,943
Ancillary And Other Rental Revenues [Member] \| Other [Member] \| Topic 842 [Member]
Revenues:
Revenues	14,441	10,943
Total Equipment Rental Revenues [Member]
Revenues:
Revenues	262,008	199,225
Total Equipment Rental Revenues [Member] \| Topic 842 [Member]
Revenues:
Revenues	246,380	188,016
Total Equipment Rental Revenues [Member] \| Topic 606 [Member]
Revenues:
Revenues	15,628	11,209
Used Equipment Sales [Member]
Revenues:
Revenues	32,115	21,526
Used Equipment Sales [Member] \| Topic 606 [Member]
Revenues:
Revenues	32,115	21,526
New Equipment Sales [Member]
Revenues:
Revenues	7,818	26,036
New Equipment Sales [Member] \| Topic 606 [Member]
Revenues:
Revenues	7,818	26,036
Parts Sales [Member]
Revenues:
Revenues	12,157	16,059
Parts Sales [Member] \| Topic 606 [Member]
Revenues:
Revenues	12,157	16,059
Parts and Services [Member]
Revenues:
Revenues	7,186	8,134
Parts and Services [Member] \| Topic 606 [Member]
Revenues:
Revenues	7,186	8,134
Other [Member]
Revenues:
Revenues	1,198	1,470
Other [Member] \| Topic 606 [Member]
Revenues:
Revenues	$ 1,198	$ 1,470

Senior Secured Credit Facility

3 Months Ended

Mar. 31, 2023

Secured Debt [Member]

Senior Secured Credit Facility

(8) Senior Secured Credit Facility

On February 2, 2023, we amended, extended and restated the $750.0 million Credit Facility by entering into the Sixth Amended and Restated Credit Agreement by and among the Company, Great Northern Equipment, Inc., H&E Equipment Services (California), LLC, H&E Equipment Services (Mid-Atlantic), LLC, H&E Equipment Services (Midwest), LLC, the other credit parties named therein, the lenders named therein, Wells Fargo Bank, National Association, as administrative agent, the other credit parties named therein, the lenders named therein, and the joint lead arrangers, joint book runners, co-syndication agents and documentation agent named therein.

The Sixth Amended and Restated Credit Agreement, among other things, (i) extended the maturity date of the credit facility to February 2, 2028 and (ii) amended the interest rate to SOFR plus a credit spread adjustment plus an applicable margin of 1.25% to 1.75%, depending on the Average Availability (as defined in the Amended and Restated Credit Agreement).

As of March 31, 2023, we were in compliance with our financial covenants under the Sixth Amended and Restated Credit Agreement. At March 31, 2023, we had $40.0 million in borrowings outstanding under the Credit Facility and could borrow up to approximately $699.4 million, net of a $10.6 million outstanding letter of credit, and remain in compliance with the debt covenants under the Credit Facility.

Cash and cash equivalents

Senior Unsecured Notes - Additional Information (Detail) - 3.875% Senior Notes [Member] $ in Millions	Dec. 14, 2020 USD ($)
Debt Instrument [Line Items]
Aggregate principal amount	$ 1,250
Senior unsecured notes, interest rate	3.875%
Senior unsecured notes, maturity year	2028

Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

(10) Leases

For a discussion of Topic 842 and related disclosures, see Note 2 and Note 11 to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2022.

At March 31, 2023, the weighted average remaining lease term for operating leases was approximately 7.8 years and for finance leases was approximately 9.3 years. The weighted average discount rate for operating leases and finance leases was approximately 6.3% and 5.0%, respectively at March 31, 2023.

The future minimum lease payments of operating leases executed but not commenced as of March 31, 2023 are estimated to be $1.1 million, $2.9 million, $2.9 million, $2.9 million and $3.0 million for the years ending December 31, 2023, 2024, 2025, 2026 and 2027, respectively, and $20.9 million thereafter. It is expected that the majority of these leases will commence during 2023.

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Transfer of financial assets	$ 0	$ 0
Transfer of financial liabilities	$ 0	$ 0
Fair Value [Member] \| Level 1 [Member] \| Senior Unsecured Notes Due 2028 [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Senior unsecured notes, due year	2028	2028

Senior Secured Credit Facility - Additional Information (Detail) - USD ($)	Feb. 02, 2023	Mar. 31, 2023
Great Northern Equipment, Inc [Member] \| Credit Facility [Member]
Debt Instrument [Line Items]
Existing credit facility with its lenders	$ 750,000,000.0
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit		$ 40,000,000.0
Available borrowings under our senior secured credit facility		699,400,000
Outstanding letters of credit		$ 10,600,000
Debt instrument maturity date description	extended the maturity date of the credit facility to February 2, 2028
Debt instrument maturity date	Feb. 02, 2028
Revolving Credit Facility [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Applicable margin Percentage	1.25%
Revolving Credit Facility [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Applicable margin Percentage	1.75%

Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands

Mar. 31, 2023

Dec. 31, 2022

ASSETS

$ 89,945

$ 81,330

Receivables, net of allowance for doubtful accounts of $6,548 and $6,637, respectively

216,683

225,294

Inventories, net of reserves for obsolescence of $50 and $54, respectively

194,879

107,842

Prepaid expenses and other assets

27,474

21,455

Rental equipment, net of accumulated depreciation of $929,486 and $884,740, respectively

1,451,795

1,418,951

Property and equipment, net of accumulated depreciation and amortization of $179,679 and $177,017, respectively

138,771

134,637

Operating lease right-of-use assets, net of accumulated amortization of $55,978 and $51,419, respectively

162,789

164,566

Finance lease right-of-use assets, net of accumulated amortization of $145 and $105, respectively

1,505

1,545

Deferred financing costs, net of accumulated amortization of $16,759 and $16,518, respectively

5,456

758

Intangible assets, net of accumulated depreciation and amortization of $21,052 and $19,369, respectively

30,948

32,631

Senior secured credit facility

102,719

102,690

^[1]

Total assets

2,422,964

2,291,699

Liabilities:

40,000

Accounts payable

195,319

129,482

Manufacturer flooring plans payable

696

422

Accrued expenses payable and other liabilities

81,297

77,142

Dividends payable

182

377

Senior unsecured notes, net of unaccreted discount of $6,686 and $6,979 and deferred financing costs of $1,544 and $1,612, respectively

1,241,770

1,241,409

Operating lease liabilities

167,667

169,069

Finance lease liabilities

1,569

1,594

Deferred income taxes

277,777

271,162

Total liabilities

2,006,277

1,890,657

Commitments and Contingencies

Stockholders' equity:

Preferred stock, $0.01 par value, 25,000,000 shares authorized; no shares issued

Common stock, $0.01 par value, 175,000,000 shares authorized; 40,700,377 and 40,567,876 shares issued at March 31, 2023 and December 31, 2022, respectively, and 36,383,611 and 36,309,321 shares outstanding at March 31, 2023 and December 31, 2022, respectively

406

405

Additional paid-in capital

254,891

251,901

Treasury stock at cost, 4,316,766 and 4,258,555 shares of common stock held at March 31, 2023 and December 31, 2022, respectively

(73,190)

(69,964)

Retained earnings

234,580

218,700

Total stockholders’ equity

416,687

401,042

Total liabilities and stockholders’ equity

$ 2,422,964

$ 2,291,699

[1]	The total carrying amount of goodwill as of December 31, 2022 and 2021 in the table above is reflected net of $92.7 million of accumulated impairment charges.

Acquisitions and Dispositions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) $ in Thousands	Oct. 01, 2022 USD ($)
Business Acquisition [Line Items]
Indemnification receivable related to unrecognized tax benefit	$ 700
One Source Equipment Rentals, Inc [Member]
Business Acquisition [Line Items]
Fair Value (amounts in thousands)	12,300
One Source Equipment Rentals, Inc [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Fair Value (amounts in thousands)	$ 10,600
Life (years)	10 years
One Source Equipment Rentals, Inc [Member] \| Noncompetition Agreements [Member]
Business Acquisition [Line Items]
Fair Value (amounts in thousands)	$ 1,700
Life (years)	1 year

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Non-Vested Stock Activity

The following table summarizes our non-vested stock activity for the three months ended March 31, 2023:


	Number of Shares			Weighted Average Grant Date Fair Value
Non-vested stock at December 31, 2022		560,456		$	30.02
Granted		27,726		$	35.53
Vested		(134,346	)	$	21.29
Forfeited		(1,845	)	$	29.58
Non-vested stock at March 31, 2023		451,991		$	32.95

Income per Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Summary of Computation of Basic and Diluted Net Income Per Common Share

The following table sets forth the computation of basic and diluted net income per common share for the three months ended March 31, 2023 and 2022 (amounts in thousands, except per share amounts):


	Three Months Ended
	March 31,
	2023		2022
Net income	$	25,674	$	16,296

Weighted average number of common shares outstanding:
Basic		36,025		36,363
Effect of dilutive non-vested restricted stock		327		176
Diluted		36,352		36,539

Income per share:
Basic net income per share	$	0.71	$	0.45
Diluted net income per share	$	0.71	$	0.45

Common shares excluded from the denominator as anti-dilutive:
Non-vested restricted stock		—		—

Leases - Additional Information (Detail) $ in Millions	Mar. 31, 2023 USD ($)
Leases [Abstract]
Weighted average discount rate for finance leases	5.00%
Weighted average remaining lease term for finance leases	9 years 3 months 18 days
Weighted average remaining lease term for operating leases	7 years 9 months 18 days
Weighted average discount rate for operating leases	6.30%
Future minimum operating lease payments 2023	$ 1.1
Future minimum operating lease payments 2024	2.9
Future minimum operating lease payments 2025	2.9
Future minimum operating lease payments 2026	2.9
Future minimum operating lease payments 2027	3.0
Future minimum operating lease payments thereafter	$ 20.9

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation

Use of Estimates

Revenue Recognition

We recognize revenue in accordance with two different Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) standards: 1) Topic 606 and 2) Topic 842.


	Three Months Ended March 31,
	2023						2022
	Topic 842		Topic 606		Total		Topic 842		Topic 606		Total
Revenues:
Rental revenues
Owned equipment rentals	$	223,580	$	137	$	223,717	$	170,729	$	109	$	170,838
Re-rent revenue		8,359		—		8,359		6,344		—		6,344
Ancillary and other rental revenues:
Delivery and pick-up		—		15,491		15,491		—		11,100		11,100
Other		14,441		—		14,441		10,943		—		10,943
Total ancillary rental revenues		14,441		15,491		29,932		10,943		11,100		22,043
Total equipment rental revenues		246,380		15,628		262,008		188,016		11,209		199,225
Used equipment sales		—		32,115		32,115		—		21,526		21,526
New equipment sales		—		7,818		7,818		—		26,036		26,036
Parts sales		—		12,157		12,157		—		16,059		16,059
Service revenues		—		7,186		7,186		—		8,134		8,134
Other		—		1,198		1,198		—		1,470		1,470
Total revenues	$	246,380	$	76,102	$	322,482	$	188,016	$	84,434	$	272,450

Receivables and contract assets and liabilities

Recent Accounting Pronouncements

The change to the carrying amount of goodwill for the period ended March 31, 2023 is as follows (amounts in thousands):


	Equipment Rentals		Used Eq. Sales		New Eq. Sales		Parts Sales		Service Revenues		Total
Balance at December 31, 2021 (1)	$	48,976	$	8,447	$	—	$	5,714	$	—	$	63,137
Increase (2)		39,553		—		—		—		—		39,553
Balance at December 31, 2022 (1)		88,529		8,447		—		5,714		—		102,690
Increase (3)		29		—		—		—		—		29
Balance at March 31, 2023	$	88,558	$	8,447	$	—	$	5,714	$	—	$	102,719

(1)

The total carrying amount of goodwill as of December 31, 2022 and 2021 in the table above is reflected net of $92.7 million of accumulated impairment charges.

(2)

Increase due to the OSR Acquisition.

(3)

Increase is related to the closing adjustments of the OSR Acquisition during the first quarter of 2023.

Recently Adopted Accounting Pronouncements

Fair Value of Financial Instruments - Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements (Parenthetical) (Detail)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Level 3 [Member] \| Carrying Amount [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Manufacturer flooring plans payable, interest rate	8.25%	7.75%
Level 3 [Member] \| Fair Value [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Manufacturer flooring plans payable, interest rate	8.25%	7.75%
Level 2 [Member] \| Carrying Amount [Member] \| Senior Unsecured Notes Due 2028 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Senior unsecured notes, due year	2028	2028
Senior unsecured notes, interest rate	3.875%	3.875%
Level 2 [Member] \| Fair Value [Member] \| Senior Unsecured Notes Due 2028 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Senior unsecured notes, due year	2028	2028
Senior unsecured notes, interest rate	3.875%	3.875%

Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Summary of Revenues by Type and by Applicable Accounting Standard


	Three Months Ended March 31,
	2023						2022
	Topic 842		Topic 606		Total		Topic 842		Topic 606		Total
Revenues:
Rental revenues
Owned equipment rentals	$	223,580	$	137	$	223,717	$	170,729	$	109	$	170,838
Re-rent revenue		8,359		—		8,359		6,344		—		6,344
Ancillary and other rental revenues:
Delivery and pick-up		—		15,491		15,491		—		11,100		11,100
Other		14,441		—		14,441		10,943		—		10,943
Total ancillary rental revenues		14,441		15,491		29,932		10,943		11,100		22,043
Total equipment rental revenues		246,380		15,628		262,008		188,016		11,209		199,225
Used equipment sales		—		32,115		32,115		—		21,526		21,526
New equipment sales		—		7,818		7,818		—		26,036		26,036
Parts sales		—		12,157		12,157		—		16,059		16,059
Service revenues		—		7,186		7,186		—		8,134		8,134
Other		—		1,198		1,198		—		1,470		1,470
Total revenues	$	246,380	$	76,102	$	322,482	$	188,016	$	84,434	$	272,450

Schedule of Carrying Amount of Goodwill

The change to the carrying amount of goodwill for the period ended March 31, 2023 is as follows (amounts in thousands):


	Equipment Rentals		Used Eq. Sales		New Eq. Sales		Parts Sales		Service Revenues		Total
Balance at December 31, 2021 (1)	$	48,976	$	8,447	$	—	$	5,714	$	—	$	63,137
Increase (2)		39,553		—		—		—		—		39,553
Balance at December 31, 2022 (1)		88,529		8,447		—		5,714		—		102,690
Increase (3)		29		—		—		—		—		29
Balance at March 31, 2023	$	88,558	$	8,447	$	—	$	5,714	$	—	$	102,719

(1)

The total carrying amount of goodwill as of December 31, 2022 and 2021 in the table above is reflected net of $92.7 million of accumulated impairment charges.

(2)

Increase due to the OSR Acquisition.

(3)

Increase is related to the closing adjustments of the OSR Acquisition during the first quarter of 2023.

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 11: http://www.xbrl.org/2003/role/exampleRef
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Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
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Acquisitions and Dispositions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($)
$ in Thousands

Mar. 31, 2023

Dec. 31, 2022

^[1]

Oct. 01, 2022

Dec. 31, 2021

^[1]

One Source Equipment Rentals, Inc [Member]

$ 102,719

$ 102,690

$ 63,137

Prepaid expenses and other assets

Cash

337

Accounts receivable

^[2]

11,163

Inventory

332

374

Rental equipment

102,436

Property and equipment

4,216

Operating lease right-of-use assets

2,388

Intangible assets

^[3]

12,300

Total identifiable assets acquired

133,546

Accounts payable

(4,723)

Tax payable

(1,674)

Operating lease liabilities

(2,388)

Deferred income taxes

(27,653)

Total liabilities assumed

(36,438)

Net identifiable assets acquired

97,108