H&E Equipment Services, Inc. (NASDAQ: HEES) (“H&E”, the
“Company”) today reported financial results for the third quarter
ended September 30, 2023, with fundamentally robust industry
conditions, strong fleet growth and further branch expansion
contributing to record adjusted earnings before interest, taxes,
depreciation and amortization ("EBITDA"). The Company sold its
crane business (the "Crane Sale") in October 2021 and completed
associated closing adjustments during the second quarter of 2022.
As such, results and comparisons for the prior period are presented
on a continuing operations basis with the Crane Sale reported as
discontinued operations in certain statements and schedules
accompanying this report, in accordance with Generally Accepted
Accounting Principles ("GAAP"). The Company also completed its
acquisition of One Source Equipment Rentals, Inc. ("One Source") on
October 1, 2022, which added 10 branch locations.
THIRD QUARTER 2023 SUMMARY WITH A
COMPARISON TO THIRD QUARTER 2022
- Revenues increased 23.6% to $400.7 million compared to $324.3
million.
- Net income was $48.9 million and included a pre-tax $5.7
million non-cash goodwill impairment charge. Excluding the
impairment charge, net income was $53.0 million compared to $38.4
million. The effective income tax rate was 26.1% , or 26.2%
excluding the impairment charge, compared to 25.2%.
- Adjusted EBITDA totaled $189.1 million, an increase of 36.2%
compared to $138.9 million.
- Total equipment rental revenues were $315.8 million, an
increase of $62.2 million, or 24.5%, compared to $253.6 million.
Rental revenues were $280.3 million, an increase of $56.1 million,
or 25.0%, compared to $224.1 million.
- Used equipment sales increased 159.6% to $52.7 million compared
to $20.3 million.
- Gross margin improved to 47.0% compared to 46.8%.
- Total equipment rental gross margins were 47.4% compared to
50.5%. Rental gross margins were 53.3% compared to 55.6%.
- Adjusted EBITDA margins improved to 47.2% of revenues compared
to 42.8%.
- Average time utilization (based on original equipment cost) was
70.0% compared to 73.3%. The Company’s rental fleet, based on
original equipment cost, closed the third quarter of 2023 at just
over $2.7 billion, an increase of $589.9 million, or 27.6%.
- Average rental rates, excluding One Source, increased 4.9%
compared to the third quarter of 2022, and 1.2% compared to the
second quarter of 2023. Through the nine months ended September 30,
2023, rental rates increased 7.0% compared to the same period in
2022.
- Dollar utilization of 41.5% compared to 42.7% in the third
quarter of 2022 and 40.6% in the second quarter of 2023.
- Average rental fleet age on September 30, 2023, was 41.1 months
compared to an industry average age of 49.2 months.
- Paid regular quarterly cash dividend of $0.275 per share of
common stock.
Summarizing the Company’s third quarter results, Brad Barber,
chief executive officer of H&E stated, “As expected, continued
strength in non-residential construction led to strong fleet
growth, healthy physical fleet utilization and further rental rate
appreciation. These components of a fundamentally sound industry,
combined with growth in mega projects and further expansion of our
branch network, delivered another quarter of outstanding financial
results. Total revenues improved 23.6% compared to the same quarter
in 2022, while rental revenues were 25.0% better over the same
period. Our 2023 growth initiatives were a modest burden on dollar
utilization, which finished the quarter at 41.5% compared to the
year ago result of 42.7%. The measure improved 90 basis points on a
sequential basis. Also, improvement in equipment supply chains
presented an opportunity to capitalize on the sustained strength in
the used equipment market, where margins on used equipment sales
reached 58.5%. With a gross fleet investment of $220.1 million in
the quarter, our disciplined approach to fleet management resulted
in a decline in average fleet age to 41.1 months, remaining among
the youngest fleets in the industry. Finally, adjusted EBITDA
totaled a record $189.1 million, with a margin of 47.2%.”
Branch expansion and fleet growth once again proved significant
drivers of H&E’s improved quarterly financial performance.
Addressing the accomplishments, Mr. Barber stated, “We added
greater branch density in the Mid-Atlantic, Southeast, Gulf Coast
and Midwest regions following the addition of five new locations in
the quarter and a sixth in October. With 12 branch additions
through October 2023, we are comfortably within our stated range of
12 to 15 new locations for the year and we anticipate more openings
during the fourth quarter. Also, our gross fleet expenditures in
the third quarter contributed to a record fleet investment through
the first nine months of 2023 of $595.2 million, resulting in a
fleet size, as measured by original equipment cost, in excess of
$2.7 billion. In view of our gross expenditures at the close of the
third quarter, we are adjusting our expected range for 2023 gross
fleet investment for the second time in consecutive quarters as
customer demand remains elevated and availability among certain
highly utilized equipment lines continues to improve. Our new range
is $650 million to $700 million compared to a previously revised
range of $600 million to $650 million.”
The Company believes a robust business environment will persist
through the final quarter of 2023 and into 2024. Mr. Barber
identified several factors in support of the encouraging outlook,
stating, “Non-residential construction activity remains resilient,
and we expect to benefit from an expansion in project
opportunities. Mega projects should meaningfully contribute to the
enhanced U.S. construction activity, which we define as possessing
a construction value of $500 million and greater. These projects
continue to populate our geographic footprint and have substantial
equipment requirements and lengthy project completion schedules.
Additionally, the value proposition of rental compared with
equipment ownership is expected to lead to further growth in rental
penetration. Modest rental rate improvement and favorable
utilization trends are likely to continue in this attractive
business environment and we intend to maintain our focus on branch
expansion and fleet growth as we finalize our 2024 strategic
initiatives.”
FINANCIAL DISCUSSION FOR THIRD QUARTER
2023
The non-cash goodwill impairment charge of $5.7 million was
identified in connection with an interim goodwill impairment test
and related to our parts business segment. The segment experienced
a sustained decline in volume and actual revenue and earnings
compared to our planned revenue and earnings as utilized in our
most recent quantitative goodwill impairment analysis, and
following our business’s dispositions and strategic shift to a
rental focus. The impairment charge will not result in any cash
expenditures and will not affect the Company’s cash position,
liquidity, availability or covenant test under its senior secured
credit facility.
Revenue
Total revenues improved to $400.7 million, or 23.6%, in the
third quarter of 2023 from $324.3 million in the third quarter of
2022. Total equipment rental revenues of $315.8 million improved
24.5% compared to $253.6 million in the third quarter of 2022.
Rental revenues of $280.3 million increased 25.0% compared to
$224.1 million in the third quarter of 2022. Used equipment sales
increased 159.6% to $52.7 million compared to $20.3 million in the
third quarter of 2022. New equipment sales of $12.6 million
declined 46.2% compared to $23.5 million in the same quarter of
2022. Parts sales of $11.9 million declined 29.0% when compared to
the third quarter of 2022, while service revenues of $6.7 million
declined 21.7% over the same period of comparison.
Gross Profit
Gross profit totaled $188.4 million in the third quarter of
2023, increasing 24.0% compared to $151.9 million in the third
quarter of 2022. Gross margin improved to 47.0% for the third
quarter of 2023 compared to 46.8% for the same quarter in 2022. On
a segment basis, gross margin on total equipment rentals was 47.4%
in the third quarter of 2023 compared to 50.5% in the third quarter
of 2022. Rental margins were 53.3% compared to 55.6% over the same
period of comparison. Rental rates in the third quarter of 2023,
excluding One Source, were 4.9% better than rates in the third
quarter of 2022. Time utilization (based on original equipment
cost) was 70.0% in the third quarter of 2023 compared to 73.3% in
the third quarter of 2022. Gross margins on used equipment sales
improved to 58.5% in the third quarter of 2023 compared to 53.7% in
the third quarter of 2022. Gross margins on new equipment sales
were 13.2% in the third quarter of 2023 compared to 13.8% over the
same period of comparison. Gross margins on parts sales were 27.5%
in the third quarter of 2023, compared to 29.0% in the third
quarter of 2022, while gross margins on service revenues were 59.3%
compared to 63.2% over the same period of comparison.
Rental Fleet
The original equipment cost of the Company’s rental fleet as of
September 30, 2023, was just over $2.7 billion, representing an
increase of $589.9 million, or 27.6%, from the end of the third
quarter of 2022. Dollar utilization for the third quarter of 2023
of 41.5% compared to 42.7% in the third quarter of 2022.
Selling, General and Administrative
Expenses
Selling, General, and Administrative ("SG&A") expenses for
the third quarter of 2023 were $104.2 million, an increase of $15.8
million, or 17.9%, compared to $88.4 million in the third quarter
of 2022. The higher expenses were primarily due to an increase in
employee salaries, wages, payroll taxes, and other related employee
expenses. In addition, higher depreciation, facilities expenses and
professional fees contributed to the rise in costs. SG&A
expenses in the third quarter of 2023 as a percentage of total
revenues declined to 26.0% compared to 27.3% in the third quarter
of 2022. Approximately $7.7 million of the increase in SG&A
expenses in the third quarter of 2023 were attributable to branches
opened or acquired during or after the third quarter of 2022.
Income from Operations
Income from operations for the third quarter of 2023 was $79.2
million including the $5.7 million non-cash goodwill impairment
charge, or 19.8% of revenues. Excluding the charge, income from
operations was $84.9 million, or 21.2% of revenues, compared to
$64.0 million, or 19.7% of revenues, in the third quarter of
2022.
Interest Expense
Interest expense was $16.1 million for the third quarter of
2023, compared to $13.5 million in the third quarter of 2022.
Net Income
Net income in the third quarter of 2023 was $48.9 million, or
$1.35 per diluted share, which included a pre-tax $5.7 million
non-cash goodwill impairment charge. Excluding the charge, net
income was $53.0 million, or $1.46 per diluted share, and compared
to net income in the third quarter of 2022 of $38.4 million, or
$1.05 per diluted share. The effective income tax rate for the
third quarter of 2023 was 26.1%, or 26.2% excluding the goodwill
impairment charge, compared to an effective income tax rate of
25.2% in the same quarter of 2022.
Adjusted EBITDA
Adjusted EBITDA in the third quarter of 2023 increased to $189.1
million, or 47.2% of revenues, compared to $138.9 million, or 42.8%
of revenues, in the same quarter of 2022.
Non-GAAP Financial Measures
This press release contains certain non-GAAP measures (EBITDA,
Adjusted EBITDA, Adjusted Income from Operations, Adjusted Net
Income (Loss), Adjusted Net Income (Loss) per share and the
disaggregation of equipment rental revenues and cost of sales
numbers) detailed below. EBITDA and Adjusted EBITDA are non-GAAP
measures as defined under the rules of the Securities and Exchange
Commission ("SEC"). We define Adjusted EBITDA for the periods
presented as EBITDA adjusted for the impairment of goodwill.
We use EBITDA and Adjusted EBITDA in our business operations to,
among other things, evaluate the performance of our business,
develop budgets and measure our performance against those budgets.
We also believe that analysts and investors use EBITDA and Adjusted
EBITDA as supplemental measures to evaluate a company’s overall
operating performance. However, EBITDA and Adjusted EBITDA have
material limitations as analytical tools and you should not
consider them in isolation, or as substitutes for analysis of our
results as reported under GAAP. We consider them useful tools to
assist us in evaluating performance because it eliminates items
related to components of our capital structure, taxes and non-cash
charges. The items that we have eliminated in determining EBITDA
for the periods presented are interest expense, income taxes,
depreciation of fixed assets (which includes rental equipment and
property and equipment) and amortization of intangible assets and,
in the case of Adjusted EBITDA, any other non-recurring items
described above applicable to the particular period. However, some
of these eliminated items are significant to our business. For
example, (i) interest expense is a necessary element of our costs
and ability to generate revenue because we incur a significant
amount of interest expense related to our outstanding indebtedness;
(ii) payment of income taxes is a necessary element of our costs;
and (iii) depreciation is a necessary element of our costs and
ability to generate revenue because rental equipment is the single
largest component of our total assets and we recognize a
significant amount of depreciation expense over the estimated
useful life of this equipment. Any measure that eliminates
components of our capital structure and costs associated with
carrying significant amounts of fixed assets on our consolidated
balance sheet has material limitations as a performance measure. In
light of the foregoing limitations, we do not rely solely on EBITDA
and Adjusted EBITDA as performance measures and also consider our
GAAP results. EBITDA and Adjusted EBITDA are not measurements of
our financial performance or liquidity under GAAP and, accordingly,
should not be considered alternatives to net income, operating
income or any other measures derived in accordance with GAAP.
Because EBITDA and Adjusted EBITDA may not be calculated in the
same manner by all companies, these measures may not be comparable
to other similarly titled measures used by other companies.
We use Adjusted Income from Continuing Operations, Adjusted Net
Income from Continuing Operations, Adjusted Net Income, Adjusted
Net Income from Continuing Operations per Share, and Adjusted Net
Income per Share ("Adjusted Income Measures") in our business
operations to, among other things, analyze our financial
performance on a comparative period basis without the effects of
significant one-time, non-recurring items. We define the Adjusted
Income Measures for the periods presented as Income from
Operations, Net Income and Net Income per Share, respectively,
adjusted for the impairment of goodwill. Additionally, we believe
Adjusted Income Measures, in combination with financial results
calculated in accordance with GAAP, provide investors with useful
information and additional perspective concerning future
profitability. However, Adjusted Income Measures are not
measurements of our financial performance under GAAP and,
accordingly, should not be considered in isolation or as
alternatives to GAAP Income from Operations, Net Income and Net
Income per Share. Because Adjusted Income Measures may not be
calculated in the same manner by all companies, these measures may
not be comparable to other similarly titled measures used by other
companies.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures can be found in the
financial tables accompanying this earnings release.
Conference Call
The Company's management will hold a conference call to discuss
third quarter results on Thursday, October 26, 2023, 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 26, 2023, and will continue through
November 2, 2023, by dialing 877-344-7529 and entering the
confirmation code 9392769.
The live broadcast of H&E Equipment Services' quarterly
conference call will be available online at www.he-equipment.com on
October 26, 2023, 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 a global pandemic and similar health concerns,
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 and geopolitical
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 on the markets we serve
(including as a result of current uncertainty due to inflation and
increasing interest rates); (4) the impact of conditions in the
global credit and commodity markets and their effect on
construction spending and the economy in general; (5) trends in oil
and natural gas which could adversely affect the demand for our
services and products; (6) our inability to obtain equipment and
other supplies for our business from our key suppliers on
acceptable terms or at all, as a result of supply chain
disruptions, insolvency, financial difficulties, supplier
relationships or other factors; (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 ability to
consummate such acquisitions; (10) our possible inability to
integrate any businesses we acquire; (11) competitive pressures;
(12) security breaches, cybersecurity attacks, failure to protect
personal information, compliance with data protection laws and
other disruptions in our information technology systems; (13)
adverse weather events or natural disasters; (14) risks related to
climate change and climate change regulation; (15) 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 (16) 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 SEC, 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,
2023
2022
2023
2022
Revenues:
Equipment rentals
$
315,811
$
253,564
$
869,278
$
680,366
Used equipment sales
52,708
20,300
124,476
60,659
New equipment sales
12,633
23,491
29,308
71,013
Parts sales
11,897
16,745
36,082
48,976
Services revenues
6,739
8,610
21,058
25,633
Other
908
1,570
3,208
4,754
Total revenues
400,696
324,280
1,083,410
891,401
Cost of revenues:
Rental depreciation
90,361
65,952
258,146
188,261
Rental expense
40,545
33,543
117,169
93,117
Rental other
35,056
25,989
93,381
70,775
165,962
125,484
468,696
352,153
Used equipment sales
21,893
9,396
51,396
31,815
New equipment sales
10,962
20,249
25,278
60,849
Parts sales
8,620
11,881
25,736
35,417
Services revenues
2,742
3,165
8,030
9,122
Other
2,134
2,222
6,152
6,248
Total cost of revenues
212,313
172,397
585,288
495,604
Gross profit
188,383
151,883
498,122
395,797
Selling, general and administrative
expenses
104,218
88,418
298,812
249,360
Impairment of goodwill
(5,714
)
—
(5,714
)
—
Gain on sales of property and equipment,
net
763
529
1,866
2,911
Income from operations
79,214
63,994
195,462
149,348
Other income (expense):
Interest expense
(16,145
)
(13,548
)
(44,542
)
(40,495
)
Other, net
3,071
883
5,851
2,656
Total other expense, net
(13,074
)
(12,665
)
(38,691
)
(37,839
)
Income from operations before provision
for income taxes
66,140
51,329
156,771
111,509
Provision for income taxes
17,261
12,953
41,002
28,967
Net income from continuing operations
$
48,879
$
38,376
$
115,769
$
82,542
Discontinued Operations:
Loss from discontinued operations before
benefit from income taxes
$
—
$
—
$
—
$
(2,049
)
Benefit from income taxes
—
—
—
(525
)
Net loss from discontinued operations
$
—
$
—
$
—
$
(1,524
)
Net income
$
48,879
$
38,376
$
115,769
$
81,018
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,
2023
2022
2023
2022
Net income from continuing operations per
common share:
Basic
$
1.35
$
1.05
$
3.21
$
2.27
Diluted
$
1.35
$
1.05
$
3.19
$
2.26
Net loss from discontinued operations per
common share:
Basic
$
—
$
—
$
—
$
(0.04
)
Diluted
$
—
$
—
$
—
$
(0.04
)
Net income per common share:
Basic
$
1.35
$
1.05
$
3.21
$
2.23
Diluted
$
1.35
$
1.05
$
3.19
$
2.22
Weighted average common shares
outstanding:
Basic
36,134
36,462
36,078
36,402
Diluted
36,322
36,553
36,326
36,544
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, 2023
December 31, 2022
Cash and cash equivalents
$
6,919
$
81,330
Rental equipment, net
1,705,367
1,418,951
Total assets
2,589,134
2,291,699
Total debt (1)
1,395,313
1,251,594
Total liabilities
2,101,000
1,890,657
Stockholders' equity
488,134
401,042
Total liabilities and stockholders'
equity
$
2,589,134
$
2,291,699
(1)
Total debt consists of the aggregate
amounts on the senior unsecured notes, senior secured credit
facility, and finance lease obligations.
H&E EQUIPMENT SERVICES,
INC.
UNAUDITED RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
(Amounts in thousands)
Three Months Ended September
30, 2023
As Reported
Adjustment
As Adjusted
Gross profit
$
188,383
$
—
$
188,383
Selling, general and administrative
expenses
104,218
—
104,218
Impairment of goodwill
(5,714
)
5,714
—
Gain on sale of property and equipment,
net
763
—
763
Income from continuing operations
79,214
5,714
84,928
Interest expense
(16,145
)
—
(16,145
)
Other income, net
3,071
—
3,071
Income from continuing operations before
provision for income taxes
66,140
5,714
71,854
Provision for income taxes
17,261
1,585
18,846
Net income from continuing operations
$
48,879
$
4,129
$
53,008
Income from discontinued operations before
provision for income taxes
—
—
—
Provision for income taxes
—
—
—
Net income from discontinued
operations
$
—
$
—
$
—
Net income
$
48,879
$
4,129
$
53,008
Three Months Ended September
30, 2023
As Reported
Adjustment
As Adjusted
NET INCOME PER SHARE (1)
Basic - Net income from continuing
operations per common share:
$
1.35
$
0.11
$
1.47
Basic - Net income from discontinued
operations per common share:
$
—
$
—
$
—
Basic - Net income per common share:
$
1.35
$
0.11
$
1.47
Basic - Weighted average common shares
outstanding:
36,134
36,134
36,134
Diluted - Net income from continuing
operations per common share:
$
1.35
$
0.11
$
1.46
Diluted - Net income from discontinued
operations per common share:
$
—
$
—
$
—
Diluted - Net income per common share
$
1.35
$
0.11
$
1.46
Diluted - Weighted average common shares
outstanding:
36,322
36,322
36,322
(1)
Because of the method used in calculating
per share data, the summation of the above per share data may not
necessarily total to the as adjusted per share data.
H&E EQUIPMENT SERVICES,
INC.
UNAUDITED RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
(Amounts in thousands)
Nine Months Ended September
30, 2023
As Reported
Adjustment
As Adjusted
Gross profit
$
498,122
$
—
$
498,122
Selling, general and administrative
expenses
298,812
—
298,812
Impairment of goodwill
(5,714
)
5,714
—
Gain on sale of property and equipment,
net
1,866
—
1,866
Income from continuing operations
195,462
5,714
201,176
Interest expense
(44,542
)
—
(44,542
)
Other income, net
5,851
—
5,851
Income from continuing operations before
provision for income taxes
156,771
5,714
162,485
Provision for income taxes
41,002
1,585
42,587
Net income from continuing operations
$
115,769
$
4,129
$
119,898
Income from discontinued operations before
provision for income taxes
—
—
—
Provision for income taxes
—
—
—
Net income from discontinued
operations
$
—
$
—
$
—
Net income
$
115,769
$
4,129
$
119,898
Nine Months Ended September
30, 2023
As Reported
Adjustment
As Adjusted
NET INCOME PER SHARE (1)
Basic - Net income from continuing
operations per common share:
$
3.21
$
0.11
$
3.32
Basic - Net income from discontinued
operations per common share:
$
—
$
—
$
—
Basic - Net income per common share:
$
3.21
$
0.11
$
3.32
Basic - Weighted average common shares
outstanding:
36,078
36,078
36,078
Diluted - Net income from continuing
operations per common share:
$
3.19
$
0.11
$
3.30
Diluted - Net income from discontinued
operations per common share:
$
—
$
—
$
—
Diluted - Net income per common share
$
3.19
$
0.11
$
3.30
Diluted - Weighted average common shares
outstanding:
36,326
36,326
36,326
(1)
Because of the method used in calculating
per share data, the summation of the above per share data may not
necessarily total to the as adjusted per share data.
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,
2023
2022
2023
2022
Net Income
$
48,879
$
38,376
$
115,769
$
81,018
Net Loss from discontinued operations
—
—
—
(1,524
)
Net Income from continuing operations
48,879
38,376
115,769
82,542
Interest Expense
16,145
13,548
44,542
40,495
Provision for income taxes
17,261
12,953
41,002
28,967
Depreciation
99,437
73,000
283,629
209,214
Amortization of intangibles
1,683
993
5,048
2,978
EBITDA from continuing operations
$
183,405
$
138,870
$
489,990
$
364,196
Impairment of goodwill
5,714
—
5,714
—
Adjusted EBITDA from continuing
operations
$
189,119
$
138,870
$
495,704
$
364,196
Net Loss from discontinued operations
$
—
$
—
$
—
$
(1,524
)
Benefit from income taxes
—
—
—
(525
)
EBITDA from discontinued operations
$
—
$
—
$
—
$
(2,049
)
Loss on sale of discontinued
operations
—
—
—
1,917
Adjusted EBITDA from discontinued
operations
$
—
$
—
$
—
$
(132
)
Adjusted EBITDA
$
189,119
$
138,870
$
495,704
$
364,064
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,
2023
2022
2023
2022
RENTAL
Equipment rentals (1)
$
280,257
$
224,126
$
771,056
$
602,551
Rental other
35,554
29,438
98,222
77,815
Total equipment rentals
315,811
253,564
869,278
680,366
RENTAL COST OF SALES
Rental depreciation
90,361
65,952
258,146
188,261
Rental expense
40,545
33,543
117,169
93,117
Rental other
35,056
25,989
93,381
70,775
Total rental cost of sales
165,962
125,484
468,696
352,153
RENTAL REVENUES GROSS PROFIT
Equipment rentals
149,351
124,631
395,741
321,173
Rentals other
498
3,449
4,841
7,040
Total rental revenues gross profit
$
149,849
$
128,080
$
400,582
$
328,213
RENTAL REVENUES GROSS MARGIN
Equipment rentals
53.3
%
55.6
%
51.3
%
53.3
%
Rentals other
1.4
%
11.7
%
4.9
%
9.0
%
Total rental revenues gross margin
47.4
%
50.5
%
46.1
%
48.2
%
(1)
Pursuant to SEC Regulation S-X, the
Company's equipment rental revenues are aggregated and presented in
our unaudited condensed consolidated statements of operations in
this press release as a single line item, “Equipment Rentals.” The
above table disaggregates the Company's equipment rental revenues
for discussion and analysis purposes only.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231026325149/en/
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
Grafico Azioni H and E Equipment Services (NASDAQ:HEES)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni H and E Equipment Services (NASDAQ:HEES)
Storico
Da Dic 2023 a Dic 2024
