H&E Equipment Services, Inc. Reports Third Quarter 2021 Results

Rhea-AI Summary

H&E Equipment Services (HEES) reported a strong third quarter for 2021, with revenues up 10.4% year-over-year to $319.4 million and net income rising to $29.5 million, compared to $10.1 million in Q3 2020. The effective tax rate decreased to 24.8%. Adjusted EBITDA increased 20.6% to $119.1 million. Equipment rental revenues surged 22.1% to $197.2 million, with average rental rates improving by 2.9%. The company successfully transitioned to a pure rental business, agreeing to sell its crane operations, expected to close on October 1, 2021, for about $130 million.

Positive

• Revenues increased 10.4% to $319.4 million compared to Q3 2020.
• Net income surged to $29.5 million from $10.1 million in Q3 2020.
• Adjusted EBITDA rose 20.6% to $119.1 million with a margin of 37.3%.
• Equipment rental revenues increased 22.1% to $197.2 million.
• Average rental rates improved by 2.9% year-over-year.
• Gross margin improved to 41.4% compared to 34.9% in Q3 2020.
• Agreed to sell crane business for approximately $130 million.

Negative

• Used equipment sales decreased 14.2% to $31.1 million.
• New equipment sales fell 30.4% to $19.4 million.
• SG&A expenses increased 15.3% to $74.4 million, impacting profit margins.

BATON ROUGE, La.--(BUSINESS WIRE)-- H&E Equipment Services, Inc. (NASDAQ: HEES) (“H&E”, the “Company”) today announced results for the third quarter ended September 30, 2021, highlighting improved fleet utilization, rental rate appreciation and significant progress toward the Company’s strategic transition to a pure-play rental business. During the third quarter of 2021, the Company agreed to sell its crane business, (the “Crane Sale”). All results and comparisons below Total Company Summary are presented on a continuing operations basis and exclude the Crane Sale.

THIRD QUARTER 2021 SUMMARY

Total Company Third Quarter 2021 Summary (including both continuing and discontinued operations)

• Revenues in the third quarter of 2021 increased 10.4% to $319.4 million compared to $289.3 million in the third quarter of 2020.
• Net income in the third quarter was $29.5 million compared to $10.1 million in the third quarter of 2020. The effective income tax rate was 24.8% in the third quarter of 2021 and 40.9% in the third quarter of 2020.
• Adjusted EBITDA in the third quarter of 2021 increased 20.6% to $119.1 million compared to $98.8 million in the same quarter of 2020, yielding a margin of 37.3% of revenues compared to 34.1% in the third quarter of 2020.

Continuing Operations Third Quarter 2021 Summary

• Revenues increased 9.3% in the third quarter of 2021 to $275.4 million compared to $251.9 million in the third quarter of 2020.
• Net income was $24.7 million in the third quarter of 2021 compared to $8.0 million in the third quarter of 2020. The effective income tax rate was 24.7% in the third quarter of 2021 compared to 30.4% in the third quarter of 2020.
• Adjusted EBITDA increased 24.1% in the third quarter of 2021 to $112.3 million compared to $90.5 million in the third quarter of 2020, yielding a margin of 40.8% of revenues compared to 35.9% over the same period of comparison.
• Total equipment rental revenues for the third quarter of 2021 were $197.2 million, an increase of $35.7 million, or 22.1%, compared to $161.5 million a year ago. Rental revenues for the third quarter of 2021 were $176.7 million, an increase of $31.3 million, or 21.6%, compared to $145.3 million in the third quarter of 2020.
• Used equipment sales decreased 14.2% in the third quarter of 2021 to $31.1 million compared to $36.2 million in the same quarter of 2020.
• New equipment sales totaled $19.4 million in the third quarter of 2021, a decline of 30.4% when compared to $27.8 million in the third quarter of 2020.
• Gross margin improved to 41.4% in the third quarter of 2021 compared to 34.9% in the same quarter of 2020.
• Total equipment rental gross margins were 45.6% in the third quarter of 2021 compared to 39.6% in the same quarter of 2020. Rental gross margins were 50.9% compared to 44.3% over the same period of comparison.
• Average time utilization (based on original equipment cost) was 71.9% compared to 63.5% a year ago. The size of the Company’s rental fleet based on original acquisition cost increased 5.0% from the third quarter in 2020, to approximately $1.8 billion. On a sequential basis, the rental fleet grew 2.9% when compared to the second quarter of 2021.
• Average rental rates improved 2.9% in the third quarter of 2021 compared to a year ago and 2.6% when compared to the second quarter of 2021.
• Dollar utilization improved to 38.9% in the third quarter of 2021 compared to 32.9% in the third quarter of 2020.
• Average rental fleet age on September 30, 2021, was 39.6 months compared to an industry average age of 52.7 months.
• Agreed to sell the crane business, closing the transaction on October 1, 2021, with proceeds of approximately $130 million, subject to adjustments.
• Paid regular quarterly cash dividend of $0.275 per share of common stock.

“Customer demand for our diverse mix of rental equipment remained vigorous throughout the third quarter as the recovery in non-residential construction intensified, and the increased activity led to another quarter of strong financial performance,” remarked Brad Barber, Chief Executive Officer of H&E Equipment Services, Inc. “Among our key metrics, average physical utilization improved to 71.9% in the third quarter, decidedly better than averages, when stated on a continuing operations basis, of 63.5% and 68.7% in the third quarter of 2020 and the second quarter of 2021, respectively. Also, as equipment utilization increased, rental rates posted another quarter of sequential improvement, up 2.6% from the second quarter while rates advanced 2.9% when compared to the third quarter in 2020. By the conclusion of the third quarter, rental rates had improved approximately 450 basis points from the pandemic-induced lows experienced in early 2021. Finally, in the face of global supply chain challenges, we grew our equipment rental fleet by 2.9% sequentially and 8.4% since the conclusion of 2020.”

Mr. Barber remained enthusiastic about the equipment rental industry, stating, “A broadening industrial recovery led by an abundance of non-residential construction activity serves as the underpinning of a truly robust business environment. Across our rental fleet, physical utilization during October peaked at 75%, our best measure since 2018. The strong measure is indicative of outstanding operational execution and continued strong demand as we entered the final quarter of 2021. Industry indicators continue to signal the likelihood for further non-residential project expansion in 2022.”

Addressing recent strategic accomplishments, Mr. Barber noted, “Our exit from the crane distribution business, as well as the sale of two earthmoving distribution branches represent significant steps we are taking to advance H&E’s strategic transition to a pure equipment rental business. These measures are helping to establish a pathway to higher and more sustainable revenue growth as well as margin appreciation through the business cycle. Proceeds from these transactions will facilitate continued investment in our rental fleet and support further development of our national branch network. Our warm start and greenfield branch expansion strategy remain an integral part of our future growth plans. In fact, following the addition of 10 branches in 2021, including most recently a new facility in Ogden, Utah, we expect to establish no fewer than 10 new branches in 2022.

“Next month, H&E will celebrate its 60^th year in business. As we approach this milestone, I am very confident in the Company’s ability to capitalize on future growth initiatives that should enhance our competitive position. Reinforcing my confidence are factors such as our young rental fleet, our diverse geographic presence, the strength of our balance sheet and ample liquidity, our robust and scalable digital customer platform, and the ability and experience of our leadership team. Collectively, these attributes will serve us well as we address the numerous opportunities generated by a strong business cycle.”

FINANCIAL DISCUSSION FOR THIRD QUARTER 2021 CONTINUING OPERATIONS:

Revenue

Total revenues increased 9.3% to $275.4 million in the third quarter of 2021 from $251.9 million in the third quarter of 2020. Total equipment rental revenues increased 22.1% to $197.2 million compared to $161.5 million in the third quarter of 2020. Rental revenues increased 21.6% to $176.7 million compared to $145.3 million in the third quarter of 2020. Used equipment sales decreased 14.2% to $31.1 million compared to $36.2 million in the same quarter of 2020. New equipment sales decreased 30.4% to $19.4 million compared to $27.8 million in the same quarter of 2020. Parts sales increased 7.4% to $17.5 million in the third quarter of 2021 compared to $16.3 million in the same quarter of 2020 and service revenues increased 1.6% to $8.6 million compared to $8.5 million over the same period of comparison.

Gross Profit

Gross profit increased 29.4% in the third quarter of 2021 to $113.9 million from $88.0 million in the third quarter of 2020. Gross margin was 41.4% for the third quarter of 2021 compared to 34.9% for the third quarter of 2020. On a segment basis, gross margin on total equipment rentals was 45.6% in the third quarter of 2021 compared to 39.6% in the third quarter of 2020. Rental margins were 50.9% compared to 44.3% over the same period of comparison. On average, rental rates in the third quarter of 2021 were 2.9% better than rental rates in the third quarter of 2020. Time utilization (based on original equipment cost) was 71.9% in the third quarter of 2021 compared to 63.5% in the third quarter of 2020. Gross margins on used equipment sales were 37.6% compared to 30.4% over the same period of comparison. Gross margins on new equipment sales were 12.4% in the third quarter of 2021 compared to 11.0% in the third quarter of 2020. Gross margins on parts sales were 24.5% in the third quarter of 2021 compared to 26.0% in the third quarter of 2020. Gross margins on service revenues were 65.2% compared to 67.5% over the same period of comparison.

Rental Fleet

At the end of the third quarter of 2021, the original acquisition cost of the Company’s rental fleet was approximately $1.8 billion, which represented a 5.0%, or $87.7 million, increase from the end of the third quarter of 2020. Dollar utilization for the third quarter of 2021 was 38.9% compared to 32.9% for the third quarter of 2020.

Selling, General and Administrative Expenses

SG&A expenses for the third quarter of 2021 were $74.4 million, an increase of $9.9 million, or 15.3%, compared to $64.5 million in the third quarter of 2020. The higher expenses were primarily due to a $9.1 million increase in employee salaries, wages, incentive compensation related to increased profitability, payroll taxes and related employee benefits, a $0.9 million increase in facilities expenses and a $0.6 million increase in professional fees. SG&A expenses in the third quarter of 2021 as a percentage of total revenues were 27.0%, compared to 25.6% in the third quarter of 2020. Approximately $3.3 million of SG&A expenses in the third quarter of 2021 were attributable to warm start branches opened since the third quarter of 2020.

Income from Operations

Income from operations for the third quarter of 2021 was $45.7 million, or 16.6% of revenues, compared to $25.4 million, or 10.1% of revenues, for the third quarter of 2020.

Interest Expense

Interest expense was $13.4 million for the third quarter of 2021, a reduction of 9.8% when compared to $14.9 million for the third quarter of 2020.

Net Income

Net income in the third quarter of 2021, including both continuing and discontinued operations, was $29.5 million, or $0.81 per diluted share, compared to $10.1 million, or $0.28 per diluted share in the third quarter of 2020. The effective income tax rate was 24.8% in the third quarter of 2021 compared to 40.9% in the third quarter of 2020. On a continuing operations basis, net income in the third quarter of 2021 was $24.7 million, or $0.68 per diluted share, compared to net income of $8.0 million, or $0.22 per diluted share, in the third quarter of 2020. The effective income tax rate was 24.7% in the third quarter of 2021 compared to 30.4% in the third quarter of 2020.

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. Please refer to our Current Report on Form 8-K filed with the Securities and Exchange Commission on November 2, 2021, for a description of these measures and of our use of these measures. These measures as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these Non-GAAP measures are not a measurement of financial performance or liquidity under GAAP and should not be considered as alternatives to the Company's other financial information determined under GAAP.

Conference Call

The Company’s management will hold a conference call to discuss third quarter 2021 results today, November 2, 2021, 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 November 2, 2021, and will continue through November 9, 2021, by dialing 877-344-7529 and entering the confirmation code 10161135.

A live broadcast of the Company’s quarterly conference call will be available online at www.he-equipment.com on November 2, 2021, 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, serving customers across 24 states. 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 States, Southeast, and Mid-Atlantic regions.

Forward-Looking Statements

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

H&E EQUIPMENT SERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(Amounts in thousands, except per share amounts)
				Three Months Ended September 30,								Nine Months Ended September 30,
				2021				2020				2021			2020
Revenues:
Equipment rentals			$	197,184			$	161,461			$	526,014		$	481,563
Used equipment sales				31,071				36,216				105,746			94,890
New equipment sales				19,355				27,827				70,161			79,957
Parts sales				17,503				16,291				49,939			50,197
Service revenues				8,624				8,489				24,694			27,245
Other				1,699				1,629				4,991			5,403
Total revenues				275,436				251,913				781,545			739,255
Cost of revenues:
Equipment rentals
Rental depreciation				58,339				55,972				168,305			170,900
Rental expense				28,326				25,006				80,900			72,570
Rental other				20,510				16,537				55,394			46,883
				107,175				97,515				304,599			290,353
Used equipment sales				19,383				25,204				68,426			64,119
New equipment sales				16,946				24,769				61,576			71,198
Parts sales				13,209				12,054				36,715			36,508
Service revenues				3,000				2,756				8,193			8,695
Other				1,815				1,606				4,896			5,436
Total cost of revenues				161,528				163,904				484,405			476,309
Gross Profit				113,908				88,009				297,140			262,946
Selling, general, and administrative expenses				74,403				64,540				213,259			200,442
Merger and other				9				150				115			308
Gain on sales of property and equipment, net				(6,166)				(2,047)				(6,951)			(6,818)
Impairment of goodwill				-				-				-			55,664
Income from Operations				45,662				25,366				90,717			13,350
Interest expense				(13,430)				(14,887)				(40,298)			(46,489)
Other income, net				615				989				2,026			2,256
Income (loss) from continuing operations before provision (benefit) for income taxes				32,847				11,468				52,445			(30,883)
Provision (benefit) for income taxes				8,119				3,485				13,611			(5,820)
Net income (loss) from continuing operations			$	24,728			$	7,983			$	38,834		$	(25,063)
Discontinued Operations:
Income from discontinued operations before provision for income taxes				6,411				5,614				14,246			12,709
Provision for income taxes				1,602				3,494				3,626			5,696
Net income from discontinued operations			$	4,809			$	2,120			$	10,620		$	7,013
Net income (loss)			$	29,537			$	10,103			$	49,454		$	(18,050)
H&E EQUIPMENT SERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(Amounts in thousands, except per share amounts)
				Three Months Ended September 30,								Nine Months Ended September 30,
				2021				2020				2021			2020
NET INCOME (LOSS) PER SHARE:
From continuing operations per common share:
Basic			$	0.68			$	0.22			$	1.07		$	(0.70)
Diluted			$	0.68			$	0.22			$	1.07		$	(0.70)
From discontinued operations per common share:
Basic			$	0.13			$	0.06			$	0.29		$	0.19
Diluted			$	0.13			$	0.06			$	0.29		$	0.19
Net income (loss) per common share:
Basic			$	0.81			$	0.28			$	1.36		$	(0.50)
Diluted			$	0.81			$	0.28			$	1.36		$	(0.50)
Weighted average common shares outstanding:
Basic				36,296				36,110				36,232			36,035
Diluted				36,436				36,249				36,420			36,035
Dividends declared per common share			$	0.275			$	0.275			$	0.825		$	0.825

H&E EQUIPMENT SERVICES, INC.
SELECTED BALANCE SHEET DATA (unaudited)
(Amounts in thousands)
		September 30,				December 31,
		2021				2020
Cash	$	235,024			$	310,882
Rental equipment, net		1,112,056				989,423
Assets held for sale		110,900				121,455
Total assets		2,050,914				1,980,484
Total debt (1)		1,250,111				1,250,305
Total liabilities		1,791,491				1,742,251
Stockholders’ equity		259,423				238,233
Total liabilities and stockholders’ equity	$	2,050,914			$	1,980,484
(1) Total debt consists of the aggregate amounts on the senior unsecured notes and finance lease obligations

H&E EQUIPMENT SERVICES, INC.
UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share amounts)
		Nine Months Ended September 30,
			2020					2020
		As Reported			Adjustment			As Adjusted
Gross profit		$	262,946		$	–		$	262,946
Selling, general and administrative expenses			200,442			–			200,442
Impairment of goodwill			55,664			(55,664)			–
Gain on sale of property and equipment, net			6,818			–			6,818
Merger and other			308			–			308
Income from continuing operations			13,350			55,664			69,014
Interest expense			(46,489)			–			(46,489)
Other income, net			2,256			–			2,256
Income (loss) from continuing operations before provision (benefit) for income taxes			(30,883)			55,664			24,781
Provision (benefit) for income taxes			(5,820)			11,405			5,585
Net income (loss) from continuing operations		$	(25,063)		$	44,259		$	19,196
Income from discontinued operations before provision (benefit) for income taxes (1)			12,709			6,330			19,039
Provision (benefit) for income taxes			5,696			(975)			4,721
Net income from discontinued operations		$	7,013		$	7,305		$	14,318
Net income (loss)		$	(18,050		$	51,564		$	33,514
(1) Adjustment consists of impairment of goodwill from discontinued operations.
		Nine Months Ended September 30,
			2020						2020
		As Reported			Adjustment			As Adjusted
NET INCOME (LOSS) PER SHARE (1)
Basic – Net income (loss) from continuing operations per common share:		$	(0.70)		$	1.23		$	0.53
Basic – Net income from discontinued operations per common share:		$	0.19		$	0.20		$	0.40
Basic – Net income (loss) per common share:		$	(0.50)		$	1.43		$	0.93
Basic – Weighted average common shares outstanding:			36,035			36,035			36,035
Diluted – Net income (loss) from continuing operations per common share:		$	(0.70)		$	1.22		$	0.53
Diluted – Net income from discontinued operations per common share:		$	0.19		$	0.20		$	0.40
Diluted – Net income (loss) per common share:		$	(0.50)		$	1.43		$	0.93
Diluted – Weighted average common shares outstanding:			36,035			36,146			36,146
(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,
			2021				2020				2021			2020
Net Income (loss)		$	29,537			$	10,103			$	49,454		$	(18,050)
Net income from discontinued operations			4,809				2,120				10,620			7,013
Net income (loss) from continuing operations			24,728				7,983				38,834			(25,063)
Interest Expense			13,430				14,887				40,298			46,489
Provision (benefit) for income taxes			8,119				3,485				13,611			(5,820)
Depreciation			65,040				62,974				188,005			191,594
Amortization of intangibles			993				994				2,978			2,996
EBITDA from continuing operations		$	112,310			$	90,323			$	283,726		$	210,196
Merger and other			9				150				115			308
Impairment of goodwill			-				-				-			55,664
Adjusted EBITDA from continuing operations		$	112,319			$	90,473			$	283,841		$	266,168
Net income from discontinued operations		$	4,809			$	2,120			$	10,620		$	7,013
Provision for income taxes			1,602				3,494				3,626			5,696
Depreciation			-				2,668				4,803			8,040
EBITDA from discontinued operations		$	6,411			$	8,282			$	19,049		$	20,749
Merger and other			384				-				1,695			-
Impairment of goodwill			-				-				-			6,330
Adjusted EBITDA from discontinued operations		$	6,795			$	8,282			$	20,744		$	27,079
Adjusted EBITDA		$	119,114			$	98,755			$	304,585		$	293,247

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,
			2021			2020			2021				2020
RENTAL REVENUES
Equipment rentals (1)		$	176,655		$	145,309		$	471,012			$	435,185
Rentals other			20,529			16,152			55,002				46,378
Total equipment rentals			197,184			161,461			526,014				481,563
RENTAL COST OF SALES
Rental depreciation			58,339			55,972			168,305				170,900
Rental expense			28,326			25,006			80,900				72,570
Rental other			20,510			16,537			55,394				46,883
Total rental cost of sales			107,175			97,515			304,599				290,353
RENTAL REVENUES GROSS PROFIT (LOSS)
Equipment rentals			89,990			64,331			221,807				191,715
Rentals other			19			(385)			(392)				(505)
Total rental revenues gross profit			90,009			63,946			221,415				191,210
RENTAL REVENUES GROSS MARGIN
Equipment rentals			50.9%			44.3%			47.1%				44.1%
Rentals other			0.1%			-2.4%			-0.7%				-1.1%
Total rental revenues gross margin			45.6%			39.6%			42.1%				39.7%

(1)

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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211102005220/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

Source: H&E Equipment Services, Inc.

FAQ

What were H&E Equipment Services' Q3 2021 revenue results?

H&E Equipment Services reported Q3 2021 revenues of $319.4 million, a 10.4% increase compared to $289.3 million in Q3 2020.

How did net income perform in Q3 2021 for HEES?

Net income for H&E Equipment Services in Q3 2021 was $29.5 million, up from $10.1 million in the same quarter of 2020.

What is the status of H&E's crane business?

H&E Equipment Services agreed to sell its crane business, with the transaction expected to close on October 1, 2021, for approximately $130 million.

What were the adjusted EBITDA results for HEES in Q3 2021?

Adjusted EBITDA for H&E Equipment Services in Q3 2021 increased 20.6% to $119.1 million, yielding a margin of 37.3%.

How much did rental revenues grow in Q3 2021 for HEES?

Rental revenues increased by 22.1% to $197.2 million in Q3 2021 compared to $161.5 million in Q3 2020.