H&E Equipment Services, Inc. Reports Second Quarter 2024 Results
H&E Equipment Services (NASDAQ: HEES) reported its Q2 2024 financial results, showing revenue growth of 4.5% to $376.3 million. Net income decreased to $33.3 million from $41.2 million in Q2 2023. Adjusted EBITDA increased by 2.8% to $173.2 million. The company's rental revenues grew 6.5% to $275.5 million, driven by branch network expansion. H&E opened six new branches in Q2, bringing its total to 149 locations across 31 states. The company maintained its 2024 gross fleet expenditure guidance of $350-400 million. Despite challenges in the construction industry, H&E sees opportunities in mega projects and increased infrastructure funding.
H&E Equipment Services (NASDAQ: HEES) ha riportato i risultati finanziari del secondo trimestre del 2024, evidenziando una crescita del fatturato del 4,5% a 376,3 milioni di dollari. Il reddito netto è diminuito a 33,3 milioni di dollari, rispetto ai 41,2 milioni di dollari nel Q2 2023. L'EBITDA rettificato è aumentato del 2,8% a 173,2 milioni di dollari. I ricavi da noleggio sono cresciuti del 6,5% a 275,5 milioni di dollari, sostenuti dall'espansione della rete di filiali. H&E ha aperto sei nuove filiali nel secondo trimestre, portando il totale a 149 sedi in 31 stati. L'azienda ha mantenuto la guida per la spesa lorda della flotta del 2024 tra i 350 e i 400 milioni di dollari. Nonostante le sfide nel settore delle costruzioni, H&E intravede opportunità nei mega progetti e in un finanziamento infrastrutturale aumentato.
H&E Equipment Services (NASDAQ: HEES) informó sobre sus resultados financieros del segundo trimestre de 2024, mostrando un crecimiento de ingresos del 4,5% a 376,3 millones de dólares. Los ingresos netos disminuyeron a 33,3 millones de dólares desde 41,2 millones de dólares en el Q2 de 2023. El EBITDA ajustado aumentó un 2,8% a 173,2 millones de dólares. Los ingresos por alquiler crecieron un 6,5% a 275,5 millones de dólares, impulsados por la expansión de la red de sucursales. H&E abrió seis nuevas sucursales en el segundo trimestre, llevando el total a 149 ubicaciones en 31 estados. La empresa mantuvo su guía de gasto bruto de flota para 2024 de 350 a 400 millones de dólares. A pesar de los desafíos en la industria de la construcción, H&E ve oportunidades en mega proyectos y un aumento en el financiamiento de infraestructura.
H&E Equipment Services (NASDAQ: HEES)가 2024년 2분기 재무 결과를 발표하며 4.5%의 매출 성장을 기록하여 3억 7,630만 달러에 도달했습니다. 순이익은 감소하여 2023년 2분기의 4,120만 달러에서 3,330만 달러로 떨어졌습니다. 조정된 EBITDA는 2.8% 증가하여 1억 7,320만 달러입니다. 임대 수익은 6.5% 성장하여 2억 7,550만 달러에 이르며, 지사 네트워크 확장이 주도했습니다. H&E는 2분기에 6개의 새로운 지점을 열어 총 149개 소속을 31개 주에 두고 있습니다. 이 회사는 2024년 총 차량 지출 가이드를 3억 5천만에서 4억 달러로 유지했습니다. 건설 산업의 어려움에도 불구하고 H&E는 대형 프로젝트와 증가하는 기반 시설 자금에서 기회를 보고 있습니다.
H&E Equipment Services (NASDAQ: HEES) a annoncé ses résultats financiers pour le deuxième trimestre 2024, affichant une croissance des revenus de 4,5% à 376,3 millions de dollars. Le revenu net a diminué à 33,3 millions de dollars contre 41,2 millions de dollars au T2 2023. L'EBITDA ajusté a augmenté de 2,8% pour atteindre 173,2 millions de dollars. Les recettes locatives ont augmenté de 6,5% pour atteindre 275,5 millions de dollars, soutenues par l'expansion du réseau d'agences. H&E a ouvert six nouvelles agences au T2, portant son total à 149 emplacements dans 31 États. L'entreprise a maintenu ses prévisions de dépenses brutes de flotte pour 2024, entre 350 et 400 millions de dollars. Malgré les défis dans le secteur de la construction, H&E voit des opportunités dans les mégaprojets et une augmentation des financements d'infrastructure.
H&E Equipment Services (NASDAQ: HEES) hat seine finanziellen Ergebnisse für das 2. Quartal 2024 bekanntgegeben und dabei ein Umsatzwachstum von 4,5% auf 376,3 Millionen Dollar verzeichnet. Der Nettogewinn ist gesunken von 41,2 Millionen Dollar im Q2 2023 auf 33,3 Millionen Dollar. Das bereinigte EBITDA stieg um 2,8% auf 173,2 Millionen Dollar. Die Vermietungseinnahmen wuchsen um 6,5% auf 275,5 Millionen Dollar, angetrieben durch die Expansion des Filialnetzes. H&E eröffnete im 2. Quartal sechs neue Standorte, wodurch sich die Gesamtzahl auf 149 Standorte in 31 Bundesstaaten erhöhte. Das Unternehmen hielt seine Prognose für die Bruttoausgaben der Flotte für 2024 bei 350 bis 400 Millionen Dollar. Trotz der Herausforderungen in der Bauindustrie sieht H&E Chancen in Megaprojekten und einer erhöhten Infrastrukturfinanzierung.
- Revenue increased 4.5% to $376.3 million
- Adjusted EBITDA grew 2.8% to $173.2 million
- Rental revenues increased 6.5% to $275.5 million
- Rental fleet expanded 10.7% to $2.9 billion in original equipment cost
- Average rental rates increased 1.9% compared to Q2 2023
- Opened six new branch locations in Q2 2024
- Completed acquisition adding four branches in Montana
- Net income decreased to $33.3 million from $41.2 million in Q2 2023
- Gross margin declined to 45.5% from 46.7% in Q2 2023
- Average time utilization decreased to 66.4% from 69.3% in Q2 2023
- Dollar utilization declined to 38.6% from 40.6% in Q2 2023
- SG&A expenses increased 12.7% to $111.8 million
- Interest expense increased to $18.2 million from $14.7 million in Q2 2023
Insights
H&E Equipment Services' Q2 2024 results present a mixed picture. While revenues increased by
The company's core rental business showed strength, with rental revenues up
The expansion of the branch network is a key driver of growth, with 23 new locations added in the past year. This strategic move could position H&E well for future growth, but it's also contributing to higher SG&A expenses, which rose
The company's focus on mega projects and infrastructure spending could provide some stability in a potentially softening market. However, the mention of curtailed spending among smaller contractors due to higher financing costs is a point of concern for overall industry demand.
Investors should closely monitor the company's ability to improve utilization rates and control costs as it continues its expansion strategy. The decline in adjusted EBITDA margin from
The equipment rental market, as reflected in H&E's results, shows signs of moderation after a strong period in 2022 and 2023. The company's
The focus on mega projects and increased infrastructure funding presents a significant opportunity for H&E and the industry at large. These projects tend to be less sensitive to short-term economic fluctuations and could provide a more stable demand base. However, the decline in activity among smaller contractors due to higher financing costs could impact the broader market dynamics.
The expansion of H&E's branch network into key U.S. markets, particularly in the Southeast, Gulf Coast and Mid-Atlantic regions, is a strategic move that could pay off in the long term. These areas are known for increasing construction activity and have excellent long-term potential.
The company's average rental fleet age of 40.0 months, compared to the industry average of 48.1 months, suggests H&E maintains a relatively modern fleet. This could be a competitive advantage in attracting and retaining customers who prefer newer equipment.
Overall, while there are some headwinds in the market, particularly for smaller projects, the focus on larger infrastructure projects and strategic expansion could position H&E well in the evolving equipment rental landscape.
BATON ROUGE, La., July 30, 2024 (GLOBE NEWSWIRE) -- H&E Equipment Services, Inc. (NASDAQ: HEES) (“H&E”, the “Company”) today reported financial results for the second quarter ended June 30, 2024, including further expansion of its branch network which now extends to 31 states.
SECOND QUARTER 2024 SUMMARY WITH A COMPARISON TO SECOND QUARTER 2023
- Revenues increased
4.5% to$376.3 million compared to$360.2 million . - Net income was
$33.3 million compared to$41.2 million . The effective income tax rate was27.8% compared to26.3% . - Adjusted EBITDA totaled
$173.2 million , an increase of2.8% compared to$168.6 million . Adjusted EBITDA margins were46.0% of revenues compared to46.8% . - Total equipment rental revenues were
$312.4 million , an increase of$20.9 million , or7.2% , compared to$291.5 million . Rental revenues were$275.5 million , an increase of$16.8 million , or6.5% , compared to$258.7 million . - Sales of rental equipment decreased
11.9% to$34.9 million compared to$39.7 million . - Gross margin declined to
45.5% compared to46.7% . - Total equipment rental gross margins were
45.5% compared to46.8% . Rental gross margins were51.0% compared to51.8% . - Average time utilization (based on original equipment cost) was
66.4% compared to69.3% . The Company’s rental fleet, based on original acquisition cost, closed the second quarter of 2024 at$2.9 billion , an increase of$279.0 million , or10.7% . - Average rental rates increased
1.9% compared to the second quarter of 2023, and declined0.1% compared to the first quarter of 2024. - Dollar utilization of
38.6% compared to40.6% in the second quarter of 2023 and37.0% in the first quarter of 2024. - Average rental fleet age on June 30, 2024, was 40.0 months compared to an industry average age of 48.1 months.
- Paid regular quarterly cash dividend of
$0.27 5 per share of common stock.
Reviewing the Company’s second quarter performance, Brad Barber, chief executive officer of H&E noted, “Rental revenues increased
Mr. Barber described the Company’s sustained focus on expansion into key U.S. markets, stating, “We opened six new branch locations during the second quarter that enhance our presence in the Southeast, Gulf Coast and Mid-Atlantic regions of the U.S., representing attractive geographies with increasing construction activity and excellent long-term potential. Also, the completion of our latest acquisition in May 2024 resulted in the addition of four branches in northern and central Montana, increasing our presence in that state to six locations while maximizing our exposure to a diverse set of project opportunities. This long-term strategic commitment to expanding our market presence provides greater scale and advantageously positions the Company for future opportunities and improved financial performance. We concluded the second quarter of 2024 with 149 branches across 31 states, representing growth of approximately
Commenting on the outlook for the equipment rental industry, Mr. Barber said, “We reiterate our view of a more moderate level of spending and project starts as the construction industry continues to transition to a lower level of activity compared to levels in 2022 and 2023. Higher project financing costs and more stringent lending standards have led to curtailed spending, especially among smaller contractors. Conversely, we are encouraged by the continued growth in mega projects and increased infrastructure project funding. H&E’s participation in these projects continues to rise as the Company fully leverages its increased scale in the U.S. Mega projects are a meaningful growth opportunity for H&E and our industry, and given their size and long duration, they provide a more stable base of demand in support of key industry fundamentals.”
FINANCIAL DISCUSSION FOR SECOND QUARTER 2024
Revenue
Total revenues improved to
Gross Profit
Gross profit totaled
Rental Fleet
The original equipment cost of the Company’s rental fleet as of June 30, 2024, was approximately
Selling, General and Administrative Expenses
Selling, General, and Administrative ("SG&A") expenses for the second quarter of 2024 were
Income from Operations
Income from operations for the second quarter of 2024 was
Interest Expense
Interest expense was
Net Income
Net income in the second quarter of 2024 was
Adjusted EBITDA
Adjusted EBITDA in the second quarter of 2024 totaled
Non-GAAP Financial Measures
This press release contains certain non-GAAP (generally accepted accounting principles) measures (EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, 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 non-cash stock-based compensation expense. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total revenues.
We use EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin 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, Adjusted EBITDA and Adjusted EBITDA Margin as supplemental measures to evaluate a company’s overall operating performance. However, EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin 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. For Adjusted EBITDA, we eliminate non-cash items such as non-cash stock-based compensation expense and any other non-recurring items described above applicable to the particular period. However, some of these eliminated items are necessary 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; (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; and (iv) stock compensation expense while non-cash, is an element of our costs. 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, Adjusted EBITDA and Adjusted EBITDA Margin as performance measures and also consider our GAAP results. EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin 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, Adjusted EBITDA and Adjusted EBITDA Margin 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 have presented in a supplemental schedule the disaggregation of our equipment rental revenues to provide further detail in evaluating the period over period performance of our rental business relative to equipment rental gross profit and equipment rental gross margin and believe these non-GAAP measures may be useful to investors for this reason. However, you should not consider this in isolation, or as substitutes for analysis of our results as reported under GAAP.
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 second quarter 2024 results today, July 30, 2024, 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 July 30, 2024, and will continue through August 6, 2024, by dialing 877-344-7529 and entering the confirmation code 4716329.
The live broadcast of H&E Equipment Services' quarterly conference call will be available online at www.he-equipment.com on July 30, 2024, 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 and has 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) general economic and geopolitical conditions in North America and elsewhere throughout the globe and construction and industrial activity in the markets where we operate in North America; (2) 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); (3) the impact of conditions in the global credit and commodity markets and their effect on construction spending and the economy in general; (4) trends in oil and natural gas which could adversely affect the demand for our services and products; (5) 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; (6) increased maintenance and repair costs as our fleet ages and decreases in our equipment’s residual value; (7) 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; (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 ability to integrate any businesses or assets we acquire; (11) competitive pressures; (12) security breaches, cybersecurity attacks, increased adoption of artificial intelligence technologies, 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 June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenues: | ||||||||||||||||
Equipment rentals | $ | 312,356 | $ | 291,459 | $ | 607,681 | $ | 553,467 | ||||||||
Sales of rental equipment | 34,937 | 39,653 | 83,052 | 71,768 | ||||||||||||
Sales of new equipment | 10,670 | 8,857 | 21,082 | 16,675 | ||||||||||||
Parts, service and other | 18,319 | 20,263 | 35,824 | 40,804 | ||||||||||||
Total revenues | 376,282 | 360,232 | 747,639 | 682,714 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Rental depreciation | 92,398 | 85,913 | 183,796 | 167,785 | ||||||||||||
Rental expense | 42,522 | 38,757 | 85,929 | 76,624 | ||||||||||||
Rental other | 35,189 | 30,350 | 67,812 | 58,325 | ||||||||||||
170,109 | 155,020 | 337,537 | 302,734 | |||||||||||||
Sales of rental equipment | 13,120 | 16,215 | 30,949 | 29,503 | ||||||||||||
Sales of new equipment | 8,872 | 7,535 | 17,511 | 14,316 | ||||||||||||
Parts, service and other | 12,901 | 13,101 | 25,497 | 26,422 | ||||||||||||
Total cost of revenues | 205,002 | 191,871 | 411,494 | 372,975 | ||||||||||||
Gross profit | 171,280 | 168,361 | 336,145 | 309,739 | ||||||||||||
Selling, general and administrative expenses | 111,831 | 99,259 | 226,109 | 194,594 | ||||||||||||
Gain on sales of property and equipment, net | 3,352 | 436 | 4,785 | 1,103 | ||||||||||||
Income from operations | 62,801 | 69,538 | 114,821 | 116,248 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (18,227 | ) | (14,700 | ) | (36,593 | ) | (28,397 | ) | ||||||||
Other, net | 1,482 | 1,064 | 3,034 | 2,780 | ||||||||||||
Total other expense, net | (16,745 | ) | (13,636 | ) | (33,559 | ) | (25,617 | ) | ||||||||
Income from operations before provision for income taxes | 46,056 | 55,902 | 81,262 | 90,631 | ||||||||||||
Provision for income taxes | 12,795 | 14,686 | 22,112 | 23,741 | ||||||||||||
Net income | $ | 33,261 | $ | 41,216 | $ | 59,150 | $ | 66,890 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 0.92 | $ | 1.14 | $ | 1.63 | $ | 1.86 | ||||||||
Diluted | $ | 0.91 | $ | 1.14 | $ | 1.62 | $ | 1.84 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 36,248 | 36,075 | 36,222 | 36,050 | ||||||||||||
Diluted | 36,470 | 36,302 | 36,517 | 36,327 |
H&E EQUIPMENT SERVICES, INC. SELECTED BALANCE SHEET DATA (unaudited) (Amounts in thousands) | ||||||||
June 30, 2024 | December 31, 2023 | |||||||
Cash | $ | 8,609 | $ | 8,500 | ||||
Rental equipment, net | 1,910,777 | 1,756,578 | ||||||
Total assets | 2,850,817 | 2,639,886 | ||||||
Total debt (1) | 1,541,157 | 1,434,661 | ||||||
Total liabilities | 2,274,768 | 2,105,597 | ||||||
Stockholders' equity | 576,049 | 534,289 | ||||||
Total liabilities and stockholders' equity | $ | 2,850,817 | $ | 2,639,886 |
(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 June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net Income | $ | 33,261 | $ | 41,216 | $ | 59,150 | $ | 66,890 | ||||||||
Interest Expense | 18,227 | 14,700 | 36,593 | 28,397 | ||||||||||||
Provision for income taxes | 12,795 | 14,686 | 22,112 | 23,741 | ||||||||||||
Depreciation | 104,144 | 94,247 | 206,042 | 184,192 | ||||||||||||
Amortization of intangibles | 2,583 | 1,682 | 5,070 | 3,365 | ||||||||||||
EBITDA | $ | 171,010 | $ | 166,531 | $ | 328,967 | $ | 306,585 | ||||||||
Non-cash stock-based compensation expense | $ | 2,202 | $ | 2,039 | $ | 5,990 | $ | 5,029 | ||||||||
Adjusted EBITDA | $ | 173,212 | $ | 168,570 | $ | 334,957 | $ | 311,614 |
H&E EQUIPMENT SERVICES, INC. UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Amounts in thousands) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
RENTAL | ||||||||||||||||
Equipment rentals (1) | $ | 275,473 | $ | 258,723 | $ | 537,214 | $ | 490,799 | ||||||||
Rental other | 36,883 | 32,736 | 70,467 | 62,668 | ||||||||||||
Total equipment rentals | 312,356 | 291,459 | 607,681 | 553,467 | ||||||||||||
RENTAL COST OF SALES | ||||||||||||||||
Rental depreciation | 92,398 | 85,913 | 183,796 | 167,785 | ||||||||||||
Rental expense | 42,522 | 38,757 | 85,929 | 76,624 | ||||||||||||
Rental other | 35,189 | 30,350 | 67,812 | 58,325 | ||||||||||||
Total rental cost of sales | 170,109 | 155,020 | 337,537 | 302,734 | ||||||||||||
RENTAL REVENUES GROSS PROFIT | ||||||||||||||||
Equipment rentals | 140,553 | 134,053 | 267,489 | 246,390 | ||||||||||||
Rentals other | 1,694 | 2,386 | 2,655 | 4,343 | ||||||||||||
Total rental revenues gross profit | $ | 142,247 | $ | 136,439 | $ | 270,144 | $ | 250,733 | ||||||||
RENTAL REVENUES GROSS MARGIN | ||||||||||||||||
Equipment rentals | 51.0 | % | 51.8 | % | 49.8 | % | 50.2 | % | ||||||||
Rentals other | 4.6 | % | 7.3 | % | 3.8 | % | 6.9 | % | ||||||||
Total rental revenues gross margin | 45.5 | % | 46.8 | % | 44.5 | % | 45.3 | % |
(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.
Contacts:
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
FAQ
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