H&E Rentals Reports Fourth Quarter and Full Year 2024 Results
H&E Equipment Services (NASDAQ: HEES) reported Q4 2024 results, alongside news of its upcoming acquisition by Herc Holdings. Q4 revenues slightly decreased by 0.4% to $384.1 million, while net income dropped to $32.8 million from $53.5 million year-over-year.
Key Q4 metrics include: rental revenues increased 0.8% to $319.4 million; rental equipment sales decreased 30.1%; total gross margin declined to 43.6%; and Adjusted EBITDA decreased 5.6% to $174.9 million. The company's rental fleet grew 5.5% to $2.9 billion, while average rental rates declined 1.1% year-over-year.
For full-year 2024, total revenues increased 3.2% to $1,516.6 million, with rental revenues up 5.4% to $1,108.3 million. Annual net income was $123.0 million ($3.37 per diluted share), down from $169.3 million in 2023.
H&E Equipment Services (NASDAQ: HEES) ha riportato i risultati del quarto trimestre 2024, insieme alla notizia della sua imminente acquisizione da parte di Herc Holdings. I ricavi del quarto trimestre sono leggermente diminuiti dello 0,4% a $384,1 milioni, mentre l'utile netto è sceso a $32,8 milioni rispetto ai $53,5 milioni dell'anno precedente.
I principali indicatori del quarto trimestre includono: i ricavi da noleggio sono aumentati dello 0,8% a $319,4 milioni; le vendite di attrezzature a noleggio sono diminuite del 30,1%; il margine lordo totale è sceso al 43,6%; e l'EBITDA rettificato è diminuito del 5,6% a $174,9 milioni. La flotta di noleggio dell'azienda è cresciuta del 5,5% a $2,9 miliardi, mentre le tariffe medie di noleggio sono diminuite dell'1,1% rispetto all'anno precedente.
Per l'intero anno 2024, i ricavi totali sono aumentati del 3,2% a $1.516,6 milioni, con i ricavi da noleggio in aumento del 5,4% a $1.108,3 milioni. L'utile netto annuale è stato di $123,0 milioni ($3,37 per azione diluita), in calo rispetto ai $169,3 milioni del 2023.
H&E Equipment Services (NASDAQ: HEES) informó los resultados del cuarto trimestre de 2024, junto con la noticia de su próxima adquisición por parte de Herc Holdings. Los ingresos del cuarto trimestre disminuyeron ligeramente un 0,4% a $384,1 millones, mientras que la utilidad neta cayó a $32,8 millones desde $53,5 millones en comparación con el año anterior.
Los principales indicadores del cuarto trimestre incluyen: los ingresos por alquiler aumentaron un 0,8% a $319,4 millones; las ventas de equipos de alquiler disminuyeron un 30,1%; el margen bruto total cayó al 43,6%; y el EBITDA ajustado disminuyó un 5,6% a $174,9 millones. La flota de alquiler de la empresa creció un 5,5% a $2,9 mil millones, mientras que las tarifas promedio de alquiler disminuyeron un 1,1% en comparación con el año anterior.
Para el año completo de 2024, los ingresos totales aumentaron un 3,2% a $1,516.6 millones, con ingresos por alquiler que subieron un 5,4% a $1,108.3 millones. La utilidad neta anual fue de $123,0 millones ($3,37 por acción diluida), en comparación con los $169,3 millones de 2023.
H&E Equipment Services (NASDAQ: HEES)는 2024년 4분기 실적을 발표하며 Herc Holdings에 의한 인수 소식도 함께 전했습니다. 4분기 수익은 0.4% 감소하여 3억 8,410만 달러에 달했으며, 순이익은 작년 5,350만 달러에서 3,280만 달러로 감소했습니다.
4분기 주요 지표로는: 임대 수익이 0.8% 증가하여 3억 1,940만 달러에 달했으며; 임대 장비 판매는 30.1% 감소했습니다; 총 매출 총 이익률은 43.6%로 하락했으며; 조정된 EBITDA는 5.6% 감소하여 1억 7,490만 달러에 달했습니다. 회사의 임대 플릿은 5.5% 증가하여 29억 달러에 달했으며, 평균 임대 요금은 전년 대비 1.1% 감소했습니다.
2024년 전체 연도에 대해 총 수익은 3.2% 증가하여 15억 1,660만 달러에 달했으며, 임대 수익은 5.4% 증가하여 11억 830만 달러에 달했습니다. 연간 순이익은 1억 2,300만 달러(희석 주당 3.37달러)로, 2023년의 1억 6,930만 달러에서 감소했습니다.
H&E Equipment Services (NASDAQ: HEES) a annoncé les résultats du quatrième trimestre 2024, ainsi que la nouvelle de sa prochaine acquisition par Herc Holdings. Les revenus du quatrième trimestre ont légèrement diminué de 0,4% pour atteindre 384,1 millions de dollars, tandis que le bénéfice net est tombé à 32,8 millions de dollars contre 53,5 millions de dollars l'année précédente.
Les principaux indicateurs du quatrième trimestre comprennent : les revenus locatifs ont augmenté de 0,8% pour atteindre 319,4 millions de dollars ; les ventes d'équipements de location ont diminué de 30,1% ; la marge brute totale a chuté à 43,6% ; et l'EBITDA ajusté a diminué de 5,6% pour atteindre 174,9 millions de dollars. La flotte de location de l'entreprise a augmenté de 5,5% pour atteindre 2,9 milliards de dollars, tandis que les tarifs de location moyens ont diminué de 1,1% par rapport à l'année précédente.
Pour l'année complète 2024, les revenus totaux ont augmenté de 3,2% pour atteindre 1 516,6 millions de dollars, avec des revenus locatifs en hausse de 5,4% pour atteindre 1 108,3 millions de dollars. Le bénéfice net annuel était de 123,0 millions de dollars (3,37 dollars par action diluée), en baisse par rapport à 169,3 millions de dollars en 2023.
H&E Equipment Services (NASDAQ: HEES) berichtete über die Ergebnisse des vierten Quartals 2024 sowie über die bevorstehende Übernahme durch Herc Holdings. Die Einnahmen im vierten Quartal sanken leicht um 0,4% auf 384,1 Millionen Dollar, während der Nettogewinn von 53,5 Millionen Dollar im Vorjahr auf 32,8 Millionen Dollar fiel.
Wichtige Kennzahlen für das vierte Quartal sind: Die Miet-Einnahmen stiegen um 0,8% auf 319,4 Millionen Dollar; die Verkäufe von Mietgeräten sanken um 30,1%; die Gesamtbruttomarge fiel auf 43,6%; und das bereinigte EBITDA sank um 5,6% auf 174,9 Millionen Dollar. Die Mietflotte des Unternehmens wuchs um 5,5% auf 2,9 Milliarden Dollar, während die durchschnittlichen Mietpreise im Vergleich zum Vorjahr um 1,1% sanken.
Für das Gesamtjahr 2024 stiegen die Gesamteinnahmen um 3,2% auf 1.516,6 Millionen Dollar, wobei die Miet-Einnahmen um 5,4% auf 1.108,3 Millionen Dollar zunahmen. Der jährliche Nettogewinn betrug 123,0 Millionen Dollar (3,37 Dollar pro verwässerter Aktie), ein Rückgang von 169,3 Millionen Dollar im Jahr 2023.
- Total annual revenues increased 3.2% to $1,516.6 million
- Rental revenues grew 5.4% to $1,108.3 million for full-year 2024
- Rental fleet expanded 5.5% to $2.9 billion
- New equipment sales increased 109% in Q4 2024
- Q4 net income decreased 38.7% to $32.8 million
- Q4 Adjusted EBITDA declined 5.6% to $174.9 million
- Q4 rental equipment sales dropped 30.1%
- Q4 gross margin declined to 43.6% from 48.3%
- Average rental rates declined 1.1% in Q4
Insights
The Q4 2024 results reveal significant operational headwinds despite the transformative merger announcement with Herc Holdings. The 0.4% revenue decline to $384.1M masks deeper challenges in the core rental business, where key performance indicators signal potential market softening.
The rental segment's metrics paint a concerning picture: time utilization dropped 200 basis points to 66.4%, while rental rates declined
Profitability metrics show notable deterioration: gross margins contracted 470 basis points to 43.6%, while rental margins specifically declined 330 basis points to
However, the pending merger with Herc Holdings presents strategic opportunities. The combined entity's 120 years of industry experience and complementary geographic footprints could yield significant operational synergies. The company's rental fleet age of 41.7 months versus the industry average of 48.6 months positions it favorably for the integration, potentially reducing near-term capital expenditure requirements.
The decline in rental equipment sales by
BATON ROUGE, La., Feb. 21, 2025 (GLOBE NEWSWIRE) -- H&E Equipment Services, Inc. (NASDAQ: HEES) (“H&E”, the “Company”, d/b/a "H&E Rentals") today announced results for the fourth quarter and full year ended December 31, 2024. Also, the Company noted its agreement to be acquired by Herc Holdings Inc. (NYSE: HRI) announced earlier this week, which will bring together two companies with a combined 120 years of industry experience who are committed to customer service and excellence.
FOURTH QUARTER 2024 SUMMARY WITH A COMPARISON TO FOURTH QUARTER 2023
- Revenues decreased
0.4% to$384.1 million compared to$385.8 million . - Net income totaled
$32.8 million compared to$53.5 million . The effective income tax rate was13.6% compared to19.4% . - Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) decreased
5.6% to$174.9 million compared to$185.2 million . Adjusted EBITDA margin was45.5% compared to48.0% . - Total equipment rental revenues were
$319.4 million , an increase of$2.6 million , or0.8% , compared to$316.9 million . Rental revenues were$283.0 million , an increase of$2.4 million , or0.9% , compared to$280.6 million . - Sales of rental equipment decreased
30.1% to$28.4 million compared to$40.6 million . Margins declined to58.9% compared to66.0% . - Sales of new equipment totaled
$20.5 million , an increase of109.0% compared to$9.8 million . - Total gross margin declined to
43.6% compared to48.3% . - Total equipment rental gross margins were
44.9% compared to48.2% . Rental gross margins were50.9% compared to54.2% . - Average time utilization (based on original equipment cost) was
66.4% compared to68.4% . The Company’s rental fleet, based on original equipment cost, ended 2024 at approximately$2.9 billion , or growth of5.5% . - Average rental rates declined
1.1% from the year-ago quarter and0.3% on a sequential quarterly basis, excluding acquisitions completed within the last twelve months. - Dollar utilization was
38.2% compared to40.3% . - Average rental fleet age on December 31, 2024, was 41.7 months compared to an industry average age of 48.6 months.
- Paid regular quarterly cash dividend of
$0.27 5 per share of common stock.
FINANCIAL DISCUSSION FOR FOURTH QUARTER 2024
Revenue
Total revenues decreased
Gross Profit
Gross profit decreased
Rental Fleet
At the end of the fourth quarter of 2024, the original equipment cost of the Company’s rental fleet was approximately
Selling, General and Administrative ("SG&A") Expenses
SG&A expenses for the fourth quarter of 2024 were
Income from Operations
Income from operations for the fourth quarter of 2024 was
Interest Expense
Interest expense was
Net Income
Net income in the fourth quarter of 2024 was
Adjusted EBITDA
Adjusted EBITDA in the fourth quarter of 2024 decreased
FINANCIAL DISCUSSION FOR THE YEAR ENDED DECEMBER 31, 2024
Revenue
Revenues totaled
Gross Profit
Gross profit decreased
Selling, General and Administrative Expenses
SG&A expenses in 2024 were
Income from Operations
Income from operations in 2024 totaled
Interest Expense
Interest expense in 2024 was
Net Income
Net income in 2024 totaled
Adjusted EBITDA
Adjusted EBITDA for 2024 decreased
Non-GAAP Financial Measures
This press release contains certain non-GAAP (generally accepted accounting principles) measures (EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Income from Operations, Adjusted Net Income, Adjusted Net Income 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 non-cash stock-based compensation expense, the impairment of goodwill, and transaction expenses. 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 use Adjusted Income from Operations, Adjusted Net Income 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 and transaction expenses. 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.
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 will not host a conference call to discuss fourth quarter and full year 2024 reported results.
About H&E Rentals
Founded in 1961, H&E is one of the largest rental equipment companies in the nation. 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 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 products and services; (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; (16) our ability to complete the pending transaction as contemplated by the Agreement and Plan of Merger with Herc Holdings Inc., the parties’ ability to satisfy the conditions to the consummation of the cash tender offer and the other conditions set forth in the Merger Agreement; (17) risks associated with substantial costs and management resources required to consummate the exchange offer and merger; (18) the impact of certain interim covenants that we are subject to under the Herc Holdings Inc. Merger Agreement, including those that might discourage a potential third-party acquirer; (19) business uncertainties and contractual restrictions we are subject to during the pendency of the exchange offer and merger, that could disrupt our business and affect our relationships with existing and prospective employees, suppliers and other business partners; (20) risks associated with failure to consummate the merger; and (21) 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 December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues: | ||||||||||||||||
| Equipment rentals | $ | 319,425 | $ | 316,874 | $ | 1,253,325 | $ | 1,186,152 | ||||||||
| Sales of rental equipment | 28,359 | 40,598 | 139,201 | 165,074 | ||||||||||||
| Sales of new equipment | 20,461 | 9,791 | 55,597 | 39,099 | ||||||||||||
| Parts, service and other | 15,837 | 18,543 | 68,460 | 78,891 | ||||||||||||
| Total revenues | 384,082 | 385,806 | 1,516,583 | 1,469,216 | ||||||||||||
| Cost of revenues: | ||||||||||||||||
| Rental depreciation | $ | 96,340 | 88,876 | 375,330 | 347,022 | |||||||||||
| Rental expense | 42,571 | 39,649 | 173,994 | 156,818 | ||||||||||||
| Rental other | 36,935 | 35,492 | 142,434 | 128,873 | ||||||||||||
| 175,846 | 164,017 | 691,758 | 632,713 | |||||||||||||
| Sales of rental equipment | 11,668 | 13,787 | 53,674 | 65,183 | ||||||||||||
| Sales of new equipment | 16,815 | 8,291 | 45,592 | 33,569 | ||||||||||||
| Parts, service and other | 12,152 | 13,372 | 50,359 | 53,290 | ||||||||||||
| Total cost of revenues | 216,481 | 199,467 | 841,383 | 784,755 | ||||||||||||
| Gross profit | 167,601 | 186,339 | 675,200 | 684,461 | ||||||||||||
| Selling, general and administrative expenses | 116,996 | 106,620 | 455,554 | 405,432 | ||||||||||||
| Impairment of goodwill | — | — | — | 5,714 | ||||||||||||
| Gain on sales of property and equipment, net | 3,216 | 1,523 | 9,665 | 3,389 | ||||||||||||
| Income from operations | 53,821 | 81,242 | 229,311 | 276,704 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (17,590 | ) | (16,349 | ) | (72,954 | ) | (60,891 | ) | ||||||||
| Other, net | 1,707 | 1,533 | 6,189 | 7,384 | ||||||||||||
| Total other expense, net | (15,883 | ) | (14,816 | ) | (66,765 | ) | (53,507 | ) | ||||||||
| Income from operations before provision for income taxes | 37,938 | 66,426 | 162,546 | 223,197 | ||||||||||||
| Provision for income taxes | 5,174 | 12,902 | 39,564 | 53,904 | ||||||||||||
| Net income | $ | 32,764 | $ | 53,524 | $ | 122,982 | $ | 169,293 | ||||||||
| Net income per common share: | ||||||||||||||||
| Basic | $ | 0.90 | $ | 1.48 | $ | 3.39 | $ | 4.69 | ||||||||
| Diluted | $ | 0.90 | $ | 1.47 | $ | 3.37 | $ | 4.66 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 36,329 | 36,167 | 36,269 | 36,100 | ||||||||||||
| Diluted | 36,526 | 36,340 | 36,505 | 36,329 | ||||||||||||
| H&E EQUIPMENT SERVICES, INC. SELECTED BALANCE SHEET DATA (unaudited) (Amounts in thousands) | ||||||||
| December 31, 2024 | December 31, 2023 | |||||||
| Cash | $ | 16,413 | $ | 8,500 | ||||
| Rental equipment, net | 1,841,855 | 1,756,578 | ||||||
| Total assets | 2,795,530 | 2,639,886 | ||||||
| Total debt(1) | 1,453,311 | 1,434,661 | ||||||
| Total liabilities | 2,173,050 | 2,105,597 | ||||||
| Stockholders' equity | 622,480 | 534,289 | ||||||
| Total liabilities and stockholders' equity | $ | 2,795,530 | $ | 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, except per share amounts) | ||||||||||||
| Three Months Ended December 31, | ||||||||||||
| 2024 | 2024 | |||||||||||
| As Reported | Adjustment | As Adjusted | ||||||||||
| Gross profit | $ | 167,601 | $ | — | $ | 167,601 | ||||||
| Selling, general and administrative expenses | 116,996 | (4,394 | ) | (2) | 112,602 | |||||||
| Gain on sale of property and equipment, net | (3,216 | ) | — | (3,216 | ) | |||||||
| Income from continuing operations | 53,821 | 4,394 | 58,215 | |||||||||
| Interest expense | (17,590 | ) | — | (17,590 | ) | |||||||
| Other income, net | 1,707 | — | 1,707 | |||||||||
| Income from continuing operations before provision for income taxes | 37,938 | 4,394 | 42,332 | |||||||||
| Provision for income taxes | 5,174 | 1,081 | 6,255 | |||||||||
| Net income from continuing operations | $ | 32,764 | $ | 3,313 | $ | 36,077 | ||||||
| Net income | $ | 32,764 | $ | 3,313 | $ | 36,077 | ||||||
| Basic - Net income per common share(1) | $ | 0.90 | $ | 0.09 | $ | 0.99 | ||||||
| Diluted - Net income per common share(1) | $ | 0.90 | $ | 0.09 | $ | 0.99 | ||||||
| (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. | |
| (2) | Adjustment relates to transaction expenses incurred. | |
| H&E EQUIPMENT SERVICES, INC. UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Amounts in thousands, except per share amounts) | ||||||||||||
| Twelve Months Ended December 31, | ||||||||||||
| 2024 | 2024 | |||||||||||
| As Reported | Adjustment | As Adjusted | ||||||||||
| Gross profit | $ | 675,200 | $ | — | $ | 675,200 | ||||||
| Selling, general and administrative expenses | 455,554 | (4,394 | ) | (2) | 451,160 | |||||||
| Gain on sale of property and equipment, net | (9,665 | ) | — | (9,665 | ) | |||||||
| Income from continuing operations | 229,311 | 4,394 | 233,705 | |||||||||
| Interest expense | (72,954 | ) | — | (72,954 | ) | |||||||
| Other income, net | 6,189 | — | 6,189 | |||||||||
| Income from continuing operations before provision for income taxes | 162,546 | 4,394 | 166,940 | |||||||||
| Provision for income taxes | 39,564 | 1,081 | 40,645 | |||||||||
| Net income from continuing operations | $ | 122,982 | $ | 3,313 | $ | 126,295 | ||||||
| Net income | $ | 122,982 | $ | 3,313 | $ | 126,295 | ||||||
| Basic - Net income per common share(1) | $ | 3.39 | $ | 0.09 | $ | 3.48 | ||||||
| Diluted - Net income per common share(1) | $ | 3.37 | $ | 0.09 | $ | 3.46 | ||||||
| (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. | |
| (2) | Adjustment relates to transaction expenses incurred. | |
| Twelve Months Ended December 31, | ||||||||||||
| 2023 | 2023 | |||||||||||
| As Reported | Adjustment | As Adjusted | ||||||||||
| Gross profit | $ | 684,461 | $ | — | $ | 684,461 | ||||||
| Selling, general and administrative expenses | 405,432 | — | 405,432 | |||||||||
| Impairment of goodwill | 5,714 | (5,714 | ) | — | ||||||||
| Gain on sale of property and equipment, net | 3,389 | — | 3,389 | |||||||||
| Income from continuing operations | 276,704 | 5,714 | 282,418 | |||||||||
| Interest expense | (60,891 | ) | — | (60,891 | ) | |||||||
| Other income, net | 7,384 | — | 7,384 | |||||||||
| Income from continuing operations before provision for income taxes | 223,197 | 5,714 | 228,911 | |||||||||
| Provision for income taxes | 53,904 | 1,307 | 55,211 | |||||||||
| Net income from continuing operations | $ | 169,293 | $ | 4,407 | $ | 173,700 | ||||||
| Net income | $ | 169,293 | $ | 4,407 | $ | 173,700 | ||||||
| Basic - Net income per common share(1) | $ | 4.69 | $ | 0.12 | $ | 4.81 | ||||||
| Diluted - Net income per common share(1) | $ | 4.66 | $ | 0.12 | $ | 4.78 | ||||||
| (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 December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net Income | $ | 32,764 | $ | 53,524 | $ | 122,982 | $ | 169,293 | ||||||||
| Interest Expense | 17,590 | 16,349 | 72,954 | 60,891 | ||||||||||||
| Provision for income taxes | 5,174 | 12,902 | 39,564 | 53,904 | ||||||||||||
| Depreciation | 109,701 | 98,330 | 423,757 | 381,959 | ||||||||||||
| Amortization of intangibles | 2,597 | 1,407 | 10,265 | 6,455 | ||||||||||||
| EBITDA | $ | 167,826 | $ | 182,512 | $ | 669,522 | $ | 672,502 | ||||||||
| Impairment of goodwill | — | — | — | 5,714 | ||||||||||||
| Non-cash stock-based compensation expense | 2,630 | 2,722 | 11,236 | 10,026 | ||||||||||||
| Transaction expense | 4,394 | — | 4,394 | — | ||||||||||||
| Adjusted EBITDA | $ | 174,850 | $ | 185,234 | $ | 685,152 | $ | 688,242 | ||||||||
| H&E EQUIPMENT SERVICES, INC. UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Amounts in thousands) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| RENTAL | ||||||||||||||||
| Equipment rentals(1) | $ | 282,965 | $ | 280,576 | $ | 1,108,273 | $ | 1,051,632 | ||||||||
| Rental other | 36,460 | 36,298 | 145,052 | 134,520 | ||||||||||||
| Total equipment rentals | 319,425 | 316,874 | 1,253,325 | 1,186,152 | ||||||||||||
| RENTAL COST OF SALES | ||||||||||||||||
| Rental depreciation | 96,340 | 88,876 | 375,330 | 347,022 | ||||||||||||
| Rental expense | 42,571 | 39,649 | 173,994 | 156,818 | ||||||||||||
| Rental other | 36,935 | 35,492 | 142,434 | 128,873 | ||||||||||||
| Total rental cost of sales | 175,846 | 164,017 | 691,758 | 632,713 | ||||||||||||
| RENTAL REVENUES GROSS PROFIT | ||||||||||||||||
| Equipment rentals | 144,054 | 152,051 | 558,949 | 547,792 | ||||||||||||
| Rentals other | (475 | ) | 806 | 2,618 | 5,647 | |||||||||||
| Total rental revenues gross profit | $ | 143,579 | $ | 152,857 | $ | 561,567 | $ | 553,439 | ||||||||
| RENTAL REVENUES GROSS MARGIN | ||||||||||||||||
| Equipment rentals | 50.9 | % | 54.2 | % | 50.4 | % | 52.1 | % | ||||||||
| Rentals other | -1.3 | % | 2.2 | % | 1.8 | % | 4.2 | % | ||||||||
| Total rental revenues gross margin | 44.9 | % | 48.2 | % | 44.8 | % | 46.7 | % | ||||||||
| (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
What were H&E Equipment Services (HEES) Q4 2024 revenue and earnings?
How did HEES rental revenues perform in Q4 2024?
What was HEES's rental fleet value at the end of 2024?
How did HEES's rental rates change in Q4 2024?
What was HEES's full-year 2024 performance?
