H&E Equipment Services Inc. announced first quarter results, including a 26.4% increase in rental revenues, up $15.7 million to $75.4 million, due to higher rates and a larger fleet compared to a year ago.
John Engquist, H&E Equipment Services’ chief executive officer, said, “Our business is off to a solid start in 2013 as we continued to capitalize on improving market conditions, especially the high demand for rental equipment. As a result, our first quarter performance improved significantly from a year ago, with increases in revenue, operating income and EBITDA of 22.3%, 52.5% and 32.6%, respectively. Our rental business continued to experience healthy gains, with revenues increasing 26.4% on rate gains of 10.2% compared to a year ago. The distribution side of our business also performed well, as demonstrated by strong double digit revenue growth in both new and used equipment sales.”
Engquist concluded, “We believe the construction industry is in the early stages of a multi-year expansion cycle, and our outlook for 2013 remains positive. We expect continued fleet investment during the year based on current and expected demand levels. With our increasing exposure in the industrial sector, we believe we are positioned to capture additional market share, realize economies of scale and drive operational efficiencies throughout 2013.”
FIRST QUARTER 2013 HIGHLIGHTS
- Revenues increased 22.3% to $212.4 million versus $173.7 million a year ago with revenues increasing in all segments.
- Net income increased 20.8% to $4.8 million in the first quarter compared to net income of $4.0 million a year ago.
- EBITDA increased 32.6% to $51.3 million from $38.7 million a year ago, yielding a margin of 24.2% compared to 22.3% of revenues a year ago.
- Rental revenues increased 26.4%, or $15.7 million, to $75.4 million on higher rates and a larger fleet compared to a year ago.
- New equipment sales increased to $53.3 million, reflecting a 30.1% increase from a year ago.
- Gross margins were 30.4% as compared to 30.3% a year ago.
- Rental gross margins increased to 44.6% in the first quarter compared to 42.4% a year ago.
- Average time utilization (based on original equipment cost) was 67.9% compared to 69.5% a year ago. Average time utilization (based on units available for rent) was 63.6% compared to 65.8% last year.
- Average rental rates increased 10.2% compared to a year ago and 2.1% compared to the fourth quarter of 2012.
- Dollar utilization was 33.9% in the first quarter compared to 32.3% a year ago.
- Average rental fleet age at March 31, 2013 was 37.6 months compared to an industry average age of 48 months.