Equipment rental revenues jumped 26.6 percent in 2012 for H&E Equipment Services, from $228 million in 2011 to $288.6 million in 2012. Total revenues for the Baton Rouge, La.-based distributor/rental company jumped 16.2 percent from $720.6 million in 2011 to $837.3 million in 2012. Gross profit increased 33.5 percent to $257.3 million in 2012 compared to $192.7 million in 2011
EBITDA for 2012 increased $56.2 million to $196.5 million compared to $140.3 million in 2011, a 40-percent hike. EBITDA as a percentage of revenues was 23.5 percent compared to 19.5 percent in 2011.
For the fourth quarter, total revenue increased 15.3 percent to $250.1 million compared with $217 million in 2011, while rental revenues soared 28.9 percent for the quarter to $80.7 million, compared to $62.6 million in 2011, because of a larger fleet and improved rental rates.
“The momentum in our business continued in the fourth quarter, where we delivered 15.3 percent revenue growth and impressive EBITDA growth of 39.2 percent,” said John Engquist, H&E CEO. “Demand for rental equipment continued at high levels and we successfully capitalized on the opportunity as rental revenues increased 28.9 percent compared to a year ago. While our rental business continued to benefit from the secular shift occurring, every segment of our business delivered year-over-year increases in revenue and gross profit. As a result, we delivered bottom line growth of 36.2 percent in the fourth quarter.”
Engquist predicted continued strong performance in 2013.
“As we move into 2013, we continue to invest in our fleet, expand our geographic footprint and strengthen our foothold in the industrial sector to leverage improving market opportunities. The extension in the bonus depreciation deduction should prove to be positive for our distribution business. Lastly, we recently completed a successful add-on notes offering of $100 million of 7-percent senior unsecured notes due 2022, which priced at 108.5 percent of par. This notes offering enhances our liquidity profile and was leverage neutral, with the proceeds used to pay down a portion of the senior secured credit facility. From operations to capitalization, our company is well positioned for continued growth in 2013.”
At the end of the fourth quarter of 2012, the original acquisition cost of the company’s rental fleet was $883 million, an increase of $146.4 million from $736.6 million at the end of 2011. Dollar utilization was 36.4 percent compared to 33.9 percent for the fourth quarter of 2011. Dollar returns increased reflected higher year-over-year average rental rates, and the improved utilization was significant considering the larger fleet size.
H&E Equipment Services is No. 11 on the RER 100.