H&E Equipment Services announced that fourth-quarter revenues increased $24 million, or 22.3 percent, and that EBITDA, adjusted for the loss of litigation recorded in 2003 increased $8.4 million year over year, or 48.6 percent.
Fourth-quarter revenues were $131.6 million compared to $107.6 million for the fourth quarter of 2003, and Q4 income from operations was $11.7 million, up year-over-year from $2.7 million.
Fourth-quarter rental revenues were $43.7 million, up from $38.6 the previous year, a 13.2-percent jump. The increase was primarily the result of a $4.7 million increase in aerial work platform rental revenue. Fourth-quarter dollar utilization increased year-over-year from 30.7 percent to 36.9 percent. Fourth-quarter gross profit from equipment rentals was $19 million, up from $12.9 million for the same period in 2003.
For the full year, revenues increased $64.2 million or 15.5 percent to $478.2 million, up from $414 million in 2003, while rental revenues increased from $153.9 million to $160.4 million.
“Our much improved performance is the result of a better environment in the equipment rental sector, an improved economy, strong demand for new and used equipment, and an intense focus on rationalizing our rental fleet in order to improve dollar returns,” said president and CEO John Engquist. “We believe demand for our products and services will continue to grow with an improving economy.” Engquist added that the fourth quarter was H&E’s strongest quarter of the year and that December was its strongest month with higher revenues, gross profit and EBITDA.
The company said gross profit margin improved for equipment rentals, new, used, parts sales and service revenues.
Based in Baton Rouge, La., H&E Equipment Services is No. 10 on the RER 100.
