H&E Equipment Services posted a 17.4-percent revenue increase in the second quarter, totaling $245.3 million compared to $209 million a year ago. Rental revenues leapt 18.8 percent to $83.7 million, compared to $70.5 million for the second quarter a year ago. EBITDA jumped 22.3 percent to $63.3 million, compared to $51.7 million in the year-ago quarter, a 25.8-percent margin, compared to a 24.7-percent margin of revenues a year ago.
Average time utilization, based on original equipment cost, was 71 percent compared to 73.5 percent a year ago, and 67.9 percent in the first quarter of 2013. Average time utilization, based on units available for rent, was 66.3 percent, compared to 68.7 percent in last year’s second quarter and 63.6 percent last quarter.
Average rental rates increased 7.3 percent compared to the year-ago quarter, and improved 2.1 percent compared to the first quarter of this years. Average rental fleet age was 35.9 months at the end of the second quarter.
“The strength and momentum in our business continued in the second quarter and was driven by solid improvement in rentals and equipment sales compared to a year ago,” said John Engquist, H&E Equipment Services CEO. “End user demand continues to build and activity regarding earthmoving equipment and cranes is strong, demonstrating improved economic confidence and cycle expansion.
“We believe our concentration and penetration in the industrial sector, particularly the oil patch and petrochemical business along the Gulf Coast, continue to be a major benefit for our business. Rising oil prices and demand for natural gas are spurring capital investment. In Louisiana, where we are headquartered, reports indicate we are in the beginning stages of one of the largest industrial expansions of our state’s history. We are also excited about the industrial expansion in markets we serve in Texas. Our less industrial-focused regions continue to strengthen as well. Our outlook for the balance of 2013 remains positive.”
For the first six months of 2013, equipment rental revenue was $159.1 million, compared to $130.1 million last year, a 22.2-percent hike. Total revenues increase to $457.7 million, compared to $382.7 million, a 19.6-percent jump.
Based in Baton Rouge, La., H&E Equipment Services is No. 8 on the RER 100.
