H&E Equipment Services Hikes Revenue 8.6 Percent in First Quarter
H&E Equipment Services posted $247 million in first quarter revenue compared to $227.4 million in the first quarter last year, an 8.6-percent hike. Rental revenues increased 1.4 percent at $104.2 million, compared to $102.8 million during Q115. Net income was down slightly at $5.6 million compared to $6.1 million a year ago. EBITDA was largely flat at $69.1 million compared to $69.3 million in the year-ago quarter.
New equipment sales leapt 28.4 percent to $57.2 million in the first quarter compared to $44.5 million in the year-ago frame. Parts and service revenue jumped 5.3 percent to $44.3 million compared to $42 million last year. Average time utilization based on original equipment cost was 66.3 percent compared to 67.5 percent in the first quarter of 2015. Average time utilization based on units available for rent was 64.6 percent compared to 64.2 percent in the year-ago quarter, while average rental rates decreased 0.1 percent.
Average rental fleet age was 31.5 months.
“The ongoing strength in our rental business coupled with an unexpected increase in demand from our distribution business produced solid results for the first quarter,” said H&E Equipment Services CEO John Engquist. “Non-residential construction activity in our end user markets, especially the industrial sector, remains strong. Demand for rental equipment continued to increase during the quarter compared to a year ago and as we anticipated, rates remained near year-ago levels. Our rental business, specifically earthmoving equipment and cranes, did face some headwinds during the quarter resulting from the heavy rains and associated flooding that occurred in Louisiana, Texas and Arkansas, and the continued weakness in the oil patch. New equipment sales exceeded our expectations during the quarter primarily as a result of higher earthmoving sales, but we do not currently anticipate this level of activity to continue during the remainder of the year.
“As we move further into 2016, out outlook remains positive as the non-residential construction markets we serve remain healthy. Our Gulf Coast market has continued to be the sweet spot for our business due to the high levels of industrial activity, new non-residential construction starts and demand from a wide array of the large capital projects breaking ground.”
H&E Equipment Services, No. 7 on the RER 100, is based in Baton Rouge, La.
