H&E Equipment Services, Inc. (NASDAQ: HEES) today announced results for the first quarter ended March 31, 2010.
FIRST QUARTER 2010 SUMMARY
- Revenues decreased 38.4% to $114.7 million versus $186.2 million a year ago.
- EBITDA (as defined below) decreased 71.1% to $11.0 million, or a 9.6% margin, compared to $38.1 million, or a 20.4% margin, a year ago.
- Loss from operations was $11.9 million compared to income from operations of $11.1 million a year ago.
- Net loss was $12.1 million, or ($0.35) per diluted share, compared to net income of $2.2 million, or $0.06 per diluted share, a year ago.
"As we expected, the first quarter was extremely challenging as a result of the continuous softness in our end markets combined with seasonality and severe weather that occurred across much of our footprint,” said John Engquist, H&E Equipment Services’ president and chief executive officer. “At this point, our expectations for 2010 are unchanged and therefore, we anticipate that segments of our business will continue to see low demand for our products and services. We are, however, encouraged to see improving residual values on used equipment, increased activity in our earthmoving business, which is an early cycle product, and an increase in our on rent levels that are accelerating as we move into the second quarter.”
“We remain focused on maintaining the strength of our liquidity position and balance sheet. We managed our fleet through continued reductions of $15.1 million as we entered 2010 with very weak levels of demand. Our fleet utilization bottomed in January reaching a low point of less than 48% of units on rent. Beginning in February, we achieved steady improvement and we are currently maintaining approximately 53% of our units on rent,” commented Leslie Magee, H&E Equipment Services’ chief financial officer. “With the continuation and acceleration of these positive trends in the utilization of our fleet since the end of the first quarter, we expect sequential improvement in our rental business moving forward.”