H&E Equipment Services, Inc. (NASDAQ: HEES) today announced results for the first quarter ended March 31, 2011.
FIRST QUARTER 2011 HIGHLIGHTS
- Revenues grew in all segments, reflecting a 17.6% year-over-year increase to $134.9 million in total revenues.
- Rental revenues increased 33.0% from a year ago to $48.5 million.
- Gross margins were 26.0% as compared to 20.8% a year ago. Rental gross margins increased to 35.4% compared to 21.7% a year ago.
- Average time utilization (based on units available for rent) increased to 61.0% compared to 49.7% last year. Average time utilization (based on original equipment cost) increased to 64.9% compared to 51.2% a year ago.
- Average rental rates turned positive in March on a year-over-year basis.
- Dollar utilization was 27.9% in the first quarter compared to 22.0% a year ago.
- Average rental fleet age at March 31, 2011 was 43.2 months compared to an industry average of approximately 53 months.
- EBITDA increased 93.6% to $21.3 million from $11.0 million, yielding a margin of 15.8% compared to 9.6% of revenues a year ago.
“We are extremely pleased with our first quarter results and the ongoing improvements in our business,” said John Engquist, H&E Equipment Services’ president and chief executive officer. “Despite normal seasonality that was compounded by historically inclement weather in many of our end markets, our business delivered solid year-over-year improvements in revenue, gross profit and EBITDA. The trends in our rental business remain particularly strong as revenue increased 33.0%, gross profit increased 116.7% and gross margins increased from 21.7% to 35.4% despite a slight decline in rental rates from a year ago. We were pleased to see rates turn positive on a year-over-year basis in the month of March. Furthermore, the second quarter has started on a positive note with solid year-over-year gains in April rental rates. Visibility in our distribution business remains limited. While new earthmoving equipment sales were strong, the lack of large crawler crane sales negatively impacted new equipment sales compared to the fourth quarter.”