H&E Equipment Services, Inc. (NASDAQ: HEES) today announced results for the third quarter ended September 30, 2011.
THIRD QUARTER 2011 HIGHLIGHTS:
- Revenues increased 19.8% to $184.3 million versus $153.8 million a year ago.
- Net income increased to $4.8 million in the third quarter compared to a net loss of $3.8 million a year ago.
- EBITDA increased 65.2% to $40.4 million from $24.5 million, yielding a margin of 21.9% compared to 15.9% of revenues a year ago.
- Rental revenues increased 26.8%, or $12.9 million, to $61.2 million on higher time utilization, better rates, and a larger fleet compared to a year ago.
- Solid demand in distribution business with an 84.8% increase to $27.2 million in used equipment sales and a 10.9% increase to $38.8 million in parts and service revenues versus a year ago.
- Gross margin was 29.2% as compared to 24.6% a year ago. Rental gross margins increased to 44.0% compared to 37.5% a year ago.
- Average time utilization (based on units available for rent) increased to 68.9% compared to 62.3% last year and 67.1% last quarter. Average time utilization (based on original equipment cost) increased to 71.8% compared to 65.9% a year ago and 70.0% in the second quarter of 2011.
- Average rental rates increased 8.9% compared to a year ago and improved 4.1% compared to the second quarter of this year. Results included the second consecutive quarter of both positive year-over-year and sequential rental pricing.
- Dollar utilization was 33.7% as compared to 29.2% a year ago.
“The third quarter was another strong quarter for our business as we grew rental revenue in excess of 25% compared to a year ago for the fourth consecutive quarter,” said John Engquist, H&E Equipment Services’ president and chief executive officer. “Our distribution business also showed solid performance despite the modest rate of recovery in the construction markets. Also, we were very pleased with a 141% increase in our pre-tax earnings on a sequential basis even though revenues were consistent in the second and third quarters. We continue to focus on profitable growth and are benefitting from operating leverage in our business model.”