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H&E Equipment Services Reports Third Quarter 2011 Results

Forward-Looking Statements

Certain statements in this press release are “forward-looking statements” within the meaning of the federal securities laws. Statements about our beliefs and expectations and statements containing the words “may,” “could,” “would,” “should,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “intend” and similar expressions constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results that differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, the following: (1) general economic conditions and construction activity in the markets where we operate in North America as well as the impact of the recent macroeconomic downturn and current conditions of the global credit markets and its effect on construction activity and the economy in general; (2) relationships with new equipment suppliers; (3) increased maintenance and repair costs as we age our fleet and decreases in our equipments’ residual value; (4) our indebtedness; (5) the risks associated with the expansion of our business; (6) our possible inability to integrate any businesses we acquire; (7) competitive pressures; (8) compliance with laws and regulations, including those relating to environmental matters; and (9) other factors discussed in our public filings, including the risk factors included in the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the SEC, we are under no obligation to publicly update or revise any forward-looking statements after the date of this release.

 

H&E EQUIPMENT SERVICES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(Amounts in thousands, except per share amounts)

 
   

Three Months Ended

   

Nine Months Ended

September 30,

September 30,

2011

   

2010

2011

   

2010

 
Revenues:
Equipment rentals $ 61,190 $ 48,272 $ 165,440 $ 126,400
New equipment sales 46,543 47,697 133,629 103,952
Used equipment sales 27,172 14,700 65,655 46,062
Parts sales 24,647 22,599 71,166 65,013
Service revenues 14,191 12,412 40,072 36,466
Other   10,546     8,164     27,570     21,643  
 
Total revenues 184,289 153,844 503,532 399,536
 
Cost of revenues:
Rental depreciation 22,076 19,628 64,146 58,260
Rental expense 12,176 10,552 34,484 29,171
New equipment sales 41,123 42,979 118,271 93,992
Used equipment sales 20,824 11,083 50,444 35,690
Parts sales 18,073 16,710 52,174 47,804
Service revenues 5,451 5,177 15,499 13,805
Other   10,825     9,795     31,862     26,630  
 
Total cost of revenues   130,548     115,924     366,880     305,352  
 
Gross profit 53,741 37,920 136,652 94,184
 
Selling, general, and administrative expenses 39,042 36,594 114,681 109,233
Gain on sales of property and equipment   372     125     521     324  
 
Income from operations 15,071 1,451 22,492 (14,725 )
 
Interest expense (7,222 ) (7,287 ) (21,607 ) (21,781 )
Other income, net   118     10     626     166  
Income (loss) before provision (benefit) for income taxes 7,967 (5,826 ) 1,511 (36,340 )
 
Provision (benefit) for income taxes   3,119     (2,046 )   447     (13,389 )
 
Net income (loss) $ 4,848   $ (3,780 ) $ 1,064   $ (22,951 )
 
NET INCOME (LOSS) PER SHARE
Basic – Net income (loss) per share $ 0.14   $ (0.11 ) $ 0.03   $ (0.66 )
Basic – Weighted average number of common shares outstanding   34,804     34,700     34,743     34,656  
 
Diluted – Net income (loss) per share $ 0.14   $ (0.11 ) $ 0.03   $ (0.66 )
Diluted – Weighted average number of common shares outstanding   34,860     34,700     34,884     34,656  
 
 

H&E EQUIPMENT SERVICES, INC.

SELECTED BALANCE SHEET DATA (unaudited)

(Amounts in thousands)

 
   

September 30,

   

December 31,

2011

2010

 
Cash $ 4,894 $ 29,149
Rental equipment, net 447,425 426,637
Total assets 734,510 734,421
 

Total debt (1)

266,223 252,754
Total liabilities 478,498 480,171
Stockholders’ equity 256,012 254,250
Total liabilities and stockholders’ equity $ 734,510 $ 734,421
 

(1) Total debt consists of the aggregate amounts outstanding on the senior secured credit facility, senior unsecured notes and capital lease obligations.

 
 

H&E EQUIPMENT SERVICES, INC.

UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Amounts in thousands)

 
   

Three Months Ended

Nine Months Ended

September 30,

September 30,

2011

   

2010

2011

2010

 
Net income (loss) $ 4,848 $ (3,780 ) $ 1,064 $ (22,951 )
Interest expense 7,222 7,287 21,607 21,781
Provision (benefit) for income taxes 3,119 (2,046 ) 447 (13,389 )
Depreciation 25,139 22,867 73,456 68,206
Amortization of intangibles   90   140     337   435  
 
EBITDA $ 40,418 $ 24,468 $ 96,911 $ 54,082




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