H&E Equipment Services, Inc. (NASDAQ: HEES) today announced operating results for the fourth quarter and year ended December 31, 2011.
FOURTH QUARTER 2011 HIGHLIGHTS
- Revenues increased 24.3% to $217.0 million versus $174.6 million a year ago. Revenues increased 17.8% from the third quarter of 2011.
- Net income increased to $7.9 million in the fourth quarter compared to a net loss of $2.5 million a year ago.
- EBITDA increased 61.3% to $43.4 million from $26.9 million a year ago, yielding a margin of 20.0% compared to 15.4% of revenues a year ago.
- Rental revenues increased 21.4%, or $11.0 million, to $62.6 million on higher time utilization, better rates, and a larger fleet compared to a year ago.
- New equipment sales increased to $86.6 million, reflecting a 36.7% increase from a year ago and an 86.0% increase from the third quarter. Increases in both comparative periods were driven by higher demand for new cranes.
- Gross margins were 25.8% as compared to 23.9% a year ago.
- Rental gross margins increased to 44.5% in the fourth quarter compared to 39.2% a year ago and 44.0% in the third quarter.
- Average time utilization (based on original equipment cost) increased to 72.3%, compared to 67.0% a year ago and 71.8% in the third quarter. Average time utilization (based on units available for rent) increased to 67.3% compared to 62.7% last year and 68.9% in the third quarter.
- Average rental rates increased 6.5% compared to a year ago.
- Dollar utilization was 33.9% in the fourth quarter compared to 30.2% a year ago and 33.7% in the third quarter.
- Rental fleet age at December 31, 2011 was 43.3 months compared to an industry average of approximately 51 months.
John Engquist, H&E Equipment Services’ president and chief executive officer, said, “The fourth quarter was exceptionally strong for our business. Our exposure to the industrial sector continues to be very beneficial for our Company. Activity related to the oil and gas industries, where we are heavily embedded, greatly increased. Commercial construction activity also showed a modest improvement during the quarter and customers demonstrated improved confidence in the recovery by making meaningful capital purchases. Our distribution business, particularly new equipment sales, far exceeded our expectations for the quarter. As a result of these improvements in market conditions and solid execution by our employees, we delivered an impressive 24.3% increase in revenue growth and a 61.3% increase in EBITDA. Net income grew to $7.9 million compared to a net loss of $2.5 million on a year-over-year basis. Every segment of our business generated solid increases in revenue and gross profit.”