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H&E Equipment Services Reports Fourth Quarter 2011 And Full Year 2011 Results

Stocks in this article: HEES

The live broadcast of the Company’s quarterly conference call will be available online at www.he-equipment.com or www.earnings.com on March 1, 2012, beginning at 10:00 a.m. (Eastern Time) and will continue to be available for 30 days. Related presentation materials will be posted to the “Investor Relations” section of the Company’s web site at www.he-equipment.com prior to the call. The presentation materials will be in Adobe Acrobat format.

About H&E Equipment Services, Inc.

The Company is one of the largest integrated equipment services companies in the United States with 65 full-service facilities throughout the West Coast, Intermountain, Southwest, Gulf Coast, Mid-Atlantic and Southeast regions of the United States. The Company is focused on heavy construction and industrial equipment and rents, sells and provides parts and service support for four core categories of specialized equipment: (1) hi-lift or aerial platform equipment; (2) cranes; (3) earthmoving equipment; and (4) industrial lift trucks. By providing equipment rental, sales, and on-site parts, repair and maintenance functions under one roof, the Company is a one-stop provider for its customers' varied equipment needs. This full service approach provides the Company with multiple points of customer contact, enabling it to maintain a high quality rental fleet, as well as an effective distribution channel for fleet disposal and provides cross-selling opportunities among its new and used equipment sales, rental, parts sales and service operations.

Forward-Looking Statements

Certain statements in this press release are "forward-looking statements" within the meaning of the federal securities laws. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Statements containing the words "may", "could", "would", "should", "believe", "expect", "anticipate", "plan", "estimate", "target", "project", "intend", “foresee” and similar expressions constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to 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 and industrial activity in the markets where we operate in North America as well as the depth and duration of the macroeconomic downturn related to decreases in construction and industrial activities, and the impact of conditions of the global credit markets and their effect on construction spending and the economy in general; (2) relationships with 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 effectively integrate any businesses we acquire; (7) competitive pressures; (8) compliance with laws and regulations, including those relating to environmental matters and corporate governance 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. 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

Twelve Months Ended

December 31,

December 31,

2011

 

2010

2011

 

2010

 
Revenues:
Equipment rentals $ 62,598 $ 51,570 $ 228,038 $ 177,970
New equipment sales 86,582 63,351 220,211 167,303
Used equipment sales 19,692 16,224 85,347 62,286
Parts sales 23,345 21,673 94,511 86,686
Service revenues 13,882 13,163 53,954 49,629
Other   10,920     8,637     38,490     30,280  
 
Total revenues 217,019 174,618 720,551 574,154
 
Cost of revenues:
Rental depreciation 22,635 20,323 86,781 78,583
Rental expense 12,115 11,023 46,599 40,194
New equipment sales 77,881 56,673 196,152 150,665
Used equipment sales 14,598 12,579 65,042 48,269
Parts sales 17,048 16,098 69,222 63,902
Service revenues 5,525 4,946 21,024 18,751
Other   11,166     11,221     43,028     37,851  
 
Total cost of revenues   160,968     132,863     527,848     438,215  
 
Gross profit 56,051 41,755 192,703 135,939
 
Selling, general and administrative expenses 38,673 39,044 153,354 148,277
Gain on sales of property and equipment   272     119     793     443  
 
Income (loss) from operations 17,650 2,830 40,142 (11,895 )
 
Interest expense (7,120 ) (7,295 ) (28,727 ) (29,076 )
Other income, net   100     425     726     591  
 
 
 

Income (loss) before provision (benefit) for income taxes

10,630 (4,040 ) 12,141 (40,380 )
 
Provision (benefit) for income taxes   2,768     (1,531 )   3,215     (14,920 )
 
Net income (loss) $ 7,862   $ (2,509 ) $ 8,926   $ (25,460 )
   

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2011

 

2010

2011

 

2010

 
 
NET INCOME (LOSS) PER SHARE
Basic – Net income (loss) per share $ 0.23 $ (0.07 ) $ 0.26 $ (0.73 )

Basic – Weighted average number of common shares outstanding

  34,806   34,700     34,759   34,668  
 
Diluted – Net Income (loss) per share $ 0.23 $ (0.07 ) $ 0.26 $ (0.73 )

Diluted – Weighted average number of common shares outstanding

  34,898   34,700     34,887   34,668  
   

H&E EQUIPMENT SERVICES, INC. SELECTED BALANCE SHEET DATA (unaudited) (Amounts in thousands)

 

December 31,

December 31,

2011

2010

 
Cash $ 24,215 $ 29,149
Rental equipment, net 450,877 426,637
Total assets 753,305 734,421

Total debt (1)

268,660 252,754
Total liabilities 489,098 480,171
Stockholders’ equity 264,207 254,250
Total liabilities and stockholders’ equity $ 753,305 $ 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

Twelve Months Ended

December 31,

December 31,

2011

2010

2011

2010

 
Net income (loss) $ 7,862 $ (2,509 ) $ 8,926 $ (25,460 )
Interest expense 7,120 7,295 28,727 29,076
Provision (benefit) for income taxes 2,768 (1,531 ) 3,215 (14,920 )
Depreciation 25,580 23,501 99,036 91,707
Amortization of intangibles   25   124     362   559  
 
EBITDA $ 43,355 $ 26,880 $ 140,266 $ 80,962




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