This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

H&E Equipment Services Reports Fourth Quarter 2012 Results

Stocks in this article: HEES

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” 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 activity 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 INCOME (unaudited)
(Amounts in thousands, except per share amounts)
 
   

Three Months Ended December 31,

 

Twelve Months Ended December 31,

2012

 

2011

2012

 

2011

Revenues:
Equipment rentals $ 80,700 $ 62,598

$

288,641

$

228,038

New equipment sales 87,011 86,582 241,721 220,211
Used equipment sales 29,463 19,692 104,563 85,347
Parts sales 25,460 23,345 99,621 94,511
Service revenues 14,939 13,882 56,554 53,954
Other 12,544 10,920 46,215 38,490
Total revenues 250,117 217,019 837,315 720,551
 
Cost of revenues:
Rental depreciation 28,239 22,635 102,966 86,781
Rental expense 13,677 12,115 50,052 46,599
New equipment sales 77,252 77,881 214,197 196,152
Used equipment sales 20,562 14,598 73,988 65,042
Parts sales 18,497 17,048 72,323 69,222
Service revenues 6,070 5,525 21,977 21,024
Other 12,327 11,166 44,510 43,028
Total cost of revenues 176,624 160,968 580,013 527,848
 
Gross profit 73,493 56,051 257,302 192,703
 
Selling, general, andadministrative expenses 45,149 38,673 169,653 153,354
Gain on sales of property andequipment, net 114 272 1,592 793
 
Income from operations 28,458 17,650 89,241 40,142
 
Loss on early extinguishment of debt

-

-

(10,180 )

-

Interest expense

(11,873

)

(7,120

)

 

(35,541 ) (28,727 )
Other income, net 177 100 928 726
 
Income before provisionfor income taxes 16,762 10,630 44,448 12,141
 
Provision for income taxes 6,058 2,768 15,612 3,215
 
Net income

$

10,704

$

7,862

$

28,836

$

8,926

 
NET INCOME PER SHARE
Basic – Net income per share

$

0.31

$

0.23

$

0.83

$

0.26

Basic – Weighted average number ofcommon shares outstanding 34,958 34,806 34,890 34,759
 
Diluted – Net income per share

$

0.31

$

0.23

$

0.82

$

0.26

Diluted – Weighted average number ofcommon shares outstanding 35,022 34,898 34,978 34,887
Dividends declared per common share

$

-

$

-

$

7.00

$

-

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

December 31,

 

December 31,

2012 2011
Cash

 

$

8,894

 

$

24,215

Rental equipment, net 583,349 450,877
Total assets 942,399 753,305
Total debt (1) 690,166 268,660
Total liabilities 893,763 489,098
Stockholders’ equity 48,636 264,207
Total liabilities and stockholders’ equity

 

$

942,399

 

$

753,305

 

(1) Total debt consists of the aggregate amounts outstanding on the senior secured credit facility, senior unsecured notes and capital lease obligations. Total debt as presented as of December 31, 2012 includes $8.9 million of unaccreted note discount related to the Company’s senior unsecured notes.

H&E EQUIPMENT SERVICES, INC.
UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands)
 
   

Three Months Ended December 31

 

Twelve Months Ended December 31

 

2012

   

2011

 

2012

   

2011

 
Net income

$

10,704

$

7,862

$

28,836

$

8,926

Interest expense 11,873 7,120 35,541 28,727
Provision for income taxes 6,058 2,768 15,612 3,215
Depreciation 31,723 25,580 116,447 99,036
Amortization of intangibles   -   25   66   362
 
EBITDA

$

60,358

$

43,355

$

196,502

$

140,266

 
Loss on early extinguishment of debt   -   -   10,180   -
 
Adjusted EBITDA

$

60,358

$

43,355

$

206,682

$

140,266

 
H&E EQUIPMENT SERVICES, INC.
UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share amounts)
 
   

Twelve Months Ended December 31, 2012

As Reported

 

Adjustment (1)

 

Adjusted

Income before provision for income taxes

$44,448 $10,180 $54,628
 
Provision for income taxes   15,612   3,573   19,185
 
Net income $ 28,836 $ 6,607 $ 35,443
 
NET INCOME PER SHARE
Basic – Net income per share $ 0.83 $ 1.02
Diluted – Net income per share $ 0.82 $ 1.01
 

Weighted average number of common shares outstanding

Basic   34,890   34,890
Diluted   34,978   34,978
 

(1) Adjustment includes premium paid to repurchase or redeem the Company’s 8 3/8% senior unsecured notes and the write-off of unamortized deferred transaction costs.

Copyright Business Wire 2010
7 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,677.90 +216.58 1.32%
S&P 500 1,950.82 +23.71 1.23%
NASDAQ 4,452.7920 +69.9450 1.60%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs