H&E Equipment Services, Inc. (NASDAQ: HEES) today announced results for the second quarter ended June 30, 2013.
SECOND QUARTER 2013 HIGHLIGHTS:
- Revenues increased 17.4% to $245.3 million versus $209.0 million a year ago.
- Net income was $10.8 million in the second quarter compared to net income of $10.5 million a year ago.
- EBITDA increased 22.3% to $63.3 million from $51.7 million, yielding a margin of 25.8% of revenues compared to 24.7% of revenues a year ago.
- Rental revenues increased 18.8%, or $13.2 million to $83.7 million on better rates and a larger fleet compared to a year ago.
- Gross margins were consistent at 30.7% in both periods.
- Average time utilization (based on original equipment cost) was 71.0% compared to 73.5% a year ago and 67.9% in the first quarter of 2013. Average time utilization (based on units available for rent) was 66.3% compared to 68.7% last year and 63.6% last quarter.
- Achieved positive year-over-year and sequential rental pricing in the second quarter. Average rental rates increased 7.3% compared to a year ago and improved 2.1% from the first quarter of this year.
- Dollar utilization was 35.8% as compared to 35.6% a year ago.
- Average rental fleet age at June 30, 2013 was 35.9 months, down slightly from the end of the last quarter and younger than the industry average age of 47 months.
John Engquist, H&E Equipment Services’ chief executive officer, said, “The strength and momentum in our business continued in the second quarter and was driven by solid improvement in rentals and equipment sales compared to a year ago. Total revenues increased 17.4%, primarily as a result of an 18.8% increase in rental revenues and a 22.4% increase in our combined new and used equipment sales, which remain strong in terms of both demand and margin contribution. As a result, EBITDA increased 22.3% from a year ago. End user demand continues to build and activity regarding earthmoving equipment and cranes is strong, demonstrating improved economic confidence and cycle expansion.”