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H&E Equipment Services Inc. Reports Operating Results (10-Q)

August 06, 2010 | About:
10qk

10qk

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H&E Equipment Services Inc. (HEES) filed Quarterly Report for the period ended 2010-06-30.

H&e Equipment Services Inc. has a market cap of $300.5 million; its shares were traded at around $8.61 with and P/S ratio of 0.5. HEES is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Columbia Wanger of Columbia Wanger Asset Management.
This is the annual revenues and earnings per share of HEES over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of HEES.


Highlight of Business Operations:

Equipment Rental Revenues. Our revenues from equipment rentals for the three month period ended June 30, 2010 decreased $8.4 million, or 16.8%, to $41.7 million from $50.1 million in the same three month period in 2009. Revenues from aerial work platforms decreased $5.8 million and cranes decreased $2.3 million. These decreases were due to lower demand resulting from the macroeconomic downturn and the other factors discussed above. Rental revenues from lift trucks decreased $2.0 million, primarily as a result of the Arnold Transaction. These decreases were partially offset by an increase in earthmoving equipment rentals of $1.0 million and an increase of approximately $0.7 million in other equipment rentals. Our average rental rates for the three month period ended June 30, 2010 declined 9.3% compared to the same three month period in 2009.

New Equipment Sales Revenues. Our new equipment sales for the three month period ended June 30, 2010 decreased $30.3 million, or 51.1%, to $29.0 million from $59.3 million for the comparable period in 2009. Sales of new cranes decreased $27.5 million, reflecting lower demand due to the macroeconomic downturn and the other factors discussed above. Sales of new lift trucks decreased $1.2 million largely as a result of the Arnold Transaction. Sales of new earthmoving equipment decreased $1.3 million, while sales of new other equipment decreased approximately $0.5 million. Partially offsetting these new equipment sales decreases were increases in the sales of new aerial work platforms of $0.2 million.

Used Equipment Sales Revenues. Our used equipment sales decreased approximately $2.5 million, or 12.4%, to $17.9 million for the three month period ended June 30, 2010, from approximately $20.4 million for the same three month period in 2009, primarily as a result of lower demand for used equipment. Sales of used aerial work platform equipment and used cranes decreased $2.5 million and $0.4 million, respectively, while sales of used other equipment decreased approximately $0.3 million. These decreases were partially offset by an increase in sales of used earthmoving equipment of $0.7 million.

Parts Sales Revenues. Our parts sales decreased approximately $3.5 million, or 13.5%, to $22.8 million for the three month period ended June 30, 2010 from $26.3 million for the same three month period in 2009. The decline in parts revenues was due to a decrease in customer demand for parts due to the decline in construction and industrial activity in the past year.

Services Revenues. Our services revenues for the three month period ended June 30, 2010 decreased $2.9 million, or 18.8%, to $12.6 million from $15.5 million for the same three month period last year. The decline in service revenues was largely due to a decrease in demand for services due to the decline in construction and industrial activity in the past year.

Non-Segmented Other Revenues. Our non-segmented other revenues consisted primarily of equipment support activities including transportation, hauling, parts freight and damage waiver charges. For the three month period ended June 30, 2010, our other revenues were $7.1 million, a decrease of $1.5 million, or 17.8%, from $8.6 million in the same three month period in 2009. The decrease was primarily due to a decrease in the volume of these services in conjunction with the decline of our primary business activities.

Read the The complete Report

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