H&E Equipment Services Inc. (HEES, Financial) filed Quarterly Report for the period ended 2012-06-30.
H&e Equipment Services, Inc. has a market cap of $505.9 million; its shares were traded at around $16.43 with a P/E ratio of 25.8 and P/S ratio of 0.7.
Used Equipment Sales Gross Profit. Our used equipment sales gross profit for the three month period ended June 30, 2012 increased $2.2 million, or 43.4%, to $7.2 million from $5.0 million in the same period in 2011 on a used equipment sales increase of $0.5 million. Gross profit margin on used equipment sales for the three month period ended June 30, 2012 was 30.5%, up 8.8% from 21.7% for the same three month period in 2011, primarily as a result of the improved margins on used aerial high lift equipment and used earthmoving equipment. Our used equipment sales from the rental fleet, which comprised approximately 88.7% and 65.3% of our used equipment sales for the three month periods ended June 30, 2012 and 2011, respectively, were approximately 148.9% and 145.0% of net book value for the three month periods ended June 30, 2012 and 2011, respectively.
Equipment Rentals Gross Profit. Our gross profit from equipment rentals for the six month period ended June 30, 2012 increased $18.9 million, or 47.4%, to $58.8 million from $39.9 million in the same six month period in 2011. The increase in equipment rentals gross profit was the result of a $25.9 million increase in rental revenues for the six month period ended June 30, 2012, which was partially offset by a $1.5 million increase in rental expenses and a $5.5 million increase in rental equipment depreciation expense. The increase in rental expenses and rental equipment depreciation expense was primarily due to a larger fleet size in 2012 compared to 2011. As a percentage of equipment rental revenues, rental expenses were 18.3% for the six month period ended June 30, 2012 compared to 21.4% for the six month period ended June 30, 2011 and depreciation expense was 36.6% for the six month period ended June 30, 2012 compared to 40.4% for the same six month period in 2011. These percentage decreases were primarily attributable to the increase in comparative rental revenues.
Used Equipment Sales Gross Profit. Our used equipment sales gross profit for the six month period ended June 30, 2012 increased $6.2 million, or 70.2%, to $15.1 million from $8.9 million in the same period in 2011 on a used equipment sales increase of $11.6 million. Gross profit margin on used equipment sales for the six month period ended June 30, 2012 was 30.1%, up 7.1% from 23.0% for the same six month period in 2011, primarily as a result of improved margins of used aerial work platform equipment, used cranes and used earthmoving equipment. Our used equipment sales from the rental fleet, which comprised approximately 89.0% and 69.9% of our used equipment sales for the six month periods ended June 30, 2012 and 2011, respectively, were approximately 147.5% and 143.8% of net book value for the six month periods ended June 30, 2012 and 2011, respectively.
Selling, General and Administrative Expenses. SG&A expenses increased approximately $6.5 million, or 8.5%, to $82.1 million for the six month period ended June 30, 2012 compared to $75.6 million for the six month period ended June 30, 2011. The net increase in SG&A expenses was attributable to several factors. Employee salaries and wages and related employee expenses increased $4.9 million as a result of higher salaries, wages and payroll taxes stemming primarily from an increase from commission and incentive pay that resulted from higher rental and sales revenues. Stock-based compensation expense was $0.8 million for the six month period ended June 30, 2012 compared to $0.7 million for the same six month period last year. Legal and professional fees increased $0.6 million and bad debt expense increased $0.3 million. Promotional costs increased $0.2 million, while supplies and other corporate overhead expenses increased $0.5 million. As a percentage of total revenues, SG&A expenses were approximately 21.5% for the six month period ended June 30, 2012, a decrease of 2.2% from 23.7% for the same six month period in 2011, primarily as a result of the current year increase in total revenues.
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H&e Equipment Services, Inc. has a market cap of $505.9 million; its shares were traded at around $16.43 with a P/E ratio of 25.8 and P/S ratio of 0.7.
Highlight of Business Operations:
Equipment Rentals Gross Profit. Our gross profit from equipment rentals for the three month period ended June 30, 2012 increased $10.8 million, or 47.6%, to $33.5 million from $22.7 in the same three month period in 2011. The increase in equipment rentals gross profit was the result of a $14.7 million increase in rental revenues for the three month period ended June 30, 2012, which was partially offset by a $0.7 million increase in rental expenses and a $3.3 million increase in rental equipment depreciation expense. The increase in rental expenses and rental equipment depreciation expense was primarily due to a larger fleet size in 2012 compared to 2011. As a percentage of equipment rental revenues, rental expenses were 17.4% for the three month period ended June 30, 2012 compared to 20.7% for the three month period ended June 30, 2011 and depreciation expense was 35.1% for the three month period ended June 30, 2012 compared to 38.6% for the same three month period in 2011. These percentage decreases were primarily attributable to the increase in comparative rental revenues.Used Equipment Sales Gross Profit. Our used equipment sales gross profit for the three month period ended June 30, 2012 increased $2.2 million, or 43.4%, to $7.2 million from $5.0 million in the same period in 2011 on a used equipment sales increase of $0.5 million. Gross profit margin on used equipment sales for the three month period ended June 30, 2012 was 30.5%, up 8.8% from 21.7% for the same three month period in 2011, primarily as a result of the improved margins on used aerial high lift equipment and used earthmoving equipment. Our used equipment sales from the rental fleet, which comprised approximately 88.7% and 65.3% of our used equipment sales for the three month periods ended June 30, 2012 and 2011, respectively, were approximately 148.9% and 145.0% of net book value for the three month periods ended June 30, 2012 and 2011, respectively.
Equipment Rentals Gross Profit. Our gross profit from equipment rentals for the six month period ended June 30, 2012 increased $18.9 million, or 47.4%, to $58.8 million from $39.9 million in the same six month period in 2011. The increase in equipment rentals gross profit was the result of a $25.9 million increase in rental revenues for the six month period ended June 30, 2012, which was partially offset by a $1.5 million increase in rental expenses and a $5.5 million increase in rental equipment depreciation expense. The increase in rental expenses and rental equipment depreciation expense was primarily due to a larger fleet size in 2012 compared to 2011. As a percentage of equipment rental revenues, rental expenses were 18.3% for the six month period ended June 30, 2012 compared to 21.4% for the six month period ended June 30, 2011 and depreciation expense was 36.6% for the six month period ended June 30, 2012 compared to 40.4% for the same six month period in 2011. These percentage decreases were primarily attributable to the increase in comparative rental revenues.
Used Equipment Sales Gross Profit. Our used equipment sales gross profit for the six month period ended June 30, 2012 increased $6.2 million, or 70.2%, to $15.1 million from $8.9 million in the same period in 2011 on a used equipment sales increase of $11.6 million. Gross profit margin on used equipment sales for the six month period ended June 30, 2012 was 30.1%, up 7.1% from 23.0% for the same six month period in 2011, primarily as a result of improved margins of used aerial work platform equipment, used cranes and used earthmoving equipment. Our used equipment sales from the rental fleet, which comprised approximately 89.0% and 69.9% of our used equipment sales for the six month periods ended June 30, 2012 and 2011, respectively, were approximately 147.5% and 143.8% of net book value for the six month periods ended June 30, 2012 and 2011, respectively.
Selling, General and Administrative Expenses. SG&A expenses increased approximately $6.5 million, or 8.5%, to $82.1 million for the six month period ended June 30, 2012 compared to $75.6 million for the six month period ended June 30, 2011. The net increase in SG&A expenses was attributable to several factors. Employee salaries and wages and related employee expenses increased $4.9 million as a result of higher salaries, wages and payroll taxes stemming primarily from an increase from commission and incentive pay that resulted from higher rental and sales revenues. Stock-based compensation expense was $0.8 million for the six month period ended June 30, 2012 compared to $0.7 million for the same six month period last year. Legal and professional fees increased $0.6 million and bad debt expense increased $0.3 million. Promotional costs increased $0.2 million, while supplies and other corporate overhead expenses increased $0.5 million. As a percentage of total revenues, SG&A expenses were approximately 21.5% for the six month period ended June 30, 2012, a decrease of 2.2% from 23.7% for the same six month period in 2011, primarily as a result of the current year increase in total revenues.
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