Loading...
•
Mar 31, 2020
H&E Equipment Q1 2020 Earnings Report
Reported a net loss due to a non-cash goodwill impairment charge, while adjusted EBITDA margin improved.
Key Takeaways
H&E Equipment Services reported a decrease in revenue for Q1 2020, primarily due to a decline in new equipment sales. The company faced challenges from the COVID-19 outbreak and weather conditions, which impacted demand and utilization. A non-cash goodwill impairment charge of $62.0 million was recorded, leading to a net loss. However, adjusted EBITDA margins improved due to a shift in revenue mix.
Revenues decreased by 8.8% to $285.9 million compared to the previous year.
A $62.0 million pre-tax non-cash goodwill impairment charge contributed to a net loss of $37.0 million.
Adjusted EBITDA decreased by 1.7% to $99.2 million, but margins improved to 34.7%.
Total equipment rental revenues saw a slight decrease of 0.9% to $174.5 million.
H&E Equipment
H&E Equipment
H&E Equipment Revenue by Segment
Revenue by Segment
Equipment Rentals Revenue
CapyFin.comSales of New Equipment Revenue
CapyFin.com Forward Guidance
The ongoing COVID-19 pandemic and related governmental restrictions present unprecedented challenges for 2020. The company remains focused on managing the business for long-term success and driving value for stockholders, leveraging a solid balance sheet and ample liquidity.
Positive Outlook
- Focus on managing the business for long-term success.
- Commitment to driving value for stockholders.
- Solid balance sheet.
- Ample liquidity.
- Confident in the talent at all levels in the company to navigate the difficulties presented by COVID-19.
Challenges Ahead
- Ongoing and evolving COVID-19 pandemic.
- Related governmental restrictions, such as stay-at-home orders.
- Unprecedented challenges for all in 2020.
- Economic impact of COVID-19 has been pervasive across the markets served.
- Significant pressure on rental fleet utilization that has continued into the second quarter due to project delays and cancellations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income