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Mar 31, 2021
H&E Equipment Q1 2021 Earnings Report
H&E Equipment Services' first quarter results were announced, revealing a slight decrease in revenues but a return to net income.
Key Takeaways
H&E Equipment Services reported a decrease in revenue by 2.6% to $278.4 million compared to the previous year. However, the company returned to profitability with a net income of $4.2 million, a significant improvement from the net loss of $(37.0) million in the same quarter last year. Adjusted EBITDA decreased by 16.2% to $83.2 million.
Revenues decreased by 2.6% to $278.4 million.
Net income was $4.2 million, a significant turnaround from a net loss of $(37.0) million a year ago.
Adjusted EBITDA decreased by 16.2% to $83.2 million.
The company opened two new branches and has opened five new locations in the second quarter.
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
H&E Equipment Services is optimistic about opportunities this year as rental metrics are steadily improving and they remain extremely focused on executing their growth strategy.
Positive Outlook
- Physical utilization surpassed early March 2020 levels.
- Physical utilization is currently averaging considerably higher than a year ago.
- Rental rates stabilize and expect continued improvement as we progress into stronger seasonal quarters.
- Used equipment prices have improved, which indicates a healthy balance in equipment within the markets we serve.
- Forward-looking industry indicators like the ABI and DMI have also shown solid improvement in recent months.
Challenges Ahead
- Financial results for the quarter were impacted by the historic winter storm in February.
- Approximately 40% of locations were closed for nearly a week.
- Several areas within footprint were without power and water for weeks.
- Adjusted EBITDA decreased 16.2%, or $16.0 million.
- Margins were negatively impacted by revenue mix as higher margin rental revenues and parts and service sales decreased while revenues from our lower margin distribution business increased compared to a year ago.
Revenue & Expenses
Visualization of income flow from segment revenue to net income