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Mar 31, 2022

H&E Equipment Q1 2022 Earnings Report

Reported strong year-over-year performance driven by excellent industry conditions, seasonally robust utilization, and improved equipment rental rates.

Key Takeaways

H&E Equipment Services reported a 13.3% increase in revenues to $272.5 million and a significant rise in net income to $16.3 million in Q1 2022, compared to $240.4 million and $1.9 million respectively in Q1 2021. Adjusted EBITDA also saw a substantial increase of 34.5%, reaching $103.4 million.

Revenues increased by 13.3% to $272.5 million compared to the first quarter of 2021.

Net income increased to $16.3 million, a significant rise from $1.9 million in the prior year.

Adjusted EBITDA totaled $103.4 million, representing a 38.0% margin of revenues.

Total equipment rental revenues increased by 30.0% to $199.2 million.

Total Revenue
$272M
Previous year: $278M
-2.2%
EPS
$0.45
Previous year: $0.11
+309.1%
Gross Margin
41%
Previous year: 33.4%
+22.8%
Time Utilization
70.4%
Previous year: 63.5%
+10.9%
Dollar Utilization
37.6%
Previous year: 32%
+17.5%
Gross Profit
$112M
Previous year: $93M
+20.0%
Free Cash Flow
$27.8M
Previous year: $39.6M
-29.7%
Total Assets
$2.12B
Previous year: $2.05B
+3.4%

H&E Equipment

H&E Equipment

H&E Equipment Revenue by Segment

Forward Guidance

The full-year outlook for the equipment rental business is excellent, driven by growing non-residential construction and industrial activity.

Positive Outlook

  • End-markets are displaying impressive strength.
  • Non-residential construction is growing.
  • Industrial activity is increasing.
  • Capital expenditure of $550 million to $600 million is appropriately timed.
  • Capital expenditure positions the Company to address the expected growth across regions of operation.

Challenges Ahead

  • No specific negatives were mentioned in the provided context.

Revenue & Expenses

Visualization of income flow from segment revenue to net income