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Jun 30, 2020

H&E Equipment Q2 2020 Earnings Report

H&E Equipment Services experienced a challenging period due to the COVID-19 outbreak and subsequent economic slowdown.

Key Takeaways

H&E Equipment Services reported a decrease in revenue by 16.6% to $278.3 million compared to the previous year. Net income decreased to $8.8 million, and adjusted EBITDA decreased by 19.3% to $95.3 million.

Revenues decreased 16.6% to $278.3 million.

Net income was $8.8 million compared to $22.6 million a year ago.

Adjusted EBITDA decreased 19.3% to $95.3 million.

Total equipment rental revenues decreased 19.0% to $155.8 million.

Total Revenue
$278M
Previous year: $334M
-16.6%
EPS
$0.24
Previous year: $0.63
-61.9%
33.1%
Previous year: 37.4%
-11.5%
59.5%
Previous year: 71.2%
-16.4%
29.6%
Previous year: 36.5%
-18.9%
Gross Profit
$92.1M
Previous year: $125M
-26.2%
Free Cash Flow
$123M
Previous year: $84.5M
+45.0%
Total Assets
$1.78B
Previous year: $2.06B
-13.6%

H&E Equipment

H&E Equipment

H&E Equipment Revenue by Segment

Forward Guidance

The company anticipates that the headwinds related to COVID-19 will persist throughout the balance of the year, with tremendous uncertainty regarding the cadence of the economic recovery, including the outlook for the non-residential construction markets.

Challenges Ahead

  • Headwinds related to COVID-19 will persist throughout the balance of this year.
  • Tremendous uncertainty regarding the cadence of the economic recovery.
  • Uncertainty in the outlook for the non-residential construction markets.

Revenue & Expenses

Visualization of income flow from segment revenue to net income