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Sep 30, 2021
H&E Equipment Q3 2021 Earnings Report
H&E Equipment Services reported an increase in revenue and net income for the third quarter of 2021.
Key Takeaways
H&E Equipment Services, Inc. reported a 10.4% increase in revenues to $319.4 million and a net income of $29.5 million for the third quarter of 2021, compared to $289.3 million and $10.1 million respectively in the third quarter of 2020. The company highlighted improved fleet utilization and rental rate appreciation, making progress toward becoming a pure-play rental business.
Revenues increased 10.4% to $319.4 million compared to Q3 2020.
Net income was $29.5 million compared to $10.1 million in Q3 2020.
Adjusted EBITDA increased 20.6% to $119.1 million compared to the same quarter of 2020.
Average time utilization was 71.9% compared to 63.5% a year ago.
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
Company expects to establish no fewer than 10 new branches in 2022.
Positive Outlook
- Broadening industrial recovery led by non-residential construction activity.
- Physical utilization during October peaked at 75%, best measure since 2018.
- Strong operational execution and continued strong demand as we entered the final quarter of 2021
- Industry indicators continue to signal the likelihood for further non-residential project expansion in 2022
- Exit from the crane distribution business, as well as the sale of two earthmoving distribution branches represent significant steps we are taking to advance H&E’s strategic transition to a pure equipment rental business.
Challenges Ahead
- Global supply chain challenges
Revenue & Expenses
Visualization of income flow from segment revenue to net income