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Dec 31, 2019

H&E Equipment Q4 2019 Earnings Report

H&E Equipment Services reported results for Q4 2019, which included a non-cash goodwill impairment charge.

Key Takeaways

H&E Equipment Services' Q4 2019 revenues increased by 0.6% to $348.1 million compared to the previous year. Net income decreased by 12.5% to $21.9 million, but excluding a goodwill impairment charge, net income increased by 27.2% to $31.9 million. Adjusted EBITDA increased by 10.7% to $126.8 million.

Revenues increased 0.6% to $348.1 million versus $346.0 million a year ago.

Net income decreased 12.5% to $21.9 million in the fourth quarter compared to net income of $25.1 million a year ago.

Adjusted EBITDA increased 10.7% to $126.8 million in the fourth quarter compared to $114.6 million a year ago.

Total equipment rental revenues for the fourth quarter of 2019 were $193.8 million, an increase of $14.0 million, or 7.8%, compared to $179.8 million a year ago.

Total Revenue
$348M
Previous year: $346M
+0.6%
EPS
$0.88
Previous year: $0.7
+25.7%
Gross Margin
36.9%
Previous year: 35.6%
+3.7%
Equipment Rental Gross Margin
45.6%
Previous year: 46.7%
-2.4%
Time Utilization
69%
Previous year: 72.9%
-5.3%
Gross Profit
$129M
Previous year: $123M
+4.4%
Free Cash Flow
$100M
Previous year: $101M
-1.3%
Total Assets
$1.97B
Previous year: $1.73B
+14.3%

H&E Equipment

H&E Equipment

H&E Equipment Revenue by Segment

Forward Guidance

Based on current industry indicators and customer sentiment, the non-residential construction markets are expected to be stable in 2020. Increasing the scale and scope of the rental business through selective acquisitions and organic expansion remains a high priority.

Positive Outlook

  • Non-residential construction markets are expected to be stable in 2020.
  • Increasing the scale and scope of rental business.
  • Selective acquisitions.
  • Organic expansion.
  • Prioritizing rental business growth.

Revenue & Expenses

Visualization of income flow from segment revenue to net income