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Dec 31, 2020
H&E Equipment Q4 2020 Earnings Report
H&E Equipment Services' financial performance declined in Q4 2020 due to decreased revenues and profitability, but strategic initiatives and a strong balance sheet positioned the company for future growth.
Key Takeaways
H&E Equipment Services reported a decrease in revenues by 9.3% to $315.6 million and a net loss of $(14.6) million in Q4 2020, compared to net income of $21.9 million in Q4 2019. Adjusted EBITDA also decreased by 19.8% to $101.6 million. The company successfully completed a notes offering to strengthen its balance sheet and is focusing on organic growth, tuck-in acquisitions, and entering specialty rental markets.
Revenues decreased by 9.3% to $315.6 million compared to the previous year.
Net loss was $(14.6) million, influenced by a $44.6 million pre-tax loss on early extinguishment of debt.
Adjusted EBITDA decreased by 19.8% to $101.6 million with a margin of 32.2%.
Total equipment rental revenues decreased by 13.9% to $166.8 million.
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 focusing on organic growth through warm starts, tuck-in acquisitions, and entering the specialty rental business to improve density and expand product lines.
Positive Outlook
- Significantly increasing the number of warm starts across footprint.
- Improving density in high-growth regions.
- Additional growth expected from tuck-in acquisitions of general rental businesses.
- Focused on entering the specialty rental business.
- Opportunities would be synergistic with current lines of business and fleet mix.
Challenges Ahead
- No specific negatives were mentioned in the provided text.
Revenue & Expenses
Visualization of income flow from segment revenue to net income