H&E Equipment Services posted revenue of $259.2 million for the third quarter compared to $244.7 million in the third quarter of 2016, a 5.9-percent increase. Rental revenue hiked 6 percent to $125.6 million in the third quarter compared to $118.5 million a year ago.
Net income was $8.5 million in the third quarter compared to $11.7 million in the year-ago frame. Adjusted net income was $27.1 million compared to $11.7 million a year.
Adjusted EBITDA increased 8.1 percent to $88.5 million in the third quarter compared to $81.9 million a year ago, yielding a higher margin of 34.2 percent of revenues compared to 33.5 percent a year ago.
New equipment sales jumped 9.3 percent to $48.9 million in the quarter compared to $44.8 million a year ago. Average time utilization based on original equipment cost was 73.3 percent compared to 72.1 percent a year ago. Average time utilization based on units available for rent was 71.2 percent compared to 68 percent a year ago.
Average rental rates increased 0.3 percent compared to a year ago and 1 percent sequentially. Average age of the rental fleet on Sept 30 was 34.3 months.
“Our rental business performed extremely well during the third quarter, capitalizing on the strong broad-based demand in the non-residential construction markets we serve,” said John Engquist, H&E Equipment Services’ CEO. “We achieved positive rates for the second consecutive quarter on both a year-over-year and sequential basis. Project activity was solid across our operating footprint resulting in a 120-basis point improvement in physical utilization and a 6-percent increase in equipment rental revenues. While new equipment sales increased 9.3 percent driven primarily by a 29.6-percent improvement in new crane sales, volumes remain low compared to historical levels due to the ongoing weak demand for new cranes.
“We continue to evaluate acquisitions that are complementary to our business and broaden our geographic footprint and coverage density. Additionally, we are continuing our greenfield growth strategy. We believe the current trends in our end-user markets remain favorable and customer sentiment is positive regarding project visibility into 2018.”
For the first nine months of 2017, equipment rental revenue rose 6.4 percent from $330 million in the first nine months of 2016 to $351.3 million this year. Total revenue was largely flat for the first nine months at $735.3 million this year compared to $733.8 million a year ago.
H&E Equipment Services is based in Baton Rouge, La., and is No. 9 on the RER 100. At the close of trading Friday, H&E's stock was trading at $32.49.