H&E Equipment Services last week announced a 22 percent year-over-year increase in third-quarter revenue, jumping from $121 million in the third quarter of 2004, to $148.5 million in this year’s third quarter. Rental revenue enjoyed a 19.7-percent bounce from $42.1 million in Q304 to $50.4 million this year.
Revenue for the first nine months of 2005 also showed a strong increase, from $346.6 million last year to $414.7 million this year, a 19.6 percent hike. Rental revenue for the first nine months increased from $116.7 million last year to $136.6 this year.
Third quarter gross profit increased 40.1 percent, or $13.4 million year over year while third quarter net income jumped $9.5 million from a $1.2 million loss to an $8.2 million gain. Third quarter earnings before interest, taxes, depreciation and amortization increased $12.2 million year over year or 54.7 percent.
“During the third quarter, we saw significant improvement in virtually all aspects of our business,” said John Engquist, president and CEO. “We continued to see positive results from our initiative to raise rental rates, which has increased our dollar utilization significantly. Non-residential construction, the primary driver of our business, remained strong and created increased demand for our products and services.”
In rental, increases occurred throughout H&E’s product lines, with the majority of the increase resulting from aerial work platform rental revenue. At the end of the third quarter of 2005, the original acquisition cost of the rental fleet was $510.6 million, up $37.5 million from $473.1 million at the end of the third quarter of 2004. Dollar utilization for the third quarter increased from 35.5 percent last year to 39.9 percent in 2005.
New equipment sales were also strong with third quarter revenue totaling $36.2 million, up 25.7 percent from last year’s total of $28.8 million.
In other company news, Bradley Barber was recently promoted to executive vice president and general manager, a new executive position within the company.
The new position greatly expands Barber’s responsibilities. He will oversee all sales, rentals and marketing operations. Barber was previously vice president of rental operations for the company.
With an emphasis on cranes, aerial work platforms, earth-moving equipment and lift trucks, Baton Rouge, La.-based H&E Equipment Services is No. 10 on the RER 100.
