H&E Equipment Services Posts 25 Percent ’05 Revenue Hike

H&E Equipment Services last week announced a 25.5 percent revenue increase in 2005, with total revenue increasing from $478.2 million in 2004 to $600.2 million in 2005. The Baton Rouge, La.-based company increased rental revenue 19 percent year over year, from $160.3 million in 2004 to $190.8 million in 2005. Dollar utilization increased from 33.9 percent in 2004 to 38.6 percent in 2004.

New equipment sales jumped 33.7 percent from $116.9 million in 2004 to $156.3 million in 2005. Used equipment sales rose 30.8 percent from $85 million in 2004 to $111.1 million in 2005. Parts sales went up 20 percent from $58.0 million to $70.1 million, while service revenues leaped 23.1 percent, from $33.7 million in 2004 to $41.5 million in 2005.

Total gross profit for 2005 was $181.6 million, a 47.3 percent leap from $123.3 million in 2004. Gross profit margin increased from 25.8 percent in 2004 to 30.3 percent in 2005.

For the fourth quarter, total revenues increased 41 percent to $185.5 million, while EBITDA jumped 66.7 percent to $42.7 million. Income from operations increased 123.6 percent to $25.9 percent, net income increased $13.1 million to $14.7 million, and rental rates increased about 13 percent.

Equipment rental increased 24.3 percent in the fourth quarter, to $54.2 million compared to $43.6 million in the fourth quarter of 2004.

“Looking to 2006, we continue to see strong growth,” said H&E CEO John Engquist. “We believe non-residential construction spending, the key driver of our business, is in the early stages of a multi-year expansion. We also anticipate continued growth in construction spending in the regions where we have focused our operations — the Southwest, Southeast, Gulf Coast and intermountain regions of the nation.”

H&E Equipment Services recently completed an initial public offering, raising about $200 million, nearly $60 million of which it used to acquire La Mirada, Calif.-based Eagle High Reach. The company is No. 10 on the RER</> 100.

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