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    H&E Equipment Services Enjoys 26.4-Percent Rental Revenue Jump in Q1

    May 2, 2013

    H&E Equipment Services increased revenue 22.3 percent to $212.4 million in the first quarter, compared to $173.7 million in last year’s first quarter. Rental revenue scored even better, jumping 26.4 percent to $75.4 million, compared to $59.7 million a year ago, as a result of higher rates and a larger fleet. Net income increased 20.8 percent to $4.8 million in the first quarter, compared to $4 million a year ago, while EBITDA jumped 32.6 percent to $51.3 million compared to $38.7 million a year ago, yielding a margin of 24.2 percent compared to 22.3 percent of revenues a year ago.

    New equipment sales increased 30.1 percent to $53.3 million year over year. Gross margins were 30.4 percent, compared to 30.3 percent in the year-ago quarter. Rental gross margins increased to 44.6 percent in the quarter, compared to 42.4 percent in the year-ago frame.

    Average time utilization, based on original equipment cost, was 67.9 percent, compared to 69.5 percent a year ago. Average time utilization, based on units available for rent, was 63.6 percent compared to 65.8 percent last year. Dollar utilization was 33.9 percent in the first quarter compared to 32.3 percent a year ago.

    Average rental rates increased 10.2 percent compared to a year ago and 2.1 percent compared to the fourth quarter of 2012. Average rental fleet age on March 31 was 37.6 months compared to an industry average age of 48 months, H&E said.

    “Our business is off to a solid start in 2013, as we continued to capitalize on improving market conditions, especially the high demand for rental equipment,” said John Engquist, H&E Equipment Services CEO. “As a result, our first-quarter performance improved significantly from a year ago, with increases in revenue, operating income and EBITDA of 22.3 percent, 52.6 percent and 32.6 percent respectively. Our rental business continued to experience healthy gains, with revenues increasing 26.4 percent on rate gains of 10.2 percent compared to a year ago. The distribution side of our business also performed well, as demonstrated by strong double-digit revenue growth in both new and used equipment sales.”

    Based in Baton Rouge, La., H&E Equipment Services is No. 11 on the RER 100.