Skip navigation

H&E Equipment Services Announces Preliminary 2Q Revenues of $198 Million

H&E Equipment Services last week announced selected preliminary financial results for its second quarter 2006. While the company has not yet completed its financial statements for its second quarter ended June 30, 2006, it currently expects to report total revenues of at least $198 million for the three months ended June 30, 2006, compared to approximately $138 million for the same three-month period in 2005, an increase of at least $60 million, or 43 percent.

The company said it also expects to report a significant increase in operating margin for the three months ended June 30, 2006, as compared to the operating margin of approximately 10.7 percent for the same three-month period in 2005. The expected increases in second-quarter revenues and operating margin are primarily due to the impact of the first full quarter of results from its acquisition of Eagle High Reach Equipment in late February 2006, as well as to higher rental and utilization rates, a larger rental fleet, and an increase in demand for new and used equipment.

These selected second-quarter financial results are estimates and subject to change, the company said. H&E Equipment and its auditors have not completed their normal quarterly review procedures for the three months ended June 30, 2006, and there can be no assurance that the company's final results for this three-month period will not differ from these estimates. In addition, these estimates should not be viewed as a substitute for full interim financial statements prepared in accordance with generally accepted accounting principles or as a measure of the company's performance.

In other financial company news, H&E Equipment Services also announced last week that it plans to offer $250 million aggregate principal amount of senior unsecured notes due 2016 in a private offering pursuant to Rule 144A and Regulation S under the Securities Act of 1933. The offering of the notes, which is subject to market and other conditions, will be made within the United States only to qualified institutional buyers, and outside the U.S. to non-U.S. investors. The notes will be fully and unconditionally guaranteed by all of the company's existing and certain of its future subsidiaries.

The company said it intends to use the net proceeds of the offering, together with cash on hand and borrowings under its existing senior secured credit facility, to consummate its previously-announced cash tender offer and consent solicitation for its 11 1/8-percent senior secured notes due 2012, and 12 ½-percent senior subordinated notes due 2013. H&E also announced last week it has extended the expiration date of that cash tender offer to August 3.

Baton Rouge, La.-based H&E Equipment Services, No. 11 on the RER 100, has 47 full-service facilities throughout the Intermountain, Southwest, Gulf Coast, West Coast and Southeast regions of the U.S.

TAGS: Syndicate
Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.