06.03.2011

Strong fourth quarter for H&E

H&E Equipment saw revenues rise 26.8 percent in the fourth quarter 2010 as utilisation and rental rates improved.

Revenues for the full year were $574.2 million a drop of 15.5 percent on 2009, while the company’s pre-tax loss increased from $18.1 in 2009 to a loss of $40.4 million in 2010.

For the quarter revenues were $174.6 million, up 26.8 percent on the same quarter in 2009. While the pre-tax loss was cut to $4 million from a loss of $19.5 million a year earlier.

Physical utilisation in the fourth quarter was 62.7 percent, compared to 53.3 percent in 2009. In the same period rental rates climbed 2.2 percent over the third quarter, to within a percentage point of a year earlier.

Chief executive John Engquist said: “With significant gains on both a year-over-year and sequential basis, we are pleased with our performance during the fourth quarter. We continue to be encouraged by the improvements in market conditions.”

“Year-over-year, our total revenues increased in excess of 25 percent, driven
by continued growth in our rental business and higher demand for new equipment. Despite typical seasonal patterns in the latter part of the fourth quarter, our business delivered strong sequential improvement with double-digit increases in revenues, gross profit and EBITDA.”

“2010 was another challenging year. However, we believe improving market conditions seen in the third and fourth quarters of 2010 will continue into 2011 and that we are well positioned to take advantage of such improved conditions,”

“Our outlook for 2011 is positive as the industrial markets we serve remain very strong, construction activity is slowly recovering in several of our markets that were hit the hardest by the recession and overall economic conditions are expected to further improve during the year. Although we continue to operate with limited visibility, particularly in our distribution businesses, many macro-economic indicators are pointing to improved conditions and performance during 2011.”