09.05.2011

H&E up 17.6%

H&E the Louisiana based equipment dealer and rental company has reported first quarter revenues up 17.6 percent.

Total revenues for the quarter were $134.9 million while rental revenues climbed 33 percent to $48.5 million. In spite of the strong pick up the company lost $9.76 million, although this is a significant improvement on the same quarter in 2010, then the loss was $19.16 million.

Physical utilisation improved from just under 50 percent last year to 61 percent this year, the company says that rates also turned around in March and April and are finally heading upwards. The average age of the rental fleet which includes cranes and aerial lifts is now 43.2 months.

The company says that it is seeing positive signs with early cycle equipment sales and rental, which should start to flow through for its higher equipment, such as cranes and access equipment in 2012.

Chief executive John Engquist said: “We are extremely pleased with our first quarter results and the on-going improvements in our business. Despite normal seasonality that was compounded by historically inclement weather in many of our end markets, our business delivered solid year-over-year improvements in revenue, gross profit and EBITDA.”

“Visibility in our distribution business remains limited. While new earthmoving equipment sales were strong, the lack of large crawler crane sales negatively impacted new equipment sales compared to the fourth quarter."

"Our outlook for the second quarter is positive as we expect the improvement in industrial construction markets to accelerate. However, we do not expect a broad recovery in non-residential construction markets to occur until 2012. In spite of this, we expect our losses to moderate for the remainder of 2011."

"The activity in our industrial markets remains strong, especially in our Gulf Coast and Intermountain regions as a result of rising oil and commodity prices. Demand for early cycle earthmoving equipment continues to increase and we are beginning to see improved rental rates. With a solid capital structure and excellent liquidity, we believe we have positioned our business very well to take advantage of any improvements in market conditions."