H&E Equipment Services Reports Increased Revenues in the Third Quarter
November 13, 2006 • H&E Equipment Services, Inc.,
However, net loss was $11.5 million compared to net income of $8.2 million from a year ago. This included the loss on early extinguishment of debt of $40.8 million, or $32 million after-tax.
“The momentum in our business clearly continued through the third quarter,” said John Enquist, H&E Equipment Services' president and chief executive officer. “Non-residential construction is extremely active in the markets we serve and we believe spending on the equipment and services we provide will remain strong as these positive trends are currently forecasted to continue.” He added that overall performance this quarter was consistent with the company's expectations.
According to Leslie Magee, chief financial officer, rental revenues continued to increase in the third quarter, jumping 33.5% to 67.3 million. New equipment sales increased by 67.7% from a year ago to $60.7 million, and used equipment sales grew as well, increasing 10.8%. Demand for aerial work platforms and cranes drove H&E's equipment sales. The combined parts and service revenues increased 28.1% from a year ago and was the result of higher new and used equipment sales, as well as an increase customer demand. Gross margin was strong, up 2.2% from last year, with improved margins in rentals, used equipment sales, and service operations from a year ago.
“Our outlook remains positive for the remainder of this year, and based upon currently available information, we are increasing our previously announced 2006 outlook and earnings guidance as disclosed at the end of the second quarter,” said Enquist.
