H&E Equipment Services Reports Third Quarter 2008 Results

November 7, 2008 – H&E Equipment Services, Baton Rouge, La., has announced operating results for the third quarter ended Sept. 30, 2008. Revenues increased 3 percent to $278.6 million versus $270.6 million a year ago, with the company's mid-Atlantic acquisition contributing $38.8 million in the current quarter, compared to $10.1 million a year ago. Third quarter 2007 results reflected one month results from the acquisition which was completed Sept. 1, 2007.

 

EBITDA decreased 2.9 percent to $67.2 million compared to $69.2 million a year ago. Income from operations decreased 12.3 percent to $37.2 million compared to $42.4 million a year ago, with the Mid-Atlantic region contributing $1.8 million of income from operations in the current quarter compared to $1 million a year ago. Depreciation and amortization expense increased $2.9 million.

 

Net income decreased to $17.6 million, or $0.50 per diluted share, compared to $20.2 million, or $0.53 per diluted share. The effective income tax rate was 36.9 percent versus 39.4 percent a year ago.

 

"Our strong presence in regions with exposure to petrochemical, oil patch, mining and energy sectors and our integrated business model are clearly helping to minimize the impact to our business from the numerous macroeconomic issues occurring in the country today," said John Engquist, H&E Equipment Services' president and CEO. "There is no doubt the non-residential construction industry has slowed as a result of the unstable credit markets and other economic factors, yet our strong presence in the industrial sector resulted in solid financial performance during the third quarter."

 

2008 Outlook

"In spite of today's challenging and uncertain business environment, we are reaffirming our full-year guidance for EBITDA and EPS and we are lowering our revenue guidance primarily to adjust for the expected delay in fourth quarter crane shipments," said Engquist.

 

The company now expects 2008 revenue in the range of $1.080 billion to $1.090 billion. The company is narrowing its 2008 EBITDA to a range of $247 million to $253 million. The company is also narrowing its 2008 earnings per diluted share to a range of $1.60 to $1.68 based on an estimated 35.6 million diluted common shares outstanding and an estimated effective income tax rate of approximately 37 percent.