H&E GAAP EPS of $0.76 beats by $0.24, revenue of $294.7M beats by $1.3M

Jul. 28, 2022 7:06 AM ETH&E Equipment Services, Inc. (HEES)By: Urvi Shah, SA News Editor
  • H&E press release (NASDAQ:HEES): Q2 GAAP EPS of $0.76 beats by $0.24.
  • Revenue of $294.7M (-6.7% Y/Y) beats by $1.3M.
  • Net income was $27.9 million compared to $12.3 million in the second quarter of 2021. The effective income tax rate was 26.8% compared to 28.2% in the second quarter of 2021.
  • Adjusted EBITDA totaled $121.9 million, an increase of 28.8% compared to $94.6 million in the second quarter of 2021, resulting in a margin of 41.4% of revenues compared to 35.6% in the second quarter of 2021.
  • Total equipment rental revenues were $227.6 million, an increase of $52.0 million, or 29.6%, compared to $175.6 million in the second quarter of 2021. Rental revenues were $201.2 million, an increase of $44.0 million, or 28.0%, compared to $157.2 million in the second quarter of 2021.
  • Used equipment sales decreased 47.4% to $18.8 million compared to $35.8 million in the second quarter of 2021. Margins improved to 47.6% compared to 36.7% in the second quarter of 2021.
  • New equipment sales totaled $21.5 million, a decrease of 22.2% when compared to $27.6 million in the second quarter of 2021.
  • Gross margin improved to 44.9% compared to 37.6% in the second quarter of 2021.
  • Total equipment rental gross margins were 48.6% compared to 41.7% in the second quarter of 2021. Rental gross margins were 53.7% compared to 46.6% over the same period of comparison.
  • Average time utilization (based on original equipment cost) was 73.2% compared to 68.7% in the second quarter of 2021. The Company’s rental fleet, based on original acquisition cost, closed the second quarter of 2022 at just over $2.0 billion, an increase of $228.2 million, or 12.8%, compared to the second quarter of 2021.
  • Average rental rates increased 9.4% when compared to the second quarter of 2021, and 3.5% when compared to the first quarter of 2022.
  • Dollar utilization improved to 40.9% compared to 35.9% in the second quarter of 2021.
  • Average rental fleet age on June 30, 2022, was 41.2 months compared to an industry average age of 53.6 months.
  • Paid regular quarterly cash dividend of $0.275 per share of common stock.

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