H&E Equipment Services Inc.
) reported first-quarter 2013 earnings of 14 cents per share, up
27% year over year and a penny ahead of the Zacks Consensus
Estimate on the back of strong demand for rental equipment as
well as new and used equipment.
Total revenue increased 225 to $212 million, beating the Zacks
Consensus Estimate of $200 million, driven by growth across all
segments. Rental revenues rose 26% year over year to $75.4
million on the back of higher rates and a larger fleet. New
equipment sales increased 30.1% to $53.3 million and used
equipment sales increased 21.2% to $32.1 million. Parts sales
increased 6.7% to $25.0 million from $23.4 million in the first
quarter of 2012. Service revenues went up 9.4% to $14.6 million
from $13.3 million a year ago.
Cost and Margins
Cost of sales increased 22% to $148 million in the quarter.
Gross profit went up 22% to $64.5 million. Gross margin remained
flat year over year at 30%. Rental gross margins increased to
44.6% in the first quarter from 42.4% in the prior-year quarter.
Rental rates were 10.2% higher than the year-ago period
Gross margins on new equipment sales were 10.5%, down from
12.3% in the first quarter a year ago. Gross margins on used
equipment sales were 29.2% compared to 29.8% a year ago. Gross
margins on parts sales were 26.6% compared with 27.6% in the
first quarter of 2012. Gross margins on service revenues were
60.5% for the first quarter of 2013 compared to 61.5% in the
first quarter of 2012.
Selling, general and & administrative expenses increased
14% to $46 million, due to higher salaries, wages and payroll
taxes, driven by increase in commission and incentive pay that
resulted from higher rental and sales revenues. Furthermore,
higher health insurance costs, branch expansion and depreciation
led to the increase. Operating profit increased 53% to $18.7
million and operating margin expanded 170 bps to 8.8%.
EBITDA (earnings before interest taxes, depreciation and
amortization) increased 32.6% to $51.3 million. EBITDA margin in
the quarter was 24.2% compared to 22.3% in the year-ago
Cash and cash equivalents were $3 million as of Mar 31, 2013
compared with $9 million as of Dec 31, 2012. Total debt amounted
to $686 million as of Mar 31, 2013 compared with $690 million as
of Dec 31, 2012.
As of Mar 31, 2013, the original acquisition cost of H&E
Equipment Services' rental fleet was $897.6 million versus $745.7
million as of Dec 31, 2012. Dollar utilization was 33.9% compared
to 32.3% for the first quarter of 2012. Dollar returns improved
reflecting higher rates.
H&E Equipment Services continues to capitalize on
improving market conditions, particularly the soaring demand for
rental equipment. The distribution business also performed well
with strong double-digit revenue growth witnessed in both new and
used equipment sales.
H&E Equipment Services' outlook for 2013 remain positive
given that the construction industry is in the early stages of a
multi-year expansion cycle. H&E Equipment Services will
continue to step up its fleet investment during the year, based
on current and expected demand levels. Furthermore, with its
increasing exposure in the industrial sector, H&E Equipment
Services is well positioned to increase its market share, realize
economies of scale and drive operational efficiencies throughout
Baton Rouge, La.-based H&E Equipment Services, rents,
sells, and provides parts and service support for hi-lift or
aerial work platform equipment, crane, earthmoving equipment, and
industrial lift truck categories. It offers heavy construction
and industrial equipment for rent on a daily, weekly, and monthly
basis. H&E Equipment Services Inc. retains a Zacks Rank #3
Astec Industries Inc.
) reported first-quarter earnings of 57 cents per share, rising
10% from the 52 cents in the year-earlier quarter and ahead of
the Zacks Consensus Estimate of 53 cents.
Manitowoc Company, Inc.
) reported adjusted earnings from continuing operations of 9
cents per share, compared with the break-even results in the
prior-year quarter but fell short of the Zacks Consensus Estimate
of 14 cents.
On the other hand,
) adjusted earnings of 23 cents per share declined 21% from 29
cents earned in the year-ago quarter, missing the Zacks Consensus
Estimate of 28 cents.
ASTEC INDS INC (ASTE): Free Stock Analysis
H&E EQUIP SVCS (HEES): Free Stock Analysis
MANITOWOC INC (MTW): Free Stock Analysis
TEREX CORP (TEX): Free Stock Analysis Report
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