H&E Equipment Services has announced results for the first quarter ended March 31, 2022, reporting strong year-over-year performance as excellent industry conditions generated seasonally robust utilization and further improvement in equipment rental rates.
Q1 summary
- Revenues increased 13.3 percent in the first quarter of 2022 to $272.5 million compared to $240.4 million in the first quarter of 2021.
- Net income was $16.3 million in the first quarter of 2022 compared to $1.9 million in the first quarter of 2021. The effective income tax rate was 26.3 percent in the first quarter of 2022 compared to 26.9 percent in the first quarter of 2021.
- Adjusted EBITDA totaled $103.4 million in the first quarter of 2022, an increase of 34.5 percent compared to $76.9 million in the first quarter of 2021, resulting in a margin of 38 percent of revenues compared to 32 percent over the same period of comparison.
- Total equipment rental revenues for the first quarter of 2022 were $199.2 million, an increase of $46.0 million, or 30 percent, compared to $153.2 million in the first quarter of 2021. Rental revenues for the first quarter of 2022 were $177.2 million, an increase of $40.0 million, or 29.2percent, compared to $137.1 million in the first quarter of 2021.
- Used equipment sales decreased 44.6 percent in the first quarter of 2022 to $21.5 million compared to $38.9 million in the same quarter of 2021. Margins in the first quarter of 2022 improved to 41.7 percent compared to 32.2 percent in the corresponding quarter of 2021.
- New equipment sales totaled $26.0 million in the first quarter of 2022, an increase of 12.4 percent when compared to $23.2 million in the first quarter of 2021.
- Gross margin improved to 41 percent in the first quarter of 2022 compared to 34.7 percent in the first quarter of 2021.
- Total equipment rental gross margins were 44.9 percent in the first quarter of 2022 compared to 38 percent in the same quarter of 2021. Rental gross margins were 49.9 percent compared to 42.7 percent over the same period of comparison.
- Average time utilization (based on original equipment cost) in the first quarter of 2022 was 70.4 percent compared to 64.1 percent in the first quarter of 2021. The Company’s rental fleet, based on original acquisition cost, closed the first quarter of 2022 at just over $1.9 billion, an increase of $218.8 million, or 13 percent compared to the first quarter of 2021.
- Average rental rates improved 6.5 percent in the first quarter of 2022 when compared to the corresponding quarter in 2021, and 1.6 percent when compared to the fourth quarter of 2021.
- Dollar utilization improved to 37.6 percent in the first quarter of 2022 compared to 32.6 percent in the first quarter of 2021.
- Average rental fleet age on March 31, 2022, was 41.5 months compared to an industry average age of 51.3 months.
- Paid regular quarterly cash dividend of $0.275 per share of common stock.
Source: H&E Equipment
