Skip to main content

H&E posts 20% revenue boost for 1Q; acquisition strategy continues

A strong nonresidential construction market helped propel H&E Equipment Services to another solid quarter, with revenues increasing 20.4 percent in the first three months of 2019 over the same period last year.

The company also expects more growth throughout the year. That growth includes maintaining a steady acquisition strategy.

“There’s a lot of small-, mid-size players out there, and I think we have ample opportunity to achieve that expectation of two or three acquisitions a year,” said John Engquist, executive chairman and director, during a conference call with analysts April 25.

In all, H&E has 96 branches in 22 states, covering most of the southern half of the country and the West Coast. About one-third of its locations have been added since 2013, either by acquisition or the company opening new stores. Six additional locations came from H&E’s most recent acquisition of We-Rent-It in January.

“All of the acquisitions we have done to date have performed better than our anticipation,” said H&E CEO Brad Barber.

He forecast solid growth for the remainder of the year, including for nonresidential construction, which accounted for 60 percent of the company’s first-quarter revenue.

“The end-user market continues to be solid and broad-based,” Baker said. “Spending on nonresidential construction projects is forecast to grow year over year.”

He added that the energy market is “steady and healthy,” and “state DOTs are increasing spending for transportation and infrastructure-related projects.”

Customers can expect rental rate increases. Rates are up 2.3 percent higher since 1Q 2018. Baker said the company expects “consistent positive rate increases” at a low single-digit percentage point for 2019.

The company has “one of the youngest rental fleets in the industry,” he added. The average age of the company’s equipment is 35 months versus the industry average of 46 months, he said.

The company also paid its 19th consecutive quarterly cash dividend of $.275 per share on March 8, he noted.

Some other highlights from H&E’s first-quarter financial report compared to 1Q 2018:

  • Rental revenues increased 22.9 percent.
  • Sales of new equipment increased 27.1 percent, led by earthmoving equipment and aerial lifts.
  • Sales of used equipment increased 19.2 percent.
  • Rental fleet size increased by 23.4 percent.

 



from Equipment World http://bit.ly/2J4XczN
via Handy Rep Ai

Comments

Popular posts from this blog

List of Best Construction Companies in Bengaluru

Bangalore city which is now renamed as Bengaluru city is one of the biggest IT hubs in India. Bengaluru city has attracted many top construction companies in India to construct huge IT parks across the Bengaluru city. We have compiled a list of best construction companies in Bengaluru so that job seekers who are looking for civil engineering jobs can directly visit the job page of this top construction companies in Bengaluru and apply to appropriate jobs. Scope of top construction companies in Bengaluru Apart from building big IT parks, these leading construction companies in Bengaluru are also involved in construction of residential apartments in Bengaluru area, flats in Bengaluru city, big retail outlets in Bengaluru, hotels in Bengaluru, malls in Bengaluru, commercial spaces in Bengaluru etc. That is why in addition to big construction companies in Bengaluru, this city has also attracted top Architecture companies in India, best construction contractors in India, top scaffoldin...

Toro unveils ‘first of its kind’ Dingo TXL 2000, a stand-on loader with extendable arms

Telescoping arms with a wide reach and a doubled load capacity are key features of Toro’s new Dingo TXL 2000, which is in development. A new compact utility loader in development by Toro was the talk of the American Rental Association show in New Orleans, with passers-by eying the long reach of the vertical telescoping loader arms on the Dingo TXL 2000. The gleaming red prototype represented this model’s debut, and plenty of dealers and contractors got a peek of what’s to come with this machine, which is the first of its kind, according to Toro. “This machine won’t be out until the late part of 2018, and why we’re introducing it here is because it’s our 20-year anniversary of the Dingo product line,” Kevin Conry, senior marketing manager at Toro Siteworks in Bloomington, Minnesota, had explained during the show held February 19-21. Related Toro intros Dingo TX 1000, positions strongest CUL as skid steer, CTL alternative at ICUEE (PHOTOS) The construction firms ...

Wash. construction workers strike for higher pay in battle with contractors

A union member pickets outside new Port Townsend elementary school in Jefferson County, Washington. Jefferson County government’s Twitter feed indicates the strike has cast doubt on whether the school will open as scheduled on September 4. Photo credit: Jefferson County Union construction workers in western Washington, which includes Seattle, went on strike at 6 a.m. August 21 and remain locked in a battle with local contractors over wages, hours and working conditions. The striking workers include crane operators who work in Seattle’s crane-dotted skyline, as well as workers in paving, concrete pumping, dirt work, hoisting and material handling. News reports say the strike has brought many large construction projects to a halt or slowed them. Seattle has the most cranes of any U.S. city, at 65, according to the latest Rider Levett Bucknall North America crane index report . As the strike enters the second week, the Associated General Contractors of Washington, which is negotiatin...