H&E Q2 revenues down 16%

H&E Q2 revenues down 16%

August 06, 2020

Both the revenues and profits of H&E Equipment Services were significantly negatively impacted by the Covid-19 pandemic in the second quarter of 2020. While there are signs of improvement, the economic headwinds are expected to continue for the full year.

Revenues dropped by 16.6% to $278.3 million, compared to $333.6 million in the same period of the previous year.

H&E

This decline was attributed primarily to a 19%, or $36.5 million, fall in total rental revenues.

The US-based company’s adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) decreased by 19.3% to $95.3 million in the second quarter, yielding a margin of 34.2% of revenues compared to 35.4% in the previous year.

Brad Barber, CEO and President of H&E, said, “As a result of the Covid-19 outbreak and subsequent economic slowdown, the second quarter was a challenging period for our business.

“Work continued in our end-user markets while some projects were paused, delayed or cancelled.

“As we expected, demand for rental equipment declined, which pressured rates, physical utilisation and ultimately rental revenue.”

Average time utilisation was 59.5%, compared to 71.2% in the second quarter of 2019.

Utilisation reached its lowest point in April and has since improved and stabilised.

Average rental rates were down 2.8% on the previous year.

Barber said, “Recently, there are some encouraging trends compared to the second quarter; however, we believe the headwinds related to Covid-19 will persist throughout the balance of this year.

“There is still tremendous uncertainty regarding the cadence of the economic recovery, including the outlook for the non-residential construction markets.

“We are working very hard to generate returns for our shareholders in the current environment and I am very pleased with how our team has responded to these significant marketplace challenges.”


Featured

XCMG: Six bridges and two engines, XCA400L8 _ 1 is high-tech!

XCMG: Six bridges and two engines, XCA400L8 _ 1 is high-tech!

Set a New National Record, Sinotruk Heavy Truck Export Exceeds 14000 Vehicles in February!

Set a New National Record, Sinotruk Heavy Truck Export Exceeds 14000 Vehicles in February!

Renovation of Patterns? Zhonglian Mining Machine "Customer Activity Day" Officially Opened

Renovation of Patterns? Zhonglian Mining Machine "Customer Activity Day" Officially Opened

Good news of delivery | Batch delivery of 30 SJM 3090F wide-body dump trucks

Good news of delivery | Batch delivery of 30 SJM 3090F wide-body dump trucks

Trending Products

XCMG Official 5m 1000W*2 Hand Push Operated Lifting Telescopic Mobile Metal Halide Lamp Balloon Light Tower

XCMG Official 5m 1000W*2 Hand Push Operated Lifting Telescopic Mobile Metal Halide Lamp Balloon Light Tower

XCMG Official 5m Hand Push Lifting Telescopic Mobile Halogen Lamp Light Tower for Construction Site and Mining

XCMG Official 5m Hand Push Lifting Telescopic Mobile Halogen Lamp Light Tower for Construction Site and Mining

XCMG Factory 9m Hydraulic Mast Diesel Generator Trailer Mobile LED Stadium Light Tower

XCMG Factory 9m Hydraulic Mast Diesel Generator Trailer Mobile LED Stadium Light Tower

XCMG Official 7m China New Mobile Diesel Generator Explosion Proof LED Work Light Tower for Sale

XCMG Official 7m China New Mobile Diesel Generator Explosion Proof LED Work Light Tower for Sale

Engineering Machinery Vocabulary
TO TOP