H&E Equipment Services Reports Q1 Gains on All Fronts
"Our strong performance in the first quarter reflects significant improvement in revenue and gross profit in each of our business segments,” says John Engquist, president and chief executive officer. “With continued improvement in non-residential construction, the primary driver of our business, and our belief that we will continue to see rental rates improve throughout the remainder of the year, 2005 should be a very strong year for our company."
Q1 equipment rental revenues were $40.6 million compared to $35.6 million for the first quarter of 2004, reflecting an increase of $5 million, or 14.0%. The overall increase was primarily due to a $4.5 million increase in aerial work platform equipment rental revenue. At the end of the first quarter of 2005, the original acquisition cost of the rental fleet was $459.8 million, down $13.6 million from $473.4 million at the end of the first quarter of 2004. For the first quarter of 2005, dollar utilization increased to 35.1% from 29.6% for the first quarter of 2004.
New equipment sales were $30.3 million compared to $25.3 million for the same quarter of last year, reflecting an increase of $5.0 million, or 19.8%. First quarter used equipment sales were $25.6 million, representing a $2.3 million, or 9.9%, increase from $23.3 million for the first quarter of 2004. New equipment sales increased in aerial work platforms, earthmoving, lift trucks, and other new equipment while new crane sales decreased. Used equipment sales increased in cranes, aerial work platforms, and earthmoving while lift trucks and other used equipment sales declined in comparison to the first quarter of 2004.
As previously announced, the company delayed reporting its final 2004 results. We will also delay finalizing results for the first quarter of 2005 and filing Form 10-Q until final results for 2004 are reported.
