Q2 2024 H&E Equipment Services Inc Earnings Call Transcript
Key Points
- Total revenues increased by 4.5% year-over-year, driven by higher rental revenues and sales of new equipment.
- Equipment rental revenues rose by 7.2%, supported by a modest rise in rental rates and expansion initiatives.
- The company opened 15 new locations since the close of Q2 2023, enhancing its branch network and geographic reach.
- Gross profit increased by 1.7% year-over-year, with margins on sales of rental equipment remaining elevated.
- H&E Equipment Services Inc (HEES) maintained a solid capital position with a net leverage ratio of 2.2 times and ample liquidity of $459 million.
- Sales of rental equipment declined by 11.9% year-over-year, reflecting a challenging business environment.
- Physical fleet utilization decreased to 66.4%, down 290 basis points compared to the year-ago quarter.
- Net income for the second quarter was $33.3 million, down from $41.2 million in the same quarter of 2023.
- SG&A expenses increased by 12.7% year-over-year, driven by higher costs associated with branch expansion and acquisition activities.
- Dollar utilization in the second quarter was 38.6%, a decline from 40.6% in the year-ago quarter, primarily due to lower physical utilization.
Good morning and welcome to the H&E Equipment Services second quarter 2024 earnings conference call. (Operator instructions) Please note this event is being recorded.
I would now like to turn the conference over to Mr. Jeff Chastain, Vice President of Investor Relations. Please go ahead.
Thank you, operator, and good morning. Welcome to everyone on today's call to review our second quarter 2024 financial performance. A press release following our results for the quarter was issued earlier today and can be found along with all supporting statements and schedules on the H&E website that's www.he-equipment.com.
A slide presentation will accompany today's discussion and is also posted on our website under the investor relations tab events and presentations.
On Slide 2, you'll see Joining me on today's call is Bradley Barber, Chief Executive Officer; John Engquist, President and
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