Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 24, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'HEES | ' |
Entity Registrant Name | 'H&E Equipment Services, Inc. | ' |
Entity Central Index Key | '0001339605 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 35,210,778 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash | $4,965 | $17,607 |
Receivables, net of allowance for doubtful accounts of $3,307 and $3,651, respectively | 137,258 | 131,970 |
Inventories, net of reserves for obsolescence of $650 and $647, respectively | 168,784 | 111,640 |
Prepaid expenses and other assets | 10,041 | 6,024 |
Rental equipment, net of accumulated depreciation of $316,632 and $309,944, respectively | 704,237 | 688,710 |
Property and equipment, net of accumulated depreciation and amortization of $78,919 and $75,994, respectively | 99,763 | 98,503 |
Deferred financing costs, net of accumulated amortization of $10,444 and $10,176, respectively | 4,421 | 4,689 |
Goodwill | 31,197 | 31,197 |
Total assets | 1,160,666 | 1,090,340 |
Liabilities: | ' | ' |
Amounts due on senior secured credit facility | 123,967 | 102,460 |
Accounts payable | 112,506 | 67,779 |
Manufacturer flooring plans payable | 56,313 | 49,062 |
Dividends payable | 633 | 633 |
Accrued expenses payable and other liabilities | 39,082 | 54,439 |
Senior unsecured notes (net of unaccreted discount of $1,412 and $1,454, respectively) | 628,588 | 628,546 |
Capital leases payable | 2,234 | 2,278 |
Deferred income taxes | 92,230 | 88,291 |
Deferred compensation payable | 2,056 | 2,040 |
Total liabilities | 1,057,609 | 995,528 |
Commitments and Contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value, 25,000,000 shares authorized; no shares issued | ' | ' |
Common stock, $0.01 par value, 175,000,000 shares authorized; 39,033,974 and 39,023,594 shares issued at March 31, 2014 and December 31, 2013, respectively, and 35,210,778 and 35,200,398 shares outstanding at March 31, 2014 and December 31, 2013, respectively | 390 | 389 |
Additional paid-in capital | 216,583 | 215,775 |
Treasury stock at cost, 3,823,196 and 3,823,196 shares of common stock held at March 31, 2014 and December 31, 2013, respectively | -58,468 | -58,468 |
Retained deficit | -55,448 | -62,884 |
Total stockholders' equity | 103,057 | 94,812 |
Total liabilities and stockholders' equity | $1,160,666 | $1,090,340 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts receivables | $3,307 | $3,651 |
Reserves for obsolescence inventories | 650 | 647 |
Accumulated depreciation, rental equipment | 316,632 | 309,944 |
Accumulated depreciation and amortization, property and equipment | 78,919 | 75,994 |
Accumulated amortization, deferred financing costs | 10,444 | 10,176 |
Unaccreted discount, net | $1,412 | $1,454 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 39,033,974 | 39,023,594 |
Common stock, shares outstanding | 35,210,778 | 35,200,398 |
Treasury stock, shares | 3,823,196 | 3,823,196 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Equipment rentals | $86,224 | $75,370 |
New equipment sales | 69,547 | 53,323 |
Used equipment sales | 29,345 | 32,149 |
Parts sales | 25,802 | 24,952 |
Services revenues | 13,648 | 14,551 |
Other | 12,663 | 12,043 |
Total revenues | 237,229 | 212,388 |
Cost of revenues: | ' | ' |
Rental depreciation | 32,998 | 28,132 |
Rental expense | 14,224 | 13,603 |
New equipment sales | 61,734 | 47,739 |
Used equipment sales | 20,418 | 22,748 |
Parts sales | 18,282 | 18,304 |
Services revenues | 4,741 | 5,743 |
Other | 12,048 | 11,639 |
Total cost of revenues | 164,445 | 147,908 |
Gross profit | 72,784 | 64,480 |
Selling, general and administrative expenses | 48,856 | 46,264 |
Gain on sales of property and equipment, net | 663 | 500 |
Income from operations | 24,591 | 18,716 |
Other income (expense): | ' | ' |
Interest expense | -12,650 | -12,272 |
Other, net | 306 | 507 |
Total other expense, net | -12,344 | -11,765 |
Income before provision for income taxes | 12,247 | 6,951 |
Provision for income taxes | 4,811 | 2,174 |
Net income | $7,436 | $4,777 |
Net income per common share: | ' | ' |
Basic | $0.21 | $0.14 |
Diluted | $0.21 | $0.14 |
Weighted average common shares outstanding: | ' | ' |
Basic | 35,108 | 34,976 |
Diluted | 35,218 | 35,097 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $7,436 | $4,777 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization of property and equipment | 4,780 | 3,935 |
Depreciation of rental equipment | 32,998 | 28,132 |
Amortization of deferred financing costs | 268 | 281 |
Accretion of note discount, net of premium amortization | 42 | 105 |
Provision for losses on accounts receivable | 734 | 767 |
Provision for inventory obsolescence | 63 | 56 |
Provision for deferred income taxes | 3,939 | 649 |
Stock-based compensation expense | 808 | 938 |
Gain from sales of property and equipment, net | -663 | -500 |
Gain from sales of rental equipment, net | -8,357 | -8,498 |
Writedown of goodwill for tax-deductible goodwill in excess of book goodwill | ' | 219 |
Changes in operating assets and liabilities: | ' | ' |
Receivables | -6,022 | 8,775 |
Inventories | -82,514 | -93,459 |
Prepaid expenses and other assets | -4,017 | -2,001 |
Accounts payable | 44,727 | 61,406 |
Manufacturer flooring plans payable | 7,251 | 16,854 |
Accrued expenses payable and other liabilities | -15,357 | -13,640 |
Deferred compensation payable | 16 | 17 |
Net cash provided by (used in) operating activities | -13,867 | 8,813 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -6,059 | -6,288 |
Purchases of rental equipment | -39,663 | -34,100 |
Proceeds from sales of property and equipment | 682 | 521 |
Proceeds from sales of rental equipment | 24,802 | 22,381 |
Net cash used in investing activities | -20,238 | -17,486 |
Cash flows from financing activities: | ' | ' |
Borrowings on senior secured credit facility | 266,183 | 240,088 |
Payments on senior secured credit facility | -244,676 | -343,989 |
Proceeds from issuance of senior unsecured notes | ' | 107,250 |
Payments of deferred financing costs | ' | -564 |
Payments of capital lease obligations | -44 | -41 |
Net cash provided by financing activities | 21,463 | 2,744 |
Net decrease in cash | -12,642 | -5,929 |
Cash, beginning of period | 17,607 | 8,894 |
Cash, end of period | 4,965 | 2,965 |
Noncash asset purchases: | ' | ' |
Assets transferred from new and used inventory to rental fleet | 25,307 | 19,828 |
Cash paid during the period for: | ' | ' |
Interest | 23,339 | 22,075 |
Income taxes paid, net of refunds received | $206 | $386 |
Organization_and_Nature_of_Ope
Organization and Nature of Operations | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Organization and Nature of Operations | ' |
(1) Organization and Nature of Operations | |
Basis of Presentation | |
Our condensed consolidated financial statements include the financial position and results of operations of H&E Equipment Services, Inc. and its wholly-owned subsidiaries H&E Finance Corp., GNE Investments, Inc., Great Northern Equipment, Inc., H&E California Holding, Inc., H&E Equipment Services (California), LLC and H&E Equipment Services (Mid-Atlantic), Inc., collectively referred to herein as “we” or “us” or “our” or the “Company.” | |
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such regulations. In the opinion of management, all adjustments (consisting of all normal and recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014, and therefore, the results and trends in these interim condensed consolidated financial statements may not be the same for the entire year. These interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended December 31, 2013, from which the consolidated balance sheet amounts as of December 31, 2013 were derived. | |
All significant intercompany accounts and transactions have been eliminated in these condensed consolidated financial statements. Business combinations accounted for as purchases are included in the condensed consolidated financial statements from their respective dates of acquisition. | |
The nature of our business is such that short-term obligations are typically met by cash flows generated from long-term assets. Consequently, and consistent with industry practice, the accompanying condensed consolidated balance sheets are presented on an unclassified basis. | |
Nature of Operations | |
As one of the largest integrated equipment services companies in the United States focused on heavy construction and industrial equipment, we rent, sell and provide parts and service support for four core categories of specialized equipment: (1) hi-lift or aerial work platform equipment; (2) cranes; (3) earthmoving equipment; and (4) industrial lift trucks. By providing equipment sales, rental, on-site parts, and repair and maintenance functions under one roof, we are a one-stop provider for our customers’ varied equipment needs. This full-service approach provides us with multiple points of customer contact, enables us to maintain a high quality rental fleet, as well as an effective distribution channel for fleet disposal, and provides cross-selling opportunities among our new and used equipment sales, rental, parts sales and service operations. |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
(2) Significant Accounting Policies | |
We describe our significant accounting policies in note 2 of the notes to consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2013. During the three month period ended March 31, 2014, there were no significant changes to those accounting policies. | |
Use of Estimates | |
We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, which requires management to use its judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. These assumptions and estimates could have a material effect on our condensed consolidated financial statements. Actual results may differ materially from those estimates. We review our estimates on an ongoing basis based on information currently available, and changes in facts and circumstances may cause us to revise these estimates. | |
Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”) which amended the FASB’s guidance for reporting discontinued operations and disposals of components of an entity under Accounting Standards Codification Subtopic 250-20. The guidance as amended by ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation by requiring that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale be reported as such. The amendments also expand the disclosure requirements regarding the assets, liabilities, revenues and expenses of discontinued operations and add new disclosure requirements for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective prospectively for fiscal years beginning after December 15, 2014, and interim reporting periods within those years (early adoption is permitted only for disposals that have not been previously reported). The implementation of the amended guidance is not expected to have a material impact on our consolidated financial position or results of operations. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Fair Value of Financial Instruments | ' | ||||||||
(3) Fair Value of Financial Instruments | |||||||||
Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The FASB fair value measurement guidance established a fair value hierarchy that prioritizes the inputs used to measure fair value. The three broad levels of the fair value hierarchy are as follows: | |||||||||
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities | |||||||||
Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly | |||||||||
Level 3 – Unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own assumptions | |||||||||
The carrying value of financial instruments reported in the accompanying condensed consolidated balance sheets for cash, accounts receivable, accounts payable and accrued expenses payable and other liabilities approximate fair value due to the immediate or short-term nature or maturity of these financial instruments. The fair value of our letter of credit is based on fees currently charged for similar agreements. The carrying amounts and fair values of our other financial instruments subject to fair value disclosures as of March 31, 2014 and December 31, 2013 are presented in the table below (amounts in thousands) and have been calculated based upon market quotes and present value calculations based on market rates. | |||||||||
March 31, 2014 | |||||||||
Carrying | Fair | ||||||||
Amount | Value | ||||||||
Manufacturer flooring plans payable with interest computed at 5.25% (Level 3) | $ | 56,313 | $ | 49,347 | |||||
Senior unsecured notes with interest computed at 7.0%(1) (Level 1) | 630,000 | 693,000 | |||||||
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 2,234 | 1,671 | |||||||
Letter of credit (Level 3) | — | 146 | |||||||
December 31, 2013 | |||||||||
Carrying | Fair | ||||||||
Amount | Value | ||||||||
Manufacturer flooring plans payable with interest computed at 5.25% (Level 3) | $ | 49,062 | $ | 42,686 | |||||
Senior unsecured notes with interest computed at 7.0%(1) (Level 1) | 630,000 | 686,700 | |||||||
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 2,278 | 1,717 | |||||||
Letter of credit (Level 3) | — | 146 | |||||||
-1 | – Amounts shown based on aggregate amounts outstanding for the periods presented. | ||||||||
During 2014 and 2013, there were no transfers of financial assets or liabilities in or out of Level 1, Level 2 or Level 3 of the fair value hierarchy. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||||||||||
(4) Stockholders’ Equity | |||||||||||||||||||||||||
The following table summarizes the activity in Stockholders’ Equity for the three month period ended March 31, 2014 (amounts in thousands, except share data): | |||||||||||||||||||||||||
Common Stock | Additional | Retained | Total | ||||||||||||||||||||||
Shares | Amount | Paid-in | Treasury | Earnings | Stockholders’ | ||||||||||||||||||||
Issued | Capital | Stock | (Deficit) | Equity | |||||||||||||||||||||
Balances at December 31, 2013 | 39,023,594 | $ | 389 | $ | 215,775 | $ | (58,468 | ) | $ | (62,884 | ) | $ | 94,812 | ||||||||||||
Stock-based compensation | — | — | 808 | — | — | 808 | |||||||||||||||||||
Issuance of common stock | 10,380 | 1 | — | — | — | 1 | |||||||||||||||||||
Net income | — | — | — | — | 7,436 | 7,436 | |||||||||||||||||||
Balances at March 31, 2014 | 39,033,974 | $ | 390 | $ | 216,583 | $ | (58,468 | ) | $ | (55,448 | ) | $ | 103,057 | ||||||||||||
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||
Stock-Based Compensation | ' | ||||||||||||
(5) Stock-Based Compensation | |||||||||||||
We account for our stock-based compensation plan using the fair value recognition provisions of ASC 718, Stock Compensation (“ASC 718”). Under the provisions of ASC 718, stock-based compensation is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite employee service period (generally the vesting period of the grant). Shares available for future stock-based payment awards under our 2006 Stock-Based Incentive Compensation Plan were 3,604,046 shares as of March 31, 2014. | |||||||||||||
Non-vested Stock | |||||||||||||
The following table summarizes our non-vested stock activity for the three months ended March 31, 2014: | |||||||||||||
Number of | Weighted | ||||||||||||
Shares | Average Grant | ||||||||||||
Date Fair Value | |||||||||||||
Non-vested stock at December 31, 2013 | 187,867 | $ | 18.21 | ||||||||||
Granted | 10,380 | $ | 28.91 | ||||||||||
Vested | (10,380 | ) | $ | 28.91 | |||||||||
Forfeited | — | $ | — | ||||||||||
Non-vested stock at March 31, 2014 | 187,867 | $ | 18.21 | ||||||||||
As of March 31, 2014, we had unrecognized compensation expense of approximately $2.4 million related to non-vested stock that we expect to be recognized over a weighted-average period of 1.8 years. The following table summarizes compensation expense, which is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income for the three months ended March 31, 2014 and 2013 (amounts in thousands): | |||||||||||||
For the Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Compensation expense | $ | 808 | $ | 938 | |||||||||
Stock Options | |||||||||||||
At March 31, 2014, there is no unrecognized compensation expense as all stock option awards have fully vested. The following table represents stock option activity for the three months ended March 31, 2014: | |||||||||||||
Number of | Weighted Average | Weighted Average | |||||||||||
Shares | Exercise Price | Contractual Life | |||||||||||
In Years | |||||||||||||
Outstanding options at December 31, 2013 | 51,000 | $ | 17.8 | ||||||||||
Granted | — | — | |||||||||||
Exercised | — | — | |||||||||||
Canceled, forfeited or expired | — | — | |||||||||||
Outstanding options at March 31, 2014 | 51,000 | $ | 17.8 | 2.3 | |||||||||
Options exercisable at March 31, 2014 | 51,000 | $ | 17.8 | 2.3 | |||||||||
The aggregate intrinsic value of our outstanding and exercisable options at March 31, 2014 was approximately $2.1 million. |
Income_per_Share
Income per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Income per Share | ' | ||||||||
(6) Income per Share | |||||||||
Income per common share for the three months ended March 31, 2014 and 2013 is based on the weighted average number of common shares outstanding during the period. The effects of potentially dilutive securities that are anti-dilutive are not included in the computation of dilutive income per share. The following table sets forth the computation of basic and diluted net income per common share for the three month periods ended March 31, 2014 and 2013 (amounts in thousands, except per share amounts): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Basic net income per share: | |||||||||
Net income | $ | 7,436 | $ | 4,777 | |||||
Weighted average number of common shares outstanding | 35,108 | 34,976 | |||||||
Net income per common share – basic | $ | 0.21 | $ | 0.14 | |||||
Diluted net income per share: | |||||||||
Net income | $ | 7,436 | $ | 4,777 | |||||
Weighted average number of common shares outstanding | 35,108 | 34,976 | |||||||
Effect of dilutive securities: | |||||||||
Effect of dilutive stock options | 23 | 14 | |||||||
Effect of dilutive non-vested stock | 87 | 107 | |||||||
Weighted average number of common shares outstanding – diluted | 35,218 | 35,097 | |||||||
Net income per common share – diluted | $ | 0.21 | $ | 0.14 | |||||
Common shares excluded from the denominator as anti-dilutive: | |||||||||
Stock options | — | — | |||||||
Non-vested restricted stock | — | — |
Senior_Unsecured_Notes
Senior Unsecured Notes | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Text Block [Abstract] | ' | ||||
Senior Unsecured Notes | ' | ||||
(7) Senior Unsecured Notes | |||||
The following table reconciles our Senior Secured Notes to our Condensed Consolidated Balance Sheets (amounts in thousands): | |||||
Balance at December 31, 2012 | $ | 521,065 | |||
Aggregate principal amount issued on February 4, 2013 | 100,000 | ||||
Premium on notes issued | 8,500 | ||||
Initial purchaser’s discount | (1,250 | ) | |||
Accretion of discount through December 31, 2013 | 1,044 | ||||
Amortization of note premium through December 31, 2013 | (813 | ) | |||
Balance at December 31, 2013 | $ | 628,546 | |||
Accretion of discount through March 31, 2014 | 264 | ||||
Amortization of note premium through March 31, 2014 | (222 | ) | |||
Balance at March 31, 2014 | $ | 628,588 | |||
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Information | ' | ||||||||
(8) Segment Information | |||||||||
We have identified five reportable segments: equipment rentals, new equipment sales, used equipment sales, parts sales and service revenues. These segments are based upon how management of the Company allocates resources and assesses performance. Non-segmented revenues and non-segmented costs relate to equipment support activities including transportation, hauling, parts freight and damage-waiver charges and are not allocated to the other reportable segments. There were no sales between segments for any of the periods presented. Selling, general and administrative expenses as well as all other income and expense items below gross profit are not generally allocated to reportable segments. | |||||||||
We do not compile discrete financial information by segments other than the information presented below. The following table presents information about our reportable segments (amounts in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Segment Revenues: | |||||||||
Equipment rentals | $ | 86,224 | $ | 75,370 | |||||
New equipment sales | 69,547 | 53,323 | |||||||
Used equipment sales | 29,345 | 32,149 | |||||||
Parts sales | 25,802 | 24,952 | |||||||
Services revenues | 13,648 | 14,551 | |||||||
Total segmented revenues | 224,566 | 200,345 | |||||||
Non-segmented revenues | 12,663 | 12,043 | |||||||
Total revenues | $ | 237,229 | $ | 212,388 | |||||
Segment Gross Profit: | |||||||||
Equipment rentals | $ | 39,002 | $ | 33,635 | |||||
New equipment sales | 7,813 | 5,584 | |||||||
Used equipment sales | 8,927 | 9,401 | |||||||
Parts sales | 7,520 | 6,648 | |||||||
Services revenues | 8,907 | 8,808 | |||||||
Total segmented gross profit | 72,169 | 64,076 | |||||||
Non-segmented gross profit | 615 | 404 | |||||||
Total gross profit | $ | 72,784 | $ | 64,480 | |||||
Balances at | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Segment identified assets: | |||||||||
Equipment sales | $ | 150,622 | $ | 95,392 | |||||
Equipment rentals | 704,237 | 688,710 | |||||||
Parts and services | 18,162 | 16,248 | |||||||
Total segment identified assets | 873,021 | 800,350 | |||||||
Non-segment identified assets | 287,645 | 289,990 | |||||||
Total assets | $ | 1,160,666 | $ | 1,090,340 | |||||
The Company operates primarily in the United States and our sales to international customers for the three month periods ended March 31, 2014 and 2013 were approximately 1.6% and 1.8% of total revenues, respectively. No one customer accounted for more than 10% of our revenues on an overall or segment basis for any of the periods presented. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information of Guarantor Subsidiaries | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Condensed Consolidating Financial Information of Guarantor Subsidiaries | ' | ||||||||||||||||
(9) Condensed Consolidating Financial Information of Guarantor Subsidiaries | |||||||||||||||||
All of the indebtedness of H&E Equipment Services, Inc. is guaranteed by GNE Investments, Inc. and its wholly-owned subsidiary Great Northern Equipment, Inc., H&E Equipment Services (California), LLC, H&E California Holding, Inc., H&E Equipment Services (Mid-Atlantic), Inc. and H&E Finance Corp. The guarantor subsidiaries are all wholly-owned and the guarantees, made on a joint and several basis, are full and unconditional (subject to subordination provisions and subject to a standard limitation which provides that the maximum amount guaranteed by each guarantor will not exceed the maximum amount that can be guaranteed without making the guarantee void under fraudulent conveyance laws). There are no restrictions on H&E Equipment Services, Inc.’s ability to obtain funds from the guarantor subsidiaries by dividend or loan. | |||||||||||||||||
The consolidating financial statements of H&E Equipment Services, Inc. and its subsidiaries are included below. The financial statements for H&E Finance Corp. are not included within the consolidating financial statements because H&E Finance Corp. has no assets or operations. | |||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||
As of March 31, 2014 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash | $ | 4,965 | $ | — | $ | — | $ | 4,965 | |||||||||
Receivables, net | 120,742 | 16,516 | — | 137,258 | |||||||||||||
Inventories, net | 155,396 | 13,388 | — | 168,784 | |||||||||||||
Prepaid expenses and other assets | 9,820 | 221 | — | 10,041 | |||||||||||||
Rental equipment, net | 601,871 | 102,366 | — | 704,237 | |||||||||||||
Property and equipment, net | 87,071 | 12,692 | — | 99,763 | |||||||||||||
Deferred financing costs, net | 4,421 | — | — | 4,421 | |||||||||||||
Investment in guarantor subsidiaries | 165,398 | — | (165,398 | ) | — | ||||||||||||
Goodwill | 1,671 | 29,526 | — | 31,197 | |||||||||||||
Total assets | $ | 1,151,355 | $ | 174,709 | $ | (165,398 | ) | $ | 1,160,666 | ||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||
Amounts due on senior secured credit facility | $ | 123,967 | $ | — | $ | — | $ | 123,967 | |||||||||
Accounts payable | 105,623 | 6,883 | — | 112,506 | |||||||||||||
Manufacturer flooring plans payable | 56,357 | (44 | ) | — | 56,313 | ||||||||||||
Dividends payable | 633 | — | — | 633 | |||||||||||||
Accrued expenses payable and other liabilities | 38,844 | 238 | — | 39,082 | |||||||||||||
Senior unsecured notes | 628,588 | — | — | 628,588 | |||||||||||||
Capital lease payable | — | 2,234 | — | 2,234 | |||||||||||||
Deferred income taxes | 92,230 | — | — | 92,230 | |||||||||||||
Deferred compensation payable | 2,056 | — | — | 2,056 | |||||||||||||
Total liabilities | 1,048,298 | 9,311 | — | 1,057,609 | |||||||||||||
Stockholders’ equity | 103,057 | 165,398 | (165,398 | ) | 103,057 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 1,151,355 | $ | 174,709 | $ | (165,398 | ) | $ | 1,160,666 | ||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash | $ | 17,607 | $ | — | $ | — | $ | 17,607 | |||||||||
Receivables, net | 114,525 | 17,445 | — | 131,970 | |||||||||||||
Inventories, net | 102,125 | 9,515 | — | 111,640 | |||||||||||||
Prepaid expenses and other assets | 5,853 | 171 | — | 6,024 | |||||||||||||
Rental equipment, net | 582,721 | 105,989 | — | 688,710 | |||||||||||||
Property and equipment, net | 85,826 | 12,677 | — | 98,503 | |||||||||||||
Deferred financing costs, net | 4,689 | — | — | 4,689 | |||||||||||||
Investment in guarantor subsidiaries | 165,703 | — | (165,703 | ) | — | ||||||||||||
Goodwill | 1,671 | 29,526 | — | 31,197 | |||||||||||||
Total assets | $ | 1,080,720 | $ | 175,323 | $ | (165,703 | ) | $ | 1,090,340 | ||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||
Amount due on senior secured credit facility | $ | 102,460 | $ | — | $ | — | $ | 102,460 | |||||||||
Accounts payable | 60,787 | 6,992 | — | 67,779 | |||||||||||||
Manufacturer flooring plans payable | 49,062 | — | — | 49,062 | |||||||||||||
Dividends payable | 656 | (23 | ) | — | 633 | ||||||||||||
Accrued expenses payable and other liabilities | 54,066 | 373 | — | 54,439 | |||||||||||||
Senior unsecured notes | 628,546 | — | — | 628,546 | |||||||||||||
Capital leases payable | — | 2,278 | — | 2,278 | |||||||||||||
Deferred income taxes | 88,291 | — | — | 88,291 | |||||||||||||
Deferred compensation payable | 2,040 | — | — | 2,040 | |||||||||||||
Total liabilities | 985,908 | 9,620 | — | 995,528 | |||||||||||||
Stockholders’ equity | 94,812 | 165,703 | (165,703 | ) | 94,812 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 1,080,720 | $ | 175,323 | $ | (165,703 | ) | $ | 1,090,340 | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Revenues: | |||||||||||||||||
Equipment rentals | $ | 73,445 | $ | 12,779 | $ | — | $ | 86,224 | |||||||||
New equipment sales | 61,050 | 8,497 | — | 69,547 | |||||||||||||
Used equipment sales | 21,574 | 7,771 | — | 29,345 | |||||||||||||
Parts sales | 22,399 | 3,403 | — | 25,802 | |||||||||||||
Services revenues | 11,572 | 2,076 | — | 13,648 | |||||||||||||
Other | 10,536 | 2,127 | — | 12,663 | |||||||||||||
Total revenues | 200,576 | 36,653 | — | 237,229 | |||||||||||||
Cost of revenues: | |||||||||||||||||
Rental depreciation | 27,785 | 5,213 | — | 32,998 | |||||||||||||
Rental expense | 11,938 | 2,286 | — | 14,224 | |||||||||||||
New equipment sales | 54,126 | 7,608 | — | 61,734 | |||||||||||||
Used equipment sales | 14,489 | 5,929 | — | 20,418 | |||||||||||||
Parts sales | 15,912 | 2,370 | — | 18,282 | |||||||||||||
Services revenues | 3,976 | 765 | — | 4,741 | |||||||||||||
Other | 9,854 | 2,194 | — | 12,048 | |||||||||||||
Total cost of revenues | 138,080 | 26,365 | — | 164,445 | |||||||||||||
Gross profit (loss): | |||||||||||||||||
Equipment rentals | 33,722 | 5,280 | — | 39,002 | |||||||||||||
New equipment sales | 6,924 | 889 | — | 7,813 | |||||||||||||
Used equipment sales | 7,085 | 1,842 | — | 8,927 | |||||||||||||
Parts sales | 6,487 | 1,033 | — | 7,520 | |||||||||||||
Services revenues | 7,596 | 1,311 | — | 8,907 | |||||||||||||
Other | 682 | (67 | ) | — | 615 | ||||||||||||
Gross profit | 62,496 | 10,288 | — | 72,784 | |||||||||||||
Selling, general and administrative expenses | 41,275 | 7,581 | — | 48,856 | |||||||||||||
Equity in earnings of guarantor subsidiaries | 199 | — | (199 | ) | — | ||||||||||||
Gain on sales of property and equipment, net | 513 | 150 | — | 663 | |||||||||||||
Income from operations | 21,933 | 2,857 | (199 | ) | 24,591 | ||||||||||||
Other income (expense): | |||||||||||||||||
Interest expense | (9,951 | ) | (2,699 | ) | — | (12,650 | ) | ||||||||||
Other, net | 265 | 41 | — | 306 | |||||||||||||
Total other expense, net | (9,686 | ) | (2,658 | ) | — | (12,344 | ) | ||||||||||
Income before income taxes | 12,247 | 199 | (199 | ) | 12,247 | ||||||||||||
Income tax expense | 4,811 | — | — | 4,811 | |||||||||||||
Net income | $ | 7,436 | $ | 199 | $ | (199 | ) | $ | 7,436 | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Revenues: | |||||||||||||||||
Equipment rentals | $ | 62,909 | $ | 12,461 | $ | — | $ | 75,370 | |||||||||
New equipment sales | 47,271 | 6,052 | — | 53,323 | |||||||||||||
Used equipment sales | 25,526 | 6,623 | — | 32,149 | |||||||||||||
Parts sales | 21,315 | 3,637 | — | 24,952 | |||||||||||||
Services revenues | 12,768 | 1,783 | — | 14,551 | |||||||||||||
Other | 9,938 | 2,105 | — | 12,043 | |||||||||||||
Total revenues | 179,727 | 32,661 | — | 212,388 | |||||||||||||
Cost of revenues: | |||||||||||||||||
Rental depreciation | 23,023 | 5,109 | — | 28,132 | |||||||||||||
Rental expense | 11,279 | 2,324 | — | 13,603 | |||||||||||||
New equipment sales | 42,394 | 5,345 | — | 47,739 | |||||||||||||
Used equipment sales | 17,658 | 5,090 | — | 22,748 | |||||||||||||
Parts sales | 15,667 | 2,637 | — | 18,304 | |||||||||||||
Services revenues | 5,141 | 602 | — | 5,743 | |||||||||||||
Other | 9,422 | 2,217 | — | 11,639 | |||||||||||||
Total cost of revenues | 124,584 | 23,324 | — | 147,908 | |||||||||||||
Gross profit (loss): | |||||||||||||||||
Equipment rentals | 28,607 | 5,028 | — | 33,635 | |||||||||||||
New equipment sales | 4,877 | 707 | — | 5,584 | |||||||||||||
Used equipment sales | 7,868 | 1,533 | — | 9,401 | |||||||||||||
Parts sales | 5,648 | 1,000 | — | 6,648 | |||||||||||||
Services revenues | 7,627 | 1,181 | — | 8,808 | |||||||||||||
Other | 516 | (112 | ) | — | 404 | ||||||||||||
Gross profit | 55,143 | 9,337 | — | 64,480 | |||||||||||||
Selling, general and administrative expenses | 38,479 | 7,785 | — | 46,264 | |||||||||||||
Equity in loss of guarantor subsidiaries | (816 | ) | — | 816 | — | ||||||||||||
Gain on sales of property and equipment, net | 426 | 74 | — | 500 | |||||||||||||
Income from operations | 16,274 | 1,626 | 816 | 18,716 | |||||||||||||
Other income (expense): | |||||||||||||||||
Interest expense | (9,803 | ) | (2,469 | ) | — | (12,272 | ) | ||||||||||
Other, net | 480 | 27 | — | 507 | |||||||||||||
Total other expense, net | (9,323 | ) | (2,442 | ) | — | (11,765 | ) | ||||||||||
Income (loss) before income taxes | 6,951 | (816 | ) | 816 | 6,951 | ||||||||||||
Income tax expense | 2,174 | — | — | 2,174 | |||||||||||||
Net income (loss) | $ | 4,777 | $ | (816 | ) | $ | 816 | $ | 4,777 | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 7,436 | $ | 199 | $ | (199 | ) | $ | 7,436 | ||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||||||
Depreciation and amortization on property and equipment | 4,193 | 587 | — | 4,780 | |||||||||||||
Depreciation of rental equipment | 27,785 | 5,213 | — | 32,998 | |||||||||||||
Amortization of deferred financing costs | 268 | — | — | 268 | |||||||||||||
Accretion of note discount, net of premium amortization | 42 | — | — | 42 | |||||||||||||
Provision for losses on accounts receivable | 627 | 107 | — | 734 | |||||||||||||
Provision for inventory obsolescence | 63 | — | — | 63 | |||||||||||||
Provision for deferred income taxes | 3,939 | — | — | 3,939 | |||||||||||||
Stock-based compensation expense | 808 | — | — | 808 | |||||||||||||
Gain on sales of property and equipment, net | (512 | ) | (150 | ) | — | (662 | ) | ||||||||||
Gain on sales of rental equipment, net | (6,547 | ) | (1,810 | ) | — | (8,357 | ) | ||||||||||
Equity in earnings of guarantor subsidiaries | (199 | ) | — | 199 | — | ||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Receivables | (6,844 | ) | 822 | — | (6,022 | ) | |||||||||||
Inventories | (75,278 | ) | (7,236 | ) | — | (82,514 | ) | ||||||||||
Prepaid expenses and other assets | (3,967 | ) | (50 | ) | — | (4,017 | ) | ||||||||||
Accounts payable | 44,836 | (109 | ) | — | 44,727 | ||||||||||||
Manufacturer flooring plans payable | 7,295 | (44 | ) | — | 7,251 | ||||||||||||
Accrued expenses payable and other liabilities | (15,222 | ) | (135 | ) | — | (15,357 | ) | ||||||||||
Deferred compensation payable | 16 | — | — | 16 | |||||||||||||
Net cash used in operating activities | (11,261 | ) | (2,606 | ) | — | (13,867 | ) | ||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of property and equipment | (5,457 | ) | (602 | ) | — | (6,059 | ) | ||||||||||
Purchases of rental equipment | (36,595 | ) | (3,068 | ) | — | (39,663 | ) | ||||||||||
Proceeds from sales of property and equipment | 532 | 150 | — | 682 | |||||||||||||
Proceeds from sales of rental equipment | 18,151 | 6,651 | — | 24,802 | |||||||||||||
Investment in subsidiaries | 504 | — | (504 | ) | — | ||||||||||||
Net cash provided by (used in) investing activities . | (22,865 | ) | 3,131 | (504 | ) | (20,238 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||
Borrowings on senior secured credit facility | 266,183 | — | — | 266,183 | |||||||||||||
Payments on senior secured credit facility | (244,676 | ) | — | — | (244,676 | ) | |||||||||||
Dividends paid | (23 | ) | 23 | — | — | ||||||||||||
Payments on capital lease obligations | — | (44 | ) | — | (44 | ) | |||||||||||
Capital contributions | — | (504 | ) | 504 | — | ||||||||||||
Net cash provided by (used in) financing activities | 21,484 | (525 | ) | 504 | 21,463 | ||||||||||||
Net decrease in cash | (12,642 | ) | — | — | (12,642 | ) | |||||||||||
Cash, beginning of period | 17,607 | — | — | 17,607 | |||||||||||||
Cash, end of period | $ | 4,965 | $ | — | $ | — | $ | 4,965 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | 4,777 | $ | (816 | ) | $ | 816 | $ | 4,777 | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization on property and equipment | 3,435 | 500 | — | 3,935 | |||||||||||||
Depreciation on rental equipment | 23,023 | 5,109 | — | 28,132 | |||||||||||||
Amortization of deferred financing costs | 281 | — | — | 281 | |||||||||||||
Accretion of note discount, net of premium amortization | 105 | — | — | 105 | |||||||||||||
Provision for losses on accounts receivable | 569 | 198 | — | 767 | |||||||||||||
Provision for inventory obsolescence | 56 | — | — | 56 | |||||||||||||
Increase in deferred income taxes | 649 | — | — | 649 | |||||||||||||
Stock-based compensation expense | 938 | — | — | 938 | |||||||||||||
Gain on sales of property and equipment, net | (426 | ) | (74 | ) | — | (500 | ) | ||||||||||
Gain on sales of rental equipment, net | (6,991 | ) | (1,507 | ) | — | (8,498 | ) | ||||||||||
Writedown of goodwill for tax-deductible goodwill in excess of book goodwill | 219 | — | — | 219 | |||||||||||||
Equity in loss of guarantor subsidiaries | 816 | — | (816 | ) | — | ||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Receivables | 7,020 | 1,755 | — | 8,775 | |||||||||||||
Inventories | (89,230 | ) | (4,229 | ) | — | (93,459 | ) | ||||||||||
Prepaid expenses and other assets | (1,944 | ) | (57 | ) | — | (2,001 | ) | ||||||||||
Accounts payable | 57,014 | 4,392 | — | 61,406 | |||||||||||||
Manufacturer flooring plans payable | 17,198 | (344 | ) | — | 16,854 | ||||||||||||
Accrued expenses payable and other liabilities | (14,089 | ) | 449 | — | (13,640 | ) | |||||||||||
Deferred compensation payable | 17 | — | — | 17 | |||||||||||||
Net cash provided by operating activities | 3,437 | 5,376 | — | 8,813 | |||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of property and equipment | (6,033 | ) | (255 | ) | — | (6,288 | ) | ||||||||||
Purchases of rental equipment | (30,204 | ) | (3,896 | ) | — | (34,100 | ) | ||||||||||
Proceeds from sales of property and equipment | 447 | 74 | — | 521 | |||||||||||||
Proceeds from sales of rental equipment | 17,918 | 4,463 | — | 22,381 | |||||||||||||
Investment in subsidiaries | 5,721 | — | (5,721 | ) | — | ||||||||||||
Net cash provided by (used in) investing activities | (12,151 | ) | 386 | (5,721 | ) | (17,486 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||
Borrowings on senior secured credit facility | 240,088 | — | — | 240,088 | |||||||||||||
Payments on senior secured credit facility | (343,989 | ) | — | — | (343,989 | ) | |||||||||||
Proceeds from issuance of senior unsecured notes | 107,250 | — | — | 107,250 | |||||||||||||
Payments of deferred financing costs | (564 | ) | — | — | (564 | ) | |||||||||||
Payments on capital lease obligations | — | (41 | ) | — | (41 | ) | |||||||||||
Capital contributions | — | (5,721 | ) | 5,721 | — | ||||||||||||
Net cash provided by (used in) financing activities | 2,785 | (5,762 | ) | 5,721 | 2,744 | ||||||||||||
Net decrease in cash | (5,929 | ) | — | — | (5,929 | ) | |||||||||||
Cash, beginning of period | 8,894 | — | — | 8,894 | |||||||||||||
Cash, end of period | $ | 2,965 | $ | — | $ | — | $ | 2,965 | |||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Use of Estimates | ' |
Use of Estimates | |
We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, which requires management to use its judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. These assumptions and estimates could have a material effect on our condensed consolidated financial statements. Actual results may differ materially from those estimates. We review our estimates on an ongoing basis based on information currently available, and changes in facts and circumstances may cause us to revise these estimates. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”) which amended the FASB’s guidance for reporting discontinued operations and disposals of components of an entity under Accounting Standards Codification Subtopic 250-20. The guidance as amended by ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation by requiring that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale be reported as such. The amendments also expand the disclosure requirements regarding the assets, liabilities, revenues and expenses of discontinued operations and add new disclosure requirements for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective prospectively for fiscal years beginning after December 15, 2014, and interim reporting periods within those years (early adoption is permitted only for disposals that have not been previously reported). The implementation of the amended guidance is not expected to have a material impact on our consolidated financial position or results of operations. | |
Stock Compensation | ' |
We account for our stock-based compensation plan using the fair value recognition provisions of ASC 718, Stock Compensation (“ASC 718”). Under the provisions of ASC 718, stock-based compensation is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite employee service period (generally the vesting period of the grant). Shares available for future stock-based payment awards under our 2006 Stock-Based Incentive Compensation Plan were 3,604,046 shares as of March 31, 2014. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements | ' | ||||||||
The carrying amounts and fair values of our other financial instruments subject to fair value disclosures as of March 31, 2014 and December 31, 2013 are presented in the table below (amounts in thousands) and have been calculated based upon market quotes and present value calculations based on market rates. | |||||||||
March 31, 2014 | |||||||||
Carrying | Fair | ||||||||
Amount | Value | ||||||||
Manufacturer flooring plans payable with interest computed at 5.25% (Level 3) | $ | 56,313 | $ | 49,347 | |||||
Senior unsecured notes with interest computed at 7.0%(1) (Level 1) | 630,000 | 693,000 | |||||||
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 2,234 | 1,671 | |||||||
Letter of credit (Level 3) | — | 146 | |||||||
December 31, 2013 | |||||||||
Carrying | Fair | ||||||||
Amount | Value | ||||||||
Manufacturer flooring plans payable with interest computed at 5.25% (Level 3) | $ | 49,062 | $ | 42,686 | |||||
Senior unsecured notes with interest computed at 7.0%(1) (Level 1) | 630,000 | 686,700 | |||||||
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 2,278 | 1,717 | |||||||
Letter of credit (Level 3) | — | 146 | |||||||
-1 | – Amounts shown based on aggregate amounts outstanding for the periods presented. |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Summary of Activity in Stockholders' Equity | ' | ||||||||||||||||||||||||
The following table summarizes the activity in Stockholders’ Equity for the three month period ended March 31, 2014 (amounts in thousands, except share data): | |||||||||||||||||||||||||
Common Stock | Additional | Retained | Total | ||||||||||||||||||||||
Shares | Amount | Paid-in | Treasury | Earnings | Stockholders’ | ||||||||||||||||||||
Issued | Capital | Stock | (Deficit) | Equity | |||||||||||||||||||||
Balances at December 31, 2013 | 39,023,594 | $ | 389 | $ | 215,775 | $ | (58,468 | ) | $ | (62,884 | ) | $ | 94,812 | ||||||||||||
Stock-based compensation | — | — | 808 | — | — | 808 | |||||||||||||||||||
Issuance of common stock | 10,380 | 1 | — | — | — | 1 | |||||||||||||||||||
Net income | — | — | — | — | 7,436 | 7,436 | |||||||||||||||||||
Balances at March 31, 2014 | 39,033,974 | $ | 390 | $ | 216,583 | $ | (58,468 | ) | $ | (55,448 | ) | $ | 103,057 | ||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||
Schedule of Non-Vested Stock Activity | ' | ||||||||||||
The following table summarizes our non-vested stock activity for the three months ended March 31, 2014: | |||||||||||||
Number of | Weighted | ||||||||||||
Shares | Average Grant | ||||||||||||
Date Fair Value | |||||||||||||
Non-vested stock at December 31, 2013 | 187,867 | $ | 18.21 | ||||||||||
Granted | 10,380 | $ | 28.91 | ||||||||||
Vested | (10,380 | ) | $ | 28.91 | |||||||||
Forfeited | — | $ | — | ||||||||||
Non-vested stock at March 31, 2014 | 187,867 | $ | 18.21 | ||||||||||
Schedule of Compensation Expense Related to Non-Vested Stock | ' | ||||||||||||
The following table summarizes compensation expense, which is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income for the three months ended March 31, 2014 and 2013 (amounts in thousands): | |||||||||||||
For the Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Compensation expense | $ | 808 | $ | 938 | |||||||||
Schedule of Share Based Compensation Stock Options Activity | ' | ||||||||||||
The following table represents stock option activity for the three months ended March 31, 2014: | |||||||||||||
Number of | Weighted Average | Weighted Average | |||||||||||
Shares | Exercise Price | Contractual Life | |||||||||||
In Years | |||||||||||||
Outstanding options at December 31, 2013 | 51,000 | $ | 17.8 | ||||||||||
Granted | — | — | |||||||||||
Exercised | — | — | |||||||||||
Canceled, forfeited or expired | — | — | |||||||||||
Outstanding options at March 31, 2014 | 51,000 | $ | 17.8 | 2.3 | |||||||||
Options exercisable at March 31, 2014 | 51,000 | $ | 17.8 | 2.3 | |||||||||
Income_per_Share_Tables
Income per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Computation of Basic and Diluted Net Income per Common Share | ' | ||||||||
The following table sets forth the computation of basic and diluted net income per common share for the three month periods ended March 31, 2014 and 2013 (amounts in thousands, except per share amounts): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Basic net income per share: | |||||||||
Net income | $ | 7,436 | $ | 4,777 | |||||
Weighted average number of common shares outstanding | 35,108 | 34,976 | |||||||
Net income per common share – basic | $ | 0.21 | $ | 0.14 | |||||
Diluted net income per share: | |||||||||
Net income | $ | 7,436 | $ | 4,777 | |||||
Weighted average number of common shares outstanding | 35,108 | 34,976 | |||||||
Effect of dilutive securities: | |||||||||
Effect of dilutive stock options | 23 | 14 | |||||||
Effect of dilutive non-vested stock | 87 | 107 | |||||||
Weighted average number of common shares outstanding – diluted | 35,218 | 35,097 | |||||||
Net income per common share – diluted | $ | 0.21 | $ | 0.14 | |||||
Common shares excluded from the denominator as anti-dilutive: | |||||||||
Stock options | — | — | |||||||
Non-vested restricted stock | — | — |
Senior_Unsecured_Notes_Tables
Senior Unsecured Notes (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Text Block [Abstract] | ' | ||||
Reconciliation of Senior Secured Notes to Condensed Consolidated Balance Sheet | ' | ||||
The following table reconciles our Senior Secured Notes to our Condensed Consolidated Balance Sheets (amounts in thousands): | |||||
Balance at December 31, 2012 | $ | 521,065 | |||
Aggregate principal amount issued on February 4, 2013 | 100,000 | ||||
Premium on notes issued | 8,500 | ||||
Initial purchaser’s discount | (1,250 | ) | |||
Accretion of discount through December 31, 2013 | 1,044 | ||||
Amortization of note premium through December 31, 2013 | (813 | ) | |||
Balance at December 31, 2013 | $ | 628,546 | |||
Accretion of discount through March 31, 2014 | 264 | ||||
Amortization of note premium through March 31, 2014 | (222 | ) | |||
Balance at March 31, 2014 | $ | 628,588 | |||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Information about Reportable Segments | ' | ||||||||
The following table presents information about our reportable segments (amounts in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Segment Revenues: | |||||||||
Equipment rentals | $ | 86,224 | $ | 75,370 | |||||
New equipment sales | 69,547 | 53,323 | |||||||
Used equipment sales | 29,345 | 32,149 | |||||||
Parts sales | 25,802 | 24,952 | |||||||
Services revenues | 13,648 | 14,551 | |||||||
Total segmented revenues | 224,566 | 200,345 | |||||||
Non-segmented revenues | 12,663 | 12,043 | |||||||
Total revenues | $ | 237,229 | $ | 212,388 | |||||
Segment Gross Profit: | |||||||||
Equipment rentals | $ | 39,002 | $ | 33,635 | |||||
New equipment sales | 7,813 | 5,584 | |||||||
Used equipment sales | 8,927 | 9,401 | |||||||
Parts sales | 7,520 | 6,648 | |||||||
Services revenues | 8,907 | 8,808 | |||||||
Total segmented gross profit | 72,169 | 64,076 | |||||||
Non-segmented gross profit | 615 | 404 | |||||||
Total gross profit | $ | 72,784 | $ | 64,480 | |||||
Balances at | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Segment identified assets: | |||||||||
Equipment sales | $ | 150,622 | $ | 95,392 | |||||
Equipment rentals | 704,237 | 688,710 | |||||||
Parts and services | 18,162 | 16,248 | |||||||
Total segment identified assets | 873,021 | 800,350 | |||||||
Non-segment identified assets | 287,645 | 289,990 | |||||||
Total assets | $ | 1,160,666 | $ | 1,090,340 | |||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information of Guarantor Subsidiaries (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Condensed Consolidating Balance Sheet | ' | ||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||
As of March 31, 2014 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash | $ | 4,965 | $ | — | $ | — | $ | 4,965 | |||||||||
Receivables, net | 120,742 | 16,516 | — | 137,258 | |||||||||||||
Inventories, net | 155,396 | 13,388 | — | 168,784 | |||||||||||||
Prepaid expenses and other assets | 9,820 | 221 | — | 10,041 | |||||||||||||
Rental equipment, net | 601,871 | 102,366 | — | 704,237 | |||||||||||||
Property and equipment, net | 87,071 | 12,692 | — | 99,763 | |||||||||||||
Deferred financing costs, net | 4,421 | — | — | 4,421 | |||||||||||||
Investment in guarantor subsidiaries | 165,398 | — | (165,398 | ) | — | ||||||||||||
Goodwill | 1,671 | 29,526 | — | 31,197 | |||||||||||||
Total assets | $ | 1,151,355 | $ | 174,709 | $ | (165,398 | ) | $ | 1,160,666 | ||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||
Amounts due on senior secured credit facility | $ | 123,967 | $ | — | $ | — | $ | 123,967 | |||||||||
Accounts payable | 105,623 | 6,883 | — | 112,506 | |||||||||||||
Manufacturer flooring plans payable | 56,357 | (44 | ) | — | 56,313 | ||||||||||||
Dividends payable | 633 | — | — | 633 | |||||||||||||
Accrued expenses payable and other liabilities | 38,844 | 238 | — | 39,082 | |||||||||||||
Senior unsecured notes | 628,588 | — | — | 628,588 | |||||||||||||
Capital lease payable | — | 2,234 | — | 2,234 | |||||||||||||
Deferred income taxes | 92,230 | — | — | 92,230 | |||||||||||||
Deferred compensation payable | 2,056 | — | — | 2,056 | |||||||||||||
Total liabilities | 1,048,298 | 9,311 | — | 1,057,609 | |||||||||||||
Stockholders’ equity | 103,057 | 165,398 | (165,398 | ) | 103,057 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 1,151,355 | $ | 174,709 | $ | (165,398 | ) | $ | 1,160,666 | ||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash | $ | 17,607 | $ | — | $ | — | $ | 17,607 | |||||||||
Receivables, net | 114,525 | 17,445 | — | 131,970 | |||||||||||||
Inventories, net | 102,125 | 9,515 | — | 111,640 | |||||||||||||
Prepaid expenses and other assets | 5,853 | 171 | — | 6,024 | |||||||||||||
Rental equipment, net | 582,721 | 105,989 | — | 688,710 | |||||||||||||
Property and equipment, net | 85,826 | 12,677 | — | 98,503 | |||||||||||||
Deferred financing costs, net | 4,689 | — | — | 4,689 | |||||||||||||
Investment in guarantor subsidiaries | 165,703 | — | (165,703 | ) | — | ||||||||||||
Goodwill | 1,671 | 29,526 | — | 31,197 | |||||||||||||
Total assets | $ | 1,080,720 | $ | 175,323 | $ | (165,703 | ) | $ | 1,090,340 | ||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||
Amount due on senior secured credit facility | $ | 102,460 | $ | — | $ | — | $ | 102,460 | |||||||||
Accounts payable | 60,787 | 6,992 | — | 67,779 | |||||||||||||
Manufacturer flooring plans payable | 49,062 | — | — | 49,062 | |||||||||||||
Dividends payable | 656 | (23 | ) | — | 633 | ||||||||||||
Accrued expenses payable and other liabilities | 54,066 | 373 | — | 54,439 | |||||||||||||
Senior unsecured notes | 628,546 | — | — | 628,546 | |||||||||||||
Capital leases payable | — | 2,278 | — | 2,278 | |||||||||||||
Deferred income taxes | 88,291 | — | — | 88,291 | |||||||||||||
Deferred compensation payable | 2,040 | — | — | 2,040 | |||||||||||||
Total liabilities | 985,908 | 9,620 | — | 995,528 | |||||||||||||
Stockholders’ equity | 94,812 | 165,703 | (165,703 | ) | 94,812 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 1,080,720 | $ | 175,323 | $ | (165,703 | ) | $ | 1,090,340 | ||||||||
Condensed Consolidating Statement of Operations | ' | ||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Revenues: | |||||||||||||||||
Equipment rentals | $ | 73,445 | $ | 12,779 | $ | — | $ | 86,224 | |||||||||
New equipment sales | 61,050 | 8,497 | — | 69,547 | |||||||||||||
Used equipment sales | 21,574 | 7,771 | — | 29,345 | |||||||||||||
Parts sales | 22,399 | 3,403 | — | 25,802 | |||||||||||||
Services revenues | 11,572 | 2,076 | — | 13,648 | |||||||||||||
Other | 10,536 | 2,127 | — | 12,663 | |||||||||||||
Total revenues | 200,576 | 36,653 | — | 237,229 | |||||||||||||
Cost of revenues: | |||||||||||||||||
Rental depreciation | 27,785 | 5,213 | — | 32,998 | |||||||||||||
Rental expense | 11,938 | 2,286 | — | 14,224 | |||||||||||||
New equipment sales | 54,126 | 7,608 | — | 61,734 | |||||||||||||
Used equipment sales | 14,489 | 5,929 | — | 20,418 | |||||||||||||
Parts sales | 15,912 | 2,370 | — | 18,282 | |||||||||||||
Services revenues | 3,976 | 765 | — | 4,741 | |||||||||||||
Other | 9,854 | 2,194 | — | 12,048 | |||||||||||||
Total cost of revenues | 138,080 | 26,365 | — | 164,445 | |||||||||||||
Gross profit (loss): | |||||||||||||||||
Equipment rentals | 33,722 | 5,280 | — | 39,002 | |||||||||||||
New equipment sales | 6,924 | 889 | — | 7,813 | |||||||||||||
Used equipment sales | 7,085 | 1,842 | — | 8,927 | |||||||||||||
Parts sales | 6,487 | 1,033 | — | 7,520 | |||||||||||||
Services revenues | 7,596 | 1,311 | — | 8,907 | |||||||||||||
Other | 682 | (67 | ) | — | 615 | ||||||||||||
Gross profit | 62,496 | 10,288 | — | 72,784 | |||||||||||||
Selling, general and administrative expenses | 41,275 | 7,581 | — | 48,856 | |||||||||||||
Equity in earnings of guarantor subsidiaries | 199 | — | (199 | ) | — | ||||||||||||
Gain on sales of property and equipment, net | 513 | 150 | — | 663 | |||||||||||||
Income from operations | 21,933 | 2,857 | (199 | ) | 24,591 | ||||||||||||
Other income (expense): | |||||||||||||||||
Interest expense | (9,951 | ) | (2,699 | ) | — | (12,650 | ) | ||||||||||
Other, net | 265 | 41 | — | 306 | |||||||||||||
Total other expense, net | (9,686 | ) | (2,658 | ) | — | (12,344 | ) | ||||||||||
Income before income taxes | 12,247 | 199 | (199 | ) | 12,247 | ||||||||||||
Income tax expense | 4,811 | — | — | 4,811 | |||||||||||||
Net income | $ | 7,436 | $ | 199 | $ | (199 | ) | $ | 7,436 | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Revenues: | |||||||||||||||||
Equipment rentals | $ | 62,909 | $ | 12,461 | $ | — | $ | 75,370 | |||||||||
New equipment sales | 47,271 | 6,052 | — | 53,323 | |||||||||||||
Used equipment sales | 25,526 | 6,623 | — | 32,149 | |||||||||||||
Parts sales | 21,315 | 3,637 | — | 24,952 | |||||||||||||
Services revenues | 12,768 | 1,783 | — | 14,551 | |||||||||||||
Other | 9,938 | 2,105 | — | 12,043 | |||||||||||||
Total revenues | 179,727 | 32,661 | — | 212,388 | |||||||||||||
Cost of revenues: | |||||||||||||||||
Rental depreciation | 23,023 | 5,109 | — | 28,132 | |||||||||||||
Rental expense | 11,279 | 2,324 | — | 13,603 | |||||||||||||
New equipment sales | 42,394 | 5,345 | — | 47,739 | |||||||||||||
Used equipment sales | 17,658 | 5,090 | — | 22,748 | |||||||||||||
Parts sales | 15,667 | 2,637 | — | 18,304 | |||||||||||||
Services revenues | 5,141 | 602 | — | 5,743 | |||||||||||||
Other | 9,422 | 2,217 | — | 11,639 | |||||||||||||
Total cost of revenues | 124,584 | 23,324 | — | 147,908 | |||||||||||||
Gross profit (loss): | |||||||||||||||||
Equipment rentals | 28,607 | 5,028 | — | 33,635 | |||||||||||||
New equipment sales | 4,877 | 707 | — | 5,584 | |||||||||||||
Used equipment sales | 7,868 | 1,533 | — | 9,401 | |||||||||||||
Parts sales | 5,648 | 1,000 | — | 6,648 | |||||||||||||
Services revenues | 7,627 | 1,181 | — | 8,808 | |||||||||||||
Other | 516 | (112 | ) | — | 404 | ||||||||||||
Gross profit | 55,143 | 9,337 | — | 64,480 | |||||||||||||
Selling, general and administrative expenses | 38,479 | 7,785 | — | 46,264 | |||||||||||||
Equity in loss of guarantor subsidiaries | (816 | ) | — | 816 | — | ||||||||||||
Gain on sales of property and equipment, net | 426 | 74 | — | 500 | |||||||||||||
Income from operations | 16,274 | 1,626 | 816 | 18,716 | |||||||||||||
Other income (expense): | |||||||||||||||||
Interest expense | (9,803 | ) | (2,469 | ) | — | (12,272 | ) | ||||||||||
Other, net | 480 | 27 | — | 507 | |||||||||||||
Total other expense, net | (9,323 | ) | (2,442 | ) | — | (11,765 | ) | ||||||||||
Income (loss) before income taxes | 6,951 | (816 | ) | 816 | 6,951 | ||||||||||||
Income tax expense | 2,174 | — | — | 2,174 | |||||||||||||
Net income (loss) | $ | 4,777 | $ | (816 | ) | $ | 816 | $ | 4,777 | ||||||||
Condensed Consolidating Statement of Cash Flows | ' | ||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 7,436 | $ | 199 | $ | (199 | ) | $ | 7,436 | ||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||||||
Depreciation and amortization on property and equipment | 4,193 | 587 | — | 4,780 | |||||||||||||
Depreciation of rental equipment | 27,785 | 5,213 | — | 32,998 | |||||||||||||
Amortization of deferred financing costs | 268 | — | — | 268 | |||||||||||||
Accretion of note discount, net of premium amortization | 42 | — | — | 42 | |||||||||||||
Provision for losses on accounts receivable | 627 | 107 | — | 734 | |||||||||||||
Provision for inventory obsolescence | 63 | — | — | 63 | |||||||||||||
Provision for deferred income taxes | 3,939 | — | — | 3,939 | |||||||||||||
Stock-based compensation expense | 808 | — | — | 808 | |||||||||||||
Gain on sales of property and equipment, net | (512 | ) | (150 | ) | — | (662 | ) | ||||||||||
Gain on sales of rental equipment, net | (6,547 | ) | (1,810 | ) | — | (8,357 | ) | ||||||||||
Equity in earnings of guarantor subsidiaries | (199 | ) | — | 199 | — | ||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Receivables | (6,844 | ) | 822 | — | (6,022 | ) | |||||||||||
Inventories | (75,278 | ) | (7,236 | ) | — | (82,514 | ) | ||||||||||
Prepaid expenses and other assets | (3,967 | ) | (50 | ) | — | (4,017 | ) | ||||||||||
Accounts payable | 44,836 | (109 | ) | — | 44,727 | ||||||||||||
Manufacturer flooring plans payable | 7,295 | (44 | ) | — | 7,251 | ||||||||||||
Accrued expenses payable and other liabilities | (15,222 | ) | (135 | ) | — | (15,357 | ) | ||||||||||
Deferred compensation payable | 16 | — | — | 16 | |||||||||||||
Net cash used in operating activities | (11,261 | ) | (2,606 | ) | — | (13,867 | ) | ||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of property and equipment | (5,457 | ) | (602 | ) | — | (6,059 | ) | ||||||||||
Purchases of rental equipment | (36,595 | ) | (3,068 | ) | — | (39,663 | ) | ||||||||||
Proceeds from sales of property and equipment | 532 | 150 | — | 682 | |||||||||||||
Proceeds from sales of rental equipment | 18,151 | 6,651 | — | 24,802 | |||||||||||||
Investment in subsidiaries | 504 | — | (504 | ) | — | ||||||||||||
Net cash provided by (used in) investing activities . | (22,865 | ) | 3,131 | (504 | ) | (20,238 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||
Borrowings on senior secured credit facility | 266,183 | — | — | 266,183 | |||||||||||||
Payments on senior secured credit facility | (244,676 | ) | — | — | (244,676 | ) | |||||||||||
Dividends paid | (23 | ) | 23 | — | — | ||||||||||||
Payments on capital lease obligations | — | (44 | ) | — | (44 | ) | |||||||||||
Capital contributions | — | (504 | ) | 504 | — | ||||||||||||
Net cash provided by (used in) financing activities | 21,484 | (525 | ) | 504 | 21,463 | ||||||||||||
Net decrease in cash | (12,642 | ) | — | — | (12,642 | ) | |||||||||||
Cash, beginning of period | 17,607 | — | — | 17,607 | |||||||||||||
Cash, end of period | $ | 4,965 | $ | — | $ | — | $ | 4,965 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | 4,777 | $ | (816 | ) | $ | 816 | $ | 4,777 | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization on property and equipment | 3,435 | 500 | — | 3,935 | |||||||||||||
Depreciation on rental equipment | 23,023 | 5,109 | — | 28,132 | |||||||||||||
Amortization of deferred financing costs | 281 | — | — | 281 | |||||||||||||
Accretion of note discount, net of premium amortization | 105 | — | — | 105 | |||||||||||||
Provision for losses on accounts receivable | 569 | 198 | — | 767 | |||||||||||||
Provision for inventory obsolescence | 56 | — | — | 56 | |||||||||||||
Increase in deferred income taxes | 649 | — | — | 649 | |||||||||||||
Stock-based compensation expense | 938 | — | — | 938 | |||||||||||||
Gain on sales of property and equipment, net | (426 | ) | (74 | ) | — | (500 | ) | ||||||||||
Gain on sales of rental equipment, net | (6,991 | ) | (1,507 | ) | — | (8,498 | ) | ||||||||||
Writedown of goodwill for tax-deductible goodwill in excess of book goodwill | 219 | — | — | 219 | |||||||||||||
Equity in loss of guarantor subsidiaries | 816 | — | (816 | ) | — | ||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Receivables | 7,020 | 1,755 | — | 8,775 | |||||||||||||
Inventories | (89,230 | ) | (4,229 | ) | — | (93,459 | ) | ||||||||||
Prepaid expenses and other assets | (1,944 | ) | (57 | ) | — | (2,001 | ) | ||||||||||
Accounts payable | 57,014 | 4,392 | — | 61,406 | |||||||||||||
Manufacturer flooring plans payable | 17,198 | (344 | ) | — | 16,854 | ||||||||||||
Accrued expenses payable and other liabilities | (14,089 | ) | 449 | — | (13,640 | ) | |||||||||||
Deferred compensation payable | 17 | — | — | 17 | |||||||||||||
Net cash provided by operating activities | 3,437 | 5,376 | — | 8,813 | |||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of property and equipment | (6,033 | ) | (255 | ) | — | (6,288 | ) | ||||||||||
Purchases of rental equipment | (30,204 | ) | (3,896 | ) | — | (34,100 | ) | ||||||||||
Proceeds from sales of property and equipment | 447 | 74 | — | 521 | |||||||||||||
Proceeds from sales of rental equipment | 17,918 | 4,463 | — | 22,381 | |||||||||||||
Investment in subsidiaries | 5,721 | — | (5,721 | ) | — | ||||||||||||
Net cash provided by (used in) investing activities | (12,151 | ) | 386 | (5,721 | ) | (17,486 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||
Borrowings on senior secured credit facility | 240,088 | — | — | 240,088 | |||||||||||||
Payments on senior secured credit facility | (343,989 | ) | — | — | (343,989 | ) | |||||||||||
Proceeds from issuance of senior unsecured notes | 107,250 | — | — | 107,250 | |||||||||||||
Payments of deferred financing costs | (564 | ) | — | — | (564 | ) | |||||||||||
Payments on capital lease obligations | — | (41 | ) | — | (41 | ) | |||||||||||
Capital contributions | — | (5,721 | ) | 5,721 | — | ||||||||||||
Net cash provided by (used in) financing activities | 2,785 | (5,762 | ) | 5,721 | 2,744 | ||||||||||||
Net decrease in cash | (5,929 | ) | — | — | (5,929 | ) | |||||||||||
Cash, beginning of period | 8,894 | — | — | 8,894 | |||||||||||||
Cash, end of period | $ | 2,965 | $ | — | $ | — | $ | 2,965 | |||||||||
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Manufacturer flooring plans payable with interest computed at 5.25% (Level 3) | $56,313 | $49,062 |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 2,234 | 2,278 |
Carrying Amount [Member] | Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Manufacturer flooring plans payable with interest computed at 5.25% (Level 3) | 56,313 | 49,062 |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 2,234 | 2,278 |
Letter of credit (Level 3) | ' | ' |
Carrying Amount [Member] | Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Senior unsecured notes with interest computed at 7.0% (Level 1) | 630,000 | 630,000 |
Fair Value [Member] | Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Manufacturer flooring plans payable with interest computed at 5.25% (Level 3) | 49,347 | 42,686 |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 1,671 | 1,717 |
Letter of credit (Level 3) | 146 | 146 |
Fair Value [Member] | Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Senior unsecured notes with interest computed at 7.0% (Level 1) | $693,000 | $686,700 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements (Parenthetical) (Detail) | Mar. 31, 2014 | Dec. 31, 2013 |
Carrying Amount [Member] | Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Manufacturer flooring plans payable, interest rate | 5.25% | 5.25% |
Capital lease payable, interest rate, minimum | 5.93% | 5.93% |
Capital lease payable interest rate, maximum | 9.55% | 9.55% |
Carrying Amount [Member] | Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Senior unsecured notes, interest rate | 7.00% | 7.00% |
Fair Value [Member] | Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Manufacturer flooring plans payable, interest rate | 5.25% | 5.25% |
Capital lease payable, interest rate, minimum | 5.93% | 5.93% |
Capital lease payable interest rate, maximum | 9.55% | 9.55% |
Fair Value [Member] | Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Senior unsecured notes, interest rate | 7.00% | 7.00% |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Fair Value Disclosures [Abstract] | ' | ' |
Transfer of financial assets | $0 | $0 |
Transfer of financial liabilities | $0 | $0 |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Activity in Stockholders' Equity (Detail) (USD $) | 3 Months Ended | 3 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 |
Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Treasury Stock [Member] | Retained Earnings (Deficit) [Member] | |||
Schedule of Capitalization, Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Beginning balance, value | $94,812 | ' | $389 | $215,775 | ($58,468) | ($58,468) | ($62,884) |
Beginning balance, shares | 39,023,594 | ' | 39,023,594 | ' | ' | ' | ' |
Stock-based compensation | 808 | ' | ' | 808 | ' | ' | ' |
Issuance of common stock, value | 1 | ' | 1 | ' | ' | ' | ' |
Issuance of common stock, shares | ' | ' | 10,380 | ' | ' | ' | ' |
Net income | 7,436 | 4,777 | ' | ' | ' | ' | 7,436 |
Ending balance, value | $103,057 | ' | $390 | $216,583 | ($58,468) | ($58,468) | ($55,448) |
Ending balance, shares | 39,033,974 | ' | 39,033,974 | ' | ' | ' | ' |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Stock-Based incentive compensation plan | 3,604,046 |
Unrecognized compensation expense related to non-vested stock | $2.40 |
Expected non-vested stock recognized over a weighted-average period | '1 year 9 months 18 days |
Aggregate intrinsic value | $2.10 |
StockBased_Compensation_Schedu
Stock-Based Compensation - Schedule of Non-Vested Stock Activity (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Nonvested stock, beginning balance, Number of Shares | 187,867 |
Granted, Number of Shares | 10,380 |
Vested, Number of Shares | -10,380 |
Forfeited, Number of Shares | ' |
Nonvested stock, ending balance, Number of Shares | 187,867 |
Nonvested stock, beginning balance, Weighted Average Grant Date Fair Value | $18.21 |
Granted, Weighted Average Grant Date Fair Value | $28.91 |
Vested, Weighted Average Grant Date Fair Value | $28.91 |
Forfeited, Weighted Average Grant Date Fair Value | ' |
Nonvested stock, ending balance, Weighted Average Grant Date Fair Value | $18.21 |
StockBased_Compensation_Schedu1
Stock-Based Compensation - Schedule of Compensation Expense Related to Non-Vested Stock (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Compensation expense | $808 | $938 |
StockBased_Compensation_Schedu2
Stock-Based Compensation - Schedule of Share-Based Compensation Stock Options Activity (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Stock Options, Outstanding, Number of Shares, Beginning Balance | 51,000 |
Stock Options, Granted, Number of Shares | ' |
Stock Options, Exercised, Number of Shares | ' |
Stock Options, Canceled, forfeited or expired, Number of Shares | ' |
Stock Options, Outstanding, Number of Shares, Ending Balance | 51,000 |
Stock Options, Exercisable, Number of Shares | 51,000 |
Stock Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $17.80 |
Stock Options, Granted, Weighted Average Exercise Price | ' |
Stock Options, Exercised, Weighted Average Exercise Price | ' |
Stock Options, Canceled, forfeited or expired, Weighted Average Exercise Price | ' |
Stock Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $17.80 |
Stock Options, Exercisable, Weighted Average Exercise Price | $17.80 |
Stock Options, Granted, Weighted Average Contractual Life In Years | ' |
Stock Options, Exercised, Weighted Average Contractual Life In Years | ' |
Stock Options, Canceled, forfeited or expired, Weighted Average Contractual Life In Years | ' |
Stock Options, Outstanding, Weighted Average Contractual Life In Years | '2 years 3 months 18 days |
Stock Options, Exercisable, Weighted Average Contractual Life In Years | '2 years 3 months 18 days |
Income_per_Share_Summary_of_Co
Income per Share - Summary of Computation of Basic and Diluted Net Income Per Common Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Basic net income per share: | ' | ' |
Net income | $7,436 | $4,777 |
Weighted average number of common shares outstanding | 35,108 | 34,976 |
Net income per common share - basic | $0.21 | $0.14 |
Diluted net income per share: | ' | ' |
Net income | $7,436 | $4,777 |
Weighted average number of common shares outstanding | 35,108 | 34,976 |
Effect of dilutive securities: | ' | ' |
Weighted average number of common shares outstanding - diluted | 35,218 | 35,097 |
Net income per common share - diluted | $0.21 | $0.14 |
Employee Stock Option [Member] | ' | ' |
Effect of dilutive securities: | ' | ' |
Effect of dilutive non-vested stock | 23 | 14 |
Common shares excluded from the denominator as anti-dilutive: | ' | ' |
Common shares excluded from the denominator as anti-dilutive | ' | ' |
Non-vested restricted stock [Member] | ' | ' |
Effect of dilutive securities: | ' | ' |
Effect of dilutive non-vested stock | 87 | 107 |
Common shares excluded from the denominator as anti-dilutive: | ' | ' |
Common shares excluded from the denominator as anti-dilutive | ' | ' |
Senior_Unsecured_Notes_Reconci
Senior Unsecured Notes - Reconciliation of Senior Secured Notes to Condensed Consolidated Balance Sheet (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Feb. 04, 2013 |
Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | Senior Unsecured Notes [Member] | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Senior unsecured notes | $628,546 | $521,065 | ' | ' | ' |
Accretion of discount | ' | ' | 264 | 1,044 | ' |
Aggregate principal amount issued | ' | ' | ' | ' | 100,000 |
Amortization of note premium | -42 | -105 | -222 | -813 | ' |
Premium on notes issued | ' | ' | ' | ' | 8,500 |
Initial purchaser's discount | ' | ' | ' | ' | -1,250 |
Senior unsecured notes | $628,588 | ' | ' | ' | ' |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Customer | ||
Segment | ||
Segment Reporting [Abstract] | ' | ' |
Number of reportable segment | 5 | ' |
Sales to international customers | 1.60% | 1.80% |
Customer accounted for more than 10% of revenue | 10 | ' |
Segment_Information_Informatio
Segment Information - Information about Reportable Segments (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Segment Revenues: | ' | ' | ' |
Total revenues | $237,229 | $212,388 | ' |
Segment Gross Profit: | ' | ' | ' |
Total gross profit | 72,784 | 64,480 | ' |
Segment identified assets: | ' | ' | ' |
Total assets | 1,160,666 | ' | 1,090,340 |
Equipment rentals [Member] | ' | ' | ' |
Segment Gross Profit: | ' | ' | ' |
Total gross profit | 39,002 | 33,635 | ' |
New equipment sales [Member] | ' | ' | ' |
Segment Gross Profit: | ' | ' | ' |
Total gross profit | 7,813 | 5,584 | ' |
Used equipment sales [Member] | ' | ' | ' |
Segment Gross Profit: | ' | ' | ' |
Total gross profit | 8,927 | 9,401 | ' |
Parts sales [Member] | ' | ' | ' |
Segment Gross Profit: | ' | ' | ' |
Total gross profit | 7,520 | 6,648 | ' |
Services revenues [Member] | ' | ' | ' |
Segment Gross Profit: | ' | ' | ' |
Total gross profit | 8,907 | 8,808 | ' |
Operating Segments [Member] | ' | ' | ' |
Segment Revenues: | ' | ' | ' |
Total revenues | 224,566 | 200,345 | ' |
Segment Gross Profit: | ' | ' | ' |
Total gross profit | 72,169 | 64,076 | ' |
Segment identified assets: | ' | ' | ' |
Total assets | 873,021 | ' | 800,350 |
Operating Segments [Member] | Equipment rentals [Member] | ' | ' | ' |
Segment Revenues: | ' | ' | ' |
Total revenues | 86,224 | 75,370 | ' |
Segment Gross Profit: | ' | ' | ' |
Total gross profit | 39,002 | 33,635 | ' |
Segment identified assets: | ' | ' | ' |
Total assets | 704,237 | ' | 688,710 |
Operating Segments [Member] | New equipment sales [Member] | ' | ' | ' |
Segment Revenues: | ' | ' | ' |
Total revenues | 69,547 | 53,323 | ' |
Segment Gross Profit: | ' | ' | ' |
Total gross profit | 7,813 | 5,584 | ' |
Operating Segments [Member] | Used equipment sales [Member] | ' | ' | ' |
Segment Revenues: | ' | ' | ' |
Total revenues | 29,345 | 32,149 | ' |
Segment Gross Profit: | ' | ' | ' |
Total gross profit | 8,927 | 9,401 | ' |
Segment identified assets: | ' | ' | ' |
Total assets | 150,622 | ' | 95,392 |
Operating Segments [Member] | Parts sales [Member] | ' | ' | ' |
Segment Revenues: | ' | ' | ' |
Total revenues | 25,802 | 24,952 | ' |
Segment Gross Profit: | ' | ' | ' |
Total gross profit | 7,520 | 6,648 | ' |
Operating Segments [Member] | Services revenues [Member] | ' | ' | ' |
Segment Revenues: | ' | ' | ' |
Total revenues | 13,648 | 14,551 | ' |
Segment Gross Profit: | ' | ' | ' |
Total gross profit | 8,907 | 8,808 | ' |
Operating Segments [Member] | Parts and service [Member] | ' | ' | ' |
Segment identified assets: | ' | ' | ' |
Total assets | 18,162 | ' | 16,248 |
Non-Segmented [Member] | ' | ' | ' |
Segment Revenues: | ' | ' | ' |
Total revenues | 12,663 | 12,043 | ' |
Segment Gross Profit: | ' | ' | ' |
Total gross profit | 615 | 404 | ' |
Segment identified assets: | ' | ' | ' |
Total assets | $287,645 | ' | $289,990 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Balance Sheet (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ' | ' |
Cash | $4,965 | $17,607 | $2,965 | $8,894 |
Receivables, net | 137,258 | 131,970 | ' | ' |
Inventories, net | 168,784 | 111,640 | ' | ' |
Prepaid expenses and other assets | 10,041 | 6,024 | ' | ' |
Rental equipment, net | 704,237 | 688,710 | ' | ' |
Property and equipment, net | 99,763 | 98,503 | ' | ' |
Deferred financing costs, net | 4,421 | 4,689 | ' | ' |
Investment in guarantor subsidiaries | ' | ' | ' | ' |
Goodwill | 31,197 | 31,197 | ' | ' |
Total assets | 1,160,666 | 1,090,340 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Amount due on senior secured credit facility | 123,967 | 102,460 | ' | ' |
Accounts payable | 112,506 | 67,779 | ' | ' |
Manufacturer flooring plans payable | 56,313 | 49,062 | ' | ' |
Dividends payable | 633 | 633 | ' | ' |
Accrued expenses payable and other liabilities | 39,082 | 54,439 | ' | ' |
Senior unsecured notes | 628,588 | 628,546 | ' | 521,065 |
Capital lease payable | 2,234 | 2,278 | ' | ' |
Deferred income taxes | 92,230 | 88,291 | ' | ' |
Deferred compensation payable | 2,056 | 2,040 | ' | ' |
Total liabilities | 1,057,609 | 995,528 | ' | ' |
Stockholders' equity | 103,057 | 94,812 | ' | ' |
Total liabilities and stockholders' equity | 1,160,666 | 1,090,340 | ' | ' |
H & E Equipment Services [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Cash | 4,965 | 17,607 | 2,965 | 8,894 |
Receivables, net | 120,742 | 114,525 | ' | ' |
Inventories, net | 155,396 | 102,125 | ' | ' |
Prepaid expenses and other assets | 9,820 | 5,853 | ' | ' |
Rental equipment, net | 601,871 | 582,721 | ' | ' |
Property and equipment, net | 87,071 | 85,826 | ' | ' |
Deferred financing costs, net | 4,421 | 4,689 | ' | ' |
Investment in guarantor subsidiaries | 165,398 | 165,703 | ' | ' |
Goodwill | 1,671 | 1,671 | ' | ' |
Total assets | 1,151,355 | 1,080,720 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Amount due on senior secured credit facility | 123,967 | 102,460 | ' | ' |
Accounts payable | 105,623 | 60,787 | ' | ' |
Manufacturer flooring plans payable | 56,357 | 49,062 | ' | ' |
Dividends payable | 633 | 656 | ' | ' |
Accrued expenses payable and other liabilities | 38,844 | 54,066 | ' | ' |
Senior unsecured notes | 628,588 | 628,546 | ' | ' |
Capital lease payable | ' | ' | ' | ' |
Deferred income taxes | 92,230 | 88,291 | ' | ' |
Deferred compensation payable | 2,056 | 2,040 | ' | ' |
Total liabilities | 1,048,298 | 985,908 | ' | ' |
Stockholders' equity | 103,057 | 94,812 | ' | ' |
Total liabilities and stockholders' equity | 1,151,355 | 1,080,720 | ' | ' |
Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Cash | ' | ' | ' | ' |
Receivables, net | 16,516 | 17,445 | ' | ' |
Inventories, net | 13,388 | 9,515 | ' | ' |
Prepaid expenses and other assets | 221 | 171 | ' | ' |
Rental equipment, net | 102,366 | 105,989 | ' | ' |
Property and equipment, net | 12,692 | 12,677 | ' | ' |
Deferred financing costs, net | ' | ' | ' | ' |
Investment in guarantor subsidiaries | ' | ' | ' | ' |
Goodwill | 29,526 | 29,526 | ' | ' |
Total assets | 174,709 | 175,323 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Amount due on senior secured credit facility | ' | ' | ' | ' |
Accounts payable | 6,883 | 6,992 | ' | ' |
Manufacturer flooring plans payable | -44 | ' | ' | ' |
Dividends payable | ' | -23 | ' | ' |
Accrued expenses payable and other liabilities | 238 | 373 | ' | ' |
Senior unsecured notes | ' | ' | ' | ' |
Capital lease payable | 2,234 | 2,278 | ' | ' |
Deferred income taxes | ' | ' | ' | ' |
Deferred compensation payable | ' | ' | ' | ' |
Total liabilities | 9,311 | 9,620 | ' | ' |
Stockholders' equity | 165,398 | 165,703 | ' | ' |
Total liabilities and stockholders' equity | 174,709 | 175,323 | ' | ' |
Elimination [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Cash | ' | ' | ' | ' |
Receivables, net | ' | ' | ' | ' |
Inventories, net | ' | ' | ' | ' |
Prepaid expenses and other assets | ' | ' | ' | ' |
Rental equipment, net | ' | ' | ' | ' |
Property and equipment, net | ' | ' | ' | ' |
Deferred financing costs, net | ' | ' | ' | ' |
Investment in guarantor subsidiaries | -165,398 | -165,703 | ' | ' |
Goodwill | ' | ' | ' | ' |
Total assets | -165,398 | -165,703 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Amount due on senior secured credit facility | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | ' |
Manufacturer flooring plans payable | ' | ' | ' | ' |
Dividends payable | ' | ' | ' | ' |
Accrued expenses payable and other liabilities | ' | ' | ' | ' |
Senior unsecured notes | ' | ' | ' | ' |
Capital lease payable | ' | ' | ' | ' |
Deferred income taxes | ' | ' | ' | ' |
Deferred compensation payable | ' | ' | ' | ' |
Total liabilities | ' | ' | ' | ' |
Stockholders' equity | -165,398 | -165,703 | ' | ' |
Total liabilities and stockholders' equity | ($165,398) | ($165,703) | ' | ' |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Statement of Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Equipment rentals | $86,224 | $75,370 |
New equipment sales | 69,547 | 53,323 |
Used equipment sales | 29,345 | 32,149 |
Parts sales | 25,802 | 24,952 |
Services revenues | 13,648 | 14,551 |
Other | 12,663 | 12,043 |
Total revenues | 237,229 | 212,388 |
Cost of revenues: | ' | ' |
Rental depreciation | 32,998 | 28,132 |
Rental expense | 14,224 | 13,603 |
New equipment sales | 61,734 | 47,739 |
Used equipment sales | 20,418 | 22,748 |
Parts sales | 18,282 | 18,304 |
Services revenues | 4,741 | 5,743 |
Other | 12,048 | 11,639 |
Total cost of revenues | 164,445 | 147,908 |
Gross profit (loss): | ' | ' |
Gross profit | 72,784 | 64,480 |
Selling, general and administrative expenses | 48,856 | 46,264 |
Equity in earnings (loss) of guarantor subsidiaries | ' | ' |
Gain on sales of property and equipment, net | 663 | 500 |
Income from operations | 24,591 | 18,716 |
Other income (expense): | ' | ' |
Interest expense | -12,650 | -12,272 |
Other, net | 306 | 507 |
Total other expense, net | -12,344 | -11,765 |
Income (loss) before income taxes | 12,247 | 6,951 |
Income tax expense | 4,811 | 2,174 |
Net income (loss) | 7,436 | 4,777 |
Equipment rentals [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 39,002 | 33,635 |
New equipment sales [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 7,813 | 5,584 |
Used equipment sales [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 8,927 | 9,401 |
Parts sales [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 7,520 | 6,648 |
Services revenues [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 8,907 | 8,808 |
Other [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 615 | 404 |
H & E Equipment Services [Member] | ' | ' |
Revenues: | ' | ' |
Equipment rentals | 73,445 | 62,909 |
New equipment sales | 61,050 | 47,271 |
Used equipment sales | 21,574 | 25,526 |
Parts sales | 22,399 | 21,315 |
Services revenues | 11,572 | 12,768 |
Other | 10,536 | 9,938 |
Total revenues | 200,576 | 179,727 |
Cost of revenues: | ' | ' |
Rental depreciation | 27,785 | 23,023 |
Rental expense | 11,938 | 11,279 |
New equipment sales | 54,126 | 42,394 |
Used equipment sales | 14,489 | 17,658 |
Parts sales | 15,912 | 15,667 |
Services revenues | 3,976 | 5,141 |
Other | 9,854 | 9,422 |
Total cost of revenues | 138,080 | 124,584 |
Gross profit (loss): | ' | ' |
Gross profit | 62,496 | 55,143 |
Selling, general and administrative expenses | 41,275 | 38,479 |
Equity in earnings (loss) of guarantor subsidiaries | 199 | -816 |
Gain on sales of property and equipment, net | 513 | 426 |
Income from operations | 21,933 | 16,274 |
Other income (expense): | ' | ' |
Interest expense | -9,951 | -9,803 |
Other, net | 265 | 480 |
Total other expense, net | -9,686 | -9,323 |
Income (loss) before income taxes | 12,247 | 6,951 |
Income tax expense | 4,811 | 2,174 |
Net income (loss) | 7,436 | 4,777 |
H & E Equipment Services [Member] | Equipment rentals [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 33,722 | 28,607 |
H & E Equipment Services [Member] | New equipment sales [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 6,924 | 4,877 |
H & E Equipment Services [Member] | Used equipment sales [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 7,085 | 7,868 |
H & E Equipment Services [Member] | Parts sales [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 6,487 | 5,648 |
H & E Equipment Services [Member] | Services revenues [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 7,596 | 7,627 |
H & E Equipment Services [Member] | Other [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 682 | 516 |
Guarantor Subsidiaries [Member] | ' | ' |
Revenues: | ' | ' |
Equipment rentals | 12,779 | 12,461 |
New equipment sales | 8,497 | 6,052 |
Used equipment sales | 7,771 | 6,623 |
Parts sales | 3,403 | 3,637 |
Services revenues | 2,076 | 1,783 |
Other | 2,127 | 2,105 |
Total revenues | 36,653 | 32,661 |
Cost of revenues: | ' | ' |
Rental depreciation | 5,213 | 5,109 |
Rental expense | 2,286 | 2,324 |
New equipment sales | 7,608 | 5,345 |
Used equipment sales | 5,929 | 5,090 |
Parts sales | 2,370 | 2,637 |
Services revenues | 765 | 602 |
Other | 2,194 | 2,217 |
Total cost of revenues | 26,365 | 23,324 |
Gross profit (loss): | ' | ' |
Gross profit | 10,288 | 9,337 |
Selling, general and administrative expenses | 7,581 | 7,785 |
Equity in earnings (loss) of guarantor subsidiaries | ' | ' |
Gain on sales of property and equipment, net | 150 | 74 |
Income from operations | 2,857 | 1,626 |
Other income (expense): | ' | ' |
Interest expense | -2,699 | -2,469 |
Other, net | 41 | 27 |
Total other expense, net | -2,658 | -2,442 |
Income (loss) before income taxes | 199 | -816 |
Income tax expense | ' | ' |
Net income (loss) | 199 | -816 |
Guarantor Subsidiaries [Member] | Equipment rentals [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 5,280 | 5,028 |
Guarantor Subsidiaries [Member] | New equipment sales [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 889 | 707 |
Guarantor Subsidiaries [Member] | Used equipment sales [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 1,842 | 1,533 |
Guarantor Subsidiaries [Member] | Parts sales [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 1,033 | 1,000 |
Guarantor Subsidiaries [Member] | Services revenues [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | 1,311 | 1,181 |
Guarantor Subsidiaries [Member] | Other [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | -67 | -112 |
Elimination [Member] | ' | ' |
Revenues: | ' | ' |
Equipment rentals | ' | ' |
New equipment sales | ' | ' |
Used equipment sales | ' | ' |
Parts sales | ' | ' |
Services revenues | ' | ' |
Other | ' | ' |
Total revenues | ' | ' |
Cost of revenues: | ' | ' |
Rental depreciation | ' | ' |
Rental expense | ' | ' |
New equipment sales | ' | ' |
Used equipment sales | ' | ' |
Parts sales | ' | ' |
Services revenues | ' | ' |
Other | ' | ' |
Total cost of revenues | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | ' | ' |
Selling, general and administrative expenses | ' | ' |
Equity in earnings (loss) of guarantor subsidiaries | -199 | 816 |
Gain on sales of property and equipment, net | ' | ' |
Income from operations | -199 | 816 |
Other income (expense): | ' | ' |
Interest expense | ' | ' |
Other, net | ' | ' |
Total other expense, net | ' | ' |
Income (loss) before income taxes | -199 | 816 |
Income tax expense | ' | ' |
Net income (loss) | -199 | 816 |
Elimination [Member] | Equipment rentals [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | ' | ' |
Elimination [Member] | New equipment sales [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | ' | ' |
Elimination [Member] | Used equipment sales [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | ' | ' |
Elimination [Member] | Parts sales [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | ' | ' |
Elimination [Member] | Services revenues [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | ' | ' |
Elimination [Member] | Other [Member] | ' | ' |
Gross profit (loss): | ' | ' |
Gross profit | ' | ' |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Statement of Cash Flows (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $7,436 | $4,777 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization on property and equipment | 4,780 | 3,935 |
Depreciation of rental equipment | 32,998 | 28,132 |
Amortization of deferred financing costs | 268 | 281 |
Accretion of note discount, net of premium amortization | 42 | 105 |
Provision for losses on accounts receivable | 734 | 767 |
Provision for inventory obsolescence | 63 | 56 |
Provision for deferred income taxes | 3,939 | 649 |
Stock-based compensation expense | 808 | 938 |
Gain on sales of property and equipment, net | -663 | -500 |
Gain on sales of rental equipment, net | -8,357 | -8,498 |
Writedown of goodwill for tax-deductible goodwill in excess of book goodwill | ' | 219 |
Equity in earnings (loss) of guarantor subsidiaries | ' | ' |
Changes in operating assets and liabilities: | ' | ' |
Receivables | -6,022 | 8,775 |
Inventories | -82,514 | -93,459 |
Prepaid expenses and other assets | -4,017 | -2,001 |
Accounts payable | 44,727 | 61,406 |
Manufacturer flooring plans payable | 7,251 | 16,854 |
Accrued expenses payable and other liabilities | -15,357 | -13,640 |
Deferred compensation payable | 16 | 17 |
Net cash provided by (used in) operating activities | -13,867 | 8,813 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -6,059 | -6,288 |
Purchases of rental equipment | -39,663 | -34,100 |
Proceeds from sales of property and equipment | 682 | 521 |
Proceeds from sales of rental equipment | 24,802 | 22,381 |
Investment in subsidiaries | ' | ' |
Net cash used in investing activities | -20,238 | -17,486 |
Cash flows from financing activities: | ' | ' |
Borrowings on senior secured credit facility | 266,183 | 240,088 |
Payments on senior secured credit facility | -244,676 | -343,989 |
Proceeds from issuance of senior unsecured notes | ' | 107,250 |
Dividends paid | ' | ' |
Payments of deferred financing costs | ' | -564 |
Payments on capital lease obligations | -44 | -41 |
Capital contributions | ' | ' |
Net cash provided by financing activities | 21,463 | 2,744 |
Net decrease in cash | -12,642 | -5,929 |
Cash, beginning of period | 17,607 | 8,894 |
Cash, end of period | 4,965 | 2,965 |
H & E Equipment Services [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income (loss) | 7,436 | 4,777 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization on property and equipment | 4,193 | 3,435 |
Depreciation of rental equipment | 27,785 | 23,023 |
Amortization of deferred financing costs | 268 | 281 |
Accretion of note discount, net of premium amortization | 42 | 105 |
Provision for losses on accounts receivable | 627 | 569 |
Provision for inventory obsolescence | 63 | 56 |
Provision for deferred income taxes | 3,939 | 649 |
Stock-based compensation expense | 808 | 938 |
Gain on sales of property and equipment, net | -513 | -426 |
Gain on sales of rental equipment, net | -6,547 | -6,991 |
Writedown of goodwill for tax-deductible goodwill in excess of book goodwill | ' | 219 |
Equity in earnings (loss) of guarantor subsidiaries | -199 | 816 |
Changes in operating assets and liabilities: | ' | ' |
Receivables | -6,844 | 7,020 |
Inventories | -75,278 | -89,230 |
Prepaid expenses and other assets | -3,967 | -1,944 |
Accounts payable | 44,836 | 57,014 |
Manufacturer flooring plans payable | 7,295 | 17,198 |
Accrued expenses payable and other liabilities | -15,222 | -14,089 |
Deferred compensation payable | 16 | 17 |
Net cash provided by (used in) operating activities | -11,261 | 3,437 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -5,457 | -6,033 |
Purchases of rental equipment | -36,595 | -30,204 |
Proceeds from sales of property and equipment | 532 | 447 |
Proceeds from sales of rental equipment | 18,151 | 17,918 |
Investment in subsidiaries | 504 | 5,721 |
Net cash used in investing activities | -22,865 | -12,151 |
Cash flows from financing activities: | ' | ' |
Borrowings on senior secured credit facility | 266,183 | 240,088 |
Payments on senior secured credit facility | -244,676 | -343,989 |
Proceeds from issuance of senior unsecured notes | ' | 107,250 |
Dividends paid | -23 | ' |
Payments of deferred financing costs | ' | -564 |
Payments on capital lease obligations | ' | ' |
Capital contributions | ' | ' |
Net cash provided by financing activities | 21,484 | 2,785 |
Net decrease in cash | -12,642 | -5,929 |
Cash, beginning of period | 17,607 | 8,894 |
Cash, end of period | 4,965 | 2,965 |
Guarantor Subsidiaries [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income (loss) | 199 | -816 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization on property and equipment | 587 | 500 |
Depreciation of rental equipment | 5,213 | 5,109 |
Amortization of deferred financing costs | ' | ' |
Accretion of note discount, net of premium amortization | ' | ' |
Provision for losses on accounts receivable | 107 | 198 |
Provision for inventory obsolescence | ' | ' |
Provision for deferred income taxes | ' | ' |
Stock-based compensation expense | ' | ' |
Gain on sales of property and equipment, net | -150 | -74 |
Gain on sales of rental equipment, net | -1,810 | -1,507 |
Equity in earnings (loss) of guarantor subsidiaries | ' | ' |
Changes in operating assets and liabilities: | ' | ' |
Receivables | 822 | 1,755 |
Inventories | -7,236 | -4,229 |
Prepaid expenses and other assets | -50 | -57 |
Accounts payable | -109 | 4,392 |
Manufacturer flooring plans payable | -44 | -344 |
Accrued expenses payable and other liabilities | -135 | 449 |
Deferred compensation payable | ' | ' |
Net cash provided by (used in) operating activities | -2,606 | 5,376 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -602 | -255 |
Purchases of rental equipment | -3,068 | -3,896 |
Proceeds from sales of property and equipment | 150 | 74 |
Proceeds from sales of rental equipment | 6,651 | 4,463 |
Investment in subsidiaries | ' | ' |
Net cash used in investing activities | 3,131 | 386 |
Cash flows from financing activities: | ' | ' |
Borrowings on senior secured credit facility | ' | ' |
Payments on senior secured credit facility | ' | ' |
Dividends paid | 23 | ' |
Payments on capital lease obligations | -44 | -41 |
Capital contributions | -504 | -5,721 |
Net cash provided by financing activities | -525 | -5,762 |
Net decrease in cash | ' | ' |
Cash, beginning of period | ' | ' |
Cash, end of period | ' | ' |
Elimination [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income (loss) | -199 | 816 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization on property and equipment | ' | ' |
Depreciation of rental equipment | ' | ' |
Amortization of deferred financing costs | ' | ' |
Accretion of note discount, net of premium amortization | ' | ' |
Provision for losses on accounts receivable | ' | ' |
Provision for inventory obsolescence | ' | ' |
Provision for deferred income taxes | ' | ' |
Stock-based compensation expense | ' | ' |
Gain on sales of property and equipment, net | ' | ' |
Gain on sales of rental equipment, net | ' | ' |
Equity in earnings (loss) of guarantor subsidiaries | 199 | -816 |
Changes in operating assets and liabilities: | ' | ' |
Receivables | ' | ' |
Inventories | ' | ' |
Prepaid expenses and other assets | ' | ' |
Accounts payable | ' | ' |
Manufacturer flooring plans payable | ' | ' |
Accrued expenses payable and other liabilities | ' | ' |
Deferred compensation payable | ' | ' |
Net cash provided by (used in) operating activities | ' | ' |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | ' | ' |
Purchases of rental equipment | ' | ' |
Proceeds from sales of property and equipment | ' | ' |
Proceeds from sales of rental equipment | ' | ' |
Investment in subsidiaries | -504 | -5,721 |
Net cash used in investing activities | -504 | -5,721 |
Cash flows from financing activities: | ' | ' |
Borrowings on senior secured credit facility | ' | ' |
Payments on senior secured credit facility | ' | ' |
Dividends paid | ' | ' |
Payments on capital lease obligations | ' | ' |
Capital contributions | 504 | 5,721 |
Net cash provided by financing activities | 504 | 5,721 |
Net decrease in cash | ' | ' |
Cash, beginning of period | ' | ' |
Cash, end of period | ' | ' |