Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 24, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HEES | |
Entity Registrant Name | H&E Equipment Services, Inc. | |
Entity Central Index Key | 1339605 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 35,259,408 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash | $4,552 | $15,861 |
Receivables, net of allowance for doubtful accounts of $3,180 and $3,288, respectively | 131,884 | 164,335 |
Inventories, net of reserves for obsolescence of $668 and $647, respectively | 162,471 | 133,987 |
Prepaid expenses and other assets | 11,584 | 9,146 |
Rental equipment, net of accumulated depreciation of $369,420 and $351,841, respectively | 888,205 | 889,706 |
Property and equipment, net of accumulated depreciation and amortization of $92,809 and $88,376, respectively | 110,666 | 109,908 |
Deferred financing costs, net of accumulated amortization of $11,359 and $11,111, respectively | 5,140 | 4,664 |
Goodwill | 31,197 | 31,197 |
Total assets | 1,345,699 | 1,358,804 |
Liabilities: | ||
Amounts due on senior secured credit facility | 262,847 | 259,919 |
Accounts payable | 72,866 | 53,341 |
Manufacturer flooring plans payable | 74,294 | 93,600 |
Accrued expenses payable and other liabilities | 41,967 | 60,548 |
Senior unsecured notes (net of unaccreted discount of $1,244 and $1,286, respectively) | 628,756 | 628,714 |
Capital leases payable | 2,052 | 2,099 |
Deferred income taxes | 129,135 | 125,110 |
Deferred compensation payable | 2,123 | 2,106 |
Total liabilities | 1,214,040 | 1,225,437 |
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; 39,129,190 and 39,100,021 shares issued at March 31, 2015 and December 31, 2014, respectively, and 35,259,408 and 35,232,032 shares outstanding at March 31, 2015 and December 31, 2014, respectively | 390 | 390 |
Additional paid-in capital | 219,370 | 218,349 |
Treasury stock at cost, 3,869,782 and 3,867,989 shares of common stock held at March 31, 2015 and December 31, 2014, respectively | -59,935 | -59,935 |
Retained deficit | -28,166 | -25,437 |
Total stockholders' equity | 131,659 | 133,367 |
Total liabilities and stockholders' equity | $1,345,699 | $1,358,804 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivables | $3,180 | $3,288 |
Reserves for obsolescence inventories | 668 | 647 |
Accumulated depreciation, rental equipment | 369,420 | 351,841 |
Accumulated depreciation and amortization, property and equipment | 92,809 | 88,376 |
Accumulated amortization, deferred financing costs | 11,359 | 11,111 |
Unaccreted discount, net | $1,244 | $1,286 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 39,129,190 | 39,100,021 |
Common stock, shares outstanding | 35,259,408 | 35,232,032 |
Treasury stock, shares | 3,869,782 | 3,867,989 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Equipment rentals | $101,389 | $86,224 |
New equipment sales | 44,537 | 69,547 |
Used equipment sales | 25,070 | 29,345 |
Parts sales | 27,085 | 25,802 |
Services revenues | 14,956 | 13,648 |
Other | 14,373 | 12,663 |
Total revenues | 227,410 | 237,229 |
Cost of revenues: | ||
Rental depreciation | 39,944 | 32,998 |
Rental expense | 15,611 | 14,224 |
New equipment sales | 39,319 | 61,734 |
Used equipment sales | 16,886 | 20,418 |
Parts sales | 19,519 | 18,282 |
Services revenues | 5,277 | 4,741 |
Other | 14,514 | 12,048 |
Total cost of revenues | 151,070 | 164,445 |
Gross profit | 76,340 | 72,784 |
Selling, general and administrative expenses | 53,466 | 48,856 |
Gain on sales of property and equipment, net | 458 | 663 |
Income from operations | 23,332 | 24,591 |
Other income (expense): | ||
Interest expense | -13,445 | -12,650 |
Other, net | 354 | 306 |
Total other expense, net | -13,091 | -12,344 |
Income before provision for income taxes | 10,241 | 12,247 |
Provision for income taxes | 4,155 | 4,811 |
Net income | $6,086 | $7,436 |
Net income per common share: | ||
Basic | $0.17 | $0.21 |
Diluted | $0.17 | $0.21 |
Weighted average common shares outstanding: | ||
Basic | 35,227 | 35,108 |
Diluted | 35,286 | 35,218 |
Dividends declared per common share | $0.25 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $6,086 | $7,436 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of property and equipment | 5,624 | 4,780 |
Depreciation of rental equipment | 39,944 | 32,998 |
Amortization of deferred financing costs | 249 | 268 |
Accretion of note discount, net of premium amortization | 42 | 42 |
Provision for losses on accounts receivable | 638 | 734 |
Provision for inventory obsolescence | 29 | 63 |
Provision for deferred income taxes | 4,025 | 3,939 |
Stock-based compensation expense | 1,021 | 808 |
Gain from sales of property and equipment, net | -458 | -663 |
Gain from sales of rental equipment, net | -7,927 | -8,357 |
Changes in operating assets and liabilities: | ||
Receivables | 31,813 | -6,022 |
Inventories | -59,745 | -82,514 |
Prepaid expenses and other assets | -2,438 | -4,017 |
Accounts payable | 19,525 | 44,727 |
Manufacturer flooring plans payable | -19,306 | 7,251 |
Accrued expenses payable and other liabilities | -18,581 | -15,356 |
Deferred compensation payable | 17 | 16 |
Net cash provided by (used in) operating activities | 558 | -13,867 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -6,462 | -6,059 |
Purchases of rental equipment | -19,930 | -39,663 |
Proceeds from sales of property and equipment | 538 | 682 |
Proceeds from sales of rental equipment | 20,646 | 24,802 |
Net cash used in investing activities | -5,208 | -20,238 |
Cash flows from financing activities: | ||
Borrowings on senior secured credit facility | 264,490 | 266,183 |
Payments on senior secured credit facility | -261,562 | -244,676 |
Payments of deferred financing costs | -725 | |
Dividends paid | -8,815 | |
Payments of capital lease obligations | -47 | -44 |
Net cash provided by (used in) financing activities | -6,659 | 21,463 |
Net decrease in cash | -11,309 | -12,642 |
Cash, beginning of period | 15,861 | 17,607 |
Cash, end of period | 4,552 | 4,965 |
Noncash asset purchases: | ||
Assets transferred from new and used inventory to rental fleet | 31,232 | 25,307 |
Cash paid during the period for: | ||
Interest | 24,171 | 23,339 |
Income taxes paid, net of refunds received | ($105) | $206 |
Organization_and_Nature_of_Ope
Organization and Nature of Operations | 3 Months Ended |
Mar. 31, 2015 | |
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, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015, 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, 2014, from which the consolidated balance sheet amounts as of December 31, 2014 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 services operations. |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
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, 2014. During the three month period ended March 31, 2015, 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 (“ASU”) 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 became effective for us on January 1, 2015. The implementation of the amended guidance did not have a material impact on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In doing so, entities will need to use more judgment and make more estimates than under current guidance. These judgments and estimates may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 also requires an entity to disclose sufficient qualitative and quantitative information surrounding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification, and further permits the use of either a retrospective or cumulative effect transition method. This guidance will be effective for the Company for our 2017 fiscal year. However, on April 1, 2015, the FASB proposed a one-year deferral of the effective date, while still allowing companies to adopt the ASU on the original effective date. The one-year deferral is subject to the FASB’s due process requirement, which includes a period for public comments. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on the Company’s consolidated financial statements and have not yet determined the method by which we will adopt ASU 2014-09. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This ASU further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its consolidated financial statements. | |
In February 2015, FASB issued ASU No. 2015-02, Consolidation (Topic 810). The amendments in this update are effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. The amendments in this update simplify the codification and reduce the number of consolidation models and place more emphasis on the risk of loss when determining controlling financial interests. Early adoption is permitted, but not required. The objective of this standard is to reduce cost and complexity and alleviate uncertainty while maintaining or improving the usefulness of information provided to the users of financial statements. The adoption of this standard is not expected to impact our financial position or results of operations. | |
In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The guidance in the new standard is limited to the presentation of debt issuance costs and does not affect the recognition and measurement of debt issuance costs. ASU 2015-03 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued and will be applied on a retrospective basis. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. | |
In April 2015, the FASB also issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”). The FASB decided to add guidance to Subtopic 350-40, Intangibles – Goodwill and Other – Internal Use Software, to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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, 2015 and December 31, 2014 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, 2015 | |||||||||
Carrying | Fair | ||||||||
Amount | Value | ||||||||
Manufacturer flooring plans payable with interest computed at 5.25% (Level 3) | $ | 74,294 | $ | 65,573 | |||||
Senior unsecured notes with interest computed at 7.0% (Level 1) | 628,756 | 647,619 | |||||||
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 2,052 | 1,445 | |||||||
Letter of credit (Level 3) | — | 145 | |||||||
December 31, 2014 | |||||||||
Carrying | Fair | ||||||||
Amount | Value | ||||||||
Manufacturer flooring plans payable with interest computed at 5.00% (Level 3) | $ | 93,600 | $ | 82,021 | |||||
Senior unsecured notes with interest computed at 7.0% (Level 1) | 628,714 | 648,113 | |||||||
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 2,099 | 1,495 | |||||||
Letter of credit (Level 3) | — | 130 | |||||||
During 2015 and 2014, 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, 2015 | |||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||
Stockholders' Equity | (4) Stockholders’ Equity | ||||||||||||||||||||||||
The following table summarizes the activity in Stockholders’ Equity for the three month period ended March 31, 2015 (amounts in thousands, except share data): | |||||||||||||||||||||||||
Common Stock | Additional | Treasury | Retained | Total | |||||||||||||||||||||
Paid-in | Stock | Deficit | Stockholders’ | ||||||||||||||||||||||
Shares | Amount | Capital | Equity | ||||||||||||||||||||||
Issued | |||||||||||||||||||||||||
Balances at December 31, 2014 | 39,100,021 | $ | 390 | $ | 218,349 | $ | (59,935 | ) | $ | (25,437 | ) | $ | 133,367 | ||||||||||||
Stock-based compensation | — | — | 1,021 | — | — | 1,021 | |||||||||||||||||||
Cash dividends on common stock ($0.25 per share) | — | — | — | — | (8,815 | ) | (8,815 | ) | |||||||||||||||||
Issuance of common stock | 29,169 | — | — | — | — | — | |||||||||||||||||||
Net income | — | — | — | — | 6,086 | 6,086 | |||||||||||||||||||
Balances at March 31, 2015 | 39,129,190 | $ | 390 | $ | 219,370 | $ | (59,935 | ) | $ | (28,166 | ) | $ | 131,659 | ||||||||||||
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based 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 3,508,830 shares as of March 31, 2015. | |||||||||||||
Non-vested Stock | |||||||||||||
The following table summarizes our non-vested stock activity for the three months ended March 31, 2015: | |||||||||||||
Number of | Weighted | ||||||||||||
Shares | Average Grant | ||||||||||||
Date Fair Value | |||||||||||||
Non-vested stock at December 31, 2014 | 148,398 | $ | 27.11 | ||||||||||
Granted | 29,169 | $ | 19.2 | ||||||||||
Vested | (29,169 | ) | $ | 19.2 | |||||||||
Forfeited | (1,793 | ) | $ | 25.26 | |||||||||
Non-vested stock at March 31, 2015 | 146,605 | $ | 27.13 | ||||||||||
As of March 31, 2015, we had unrecognized compensation expense of approximately $2.6 million related to non-vested stock that we expect to be recognized over a weighted-average period of 2.0 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, 2015 and 2014 (amounts in thousands): | |||||||||||||
For the Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Compensation expense | $ | 1,021 | $ | 808 | |||||||||
Stock Options | |||||||||||||
At March 31, 2015, 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, 2015: | |||||||||||||
Number of | Weighted Average | Weighted Average | |||||||||||
Shares | Exercise Price | Contractual Life | |||||||||||
In Years | |||||||||||||
Outstanding options at December 31, 2014 | 51,000 | $ | 17.8 | ||||||||||
Granted | — | — | |||||||||||
Exercised | — | — | |||||||||||
Canceled, forfeited or expired | — | — | |||||||||||
Outstanding options at March 31, 2015 | 51,000 | $ | 17.8 | 1.2 | |||||||||
Options exercisable at March 31, 2015 | 51,000 | $ | 17.8 | 1.2 | |||||||||
The aggregate intrinsic value of our outstanding and exercisable options at March 31, 2015 was approximately $0.4 million. |
Income_per_Share
Income per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Income per Share | (6) Income per Share | ||||||||
Income per common share for the three months ended March 31, 2015 and 2014 are 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. We include all common shares granted under our incentive compensation plan which remain unvested (“restricted common shares”) and contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (“participating securities”), in the number of shares outstanding in our basic and diluted EPS calculations using the two-class method. All of our restricted common shares are currently participating securities. | |||||||||
Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings allocated to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, distributed and undistributed earnings are allocated to both common shares and restricted common shares based on the total weighted average shares outstanding during the period. The number of restricted common shares outstanding during the period was only 0.4% of total outstanding shares and, consequently, was immaterial to the basic and diluted EPS calculations. Therefore, use of the two-class method had no impact on our basic and diluted EPS calculations for the three months ended March 31, 2015. | |||||||||
The following table sets forth the computation of basic and diluted net income per common share for the three months ended March 31, 2015 and 2014 (amounts in thousands, except per share amounts): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Basic net income per share: | |||||||||
Net income | $ | 6,086 | $ | 7,436 | |||||
Weighted average number of common shares outstanding | 35,227 | 35,108 | |||||||
Net income per common share — basic | $ | 0.17 | $ | 0.21 | |||||
Diluted net income per share: | |||||||||
Net income | $ | 6,086 | $ | 7,436 | |||||
Weighted average number of common shares outstanding | 35,227 | 35,108 | |||||||
Effect of dilutive securities: | |||||||||
Effect of dilutive stock options | 19 | 23 | |||||||
Effect of dilutive non-vested stock | 40 | 87 | |||||||
Weighted average number of common shares outstanding – diluted | 35,286 | 35,218 | |||||||
Net income per common share — diluted | $ | 0.17 | $ | 0.21 | |||||
Common shares excluded from the denominator as anti-dilutive: | |||||||||
Stock options | — | — | |||||||
Non-vested restricted stock | 3 | — |
Senior_Secured_Credit_Facility
Senior Secured Credit Facility | 3 Months Ended |
Mar. 31, 2015 | |
Text Block [Abstract] | |
Senior Secured Credit Facility | (7) Senior Secured Credit Facility |
We and our subsidiaries are parties to a $602.5 million senior secured credit facility (the “Credit Facility”) with General Electric Capital Corporation as agent, and the lenders named therein (the “Lenders”). | |
On May 21, 2014, we amended, extended and restated the Credit Facility by entering into the Fourth Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”) by and among the Company, Great Northern Equipment, Inc., H&E Equipment Services (California), LLC, the other credit parties named therein, the lenders named therein, General Electric Capital Corporation, as administrative agent, Bank of America, N.A. as co-syndication agent and documentation agent, Wells Fargo Capital Finance, LLC, as co-syndication agent and Deutsche Bank Securities Inc. as joint lead arranger and joint bookrunner. | |
The Amended and Restated Credit Agreement, among other things, (i) extends the maturity date of the Credit Facility from February 29, 2017 to May 21, 2019, (ii) increases the uncommitted incremental revolving capacity from $130 million to $150 million, (iii) permits a like-kind exchange program under Section 1031 of the Internal Revenue Code of 1986, as amended, (iv) provides that the unused commitment fee margin will be either 0.50%, 0.375% or 0.25%, depending on the ratio of the average of the daily closing balances of the aggregate revolving loans, swing line loans and letters of credit outstanding during each month to the aggregate commitments for the revolving loans, swing line loans and letters of credit, (v) lowers the interest rate (a) in the case of index rate revolving loans, to the index rate plus an applicable margin of 0.75% to 1.25% depending on the leverage ratio and (b) in the case of LIBOR revolving loans, to LIBOR plus an applicable margin of 1.75% to 2.25%, depending on the leverage ratio, (vi) lowers the margin applicable to the letter of credit fee to between 1.75% and 2.25%, depending on the leverage ratio, and (vii) permits, under certain conditions, for the payment of dividends and/or stock repurchases or redemptions on the capital stock of the Company of up to $75 million per calendar year and further additionally permits the payment of the special cash dividend of $7.00 per share previously declared by the Company on August 20, 2012 to the holders of outstanding restricted stock of the Company following the declared payment date with such permission not tied to the vesting of such restricted stock (which includes the Company’s payment in June 2014 of all amounts that remained payable to the holders of the restricted stock of the Company with respect to such special dividend that was otherwise payable following the applicable vesting dates in May and July 2014 and 2015). | |
On February 5, 2015, we entered into an amendment of the Credit Facility which, among other things, increased the total amount of revolving loan commitments under the Amended and Restated Credit Agreement from $402.5 million to $602.5 million. | |
As of March 31, 2015, we were in compliance with our financial covenants under the Credit Facility. At March 31, 2015, the Company could borrow up to an additional $332.4 million and remain in compliance with the debt covenants under the Company’s Credit Facility. | |
At March 31, 2015, the interest rate on the Credit Facility was based on a 3.25% U.S. Prime Rate plus 100 basis points and LIBOR plus 200 basis points. The weighted average interest rate at March 31, 2015 was approximately 2.7%. At April 24, 2015, we had $331.4 million of available borrowings under our Credit Facility, net of $7.2 million of outstanding letters of credit. |
Senior_Unsecured_Notes
Senior Unsecured Notes | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Text Block [Abstract] | |||||
Senior Unsecured Notes | (8) Senior Unsecured Notes | ||||
The following table reconciles our Senior Unsecured Notes to our Condensed Consolidated Balance Sheets (amounts in thousands): | |||||
Balance at December 31, 2013 | $ | 628,546 | |||
Accretion of discount through December 31, 2014 | 1,055 | ||||
Amortization of note premium through December 31, 2014 | (887 | ) | |||
Balance at December 31, 2014 | $ | 628,714 | |||
Accretion of discount through March 31, 2015 | 264 | ||||
Amortization of note premium through March 31, 2015 | (222 | ) | |||
Balance at March 31, 2015 | $ | 628,756 | |||
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Information | (9) 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, | |||||||||
2015 | 2014 | ||||||||
Segment Revenues: | |||||||||
Equipment rentals | $ | 101,389 | $ | 86,224 | |||||
New equipment sales | 44,537 | 69,547 | |||||||
Used equipment sales | 25,070 | 29,345 | |||||||
Parts sales | 27,085 | 25,802 | |||||||
Services revenues | 14,956 | 13,648 | |||||||
Total segmented revenues | 213,037 | 224,566 | |||||||
Non-segmented revenues | 14,373 | 12,663 | |||||||
Total revenues | $ | 227,410 | $ | 237,229 | |||||
Segment Gross Profit: | |||||||||
Equipment rentals | $ | 45,834 | $ | 39,002 | |||||
New equipment sales | 5,218 | 7,813 | |||||||
Used equipment sales | 8,184 | 8,927 | |||||||
Parts sales | 7,566 | 7,520 | |||||||
Services revenues | 9,679 | 8,907 | |||||||
Total segmented gross profit | 76,481 | 72,169 | |||||||
Non-segmented gross profit (loss) | (141 | ) | 615 | ||||||
Total gross profit | $ | 76,340 | $ | 72,784 | |||||
Balances at | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Segment identified assets: | |||||||||
Equipment sales | $ | 141,010 | $ | 114,664 | |||||
Equipment rentals | 888,205 | 889,706 | |||||||
Parts and services | 21,461 | 19,324 | |||||||
Total segment identified assets | 1,050,676 | 1,023,694 | |||||||
Non-segment identified assets | 295,023 | 335,110 | |||||||
Total assets | $ | 1,345,699 | $ | 1,358,804 | |||||
The Company operates primarily in the United States and our sales to international customers for the three month periods ended March 31, 2015 and 2014 were approximately 0.8% and 1.6% 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, 2015 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Condensed Consolidating Financial Information of Guarantor Subsidiaries | (10) 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, 2015 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash | $ | 4,552 | $ | — | $ | — | $ | 4,552 | |||||||||
Receivables, net | 110,944 | 20,940 | — | 131,884 | |||||||||||||
Inventories, net | 145,195 | 17,276 | — | 162,471 | |||||||||||||
Prepaid expenses and other assets | 11,392 | 192 | — | 11,584 | |||||||||||||
Rental equipment, net | 744,497 | 143,708 | — | 888,205 | |||||||||||||
Property and equipment, net | 98,635 | 12,031 | — | 110,666 | |||||||||||||
Deferred financing costs, net | 5,140 | — | — | 5,140 | |||||||||||||
Investment in guarantor subsidiaries | 214,967 | — | (214,967 | ) | — | ||||||||||||
Goodwill | 1,671 | 29,526 | — | 31,197 | |||||||||||||
Total assets | $ | 1,336,993 | $ | 223,673 | $ | (214,967 | ) | $ | 1,345,699 | ||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||
Amounts due on senior secured credit facility | $ | 262,847 | $ | — | $ | — | $ | 262,847 | |||||||||
Accounts payable | 65,447 | 7,419 | — | 72,866 | |||||||||||||
Manufacturer flooring plans payable | 74,294 | — | — | 74,294 | |||||||||||||
Accrued expenses payable and other liabilities | 42,708 | (741 | ) | — | 41,967 | ||||||||||||
Dividends payable | 24 | (24 | ) | — | — | ||||||||||||
Senior unsecured notes | 628,756 | — | — | 628,756 | |||||||||||||
Capital lease payable | — | 2,052 | — | 2,052 | |||||||||||||
Deferred income taxes | 129,135 | — | — | 129,135 | |||||||||||||
Deferred compensation payable | 2,123 | — | — | 2,123 | |||||||||||||
Total liabilities | 1,205,334 | 8,706 | — | 1,214,040 | |||||||||||||
Stockholders’ equity( (de | 131,659 | 214,967 | (214,967 | ) | 131,659 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 1,336,993 | $ | 223,673 | $ | (214,967 | ) | $ | 1,345,699 | ||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash | $ | 15,861 | $ | — | $ | — | $ | 15,861 | |||||||||
Receivables, net | 137,197 | 27,138 | — | 164,335 | |||||||||||||
Inventories, net | 123,410 | 10,577 | — | 133,987 | |||||||||||||
Prepaid expenses and other assets | 9,027 | 119 | — | 9,146 | |||||||||||||
Rental equipment, net | 748,353 | 141,353 | — | 889,706 | |||||||||||||
Property and equipment, net | 98,279 | 11,629 | — | 109,908 | |||||||||||||
Deferred financing costs, net | 4,664 | — | — | 4,664 | |||||||||||||
Investment in guarantor subsidiaries | 216,540 | — | (216,540 | ) | — | ||||||||||||
Goodwill | 1,671 | 29,526 | — | 31,197 | |||||||||||||
Total assets | $ | 1,355,002 | $ | 220,342 | $ | (216,540 | ) | $ | 1,358,804 | ||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||
Amount due on senior secured credit facility | $ | 259,919 | $ | — | $ | — | $ | 259,919 | |||||||||
Accounts payable | 50,661 | 2,680 | — | 53,341 | |||||||||||||
Manufacturer flooring plans payable | 93,600 | — | — | 93,600 | |||||||||||||
Dividends payable | 23 | (23 | ) | — | — | ||||||||||||
Accrued expenses payable and other liabilities | 61,502 | (954 | ) | — | 60,548 | ||||||||||||
Senior unsecured notes | 628,714 | — | — | 628,714 | |||||||||||||
Capital leases payable | — | 2,099 | — | 2,099 | |||||||||||||
Deferred income taxes | 125,110 | — | — | 125,110 | |||||||||||||
Deferred compensation payable | 2,106 | — | — | 2,106 | |||||||||||||
Total liabilities | 1,221,635 | 3,802 | — | 1,225,437 | |||||||||||||
Stockholders’ equity | 133,367 | 216,540 | (216,540 | ) | 133,367 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 1,355,002 | $ | 220,342 | $ | (216,540 | ) | $ | 1,358,804 | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||
H&E | Guarantor | Elimination | Consolidated | ||||||||||||||
Equipment | Subsidiaries | ||||||||||||||||
Services | |||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Revenues: | |||||||||||||||||
Equipment rentals | $ | 84,912 | $ | 16,477 | $ | — | $ | 101,389 | |||||||||
New equipment sales | 37,782 | 6,755 | — | 44,537 | |||||||||||||
Used equipment sales | 20,040 | 5,030 | — | 25,070 | |||||||||||||
Parts sales | 23,783 | 3,302 | — | 27,085 | |||||||||||||
Services revenues | 12,855 | 2,101 | — | 14,956 | |||||||||||||
Other | 11,753 | 2,620 | — | 14,373 | |||||||||||||
Total revenues | 191,125 | 36,285 | — | 227,410 | |||||||||||||
Cost of revenues: | |||||||||||||||||
Rental depreciation | 33,500 | 6,444 | — | 39,944 | |||||||||||||
Rental expense | 12,860 | 2,751 | — | 15,611 | |||||||||||||
New equipment sales | 33,318 | 6,001 | — | 39,319 | |||||||||||||
Used equipment sales | 13,782 | 3,104 | — | 16,886 | |||||||||||||
Parts sales | 17,191 | 2,328 | — | 19,519 | |||||||||||||
Services revenues | 4,576 | 701 | — | 5,277 | |||||||||||||
Other | 11,706 | 2,808 | — | 14,514 | |||||||||||||
Total cost of revenues | 126,933 | 24,137 | — | 151,070 | |||||||||||||
Gross profit (loss): | |||||||||||||||||
Equipment rentals | 38,552 | 7,282 | — | 45,834 | |||||||||||||
New equipment sales | 4,464 | 754 | — | 5,218 | |||||||||||||
Used equipment sales | 6,258 | 1,926 | — | 8,184 | |||||||||||||
Parts sales | 6,592 | 974 | — | 7,566 | |||||||||||||
Services revenues | 8,279 | 1,400 | — | 9,679 | |||||||||||||
Other | 47 | (188 | ) | — | (141 | ) | |||||||||||
Gross profit | 64,192 | 12,148 | — | 76,340 | |||||||||||||
Selling, general and administrative expenses | 45,806 | 7,660 | — | 53,466 | |||||||||||||
Equity in earnings of guarantor subsidiaries | 1,377 | — | (1,377 | ) | — | ||||||||||||
Gain on sales of property and equipment, net | 214 | 244 | — | 458 | |||||||||||||
Income from operations | 19,977 | 4,732 | (1,377 | ) | 23,332 | ||||||||||||
Other income (expense): | |||||||||||||||||
Interest expense | (10,039 | ) | (3,406 | ) | — | (13,445 | ) | ||||||||||
Other, net | 303 | 51 | — | 354 | |||||||||||||
Total other expense, net | (9,736 | ) | (3,355 | ) | — | (13,091 | ) | ||||||||||
Income before income taxes | 10,241 | 1,377 | (1,377 | ) | 10,241 | ||||||||||||
Income tax expense | 4,155 | — | — | 4,155 | |||||||||||||
Net income | $ | 6,086 | $ | 1,377 | $ | (1,377 | ) | $ | 6,086 | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
H&E | Guarantor | Elimination | Consolidated | ||||||||||||||
Equipment | Subsidiaries | ||||||||||||||||
Services | |||||||||||||||||
(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 CASH FLOWS | |||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 6,086 | $ | 1,377 | $ | (1,377 | ) | $ | 6,086 | ||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||||
Depreciation and amortization on property and equipment | 4,921 | 703 | — | 5,624 | |||||||||||||
Depreciation of rental equipment | 33,500 | 6,444 | — | 39,944 | |||||||||||||
Amortization of deferred financing costs | 249 | — | — | 249 | |||||||||||||
Accretion of note discount, net of premium amortization | 42 | — | — | 42 | |||||||||||||
Provision for losses on accounts receivable | 587 | 51 | — | 638 | |||||||||||||
Provision for inventory obsolescence | 29 | — | — | 29 | |||||||||||||
Provision for deferred income taxes | 4,025 | — | — | 4,025 | |||||||||||||
Stock-based compensation expense | 1,021 | — | — | 1,021 | |||||||||||||
Gain on sales of property and equipment, net | (214 | ) | (244 | ) | — | (458 | ) | ||||||||||
Gain on sales of rental equipment, net | (6,011 | ) | (1,916 | ) | — | (7,927 | ) | ||||||||||
Equity in earnings of guarantor subsidiaries | (1,377 | ) | — | 1,377 | — | ||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Receivables | 25,666 | 6,147 | — | 31,813 | |||||||||||||
Inventories | (50,191 | ) | (9,554 | ) | — | (59,745 | ) | ||||||||||
Prepaid expenses and other assets | (2,365 | ) | (73 | ) | — | (2,438 | ) | ||||||||||
Accounts payable | 14,786 | 4,739 | — | 19,525 | |||||||||||||
Manufacturer flooring plans payable | (19,306 | ) | — | — | (19,306 | ) | |||||||||||
Accrued expenses payable and other liabilities | (18,794 | ) | 213 | — | (18,581 | ) | |||||||||||
Deferred compensation payable | 17 | — | — | 17 | |||||||||||||
Net cash provided by (used in) operating activities | (7,329 | ) | 7,887 | — | 558 | ||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of property and equipment | (5,357 | ) | (1,105 | ) | — | (6,462 | ) | ||||||||||
Purchases of rental equipment | (11,027 | ) | (8,903 | ) | — | (19,930 | ) | ||||||||||
Proceeds from sales of property and equipment | 294 | 244 | — | 538 | |||||||||||||
Proceeds from sales of rental equipment | 15,771 | 4,875 | — | 20,646 | |||||||||||||
Investment in subsidiaries | 2,950 | — | (2,950 | ) | — | ||||||||||||
Net cash provided by (used in) investing activities . | 2,631 | (4,889 | ) | (2,950 | ) | (5,208 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||
Borrowings on senior secured credit facility | 264,490 | — | — | 264,490 | |||||||||||||
Payments on senior secured credit facility | (261,562 | ) | — | — | (261,562 | ) | |||||||||||
Dividends paid | (8,814 | ) | (1 | ) | — | (8,815 | ) | ||||||||||
Payments of deferred financing costs | (725 | ) | — | — | (725 | ) | |||||||||||
Payments on capital lease obligations | — | (47 | ) | — | (47 | ) | |||||||||||
Capital contributions | — | (2,950 | ) | 2,950 | — | ||||||||||||
Net cash used in financing activities | (6,611 | ) | (2,998 | ) | 2,950 | (6,659 | ) | ||||||||||
Net decrease in cash | (11,309 | ) | — | — | (11,309 | ) | |||||||||||
Cash, beginning of period | 15,861 | — | — | 15,861 | |||||||||||||
Cash, end of period | $ | 4,552 | $ | — | $ | — | $ | 4,552 | |||||||||
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 | |||||||||
Organization_and_Nature_of_Ope1
Organization and Nature of Operations (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015, 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, 2014, from which the consolidated balance sheet amounts as of December 31, 2014 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. | |
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 (“ASU”) 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 became effective for us on January 1, 2015. The implementation of the amended guidance did not have a material impact on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In doing so, entities will need to use more judgment and make more estimates than under current guidance. These judgments and estimates may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 also requires an entity to disclose sufficient qualitative and quantitative information surrounding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification, and further permits the use of either a retrospective or cumulative effect transition method. This guidance will be effective for the Company for our 2017 fiscal year. However, on April 1, 2015, the FASB proposed a one-year deferral of the effective date, while still allowing companies to adopt the ASU on the original effective date. The one-year deferral is subject to the FASB’s due process requirement, which includes a period for public comments. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on the Company’s consolidated financial statements and have not yet determined the method by which we will adopt ASU 2014-09. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This ASU further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its consolidated financial statements. | |
In February 2015, FASB issued ASU No. 2015-02, Consolidation (Topic 810). The amendments in this update are effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. The amendments in this update simplify the codification and reduce the number of consolidation models and place more emphasis on the risk of loss when determining controlling financial interests. Early adoption is permitted, but not required. The objective of this standard is to reduce cost and complexity and alleviate uncertainty while maintaining or improving the usefulness of information provided to the users of financial statements. The adoption of this standard is not expected to impact our financial position or results of operations. | |
In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The guidance in the new standard is limited to the presentation of debt issuance costs and does not affect the recognition and measurement of debt issuance costs. ASU 2015-03 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued and will be applied on a retrospective basis. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. | |
In April 2015, the FASB also issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”). The FASB decided to add guidance to Subtopic 350-40, Intangibles – Goodwill and Other – Internal Use Software, to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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, 2015 and December 31, 2014 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, 2015 | |||||||||
Carrying | Fair | ||||||||
Amount | Value | ||||||||
Manufacturer flooring plans payable with interest computed at 5.25% (Level 3) | $ | 74,294 | $ | 65,573 | |||||
Senior unsecured notes with interest computed at 7.0% (Level 1) | 628,756 | 647,619 | |||||||
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 2,052 | 1,445 | |||||||
Letter of credit (Level 3) | — | 145 | |||||||
December 31, 2014 | |||||||||
Carrying | Fair | ||||||||
Amount | Value | ||||||||
Manufacturer flooring plans payable with interest computed at 5.00% (Level 3) | $ | 93,600 | $ | 82,021 | |||||
Senior unsecured notes with interest computed at 7.0% (Level 1) | 628,714 | 648,113 | |||||||
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 2,099 | 1,495 | |||||||
Letter of credit (Level 3) | — | 130 |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
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, 2015 (amounts in thousands, except share data): | ||||||||||||||||||||||||
Common Stock | Additional | Treasury | Retained | Total | |||||||||||||||||||||
Paid-in | Stock | Deficit | Stockholders’ | ||||||||||||||||||||||
Shares | Amount | Capital | Equity | ||||||||||||||||||||||
Issued | |||||||||||||||||||||||||
Balances at December 31, 2014 | 39,100,021 | $ | 390 | $ | 218,349 | $ | (59,935 | ) | $ | (25,437 | ) | $ | 133,367 | ||||||||||||
Stock-based compensation | — | — | 1,021 | — | — | 1,021 | |||||||||||||||||||
Cash dividends on common stock ($0.25 per share) | — | — | — | — | (8,815 | ) | (8,815 | ) | |||||||||||||||||
Issuance of common stock | 29,169 | — | — | — | — | — | |||||||||||||||||||
Net income | — | — | — | — | 6,086 | 6,086 | |||||||||||||||||||
Balances at March 31, 2015 | 39,129,190 | $ | 390 | $ | 219,370 | $ | (59,935 | ) | $ | (28,166 | ) | $ | 131,659 | ||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of Non-Vested Stock Activity | The following table summarizes our non-vested stock activity for the three months ended March 31, 2015: | ||||||||||||
Number of | Weighted | ||||||||||||
Shares | Average Grant | ||||||||||||
Date Fair Value | |||||||||||||
Non-vested stock at December 31, 2014 | 148,398 | $ | 27.11 | ||||||||||
Granted | 29,169 | $ | 19.2 | ||||||||||
Vested | (29,169 | ) | $ | 19.2 | |||||||||
Forfeited | (1,793 | ) | $ | 25.26 | |||||||||
Non-vested stock at March 31, 2015 | 146,605 | $ | 27.13 | ||||||||||
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, 2015 and 2014 (amounts in thousands): | ||||||||||||
For the Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Compensation expense | $ | 1,021 | $ | 808 | |||||||||
Schedule of Share Based Compensation Stock Options Activity | The following table represents stock option activity for the three months ended March 31, 2015: | ||||||||||||
Number of | Weighted Average | Weighted Average | |||||||||||
Shares | Exercise Price | Contractual Life | |||||||||||
In Years | |||||||||||||
Outstanding options at December 31, 2014 | 51,000 | $ | 17.8 | ||||||||||
Granted | — | — | |||||||||||
Exercised | — | — | |||||||||||
Canceled, forfeited or expired | — | — | |||||||||||
Outstanding options at March 31, 2015 | 51,000 | $ | 17.8 | 1.2 | |||||||||
Options exercisable at March 31, 2015 | 51,000 | $ | 17.8 | 1.2 | |||||||||
Income_per_Share_Tables
Income per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Summary of 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 months ended March 31, 2015 and 2014 (amounts in thousands, except per share amounts): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Basic net income per share: | |||||||||
Net income | $ | 6,086 | $ | 7,436 | |||||
Weighted average number of common shares outstanding | 35,227 | 35,108 | |||||||
Net income per common share — basic | $ | 0.17 | $ | 0.21 | |||||
Diluted net income per share: | |||||||||
Net income | $ | 6,086 | $ | 7,436 | |||||
Weighted average number of common shares outstanding | 35,227 | 35,108 | |||||||
Effect of dilutive securities: | |||||||||
Effect of dilutive stock options | 19 | 23 | |||||||
Effect of dilutive non-vested stock | 40 | 87 | |||||||
Weighted average number of common shares outstanding – diluted | 35,286 | 35,218 | |||||||
Net income per common share — diluted | $ | 0.17 | $ | 0.21 | |||||
Common shares excluded from the denominator as anti-dilutive: | |||||||||
Stock options | — | — | |||||||
Non-vested restricted stock | 3 | — |
Senior_Unsecured_Notes_Tables
Senior Unsecured Notes (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Text Block [Abstract] | |||||
Reconciliation of Senior Unsecured Notes to Condensed Consolidated Balance Sheets | The following table reconciles our Senior Unsecured Notes to our Condensed Consolidated Balance Sheets (amounts in thousands): | ||||
Balance at December 31, 2013 | $ | 628,546 | |||
Accretion of discount through December 31, 2014 | 1,055 | ||||
Amortization of note premium through December 31, 2014 | (887 | ) | |||
Balance at December 31, 2014 | $ | 628,714 | |||
Accretion of discount through March 31, 2015 | 264 | ||||
Amortization of note premium through March 31, 2015 | (222 | ) | |||
Balance at March 31, 2015 | $ | 628,756 | |||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Information about Reportable Segments | The following table presents information about our reportable segments (amounts in thousands): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Segment Revenues: | |||||||||
Equipment rentals | $ | 101,389 | $ | 86,224 | |||||
New equipment sales | 44,537 | 69,547 | |||||||
Used equipment sales | 25,070 | 29,345 | |||||||
Parts sales | 27,085 | 25,802 | |||||||
Services revenues | 14,956 | 13,648 | |||||||
Total segmented revenues | 213,037 | 224,566 | |||||||
Non-segmented revenues | 14,373 | 12,663 | |||||||
Total revenues | $ | 227,410 | $ | 237,229 | |||||
Segment Gross Profit: | |||||||||
Equipment rentals | $ | 45,834 | $ | 39,002 | |||||
New equipment sales | 5,218 | 7,813 | |||||||
Used equipment sales | 8,184 | 8,927 | |||||||
Parts sales | 7,566 | 7,520 | |||||||
Services revenues | 9,679 | 8,907 | |||||||
Total segmented gross profit | 76,481 | 72,169 | |||||||
Non-segmented gross profit (loss) | (141 | ) | 615 | ||||||
Total gross profit | $ | 76,340 | $ | 72,784 | |||||
Balances at | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Segment identified assets: | |||||||||
Equipment sales | $ | 141,010 | $ | 114,664 | |||||
Equipment rentals | 888,205 | 889,706 | |||||||
Parts and services | 21,461 | 19,324 | |||||||
Total segment identified assets | 1,050,676 | 1,023,694 | |||||||
Non-segment identified assets | 295,023 | 335,110 | |||||||
Total assets | $ | 1,345,699 | $ | 1,358,804 | |||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information of Guarantor Subsidiaries (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash | $ | 4,552 | $ | — | $ | — | $ | 4,552 | |||||||||
Receivables, net | 110,944 | 20,940 | — | 131,884 | |||||||||||||
Inventories, net | 145,195 | 17,276 | — | 162,471 | |||||||||||||
Prepaid expenses and other assets | 11,392 | 192 | — | 11,584 | |||||||||||||
Rental equipment, net | 744,497 | 143,708 | — | 888,205 | |||||||||||||
Property and equipment, net | 98,635 | 12,031 | — | 110,666 | |||||||||||||
Deferred financing costs, net | 5,140 | — | — | 5,140 | |||||||||||||
Investment in guarantor subsidiaries | 214,967 | — | (214,967 | ) | — | ||||||||||||
Goodwill | 1,671 | 29,526 | — | 31,197 | |||||||||||||
Total assets | $ | 1,336,993 | $ | 223,673 | $ | (214,967 | ) | $ | 1,345,699 | ||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||
Amounts due on senior secured credit facility | $ | 262,847 | $ | — | $ | — | $ | 262,847 | |||||||||
Accounts payable | 65,447 | 7,419 | — | 72,866 | |||||||||||||
Manufacturer flooring plans payable | 74,294 | — | — | 74,294 | |||||||||||||
Accrued expenses payable and other liabilities | 42,708 | (741 | ) | — | 41,967 | ||||||||||||
Dividends payable | 24 | (24 | ) | — | — | ||||||||||||
Senior unsecured notes | 628,756 | — | — | 628,756 | |||||||||||||
Capital lease payable | — | 2,052 | — | 2,052 | |||||||||||||
Deferred income taxes | 129,135 | — | — | 129,135 | |||||||||||||
Deferred compensation payable | 2,123 | — | — | 2,123 | |||||||||||||
Total liabilities | 1,205,334 | 8,706 | — | 1,214,040 | |||||||||||||
Stockholders’ equity( (de | 131,659 | 214,967 | (214,967 | ) | 131,659 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 1,336,993 | $ | 223,673 | $ | (214,967 | ) | $ | 1,345,699 | ||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash | $ | 15,861 | $ | — | $ | — | $ | 15,861 | |||||||||
Receivables, net | 137,197 | 27,138 | — | 164,335 | |||||||||||||
Inventories, net | 123,410 | 10,577 | — | 133,987 | |||||||||||||
Prepaid expenses and other assets | 9,027 | 119 | — | 9,146 | |||||||||||||
Rental equipment, net | 748,353 | 141,353 | — | 889,706 | |||||||||||||
Property and equipment, net | 98,279 | 11,629 | — | 109,908 | |||||||||||||
Deferred financing costs, net | 4,664 | — | — | 4,664 | |||||||||||||
Investment in guarantor subsidiaries | 216,540 | — | (216,540 | ) | — | ||||||||||||
Goodwill | 1,671 | 29,526 | — | 31,197 | |||||||||||||
Total assets | $ | 1,355,002 | $ | 220,342 | $ | (216,540 | ) | $ | 1,358,804 | ||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||
Amount due on senior secured credit facility | $ | 259,919 | $ | — | $ | — | $ | 259,919 | |||||||||
Accounts payable | 50,661 | 2,680 | — | 53,341 | |||||||||||||
Manufacturer flooring plans payable | 93,600 | — | — | 93,600 | |||||||||||||
Dividends payable | 23 | (23 | ) | — | — | ||||||||||||
Accrued expenses payable and other liabilities | 61,502 | (954 | ) | — | 60,548 | ||||||||||||
Senior unsecured notes | 628,714 | — | — | 628,714 | |||||||||||||
Capital leases payable | — | 2,099 | — | 2,099 | |||||||||||||
Deferred income taxes | 125,110 | — | — | 125,110 | |||||||||||||
Deferred compensation payable | 2,106 | — | — | 2,106 | |||||||||||||
Total liabilities | 1,221,635 | 3,802 | — | 1,225,437 | |||||||||||||
Stockholders’ equity | 133,367 | 216,540 | (216,540 | ) | 133,367 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 1,355,002 | $ | 220,342 | $ | (216,540 | ) | $ | 1,358,804 | ||||||||
Condensed Consolidating Statement of Income | CONDENSED CONSOLIDATING STATEMENT OF INCOME | ||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||
H&E | Guarantor | Elimination | Consolidated | ||||||||||||||
Equipment | Subsidiaries | ||||||||||||||||
Services | |||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Revenues: | |||||||||||||||||
Equipment rentals | $ | 84,912 | $ | 16,477 | $ | — | $ | 101,389 | |||||||||
New equipment sales | 37,782 | 6,755 | — | 44,537 | |||||||||||||
Used equipment sales | 20,040 | 5,030 | — | 25,070 | |||||||||||||
Parts sales | 23,783 | 3,302 | — | 27,085 | |||||||||||||
Services revenues | 12,855 | 2,101 | — | 14,956 | |||||||||||||
Other | 11,753 | 2,620 | — | 14,373 | |||||||||||||
Total revenues | 191,125 | 36,285 | — | 227,410 | |||||||||||||
Cost of revenues: | |||||||||||||||||
Rental depreciation | 33,500 | 6,444 | — | 39,944 | |||||||||||||
Rental expense | 12,860 | 2,751 | — | 15,611 | |||||||||||||
New equipment sales | 33,318 | 6,001 | — | 39,319 | |||||||||||||
Used equipment sales | 13,782 | 3,104 | — | 16,886 | |||||||||||||
Parts sales | 17,191 | 2,328 | — | 19,519 | |||||||||||||
Services revenues | 4,576 | 701 | — | 5,277 | |||||||||||||
Other | 11,706 | 2,808 | — | 14,514 | |||||||||||||
Total cost of revenues | 126,933 | 24,137 | — | 151,070 | |||||||||||||
Gross profit (loss): | |||||||||||||||||
Equipment rentals | 38,552 | 7,282 | — | 45,834 | |||||||||||||
New equipment sales | 4,464 | 754 | — | 5,218 | |||||||||||||
Used equipment sales | 6,258 | 1,926 | — | 8,184 | |||||||||||||
Parts sales | 6,592 | 974 | — | 7,566 | |||||||||||||
Services revenues | 8,279 | 1,400 | — | 9,679 | |||||||||||||
Other | 47 | (188 | ) | — | (141 | ) | |||||||||||
Gross profit | 64,192 | 12,148 | — | 76,340 | |||||||||||||
Selling, general and administrative expenses | 45,806 | 7,660 | — | 53,466 | |||||||||||||
Equity in earnings of guarantor subsidiaries | 1,377 | — | (1,377 | ) | — | ||||||||||||
Gain on sales of property and equipment, net | 214 | 244 | — | 458 | |||||||||||||
Income from operations | 19,977 | 4,732 | (1,377 | ) | 23,332 | ||||||||||||
Other income (expense): | |||||||||||||||||
Interest expense | (10,039 | ) | (3,406 | ) | — | (13,445 | ) | ||||||||||
Other, net | 303 | 51 | — | 354 | |||||||||||||
Total other expense, net | (9,736 | ) | (3,355 | ) | — | (13,091 | ) | ||||||||||
Income before income taxes | 10,241 | 1,377 | (1,377 | ) | 10,241 | ||||||||||||
Income tax expense | 4,155 | — | — | 4,155 | |||||||||||||
Net income | $ | 6,086 | $ | 1,377 | $ | (1,377 | ) | $ | 6,086 | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
H&E | Guarantor | Elimination | Consolidated | ||||||||||||||
Equipment | Subsidiaries | ||||||||||||||||
Services | |||||||||||||||||
(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 Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||
H&E Equipment | Guarantor | Elimination | Consolidated | ||||||||||||||
Services | Subsidiaries | ||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 6,086 | $ | 1,377 | $ | (1,377 | ) | $ | 6,086 | ||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||||
Depreciation and amortization on property and equipment | 4,921 | 703 | — | 5,624 | |||||||||||||
Depreciation of rental equipment | 33,500 | 6,444 | — | 39,944 | |||||||||||||
Amortization of deferred financing costs | 249 | — | — | 249 | |||||||||||||
Accretion of note discount, net of premium amortization | 42 | — | — | 42 | |||||||||||||
Provision for losses on accounts receivable | 587 | 51 | — | 638 | |||||||||||||
Provision for inventory obsolescence | 29 | — | — | 29 | |||||||||||||
Provision for deferred income taxes | 4,025 | — | — | 4,025 | |||||||||||||
Stock-based compensation expense | 1,021 | — | — | 1,021 | |||||||||||||
Gain on sales of property and equipment, net | (214 | ) | (244 | ) | — | (458 | ) | ||||||||||
Gain on sales of rental equipment, net | (6,011 | ) | (1,916 | ) | — | (7,927 | ) | ||||||||||
Equity in earnings of guarantor subsidiaries | (1,377 | ) | — | 1,377 | — | ||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Receivables | 25,666 | 6,147 | — | 31,813 | |||||||||||||
Inventories | (50,191 | ) | (9,554 | ) | — | (59,745 | ) | ||||||||||
Prepaid expenses and other assets | (2,365 | ) | (73 | ) | — | (2,438 | ) | ||||||||||
Accounts payable | 14,786 | 4,739 | — | 19,525 | |||||||||||||
Manufacturer flooring plans payable | (19,306 | ) | — | — | (19,306 | ) | |||||||||||
Accrued expenses payable and other liabilities | (18,794 | ) | 213 | — | (18,581 | ) | |||||||||||
Deferred compensation payable | 17 | — | — | 17 | |||||||||||||
Net cash provided by (used in) operating activities | (7,329 | ) | 7,887 | — | 558 | ||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of property and equipment | (5,357 | ) | (1,105 | ) | — | (6,462 | ) | ||||||||||
Purchases of rental equipment | (11,027 | ) | (8,903 | ) | — | (19,930 | ) | ||||||||||
Proceeds from sales of property and equipment | 294 | 244 | — | 538 | |||||||||||||
Proceeds from sales of rental equipment | 15,771 | 4,875 | — | 20,646 | |||||||||||||
Investment in subsidiaries | 2,950 | — | (2,950 | ) | — | ||||||||||||
Net cash provided by (used in) investing activities . | 2,631 | (4,889 | ) | (2,950 | ) | (5,208 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||
Borrowings on senior secured credit facility | 264,490 | — | — | 264,490 | |||||||||||||
Payments on senior secured credit facility | (261,562 | ) | — | — | (261,562 | ) | |||||||||||
Dividends paid | (8,814 | ) | (1 | ) | — | (8,815 | ) | ||||||||||
Payments of deferred financing costs | (725 | ) | — | — | (725 | ) | |||||||||||
Payments on capital lease obligations | — | (47 | ) | — | (47 | ) | |||||||||||
Capital contributions | — | (2,950 | ) | 2,950 | — | ||||||||||||
Net cash used in financing activities | (6,611 | ) | (2,998 | ) | 2,950 | (6,659 | ) | ||||||||||
Net decrease in cash | (11,309 | ) | — | — | (11,309 | ) | |||||||||||
Cash, beginning of period | 15,861 | — | — | 15,861 | |||||||||||||
Cash, end of period | $ | 4,552 | $ | — | $ | — | $ | 4,552 | |||||||||
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 | |||||||||
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements (Detail) (USD $) | Mar. 31, 2015 | Dec. 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% for 2015 and 5.00% for 2014 (Level 3) | $74,294 | $93,600 | |
Senior unsecured notes with interest computed at 7.0% (Level 1) | 628,756 | 628,714 | 628,546 |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 2,052 | 2,099 | |
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% for 2015 and 5.00% for 2014 (Level 3) | 74,294 | 93,600 | |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 2,052 | 2,099 | |
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) | 628,756 | 628,714 | |
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% for 2015 and 5.00% for 2014 (Level 3) | 65,573 | 82,021 | |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 1,445 | 1,495 | |
Letter of credit (Level 3) | 145 | 130 | |
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) | $647,619 | $648,113 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements (Parenthetical) (Detail) | Mar. 31, 2015 | Dec. 31, 2014 |
Carrying Amount [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Manufacturer flooring plans payable, interest rate | 5.25% | 5.00% |
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% | 5.00% |
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 | |
Mar. 31, 2015 | Mar. 31, 2014 | |
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 | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule of Capitalization, Equity [Line Items] | ||
Beginning balance, value | $133,367 | |
Beginning balance, shares | 39,100,021 | |
Stock-based compensation | 1,021 | |
Cash dividends on common stock | -8,815 | |
Issuance of common stock, value | 0 | |
Net income | 6,086 | 7,436 |
Ending balance, value | 131,659 | |
Ending balance, shares | 39,129,190 | |
Common Stock [Member] | ||
Schedule of Capitalization, Equity [Line Items] | ||
Beginning balance, value | 390 | |
Beginning balance, shares | 39,100,021 | |
Issuance of common stock, value | 0 | |
Issuance of common stock, shares | 29,169 | |
Ending balance, value | 390 | |
Ending balance, shares | 39,129,190 | |
Additional Paid-in Capital [Member] | ||
Schedule of Capitalization, Equity [Line Items] | ||
Beginning balance, value | 218,349 | |
Stock-based compensation | 1,021 | |
Issuance of common stock, value | 0 | |
Ending balance, value | 219,370 | |
Treasury Stock [Member] | ||
Schedule of Capitalization, Equity [Line Items] | ||
Beginning balance, value | -59,935 | |
Issuance of common stock, value | 0 | |
Ending balance, value | -59,935 | |
Retained Deficit [Member] | ||
Schedule of Capitalization, Equity [Line Items] | ||
Beginning balance, value | -25,437 | |
Cash dividends on common stock | -8,815 | |
Issuance of common stock, value | 0 | |
Net income | 6,086 | |
Ending balance, value | ($28,166) |
Stockholders_Equity_Summary_of1
Stockholders' Equity - Summary of Activity in Stockholders' Equity (Parenthetical) (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Schedule of Capitalization, Equity [Line Items] | |
Dividend per share paid | $0.25 |
Retained Deficit [Member] | |
Schedule of Capitalization, Equity [Line Items] | |
Dividend per share paid | $0.25 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based incentive compensation plan | 3,508,830 |
Unrecognized compensation expense related to non-vested stock | $2.60 |
Expected non-vested stock recognized over a weighted-average period | 2 years |
Aggregate intrinsic value | $0.40 |
StockBased_Compensation_Schedu
Stock-Based Compensation - Schedule of Non-Vested Stock Activity (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Nonvested stock, beginning balance, Number of Shares | 148,398 |
Granted, Number of Shares | 29,169 |
Vested, Number of Shares | -29,169 |
Forfeited, Number of Shares | -1,793 |
Nonvested stock, ending balance, Number of Shares | 146,605 |
Nonvested stock, beginning balance, Weighted Average Grant Date Fair Value | $27.11 |
Granted, Weighted Average Grant Date Fair Value | $19.20 |
Vested, Weighted Average Grant Date Fair Value | $19.20 |
Forfeited, Weighted Average Grant Date Fair Value | $25.26 |
Nonvested stock, ending balance, Weighted Average Grant Date Fair Value | $27.13 |
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, 2015 | Mar. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Compensation expense | $1,021 | $808 |
StockBased_Compensation_Schedu2
Stock-Based Compensation - Schedule of Share Based Compensation Stock Options Activity (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options, Outstanding, Number of Shares, Beginning Balance | 51,000 |
Stock Options, Granted, Number of Shares | 0 |
Stock Options, Exercised, Number of Shares | 0 |
Stock Options, Canceled, forfeited or expired, Number of Shares | 0 |
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 | $0 |
Stock Options, Exercised, Weighted Average Exercise Price | $0 |
Stock Options, Canceled, forfeited or expired, Weighted Average Exercise Price | $0 |
Stock Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $17.80 |
Stock Options, Exercisable, Weighted Average Exercise Price | $17.80 |
Stock Options, Outstanding, Weighted Average Contractual Life In Years | 1 year 2 months 12 days |
Stock Options, Exercisable, Weighted Average Contractual Life In Years | 1 year 2 months 12 days |
Income_per_Share_Additional_In
Income per Share - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Earnings Per Share [Abstract] | |
Restricted common shares, percentage | 0.40% |
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, 2015 | Mar. 31, 2014 |
Basic net income per share: | ||
Net income | $6,086 | $7,436 |
Weighted average number of common shares outstanding | 35,227 | 35,108 |
Net income per common share - basic | $0.17 | $0.21 |
Diluted net income per share: | ||
Net income | $6,086 | $7,436 |
Weighted average number of common shares outstanding | 35,227 | 35,108 |
Effect of dilutive securities: | ||
Weighted average number of common shares outstanding - diluted | 35,286 | 35,218 |
Net income per common share - diluted | $0.17 | $0.21 |
Employee Stock Option [Member] | ||
Effect of dilutive securities: | ||
Effect of dilutive stock options and non-vested stock | 19 | 23 |
Non-vested Restricted Stock [Member] | ||
Effect of dilutive securities: | ||
Effect of dilutive stock options and non-vested stock | 40 | 87 |
Common shares excluded from the denominator as anti-dilutive: | ||
Common shares excluded from the denominator as anti-dilutive | 3 |
Senior_Secured_Credit_Facility1
Senior Secured Credit Facility - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Feb. 05, 2015 | Apr. 24, 2015 | |
Debt Instrument [Line Items] | |||
Existing credit facility with its lenders | $402,500,000 | ||
Unused commitment fee margin percentage | 0.38% | ||
Payment of dividends and/or stock repurchases or redemptions | 75,000,000 | ||
Debt instrument maturity date description | Extends the maturity date of the Credit Facility from February 29, 2017 to May 21, 2019 | ||
Available borrowings under our senior secured credit facility | 332,400,000 | ||
Debt instrument prime rate plus | 3.25% | ||
Weighted average interest rate on the senior secured credit facility | 2.70% | ||
Basis points added to U S prime rate | 1.00% | ||
Basis points added to LIBOR | 2.00% | ||
Credit facility interest rate description | The interest rate on the Credit Facility was based on a 3.25% U.S. Prime Rate plus 100 basis points and LIBOR plus 200 basis points. | ||
Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Available borrowings under our senior secured credit facility | 331,400,000 | ||
Non-vested Restricted Stock [Member] | |||
Debt Instrument [Line Items] | |||
Payment of special cash dividend per share previously declared by the Company | $7 | ||
General Electric Capital Corp [Member] | |||
Debt Instrument [Line Items] | |||
Existing credit facility with its lenders | 602,500,000 | ||
Amended and Restated Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Existing credit facility with its lenders | 602,500,000 | ||
Credit Facility [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding letters of credit | 7,200,000 | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Uncommitted incremental revolving capacity | 130,000,000 | ||
Unused commitment fee margin percentage | 0.25% | ||
Index rate plus an applicable margin Percentage | 0.75% | ||
LIBOR plus an applicable margin Percentage | 1.75% | ||
Minimum [Member] | Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Margin rate lowered in applicable to Letter of Credit | 1.75% | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Uncommitted incremental revolving capacity | $150,000,000 | ||
Unused commitment fee margin percentage | 0.50% | ||
Index rate plus an applicable margin Percentage | 1.25% | ||
LIBOR plus an applicable margin Percentage | 2.25% | ||
Maximum [Member] | Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Margin rate lowered in applicable to Letter of Credit | 2.25% |
Senior_Unsecured_Notes_Reconci
Senior Unsecured Notes - Reconciliation of Senior Unsecured Notes to Condensed Consolidated Balance Sheets (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||
Senior unsecured notes | $628,714 | $628,546 | $628,546 |
Amortization of note premium | -42 | -42 | |
Senior unsecured notes | 628,756 | ||
Senior Unsecured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Accretion of discount | 264 | 1,055 | |
Amortization of note premium | ($222) | ($887) |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Customer | Customer | |
Segment | ||
Segment Reporting [Abstract] | ||
Number of reportable segment | 5 | |
Sales to international customers | 0.80% | 1.60% |
Customer accounted for more than 10% of revenue | 0 | 0 |
Segment_Information_Informatio
Segment Information - Information about Reportable Segments (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Revenues: | |||
Total revenues | $227,410 | $237,229 | |
Gross Profit: | |||
Total gross profit | 76,340 | 72,784 | |
Segment identified assets: | |||
Total assets | 1,345,699 | 1,358,804 | |
Used Equipment Sales [Member] | |||
Gross Profit: | |||
Total gross profit | 8,184 | 8,927 | |
Equipment Rentals [Member] | |||
Gross Profit: | |||
Total gross profit | 45,834 | 39,002 | |
New Equipment Sales [Member] | |||
Gross Profit: | |||
Total gross profit | 5,218 | 7,813 | |
Parts Sales [Member] | |||
Gross Profit: | |||
Total gross profit | 7,566 | 7,520 | |
Services Revenues [Member] | |||
Gross Profit: | |||
Total gross profit | 9,679 | 8,907 | |
Operating Segments [Member] | |||
Revenues: | |||
Total revenues | 213,037 | 224,566 | |
Gross Profit: | |||
Total gross profit | 76,481 | 72,169 | |
Segment identified assets: | |||
Total assets | 1,050,676 | 1,023,694 | |
Operating Segments [Member] | Used Equipment Sales [Member] | |||
Revenues: | |||
Total revenues | 25,070 | 29,345 | |
Gross Profit: | |||
Total gross profit | 8,184 | 8,927 | |
Segment identified assets: | |||
Total assets | 141,010 | 114,664 | |
Operating Segments [Member] | Equipment Rentals [Member] | |||
Revenues: | |||
Total revenues | 101,389 | 86,224 | |
Gross Profit: | |||
Total gross profit | 45,834 | 39,002 | |
Segment identified assets: | |||
Total assets | 888,205 | 889,706 | |
Operating Segments [Member] | Parts and Services [Member] | |||
Segment identified assets: | |||
Total assets | 21,461 | 19,324 | |
Operating Segments [Member] | New Equipment Sales [Member] | |||
Revenues: | |||
Total revenues | 44,537 | 69,547 | |
Gross Profit: | |||
Total gross profit | 5,218 | 7,813 | |
Operating Segments [Member] | Parts Sales [Member] | |||
Revenues: | |||
Total revenues | 27,085 | 25,802 | |
Gross Profit: | |||
Total gross profit | 7,566 | 7,520 | |
Operating Segments [Member] | Services Revenues [Member] | |||
Revenues: | |||
Total revenues | 14,956 | 13,648 | |
Gross Profit: | |||
Total gross profit | 9,679 | 8,907 | |
Non-Segmented [Member] | |||
Revenues: | |||
Total revenues | 14,373 | 12,663 | |
Gross Profit: | |||
Total gross profit | -141 | 615 | |
Segment identified assets: | |||
Total assets | $295,023 | $335,110 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Balance Sheet (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Assets: | ||||
Cash | $4,552 | $15,861 | $4,965 | $17,607 |
Receivables, net | 131,884 | 164,335 | ||
Inventories, net | 162,471 | 133,987 | ||
Prepaid expenses and other assets | 11,584 | 9,146 | ||
Rental equipment, net | 888,205 | 889,706 | ||
Property and equipment, net | 110,666 | 109,908 | ||
Deferred financing costs, net | 5,140 | 4,664 | ||
Goodwill | 31,197 | 31,197 | ||
Total assets | 1,345,699 | 1,358,804 | ||
Liabilities and Stockholders' Equity: | ||||
Amount due on senior secured credit facility | 262,847 | 259,919 | ||
Accounts payable | 72,866 | 53,341 | ||
Manufacturer flooring plans payable | 74,294 | 93,600 | ||
Accrued expenses payable and other liabilities | 41,967 | 60,548 | ||
Dividends payable | 60,548 | |||
Senior unsecured notes | 628,756 | 628,714 | 628,546 | |
Capital lease payable | 2,052 | 2,099 | ||
Deferred income taxes | 129,135 | 125,110 | ||
Deferred compensation payable | 2,123 | 2,106 | ||
Total liabilities | 1,214,040 | 1,225,437 | ||
Stockholders' equity (deficit) | 131,659 | 133,367 | ||
Total liabilities and stockholders' equity | 1,345,699 | 1,358,804 | ||
H & E Equipment Services [Member] | ||||
Assets: | ||||
Cash | 4,552 | 15,861 | 4,965 | 17,607 |
Receivables, net | 110,944 | 137,197 | ||
Inventories, net | 145,195 | 123,410 | ||
Prepaid expenses and other assets | 11,392 | 9,027 | ||
Rental equipment, net | 744,497 | 748,353 | ||
Property and equipment, net | 98,635 | 98,279 | ||
Deferred financing costs, net | 5,140 | 4,664 | ||
Investment in guarantor subsidiaries | 214,967 | 216,540 | ||
Goodwill | 1,671 | 1,671 | ||
Total assets | 1,336,993 | 1,355,002 | ||
Liabilities and Stockholders' Equity: | ||||
Amount due on senior secured credit facility | 262,847 | 259,919 | ||
Accounts payable | 65,447 | 50,661 | ||
Manufacturer flooring plans payable | 74,294 | 93,600 | ||
Accrued expenses payable and other liabilities | 42,708 | 23 | ||
Dividends payable | 24 | 61,502 | ||
Senior unsecured notes | 628,756 | 628,714 | ||
Deferred income taxes | 129,135 | 125,110 | ||
Deferred compensation payable | 2,123 | 2,106 | ||
Total liabilities | 1,205,334 | 1,221,635 | ||
Stockholders' equity (deficit) | 131,659 | 133,367 | ||
Total liabilities and stockholders' equity | 1,336,993 | 1,355,002 | ||
Guarantor Subsidiaries [Member] | ||||
Assets: | ||||
Receivables, net | 20,940 | 27,138 | ||
Inventories, net | 17,276 | 10,577 | ||
Prepaid expenses and other assets | 192 | 119 | ||
Rental equipment, net | 143,708 | 141,353 | ||
Property and equipment, net | 12,031 | 11,629 | ||
Goodwill | 29,526 | 29,526 | ||
Total assets | 223,673 | 220,342 | ||
Liabilities and Stockholders' Equity: | ||||
Accounts payable | 7,419 | 2,680 | ||
Accrued expenses payable and other liabilities | -741 | -23 | ||
Dividends payable | -24 | -954 | ||
Capital lease payable | 2,052 | 2,099 | ||
Total liabilities | 8,706 | 3,802 | ||
Stockholders' equity (deficit) | 214,967 | 216,540 | ||
Total liabilities and stockholders' equity | 223,673 | 220,342 | ||
Elimination [Member] | ||||
Assets: | ||||
Investment in guarantor subsidiaries | -214,967 | -216,540 | ||
Total assets | -214,967 | -216,540 | ||
Liabilities and Stockholders' Equity: | ||||
Stockholders' equity (deficit) | -214,967 | -216,540 | ||
Total liabilities and stockholders' equity | ($214,967) | ($216,540) |
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, 2015 | Mar. 31, 2014 |
Revenues: | ||
Equipment rentals | $101,389 | $86,224 |
New equipment sales | 44,537 | 69,547 |
Used equipment sales | 25,070 | 29,345 |
Parts sales | 27,085 | 25,802 |
Services revenues | 14,956 | 13,648 |
Other | 14,373 | 12,663 |
Total revenues | 227,410 | 237,229 |
Cost of revenues: | ||
Rental depreciation | 39,944 | 32,998 |
Rental expense | 15,611 | 14,224 |
New equipment sales | 39,319 | 61,734 |
Used equipment sales | 16,886 | 20,418 |
Parts sales | 19,519 | 18,282 |
Services revenues | 5,277 | 4,741 |
Other | 14,514 | 12,048 |
Total cost of revenues | 151,070 | 164,445 |
Gross profit (loss): | ||
Gross profit | 76,340 | 72,784 |
Selling, general and administrative expenses | 53,466 | 48,856 |
Gain on sales of property and equipment, net | 458 | 663 |
Income from operations | 23,332 | 24,591 |
Other income (expense): | ||
Interest expense | -13,445 | -12,650 |
Other, net | 354 | 306 |
Total other expense, net | -13,091 | -12,344 |
Income before income taxes | 10,241 | 12,247 |
Income tax expense | 4,155 | 4,811 |
Net income | 6,086 | 7,436 |
Equipment Rentals [Member] | ||
Gross profit (loss): | ||
Gross profit | 45,834 | 39,002 |
New Equipment Sales [Member] | ||
Gross profit (loss): | ||
Gross profit | 5,218 | 7,813 |
Used Equipment Sales [Member] | ||
Gross profit (loss): | ||
Gross profit | 8,184 | 8,927 |
Parts Sales [Member] | ||
Gross profit (loss): | ||
Gross profit | 7,566 | 7,520 |
Services Revenues [Member] | ||
Gross profit (loss): | ||
Gross profit | 9,679 | 8,907 |
H & E Equipment Services [Member] | ||
Revenues: | ||
Equipment rentals | 84,912 | 73,445 |
New equipment sales | 37,782 | 61,050 |
Used equipment sales | 20,040 | 21,574 |
Parts sales | 23,783 | 22,399 |
Services revenues | 12,855 | 11,572 |
Other | 11,753 | 10,536 |
Total revenues | 191,125 | 200,576 |
Cost of revenues: | ||
Rental depreciation | 33,500 | 27,785 |
Rental expense | 12,860 | 11,938 |
New equipment sales | 33,318 | 54,126 |
Used equipment sales | 13,782 | 14,489 |
Parts sales | 17,191 | 15,912 |
Services revenues | 4,576 | 3,976 |
Other | 11,706 | 9,854 |
Total cost of revenues | 126,933 | 138,080 |
Gross profit (loss): | ||
Gross profit | 64,192 | 62,496 |
Selling, general and administrative expenses | 45,806 | 41,275 |
Equity in earnings of guarantor subsidiaries | 1,377 | 199 |
Gain on sales of property and equipment, net | 214 | 513 |
Income from operations | 19,977 | 21,933 |
Other income (expense): | ||
Interest expense | -10,039 | -9,951 |
Other, net | 303 | 265 |
Total other expense, net | -9,736 | -9,686 |
Income before income taxes | 10,241 | 12,247 |
Income tax expense | 4,155 | 4,811 |
Net income | 6,086 | 7,436 |
H & E Equipment Services [Member] | Equipment Rentals [Member] | ||
Gross profit (loss): | ||
Gross profit | 38,552 | 33,722 |
H & E Equipment Services [Member] | New Equipment Sales [Member] | ||
Gross profit (loss): | ||
Gross profit | 4,464 | 6,924 |
H & E Equipment Services [Member] | Used Equipment Sales [Member] | ||
Gross profit (loss): | ||
Gross profit | 6,258 | 7,085 |
H & E Equipment Services [Member] | Parts Sales [Member] | ||
Gross profit (loss): | ||
Gross profit | 6,592 | 6,487 |
H & E Equipment Services [Member] | Services Revenues [Member] | ||
Gross profit (loss): | ||
Gross profit | 8,279 | 7,596 |
Guarantor Subsidiaries [Member] | ||
Revenues: | ||
Equipment rentals | 16,477 | 12,779 |
New equipment sales | 6,755 | 8,497 |
Used equipment sales | 5,030 | 7,771 |
Parts sales | 3,302 | 3,403 |
Services revenues | 2,101 | 2,076 |
Other | 2,620 | 2,127 |
Total revenues | 36,285 | 36,653 |
Cost of revenues: | ||
Rental depreciation | 6,444 | 5,213 |
Rental expense | 2,751 | 2,286 |
New equipment sales | 6,001 | 7,608 |
Used equipment sales | 3,104 | 5,929 |
Parts sales | 2,328 | 2,370 |
Services revenues | 701 | 765 |
Other | 2,808 | 2,194 |
Total cost of revenues | 24,137 | 26,365 |
Gross profit (loss): | ||
Gross profit | 12,148 | 10,288 |
Selling, general and administrative expenses | 7,660 | 7,581 |
Gain on sales of property and equipment, net | 244 | 150 |
Income from operations | 4,732 | 2,857 |
Other income (expense): | ||
Interest expense | -3,406 | -2,699 |
Other, net | 51 | 41 |
Total other expense, net | -3,355 | -2,658 |
Income before income taxes | 1,377 | 199 |
Net income | 1,377 | 199 |
Guarantor Subsidiaries [Member] | Equipment Rentals [Member] | ||
Gross profit (loss): | ||
Gross profit | 7,282 | 5,280 |
Guarantor Subsidiaries [Member] | New Equipment Sales [Member] | ||
Gross profit (loss): | ||
Gross profit | 754 | 889 |
Guarantor Subsidiaries [Member] | Used Equipment Sales [Member] | ||
Gross profit (loss): | ||
Gross profit | 1,926 | 1,842 |
Guarantor Subsidiaries [Member] | Parts Sales [Member] | ||
Gross profit (loss): | ||
Gross profit | 974 | 1,033 |
Guarantor Subsidiaries [Member] | Services Revenues [Member] | ||
Gross profit (loss): | ||
Gross profit | 1,400 | 1,311 |
Other [Member] | ||
Gross profit (loss): | ||
Gross profit | -141 | 615 |
Other [Member] | H & E Equipment Services [Member] | ||
Gross profit (loss): | ||
Gross profit | 47 | 682 |
Other [Member] | Guarantor Subsidiaries [Member] | ||
Gross profit (loss): | ||
Gross profit | -188 | -67 |
Elimination [Member] | ||
Gross profit (loss): | ||
Equity in earnings of guarantor subsidiaries | -1,377 | -199 |
Income from operations | -1,377 | -199 |
Other income (expense): | ||
Income before income taxes | -1,377 | -199 |
Net income | ($1,377) | ($199) |
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, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $6,086 | $7,436 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization on property and equipment | 5,624 | 4,780 |
Depreciation of rental equipment | 39,944 | 32,998 |
Amortization of deferred financing costs | 249 | 268 |
Accretion of note discount, net of premium amortization | 42 | 42 |
Provision for losses on accounts receivable | 638 | 734 |
Provision for inventory obsolescence | 29 | 63 |
Provision for deferred income taxes | 4,025 | 3,939 |
Stock-based compensation expense | 1,021 | 808 |
Gain on sales of property and equipment, net | -458 | -663 |
Gain on sales of rental equipment, net | -7,927 | -8,357 |
Changes in operating assets and liabilities: | ||
Receivables | 31,813 | -6,022 |
Inventories | -59,745 | -82,514 |
Prepaid expenses and other assets | -2,438 | -4,017 |
Accounts payable | 19,525 | 44,727 |
Manufacturer flooring plans payable | -19,306 | 7,251 |
Accrued expenses payable and other liabilities | -18,581 | -15,356 |
Deferred compensation payable | 17 | 16 |
Net cash provided by (used in) operating activities | 558 | -13,867 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -6,462 | -6,059 |
Purchases of rental equipment | -19,930 | -39,663 |
Proceeds from sales of property and equipment | 538 | 682 |
Proceeds from sales of rental equipment | 20,646 | 24,802 |
Net cash used in investing activities | -5,208 | -20,238 |
Cash flows from financing activities: | ||
Borrowings on senior secured credit facility | 264,490 | 266,183 |
Payments on senior secured credit facility | -261,562 | -244,676 |
Dividends paid | -8,815 | |
Payments of deferred financing costs | -725 | |
Payments on capital lease obligations | -47 | -44 |
Net cash provided by (used in) financing activities | -6,659 | 21,463 |
Net decrease in cash | -11,309 | -12,642 |
Cash, beginning of period | 15,861 | 17,607 |
Cash, end of period | 4,552 | 4,965 |
H & E Equipment Services [Member] | ||
Cash flows from operating activities: | ||
Net income | 6,086 | 7,436 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization on property and equipment | 4,921 | 4,193 |
Depreciation of rental equipment | 33,500 | 27,785 |
Amortization of deferred financing costs | 249 | 268 |
Accretion of note discount, net of premium amortization | 42 | 42 |
Provision for losses on accounts receivable | 587 | 627 |
Provision for inventory obsolescence | 29 | 63 |
Provision for deferred income taxes | 4,025 | 3,939 |
Stock-based compensation expense | 1,021 | 808 |
Gain on sales of property and equipment, net | -214 | -513 |
Gain on sales of rental equipment, net | -6,011 | -6,547 |
Equity in earnings of guarantor subsidiaries | -1,377 | -199 |
Changes in operating assets and liabilities: | ||
Receivables | 25,666 | -6,844 |
Inventories | -50,191 | -75,278 |
Prepaid expenses and other assets | -2,365 | -3,967 |
Accounts payable | 14,786 | 44,836 |
Manufacturer flooring plans payable | -19,306 | 7,295 |
Accrued expenses payable and other liabilities | -18,794 | -15,222 |
Deferred compensation payable | 17 | 16 |
Net cash provided by (used in) operating activities | -7,329 | -11,261 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -5,357 | -5,457 |
Purchases of rental equipment | -11,027 | -36,595 |
Proceeds from sales of property and equipment | 294 | 532 |
Proceeds from sales of rental equipment | 15,771 | 18,151 |
Investment in subsidiaries | 2,950 | 504 |
Net cash used in investing activities | 2,631 | -22,865 |
Cash flows from financing activities: | ||
Borrowings on senior secured credit facility | 264,490 | 266,183 |
Payments on senior secured credit facility | -261,562 | -244,676 |
Dividends paid | -8,814 | -23 |
Payments of deferred financing costs | -725 | |
Net cash provided by (used in) financing activities | -6,611 | 21,484 |
Net decrease in cash | -11,309 | -12,642 |
Cash, beginning of period | 15,861 | 17,607 |
Cash, end of period | 4,552 | 4,965 |
Guarantor Subsidiaries [Member] | ||
Cash flows from operating activities: | ||
Net income | 1,377 | 199 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization on property and equipment | 703 | 587 |
Depreciation of rental equipment | 6,444 | 5,213 |
Provision for losses on accounts receivable | 51 | 107 |
Gain on sales of property and equipment, net | -244 | -150 |
Gain on sales of rental equipment, net | -1,916 | -1,810 |
Changes in operating assets and liabilities: | ||
Receivables | 6,147 | 822 |
Inventories | -9,554 | -7,236 |
Prepaid expenses and other assets | -73 | -50 |
Accounts payable | 4,739 | -109 |
Manufacturer flooring plans payable | -44 | |
Accrued expenses payable and other liabilities | 213 | -135 |
Net cash provided by (used in) operating activities | 7,887 | -2,606 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -1,105 | -602 |
Purchases of rental equipment | -8,903 | -3,068 |
Proceeds from sales of property and equipment | 244 | 150 |
Proceeds from sales of rental equipment | 4,875 | 6,651 |
Net cash used in investing activities | -4,889 | 3,131 |
Cash flows from financing activities: | ||
Dividends paid | -1 | 23 |
Payments on capital lease obligations | -47 | -44 |
Capital contributions | -2,950 | -504 |
Net cash provided by (used in) financing activities | -2,998 | -525 |
Elimination [Member] | ||
Cash flows from operating activities: | ||
Net income | -1,377 | -199 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Equity in earnings of guarantor subsidiaries | 1,377 | 199 |
Cash flows from investing activities: | ||
Investment in subsidiaries | -2,950 | -504 |
Net cash used in investing activities | -2,950 | -504 |
Cash flows from financing activities: | ||
Capital contributions | 2,950 | 504 |
Net cash provided by (used in) financing activities | $2,950 | $504 |