Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 17, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HEES | ||
Entity Registrant Name | H&E Equipment Services, Inc. | ||
Entity Central Index Key | 1,339,605 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 35,467,821 | ||
Entity Public Float | $ 622,994,245 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash | $ 7,159 | $ 15,861 |
Receivables, net of allowance for doubtful accounts of $4,729 and $3,288, respectively | 147,328 | 164,335 |
Inventories, net of reserves for obsolescence of $934 and $647, respectively | 96,818 | 133,987 |
Prepaid expenses and other assets | 10,054 | 9,146 |
Rental equipment, net of accumulated depreciation of $390,317 and $351,841, respectively | 893,393 | 889,706 |
Property and equipment, net of accumulated depreciation and amortization of $107,170 and $88,376, respectively | 110,785 | 109,908 |
Deferred financing costs, net of accumulated amortization of $12,147 and $11,111, respectively | 4,353 | 4,664 |
Goodwill | 31,197 | 31,197 |
Total assets | 1,301,087 | 1,358,804 |
Liabilities: | ||
Amounts due on senior secured credit facility | 184,857 | 259,919 |
Accounts payable | 66,777 | 53,341 |
Manufacturer flooring plans payable | 62,433 | 93,600 |
Accrued expenses payable and other liabilities | 55,551 | 60,548 |
Dividends payable | 32 | |
Senior unsecured notes, net of unaccreted discount of $1,118 and $1,286, respectively | 628,882 | 628,714 |
Capital leases payable | 1,907 | 2,099 |
Deferred income taxes | 155,886 | 125,110 |
Deferred compensation payable | 2,174 | 2,106 |
Total liabilities | $ 1,158,499 | $ 1,225,437 |
Commitments and Contingencies (Note 12) | ||
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; 39,333,571 and 39,100,021 shares issued at December 31, 2015 and 2014, respectively, and 35,428,868 and 35,232,032 shares outstanding at December 31, 2015 and 2014, respectively | $ 392 | $ 390 |
Additional paid-in capital | 220,879 | 218,349 |
Treasury stock at cost, 3,904,703 and 3,867,989 shares of common stock held at December 31, 2015 and 2014, respectively | (60,405) | (59,935) |
Accumulated deficit | (18,278) | (25,437) |
Total stockholders’ equity | 142,588 | 133,367 |
Total liabilities and stockholders’ equity | $ 1,301,087 | $ 1,358,804 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivables | $ 4,729 | $ 3,288 |
Reserves for obsolescence inventories | 934 | 647 |
Accumulated depreciation, rental equipment | 390,317 | 351,841 |
Accumulated depreciation and amortization, property and equipment | 107,170 | 88,376 |
Accumulated amortization, deferred financing costs | 12,147 | 11,111 |
Unaccreted discount, net | $ 1,118 | $ 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 | 39,333,571 | 39,100,021 |
Common stock, shares outstanding | 35,428,868 | 35,232,032 |
Treasury stock, shares | 3,904,703 | 3,867,989 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Revenues | $ 1,039,831 | $ 1,090,412 | $ 987,756 |
Cost of revenues: | |||
Cost of revenues | 694,099 | 742,474 | 685,920 |
Gross profit | 345,732 | 347,938 | 301,836 |
Selling, general and administrative expenses | 220,226 | 206,480 | 189,062 |
Gain from sales of property and equipment, net | 2,737 | 2,286 | 2,549 |
Income from operations | 128,243 | 143,744 | 115,323 |
Other income (expense): | |||
Interest expense | (54,030) | (52,353) | (51,404) |
Other, net | 1,463 | 1,293 | 1,228 |
Total other expense, net | (52,567) | (51,060) | (50,176) |
Income before provision for income taxes | 75,676 | 92,684 | 65,147 |
Provision for income taxes | 31,371 | 37,545 | 21,007 |
Net income | $ 44,305 | $ 55,139 | $ 44,140 |
Net income per common share: | |||
Basic | $ 1.26 | $ 1.57 | $ 1.26 |
Diluted | $ 1.25 | $ 1.56 | $ 1.26 |
Weighted average common shares outstanding: | |||
Basic | 35,272 | 35,159 | 35,041 |
Diluted | 35,343 | 35,249 | 35,146 |
Dividends declared per common share outstanding | $ 1.05 | $ 0.50 | |
Rental Depreciation [Member] | |||
Cost of revenues: | |||
Cost of revenues | $ 162,089 | $ 146,055 | $ 121,948 |
Rental Expense [Member] | |||
Cost of revenues: | |||
Cost of revenues | 71,950 | 61,916 | 55,338 |
Other [Member] | |||
Revenues: | |||
Revenues | 65,210 | 60,069 | 52,625 |
Cost of revenues: | |||
Cost of revenues | 63,964 | 57,428 | 49,779 |
Gross profit | 1,246 | 2,641 | 2,846 |
Equipment Rentals [Member] | |||
Revenues: | |||
Revenues | 443,024 | 404,110 | 338,935 |
Cost of revenues: | |||
Gross profit | 208,985 | 196,139 | 161,649 |
New Equipment Sales [Member] | |||
Revenues: | |||
Revenues | 238,172 | 328,036 | 294,768 |
Cost of revenues: | |||
Cost of revenues | 212,235 | 289,526 | 262,887 |
Gross profit | 25,937 | 38,510 | 31,881 |
Used Equipment Sales [Member] | |||
Revenues: | |||
Revenues | 118,338 | 123,173 | 141,560 |
Cost of revenues: | |||
Cost of revenues | 81,338 | 84,936 | 100,693 |
Gross profit | 37,000 | 38,237 | 40,867 |
Parts Sales [Member] | |||
Revenues: | |||
Revenues | 111,133 | 113,732 | 103,174 |
Cost of revenues: | |||
Cost of revenues | 80,830 | 81,106 | 74,241 |
Gross profit | 30,303 | 32,626 | 28,933 |
Services Revenues [Member] | |||
Revenues: | |||
Revenues | 63,954 | 61,292 | 56,694 |
Cost of revenues: | |||
Cost of revenues | 21,693 | 21,507 | 21,034 |
Gross profit | $ 42,261 | $ 39,785 | $ 35,660 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] |
Beginning balances at Dec. 31, 2012 | $ 48,636 | $ 388 | $ 212,850 | $ (57,578) | $ (107,024) |
Beginning balances, shares at Dec. 31, 2012 | 38,917,619 | ||||
Stock-based compensation | 2,618 | 2,618 | |||
Tax benefits associated with stock-based awards | 307 | 307 | |||
Issuance of non-vested restricted common stock | 1 | $ 1 | |||
Issuance of non-vested restricted common stock, shares | 105,975 | ||||
Repurchases of 40,109, 38,134 and 25,484 shares of restricted common stock in 31 December 2013, 2014 and 2015 respectively | (890) | (890) | |||
Net income | 44,140 | 44,140 | |||
Ending Balance at Dec. 31, 2013 | 94,812 | $ 389 | 215,775 | (58,468) | (62,884) |
Balance, Shares at Dec. 31, 2013 | 39,023,594 | ||||
Stock-based compensation | 2,598 | 2,598 | |||
Cash dividends on common stock ($.50 per share in 2014 and $1.50 per share in 2015) | (17,692) | (17,692) | |||
Issuance of non-vested restricted common stock | 1 | $ 1 | |||
Issuance of non-vested restricted common stock, shares | 76,427 | ||||
Repurchases of 40,109, 38,134 and 25,484 shares of restricted common stock in 31 December 2013, 2014 and 2015 respectively | (1,467) | (1,467) | |||
Net income | 55,139 | 55,139 | |||
Ending Balance at Dec. 31, 2014 | $ 133,367 | $ 390 | 218,349 | (59,935) | (25,437) |
Balance, Shares at Dec. 31, 2014 | 39,100,021 | 39,100,021 | |||
Tax deficiency associated with stock-based awards | $ (24) | (24) | |||
Stock-based compensation | 2,655 | 2,655 | |||
Cash dividends on common stock ($.50 per share in 2014 and $1.50 per share in 2015) | (37,146) | (37,146) | |||
Issuance of non-vested restricted common stock | 2 | $ 2 | |||
Issuance of non-vested restricted common stock, shares | 233,550 | ||||
Repurchases of 40,109, 38,134 and 25,484 shares of restricted common stock in 31 December 2013, 2014 and 2015 respectively | (470) | (470) | |||
Net income | 44,305 | 44,305 | |||
Ending Balance at Dec. 31, 2015 | $ 142,588 | $ 392 | 220,879 | $ (60,405) | $ (18,278) |
Balance, Shares at Dec. 31, 2015 | 39,333,571 | 39,333,571 | |||
Tax deficiency associated with stock-based awards | $ (125) | $ (125) |
Consolidated Statements of Sto6
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Deficit [Member] | |||
Dividends per share paid | $ 1.05 | $ 0.50 | |
Treasury Stock [Member] | |||
Repurchase of restricted common stock, shares | 25,484 | 38,134 | 40,109 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 44,305 | $ 55,139 | $ 44,140 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of property and equipment | 24,368 | 20,459 | 16,955 |
Depreciation of rental equipment | 162,089 | 146,055 | 121,948 |
Amortization of deferred financing costs | 1,036 | 934 | 1,094 |
Accretion of note discount, net of premium amortization | 168 | 168 | 231 |
Provision for losses on accounts receivable | 3,441 | 2,859 | 3,194 |
Provision for inventory obsolescence | 295 | 159 | 220 |
Provision for deferred income taxes | 30,776 | 36,819 | 17,009 |
Stock-based compensation expense | 2,655 | 2,598 | 2,618 |
Gain from sales of property and equipment, net | (2,737) | (2,286) | (2,549) |
Gain from sales of rental equipment, net | (35,134) | (35,769) | (38,575) |
Tax deficiency from stock-based awards | (125) | (24) | (307) |
Writedown of goodwill for tax-deductible goodwill in excess of book goodwill | 0 | 0 | 877 |
Changes in operating assets and liabilities: | |||
Receivables | 13,566 | (35,224) | 6,503 |
Inventories | (14,517) | (66,723) | (67,754) |
Prepaid expenses and other assets | (908) | (3,122) | (815) |
Accounts payable | 13,436 | (14,438) | 31,659 |
Manufacturer flooring plans payable | (31,167) | 44,538 | (1,777) |
Accrued expenses payable and other liabilities | (4,995) | 6,110 | 3,916 |
Deferred compensation payable | 68 | 66 | 65 |
Net cash provided by operating activities | 206,620 | 158,318 | 138,652 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (26,797) | (33,235) | (29,479) |
Purchases of rental equipment | (178,772) | (368,491) | (267,465) |
Proceeds from sales of property and equipment | 4,289 | 3,657 | 2,759 |
Proceeds from sales of rental equipment | 99,521 | 101,426 | 114,595 |
Net cash used in investing activities | (101,759) | (296,643) | (179,590) |
Cash flows from financing activities: | |||
Excess tax benefit from stock-based awards | 307 | ||
Purchases of treasury stock | (470) | (1,467) | (890) |
Borrowings on senior secured credit facility | 982,961 | 1,235,630 | 1,058,990 |
Payments on senior secured credit facility | (1,058,023) | (1,078,171) | (1,114,249) |
Payments of deferred financing costs | (725) | (909) | (733) |
Dividend paid | (37,114) | (18,325) | (855) |
Proceeds from issuance of senior unsecured notes | 107,250 | ||
Payments of capital lease obligations | (192) | (179) | (169) |
Net cash provided by (used in) financing activities | (113,563) | 136,579 | 49,651 |
Net increase (decrease) in cash | (8,702) | (1,746) | 8,713 |
Cash, beginning of year | 15,861 | 17,607 | 8,894 |
Cash, end of year | 7,159 | 15,861 | 17,607 |
Non-cash asset purchases: | |||
Assets transferred from new and used inventory to rental fleet | 51,391 | 44,217 | 35,864 |
Cash paid during the year for: | |||
Interest | 52,803 | 50,956 | 49,252 |
Income taxes paid, net of refunds received | $ 1,591 | $ 4,516 | $ 2,479 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Nature of Operations | (1) Organization and Nature of Operations Organization Prior to our initial public offering in February 2006, our business was conducted through H&E LLC. In connection with our initial public offering, we converted H&E LLC into H&E Equipment Services, Inc. In order to have an operating Delaware corporation as the issuer for our initial public offering, H&E Equipment Services, Inc. was formed as a Delaware corporation and wholly-owned subsidiary of H&E Holdings L.L.C. (“H&E Holdings”), and immediately prior to the closing of our initial public offering, on February 3, 2006, H&E LLC and H&E Holdings merged with and into H&E Equipment Services, Inc., which survived the reincorporation merger as the operating company. Effective February 3, 2006, H&E LLC and H&E Holdings no longer existed under operation of law pursuant to the reincorporation merger. 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 services 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 rental, sales, on-site parts, 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation Our 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.” All significant intercompany accounts and transactions have been eliminated in these consolidated financial statements. Business combinations are included in the 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 consolidated balance sheets are presented on an unclassified basis. 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. Revenue Recognition Pursuant to Staff Accounting Bulletin No. 104 (“SAB 104”), the SEC Staff believes that revenue generally is realized or realizable and earned when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectibility is reasonably assured. Consistent with SAB 104, our policy recognizes revenue from equipment rentals in the period earned on a straight-line basis, over the contract term, regardless of the timing of the billing to customers. A rental contract term can be daily, weekly or monthly. Because the term of the contracts can extend across multiple financial reporting periods, we record unbilled rental revenue and deferred revenue at the end of reporting periods so that rental revenues earned are appropriately stated in the periods presented. Revenue from the sale of new and used equipment and parts is recognized at the time of delivery to, or pick-up by, the customer and when all obligations under the sales contract have been fulfilled, risk of ownership has been transferred and collectibility is reasonably assured. Services revenue is recognized at the time the services are rendered. Other revenues consist primarily of billings to customers for rental equipment delivery and damage waiver charges and are recognized at the time an invoice is generated and after the service has been provided. See also the “Recent Accounting Pronouncements” discussion below for new accounting guidance related to revenue from contracts with customers. Inventories New and used equipment inventories are stated at the lower of cost or market, with cost determined by specific-identification. Inventories of parts and supplies are stated at the lower of the average cost or market. See also the “Recent Accounting Pronouncements” discussion below for new accounting guidance related to measurement of inventories. Long-lived Assets and Goodwill Rental Equipment The rental equipment we purchase is stated at cost and is depreciated over the estimated useful lives of the equipment using the straight-line method. Estimated useful lives vary based upon type of equipment. Generally, we depreciate cranes and aerial work platforms over a ten year estimated useful life, earthmoving equipment over a five year estimated useful life with a 25% salvage value, and industrial lift trucks over a seven year estimated useful life. Attachments and other smaller type equipment are depreciated generally over a three year estimated useful life. We periodically evaluate the appropriateness of remaining depreciable lives and any salvage value assigned to rental equipment. Ordinary repair and maintenance costs and property taxes are charged to operations as incurred. However, expenditures for additions or improvements that significantly extend the useful life of the asset are capitalized in the period incurred. When rental equipment is sold or disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gains or losses are included in income. We receive individual offers for fleet on a continual basis, at which time we perform an analysis on whether or not to accept the offer. The rental equipment is not transferred to inventory under the held for sale model as the equipment is used to generate revenues until the equipment is sold. Property and Equipment Property and equipment are recorded at cost and are depreciated over the assets’ estimated useful lives using the straight-line method. Ordinary repair and maintenance costs are charged to operations as incurred. However, expenditures for additions or improvements that significantly extend the useful life of the asset are capitalized in the period incurred. At the time assets are sold or disposed of, the cost and accumulated depreciation are removed from their respective accounts and the related gains or losses are reflected in income. We capitalize interest on qualified construction projects. Costs associated with internally developed software are accounted for in accordance with FASB ASC 350-40, Internal-Use Software We periodically evaluate the appropriateness of remaining depreciable lives assigned to property and equipment. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or the remaining term of the lease, whichever is shorter. Generally, we assign the following estimated useful lives to these categories: Category Estimated Useful Life Transportation equipment 5 years Buildings 39 years Office equipment 5 years Computer equipment 3 years Machinery and equipment 7 years In accordance with ASC 360, Property, Plant and Equipment Goodwill We have made acquisitions in the past that included the recognition of goodwill, which was determined based upon previous accounting principles. Pursuant to ASC 350, Intangibles-Goodwill and Other We evaluate goodwill for impairment at least annually, or more frequently if triggering events occur or other impairment indicators arise which might impair recoverability. Impairment of goodwill is evaluated at the reporting unit level. A reporting unit is defined as an operating segment (i.e. before aggregation or combination), or one level below an operating segment (i.e. a component). A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. We have identified two components within our Rental operating segment and have determined that each of our other operating segments (New, Used, Parts and Service) represent a reporting unit, resulting in six total reporting units. Accounting Standards Codification Topic 350 (“ASC 350”) Intangibles-Goodwill and Other Based upon improving macroeconomic conditions, positive trends within our industry and market and continuing positive operating results in comparison to prior periods and our internal forecasts, as well as consideration of the cushion between the reporting unit’s fair value and carrying value from our most recent quantitative analysis, we determined that it is more likely than not that the fair value of our reporting units exceeds their respective carrying values at the October 1, 2015, 2014 and 2013 valuation dates and there was no goodwill impairment at October 1, 2015, 2014 and 2013. To determine if any of our reporting units are impaired under the prescribed two-step goodwill test, we must determine whether the fair value of each of our reporting units is greater than their respective carrying value. If the fair value of a reporting unit is less than its carrying value, then the implied fair value of goodwill must be calculated and compared to its carrying value to measure the amount of impairment. The implied fair value of goodwill is calculated by allocating the fair value of the reporting unit to all assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination (purchase price allocation). The excess of the fair value of the reporting unit over the amounts assigned is the implied fair value of goodwill. If the carrying amount of the goodwill exceeds the implied fair value of goodwill, an impairment loss is recognized for the excess amount. We determine the fair value of our reporting units using a discounted cash flow analysis or by applying various market multiples or a combination thereof. Closed Branch Facility Charges We continuously monitor and identify branch facilities with revenues and operating margins that consistently fall below Company performance standards. Once identified, we continue to monitor these branches to determine if operating performance can be improved or if the performance is attributable to economic factors unique to the particular market with unfavorable long-term prospects. If necessary, branches with unfavorable long-term prospects are closed and the rental fleet and new and used equipment inventories are deployed to more profitable branches within our geographic footprint where demand is higher. We closed one branch during the year ended December 31, 2013 in a market where long-term prospects did not support continued operations. No branches were closed during 2014 or 2015. Under ASC 420, Exit or Disposal Cost Obligations Deferred Financing Costs and Initial Purchasers’ Discounts Deferred financing costs include legal, accounting and other direct costs incurred in connection with the issuance and amendments thereto, of the Company’s debt. These costs are amortized over the terms of the related debt using the straight-line method which approximates amortization using the effective interest method. Initial purchasers’ discount and bond premium is the differential between the price paid to an issuer for the new issue and the prices (below and above, respectively) at which the securities are initially offered to the investing public. The amortization expense of deferred financing costs and bond premium and accretion of initial purchasers’ discounts are included in interest expense as an overall cost of the related financings. See also the “Recent Accounting Pronouncements” discussion below related to the new accounting guidance on the presentation of debt issuance costs. Reserves for Claims We are exposed to various claims relating to our business, including those for which we provide self-insurance. Claims for which we self-insure include: (1) workers compensation claims; (2) general liability claims by third parties for injury or property damage caused by our equipment or personnel; (3) automobile liability claims; and (4) employee health insurance claims. These types of claims may take a substantial amount of time to resolve and, accordingly, the ultimate liability associated with a particular claim, including claims incurred but not reported as of a period-end reporting date, may not be known for an extended period of time. Our methodology for developing self-insurance reserves is based on management estimates and independent third party actuarial estimates. Our estimation process considers, among other matters, the cost of known claims over time, cost inflation and incurred but not reported claims. These estimates may change based on, among other things, changes in our claim history or receipt of additional information relevant to assessing the claims. Further, these estimates may prove to be inaccurate due to factors such as adverse judicial determinations or other claim settlements at higher than estimated amounts. Accordingly, we may be required to increase or decrease our reserve levels. At December 31, 2015, our claims reserves related to workers compensation, general liability and automobile liability, which are included in “Accrued expenses and other liabilities” in our consolidated balance sheets, totaled $5.0 million and our health insurance reserves totaled $1.4 million. At December 31, 2014, our claims reserves related to workers compensation, general liability and automobile liability totaled $4.4 million and our health insurance reserves totaled $1.2 million. Sales Taxes We impose and collect significant amounts of sales taxes concurrent with our revenue-producing transactions with customers and remit those taxes to the various governmental agencies as prescribed by the taxing jurisdictions in which we operate. We present such taxes in our consolidated statements of operations on a net basis. Advertising Advertising costs are expensed as incurred and totaled $1.8 million, $1.3 million and $0.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. Shipping and Handling Fees and Costs Shipping and handling fees billed to customers are recorded as revenues while the related shipping and handling costs are included in other cost of revenues. Income Taxes The Company files a consolidated federal income tax return with its wholly-owned subsidiaries. The Company is a C-Corporation under the provisions of the Internal Revenue Code. We utilize the asset and liability approach to measuring deferred tax assets and liabilities based on temporary differences existing at each balance sheet date using currently enacted tax rates in accordance with ASC 740. ASC 740 takes into account the differences between financial statement treatment and tax treatment of certain transactions. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rate is recognized as income or expense in the period that includes the enactment date of that rate. In accordance with ASC 740, the Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax provisions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company recognizes both interest and penalties related to uncertain tax positions in net other income (expense). Our deferred tax calculation requires management to make certain estimates about future operations. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. 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 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 December 31, 2015 and 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. December 31, 2015 Carrying Amount Fair Value Manufacturer flooring plans payable with interest computed at 5.00% (Level 3) $ 62,433 $ 54,710 Senior unsecured notes with interest computed at 7.0% ( 1) (Level 1) 628,882 617,400 Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) 1,907 1,329 Letter of credit (Level 3) — 145 December 31, 2014 Carrying Amount Fair Value Manufacturer flooring plans payable with interest computed at 5.25% (Level 3) $ 93,600 $ 82,021 Senior unsecured notes with interest computed at 7.0% (1) (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 (1) Fair values shown based on aggregate amounts outstanding for the periods presented. 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. Concentrations of Credit and Supplier Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable. Credit risk can be negatively impacted by adverse changes in the economy or by disruptions in the credit markets. However, we believe that credit risk with respect to trade accounts receivable is somewhat mitigated by our large number of geographically diverse customers and our credit evaluation procedures. Although generally no collateral is required, when feasible, mechanics’ liens are filed and personal guarantees are signed to protect the Company’s interests. We maintain reserves for potential losses. We record trade accounts receivables at sales value and establish specific reserves for certain customer accounts identified as known collection problems due to insolvency, disputes or other collection issues. The amounts of the specific reserves estimated by management are based on the following assumptions and variables: the customer’s financial position, age of the customer’s receivables and changes in payment schedules. In addition to the specific reserves, management establishes a non-specific allowance for doubtful accounts by applying specific percentages to the different receivable aging categories (excluding the specifically reserved accounts). The percentage applied against the aging categories increases as the accounts become further past due. The allowance for doubtful accounts is charged with the write-off of uncollectible customer accounts. We purchase a significant amount of equipment from the same manufacturers with whom we have distribution agreements. During the year ended December 31, 2015, we purchased approximately 48% from three manufacturers (Grove/Manitowoc, Komatsu, and Genie Industries (Terex)) providing our rental and sales equipment. We believe that while there are alternative sources of supply for the equipment we purchase in each of the principal product categories, termination of one or more of our relationships with any of our major suppliers of equipment could have a material adverse effect on our business, financial condition or results of operation if we were unable to obtain adequate or timely rental and sales equipment. Income per Share Income per common share for the year ended December 31, 2015, 2014 and 2013 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 0.8% 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 as presented for the years ended December 31, 2015 and 2014. The following table sets forth the computation of basic and diluted net income per common share for the years ended December 31, (amounts in thousands, except per share amounts): 2015 2014 2013 Basic net income per share: Net income $ 44,305 $ 55,139 $ 44,140 Weighted average number of common shares outstanding 35,272 35,159 35,041 Net income per common share — basic $ 1.26 $ 1.57 $ 1.26 Diluted net income per share: Net income $ 44,305 $ 55,139 $ 44,140 Weighted average number of common shares outstanding 35,272 35,159 35,041 Effect of dilutive securities: Effect of dilutive stock options 14 23 18 Effect of dilutive non-vested stock 57 67 87 Weighted average number of common shares outstanding — diluted 35,343 35,249 35,146 Net income per common share — diluted $ 1.25 $ 1.56 $ 1.26 Common shares excluded from the denominator as anti-dilutive: Stock options 14 — — Non-vested stock 8 1 1 Stock-Based Compensation We adopted our 2006 Stock-Based Incentive Compensation Plan (the “Stock Incentive Plan”) in January 2006 prior to our initial public offering of common stock. The Stock Incentive Plan was further amended and restated with the approval of our stockholders at the 2006 annual meeting of the stockholders of the Company to provide for the inclusion of non-employee directors as persons eligible to receive awards under the Stock Incentive Plan. Prior to the adoption of the Stock Incentive Plan in January 2006, no share-based payment arrangements existed. The Stock Incentive Plan is administered by the Compensation Committee of our Board of Directors, which selects persons eligible to receive awards and determines the number of shares and/or options subject to each award, the terms, conditions, performance measures, if any, and other provisions of the award. Under the Stock Incentive Plan, we may offer deferred shares or restricted shares of our common stock and grant options, including both incentive stock options and nonqualified stock options, to purchase shares of our common stock. Shares available for future stock-based payment awards under our Stock Incentive Plan were 3,304,449 shares of common stock as of December 31, 2015. We account for our stock-based compensation plan using the fair value recognition provisions of Accounting Standards Codification 718, Stock Compensation Non-vested Stock From time to time, we issue shares of non-vested stock typically with vesting terms of three years. The following table summarizes our non-vested stock activity for the years ended December 31, 2015 and 2014: Number of Shares Weighted Average Grant Date Fair Value Non-vested stock at January 1, 2014 187,867 $ 18.21 Granted 76,427 $ 36.69 Vested (109,237 ) $ 18.70 Forfeited (6,659 ) $ 23.88 Non-vested stock at December 31, 2014 148,398 $ 27.11 Granted 291,529 $ 17.34 Vested (106,342 ) $ 22.24 Forfeited (11,230 ) $ 26.48 Non-vested stock at December 31, 2015 322,355 $ 19.90 As of December 31, 2015, we had unrecognized compensation expense of approximately $5.0 million related to non-vested stock award payments that we expect to be recognized over a weighted average period of 2.5 years. The following table summarizes compensation expense related to stock-based awards included in selling, general and administrative expenses in the accompanying consolidated statements of operations for the years ended December 31, (amounts in thousands): 2015 2014 2013 Compensation expense $ 2,655 $ 2,598 $ 2,618 We receive a tax deduction when non-vested stock vests at a higher value than the value used to recognize compensation expense at the date of grant. In accordance with ASC 718, we are required to report excess tax benefits from the award of equity instruments as financing cash flows. Excess tax benefits will be recorded when a deduction reported for tax return purposes for an award of equity instruments exceeds the cumulative compensation cost for the instruments recognized for financial reporting purposes. As a result of certain realization requirements of ASC 718, approximately $0.8 million of excess tax benefits on stock compensation have not been recorded because those tax benefits have not yet reduced taxes payable. Equity will be increased if and when these excess tax benefits are ultimately realized. Stock Options No stock options were granted during 2015, 2014 or 2013. At December 31, 2015, we had no unrecognized compensation expense related to prior stock option awards. No stock compensation expense was recognized in 2015, 2014 or 2013 related to stock options. The following table represents stock option activity for the years ended December 31, 2015 and 2014: Number of Shares Weighted Average Exercise Price(1) Weighted Average Contractual Life In Years Outstanding options at January 1, 2014 51,000 $ 17.80 Granted — — Exercised — — Canceled, forfeited or expired — — Outstanding options at December 31, 2014 51,000 $ 17.80 1.5 Granted — — Exercised — — Canceled, forfeited or expired — — Outstanding options at December 31, 2015 51,000 $ 17.80 0.5 Options exercisable at December 31, 2015 51,000 $ 17.80 0.5 (1) Weighted average exercise prices shown above include a reduction of $7.00 per share to reflect the equitable adjustment to the exercise prices in connection with the declaration and payment of a special, one-time cash dividend of $7.00 per share in the third quarter of 2012. The closing price of our common stock on December 31, 2015 was $17.48. All options outstanding at December 31, 2015 have grant date fair values (as adjusted for the $7.00 per share reduction in exercise price) which exceed our December 31, 2015 stock price. We receive a tax deduction for stock option exercises during the period in which the options are exercised, generally for the excess of the price at which the stock is sold over the exercise price of the options. Purchases of Company Common Stock Purchases of our common stock are accounted for as treasury stock in the accompanying consolidated balance sheets using the cost method. Repurchased stock is included in authorized shares, but is not included in shares outstanding. Segment Reporting We have determined in accordance with ASC 280, Segment Reporting 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 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers Revenue Recognition In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period In February 2015, FASB issued ASU No. 2015-02, Consolidation. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcements In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In July 2015, the FASB issued ASU 2015-11, Inventory: Simplifying the Measurement of Inventory In September 2015, the FASB issued ASU 2015-16, Business Combinations |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Receivables | (3) Receivables Receivables consisted of the following at December 31, (amounts in thousands): 2015 2014 Trade receivables $ 145,418 $ 158,400 Unbilled rental revenue 5,363 5,772 Income tax receivables 1,273 3,434 Other 3 17 152,057 167,623 Less allowance for doubtful accounts (4,729 ) (3,288 ) Total receivables, net $ 147,328 $ 164,335 We charge off customer account balances when we have exhausted reasonable collection efforts and determined that the likelihood of collection is remote. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | (4) Inventories Inventories consisted of the following at December 31, (amounts in thousands): 2015 2014 New equipment $ 72,064 $ 108,891 Used equipment 5,301 5,772 Parts, supplies and other 19,453 19,324 Total inventories, net $ 96,818 $ 133,987 The above amounts are net of reserves for inventory obsolescence at December 31, 2015 and 2014 totaling $0.9 million and $0.6 million, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | (5) Property and Equipment Net property and equipment consisted of the following at December 31, (amounts in thousands): 2015 2014 Land $ 7,054 $ 7,368 Transportation equipment 82,768 67,268 Building and leasehold improvements 54,094 53,021 Office and computer equipment 53,413 51,542 Machinery and equipment 14,707 12,628 Property under capital leases 3,217 3,217 Construction in progress 2,702 3,240 217,955 198,284 Less accumulated depreciation and amortization (107,170 ) (88,376 ) Total net property and equipment $ 110,785 $ 109,908 Total depreciation and amortization on property and equipment was $24.4 million, $20.5 million and $17.0 million for the years ended December 31, 2015, 2014 and 2013, respectively. Included in the office and computer equipment category above at December 31, 2015 and 2014 is approximately $26.9 million of capitalized costs, including $0.6 million of capitalized interest, related to the implementation of our enterprise resource planning system. Unamortized computer software costs related to the enterprise resource planning system at December 31, 2015 and 2014 was approximately $3.8 million and $7.6 million, respectively, while related amortization expense in 2015 and 2014 totaled approximately $3.8 million each year. The enterprise resource planning system was substantially complete and ready for its intended use on or around January 19, 2010. |
Manufacturer Flooring Plans Pay
Manufacturer Flooring Plans Payable | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Manufacturer Flooring Plans Payable | (6) Manufacturer Flooring Plans Payable Manufacturer flooring plans payable are financing arrangements for inventory and rental equipment. The interest cost incurred on the manufacturer flooring plans ranged between 0% to the prime rate (3.50% at December 31, 2015) plus an applicable margin at December 31, 2015. Certain manufacturer flooring plans provide for a one to twelve-month reduced interest rate term or a deferred payment period. We recognize interest expense based on the effective interest method. We make payments in accordance with the original terms of the financing agreements. However, we routinely sell equipment that is financed under manufacturer flooring plans prior to the original maturity date of the financing agreement. The related manufacturer flooring plan payable is then paid at the time the equipment being financed is sold. The manufacturer flooring plans payable are secured by the equipment being financed. Maturities (based on original financing terms) of the manufacturer flooring plans payable as of December 31, 2015 for each of the next three years ending December 31 are as follows (amounts in thousands): 2016 $ 40,000 2017 21,905 2018 528 Thereafter — Total $ 62,433 |
Accrued Expenses Payable and Ot
Accrued Expenses Payable and Other Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Payables And Accruals [Abstract] | |
Accrued Expenses Payable and Other Liabilities | (7) Accrued Expenses Payable and Other Liabilities Accrued expenses payable and other liabilities consisted of the following at December 31, (amounts in thousands): 2015 2014 Payroll and related liabilities $ 18,250 $ 23,663 Sales, use and property taxes 8,366 7,722 Accrued interest 15,284 15,329 Accrued insurance 4,534 3,931 Deferred revenue 5,556 5,195 Other 3,561 4,708 Total accrued expenses payable and other liabilities $ 55,551 $ 60,548 |
Senior Unsecured Notes
Senior Unsecured Notes | 12 Months Ended |
Dec. 31, 2015 | |
Unsecured Debt [Member] | |
Debt Instrument [Line Items] | |
Senior Secured Credit Facility | (8) Senior Unsecured Notes On August 20, 2012, the Company closed on its offering of $530 million aggregate principal amount of 7% senior notes due 2022 (the “New Notes”) in an unregistered offering. The New Notes and related guarantees were offered in a private placement solely to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or outside the United States to persons other than “U.S. persons” in compliance with Regulation S under the Securities Act. Net proceeds, after deducting $9.3 million of initial purchasers’ discount, to the Company from the sale of the New Notes totaled approximately $520.7 million. The Company used a portion of the net proceeds from the sale of the New Notes to repurchase $158.7 million of its $250 million aggregate principal amount of 8 3/8% Senior Notes due 2016 (the “Old Notes”) in early settlement of a tender offer and consent solicitation (the “Tender Offer”) that the Company launched on August 6, 2012. Holders who tendered their Old Notes prior to the early tender deadline received $1,031.67 per $1,000 principal amount of Old Notes tendered, plus accrued and unpaid interest to the date of repurchase. Having received the requisite consents from the holders of the Old Notes in the Tender Offer, the Company, certain of its subsidiaries and The Bank of New York Mellon Trust Company, N.A., as trustee, executed a supplemental indenture (the “Supplemental Indenture”) amending the indenture relating to the Old Notes. The Supplemental Indenture eliminated substantially all of the restrictive covenants and certain events of default from the indenture relating to the Old Notes. Also on August 20, 2012, the Company satisfied and discharged its obligations under the indenture relating to the Old Notes and issued a notice of redemption for the remaining outstanding principal amount of the Old Notes. On September 19, 2012, the Company redeemed the remaining $91.3 million principal amount outstanding of the Old Notes at a redemption price equal to 102.792% of the aggregate principal amount of the Old Notes to be redeemed, plus accrued and unpaid interest on the Old Notes to the redemption date. The Company used the remaining net proceeds of the offering of the New Notes to pay on September 19, 2012 a special, one-time cash dividend. Actual dividends paid totaled approximately $244.4 million, representing $7.00 per share paid on 34,911,455 outstanding shares of common stock of the Company. Dividends on 232,431 outstanding shares of non-vested common stock totaling an estimated $1.5 million are to be paid upon vesting of those shares pursuant to their respective stock awards’ terms and conditions. In connection with the above transactions, the Company recorded a one-time loss on the early extinguishment of debt in 2012 of approximately $10.2 million, or approximately $6.6 million after-tax, reflecting payment of $5.0 million of tender premiums and $2.6 million to redeem the Old Notes that remained outstanding following completion of the Tender Offer, combined with the write-off of approximately $2.6 million of unamortized deferred financing costs related to the Old Notes. Transaction costs incurred in connection with the offering of the New Notes totaled approximately $1.7 million. The New Notes were issued at par and require semiannual interest payments on March 1st and September 1st of each year, commencing on March 1, 2013. No principal payments are due until maturity (September 1, 2022). The New Notes are redeemable, in whole or in part, at any time on or after September 1, 2017 at specified redemption prices plus accrued and unpaid interest to the date of redemption. We may redeem up to 35% of the aggregate principal amount of the New Notes before September 1, 2015 with the net cash proceeds from certain equity offerings. We may also redeem the New Notes prior to September 1, 2017 at a specified “make-whole” redemption price plus accrued and unpaid interest to the date of redemption. The New Notes rank equally in right of payment to all of our existing and future senior indebtedness and rank senior to any of our subordinated indebtedness. The New Notes are unconditionally guaranteed on a senior unsecured basis by all of our current and future significant domestic restricted subsidiaries. In addition, the New Notes are effectively subordinated to all of our and the guarantors’ existing and future secured indebtedness, including the Credit Facility, to the extent of the assets securing such indebtedness, and are structurally subordinated to all of the liabilities and preferred stock of any of our subsidiaries that do not guarantee the New Notes. If we experience a change of control, we will be required to offer to purchase the New Notes at a repurchase price equal to 101% of the principal amount, plus accrued and unpaid interest to the date of repurchase. The indenture governing the New Notes contains certain covenants that, among other things, limit our ability and the ability of our restricted subsidiaries to: (i) incur additional indebtedness, assume a guarantee or issue preferred stock; (ii) pay dividends or make other equity distributions or payments to or affecting our subsidiaries; (iii) purchase or redeem our capital stock; (iv) make certain investments; (v) create liens; (vi) sell or dispose of assets or engage in mergers or consolidations; (vii) engage in certain transactions with subsidiaries or affiliates; (viii) enter into sale-leaseback transactions; and (ix) engage in certain business activities. Each of the covenants is subject to exceptions and qualifications. As of December 31, 2015, we were in compliance with these covenants. On February 4, 2013, the Company closed on its offering of $100 million aggregate principal amount of 7% senior notes due 2022 (the “Add-on Notes”) in an unregistered offering through a private placement. The Add-on Notes were priced at 108.5% of the principal amount. Net proceeds from the offering of the Add-on Notes, including accrued interest from August 20, 2012, totaled approximately $110.4 million. The Company used the proceeds from the offering to repay indebtedness outstanding under its Credit Facility and for the payment of fees and expenses related to the offering. The Add-on Notes bear interest at a rate of 7% per year and mature on September 1, 2022. Interest on the Add-on Notes accrues from August 20, 2012 and is payable on each March 1 and September 1, commencing March 1, 2013. No principal payments are due until maturity. The Add-on Notes are redeemable, in whole or in part, at any time on or after September 1, 2017 at specified redemption prices plus accrued and unpaid interest to the date of redemption. We may redeem the Add-on Notes prior to September 1, 2017 at a specified “make-whole” redemption price plus accrued and unpaid interest to the date of redemption. The Add-on Notes are our senior unsecured obligations and rank equally in right of payment to all of our existing and future senior indebtedness and rank senior to any of our subordinated indebtedness. The Add-on Notes are unconditionally guaranteed on a senior unsecured basis by all of our current and future significant domestic restricted subsidiaries. In addition, the Add-on Notes are effectively subordinated to all of our and the guarantors’ existing and future secured indebtedness, including the Credit Facility, to the extent of the assets securing such indebtedness, and are structurally subordinated to all of the liabilities and preferred stock of any of our subsidiaries that do not guarantee the Add-on Notes. The Add-on Notes were issued as additional notes under an indenture dated as of August 20, 2012 pursuant to which the Company previously issued the New Notes as described above. The Add-on Notes have identical terms to, rank equally with, and form a part of a single class of securities with the New Notes. If we experience a change of control, we will be required to offer to purchase the Add-on Notes at a repurchase price equal to 101% of the principal amount, plus accrued and unpaid interest to the date of repurchase. On April 1, 2013, the Company launched an offer to exchange the New and Add-on Notes and guarantees for registered, publicly tradable notes and guarantees that have terms identical in all material respects to the New and Add-on Notes (except that the exchange notes will not contain any transfer restrictions). This exchange offer closed on April 30, 2013. The following table reconciles our Senior Secured Notes to our 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 December 31, 2015 1,055 Amortization of note premium through December 31, 2015 (887 ) Balance at December 31, 2015 $ 628,882 |
Senior Secured Credit Facility
Senior Secured Credit Facility | 12 Months Ended |
Dec. 31, 2015 | |
Secured Debt [Member] | |
Senior Secured Credit Facility | (9) 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 December 31, 2015, we were in compliance with our financial covenants under the Credit Facility. At December 31, 2015, the Company could borrow up to an additional $410.4 million and remain in compliance with the debt covenants under the Company’s Credit Facility. At December 31, 2015, the interest rate on the Credit Facility was based on a 3.50% U.S. Prime Rate plus 100 basis points and LIBOR plus 200 basis points. The weighted average interest rate at December 31, 2015 was approximately 2.6%. At February 18, 2016, we had $419.0 million of available borrowings under our Credit Facility, net of $7.7 million of outstanding letters of credit. |
Capital Lease Obligations
Capital Lease Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Capital Lease Obligations | ( 10) Capital Lease Obligations As of December 31, 2015, we had two capital lease obligations, expiring in 2022 and 2029, respectively. Future minimum capital lease payments, in the aggregate, existing at December 31, 2015 for each of the next five years ending December 31 and thereafter are as follows (amounts in thousands): 2016 $ 333 2017 333 2018 333 2019 333 2020 333 Thereafter 963 Total minimum lease payments 2,628 Less: amount representing interest (721 ) Present value of minimum lease payments $ 1,907 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (11) Income Taxes Our income tax provision for the years ended December 31, 2015, 2014 and 2013, consists of the following (amounts in thousands): Current Deferred Total Year ended December 31, 2015: U.S. Federal $ 85 $ 25,206 $ 25,291 State 634 5,446 6,080 $ 719 $ 30,652 $ 31,371 Year ended December 31, 2014: U.S. Federal $ 576 $ 30,753 $ 31,329 State 151 6,065 6,216 $ 727 $ 36,818 $ 37,545 Year ended December 31, 2013: U.S. Federal $ 1,262 $ 16,306 $ 17,568 State 1,860 1,579 3,439 $ 3,122 $ 17,885 $ 21,007 Significant components of our deferred income tax assets and liabilities as of December 31 are as follows (amounts in thousands): 2015 2014 Deferred tax assets: Accounts receivable $ 1,808 $ 1,246 Inventories 364 252 Net operating losses 25,881 11,978 AMT and tax credits 3,432 3,210 Sec 263A costs 1,082 1,491 Accrued liabilities 4,419 4,279 Deferred compensation 1,345 2,089 Accrued interest 633 606 Stock-based compensation 521 304 Goodwill and intangible assets 1,359 2,659 Other assets 247 91 41,091 28,205 Deferred tax liabilities: Property and equipment (195,349 ) (151,703 ) Investments (1,628 ) (1,612 ) (196,977 ) (153,315 ) Net deferred tax liabilities $ (155,886 ) $ (125,110 ) The reconciliation between income taxes computed using the statutory federal income tax rate of 35% to the actual income tax expense (benefit) is below for the years ended December 31 (amounts in thousands): 2015 2014 2013 Computed tax at statutory rates $ 26,487 $ 32,439 $ 22,801 Permanent items - other 953 1,069 716 Permanent items - excess of tax deductible goodwill — — (4,673 ) State income tax, net of federal tax effect 3,892 4,046 2,651 Increase in uncertain tax positions 39 (9 ) (488 ) Other — — — $ 31,371 $ 37,545 $ 21,007 At December 31, 2015, we had available federal net operating loss carry forwards of approximately $98.0 million, which expire in varying amounts from 2029 through 2035. We also had federal alternative minimum tax credit carry forwards at December 31, 2015 of approximately $3.0 million which do not expire and $0.3 million general business credit carry forwards that expire in varying amounts from 2026 and 2029, and state income tax credits of $0.1 million that expire in varying amounts beginning in 2018. Management has concluded that it is more likely than not that the deferred tax assets are fully realizable through future reversals of existing taxable temporary differences and future taxable income. Therefore, a valuation allowance is not required to reduce the deferred tax assets as of December 31, 2015. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follow (in thousands): 2015 2014 Gross unrecognized tax benefits at January 1 $ 5,962 $ 5,943 Increases in tax positions taken in prior years 73 42 Decreases in tax positions taken in prior years — — Increases in tax positions taken in current year — — Decreases for tax positions taken in current year — — Settlements with taxing authorities — — Lapse in statute of limitations — (23 ) Gross unrecognized tax benefits at December 31 $ 6,035 $ 5,962 The gross amount of unrecognized tax benefits as of December 31, 2015 includes approximately $0.3 million of net unrecognized tax benefits that, if recognized, would affect the effective income tax rate. Consistent with our historical financial reporting, to the extent we incur interest income, interest expense, or penalties related to unrecognized income tax benefits, they are recorded in “Other net income or expense.” At this time, we do not expect to recognize significant increases or decreases in unrecognized tax benefits during the next twelve months. Our U.S. federal tax returns for 2012 and subsequent years remain subject to examination by tax authorities. We are also subject to examination in various state jurisdictions for 2011 and subsequent years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (12) Commitments and Contingencies Operating Leases As of December 31, 2015, we lease certain real estate related to our branch facilities as well as certain office equipment under non-cancelable operating lease agreements expiring at various dates through 2030. Our real estate leases provide for varying terms, including customary renewal options and base rental escalation clauses, for which the related rent expense is accounted for on a straight-line basis during the terms of the respective leases. Additionally, certain real estate leases may require us to pay maintenance, insurance, taxes and other expenses in addition to the stated rental payments. Rent expense on property leases and equipment leases under non-cancelable operating lease agreements for the years ended December 31, 2015, 2014 and 2013 amounted to approximately $15.5 million, $13.0 million and $12.4 million, respectively. Future minimum operating lease payments existing at December 31, 2015 for each of the next five years ending December 31 and thereafter are as follows (amounts in thousands): 2016 $ 13,717 2017 14,245 2018 12,748 2019 10,633 2020 10,307 Thereafter 73,361 $ 135,011 Legal Matters We are also involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these various matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity. Letters of Credit The Company had outstanding letters of credit issued under its Credit Facility totaling $7.2 million as of December 31, 2015 and 2014, respectively. The 2015 letter of credit expired in January 2016 and was renewed for $7.2 million for a one-year period expiring in January 2017. The Company also issued an additional letter of credit in January 2016 for $0.5 million for a one-year period expiring in January 2017. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | (13) Employee Benefit Plan We offer substantially all of our employees’ participation in a qualified 401(k)/profit-sharing plan in which we match employee contributions up to predetermined limits for qualified employees as defined by the plan. For the years ended December 31, 2015, 2014 and 2013, we contributed to the plan, net of employee forfeitures, $2.2 million, $1.7 million and $1.7 million, respectively. |
Deferred Compensation Plans
Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Deferred Compensation Plans | (14) Deferred Compensation Plans In 2001, we assumed in a business combination nonqualified employee deferred compensation plans under which certain employees had previously elected to defer a portion of their annual compensation. Upon assumption of the plans, the plans were amended to not allow further participant compensation deferrals. Compensation previously deferred under the plans is payable upon the termination, disability or death of the participants. At December 31, 2014, we had obligations remaining under one deferred compensation plan. All other plans have terminated pursuant to the provisions of each respective plan. The remaining plan accumulates interest each year at a bank’s prime rate in effect at the beginning of January of each year. This rate remains constant throughout the year. The effective rate for the 2015 calendar plan year was 3.25%. The aggregate deferred compensation payable at December 31, 2015 and December 31, 2014 was approximately $2.2 million and $2.1 million, respectively. Included in these amounts at December 31, 2015 and 2014 was accrued interest of $1.6 million and $1.6 million, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (15) Related Party Transactions John M. Engquist, our Chief Executive Officer, has a 50.0% ownership interest in T&J Partnership from which we lease our Shreveport, Louisiana facility. Mr. Engquist’s mother beneficially owns 50% of the entity. In 2015, 2014 and 2013, we paid T&J Partnership a total of approximately $0.2 million each year in lease payments. During the year ended December 31, 2013, we were party to aircraft charter arrangements with Gulf Wide Aviation, in which Mr. Engquist has a 62.5% ownership interest. Mr. Engquist’s mother and sister hold interests of 25% and 12.5%, respectively, in this entity. Under those arrangements, we paid an hourly rate plus fuel and expenses to Gulf Wide Aviation as well as a management service fee to an unrelated third party for the use of the aircraft by various members of our management. In the year ended December 31, 2013, our payments in respect of charter (and related) costs to Gulf Wide Aviation totaled approximately $0.2 million. During the third quarter of 2013, the Company ceased operating under the Gulf Wide Aviation charter arrangement in accordance with the terms thereof and began using charter services from an unaffiliated third party. Mr. Engquist has a 30.0% ownership interest in Perkins-McKenzie Insurance Agency, Inc. (“Perkins-McKenzie”), an insurance brokerage firm. Mr. Engquist’s mother and sister have a 12.0% and 6.0% interest, respectively, in Perkins-McKenzie. Perkins-McKenzie brokers a substantial portion of our commercial liability insurance. As the broker, Perkins-McKenzie receives from our insurance provider as a commission a portion of the premiums we pay to the insurance provider. Commissions paid to Perkins-McKenzie on our behalf as insurance broker totaled approximately $0.9 million, $0.8 million and $0.7 million for the years ended December 31, 2015, 2014 and 2013, respectively. We purchase products and services from, and sell products and services to, B-C Equipment Sales, Inc., in which Mr. Engquist has a 50% ownership interest. In each of the years ended December 31, 2015, 2014 and 2013, our purchases totaled approximately $0.2 million, $0.2 million and $0.2 million, respectively, and our sales to B-C Equipment Sales, Inc. totaled approximately $0.1 million, $0.1 million and $0.2 million, respectively. |
Summarized Quarterly Financial
Summarized Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Quarterly Financial Data (Unaudited) | (16) Summarized Quarterly Financial Data (Unaudited) The following is a summary of our unaudited quarterly financial results of operations for the years ended December 31, 2015 and 2014 (amounts in thousands, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2015: Total revenues $ 227,410 $ 262,360 $ 276,853 $ 273,208 Income from operations 23,332 32,962 38,472 33,477 Income before provision for income taxes 10,241 19,441 25,492 20,502 Net income 6,086 11,480 14,772 11,967 Basic net income per common share (1) 0.17 0.33 0.42 0.34 Diluted net income per common share (1) 0.17 0.33 0.42 0.34 First Quarter Second Quarter Third Quarter Fourth Quarter 2014: Total revenues $ 237,229 $ 280,378 $ 275,044 $ 297,761 Income from operations 24,591 37,942 39,993 41,218 Income before provision for income taxes 12,247 25,364 27,115 27,958 Net income 7,436 15,726 15,300 16,677 Basic net income per common share (1) 0.21 0.45 0.43 0.47 Diluted net income per common share (1) 0.21 0.45 0.43 0.47 (1) Because of the method used in calculating per share data, the summation of quarterly per share data may not necessarily total to the per share data computed for the entire year. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | (17) 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 our reportable segments. We do not compile discrete financial information by our segments other than the information presented below. The following table presents information about our reportable segments (amounts in thousands): Years Ended December 31, 2015 2014 2013 Segment Revenues: Equipment rentals $ 443,024 $ 404,110 $ 338,935 New equipment sales 238,172 328,036 294,768 Used equipment sales 118,338 123,173 141,560 Parts sales 111,133 113,732 103,174 Services revenues 63,954 61,292 56,694 Total segmented revenues 974,621 1,030,343 935,131 Non-Segmented revenues 65,210 60,069 52,625 Total revenues $ 1,039,831 $ 1,090,412 $ 987,756 Segment Gross Profit: Equipment rentals $ 208,985 $ 196,139 $ 161,649 New equipment sales 25,937 38,510 31,881 Used equipment sales 37,000 38,237 40,867 Parts sales 30,303 32,626 28,933 Services revenues 42,261 39,785 35,660 Total gross profit from segmented revenues 344,486 345,297 298,990 Non-Segmented gross profit 1,246 2,641 2,846 Total gross profit $ 345,732 $ 347,938 $ 301,836 December 31, 2015 2014 Segment identified assets: Equipment sales $ 77,365 $ 114,664 Equipment rentals 893,393 889,706 Parts and service 19,453 19,324 Total segment identified assets 990,211 1,023,694 Non-Segmented identified assets 310,876 335,110 Total assets $ 1,301,087 $ 1,358,804 The Company operates primarily in the United States and our sales to international customers for the years ended December 31, 2015, 2014 and 2013 were 0.6%, 0.3% and 1.2%, respectively, of total revenues for the periods presented. No one customer accounted for more than 10% of our revenues on an overall or segmented basis for any of the periods presented. |
Consolidating Financial Informa
Consolidating Financial Information of Guarantor Subsidiaries | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Consolidating Financial Information of Guarantor Subsidiaries | (18) 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 December 31, 2015 H&E Equipment Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Assets: Cash $ 7,159 $ — $ — $ 7,159 Receivables, net 124,157 23,171 — 147,328 Inventories, net 88,831 7,987 — 96,818 Prepaid expenses and other assets 9,909 145 — 10,054 Rental equipment, net 750,773 142,620 — 893,393 Property and equipment, net 99,342 11,443 — 110,785 Deferred financing costs, net 4,353 — — 4,353 Investment in guarantor subsidiaries 211,542 — (211,542 ) — Goodwill 1,671 29,526 — 31,197 Total assets $ 1,297,737 $ 214,892 $ (211,542 ) $ 1,301,087 Liabilities and Stockholders’ Equity: Amount due on senior secured credit facility $ 184,857 $ — $ — $ 184,857 Accounts payable 63,959 2,818 — 66,777 Manufacturer flooring plans payable 62,433 — — 62,433 Dividends payable 62 (30 ) — 32 Accrued expenses payable and other liabilities 56,896 (1,345 ) — 55,551 Senior unsecured notes 628,882 — — 628,882 Capital leases payable — 1,907 — 1,907 Deferred income taxes 155,886 — — 155,886 Deferred compensation payable 2,174 — — 2,174 Total liabilities 1,155,149 3,350 — 1,158,499 Stockholders’ equity 142,588 211,542 (211,542 ) 142,588 Total liabilities and stockholders’ equity $ 1,297,737 $ 214,892 $ (211,542 ) $ 1,301,087 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2014 H&E Equipment Services Guarantor Subsidiaries Elimination Consolidated (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 Year Ended December 31, 2015 H&E Equipment Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 366,160 $ 76,864 $ - $ 443,024 New equipment sales 213,476 24,696 - 238,172 Used equipment sales 96,114 22,224 - 118,338 Parts sales 96,743 14,390 - 111,133 Services revenues 54,483 9,471 - 63,954 Other 53,051 12,159 - 65,210 Total revenues 880,027 159,804 - 1,039,831 Cost of revenues: Rental depreciation 135,511 26,578 - 162,089 Rental expense 59,384 12,566 - 71,950 New equipment sales 190,013 22,222 - 212,235 Used equipment sales 66,888 14,450 - 81,338 Parts sales 70,555 10,275 - 80,830 Services revenues 18,689 3,004 - 21,693 Other 51,763 12,201 - 63,964 Total cost of revenues 592,803 101,296 - 694,099 Gross profit (loss): Equipment rentals 171,265 37,720 - 208,985 New equipment sales 23,463 2,474 - 25,937 Used equipment sales 29,226 7,774 - 37,000 Parts sales 26,188 4,115 - 30,303 Services revenues 35,794 6,467 - 42,261 Other 1,288 (42 ) - 1,246 Gross profit 287,224 58,508 - 345,732 Selling, general and administrative expenses 183,235 36,991 - 220,226 Equity in earnings of guarantor subsidiaries 8,428 - (8,428 ) - Gain from sales of property and equipment, net 2,255 482 - 2,737 Income from operations 114,672 21,999 (8,428 ) 128,243 Other income (expense): Interest expense (40,303 ) (13,727 ) - (54,030 ) Other, net 1,307 156 - 1,463 Total other expense, net (38,996 ) (13,571 ) - (52,567 ) Income before income taxes 75,676 8,428 (8,428 ) 75,676 Income tax expense 31,371 - - 31,371 Net income $ 44,305 $ 8,428 $ (8,428 ) $ 44,305 CONDENSED CONSOLIDATING STATEMENT OF INCOME Year Ended December 31, 2014 H&E Equipment Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 338,708 $ 65,402 $ — $ 404,110 New equipment sales 278,869 49,167 — 328,036 Used equipment sales 99,864 23,309 — 123,173 Parts sales 99,013 14,719 — 113,732 Services revenues 52,227 9,065 — 61,292 Other 49,510 10,559 — 60,069 Total revenues 918,191 172,221 — 1,090,412 Cost of revenues: Rental depreciation 122,763 23,292 — 146,055 Rental expense 50,832 11,084 — 61,916 New equipment sales 245,423 44,103 — 289,526 Used equipment sales 68,739 16,197 — 84,936 Parts sales 70,769 10,337 — 81,106 Services revenues 18,231 3,276 — 21,507 Other 46,851 10,577 — 57,428 Total cost of revenues 623,608 118,866 — 742,474 Gross profit (loss): Equipment rentals 165,113 31,026 — 196,139 New equipment sales 33,446 5,064 — 38,510 Used equipment sales 31,125 7,112 — 38,237 Parts sales 28,244 4,382 — 32,626 Services revenues 33,996 5,789 — 39,785 Other 2,659 (18 ) — 2,641 Gross profit 294,583 53,355 — 347,938 Selling, general and administrative expenses 170,449 36,031 — 206,480 Equity in earnings of guarantor subsidiaries 5,711 — (5,711 ) — Gain from sales of property and equipment, net 1,870 416 — 2,286 Income from operations 131,715 17,740 (5,711 ) 143,744 Other income (expense): Interest expense (40,147 ) (12,206 ) — (52,353 ) Other, net 1,116 177 — 1,293 Total other expense, net (39,031 ) (12,029 ) — (51,060 ) Income before income taxes 92,684 5,711 (5,711 ) 92,684 Income tax expense 37,545 — — 37,545 Net income $ 55,139 $ 5,711 $ (5,711 ) $ 55,139 CONDENSED CONSOLIDATING STATEMENT OF INCOME Year Ended December 31, 2013 H&E Equipment Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 280,700 $ 58,235 $ — $ 338,935 New equipment sales 251,911 42,857 — 294,768 Used equipment sales 119,351 22,209 — 141,560 Parts sales 88,994 14,180 — 103,174 Services revenues 49,022 7,672 — 56,694 Other 43,341 9,284 — 52,625 Total revenues 833,319 154,437 — 987,756 Cost of revenues: Rental depreciation 100,627 21,321 — 121,948 Rental expense 45,186 10,152 — 55,338 New equipment sales 224,051 38,836 — 262,887 Used equipment sales 84,881 15,812 — 100,693 Parts sales 64,167 10,074 — 74,241 Services revenues 18,272 2,762 — 21,034 Other 40,298 9,481 — 49,779 Total cost of revenues 577,482 108,438 — 685,920 Gross profit (loss): Equipment rentals 134,887 26,762 — 161,649 New equipment sales 27,860 4,021 — 31,881 Used equipment sales 34,470 6,397 — 40,867 Parts sales 24,827 4,106 — 28,933 Services revenues 30,750 4,910 — 35,660 Other 3,043 (197 ) — 2,846 Gross profit 255,837 45,999 — 301,836 Selling, general and administrative expenses 155,881 33,181 — 189,062 Equity in earnings of guarantor subsidiaries 2,497 — (2,497 ) — Gain from sales of property and equipment, net 2,220 329 — 2,549 Income from operations 104,673 13,147 (2,497 ) 115,323 Other income (expense): Interest expense (40,662 ) (10,742 ) — (51,404 ) Other, net 1,136 92 — 1,228 Total other expense, net (39,526 ) (10,650 ) — (50,176 ) Income before income taxes 65,147 2,497 (2,497 ) 65,147 Income tax expense 21,007 — — 21,007 Net income $ 44,140 $ 2,497 $ (2,497 ) $ 44,140 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2015 H&E Equipment Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 44,305 $ 8,428 $ (8,428 ) $ 44,305 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 21,443 2,925 — 24,368 Depreciation on rental equipment 135,511 26,578 — 162,089 Amortization of deferred financing costs 1,036 — — 1,036 Accretion of note discount, net of premium amortization 168 — — 168 Provision for losses on accounts receivable 3,223 218 — 3,441 Provision for inventory obsolescence 295 — — 295 Provision for deferred income taxes 30,776 — — 30,776 Stock-based compensation expense 2,655 — — 2,655 Gain from sales of property and equipment, net (2,255 ) (482 ) — (2,737 ) Gain from sales of rental equipment, net (27,732 ) (7,402 ) — (35,134 ) Excess tax deficiency from stock-based awards (125 ) — — (125 ) Equity in earnings of guarantor subsidiaries (8,428 ) — 8,428 - Changes in operating assets and liabilities: - Receivables, net 9,817 3,749 — 13,566 Inventories, net (12,168 ) (2,349 ) — (14,517 ) Prepaid expenses and other assets (882 ) (26 ) — (908 ) Accounts payable 13,298 138 — 13,436 Manufacturer flooring plans payable (31,167 ) — — (31,167 ) Accrued expenses payable and other liabilities (4,604 ) (391 ) — (4,995 ) Deferred compensation payable 68 — — 68 Net cash provided by operating activities 175,234 31,386 - 206,620 Cash flows from investing activities: Purchases of property and equipment (23,989 ) (2,808 ) — (26,797 ) Purchases of rental equipment (143,840 ) (34,932 ) — (178,772 ) Proceeds from sales of property and equipment 3,738 551 — 4,289 Proceeds from sales of rental equipment 80,093 19,428 — 99,521 Investment in subsidiaries 13,426 — (13,426 ) - Net cash used in investing activities (70,572 ) (17,761 ) (13,426 ) (101,759 ) Cash flows from financing activities: Purchases of treasury stock (470 ) — — (470 ) Dividends paid (37,107 ) (7 ) — (37,114 ) Borrowing on senior secured credit facility 982,961 — — 982,961 Payments on senior secured credit facility (1,058,023 ) — — (1,058,023 ) Payments of deferred financing cost (725 ) — — (725 ) Payments on capital lease obligations — (192 ) — (192 ) Capital contributions — (13,426 ) 13,426 - Net cash used in financing activities (113,364 ) (13,625 ) 13,426 (113,563 ) Net decrease in cash (8,702 ) - - (8,702 ) Cash, beginning of year 15,861 — — 15,861 Cash, end of year $ 7,159 $ - $ - $ 7,159 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2014 H&E Equipment Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 55,139 $ 5,711 $ (5,711 ) $ 55,139 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 18,025 2,434 — 20,459 Depreciation on rental equipment 122,763 23,292 — 146,055 Amortization of deferred financing costs 934 — — 934 Accretion of note discount, net of premium amortization 168 — — 168 Provision for losses on accounts receivable 2,428 431 — 2,859 Provision for inventory obsolescence 159 — — 159 Provision for deferred income taxes 36,819 — — 36,819 Stock-based compensation expense 2,598 — — 2,598 Gain from sales of property and equipment, net (1,870 ) (416 ) — (2,286 ) Gain from sales of rental equipment, net (28,750 ) (7,019 ) — (35,769 ) Excess tax benefit from stock-based awards (24 ) — — (24 ) Equity in earnings of guarantor subsidiaries (5,711 ) — 5,711 — Changes in operating assets and liabilities: Receivables, net (25,100 ) (10,124 ) — (35,224 ) Inventories, net (61,693 ) (5,030 ) — (66,723 ) Prepaid expenses and other assets (3,174 ) 52 — (3,122 ) Accounts payable (10,126 ) (4,312 ) — (14,438 ) Manufacturer flooring plans payable 44,538 — — 44,538 Accrued expenses payable and other liabilities 7,437 (1,327 ) — 6,110 Deferred compensation payable 66 — — 66 Net cash provided by operating activities 154,626 3,692 — 158,318 Cash flows from investing activities: Purchases of property and equipment (30,849 ) (2,386 ) — (33,235 ) Purchases of rental equipment (299,387 ) (69,104 ) — (368,491 ) Proceeds from sales of property and equipment 2,241 1,416 — 3,657 Proceeds from sales of rental equipment 79,991 21,435 — 101,426 Investment in subsidiaries (45,126 ) — 45,126 — Net cash used in investing activities (293,130 ) (48,639 ) 45,126 (296,643 ) Cash flows from financing activities: Purchases of treasury stock (1,467 ) — — (1,467 ) Dividends paid (18,325 ) — — (18,325 ) Borrowing on senior secured credit facility 1,235,630 — — 1,235,630 Payments on senior secured credit facility (1,078,171 ) — — (1,078,171 ) Payments of deferred financing cost (909 ) — — (909 ) Payments on capital lease obligations — (179 ) — (179 ) Capital contributions — 45,126 (45,126 ) — Net cash provided by financing activities 136,758 44,947 (45,126 ) 136,579 Net decrease in cash (1,746 ) — — (1,746 ) Cash, beginning of year 17,607 — — 17,607 Cash, end of year $ 15,861 $ — $ — $ 15,861 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2013 H&E Equipment Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 44,140 $ 2,497 $ (2,497 ) $ 44,140 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 14,871 2,084 — 16,955 Depreciation on rental equipment 100,627 21,321 — 121,948 Amortization of deferred financing costs 1,094 — — 1,094 Accretion of note discount, net of premium amortization 231 — — 231 Provision for losses on accounts receivable 2,568 626 — 3,194 Provision for inventory obsolescence 220 — — 220 Provision for deferred income taxes 17,009 — — 17,009 Stock-based compensation expense 2,618 — — 2,618 Gain from sales of property and equipment, net (2,220 ) (329 ) — (2,549 ) Gain from sales of rental equipment, net (32,235 ) (6,340 ) — (38,575 ) Tax deficiency from stock-based awards (307 ) — — (307 ) Writedown of goodwill for tax-deductible goodwill in excess of book goodwill 877 — — 877 Equity in earnings of guarantor subsidiaries (2,497 ) — 2,497 — Changes in operating assets and liabilities: Receivables, net 8,252 (1,749 ) — 6,503 Inventories, net (62,300 ) (5,454 ) — (67,754 ) Prepaid expenses and other assets (744 ) (71 ) — (815 ) Accounts payable 26,000 5,659 — 31,659 Manufacturer flooring plans payable (1,327 ) (450 ) — (1,777 ) Accrued expenses payable and other liabilities 3,916 — — 3,916 Deferred compensation payable 65 — — 65 Net cash provided by operating activities 120,858 17,794 — 138,652 Cash flows from investing activities: Purchases of property and equipment (26,576 ) (2,903 ) — (29,479 ) Purchases of rental equipment (229,952 ) (37,513 ) — (267,465 ) Proceeds from sales of property and equipment 2,363 396 — 2,759 Proceeds from sales of rental equipment 95,378 19,217 — 114,595 Investment in subsidiaries (3,201 ) — 3,201 — Net cash used in investing activities (161,988 ) (20,803 ) 3,201 (179,590 ) Cash flows from financing activities: Excess tax benefit from stock-based awards 307 — — 307 Purchases of treasury stock (890 ) — — (890 ) Dividends paid (832 ) (23 ) — (855 ) Proceeds from issuance of senior unsecured notes 107,250 — — 107,250 Borrowing on senior secured credit facility 1,058,990 — — 1,058,990 Payments on senior secured credit facility (1,114,249 ) — — (1,114,249 ) Payments of deferred financing cost (733 ) — — (733 ) Payments on capital lease obligations — (169 ) — (169 ) Capital contributions — 3,201 (3,201 ) — Net cash provided by financing activities 49,843 3,009 (3,201 ) 49,651 Net increase in cash 8,713 — — 8,713 Cash, beginning of year 8,894 — — 8,894 Cash, end of year $ 17,607 $ — $ — $ 17,607 |
Validation And Qualifying Accou
Validation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013 Description Balance at Beginning of Year Additions Charged to Costs and Expenses Recoveries (Deductions) Balance at End of Year Year Ended December 31, 2015 Allowance for doubtful accounts receivable $ 3,288 $ 3,441 $ (2,000 ) $ 4,729 Allowance for inventory obsolescence 647 295 (8 ) 934 $ 3,935 $ 3,736 $ (2,008 ) $ 5,663 Year Ended December 31, 2014 Allowance for doubtful accounts receivable $ 3,651 $ 2,859 $ (3,222 ) $ 3,288 Allowance for inventory obsolescence 647 159 (159 ) 647 $ 4,298 $ 3,018 $ (3,381 ) $ 3,935 Year Ended December 31, 2013 Allowance for doubtful accounts receivable $ 4,593 $ 3,194 $ (4,136 ) $ 3,651 Allowance for inventory obsolescence 618 220 (191 ) 647 $ 5,211 $ 3,414 $ (4,327 ) $ 4,298 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation Our 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.” All significant intercompany accounts and transactions have been eliminated in these consolidated financial statements. Business combinations are included in the 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 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. |
Revenue Recognition | Revenue Recognition Pursuant to Staff Accounting Bulletin No. 104 (“SAB 104”), the SEC Staff believes that revenue generally is realized or realizable and earned when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectibility is reasonably assured. Consistent with SAB 104, our policy recognizes revenue from equipment rentals in the period earned on a straight-line basis, over the contract term, regardless of the timing of the billing to customers. A rental contract term can be daily, weekly or monthly. Because the term of the contracts can extend across multiple financial reporting periods, we record unbilled rental revenue and deferred revenue at the end of reporting periods so that rental revenues earned are appropriately stated in the periods presented. Revenue from the sale of new and used equipment and parts is recognized at the time of delivery to, or pick-up by, the customer and when all obligations under the sales contract have been fulfilled, risk of ownership has been transferred and collectibility is reasonably assured. Services revenue is recognized at the time the services are rendered. Other revenues consist primarily of billings to customers for rental equipment delivery and damage waiver charges and are recognized at the time an invoice is generated and after the service has been provided. See also the “Recent Accounting Pronouncements” discussion below for new accounting guidance related to revenue from contracts with customers. |
Inventories | Inventories New and used equipment inventories are stated at the lower of cost or market, with cost determined by specific-identification. Inventories of parts and supplies are stated at the lower of the average cost or market. See also the “Recent Accounting Pronouncements” discussion below for new accounting guidance related to measurement of inventories. |
Long-lived Assets and Goodwill | Long-lived Assets and Goodwill Rental Equipment The rental equipment we purchase is stated at cost and is depreciated over the estimated useful lives of the equipment using the straight-line method. Estimated useful lives vary based upon type of equipment. Generally, we depreciate cranes and aerial work platforms over a ten year estimated useful life, earthmoving equipment over a five year estimated useful life with a 25% salvage value, and industrial lift trucks over a seven year estimated useful life. Attachments and other smaller type equipment are depreciated generally over a three year estimated useful life. We periodically evaluate the appropriateness of remaining depreciable lives and any salvage value assigned to rental equipment. Ordinary repair and maintenance costs and property taxes are charged to operations as incurred. However, expenditures for additions or improvements that significantly extend the useful life of the asset are capitalized in the period incurred. When rental equipment is sold or disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gains or losses are included in income. We receive individual offers for fleet on a continual basis, at which time we perform an analysis on whether or not to accept the offer. The rental equipment is not transferred to inventory under the held for sale model as the equipment is used to generate revenues until the equipment is sold. Property and Equipment Property and equipment are recorded at cost and are depreciated over the assets’ estimated useful lives using the straight-line method. Ordinary repair and maintenance costs are charged to operations as incurred. However, expenditures for additions or improvements that significantly extend the useful life of the asset are capitalized in the period incurred. At the time assets are sold or disposed of, the cost and accumulated depreciation are removed from their respective accounts and the related gains or losses are reflected in income. We capitalize interest on qualified construction projects. Costs associated with internally developed software are accounted for in accordance with FASB ASC 350-40, Internal-Use Software We periodically evaluate the appropriateness of remaining depreciable lives assigned to property and equipment. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or the remaining term of the lease, whichever is shorter. Generally, we assign the following estimated useful lives to these categories: Category Estimated Useful Life Transportation equipment 5 years Buildings 39 years Office equipment 5 years Computer equipment 3 years Machinery and equipment 7 years In accordance with ASC 360, Property, Plant and Equipment Goodwill We have made acquisitions in the past that included the recognition of goodwill, which was determined based upon previous accounting principles. Pursuant to ASC 350, Intangibles-Goodwill and Other We evaluate goodwill for impairment at least annually, or more frequently if triggering events occur or other impairment indicators arise which might impair recoverability. Impairment of goodwill is evaluated at the reporting unit level. A reporting unit is defined as an operating segment (i.e. before aggregation or combination), or one level below an operating segment (i.e. a component). A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. We have identified two components within our Rental operating segment and have determined that each of our other operating segments (New, Used, Parts and Service) represent a reporting unit, resulting in six total reporting units. Accounting Standards Codification Topic 350 (“ASC 350”) Intangibles-Goodwill and Other Based upon improving macroeconomic conditions, positive trends within our industry and market and continuing positive operating results in comparison to prior periods and our internal forecasts, as well as consideration of the cushion between the reporting unit’s fair value and carrying value from our most recent quantitative analysis, we determined that it is more likely than not that the fair value of our reporting units exceeds their respective carrying values at the October 1, 2015, 2014 and 2013 valuation dates and there was no goodwill impairment at October 1, 2015, 2014 and 2013. To determine if any of our reporting units are impaired under the prescribed two-step goodwill test, we must determine whether the fair value of each of our reporting units is greater than their respective carrying value. If the fair value of a reporting unit is less than its carrying value, then the implied fair value of goodwill must be calculated and compared to its carrying value to measure the amount of impairment. The implied fair value of goodwill is calculated by allocating the fair value of the reporting unit to all assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination (purchase price allocation). The excess of the fair value of the reporting unit over the amounts assigned is the implied fair value of goodwill. If the carrying amount of the goodwill exceeds the implied fair value of goodwill, an impairment loss is recognized for the excess amount. We determine the fair value of our reporting units using a discounted cash flow analysis or by applying various market multiples or a combination thereof. |
Closed Branch Facility Charges | Closed Branch Facility Charges We continuously monitor and identify branch facilities with revenues and operating margins that consistently fall below Company performance standards. Once identified, we continue to monitor these branches to determine if operating performance can be improved or if the performance is attributable to economic factors unique to the particular market with unfavorable long-term prospects. If necessary, branches with unfavorable long-term prospects are closed and the rental fleet and new and used equipment inventories are deployed to more profitable branches within our geographic footprint where demand is higher. We closed one branch during the year ended December 31, 2013 in a market where long-term prospects did not support continued operations. No branches were closed during 2014 or 2015. Under ASC 420, Exit or Disposal Cost Obligations |
Deferred Financing Costs and Initial Purchasers' Discounts | Deferred Financing Costs and Initial Purchasers’ Discounts Deferred financing costs include legal, accounting and other direct costs incurred in connection with the issuance and amendments thereto, of the Company’s debt. These costs are amortized over the terms of the related debt using the straight-line method which approximates amortization using the effective interest method. Initial purchasers’ discount and bond premium is the differential between the price paid to an issuer for the new issue and the prices (below and above, respectively) at which the securities are initially offered to the investing public. The amortization expense of deferred financing costs and bond premium and accretion of initial purchasers’ discounts are included in interest expense as an overall cost of the related financings. See also the “Recent Accounting Pronouncements” discussion below related to the new accounting guidance on the presentation of debt issuance costs. |
Reserves for Claims | Reserves for Claims We are exposed to various claims relating to our business, including those for which we provide self-insurance. Claims for which we self-insure include: (1) workers compensation claims; (2) general liability claims by third parties for injury or property damage caused by our equipment or personnel; (3) automobile liability claims; and (4) employee health insurance claims. These types of claims may take a substantial amount of time to resolve and, accordingly, the ultimate liability associated with a particular claim, including claims incurred but not reported as of a period-end reporting date, may not be known for an extended period of time. Our methodology for developing self-insurance reserves is based on management estimates and independent third party actuarial estimates. Our estimation process considers, among other matters, the cost of known claims over time, cost inflation and incurred but not reported claims. These estimates may change based on, among other things, changes in our claim history or receipt of additional information relevant to assessing the claims. Further, these estimates may prove to be inaccurate due to factors such as adverse judicial determinations or other claim settlements at higher than estimated amounts. Accordingly, we may be required to increase or decrease our reserve levels. At December 31, 2015, our claims reserves related to workers compensation, general liability and automobile liability, which are included in “Accrued expenses and other liabilities” in our consolidated balance sheets, totaled $5.0 million and our health insurance reserves totaled $1.4 million. At December 31, 2014, our claims reserves related to workers compensation, general liability and automobile liability totaled $4.4 million and our health insurance reserves totaled $1.2 million. |
Sales Taxes | Sales Taxes We impose and collect significant amounts of sales taxes concurrent with our revenue-producing transactions with customers and remit those taxes to the various governmental agencies as prescribed by the taxing jurisdictions in which we operate. We present such taxes in our consolidated statements of operations on a net basis. |
Advertising | Advertising Advertising costs are expensed as incurred and totaled $1.8 million, $1.3 million and $0.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs Shipping and handling fees billed to customers are recorded as revenues while the related shipping and handling costs are included in other cost of revenues. |
Income Taxes | Income Taxes The Company files a consolidated federal income tax return with its wholly-owned subsidiaries. The Company is a C-Corporation under the provisions of the Internal Revenue Code. We utilize the asset and liability approach to measuring deferred tax assets and liabilities based on temporary differences existing at each balance sheet date using currently enacted tax rates in accordance with ASC 740. ASC 740 takes into account the differences between financial statement treatment and tax treatment of certain transactions. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rate is recognized as income or expense in the period that includes the enactment date of that rate. In accordance with ASC 740, the Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax provisions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company recognizes both interest and penalties related to uncertain tax positions in net other income (expense). Our deferred tax calculation requires management to make certain estimates about future operations. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
Fair Value of Financial Instruments | 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 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 December 31, 2015 and 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. December 31, 2015 Carrying Amount Fair Value Manufacturer flooring plans payable with interest computed at 5.00% (Level 3) $ 62,433 $ 54,710 Senior unsecured notes with interest computed at 7.0% ( 1) (Level 1) 628,882 617,400 Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) 1,907 1,329 Letter of credit (Level 3) — 145 December 31, 2014 Carrying Amount Fair Value Manufacturer flooring plans payable with interest computed at 5.25% (Level 3) $ 93,600 $ 82,021 Senior unsecured notes with interest computed at 7.0% (1) (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 (1) Fair values shown based on aggregate amounts outstanding for the periods presented. 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. |
Concentrations of Credit and Supplier Risk | Concentrations of Credit and Supplier Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable. Credit risk can be negatively impacted by adverse changes in the economy or by disruptions in the credit markets. However, we believe that credit risk with respect to trade accounts receivable is somewhat mitigated by our large number of geographically diverse customers and our credit evaluation procedures. Although generally no collateral is required, when feasible, mechanics’ liens are filed and personal guarantees are signed to protect the Company’s interests. We maintain reserves for potential losses. We record trade accounts receivables at sales value and establish specific reserves for certain customer accounts identified as known collection problems due to insolvency, disputes or other collection issues. The amounts of the specific reserves estimated by management are based on the following assumptions and variables: the customer’s financial position, age of the customer’s receivables and changes in payment schedules. In addition to the specific reserves, management establishes a non-specific allowance for doubtful accounts by applying specific percentages to the different receivable aging categories (excluding the specifically reserved accounts). The percentage applied against the aging categories increases as the accounts become further past due. The allowance for doubtful accounts is charged with the write-off of uncollectible customer accounts. We purchase a significant amount of equipment from the same manufacturers with whom we have distribution agreements. During the year ended December 31, 2015, we purchased approximately 48% from three manufacturers (Grove/Manitowoc, Komatsu, and Genie Industries (Terex)) providing our rental and sales equipment. We believe that while there are alternative sources of supply for the equipment we purchase in each of the principal product categories, termination of one or more of our relationships with any of our major suppliers of equipment could have a material adverse effect on our business, financial condition or results of operation if we were unable to obtain adequate or timely rental and sales equipment. |
Income per Share | Income per Share Income per common share for the year ended December 31, 2015, 2014 and 2013 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 0.8% 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 as presented for the years ended December 31, 2015 and 2014. The following table sets forth the computation of basic and diluted net income per common share for the years ended December 31, (amounts in thousands, except per share amounts): 2015 2014 2013 Basic net income per share: Net income $ 44,305 $ 55,139 $ 44,140 Weighted average number of common shares outstanding 35,272 35,159 35,041 Net income per common share — basic $ 1.26 $ 1.57 $ 1.26 Diluted net income per share: Net income $ 44,305 $ 55,139 $ 44,140 Weighted average number of common shares outstanding 35,272 35,159 35,041 Effect of dilutive securities: Effect of dilutive stock options 14 23 18 Effect of dilutive non-vested stock 57 67 87 Weighted average number of common shares outstanding — diluted 35,343 35,249 35,146 Net income per common share — diluted $ 1.25 $ 1.56 $ 1.26 Common shares excluded from the denominator as anti-dilutive: Stock options 14 — — Non-vested stock 8 1 1 |
Stock-Based Compensation | Stock-Based Compensation We adopted our 2006 Stock-Based Incentive Compensation Plan (the “Stock Incentive Plan”) in January 2006 prior to our initial public offering of common stock. The Stock Incentive Plan was further amended and restated with the approval of our stockholders at the 2006 annual meeting of the stockholders of the Company to provide for the inclusion of non-employee directors as persons eligible to receive awards under the Stock Incentive Plan. Prior to the adoption of the Stock Incentive Plan in January 2006, no share-based payment arrangements existed. The Stock Incentive Plan is administered by the Compensation Committee of our Board of Directors, which selects persons eligible to receive awards and determines the number of shares and/or options subject to each award, the terms, conditions, performance measures, if any, and other provisions of the award. Under the Stock Incentive Plan, we may offer deferred shares or restricted shares of our common stock and grant options, including both incentive stock options and nonqualified stock options, to purchase shares of our common stock. Shares available for future stock-based payment awards under our Stock Incentive Plan were 3,304,449 shares of common stock as of December 31, 2015. We account for our stock-based compensation plan using the fair value recognition provisions of Accounting Standards Codification 718, Stock Compensation Non-vested Stock From time to time, we issue shares of non-vested stock typically with vesting terms of three years. The following table summarizes our non-vested stock activity for the years ended December 31, 2015 and 2014: Number of Shares Weighted Average Grant Date Fair Value Non-vested stock at January 1, 2014 187,867 $ 18.21 Granted 76,427 $ 36.69 Vested (109,237 ) $ 18.70 Forfeited (6,659 ) $ 23.88 Non-vested stock at December 31, 2014 148,398 $ 27.11 Granted 291,529 $ 17.34 Vested (106,342 ) $ 22.24 Forfeited (11,230 ) $ 26.48 Non-vested stock at December 31, 2015 322,355 $ 19.90 As of December 31, 2015, we had unrecognized compensation expense of approximately $5.0 million related to non-vested stock award payments that we expect to be recognized over a weighted average period of 2.5 years. The following table summarizes compensation expense related to stock-based awards included in selling, general and administrative expenses in the accompanying consolidated statements of operations for the years ended December 31, (amounts in thousands): 2015 2014 2013 Compensation expense $ 2,655 $ 2,598 $ 2,618 We receive a tax deduction when non-vested stock vests at a higher value than the value used to recognize compensation expense at the date of grant. In accordance with ASC 718, we are required to report excess tax benefits from the award of equity instruments as financing cash flows. Excess tax benefits will be recorded when a deduction reported for tax return purposes for an award of equity instruments exceeds the cumulative compensation cost for the instruments recognized for financial reporting purposes. As a result of certain realization requirements of ASC 718, approximately $0.8 million of excess tax benefits on stock compensation have not been recorded because those tax benefits have not yet reduced taxes payable. Equity will be increased if and when these excess tax benefits are ultimately realized. Stock Options No stock options were granted during 2015, 2014 or 2013. At December 31, 2015, we had no unrecognized compensation expense related to prior stock option awards. No stock compensation expense was recognized in 2015, 2014 or 2013 related to stock options. The following table represents stock option activity for the years ended December 31, 2015 and 2014: Number of Shares Weighted Average Exercise Price(1) Weighted Average Contractual Life In Years Outstanding options at January 1, 2014 51,000 $ 17.80 Granted — — Exercised — — Canceled, forfeited or expired — — Outstanding options at December 31, 2014 51,000 $ 17.80 1.5 Granted — — Exercised — — Canceled, forfeited or expired — — Outstanding options at December 31, 2015 51,000 $ 17.80 0.5 Options exercisable at December 31, 2015 51,000 $ 17.80 0.5 (1) Weighted average exercise prices shown above include a reduction of $7.00 per share to reflect the equitable adjustment to the exercise prices in connection with the declaration and payment of a special, one-time cash dividend of $7.00 per share in the third quarter of 2012. The closing price of our common stock on December 31, 2015 was $17.48. All options outstanding at December 31, 2015 have grant date fair values (as adjusted for the $7.00 per share reduction in exercise price) which exceed our December 31, 2015 stock price. We receive a tax deduction for stock option exercises during the period in which the options are exercised, generally for the excess of the price at which the stock is sold over the exercise price of the options. |
Purchases of Company Common Stock | Purchases of Company Common Stock Purchases of our common stock are accounted for as treasury stock in the accompanying consolidated balance sheets using the cost method. Repurchased stock is included in authorized shares, but is not included in shares outstanding. |
Segment Reporting | Segment Reporting We have determined in accordance with ASC 280, Segment Reporting |
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 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers Revenue Recognition In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period In February 2015, FASB issued ASU No. 2015-02, Consolidation. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcements In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In July 2015, the FASB issued ASU 2015-11, Inventory: Simplifying the Measurement of Inventory In September 2015, the FASB issued ASU 2015-16, Business Combinations |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property Plant and Equipment | Generally, we assign the following estimated useful lives to these categories: Category Estimated Useful Life Transportation equipment 5 years Buildings 39 years Office equipment 5 years Computer equipment 3 years Machinery and equipment 7 years |
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 December 31, 2015 and 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. December 31, 2015 Carrying Amount Fair Value Manufacturer flooring plans payable with interest computed at 5.00% (Level 3) $ 62,433 $ 54,710 Senior unsecured notes with interest computed at 7.0% ( 1) (Level 1) 628,882 617,400 Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) 1,907 1,329 Letter of credit (Level 3) — 145 December 31, 2014 Carrying Amount Fair Value Manufacturer flooring plans payable with interest computed at 5.25% (Level 3) $ 93,600 $ 82,021 Senior unsecured notes with interest computed at 7.0% (1) (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 (1) Fair values shown based on aggregate amounts outstanding for the periods presented. |
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 years ended December 31, (amounts in thousands, except per share amounts): 2015 2014 2013 Basic net income per share: Net income $ 44,305 $ 55,139 $ 44,140 Weighted average number of common shares outstanding 35,272 35,159 35,041 Net income per common share — basic $ 1.26 $ 1.57 $ 1.26 Diluted net income per share: Net income $ 44,305 $ 55,139 $ 44,140 Weighted average number of common shares outstanding 35,272 35,159 35,041 Effect of dilutive securities: Effect of dilutive stock options 14 23 18 Effect of dilutive non-vested stock 57 67 87 Weighted average number of common shares outstanding — diluted 35,343 35,249 35,146 Net income per common share — diluted $ 1.25 $ 1.56 $ 1.26 Common shares excluded from the denominator as anti-dilutive: Stock options 14 — — Non-vested stock 8 1 1 |
Schedule of Non-Vested Stock Activity | The following table summarizes our non-vested stock activity for the years ended December 31, 2015 and 2014: Number of Shares Weighted Average Grant Date Fair Value Non-vested stock at January 1, 2014 187,867 $ 18.21 Granted 76,427 $ 36.69 Vested (109,237 ) $ 18.70 Forfeited (6,659 ) $ 23.88 Non-vested stock at December 31, 2014 148,398 $ 27.11 Granted 291,529 $ 17.34 Vested (106,342 ) $ 22.24 Forfeited (11,230 ) $ 26.48 Non-vested stock at December 31, 2015 322,355 $ 19.90 |
Schedule of Compensation Expense Related to Non-Vested Stock | The following table summarizes compensation expense related to stock-based awards included in selling, general and administrative expenses in the accompanying consolidated statements of operations for the years ended December 31, (amounts in thousands): 2015 2014 2013 Compensation expense $ 2,655 $ 2,598 $ 2,618 |
Schedule of Share Based Compensation Stock Options Activity | The following table represents stock option activity for the years ended December 31, 2015 and 2014: Number of Shares Weighted Average Exercise Price(1) Weighted Average Contractual Life In Years Outstanding options at January 1, 2014 51,000 $ 17.80 Granted — — Exercised — — Canceled, forfeited or expired — — Outstanding options at December 31, 2014 51,000 $ 17.80 1.5 Granted — — Exercised — — Canceled, forfeited or expired — — Outstanding options at December 31, 2015 51,000 $ 17.80 0.5 Options exercisable at December 31, 2015 51,000 $ 17.80 0.5 (1) Weighted average exercise prices shown above include a reduction of $7.00 per share to reflect the equitable adjustment to the exercise prices in connection with the declaration and payment of a special, one-time cash dividend of $7.00 per share in the third quarter of 2012. |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Summary of Receivables | Receivables consisted of the following at December 31, (amounts in thousands): 2015 2014 Trade receivables $ 145,418 $ 158,400 Unbilled rental revenue 5,363 5,772 Income tax receivables 1,273 3,434 Other 3 17 152,057 167,623 Less allowance for doubtful accounts (4,729 ) (3,288 ) Total receivables, net $ 147,328 $ 164,335 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following at December 31, (amounts in thousands): 2015 2014 New equipment $ 72,064 $ 108,891 Used equipment 5,301 5,772 Parts, supplies and other 19,453 19,324 Total inventories, net $ 96,818 $ 133,987 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Summary of Net Property and Equipment | Net property and equipment consisted of the following at December 31, (amounts in thousands): 2015 2014 Land $ 7,054 $ 7,368 Transportation equipment 82,768 67,268 Building and leasehold improvements 54,094 53,021 Office and computer equipment 53,413 51,542 Machinery and equipment 14,707 12,628 Property under capital leases 3,217 3,217 Construction in progress 2,702 3,240 217,955 198,284 Less accumulated depreciation and amortization (107,170 ) (88,376 ) Total net property and equipment $ 110,785 $ 109,908 |
Manufacturer Flooring Plans P32
Manufacturer Flooring Plans Payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Maturities of Manufacturer Flooring Plans Payable | Maturities (based on original financing terms) of the manufacturer flooring plans payable as of December 31, 2015 for each of the next three years ending December 31 are as follows (amounts in thousands): 2016 $ 40,000 2017 21,905 2018 528 Thereafter — Total $ 62,433 |
Accrued Expenses Payable and 33
Accrued Expenses Payable and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables And Accruals [Abstract] | |
Accrued Expenses Payable and Other Liabilities | Accrued expenses payable and other liabilities consisted of the following at December 31, (amounts in thousands): 2015 2014 Payroll and related liabilities $ 18,250 $ 23,663 Sales, use and property taxes 8,366 7,722 Accrued interest 15,284 15,329 Accrued insurance 4,534 3,931 Deferred revenue 5,556 5,195 Other 3,561 4,708 Total accrued expenses payable and other liabilities $ 55,551 $ 60,548 |
Senior Unsecured Notes (Tables)
Senior Unsecured Notes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Unsecured Debt [Member] | |
Debt Instrument [Line Items] | |
Reconciliation of Senior Unsecured Notes to Condensed Consolidated Balance Sheets | The following table reconciles our Senior Secured Notes to our 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 December 31, 2015 1,055 Amortization of note premium through December 31, 2015 (887 ) Balance at December 31, 2015 $ 628,882 |
Capital Lease Obligations (Tabl
Capital Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Future Minimum Capital Lease Payments | Future minimum capital lease payments, in the aggregate, existing at December 31, 2015 for each of the next five years ending December 31 and thereafter are as follows (amounts in thousands): 2016 $ 333 2017 333 2018 333 2019 333 2020 333 Thereafter 963 Total minimum lease payments 2,628 Less: amount representing interest (721 ) Present value of minimum lease payments $ 1,907 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | Our income tax provision for the years ended December 31, 2015, 2014 and 2013, consists of the following (amounts in thousands): Current Deferred Total Year ended December 31, 2015: U.S. Federal $ 85 $ 25,206 $ 25,291 State 634 5,446 6,080 $ 719 $ 30,652 $ 31,371 Year ended December 31, 2014: U.S. Federal $ 576 $ 30,753 $ 31,329 State 151 6,065 6,216 $ 727 $ 36,818 $ 37,545 Year ended December 31, 2013: U.S. Federal $ 1,262 $ 16,306 $ 17,568 State 1,860 1,579 3,439 $ 3,122 $ 17,885 $ 21,007 |
Deferred Income Tax Assets and Liabilities | Significant components of our deferred income tax assets and liabilities as of December 31 are as follows (amounts in thousands): 2015 2014 Deferred tax assets: Accounts receivable $ 1,808 $ 1,246 Inventories 364 252 Net operating losses 25,881 11,978 AMT and tax credits 3,432 3,210 Sec 263A costs 1,082 1,491 Accrued liabilities 4,419 4,279 Deferred compensation 1,345 2,089 Accrued interest 633 606 Stock-based compensation 521 304 Goodwill and intangible assets 1,359 2,659 Other assets 247 91 41,091 28,205 Deferred tax liabilities: Property and equipment (195,349 ) (151,703 ) Investments (1,628 ) (1,612 ) (196,977 ) (153,315 ) Net deferred tax liabilities $ (155,886 ) $ (125,110 ) |
Actual Income Tax Expense (Benefit) | The reconciliation between income taxes computed using the statutory federal income tax rate of 35% to the actual income tax expense (benefit) is below for the years ended December 31 (amounts in thousands): 2015 2014 2013 Computed tax at statutory rates $ 26,487 $ 32,439 $ 22,801 Permanent items - other 953 1,069 716 Permanent items - excess of tax deductible goodwill — — (4,673 ) State income tax, net of federal tax effect 3,892 4,046 2,651 Increase in uncertain tax positions 39 (9 ) (488 ) Other — — — $ 31,371 $ 37,545 $ 21,007 |
Amounts of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follow (in thousands): 2015 2014 Gross unrecognized tax benefits at January 1 $ 5,962 $ 5,943 Increases in tax positions taken in prior years 73 42 Decreases in tax positions taken in prior years — — Increases in tax positions taken in current year — — Decreases for tax positions taken in current year — — Settlements with taxing authorities — — Lapse in statute of limitations — (23 ) Gross unrecognized tax benefits at December 31 $ 6,035 $ 5,962 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Operating Lease Payments | Future minimum operating lease payments existing at December 31, 2015 for each of the next five years ending December 31 and thereafter are as follows (amounts in thousands): 2016 $ 13,717 2017 14,245 2018 12,748 2019 10,633 2020 10,307 Thereafter 73,361 $ 135,011 |
Summarized Quarterly Financia38
Summarized Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Financial Results of Operations | The following is a summary of our unaudited quarterly financial results of operations for the years ended December 31, 2015 and 2014 (amounts in thousands, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2015: Total revenues $ 227,410 $ 262,360 $ 276,853 $ 273,208 Income from operations 23,332 32,962 38,472 33,477 Income before provision for income taxes 10,241 19,441 25,492 20,502 Net income 6,086 11,480 14,772 11,967 Basic net income per common share (1) 0.17 0.33 0.42 0.34 Diluted net income per common share (1) 0.17 0.33 0.42 0.34 First Quarter Second Quarter Third Quarter Fourth Quarter 2014: Total revenues $ 237,229 $ 280,378 $ 275,044 $ 297,761 Income from operations 24,591 37,942 39,993 41,218 Income before provision for income taxes 12,247 25,364 27,115 27,958 Net income 7,436 15,726 15,300 16,677 Basic net income per common share (1) 0.21 0.45 0.43 0.47 Diluted net income per common share (1) 0.21 0.45 0.43 0.47 (1) Because of the method used in calculating per share data, the summation of quarterly per share data may not necessarily total to the per share data computed for the entire year. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Information about Reportable Segments | . The following table presents information about our reportable segments (amounts in thousands): Years Ended December 31, 2015 2014 2013 Segment Revenues: Equipment rentals $ 443,024 $ 404,110 $ 338,935 New equipment sales 238,172 328,036 294,768 Used equipment sales 118,338 123,173 141,560 Parts sales 111,133 113,732 103,174 Services revenues 63,954 61,292 56,694 Total segmented revenues 974,621 1,030,343 935,131 Non-Segmented revenues 65,210 60,069 52,625 Total revenues $ 1,039,831 $ 1,090,412 $ 987,756 Segment Gross Profit: Equipment rentals $ 208,985 $ 196,139 $ 161,649 New equipment sales 25,937 38,510 31,881 Used equipment sales 37,000 38,237 40,867 Parts sales 30,303 32,626 28,933 Services revenues 42,261 39,785 35,660 Total gross profit from segmented revenues 344,486 345,297 298,990 Non-Segmented gross profit 1,246 2,641 2,846 Total gross profit $ 345,732 $ 347,938 $ 301,836 December 31, 2015 2014 Segment identified assets: Equipment sales $ 77,365 $ 114,664 Equipment rentals 893,393 889,706 Parts and service 19,453 19,324 Total segment identified assets 990,211 1,023,694 Non-Segmented identified assets 310,876 335,110 Total assets $ 1,301,087 $ 1,358,804 |
Consolidating Financial Infor40
Consolidating Financial Information of Guarantor Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2015 H&E Equipment Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Assets: Cash $ 7,159 $ — $ — $ 7,159 Receivables, net 124,157 23,171 — 147,328 Inventories, net 88,831 7,987 — 96,818 Prepaid expenses and other assets 9,909 145 — 10,054 Rental equipment, net 750,773 142,620 — 893,393 Property and equipment, net 99,342 11,443 — 110,785 Deferred financing costs, net 4,353 — — 4,353 Investment in guarantor subsidiaries 211,542 — (211,542 ) — Goodwill 1,671 29,526 — 31,197 Total assets $ 1,297,737 $ 214,892 $ (211,542 ) $ 1,301,087 Liabilities and Stockholders’ Equity: Amount due on senior secured credit facility $ 184,857 $ — $ — $ 184,857 Accounts payable 63,959 2,818 — 66,777 Manufacturer flooring plans payable 62,433 — — 62,433 Dividends payable 62 (30 ) — 32 Accrued expenses payable and other liabilities 56,896 (1,345 ) — 55,551 Senior unsecured notes 628,882 — — 628,882 Capital leases payable — 1,907 — 1,907 Deferred income taxes 155,886 — — 155,886 Deferred compensation payable 2,174 — — 2,174 Total liabilities 1,155,149 3,350 — 1,158,499 Stockholders’ equity 142,588 211,542 (211,542 ) 142,588 Total liabilities and stockholders’ equity $ 1,297,737 $ 214,892 $ (211,542 ) $ 1,301,087 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2014 H&E Equipment Services Guarantor Subsidiaries Elimination Consolidated (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 Year Ended December 31, 2015 H&E Equipment Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 366,160 $ 76,864 $ - $ 443,024 New equipment sales 213,476 24,696 - 238,172 Used equipment sales 96,114 22,224 - 118,338 Parts sales 96,743 14,390 - 111,133 Services revenues 54,483 9,471 - 63,954 Other 53,051 12,159 - 65,210 Total revenues 880,027 159,804 - 1,039,831 Cost of revenues: Rental depreciation 135,511 26,578 - 162,089 Rental expense 59,384 12,566 - 71,950 New equipment sales 190,013 22,222 - 212,235 Used equipment sales 66,888 14,450 - 81,338 Parts sales 70,555 10,275 - 80,830 Services revenues 18,689 3,004 - 21,693 Other 51,763 12,201 - 63,964 Total cost of revenues 592,803 101,296 - 694,099 Gross profit (loss): Equipment rentals 171,265 37,720 - 208,985 New equipment sales 23,463 2,474 - 25,937 Used equipment sales 29,226 7,774 - 37,000 Parts sales 26,188 4,115 - 30,303 Services revenues 35,794 6,467 - 42,261 Other 1,288 (42 ) - 1,246 Gross profit 287,224 58,508 - 345,732 Selling, general and administrative expenses 183,235 36,991 - 220,226 Equity in earnings of guarantor subsidiaries 8,428 - (8,428 ) - Gain from sales of property and equipment, net 2,255 482 - 2,737 Income from operations 114,672 21,999 (8,428 ) 128,243 Other income (expense): Interest expense (40,303 ) (13,727 ) - (54,030 ) Other, net 1,307 156 - 1,463 Total other expense, net (38,996 ) (13,571 ) - (52,567 ) Income before income taxes 75,676 8,428 (8,428 ) 75,676 Income tax expense 31,371 - - 31,371 Net income $ 44,305 $ 8,428 $ (8,428 ) $ 44,305 CONDENSED CONSOLIDATING STATEMENT OF INCOME Year Ended December 31, 2014 H&E Equipment Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 338,708 $ 65,402 $ — $ 404,110 New equipment sales 278,869 49,167 — 328,036 Used equipment sales 99,864 23,309 — 123,173 Parts sales 99,013 14,719 — 113,732 Services revenues 52,227 9,065 — 61,292 Other 49,510 10,559 — 60,069 Total revenues 918,191 172,221 — 1,090,412 Cost of revenues: Rental depreciation 122,763 23,292 — 146,055 Rental expense 50,832 11,084 — 61,916 New equipment sales 245,423 44,103 — 289,526 Used equipment sales 68,739 16,197 — 84,936 Parts sales 70,769 10,337 — 81,106 Services revenues 18,231 3,276 — 21,507 Other 46,851 10,577 — 57,428 Total cost of revenues 623,608 118,866 — 742,474 Gross profit (loss): Equipment rentals 165,113 31,026 — 196,139 New equipment sales 33,446 5,064 — 38,510 Used equipment sales 31,125 7,112 — 38,237 Parts sales 28,244 4,382 — 32,626 Services revenues 33,996 5,789 — 39,785 Other 2,659 (18 ) — 2,641 Gross profit 294,583 53,355 — 347,938 Selling, general and administrative expenses 170,449 36,031 — 206,480 Equity in earnings of guarantor subsidiaries 5,711 — (5,711 ) — Gain from sales of property and equipment, net 1,870 416 — 2,286 Income from operations 131,715 17,740 (5,711 ) 143,744 Other income (expense): Interest expense (40,147 ) (12,206 ) — (52,353 ) Other, net 1,116 177 — 1,293 Total other expense, net (39,031 ) (12,029 ) — (51,060 ) Income before income taxes 92,684 5,711 (5,711 ) 92,684 Income tax expense 37,545 — — 37,545 Net income $ 55,139 $ 5,711 $ (5,711 ) $ 55,139 CONDENSED CONSOLIDATING STATEMENT OF INCOME Year Ended December 31, 2013 H&E Equipment Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 280,700 $ 58,235 $ — $ 338,935 New equipment sales 251,911 42,857 — 294,768 Used equipment sales 119,351 22,209 — 141,560 Parts sales 88,994 14,180 — 103,174 Services revenues 49,022 7,672 — 56,694 Other 43,341 9,284 — 52,625 Total revenues 833,319 154,437 — 987,756 Cost of revenues: Rental depreciation 100,627 21,321 — 121,948 Rental expense 45,186 10,152 — 55,338 New equipment sales 224,051 38,836 — 262,887 Used equipment sales 84,881 15,812 — 100,693 Parts sales 64,167 10,074 — 74,241 Services revenues 18,272 2,762 — 21,034 Other 40,298 9,481 — 49,779 Total cost of revenues 577,482 108,438 — 685,920 Gross profit (loss): Equipment rentals 134,887 26,762 — 161,649 New equipment sales 27,860 4,021 — 31,881 Used equipment sales 34,470 6,397 — 40,867 Parts sales 24,827 4,106 — 28,933 Services revenues 30,750 4,910 — 35,660 Other 3,043 (197 ) — 2,846 Gross profit 255,837 45,999 — 301,836 Selling, general and administrative expenses 155,881 33,181 — 189,062 Equity in earnings of guarantor subsidiaries 2,497 — (2,497 ) — Gain from sales of property and equipment, net 2,220 329 — 2,549 Income from operations 104,673 13,147 (2,497 ) 115,323 Other income (expense): Interest expense (40,662 ) (10,742 ) — (51,404 ) Other, net 1,136 92 — 1,228 Total other expense, net (39,526 ) (10,650 ) — (50,176 ) Income before income taxes 65,147 2,497 (2,497 ) 65,147 Income tax expense 21,007 — — 21,007 Net income $ 44,140 $ 2,497 $ (2,497 ) $ 44,140 |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2015 H&E Equipment Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 44,305 $ 8,428 $ (8,428 ) $ 44,305 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 21,443 2,925 — 24,368 Depreciation on rental equipment 135,511 26,578 — 162,089 Amortization of deferred financing costs 1,036 — — 1,036 Accretion of note discount, net of premium amortization 168 — — 168 Provision for losses on accounts receivable 3,223 218 — 3,441 Provision for inventory obsolescence 295 — — 295 Provision for deferred income taxes 30,776 — — 30,776 Stock-based compensation expense 2,655 — — 2,655 Gain from sales of property and equipment, net (2,255 ) (482 ) — (2,737 ) Gain from sales of rental equipment, net (27,732 ) (7,402 ) — (35,134 ) Excess tax deficiency from stock-based awards (125 ) — — (125 ) Equity in earnings of guarantor subsidiaries (8,428 ) — 8,428 - Changes in operating assets and liabilities: - Receivables, net 9,817 3,749 — 13,566 Inventories, net (12,168 ) (2,349 ) — (14,517 ) Prepaid expenses and other assets (882 ) (26 ) — (908 ) Accounts payable 13,298 138 — 13,436 Manufacturer flooring plans payable (31,167 ) — — (31,167 ) Accrued expenses payable and other liabilities (4,604 ) (391 ) — (4,995 ) Deferred compensation payable 68 — — 68 Net cash provided by operating activities 175,234 31,386 - 206,620 Cash flows from investing activities: Purchases of property and equipment (23,989 ) (2,808 ) — (26,797 ) Purchases of rental equipment (143,840 ) (34,932 ) — (178,772 ) Proceeds from sales of property and equipment 3,738 551 — 4,289 Proceeds from sales of rental equipment 80,093 19,428 — 99,521 Investment in subsidiaries 13,426 — (13,426 ) - Net cash used in investing activities (70,572 ) (17,761 ) (13,426 ) (101,759 ) Cash flows from financing activities: Purchases of treasury stock (470 ) — — (470 ) Dividends paid (37,107 ) (7 ) — (37,114 ) Borrowing on senior secured credit facility 982,961 — — 982,961 Payments on senior secured credit facility (1,058,023 ) — — (1,058,023 ) Payments of deferred financing cost (725 ) — — (725 ) Payments on capital lease obligations — (192 ) — (192 ) Capital contributions — (13,426 ) 13,426 - Net cash used in financing activities (113,364 ) (13,625 ) 13,426 (113,563 ) Net decrease in cash (8,702 ) - - (8,702 ) Cash, beginning of year 15,861 — — 15,861 Cash, end of year $ 7,159 $ - $ - $ 7,159 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2014 H&E Equipment Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 55,139 $ 5,711 $ (5,711 ) $ 55,139 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 18,025 2,434 — 20,459 Depreciation on rental equipment 122,763 23,292 — 146,055 Amortization of deferred financing costs 934 — — 934 Accretion of note discount, net of premium amortization 168 — — 168 Provision for losses on accounts receivable 2,428 431 — 2,859 Provision for inventory obsolescence 159 — — 159 Provision for deferred income taxes 36,819 — — 36,819 Stock-based compensation expense 2,598 — — 2,598 Gain from sales of property and equipment, net (1,870 ) (416 ) — (2,286 ) Gain from sales of rental equipment, net (28,750 ) (7,019 ) — (35,769 ) Excess tax benefit from stock-based awards (24 ) — — (24 ) Equity in earnings of guarantor subsidiaries (5,711 ) — 5,711 — Changes in operating assets and liabilities: Receivables, net (25,100 ) (10,124 ) — (35,224 ) Inventories, net (61,693 ) (5,030 ) — (66,723 ) Prepaid expenses and other assets (3,174 ) 52 — (3,122 ) Accounts payable (10,126 ) (4,312 ) — (14,438 ) Manufacturer flooring plans payable 44,538 — — 44,538 Accrued expenses payable and other liabilities 7,437 (1,327 ) — 6,110 Deferred compensation payable 66 — — 66 Net cash provided by operating activities 154,626 3,692 — 158,318 Cash flows from investing activities: Purchases of property and equipment (30,849 ) (2,386 ) — (33,235 ) Purchases of rental equipment (299,387 ) (69,104 ) — (368,491 ) Proceeds from sales of property and equipment 2,241 1,416 — 3,657 Proceeds from sales of rental equipment 79,991 21,435 — 101,426 Investment in subsidiaries (45,126 ) — 45,126 — Net cash used in investing activities (293,130 ) (48,639 ) 45,126 (296,643 ) Cash flows from financing activities: Purchases of treasury stock (1,467 ) — — (1,467 ) Dividends paid (18,325 ) — — (18,325 ) Borrowing on senior secured credit facility 1,235,630 — — 1,235,630 Payments on senior secured credit facility (1,078,171 ) — — (1,078,171 ) Payments of deferred financing cost (909 ) — — (909 ) Payments on capital lease obligations — (179 ) — (179 ) Capital contributions — 45,126 (45,126 ) — Net cash provided by financing activities 136,758 44,947 (45,126 ) 136,579 Net decrease in cash (1,746 ) — — (1,746 ) Cash, beginning of year 17,607 — — 17,607 Cash, end of year $ 15,861 $ — $ — $ 15,861 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2013 H&E Equipment Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 44,140 $ 2,497 $ (2,497 ) $ 44,140 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 14,871 2,084 — 16,955 Depreciation on rental equipment 100,627 21,321 — 121,948 Amortization of deferred financing costs 1,094 — — 1,094 Accretion of note discount, net of premium amortization 231 — — 231 Provision for losses on accounts receivable 2,568 626 — 3,194 Provision for inventory obsolescence 220 — — 220 Provision for deferred income taxes 17,009 — — 17,009 Stock-based compensation expense 2,618 — — 2,618 Gain from sales of property and equipment, net (2,220 ) (329 ) — (2,549 ) Gain from sales of rental equipment, net (32,235 ) (6,340 ) — (38,575 ) Tax deficiency from stock-based awards (307 ) — — (307 ) Writedown of goodwill for tax-deductible goodwill in excess of book goodwill 877 — — 877 Equity in earnings of guarantor subsidiaries (2,497 ) — 2,497 — Changes in operating assets and liabilities: Receivables, net 8,252 (1,749 ) — 6,503 Inventories, net (62,300 ) (5,454 ) — (67,754 ) Prepaid expenses and other assets (744 ) (71 ) — (815 ) Accounts payable 26,000 5,659 — 31,659 Manufacturer flooring plans payable (1,327 ) (450 ) — (1,777 ) Accrued expenses payable and other liabilities 3,916 — — 3,916 Deferred compensation payable 65 — — 65 Net cash provided by operating activities 120,858 17,794 — 138,652 Cash flows from investing activities: Purchases of property and equipment (26,576 ) (2,903 ) — (29,479 ) Purchases of rental equipment (229,952 ) (37,513 ) — (267,465 ) Proceeds from sales of property and equipment 2,363 396 — 2,759 Proceeds from sales of rental equipment 95,378 19,217 — 114,595 Investment in subsidiaries (3,201 ) — 3,201 — Net cash used in investing activities (161,988 ) (20,803 ) 3,201 (179,590 ) Cash flows from financing activities: Excess tax benefit from stock-based awards 307 — — 307 Purchases of treasury stock (890 ) — — (890 ) Dividends paid (832 ) (23 ) — (855 ) Proceeds from issuance of senior unsecured notes 107,250 — — 107,250 Borrowing on senior secured credit facility 1,058,990 — — 1,058,990 Payments on senior secured credit facility (1,114,249 ) — — (1,114,249 ) Payments of deferred financing cost (733 ) — — (733 ) Payments on capital lease obligations — (169 ) — (169 ) Capital contributions — 3,201 (3,201 ) — Net cash provided by financing activities 49,843 3,009 (3,201 ) 49,651 Net increase in cash 8,713 — — 8,713 Cash, beginning of year 8,894 — — 8,894 Cash, end of year $ 17,607 $ — $ — $ 17,607 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Additional Information (Detail) | Oct. 01, 2015USD ($) | Oct. 01, 2014USD ($) | Oct. 01, 2013USD ($) | Dec. 31, 2015USD ($)SegmentBranchManufacturer$ / sharesshares | Dec. 31, 2014USD ($)Branchshares | Dec. 31, 2013USD ($)Branchshares |
Summary Of Significant Accounting Policy [Line Items] | ||||||
Salvage value | 25.00% | |||||
Impairment loss related to property and equipment | $ 0 | $ 0 | $ 0 | |||
Number of operating segments | Segment | 6 | |||||
Minimum percentage of likelihood that fair value of goodwill more than carrying value | 50.00% | |||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | |||
Number of branches closed | Branch | 0 | 0 | 1 | |||
Workers' compensation, general liability and automobile liability | $ 5,000,000 | $ 4,400,000 | ||||
Health insurance reserves | 1,400,000 | 1,200,000 | ||||
Advertising costs | $ 1,800,000 | 1,300,000 | $ 600,000 | |||
Recognized income tax provisions | 50.00% | |||||
Transfer of financial assets | $ 0 | 0 | ||||
Transfer of financial liabilities | $ 0 | $ 0 | ||||
No. of manufacturers | Manufacturer | 3 | |||||
Restricted common shares, percentage | 0.80% | |||||
Stock-Based incentive compensation plan | shares | 3,304,449 | |||||
Issue of shares of non-vested period | 3 years | |||||
Unrecognized compensation expense related to non-vested stock | $ 5,000,000 | |||||
Expected non-vested stock recognized over a weighted-average period | 2 years 6 months | |||||
Excess Tax benefit from stock compensation | $ 800,000 | |||||
Stock options, granted | shares | 0 | 0 | 0 | |||
Unrecognized compensation expense related to stock option awards | $ 0 | |||||
Compensation expense | $ 2,655,000 | $ 2,598,000 | $ 2,618,000 | |||
Closing price of common stock | $ / shares | $ 17.48 | |||||
Grant date fair value | $ / shares | $ 7 | |||||
Deferred financing costs | $ 4,353,000 | 4,664,000 | ||||
Unsecured Debt [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Deferred financing costs | 1,800,000 | |||||
Stock Options [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Compensation expense | $ 0 | $ 0 | $ 0 | |||
Rental and Sales Equipment Manufacturers [Member] | Property, Plant and Equipment [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Rental and sales equipment | 48.00% | |||||
Cranes and Aerial Work Platform [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Estimated useful life | 10 years | |||||
Earthmoving Equipment [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Estimated useful life | 5 years | |||||
Industrial Lift Trucks [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Estimated useful life | 7 years | |||||
Attachments and Other Equipment [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Estimated useful life | 3 years |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Estimated Useful Lives of Property Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Transportation Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 39 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Manufacturer flooring plans payable with interest computed at 5.00% (Level 3) | $ 62,433 | $ 93,600 | |
Senior unsecured notes with interest computed at 7.0%(1) (Level 1) | 628,882 | 628,714 | $ 628,546 |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 1,907 | 2,099 | |
Letter of credit (Level 3) | 7,200 | 7,200 | |
Level 3 [Member] | Carrying Amount [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Manufacturer flooring plans payable with interest computed at 5.00% (Level 3) | 62,433 | 93,600 | |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 1,907 | 2,099 | |
Level 3 [Member] | Fair Value [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Manufacturer flooring plans payable with interest computed at 5.00% (Level 3) | 54,710 | 82,021 | |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 1,329 | 1,495 | |
Letter of credit (Level 3) | 145 | 130 | |
Level 1 [Member] | Carrying Amount [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Senior unsecured notes with interest computed at 7.0%(1) (Level 1) | 628,882 | 628,714 | |
Level 1 [Member] | Fair Value [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Senior unsecured notes with interest computed at 7.0%(1) (Level 1) | $ 617,400 | $ 648,113 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements (Parenthetical) (Detail) | Dec. 31, 2015 | Dec. 31, 2014 |
Level 3 [Member] | Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Manufacturer flooring plans payable, interest rate | 5.00% | 5.25% |
Capital lease payable, interest rate, minimum | 5.929% | 5.929% |
Capital lease payable interest rate, maximum | 9.55% | 9.55% |
Level 3 [Member] | Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Manufacturer flooring plans payable, interest rate | 5.00% | 5.25% |
Capital lease payable, interest rate, minimum | 5.929% | 5.929% |
Capital lease payable interest rate, maximum | 9.55% | 9.55% |
Level 1 [Member] | Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior unsecured notes, interest rate | 7.00% | 7.00% |
Level 1 [Member] | Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior unsecured notes, interest rate | 7.00% | 7.00% |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Summary of Computation of Basic and Diluted Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic net income per share: | |||||||||||
Net income | $ 11,967 | $ 14,772 | $ 11,480 | $ 6,086 | $ 16,677 | $ 15,300 | $ 15,726 | $ 7,436 | $ 44,305 | $ 55,139 | $ 44,140 |
Weighted average number of common shares outstanding | 35,272 | 35,159 | 35,041 | ||||||||
Net income per common share - basic | $ 0.34 | $ 0.42 | $ 0.33 | $ 0.17 | $ 0.47 | $ 0.43 | $ 0.45 | $ 0.21 | $ 1.26 | $ 1.57 | $ 1.26 |
Diluted net income per share: | |||||||||||
Net income | $ 11,967 | $ 14,772 | $ 11,480 | $ 6,086 | $ 16,677 | $ 15,300 | $ 15,726 | $ 7,436 | $ 44,305 | $ 55,139 | $ 44,140 |
Weighted average number of common shares outstanding | 35,272 | 35,159 | 35,041 | ||||||||
Effect of dilutive securities: | |||||||||||
Weighted average number of common shares outstanding — diluted | 35,343 | 35,249 | 35,146 | ||||||||
Net income per common share — diluted | $ 0.34 | $ 0.42 | $ 0.33 | $ 0.17 | $ 0.47 | $ 0.43 | $ 0.45 | $ 0.21 | $ 1.25 | $ 1.56 | $ 1.26 |
Stock Options [Member] | |||||||||||
Effect of dilutive securities: | |||||||||||
Effect of dilutive stock options and non-vested stock | 14 | 23 | 18 | ||||||||
Common shares excluded from the denominator as anti-dilutive: | |||||||||||
Common shares excluded from the denominator as anti-dilutive | 14 | ||||||||||
Non-vested restricted stock [Member] | |||||||||||
Effect of dilutive securities: | |||||||||||
Effect of dilutive stock options and non-vested stock | 57 | 67 | 87 | ||||||||
Common shares excluded from the denominator as anti-dilutive: | |||||||||||
Common shares excluded from the denominator as anti-dilutive | 8 | 1 | 1 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Schedule of Non-Vested Stock Activity (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Nonvested stock, beginning balance, Number of Shares | 148,398 | 187,867 |
Granted, Number of Shares | 291,529 | 76,427 |
Vested, Number of Shares | (106,342) | (109,237) |
Forfeited, Number of Shares | (11,230) | (6,659) |
Nonvested stock, ending balance, Number of Shares | 322,355 | 148,398 |
Nonvested stock, beginning balance, Weighted Average Grant Date Fair Value | $ 27.11 | $ 18.21 |
Granted, Weighted Average Grant Date Fair Value | 17.34 | 36.69 |
Vested, Weighted Average Grant Date Fair Value | 22.24 | 18.70 |
Forfeited, Weighted Average Grant Date Fair Value | 26.48 | 23.88 |
Nonvested stock, ending balance, Weighted Average Grant Date Fair Value | $ 19.90 | $ 27.11 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Schedule of Compensation Expense Related to Non-Vested Stock (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Compensation expense | $ 2,655 | $ 2,598 | $ 2,618 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Schedule of Share Based Compensation Stock Options Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Stock Options, Outstanding, Number of Shares, Beginning Balance | 51,000 | 51,000 | |
Stock Options, Granted, Number of Shares | 0 | 0 | 0 |
Stock Options, Outstanding, Number of Shares, Ending Balance | 51,000 | 51,000 | 51,000 |
Stock Options, Exercisable, Number of Shares | 51,000 | ||
Stock Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 17.80 | $ 17.80 | |
Stock Options, Outstanding, Weighted Average Exercise Price, Ending Balance | 17.80 | $ 17.80 | $ 17.80 |
Stock Options, Exercisable, Weighted Average Exercise Price | $ 17.80 | ||
Stock Options, Outstanding, Weighted Average Contractual Life In Years | 6 months | 1 year 6 months | |
Stock Options, Exercisable, Weighted Average Contractual Life In Years | 6 months |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Schedule of Share Based Compensation Stock Options Activity (Parenthetical) (Detail) - $ / shares | 3 Months Ended | 12 Months Ended |
Sep. 30, 2012 | Dec. 31, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Reduction on weighted average exercises price | $ 7 | |
Dividends per share paid | $ 7 | $ 7 |
Receivables - Summary of Receiv
Receivables - Summary of Receivables (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Trade receivables | $ 145,418 | $ 158,400 |
Unbilled rental revenue | 5,363 | 5,772 |
Income tax receivables | 1,273 | 3,434 |
Other | 3 | 17 |
Total receivables | 152,057 | 167,623 |
Less allowance for doubtful accounts | (4,729) | (3,288) |
Total receivables, net | $ 147,328 | $ 164,335 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Total inventories, net | $ 96,818 | $ 133,987 |
New Equipment Sales [Member] | ||
Inventory [Line Items] | ||
Total inventories, net | 72,064 | 108,891 |
Used Equipment Sales [Member] | ||
Inventory [Line Items] | ||
Total inventories, net | 5,301 | 5,772 |
Parts, Supplies and Other [Member] | ||
Inventory [Line Items] | ||
Total inventories, net | $ 19,453 | $ 19,324 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Net of reserves for inventory obsolescence | $ 934 | $ 647 |
Property and Equipment - Summar
Property and Equipment - Summary of Net Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 217,955 | $ 198,284 |
Less accumulated depreciation and amortization | (107,170) | (88,376) |
Total net property and equipment | 110,785 | 109,908 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 7,054 | 7,368 |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 82,768 | 67,268 |
Building and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 54,094 | 53,021 |
Office and Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 53,413 | 51,542 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 14,707 | 12,628 |
Property under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,217 | 3,217 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 2,702 | $ 3,240 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization of property and equipment | $ 24.4 | $ 20.5 | $ 17 |
Computer software costs | 3.8 | 7.6 | |
Computer software, amortization | 3.8 | 3.8 | |
Office and Computer Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Interest costs capitalized | 0.6 | 0.6 | |
Capitalized costs | $ 26.9 | $ 26.9 |
Manufacturer Flooring Plans P55
Manufacturer Flooring Plans Payable - Additional Information (Detail) - Manufacturer Flooring Plans Payable [Member] | Dec. 31, 2015 |
Schedule Of Long Term Debt [Line Items] | |
Debt instrument interest rate, minimum | 0.00% |
Debt instrument interest rate, maximum | 3.50% |
Manufacturer Flooring Plans P56
Manufacturer Flooring Plans Payable - Maturities of Manufacturer Flooring Plans Payable (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Long Term Debt [Line Items] | ||
Total | $ 62,433 | $ 93,600 |
Manufacturer Flooring Plans Payable [Member] | ||
Schedule Of Long Term Debt [Line Items] | ||
2,016 | 40,000 | |
2,017 | 21,905 | |
2,018 | 528 | |
Total | $ 62,433 |
Accrued Expenses Payable and 57
Accrued Expenses Payable and Other Liabilities - Accrued Expenses Payable and Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Payable And Accrued Liabilities Current And Noncurrent [Abstract] | ||
Payroll and related liabilities | $ 18,250 | $ 23,663 |
Sales, use and property taxes | 8,366 | 7,722 |
Accrued interest | 15,284 | 15,329 |
Accrued insurance | 4,534 | 3,931 |
Deferred revenue | 5,556 | 5,195 |
Other | 3,561 | 4,708 |
Total accrued expenses payable and other liabilities | $ 55,551 | $ 60,548 |
Senior Unsecured Notes - Additi
Senior Unsecured Notes - Additional Information (Detail) - USD ($) | Feb. 04, 2013 | Sep. 19, 2012 | Aug. 20, 2012 | Sep. 30, 2012 | Dec. 31, 2015 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ||||||
Net proceeds to the company net of initial purchasers' discount | $ 520,700,000 | |||||
Actual dividends paid | $ 244,400,000 | |||||
Dividends per share paid | $ 7 | $ 7 | ||||
Shares on dividends paid | 34,911,455 | |||||
Outstanding shares of non-vested common stock on which dividends are to be paid | 232,431 | |||||
Amount of outstanding shares of non-vested common stock on which dividends are to be paid | $ 1,500,000 | |||||
One-time loss recorded on early extinguishment of debt | (10,200,000) | |||||
One-time loss recorded on early extinguishment of debt, after tax | 6,600,000 | |||||
Payment of tender premiums | 5,000,000 | |||||
Payment to redeem remaining outstanding old notes | 2,600,000 | |||||
Unamortized deferred financing costs written off | 2,600,000 | |||||
Transaction costs incurred in connection with extinguishment of debt | $ 1,700,000 | |||||
Percentage of principal amount of new notes to be redeemed before September 1, 2015 | 35.00% | |||||
Add-on Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 100,000,000 | |||||
Interest rate | 7.00% | |||||
Redemption price percentage as equal to principal amount of old notes to be redeemed | 101.00% | |||||
Maturity date of notes | Sep. 1, 2022 | |||||
Price percentage for Add-on Notes, Principal amount | 108.50% | |||||
Net proceeds from the offering of Add-on Notes | $ 110,400,000 | |||||
Offer to exchange notes and guarantees expiration date | Apr. 30, 2013 | |||||
Scenario, Previously Reported [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Consideration per base amount to those who tendered old notes prior to deadline | 1,031.67 | |||||
7% Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 530,000,000 | |||||
Interest rate | 7.00% | |||||
Year of maturity | 2,022 | 2,022 | ||||
Initial Purchasers' discount | $ 9,300,000 | |||||
Principal payments due until maturity | $ 0 | |||||
Maturity date of notes | Sep. 1, 2022 | |||||
8 3/8% Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 250,000,000 | |||||
Interest rate | 8.375% | |||||
Year of maturity | 2,016 | |||||
Repurchase of old notes | $ 158,700,000 | |||||
Base amount of old note fixed for exchange | $ 1,000 | |||||
Principal amount outstanding of old notes redeemed by company | $ 91,300,000 | |||||
Redemption price percentage as equal to principal amount of old notes to be redeemed | 102.792% | 101.00% |
Senior Unsecured Notes - Reconc
Senior Unsecured Notes - Reconciliation of Senior Unsecured Notes to Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | ||
Senior unsecured notes, beginning balance | $ 628,714 | $ 628,546 |
Accretion of discount | 1,055 | 1,055 |
Amortization of note premium | (887) | (887) |
Senior unsecured notes, ending balance | $ 628,882 | $ 628,714 |
Senior Secured Credit Facility
Senior Secured Credit Facility - Additional Information (Detail) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2015 | Feb. 18, 2016 | Feb. 05, 2015 | Dec. 31, 2014 | May. 21, 2014 | May. 20, 2014 | |
Debt Instrument [Line Items] | ||||||
Unused commitment fee margin percentage | 0.375% | |||||
Payment of dividends and/or stock repurchases or redemptions | $ 75,000,000 | |||||
Weighted average interest rate on the senior secured credit facility | 2.60% | |||||
Outstanding letters of credit | $ 7,200,000 | $ 7,200,000 | ||||
Basis points added to U S prime rate | 1.00% | |||||
Basis points added to LIBOR | 2.00% | |||||
Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding letters of credit | $ 7,700,000 | |||||
Non-vested Restricted Stock [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payment of special cash dividend per share previously declared by the Company | $ 7 | |||||
Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unused commitment fee margin percentage | 0.50% | |||||
Index rate plus an applicable margin Percentage | 1.25% | |||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
LIBOR plus an applicable margin Percentage | 2.25% | |||||
Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unused commitment fee margin percentage | 0.25% | |||||
Index rate plus an applicable margin Percentage | 0.75% | |||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
LIBOR plus an applicable margin Percentage | 1.75% | |||||
Letter of Credit [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Margin rate lowered in applicable to Letter of Credit | 2.25% | |||||
Letter of Credit [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Margin rate lowered in applicable to Letter of Credit | 1.75% | |||||
General Electric Capital Corporation [Member] | Senior Secured Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Existing credit facility with its lenders | $ 602,500,000 | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Existing credit facility with its lenders | $ 402,500,000 | |||||
Uncommitted incremental revolving capacity | $ 150,000,000 | $ 130,000,000 | ||||
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 | $ 410,400,000 | |||||
Debt instrument prime rate plus | 3.50% | |||||
Credit facility interest rate description | the interest rate on the Credit Facility was based on a 3.50% U.S. Prime Rate plus 100 basis points and LIBOR plus 200 basis points. | |||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Available borrowings under our senior secured credit facility | $ 419,000,000 | |||||
Amended and Restated Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Existing credit facility with its lenders | $ 602,500,000 |
Capital Lease Obligations - Add
Capital Lease Obligations - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015Lease_Agreement | |
Capital Lease Obligations [Line Items] | |
Number of capital lease obligations | 2 |
Capital Lease Obligations One [Member] | |
Capital Lease Obligations [Line Items] | |
Capital lease obligations expiring | 2,022 |
Capital Lease Obligations Two [Member] | |
Capital Lease Obligations [Line Items] | |
Capital lease obligations expiring | 2,029 |
Capital Lease Obligations - Fut
Capital Lease Obligations - Future Minimum Capital Lease Payments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Capital Leases Future Minimum Payments Net Present Value [Abstract] | ||
2,016 | $ 333 | |
2,017 | 333 | |
2,018 | 333 | |
2,019 | 333 | |
2,020 | 333 | |
Thereafter | 963 | |
Total minimum lease payments | 2,628 | |
Less: amount representing interest | (721) | |
Present value of minimum lease payments | $ 1,907 | $ 2,099 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal, Current | $ 85 | $ 576 | $ 1,262 |
U.S. Federal, Deferred | 25,206 | 30,753 | 16,306 |
U.S. Federal, Total | 25,291 | 31,329 | 17,568 |
State, Current | 634 | 151 | 1,860 |
State, Deferred | 5,446 | 6,065 | 1,579 |
State, Total | 6,080 | 6,216 | 3,439 |
Current, Total | 719 | 727 | 3,122 |
Deferred, Total | 30,652 | 36,818 | 17,885 |
Total | $ 31,371 | $ 37,545 | $ 21,007 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Accounts receivable | $ 1,808 | $ 1,246 |
Inventories | 364 | 252 |
Net operating losses | 25,881 | 11,978 |
AMT and tax credits | 3,432 | 3,210 |
Sec 263A costs | 1,082 | 1,491 |
Accrued liabilities | 4,419 | 4,279 |
Deferred compensation | 1,345 | 2,089 |
Accrued interest | 633 | 606 |
Stock-based compensation | 521 | 304 |
Goodwill and intangible assets | 1,359 | 2,659 |
Other assets | 247 | 91 |
Deferred tax assets, Total | 41,091 | 28,205 |
Deferred tax liabilities: | ||
Property and equipment | (195,349) | (151,703) |
Investments | (1,628) | (1,612) |
Deferred tax liabilities, Total | (196,977) | (153,315) |
Net deferred tax liabilities | $ (155,886) | $ (125,110) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Tax Disclosure [Abstract] | |
Statutory federal income tax rate | 35.00% |
Federal net operating loss carry forwards | $ 98 |
Expire in varying amounts for federal net operating loss carry forwards | 2029 through 2035 |
Federal alternative minimum tax credit carry forwards | $ 3 |
General business credit carry forwards | $ 0.3 |
Expire in varying amounts for business credit carry forwards | 2026 and 2029 |
State income tax credits expiration date | 2,018 |
State income tax credits carry forward | $ 0.1 |
Unrecognized tax benefits | $ 0.3 |
Income Taxes - Actual Income Ta
Income Taxes - Actual Income Tax Expense (benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Computed tax at statutory rates | $ 26,487 | $ 32,439 | $ 22,801 |
Permanent items - other | 953 | 1,069 | 716 |
Permanent items - excess of tax deductible goodwill | (4,673) | ||
State income tax, net of federal tax effect | 3,892 | 4,046 | 2,651 |
Increase in uncertain tax positions | 39 | (9) | (488) |
Other | 0 | 0 | 0 |
Total | $ 31,371 | $ 37,545 | $ 21,007 |
Income Taxes - Amounts of Gross
Income Taxes - Amounts of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Gross unrecognized tax benefits at January 1 | $ 5,962 | $ 5,943 |
Increases in tax positions taken in prior years | 73 | 42 |
Increases in tax positions taken in current year | 0 | 0 |
Decreases for tax positions taken in current year | 0 | 0 |
Lapse in statute of limitations | (23) | |
Gross unrecognized tax benefits at December 31 | $ 6,035 | $ 5,962 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 18, 2016 | |
Commitments And Contingencies Disclosure [Line Items] | |||||
Rent expense on property leases and equipment leases | $ 15.5 | $ 13 | $ 12.4 | ||
Outstanding letters of credit | $ 7.2 | $ 7.2 | |||
Subsequent Event [Member] | |||||
Commitments And Contingencies Disclosure [Line Items] | |||||
Outstanding letters of credit | $ 7.7 | ||||
Letter of Credit [Member] | |||||
Commitments And Contingencies Disclosure [Line Items] | |||||
Expiration date of letter of credit | Jan. 31, 2016 | ||||
Renewed letter of credit | $ 7.2 | ||||
Expiration date of renewed letter of credit | January 2,017 | ||||
Line of credit expiry period | 1 year | ||||
Letter of Credit [Member] | Subsequent Event [Member] | |||||
Commitments And Contingencies Disclosure [Line Items] | |||||
Expiration date of letter of credit | Jan. 31, 2017 | ||||
Line of credit expiry period | 1 year | ||||
Additional letter of credit | $ 0.5 |
Commitments and Contingencies69
Commitments and Contingencies - Future Minimum Operating Lease Payments (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2,016 | $ 13,717 |
2,017 | 14,245 |
2,018 | 12,748 |
2,019 | 10,633 |
2,020 | 10,307 |
Thereafter | 73,361 |
Total | $ 135,011 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation And Retirement Disclosure [Abstract] | |||
Amount of contributions in profit - sharing plan net of employee forfeitures | $ 2.2 | $ 1.7 | $ 1.7 |
Deferred Compensation Plans - A
Deferred Compensation Plans - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)CompensationPlan | |
Postemployment Benefits [Abstract] | ||
Number of deferred compensation plan | CompensationPlan | 1 | |
Effective rate | 3.25% | |
Aggregate deferred compensation payable | $ 2,174 | $ 2,106 |
Accrued interest | $ 1,600 | $ 1,600 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
T & J partnership [Member] | John M. Engquist [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest in equity | 50.00% | ||
Lease payments | $ 0.2 | $ 0.2 | $ 0.2 |
T & J partnership [Member] | John M. Engquist Mother [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest in equity | 50.00% | ||
Gulf Wide Aviation [Member] | John M. Engquist [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest in equity | 62.50% | ||
Payments in respect of charter cost | $ 0.2 | ||
Gulf Wide Aviation [Member] | John M. Engquist Mother [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest in equity | 25.00% | ||
Gulf Wide Aviation [Member] | John M Engquist Sister [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest in equity | 12.50% | ||
Perkins-McKenzie Insurance Agency Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Commissions paid | $ 0.9 | 0.8 | $ 0.7 |
Perkins-McKenzie Insurance Agency Inc. [Member] | John M. Engquist [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest in equity | 30.00% | ||
Perkins-McKenzie Insurance Agency Inc. [Member] | John M. Engquist Mother [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest in equity | 12.00% | ||
Perkins-McKenzie Insurance Agency Inc. [Member] | John M Engquist Sister [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest in equity | 6.00% | ||
B-C Equipment Sales Inc [Member] | John M. Engquist [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest in equity | 50.00% | ||
Products and services purchased | $ 0.2 | 0.2 | 0.2 |
Sales to related party | $ 0.1 | $ 0.1 | $ 0.2 |
Summarized Quarterly Financia73
Summarized Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Financial Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 273,208 | $ 276,853 | $ 262,360 | $ 227,410 | $ 297,761 | $ 275,044 | $ 280,378 | $ 237,229 | $ 1,039,831 | $ 1,090,412 | $ 987,756 |
Income from operations | 33,477 | 38,472 | 32,962 | 23,332 | 41,218 | 39,993 | 37,942 | 24,591 | 128,243 | 143,744 | 115,323 |
Income before provision for income taxes | 20,502 | 25,492 | 19,441 | 10,241 | 27,958 | 27,115 | 25,364 | 12,247 | 75,676 | 92,684 | 65,147 |
Net income | $ 11,967 | $ 14,772 | $ 11,480 | $ 6,086 | $ 16,677 | $ 15,300 | $ 15,726 | $ 7,436 | $ 44,305 | $ 55,139 | $ 44,140 |
Basic net income per common share | $ 0.34 | $ 0.42 | $ 0.33 | $ 0.17 | $ 0.47 | $ 0.43 | $ 0.45 | $ 0.21 | $ 1.26 | $ 1.57 | $ 1.26 |
Diluted net income per common share | $ 0.34 | $ 0.42 | $ 0.33 | $ 0.17 | $ 0.47 | $ 0.43 | $ 0.45 | $ 0.21 | $ 1.25 | $ 1.56 | $ 1.26 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015SegmentCustomer | Dec. 31, 2014Customer | Dec. 31, 2013Customer | |
Segment Reporting [Abstract] | |||
Number of reportable segment | Segment | 5 | ||
Sales to international customers | 0.60% | 0.30% | 1.20% |
Customer accounted for more than 10% of revenue | Customer | 0 | 0 | 0 |
Segment Information - Informati
Segment Information - Information about Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Revenues: | |||||||||||
Revenues | $ 273,208 | $ 276,853 | $ 262,360 | $ 227,410 | $ 297,761 | $ 275,044 | $ 280,378 | $ 237,229 | $ 1,039,831 | $ 1,090,412 | $ 987,756 |
Segment Gross Profit: | |||||||||||
Total gross profit | 345,732 | 347,938 | 301,836 | ||||||||
Segment identified assets: | |||||||||||
Total assets | 1,301,087 | 1,358,804 | 1,301,087 | 1,358,804 | |||||||
Equipment Rentals [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 443,024 | 404,110 | 338,935 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 208,985 | 196,139 | 161,649 | ||||||||
New Equipment Sales [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 238,172 | 328,036 | 294,768 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 25,937 | 38,510 | 31,881 | ||||||||
Used Equipment Sales [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 118,338 | 123,173 | 141,560 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 37,000 | 38,237 | 40,867 | ||||||||
Parts Sales [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 111,133 | 113,732 | 103,174 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 30,303 | 32,626 | 28,933 | ||||||||
Services Revenues [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 63,954 | 61,292 | 56,694 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 42,261 | 39,785 | 35,660 | ||||||||
Operating Segments [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 974,621 | 1,030,343 | 935,131 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 344,486 | 345,297 | 298,990 | ||||||||
Segment identified assets: | |||||||||||
Total assets | 990,211 | 1,023,694 | 990,211 | 1,023,694 | |||||||
Operating Segments [Member] | Equipment Rentals [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 443,024 | 404,110 | 338,935 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 208,985 | 196,139 | 161,649 | ||||||||
Segment identified assets: | |||||||||||
Total assets | 893,393 | 889,706 | 893,393 | 889,706 | |||||||
Operating Segments [Member] | New Equipment Sales [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 238,172 | 328,036 | 294,768 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 25,937 | 38,510 | 31,881 | ||||||||
Operating Segments [Member] | Used Equipment Sales [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 118,338 | 123,173 | 141,560 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 37,000 | 38,237 | 40,867 | ||||||||
Segment identified assets: | |||||||||||
Total assets | 77,365 | 114,664 | 77,365 | 114,664 | |||||||
Operating Segments [Member] | Parts Sales [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 111,133 | 113,732 | 103,174 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 30,303 | 32,626 | 28,933 | ||||||||
Operating Segments [Member] | Services Revenues [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 63,954 | 61,292 | 56,694 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 42,261 | 39,785 | 35,660 | ||||||||
Operating Segments [Member] | Parts and Services [Member] | |||||||||||
Segment identified assets: | |||||||||||
Total assets | 19,453 | 19,324 | 19,453 | 19,324 | |||||||
Non-Segmented [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 65,210 | 60,069 | 52,625 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 1,246 | 2,641 | $ 2,846 | ||||||||
Segment identified assets: | |||||||||||
Total assets | $ 310,876 | $ 335,110 | $ 310,876 | $ 335,110 |
Consolidating Financial Infor76
Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets: | ||||
Cash | $ 7,159 | $ 15,861 | $ 17,607 | $ 8,894 |
Receivables, net | 147,328 | 164,335 | ||
Inventories, net | 96,818 | 133,987 | ||
Prepaid expenses and other assets | 10,054 | 9,146 | ||
Rental equipment, net | 893,393 | 889,706 | ||
Property and equipment, net | 110,785 | 109,908 | ||
Deferred financing costs | 4,353 | 4,664 | ||
Goodwill | 31,197 | 31,197 | ||
Total assets | 1,301,087 | 1,358,804 | ||
Liabilities and Stockholders’ Equity: | ||||
Amount due on senior secured credit facility | 184,857 | 259,919 | ||
Accounts payable | 66,777 | 53,341 | ||
Manufacturer flooring plans payable | 62,433 | 93,600 | ||
Dividends payable | 32 | |||
Accrued expenses payable and other liabilities | 55,551 | 60,548 | ||
Senior unsecured notes | 628,882 | 628,714 | 628,546 | |
Capital leases payable | 1,907 | 2,099 | ||
Deferred income taxes | 155,886 | 125,110 | ||
Deferred compensation payable | 2,174 | 2,106 | ||
Total liabilities | 1,158,499 | 1,225,437 | ||
Stockholders’ equity | 142,588 | 133,367 | 94,812 | 48,636 |
Total liabilities and stockholders’ equity | 1,301,087 | 1,358,804 | ||
H & E Equipment Services [Member] | ||||
Assets: | ||||
Cash | 7,159 | 15,861 | $ 17,607 | $ 8,894 |
Receivables, net | 124,157 | 137,197 | ||
Inventories, net | 88,831 | 123,410 | ||
Prepaid expenses and other assets | 9,909 | 9,027 | ||
Rental equipment, net | 750,773 | 748,353 | ||
Property and equipment, net | 99,342 | 98,279 | ||
Deferred financing costs | 4,353 | 4,664 | ||
Investment in guarantor subsidiaries | 211,542 | 216,540 | ||
Goodwill | 1,671 | 1,671 | ||
Total assets | 1,297,737 | 1,355,002 | ||
Liabilities and Stockholders’ Equity: | ||||
Amount due on senior secured credit facility | 184,857 | 259,919 | ||
Accounts payable | 63,959 | 50,661 | ||
Manufacturer flooring plans payable | 62,433 | 93,600 | ||
Dividends payable | 62 | 23 | ||
Accrued expenses payable and other liabilities | 56,896 | 61,502 | ||
Senior unsecured notes | 628,882 | 628,714 | ||
Deferred income taxes | 155,886 | 125,110 | ||
Deferred compensation payable | 2,174 | 2,106 | ||
Total liabilities | 1,155,149 | 1,221,635 | ||
Stockholders’ equity | 142,588 | 133,367 | ||
Total liabilities and stockholders’ equity | 1,297,737 | 1,355,002 | ||
Guarantor Subsidiaries [Member] | ||||
Assets: | ||||
Receivables, net | 23,171 | 27,138 | ||
Inventories, net | 7,987 | 10,577 | ||
Prepaid expenses and other assets | 145 | 119 | ||
Rental equipment, net | 142,620 | 141,353 | ||
Property and equipment, net | 11,443 | 11,629 | ||
Goodwill | 29,526 | 29,526 | ||
Total assets | 214,892 | 220,342 | ||
Liabilities and Stockholders’ Equity: | ||||
Accounts payable | 2,818 | 2,680 | ||
Dividends payable | (30) | (23) | ||
Accrued expenses payable and other liabilities | (1,345) | (954) | ||
Capital leases payable | 1,907 | 2,099 | ||
Total liabilities | 3,350 | 3,802 | ||
Stockholders’ equity | 211,542 | 216,540 | ||
Total liabilities and stockholders’ equity | 214,892 | 220,342 | ||
Elimination [Member] | ||||
Assets: | ||||
Investment in guarantor subsidiaries | (211,542) | (216,540) | ||
Total assets | (211,542) | (216,540) | ||
Liabilities and Stockholders’ Equity: | ||||
Stockholders’ equity | (211,542) | (216,540) | ||
Total liabilities and stockholders’ equity | $ (211,542) | $ (216,540) |
Consolidating Financial Infor77
Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||||||||||
Revenues | $ 273,208 | $ 276,853 | $ 262,360 | $ 227,410 | $ 297,761 | $ 275,044 | $ 280,378 | $ 237,229 | $ 1,039,831 | $ 1,090,412 | $ 987,756 |
Services revenues | 63,954 | 61,292 | 56,694 | ||||||||
Other | 65,210 | 60,069 | 52,625 | ||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 694,099 | 742,474 | 685,920 | ||||||||
Services revenues | 21,693 | 21,507 | 21,034 | ||||||||
Other | 63,964 | 57,428 | 49,779 | ||||||||
Gross profit (loss): | |||||||||||
Gross profit | 345,732 | 347,938 | 301,836 | ||||||||
Selling, general and administrative expenses | 220,226 | 206,480 | 189,062 | ||||||||
Gain from sales of property and equipment, net | 2,737 | 2,286 | 2,549 | ||||||||
Income from operations | 33,477 | 38,472 | 32,962 | 23,332 | 41,218 | 39,993 | 37,942 | 24,591 | 128,243 | 143,744 | 115,323 |
Other income (expense): | |||||||||||
Interest expense | (54,030) | (52,353) | (51,404) | ||||||||
Other, net | 1,463 | 1,293 | 1,228 | ||||||||
Total other expense, net | (52,567) | (51,060) | (50,176) | ||||||||
Income before provision for income taxes | 20,502 | 25,492 | 19,441 | 10,241 | 27,958 | 27,115 | 25,364 | 12,247 | 75,676 | 92,684 | 65,147 |
Income tax expense | 31,371 | 37,545 | 21,007 | ||||||||
Net income | $ 11,967 | $ 14,772 | $ 11,480 | $ 6,086 | $ 16,677 | $ 15,300 | $ 15,726 | $ 7,436 | 44,305 | 55,139 | 44,140 |
Elimination [Member] | |||||||||||
Gross profit (loss): | |||||||||||
Equity in earnings of guarantor subsidiaries | (8,428) | (5,711) | (2,497) | ||||||||
Income from operations | (8,428) | (5,711) | (2,497) | ||||||||
Other income (expense): | |||||||||||
Income before provision for income taxes | (8,428) | (5,711) | (2,497) | ||||||||
Net income | (8,428) | (5,711) | (2,497) | ||||||||
Other [Member] | |||||||||||
Gross profit (loss): | |||||||||||
Gross profit | 1,246 | 2,641 | 2,846 | ||||||||
Rental Depreciation [Member] | |||||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 162,089 | 146,055 | 121,948 | ||||||||
Rental Expense [Member] | |||||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 71,950 | 61,916 | 55,338 | ||||||||
H & E Equipment Services [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 880,027 | 918,191 | 833,319 | ||||||||
Services revenues | 54,483 | 52,227 | 49,022 | ||||||||
Other | 53,051 | 49,510 | 43,341 | ||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 592,803 | 623,608 | 577,482 | ||||||||
Services revenues | 18,689 | 18,231 | 18,272 | ||||||||
Other | 51,763 | 46,851 | 40,298 | ||||||||
Gross profit (loss): | |||||||||||
Gross profit | 287,224 | 294,583 | 255,837 | ||||||||
Selling, general and administrative expenses | 183,235 | 170,449 | 155,881 | ||||||||
Equity in earnings of guarantor subsidiaries | 8,428 | 5,711 | 2,497 | ||||||||
Gain from sales of property and equipment, net | 2,255 | 1,870 | 2,220 | ||||||||
Income from operations | 114,672 | 131,715 | 104,673 | ||||||||
Other income (expense): | |||||||||||
Interest expense | (40,303) | (40,147) | (40,662) | ||||||||
Other, net | 1,307 | 1,116 | 1,136 | ||||||||
Total other expense, net | (38,996) | (39,031) | (39,526) | ||||||||
Income before provision for income taxes | 75,676 | 92,684 | 65,147 | ||||||||
Income tax expense | 31,371 | 37,545 | 21,007 | ||||||||
Net income | 44,305 | 55,139 | 44,140 | ||||||||
H & E Equipment Services [Member] | Other [Member] | |||||||||||
Gross profit (loss): | |||||||||||
Gross profit | 1,288 | 2,659 | 3,043 | ||||||||
H & E Equipment Services [Member] | Rental Depreciation [Member] | |||||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 135,511 | 122,763 | 100,627 | ||||||||
H & E Equipment Services [Member] | Rental Expense [Member] | |||||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 59,384 | 50,832 | 45,186 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 159,804 | 172,221 | 154,437 | ||||||||
Services revenues | 9,471 | 9,065 | 7,672 | ||||||||
Other | 12,159 | 10,559 | 9,284 | ||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 101,296 | 118,866 | 108,438 | ||||||||
Services revenues | 3,004 | 3,276 | 2,762 | ||||||||
Other | 12,201 | 10,577 | 9,481 | ||||||||
Gross profit (loss): | |||||||||||
Gross profit | 58,508 | 53,355 | 45,999 | ||||||||
Selling, general and administrative expenses | 36,991 | 36,031 | 33,181 | ||||||||
Gain from sales of property and equipment, net | 482 | 416 | 329 | ||||||||
Income from operations | 21,999 | 17,740 | 13,147 | ||||||||
Other income (expense): | |||||||||||
Interest expense | (13,727) | (12,206) | (10,742) | ||||||||
Other, net | 156 | 177 | 92 | ||||||||
Total other expense, net | (13,571) | (12,029) | (10,650) | ||||||||
Income before provision for income taxes | 8,428 | 5,711 | 2,497 | ||||||||
Net income | 8,428 | 5,711 | 2,497 | ||||||||
Guarantor Subsidiaries [Member] | Other [Member] | |||||||||||
Gross profit (loss): | |||||||||||
Gross profit | (42) | (18) | (197) | ||||||||
Guarantor Subsidiaries [Member] | Rental Depreciation [Member] | |||||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 26,578 | 23,292 | 21,321 | ||||||||
Guarantor Subsidiaries [Member] | Rental Expense [Member] | |||||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 12,566 | 11,084 | 10,152 | ||||||||
Equipment Rentals [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 443,024 | 404,110 | 338,935 | ||||||||
Gross profit (loss): | |||||||||||
Gross profit | 208,985 | 196,139 | 161,649 | ||||||||
Equipment Rentals [Member] | H & E Equipment Services [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 366,160 | 338,708 | 280,700 | ||||||||
Gross profit (loss): | |||||||||||
Gross profit | 171,265 | 165,113 | 134,887 | ||||||||
Equipment Rentals [Member] | Guarantor Subsidiaries [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 76,864 | 65,402 | 58,235 | ||||||||
Gross profit (loss): | |||||||||||
Gross profit | 37,720 | 31,026 | 26,762 | ||||||||
New Equipment Sales [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 238,172 | 328,036 | 294,768 | ||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 212,235 | 289,526 | 262,887 | ||||||||
Gross profit (loss): | |||||||||||
Gross profit | 25,937 | 38,510 | 31,881 | ||||||||
New Equipment Sales [Member] | H & E Equipment Services [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 213,476 | 278,869 | 251,911 | ||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 190,013 | 245,423 | 224,051 | ||||||||
Gross profit (loss): | |||||||||||
Gross profit | 23,463 | 33,446 | 27,860 | ||||||||
New Equipment Sales [Member] | Guarantor Subsidiaries [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 24,696 | 49,167 | 42,857 | ||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 22,222 | 44,103 | 38,836 | ||||||||
Gross profit (loss): | |||||||||||
Gross profit | 2,474 | 5,064 | 4,021 | ||||||||
Used Equipment Sales [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 118,338 | 123,173 | 141,560 | ||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 81,338 | 84,936 | 100,693 | ||||||||
Gross profit (loss): | |||||||||||
Gross profit | 37,000 | 38,237 | 40,867 | ||||||||
Used Equipment Sales [Member] | H & E Equipment Services [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 96,114 | 99,864 | 119,351 | ||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 66,888 | 68,739 | 84,881 | ||||||||
Gross profit (loss): | |||||||||||
Gross profit | 29,226 | 31,125 | 34,470 | ||||||||
Used Equipment Sales [Member] | Guarantor Subsidiaries [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 22,224 | 23,309 | 22,209 | ||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 14,450 | 16,197 | 15,812 | ||||||||
Gross profit (loss): | |||||||||||
Gross profit | 7,774 | 7,112 | 6,397 | ||||||||
Parts Sales [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 111,133 | 113,732 | 103,174 | ||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 80,830 | 81,106 | 74,241 | ||||||||
Gross profit (loss): | |||||||||||
Gross profit | 30,303 | 32,626 | 28,933 | ||||||||
Parts Sales [Member] | H & E Equipment Services [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 96,743 | 99,013 | 88,994 | ||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 70,555 | 70,769 | 64,167 | ||||||||
Gross profit (loss): | |||||||||||
Gross profit | 26,188 | 28,244 | 24,827 | ||||||||
Parts Sales [Member] | Guarantor Subsidiaries [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 14,390 | 14,719 | 14,180 | ||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 10,275 | 10,337 | 10,074 | ||||||||
Gross profit (loss): | |||||||||||
Gross profit | 4,115 | 4,382 | 4,106 | ||||||||
Services Revenues [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 63,954 | 61,292 | 56,694 | ||||||||
Cost of revenues: | |||||||||||
Cost of revenues | 21,693 | 21,507 | 21,034 | ||||||||
Gross profit (loss): | |||||||||||
Gross profit | 42,261 | 39,785 | 35,660 | ||||||||
Services Revenues [Member] | H & E Equipment Services [Member] | |||||||||||
Gross profit (loss): | |||||||||||
Gross profit | 35,794 | 33,996 | 30,750 | ||||||||
Services Revenues [Member] | Guarantor Subsidiaries [Member] | |||||||||||
Gross profit (loss): | |||||||||||
Gross profit | $ 6,467 | $ 5,789 | $ 4,910 |
Consolidating Financial Infor78
Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 11,967 | $ 14,772 | $ 11,480 | $ 6,086 | $ 16,677 | $ 15,300 | $ 15,726 | $ 7,436 | $ 44,305 | $ 55,139 | $ 44,140 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization of property and equipment | 24,368 | 20,459 | 16,955 | ||||||||
Depreciation on rental equipment | 162,089 | 146,055 | 121,948 | ||||||||
Amortization of deferred financing costs | 1,036 | 934 | 1,094 | ||||||||
Accretion of note discount, net of premium amortization | 168 | 168 | 231 | ||||||||
Provision for losses on accounts receivable | 3,441 | 2,859 | 3,194 | ||||||||
Provision for inventory obsolescence | 295 | 159 | 220 | ||||||||
Provision for deferred income taxes | 30,776 | 36,819 | 17,009 | ||||||||
Stock-based compensation expense | 2,655 | 2,598 | 2,618 | ||||||||
Gain from sales of property and equipment, net | (2,737) | (2,286) | (2,549) | ||||||||
Gain from sales of rental equipment, net | (35,134) | (35,769) | (38,575) | ||||||||
Tax deficiency from stock-based awards | (125) | (24) | (307) | ||||||||
Writedown of goodwill for tax-deductible goodwill in excess of book goodwill | 0 | 0 | 877 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | 13,566 | (35,224) | 6,503 | ||||||||
Inventories | (14,517) | (66,723) | (67,754) | ||||||||
Prepaid expenses and other assets | (908) | (3,122) | (815) | ||||||||
Accounts payable | 13,436 | (14,438) | 31,659 | ||||||||
Manufacturer flooring plans payable | (31,167) | 44,538 | (1,777) | ||||||||
Accrued expenses payable and other liabilities | (4,995) | 6,110 | 3,916 | ||||||||
Deferred compensation payable | 68 | 66 | 65 | ||||||||
Net cash provided by operating activities | 206,620 | 158,318 | 138,652 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (26,797) | (33,235) | (29,479) | ||||||||
Purchases of rental equipment | (178,772) | (368,491) | (267,465) | ||||||||
Proceeds from sales of property and equipment | 4,289 | 3,657 | 2,759 | ||||||||
Proceeds from sales of rental equipment | 99,521 | 101,426 | 114,595 | ||||||||
Net cash used in investing activities | (101,759) | (296,643) | (179,590) | ||||||||
Cash flows from financing activities: | |||||||||||
Excess tax benefit from stock-based awards | 307 | ||||||||||
Purchases of treasury stock | (470) | (1,467) | (890) | ||||||||
Dividend paid | (37,114) | (18,325) | (855) | ||||||||
Proceeds from issuance of senior unsecured notes | 107,250 | ||||||||||
Borrowings on senior secured credit facility | 982,961 | 1,235,630 | 1,058,990 | ||||||||
Payments on senior secured credit facility | (1,058,023) | (1,078,171) | (1,114,249) | ||||||||
Payments of deferred financing costs | (725) | (909) | (733) | ||||||||
Payments of capital lease obligations | (192) | (179) | (169) | ||||||||
Net cash provided by (used in) financing activities | (113,563) | 136,579 | 49,651 | ||||||||
Net increase (decrease) in cash | (8,702) | (1,746) | 8,713 | ||||||||
Cash, beginning of year | 15,861 | 17,607 | 15,861 | 17,607 | 8,894 | ||||||
Cash, end of year | 7,159 | 15,861 | 7,159 | 15,861 | 17,607 | ||||||
H & E Equipment Services [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 44,305 | 55,139 | 44,140 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization of property and equipment | 21,443 | 18,025 | 14,871 | ||||||||
Depreciation on rental equipment | 135,511 | 122,763 | 100,627 | ||||||||
Amortization of deferred financing costs | 1,036 | 934 | 1,094 | ||||||||
Accretion of note discount, net of premium amortization | 168 | 168 | 231 | ||||||||
Provision for losses on accounts receivable | 3,223 | 2,428 | 2,568 | ||||||||
Provision for inventory obsolescence | 295 | 159 | 220 | ||||||||
Provision for deferred income taxes | 30,776 | 36,819 | 17,009 | ||||||||
Stock-based compensation expense | 2,655 | 2,598 | 2,618 | ||||||||
Gain from sales of property and equipment, net | (2,255) | (1,870) | (2,220) | ||||||||
Gain from sales of rental equipment, net | (27,732) | (28,750) | (32,235) | ||||||||
Tax deficiency from stock-based awards | (125) | (24) | (307) | ||||||||
Writedown of goodwill for tax-deductible goodwill in excess of book goodwill | 877 | ||||||||||
Equity in earnings of guarantor subsidiaries | (8,428) | (5,711) | (2,497) | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | 9,817 | (25,100) | 8,252 | ||||||||
Inventories | (12,168) | (61,693) | (62,300) | ||||||||
Prepaid expenses and other assets | (882) | (3,174) | (744) | ||||||||
Accounts payable | 13,298 | (10,126) | 26,000 | ||||||||
Manufacturer flooring plans payable | (31,167) | 44,538 | (1,327) | ||||||||
Accrued expenses payable and other liabilities | (4,604) | 7,437 | 3,916 | ||||||||
Deferred compensation payable | 68 | 66 | 65 | ||||||||
Net cash provided by operating activities | 175,234 | 154,626 | 120,858 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (23,989) | (30,849) | (26,576) | ||||||||
Purchases of rental equipment | (143,840) | (299,387) | (229,952) | ||||||||
Proceeds from sales of property and equipment | 3,738 | 2,241 | 2,363 | ||||||||
Proceeds from sales of rental equipment | 80,093 | 79,991 | 95,378 | ||||||||
Investment in subsidiaries | 13,426 | (45,126) | (3,201) | ||||||||
Net cash used in investing activities | (70,572) | (293,130) | (161,988) | ||||||||
Cash flows from financing activities: | |||||||||||
Excess tax benefit from stock-based awards | 307 | ||||||||||
Purchases of treasury stock | (470) | (1,467) | (890) | ||||||||
Dividend paid | (37,107) | (18,325) | (832) | ||||||||
Proceeds from issuance of senior unsecured notes | 107,250 | ||||||||||
Borrowings on senior secured credit facility | 982,961 | 1,235,630 | 1,058,990 | ||||||||
Payments on senior secured credit facility | (1,058,023) | (1,078,171) | (1,114,249) | ||||||||
Payments of deferred financing costs | (725) | (909) | (733) | ||||||||
Net cash provided by (used in) financing activities | (113,364) | 136,758 | 49,843 | ||||||||
Net increase (decrease) in cash | (8,702) | (1,746) | 8,713 | ||||||||
Cash, beginning of year | $ 15,861 | $ 17,607 | 15,861 | 17,607 | 8,894 | ||||||
Cash, end of year | $ 7,159 | $ 15,861 | 7,159 | 15,861 | 17,607 | ||||||
Guarantor Subsidiaries [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 8,428 | 5,711 | 2,497 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization of property and equipment | 2,925 | 2,434 | 2,084 | ||||||||
Depreciation on rental equipment | 26,578 | 23,292 | 21,321 | ||||||||
Provision for losses on accounts receivable | 218 | 431 | 626 | ||||||||
Gain from sales of property and equipment, net | (482) | (416) | (329) | ||||||||
Gain from sales of rental equipment, net | (7,402) | (7,019) | (6,340) | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | 3,749 | (10,124) | (1,749) | ||||||||
Inventories | (2,349) | (5,030) | (5,454) | ||||||||
Prepaid expenses and other assets | (26) | 52 | (71) | ||||||||
Accounts payable | 138 | (4,312) | 5,659 | ||||||||
Manufacturer flooring plans payable | (450) | ||||||||||
Accrued expenses payable and other liabilities | (391) | (1,327) | |||||||||
Net cash provided by operating activities | 31,386 | 3,692 | 17,794 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (2,808) | (2,386) | (2,903) | ||||||||
Purchases of rental equipment | (34,932) | (69,104) | (37,513) | ||||||||
Proceeds from sales of property and equipment | 551 | 1,416 | 396 | ||||||||
Proceeds from sales of rental equipment | 19,428 | 21,435 | 19,217 | ||||||||
Net cash used in investing activities | (17,761) | (48,639) | (20,803) | ||||||||
Cash flows from financing activities: | |||||||||||
Dividend paid | (7) | (23) | |||||||||
Payments of capital lease obligations | (192) | (179) | (169) | ||||||||
Capital contributions | (13,426) | 45,126 | 3,201 | ||||||||
Net cash provided by (used in) financing activities | (13,625) | 44,947 | 3,009 | ||||||||
Elimination [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | (8,428) | (5,711) | (2,497) | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in earnings of guarantor subsidiaries | 8,428 | 5,711 | 2,497 | ||||||||
Cash flows from investing activities: | |||||||||||
Investment in subsidiaries | (13,426) | 45,126 | 3,201 | ||||||||
Net cash used in investing activities | (13,426) | 45,126 | 3,201 | ||||||||
Cash flows from financing activities: | |||||||||||
Capital contributions | 13,426 | (45,126) | (3,201) | ||||||||
Net cash provided by (used in) financing activities | $ 13,426 | $ (45,126) | $ (3,201) |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 3,935 | $ 4,298 | $ 5,211 |
Additions Charged to Costs and Expenses | 3,736 | 3,018 | 3,414 |
Recoveries (Deductions) | (2,008) | (3,381) | (4,327) |
Balance at End of Year | 5,663 | 3,935 | 4,298 |
Allowance for doubtful accounts receivable [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 3,288 | 3,651 | 4,593 |
Additions Charged to Costs and Expenses | 3,441 | 2,859 | 3,194 |
Recoveries (Deductions) | (2,000) | (3,222) | (4,136) |
Balance at End of Year | 4,729 | 3,288 | 3,651 |
Allowance for inventory obsolescence [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 647 | 647 | 618 |
Additions Charged to Costs and Expenses | 295 | 159 | 220 |
Recoveries (Deductions) | (8) | (159) | (191) |
Balance at End of Year | $ 934 | $ 647 | $ 647 |