Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 21, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
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 Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 35,463,599 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash | $ 4,732 | $ 7,159 |
Receivables, net of allowance for doubtful accounts of $5,042 and $4,729, respectively | 145,747 | 147,328 |
Inventories, net of reserves for obsolescence of $834 and $934, respectively | 98,104 | 96,818 |
Prepaid expenses and other assets | 10,024 | 10,054 |
Rental equipment, net of accumulated depreciation of $392,929 and $390,317, respectively | 873,147 | 893,393 |
Property and equipment, net of accumulated depreciation and amortization of $112,077 and $107,170, respectively | 109,266 | 110,785 |
Deferred financing costs, net of accumulated amortization of $11,550 and $11,347, respectively | 2,574 | 2,777 |
Goodwill | 31,197 | 31,197 |
Total assets | 1,274,791 | 1,299,511 |
Liabilities: | ||
Amounts due on senior secured credit facility | 171,048 | 184,857 |
Accounts payable | 66,440 | 66,777 |
Manufacturer flooring plans payable | 64,117 | 62,433 |
Accrued expenses payable and other liabilities | 42,981 | 55,551 |
Dividends payable | 48 | 32 |
Senior unsecured notes, net of unaccreted discount of $2,593 and $2,694, respectively | 627,407 | 627,306 |
Capital leases payable | 1,858 | 1,907 |
Deferred income taxes | 159,896 | 155,886 |
Deferred compensation payable | 1,795 | 2,174 |
Total liabilities | $ 1,135,590 | $ 1,156,923 |
Commitments and Contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 25,000,000 shares authorized; no shares issued | ||
Common stock, $0.01 par value, 175,000,000 shares authorized; 39,373,548 and 39,333,571 shares issued at March 31, 2016 and December 31, 2015, respectively, and 35,464,924 and 35,428,868 shares outstanding at March 31, 2016 and December 31, 2015, respectively | $ 393 | $ 392 |
Additional paid-in capital | 221,686 | 220,879 |
Treasury stock at cost, 3,908,624 and 3,904,703 shares of common stock held at March 31, 2016 and December 31, 2015, respectively | (60,405) | (60,405) |
Retained deficit | (22,473) | (18,278) |
Total stockholders' equity | 139,201 | 142,588 |
Total liabilities and stockholders' equity | $ 1,274,791 | $ 1,299,511 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivables | $ 5,042 | $ 4,729 |
Reserves for obsolescence inventories | 834 | 934 |
Accumulated depreciation, rental equipment | 392,929 | 390,317 |
Accumulated depreciation and amortization, property and equipment | 112,077 | 107,170 |
Accumulated amortization, deferred financing costs | 11,550 | 11,347 |
Unaccreted discount, net | $ 2,593 | $ 2,694 |
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 | 39,373,548 | 39,333,571 |
Common stock, shares outstanding | 35,464,924 | 35,428,868 |
Treasury stock, shares | 3,908,624 | 3,904,703 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | ||
Revenues | $ 247,010 | $ 227,410 |
Cost of revenues: | ||
Cost of revenues | 165,866 | 151,070 |
Gross profit | 81,144 | 76,340 |
Selling, general and administrative expenses | 59,374 | 53,466 |
Gain on sales of property and equipment, net | 662 | 458 |
Income from operations | 22,432 | 23,332 |
Other income (expense): | ||
Interest expense | (13,407) | (13,445) |
Other, net | 430 | 354 |
Total other expense, net | (12,977) | (13,091) |
Income before provision for income taxes | 9,455 | 10,241 |
Provision for income taxes | 3,881 | 4,155 |
Net income | $ 5,574 | $ 6,086 |
Net income per common share: | ||
Basic | $ 0.16 | $ 0.17 |
Diluted | $ 0.16 | $ 0.17 |
Weighted average common shares outstanding: | ||
Basic | 35,341 | 35,227 |
Diluted | 35,398 | 35,286 |
Dividends declared per common share outstanding | $ 0.275 | $ 0.25 |
Rental Depreciation [Member] | ||
Cost of revenues: | ||
Cost of revenues | $ 39,497 | $ 39,944 |
Rental Expense [Member] | ||
Cost of revenues: | ||
Cost of revenues | 16,763 | 15,611 |
Other [Member] | ||
Revenues: | ||
Revenues | 15,149 | 14,373 |
Cost of revenues: | ||
Cost of revenues | 15,056 | 14,514 |
Gross profit | 93 | (141) |
Equipment Rentals [Member] | ||
Revenues: | ||
Revenues | 102,838 | 101,389 |
Cost of revenues: | ||
Gross profit | 46,578 | 45,834 |
New Equipment Sales [Member] | ||
Revenues: | ||
Revenues | 57,179 | 44,537 |
Cost of revenues: | ||
Cost of revenues | 50,474 | 39,319 |
Gross profit | 6,705 | 5,218 |
Used Equipment Sales [Member] | ||
Revenues: | ||
Revenues | 27,574 | 25,070 |
Cost of revenues: | ||
Cost of revenues | 18,512 | 16,886 |
Gross profit | 9,062 | 8,184 |
Parts Sales [Member] | ||
Revenues: | ||
Revenues | 27,969 | 27,085 |
Cost of revenues: | ||
Cost of revenues | 20,263 | 19,519 |
Gross profit | 7,706 | 7,566 |
Services Revenues [Member] | ||
Revenues: | ||
Revenues | 16,301 | 14,956 |
Cost of revenues: | ||
Cost of revenues | 5,301 | 5,277 |
Gross profit | $ 11,000 | $ 9,679 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 5,574 | $ 6,086 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 6,702 | 5,624 |
Depreciation of rental equipment | 39,497 | 39,944 |
Amortization of deferred financing costs | 262 | 249 |
Accretion of note discount, net of premium amortization | 42 | 42 |
Provision for losses on accounts receivable | 1,008 | 638 |
Provision for inventory obsolescence | 7 | 29 |
Change in deferred income taxes | 4,010 | 4,025 |
Stock-based compensation expense | 1,041 | 1,021 |
Tax deficiency from stock-based awards | (234) | |
Gain from sales of property and equipment, net | (662) | (458) |
Gain from sales of rental equipment, net | (8,884) | (7,927) |
Changes in operating assets and liabilities: | ||
Receivables | 573 | 31,813 |
Inventories | (23,235) | (59,745) |
Prepaid expenses and other assets | 30 | (2,438) |
Accounts payable | (337) | 19,525 |
Manufacturer flooring plans payable | 1,684 | (19,306) |
Accrued expenses payable and other liabilities | (12,961) | (18,581) |
Deferred compensation payable | (379) | 17 |
Net cash provided by operating activities | 13,738 | 558 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (4,966) | (6,462) |
Purchases of rental equipment | (12,620) | (19,930) |
Proceeds from sales of property and equipment | 837 | 538 |
Proceeds from sales of rental equipment | 24,195 | 20,646 |
Net cash provided by (used in) investing activities | 7,446 | (5,208) |
Cash flows from financing activities: | ||
Borrowings on senior secured credit facility | 237,258 | 264,490 |
Payments on senior secured credit facility | (251,067) | (261,562) |
Payments of deferred financing costs | (725) | |
Dividends paid | (9,753) | (8,815) |
Payments of capital lease obligations | (49) | (47) |
Net cash used in financing activities | (23,611) | (6,659) |
Net decrease in cash | (2,427) | (11,309) |
Cash, beginning of period | 7,159 | 15,861 |
Cash, end of period | 4,732 | 4,552 |
Noncash asset purchases: | ||
Assets transferred from new and used inventory to rental fleet | 21,942 | 31,232 |
Purchases of property and equipment included in accrued expenses payable and other liabilities | 392 | |
Cash paid during the period for: | ||
Interest | 24,117 | 24,171 |
Income taxes paid, net of refunds received | $ (436) | $ (105) |
Organization and Nature of Oper
Organization and Nature of Operations | 3 Months Ended |
Mar. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Nature of Operations | (1) Organization and Nature of Operations Basis of Presentation Our condensed consolidated financial statements include the financial position and results of operations of H&E Equipment Services, Inc. and its wholly-owned subsidiaries H&E Finance Corp., GNE Investments, Inc., Great Northern Equipment, Inc., H&E California Holding, Inc., H&E Equipment Services (California), LLC and H&E Equipment Services (Mid-Atlantic), Inc., collectively referred to herein as “we” or “us” or “our” or the “Company.” The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such regulations. In the opinion of management, all adjustments (consisting of all normal and recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, and therefore, the results and trends in these interim condensed consolidated financial statements may not be the same for the entire year. These interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended December 31, 2015, from which the consolidated balance sheet amounts as of December 31, 2015 were derived. All significant intercompany accounts and transactions have been eliminated in these condensed consolidated financial statements. Business combinations accounted for as purchases are included in the condensed consolidated financial statements from their respective dates of acquisition. The nature of our business is such that short-term obligations are typically met by cash flows generated from long-term assets. Consequently, and consistent with industry practice, the accompanying condensed consolidated balance sheets are presented on an unclassified basis. Nature of Operations As one of the largest integrated equipment services companies in the United States focused on heavy construction and industrial equipment, we rent, sell and provide parts and service support for four core categories of specialized equipment: (1) hi-lift or aerial work platform equipment; (2) cranes; (3) earthmoving equipment; and (4) industrial lift trucks. By providing equipment 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. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | (2) Significant Accounting Policies We describe our significant accounting policies in note 2 of the notes to consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2015. During the three month period ended March 31, 2016, there were no significant changes to those accounting policies. Use of Estimates We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, which requires management to use its judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. These assumptions and estimates could have a material effect on our condensed consolidated financial statements. Actual results may differ materially from those estimates. We review our estimates on an ongoing basis based on information currently available, and changes in facts and circumstances may cause us to revise these estimates. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Revenue Recognition In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . In March 2016, the FASB Issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Guidance Adopted in the First Quarter of 2016 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 Deferred Financing Costs Total Assets Senior Unsecured Notes Total Liabilities Total Liabilities and Stockholders’ Equity Previously reported $ 4,353 $ 1,301,087 $ 628,882 $ 1,158,499 $ 1,301,087 Reclassification of debt issuance costs (1,576 ) (1,576 ) (1,576 ) (1,576 ) (1,576 ) Current presentation $ 2,777 $ 1,299,511 $ 627,306 $ 1,156,923 $ 1,299,511 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | (3) Fair Value of Financial Instruments Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The FASB fair value measurement guidance established a fair value hierarchy that prioritizes the inputs used to measure fair value. The three broad levels of the fair value hierarchy are as follows: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly Level 3 – Unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own assumptions The carrying value of financial instruments reported in the accompanying condensed consolidated balance sheets for cash, accounts receivable, accounts payable and accrued expenses payable and other liabilities approximate fair value due to the immediate or short-term nature or maturity of these financial instruments. The fair value of our letter of credit is based on fees currently charged for similar agreements. The carrying amounts and fair values of our other financial instruments subject to fair value disclosures as of March 31, 2016 and December 31, 2015 are presented in the table below (amounts in thousands) and have been calculated based upon market quotes and present value calculations based on market rates. March 31, 2016 Carrying Amount Fair Value Manufacturer flooring plans payable with interest computed at 5.00% (Level 3) $ 64,117 $ 56,186 Senior unsecured notes with interest computed at 7.0% (Level 1) 627,407 639,450 Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) 1,858 1,277 Letter of credit (Level 3) — 155 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% (Level 1) 627,306 617,400 Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) 1,907 1,329 Letter of credit (Level 3) — 145 During the three month periods ended March 31, 2016 and 2015, there were no transfers of financial assets or liabilities in or out of Level 1, Level 2 or Level 3 of the fair value hierarchy. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | (4) Stockholders’ Equity The following table summarizes the activity in Stockholders’ Equity for the three month period ended March 31, 2016 (amounts in thousands, except share data): Common Stock Additional Retained 'Total Shares Issued Amount Paid-in Capital Treasury Stock Earnings (Deficit) Stockholders’ Equity Balances at December 31, 2015 39,333,571 $ 392 $ 220,879 $ (60,405 ) $ (18,278 ) $ 142,588 Stock-based compensation — — 1,041 — — 1,041 Cash dividends declared on common stock ($0.275 per share) — — — — (9,769 ) (9,769 ) Tax deficiency associated with stock-based awards — — (234 ) — — (234 ) Issuance of common stock 39,977 1 — — — 1 Net income — — — — 5,574 5,574 Balances at March 31, 2016 39,373,548 $ 393 $ 221,686 $ (60,405 ) $ (22,473 ) $ 139,201 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | (5) Stock-Based Compensation We account for our stock-based compensation plan using the fair value recognition provisions of Accounting Standards Codification (“ASC”) 718, Stock Compensation Non-vested Stock The following table summarizes our non-vested stock activity for the three months ended March 31, 2016: Number of Shares Weighted Average Grant Date Fair Non-vested stock at December 31, 2015 322,355 $ 19.90 Granted 39,977 $ 11.61 Vested (39,977 ) $ 11.61 Forfeited (3,921 ) $ 19.07 Non-vested stock at March 31, 2016 318,434 $ 19.91 As of March 31, 2016, we had unrecognized compensation expense of approximately $4.1 million related to non-vested stock that we expect to be recognized over a weighted-average period of approximately 2.4 years. The following table summarizes compensation expense related to non-vested stock, which is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income for the three months ended March 31, 2016 and 2015 (amounts in thousands): For the Three Months Ended March 31, 2016 2015 Compensation expense $ 1,041 $ 1,021 Stock Options At March 31, 2016, there is no unrecognized compensation expense as all stock option awards have fully vested. The following table represents stock option activity for the three months ended March 31, 2016: Number of Shares Weighted Average Exercise Price Weighted Average Contractual Life In Years Outstanding options at December 31, 2015 51,000 $ 17.80 Granted — — Exercised — — Canceled, forfeited or expired (45,000 ) $ 17.60 Outstanding options at March 31, 2016 6,000 $ 19.27 1.4 Options exercisable at March 31, 2016 6,000 $ 19.27 1.4 The closing price of our common stock at March 31, 2016 was $17.53. Options outstanding at March 31, 2016 have grant date fair values that exceed the March 31, 2016 closing stock price. |
Income per Share
Income per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Income per Share | (6) Income per Share Income per common share for the three months ended March 31, 2016 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 was approximately 0.7% and 0.4% of total outstanding shares for the three months ended March 31, 2016 and 2015, respectively, and, consequently, was immaterial to the basic and diluted EPS calculations. Therefore, use of the two-class method had no impact on our basic and diluted EPS calculations for the periods presented. The following table sets forth the computation of basic and diluted net income per common share for the three months ended March 31, 2016 and 2015 (amounts in thousands, except per share amounts): Three Months Ended March 31, 2016 2015 Basic net income per share: Net income $ 5,574 $ 6,086 Weighted average number of common shares outstanding 35,341 35,227 Net income per share of common stock – basic $ 0.16 $ 0.17 Diluted net income per share: Net income $ 5,574 $ 6,086 Weighted average number of common shares outstanding 35,341 35,227 Effect of dilutive securities: Effect of dilutive stock options — 19 Effect of dilutive non-vested restricted stock 57 40 Weighted average number of common shares outstanding – diluted 35,398 35,286 Net income per share of common stock – diluted $ 0.16 $ 0.17 Common shares excluded from the denominator as anti-dilutive: Stock options 13 — Non-vested restricted stock 7 3 |
Senior Secured Credit Facility
Senior Secured Credit Facility | 3 Months Ended |
Mar. 31, 2016 | |
Secured Debt [Member] | |
Senior Secured Credit Facility | (7) Senior Secured Credit Facility We and our subsidiaries are parties to a $602.5 million senior secured credit facility (the “Credit Facility”) with Wells Fargo Capital Finance, LLC (“Wells Fargo”), as agent (as successor in such capacity to General Electric Capital Corporation (“GE Capital”)), 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, GE Capital, as administrative agent, Bank of America, N.A. as co-syndication agent and documentation agent, Wells Fargo, as co-syndication agent and Deutsche Bank Securities Inc. as joint lead arranger and joint bookrunner. In March 2016, Wells Fargo succeeded and was substituted for GE Capital as the administrative agent under the Amended and Restated Credit Agreement. The Amended and Restated Credit Agreement, among other things, (i) extends the maturity date of the Credit Facility from February 29, 2017 to May 21, 2019, (ii) increases the uncommitted incremental revolving capacity from $130 million to $150 million, (iii) permits a like-kind exchange program under Section 1031 of the Internal Revenue Code of 1986, as amended, (iv) provides that the unused commitment fee margin will be either 0.50%, 0.375% or 0.25%, depending on the ratio of the average of the daily closing balances of the aggregate revolving loans, swing line loans and letters of credit outstanding during each month to the aggregate commitments for the revolving loans, swing line loans and letters of credit, (v) lowers the interest rate (a) in the case of index rate revolving loans, to the index rate plus an applicable margin of 0.75% to 1.25% depending on the leverage ratio and (b) in the case of LIBOR revolving loans, to LIBOR plus an applicable margin of 1.75% to 2.25%, depending on the leverage ratio, (vi) lowers the margin applicable to the letter of credit fee to between 1.75% and 2.25%, depending on the leverage ratio, and (vii) permits, under certain conditions, for the payment of dividends and/or stock repurchases or redemptions on the capital stock of the Company of up to $75 million per calendar year and further additionally permits the payment of the special cash dividend of $7.00 per share previously declared by the Company on August 20, 2012 to the holders of outstanding restricted stock of the Company following the declared payment date with such permission not tied to the vesting of such restricted stock (which includes the Company’s payment in June 2014 of all amounts that remained payable to the holders of the restricted stock of the Company with respect to such special dividend that was otherwise payable following the applicable vesting dates in May and July 2014 and 2015). On February 5, 2015, we entered into an amendment of the Credit Facility which, among other things, increased the total amount of revolving loan commitments under the Amended and Restated Credit Agreement from $402.5 million to $602.5 million. As of March 31, 2016, we were in compliance with our financial covenants under the Credit Facility. At March 31, 2016, the Company could borrow up to an additional $423.7 million and remain in compliance with the debt covenants under the Company’s Credit Facility. At March 31, 2016, the interest rate on the Credit Facility was based on a 3.25% U.S. Prime Rate plus 100 basis points and LIBOR plus 200 basis points. The weighted average interest rate at March 31, 2016 was approximately 2.7%. At April 21, 2016, we had $419.6 million of available borrowings under our Credit Facility, net of $7.7 million of outstanding letters of credit. |
Senior Unsecured Notes
Senior Unsecured Notes | 3 Months Ended |
Mar. 31, 2016 | |
Unsecured Debt [Member] | |
Debt Instrument [Line Items] | |
Senior Secured Credit Facility | (8) Senior Unsecured Notes The following table reconciles our Senior Unsecured Notes to our Condensed Consolidated Balance Sheets (amounts in thousands): Balance at December 31, 2014 $ 628,714 Accretion of discount through December 31, 2015 1,055 Amortization of note premium through December 31, 2015 (887 ) Reclass of deferred financing costs to debt discount (see footnote 2) (1,576 ) Balance at December 31, 2015 $ 627,306 Accretion of discount through March 31, 2016 262 Amortization of note premium through March 31, 2016 (222 ) Amortization of deferred financing costs through March 31, 2016 61 Balance at March 31, 2016 $ 627,407 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | (9) Segment Information We have identified five reportable segments: equipment rentals, new equipment sales, used equipment sales, parts sales and services revenues. These segments are based upon how management of the Company allocates resources and assesses performance. Non-segmented revenues and non-segmented costs relate to equipment support activities including transportation, hauling, parts freight and damage-waiver charges and are not allocated to the other reportable segments. There were no sales between segments for any of the periods presented. Selling, general and administrative expenses as well as all other income and expense items below gross profit are not generally allocated to reportable segments. We do not compile discrete financial information by segments other than the information presented below. The following table presents information about our reportable segments (amounts in thousands): Three Months Ended March 31, 2016 2015 Segment Revenues: Equipment rentals $ 102,838 $ 101,389 New equipment sales 57,179 44,537 Used equipment sales 27,574 25,070 Parts sales 27,969 27,085 Services revenues 16,301 14,956 Total segmented revenues 231,861 213,037 Non-segmented revenues 15,149 14,373 Total revenues $ 247,010 $ 227,410 Segment Gross Profit: Equipment rentals $ 46,578 $ 45,834 New equipment sales 6,705 5,218 Used equipment sales 9,062 8,184 Parts sales 7,706 7,566 Services revenues 11,000 9,679 Total segmented gross profit 81,051 76,481 Non-segmented gross profit (loss) 93 (141 ) Total gross profit $ 81,144 $ 76,340 Balances at March 31, December 31, 2016 2015 Segment identified assets: Equipment sales $ 78,008 $ 77,365 Equipment rentals 873,147 893,393 Parts and services 20,096 19,453 Total segment identified assets 971,251 990,211 Non-segment identified assets 303,540 309,300 Total assets $ 1,274,791 $ 1,299,511 The Company operates primarily in the United States and our sales to international customers for the three month periods ended March 31, 2016 and 2015 were 0.8% in each of the periods . No one customer accounted for more than 10% of our revenues on an overall or segment basis for any of the periods presented. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information of Guarantor Subsidiaries | 3 Months Ended |
Mar. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information of Guarantor Subsidiaries | (10) Condensed Consolidating Financial Information of Guarantor Subsidiaries All of the indebtedness of H&E Equipment Services, Inc. is guaranteed by GNE Investments, Inc. and its wholly‑owned subsidiary Great Northern Equipment, Inc., H&E Equipment Services (California), LLC, H&E California Holding, Inc., H&E Equipment Services (Mid-Atlantic), Inc. and H&E Finance Corp. The guarantor subsidiaries are all wholly‑owned and the guarantees, made on a joint and several basis, are full and unconditional (subject to subordination provisions and subject to a standard limitation which provides that the maximum amount guaranteed by each guarantor will not exceed the maximum amount that can be guaranteed without making the guarantee void under fraudulent conveyance laws). There are no restrictions on H&E Equipment Services, Inc.’s ability to obtain funds from the guarantor subsidiaries by dividend or loan. The consolidating financial statements of H&E Equipment Services, Inc. and its subsidiaries are included below. The financial statements for H&E Finance Corp. are not included within the consolidating financial statements because H&E Finance Corp. has no assets or operations. CONDENSED CONSOLIDATING BALANCE SHEET As of March 31, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Assets: Cash $ 4,732 $ — $ — $ 4,732 Receivables, net 116,256 29,491 — 145,747 Inventories, net 88,432 9,672 — 98,104 Prepaid expenses and other assets 9,806 218 — 10,024 Rental equipment, net 730,708 142,439 — 873,147 Property and equipment, net 97,972 11,294 — 109,266 Deferred financing costs, net 2,574 — — 2,574 Investment in guarantor subsidiaries 215,871 — (215,871 ) — Goodwill 1,671 29,526 — 31,197 Total assets $ 1,268,022 $ 222,640 $ (215,871 ) $ 1,274,791 Liabilities and Stockholders’ Equity: Amounts due on senior secured credit facility $ 171,048 $ — $ — $ 171,048 Accounts payable 60,881 5,559 — 66,440 Manufacturer flooring plans payable 63,922 195 — 64,117 Accrued expenses payable and other liabilities 43,792 (811 ) — 42,981 Dividends payable 80 (32 ) — 48 Senior unsecured notes 627,407 — — 627,407 Capital leases payable — 1,858 — 1,858 Deferred income taxes 159,896 — — 159,896 Deferred compensation payable 1,795 — — 1,795 Total liabilities 1,128,821 6,769 — 1,135,590 Stockholders’ equity 139,201 215,871 (215,871 ) 139,201 Total liabilities and stockholders’ equity $ 1,268,022 $ 222,640 $ (215,871 ) $ 1,274,791 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2015 H&E 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 2,777 — — 2,777 Investment in guarantor subsidiaries 211,542 — (211,542 ) — Goodwill 1,671 29,526 — 31,197 Total assets $ 1,296,161 $ 214,892 $ (211,542 ) $ 1,299,511 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 627,306 — — 627,306 Capital leases payable — 1,907 — 1,907 Deferred income taxes 155,886 — — 155,886 Deferred compensation payable 2,174 — — 2,174 Total liabilities 1,153,573 3,350 — 1,156,923 Stockholders’ equity 142,588 211,542 (211,542 ) 142,588 Total liabilities and stockholders’ equity $ 1,296,161 $ 214,892 $ (211,542 ) $ 1,299,511 CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended March 31, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 86,025 $ 16,813 $ — $ 102,838 New equipment sales 45,532 11,647 — 57,179 Used equipment sales 22,916 4,658 — 27,574 Parts sales 24,222 3,747 — 27,969 Services revenues 13,979 2,322 — 16,301 Other 12,425 2,724 — 15,149 Total revenues 205,099 41,911 — 247,010 Cost of revenues: Rental depreciation 33,112 6,385 — 39,497 Rental expense 14,048 2,715 — 16,763 New equipment sales 40,114 10,360 — 50,474 Used equipment sales 15,643 2,869 — 18,512 Parts sales 17,606 2,657 — 20,263 Services revenues 4,602 699 — 5,301 Other 12,247 2,809 — 15,056 Total cost of revenues 137,372 28,494 — 165,866 Gross profit (loss): Equipment rentals 38,865 7,713 — 46,578 New equipment sales 5,418 1,287 — 6,705 Used equipment sales 7,273 1,789 — 9,062 Parts sales 6,616 1,090 — 7,706 Services revenues 9,377 1,623 — 11,000 Other 178 (85 ) — 93 Gross profit 67,727 13,417 — 81,144 Selling, general and administrative expenses 49,603 9,771 — 59,374 Equity in earnings of guarantor subsidiaries 1,735 — (1,735 ) — Gain on sales of property and equipment, net 530 132 — 662 Income from operations 20,389 3,778 (1,735 ) 22,432 Other income (expense): Interest expense (11,301 ) (2,106 ) — (13,407 ) Other, net 367 63 — 430 Total other expense, net (10,934 ) (2,043 ) — (12,977 ) Income before income taxes 9,455 1,735 (1,735 ) 9,455 Income tax expense 3,881 — — 3,881 Net income $ 5,574 $ 1,735 $ (1,735 ) $ 5,574 CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended March 31, 2015 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 84,912 $ 16,477 $ — $ 101,389 New equipment sales 37,782 6,755 — 44,537 Used equipment sales 20,040 5,030 — 25,070 Parts sales 23,783 3,302 — 27,085 Services revenues 12,855 2,101 — 14,956 Other 11,753 2,620 — 14,373 Total revenues 191,125 36,285 — 227,410 Cost of revenues: Rental depreciation 33,500 6,444 — 39,944 Rental expense 12,860 2,751 — 15,611 New equipment sales 33,318 6,001 — 39,319 Used equipment sales 13,782 3,104 — 16,886 Parts sales 17,191 2,328 — 19,519 Services revenues 4,576 701 — 5,277 Other 11,706 2,808 — 14,514 Total cost of revenues 126,933 24,137 — 151,070 Gross profit (loss): Equipment rentals 38,552 7,282 — 45,834 New equipment sales 4,464 754 — 5,218 Used equipment sales 6,258 1,926 — 8,184 Parts sales 6,592 974 — 7,566 Services revenues 8,279 1,400 — 9,679 Other 47 (188 ) — (141 ) Gross profit 64,192 12,148 — 76,340 Selling, general and administrative expenses 45,806 7,660 — 53,466 Equity in earnings of guarantor subsidiaries 1,377 — (1,377 ) — Gain on sales of property and equipment, net 214 244 — 458 Income from operations 19,977 4,732 (1,377 ) 23,332 Other income (expense): Interest expense (10,039 ) (3,406 ) — (13,445 ) Other, net 303 51 — 354 Total other expense, net (9,736 ) (3,355 ) — (13,091 ) Income before income taxes 10,241 1,377 (1,377 ) 10,241 Income tax expense 4,155 — — 4,155 Net income $ 6,086 $ 1,377 $ (1,377 ) $ 6,086 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 5,574 $ 1,735 $ (1,735 ) $ 5,574 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization on property and equipment 5,951 751 — 6,702 Depreciation of rental equipment 33,112 6,385 — 39,497 Amortization of deferred financing costs 262 — — 262 Accretion of note discount, net of premium amortization 42 — — 42 Provision for losses on accounts receivable 995 13 — 1,008 Provision for inventory obsolescence 7 — — 7 Change in deferred income taxes 4,010 — — 4,010 Stock-based compensation expense 1,041 — — 1,041 Tax deficiency from stock-based awards (234 ) — — (234 ) Gain from sales of property and equipment, net (530 ) (132 ) — (662 ) Gain from sales of rental equipment, net (7,108 ) (1,776 ) — (8,884 ) Equity in earnings of guarantor subsidiaries (1,735 ) — 1,735 — Changes in operating assets and liabilities: Receivables 6,906 (6,333 ) — 573 Inventories (18,907 ) (4,328 ) — (23,235 ) Prepaid expenses and other assets 103 (73 ) — 30 Accounts payable (3,078 ) 2,741 — (337 ) Manufacturer flooring plans payable 1,489 195 — 1,684 Accrued expenses payable and other liabilities (13,495 ) 534 — (12,961 ) Deferred compensation payable (379 ) — — (379 ) Net cash provided by (used in) operating activities 14,026 (288 ) — 13,738 Cash flows from investing activities: Purchases of property and equipment (4,359 ) (607 ) — (4,966 ) Purchases of rental equipment (6,239 ) (6,381 ) — (12,620 ) Proceeds from sales of property and equipment 700 137 — 837 Proceeds from sales of rental equipment 19,599 4,596 — 24,195 Investment in subsidiaries (2,594 ) — 2,594 — Net cash provided by (used in) investing activities. 7,107 (2,255 ) 2,594 7,446 Cash flows from financing activities: Borrowings on senior secured credit facility 237,258 — — 237,258 Payments on senior secured credit facility (251,067 ) — — (251,067 ) Dividends paid (9,751 ) (2 ) — (9,753 ) Payments on capital lease obligations — (49 ) — (49 ) Capital contributions — 2,594 (2,594 ) — Net cash provided by (used in) financing activities (23,560 ) 2,543 (2,594 ) (23,611 ) Net decrease in cash (2,427 ) — — (2,427 ) Cash, beginning of period 7,159 — — 7,159 Cash, end of period $ 4,732 $ — $ — $ 4,732 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2015 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 6,086 $ 1,377 $ (1,377 ) $ 6,086 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization on property and equipment 4,921 703 — 5,624 Depreciation of rental equipment 33,500 6,444 — 39,944 Amortization of deferred financing costs 249 — — 249 Accretion of note discount, net of premium amortization 42 — — 42 Provision for losses on accounts receivable 587 51 — 638 Provision for inventory obsolescence 29 — — 29 Change in deferred income taxes 4,025 — — 4,025 Stock-based compensation expense 1,021 — — 1,021 Gain from sales of property and equipment, net (214 ) (244 ) — (458 ) Gain from sales of rental equipment, net (6,011 ) (1,916 ) — (7,927 ) Equity in earnings of guarantor subsidiaries (1,377 ) — 1,377 — Changes in operating assets and liabilities: Receivables 25,666 6,147 — 31,813 Inventories (50,191 ) (9,554 ) — (59,745 ) Prepaid expenses and other assets (2,365 ) (73 ) — (2,438 ) Accounts payable 14,786 4,739 — 19,525 Manufacturer flooring plans payable (19,306 ) — — (19,306 ) Accrued expenses payable and other liabilities (18,794 ) 213 — (18,581 ) Deferred compensation payable 17 — — 17 Net cash provided by (used in) operating activities (7,329 ) 7,887 — 558 Cash flows from investing activities: Purchases of property and equipment (5,357 ) (1,105 ) — (6,462 ) Purchases of rental equipment (11,027 ) (8,903 ) — (19,930 ) Proceeds from sales of property and equipment 294 244 — 538 Proceeds from sales of rental equipment 15,771 4,875 — 20,646 Investment in subsidiaries 2,950 — (2,950 ) — Net cash provided by (used in) investing activities. 2,631 (4,889 ) (2,950 ) (5,208 ) Cash flows from financing activities: Borrowings on senior secured credit facility 264,490 — — 264,490 Payments on senior secured credit facility (261,562 ) — — (261,562 ) Dividends paid (8,814 ) (1 ) — (8,815 ) Payments of deferred financing costs (725 ) — — (725 ) Payments on capital lease obligations — (47 ) — (47 ) Capital contributions — (2,950 ) 2,950 — Net cash used in financing activities (6,611 ) (2,998 ) 2,950 (6,659 ) Net decrease in cash (11,309 ) — — (11,309 ) Cash, beginning of period 15,861 — — 15,861 Cash, end of period $ 4,552 $ — $ — $ 4,552 |
Organization and Nature of Op16
Organization and Nature of Operations (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Our condensed consolidated financial statements include the financial position and results of operations of H&E Equipment Services, Inc. and its wholly-owned subsidiaries H&E Finance Corp., GNE Investments, Inc., Great Northern Equipment, Inc., H&E California Holding, Inc., H&E Equipment Services (California), LLC and H&E Equipment Services (Mid-Atlantic), Inc., collectively referred to herein as “we” or “us” or “our” or the “Company.” The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such regulations. In the opinion of management, all adjustments (consisting of all normal and recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, and therefore, the results and trends in these interim condensed consolidated financial statements may not be the same for the entire year. These interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended December 31, 2015, from which the consolidated balance sheet amounts as of December 31, 2015 were derived. All significant intercompany accounts and transactions have been eliminated in these condensed consolidated financial statements. Business combinations accounted for as purchases are included in the condensed consolidated financial statements from their respective dates of acquisition. The nature of our business is such that short-term obligations are typically met by cash flows generated from long-term assets. Consequently, and consistent with industry practice, the accompanying condensed consolidated balance sheets are presented on an unclassified basis. |
Use of Estimates | Use of Estimates We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, which requires management to use its judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. These assumptions and estimates could have a material effect on our condensed consolidated financial statements. Actual results may differ materially from those estimates. We review our estimates on an ongoing basis based on information currently available, and changes in facts and circumstances may cause us to revise these estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Revenue Recognition In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . In March 2016, the FASB Issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Guidance Adopted in the First Quarter of 2016 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 Deferred Financing Costs Total Assets Senior Unsecured Notes Total Liabilities Total Liabilities and Stockholders’ Equity Previously reported $ 4,353 $ 1,301,087 $ 628,882 $ 1,158,499 $ 1,301,087 Reclassification of debt issuance costs (1,576 ) (1,576 ) (1,576 ) (1,576 ) (1,576 ) Current presentation $ 2,777 $ 1,299,511 $ 627,306 $ 1,156,923 $ 1,299,511 |
Significant Accounting Polici17
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Changes in Total Assets and Liabilities Due to Presentation of Debt Issuance Costs Guidance Adopted | As a result of adopting this guidance, total assets and total liabilities as of December 31, 2015 changed as shown below (amounts in thousands). Deferred Financing Costs Total Assets Senior Unsecured Notes Total Liabilities Total Liabilities and Stockholders’ Equity Previously reported $ 4,353 $ 1,301,087 $ 628,882 $ 1,158,499 $ 1,301,087 Reclassification of debt issuance costs (1,576 ) (1,576 ) (1,576 ) (1,576 ) (1,576 ) Current presentation $ 2,777 $ 1,299,511 $ 627,306 $ 1,156,923 $ 1,299,511 |
Fair Value of Financial Instr18
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements | The carrying amounts and fair values of our other financial instruments subject to fair value disclosures as of March 31, 2016 and December 31, 2015 are presented in the table below (amounts in thousands) and have been calculated based upon market quotes and present value calculations based on market rates. March 31, 2016 Carrying Amount Fair Value Manufacturer flooring plans payable with interest computed at 5.00% (Level 3) $ 64,117 $ 56,186 Senior unsecured notes with interest computed at 7.0% (Level 1) 627,407 639,450 Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) 1,858 1,277 Letter of credit (Level 3) — 155 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% (Level 1) 627,306 617,400 Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) 1,907 1,329 Letter of credit (Level 3) — 145 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Summary of Activity in Stockholders' Equity | The following table summarizes the activity in Stockholders’ Equity for the three month period ended March 31, 2016 (amounts in thousands, except share data): Common Stock Additional Retained 'Total Shares Issued Amount Paid-in Capital Treasury Stock Earnings (Deficit) Stockholders’ Equity Balances at December 31, 2015 39,333,571 $ 392 $ 220,879 $ (60,405 ) $ (18,278 ) $ 142,588 Stock-based compensation — — 1,041 — — 1,041 Cash dividends declared on common stock ($0.275 per share) — — — — (9,769 ) (9,769 ) Tax deficiency associated with stock-based awards — — (234 ) — — (234 ) Issuance of common stock 39,977 1 — — — 1 Net income — — — — 5,574 5,574 Balances at March 31, 2016 39,373,548 $ 393 $ 221,686 $ (60,405 ) $ (22,473 ) $ 139,201 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Non-Vested Stock Activity | The following table summarizes our non-vested stock activity for the three months ended March 31, 2016: Number of Shares Weighted Average Grant Date Fair Non-vested stock at December 31, 2015 322,355 $ 19.90 Granted 39,977 $ 11.61 Vested (39,977 ) $ 11.61 Forfeited (3,921 ) $ 19.07 Non-vested stock at March 31, 2016 318,434 $ 19.91 |
Schedule of Compensation Expense Related to Non-Vested Stock | The following table summarizes compensation expense related to non-vested stock, which is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income for the three months ended March 31, 2016 and 2015 (amounts in thousands): For the Three Months Ended March 31, 2016 2015 Compensation expense $ 1,041 $ 1,021 |
Schedule of Share Based Compensation Stock Options Activity | The following table represents stock option activity for the three months ended March 31, 2016: Number of Shares Weighted Average Exercise Price Weighted Average Contractual Life In Years Outstanding options at December 31, 2015 51,000 $ 17.80 Granted — — Exercised — — Canceled, forfeited or expired (45,000 ) $ 17.60 Outstanding options at March 31, 2016 6,000 $ 19.27 1.4 Options exercisable at March 31, 2016 6,000 $ 19.27 1.4 |
Income per Share (Tables)
Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Net Income Per Common Share | The following table sets forth the computation of basic and diluted net income per common share for the three months ended March 31, 2016 and 2015 (amounts in thousands, except per share amounts): Three Months Ended March 31, 2016 2015 Basic net income per share: Net income $ 5,574 $ 6,086 Weighted average number of common shares outstanding 35,341 35,227 Net income per share of common stock – basic $ 0.16 $ 0.17 Diluted net income per share: Net income $ 5,574 $ 6,086 Weighted average number of common shares outstanding 35,341 35,227 Effect of dilutive securities: Effect of dilutive stock options — 19 Effect of dilutive non-vested restricted stock 57 40 Weighted average number of common shares outstanding – diluted 35,398 35,286 Net income per share of common stock – diluted $ 0.16 $ 0.17 Common shares excluded from the denominator as anti-dilutive: Stock options 13 — Non-vested restricted stock 7 3 |
Senior Unsecured Notes (Tables)
Senior Unsecured Notes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Unsecured Debt [Member] | |
Debt Instrument [Line Items] | |
Reconciliation of Senior Unsecured Notes to Condensed Consolidated Balance Sheets | The following table reconciles our Senior Unsecured Notes to our Condensed Consolidated Balance Sheets (amounts in thousands): Balance at December 31, 2014 $ 628,714 Accretion of discount through December 31, 2015 1,055 Amortization of note premium through December 31, 2015 (887 ) Reclass of deferred financing costs to debt discount (see footnote 2) (1,576 ) Balance at December 31, 2015 $ 627,306 Accretion of discount through March 31, 2016 262 Amortization of note premium through March 31, 2016 (222 ) Amortization of deferred financing costs through March 31, 2016 61 Balance at March 31, 2016 $ 627,407 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Information about Reportable Segments | The following table presents information about our reportable segments (amounts in thousands): Three Months Ended March 31, 2016 2015 Segment Revenues: Equipment rentals $ 102,838 $ 101,389 New equipment sales 57,179 44,537 Used equipment sales 27,574 25,070 Parts sales 27,969 27,085 Services revenues 16,301 14,956 Total segmented revenues 231,861 213,037 Non-segmented revenues 15,149 14,373 Total revenues $ 247,010 $ 227,410 Segment Gross Profit: Equipment rentals $ 46,578 $ 45,834 New equipment sales 6,705 5,218 Used equipment sales 9,062 8,184 Parts sales 7,706 7,566 Services revenues 11,000 9,679 Total segmented gross profit 81,051 76,481 Non-segmented gross profit (loss) 93 (141 ) Total gross profit $ 81,144 $ 76,340 Balances at March 31, December 31, 2016 2015 Segment identified assets: Equipment sales $ 78,008 $ 77,365 Equipment rentals 873,147 893,393 Parts and services 20,096 19,453 Total segment identified assets 971,251 990,211 Non-segment identified assets 303,540 309,300 Total assets $ 1,274,791 $ 1,299,511 |
Condensed Consolidating Finan24
Condensed Consolidating Financial Information of Guarantor Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET As of March 31, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Assets: Cash $ 4,732 $ — $ — $ 4,732 Receivables, net 116,256 29,491 — 145,747 Inventories, net 88,432 9,672 — 98,104 Prepaid expenses and other assets 9,806 218 — 10,024 Rental equipment, net 730,708 142,439 — 873,147 Property and equipment, net 97,972 11,294 — 109,266 Deferred financing costs, net 2,574 — — 2,574 Investment in guarantor subsidiaries 215,871 — (215,871 ) — Goodwill 1,671 29,526 — 31,197 Total assets $ 1,268,022 $ 222,640 $ (215,871 ) $ 1,274,791 Liabilities and Stockholders’ Equity: Amounts due on senior secured credit facility $ 171,048 $ — $ — $ 171,048 Accounts payable 60,881 5,559 — 66,440 Manufacturer flooring plans payable 63,922 195 — 64,117 Accrued expenses payable and other liabilities 43,792 (811 ) — 42,981 Dividends payable 80 (32 ) — 48 Senior unsecured notes 627,407 — — 627,407 Capital leases payable — 1,858 — 1,858 Deferred income taxes 159,896 — — 159,896 Deferred compensation payable 1,795 — — 1,795 Total liabilities 1,128,821 6,769 — 1,135,590 Stockholders’ equity 139,201 215,871 (215,871 ) 139,201 Total liabilities and stockholders’ equity $ 1,268,022 $ 222,640 $ (215,871 ) $ 1,274,791 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2015 H&E 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 2,777 — — 2,777 Investment in guarantor subsidiaries 211,542 — (211,542 ) — Goodwill 1,671 29,526 — 31,197 Total assets $ 1,296,161 $ 214,892 $ (211,542 ) $ 1,299,511 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 627,306 — — 627,306 Capital leases payable — 1,907 — 1,907 Deferred income taxes 155,886 — — 155,886 Deferred compensation payable 2,174 — — 2,174 Total liabilities 1,153,573 3,350 — 1,156,923 Stockholders’ equity 142,588 211,542 (211,542 ) 142,588 Total liabilities and stockholders’ equity $ 1,296,161 $ 214,892 $ (211,542 ) $ 1,299,511 |
Condensed Consolidating Statement of Income | CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended March 31, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 86,025 $ 16,813 $ — $ 102,838 New equipment sales 45,532 11,647 — 57,179 Used equipment sales 22,916 4,658 — 27,574 Parts sales 24,222 3,747 — 27,969 Services revenues 13,979 2,322 — 16,301 Other 12,425 2,724 — 15,149 Total revenues 205,099 41,911 — 247,010 Cost of revenues: Rental depreciation 33,112 6,385 — 39,497 Rental expense 14,048 2,715 — 16,763 New equipment sales 40,114 10,360 — 50,474 Used equipment sales 15,643 2,869 — 18,512 Parts sales 17,606 2,657 — 20,263 Services revenues 4,602 699 — 5,301 Other 12,247 2,809 — 15,056 Total cost of revenues 137,372 28,494 — 165,866 Gross profit (loss): Equipment rentals 38,865 7,713 — 46,578 New equipment sales 5,418 1,287 — 6,705 Used equipment sales 7,273 1,789 — 9,062 Parts sales 6,616 1,090 — 7,706 Services revenues 9,377 1,623 — 11,000 Other 178 (85 ) — 93 Gross profit 67,727 13,417 — 81,144 Selling, general and administrative expenses 49,603 9,771 — 59,374 Equity in earnings of guarantor subsidiaries 1,735 — (1,735 ) — Gain on sales of property and equipment, net 530 132 — 662 Income from operations 20,389 3,778 (1,735 ) 22,432 Other income (expense): Interest expense (11,301 ) (2,106 ) — (13,407 ) Other, net 367 63 — 430 Total other expense, net (10,934 ) (2,043 ) — (12,977 ) Income before income taxes 9,455 1,735 (1,735 ) 9,455 Income tax expense 3,881 — — 3,881 Net income $ 5,574 $ 1,735 $ (1,735 ) $ 5,574 CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended March 31, 2015 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 84,912 $ 16,477 $ — $ 101,389 New equipment sales 37,782 6,755 — 44,537 Used equipment sales 20,040 5,030 — 25,070 Parts sales 23,783 3,302 — 27,085 Services revenues 12,855 2,101 — 14,956 Other 11,753 2,620 — 14,373 Total revenues 191,125 36,285 — 227,410 Cost of revenues: Rental depreciation 33,500 6,444 — 39,944 Rental expense 12,860 2,751 — 15,611 New equipment sales 33,318 6,001 — 39,319 Used equipment sales 13,782 3,104 — 16,886 Parts sales 17,191 2,328 — 19,519 Services revenues 4,576 701 — 5,277 Other 11,706 2,808 — 14,514 Total cost of revenues 126,933 24,137 — 151,070 Gross profit (loss): Equipment rentals 38,552 7,282 — 45,834 New equipment sales 4,464 754 — 5,218 Used equipment sales 6,258 1,926 — 8,184 Parts sales 6,592 974 — 7,566 Services revenues 8,279 1,400 — 9,679 Other 47 (188 ) — (141 ) Gross profit 64,192 12,148 — 76,340 Selling, general and administrative expenses 45,806 7,660 — 53,466 Equity in earnings of guarantor subsidiaries 1,377 — (1,377 ) — Gain on sales of property and equipment, net 214 244 — 458 Income from operations 19,977 4,732 (1,377 ) 23,332 Other income (expense): Interest expense (10,039 ) (3,406 ) — (13,445 ) Other, net 303 51 — 354 Total other expense, net (9,736 ) (3,355 ) — (13,091 ) Income before income taxes 10,241 1,377 (1,377 ) 10,241 Income tax expense 4,155 — — 4,155 Net income $ 6,086 $ 1,377 $ (1,377 ) $ 6,086 |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 5,574 $ 1,735 $ (1,735 ) $ 5,574 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization on property and equipment 5,951 751 — 6,702 Depreciation of rental equipment 33,112 6,385 — 39,497 Amortization of deferred financing costs 262 — — 262 Accretion of note discount, net of premium amortization 42 — — 42 Provision for losses on accounts receivable 995 13 — 1,008 Provision for inventory obsolescence 7 — — 7 Change in deferred income taxes 4,010 — — 4,010 Stock-based compensation expense 1,041 — — 1,041 Tax deficiency from stock-based awards (234 ) — — (234 ) Gain from sales of property and equipment, net (530 ) (132 ) — (662 ) Gain from sales of rental equipment, net (7,108 ) (1,776 ) — (8,884 ) Equity in earnings of guarantor subsidiaries (1,735 ) — 1,735 — Changes in operating assets and liabilities: Receivables 6,906 (6,333 ) — 573 Inventories (18,907 ) (4,328 ) — (23,235 ) Prepaid expenses and other assets 103 (73 ) — 30 Accounts payable (3,078 ) 2,741 — (337 ) Manufacturer flooring plans payable 1,489 195 — 1,684 Accrued expenses payable and other liabilities (13,495 ) 534 — (12,961 ) Deferred compensation payable (379 ) — — (379 ) Net cash provided by (used in) operating activities 14,026 (288 ) — 13,738 Cash flows from investing activities: Purchases of property and equipment (4,359 ) (607 ) — (4,966 ) Purchases of rental equipment (6,239 ) (6,381 ) — (12,620 ) Proceeds from sales of property and equipment 700 137 — 837 Proceeds from sales of rental equipment 19,599 4,596 — 24,195 Investment in subsidiaries (2,594 ) — 2,594 — Net cash provided by (used in) investing activities. 7,107 (2,255 ) 2,594 7,446 Cash flows from financing activities: Borrowings on senior secured credit facility 237,258 — — 237,258 Payments on senior secured credit facility (251,067 ) — — (251,067 ) Dividends paid (9,751 ) (2 ) — (9,753 ) Payments on capital lease obligations — (49 ) — (49 ) Capital contributions — 2,594 (2,594 ) — Net cash provided by (used in) financing activities (23,560 ) 2,543 (2,594 ) (23,611 ) Net decrease in cash (2,427 ) — — (2,427 ) Cash, beginning of period 7,159 — — 7,159 Cash, end of period $ 4,732 $ — $ — $ 4,732 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2015 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 6,086 $ 1,377 $ (1,377 ) $ 6,086 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization on property and equipment 4,921 703 — 5,624 Depreciation of rental equipment 33,500 6,444 — 39,944 Amortization of deferred financing costs 249 — — 249 Accretion of note discount, net of premium amortization 42 — — 42 Provision for losses on accounts receivable 587 51 — 638 Provision for inventory obsolescence 29 — — 29 Change in deferred income taxes 4,025 — — 4,025 Stock-based compensation expense 1,021 — — 1,021 Gain from sales of property and equipment, net (214 ) (244 ) — (458 ) Gain from sales of rental equipment, net (6,011 ) (1,916 ) — (7,927 ) Equity in earnings of guarantor subsidiaries (1,377 ) — 1,377 — Changes in operating assets and liabilities: Receivables 25,666 6,147 — 31,813 Inventories (50,191 ) (9,554 ) — (59,745 ) Prepaid expenses and other assets (2,365 ) (73 ) — (2,438 ) Accounts payable 14,786 4,739 — 19,525 Manufacturer flooring plans payable (19,306 ) — — (19,306 ) Accrued expenses payable and other liabilities (18,794 ) 213 — (18,581 ) Deferred compensation payable 17 — — 17 Net cash provided by (used in) operating activities (7,329 ) 7,887 — 558 Cash flows from investing activities: Purchases of property and equipment (5,357 ) (1,105 ) — (6,462 ) Purchases of rental equipment (11,027 ) (8,903 ) — (19,930 ) Proceeds from sales of property and equipment 294 244 — 538 Proceeds from sales of rental equipment 15,771 4,875 — 20,646 Investment in subsidiaries 2,950 — (2,950 ) — Net cash provided by (used in) investing activities. 2,631 (4,889 ) (2,950 ) (5,208 ) Cash flows from financing activities: Borrowings on senior secured credit facility 264,490 — — 264,490 Payments on senior secured credit facility (261,562 ) — — (261,562 ) Dividends paid (8,814 ) (1 ) — (8,815 ) Payments of deferred financing costs (725 ) — — (725 ) Payments on capital lease obligations — (47 ) — (47 ) Capital contributions — (2,950 ) 2,950 — Net cash used in financing activities (6,611 ) (2,998 ) 2,950 (6,659 ) Net decrease in cash (11,309 ) — — (11,309 ) Cash, beginning of period 15,861 — — 15,861 Cash, end of period $ 4,552 $ — $ — $ 4,552 |
Significant Accounting Polici25
Significant Accounting Policies - Changes in Total Assets and Liabilities Due to Presentation of Debt Issuance Costs Guidance Adopted (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Deferred Financing Costs | $ 2,574 | $ 2,777 | |
Total Assets | 1,274,791 | 1,299,511 | |
Senior Unsecured Notes | 627,407 | 627,306 | $ 628,714 |
Total Liabilities | 1,135,590 | 1,156,923 | |
Total Liabilities and Stockholders’ Equity | $ 1,274,791 | 1,299,511 | |
Previously Reported [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Deferred Financing Costs | 4,353 | ||
Total Assets | 1,301,087 | ||
Senior Unsecured Notes | 628,882 | ||
Total Liabilities | 1,158,499 | ||
Total Liabilities and Stockholders’ Equity | 1,301,087 | ||
Reclassification of Debt Issuance Costs [Member] | Restatement Adjustment [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Deferred Financing Costs | (1,576) | ||
Total Assets | (1,576) | ||
Senior Unsecured Notes | (1,576) | ||
Total Liabilities | (1,576) | ||
Total Liabilities and Stockholders’ Equity | $ (1,576) |
Fair Value of Financial Instr26
Fair Value of Financial Instruments - Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Manufacturer flooring plans payable with interest computed at 5.00% (Level 3) | $ 64,117 | $ 62,433 | |
Senior unsecured notes with interest computed at 7.0% (Level 1) | 627,407 | 627,306 | $ 628,714 |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 1,858 | 1,907 | |
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) | 64,117 | 62,433 | |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 1,858 | 1,907 | |
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) | 56,186 | 54,710 | |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 1,277 | 1,329 | |
Letter of credit (Level 3) | 155 | 145 | |
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% (Level 1) | 627,407 | 627,306 | |
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% (Level 1) | $ 639,450 | $ 617,400 |
Fair Value of Financial Instr27
Fair Value of Financial Instruments - Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements (Parenthetical) (Detail) | Mar. 31, 2016 | Dec. 31, 2015 |
Level 3 [Member] | Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Manufacturer flooring plans payable, interest rate | 5.00% | 5.00% |
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% | 5.00% |
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% |
Fair Value of Financial Instr28
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Transfer of financial assets | $ 0 | $ 0 |
Transfer of financial liabilities | $ 0 | $ 0 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Activity in Stockholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Capitalization, Equity [Line Items] | ||
Beginning balance, value | $ 142,588 | |
Beginning balance, shares | 39,333,571 | |
Stock-based compensation | $ 1,041 | |
Cash dividends declared on common stock ($0.275 per share) | (9,769) | |
Tax deficiency associated with stock-based awards | (234) | |
Issuance of common stock, value | 1 | |
Net income | 5,574 | $ 6,086 |
Ending balance, value | $ 139,201 | |
Ending balance, shares | 39,373,548 | |
Common Stock [Member] | ||
Schedule of Capitalization, Equity [Line Items] | ||
Beginning balance, value | $ 392 | |
Beginning balance, shares | 39,333,571 | |
Issuance of common stock, value | $ 1 | |
Issuance of common stock, shares | 39,977 | |
Ending balance, value | $ 393 | |
Ending balance, shares | 39,373,548 | |
Additional Paid-in Capital [Member] | ||
Schedule of Capitalization, Equity [Line Items] | ||
Beginning balance, value | $ 220,879 | |
Stock-based compensation | 1,041 | |
Tax deficiency associated with stock-based awards | (234) | |
Ending balance, value | 221,686 | |
Treasury Stock [Member] | ||
Schedule of Capitalization, Equity [Line Items] | ||
Beginning balance, value | (60,405) | |
Ending balance, value | (60,405) | |
Retained Earnings (Deficit) [Member] | ||
Schedule of Capitalization, Equity [Line Items] | ||
Beginning balance, value | (18,278) | |
Cash dividends declared on common stock ($0.275 per share) | (9,769) | |
Net income | 5,574 | |
Ending balance, value | $ (22,473) |
Stockholders' Equity - Summar30
Stockholders' Equity - Summary of Activity in Stockholders' Equity (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2016$ / shares | |
Retained Earnings (Deficit) [Member] | |
Schedule of Capitalization, Equity [Line Items] | |
Dividend per share paid | $ 0.275 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based incentive compensation plan | shares | 3,264,472 |
Unrecognized compensation expense related to non-vested stock | $ 4,100,000 |
Expected non-vested stock recognized over a weighted-average period | 2 years 4 months 24 days |
Unrecognized compensation expense related to stock option awards | $ 0 |
Closing price of common stock | $ / shares | $ 17.53 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Non-Vested Stock Activity (Detail) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Nonvested stock, beginning balance, Number of Shares | shares | 322,355 |
Granted, Number of Shares | shares | 39,977 |
Vested, Number of Shares | shares | (39,977) |
Forfeited, Number of Shares | shares | (3,921) |
Nonvested stock, ending balance, Number of Shares | shares | 318,434 |
Nonvested stock, beginning balance, Weighted Average Grant Date Fair Value | $ / shares | $ 19.90 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 11.61 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 11.61 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 19.07 |
Nonvested stock, ending balance, Weighted Average Grant Date Fair Value | $ / shares | $ 19.91 |
Stock-Based Compensation - Sc33
Stock-Based Compensation - Schedule of Compensation Expense Related to Non-Vested Stock (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Compensation expense | $ 1,041 | $ 1,021 |
Stock-Based Compensation - Sc34
Stock-Based Compensation - Schedule of Share Based Compensation Stock Options Activity (Detail) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Options, Outstanding, Number of Shares, Beginning Balance | shares | 51,000 |
Stock Options, Canceled, forfeited or expired, Number of Shares | shares | (45,000) |
Stock Options, Outstanding, Number of Shares, Ending Balance | shares | 6,000 |
Stock Options, Exercisable, Number of Shares | shares | 6,000 |
Stock Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 17.80 |
Stock Options, Canceled, forfeited or expired, Weighted Average Exercise Price | $ / shares | 17.60 |
Stock Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares | 19.27 |
Stock Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 19.27 |
Stock Options, Outstanding, Weighted Average Contractual Life In Years | 1 year 4 months 24 days |
Stock Options, Exercisable, Weighted Average Contractual Life In Years | 1 year 4 months 24 days |
Income per Share - Additional I
Income per Share - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Restricted common shares, percentage | 0.70% | 0.40% |
Income per Share - Summary of C
Income per Share - 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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Basic net income per share: | ||
Net income | $ 5,574 | $ 6,086 |
Weighted average number of common shares outstanding | 35,341 | 35,227 |
Net income per share of common stock – basic | $ 0.16 | $ 0.17 |
Diluted net income per share: | ||
Net income | $ 5,574 | $ 6,086 |
Weighted average number of common shares outstanding | 35,341 | 35,227 |
Effect of dilutive securities: | ||
Weighted average number of common shares outstanding - diluted | 35,398 | 35,286 |
Net income per share of common stock – diluted | $ 0.16 | $ 0.17 |
Stock Options [Member] | ||
Effect of dilutive securities: | ||
Effect of dilutive stock options and non-vested restricted stock | 19 | |
Common shares excluded from the denominator as anti-dilutive: | ||
Common shares excluded from the denominator as anti-dilutive | 13 | |
Non-vested restricted stock [Member] | ||
Effect of dilutive securities: | ||
Effect of dilutive stock options and non-vested restricted stock | 57 | 40 |
Common shares excluded from the denominator as anti-dilutive: | ||
Common shares excluded from the denominator as anti-dilutive | 7 | 3 |
Senior Secured Credit Facility
Senior Secured Credit Facility - Additional Information (Detail) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2016 | Apr. 21, 2016 | Feb. 05, 2015 | 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 | 2.70% | ||||
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% | ||||
Wells Fargo Capital Finance, LLC [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 | $ 423,700,000 | ||||
Debt instrument prime rate plus | 3.25% | ||||
Credit facility interest rate description | The interest rate on the Credit Facility was based on a 3.25% U.S. Prime Rate plus 100 basis points and LIBOR plus 200 basis points. | ||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Available borrowings under our senior secured credit facility | $ 419,600,000 | ||||
Amended and Restated Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Existing credit facility with its lenders | $ 602,500,000 |
Senior Unsecured Notes - Reconc
Senior Unsecured Notes - Reconciliation of Senior Unsecured Notes to Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Senior unsecured notes, beginning balance | $ 627,306 | $ 628,714 | $ 628,714 |
Accretion of discount | 262 | 1,055 | |
Amortization of note premium | (222) | (887) | |
Reclass of deferred financing costs to debt discount | (1,576) | ||
Amortization of deferred financing costs | 262 | $ 249 | |
Senior unsecured notes, ending balance | 627,407 | $ 627,306 | |
Senior Unsecured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Amortization of deferred financing costs | $ 61 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2016SegmentCustomer | Mar. 31, 2015Customer | |
Segment Reporting [Abstract] | ||
Number of reportable segment | Segment | 5 | |
Sales to international customers | 0.80% | 0.80% |
Customer accounted for more than 10% of revenue | Customer | 0 | 0 |
Segment Information - Informati
Segment Information - Information about Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Segment Revenues: | |||
Revenues | $ 247,010 | $ 227,410 | |
Segment Gross Profit: | |||
Total gross profit | 81,144 | 76,340 | |
Segment identified assets: | |||
Total assets | 1,274,791 | $ 1,299,511 | |
Equipment Rentals [Member] | |||
Segment Revenues: | |||
Revenues | 102,838 | 101,389 | |
Segment Gross Profit: | |||
Total gross profit | 46,578 | 45,834 | |
New Equipment Sales [Member] | |||
Segment Revenues: | |||
Revenues | 57,179 | 44,537 | |
Segment Gross Profit: | |||
Total gross profit | 6,705 | 5,218 | |
Used Equipment Sales [Member] | |||
Segment Revenues: | |||
Revenues | 27,574 | 25,070 | |
Segment Gross Profit: | |||
Total gross profit | 9,062 | 8,184 | |
Parts Sales [Member] | |||
Segment Revenues: | |||
Revenues | 27,969 | 27,085 | |
Segment Gross Profit: | |||
Total gross profit | 7,706 | 7,566 | |
Services Revenues [Member] | |||
Segment Revenues: | |||
Revenues | 16,301 | 14,956 | |
Segment Gross Profit: | |||
Total gross profit | 11,000 | 9,679 | |
Operating Segments [Member] | |||
Segment Revenues: | |||
Revenues | 231,861 | 213,037 | |
Segment Gross Profit: | |||
Total gross profit | 81,051 | 76,481 | |
Segment identified assets: | |||
Total assets | 971,251 | 990,211 | |
Operating Segments [Member] | Equipment Rentals [Member] | |||
Segment Revenues: | |||
Revenues | 102,838 | 101,389 | |
Segment Gross Profit: | |||
Total gross profit | 46,578 | 45,834 | |
Segment identified assets: | |||
Total assets | 873,147 | 893,393 | |
Operating Segments [Member] | New Equipment Sales [Member] | |||
Segment Revenues: | |||
Revenues | 57,179 | 44,537 | |
Segment Gross Profit: | |||
Total gross profit | 6,705 | 5,218 | |
Operating Segments [Member] | Used Equipment Sales [Member] | |||
Segment Revenues: | |||
Revenues | 27,574 | 25,070 | |
Segment Gross Profit: | |||
Total gross profit | 9,062 | 8,184 | |
Segment identified assets: | |||
Total assets | 78,008 | 77,365 | |
Operating Segments [Member] | Parts Sales [Member] | |||
Segment Revenues: | |||
Revenues | 27,969 | 27,085 | |
Segment Gross Profit: | |||
Total gross profit | 7,706 | 7,566 | |
Operating Segments [Member] | Services Revenues [Member] | |||
Segment Revenues: | |||
Revenues | 16,301 | 14,956 | |
Segment Gross Profit: | |||
Total gross profit | 11,000 | 9,679 | |
Operating Segments [Member] | Parts and Services [Member] | |||
Segment identified assets: | |||
Total assets | 20,096 | 19,453 | |
Non-Segmented [Member] | |||
Segment Revenues: | |||
Revenues | 15,149 | 14,373 | |
Segment Gross Profit: | |||
Total gross profit | 93 | $ (141) | |
Segment identified assets: | |||
Total assets | $ 303,540 | $ 309,300 |
Condensed Consolidating Finan41
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Assets: | ||||
Cash | $ 4,732 | $ 7,159 | $ 4,552 | $ 15,861 |
Receivables, net | 145,747 | 147,328 | ||
Inventories, net | 98,104 | 96,818 | ||
Prepaid expenses and other assets | 10,024 | 10,054 | ||
Rental equipment, net | 873,147 | 893,393 | ||
Property and equipment, net | 109,266 | 110,785 | ||
Deferred Financing Costs | 2,574 | 2,777 | ||
Goodwill | 31,197 | 31,197 | ||
Total assets | 1,274,791 | 1,299,511 | ||
Liabilities and Stockholders’ Equity: | ||||
Amounts due on senior secured credit facility | 171,048 | 184,857 | ||
Accounts payable | 66,440 | 66,777 | ||
Manufacturer flooring plans payable | 64,117 | 62,433 | ||
Dividends payable | 48 | 32 | ||
Accrued expenses payable and other liabilities | 42,981 | 55,551 | ||
Senior Unsecured Notes | 627,407 | 627,306 | 628,714 | |
Capital leases payable | 1,858 | 1,907 | ||
Deferred income taxes | 159,896 | 155,886 | ||
Deferred compensation payable | 1,795 | 2,174 | ||
Total liabilities | 1,135,590 | 1,156,923 | ||
Stockholders’ equity | 139,201 | 142,588 | ||
Total liabilities and stockholders' equity | 1,274,791 | 1,299,511 | ||
H & E Equipment Services [Member] | ||||
Assets: | ||||
Cash | 4,732 | 7,159 | $ 4,552 | $ 15,861 |
Receivables, net | 116,256 | 124,157 | ||
Inventories, net | 88,432 | 88,831 | ||
Prepaid expenses and other assets | 9,806 | 9,909 | ||
Rental equipment, net | 730,708 | 750,773 | ||
Property and equipment, net | 97,972 | 99,342 | ||
Deferred Financing Costs | 2,574 | 2,777 | ||
Investment in guarantor subsidiaries | 215,871 | 211,542 | ||
Goodwill | 1,671 | 1,671 | ||
Total assets | 1,268,022 | 1,296,161 | ||
Liabilities and Stockholders’ Equity: | ||||
Amounts due on senior secured credit facility | 171,048 | 184,857 | ||
Accounts payable | 60,881 | 63,959 | ||
Manufacturer flooring plans payable | 63,922 | 62,433 | ||
Dividends payable | 80 | 62 | ||
Accrued expenses payable and other liabilities | 43,792 | 56,896 | ||
Senior Unsecured Notes | 627,407 | 627,306 | ||
Deferred income taxes | 159,896 | 155,886 | ||
Deferred compensation payable | 1,795 | 2,174 | ||
Total liabilities | 1,128,821 | 1,153,573 | ||
Stockholders’ equity | 139,201 | 142,588 | ||
Total liabilities and stockholders' equity | 1,268,022 | 1,296,161 | ||
Guarantor Subsidiaries [Member] | ||||
Assets: | ||||
Receivables, net | 29,491 | 23,171 | ||
Inventories, net | 9,672 | 7,987 | ||
Prepaid expenses and other assets | 218 | 145 | ||
Rental equipment, net | 142,439 | 142,620 | ||
Property and equipment, net | 11,294 | 11,443 | ||
Goodwill | 29,526 | 29,526 | ||
Total assets | 222,640 | 214,892 | ||
Liabilities and Stockholders’ Equity: | ||||
Accounts payable | 5,559 | 2,818 | ||
Manufacturer flooring plans payable | 195 | |||
Dividends payable | (32) | (30) | ||
Accrued expenses payable and other liabilities | (811) | (1,345) | ||
Capital leases payable | 1,858 | 1,907 | ||
Total liabilities | 6,769 | 3,350 | ||
Stockholders’ equity | 215,871 | 211,542 | ||
Total liabilities and stockholders' equity | 222,640 | 214,892 | ||
Elimination [Member] | ||||
Assets: | ||||
Investment in guarantor subsidiaries | (215,871) | (211,542) | ||
Total assets | (215,871) | (211,542) | ||
Liabilities and Stockholders’ Equity: | ||||
Stockholders’ equity | (215,871) | (211,542) | ||
Total liabilities and stockholders' equity | $ (215,871) | $ (211,542) |
Condensed Consolidating Finan42
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | ||
Revenues | $ 247,010 | $ 227,410 |
Services revenues | 16,301 | 14,956 |
Other | 15,149 | 14,373 |
Cost of revenues: | ||
Cost of revenues | 165,866 | 151,070 |
Services revenues | 5,301 | 5,277 |
Other | 15,056 | 14,514 |
Gross profit (loss): | ||
Gross profit | 81,144 | 76,340 |
Selling, general and administrative expenses | 59,374 | 53,466 |
Gain on sales of property and equipment, net | 662 | 458 |
Income from operations | 22,432 | 23,332 |
Other income (expense): | ||
Interest expense | (13,407) | (13,445) |
Other, net | 430 | 354 |
Total other expense, net | (12,977) | (13,091) |
Income before provision for income taxes | 9,455 | 10,241 |
Income tax expense | 3,881 | 4,155 |
Net income | 5,574 | 6,086 |
Rental Depreciation [Member] | ||
Cost of revenues: | ||
Cost of revenues | 39,497 | 39,944 |
Rental Expense [Member] | ||
Cost of revenues: | ||
Cost of revenues | 16,763 | 15,611 |
Elimination [Member] | ||
Gross profit (loss): | ||
Equity in earnings of guarantor subsidiaries | (1,735) | (1,377) |
Income from operations | (1,735) | (1,377) |
Other income (expense): | ||
Income before provision for income taxes | (1,735) | (1,377) |
Net income | (1,735) | (1,377) |
Other [Member] | ||
Gross profit (loss): | ||
Gross profit | 93 | (141) |
Equipment Rentals [Member] | ||
Revenues: | ||
Revenues | 102,838 | 101,389 |
Gross profit (loss): | ||
Gross profit | 46,578 | 45,834 |
New Equipment Sales [Member] | ||
Revenues: | ||
Revenues | 57,179 | 44,537 |
Cost of revenues: | ||
Cost of revenues | 50,474 | 39,319 |
Gross profit (loss): | ||
Gross profit | 6,705 | 5,218 |
Used Equipment Sales [Member] | ||
Revenues: | ||
Revenues | 27,574 | 25,070 |
Cost of revenues: | ||
Cost of revenues | 18,512 | 16,886 |
Gross profit (loss): | ||
Gross profit | 9,062 | 8,184 |
Parts Sales [Member] | ||
Revenues: | ||
Revenues | 27,969 | 27,085 |
Cost of revenues: | ||
Cost of revenues | 20,263 | 19,519 |
Gross profit (loss): | ||
Gross profit | 7,706 | 7,566 |
Services Revenues [Member] | ||
Revenues: | ||
Revenues | 16,301 | 14,956 |
Cost of revenues: | ||
Cost of revenues | 5,301 | 5,277 |
Gross profit (loss): | ||
Gross profit | 11,000 | 9,679 |
H & E Equipment Services [Member] | ||
Revenues: | ||
Revenues | 205,099 | 191,125 |
Services revenues | 13,979 | 12,855 |
Other | 12,425 | 11,753 |
Cost of revenues: | ||
Cost of revenues | 137,372 | 126,933 |
Services revenues | 4,602 | 4,576 |
Other | 12,247 | 11,706 |
Gross profit (loss): | ||
Gross profit | 67,727 | 64,192 |
Selling, general and administrative expenses | 49,603 | 45,806 |
Equity in earnings of guarantor subsidiaries | 1,735 | 1,377 |
Gain on sales of property and equipment, net | 530 | 214 |
Income from operations | 20,389 | 19,977 |
Other income (expense): | ||
Interest expense | (11,301) | (10,039) |
Other, net | 367 | 303 |
Total other expense, net | (10,934) | (9,736) |
Income before provision for income taxes | 9,455 | 10,241 |
Income tax expense | 3,881 | 4,155 |
Net income | 5,574 | 6,086 |
H & E Equipment Services [Member] | Rental Depreciation [Member] | ||
Cost of revenues: | ||
Cost of revenues | 33,112 | 33,500 |
H & E Equipment Services [Member] | Rental Expense [Member] | ||
Cost of revenues: | ||
Cost of revenues | 14,048 | 12,860 |
H & E Equipment Services [Member] | Other [Member] | ||
Gross profit (loss): | ||
Gross profit | 178 | 47 |
H & E Equipment Services [Member] | Equipment Rentals [Member] | ||
Revenues: | ||
Revenues | 86,025 | 84,912 |
Gross profit (loss): | ||
Gross profit | 38,865 | 38,552 |
H & E Equipment Services [Member] | New Equipment Sales [Member] | ||
Revenues: | ||
Revenues | 45,532 | 37,782 |
Cost of revenues: | ||
Cost of revenues | 40,114 | 33,318 |
Gross profit (loss): | ||
Gross profit | 5,418 | 4,464 |
H & E Equipment Services [Member] | Used Equipment Sales [Member] | ||
Revenues: | ||
Revenues | 22,916 | 20,040 |
Cost of revenues: | ||
Cost of revenues | 15,643 | 13,782 |
Gross profit (loss): | ||
Gross profit | 7,273 | 6,258 |
H & E Equipment Services [Member] | Parts Sales [Member] | ||
Revenues: | ||
Revenues | 24,222 | 23,783 |
Cost of revenues: | ||
Cost of revenues | 17,606 | 17,191 |
Gross profit (loss): | ||
Gross profit | 6,616 | 6,592 |
H & E Equipment Services [Member] | Services Revenues [Member] | ||
Gross profit (loss): | ||
Gross profit | 9,377 | 8,279 |
Guarantor Subsidiaries [Member] | ||
Revenues: | ||
Revenues | 41,911 | 36,285 |
Services revenues | 2,322 | 2,101 |
Other | 2,724 | 2,620 |
Cost of revenues: | ||
Cost of revenues | 28,494 | 24,137 |
Services revenues | 699 | 701 |
Other | 2,809 | 2,808 |
Gross profit (loss): | ||
Gross profit | 13,417 | 12,148 |
Selling, general and administrative expenses | 9,771 | 7,660 |
Gain on sales of property and equipment, net | 132 | 244 |
Income from operations | 3,778 | 4,732 |
Other income (expense): | ||
Interest expense | (2,106) | (3,406) |
Other, net | 63 | 51 |
Total other expense, net | (2,043) | (3,355) |
Income before provision for income taxes | 1,735 | 1,377 |
Net income | 1,735 | 1,377 |
Guarantor Subsidiaries [Member] | Rental Depreciation [Member] | ||
Cost of revenues: | ||
Cost of revenues | 6,385 | 6,444 |
Guarantor Subsidiaries [Member] | Rental Expense [Member] | ||
Cost of revenues: | ||
Cost of revenues | 2,715 | 2,751 |
Guarantor Subsidiaries [Member] | Other [Member] | ||
Gross profit (loss): | ||
Gross profit | (85) | (188) |
Guarantor Subsidiaries [Member] | Equipment Rentals [Member] | ||
Revenues: | ||
Revenues | 16,813 | 16,477 |
Gross profit (loss): | ||
Gross profit | 7,713 | 7,282 |
Guarantor Subsidiaries [Member] | New Equipment Sales [Member] | ||
Revenues: | ||
Revenues | 11,647 | 6,755 |
Cost of revenues: | ||
Cost of revenues | 10,360 | 6,001 |
Gross profit (loss): | ||
Gross profit | 1,287 | 754 |
Guarantor Subsidiaries [Member] | Used Equipment Sales [Member] | ||
Revenues: | ||
Revenues | 4,658 | 5,030 |
Cost of revenues: | ||
Cost of revenues | 2,869 | 3,104 |
Gross profit (loss): | ||
Gross profit | 1,789 | 1,926 |
Guarantor Subsidiaries [Member] | Parts Sales [Member] | ||
Revenues: | ||
Revenues | 3,747 | 3,302 |
Cost of revenues: | ||
Cost of revenues | 2,657 | 2,328 |
Gross profit (loss): | ||
Gross profit | 1,090 | 974 |
Guarantor Subsidiaries [Member] | Services Revenues [Member] | ||
Gross profit (loss): | ||
Gross profit | $ 1,623 | $ 1,400 |
Condensed Consolidating Finan43
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 5,574 | $ 6,086 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of property and equipment | 6,702 | 5,624 |
Depreciation of rental equipment | 39,497 | 39,944 |
Amortization of deferred financing costs | 262 | 249 |
Accretion of note discount, net of premium amortization | 42 | 42 |
Provision for losses on accounts receivable | 1,008 | 638 |
Provision for inventory obsolescence | 7 | 29 |
Change in deferred income taxes | 4,010 | 4,025 |
Stock-based compensation expense | 1,041 | 1,021 |
Tax deficiency from stock-based awards | (234) | |
Gain from sales of property and equipment, net | (662) | (458) |
Gain from sales of rental equipment, net | (8,884) | (7,927) |
Changes in operating assets and liabilities: | ||
Receivables | 573 | 31,813 |
Inventories | (23,235) | (59,745) |
Prepaid expenses and other assets | 30 | (2,438) |
Accounts payable | (337) | 19,525 |
Manufacturer flooring plans payable | 1,684 | (19,306) |
Accrued expenses payable and other liabilities | (12,961) | (18,581) |
Deferred compensation payable | (379) | 17 |
Net cash provided by operating activities | 13,738 | 558 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (4,966) | (6,462) |
Purchases of rental equipment | (12,620) | (19,930) |
Proceeds from sales of property and equipment | 837 | 538 |
Proceeds from sales of rental equipment | 24,195 | 20,646 |
Net cash provided by (used in) investing activities | 7,446 | (5,208) |
Cash flows from financing activities: | ||
Borrowings on senior secured credit facility | 237,258 | 264,490 |
Payments on senior secured credit facility | (251,067) | (261,562) |
Dividends paid | (9,753) | (8,815) |
Payments of deferred financing costs | (725) | |
Payments of capital lease obligations | (49) | (47) |
Net cash used in financing activities | (23,611) | (6,659) |
Net decrease in cash | (2,427) | (11,309) |
Cash, beginning of period | 7,159 | 15,861 |
Cash, end of period | 4,732 | 4,552 |
H & E Equipment Services [Member] | ||
Cash flows from operating activities: | ||
Net income | 5,574 | 6,086 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of property and equipment | 5,951 | 4,921 |
Depreciation of rental equipment | 33,112 | 33,500 |
Amortization of deferred financing costs | 262 | 249 |
Accretion of note discount, net of premium amortization | 42 | 42 |
Provision for losses on accounts receivable | 995 | 587 |
Provision for inventory obsolescence | 7 | 29 |
Change in deferred income taxes | 4,010 | 4,025 |
Stock-based compensation expense | 1,041 | 1,021 |
Tax deficiency from stock-based awards | (234) | |
Gain from sales of property and equipment, net | (530) | (214) |
Gain from sales of rental equipment, net | (7,108) | (6,011) |
Equity in earnings of guarantor subsidiaries | (1,735) | (1,377) |
Changes in operating assets and liabilities: | ||
Receivables | 6,906 | 25,666 |
Inventories | (18,907) | (50,191) |
Prepaid expenses and other assets | 103 | (2,365) |
Accounts payable | (3,078) | 14,786 |
Manufacturer flooring plans payable | 1,489 | (19,306) |
Accrued expenses payable and other liabilities | (13,495) | (18,794) |
Deferred compensation payable | (379) | 17 |
Net cash provided by operating activities | 14,026 | (7,329) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (4,359) | (5,357) |
Purchases of rental equipment | (6,239) | (11,027) |
Proceeds from sales of property and equipment | 700 | 294 |
Proceeds from sales of rental equipment | 19,599 | 15,771 |
Investment in subsidiaries | (2,594) | 2,950 |
Net cash provided by (used in) investing activities | 7,107 | 2,631 |
Cash flows from financing activities: | ||
Borrowings on senior secured credit facility | 237,258 | 264,490 |
Payments on senior secured credit facility | (251,067) | (261,562) |
Dividends paid | (9,751) | (8,814) |
Payments of deferred financing costs | (725) | |
Net cash used in financing activities | (23,560) | (6,611) |
Net decrease in cash | (2,427) | (11,309) |
Cash, beginning of period | 7,159 | 15,861 |
Cash, end of period | 4,732 | 4,552 |
Guarantor Subsidiaries [Member] | ||
Cash flows from operating activities: | ||
Net income | 1,735 | 1,377 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of property and equipment | 751 | 703 |
Depreciation of rental equipment | 6,385 | 6,444 |
Provision for losses on accounts receivable | 13 | 51 |
Gain from sales of property and equipment, net | (132) | (244) |
Gain from sales of rental equipment, net | (1,776) | (1,916) |
Changes in operating assets and liabilities: | ||
Receivables | (6,333) | 6,147 |
Inventories | (4,328) | (9,554) |
Prepaid expenses and other assets | (73) | (73) |
Accounts payable | 2,741 | 4,739 |
Manufacturer flooring plans payable | 195 | |
Accrued expenses payable and other liabilities | 534 | 213 |
Net cash provided by operating activities | (288) | 7,887 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (607) | (1,105) |
Purchases of rental equipment | (6,381) | (8,903) |
Proceeds from sales of property and equipment | 137 | 244 |
Proceeds from sales of rental equipment | 4,596 | 4,875 |
Net cash provided by (used in) investing activities | (2,255) | (4,889) |
Cash flows from financing activities: | ||
Dividends paid | (2) | (1) |
Payments of capital lease obligations | (49) | (47) |
Capital contributions | 2,594 | (2,950) |
Net cash used in financing activities | 2,543 | (2,998) |
Elimination [Member] | ||
Cash flows from operating activities: | ||
Net income | (1,735) | (1,377) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Equity in earnings of guarantor subsidiaries | 1,735 | 1,377 |
Cash flows from investing activities: | ||
Investment in subsidiaries | 2,594 | (2,950) |
Net cash provided by (used in) investing activities | 2,594 | (2,950) |
Cash flows from financing activities: | ||
Capital contributions | (2,594) | 2,950 |
Net cash used in financing activities | $ (2,594) | $ 2,950 |