Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 21, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
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 | 35,462,060 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash | $ 10,353 | $ 7,159 |
Receivables, net of allowance for doubtful accounts of $4,594 and $4,729, respectively | 138,210 | 147,328 |
Inventories, net of reserves for obsolescence of $834 and $934, respectively | 114,810 | 96,818 |
Prepaid expenses and other assets | 9,565 | 10,054 |
Rental equipment, net of accumulated depreciation of $407,259 and $390,317, respectively | 888,792 | 893,393 |
Property and equipment, net of accumulated depreciation and amortization of $116,078 and $107,170, respectively | 108,255 | 110,785 |
Deferred financing costs, net of accumulated amortization of $11,753 and $11,347, respectively | 2,370 | 2,777 |
Goodwill | 31,197 | 31,197 |
Total assets | 1,303,552 | 1,299,511 |
Liabilities: | ||
Amounts due on senior secured credit facility | 174,504 | 184,857 |
Accounts payable | 89,098 | 66,777 |
Manufacturer flooring plans payable | 45,967 | 62,433 |
Accrued expenses payable and other liabilities | 60,185 | 55,551 |
Dividends payable | 45 | 32 |
Senior unsecured notes, net of unaccreted discount of $2,492 and $2,694, respectively | 627,508 | 627,306 |
Capital leases payable | 1,807 | 1,907 |
Deferred income taxes | 165,068 | 155,886 |
Deferred compensation payable | 1,811 | 2,174 |
Total liabilities | 1,165,993 | 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 June 30, 2016 and December 31, 2015, respectively, and 35,462,060 and 35,428,868 shares outstanding at June 30, 2016 and December 31, 2015, respectively | 393 | 392 |
Additional paid-in capital | 222,290 | 220,879 |
Treasury stock at cost, 3,911,488 and 3,904,703 shares of common stock held at June 30, 2016 and December 31, 2015, respectively | (60,405) | (60,405) |
Retained deficit | (24,719) | (18,278) |
Total stockholders' equity | 137,559 | 142,588 |
Total liabilities and stockholders' equity | $ 1,303,552 | $ 1,299,511 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivables | $ 4,594 | $ 4,729 |
Reserves for obsolescence inventories | 834 | 934 |
Accumulated depreciation, rental equipment | 407,259 | 390,317 |
Accumulated depreciation and amortization, property and equipment | 116,078 | 107,170 |
Accumulated amortization, deferred financing costs | 11,753 | 11,347 |
Unaccreted discount, net | $ 2,492 | $ 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 | 35,462,060 | 35,428,868 |
Treasury stock, shares | 3,911,488 | 3,904,703 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||||
Revenues | $ 242,095 | $ 262,360 | $ 489,105 | $ 489,770 |
Cost of revenues: | ||||
Cost of revenues | 160,387 | 175,956 | 326,253 | 327,026 |
Gross profit | 81,708 | 86,404 | 162,852 | 162,744 |
Selling, general and administrative expenses | 57,049 | 54,414 | 116,423 | 107,880 |
Gain on sales of property and equipment, net | 712 | 972 | 1,374 | 1,430 |
Income from operations | 25,371 | 32,962 | 47,803 | 56,294 |
Other income (expense): | ||||
Interest expense | (13,353) | (13,749) | (26,760) | (27,194) |
Other, net | 689 | 228 | 1,119 | 582 |
Total other expense, net | (12,664) | (13,521) | (25,641) | (26,612) |
Income before provision for income taxes | 12,707 | 19,441 | 22,162 | 29,682 |
Provision for income taxes | 5,204 | 7,961 | 9,085 | 12,116 |
Net income | $ 7,503 | $ 11,480 | $ 13,077 | $ 17,566 |
Net income per common share: | ||||
Basic | $ 0.21 | $ 0.33 | $ 0.37 | $ 0.50 |
Diluted | $ 0.21 | $ 0.33 | $ 0.37 | $ 0.50 |
Weighted average common shares outstanding: | ||||
Basic | 35,354 | 35,238 | 35,347 | 35,232 |
Diluted | 35,480 | 35,314 | 35,439 | 35,300 |
Dividends declared per common share outstanding | $ 0.275 | $ 0.25 | $ 0.55 | $ 0.50 |
Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | $ 39,675 | $ 40,214 | $ 79,172 | $ 80,158 |
Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 18,021 | 17,701 | 34,784 | 33,312 |
Other [Member] | ||||
Revenues: | ||||
Revenues | 16,184 | 16,308 | 31,333 | 30,681 |
Cost of revenues: | ||||
Cost of revenues | 16,082 | 15,914 | 31,138 | 30,428 |
Gross profit | 102 | 394 | 195 | 253 |
Equipment Rentals [Member] | ||||
Revenues: | ||||
Revenues | 108,650 | 108,628 | 211,488 | 210,017 |
Cost of revenues: | ||||
Gross profit | 50,954 | 50,713 | 97,532 | 96,547 |
New Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 49,893 | 64,376 | 107,072 | 108,913 |
Cost of revenues: | ||||
Cost of revenues | 44,531 | 56,749 | 95,005 | 96,068 |
Gross profit | 5,362 | 7,627 | 12,067 | 12,845 |
Used Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 23,769 | 28,932 | 51,343 | 54,002 |
Cost of revenues: | ||||
Cost of revenues | 16,875 | 19,613 | 35,387 | 36,499 |
Gross profit | 6,894 | 9,319 | 15,956 | 17,503 |
Parts Sales [Member] | ||||
Revenues: | ||||
Revenues | 26,654 | 28,347 | 54,623 | 55,432 |
Cost of revenues: | ||||
Cost of revenues | 19,213 | 20,607 | 39,476 | 40,126 |
Gross profit | 7,441 | 7,740 | 15,147 | 15,306 |
Services Revenues [Member] | ||||
Revenues: | ||||
Revenues | 16,945 | 15,769 | 33,246 | 30,725 |
Cost of revenues: | ||||
Cost of revenues | 5,990 | 5,158 | 11,291 | 10,435 |
Gross profit | $ 10,955 | $ 10,611 | $ 21,955 | $ 20,290 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 13,077 | $ 17,566 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 13,464 | 11,654 |
Depreciation of rental equipment | 79,172 | 80,158 |
Amortization of deferred financing costs | 526 | 511 |
Accretion of note discount, net of premium amortization | 83 | 84 |
Provision for losses on accounts receivable | 2,008 | 1,393 |
Provision for inventory obsolescence | 14 | 99 |
Change in deferred income taxes | 9,182 | 11,862 |
Stock-based compensation expense | 1,667 | 1,505 |
Gain from sales of property and equipment, net | (1,374) | (1,430) |
Gain from sales of rental equipment, net | (15,467) | (16,774) |
Changes in operating assets and liabilities: | ||
Receivables | 7,110 | 15,134 |
Inventories | (52,467) | (47,927) |
Prepaid expenses and other assets | 489 | (6,099) |
Accounts payable | 22,322 | 10,505 |
Manufacturer flooring plans payable | (16,466) | (20,745) |
Accrued expenses payable and other liabilities | 4,600 | (1,888) |
Deferred compensation payable | (363) | 34 |
Net cash provided by operating activities | 67,577 | 55,642 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (11,465) | (12,872) |
Purchases of rental equipment | (69,144) | (71,919) |
Proceeds from sales of property and equipment | 1,683 | 1,987 |
Proceeds from sales of rental equipment | 44,501 | 44,411 |
Net cash used in investing activities | (34,425) | (38,393) |
Cash flows from financing activities: | ||
Borrowings on senior secured credit facility | 482,513 | 506,455 |
Payments on senior secured credit facility | (492,866) | (509,256) |
Payments of deferred financing costs | (725) | |
Dividends paid | (19,505) | (17,629) |
Payments of capital lease obligations | (100) | (94) |
Net cash used in financing activities | (29,958) | (21,249) |
Net increase (decrease) in cash | 3,194 | (4,000) |
Cash, beginning of period | 7,159 | 15,861 |
Cash, end of period | 10,353 | 11,861 |
Noncash asset purchases: | ||
Assets transferred from new and used inventory to rental fleet | 34,461 | 42,152 |
Purchases of property and equipment included in accrued expenses payable and other liabilities | 222 | |
Cash paid during the period for: | ||
Interest | 26,215 | 26,714 |
Income taxes paid, net of refunds received | $ 269 | $ 375 |
Organization and Nature of Oper
Organization and Nature of Operations | 6 Months Ended |
Jun. 30, 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 and six month periods ended June 30, 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 | 6 Months Ended |
Jun. 30, 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 six month period ended June 30, 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 | 6 Months Ended |
Jun. 30, 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 June 30, 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. June 30, 2016 Carrying Amount Fair Value Manufacturer flooring plans payable with interest computed at 5.00% (Level 3) $ 45,967 $ 40,281 Senior unsecured notes with interest computed at 7.0% (Level 1) 627,508 648,900 Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) 1,807 1,225 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 and six month periods ended June 30, 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 | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | (4) Stockholders’ Equity The following table summarizes the activity in Stockholders’ Equity for the six month period ended June 30, 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 — — 1,667 — — 1,667 Cash dividends declared on common stock ($0.275 per share) — — — — (19,518 ) (19,518 ) Tax deficiency associated with stock-based awards — — (256 ) — — (256 ) Issuance of common stock 39,977 1 — — — 1 Net income — — — — 13,077 13,077 Balances at June 30, 2016 39,373,548 $ 393 $ 222,290 $ (60,405 ) $ (24,719 ) $ 137,559 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 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 Over the last ten years, we have been granting awards under our 2006 Stock-Based Incentive Compensation Plan, as amended (the “Prior Stock Plan”). The Prior Stock Plan expired pursuant to its terms in June 2016, and the Company will no longer be able to grant equity awards under the Prior Stock Plan. At our annual meeting of stockholders in May 2106, our stockholders approved our 2016 Stock-Based Incentive Compensation Plan. Shares available for future stock-based payment awards under our 2016 Stock-Based Incentive Compensation Plan were 2,100,000 shares as of June 30, 2016. To the extent that awards granted under the Prior Stock Plan are forfeited or otherwise terminate for any reason whatsoever without an actual distribution or issuance of shares, the plan limit will be increased by such number of shares. Non-vested Stock The following table summarizes our non-vested stock activity, all of which was granted pursuant to the Prior Stock Plan, for the six months ended June 30, 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 (6,785 ) $ 18.63 Non-vested stock at June 30, 2016 315,570 $ 19.93 As of June 30, 2016, we had unrecognized compensation expense of approximately $3.5 million related to non-vested stock that we expect to be recognized over a weighted-average period of approximately 2.2 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 and six months ended June 30, 2016 and 2015 (amounts in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 Compensation expense $ 626 $ 484 $ 1,667 $ 1,505 Stock Options At June 30 2016, there is no unrecognized compensation expense as all stock option awards have fully vested. The following table represents stock option activity for the six months ended June 30, 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 June 30, 2016 6,000 $ 19.27 1.1 Options exercisable at June 30, 2016 6,000 $ 19.27 1.1 The closing price of our common stock at June 30, 2016 was $19.03. Options outstanding at June 30, 2016, all of which were granted pursuant to the Prior Stock Plan, have grant date fair values that exceed the June 30, 2016 closing stock price. |
Income per Share
Income per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Income per Share | (6) Income per Share Income per common share for the three and six months ended June 30, 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 each of the three and six months ended June 30, 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 and six months ended June 30, 2016 and 2015 (amounts in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Basic net income per share: Net income $ 7,503 $ 11,480 $ 13,077 $ 17,566 Weighted average number of common shares outstanding 35,354 35,238 35,347 35,232 Net income per share of common stock – basic $ 0.21 $ 0.33 $ 0.37 $ 0.50 Diluted net income per share: Net income $ 7,503 $ 11,480 $ 13,077 $ 17,566 Weighted average number of common shares outstanding 35,354 35,238 35,347 35,232 Effect of dilutive securities: Effect of dilutive stock options — 20 — 20 Effect of dilutive non-vested restricted stock 126 56 92 48 Weighted average number of common shares outstanding – diluted 35,480 35,314 35,439 35,300 Net income per share of common stock – diluted $ 0.21 $ 0.33 $ 0.37 $ 0.50 Common shares excluded from the denominator as anti-dilutive: Stock options 1 — 7 — Non-vested restricted stock — — 4 — |
Senior Secured Credit Facility
Senior Secured Credit Facility | 6 Months Ended |
Jun. 30, 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 June 30, 2016, we were in compliance with our financial covenants under the Credit Facility. At June 30, 2016, the Company could borrow up to an additional $420.3 million and remain in compliance with the debt covenants under the Company’s Credit Facility. At June 30, 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 June 30, 2016 was approximately 2.8%. At July 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2016 527 Amortization of note premium through June 30, 2016 (443 ) Amortization of deferred financing costs through June 30, 2016 118 Balance at June 30, 2016 $ 627,508 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Segment Revenues: Equipment rentals $ 108,650 $ 108,628 $ 211,488 $ 210,017 New equipment sales 49,893 64,376 107,072 108,913 Used equipment sales 23,769 28,932 51,343 54,002 Parts sales 26,654 28,347 54,623 55,432 Services revenues 16,945 15,769 33,246 30,725 Total segmented revenues 225,911 246,052 457,772 459,089 Non-segmented revenues 16,184 16,308 31,333 30,681 Total revenues $ 242,095 $ 262,360 $ 489,105 $ 489,770 Segment Gross Profit: Equipment rentals $ 50,954 $ 50,713 $ 97,532 $ 96,547 New equipment sales 5,362 7,627 12,067 12,845 Used equipment sales 6,894 9,319 15,956 17,503 Parts sales 7,441 7,740 15,147 15,306 Services revenues 10,955 10,611 21,955 20,290 Total segmented gross profit 81,606 86,010 162,657 162,491 Non-segmented gross profit (loss) 102 394 195 253 Total gross profit $ 81,708 $ 86,404 $ 162,852 $ 162,744 Balances at June 30, December 31, 2016 2015 Segment identified assets: Equipment sales $ 96,766 $ 77,365 Equipment rentals 888,792 893,393 Parts and services 18,044 19,453 Total segment identified assets 1,003,602 990,211 Non-segment identified assets 299,950 309,300 Total assets $ 1,303,552 $ 1,299,511 The Company operates primarily in the United States and our sales to international customers for the three month period ended June 30, 2016 and 2015 were 0.3% and 0.6%, respectively, of total revenues. Our sales to international customers for the six month period ended June 30, 2016 and 2015 were 0.5% and 0.7%, respectively, of total revenues. 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Assets: Cash $ 10,353 $ — $ — $ 10,353 Receivables, net 111,539 26,671 — 138,210 Inventories, net 97,067 17,743 — 114,810 Prepaid expenses and other assets 9,362 203 — 9,565 Rental equipment, net 736,116 152,676 — 888,792 Property and equipment, net 96,820 11,435 — 108,255 Deferred financing costs, net 2,370 — — 2,370 Investment in guarantor subsidiaries 226,452 — (226,452 ) — Goodwill 1,671 29,526 — 31,197 Total assets $ 1,291,750 $ 238,254 $ (226,452 ) $ 1,303,552 Liabilities and Stockholders’ Equity: Amounts due on senior secured credit facility $ 174,504 $ — $ — $ 174,504 Accounts payable 78,469 10,629 — 89,098 Manufacturer flooring plans payable 45,967 — — 45,967 Accrued expenses payable and other liabilities 60,785 (600 ) — 60,185 Dividends payable 79 (34 ) — 45 Senior unsecured notes 627,508 — — 627,508 Capital leases payable — 1,807 — 1,807 Deferred income taxes 165,068 — — 165,068 Deferred compensation payable 1,811 — — 1,811 Total liabilities 1,154,191 11,802 — 1,165,993 Stockholders’ equity 137,559 226,452 (226,452 ) 137,559 Total liabilities and stockholders’ equity $ 1,291,750 $ 238,254 $ (226,452 ) $ 1,303,552 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 June 30, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 88,592 $ 20,058 $ — $ 108,650 New equipment sales 41,808 8,085 — 49,893 Used equipment sales 19,821 3,948 — 23,769 Parts sales 23,295 3,359 — 26,654 Services revenues 14,468 2,477 — 16,945 Other 13,121 3,063 — 16,184 Total revenues 201,105 40,990 — 242,095 Cost of revenues: Rental depreciation 32,831 6,844 — 39,675 Rental expense 14,960 3,061 — 18,021 New equipment sales 37,273 7,258 — 44,531 Used equipment sales 14,161 2,714 — 16,875 Parts sales 16,833 2,380 — 19,213 Services revenues 5,182 808 — 5,990 Other 13,106 2,976 — 16,082 Total cost of revenues 134,346 26,041 — 160,387 Gross profit: Equipment rentals 40,801 10,153 — 50,954 New equipment sales 4,535 827 — 5,362 Used equipment sales 5,660 1,234 — 6,894 Parts sales 6,462 979 — 7,441 Services revenues 9,286 1,669 — 10,955 Other 15 87 — 102 Gross profit 66,759 14,949 — 81,708 Selling, general and administrative expenses 46,989 10,060 — 57,049 Equity in earnings of guarantor subsidiaries 2,761 — (2,761 ) — Gain on sales of property and equipment, net 636 76 — 712 Income from operations 23,167 4,965 (2,761 ) 25,371 Other income (expense): Interest expense (11,084 ) (2,269 ) — (13,353 ) Other, net 624 65 — 689 Total other expense, net (10,460 ) (2,204 ) — (12,664 ) Income before income taxes 12,707 2,761 (2,761 ) 12,707 Income tax expense 5,204 — — 5,204 Net income $ 7,503 $ 2,761 $ (2,761 ) $ 7,503 CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended June 30, 2015 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 89,590 $ 19,038 $ — $ 108,628 New equipment sales 61,564 2,812 — 64,376 Used equipment sales 23,909 5,023 — 28,932 Parts sales 24,303 4,044 — 28,347 Services revenues 13,218 2,551 — 15,769 Other 13,149 3,159 — 16,308 Total revenues 225,733 36,627 — 262,360 Cost of revenues: Rental depreciation 33,542 6,672 — 40,214 Rental expense 14,736 2,965 — 17,701 New equipment sales 54,234 2,515 — 56,749 Used equipment sales 16,389 3,224 — 19,613 Parts sales 17,697 2,910 — 20,607 Services revenues 4,332 826 — 5,158 Other 12,848 3,066 — 15,914 Total cost of revenues 153,778 22,178 — 175,956 Gross profit: Equipment rentals 41,312 9,401 — 50,713 New equipment sales 7,330 297 — 7,627 Used equipment sales 7,520 1,799 — 9,319 Parts sales 6,606 1,134 — 7,740 Services revenues 8,886 1,725 — 10,611 Other 301 93 — 394 Gross profit 71,955 14,449 — 86,404 Selling, general and administrative expenses 45,350 9,064 — 54,414 Equity in earnings of guarantor subsidiaries 1,982 — (1,982 ) — Gain on sales of property and equipment, net 860 112 — 972 Income from operations 29,447 5,497 (1,982 ) 32,962 Other income (expense): Interest expense (10,199 ) (3,550 ) — (13,749 ) Other, net 193 35 — 228 Total other expense, net (10,006 ) (3,515 ) — (13,521 ) Income before income taxes 19,441 1,982 (1,982 ) 19,441 Income tax expense 7,961 — — 7,961 Net income $ 11,480 $ 1,982 $ (1,982 ) $ 11,480 CONDENSED CONSOLIDATING STATEMENT OF INCOME Six Months Ended June 30, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 174,617 $ 36,871 $ — $ 211,488 New equipment sales 87,340 19,732 — 107,072 Used equipment sales 42,737 8,606 — 51,343 Parts sales 47,516 7,107 — 54,623 Services revenues 28,447 4,799 — 33,246 Other 25,547 5,786 — 31,333 Total revenues 406,204 82,901 — 489,105 Cost of revenues: Rental depreciation 65,944 13,228 — 79,172 Rental expense 29,008 5,776 — 34,784 New equipment sales 77,388 17,617 — 95,005 Used equipment sales 29,803 5,584 — 35,387 Parts sales 34,439 5,037 — 39,476 Services revenues 9,784 1,507 — 11,291 Other 25,353 5,785 — 31,138 Total cost of revenues 271,719 54,534 — 326,253 Gross profit: Equipment rentals 79,665 17,867 — 97,532 New equipment sales 9,952 2,115 — 12,067 Used equipment sales 12,934 3,022 — 15,956 Parts sales 13,077 2,070 — 15,147 Services revenues 18,663 3,292 — 21,955 Other 194 1 — 195 Gross profit 134,485 28,367 — 162,852 Selling, general and administrative expenses 96,591 19,832 — 116,423 Equity in earnings of guarantor subsidiaries 4,496 — (4,496 ) — Gain on sales of property and equipment, net 1,166 208 — 1,374 Income from operations 43,556 8,743 (4,496 ) 47,803 Other income (expense): Interest expense (22,386 ) (4,374 ) — (26,760 ) Other, net 992 127 — 1,119 Total other expense, net (21,394 ) (4,247 ) — (25,641 ) Income before income taxes 22,162 4,496 (4,496 ) 22,162 Income tax expense 9,085 — — 9,085 Net income $ 13,077 $ 4,496 $ (4,496 ) $ 13,077 CONDENSED CONSOLIDATING STATEMENT OF INCOME Six Months Ended June 30, 2015 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 174,502 $ 35,515 $ — $ 210,017 New equipment sales 99,346 9,567 — 108,913 Used equipment sales 43,949 10,053 — 54,002 Parts sales 48,086 7,346 — 55,432 Services revenues 26,073 4,652 — 30,725 Other 24,902 5,779 — 30,681 Total revenues 416,858 72,912 — 489,770 Cost of revenues: Rental depreciation 67,042 13,116 — 80,158 Rental expense 27,596 5,716 — 33,312 New equipment sales 87,553 8,515 — 96,068 Used equipment sales 30,171 6,328 — 36,499 Parts sales 34,887 5,239 — 40,126 Services revenues 8,908 1,527 — 10,435 Other 24,555 5,873 — 30,428 Total cost of revenues 280,712 46,314 — 327,026 Gross profit (loss): Equipment rentals 79,864 16,683 — 96,547 New equipment sales 11,793 1,052 — 12,845 Used equipment sales 13,778 3,725 — 17,503 Parts sales 13,199 2,107 — 15,306 Services revenues 17,165 3,125 — 20,290 Other 347 (94 ) — 253 Gross profit 136,146 26,598 — 162,744 Selling, general and administrative expenses 91,157 16,723 — 107,880 Equity in earnings of guarantor subsidiaries 3,359 — (3,359 ) — Gain on sales of property and equipment, net 1,075 355 — 1,430 Income from operations 49,423 10,230 (3,359 ) 56,294 Other income (expense): Interest expense (20,238 ) (6,956 ) — (27,194 ) Other, net 497 85 — 582 Total other expense, net (19,741 ) (6,871 ) — (26,612 ) Income before income taxes 29,682 3,359 (3,359 ) 29,682 Income tax expense 12,116 — — 12,116 Net income $ 17,566 $ 3,359 $ (3,359 ) $ 17,566 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 13,077 $ 4,496 $ (4,496 ) $ 13,077 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 11,952 1,512 — 13,464 Depreciation of rental equipment 65,944 13,228 — 79,172 Amortization of deferred financing costs 526 — — 526 Accretion of note discount, net of premium amortization 83 — — 83 Provision for losses on accounts receivable 1,979 29 — 2,008 Provision for inventory obsolescence 14 — — 14 Change in deferred income taxes 9,182 — — 9,182 Stock-based compensation expense 1,667 — — 1,667 Gain from sales of property and equipment, net (1,166 ) (208 ) — (1,374 ) Gain from sales of rental equipment, net (12,481 ) (2,986 ) — (15,467 ) Equity in earnings of guarantor subsidiaries (4,496 ) — 4,496 — Changes in operating assets and liabilities: Receivables 10,639 (3,529 ) — 7,110 Inventories (38,755 ) (13,712 ) — (52,467 ) Prepaid expenses and other assets 547 (58 ) — 489 Accounts payable 14,511 7,811 — 22,322 Manufacturer flooring plans payable (16,466 ) — — (16,466 ) Accrued expenses payable and other liabilities 3,855 745 — 4,600 Deferred compensation payable (363 ) — — (363 ) Net cash provided by operating activities 60,249 7,328 — 67,577 Cash flows from investing activities: Purchases of property and equipment (9,903 ) (1,562 ) — (11,465 ) Purchases of rental equipment (44,643 ) (24,501 ) — (69,144 ) Proceeds from sales of property and equipment 1,417 266 — 1,683 Proceeds from sales of rental equipment 36,342 8,159 — 44,501 Investment in subsidiaries (10,414 ) — 10,414 — Net cash used in investing activities. (27,201 ) (17,638 ) 10,414 (34,425 ) Cash flows from financing activities: Borrowings on senior secured credit facility 482,513 — — 482,513 Payments on senior secured credit facility (492,866 ) — — (492,866 ) Dividends paid (19,501 ) (4 ) — (19,505 ) Payments on capital lease obligations — (100 ) — (100 ) Capital contributions — 10,414 (10,414 ) — Net cash provided by (used in) financing activities (29,854 ) 10,310 (10,414 ) (29,958 ) Net increase in cash 3,194 — — 3,194 Cash, beginning of period 7,159 — — 7,159 Cash, end of period $ 10,353 $ — $ — $ 10,353 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2015 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 17,566 $ 3,359 $ (3,359 ) $ 17,566 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 10,216 1,438 — 11,654 Depreciation of rental equipment 67,042 13,116 — 80,158 Amortization of deferred financing costs 511 — — 511 Accretion of note discount, net of premium amortization 84 — — 84 Provision for losses on accounts receivable 1,225 168 — 1,393 Provision for inventory obsolescence 99 — — 99 Change in deferred income taxes 11,862 — — 11,862 Stock-based compensation expense 1,505 — — 1,505 Gain from sales of property and equipment, net (1,075 ) (355 ) — (1,430 ) Gain from sales of rental equipment, net (13,060 ) (3,714 ) — (16,774 ) Equity in earnings of guarantor subsidiaries (3,359 ) — 3,359 - Changes in operating assets and liabilities: Receivables 6,007 9,127 — 15,134 Inventories (36,533 ) (11,394 ) — (47,927 ) Prepaid expenses and other assets (6,009 ) (90 ) — (6,099 ) Accounts payable 8,035 2,470 — 10,505 Manufacturer flooring plans payable (20,745 ) — — (20,745 ) Accrued expenses payable and other liabilities (2,193 ) 305 — (1,888 ) Deferred compensation payable 34 — — 34 Net cash provided by operating activities 41,212 14,430 — 55,642 Cash flows from investing activities: Purchases of property and equipment (11,000 ) (1,872 ) — (12,872 ) Purchases of rental equipment (49,051 ) (22,868 ) — (71,919 ) Proceeds from sales of property and equipment 1,563 424 — 1,987 Proceeds from sales of rental equipment 34,546 9,865 — 44,411 Investment in subsidiaries (117 ) — 117 — Net cash used in investing activities. (24,059 ) (14,451 ) 117 (38,393 ) Cash flows from financing activities: Borrowings on senior secured credit facility 506,455 — — 506,455 Payments on senior secured credit facility (509,256 ) — — (509,256 ) Dividends paid (17,627 ) (2 ) — (17,629 ) Payments of deferred financing costs (725 ) — — (725 ) Payments on capital lease obligations — (94 ) — (94 ) Capital contributions — 117 (117 ) - Net cash provided by (used in) financing activities (21,153 ) 21 (117 ) (21,249 ) Net decrease in cash (4,000 ) — — (4,000 ) Cash, beginning of period 15,861 — — 15,861 Cash, end of period $ 11,861 $ — $ — $ 11,861 |
Organization and Nature of Op16
Organization and Nature of Operations (Policies) | 6 Months Ended |
Jun. 30, 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 and six month periods ended June 30, 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) | 6 Months Ended |
Jun. 30, 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) | 6 Months Ended |
Jun. 30, 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 June 30, 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. June 30, 2016 Carrying Amount Fair Value Manufacturer flooring plans payable with interest computed at 5.00% (Level 3) $ 45,967 $ 40,281 Senior unsecured notes with interest computed at 7.0% (Level 1) 627,508 648,900 Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) 1,807 1,225 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) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Summary of Activity in Stockholders' Equity | The following table summarizes the activity in Stockholders’ Equity for the six month period ended June 30, 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 — — 1,667 — — 1,667 Cash dividends declared on common stock ($0.275 per share) — — — — (19,518 ) (19,518 ) Tax deficiency associated with stock-based awards — — (256 ) — — (256 ) Issuance of common stock 39,977 1 — — — 1 Net income — — — — 13,077 13,077 Balances at June 30, 2016 39,373,548 $ 393 $ 222,290 $ (60,405 ) $ (24,719 ) $ 137,559 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Non-Vested Stock Activity | The following table summarizes our non-vested stock activity, all of which was granted pursuant to the Prior Stock Plan, for the six months ended June 30, 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 (6,785 ) $ 18.63 Non-vested stock at June 30, 2016 315,570 $ 19.93 |
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 and six months ended June 30, 2016 and 2015 (amounts in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 Compensation expense $ 626 $ 484 $ 1,667 $ 1,505 |
Schedule of Share Based Compensation Stock Options Activity | The following table represents stock option activity for the six months ended June 30, 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 June 30, 2016 6,000 $ 19.27 1.1 Options exercisable at June 30, 2016 6,000 $ 19.27 1.1 |
Income per Share (Tables)
Income per Share (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2016 and 2015 (amounts in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Basic net income per share: Net income $ 7,503 $ 11,480 $ 13,077 $ 17,566 Weighted average number of common shares outstanding 35,354 35,238 35,347 35,232 Net income per share of common stock – basic $ 0.21 $ 0.33 $ 0.37 $ 0.50 Diluted net income per share: Net income $ 7,503 $ 11,480 $ 13,077 $ 17,566 Weighted average number of common shares outstanding 35,354 35,238 35,347 35,232 Effect of dilutive securities: Effect of dilutive stock options — 20 — 20 Effect of dilutive non-vested restricted stock 126 56 92 48 Weighted average number of common shares outstanding – diluted 35,480 35,314 35,439 35,300 Net income per share of common stock – diluted $ 0.21 $ 0.33 $ 0.37 $ 0.50 Common shares excluded from the denominator as anti-dilutive: Stock options 1 — 7 — Non-vested restricted stock — — 4 — |
Senior Unsecured Notes (Tables)
Senior Unsecured Notes (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2016 527 Amortization of note premium through June 30, 2016 (443 ) Amortization of deferred financing costs through June 30, 2016 118 Balance at June 30, 2016 $ 627,508 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Segment Revenues: Equipment rentals $ 108,650 $ 108,628 $ 211,488 $ 210,017 New equipment sales 49,893 64,376 107,072 108,913 Used equipment sales 23,769 28,932 51,343 54,002 Parts sales 26,654 28,347 54,623 55,432 Services revenues 16,945 15,769 33,246 30,725 Total segmented revenues 225,911 246,052 457,772 459,089 Non-segmented revenues 16,184 16,308 31,333 30,681 Total revenues $ 242,095 $ 262,360 $ 489,105 $ 489,770 Segment Gross Profit: Equipment rentals $ 50,954 $ 50,713 $ 97,532 $ 96,547 New equipment sales 5,362 7,627 12,067 12,845 Used equipment sales 6,894 9,319 15,956 17,503 Parts sales 7,441 7,740 15,147 15,306 Services revenues 10,955 10,611 21,955 20,290 Total segmented gross profit 81,606 86,010 162,657 162,491 Non-segmented gross profit (loss) 102 394 195 253 Total gross profit $ 81,708 $ 86,404 $ 162,852 $ 162,744 Balances at June 30, December 31, 2016 2015 Segment identified assets: Equipment sales $ 96,766 $ 77,365 Equipment rentals 888,792 893,393 Parts and services 18,044 19,453 Total segment identified assets 1,003,602 990,211 Non-segment identified assets 299,950 309,300 Total assets $ 1,303,552 $ 1,299,511 |
Condensed Consolidating Finan24
Condensed Consolidating Financial Information of Guarantor Subsidiaries (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET As of June 30, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Assets: Cash $ 10,353 $ — $ — $ 10,353 Receivables, net 111,539 26,671 — 138,210 Inventories, net 97,067 17,743 — 114,810 Prepaid expenses and other assets 9,362 203 — 9,565 Rental equipment, net 736,116 152,676 — 888,792 Property and equipment, net 96,820 11,435 — 108,255 Deferred financing costs, net 2,370 — — 2,370 Investment in guarantor subsidiaries 226,452 — (226,452 ) — Goodwill 1,671 29,526 — 31,197 Total assets $ 1,291,750 $ 238,254 $ (226,452 ) $ 1,303,552 Liabilities and Stockholders’ Equity: Amounts due on senior secured credit facility $ 174,504 $ — $ — $ 174,504 Accounts payable 78,469 10,629 — 89,098 Manufacturer flooring plans payable 45,967 — — 45,967 Accrued expenses payable and other liabilities 60,785 (600 ) — 60,185 Dividends payable 79 (34 ) — 45 Senior unsecured notes 627,508 — — 627,508 Capital leases payable — 1,807 — 1,807 Deferred income taxes 165,068 — — 165,068 Deferred compensation payable 1,811 — — 1,811 Total liabilities 1,154,191 11,802 — 1,165,993 Stockholders’ equity 137,559 226,452 (226,452 ) 137,559 Total liabilities and stockholders’ equity $ 1,291,750 $ 238,254 $ (226,452 ) $ 1,303,552 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 June 30, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 88,592 $ 20,058 $ — $ 108,650 New equipment sales 41,808 8,085 — 49,893 Used equipment sales 19,821 3,948 — 23,769 Parts sales 23,295 3,359 — 26,654 Services revenues 14,468 2,477 — 16,945 Other 13,121 3,063 — 16,184 Total revenues 201,105 40,990 — 242,095 Cost of revenues: Rental depreciation 32,831 6,844 — 39,675 Rental expense 14,960 3,061 — 18,021 New equipment sales 37,273 7,258 — 44,531 Used equipment sales 14,161 2,714 — 16,875 Parts sales 16,833 2,380 — 19,213 Services revenues 5,182 808 — 5,990 Other 13,106 2,976 — 16,082 Total cost of revenues 134,346 26,041 — 160,387 Gross profit: Equipment rentals 40,801 10,153 — 50,954 New equipment sales 4,535 827 — 5,362 Used equipment sales 5,660 1,234 — 6,894 Parts sales 6,462 979 — 7,441 Services revenues 9,286 1,669 — 10,955 Other 15 87 — 102 Gross profit 66,759 14,949 — 81,708 Selling, general and administrative expenses 46,989 10,060 — 57,049 Equity in earnings of guarantor subsidiaries 2,761 — (2,761 ) — Gain on sales of property and equipment, net 636 76 — 712 Income from operations 23,167 4,965 (2,761 ) 25,371 Other income (expense): Interest expense (11,084 ) (2,269 ) — (13,353 ) Other, net 624 65 — 689 Total other expense, net (10,460 ) (2,204 ) — (12,664 ) Income before income taxes 12,707 2,761 (2,761 ) 12,707 Income tax expense 5,204 — — 5,204 Net income $ 7,503 $ 2,761 $ (2,761 ) $ 7,503 CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended June 30, 2015 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 89,590 $ 19,038 $ — $ 108,628 New equipment sales 61,564 2,812 — 64,376 Used equipment sales 23,909 5,023 — 28,932 Parts sales 24,303 4,044 — 28,347 Services revenues 13,218 2,551 — 15,769 Other 13,149 3,159 — 16,308 Total revenues 225,733 36,627 — 262,360 Cost of revenues: Rental depreciation 33,542 6,672 — 40,214 Rental expense 14,736 2,965 — 17,701 New equipment sales 54,234 2,515 — 56,749 Used equipment sales 16,389 3,224 — 19,613 Parts sales 17,697 2,910 — 20,607 Services revenues 4,332 826 — 5,158 Other 12,848 3,066 — 15,914 Total cost of revenues 153,778 22,178 — 175,956 Gross profit: Equipment rentals 41,312 9,401 — 50,713 New equipment sales 7,330 297 — 7,627 Used equipment sales 7,520 1,799 — 9,319 Parts sales 6,606 1,134 — 7,740 Services revenues 8,886 1,725 — 10,611 Other 301 93 — 394 Gross profit 71,955 14,449 — 86,404 Selling, general and administrative expenses 45,350 9,064 — 54,414 Equity in earnings of guarantor subsidiaries 1,982 — (1,982 ) — Gain on sales of property and equipment, net 860 112 — 972 Income from operations 29,447 5,497 (1,982 ) 32,962 Other income (expense): Interest expense (10,199 ) (3,550 ) — (13,749 ) Other, net 193 35 — 228 Total other expense, net (10,006 ) (3,515 ) — (13,521 ) Income before income taxes 19,441 1,982 (1,982 ) 19,441 Income tax expense 7,961 — — 7,961 Net income $ 11,480 $ 1,982 $ (1,982 ) $ 11,480 CONDENSED CONSOLIDATING STATEMENT OF INCOME Six Months Ended June 30, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 174,617 $ 36,871 $ — $ 211,488 New equipment sales 87,340 19,732 — 107,072 Used equipment sales 42,737 8,606 — 51,343 Parts sales 47,516 7,107 — 54,623 Services revenues 28,447 4,799 — 33,246 Other 25,547 5,786 — 31,333 Total revenues 406,204 82,901 — 489,105 Cost of revenues: Rental depreciation 65,944 13,228 — 79,172 Rental expense 29,008 5,776 — 34,784 New equipment sales 77,388 17,617 — 95,005 Used equipment sales 29,803 5,584 — 35,387 Parts sales 34,439 5,037 — 39,476 Services revenues 9,784 1,507 — 11,291 Other 25,353 5,785 — 31,138 Total cost of revenues 271,719 54,534 — 326,253 Gross profit: Equipment rentals 79,665 17,867 — 97,532 New equipment sales 9,952 2,115 — 12,067 Used equipment sales 12,934 3,022 — 15,956 Parts sales 13,077 2,070 — 15,147 Services revenues 18,663 3,292 — 21,955 Other 194 1 — 195 Gross profit 134,485 28,367 — 162,852 Selling, general and administrative expenses 96,591 19,832 — 116,423 Equity in earnings of guarantor subsidiaries 4,496 — (4,496 ) — Gain on sales of property and equipment, net 1,166 208 — 1,374 Income from operations 43,556 8,743 (4,496 ) 47,803 Other income (expense): Interest expense (22,386 ) (4,374 ) — (26,760 ) Other, net 992 127 — 1,119 Total other expense, net (21,394 ) (4,247 ) — (25,641 ) Income before income taxes 22,162 4,496 (4,496 ) 22,162 Income tax expense 9,085 — — 9,085 Net income $ 13,077 $ 4,496 $ (4,496 ) $ 13,077 CONDENSED CONSOLIDATING STATEMENT OF INCOME Six Months Ended June 30, 2015 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 174,502 $ 35,515 $ — $ 210,017 New equipment sales 99,346 9,567 — 108,913 Used equipment sales 43,949 10,053 — 54,002 Parts sales 48,086 7,346 — 55,432 Services revenues 26,073 4,652 — 30,725 Other 24,902 5,779 — 30,681 Total revenues 416,858 72,912 — 489,770 Cost of revenues: Rental depreciation 67,042 13,116 — 80,158 Rental expense 27,596 5,716 — 33,312 New equipment sales 87,553 8,515 — 96,068 Used equipment sales 30,171 6,328 — 36,499 Parts sales 34,887 5,239 — 40,126 Services revenues 8,908 1,527 — 10,435 Other 24,555 5,873 — 30,428 Total cost of revenues 280,712 46,314 — 327,026 Gross profit (loss): Equipment rentals 79,864 16,683 — 96,547 New equipment sales 11,793 1,052 — 12,845 Used equipment sales 13,778 3,725 — 17,503 Parts sales 13,199 2,107 — 15,306 Services revenues 17,165 3,125 — 20,290 Other 347 (94 ) — 253 Gross profit 136,146 26,598 — 162,744 Selling, general and administrative expenses 91,157 16,723 — 107,880 Equity in earnings of guarantor subsidiaries 3,359 — (3,359 ) — Gain on sales of property and equipment, net 1,075 355 — 1,430 Income from operations 49,423 10,230 (3,359 ) 56,294 Other income (expense): Interest expense (20,238 ) (6,956 ) — (27,194 ) Other, net 497 85 — 582 Total other expense, net (19,741 ) (6,871 ) — (26,612 ) Income before income taxes 29,682 3,359 (3,359 ) 29,682 Income tax expense 12,116 — — 12,116 Net income $ 17,566 $ 3,359 $ (3,359 ) $ 17,566 |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 13,077 $ 4,496 $ (4,496 ) $ 13,077 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 11,952 1,512 — 13,464 Depreciation of rental equipment 65,944 13,228 — 79,172 Amortization of deferred financing costs 526 — — 526 Accretion of note discount, net of premium amortization 83 — — 83 Provision for losses on accounts receivable 1,979 29 — 2,008 Provision for inventory obsolescence 14 — — 14 Change in deferred income taxes 9,182 — — 9,182 Stock-based compensation expense 1,667 — — 1,667 Gain from sales of property and equipment, net (1,166 ) (208 ) — (1,374 ) Gain from sales of rental equipment, net (12,481 ) (2,986 ) — (15,467 ) Equity in earnings of guarantor subsidiaries (4,496 ) — 4,496 — Changes in operating assets and liabilities: Receivables 10,639 (3,529 ) — 7,110 Inventories (38,755 ) (13,712 ) — (52,467 ) Prepaid expenses and other assets 547 (58 ) — 489 Accounts payable 14,511 7,811 — 22,322 Manufacturer flooring plans payable (16,466 ) — — (16,466 ) Accrued expenses payable and other liabilities 3,855 745 — 4,600 Deferred compensation payable (363 ) — — (363 ) Net cash provided by operating activities 60,249 7,328 — 67,577 Cash flows from investing activities: Purchases of property and equipment (9,903 ) (1,562 ) — (11,465 ) Purchases of rental equipment (44,643 ) (24,501 ) — (69,144 ) Proceeds from sales of property and equipment 1,417 266 — 1,683 Proceeds from sales of rental equipment 36,342 8,159 — 44,501 Investment in subsidiaries (10,414 ) — 10,414 — Net cash used in investing activities. (27,201 ) (17,638 ) 10,414 (34,425 ) Cash flows from financing activities: Borrowings on senior secured credit facility 482,513 — — 482,513 Payments on senior secured credit facility (492,866 ) — — (492,866 ) Dividends paid (19,501 ) (4 ) — (19,505 ) Payments on capital lease obligations — (100 ) — (100 ) Capital contributions — 10,414 (10,414 ) — Net cash provided by (used in) financing activities (29,854 ) 10,310 (10,414 ) (29,958 ) Net increase in cash 3,194 — — 3,194 Cash, beginning of period 7,159 — — 7,159 Cash, end of period $ 10,353 $ — $ — $ 10,353 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2015 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 17,566 $ 3,359 $ (3,359 ) $ 17,566 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 10,216 1,438 — 11,654 Depreciation of rental equipment 67,042 13,116 — 80,158 Amortization of deferred financing costs 511 — — 511 Accretion of note discount, net of premium amortization 84 — — 84 Provision for losses on accounts receivable 1,225 168 — 1,393 Provision for inventory obsolescence 99 — — 99 Change in deferred income taxes 11,862 — — 11,862 Stock-based compensation expense 1,505 — — 1,505 Gain from sales of property and equipment, net (1,075 ) (355 ) — (1,430 ) Gain from sales of rental equipment, net (13,060 ) (3,714 ) — (16,774 ) Equity in earnings of guarantor subsidiaries (3,359 ) — 3,359 - Changes in operating assets and liabilities: Receivables 6,007 9,127 — 15,134 Inventories (36,533 ) (11,394 ) — (47,927 ) Prepaid expenses and other assets (6,009 ) (90 ) — (6,099 ) Accounts payable 8,035 2,470 — 10,505 Manufacturer flooring plans payable (20,745 ) — — (20,745 ) Accrued expenses payable and other liabilities (2,193 ) 305 — (1,888 ) Deferred compensation payable 34 — — 34 Net cash provided by operating activities 41,212 14,430 — 55,642 Cash flows from investing activities: Purchases of property and equipment (11,000 ) (1,872 ) — (12,872 ) Purchases of rental equipment (49,051 ) (22,868 ) — (71,919 ) Proceeds from sales of property and equipment 1,563 424 — 1,987 Proceeds from sales of rental equipment 34,546 9,865 — 44,411 Investment in subsidiaries (117 ) — 117 — Net cash used in investing activities. (24,059 ) (14,451 ) 117 (38,393 ) Cash flows from financing activities: Borrowings on senior secured credit facility 506,455 — — 506,455 Payments on senior secured credit facility (509,256 ) — — (509,256 ) Dividends paid (17,627 ) (2 ) — (17,629 ) Payments of deferred financing costs (725 ) — — (725 ) Payments on capital lease obligations — (94 ) — (94 ) Capital contributions — 117 (117 ) - Net cash provided by (used in) financing activities (21,153 ) 21 (117 ) (21,249 ) Net decrease in cash (4,000 ) — — (4,000 ) Cash, beginning of period 15,861 — — 15,861 Cash, end of period $ 11,861 $ — $ — $ 11,861 |
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 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Deferred Financing Costs | $ 2,370 | $ 2,777 | |
Total Assets | 1,303,552 | 1,299,511 | |
Senior Unsecured Notes | 627,508 | 627,306 | $ 628,714 |
Total Liabilities | 1,165,993 | 1,156,923 | |
Total Liabilities and Stockholders’ Equity | $ 1,303,552 | 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 | Jun. 30, 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) | $ 45,967 | $ 62,433 | |
Senior unsecured notes with interest computed at 7.0% (Level 1) | 627,508 | 627,306 | $ 628,714 |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 1,807 | 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) | 45,967 | 62,433 | |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 1,807 | 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) | 40,281 | 54,710 | |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 1,225 | 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) | 627,508 | 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) | $ 648,900 | $ 617,400 |
Fair Value of Financial Instr27
Fair Value of Financial Instruments - Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements (Parenthetical) (Detail) | Jun. 30, 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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | ||||
Transfer of financial assets | $ 0 | $ 0 | $ 0 | $ 0 |
Transfer of financial liabilities | $ 0 | $ 0 | $ 0 | $ 0 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Activity in Stockholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Capitalization, Equity [Line Items] | ||||
Beginning balance, value | $ 142,588 | |||
Beginning balance, shares | 39,333,571 | |||
Stock-based compensation | $ 1,667 | |||
Cash dividends declared on common stock ($0.275 per share) | (19,518) | |||
Tax deficiency associated with stock-based awards | (256) | |||
Issuance of common stock, value | 1 | |||
Net income | $ 7,503 | $ 11,480 | 13,077 | $ 17,566 |
Ending balance, value | $ 137,559 | $ 137,559 | ||
Ending balance, shares | 39,373,548 | 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 | $ 393 | ||
Ending balance, shares | 39,373,548 | 39,373,548 | ||
Additional Paid-in Capital [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Beginning balance, value | $ 220,879 | |||
Stock-based compensation | 1,667 | |||
Tax deficiency associated with stock-based awards | (256) | |||
Ending balance, value | $ 222,290 | 222,290 | ||
Treasury Stock [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Beginning balance, value | (60,405) | |||
Ending balance, value | (60,405) | (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) | (19,518) | |||
Net income | 13,077 | |||
Ending balance, value | $ (24,719) | $ (24,719) |
Stockholders' Equity - Summar30
Stockholders' Equity - Summary of Activity in Stockholders' Equity (Parenthetical) (Detail) | 6 Months Ended |
Jun. 30, 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) | 6 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
2006 Stock-Based Incentive Compensation Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock-Based incentive compensation plan, expiration period | 10 years |
Stock-Based incentive compensation plan, expiration date | 2016-06 |
Unrecognized compensation expense related to non-vested stock | $ 3,500,000 |
Expected non-vested stock recognized over a weighted-average period | 2 years 2 months 12 days |
Unrecognized compensation expense related to stock option awards | $ 0 |
Closing price of common stock | $ / shares | $ 19.03 |
2016 Stock-Based Incentive Compensation Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock-Based incentive compensation plan | shares | 2,100,000 |
Stock-Based incentive compensation plan, description | Over the last ten years, we have been granting awards under our 2006 Stock-Based Incentive Compensation Plan, as amended (the “Prior Stock Plan”). The Prior Stock Plan expired pursuant to its terms in June 2016, and the Company will no longer be able to grant equity awards under the Prior Stock Plan. At our annual meeting of stockholders in May 2106, our stockholders approved our 2016 Stock-Based Incentive Compensation Plan. Shares available for future stock-based payment awards under our 2016 Stock-Based Incentive Compensation Plan were 2,100,000 shares as of June 30, 2016. To the extent that awards granted under the Prior Stock Plan are forfeited or otherwise terminate for any reason whatsoever without an actual distribution or issuance of shares, the plan limit will be increased by such number of shares |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Non-Vested Stock Activity (Detail) - 2006 Stock-Based Incentive Compensation Plan [Member] | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
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 | (6,785) |
Nonvested stock, ending balance, Number of Shares | shares | 315,570 |
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 | 18.63 |
Nonvested stock, ending balance, Weighted Average Grant Date Fair Value | $ / shares | $ 19.93 |
Stock-Based Compensation - Sc33
Stock-Based Compensation - Schedule of Compensation Expense Related to Non-Vested Stock (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
2006 Stock-Based Incentive Compensation Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation expense | $ 626 | $ 484 | $ 1,667 | $ 1,505 |
Stock-Based Compensation - Sc34
Stock-Based Compensation - Schedule of Share Based Compensation Stock Options Activity (Detail) - 2006 Stock-Based Incentive Compensation Plan [Member] | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
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 1 month 6 days |
Stock Options, Exercisable, Weighted Average Contractual Life In Years | 1 year 1 month 6 days |
Income per Share - Additional I
Income per Share - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Restricted common shares, percentage | 0.70% | 0.40% | 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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Basic net income per share: | ||||
Net income | $ 7,503 | $ 11,480 | $ 13,077 | $ 17,566 |
Weighted average number of common shares outstanding | 35,354 | 35,238 | 35,347 | 35,232 |
Net income per share of common stock – basic | $ 0.21 | $ 0.33 | $ 0.37 | $ 0.50 |
Diluted net income per share: | ||||
Net income | $ 7,503 | $ 11,480 | $ 13,077 | $ 17,566 |
Weighted average number of common shares outstanding | 35,354 | 35,238 | 35,347 | 35,232 |
Effect of dilutive securities: | ||||
Weighted average number of common shares outstanding - diluted | 35,480 | 35,314 | 35,439 | 35,300 |
Net income per share of common stock – diluted | $ 0.21 | $ 0.33 | $ 0.37 | $ 0.50 |
Stock Options [Member] | ||||
Effect of dilutive securities: | ||||
Effect of dilutive stock options and non-vested restricted stock | 20 | 20 | ||
Common shares excluded from the denominator as anti-dilutive: | ||||
Common shares excluded from the denominator as anti-dilutive | 1 | 7 | ||
Non-vested restricted stock [Member] | ||||
Effect of dilutive securities: | ||||
Effect of dilutive stock options and non-vested restricted stock | 126 | 56 | 92 | 48 |
Common shares excluded from the denominator as anti-dilutive: | ||||
Common shares excluded from the denominator as anti-dilutive | 4 |
Senior Secured Credit Facility
Senior Secured Credit Facility - Additional Information (Detail) - USD ($) | 6 Months Ended | ||||
Jun. 30, 2016 | Jul. 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 | 2.80% | ||||
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 | $ 420,300,000 | ||||
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 | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Senior unsecured notes, beginning balance | $ 627,306 | $ 628,714 | $ 628,714 |
Accretion of discount | 527 | 1,055 | |
Amortization of note premium | (443) | (887) | |
Reclass of deferred financing costs to debt discount | (1,576) | ||
Amortization of deferred financing costs | 526 | $ 511 | |
Senior unsecured notes, ending balance | 627,508 | $ 627,306 | |
Senior Unsecured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Amortization of deferred financing costs | $ 118 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016Customer | Jun. 30, 2015Customer | Jun. 30, 2016SegmentCustomer | Jun. 30, 2015Customer | |
Segment Reporting [Abstract] | ||||
Number of reportable segment | Segment | 5 | |||
Sales to international customers | 0.30% | 0.60% | 0.50% | 0.70% |
Customer accounted for more than 10% of revenue | Customer | 0 | 0 | 0 | 0 |
Segment Information - Informati
Segment Information - Information about Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Segment Revenues: | |||||
Revenues | $ 242,095 | $ 262,360 | $ 489,105 | $ 489,770 | |
Segment Gross Profit: | |||||
Total gross profit | 81,708 | 86,404 | 162,852 | 162,744 | |
Segment identified assets: | |||||
Total assets | 1,303,552 | 1,303,552 | $ 1,299,511 | ||
Equipment Rentals [Member] | |||||
Segment Revenues: | |||||
Revenues | 108,650 | 108,628 | 211,488 | 210,017 | |
Segment Gross Profit: | |||||
Total gross profit | 50,954 | 50,713 | 97,532 | 96,547 | |
New Equipment Sales [Member] | |||||
Segment Revenues: | |||||
Revenues | 49,893 | 64,376 | 107,072 | 108,913 | |
Segment Gross Profit: | |||||
Total gross profit | 5,362 | 7,627 | 12,067 | 12,845 | |
Used Equipment Sales [Member] | |||||
Segment Revenues: | |||||
Revenues | 23,769 | 28,932 | 51,343 | 54,002 | |
Segment Gross Profit: | |||||
Total gross profit | 6,894 | 9,319 | 15,956 | 17,503 | |
Parts Sales [Member] | |||||
Segment Revenues: | |||||
Revenues | 26,654 | 28,347 | 54,623 | 55,432 | |
Segment Gross Profit: | |||||
Total gross profit | 7,441 | 7,740 | 15,147 | 15,306 | |
Services Revenues [Member] | |||||
Segment Revenues: | |||||
Revenues | 16,945 | 15,769 | 33,246 | 30,725 | |
Segment Gross Profit: | |||||
Total gross profit | 10,955 | 10,611 | 21,955 | 20,290 | |
Operating Segments [Member] | |||||
Segment Revenues: | |||||
Revenues | 225,911 | 246,052 | 457,772 | 459,089 | |
Segment Gross Profit: | |||||
Total gross profit | 81,606 | 86,010 | 162,657 | 162,491 | |
Segment identified assets: | |||||
Total assets | 1,003,602 | 1,003,602 | 990,211 | ||
Operating Segments [Member] | Equipment Rentals [Member] | |||||
Segment Revenues: | |||||
Revenues | 108,650 | 108,628 | 211,488 | 210,017 | |
Segment Gross Profit: | |||||
Total gross profit | 50,954 | 50,713 | 97,532 | 96,547 | |
Segment identified assets: | |||||
Total assets | 888,792 | 888,792 | 893,393 | ||
Operating Segments [Member] | New Equipment Sales [Member] | |||||
Segment Revenues: | |||||
Revenues | 49,893 | 64,376 | 107,072 | 108,913 | |
Segment Gross Profit: | |||||
Total gross profit | 5,362 | 7,627 | 12,067 | 12,845 | |
Operating Segments [Member] | Used Equipment Sales [Member] | |||||
Segment Revenues: | |||||
Revenues | 23,769 | 28,932 | 51,343 | 54,002 | |
Segment Gross Profit: | |||||
Total gross profit | 6,894 | 9,319 | 15,956 | 17,503 | |
Segment identified assets: | |||||
Total assets | 96,766 | 96,766 | 77,365 | ||
Operating Segments [Member] | Parts Sales [Member] | |||||
Segment Revenues: | |||||
Revenues | 26,654 | 28,347 | 54,623 | 55,432 | |
Segment Gross Profit: | |||||
Total gross profit | 7,441 | 7,740 | 15,147 | 15,306 | |
Operating Segments [Member] | Services Revenues [Member] | |||||
Segment Revenues: | |||||
Revenues | 16,945 | 15,769 | 33,246 | 30,725 | |
Segment Gross Profit: | |||||
Total gross profit | 10,955 | 10,611 | 21,955 | 20,290 | |
Operating Segments [Member] | Parts and Services [Member] | |||||
Segment identified assets: | |||||
Total assets | 18,044 | 18,044 | 19,453 | ||
Non-Segmented [Member] | |||||
Segment Revenues: | |||||
Revenues | 16,184 | 16,308 | 31,333 | 30,681 | |
Segment Gross Profit: | |||||
Total gross profit | 102 | $ 394 | 195 | $ 253 | |
Segment identified assets: | |||||
Total assets | $ 299,950 | $ 299,950 | $ 309,300 |
Condensed Consolidating Finan41
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Assets: | ||||
Cash | $ 10,353 | $ 7,159 | $ 11,861 | $ 15,861 |
Receivables, net | 138,210 | 147,328 | ||
Inventories, net | 114,810 | 96,818 | ||
Prepaid expenses and other assets | 9,565 | 10,054 | ||
Rental equipment, net | 888,792 | 893,393 | ||
Property and equipment, net | 108,255 | 110,785 | ||
Deferred Financing Costs | 2,370 | 2,777 | ||
Goodwill | 31,197 | 31,197 | ||
Total assets | 1,303,552 | 1,299,511 | ||
Liabilities and Stockholders’ Equity: | ||||
Amounts due on senior secured credit facility | 174,504 | 184,857 | ||
Accounts payable | 89,098 | 66,777 | ||
Manufacturer flooring plans payable | 45,967 | 62,433 | ||
Dividends payable | 45 | 32 | ||
Accrued expenses payable and other liabilities | 60,185 | 55,551 | ||
Senior Unsecured Notes | 627,508 | 627,306 | 628,714 | |
Capital leases payable | 1,807 | 1,907 | ||
Deferred income taxes | 165,068 | 155,886 | ||
Deferred compensation payable | 1,811 | 2,174 | ||
Total liabilities | 1,165,993 | 1,156,923 | ||
Stockholders’ equity | 137,559 | 142,588 | ||
Total liabilities and stockholders' equity | 1,303,552 | 1,299,511 | ||
H & E Equipment Services [Member] | ||||
Assets: | ||||
Cash | 10,353 | 7,159 | $ 11,861 | $ 15,861 |
Receivables, net | 111,539 | 124,157 | ||
Inventories, net | 97,067 | 88,831 | ||
Prepaid expenses and other assets | 9,362 | 9,909 | ||
Rental equipment, net | 736,116 | 750,773 | ||
Property and equipment, net | 96,820 | 99,342 | ||
Deferred Financing Costs | 2,370 | 2,777 | ||
Investment in guarantor subsidiaries | 226,452 | 211,542 | ||
Goodwill | 1,671 | 1,671 | ||
Total assets | 1,291,750 | 1,296,161 | ||
Liabilities and Stockholders’ Equity: | ||||
Amounts due on senior secured credit facility | 174,504 | 184,857 | ||
Accounts payable | 78,469 | 63,959 | ||
Manufacturer flooring plans payable | 45,967 | 62,433 | ||
Dividends payable | 79 | 62 | ||
Accrued expenses payable and other liabilities | 60,785 | 56,896 | ||
Senior Unsecured Notes | 627,508 | 627,306 | ||
Deferred income taxes | 165,068 | 155,886 | ||
Deferred compensation payable | 1,811 | 2,174 | ||
Total liabilities | 1,154,191 | 1,153,573 | ||
Stockholders’ equity | 137,559 | 142,588 | ||
Total liabilities and stockholders' equity | 1,291,750 | 1,296,161 | ||
Guarantor Subsidiaries [Member] | ||||
Assets: | ||||
Receivables, net | 26,671 | 23,171 | ||
Inventories, net | 17,743 | 7,987 | ||
Prepaid expenses and other assets | 203 | 145 | ||
Rental equipment, net | 152,676 | 142,620 | ||
Property and equipment, net | 11,435 | 11,443 | ||
Goodwill | 29,526 | 29,526 | ||
Total assets | 238,254 | 214,892 | ||
Liabilities and Stockholders’ Equity: | ||||
Accounts payable | 10,629 | 2,818 | ||
Dividends payable | (34) | (30) | ||
Accrued expenses payable and other liabilities | (600) | (1,345) | ||
Capital leases payable | 1,807 | 1,907 | ||
Total liabilities | 11,802 | 3,350 | ||
Stockholders’ equity | 226,452 | 211,542 | ||
Total liabilities and stockholders' equity | 238,254 | 214,892 | ||
Elimination [Member] | ||||
Assets: | ||||
Investment in guarantor subsidiaries | (226,452) | (211,542) | ||
Total assets | (226,452) | (211,542) | ||
Liabilities and Stockholders’ Equity: | ||||
Stockholders’ equity | (226,452) | (211,542) | ||
Total liabilities and stockholders' equity | $ (226,452) | $ (211,542) |
Condensed Consolidating Finan42
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||||
Revenues | $ 242,095 | $ 262,360 | $ 489,105 | $ 489,770 |
Services revenues | 16,945 | 15,769 | 33,246 | 30,725 |
Other | 16,184 | 16,308 | 31,333 | 30,681 |
Cost of revenues: | ||||
Cost of revenues | 160,387 | 175,956 | 326,253 | 327,026 |
Services revenues | 5,990 | 5,158 | 11,291 | 10,435 |
Other | 16,082 | 15,914 | 31,138 | 30,428 |
Gross profit (loss): | ||||
Gross profit | 81,708 | 86,404 | 162,852 | 162,744 |
Selling, general and administrative expenses | 57,049 | 54,414 | 116,423 | 107,880 |
Gain on sales of property and equipment, net | 712 | 972 | 1,374 | 1,430 |
Income from operations | 25,371 | 32,962 | 47,803 | 56,294 |
Other income (expense): | ||||
Interest expense | (13,353) | (13,749) | (26,760) | (27,194) |
Other, net | 689 | 228 | 1,119 | 582 |
Total other expense, net | (12,664) | (13,521) | (25,641) | (26,612) |
Income before provision for income taxes | 12,707 | 19,441 | 22,162 | 29,682 |
Income tax expense | 5,204 | 7,961 | 9,085 | 12,116 |
Net income | 7,503 | 11,480 | 13,077 | 17,566 |
Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 39,675 | 40,214 | 79,172 | 80,158 |
Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 18,021 | 17,701 | 34,784 | 33,312 |
Elimination [Member] | ||||
Gross profit (loss): | ||||
Equity in earnings of guarantor subsidiaries | (2,761) | (1,982) | (4,496) | (3,359) |
Income from operations | (2,761) | (1,982) | (4,496) | (3,359) |
Other income (expense): | ||||
Income before provision for income taxes | (2,761) | (1,982) | (4,496) | (3,359) |
Net income | (2,761) | (1,982) | (4,496) | (3,359) |
Other [Member] | ||||
Gross profit (loss): | ||||
Gross profit | 102 | 394 | 195 | 253 |
Equipment Rentals [Member] | ||||
Revenues: | ||||
Revenues | 108,650 | 108,628 | 211,488 | 210,017 |
Gross profit (loss): | ||||
Gross profit | 50,954 | 50,713 | 97,532 | 96,547 |
New Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 49,893 | 64,376 | 107,072 | 108,913 |
Cost of revenues: | ||||
Cost of revenues | 44,531 | 56,749 | 95,005 | 96,068 |
Gross profit (loss): | ||||
Gross profit | 5,362 | 7,627 | 12,067 | 12,845 |
Used Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 23,769 | 28,932 | 51,343 | 54,002 |
Cost of revenues: | ||||
Cost of revenues | 16,875 | 19,613 | 35,387 | 36,499 |
Gross profit (loss): | ||||
Gross profit | 6,894 | 9,319 | 15,956 | 17,503 |
Parts Sales [Member] | ||||
Revenues: | ||||
Revenues | 26,654 | 28,347 | 54,623 | 55,432 |
Cost of revenues: | ||||
Cost of revenues | 19,213 | 20,607 | 39,476 | 40,126 |
Gross profit (loss): | ||||
Gross profit | 7,441 | 7,740 | 15,147 | 15,306 |
Services Revenues [Member] | ||||
Revenues: | ||||
Revenues | 16,945 | 15,769 | 33,246 | 30,725 |
Cost of revenues: | ||||
Cost of revenues | 5,990 | 5,158 | 11,291 | 10,435 |
Gross profit (loss): | ||||
Gross profit | 10,955 | 10,611 | 21,955 | 20,290 |
H & E Equipment Services [Member] | ||||
Revenues: | ||||
Revenues | 201,105 | 225,733 | 406,204 | 416,858 |
Services revenues | 14,468 | 13,218 | 28,447 | 26,073 |
Other | 13,121 | 13,149 | 25,547 | 24,902 |
Cost of revenues: | ||||
Cost of revenues | 134,346 | 153,778 | 271,719 | 280,712 |
Services revenues | 5,182 | 4,332 | 9,784 | 8,908 |
Other | 13,106 | 12,848 | 25,353 | 24,555 |
Gross profit (loss): | ||||
Gross profit | 66,759 | 71,955 | 134,485 | 136,146 |
Selling, general and administrative expenses | 46,989 | 45,350 | 96,591 | 91,157 |
Equity in earnings of guarantor subsidiaries | 2,761 | 1,982 | 4,496 | 3,359 |
Gain on sales of property and equipment, net | 636 | 860 | 1,166 | 1,075 |
Income from operations | 23,167 | 29,447 | 43,556 | 49,423 |
Other income (expense): | ||||
Interest expense | (11,084) | (10,199) | (22,386) | (20,238) |
Other, net | 624 | 193 | 992 | 497 |
Total other expense, net | (10,460) | (10,006) | (21,394) | (19,741) |
Income before provision for income taxes | 12,707 | 19,441 | 22,162 | 29,682 |
Income tax expense | 5,204 | 7,961 | 9,085 | 12,116 |
Net income | 7,503 | 11,480 | 13,077 | 17,566 |
H & E Equipment Services [Member] | Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 32,831 | 33,542 | 65,944 | 67,042 |
H & E Equipment Services [Member] | Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 14,960 | 14,736 | 29,008 | 27,596 |
H & E Equipment Services [Member] | Other [Member] | ||||
Gross profit (loss): | ||||
Gross profit | 15 | 301 | 194 | 347 |
H & E Equipment Services [Member] | Equipment Rentals [Member] | ||||
Revenues: | ||||
Revenues | 88,592 | 89,590 | 174,617 | 174,502 |
Gross profit (loss): | ||||
Gross profit | 40,801 | 41,312 | 79,665 | 79,864 |
H & E Equipment Services [Member] | New Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 41,808 | 61,564 | 87,340 | 99,346 |
Cost of revenues: | ||||
Cost of revenues | 37,273 | 54,234 | 77,388 | 87,553 |
Gross profit (loss): | ||||
Gross profit | 4,535 | 7,330 | 9,952 | 11,793 |
H & E Equipment Services [Member] | Used Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 19,821 | 23,909 | 42,737 | 43,949 |
Cost of revenues: | ||||
Cost of revenues | 14,161 | 16,389 | 29,803 | 30,171 |
Gross profit (loss): | ||||
Gross profit | 5,660 | 7,520 | 12,934 | 13,778 |
H & E Equipment Services [Member] | Parts Sales [Member] | ||||
Revenues: | ||||
Revenues | 23,295 | 24,303 | 47,516 | 48,086 |
Cost of revenues: | ||||
Cost of revenues | 16,833 | 17,697 | 34,439 | 34,887 |
Gross profit (loss): | ||||
Gross profit | 6,462 | 6,606 | 13,077 | 13,199 |
H & E Equipment Services [Member] | Services Revenues [Member] | ||||
Gross profit (loss): | ||||
Gross profit | 9,286 | 8,886 | 18,663 | 17,165 |
Guarantor Subsidiaries [Member] | ||||
Revenues: | ||||
Revenues | 40,990 | 36,627 | 82,901 | 72,912 |
Services revenues | 2,477 | 2,551 | 4,799 | 4,652 |
Other | 3,063 | 3,159 | 5,786 | 5,779 |
Cost of revenues: | ||||
Cost of revenues | 26,041 | 22,178 | 54,534 | 46,314 |
Services revenues | 808 | 826 | 1,507 | 1,527 |
Other | 2,976 | 3,066 | 5,785 | 5,873 |
Gross profit (loss): | ||||
Gross profit | 14,949 | 14,449 | 28,367 | 26,598 |
Selling, general and administrative expenses | 10,060 | 9,064 | 19,832 | 16,723 |
Gain on sales of property and equipment, net | 76 | 112 | 208 | 355 |
Income from operations | 4,965 | 5,497 | 8,743 | 10,230 |
Other income (expense): | ||||
Interest expense | (2,269) | (3,550) | (4,374) | (6,956) |
Other, net | 65 | 35 | 127 | 85 |
Total other expense, net | (2,204) | (3,515) | (4,247) | (6,871) |
Income before provision for income taxes | 2,761 | 1,982 | 4,496 | 3,359 |
Net income | 2,761 | 1,982 | 4,496 | 3,359 |
Guarantor Subsidiaries [Member] | Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 6,844 | 6,672 | 13,228 | 13,116 |
Guarantor Subsidiaries [Member] | Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 3,061 | 2,965 | 5,776 | 5,716 |
Guarantor Subsidiaries [Member] | Other [Member] | ||||
Gross profit (loss): | ||||
Gross profit | 87 | 93 | 1 | (94) |
Guarantor Subsidiaries [Member] | Equipment Rentals [Member] | ||||
Revenues: | ||||
Revenues | 20,058 | 19,038 | 36,871 | 35,515 |
Gross profit (loss): | ||||
Gross profit | 10,153 | 9,401 | 17,867 | 16,683 |
Guarantor Subsidiaries [Member] | New Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 8,085 | 2,812 | 19,732 | 9,567 |
Cost of revenues: | ||||
Cost of revenues | 7,258 | 2,515 | 17,617 | 8,515 |
Gross profit (loss): | ||||
Gross profit | 827 | 297 | 2,115 | 1,052 |
Guarantor Subsidiaries [Member] | Used Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 3,948 | 5,023 | 8,606 | 10,053 |
Cost of revenues: | ||||
Cost of revenues | 2,714 | 3,224 | 5,584 | 6,328 |
Gross profit (loss): | ||||
Gross profit | 1,234 | 1,799 | 3,022 | 3,725 |
Guarantor Subsidiaries [Member] | Parts Sales [Member] | ||||
Revenues: | ||||
Revenues | 3,359 | 4,044 | 7,107 | 7,346 |
Cost of revenues: | ||||
Cost of revenues | 2,380 | 2,910 | 5,037 | 5,239 |
Gross profit (loss): | ||||
Gross profit | 979 | 1,134 | 2,070 | 2,107 |
Guarantor Subsidiaries [Member] | Services Revenues [Member] | ||||
Gross profit (loss): | ||||
Gross profit | $ 1,669 | $ 1,725 | $ 3,292 | $ 3,125 |
Condensed Consolidating Finan43
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||||
Net income | $ 7,503 | $ 11,480 | $ 13,077 | $ 17,566 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization of property and equipment | 13,464 | 11,654 | ||
Depreciation of rental equipment | 79,172 | 80,158 | ||
Amortization of deferred financing costs | 526 | 511 | ||
Accretion of note discount, net of premium amortization | 83 | 84 | ||
Provision for losses on accounts receivable | 2,008 | 1,393 | ||
Provision for inventory obsolescence | 14 | 99 | ||
Change in deferred income taxes | 9,182 | 11,862 | ||
Stock-based compensation expense | 1,667 | 1,505 | ||
Gain from sales of property and equipment, net | (712) | (972) | (1,374) | (1,430) |
Gain from sales of rental equipment, net | (15,467) | (16,774) | ||
Changes in operating assets and liabilities: | ||||
Receivables | 7,110 | 15,134 | ||
Inventories | (52,467) | (47,927) | ||
Prepaid expenses and other assets | 489 | (6,099) | ||
Accounts payable | 22,322 | 10,505 | ||
Manufacturer flooring plans payable | (16,466) | (20,745) | ||
Accrued expenses payable and other liabilities | 4,600 | (1,888) | ||
Deferred compensation payable | (363) | 34 | ||
Net cash provided by operating activities | 67,577 | 55,642 | ||
Cash flows from investing activities: | ||||
Purchases of property and equipment | (11,465) | (12,872) | ||
Purchases of rental equipment | (69,144) | (71,919) | ||
Proceeds from sales of property and equipment | 1,683 | 1,987 | ||
Proceeds from sales of rental equipment | 44,501 | 44,411 | ||
Net cash used in investing activities | (34,425) | (38,393) | ||
Cash flows from financing activities: | ||||
Borrowings on senior secured credit facility | 482,513 | 506,455 | ||
Payments on senior secured credit facility | (492,866) | (509,256) | ||
Dividends paid | (19,505) | (17,629) | ||
Payments of deferred financing costs | (725) | |||
Payments of capital lease obligations | (100) | (94) | ||
Net cash used in financing activities | (29,958) | (21,249) | ||
Net increase (decrease) in cash | 3,194 | (4,000) | ||
Cash, beginning of period | 7,159 | 15,861 | ||
Cash, end of period | 10,353 | 11,861 | 10,353 | 11,861 |
H & E Equipment Services [Member] | ||||
Cash flows from operating activities: | ||||
Net income | 7,503 | 11,480 | 13,077 | 17,566 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization of property and equipment | 11,952 | 10,216 | ||
Depreciation of rental equipment | 65,944 | 67,042 | ||
Amortization of deferred financing costs | 526 | 511 | ||
Accretion of note discount, net of premium amortization | 83 | 84 | ||
Provision for losses on accounts receivable | 1,979 | 1,225 | ||
Provision for inventory obsolescence | 14 | 99 | ||
Change in deferred income taxes | 9,182 | 11,862 | ||
Stock-based compensation expense | 1,667 | 1,505 | ||
Gain from sales of property and equipment, net | (636) | (860) | (1,166) | (1,075) |
Gain from sales of rental equipment, net | (12,481) | (13,060) | ||
Equity in earnings of guarantor subsidiaries | (2,761) | (1,982) | (4,496) | (3,359) |
Changes in operating assets and liabilities: | ||||
Receivables | 10,639 | 6,007 | ||
Inventories | (38,755) | (36,533) | ||
Prepaid expenses and other assets | 547 | (6,009) | ||
Accounts payable | 14,511 | 8,035 | ||
Manufacturer flooring plans payable | (16,466) | (20,745) | ||
Accrued expenses payable and other liabilities | 3,855 | (2,193) | ||
Deferred compensation payable | (363) | 34 | ||
Net cash provided by operating activities | 60,249 | 41,212 | ||
Cash flows from investing activities: | ||||
Purchases of property and equipment | (9,903) | (11,000) | ||
Purchases of rental equipment | (44,643) | (49,051) | ||
Proceeds from sales of property and equipment | 1,417 | 1,563 | ||
Proceeds from sales of rental equipment | 36,342 | 34,546 | ||
Investment in subsidiaries | (10,414) | (117) | ||
Net cash used in investing activities | (27,201) | (24,059) | ||
Cash flows from financing activities: | ||||
Borrowings on senior secured credit facility | 482,513 | 506,455 | ||
Payments on senior secured credit facility | (492,866) | (509,256) | ||
Dividends paid | (19,501) | (17,627) | ||
Payments of deferred financing costs | (725) | |||
Net cash used in financing activities | (29,854) | (21,153) | ||
Net increase (decrease) in cash | 3,194 | (4,000) | ||
Cash, beginning of period | 7,159 | 15,861 | ||
Cash, end of period | 10,353 | 11,861 | 10,353 | 11,861 |
Guarantor Subsidiaries [Member] | ||||
Cash flows from operating activities: | ||||
Net income | 2,761 | 1,982 | 4,496 | 3,359 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization of property and equipment | 1,512 | 1,438 | ||
Depreciation of rental equipment | 13,228 | 13,116 | ||
Provision for losses on accounts receivable | 29 | 168 | ||
Gain from sales of property and equipment, net | (76) | (112) | (208) | (355) |
Gain from sales of rental equipment, net | (2,986) | (3,714) | ||
Changes in operating assets and liabilities: | ||||
Receivables | (3,529) | 9,127 | ||
Inventories | (13,712) | (11,394) | ||
Prepaid expenses and other assets | (58) | (90) | ||
Accounts payable | 7,811 | 2,470 | ||
Accrued expenses payable and other liabilities | 745 | 305 | ||
Net cash provided by operating activities | 7,328 | 14,430 | ||
Cash flows from investing activities: | ||||
Purchases of property and equipment | (1,562) | (1,872) | ||
Purchases of rental equipment | (24,501) | (22,868) | ||
Proceeds from sales of property and equipment | 266 | 424 | ||
Proceeds from sales of rental equipment | 8,159 | 9,865 | ||
Net cash used in investing activities | (17,638) | (14,451) | ||
Cash flows from financing activities: | ||||
Dividends paid | (4) | (2) | ||
Payments of capital lease obligations | (100) | (94) | ||
Capital contributions | 10,414 | 117 | ||
Net cash used in financing activities | 10,310 | 21 | ||
Elimination [Member] | ||||
Cash flows from operating activities: | ||||
Net income | (2,761) | (1,982) | (4,496) | (3,359) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in earnings of guarantor subsidiaries | $ 2,761 | $ 1,982 | 4,496 | 3,359 |
Cash flows from investing activities: | ||||
Investment in subsidiaries | 10,414 | 117 | ||
Net cash used in investing activities | 10,414 | 117 | ||
Cash flows from financing activities: | ||||
Capital contributions | (10,414) | (117) | ||
Net cash used in financing activities | $ (10,414) | $ (117) |