Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 21, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
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 | 35,557,785 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash | $ 7,034 | $ 7,159 |
Receivables, net of allowance for doubtful accounts of $4,027 and $4,729, respectively | 138,833 | 147,328 |
Inventories, net of reserves for obsolescence of $902 and $934, respectively | 73,998 | 96,818 |
Prepaid expenses and other assets | 8,894 | 10,054 |
Rental equipment, net of accumulated depreciation of $424,551 and $390,317, respectively | 922,486 | 893,393 |
Property and equipment, net of accumulated depreciation and amortization of $116,658 and $107,170, respectively | 107,216 | 110,785 |
Deferred financing costs, net of accumulated amortization of $11,957 and $11,347, respectively | 2,167 | 2,777 |
Goodwill | 31,197 | 31,197 |
Total assets | 1,291,825 | 1,299,511 |
Liabilities: | ||
Amounts due on senior secured credit facility | 209,762 | 184,857 |
Accounts payable | 48,227 | 66,777 |
Manufacturer flooring plans payable | 38,226 | 62,433 |
Accrued expenses payable and other liabilities | 51,502 | 55,551 |
Dividends payable | 56 | 32 |
Senior unsecured notes, net of unaccreted discount of $2,391 and $2,694, respectively | 627,609 | 627,306 |
Capital leases payable | 1,756 | 1,907 |
Deferred income taxes | 173,449 | 155,886 |
Deferred compensation payable | 1,826 | 2,174 |
Total liabilities | 1,152,413 | 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; 39,500,053 and 39,333,571 shares issued at September 30, 2016 and December 31, 2015, respectively, and 35,558,750 and 35,428,868 shares outstanding at September 30, 2016 and December 31, 2015, respectively | 394 | 392 |
Additional paid-in capital | 222,817 | 220,879 |
Treasury stock at cost, 3,941,303 and 3,904,703 shares of common stock held at September 30, 2016 and December 31, 2015, respectively | (60,951) | (60,405) |
Retained deficit | (22,848) | (18,278) |
Total stockholders' equity | 139,412 | 142,588 |
Total liabilities and stockholders' equity | $ 1,291,825 | $ 1,299,511 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivables | $ 4,027 | $ 4,729 |
Reserves for obsolescence inventories | 902 | 934 |
Accumulated depreciation, rental equipment | 424,551 | 390,317 |
Accumulated depreciation and amortization, property and equipment | 116,658 | 107,170 |
Accumulated amortization, deferred financing costs | 11,957 | 11,347 |
Unaccreted discount, net | $ 2,391 | $ 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 | 39,500,053 | 39,333,571 |
Common stock, shares outstanding | 35,558,750 | 35,428,868 |
Treasury stock, shares | 3,941,303 | 3,904,703 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Revenues | $ 244,686 | $ 276,853 | $ 733,791 | $ 766,623 |
Cost of revenues: | ||||
Cost of revenues | 156,561 | 184,016 | 482,814 | 511,042 |
Gross profit | 88,125 | 92,837 | 250,977 | 255,581 |
Selling, general and administrative expenses | 55,962 | 54,704 | 172,385 | 162,584 |
Gain on sales of property and equipment, net | 927 | 339 | 2,301 | 1,769 |
Income from operations | 33,090 | 38,472 | 80,893 | 94,766 |
Other income (expense): | ||||
Interest expense | (13,469) | (13,481) | (40,229) | (40,675) |
Other, net | 386 | 501 | 1,505 | 1,083 |
Total other expense, net | (13,083) | (12,980) | (38,724) | (39,592) |
Income before provision for income taxes | 20,007 | 25,492 | 42,169 | 55,174 |
Provision for income taxes | 8,342 | 10,720 | 17,427 | 22,836 |
Net income | $ 11,665 | $ 14,772 | $ 24,742 | $ 32,338 |
Net income per common share: | ||||
Basic | $ 0.33 | $ 0.42 | $ 0.70 | $ 0.92 |
Diluted | $ 0.33 | $ 0.42 | $ 0.70 | $ 0.92 |
Weighted average common shares outstanding: | ||||
Basic | 35,424 | 35,308 | 35,373 | 35,258 |
Diluted | 35,504 | 35,350 | 35,461 | 35,317 |
Dividends declared per common share outstanding | $ 0.275 | $ 0.275 | $ 0.825 | $ 0.775 |
Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | $ 41,528 | $ 40,963 | $ 120,700 | $ 121,121 |
Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 18,378 | 19,210 | 53,162 | 52,522 |
Other [Member] | ||||
Revenues: | ||||
Revenues | 17,346 | 17,440 | 48,679 | 48,121 |
Cost of revenues: | ||||
Cost of revenues | 16,991 | 16,901 | 48,129 | 47,329 |
Gross profit | 355 | 539 | 550 | 792 |
Equipment Rentals [Member] | ||||
Revenues: | ||||
Revenues | 118,535 | 118,055 | 330,023 | 328,072 |
Cost of revenues: | ||||
Gross profit | 58,629 | 57,882 | 156,161 | 154,429 |
New Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 44,764 | 66,552 | 151,836 | 175,465 |
Cost of revenues: | ||||
Cost of revenues | 40,147 | 60,000 | 135,152 | 156,068 |
Gross profit | 4,617 | 6,552 | 16,684 | 19,397 |
Used Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 20,630 | 29,111 | 71,973 | 83,113 |
Cost of revenues: | ||||
Cost of revenues | 14,364 | 20,262 | 49,751 | 56,761 |
Gross profit | 6,266 | 8,849 | 22,222 | 26,352 |
Parts Sales [Member] | ||||
Revenues: | ||||
Revenues | 27,335 | 28,968 | 81,958 | 84,400 |
Cost of revenues: | ||||
Cost of revenues | 19,708 | 21,098 | 59,184 | 61,224 |
Gross profit | 7,627 | 7,870 | 22,774 | 23,176 |
Services Revenues [Member] | ||||
Revenues: | ||||
Revenues | 16,076 | 16,727 | 49,322 | 47,452 |
Cost of revenues: | ||||
Cost of revenues | 5,445 | 5,582 | 16,736 | 16,017 |
Gross profit | $ 10,631 | $ 11,145 | $ 32,586 | $ 31,435 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 24,742 | $ 32,338 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 20,321 | 17,895 |
Depreciation of rental equipment | 120,700 | 121,121 |
Amortization of deferred financing costs | 789 | 774 |
Accretion of note discount, net of premium amortization | 124 | 126 |
Provision for losses on accounts receivable | 2,723 | 2,446 |
Provision for inventory obsolescence | 82 | 201 |
Change in deferred income taxes | 17,193 | 22,514 |
Stock-based compensation expense | 2,308 | 2,036 |
Gain from sales of property and equipment, net | (2,301) | (1,769) |
Gain from sales of rental equipment, net | (21,450) | (24,962) |
Changes in operating assets and liabilities: | ||
Receivables | 5,772 | 15,282 |
Inventories | (15,220) | (18,673) |
Prepaid expenses and other assets | 1,160 | (3,702) |
Accounts payable | (18,549) | 599 |
Manufacturer flooring plans payable | (24,207) | (33,696) |
Accrued expenses payable and other liabilities | (4,436) | (11,484) |
Deferred compensation payable | (348) | 51 |
Net cash provided by operating activities | 109,403 | 121,097 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (16,753) | (22,317) |
Purchases of rental equipment | (152,644) | (137,184) |
Proceeds from sales of property and equipment | 2,689 | 2,582 |
Proceeds from sales of rental equipment | 62,259 | 68,187 |
Net cash used in investing activities | (104,449) | (88,732) |
Cash flows from financing activities: | ||
Purchases of treasury stock | (546) | (470) |
Borrowings on senior secured credit facility | 767,550 | 768,572 |
Payments on senior secured credit facility | (742,645) | (778,903) |
Payments of deferred financing costs | (725) | |
Dividends paid | (29,287) | (27,370) |
Payments of capital lease obligations | (151) | (143) |
Net cash used in financing activities | (5,079) | (39,039) |
Net decrease in cash | (125) | (6,674) |
Cash, beginning of period | 7,159 | 15,861 |
Cash, end of period | 7,034 | 9,187 |
Noncash asset purchases: | ||
Assets transferred from new and used inventory to rental fleet | 37,958 | 49,482 |
Purchases of property and equipment included in accrued expenses payable and other liabilities | (387) | |
Cash paid during the period for: | ||
Interest | 50,180 | 50,787 |
Income taxes paid, net of refunds received | $ 271 | $ 368 |
Organization and Nature of Oper
Organization and Nature of Operations | 9 Months Ended |
Sep. 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 nine month periods ended September 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 | 9 Months Ended |
Sep. 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 nine month period ended September 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 In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments 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 | 9 Months Ended |
Sep. 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 September 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. September 30, 2016 Carrying Amount Fair Value Manufacturer flooring plans payable with interest computed at 4.50% (Level 3) $ 38,226 $ 33,497 Senior unsecured notes with interest computed at 7.0% (Level 1) 627,609 648,900 Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) 1,756 1,172 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 nine month periods ended September 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 | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | (4) Stockholders’ Equity The following table summarizes the activity in Stockholders’ Equity for the nine month period ended September 30, 2016 (amounts in thousands, except share data): Common Stock Additional Total Shares Issued Amount Paid-in Capital Treasury Stock Retained Deficit Stockholders’ Equity Balances at December 31, 2015 39,333,571 $ 392 $ 220,879 $ (60,405 ) $ (18,278 ) $ 142,588 Stock-based compensation — — 2,308 — — 2,308 Tax deficiency associated with stock-based awards — — (370 ) — — (370 ) Cash dividends declared on common stock ($0.825 per share) — — — — (29,312 ) (29,312 ) Issuance of common stock 166,482 2 — — — 2 Repurchases of 29,815 shares of restricted common stock — — (546 ) — (546 ) Net income — — — — 24,742 24,742 Balances at September 30, 2016 39,500,053 $ 394 $ 222,817 $ (60,951 ) $ (22,848 ) $ 139,412 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 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 prior to June 2016, we had 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 is no longer be able to grant equity awards under the Prior Stock Plan. At our annual meeting of stockholders in May 2016, our stockholders approved our 2016 Stock-Based Incentive Compensation Plan (the “2016 Plan”). Shares available for future stock-based payment awards under our 2016 Plan were 1,973,495 shares as of September 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 for the nine months ended September 30, 2016. All awards granted prior to May 16, 2016 were made pursuant to the Prior Stock Plan, and all grants subsequent to May 16, 2016 have been made pursuant to the 2016 Plan. Number of Shares Weighted Average Grant Date Fair Non-vested stock at December 31, 2015 322,355 $ 19.90 Granted 227,532 $ 17.39 Vested (133,783 ) $ 18.85 Forfeited (9,027 ) $ 18.99 Non-vested stock at September 30, 2016 407,077 $ 18.87 As of September 30, 2016, we had unrecognized compensation expense of approximately $5.6 million related to non-vested stock that we expect to be recognized over a weighted-average period of approximately 2.4 years. The following table summarizes compensation expense related to non-vested stock, which is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income for the three and nine months ended September 30, 2016 and 2015 (amounts in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Compensation expense $ 641 $ 531 $ 2,308 $ 2,036 Stock Options At September 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 nine months ended September 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 September 30, 2016 6,000 $ 19.27 0.8 Options exercisable at September 30, 2016 6,000 $ 19.27 0.8 The closing price of our common stock at September 30, 2016 was $16.76. Options outstanding at September 30, 2016, all of which were granted pursuant to the Prior Stock Plan, have grant date fair values that exceed the September 30, 2016 closing stock price. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | (6) Earnings per Share Earnings per common share for the three and nine months ended September 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 0.9% and 0.8% of total outstanding shares for each of the three and nine months ended September 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 nine months ended September 30, 2016 and 2015 (amounts in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Basic net income per share: Net income $ 11,665 $ 14,772 $ 24,742 $ 32,338 Weighted average number of common shares outstanding 35,424 35,308 35,373 35,258 Net income per share of common stock – basic $ 0.33 $ 0.42 $ 0.70 $ 0.92 Diluted net income per share: Net income $ 11,665 $ 14,772 $ 24,742 $ 32,338 Weighted average number of common shares outstanding 35,424 35,308 35,373 35,258 Effect of dilutive securities: Effect of dilutive stock options — — — 13 Effect of dilutive non-vested restricted stock 80 42 88 46 Weighted average number of common shares outstanding – diluted 35,504 35,350 35,461 35,317 Net income per share of common stock – diluted $ 0.33 $ 0.42 $ 0.70 $ 0.92 Common shares excluded from the denominator as anti-dilutive: Stock options — 51 5 17 Non-vested restricted stock 1 17 2 7 |
Senior Secured Credit Facility
Senior Secured Credit Facility | 9 Months Ended |
Sep. 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 September 30, 2016, we were in compliance with our financial covenants under the Credit Facility. At September 30, 2016, the Company could borrow up to an additional $385.0 million and remain in compliance with the debt covenants under the Company’s Credit Facility. At September 30, 2016, the interest rate on the Credit Facility was based on a 3.25% U.S. Prime Rate plus 100 basis points or LIBOR plus 200 basis points. The weighted average interest rate at September 30, 2016 was approximately 2.7%. At October 21, 2016, we had $391.6 million of available borrowings under our Credit Facility, net of $7.7 million of outstanding letters of credit. |
Senior Unsecured Notes
Senior Unsecured Notes | 9 Months Ended |
Sep. 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 September 30, 2016 791 Amortization of note premium through September 30, 2016 (666 ) Amortization of deferred financing costs through September 30, 2016 178 Balance at September 30, 2016 $ 627,609 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Segment Revenues: Equipment rentals $ 118,535 $ 118,055 $ 330,023 $ 328,072 New equipment sales 44,764 66,552 151,836 175,465 Used equipment sales 20,630 29,111 71,973 83,113 Parts sales 27,335 28,968 81,958 84,400 Services revenues 16,076 16,727 49,322 47,452 Total segmented revenues 227,340 259,413 685,112 718,502 Non-segmented revenues 17,346 17,440 48,679 48,121 Total revenues $ 244,686 $ 276,853 $ 733,791 $ 766,623 Segment Gross Profit: Equipment rentals $ 58,629 $ 57,882 $ 156,161 $ 154,429 New equipment sales 4,617 6,552 16,684 19,397 Used equipment sales 6,266 8,849 22,222 26,352 Parts sales 7,627 7,870 22,774 23,176 Services revenues 10,631 11,145 32,586 31,435 Total segmented gross profit 87,770 92,298 250,427 254,789 Non-segmented gross profit 355 539 550 792 Total gross profit $ 88,125 $ 92,837 $ 250,977 $ 255,581 Balances at September 30, December 31, 2016 2015 Segment identified assets: Equipment sales $ 55,853 $ 77,365 Equipment rentals 922,486 893,393 Parts and services 18,145 19,453 Total segment identified assets 996,484 990,211 Non-segment identified assets 295,341 309,300 Total assets $ 1,291,825 $ 1,299,511 The Company operates primarily in the United States and our sales to international customers for the three month period ended September 30, 2016 and 2015 were 0.3% and 0.5%, respectively, of total revenues. Our sales to international customers for the nine month periods ended September 30, 2016 and 2015 were 0.4% and 0.6%, 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 | 9 Months Ended |
Sep. 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 September 30, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Assets: Cash $ 7,034 $ — $ — $ 7,034 Receivables, net 112,891 25,942 — 138,833 Inventories, net 66,822 7,176 — 73,998 Prepaid expenses and other assets 8,721 173 — 8,894 Rental equipment, net 763,627 158,859 — 922,486 Property and equipment, net 95,580 11,636 — 107,216 Deferred financing costs, net 2,167 — — 2,167 Investment in guarantor subsidiaries 228,976 — (228,976 ) — Goodwill 1,671 29,526 — 31,197 Total assets $ 1,287,489 $ 233,312 $ (228,976 ) $ 1,291,825 Liabilities and Stockholders’ Equity: Amounts due on senior secured credit facility $ 209,762 $ — $ — $ 209,762 Accounts payable 45,274 2,953 — 48,227 Manufacturer flooring plans payable 38,056 170 — 38,226 Accrued expenses payable and other liabilities 52,008 (506 ) — 51,502 Dividends payable 93 (37 ) — 56 Senior unsecured notes 627,609 — — 627,609 Capital leases payable — 1,756 — 1,756 Deferred income taxes 173,449 — — 173,449 Deferred compensation payable 1,826 — — 1,826 Total liabilities 1,148,077 4,336 — 1,152,413 Stockholders’ equity 139,412 228,976 (228,976 ) 139,412 Total liabilities and stockholders’ equity $ 1,287,489 $ 233,312 $ (228,976 ) $ 1,291,825 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 September 30, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 96,310 $ 22,225 $ — $ 118,535 New equipment sales 37,110 7,654 — 44,764 Used equipment sales 16,778 3,852 — 20,630 Parts sales 23,807 3,528 — 27,335 Services revenues 13,693 2,383 — 16,076 Other 14,072 3,274 — 17,346 Total revenues 201,770 42,916 — 244,686 Cost of revenues: Rental depreciation 34,168 7,360 — 41,528 Rental expense 15,127 3,251 — 18,378 New equipment sales 33,206 6,941 — 40,147 Used equipment sales 11,762 2,602 — 14,364 Parts sales 17,221 2,487 — 19,708 Services revenues 4,686 759 — 5,445 Other 13,716 3,275 — 16,991 Total cost of revenues 129,886 26,675 — 156,561 Gross profit (loss): Equipment rentals 47,015 11,614 — 58,629 New equipment sales 3,904 713 — 4,617 Used equipment sales 5,016 1,250 — 6,266 Parts sales 6,586 1,041 — 7,627 Services revenues 9,007 1,624 — 10,631 Other 356 (1 ) — 355 Gross profit 71,884 16,241 — 88,125 Selling, general and administrative expenses 45,810 10,152 — 55,962 Equity in earnings of guarantor subsidiaries 3,892 — (3,892 ) — Gain on sales of property and equipment, net 782 145 — 927 Income from operations 30,748 6,234 (3,892 ) 33,090 Other income (expense): Interest expense (11,074 ) (2,395 ) — (13,469 ) Other, net 333 53 — 386 Total other expense, net (10,741 ) (2,342 ) — (13,083 ) Income before income taxes 20,007 3,892 (3,892 ) 20,007 Income tax expense 8,342 — — 8,342 Net income $ 11,665 $ 3,892 $ (3,892 ) $ 11,665 CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended September 30, 2015 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 96,768 $ 21,287 $ — $ 118,055 New equipment sales 57,311 9,241 — 66,552 Used equipment sales 22,124 6,987 — 29,111 Parts sales 25,429 3,539 — 28,968 Services revenues 14,206 2,521 — 16,727 Other 14,110 3,330 — 17,440 Total revenues 229,948 46,905 — 276,853 Cost of revenues: Rental depreciation 34,194 6,769 — 40,963 Rental expense 15,705 3,505 — 19,210 New equipment sales 51,569 8,431 — 60,000 Used equipment sales 15,501 4,761 — 20,262 Parts sales 18,547 2,551 — 21,098 Services revenues 4,811 771 — 5,582 Other 13,657 3,244 — 16,901 Total cost of revenues 153,984 30,032 — 184,016 Gross profit: Equipment rentals 46,869 11,013 — 57,882 New equipment sales 5,742 810 — 6,552 Used equipment sales 6,623 2,226 — 8,849 Parts sales 6,882 988 — 7,870 Services revenues 9,395 1,750 — 11,145 Other 453 86 — 539 Gross profit 75,964 16,873 — 92,837 Selling, general and administrative expenses 44,810 9,894 — 54,704 Equity in earnings of guarantor subsidiaries 3,663 — (3,663 ) — Gain on sales of property and equipment, net 232 107 — 339 Income from operations 35,049 7,086 (3,663 ) 38,472 Other income (expense): Interest expense (10,023 ) (3,458 ) — (13,481 ) Other, net 466 35 — 501 Total other expense, net (9,557 ) (3,423 ) — (12,980 ) Income before income taxes 25,492 3,663 (3,663 ) 25,492 Income tax expense 10,720 — — 10,720 Net income $ 14,772 $ 3,663 $ (3,663 ) $ 14,772 CONDENSED CONSOLIDATING STATEMENT OF INCOME Nine Months Ended September 30, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 270,927 $ 59,096 $ — $ 330,023 New equipment sales 124,450 27,386 — 151,836 Used equipment sales 59,515 12,458 — 71,973 Parts sales 71,323 10,635 — 81,958 Services revenues 42,140 7,182 — 49,322 Other 39,619 9,060 — 48,679 Total revenues 607,974 125,817 — 733,791 Cost of revenues: Rental depreciation 100,111 20,589 — 120,700 Rental expense 44,135 9,027 — 53,162 New equipment sales 110,594 24,558 — 135,152 Used equipment sales 41,565 8,186 — 49,751 Parts sales 51,660 7,524 — 59,184 Services revenues 14,470 2,266 — 16,736 Other 39,069 9,060 — 48,129 Total cost of revenues 401,604 81,210 — 482,814 Gross profit: Equipment rentals 126,681 29,480 — 156,161 New equipment sales 13,856 2,828 — 16,684 Used equipment sales 17,950 4,272 — 22,222 Parts sales 19,663 3,111 — 22,774 Services revenues 27,670 4,916 — 32,586 Other 550 — — 550 Gross profit 206,370 44,607 — 250,977 Selling, general and administrative expenses 142,402 29,983 — 172,385 Equity in earnings of guarantor subsidiaries 8,388 — (8,388 ) — Gain on sales of property and equipment, net 1,948 353 — 2,301 Income from operations 74,304 14,977 (8,388 ) 80,893 Other income (expense): Interest expense (33,460 ) (6,769 ) — (40,229 ) Other, net 1,325 180 — 1,505 Total other expense, net (32,135 ) (6,589 ) — (38,724 ) Income before income taxes 42,169 8,388 (8,388 ) 42,169 Income tax expense 17,427 — — 17,427 Net income $ 24,742 $ 8,388 $ (8,388 ) $ 24,742 CONDENSED CONSOLIDATING STATEMENT OF INCOME Nine Months Ended September 30, 2015 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 271,270 $ 56,802 $ — $ 328,072 New equipment sales 156,657 18,808 — 175,465 Used equipment sales 66,072 17,041 — 83,113 Parts sales 73,516 10,884 — 84,400 Services revenues 40,279 7,173 — 47,452 Other 39,012 9,109 — 48,121 Total revenues 646,806 119,817 — 766,623 Cost of revenues: Rental depreciation 101,237 19,884 — 121,121 Rental expense 43,301 9,221 — 52,522 New equipment sales 139,121 16,947 — 156,068 Used equipment sales 45,672 11,089 — 56,761 Parts sales 53,435 7,789 — 61,224 Services revenues 13,719 2,298 — 16,017 Other 38,211 9,118 — 47,329 Total cost of revenues 434,696 76,346 — 511,042 Gross profit (loss): Equipment rentals 126,732 27,697 — 154,429 New equipment sales 17,536 1,861 — 19,397 Used equipment sales 20,400 5,952 — 26,352 Parts sales 20,081 3,095 — 23,176 Services revenues 26,560 4,875 — 31,435 Other 801 (9 ) — 792 Gross profit 212,110 43,471 — 255,581 Selling, general and administrative expenses 135,966 26,618 — 162,584 Equity in earnings of guarantor subsidiaries 7,023 — (7,023 ) — Gain on sales of property and equipment, net 1,306 463 — 1,769 Income from operations 84,473 17,316 (7,023 ) 94,766 Other income (expense): Interest expense (30,261 ) (10,414 ) — (40,675 ) Other, net 962 121 — 1,083 Total other expense, net (29,299 ) (10,293 ) — (39,592 ) Income before income taxes 55,174 7,023 (7,023 ) 55,174 Income tax expense 22,836 — — 22,836 Net income $ 32,338 $ 7,023 $ (7,023 ) $ 32,338 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 24,742 $ 8,388 $ (8,388 ) $ 24,742 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 18,022 2,299 — 20,321 Depreciation of rental equipment 100,111 20,589 — 120,700 Amortization of deferred financing costs 789 — — 789 Accretion of note discount, net of premium amortization 124 — — 124 Provision for losses on accounts receivable 2,507 216 — 2,723 Provision for inventory obsolescence 82 — — 82 Change in deferred income taxes 17,193 — — 17,193 Stock-based compensation expense 2,308 — — 2,308 Gain from sales of property and equipment, net (1,948 ) (353 ) — (2,301 ) Gain from sales of rental equipment, net (17,219 ) (4,231 ) — (21,450 ) Equity in earnings of guarantor subsidiaries (8,388 ) — 8,388 — Changes in operating assets and liabilities: Receivables 8,759 (2,987 ) — 5,772 Inventories (12,001 ) (3,219 ) — (15,220 ) Prepaid expenses and other assets 1,188 (28 ) — 1,160 Accounts payable (18,684 ) 135 — (18,549 ) Manufacturer flooring plans payable (24,377 ) 170 — (24,207 ) Accrued expenses payable and other liabilities (5,275 ) 839 — (4,436 ) Deferred compensation payable (348 ) — — (348 ) Net cash provided by operating activities 87,585 21,818 — 109,403 Cash flows from investing activities: Purchases of property and equipment (14,143 ) (2,610 ) — (16,753 ) Purchases of rental equipment (112,346 ) (40,298 ) — (152,644 ) Proceeds from sales of property and equipment 2,218 471 — 2,689 Proceeds from sales of rental equipment 50,528 11,731 — 62,259 Investment in subsidiaries (9,046 ) — 9,046 — Net cash used in investing activities. (82,789 ) (30,706 ) 9,046 (104,449 ) Cash flows from financing activities: Purchases of treasury stock (546 ) — — (546 ) Borrowings on senior secured credit facility 767,550 — — 767,550 Payments on senior secured credit facility (742,645 ) — — (742,645 ) Dividends paid (29,280 ) (7 ) — (29,287 ) Payments on capital lease obligations — (151 ) — (151 ) Capital contributions — 9,046 (9,046 ) — Net cash provided by (used in) financing activities (4,921 ) 8,888 (9,046 ) (5,079 ) Net decrease in cash (125 ) — — (125 ) Cash, beginning of period 7,159 — — 7,159 Cash, end of period $ 7,034 $ — $ — $ 7,034 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2015 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 32,338 $ 7,023 $ (7,023 ) $ 32,338 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 15,710 2,185 — 17,895 Depreciation of rental equipment 101,237 19,884 — 121,121 Amortization of deferred financing costs 774 — — 774 Accretion of note discount, net of premium amortization 126 — — 126 Provision for losses on accounts receivable 2,236 210 — 2,446 Provision for inventory obsolescence 201 — — 201 Change in deferred income taxes 22,514 — — 22,514 Stock-based compensation expense 2,036 — — 2,036 Gain from sales of property and equipment, net (1,306 ) (463 ) — (1,769 ) Gain from sales of rental equipment, net (19,366 ) (5,596 ) — (24,962 ) Equity in earnings of guarantor subsidiaries (7,023 ) — 7,023 - Changes in operating assets and liabilities: Receivables 8,097 7,185 — 15,282 Inventories (16,696 ) (1,977 ) — (18,673 ) Prepaid expenses and other assets (3,652 ) (50 ) — (3,702 ) Accounts payable 412 187 — 599 Manufacturer flooring plans payable (33,696 ) — — (33,696 ) Accrued expenses payable and other liabilities (12,276 ) 792 — (11,484 ) Deferred compensation payable 51 — — 51 Net cash provided by operating activities 91,717 29,380 — 121,097 Cash flows from investing activities: Purchases of property and equipment (19,997 ) (2,320 ) — (22,317 ) Purchases of rental equipment (104,735 ) (32,449 ) — (137,184 ) Proceeds from sales of property and equipment 2,050 532 — 2,582 Proceeds from sales of rental equipment 53,784 14,403 — 68,187 Investment in subsidiaries 9,398 — (9,398 ) — Net cash used in investing activities. (59,500 ) (19,834 ) (9,398 ) (88,732 ) Cash flows from financing activities: Purchases of treasury stock (470 ) — — (470 ) Borrowings on senior secured credit facility 768,572 — — 768,572 Payments on senior secured credit facility (778,903 ) — — (778,903 ) Dividends paid (27,365 ) (5 ) — (27,370 ) Payments of deferred financing costs (725 ) — — (725 ) Payments on capital lease obligations — (143 ) — (143 ) Capital contributions — (9,398 ) 9,398 - Net cash used in financing activities (38,891 ) (9,546 ) 9,398 (39,039 ) Net decrease in cash (6,674 ) — — (6,674 ) Cash, beginning of period 15,861 — — 15,861 Cash, end of period $ 9,187 $ — $ — $ 9,187 |
Organization and Nature of Op16
Organization and Nature of Operations (Policies) | 9 Months Ended |
Sep. 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 nine month periods ended September 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 In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments 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) | 9 Months Ended |
Sep. 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) | 9 Months Ended |
Sep. 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 September 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. September 30, 2016 Carrying Amount Fair Value Manufacturer flooring plans payable with interest computed at 4.50% (Level 3) $ 38,226 $ 33,497 Senior unsecured notes with interest computed at 7.0% (Level 1) 627,609 648,900 Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) 1,756 1,172 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) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Summary of Activity in Stockholders' Equity | The following table summarizes the activity in Stockholders’ Equity for the nine month period ended September 30, 2016 (amounts in thousands, except share data): Common Stock Additional Total Shares Issued Amount Paid-in Capital Treasury Stock Retained Deficit Stockholders’ Equity Balances at December 31, 2015 39,333,571 $ 392 $ 220,879 $ (60,405 ) $ (18,278 ) $ 142,588 Stock-based compensation — — 2,308 — — 2,308 Tax deficiency associated with stock-based awards — — (370 ) — — (370 ) Cash dividends declared on common stock ($0.825 per share) — — — — (29,312 ) (29,312 ) Issuance of common stock 166,482 2 — — — 2 Repurchases of 29,815 shares of restricted common stock — — (546 ) — (546 ) Net income — — — — 24,742 24,742 Balances at September 30, 2016 39,500,053 $ 394 $ 222,817 $ (60,951 ) $ (22,848 ) $ 139,412 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 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 for the nine months ended September 30, 2016. All awards granted prior to May 16, 2016 were made pursuant to the Prior Stock Plan, and all grants subsequent to May 16, 2016 have been made pursuant to the 2016 Plan. Number of Shares Weighted Average Grant Date Fair Non-vested stock at December 31, 2015 322,355 $ 19.90 Granted 227,532 $ 17.39 Vested (133,783 ) $ 18.85 Forfeited (9,027 ) $ 18.99 Non-vested stock at September 30, 2016 407,077 $ 18.87 |
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 nine months ended September 30, 2016 and 2015 (amounts in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Compensation expense $ 641 $ 531 $ 2,308 $ 2,036 |
Schedule of Share Based Compensation Stock Options Activity | The following table represents stock option activity for the nine months ended September 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 September 30, 2016 6,000 $ 19.27 0.8 Options exercisable at September 30, 2016 6,000 $ 19.27 0.8 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2016 and 2015 (amounts in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Basic net income per share: Net income $ 11,665 $ 14,772 $ 24,742 $ 32,338 Weighted average number of common shares outstanding 35,424 35,308 35,373 35,258 Net income per share of common stock – basic $ 0.33 $ 0.42 $ 0.70 $ 0.92 Diluted net income per share: Net income $ 11,665 $ 14,772 $ 24,742 $ 32,338 Weighted average number of common shares outstanding 35,424 35,308 35,373 35,258 Effect of dilutive securities: Effect of dilutive stock options — — — 13 Effect of dilutive non-vested restricted stock 80 42 88 46 Weighted average number of common shares outstanding – diluted 35,504 35,350 35,461 35,317 Net income per share of common stock – diluted $ 0.33 $ 0.42 $ 0.70 $ 0.92 Common shares excluded from the denominator as anti-dilutive: Stock options — 51 5 17 Non-vested restricted stock 1 17 2 7 |
Senior Unsecured Notes (Tables)
Senior Unsecured Notes (Tables) | 9 Months Ended |
Sep. 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 September 30, 2016 791 Amortization of note premium through September 30, 2016 (666 ) Amortization of deferred financing costs through September 30, 2016 178 Balance at September 30, 2016 $ 627,609 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Segment Revenues: Equipment rentals $ 118,535 $ 118,055 $ 330,023 $ 328,072 New equipment sales 44,764 66,552 151,836 175,465 Used equipment sales 20,630 29,111 71,973 83,113 Parts sales 27,335 28,968 81,958 84,400 Services revenues 16,076 16,727 49,322 47,452 Total segmented revenues 227,340 259,413 685,112 718,502 Non-segmented revenues 17,346 17,440 48,679 48,121 Total revenues $ 244,686 $ 276,853 $ 733,791 $ 766,623 Segment Gross Profit: Equipment rentals $ 58,629 $ 57,882 $ 156,161 $ 154,429 New equipment sales 4,617 6,552 16,684 19,397 Used equipment sales 6,266 8,849 22,222 26,352 Parts sales 7,627 7,870 22,774 23,176 Services revenues 10,631 11,145 32,586 31,435 Total segmented gross profit 87,770 92,298 250,427 254,789 Non-segmented gross profit 355 539 550 792 Total gross profit $ 88,125 $ 92,837 $ 250,977 $ 255,581 Balances at September 30, December 31, 2016 2015 Segment identified assets: Equipment sales $ 55,853 $ 77,365 Equipment rentals 922,486 893,393 Parts and services 18,145 19,453 Total segment identified assets 996,484 990,211 Non-segment identified assets 295,341 309,300 Total assets $ 1,291,825 $ 1,299,511 |
Condensed Consolidating Finan24
Condensed Consolidating Financial Information of Guarantor Subsidiaries (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET As of September 30, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Assets: Cash $ 7,034 $ — $ — $ 7,034 Receivables, net 112,891 25,942 — 138,833 Inventories, net 66,822 7,176 — 73,998 Prepaid expenses and other assets 8,721 173 — 8,894 Rental equipment, net 763,627 158,859 — 922,486 Property and equipment, net 95,580 11,636 — 107,216 Deferred financing costs, net 2,167 — — 2,167 Investment in guarantor subsidiaries 228,976 — (228,976 ) — Goodwill 1,671 29,526 — 31,197 Total assets $ 1,287,489 $ 233,312 $ (228,976 ) $ 1,291,825 Liabilities and Stockholders’ Equity: Amounts due on senior secured credit facility $ 209,762 $ — $ — $ 209,762 Accounts payable 45,274 2,953 — 48,227 Manufacturer flooring plans payable 38,056 170 — 38,226 Accrued expenses payable and other liabilities 52,008 (506 ) — 51,502 Dividends payable 93 (37 ) — 56 Senior unsecured notes 627,609 — — 627,609 Capital leases payable — 1,756 — 1,756 Deferred income taxes 173,449 — — 173,449 Deferred compensation payable 1,826 — — 1,826 Total liabilities 1,148,077 4,336 — 1,152,413 Stockholders’ equity 139,412 228,976 (228,976 ) 139,412 Total liabilities and stockholders’ equity $ 1,287,489 $ 233,312 $ (228,976 ) $ 1,291,825 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 September 30, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 96,310 $ 22,225 $ — $ 118,535 New equipment sales 37,110 7,654 — 44,764 Used equipment sales 16,778 3,852 — 20,630 Parts sales 23,807 3,528 — 27,335 Services revenues 13,693 2,383 — 16,076 Other 14,072 3,274 — 17,346 Total revenues 201,770 42,916 — 244,686 Cost of revenues: Rental depreciation 34,168 7,360 — 41,528 Rental expense 15,127 3,251 — 18,378 New equipment sales 33,206 6,941 — 40,147 Used equipment sales 11,762 2,602 — 14,364 Parts sales 17,221 2,487 — 19,708 Services revenues 4,686 759 — 5,445 Other 13,716 3,275 — 16,991 Total cost of revenues 129,886 26,675 — 156,561 Gross profit (loss): Equipment rentals 47,015 11,614 — 58,629 New equipment sales 3,904 713 — 4,617 Used equipment sales 5,016 1,250 — 6,266 Parts sales 6,586 1,041 — 7,627 Services revenues 9,007 1,624 — 10,631 Other 356 (1 ) — 355 Gross profit 71,884 16,241 — 88,125 Selling, general and administrative expenses 45,810 10,152 — 55,962 Equity in earnings of guarantor subsidiaries 3,892 — (3,892 ) — Gain on sales of property and equipment, net 782 145 — 927 Income from operations 30,748 6,234 (3,892 ) 33,090 Other income (expense): Interest expense (11,074 ) (2,395 ) — (13,469 ) Other, net 333 53 — 386 Total other expense, net (10,741 ) (2,342 ) — (13,083 ) Income before income taxes 20,007 3,892 (3,892 ) 20,007 Income tax expense 8,342 — — 8,342 Net income $ 11,665 $ 3,892 $ (3,892 ) $ 11,665 CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended September 30, 2015 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 96,768 $ 21,287 $ — $ 118,055 New equipment sales 57,311 9,241 — 66,552 Used equipment sales 22,124 6,987 — 29,111 Parts sales 25,429 3,539 — 28,968 Services revenues 14,206 2,521 — 16,727 Other 14,110 3,330 — 17,440 Total revenues 229,948 46,905 — 276,853 Cost of revenues: Rental depreciation 34,194 6,769 — 40,963 Rental expense 15,705 3,505 — 19,210 New equipment sales 51,569 8,431 — 60,000 Used equipment sales 15,501 4,761 — 20,262 Parts sales 18,547 2,551 — 21,098 Services revenues 4,811 771 — 5,582 Other 13,657 3,244 — 16,901 Total cost of revenues 153,984 30,032 — 184,016 Gross profit: Equipment rentals 46,869 11,013 — 57,882 New equipment sales 5,742 810 — 6,552 Used equipment sales 6,623 2,226 — 8,849 Parts sales 6,882 988 — 7,870 Services revenues 9,395 1,750 — 11,145 Other 453 86 — 539 Gross profit 75,964 16,873 — 92,837 Selling, general and administrative expenses 44,810 9,894 — 54,704 Equity in earnings of guarantor subsidiaries 3,663 — (3,663 ) — Gain on sales of property and equipment, net 232 107 — 339 Income from operations 35,049 7,086 (3,663 ) 38,472 Other income (expense): Interest expense (10,023 ) (3,458 ) — (13,481 ) Other, net 466 35 — 501 Total other expense, net (9,557 ) (3,423 ) — (12,980 ) Income before income taxes 25,492 3,663 (3,663 ) 25,492 Income tax expense 10,720 — — 10,720 Net income $ 14,772 $ 3,663 $ (3,663 ) $ 14,772 CONDENSED CONSOLIDATING STATEMENT OF INCOME Nine Months Ended September 30, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 270,927 $ 59,096 $ — $ 330,023 New equipment sales 124,450 27,386 — 151,836 Used equipment sales 59,515 12,458 — 71,973 Parts sales 71,323 10,635 — 81,958 Services revenues 42,140 7,182 — 49,322 Other 39,619 9,060 — 48,679 Total revenues 607,974 125,817 — 733,791 Cost of revenues: Rental depreciation 100,111 20,589 — 120,700 Rental expense 44,135 9,027 — 53,162 New equipment sales 110,594 24,558 — 135,152 Used equipment sales 41,565 8,186 — 49,751 Parts sales 51,660 7,524 — 59,184 Services revenues 14,470 2,266 — 16,736 Other 39,069 9,060 — 48,129 Total cost of revenues 401,604 81,210 — 482,814 Gross profit: Equipment rentals 126,681 29,480 — 156,161 New equipment sales 13,856 2,828 — 16,684 Used equipment sales 17,950 4,272 — 22,222 Parts sales 19,663 3,111 — 22,774 Services revenues 27,670 4,916 — 32,586 Other 550 — — 550 Gross profit 206,370 44,607 — 250,977 Selling, general and administrative expenses 142,402 29,983 — 172,385 Equity in earnings of guarantor subsidiaries 8,388 — (8,388 ) — Gain on sales of property and equipment, net 1,948 353 — 2,301 Income from operations 74,304 14,977 (8,388 ) 80,893 Other income (expense): Interest expense (33,460 ) (6,769 ) — (40,229 ) Other, net 1,325 180 — 1,505 Total other expense, net (32,135 ) (6,589 ) — (38,724 ) Income before income taxes 42,169 8,388 (8,388 ) 42,169 Income tax expense 17,427 — — 17,427 Net income $ 24,742 $ 8,388 $ (8,388 ) $ 24,742 CONDENSED CONSOLIDATING STATEMENT OF INCOME Nine Months Ended September 30, 2015 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 271,270 $ 56,802 $ — $ 328,072 New equipment sales 156,657 18,808 — 175,465 Used equipment sales 66,072 17,041 — 83,113 Parts sales 73,516 10,884 — 84,400 Services revenues 40,279 7,173 — 47,452 Other 39,012 9,109 — 48,121 Total revenues 646,806 119,817 — 766,623 Cost of revenues: Rental depreciation 101,237 19,884 — 121,121 Rental expense 43,301 9,221 — 52,522 New equipment sales 139,121 16,947 — 156,068 Used equipment sales 45,672 11,089 — 56,761 Parts sales 53,435 7,789 — 61,224 Services revenues 13,719 2,298 — 16,017 Other 38,211 9,118 — 47,329 Total cost of revenues 434,696 76,346 — 511,042 Gross profit (loss): Equipment rentals 126,732 27,697 — 154,429 New equipment sales 17,536 1,861 — 19,397 Used equipment sales 20,400 5,952 — 26,352 Parts sales 20,081 3,095 — 23,176 Services revenues 26,560 4,875 — 31,435 Other 801 (9 ) — 792 Gross profit 212,110 43,471 — 255,581 Selling, general and administrative expenses 135,966 26,618 — 162,584 Equity in earnings of guarantor subsidiaries 7,023 — (7,023 ) — Gain on sales of property and equipment, net 1,306 463 — 1,769 Income from operations 84,473 17,316 (7,023 ) 94,766 Other income (expense): Interest expense (30,261 ) (10,414 ) — (40,675 ) Other, net 962 121 — 1,083 Total other expense, net (29,299 ) (10,293 ) — (39,592 ) Income before income taxes 55,174 7,023 (7,023 ) 55,174 Income tax expense 22,836 — — 22,836 Net income $ 32,338 $ 7,023 $ (7,023 ) $ 32,338 |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2016 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 24,742 $ 8,388 $ (8,388 ) $ 24,742 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 18,022 2,299 — 20,321 Depreciation of rental equipment 100,111 20,589 — 120,700 Amortization of deferred financing costs 789 — — 789 Accretion of note discount, net of premium amortization 124 — — 124 Provision for losses on accounts receivable 2,507 216 — 2,723 Provision for inventory obsolescence 82 — — 82 Change in deferred income taxes 17,193 — — 17,193 Stock-based compensation expense 2,308 — — 2,308 Gain from sales of property and equipment, net (1,948 ) (353 ) — (2,301 ) Gain from sales of rental equipment, net (17,219 ) (4,231 ) — (21,450 ) Equity in earnings of guarantor subsidiaries (8,388 ) — 8,388 — Changes in operating assets and liabilities: Receivables 8,759 (2,987 ) — 5,772 Inventories (12,001 ) (3,219 ) — (15,220 ) Prepaid expenses and other assets 1,188 (28 ) — 1,160 Accounts payable (18,684 ) 135 — (18,549 ) Manufacturer flooring plans payable (24,377 ) 170 — (24,207 ) Accrued expenses payable and other liabilities (5,275 ) 839 — (4,436 ) Deferred compensation payable (348 ) — — (348 ) Net cash provided by operating activities 87,585 21,818 — 109,403 Cash flows from investing activities: Purchases of property and equipment (14,143 ) (2,610 ) — (16,753 ) Purchases of rental equipment (112,346 ) (40,298 ) — (152,644 ) Proceeds from sales of property and equipment 2,218 471 — 2,689 Proceeds from sales of rental equipment 50,528 11,731 — 62,259 Investment in subsidiaries (9,046 ) — 9,046 — Net cash used in investing activities. (82,789 ) (30,706 ) 9,046 (104,449 ) Cash flows from financing activities: Purchases of treasury stock (546 ) — — (546 ) Borrowings on senior secured credit facility 767,550 — — 767,550 Payments on senior secured credit facility (742,645 ) — — (742,645 ) Dividends paid (29,280 ) (7 ) — (29,287 ) Payments on capital lease obligations — (151 ) — (151 ) Capital contributions — 9,046 (9,046 ) — Net cash provided by (used in) financing activities (4,921 ) 8,888 (9,046 ) (5,079 ) Net decrease in cash (125 ) — — (125 ) Cash, beginning of period 7,159 — — 7,159 Cash, end of period $ 7,034 $ — $ — $ 7,034 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2015 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 32,338 $ 7,023 $ (7,023 ) $ 32,338 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 15,710 2,185 — 17,895 Depreciation of rental equipment 101,237 19,884 — 121,121 Amortization of deferred financing costs 774 — — 774 Accretion of note discount, net of premium amortization 126 — — 126 Provision for losses on accounts receivable 2,236 210 — 2,446 Provision for inventory obsolescence 201 — — 201 Change in deferred income taxes 22,514 — — 22,514 Stock-based compensation expense 2,036 — — 2,036 Gain from sales of property and equipment, net (1,306 ) (463 ) — (1,769 ) Gain from sales of rental equipment, net (19,366 ) (5,596 ) — (24,962 ) Equity in earnings of guarantor subsidiaries (7,023 ) — 7,023 - Changes in operating assets and liabilities: Receivables 8,097 7,185 — 15,282 Inventories (16,696 ) (1,977 ) — (18,673 ) Prepaid expenses and other assets (3,652 ) (50 ) — (3,702 ) Accounts payable 412 187 — 599 Manufacturer flooring plans payable (33,696 ) — — (33,696 ) Accrued expenses payable and other liabilities (12,276 ) 792 — (11,484 ) Deferred compensation payable 51 — — 51 Net cash provided by operating activities 91,717 29,380 — 121,097 Cash flows from investing activities: Purchases of property and equipment (19,997 ) (2,320 ) — (22,317 ) Purchases of rental equipment (104,735 ) (32,449 ) — (137,184 ) Proceeds from sales of property and equipment 2,050 532 — 2,582 Proceeds from sales of rental equipment 53,784 14,403 — 68,187 Investment in subsidiaries 9,398 — (9,398 ) — Net cash used in investing activities. (59,500 ) (19,834 ) (9,398 ) (88,732 ) Cash flows from financing activities: Purchases of treasury stock (470 ) — — (470 ) Borrowings on senior secured credit facility 768,572 — — 768,572 Payments on senior secured credit facility (778,903 ) — — (778,903 ) Dividends paid (27,365 ) (5 ) — (27,370 ) Payments of deferred financing costs (725 ) — — (725 ) Payments on capital lease obligations — (143 ) — (143 ) Capital contributions — (9,398 ) 9,398 - Net cash used in financing activities (38,891 ) (9,546 ) 9,398 (39,039 ) Net decrease in cash (6,674 ) — — (6,674 ) Cash, beginning of period 15,861 — — 15,861 Cash, end of period $ 9,187 $ — $ — $ 9,187 |
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 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Deferred Financing Costs | $ 2,167 | $ 2,777 | |
Total Assets | 1,291,825 | 1,299,511 | |
Senior Unsecured Notes | 627,609 | 627,306 | $ 628,714 |
Total Liabilities | 1,152,413 | 1,156,923 | |
Total Liabilities and Stockholders’ Equity | $ 1,291,825 | 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 | Sep. 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 4.50% and 5.00%, respectively (Level 3) | $ 38,226 | $ 62,433 | |
Senior unsecured notes with interest computed at 7.0% (Level 1) | 627,609 | 627,306 | $ 628,714 |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 1,756 | 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 4.50% and 5.00%, respectively (Level 3) | 38,226 | 62,433 | |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 1,756 | 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 4.50% and 5.00%, respectively (Level 3) | 33,497 | 54,710 | |
Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) | 1,172 | 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) | 627,609 | 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) | Sep. 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 | 4.50% | 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 | 4.50% | 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 | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 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 | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule of Capitalization, Equity [Line Items] | ||||
Beginning balance, value | $ 142,588 | |||
Beginning balance, shares | 39,333,571 | |||
Stock-based compensation | $ 2,308 | |||
Tax deficiency associated with stock-based awards | (370) | |||
Cash dividends declared on common stock ($0.825 per share) | (29,312) | |||
Issuance of common stock, value | 2 | |||
Repurchases of 29,815 shares of restricted common stock | (546) | |||
Net income | $ 11,665 | $ 14,772 | 24,742 | $ 32,338 |
Ending balance, value | $ 139,412 | $ 139,412 | ||
Ending balance, shares | 39,500,053 | 39,500,053 | ||
Common Stock [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Beginning balance, value | $ 392 | |||
Beginning balance, shares | 39,333,571 | |||
Issuance of common stock, value | $ 2 | |||
Issuance of common stock, shares | 166,482 | |||
Ending balance, value | $ 394 | $ 394 | ||
Ending balance, shares | 39,500,053 | 39,500,053 | ||
Additional Paid-in Capital [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Beginning balance, value | $ 220,879 | |||
Stock-based compensation | 2,308 | |||
Tax deficiency associated with stock-based awards | (370) | |||
Ending balance, value | $ 222,817 | 222,817 | ||
Treasury Stock [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Beginning balance, value | (60,405) | |||
Repurchases of 29,815 shares of restricted common stock | (546) | |||
Ending balance, value | (60,951) | (60,951) | ||
Retained Deficit [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Beginning balance, value | (18,278) | |||
Cash dividends declared on common stock ($0.825 per share) | (29,312) | |||
Net income | 24,742 | |||
Ending balance, value | $ (22,848) | $ (22,848) |
Stockholders' Equity - Summar30
Stockholders' Equity - Summary of Activity in Stockholders' Equity (Parenthetical) (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule of Capitalization, Equity [Line Items] | ||||
Cash dividends declared on common stock, per share | $ 0.275 | $ 0.275 | $ 0.825 | $ 0.775 |
Repurchases of restricted common stock, shares | 29,815 | |||
Retained Deficit [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Cash dividends declared on common stock, per share | $ 0.825 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | 9 Months Ended |
Sep. 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 | $ 5,600,000 |
Expected non-vested stock recognized over a weighted-average period | 2 years 4 months 24 days |
Unrecognized compensation expense related to stock option awards | $ 0 |
Closing price of common stock | $ / shares | $ 16.76 |
2016 Stock-Based Incentive Compensation Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock-Based incentive compensation plan | shares | 1,973,495 |
Stock-Based incentive compensation plan, description | Over the last ten years prior to June 2016, we had 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 is no longer be able to grant equity awards under the Prior Stock Plan. At our annual meeting of stockholders in May 2016, our stockholders approved our 2016 Stock-Based Incentive Compensation Plan (the “2016 Plan”). Shares available for future stock-based payment awards under our 2016 Plan were 1,973,495 shares as of September 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] | 9 Months Ended |
Sep. 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 | 227,532 |
Vested, Number of Shares | shares | (133,783) |
Forfeited, Number of Shares | shares | (9,027) |
Nonvested stock, ending balance, Number of Shares | shares | 407,077 |
Nonvested stock, beginning balance, Weighted Average Grant Date Fair Value | $ / shares | $ 19.90 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 17.39 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 18.85 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 18.99 |
Nonvested stock, ending balance, Weighted Average Grant Date Fair Value | $ / shares | $ 18.87 |
Stock-Based Compensation - Sc33
Stock-Based Compensation - Schedule of Compensation Expense Related to Non-Vested Stock (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
2006 Stock-Based Incentive Compensation Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation expense | $ 641 | $ 531 | $ 2,308 | $ 2,036 |
Stock-Based Compensation - Sc34
Stock-Based Compensation - Schedule of Share Based Compensation Stock Options Activity (Detail) - 2006 Stock-Based Incentive Compensation Plan [Member] | 9 Months Ended |
Sep. 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 | 9 months 18 days |
Stock Options, Exercisable, Weighted Average Contractual Life In Years | 9 months 18 days |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Restricted common shares, percentage | 0.90% | 0.80% | 0.90% | 0.80% |
Earnings per Share - Summary of
Earnings 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 | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Basic net income per share: | ||||
Net income | $ 11,665 | $ 14,772 | $ 24,742 | $ 32,338 |
Weighted average number of common shares outstanding | 35,424 | 35,308 | 35,373 | 35,258 |
Net income per share of common stock – basic | $ 0.33 | $ 0.42 | $ 0.70 | $ 0.92 |
Diluted net income per share: | ||||
Net income | $ 11,665 | $ 14,772 | $ 24,742 | $ 32,338 |
Weighted average number of common shares outstanding | 35,424 | 35,308 | 35,373 | 35,258 |
Effect of dilutive securities: | ||||
Weighted average number of common shares outstanding - diluted | 35,504 | 35,350 | 35,461 | 35,317 |
Net income per share of common stock – diluted | $ 0.33 | $ 0.42 | $ 0.70 | $ 0.92 |
Stock Options [Member] | ||||
Effect of dilutive securities: | ||||
Effect of dilutive stock options and non-vested restricted stock | 13 | |||
Common shares excluded from the denominator as anti-dilutive: | ||||
Common shares excluded from the denominator as anti-dilutive | 51 | 5 | 17 | |
Non-vested restricted stock [Member] | ||||
Effect of dilutive securities: | ||||
Effect of dilutive stock options and non-vested restricted stock | 80 | 42 | 88 | 46 |
Common shares excluded from the denominator as anti-dilutive: | ||||
Common shares excluded from the denominator as anti-dilutive | 1 | 17 | 2 | 7 |
Senior Secured Credit Facility
Senior Secured Credit Facility - Additional Information (Detail) - USD ($) | 9 Months Ended | ||||
Sep. 30, 2016 | Oct. 21, 2016 | Feb. 05, 2015 | May 21, 2014 | May 20, 2014 | |
Debt Instrument [Line Items] | |||||
Unused commitment fee margin percentage | 0.375% | ||||
Payment of dividends and/or stock repurchases or redemptions | $ 75,000,000 | ||||
Weighted average interest rate on the senior secured credit facility | 2.70% | ||||
Basis points added to U S prime rate | 1.00% | ||||
Basis points added to LIBOR | 2.00% | ||||
Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding letters of credit | $ 7,700,000 | ||||
Non-vested Restricted Stock [Member] | |||||
Debt Instrument [Line Items] | |||||
Payment of special cash dividend per share previously declared by the Company | $ 7 | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Unused commitment fee margin percentage | 0.50% | ||||
Index rate plus an applicable margin Percentage | 1.25% | ||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
LIBOR plus an applicable margin Percentage | 2.25% | ||||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Unused commitment fee margin percentage | 0.25% | ||||
Index rate plus an applicable margin Percentage | 0.75% | ||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
LIBOR plus an applicable margin Percentage | 1.75% | ||||
Letter of Credit [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Margin rate lowered in applicable to Letter of Credit | 2.25% | ||||
Letter of Credit [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Margin rate lowered in applicable to Letter of Credit | 1.75% | ||||
Wells Fargo Capital Finance, LLC [Member] | Senior Secured Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Existing credit facility with its lenders | $ 602,500,000 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Existing credit facility with its lenders | $ 402,500,000 | ||||
Uncommitted incremental revolving capacity | $ 150,000,000 | $ 130,000,000 | |||
Debt instrument maturity date description | Extends the maturity date of the Credit Facility from February 29, 2017 to May 21, 2019 | ||||
Available borrowings under our senior secured credit facility | $ 385,000,000 | ||||
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 or LIBOR plus 200 basis points. | ||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Available borrowings under our senior secured credit facility | $ 391,600,000 | ||||
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 | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Senior unsecured notes, beginning balance | $ 627,306 | $ 628,714 | $ 628,714 |
Accretion of discount | 791 | 1,055 | |
Amortization of note premium | (666) | (887) | |
Reclass of deferred financing costs to debt discount | (1,576) | ||
Amortization of deferred financing costs | 789 | $ 774 | |
Senior unsecured notes, ending balance | 627,609 | $ 627,306 | |
Senior Unsecured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Amortization of deferred financing costs | $ 178 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016Customer | Sep. 30, 2015Customer | Sep. 30, 2016SegmentCustomer | Sep. 30, 2015Customer | |
Segment Reporting [Abstract] | ||||
Number of reportable segment | Segment | 5 | |||
Sales to international customers | 0.30% | 0.50% | 0.40% | 0.60% |
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 | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Segment Revenues: | |||||
Revenues | $ 244,686 | $ 276,853 | $ 733,791 | $ 766,623 | |
Segment Gross Profit: | |||||
Total gross profit | 88,125 | 92,837 | 250,977 | 255,581 | |
Segment identified assets: | |||||
Total assets | 1,291,825 | 1,291,825 | $ 1,299,511 | ||
Equipment Rentals [Member] | |||||
Segment Revenues: | |||||
Revenues | 118,535 | 118,055 | 330,023 | 328,072 | |
Segment Gross Profit: | |||||
Total gross profit | 58,629 | 57,882 | 156,161 | 154,429 | |
New Equipment Sales [Member] | |||||
Segment Revenues: | |||||
Revenues | 44,764 | 66,552 | 151,836 | 175,465 | |
Segment Gross Profit: | |||||
Total gross profit | 4,617 | 6,552 | 16,684 | 19,397 | |
Used Equipment Sales [Member] | |||||
Segment Revenues: | |||||
Revenues | 20,630 | 29,111 | 71,973 | 83,113 | |
Segment Gross Profit: | |||||
Total gross profit | 6,266 | 8,849 | 22,222 | 26,352 | |
Parts Sales [Member] | |||||
Segment Revenues: | |||||
Revenues | 27,335 | 28,968 | 81,958 | 84,400 | |
Segment Gross Profit: | |||||
Total gross profit | 7,627 | 7,870 | 22,774 | 23,176 | |
Services Revenues [Member] | |||||
Segment Revenues: | |||||
Revenues | 16,076 | 16,727 | 49,322 | 47,452 | |
Segment Gross Profit: | |||||
Total gross profit | 10,631 | 11,145 | 32,586 | 31,435 | |
Operating Segments [Member] | |||||
Segment Revenues: | |||||
Revenues | 227,340 | 259,413 | 685,112 | 718,502 | |
Segment Gross Profit: | |||||
Total gross profit | 87,770 | 92,298 | 250,427 | 254,789 | |
Segment identified assets: | |||||
Total assets | 996,484 | 996,484 | 990,211 | ||
Operating Segments [Member] | Equipment Rentals [Member] | |||||
Segment Revenues: | |||||
Revenues | 118,535 | 118,055 | 330,023 | 328,072 | |
Segment Gross Profit: | |||||
Total gross profit | 58,629 | 57,882 | 156,161 | 154,429 | |
Segment identified assets: | |||||
Total assets | 922,486 | 922,486 | 893,393 | ||
Operating Segments [Member] | New Equipment Sales [Member] | |||||
Segment Revenues: | |||||
Revenues | 44,764 | 66,552 | 151,836 | 175,465 | |
Segment Gross Profit: | |||||
Total gross profit | 4,617 | 6,552 | 16,684 | 19,397 | |
Operating Segments [Member] | Used Equipment Sales [Member] | |||||
Segment Revenues: | |||||
Revenues | 20,630 | 29,111 | 71,973 | 83,113 | |
Segment Gross Profit: | |||||
Total gross profit | 6,266 | 8,849 | 22,222 | 26,352 | |
Segment identified assets: | |||||
Total assets | 55,853 | 55,853 | 77,365 | ||
Operating Segments [Member] | Parts Sales [Member] | |||||
Segment Revenues: | |||||
Revenues | 27,335 | 28,968 | 81,958 | 84,400 | |
Segment Gross Profit: | |||||
Total gross profit | 7,627 | 7,870 | 22,774 | 23,176 | |
Operating Segments [Member] | Services Revenues [Member] | |||||
Segment Revenues: | |||||
Revenues | 16,076 | 16,727 | 49,322 | 47,452 | |
Segment Gross Profit: | |||||
Total gross profit | 10,631 | 11,145 | 32,586 | 31,435 | |
Operating Segments [Member] | Parts and Services [Member] | |||||
Segment identified assets: | |||||
Total assets | 18,145 | 18,145 | 19,453 | ||
Non-Segmented [Member] | |||||
Segment Revenues: | |||||
Revenues | 17,346 | 17,440 | 48,679 | 48,121 | |
Segment Gross Profit: | |||||
Total gross profit | 355 | $ 539 | 550 | $ 792 | |
Segment identified assets: | |||||
Total assets | $ 295,341 | $ 295,341 | $ 309,300 |
Condensed Consolidating Finan41
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Assets: | ||||
Cash | $ 7,034 | $ 7,159 | $ 9,187 | $ 15,861 |
Receivables, net | 138,833 | 147,328 | ||
Inventories, net | 73,998 | 96,818 | ||
Prepaid expenses and other assets | 8,894 | 10,054 | ||
Rental equipment, net | 922,486 | 893,393 | ||
Property and equipment, net | 107,216 | 110,785 | ||
Deferred Financing Costs | 2,167 | 2,777 | ||
Goodwill | 31,197 | 31,197 | ||
Total assets | 1,291,825 | 1,299,511 | ||
Liabilities and Stockholders’ Equity: | ||||
Amounts due on senior secured credit facility | 209,762 | 184,857 | ||
Accounts payable | 48,227 | 66,777 | ||
Manufacturer flooring plans payable | 38,226 | 62,433 | ||
Dividends payable | 56 | 32 | ||
Accrued expenses payable and other liabilities | 51,502 | 55,551 | ||
Senior Unsecured Notes | 627,609 | 627,306 | 628,714 | |
Capital leases payable | 1,756 | 1,907 | ||
Deferred income taxes | 173,449 | 155,886 | ||
Deferred compensation payable | 1,826 | 2,174 | ||
Total liabilities | 1,152,413 | 1,156,923 | ||
Stockholders’ equity | 139,412 | 142,588 | ||
Total liabilities and stockholders' equity | 1,291,825 | 1,299,511 | ||
H & E Equipment Services [Member] | ||||
Assets: | ||||
Cash | 7,034 | 7,159 | $ 9,187 | $ 15,861 |
Receivables, net | 112,891 | 124,157 | ||
Inventories, net | 66,822 | 88,831 | ||
Prepaid expenses and other assets | 8,721 | 9,909 | ||
Rental equipment, net | 763,627 | 750,773 | ||
Property and equipment, net | 95,580 | 99,342 | ||
Deferred Financing Costs | 2,167 | 2,777 | ||
Investment in guarantor subsidiaries | 228,976 | 211,542 | ||
Goodwill | 1,671 | 1,671 | ||
Total assets | 1,287,489 | 1,296,161 | ||
Liabilities and Stockholders’ Equity: | ||||
Amounts due on senior secured credit facility | 209,762 | 184,857 | ||
Accounts payable | 45,274 | 63,959 | ||
Manufacturer flooring plans payable | 38,056 | 62,433 | ||
Dividends payable | 93 | 62 | ||
Accrued expenses payable and other liabilities | 52,008 | 56,896 | ||
Senior Unsecured Notes | 627,609 | 627,306 | ||
Deferred income taxes | 173,449 | 155,886 | ||
Deferred compensation payable | 1,826 | 2,174 | ||
Total liabilities | 1,148,077 | 1,153,573 | ||
Stockholders’ equity | 139,412 | 142,588 | ||
Total liabilities and stockholders' equity | 1,287,489 | 1,296,161 | ||
Guarantor Subsidiaries [Member] | ||||
Assets: | ||||
Receivables, net | 25,942 | 23,171 | ||
Inventories, net | 7,176 | 7,987 | ||
Prepaid expenses and other assets | 173 | 145 | ||
Rental equipment, net | 158,859 | 142,620 | ||
Property and equipment, net | 11,636 | 11,443 | ||
Goodwill | 29,526 | 29,526 | ||
Total assets | 233,312 | 214,892 | ||
Liabilities and Stockholders’ Equity: | ||||
Accounts payable | 2,953 | 2,818 | ||
Manufacturer flooring plans payable | 170 | |||
Dividends payable | (37) | (30) | ||
Accrued expenses payable and other liabilities | (506) | (1,345) | ||
Capital leases payable | 1,756 | 1,907 | ||
Total liabilities | 4,336 | 3,350 | ||
Stockholders’ equity | 228,976 | 211,542 | ||
Total liabilities and stockholders' equity | 233,312 | 214,892 | ||
Elimination [Member] | ||||
Assets: | ||||
Investment in guarantor subsidiaries | (228,976) | (211,542) | ||
Total assets | (228,976) | (211,542) | ||
Liabilities and Stockholders’ Equity: | ||||
Stockholders’ equity | (228,976) | (211,542) | ||
Total liabilities and stockholders' equity | $ (228,976) | $ (211,542) |
Condensed Consolidating Finan42
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Revenues | $ 244,686 | $ 276,853 | $ 733,791 | $ 766,623 |
Services revenues | 16,076 | 16,727 | 49,322 | 47,452 |
Other | 17,346 | 17,440 | 48,679 | 48,121 |
Cost of revenues: | ||||
Cost of revenues | 156,561 | 184,016 | 482,814 | 511,042 |
Services revenues | 5,445 | 5,582 | 16,736 | 16,017 |
Other | 16,991 | 16,901 | 48,129 | 47,329 |
Gross profit (loss): | ||||
Gross profit (loss) | 88,125 | 92,837 | 250,977 | 255,581 |
Selling, general and administrative expenses | 55,962 | 54,704 | 172,385 | 162,584 |
Gain on sales of property and equipment, net | 927 | 339 | 2,301 | 1,769 |
Income from operations | 33,090 | 38,472 | 80,893 | 94,766 |
Other income (expense): | ||||
Interest expense | (13,469) | (13,481) | (40,229) | (40,675) |
Other, net | 386 | 501 | 1,505 | 1,083 |
Total other expense, net | (13,083) | (12,980) | (38,724) | (39,592) |
Income before provision for income taxes | 20,007 | 25,492 | 42,169 | 55,174 |
Income tax expense | 8,342 | 10,720 | 17,427 | 22,836 |
Net income | 11,665 | 14,772 | 24,742 | 32,338 |
Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 41,528 | 40,963 | 120,700 | 121,121 |
Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 18,378 | 19,210 | 53,162 | 52,522 |
Elimination [Member] | ||||
Gross profit (loss): | ||||
Equity in earnings of guarantor subsidiaries | (3,892) | (3,663) | (8,388) | (7,023) |
Income from operations | (3,892) | (3,663) | (8,388) | (7,023) |
Other income (expense): | ||||
Income before provision for income taxes | (3,892) | (3,663) | (8,388) | (7,023) |
Net income | (3,892) | (3,663) | (8,388) | (7,023) |
Other [Member] | ||||
Gross profit (loss): | ||||
Gross profit (loss) | 355 | 539 | 550 | 792 |
Equipment Rentals [Member] | ||||
Revenues: | ||||
Revenues | 118,535 | 118,055 | 330,023 | 328,072 |
Gross profit (loss): | ||||
Gross profit (loss) | 58,629 | 57,882 | 156,161 | 154,429 |
New Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 44,764 | 66,552 | 151,836 | 175,465 |
Cost of revenues: | ||||
Cost of revenues | 40,147 | 60,000 | 135,152 | 156,068 |
Gross profit (loss): | ||||
Gross profit (loss) | 4,617 | 6,552 | 16,684 | 19,397 |
Used Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 20,630 | 29,111 | 71,973 | 83,113 |
Cost of revenues: | ||||
Cost of revenues | 14,364 | 20,262 | 49,751 | 56,761 |
Gross profit (loss): | ||||
Gross profit (loss) | 6,266 | 8,849 | 22,222 | 26,352 |
Parts Sales [Member] | ||||
Revenues: | ||||
Revenues | 27,335 | 28,968 | 81,958 | 84,400 |
Cost of revenues: | ||||
Cost of revenues | 19,708 | 21,098 | 59,184 | 61,224 |
Gross profit (loss): | ||||
Gross profit (loss) | 7,627 | 7,870 | 22,774 | 23,176 |
Services Revenues [Member] | ||||
Revenues: | ||||
Revenues | 16,076 | 16,727 | 49,322 | 47,452 |
Cost of revenues: | ||||
Cost of revenues | 5,445 | 5,582 | 16,736 | 16,017 |
Gross profit (loss): | ||||
Gross profit (loss) | 10,631 | 11,145 | 32,586 | 31,435 |
H & E Equipment Services [Member] | ||||
Revenues: | ||||
Revenues | 201,770 | 229,948 | 607,974 | 646,806 |
Services revenues | 13,693 | 14,206 | 42,140 | 40,279 |
Other | 14,072 | 14,110 | 39,619 | 39,012 |
Cost of revenues: | ||||
Cost of revenues | 129,886 | 153,984 | 401,604 | 434,696 |
Services revenues | 4,686 | 4,811 | 14,470 | 13,719 |
Other | 13,716 | 13,657 | 39,069 | 38,211 |
Gross profit (loss): | ||||
Gross profit (loss) | 71,884 | 75,964 | 206,370 | 212,110 |
Selling, general and administrative expenses | 45,810 | 44,810 | 142,402 | 135,966 |
Equity in earnings of guarantor subsidiaries | 3,892 | 3,663 | 8,388 | 7,023 |
Gain on sales of property and equipment, net | 782 | 232 | 1,948 | 1,306 |
Income from operations | 30,748 | 35,049 | 74,304 | 84,473 |
Other income (expense): | ||||
Interest expense | (11,074) | (10,023) | (33,460) | (30,261) |
Other, net | 333 | 466 | 1,325 | 962 |
Total other expense, net | (10,741) | (9,557) | (32,135) | (29,299) |
Income before provision for income taxes | 20,007 | 25,492 | 42,169 | 55,174 |
Income tax expense | 8,342 | 10,720 | 17,427 | 22,836 |
Net income | 11,665 | 14,772 | 24,742 | 32,338 |
H & E Equipment Services [Member] | Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 34,168 | 34,194 | 100,111 | 101,237 |
H & E Equipment Services [Member] | Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 15,127 | 15,705 | 44,135 | 43,301 |
H & E Equipment Services [Member] | Other [Member] | ||||
Gross profit (loss): | ||||
Gross profit (loss) | 356 | 453 | 550 | 801 |
H & E Equipment Services [Member] | Equipment Rentals [Member] | ||||
Revenues: | ||||
Revenues | 96,310 | 96,768 | 270,927 | 271,270 |
Gross profit (loss): | ||||
Gross profit (loss) | 47,015 | 46,869 | 126,681 | 126,732 |
H & E Equipment Services [Member] | New Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 37,110 | 57,311 | 124,450 | 156,657 |
Cost of revenues: | ||||
Cost of revenues | 33,206 | 51,569 | 110,594 | 139,121 |
Gross profit (loss): | ||||
Gross profit (loss) | 3,904 | 5,742 | 13,856 | 17,536 |
H & E Equipment Services [Member] | Used Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 16,778 | 22,124 | 59,515 | 66,072 |
Cost of revenues: | ||||
Cost of revenues | 11,762 | 15,501 | 41,565 | 45,672 |
Gross profit (loss): | ||||
Gross profit (loss) | 5,016 | 6,623 | 17,950 | 20,400 |
H & E Equipment Services [Member] | Parts Sales [Member] | ||||
Revenues: | ||||
Revenues | 23,807 | 25,429 | 71,323 | 73,516 |
Cost of revenues: | ||||
Cost of revenues | 17,221 | 18,547 | 51,660 | 53,435 |
Gross profit (loss): | ||||
Gross profit (loss) | 6,586 | 6,882 | 19,663 | 20,081 |
H & E Equipment Services [Member] | Services Revenues [Member] | ||||
Gross profit (loss): | ||||
Gross profit (loss) | 9,007 | 9,395 | 27,670 | 26,560 |
Guarantor Subsidiaries [Member] | ||||
Revenues: | ||||
Revenues | 42,916 | 46,905 | 125,817 | 119,817 |
Services revenues | 2,383 | 2,521 | 7,182 | 7,173 |
Other | 3,274 | 3,330 | 9,060 | 9,109 |
Cost of revenues: | ||||
Cost of revenues | 26,675 | 30,032 | 81,210 | 76,346 |
Services revenues | 759 | 771 | 2,266 | 2,298 |
Other | 3,275 | 3,244 | 9,060 | 9,118 |
Gross profit (loss): | ||||
Gross profit (loss) | 16,241 | 16,873 | 44,607 | 43,471 |
Selling, general and administrative expenses | 10,152 | 9,894 | 29,983 | 26,618 |
Gain on sales of property and equipment, net | 145 | 107 | 353 | 463 |
Income from operations | 6,234 | 7,086 | 14,977 | 17,316 |
Other income (expense): | ||||
Interest expense | (2,395) | (3,458) | (6,769) | (10,414) |
Other, net | 53 | 35 | 180 | 121 |
Total other expense, net | (2,342) | (3,423) | (6,589) | (10,293) |
Income before provision for income taxes | 3,892 | 3,663 | 8,388 | 7,023 |
Net income | 3,892 | 3,663 | 8,388 | 7,023 |
Guarantor Subsidiaries [Member] | Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 7,360 | 6,769 | 20,589 | 19,884 |
Guarantor Subsidiaries [Member] | Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 3,251 | 3,505 | 9,027 | 9,221 |
Guarantor Subsidiaries [Member] | Other [Member] | ||||
Gross profit (loss): | ||||
Gross profit (loss) | (1) | 86 | (9) | |
Guarantor Subsidiaries [Member] | Equipment Rentals [Member] | ||||
Revenues: | ||||
Revenues | 22,225 | 21,287 | 59,096 | 56,802 |
Gross profit (loss): | ||||
Gross profit (loss) | 11,614 | 11,013 | 29,480 | 27,697 |
Guarantor Subsidiaries [Member] | New Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 7,654 | 9,241 | 27,386 | 18,808 |
Cost of revenues: | ||||
Cost of revenues | 6,941 | 8,431 | 24,558 | 16,947 |
Gross profit (loss): | ||||
Gross profit (loss) | 713 | 810 | 2,828 | 1,861 |
Guarantor Subsidiaries [Member] | Used Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 3,852 | 6,987 | 12,458 | 17,041 |
Cost of revenues: | ||||
Cost of revenues | 2,602 | 4,761 | 8,186 | 11,089 |
Gross profit (loss): | ||||
Gross profit (loss) | 1,250 | 2,226 | 4,272 | 5,952 |
Guarantor Subsidiaries [Member] | Parts Sales [Member] | ||||
Revenues: | ||||
Revenues | 3,528 | 3,539 | 10,635 | 10,884 |
Cost of revenues: | ||||
Cost of revenues | 2,487 | 2,551 | 7,524 | 7,789 |
Gross profit (loss): | ||||
Gross profit (loss) | 1,041 | 988 | 3,111 | 3,095 |
Guarantor Subsidiaries [Member] | Services Revenues [Member] | ||||
Gross profit (loss): | ||||
Gross profit (loss) | $ 1,624 | $ 1,750 | $ 4,916 | $ 4,875 |
Condensed Consolidating Finan43
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||||
Net income | $ 11,665 | $ 14,772 | $ 24,742 | $ 32,338 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization of property and equipment | 20,321 | 17,895 | ||
Depreciation of rental equipment | 120,700 | 121,121 | ||
Amortization of deferred financing costs | 789 | 774 | ||
Accretion of note discount, net of premium amortization | 124 | 126 | ||
Provision for losses on accounts receivable | 2,723 | 2,446 | ||
Provision for inventory obsolescence | 82 | 201 | ||
Change in deferred income taxes | 17,193 | 22,514 | ||
Stock-based compensation expense | 2,308 | 2,036 | ||
Gain from sales of property and equipment, net | (927) | (339) | (2,301) | (1,769) |
Gain from sales of rental equipment, net | (21,450) | (24,962) | ||
Changes in operating assets and liabilities: | ||||
Receivables | 5,772 | 15,282 | ||
Inventories | (15,220) | (18,673) | ||
Prepaid expenses and other assets | 1,160 | (3,702) | ||
Accounts payable | (18,549) | 599 | ||
Manufacturer flooring plans payable | (24,207) | (33,696) | ||
Accrued expenses payable and other liabilities | (4,436) | (11,484) | ||
Deferred compensation payable | (348) | 51 | ||
Net cash provided by operating activities | 109,403 | 121,097 | ||
Cash flows from investing activities: | ||||
Purchases of property and equipment | (16,753) | (22,317) | ||
Purchases of rental equipment | (152,644) | (137,184) | ||
Proceeds from sales of property and equipment | 2,689 | 2,582 | ||
Proceeds from sales of rental equipment | 62,259 | 68,187 | ||
Net cash used in investing activities | (104,449) | (88,732) | ||
Cash flows from financing activities: | ||||
Purchases of treasury stock | (546) | (470) | ||
Borrowings on senior secured credit facility | 767,550 | 768,572 | ||
Payments on senior secured credit facility | (742,645) | (778,903) | ||
Dividends paid | (29,287) | (27,370) | ||
Payments of deferred financing costs | (725) | |||
Payments of capital lease obligations | (151) | (143) | ||
Net cash used in financing activities | (5,079) | (39,039) | ||
Net decrease in cash | (125) | (6,674) | ||
Cash, beginning of period | 7,159 | 15,861 | ||
Cash, end of period | 7,034 | 9,187 | 7,034 | 9,187 |
H & E Equipment Services [Member] | ||||
Cash flows from operating activities: | ||||
Net income | 11,665 | 14,772 | 24,742 | 32,338 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization of property and equipment | 18,022 | 15,710 | ||
Depreciation of rental equipment | 100,111 | 101,237 | ||
Amortization of deferred financing costs | 789 | 774 | ||
Accretion of note discount, net of premium amortization | 124 | 126 | ||
Provision for losses on accounts receivable | 2,507 | 2,236 | ||
Provision for inventory obsolescence | 82 | 201 | ||
Change in deferred income taxes | 17,193 | 22,514 | ||
Stock-based compensation expense | 2,308 | 2,036 | ||
Gain from sales of property and equipment, net | (782) | (232) | (1,948) | (1,306) |
Gain from sales of rental equipment, net | (17,219) | (19,366) | ||
Equity in earnings of guarantor subsidiaries | (3,892) | (3,663) | (8,388) | (7,023) |
Changes in operating assets and liabilities: | ||||
Receivables | 8,759 | 8,097 | ||
Inventories | (12,001) | (16,696) | ||
Prepaid expenses and other assets | 1,188 | (3,652) | ||
Accounts payable | (18,684) | 412 | ||
Manufacturer flooring plans payable | (24,377) | (33,696) | ||
Accrued expenses payable and other liabilities | (5,275) | (12,276) | ||
Deferred compensation payable | (348) | 51 | ||
Net cash provided by operating activities | 87,585 | 91,717 | ||
Cash flows from investing activities: | ||||
Purchases of property and equipment | (14,143) | (19,997) | ||
Purchases of rental equipment | (112,346) | (104,735) | ||
Proceeds from sales of property and equipment | 2,218 | 2,050 | ||
Proceeds from sales of rental equipment | 50,528 | 53,784 | ||
Investment in subsidiaries | (9,046) | 9,398 | ||
Net cash used in investing activities | (82,789) | (59,500) | ||
Cash flows from financing activities: | ||||
Purchases of treasury stock | (546) | (470) | ||
Borrowings on senior secured credit facility | 767,550 | 768,572 | ||
Payments on senior secured credit facility | (742,645) | (778,903) | ||
Dividends paid | (29,280) | (27,365) | ||
Payments of deferred financing costs | (725) | |||
Net cash used in financing activities | (4,921) | (38,891) | ||
Net decrease in cash | (125) | (6,674) | ||
Cash, beginning of period | 7,159 | 15,861 | ||
Cash, end of period | 7,034 | 9,187 | 7,034 | 9,187 |
Guarantor Subsidiaries [Member] | ||||
Cash flows from operating activities: | ||||
Net income | 3,892 | 3,663 | 8,388 | 7,023 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization of property and equipment | 2,299 | 2,185 | ||
Depreciation of rental equipment | 20,589 | 19,884 | ||
Provision for losses on accounts receivable | 216 | 210 | ||
Gain from sales of property and equipment, net | (145) | (107) | (353) | (463) |
Gain from sales of rental equipment, net | (4,231) | (5,596) | ||
Changes in operating assets and liabilities: | ||||
Receivables | (2,987) | 7,185 | ||
Inventories | (3,219) | (1,977) | ||
Prepaid expenses and other assets | (28) | (50) | ||
Accounts payable | 135 | 187 | ||
Manufacturer flooring plans payable | 170 | |||
Accrued expenses payable and other liabilities | 839 | 792 | ||
Net cash provided by operating activities | 21,818 | 29,380 | ||
Cash flows from investing activities: | ||||
Purchases of property and equipment | (2,610) | (2,320) | ||
Purchases of rental equipment | (40,298) | (32,449) | ||
Proceeds from sales of property and equipment | 471 | 532 | ||
Proceeds from sales of rental equipment | 11,731 | 14,403 | ||
Net cash used in investing activities | (30,706) | (19,834) | ||
Cash flows from financing activities: | ||||
Dividends paid | (7) | (5) | ||
Payments of capital lease obligations | (151) | (143) | ||
Capital contributions | 9,046 | (9,398) | ||
Net cash used in financing activities | 8,888 | (9,546) | ||
Elimination [Member] | ||||
Cash flows from operating activities: | ||||
Net income | (3,892) | (3,663) | (8,388) | (7,023) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in earnings of guarantor subsidiaries | $ 3,892 | $ 3,663 | 8,388 | 7,023 |
Cash flows from investing activities: | ||||
Investment in subsidiaries | 9,046 | (9,398) | ||
Net cash used in investing activities | 9,046 | (9,398) | ||
Cash flows from financing activities: | ||||
Capital contributions | (9,046) | 9,398 | ||
Net cash used in financing activities | $ (9,046) | $ 9,398 |