Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 19, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | HEES | |
Entity Registrant Name | H&E Equipment Services, Inc. | |
Entity Central Index Key | 1,339,605 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 35,685,152 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash | $ 9,579 | $ 165,878 |
Receivables, net of allowance for doubtful accounts of $3,392 and $3,774, respectively | 175,736 | 176,081 |
Inventories, net of reserves for obsolescence of $718 and $947, respectively | 162,773 | 75,004 |
Prepaid expenses and other assets | 9,671 | 9,172 |
Rental equipment, net of accumulated depreciation of $538,133 and $495,940, respectively | 1,090,380 | 904,824 |
Property and equipment, net of accumulated depreciation and amortization of $139,784 and $131,500, respectively | 112,076 | 101,789 |
Deferred financing costs, net of accumulated amortization of $13,342 and $12,946, respectively | 3,375 | 3,772 |
Intangible assets, net | 30,215 | |
Goodwill | 105,843 | 31,197 |
Total assets | 1,699,648 | 1,467,717 |
Liabilities: | ||
Amounts due on senior secured credit facility | 132,663 | |
Accounts payable | 154,551 | 89,781 |
Manufacturer flooring plans payable | 28,760 | 22,002 |
Accrued expenses payable and other liabilities | 69,917 | 65,095 |
Dividends payable | 76 | 150 |
Senior unsecured notes, net of unaccreted discount of $3,406 and $3,644 and deferred financing costs of $2,206 and $2,267, respectively | 944,388 | 944,088 |
Capital leases payable | 829 | 1,486 |
Deferred income taxes | 137,162 | 126,419 |
Deferred compensation payable | 1,946 | 1,903 |
Total liabilities | 1,470,292 | 1,250,924 |
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; 39,662,340 and 39,623,773 shares issued at June 30, 2018 and December 31, 2017, respectively, and 35,685,152 and 35,646,585 shares outstanding at June 30, 2018 and December 31, 2017, respectively | 396 | 395 |
Additional paid-in capital | 229,041 | 227,070 |
Treasury stock at cost, 3,977,188 shares of common stock held at June 30, 2018 and December 31, 2017 | (61,749) | (61,749) |
Retained earnings | 61,668 | 51,077 |
Total stockholders’ equity | 229,356 | 216,793 |
Total liabilities and stockholders’ equity | $ 1,699,648 | $ 1,467,717 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivables | $ 3,392 | $ 3,774 |
Reserves for obsolescence inventories | 718 | 947 |
Accumulated depreciation, rental equipment | 538,133 | 495,940 |
Accumulated depreciation and amortization, property and equipment | 139,784 | 131,500 |
Accumulated amortization, deferred financing costs | 13,342 | 12,946 |
Unaccreted discount, net | 3,406 | 3,644 |
Deferred financing costs | $ 2,206 | $ 2,267 |
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 | 39,662,340 | 39,623,773 |
Common stock, shares outstanding | 35,685,152 | 35,646,585 |
Treasury stock, shares | 3,977,188 | 3,977,188 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues: | ||||
Revenues | $ 310,364 | $ 249,363 | $ 570,846 | $ 476,191 |
Cost of revenues: | ||||
Cost of revenues | 202,261 | 162,023 | 370,158 | 311,179 |
Gross profit | 108,103 | 87,340 | 200,688 | 165,012 |
Selling, general and administrative expenses | 69,046 | 59,807 | 134,926 | 117,125 |
Merger costs | 68 | 220 | ||
Gain on sales of property and equipment, net | 4,114 | 1,135 | 4,887 | 2,106 |
Income from operations | 43,103 | 28,668 | 70,429 | 49,993 |
Other income (expense): | ||||
Interest expense | (15,693) | (13,373) | (30,346) | (26,605) |
Other, net | 459 | 373 | 854 | 810 |
Total other expense, net | (15,234) | (13,000) | (29,492) | (25,795) |
Income before provision for income taxes | 27,869 | 15,668 | 40,937 | 24,198 |
Provision for income taxes | 7,098 | 5,790 | 10,688 | 8,930 |
Net income | $ 20,771 | $ 9,878 | $ 30,249 | $ 15,268 |
Net income per common share: | ||||
Basic | $ 0.58 | $ 0.28 | $ 0.85 | $ 0.43 |
Diluted | $ 0.58 | $ 0.28 | $ 0.84 | $ 0.43 |
Weighted average common shares outstanding: | ||||
Basic | 35,634 | 35,473 | 35,613 | 35,469 |
Diluted | 35,906 | 35,631 | 35,893 | 35,626 |
Dividends declared per common share outstanding | $ 0.275 | $ 0.275 | $ 0.55 | $ 0.55 |
Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | $ 51,171 | $ 41,838 | $ 97,640 | $ 82,741 |
Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 22,073 | 20,162 | 43,345 | 38,536 |
Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 291,577 | 233,814 | 535,471 | 446,348 |
Cost of revenues: | ||||
Gross profit | 107,652 | 87,308 | 200,356 | 165,888 |
Operating Segments [Member] | Equipment Rentals [Member] | ||||
Revenues: | ||||
Revenues | 143,829 | 118,370 | 273,190 | 225,687 |
Cost of revenues: | ||||
Gross profit | 70,585 | 56,370 | 132,205 | 104,410 |
Operating Segments [Member] | Equipment Rentals [Member] | Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 51,171 | 41,838 | 97,640 | 82,741 |
Operating Segments [Member] | Equipment Rentals [Member] | Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 22,073 | 20,162 | 43,345 | 38,536 |
Operating Segments [Member] | New Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 68,539 | 45,669 | 115,032 | 79,943 |
Cost of revenues: | ||||
Cost of revenues | 61,226 | 40,450 | 102,071 | 70,831 |
Gross profit | 7,313 | 5,219 | 12,961 | 9,112 |
Operating Segments [Member] | Used Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 32,140 | 24,106 | 56,993 | 52,969 |
Cost of revenues: | ||||
Cost of revenues | 21,772 | 17,002 | 38,709 | 36,863 |
Gross profit | 10,368 | 7,104 | 18,284 | 16,106 |
Operating Segments [Member] | Parts Sales [Member] | ||||
Revenues: | ||||
Revenues | 30,281 | 29,725 | 58,432 | 56,725 |
Cost of revenues: | ||||
Cost of revenues | 21,931 | 21,722 | 42,548 | 41,158 |
Gross profit | 8,350 | 8,003 | 15,884 | 15,567 |
Operating Segments [Member] | Services Revenues [Member] | ||||
Revenues: | ||||
Revenues | 16,788 | 15,944 | 31,824 | 31,024 |
Cost of revenues: | ||||
Cost of revenues | 5,752 | 5,332 | 10,802 | 10,331 |
Gross profit | 11,036 | 10,612 | 21,022 | 20,693 |
Other [Member] | ||||
Revenues: | ||||
Revenues | 18,787 | 15,549 | 35,375 | 29,843 |
Cost of revenues: | ||||
Cost of revenues | 18,336 | 15,517 | 35,043 | 30,719 |
Gross profit | $ 451 | $ 32 | $ 332 | $ (876) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 30,249 | $ 15,268 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 12,085 | 12,115 |
Depreciation of rental equipment | 97,640 | 82,741 |
Amortization of intangible assets | 1,485 | |
Amortization of deferred financing costs | 557 | 526 |
Accretion of note discount, net of premium amortization | 239 | 84 |
Provision for losses on accounts receivable | 1,679 | 1,858 |
Provision for inventory obsolescence | 71 | 71 |
Change in deferred income taxes | 10,743 | 9,968 |
Stock-based compensation expense | 2,081 | 1,894 |
Gain from sales of property and equipment, net | (4,887) | (2,106) |
Gain from sales of rental equipment, net | (18,006) | (15,349) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Receivables | 9,121 | (3,274) |
Inventories | (103,631) | (49,585) |
Prepaid expenses and other assets | (128) | (1,911) |
Accounts payable | 59,705 | 41,621 |
Manufacturer flooring plans payable | 6,758 | (4,956) |
Accrued expenses payable and other liabilities | (389) | 3,715 |
Deferred compensation payable | 43 | 27 |
Net cash provided by operating activities | 105,415 | 92,707 |
Cash flows from investing activities: | ||
Acquisition of businesses, net of cash acquired | (196,027) | |
Purchases of property and equipment | (19,561) | (12,137) |
Purchases of rental equipment | (217,828) | (112,946) |
Proceeds from sales of property and equipment | 6,687 | 3,137 |
Proceeds from sales of rental equipment | 52,177 | 46,013 |
Net cash used in investing activities | (374,552) | (75,933) |
Cash flows from financing activities: | ||
Borrowings on senior secured credit facility | 735,775 | 484,252 |
Payments on senior secured credit facility | (603,112) | (482,042) |
Payments of deferred financing costs | (97) | |
Dividends paid | (19,619) | (19,565) |
Payments of capital lease obligations | (109) | (107) |
Net cash provided by (used in) financing activities | 112,838 | (17,462) |
Net decrease in cash | (156,299) | (688) |
Cash, beginning of period | 165,878 | 7,683 |
Cash, end of period | 9,579 | 6,995 |
Supplemental schedule of noncash investing and financing activities: | ||
Accrued acquisition purchase price consideration | 3,432 | |
Noncash asset purchases: | ||
Assets transferred from new and used inventory to rental fleet | 21,618 | 9,021 |
Purchases of property and equipment included in accrued expenses payable and other liabilities | 24 | (173) |
Cash paid during the period for: | ||
Interest | 30,040 | 25,992 |
Income taxes paid, net of refunds received | $ 1,254 | $ 446 |
Organization and Nature of Oper
Organization and Nature of Operations | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Nature of Operations | (1) Organization and Nature of Operations Basis of Presentation Our condensed consolidated financial statements include the financial position and results of operations of H&E Equipment Services, Inc. and its wholly-owned subsidiaries H&E Finance Corp., GNE Investments, Inc., Great Northern Equipment, Inc., H&E California Holding, Inc., H&E Equipment Services (California), LLC and H&E Equipment Services (Mid-Atlantic), Inc., collectively referred to herein as “we” or “us” or “our” or the “Company.” The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such regulations. In the opinion of management, all adjustments (consisting of all normal and recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018, 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, 2017, from which the consolidated balance sheet amounts as of December 31, 2017 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 services support for four core categories of specialized equipment: (1) hi-lift or aerial work platform equipment; (2) cranes; (3) earthmoving equipment; and (4) industrial lift trucks. By providing equipment rental, sales, on-site parts, repair and maintenance functions under one roof, we are a one-stop provider for our customers’ varied equipment needs. This full service approach provides us with multiple points of customer contact, enables us to maintain a high quality rental fleet, as well as an effective distribution channel for fleet disposal and provides cross‑selling opportunities among our new and used equipment sales, rental, parts sales and services operations. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017. During the three and six month periods ended June 30, 2018, there were no significant changes to those accounting policies, other than those policies impacted by the new revenue recognition guidance and further described below in “Recent Accounting Pronouncements Adopted in the First Quarter of 2018”. 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 Pronouncements Not Yet Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases . Our operating leases under current guidance (Topic 840) include the real estate where all but 12 of our 89 branch locations are located as of June 30, 2018. Additionally, the Company leases numerous types of non-rental equipment. Given the size of our lease portfolio, we expect that the new standard will have a material effect on our consolidated balance sheets as a result of recognizing new right-of-use assets and lease liabilities for our existing operating leases. We have begun accumulating the information related to these leases but have not completed our comprehensive analysis of those leases and are unable to quantify the impact to our consolidated financial statements at this time. We are concurrently evaluating our internal processes and controls over financial reporting with respect to the impact that the new lease standard will have on our lease administration and financial reporting activities. We are also in the process of implementing a new software tool to help facilitate compliance with the new guidance. As mentioned in the Topic 606 discussion below, our equipment rental business involves rental agreements with customers whereby we are the lessor in the transaction and therefore, we believe that such transactions are subject to the pending lessor accounting guidance of Topic 842. While our evaluation of Topic 842 is ongoing with respect to our equipment rental activities, we have tentatively concluded that no significant changes are expected to the accounting for our rental equipment revenues, as substantially all of our rental agreements with customers will continue to be treated as operating leases under the new standard. Accordingly, we do not expect material changes to our related rental agreement accounting processes or internal controls upon adoption of ASU 2016-02. In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment Recent Accounting Pronouncements Adopted in Fiscal 2018 In August 2016, the FASB issued ASU 2016-15, “ Classification of Certain Cash Receipts and Cash Payments” , which aims to eliminate the diversity in the presentation of certain cash receipts and cash payments presented and classified in the statement of cash flows. The guidance addresses the following specific cash flow issues: (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transitions and (8) separately identifiable cash flows and application of predominance principle. We adopted this guidance effective January 1, 2018 and it had no impact to our condensed consolidated statement of cash flows for the periods presented in this Quarterly Report on Form 10-Q. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). Under this ASU and subsequently issued amendments, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflect the consideration we expect to be entitled to in exchange for those goods or services. Entities may use a full retrospective approach or report on the cumulative effect as of the date of adoption. We adopted this standard using the full retrospective transition method effective January 1, 2018. While the adoption of the new standard did not have an impact on our reported net income for the periods presented in this quarterly report on Form 10-Q, approximately $1.8 million and $3.4 million of revenues that were previously classified in Other Revenues have been reclassified to Parts Revenues for the three and six month periods ended June 30, 2018, respectively. These revenues relate to freight income associated with our parts transactions, and such income was not deemed to be a separate performance obligation under the new guidance. Accordingly, we also reclassified $1.4 million and $2.6 million of associated freight costs related to these parts transactions from Other Cost of Revenues to Parts Costs of Revenues for the three and six months ended June 30, 2018, respectively. We have recast our results for the prior year three and six month periods ended June 30, 2017 as shown in the tables below (amounts in thousands). Three Months Ended June 30, 2017 Statement of Income: As Previously Reported Adjustments Current Presentation Revenues: Equipment rentals $ 118,370 $ ─ $ 118,370 New equipment sales 45,669 ─ 45,669 Used equipment sales 24,106 ─ 24,106 Parts sales 27,969 1,756 29,725 Services revenues 15,944 ─ 15,944 Other 17,305 (1,756) 15,549 Total revenues 249,363 ─ 249,363 Cost of revenues: Rental depreciation 41,838 ─ 41,838 Rental expense 20,162 ─ 20,162 New equipment sales 40,450 ─ 40,450 Used equipment sales 17,002 ─ 17,002 Parts sales 20,358 1,364 21,722 Services revenues 5,332 ─ 5,332 Other 16,881 (1,364) 15,517 Total cost of revenues 162,023 ─ 162,023 Gross profit $ 87,340 $ ─ $ 87,340 Six Months Ended June 30, 2017 Statement of Income: As Previously Reported Adjustments Current Presentation Revenues: Equipment rentals $ 225,687 $ ─ $ 225,687 New equipment sales 79,943 ─ 79,943 Used equipment sales 52,969 ─ 52,969 Parts sales 53,300 3,425 56,725 Services revenues 31,024 ─ 31,024 Other 33,268 (3,425) 29,843 Total revenues 476,191 ─ 476,191 Cost of revenues: Rental depreciation 82,741 ─ 82,741 Rental expense 38,536 ─ 38,536 New equipment sales 70,831 ─ 70,831 Used equipment sales 36,863 ─ 36,863 Parts sales 38,571 2,587 41,158 Services revenues 10,331 ─ 10,331 Other 33,306 (2,587) 30,719 Total cost of revenues 311,179 ─ 311,179 Gross profit $ 165,012 $ ─ $ 165,012 Revenue Recognition As further discussed below, upon the adoption of Topic 606 on January 1, 2018, we recognize revenue in accordance with two different accounting standards: 1) Topic 606 and 2) Topic 840 (which addresses lease accounting). As discussed above in “Pronouncements Not Yet Adopted”, Topic 842 will supersede Topic 840 upon our adoption of Topic 842 on January 1, 2019. Under Topic 606, revenue from contracts with customers is measured based on the consideration specified in the contract with the customer, and excludes any sales incentives and amounts collected on behalf of third parties. A performance obligation is a promise in a contract to transfer a distinct good or service to a customer. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for such products or services. Nature of goods and services The tables below summarizes for the three and six months ended June 30, 2018 our revenue by type and by the applicable accounting standard (amounts in thousands). Three Months Ended June 30, 2018 2017 Topic 840 Topic 606 Total Topic 840 Topic 605 Total Rental revenues $ 143,435 $ 394 $ 143,829 $ 117,850 $ 520 $ 118,370 New equipment sales ─ 68,539 68,539 ─ 45,669 45,669 Used equipment sales ─ 32,140 32,140 ─ 24,106 24,106 Parts sales ─ 30,281 30,281 ─ 29,725 29,725 Service revenues ─ 16,788 16,788 ─ 15,944 15,944 Other 5,362 13,425 18,787 4,313 11,236 15,549 Total revenues $ 148,797 $ 161,567 $ 310,364 $ 122,163 $ 127,200 $ 249,363 Six Months Ended June 30, 2018 2017 Topic 840 Topic 606 Total Topic 840 Topic 605 Total Rental revenues $ 272,275 $ 915 $ 273,190 $ 224,633 $ 1,054 $ 225,687 New equipment sales ─ 115,032 115,032 ─ 79,943 79,943 Used equipment sales ─ 56,993 56,993 ─ 52,969 52,969 Parts sales ─ 58,432 58,432 ─ 56,725 56,725 Service revenues ─ 31,824 31,824 ─ 31,024 31,024 Other 9,942 25,433 35,375 8,151 21,692 29,843 Total revenues $ 282,217 $ 288,629 $ 570,846 $ 232,784 $ 243,407 $ 476,191 Revenues by reporting segment are presented in note 10 of our condensed consolidated financial statements, using the revenue captions reflected in our condensed consolidated statements of income. We believe that the disaggregation of our revenues from contracts to customers as reflected above, coupled with further discussion below and the reporting segment in note 10, depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. Lease revenues (Topic 840) As discussed above in “Pending Accounting Pronouncements Not Yet Adopted”, we expect to adopt Topic 842 on January 1, 2019. While our review of the revenue accounting under Topic 842 is ongoing, we have tentatively concluded that no significant changes are expected to our rental revenue accounting upon adoption of Topic 842. Rental Revenues: Owned equipment rentals represent revenues from renting equipment. We account for these rentals as operating leases. We recognize revenue from equipment rentals in the period earned, regardless of the timing of billing to customers. A rental contract includes rates for daily, weekly or monthly use, and rental revenues are earned on a daily basis as rental contracts remain outstanding. Because the rental contracts can extend across multiple reporting periods, we record unbilled rental revenues and deferred rental revenues at the end of reporting periods so rental revenues earned is appropriately stated for the periods presented. Other: Other rental revenues primarily represent services performed by us in connection with the rental of equipment to a customer, such as fuel consumption charges and damage waiver insurance. Fuel consumption charges are recognized upon return of the rental equipment when fuel consumption by the customer, if any, can be measured. Income from damage waiver insurance policies are recognized over the period the equipment is rented. Revenues from contracts with customers (Topic 606) The accounting for the types of revenues accounted for pursuant to Topic 606 are discussed below. Substantially all of our revenues under Topic 606 are recognized at a point-in-time rather than over time. Rental revenues: These revenues represent revenues for services performed by us in connection with the rental of equipment and are comprised of customer training fees on rented equipment and erection and dismantling services on rental equipment. Revenues for these services are recognized upon completion of such services. New equipment sales: Revenues from the sales of new equipment are recognized at the time of delivery to, or pick-up by, the customer, which is when the customer obtains control of the promised good. Used equipment sales: Revenues from the sales of used equipment are recognized at the time of delivery to, or pick-up by, the customer, which is when the customer obtains control of the promised good. Parts sales: Revenues from the sales of equipment parts are recognized at the time of pick-up by the customer for parts counter sales transactions. For parts that are shipped to a customer, we elected to use a practical expedient of Topic 606 and treat such shipping activities as fulfillment costs, thereby recognizing revenues at the time of shipment. Services revenues: We derive our services primarily from maintenance and repair services to customers for their owned equipment. We recognize services revenues at the time such services are completed, which is when the customer obtains control of the promised service. Other revenues : Other revenues relate primarily to hauling fees for transporting rental equipment to and from the customer and ancillary charges associated with maintenance and repair services. Such revenues are recognized at the time the services are completed. Receivables and contract assets and liabilities We manage credit risk associated with our accounts receivables at the customer level. Because the same customers typically generate the revenues that are accounted for under both Topic 606 and Topic 840, the discussions below on credit risk and our allowances for doubtful accounts address our total revenues from Topic 606 (Topic 605 for 2017) and Topic 840. We believe concentration of credit risk with respect to our receivables is limited because a large number of geographically diverse customers makes up our customer base. Our largest customer accounted for less than one percent of total revenues for the three and six months ended June 30, 2018, and for each of the last three full years. No single customer accounted for more than 10% of our revenues on an overall or segment basis for any of the periods presented in this Quarterly Report on Form 10-Q. We manage credit risk through credit approvals, credit limits and other monitoring procedures. We maintain an allowance for doubtful accounts that reflects our estimate of the amount of our receivables that we will be unable to collect. We develop our estimate of this allowance based on our historical experience with specific customers, our understanding of our current economic circumstances and our own judgment as to the likelihood of ultimate payment. Our largest exposure to doubtful accounts is in our rental operations. We perform credit evaluations of customers and establish credit limits based on reviews of our customers’ current credit information and payment histories. We believe our credit risk is somewhat mitigated by our geographically diverse customer base and our credit evaluation procedures. During the year, we write-off customer account balances when we have exhausted reasonable collection efforts and determined that the likelihood of collection is remote. Such write-offs are charged against our allowance for doubtful accounts. Bad debt expense as a percentage of total revenues for the six month periods ended June 30, 2018 and 2017 were approximately 0.3% and 0.4%, respectively. The actual rate of future credit losses, however, may not be similar to past experience. Our estimate of doubtful accounts could change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease our allowance for doubtful accounts. We do not have material contract assets, impairment losses associated therewith, or material contract liabilities associated with contracts with customers. Our contracts with customers do not generally result in material amounts billed to customers in excess of recognizable revenue. We did not recognize material revenue during the three and six months ended June 30, 2018 or 2017 that was included in the contract liability balance as of the beginning of such periods. Performance obligations Most of our Topic 606 revenue is recognized at a point-in-time, rather than over time. Accordingly, in any particular period, we do not generally recognize a significant amount of revenue from performance obligations satisfied (or partially satisfied) in previous periods, and the amount of such revenue recognized during the three and six months ended June 30, 2018 and 2017 was not material. We also do not expect to recognize material revenue in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2018. Payment terms Our Topic 606 revenues do not include material amounts of variable consideration. Our payment terms vary by the type and location of our customer and the products or services offered. The time between invoicing and when payment is due is not significant. Our contracts do not generally include a significant financing component. Our contracts with customers do not generally result in significant obligations associated with returns, refunds or warranties. See above for a discussion of how we manage credit risk. Sales tax amounts collected from customers are recorded on a net basis. Contract costs We do not recognize any assets associated with the incremental costs of obtaining a contract with a customer (for example, a sales commission) that we expect to recover. Most of our revenue is recognized at a point-in-time or over a period of one year or less, and we use the practical expedient that allows us to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. Contract estimates and judgments Our revenues accounted for under Topic 606 generally do not require significant estimates or judgments as the transaction price is generally fixed and stated on our contracts. Our contracts generally do not include multiple performance obligations, and accordingly do not generally require estimates of the standalone selling price for each performance obligation. Also, our revenues do not include material amounts of variable consideration. Substantially all of our revenues are recognized at a point-in-time and the timing of the satisfaction of the applicable performance obligations is readily determinable. As noted above, our Topic 606 revenues are generally recognized at the time of delivery to, or pick-up by, the customer. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | (3) Acquisitions Contractors Equipment Center (“CEC”) On January 1, 2018, we completed the acquisition of CEC, a non-residential construction focused equipment rental company with three branches located in the greater Denver, Colorado area. CEC had approximately 100 employees and approximately $84 million of rental assets at original equipment cost as of December 31, 2017. CEC also had total revenues of approximately $34 million in the year ended December 31, 2017. The acquisition is expected to significantly expand our presence in the Denver area and surrounding markets. The aggregate consideration paid to the pre-acquisition owners of CEC was approximately $132.4 million. The acquisition and related fees and expenses were funded through available cash. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date. We do not expect any further changes to these assigned values. $’s in thousands Cash $ 1,244 Accounts receivable, net of allowance for doubtful accounts (1) 7,583 Inventory 504 Prepaid expenses and other assets 324 Rental equipment 55,342 Property and equipment 2,700 Intangible assets (2) 21,500 Total identifiable assets acquired 89,197 Accounts payable (1,023) Accrued expenses payable and other liabilities (876) Total liabilities assumed (1,899) Net identifiable assets acquired 87,298 Goodwill (3) 45,092 Net assets acquired $ 132,390 (1) The fair value of accounts receivable acquired was approximately $7.6 million and the gross contractual amount was $7.7 million. (2) The following table reflects the estimated fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments: Fair Value (amounts in thousands) Life (years) Customer relationships $ 21,000 10 Tradenames 300 1 Leasehold interests 200 10 $ 21,500 (3) The analysis of assigning the $45.1 million goodwill among our six goodwill reporting units has not been finalized. The level of goodwill that resulted from the CEC acquisition is primarily reflective of CEC’s going-concern value, the value of CEC’s assembled workforce, new customer relationships expected to arise from the acquisition and expected synergies from combining operations. We currently expect the goodwill recognized to be 100% deductible for income tax purposes. Total CEC acquisition costs were $0.9 million, of which approximately $0.2 million was incurred in the three and six month periods ended June 30, 2018. Total revenues attributable to CEC since the acquisition were $9.8 million and $21.5 million for the three and six month periods ended June 30 2018. Estimated net income attributable to CEC since the acquisition was $1.0 million, or $0.03 per share, for the three month period ended June 30, 2018 and $2.6 million, or $0.07 per share, for the six month period ended June 30, 2018. Rental, LLC (dba “Rental Inc.”) On April 1, 2018, we completed the acquisition of Rental Inc., a non-residential equipment rental and distribution company with five branches located in Alabama, Florida and Western Georgia. Rental Inc. had approximately 65 employees and approximately $35 million of rental assets at original equipment costs as of March 31, 2018. The acquisition is expected to expand our presence in the surrounding market. The aggregate consideration paid to the owners of Rental Inc. was approximately $68.6 million. The acquisition and related fees and expenses were funded through available cash and from borrowings under our Senior Secured Credit Facility. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the acquisition date. The amounts presented here are preliminary and are subject to change. However, we do not expect material changes to these assigned values. $’s in thousands Cash $ 260 Accounts receivable, net of allowance for doubtful accounts (1) 2,873 Inventory 5,324 Prepaid expenses and other assets 47 Rental equipment 22,578 Property and equipment 1,935 Intangible assets (2) 10,200 Total identifiable assets acquired 43,217 Accounts payable (439) Manufacturer flooring plans payable (3,293) Accrued expenses payable and other liabilities (469) Total liabilities assumed (4,201) Net identifiable assets acquired 39,016 Goodwill (3) 29,554 Net assets acquired $ 68,570 (1) The fair value of accounts receivables acquired was approximately $2.9 million and the gross contractual amount was $3.1 million. (2) The following table reflects the estimated fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments: Fair Value (amounts in thousands) Life (years) Customer relationships $ 10,000 10 Tradenames 200 1 $ 10,200 (3) The analysis of assigning the $29.6 million goodwill among our six goodwill reporting units has not been finalized. The level of goodwill that resulted from the CEC acquisition is primarily reflective of Rental Inc.’s going-concern value, the value of Rental Inc.’s assembled workforce, new customer relationships expected to arise from the acquisition and expected synergies from combining operations. We currently expect the goodwill recognized to be 100% deductible for income tax purposes. Total Rental Inc. acquisition costs were $0.2 million, of which approximately $0.1 million was incurred in the three and six month periods ended June 30, 2018. Total revenues attributable to Rental Inc. since the acquisition were $7.6 million for the three and six month periods ended June 30 2018. Estimated net income attributable to Rental Inc. since the acquisition was $0.1 million, or $0.00 per share, for the three and six month periods ended June 30, 2018. Pro forma financial information We completed the CEC acquisition on January 1, 2018. Therefore, the operating results of CEC are included in our reported condensed consolidated statements of income for the full three and six month periods ended June 30, 2018. We completed the Rental Inc. acquisition on April 1, 2018. Therefore, the operating results of Rental Inc. are only included in our reported condensed consolidated statements of income for the full three month period ended June 30, 2018. The pro forma information below gives effect to the CEC and Rental Inc. acquisitions as if they had been completed on January 1, 2017 (the “pro forma acquisition date”). The pro forma information is not necessarily indicative of our results of operations had the acquisitions been completed on the above date, nor is it necessarily indicative of our future results. The pro forma information does not reflect any cost savings from operating efficiencies or synergies that could result from the acquisitions, nor does it reflect additional revenue opportunities following the acquisition. The pro forma adjustments reflected in the table below are subject to change as additional analysis is performed. The tables below present unaudited pro forma consolidated statements of income information for the three and six month periods ended June 30, 2017 and the six month period ended June 30, 2018 as if CEC and Rental Inc. were included in our consolidated results for the entire periods presented. (amounts in thousands, except per share data) Three Month Period Ended June 30, 2017 H&E CEC Rental Inc. Total Total revenues $249,363 $8,140 $8,979 $266,482 Pretax income 15,668 1,448 2,105 19,221 Pro forma adjustments to pretax income: Impact of fair value mark-ups/useful life changes on depreciation (1) — (809) (738) (1,547) Intangible asset amortization (2) — (705) (275) (980) Interest expense (3) — — (475) (475) Elimination of historic interest expense (4) — 139 102 241 Pro forma pretax income 15,668 73 719 16,460 Income tax expense 5,790 27 262 6,079 Net income $ 9,878 $ 46 $ 457 $10,381 Net income per share – basic $ 0.28 $ — $0.01 $ 0.29 Net income per share - diluted $ 0.28 $ — $0.01 $ 0.29 (amounts in thousands, except per share data) Six Month Period Ended June 30, 2017 H&E CEC Rental Inc. Total Total revenues $476,191 $16,529 $17,225 $509,945 Pretax income 24,198 2,889 4,158 31,245 Pro forma adjustments to pretax income: Impact of fair value mark-ups/useful life changes on depreciation (1) — (1,712) (1,381) (3,093) Intangible asset amortization (2) — (1,410) (550) (1,960) Interest expense (3) — — (995) (995) Elimination of historic interest expense (4) — 263 202 465 Pro forma pretax income 24,198 30 1,434 25,662 Income tax expense 8,930 11 523 9,464 Net income $ 15,268 $ 19 $ 911 $16,198 Net income per share – basic $ 0.43 $ — $0.03 $ 0.46 Net income per share - diluted $ 0.43 $ — $0.03 $ 0.45 (amounts in thousands, except per share data) Six Month Period Ended June 30, 2018 H&E(5) Rental Inc.(6) Total Total revenues $ 570,846 $7,408 $578,254 Pretax income 40,937 1,020 41,957 Pro forma adjustments to pretax income: Impact of fair value mark-ups/useful life changes on depreciation (1) ─ (749) (749) Intangible asset amortization (2) ─ (275) (275) Interest expense (3) ─ (480) (480) Elimination of historic interest expense (4) ─ 82 82 Pro forma pretax income (loss) 40,937 (402) 40,535 Income tax expense (benefit) 10,688 (105) 10,583 Net income (loss) $ 30,249 $ (297) $ 29,952 Net income (loss) per share – basic $ 0.85 $(0.01) $ 0.84 Net income (loss) per share - diluted $ 0.84 $(0.01) $ 0.83 (1) Depreciation of rental equipment and non-rental equipment were adjusted for the fair value markups, and the changes in useful lives and salvage values of the equipment acquired in the acquisitions. (2) Represents the amortization of the intangible assets acquired in the acquisitions. (3) A portion of the consideration paid for Rental Inc. was funded with borrowings from our senior secured credit facility. Interest expense was adjusted to reflect the additional debt resulting from the acquisition. (4) Historic debt of CEC and Rental Inc. that is not part of the combined entity was eliminated. (5) H&E represents consolidated operating results as presented in this Quarterly Report on Form 10-Q for the six month period ended June 30, 2018 and includes actual results for CEC for the six months ended June 30, 2018 and actual results for Rental Inc. for the three month period ended June 30, 2018. (6) Represents Rental Inc. pro forma operating results for the three month period ended March 31, 2018. We completed the Rental Inc. acquisition on April 1, 2018. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | (4) Fair Value of Financial Instruments Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The FASB fair value measurement guidance established a fair value hierarchy that prioritizes the inputs used to measure fair value. The three broad levels of the fair value hierarchy are as follows: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly Level 3 – Unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own assumptions The carrying value of financial instruments reported in the accompanying condensed consolidated balance sheets for cash, accounts receivable, accounts payable and accrued expenses payable and other liabilities approximate fair value due to the immediate or short-term nature or maturity of these financial instruments. The fair value of our letter of credit is based on fees currently charged for similar agreements. The carrying amounts and fair values of our other financial instruments subject to fair value disclosures as of June 30, 2018 and December 31, 2017 are presented in the table below (amounts in thousands) and have been calculated based upon market quotes and present value calculations based on market rates. June 30, 2018 Carrying Amount Fair Value Manufacturer flooring plans payable with interest computed at 4.50% (Level 3) $ 28,760 $ 24,492 Senior unsecured notes with interest computed at 5.625 (Level 1) 944,388 935,750 Capital leases payable with interest computed at 5.929% (Level 3) 829 704 Letter of credit (Level 3) — 116 December 31, 2017 Carrying Amount Fair Value Manufacturer flooring plans payable with interest computed at 4.50% (Level 3) $ 22,002 $ 18,737 Senior unsecured notes with interest computed at 5.625% (Level 1) 944,088 619,019 Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) 1,486 1,114 Letter of credit (Level 3) — 116 At December 31, 2017, the fair value of our senior unsecured notes due 2025 was based on the present value of the notes based on our incremental borrowing rate as these notes were not available (registered) on a bond trading market as of December 31, 2017. At June 30, 2018, the fair value of our senior unsecured notes due 2025 were based on quoted bond trading market prices of those notes. During the three and six month periods ended June 30, 2018 and 2017, there were no transfers of financial assets or liabilities in or out of Level 1, Level 2 or Level 3 of the fair value hierarchy. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | (5) Stockholders’ Equity The following table summarizes the activity in Stockholders’ Equity for the six month period ended June 30, 2018 (amounts in thousands, except share data): Common Stock Additional Retained Total Shares Issued Amount Paid-in Capital Treasury Stock Earnings (Deficit) Stockholders’ Equity Balances at December 31, 2017 39,623,773 $ 395 $ 227,070 $ (61,749 ) $ 51,077 $ 216,793 Stock-based compensation — — 2,081 — — 2,081 Cash dividends declared on common stock ($0.275 per share) — — — — (19,658 ) (19,658 ) Issuance of common stock, net of forfeitures 38,567 1 (110 ) — — (109 ) Net income — — — — 30,249 30,249 Balances at June 30, 2018 39,662,340 396 229,041 (61,749 ) 61,668 229,356 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | (6) Stock-Based Compensation We account for our stock-based compensation plans using the fair value recognition provisions of Accounting Standards Codification (“ASC”) 718, Stock Compensation Non-vested Stock The following table summarizes our non-vested stock activity for the six months ended June 30, 2018: Number of Shares Weighted Average Grant Date Fair Non-vested stock at December 31, 2017 445,964 $ 19.70 Granted 16,152 $ 39.53 Vested (56,834 ) $ 23.46 Forfeited (23,381 ) $ 18.03 Non-vested stock at June 30, 2018 381,901 $ 20.08 As of June 30, 2018, we had unrecognized compensation expense of approximately $3.3 million related to non-vested stock that we expect to be recognized over a weighted-average period of approximately 1.7 years. The following table summarizes compensation expense related to non-vested stock, which is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income for the three and six months ended June 30, 2018 and 2017 (amounts in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Compensation expense $ 762 $ 713 $ 2,081 $ 1,894 |
Income per Share
Income per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Income per Share | (7) Income per Share Income per common share for the three and six months ended June 30, 2018 and 2017 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 0.8% of total outstanding shares for each of the three months ended June 30, 2018 and 2017, and, consequently, was immaterial to the basic and diluted EPS calculations. Therefore, use of the two-class method had no impact on our basic and diluted EPS calculations for the periods presented. The following table sets forth the computation of basic and diluted net income per common share for the three and six months ended June 30, 2018 and 2017 (amounts in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Basic net income per share: Net income $ 20,771 $ 9,878 $ 30,249 $ 15,268 Weighted average number of common shares outstanding 35,634 35,473 35,613 35,469 Net income per share of common stock – basic $ 0.58 $ 0.28 $ 0.85 $ 0.43 Diluted net income per share: Net income $ 20,771 $ 9,878 $ 30,249 $ 15,268 Weighted average number of common shares outstanding 35,634 35,473 35,613 35,469 Effect of dilutive securities: Effect of dilutive non-vested restricted stock 272 158 280 157 Weighted average number of common shares outstanding – diluted 35,906 35,631 35,893 35,626 Net income per share of common stock – diluted $ 0.58 $ 0.28 $ 0.84 $ 0.43 Common shares excluded from the denominator as anti-dilutive: Non-vested restricted stock — — — — |
Senior Secured Credit Facility
Senior Secured Credit Facility | 6 Months Ended |
Jun. 30, 2018 | |
Secured Debt [Member] | |
Senior Secured Credit Facility | (8) Senior Secured Credit Facility We and our subsidiaries are parties to a $750.0 million Credit Facility with Wells Fargo Capital Finance, LLC (as successor to General Electric Capital Corporation) as administrative agent, and the lenders named therein. On December 22, 2017, we amended, extended and restated the Credit Facility by entering into the Fifth 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, Wells Fargo Capital Finance, LLC, as administrative agent, the other credit parties named therein, the lenders named therein, and the joint lead arrangers, joint book runners, co-syndication agents and documentation agent named therein. The Amended and Restated Credit Agreement, among other things, (i) extends the maturity date of the credit facility from May 21, 2019 to December 22, 2022, (ii) increases the commitments under the senior secured asset based revolver provided for therein from $602.5 million to $750 million, (iii) increases the uncommitted incremental revolving capacity from $150 million to $250 million, (iv) provides that the unused line fee margin will be either 0.375% or 0.25%, depending on the Average Revolver Usage (as defined in the Amended and Restated Credit Agreement) of the borrowers, (v) lowers the interest rate (a) in the case of base rate revolving loans, to the base rate plus an applicable margin of 0.50% to 1.00% depending on the Average Availability (as defined in the Amended and Restated Credit Agreement) and (b) in the case of LIBOR revolving loans, to LIBOR (as defined in the Amended and Restated Credit Agreement) plus an applicable margin of 1.50% to 2.00%, depending on the Average Availability, (vi) lowers the margin applicable to the letter of credit fee to between 1.50% and 2.00%, depending on the Average Availability, and (vii) permits, subject to certain conditions, an unlimited amount of Permitted Acquisitions, Restricted Payments and prepayments of Indebtedness (in each case, as defined in the Amended and Restated Credit Agreement). The Amended and Restated Credit Agreement continues to provide for, among other things, a $30 million letter of credit sub-facility, and a guaranty by certain of the Company’s subsidiaries of the obligations under the credit facility. In addition, the credit facility remains secured by substantially all of the assets of the Company and certain of its subsidiaries. As of June 30, 2018, we were in compliance with our financial covenants under the Amended and Restated Credit Agreement. At June 30, 2018, we had $132.7 borrowings outstanding under the Credit Facility and could borrow up to $609.6 million and remain in compliance with the debt covenants under the Company’s credit facility. At July 19, 2018, we had $592.9 million of available borrowings under our Credit Facility, net of a $7.7 million outstanding letter of credit. |
Senior Unsecured Notes
Senior Unsecured Notes | 6 Months Ended |
Jun. 30, 2018 | |
Senior Unsecured Notes [Member] | |
Debt Instrument [Line Items] | |
Senior Secured Credit Facility | (9) Senior Unsecured Notes On August 24, 2017, we completed an offering of $750 million aggregate principal amount of 5.6250% senior notes due 2025 (the “New Notes”) and the settlement of a cash tender offer (the “Tender Offer”) with respect to our 7% senior notes due 2022 (the “Old Notes”). Net proceeds, after deducting $10.3 million of estimated offering expenses, from the sale of the New Notes totaled approximately $739.7 million. We used a portion of the net proceeds from the sale of the New Notes to repurchase $329.7 million of aggregate principal amount of the Old Notes in early settlement of the Tender Offer, which the Company launched on August 17, 2017. Holders who tendered their Old Notes prior to the early tender deadline received $1,038.90 per $1,000 principal amount of Old Notes tendered, plus accrued and unpaid interest up to, but not including, the payment date of August 24, 2017. Effective as of August 24, 2017, we (i) provided notice of the redemption of all remaining Old Notes that were not validly tendered in the Tender Offer at the expiration time and (ii) satisfied and discharged the indenture governing the Old Notes in accordance with its terms. On September 25, 2017, we redeemed the remaining $300.3 million principal amount outstanding of the Old Notes at a redemption price equal to 103.50% of the principal amount thereof, plus accrued and unpaid interest up to, but not including, the date of redemption. The New Notes were issued at par and require semiannual interest payments on March 1st and September 1st of each year, commencing on March 1, 2018. No principal payments are due until maturity (September 1, 2025). The New Notes are redeemable, in whole or in part, at any time on or after September 1, 2020 at specified redemption prices plus accrued and unpaid interest to the date of redemption. We may redeem up to 40% of the aggregate principal amount of the New Notes before September 1, 2020 with the net cash proceeds from certain equity offerings. We may also redeem the New Notes prior to September 1, 2020 at a specified “make-whole” redemption price plus accrued and unpaid interest to the date of redemption. The New Notes rank equally in right of payment to all of our existing and future senior indebtedness and rank senior to any of our subordinated indebtedness. The New Notes are unconditionally guaranteed on a senior unsecured basis by all of our current and future significant domestic restricted subsidiaries. In addition, the New Notes are effectively subordinated to all of our and the guarantors’ existing and future secured indebtedness, including the Credit Facility, to the extent of the assets securing such indebtedness, and are structurally subordinated to all of the liabilities and preferred stock of any of our subsidiaries that do not guarantee the New Notes. If we experience a change of control, we will be required to offer to purchase the New Notes at a repurchase price equal to 101% of the principal amount, plus accrued and unpaid interest to the date of repurchase. The indenture governing the New Notes contains certain covenants that, among other things, limit our ability and the ability of our restricted subsidiaries to: (i) incur additional indebtedness, assume a guarantee or issue preferred stock; (ii) pay dividends or make other equity distributions or payments to or affecting our subsidiaries; (iii) purchase or redeem our capital stock; (iv) make certain investments; (v) create liens; (vi) sell or dispose of assets or engage in mergers or consolidations; (vii) engage in certain transactions with subsidiaries or affiliates; (viii) enter into sale-leaseback transactions; and (ix) engage in certain business activities. Each of the covenants is subject to exceptions and qualifications. As of December 31, 2017, we were in compliance with these covenants. On November 22, 2017, we closed on an offering of $200 million aggregate principal amount of 5.625% senior notes due 2025 (the “Add-on Notes”) in an unregistered offering through a private placement. The Add-on Notes were priced at 104.25% of the principal amount. Net proceeds from the offering of the Add-on Notes, including accrued interest from August 24, 2017 totaled approximately $209.2 million. The net proceeds of the offering, was used to repay indebtedness outstanding under the Company’s existing senior secured credit facility (the “Credit Facility”) and for the payment of fees and expenses related to the offering. The remainder of the net proceeds will be used for general corporate purposes and to fund potential acquisitions in connection with our ongoing strategy of acquiring rental companies to complement our existing business and footprint. The Add-on Notes were issued as additional notes under an indenture dated as of August 24, 2017, pursuant to which we previously issued the New Notes as described above. The Add-on Notes have identical terms to, rank equally with and form a part of a single class of securities with the New Notes. Pursuant to a registration rights agreement entered into between us, the guarantors of the New Notes and the initial purchasers of the New Notes, we agreed to make an offer to exchange (the “Exchange Offer”) the New Notes and guarantees for registered, publicly tradable notes and guarantees that have terms identical in all material respects to the New Notes (except that the exchange notes will not contain any transfer restrictions) within a certain period of time following the completion of the offering. On January 17, 2018, the Company filed a registration statement on Form S-4 with respect to an offer to exchange the New and Add-on Notes and guarantees for registered, publicly tradable notes and guarantees that have terms identical in all material respects to the New and Add-on Notes (except that the exchange notes do not contain any transfer restrictions). This exchange offer closed on March 27, 2018. The following table reconciles our Senior Unsecured Notes to our Condensed Consolidated Balance Sheets (amounts in thousands): Balance at December 31, 2016 $ 627,711 Accretion of discount on Old Notes through August 24, 2017 683 Amortization of note premium on Old Notes through August 24, 2017 (574 ) Amortization of deferred financing costs through August 24, 2017 153 Aggregate principal amount paid on Old Notes (630,000 ) Writeoff of unaccreted discount on Old Notes 5,294 Writeoff of unamortized premium on Old Notes (4,452 ) Writeoff of deferred financing costs on Old Notes 1,185 Aggregate principal amount issued on New Notes 950,000 Note discount and deferred transaction costs on New Notes (14,684 ) Note premium on New Notes 8,500 Accretion of discount on New Notes from August 24, 2017 through December 31, 2017 542 Amortization of note premium on New Notes from August 24, 2017 through December 31, 2017 (375 ) Amortization of deferred financing costs on New Notes August 24, 2017 through December 31, 2017 105 Balance at December 31, 2017 $ 944,088 Accretion of discount through June 30, 2018 770 Amortization of note premium through June 30, 2018 (531 ) Additional deferred financing costs on New Notes (97 ) Amortization of deferred financing costs through June 30, 2018 158 Balance at June 30, 2018 $ 944,388 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | (10) Segment Information We have identified five reportable segments: equipment rentals, new equipment sales, used equipment sales, parts sales and services revenues. These segments are based upon how management of the Company allocates resources and assesses performance. Non-segmented revenues and non-segmented costs relate to equipment support activities including transportation, hauling, parts freight and damage-waiver charges and are not allocated to the other reportable segments. There were no sales between segments for any of the periods presented. Selling, general and administrative expenses as well as all other income and expense items below gross profit are not generally allocated to reportable segments. We do not compile discrete financial information by segments other than the information presented below. The following table presents information about our reportable segments (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Segment Revenues: Equipment rentals $ 143,829 $ 118,370 $ 273,190 $ 225,687 New equipment sales 68,539 45,669 115,032 79,943 Used equipment sales 32,140 24,106 56,993 52,969 Parts sales 30,281 29,725 58,432 56,725 Services revenues 16,788 15,944 31,824 31,024 Total segmented revenues 291,577 233,814 535,471 446,348 Non-segmented revenues 18,787 15,549 35,375 29,843 Total revenues $ 310,364 $ 249,363 $ 570,846 $ 476,191 Segment Gross Profit: Equipment rentals $ 70,585 $ 56,370 $ 132,205 $ 104,410 New equipment sales 7,313 5,219 12,961 9,112 Used equipment sales 10,368 7,104 18,284 16,106 Parts sales 8,350 8,003 15,884 15,567 Services revenues 11,036 10,612 21,022 20,693 Total segmented gross profit 107,652 87,308 200,356 165,888 Non-segmented gross profit (loss) 451 32 332 (876 ) Total gross profit $ 108,103 $ 87,340 $ 200,688 $ 165,012 Balances at June 30, December 31, 2018 2017 Segment identified assets: Equipment sales $ 143,602 $ 58,125 Equipment rentals 1,090,380 904,824 Parts and services 19,171 16,879 Total segment identified assets 1,253,153 979,828 Non-segment identified assets 446,495 487,889 Total assets $ 1,699,648 $ 1,467,717 The Company operates primarily in the United States and our sales to international customers for the three month periods ended June 30, 2018 and 2017 were 0.1% and 0.1%, respectively, of total revenues. Our sales to international customers for the six month periods ended June 30, 2018 and 2017 were 0.2% and 0.4%, respectively. No one customer accounted for more than 10% of our revenues on an overall or segment basis for any of the periods presented. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information of Guarantor Subsidiaries | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information of Guarantor Subsidiaries | (11) Condensed Consolidating Financial Information of Guarantor Subsidiaries All of the indebtedness of H&E Equipment Services, Inc. is guaranteed by GNE Investments, Inc. and its wholly‑owned subsidiary Great Northern Equipment, Inc., H&E Equipment Services (California), LLC, H&E California Holding, Inc., H&E Equipment Services (Mid-Atlantic), Inc. and H&E Finance Corp. The guarantor subsidiaries are all wholly‑owned and the guarantees, made on a joint and several basis, are full and unconditional (subject to subordination provisions and subject to a standard limitation which provides that the maximum amount guaranteed by each guarantor will not exceed the maximum amount that can be guaranteed without making the guarantee void under fraudulent conveyance laws). There are no restrictions on H&E Equipment Services, Inc.’s ability to obtain funds from the guarantor subsidiaries by dividend or loan. The consolidating financial statements of H&E Equipment Services, Inc. and its subsidiaries are included below. The financial statements for H&E Finance Corp. are not included within the consolidating financial statements because H&E Finance Corp. has no assets or operations. CONDENSED CONSOLIDATING BALANCE SHEET As of June 30, 2018 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Assets: Cash $ 9,579 $ — $ — $ 9,579 Receivables, net 142,318 33,418 — 175,736 Inventories, net 141,811 20,962 — 162,773 Prepaid expenses and other assets 9,496 175 — 9,671 Rental equipment, net 936,036 154,344 — 1,090,380 Property and equipment, net 95,147 16,929 — 112,076 Deferred financing costs, net 3,375 — — 3,375 Investment in guarantor subsidiaries 246,373 — (246,373 ) — Intangible assets, net 30,215 30,215 Goodwill 76,317 29,526 — 105,843 Total assets $ 1,690,667 $ 255,354 $ (246,373 ) $ 1,699,648 Liabilities and Stockholders’ Equity: Amounts due on senior secured credit facility $ 132,663 $ — $ — $ 132,663 Accounts payable 143,651 10,900 — 154,551 Manufacturer flooring plans payable 27,851 909 — 28,760 Accrued expenses payable and other liabilities 73,524 (3,607 ) — 69,917 Dividends payable 126 (50 ) — 76 Senior unsecured notes 944,388 — — 944,388 Capital leases payable — 829 — 829 Deferred income taxes 137,162 — — 137,162 Deferred compensation payable 1,946 — — 1,946 Total liabilities 1,461,311 8,981 — 1,470,292 Stockholders’ equity 229,356 246,373 (246,373 ) 229,356 Total liabilities and stockholders’ equity $ 1,690,667 $ 255,354 $ (246,373 ) $ 1,699,648 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2017 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Assets: Cash $ 165,878 $ — $ — $ 165,878 Receivables, net 138,657 37,424 — 176,081 Inventories, net 63,828 11,176 — 75,004 Prepaid expenses and other assets 9,030 142 — 9,172 Rental equipment, net 760,972 143,852 — 904,824 Property and equipment, net 89,952 11,837 — 101,789 Deferred financing costs, net 3,772 — — 3,772 Investment in guarantor subsidiaries 222,217 — (222,217 ) - Goodwill 1,671 29,526 — 31,197 Total assets $ 1,455,977 $ 233,957 $ (222,217 ) $ 1,467,717 Liabilities and Stockholders’ Equity: Accounts payable $ 78,811 $ 10,970 $ — $ 89,781 Manufacturer flooring plans payable 20,300 1,702 — 22,002 Accrued expenses payable and other liabilities 67,466 (2,371 ) — 65,095 Dividends payable 197 (47 ) — 150 Senior unsecured notes 944,088 — — 944,088 Capital leases payable — 1,486 — 1,486 Deferred income taxes 126,419 — — 126,419 Deferred compensation payable 1,903 — — 1,903 Total liabilities 1,239,184 11,740 — 1,250,924 Stockholders’ equity 216,793 222,217 (222,217 ) 216,793 Total liabilities and stockholders’ equity $ 1,455,977 $ 233,957 $ (222,217 ) $ 1,467,717 CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended June 30, 2018 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 123,457 $ 20,372 $ — $ 143,829 New equipment sales 55,700 12,839 — 68,539 Used equipment sales 26,162 5,978 — 32,140 Parts sales 26,087 4,194 — 30,281 Services revenues 13,979 2,809 — 16,788 Other 15,777 3,010 — 18,787 Total revenues 261,162 49,202 — 310,364 Cost of revenues: Rental depreciation 43,950 7,221 — 51,171 Rental expense 18,866 3,207 — 22,073 New equipment sales 49,712 11,514 — 61,226 Used equipment sales 17,559 4,213 — 21,772 Parts sales 18,987 2,944 — 21,931 Services revenues 4,755 997 — 5,752 Other 15,329 3,007 — 18,336 Total cost of revenues 169,158 33,103 — 202,261 Gross profit: Equipment rentals 60,641 9,944 — 70,585 New equipment sales 5,988 1,325 — 7,313 Used equipment sales 8,603 1,765 — 10,368 Parts sales 7,100 1,250 — 8,350 Services revenues 9,224 1,812 — 11,036 Other 448 3 — 451 Gross profit 92,004 16,099 — 108,103 Selling, general and administrative expenses 57,738 11,308 — 69,046 Merger costs 68 — — 68 Equity in earnings of guarantor subsidiaries 2,490 — (2,490 ) — Gain on sales of property and equipment, net 4,023 91 — 4,114 Income from operations 40,711 4,882 (2,490 ) 43,103 Other income (expense): Interest expense (13,247 ) (2,446 ) — (15,693 ) Other, net 405 54 — 459 Total other expense, net (12,842 ) (2,392 ) — (15,234 ) Income before income taxes 27,869 2,490 (2,490 ) 27,869 Income tax expense 7,098 — — 7,098 Net income $ 20,771 $ 2,490 $ (2,490 ) $ 20,771 CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended June 30, 2017 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 96,709 $ 21,661 $ — $ 118,370 New equipment sales 38,819 6,850 — 45,669 Used equipment sales 19,333 4,773 — 24,106 Parts sales 25,458 4,267 — 29,725 Services revenues 13,395 2,549 — 15,944 Other 12,590 2,959 — 15,549 Total revenues 206,304 43,059 — 249,363 Cost of revenues: Rental depreciation 34,542 7,296 — 41,838 Rental expense 16,740 3,422 — 20,162 New equipment sales 34,315 6,135 — 40,450 Used equipment sales 14,056 2,946 — 17,002 Parts sales 18,712 3,010 — 21,722 Services revenues 4,479 853 — 5,332 Other 12,567 2,950 — 15,517 Total cost of revenues 135,411 26,612 — 162,023 Gross profit: Equipment rentals 45,427 10,943 — 56,370 New equipment sales 4,504 715 — 5,219 Used equipment sales 5,277 1,827 — 7,104 Parts sales 6,746 1,257 — 8,003 Services revenues 8,916 1,696 — 10,612 Other 23 9 — 32 Gross profit 70,893 16,447 — 87,340 Selling, general and administrative expenses 52,766 7,041 — 59,807 Equity in earnings of guarantor subsidiaries 1,212 — (1,212 ) — Gain on sales of property and equipment, net 905 230 — 1,135 Income from operations 20,244 9,636 (1,212 ) 28,668 Other income (expense): Interest expense (7,407 ) (5,966 ) — (13,373 ) Other, net 274 99 — 373 Total other expense, net (7,133 ) (5,867 ) — (13,000 ) Income before income taxes 13,111 3,769 (1,212 ) 15,668 Income tax expense 5,790 — — 5,790 Net income $ 7,321 $ 3,769 $ (1,212 ) $ 9,878 CONDENSED CONSOLIDATING STATEMENT OF INCOME Six Months Ended June 30, 2018 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 234,291 $ 38,899 $ — $ 273,190 New equipment sales 95,601 19,431 — 115,032 Used equipment sales 46,388 10,605 — 56,993 Parts sales 50,434 7,998 — 58,432 Services revenues 26,761 5,063 — 31,824 Other 29,719 5,656 — 35,375 Total revenues 483,194 87,652 — 570,846 Cost of revenues: Rental depreciation 83,509 14,131 — 97,640 Rental expense 37,126 6,219 — 43,345 New equipment sales 84,795 17,276 — 102,071 Used equipment sales 31,391 7,318 — 38,709 Parts sales 36,943 5,605 — 42,548 Services revenues 9,117 1,685 — 10,802 Other 29,245 5,798 — 35,043 Total cost of revenues 312,126 58,032 — 370,158 Gross profit (loss): Equipment rentals 113,656 18,549 — 132,205 New equipment sales 10,806 2,155 — 12,961 Used equipment sales 14,997 3,287 — 18,284 Parts sales 13,491 2,393 — 15,884 Services revenues 17,644 3,378 — 21,022 Other 474 (142 ) — 332 Gross profit 171,068 29,620 — 200,688 Selling, general and administrative expenses 112,746 22,180 — 134,926 Merger costs 220 — — 220 Equity in earnings of guarantor subsidiaries 2,948 — (2,948 ) — Gain on sales of property and equipment, net 4,737 150 — 4,887 Income from operations 65,787 7,590 (2,948 ) 70,429 Other income (expense): Interest expense (25,596 ) (4,750 ) — (30,346 ) Other, net 746 108 — 854 Total other expense, net (24,850 ) (4,642 ) — (29,492 ) Income before income taxes 40,937 2,948 (2,948 ) 40,937 Income tax expense 10,688 — — 10,688 Net income $ 30,249 $ 2,948 $ (2,948 ) $ 30,249 CONDENSED CONSOLIDATING STATEMENT OF INCOME Six Months Ended June 30, 2017 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 184,992 $ 40,695 $ — $ 225,687 New equipment sales 68,494 11,449 — 79,943 Used equipment sales 42,474 10,495 — 52,969 Parts sales 48,599 8,126 — 56,725 Services revenues 26,090 4,934 — 31,024 Other 24,342 5,501 — 29,843 Total revenues 394,991 81,200 — 476,191 Cost of revenues: Rental depreciation 68,290 14,451 — 82,741 Rental expense 31,976 6,560 — 38,536 New equipment sales 60,685 10,146 — 70,831 Used equipment sales 30,155 6,708 — 36,863 Parts sales 35,437 5,721 — 41,158 Services revenues 8,690 1,641 — 10,331 Other 24,820 5,899 — 30,719 Total cost of revenues 260,053 51,126 — 311,179 Gross profit (loss): Equipment rentals 84,726 19,684 — 104,410 New equipment sales 7,809 1,303 — 9,112 Used equipment sales 12,319 3,787 — 16,106 Parts sales 13,162 2,405 — 15,567 Services revenues 17,400 3,293 — 20,693 Other (478 ) (398 ) — (876 ) Gross profit 134,938 30,074 — 165,012 Selling, general and administrative expenses 103,001 14,124 — 117,125 Equity in earnings of guarantor subsidiaries 4,981 — (4,981 ) — Gain on sales of property and equipment, net 1,629 477 — 2,106 Income from operations 38,547 16,427 (4,981 ) 49,993 Other income (expense): Interest expense (14,970 ) (11,635 ) — (26,605 ) Other, net 621 189 — 810 Total other expense, net (14,349 ) (11,446 ) — (25,795 ) Income before income taxes 24,198 4,981 (4,981 ) 24,198 Income tax expense 8,930 — — 8,930 Net income $ 15,268 $ 4,981 $ (4,981 ) $ 15,268 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2018 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 30,249 $ 2,948 $ (2,948 ) $ 30,249 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 10,606 1,479 — 12,085 Depreciation of rental equipment 83,509 14,131 — 97,640 Amortization of intangible assets 1,485 — — 1,485 Amortization of deferred financing costs 557 — — 557 Accretion of note discount, net of premium amortization 239 — — 239 Provision for losses on accounts receivable 1,195 484 — 1,679 Provision for inventory obsolescence 71 — — 71 Change in deferred income taxes 10,743 — — 10,743 Stock-based compensation expense 2,081 — — 2,081 Gain from sales of property and equipment, net (4,737 ) (150 ) — (4,887 ) Gain from sales of rental equipment, net (14,717 ) (3,289 ) — (18,006 ) Equity in earnings of guarantor subsidiaries (2,948 ) — 2,948 — Changes in operating assets and liabilities: Receivables 5,599 3,522 — 9,121 Inventories (90,519 ) (13,112 ) — (103,631 ) Prepaid expenses and other assets (95 ) (33 ) — (128 ) Accounts payable 59,775 (70 ) — 59,705 Manufacturer flooring plans payable 7,551 (793 ) — 6,758 Accrued expenses payable and other liabilities 1,395 (1,784 ) — (389 ) Deferred compensation payable 43 — — 43 Net cash provided by operating activities 102,082 3,333 — 105,415 Cash flows from investing activities: Acquisition of business, net of cash acquired (196,027 ) — (196,027 ) Purchases of property and equipment (12,990 ) (6,571 ) — (19,561 ) Purchases of rental equipment (189,589 ) (28,239 ) — (217,828 ) Proceeds from sales of property and equipment 6,537 150 — 6,687 Proceeds from sales of rental equipment 41,946 10,231 — 52,177 Investment in subsidiaries (21,208 ) — 21,208 — Net cash used in investing activities. (371,331 ) (24,429 ) 21,208 (374,552 ) Cash flows from financing activities: Borrowings on senior secured credit facility 735,775 — — 735,775 Payments on senior secured credit facility (603,112 ) — — (603,112 ) Dividends paid (19,616 ) (3 ) — (19,619 ) Payment of deferred financing costs (97 ) — — (97 ) Payments on capital lease obligations — (109 ) — (109 ) Capital contributions — 21,208 (21,208 ) — Net cash provided by financing activities 112,950 21,096 (21,208 ) 112,838 Net decrease in cash (156,299 ) — — (156,299 ) Cash, beginning of period 165,878 — — 165,878 Cash, end of period $ 9,579 $ — $ — $ 9,579 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2017 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 15,268 $ 4,981 $ (4,981 ) $ 15,268 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 10,535 1,580 — 12,115 Depreciation of rental equipment 68,290 14,451 — 82,741 Amortization of deferred financing costs 526 — — 526 Accretion of note discount, net of premium amortization 84 — — 84 Provision for losses on accounts receivable 1,484 374 — 1,858 Provision for inventory obsolescence 71 — — 71 Change in deferred income taxes 9,968 — — 9,968 Stock-based compensation expense 1,894 — — 1,894 Gain from sales of property and equipment, net (1,629 ) (477 ) — (2,106 ) Gain from sales of rental equipment, net (11,595 ) (3,754 ) — (15,349 ) Equity in earnings of guarantor subsidiaries (4,981 ) — 4,981 — Changes in operating assets and liabilities: Receivables (2,027 ) (1,247 ) — (3,274 ) Inventories (36,815 ) (12,770 ) — (49,585 ) Prepaid expenses and other assets (1,860 ) (51 ) — (1,911 ) Accounts payable 37,724 3,897 — 41,621 Manufacturer flooring plans payable (6,666 ) 1,710 — (4,956 ) Accrued expenses payable and other liabilities 2,855 860 — 3,715 Deferred compensation payable 27 — — 27 Net cash provided by operating activities 83,153 9,554 — 92,707 Cash flows from investing activities: Purchases of property and equipment (10,915 ) (1,222 ) — (12,137 ) Purchases of rental equipment (87,518 ) (25,428 ) — (112,946 ) Proceeds from sales of property and equipment 2,548 589 — 3,137 Proceeds from sales of rental equipment 35,760 10,253 — 46,013 Investment in subsidiaries (6,365 ) — 6,365 — Net cash used in investing activities (66,490 ) (15,808 ) 6,365 (75,933 ) Cash flows from financing activities: Borrowings on senior secured credit facility 484,252 — — 484,252 Payments on senior secured credit facility (482,042 ) — — (482,042 ) Dividends paid (19,561 ) (4 ) — (19,565 ) Payments on capital lease obligations — (107 ) — (107 ) Capital contributions — 6,365 (6,365 ) — Net cash provided by (used in) financing activities (17,351 ) 6,254 (6,365 ) (17,462 ) Net decrease in cash (688 ) — — (688 ) Cash, beginning of period 7,683 — — 7,683 Cash, end of period $ 6,995 $ — $ — $ 6,995 |
Organization and Nature of Op17
Organization and Nature of Operations (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Our condensed consolidated financial statements include the financial position and results of operations of H&E Equipment Services, Inc. and its wholly-owned subsidiaries H&E Finance Corp., GNE Investments, Inc., Great Northern Equipment, Inc., H&E California Holding, Inc., H&E Equipment Services (California), LLC and H&E Equipment Services (Mid-Atlantic), Inc., collectively referred to herein as “we” or “us” or “our” or the “Company.” The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such regulations. In the opinion of management, all adjustments (consisting of all normal and recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018, 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, 2017, from which the consolidated balance sheet amounts as of December 31, 2017 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 Pronouncements Not Yet Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases . Our operating leases under current guidance (Topic 840) include the real estate where all but 12 of our 89 branch locations are located as of June 30, 2018. Additionally, the Company leases numerous types of non-rental equipment. Given the size of our lease portfolio, we expect that the new standard will have a material effect on our consolidated balance sheets as a result of recognizing new right-of-use assets and lease liabilities for our existing operating leases. We have begun accumulating the information related to these leases but have not completed our comprehensive analysis of those leases and are unable to quantify the impact to our consolidated financial statements at this time. We are concurrently evaluating our internal processes and controls over financial reporting with respect to the impact that the new lease standard will have on our lease administration and financial reporting activities. We are also in the process of implementing a new software tool to help facilitate compliance with the new guidance. As mentioned in the Topic 606 discussion below, our equipment rental business involves rental agreements with customers whereby we are the lessor in the transaction and therefore, we believe that such transactions are subject to the pending lessor accounting guidance of Topic 842. While our evaluation of Topic 842 is ongoing with respect to our equipment rental activities, we have tentatively concluded that no significant changes are expected to the accounting for our rental equipment revenues, as substantially all of our rental agreements with customers will continue to be treated as operating leases under the new standard. Accordingly, we do not expect material changes to our related rental agreement accounting processes or internal controls upon adoption of ASU 2016-02. In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment Recent Accounting Pronouncements Adopted in Fiscal 2018 In August 2016, the FASB issued ASU 2016-15, “ Classification of Certain Cash Receipts and Cash Payments” , which aims to eliminate the diversity in the presentation of certain cash receipts and cash payments presented and classified in the statement of cash flows. The guidance addresses the following specific cash flow issues: (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transitions and (8) separately identifiable cash flows and application of predominance principle. We adopted this guidance effective January 1, 2018 and it had no impact to our condensed consolidated statement of cash flows for the periods presented in this Quarterly Report on Form 10-Q. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). Under this ASU and subsequently issued amendments, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflect the consideration we expect to be entitled to in exchange for those goods or services. Entities may use a full retrospective approach or report on the cumulative effect as of the date of adoption. We adopted this standard using the full retrospective transition method effective January 1, 2018. While the adoption of the new standard did not have an impact on our reported net income for the periods presented in this quarterly report on Form 10-Q, approximately $1.8 million and $3.4 million of revenues that were previously classified in Other Revenues have been reclassified to Parts Revenues for the three and six month periods ended June 30, 2018, respectively. These revenues relate to freight income associated with our parts transactions, and such income was not deemed to be a separate performance obligation under the new guidance. Accordingly, we also reclassified $1.4 million and $2.6 million of associated freight costs related to these parts transactions from Other Cost of Revenues to Parts Costs of Revenues for the three and six months ended June 30, 2018, respectively. We have recast our results for the prior year three and six month periods ended June 30, 2017 as shown in the tables below (amounts in thousands). Three Months Ended June 30, 2017 Statement of Income: As Previously Reported Adjustments Current Presentation Revenues: Equipment rentals $ 118,370 $ ─ $ 118,370 New equipment sales 45,669 ─ 45,669 Used equipment sales 24,106 ─ 24,106 Parts sales 27,969 1,756 29,725 Services revenues 15,944 ─ 15,944 Other 17,305 (1,756) 15,549 Total revenues 249,363 ─ 249,363 Cost of revenues: Rental depreciation 41,838 ─ 41,838 Rental expense 20,162 ─ 20,162 New equipment sales 40,450 ─ 40,450 Used equipment sales 17,002 ─ 17,002 Parts sales 20,358 1,364 21,722 Services revenues 5,332 ─ 5,332 Other 16,881 (1,364) 15,517 Total cost of revenues 162,023 ─ 162,023 Gross profit $ 87,340 $ ─ $ 87,340 Six Months Ended June 30, 2017 Statement of Income: As Previously Reported Adjustments Current Presentation Revenues: Equipment rentals $ 225,687 $ ─ $ 225,687 New equipment sales 79,943 ─ 79,943 Used equipment sales 52,969 ─ 52,969 Parts sales 53,300 3,425 56,725 Services revenues 31,024 ─ 31,024 Other 33,268 (3,425) 29,843 Total revenues 476,191 ─ 476,191 Cost of revenues: Rental depreciation 82,741 ─ 82,741 Rental expense 38,536 ─ 38,536 New equipment sales 70,831 ─ 70,831 Used equipment sales 36,863 ─ 36,863 Parts sales 38,571 2,587 41,158 Services revenues 10,331 ─ 10,331 Other 33,306 (2,587) 30,719 Total cost of revenues 311,179 ─ 311,179 Gross profit $ 165,012 $ ─ $ 165,012 |
Revenue Recognition | Revenue Recognition As further discussed below, upon the adoption of Topic 606 on January 1, 2018, we recognize revenue in accordance with two different accounting standards: 1) Topic 606 and 2) Topic 840 (which addresses lease accounting). As discussed above in “Pronouncements Not Yet Adopted”, Topic 842 will supersede Topic 840 upon our adoption of Topic 842 on January 1, 2019. Under Topic 606, revenue from contracts with customers is measured based on the consideration specified in the contract with the customer, and excludes any sales incentives and amounts collected on behalf of third parties. A performance obligation is a promise in a contract to transfer a distinct good or service to a customer. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for such products or services. Nature of goods and services The tables below summarizes for the three and six months ended June 30, 2018 our revenue by type and by the applicable accounting standard (amounts in thousands). Three Months Ended June 30, 2018 2017 Topic 840 Topic 606 Total Topic 840 Topic 605 Total Rental revenues $ 143,435 $ 394 $ 143,829 $ 117,850 $ 520 $ 118,370 New equipment sales ─ 68,539 68,539 ─ 45,669 45,669 Used equipment sales ─ 32,140 32,140 ─ 24,106 24,106 Parts sales ─ 30,281 30,281 ─ 29,725 29,725 Service revenues ─ 16,788 16,788 ─ 15,944 15,944 Other 5,362 13,425 18,787 4,313 11,236 15,549 Total revenues $ 148,797 $ 161,567 $ 310,364 $ 122,163 $ 127,200 $ 249,363 Six Months Ended June 30, 2018 2017 Topic 840 Topic 606 Total Topic 840 Topic 605 Total Rental revenues $ 272,275 $ 915 $ 273,190 $ 224,633 $ 1,054 $ 225,687 New equipment sales ─ 115,032 115,032 ─ 79,943 79,943 Used equipment sales ─ 56,993 56,993 ─ 52,969 52,969 Parts sales ─ 58,432 58,432 ─ 56,725 56,725 Service revenues ─ 31,824 31,824 ─ 31,024 31,024 Other 9,942 25,433 35,375 8,151 21,692 29,843 Total revenues $ 282,217 $ 288,629 $ 570,846 $ 232,784 $ 243,407 $ 476,191 Revenues by reporting segment are presented in note 10 of our condensed consolidated financial statements, using the revenue captions reflected in our condensed consolidated statements of income. We believe that the disaggregation of our revenues from contracts to customers as reflected above, coupled with further discussion below and the reporting segment in note 10, depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. Lease revenues (Topic 840) As discussed above in “Pending Accounting Pronouncements Not Yet Adopted”, we expect to adopt Topic 842 on January 1, 2019. While our review of the revenue accounting under Topic 842 is ongoing, we have tentatively concluded that no significant changes are expected to our rental revenue accounting upon adoption of Topic 842. Rental Revenues: Owned equipment rentals represent revenues from renting equipment. We account for these rentals as operating leases. We recognize revenue from equipment rentals in the period earned, regardless of the timing of billing to customers. A rental contract includes rates for daily, weekly or monthly use, and rental revenues are earned on a daily basis as rental contracts remain outstanding. Because the rental contracts can extend across multiple reporting periods, we record unbilled rental revenues and deferred rental revenues at the end of reporting periods so rental revenues earned is appropriately stated for the periods presented. Other: Other rental revenues primarily represent services performed by us in connection with the rental of equipment to a customer, such as fuel consumption charges and damage waiver insurance. Fuel consumption charges are recognized upon return of the rental equipment when fuel consumption by the customer, if any, can be measured. Income from damage waiver insurance policies are recognized over the period the equipment is rented. Revenues from contracts with customers (Topic 606) The accounting for the types of revenues accounted for pursuant to Topic 606 are discussed below. Substantially all of our revenues under Topic 606 are recognized at a point-in-time rather than over time. Rental revenues: These revenues represent revenues for services performed by us in connection with the rental of equipment and are comprised of customer training fees on rented equipment and erection and dismantling services on rental equipment. Revenues for these services are recognized upon completion of such services. New equipment sales: Revenues from the sales of new equipment are recognized at the time of delivery to, or pick-up by, the customer, which is when the customer obtains control of the promised good. Used equipment sales: Revenues from the sales of used equipment are recognized at the time of delivery to, or pick-up by, the customer, which is when the customer obtains control of the promised good. Parts sales: Revenues from the sales of equipment parts are recognized at the time of pick-up by the customer for parts counter sales transactions. For parts that are shipped to a customer, we elected to use a practical expedient of Topic 606 and treat such shipping activities as fulfillment costs, thereby recognizing revenues at the time of shipment. Services revenues: We derive our services primarily from maintenance and repair services to customers for their owned equipment. We recognize services revenues at the time such services are completed, which is when the customer obtains control of the promised service. Other revenues : Other revenues relate primarily to hauling fees for transporting rental equipment to and from the customer and ancillary charges associated with maintenance and repair services. Such revenues are recognized at the time the services are completed. Receivables and contract assets and liabilities We manage credit risk associated with our accounts receivables at the customer level. Because the same customers typically generate the revenues that are accounted for under both Topic 606 and Topic 840, the discussions below on credit risk and our allowances for doubtful accounts address our total revenues from Topic 606 (Topic 605 for 2017) and Topic 840. We believe concentration of credit risk with respect to our receivables is limited because a large number of geographically diverse customers makes up our customer base. Our largest customer accounted for less than one percent of total revenues for the three and six months ended June 30, 2018, and for each of the last three full years. No single customer accounted for more than 10% of our revenues on an overall or segment basis for any of the periods presented in this Quarterly Report on Form 10-Q. We manage credit risk through credit approvals, credit limits and other monitoring procedures. We maintain an allowance for doubtful accounts that reflects our estimate of the amount of our receivables that we will be unable to collect. We develop our estimate of this allowance based on our historical experience with specific customers, our understanding of our current economic circumstances and our own judgment as to the likelihood of ultimate payment. Our largest exposure to doubtful accounts is in our rental operations. We perform credit evaluations of customers and establish credit limits based on reviews of our customers’ current credit information and payment histories. We believe our credit risk is somewhat mitigated by our geographically diverse customer base and our credit evaluation procedures. During the year, we write-off customer account balances when we have exhausted reasonable collection efforts and determined that the likelihood of collection is remote. Such write-offs are charged against our allowance for doubtful accounts. Bad debt expense as a percentage of total revenues for the six month periods ended June 30, 2018 and 2017 were approximately 0.3% and 0.4%, respectively. The actual rate of future credit losses, however, may not be similar to past experience. Our estimate of doubtful accounts could change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease our allowance for doubtful accounts. We do not have material contract assets, impairment losses associated therewith, or material contract liabilities associated with contracts with customers. Our contracts with customers do not generally result in material amounts billed to customers in excess of recognizable revenue. We did not recognize material revenue during the three and six months ended June 30, 2018 or 2017 that was included in the contract liability balance as of the beginning of such periods. Performance obligations Most of our Topic 606 revenue is recognized at a point-in-time, rather than over time. Accordingly, in any particular period, we do not generally recognize a significant amount of revenue from performance obligations satisfied (or partially satisfied) in previous periods, and the amount of such revenue recognized during the three and six months ended June 30, 2018 and 2017 was not material. We also do not expect to recognize material revenue in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2018. Payment terms Our Topic 606 revenues do not include material amounts of variable consideration. Our payment terms vary by the type and location of our customer and the products or services offered. The time between invoicing and when payment is due is not significant. Our contracts do not generally include a significant financing component. Our contracts with customers do not generally result in significant obligations associated with returns, refunds or warranties. See above for a discussion of how we manage credit risk. Sales tax amounts collected from customers are recorded on a net basis. Contract costs We do not recognize any assets associated with the incremental costs of obtaining a contract with a customer (for example, a sales commission) that we expect to recover. Most of our revenue is recognized at a point-in-time or over a period of one year or less, and we use the practical expedient that allows us to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. Contract estimates and judgments Our revenues accounted for under Topic 606 generally do not require significant estimates or judgments as the transaction price is generally fixed and stated on our contracts. Our contracts generally do not include multiple performance obligations, and accordingly do not generally require estimates of the standalone selling price for each performance obligation. Also, our revenues do not include material amounts of variable consideration. Substantially all of our revenues are recognized at a point-in-time and the timing of the satisfaction of the applicable performance obligations is readily determinable. As noted above, our Topic 606 revenues are generally recognized at the time of delivery to, or pick-up by, the customer. |
Significant Accounting Polici18
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Recast of Our Results for Prior Year | We have recast our results for the prior year three and six month periods ended June 30, 2017 as shown in the tables below (amounts in thousands). Three Months Ended June 30, 2017 Statement of Income: As Previously Reported Adjustments Current Presentation Revenues: Equipment rentals $ 118,370 $ ─ $ 118,370 New equipment sales 45,669 ─ 45,669 Used equipment sales 24,106 ─ 24,106 Parts sales 27,969 1,756 29,725 Services revenues 15,944 ─ 15,944 Other 17,305 (1,756) 15,549 Total revenues 249,363 ─ 249,363 Cost of revenues: Rental depreciation 41,838 ─ 41,838 Rental expense 20,162 ─ 20,162 New equipment sales 40,450 ─ 40,450 Used equipment sales 17,002 ─ 17,002 Parts sales 20,358 1,364 21,722 Services revenues 5,332 ─ 5,332 Other 16,881 (1,364) 15,517 Total cost of revenues 162,023 ─ 162,023 Gross profit $ 87,340 $ ─ $ 87,340 Six Months Ended June 30, 2017 Statement of Income: As Previously Reported Adjustments Current Presentation Revenues: Equipment rentals $ 225,687 $ ─ $ 225,687 New equipment sales 79,943 ─ 79,943 Used equipment sales 52,969 ─ 52,969 Parts sales 53,300 3,425 56,725 Services revenues 31,024 ─ 31,024 Other 33,268 (3,425) 29,843 Total revenues 476,191 ─ 476,191 Cost of revenues: Rental depreciation 82,741 ─ 82,741 Rental expense 38,536 ─ 38,536 New equipment sales 70,831 ─ 70,831 Used equipment sales 36,863 ─ 36,863 Parts sales 38,571 2,587 41,158 Services revenues 10,331 ─ 10,331 Other 33,306 (2,587) 30,719 Total cost of revenues 311,179 ─ 311,179 Gross profit $ 165,012 $ ─ $ 165,012 |
Summary of Revenue by Type and by Applicable Accounting Standard | The tables below summarizes for the three and six months ended June 30, 2018 our revenue by type and by the applicable accounting standard (amounts in thousands). Three Months Ended June 30, 2018 2017 Topic 840 Topic 606 Total Topic 840 Topic 605 Total Rental revenues $ 143,435 $ 394 $ 143,829 $ 117,850 $ 520 $ 118,370 New equipment sales ─ 68,539 68,539 ─ 45,669 45,669 Used equipment sales ─ 32,140 32,140 ─ 24,106 24,106 Parts sales ─ 30,281 30,281 ─ 29,725 29,725 Service revenues ─ 16,788 16,788 ─ 15,944 15,944 Other 5,362 13,425 18,787 4,313 11,236 15,549 Total revenues $ 148,797 $ 161,567 $ 310,364 $ 122,163 $ 127,200 $ 249,363 Six Months Ended June 30, 2018 2017 Topic 840 Topic 606 Total Topic 840 Topic 605 Total Rental revenues $ 272,275 $ 915 $ 273,190 $ 224,633 $ 1,054 $ 225,687 New equipment sales ─ 115,032 115,032 ─ 79,943 79,943 Used equipment sales ─ 56,993 56,993 ─ 52,969 52,969 Parts sales ─ 58,432 58,432 ─ 56,725 56,725 Service revenues ─ 31,824 31,824 ─ 31,024 31,024 Other 9,942 25,433 35,375 8,151 21,692 29,843 Total revenues $ 282,217 $ 288,629 $ 570,846 $ 232,784 $ 243,407 $ 476,191 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Acquisition [Line Items] | |
Unaudited Pro Forma Consolidated Statements of Income Information | The tables below present unaudited pro forma consolidated statements of income information for the three and six month periods ended June 30, 2017 and the six month period ended June 30, 2018 as if CEC and Rental Inc. were included in our consolidated results for the entire periods presented. (amounts in thousands, except per share data) Three Month Period Ended June 30, 2017 H&E CEC Rental Inc. Total Total revenues $249,363 $8,140 $8,979 $266,482 Pretax income 15,668 1,448 2,105 19,221 Pro forma adjustments to pretax income: Impact of fair value mark-ups/useful life changes on depreciation (1) — (809) (738) (1,547) Intangible asset amortization (2) — (705) (275) (980) Interest expense (3) — — (475) (475) Elimination of historic interest expense (4) — 139 102 241 Pro forma pretax income 15,668 73 719 16,460 Income tax expense 5,790 27 262 6,079 Net income $ 9,878 $ 46 $ 457 $10,381 Net income per share – basic $ 0.28 $ — $0.01 $ 0.29 Net income per share - diluted $ 0.28 $ — $0.01 $ 0.29 (amounts in thousands, except per share data) Six Month Period Ended June 30, 2017 H&E CEC Rental Inc. Total Total revenues $476,191 $16,529 $17,225 $509,945 Pretax income 24,198 2,889 4,158 31,245 Pro forma adjustments to pretax income: Impact of fair value mark-ups/useful life changes on depreciation (1) — (1,712) (1,381) (3,093) Intangible asset amortization (2) — (1,410) (550) (1,960) Interest expense (3) — — (995) (995) Elimination of historic interest expense (4) — 263 202 465 Pro forma pretax income 24,198 30 1,434 25,662 Income tax expense 8,930 11 523 9,464 Net income $ 15,268 $ 19 $ 911 $16,198 Net income per share – basic $ 0.43 $ — $0.03 $ 0.46 Net income per share - diluted $ 0.43 $ — $0.03 $ 0.45 (amounts in thousands, except per share data) Six Month Period Ended June 30, 2018 H&E(5) Rental Inc.(6) Total Total revenues $ 570,846 $7,408 $578,254 Pretax income 40,937 1,020 41,957 Pro forma adjustments to pretax income: Impact of fair value mark-ups/useful life changes on depreciation (1) ─ (749) (749) Intangible asset amortization (2) ─ (275) (275) Interest expense (3) ─ (480) (480) Elimination of historic interest expense (4) ─ 82 82 Pro forma pretax income (loss) 40,937 (402) 40,535 Income tax expense (benefit) 10,688 (105) 10,583 Net income (loss) $ 30,249 $ (297) $ 29,952 Net income (loss) per share – basic $ 0.85 $(0.01) $ 0.84 Net income (loss) per share - diluted $ 0.84 $(0.01) $ 0.83 (1) Depreciation of rental equipment and non-rental equipment were adjusted for the fair value markups, and the changes in useful lives and salvage values of the equipment acquired in the acquisitions. (2) Represents the amortization of the intangible assets acquired in the acquisitions. (3) A portion of the consideration paid for Rental Inc. was funded with borrowings from our senior secured credit facility. Interest expense was adjusted to reflect the additional debt resulting from the acquisition. (4) Historic debt of CEC and Rental Inc. that is not part of the combined entity was eliminated. (5) H&E represents consolidated operating results as presented in this Quarterly Report on Form 10-Q for the six month period ended June 30, 2018 and includes actual results for CEC for the six months ended June 30, 2018 and actual results for Rental Inc. for the three month period ended June 30, 2018. (6) Represents Rental Inc. pro forma operating results for the three month period ended March 31, 2018. We completed the Rental Inc. acquisition on April 1, 2018. |
CEC [Member] | |
Business Acquisition [Line Items] | |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date. We do not expect any further changes to these assigned values. $’s in thousands Cash $ 1,244 Accounts receivable, net of allowance for doubtful accounts (1) 7,583 Inventory 504 Prepaid expenses and other assets 324 Rental equipment 55,342 Property and equipment 2,700 Intangible assets (2) 21,500 Total identifiable assets acquired 89,197 Accounts payable (1,023) Accrued expenses payable and other liabilities (876) Total liabilities assumed (1,899) Net identifiable assets acquired 87,298 Goodwill (3) 45,092 Net assets acquired $ 132,390 (1) The fair value of accounts receivable acquired was approximately $7.6 million and the gross contractual amount was $7.7 million. (2) The following table reflects the estimated fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments: Fair Value (amounts in thousands) Life (years) Customer relationships $ 21,000 10 Tradenames 300 1 Leasehold interests 200 10 $ 21,500 (3) The analysis of assigning the $45.1 million goodwill among our six goodwill reporting units has not been finalized. The level of goodwill that resulted from the CEC acquisition is primarily reflective of CEC’s going-concern value, the value of CEC’s assembled workforce, new customer relationships expected to arise from the acquisition and expected synergies from combining operations. We currently expect the goodwill recognized to be 100% deductible for income tax purposes. |
Rental Inc [Member] | |
Business Acquisition [Line Items] | |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the acquisition date. The amounts presented here are preliminary and are subject to change. However, we do not expect material changes to these assigned values. $’s in thousands Cash $ 260 Accounts receivable, net of allowance for doubtful accounts (1) 2,873 Inventory 5,324 Prepaid expenses and other assets 47 Rental equipment 22,578 Property and equipment 1,935 Intangible assets (2) 10,200 Total identifiable assets acquired 43,217 Accounts payable (439) Manufacturer flooring plans payable (3,293) Accrued expenses payable and other liabilities (469) Total liabilities assumed (4,201) Net identifiable assets acquired 39,016 Goodwill (3) 29,554 Net assets acquired $ 68,570 (1) The fair value of accounts receivables acquired was approximately $2.9 million and the gross contractual amount was $3.1 million. (2) The following table reflects the estimated fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments: Fair Value (amounts in thousands) Life (years) Customer relationships $ 10,000 10 Tradenames 200 1 $ 10,200 (3) The analysis of assigning the $29.6 million goodwill among our six goodwill reporting units has not been finalized. The level of goodwill that resulted from the CEC acquisition is primarily reflective of Rental Inc.’s going-concern value, the value of Rental Inc.’s assembled workforce, new customer relationships expected to arise from the acquisition and expected synergies from combining operations. We currently expect the goodwill recognized to be 100% deductible for income tax purposes. |
Fair Value of Financial Instr20
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements | The carrying amounts and fair values of our other financial instruments subject to fair value disclosures as of June 30, 2018 and December 31, 2017 are presented in the table below (amounts in thousands) and have been calculated based upon market quotes and present value calculations based on market rates. June 30, 2018 Carrying Amount Fair Value Manufacturer flooring plans payable with interest computed at 4.50% (Level 3) $ 28,760 $ 24,492 Senior unsecured notes with interest computed at 5.625 (Level 1) 944,388 935,750 Capital leases payable with interest computed at 5.929% (Level 3) 829 704 Letter of credit (Level 3) — 116 December 31, 2017 Carrying Amount Fair Value Manufacturer flooring plans payable with interest computed at 4.50% (Level 3) $ 22,002 $ 18,737 Senior unsecured notes with interest computed at 5.625% (Level 1) 944,088 619,019 Capital leases payable with interest computed at 5.929% to 9.55% (Level 3) 1,486 1,114 Letter of credit (Level 3) — 116 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Summary of Activity in Stockholders' Equity | The following table summarizes the activity in Stockholders’ Equity for the six month period ended June 30, 2018 (amounts in thousands, except share data): Common Stock Additional Retained Total Shares Issued Amount Paid-in Capital Treasury Stock Earnings (Deficit) Stockholders’ Equity Balances at December 31, 2017 39,623,773 $ 395 $ 227,070 $ (61,749 ) $ 51,077 $ 216,793 Stock-based compensation — — 2,081 — — 2,081 Cash dividends declared on common stock ($0.275 per share) — — — — (19,658 ) (19,658 ) Issuance of common stock, net of forfeitures 38,567 1 (110 ) — — (109 ) Net income — — — — 30,249 30,249 Balances at June 30, 2018 39,662,340 396 229,041 (61,749 ) 61,668 229,356 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 six months ended June 30, 2018: Number of Shares Weighted Average Grant Date Fair Non-vested stock at December 31, 2017 445,964 $ 19.70 Granted 16,152 $ 39.53 Vested (56,834 ) $ 23.46 Forfeited (23,381 ) $ 18.03 Non-vested stock at June 30, 2018 381,901 $ 20.08 |
Schedule of Compensation Expense Related to Non-Vested Stock | The following table summarizes compensation expense related to non-vested stock, which is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income for the three and six months ended June 30, 2018 and 2017 (amounts in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Compensation expense $ 762 $ 713 $ 2,081 $ 1,894 |
Income per Share (Tables)
Income per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Net Income Per Common Share | The following table sets forth the computation of basic and diluted net income per common share for the three and six months ended June 30, 2018 and 2017 (amounts in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Basic net income per share: Net income $ 20,771 $ 9,878 $ 30,249 $ 15,268 Weighted average number of common shares outstanding 35,634 35,473 35,613 35,469 Net income per share of common stock – basic $ 0.58 $ 0.28 $ 0.85 $ 0.43 Diluted net income per share: Net income $ 20,771 $ 9,878 $ 30,249 $ 15,268 Weighted average number of common shares outstanding 35,634 35,473 35,613 35,469 Effect of dilutive securities: Effect of dilutive non-vested restricted stock 272 158 280 157 Weighted average number of common shares outstanding – diluted 35,906 35,631 35,893 35,626 Net income per share of common stock – diluted $ 0.58 $ 0.28 $ 0.84 $ 0.43 Common shares excluded from the denominator as anti-dilutive: Non-vested restricted stock — — — — |
Senior Unsecured Notes (Tables)
Senior Unsecured Notes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Senior Unsecured Notes [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, 2016 $ 627,711 Accretion of discount on Old Notes through August 24, 2017 683 Amortization of note premium on Old Notes through August 24, 2017 (574 ) Amortization of deferred financing costs through August 24, 2017 153 Aggregate principal amount paid on Old Notes (630,000 ) Writeoff of unaccreted discount on Old Notes 5,294 Writeoff of unamortized premium on Old Notes (4,452 ) Writeoff of deferred financing costs on Old Notes 1,185 Aggregate principal amount issued on New Notes 950,000 Note discount and deferred transaction costs on New Notes (14,684 ) Note premium on New Notes 8,500 Accretion of discount on New Notes from August 24, 2017 through December 31, 2017 542 Amortization of note premium on New Notes from August 24, 2017 through December 31, 2017 (375 ) Amortization of deferred financing costs on New Notes August 24, 2017 through December 31, 2017 105 Balance at December 31, 2017 $ 944,088 Accretion of discount through June 30, 2018 770 Amortization of note premium through June 30, 2018 (531 ) Additional deferred financing costs on New Notes (97 ) Amortization of deferred financing costs through June 30, 2018 158 Balance at June 30, 2018 $ 944,388 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Information about Reportable Segments | The following table presents information about our reportable segments (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Segment Revenues: Equipment rentals $ 143,829 $ 118,370 $ 273,190 $ 225,687 New equipment sales 68,539 45,669 115,032 79,943 Used equipment sales 32,140 24,106 56,993 52,969 Parts sales 30,281 29,725 58,432 56,725 Services revenues 16,788 15,944 31,824 31,024 Total segmented revenues 291,577 233,814 535,471 446,348 Non-segmented revenues 18,787 15,549 35,375 29,843 Total revenues $ 310,364 $ 249,363 $ 570,846 $ 476,191 Segment Gross Profit: Equipment rentals $ 70,585 $ 56,370 $ 132,205 $ 104,410 New equipment sales 7,313 5,219 12,961 9,112 Used equipment sales 10,368 7,104 18,284 16,106 Parts sales 8,350 8,003 15,884 15,567 Services revenues 11,036 10,612 21,022 20,693 Total segmented gross profit 107,652 87,308 200,356 165,888 Non-segmented gross profit (loss) 451 32 332 (876 ) Total gross profit $ 108,103 $ 87,340 $ 200,688 $ 165,012 Balances at June 30, December 31, 2018 2017 Segment identified assets: Equipment sales $ 143,602 $ 58,125 Equipment rentals 1,090,380 904,824 Parts and services 19,171 16,879 Total segment identified assets 1,253,153 979,828 Non-segment identified assets 446,495 487,889 Total assets $ 1,699,648 $ 1,467,717 |
Condensed Consolidating Finan26
Condensed Consolidating Financial Information of Guarantor Subsidiaries (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET As of June 30, 2018 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Assets: Cash $ 9,579 $ — $ — $ 9,579 Receivables, net 142,318 33,418 — 175,736 Inventories, net 141,811 20,962 — 162,773 Prepaid expenses and other assets 9,496 175 — 9,671 Rental equipment, net 936,036 154,344 — 1,090,380 Property and equipment, net 95,147 16,929 — 112,076 Deferred financing costs, net 3,375 — — 3,375 Investment in guarantor subsidiaries 246,373 — (246,373 ) — Intangible assets, net 30,215 30,215 Goodwill 76,317 29,526 — 105,843 Total assets $ 1,690,667 $ 255,354 $ (246,373 ) $ 1,699,648 Liabilities and Stockholders’ Equity: Amounts due on senior secured credit facility $ 132,663 $ — $ — $ 132,663 Accounts payable 143,651 10,900 — 154,551 Manufacturer flooring plans payable 27,851 909 — 28,760 Accrued expenses payable and other liabilities 73,524 (3,607 ) — 69,917 Dividends payable 126 (50 ) — 76 Senior unsecured notes 944,388 — — 944,388 Capital leases payable — 829 — 829 Deferred income taxes 137,162 — — 137,162 Deferred compensation payable 1,946 — — 1,946 Total liabilities 1,461,311 8,981 — 1,470,292 Stockholders’ equity 229,356 246,373 (246,373 ) 229,356 Total liabilities and stockholders’ equity $ 1,690,667 $ 255,354 $ (246,373 ) $ 1,699,648 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2017 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Assets: Cash $ 165,878 $ — $ — $ 165,878 Receivables, net 138,657 37,424 — 176,081 Inventories, net 63,828 11,176 — 75,004 Prepaid expenses and other assets 9,030 142 — 9,172 Rental equipment, net 760,972 143,852 — 904,824 Property and equipment, net 89,952 11,837 — 101,789 Deferred financing costs, net 3,772 — — 3,772 Investment in guarantor subsidiaries 222,217 — (222,217 ) - Goodwill 1,671 29,526 — 31,197 Total assets $ 1,455,977 $ 233,957 $ (222,217 ) $ 1,467,717 Liabilities and Stockholders’ Equity: Accounts payable $ 78,811 $ 10,970 $ — $ 89,781 Manufacturer flooring plans payable 20,300 1,702 — 22,002 Accrued expenses payable and other liabilities 67,466 (2,371 ) — 65,095 Dividends payable 197 (47 ) — 150 Senior unsecured notes 944,088 — — 944,088 Capital leases payable — 1,486 — 1,486 Deferred income taxes 126,419 — — 126,419 Deferred compensation payable 1,903 — — 1,903 Total liabilities 1,239,184 11,740 — 1,250,924 Stockholders’ equity 216,793 222,217 (222,217 ) 216,793 Total liabilities and stockholders’ equity $ 1,455,977 $ 233,957 $ (222,217 ) $ 1,467,717 |
Condensed Consolidating Statement of Income | CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended June 30, 2018 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 123,457 $ 20,372 $ — $ 143,829 New equipment sales 55,700 12,839 — 68,539 Used equipment sales 26,162 5,978 — 32,140 Parts sales 26,087 4,194 — 30,281 Services revenues 13,979 2,809 — 16,788 Other 15,777 3,010 — 18,787 Total revenues 261,162 49,202 — 310,364 Cost of revenues: Rental depreciation 43,950 7,221 — 51,171 Rental expense 18,866 3,207 — 22,073 New equipment sales 49,712 11,514 — 61,226 Used equipment sales 17,559 4,213 — 21,772 Parts sales 18,987 2,944 — 21,931 Services revenues 4,755 997 — 5,752 Other 15,329 3,007 — 18,336 Total cost of revenues 169,158 33,103 — 202,261 Gross profit: Equipment rentals 60,641 9,944 — 70,585 New equipment sales 5,988 1,325 — 7,313 Used equipment sales 8,603 1,765 — 10,368 Parts sales 7,100 1,250 — 8,350 Services revenues 9,224 1,812 — 11,036 Other 448 3 — 451 Gross profit 92,004 16,099 — 108,103 Selling, general and administrative expenses 57,738 11,308 — 69,046 Merger costs 68 — — 68 Equity in earnings of guarantor subsidiaries 2,490 — (2,490 ) — Gain on sales of property and equipment, net 4,023 91 — 4,114 Income from operations 40,711 4,882 (2,490 ) 43,103 Other income (expense): Interest expense (13,247 ) (2,446 ) — (15,693 ) Other, net 405 54 — 459 Total other expense, net (12,842 ) (2,392 ) — (15,234 ) Income before income taxes 27,869 2,490 (2,490 ) 27,869 Income tax expense 7,098 — — 7,098 Net income $ 20,771 $ 2,490 $ (2,490 ) $ 20,771 CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended June 30, 2017 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 96,709 $ 21,661 $ — $ 118,370 New equipment sales 38,819 6,850 — 45,669 Used equipment sales 19,333 4,773 — 24,106 Parts sales 25,458 4,267 — 29,725 Services revenues 13,395 2,549 — 15,944 Other 12,590 2,959 — 15,549 Total revenues 206,304 43,059 — 249,363 Cost of revenues: Rental depreciation 34,542 7,296 — 41,838 Rental expense 16,740 3,422 — 20,162 New equipment sales 34,315 6,135 — 40,450 Used equipment sales 14,056 2,946 — 17,002 Parts sales 18,712 3,010 — 21,722 Services revenues 4,479 853 — 5,332 Other 12,567 2,950 — 15,517 Total cost of revenues 135,411 26,612 — 162,023 Gross profit: Equipment rentals 45,427 10,943 — 56,370 New equipment sales 4,504 715 — 5,219 Used equipment sales 5,277 1,827 — 7,104 Parts sales 6,746 1,257 — 8,003 Services revenues 8,916 1,696 — 10,612 Other 23 9 — 32 Gross profit 70,893 16,447 — 87,340 Selling, general and administrative expenses 52,766 7,041 — 59,807 Equity in earnings of guarantor subsidiaries 1,212 — (1,212 ) — Gain on sales of property and equipment, net 905 230 — 1,135 Income from operations 20,244 9,636 (1,212 ) 28,668 Other income (expense): Interest expense (7,407 ) (5,966 ) — (13,373 ) Other, net 274 99 — 373 Total other expense, net (7,133 ) (5,867 ) — (13,000 ) Income before income taxes 13,111 3,769 (1,212 ) 15,668 Income tax expense 5,790 — — 5,790 Net income $ 7,321 $ 3,769 $ (1,212 ) $ 9,878 CONDENSED CONSOLIDATING STATEMENT OF INCOME Six Months Ended June 30, 2018 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 234,291 $ 38,899 $ — $ 273,190 New equipment sales 95,601 19,431 — 115,032 Used equipment sales 46,388 10,605 — 56,993 Parts sales 50,434 7,998 — 58,432 Services revenues 26,761 5,063 — 31,824 Other 29,719 5,656 — 35,375 Total revenues 483,194 87,652 — 570,846 Cost of revenues: Rental depreciation 83,509 14,131 — 97,640 Rental expense 37,126 6,219 — 43,345 New equipment sales 84,795 17,276 — 102,071 Used equipment sales 31,391 7,318 — 38,709 Parts sales 36,943 5,605 — 42,548 Services revenues 9,117 1,685 — 10,802 Other 29,245 5,798 — 35,043 Total cost of revenues 312,126 58,032 — 370,158 Gross profit (loss): Equipment rentals 113,656 18,549 — 132,205 New equipment sales 10,806 2,155 — 12,961 Used equipment sales 14,997 3,287 — 18,284 Parts sales 13,491 2,393 — 15,884 Services revenues 17,644 3,378 — 21,022 Other 474 (142 ) — 332 Gross profit 171,068 29,620 — 200,688 Selling, general and administrative expenses 112,746 22,180 — 134,926 Merger costs 220 — — 220 Equity in earnings of guarantor subsidiaries 2,948 — (2,948 ) — Gain on sales of property and equipment, net 4,737 150 — 4,887 Income from operations 65,787 7,590 (2,948 ) 70,429 Other income (expense): Interest expense (25,596 ) (4,750 ) — (30,346 ) Other, net 746 108 — 854 Total other expense, net (24,850 ) (4,642 ) — (29,492 ) Income before income taxes 40,937 2,948 (2,948 ) 40,937 Income tax expense 10,688 — — 10,688 Net income $ 30,249 $ 2,948 $ (2,948 ) $ 30,249 CONDENSED CONSOLIDATING STATEMENT OF INCOME Six Months Ended June 30, 2017 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Revenues: Equipment rentals $ 184,992 $ 40,695 $ — $ 225,687 New equipment sales 68,494 11,449 — 79,943 Used equipment sales 42,474 10,495 — 52,969 Parts sales 48,599 8,126 — 56,725 Services revenues 26,090 4,934 — 31,024 Other 24,342 5,501 — 29,843 Total revenues 394,991 81,200 — 476,191 Cost of revenues: Rental depreciation 68,290 14,451 — 82,741 Rental expense 31,976 6,560 — 38,536 New equipment sales 60,685 10,146 — 70,831 Used equipment sales 30,155 6,708 — 36,863 Parts sales 35,437 5,721 — 41,158 Services revenues 8,690 1,641 — 10,331 Other 24,820 5,899 — 30,719 Total cost of revenues 260,053 51,126 — 311,179 Gross profit (loss): Equipment rentals 84,726 19,684 — 104,410 New equipment sales 7,809 1,303 — 9,112 Used equipment sales 12,319 3,787 — 16,106 Parts sales 13,162 2,405 — 15,567 Services revenues 17,400 3,293 — 20,693 Other (478 ) (398 ) — (876 ) Gross profit 134,938 30,074 — 165,012 Selling, general and administrative expenses 103,001 14,124 — 117,125 Equity in earnings of guarantor subsidiaries 4,981 — (4,981 ) — Gain on sales of property and equipment, net 1,629 477 — 2,106 Income from operations 38,547 16,427 (4,981 ) 49,993 Other income (expense): Interest expense (14,970 ) (11,635 ) — (26,605 ) Other, net 621 189 — 810 Total other expense, net (14,349 ) (11,446 ) — (25,795 ) Income before income taxes 24,198 4,981 (4,981 ) 24,198 Income tax expense 8,930 — — 8,930 Net income $ 15,268 $ 4,981 $ (4,981 ) $ 15,268 |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2018 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 30,249 $ 2,948 $ (2,948 ) $ 30,249 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 10,606 1,479 — 12,085 Depreciation of rental equipment 83,509 14,131 — 97,640 Amortization of intangible assets 1,485 — — 1,485 Amortization of deferred financing costs 557 — — 557 Accretion of note discount, net of premium amortization 239 — — 239 Provision for losses on accounts receivable 1,195 484 — 1,679 Provision for inventory obsolescence 71 — — 71 Change in deferred income taxes 10,743 — — 10,743 Stock-based compensation expense 2,081 — — 2,081 Gain from sales of property and equipment, net (4,737 ) (150 ) — (4,887 ) Gain from sales of rental equipment, net (14,717 ) (3,289 ) — (18,006 ) Equity in earnings of guarantor subsidiaries (2,948 ) — 2,948 — Changes in operating assets and liabilities: Receivables 5,599 3,522 — 9,121 Inventories (90,519 ) (13,112 ) — (103,631 ) Prepaid expenses and other assets (95 ) (33 ) — (128 ) Accounts payable 59,775 (70 ) — 59,705 Manufacturer flooring plans payable 7,551 (793 ) — 6,758 Accrued expenses payable and other liabilities 1,395 (1,784 ) — (389 ) Deferred compensation payable 43 — — 43 Net cash provided by operating activities 102,082 3,333 — 105,415 Cash flows from investing activities: Acquisition of business, net of cash acquired (196,027 ) — (196,027 ) Purchases of property and equipment (12,990 ) (6,571 ) — (19,561 ) Purchases of rental equipment (189,589 ) (28,239 ) — (217,828 ) Proceeds from sales of property and equipment 6,537 150 — 6,687 Proceeds from sales of rental equipment 41,946 10,231 — 52,177 Investment in subsidiaries (21,208 ) — 21,208 — Net cash used in investing activities. (371,331 ) (24,429 ) 21,208 (374,552 ) Cash flows from financing activities: Borrowings on senior secured credit facility 735,775 — — 735,775 Payments on senior secured credit facility (603,112 ) — — (603,112 ) Dividends paid (19,616 ) (3 ) — (19,619 ) Payment of deferred financing costs (97 ) — — (97 ) Payments on capital lease obligations — (109 ) — (109 ) Capital contributions — 21,208 (21,208 ) — Net cash provided by financing activities 112,950 21,096 (21,208 ) 112,838 Net decrease in cash (156,299 ) — — (156,299 ) Cash, beginning of period 165,878 — — 165,878 Cash, end of period $ 9,579 $ — $ — $ 9,579 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2017 H&E Services Guarantor Subsidiaries Elimination Consolidated (Amounts in thousands) Cash flows from operating activities: Net income $ 15,268 $ 4,981 $ (4,981 ) $ 15,268 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization on property and equipment 10,535 1,580 — 12,115 Depreciation of rental equipment 68,290 14,451 — 82,741 Amortization of deferred financing costs 526 — — 526 Accretion of note discount, net of premium amortization 84 — — 84 Provision for losses on accounts receivable 1,484 374 — 1,858 Provision for inventory obsolescence 71 — — 71 Change in deferred income taxes 9,968 — — 9,968 Stock-based compensation expense 1,894 — — 1,894 Gain from sales of property and equipment, net (1,629 ) (477 ) — (2,106 ) Gain from sales of rental equipment, net (11,595 ) (3,754 ) — (15,349 ) Equity in earnings of guarantor subsidiaries (4,981 ) — 4,981 — Changes in operating assets and liabilities: Receivables (2,027 ) (1,247 ) — (3,274 ) Inventories (36,815 ) (12,770 ) — (49,585 ) Prepaid expenses and other assets (1,860 ) (51 ) — (1,911 ) Accounts payable 37,724 3,897 — 41,621 Manufacturer flooring plans payable (6,666 ) 1,710 — (4,956 ) Accrued expenses payable and other liabilities 2,855 860 — 3,715 Deferred compensation payable 27 — — 27 Net cash provided by operating activities 83,153 9,554 — 92,707 Cash flows from investing activities: Purchases of property and equipment (10,915 ) (1,222 ) — (12,137 ) Purchases of rental equipment (87,518 ) (25,428 ) — (112,946 ) Proceeds from sales of property and equipment 2,548 589 — 3,137 Proceeds from sales of rental equipment 35,760 10,253 — 46,013 Investment in subsidiaries (6,365 ) — 6,365 — Net cash used in investing activities (66,490 ) (15,808 ) 6,365 (75,933 ) Cash flows from financing activities: Borrowings on senior secured credit facility 484,252 — — 484,252 Payments on senior secured credit facility (482,042 ) — — (482,042 ) Dividends paid (19,561 ) (4 ) — (19,565 ) Payments on capital lease obligations — (107 ) — (107 ) Capital contributions — 6,365 (6,365 ) — Net cash provided by (used in) financing activities (17,351 ) 6,254 (6,365 ) (17,462 ) Net decrease in cash (688 ) — — (688 ) Cash, beginning of period 7,683 — — 7,683 Cash, end of period $ 6,995 $ — $ — $ 6,995 |
Significant Accounting Polici27
Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018USD ($)LocationCustomer | Jun. 30, 2017USD ($)Customer | Jun. 30, 2018USD ($)LocationCustomer | Jun. 30, 2017USD ($)Customer | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary Of Significant Accounting Policy [Line Items] | |||||||
Number of branch locations | Location | 12 | 12 | |||||
Operating leases include real estate, number of branch location located | Location | 89 | 89 | |||||
Freight costs related to parts transactions | $ 202,261 | $ 162,023 | $ 370,158 | $ 311,179 | |||
Sales to international customers | 0.10% | 0.10% | 0.20% | 0.40% | |||
Customer accounted for more than 10% of revenue | Customer | 0 | 0 | 0 | 0 | |||
Bad debt expense as a percentage of total revenues | 0.30% | 0.40% | |||||
Accounting Standards Update 2014-09 [Member] | Parts [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Revenues | $ 1,800 | $ 3,400 | |||||
Accounting Standards Update 2014-09 [Member] | Cargo and Freight [Member] | Parts [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Freight costs related to parts transactions | $ 1,400 | $ 2,600 | |||||
Maximum [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Lease term | 12 months | ||||||
Sales to international customers | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Significant Accounting Polici28
Significant Accounting Policies - Recast of Our Results for Prior Year (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues: | ||||
Revenues | $ 310,364 | $ 249,363 | $ 570,846 | $ 476,191 |
Cost of revenues: | ||||
Cost of revenues | 202,261 | 162,023 | 370,158 | 311,179 |
Gross profit | 108,103 | 87,340 | 200,688 | 165,012 |
Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 51,171 | 41,838 | 97,640 | 82,741 |
Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 22,073 | 20,162 | 43,345 | 38,536 |
Accounting Standards Update 2014-09 [Member] | ||||
Revenues: | ||||
Revenues | 161,567 | 288,629 | ||
Accounting Standards Update 2014-09 [Member] | As Previously Reported [Member] | ||||
Revenues: | ||||
Revenues | 249,363 | 476,191 | ||
Cost of revenues: | ||||
Cost of revenues | 162,023 | 311,179 | ||
Gross profit | 87,340 | 165,012 | ||
Accounting Standards Update 2014-09 [Member] | As Previously Reported [Member] | Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 41,838 | 82,741 | ||
Accounting Standards Update 2014-09 [Member] | As Previously Reported [Member] | Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 20,162 | 38,536 | ||
Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 291,577 | 233,814 | 535,471 | 446,348 |
Cost of revenues: | ||||
Gross profit | 107,652 | 87,308 | 200,356 | 165,888 |
Operating Segments [Member] | Equipment Rentals [Member] | ||||
Revenues: | ||||
Revenues | 143,829 | 118,370 | 273,190 | 225,687 |
Cost of revenues: | ||||
Gross profit | 70,585 | 56,370 | 132,205 | 104,410 |
Operating Segments [Member] | Equipment Rentals [Member] | Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 51,171 | 41,838 | 97,640 | 82,741 |
Operating Segments [Member] | Equipment Rentals [Member] | Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 22,073 | 20,162 | 43,345 | 38,536 |
Operating Segments [Member] | New Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 68,539 | 45,669 | 115,032 | 79,943 |
Cost of revenues: | ||||
Cost of revenues | 61,226 | 40,450 | 102,071 | 70,831 |
Gross profit | 7,313 | 5,219 | 12,961 | 9,112 |
Operating Segments [Member] | Used Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 32,140 | 24,106 | 56,993 | 52,969 |
Cost of revenues: | ||||
Cost of revenues | 21,772 | 17,002 | 38,709 | 36,863 |
Gross profit | 10,368 | 7,104 | 18,284 | 16,106 |
Operating Segments [Member] | Parts Sales [Member] | ||||
Revenues: | ||||
Revenues | 30,281 | 29,725 | 58,432 | 56,725 |
Cost of revenues: | ||||
Cost of revenues | 21,931 | 21,722 | 42,548 | 41,158 |
Gross profit | 8,350 | 8,003 | 15,884 | 15,567 |
Operating Segments [Member] | Services Revenues [Member] | ||||
Revenues: | ||||
Revenues | 16,788 | 15,944 | 31,824 | 31,024 |
Cost of revenues: | ||||
Cost of revenues | 5,752 | 5,332 | 10,802 | 10,331 |
Gross profit | 11,036 | 10,612 | 21,022 | 20,693 |
Operating Segments [Member] | Accounting Standards Update 2014-09 [Member] | Equipment Rentals [Member] | ||||
Revenues: | ||||
Revenues | 394 | 915 | ||
Operating Segments [Member] | Accounting Standards Update 2014-09 [Member] | Equipment Rentals [Member] | As Previously Reported [Member] | ||||
Revenues: | ||||
Revenues | 118,370 | 225,687 | ||
Operating Segments [Member] | Accounting Standards Update 2014-09 [Member] | New Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 68,539 | 115,032 | ||
Operating Segments [Member] | Accounting Standards Update 2014-09 [Member] | New Equipment Sales [Member] | As Previously Reported [Member] | ||||
Revenues: | ||||
Revenues | 45,669 | 79,943 | ||
Cost of revenues: | ||||
Cost of revenues | 40,450 | 70,831 | ||
Operating Segments [Member] | Accounting Standards Update 2014-09 [Member] | Used Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 32,140 | 56,993 | ||
Operating Segments [Member] | Accounting Standards Update 2014-09 [Member] | Used Equipment Sales [Member] | As Previously Reported [Member] | ||||
Revenues: | ||||
Revenues | 24,106 | 52,969 | ||
Cost of revenues: | ||||
Cost of revenues | 17,002 | 36,863 | ||
Operating Segments [Member] | Accounting Standards Update 2014-09 [Member] | Parts Sales [Member] | ||||
Revenues: | ||||
Revenues | 30,281 | 58,432 | ||
Operating Segments [Member] | Accounting Standards Update 2014-09 [Member] | Parts Sales [Member] | As Previously Reported [Member] | ||||
Revenues: | ||||
Revenues | 27,969 | 53,300 | ||
Cost of revenues: | ||||
Cost of revenues | 20,358 | 38,571 | ||
Operating Segments [Member] | Accounting Standards Update 2014-09 [Member] | Parts Sales [Member] | Adjustments [Member] | ||||
Revenues: | ||||
Revenues | 1,756 | 3,425 | ||
Cost of revenues: | ||||
Cost of revenues | 1,364 | 2,587 | ||
Operating Segments [Member] | Accounting Standards Update 2014-09 [Member] | Services Revenues [Member] | As Previously Reported [Member] | ||||
Revenues: | ||||
Revenues | 15,944 | 31,024 | ||
Cost of revenues: | ||||
Cost of revenues | 5,332 | 10,331 | ||
Other [Member] | ||||
Revenues: | ||||
Revenues | 18,787 | 15,549 | 35,375 | 29,843 |
Cost of revenues: | ||||
Cost of revenues | 18,336 | 15,517 | 35,043 | 30,719 |
Gross profit | 451 | 32 | 332 | (876) |
Other [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Revenues: | ||||
Revenues | $ 13,425 | $ 25,433 | ||
Other [Member] | Accounting Standards Update 2014-09 [Member] | As Previously Reported [Member] | ||||
Revenues: | ||||
Revenues | 17,305 | 33,268 | ||
Cost of revenues: | ||||
Cost of revenues | 16,881 | 33,306 | ||
Other [Member] | Accounting Standards Update 2014-09 [Member] | Adjustments [Member] | ||||
Revenues: | ||||
Revenues | (1,756) | (3,425) | ||
Cost of revenues: | ||||
Cost of revenues | $ (1,364) | $ (2,587) |
Significant Accounting Polici29
Significant Accounting Policies - Summary of Revenue by Type and by Applicable Accounting Standard (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues: | ||||
Revenues | $ 310,364 | $ 249,363 | $ 570,846 | $ 476,191 |
Topic 840 [Member] | ||||
Revenues: | ||||
Revenues | 148,797 | 122,163 | 282,217 | 232,784 |
Topic 606 [Member] | ||||
Revenues: | ||||
Revenues | 161,567 | 288,629 | ||
Topic 605 [Member] | ||||
Revenues: | ||||
Revenues | 127,200 | 243,407 | ||
Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 291,577 | 233,814 | 535,471 | 446,348 |
Operating Segments [Member] | Equipment Rentals [Member] | ||||
Revenues: | ||||
Revenues | 143,829 | 118,370 | 273,190 | 225,687 |
Operating Segments [Member] | Equipment Rentals [Member] | Topic 840 [Member] | ||||
Revenues: | ||||
Revenues | 143,435 | 117,850 | 272,275 | 224,633 |
Operating Segments [Member] | Equipment Rentals [Member] | Topic 606 [Member] | ||||
Revenues: | ||||
Revenues | 394 | 915 | ||
Operating Segments [Member] | Equipment Rentals [Member] | Topic 605 [Member] | ||||
Revenues: | ||||
Revenues | 520 | 1,054 | ||
Operating Segments [Member] | New Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 68,539 | 45,669 | 115,032 | 79,943 |
Operating Segments [Member] | New Equipment Sales [Member] | Topic 606 [Member] | ||||
Revenues: | ||||
Revenues | 68,539 | 115,032 | ||
Operating Segments [Member] | New Equipment Sales [Member] | Topic 605 [Member] | ||||
Revenues: | ||||
Revenues | 45,669 | 79,943 | ||
Operating Segments [Member] | Used Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 32,140 | 24,106 | 56,993 | 52,969 |
Operating Segments [Member] | Used Equipment Sales [Member] | Topic 606 [Member] | ||||
Revenues: | ||||
Revenues | 32,140 | 56,993 | ||
Operating Segments [Member] | Used Equipment Sales [Member] | Topic 605 [Member] | ||||
Revenues: | ||||
Revenues | 24,106 | 52,969 | ||
Operating Segments [Member] | Parts Sales [Member] | ||||
Revenues: | ||||
Revenues | 30,281 | 29,725 | 58,432 | 56,725 |
Operating Segments [Member] | Parts Sales [Member] | Topic 606 [Member] | ||||
Revenues: | ||||
Revenues | 30,281 | 58,432 | ||
Operating Segments [Member] | Parts Sales [Member] | Topic 605 [Member] | ||||
Revenues: | ||||
Revenues | 29,725 | 56,725 | ||
Operating Segments [Member] | Parts and Services [Member] | ||||
Revenues: | ||||
Revenues | 16,788 | 15,944 | 31,824 | 31,024 |
Operating Segments [Member] | Parts and Services [Member] | Topic 606 [Member] | ||||
Revenues: | ||||
Revenues | 16,788 | 31,824 | ||
Operating Segments [Member] | Parts and Services [Member] | Topic 605 [Member] | ||||
Revenues: | ||||
Revenues | 15,944 | 31,024 | ||
Other [Member] | ||||
Revenues: | ||||
Revenues | 18,787 | 15,549 | 35,375 | 29,843 |
Other [Member] | Topic 840 [Member] | ||||
Revenues: | ||||
Revenues | 5,362 | 4,313 | 9,942 | 8,151 |
Other [Member] | Topic 606 [Member] | ||||
Revenues: | ||||
Revenues | $ 13,425 | $ 25,433 | ||
Other [Member] | Topic 605 [Member] | ||||
Revenues: | ||||
Revenues | $ 11,236 | $ 21,692 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ / shares in Units, $ in Thousands | Apr. 02, 2018USD ($)BranchEmployee | Jan. 02, 2018USD ($)BranchEmployee | Jun. 30, 2018USD ($)Location$ / shares | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Location$ / shares | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||||||
Number of branches located | Location | 12 | 12 | ||||||
Acquisition costs | $ 68 | $ 220 | ||||||
Total revenues | 310,364 | $ 249,363 | 570,846 | $ 476,191 | ||||
Net income | 20,771 | $ 9,878 | 30,249 | $ 15,268 | ||||
CEC [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, completion date | Jan. 1, 2018 | |||||||
Number of branches located | Branch | 3 | |||||||
Number of employees | Employee | 100 | |||||||
Business combination, rental assets at original equipment cost | $ 84,000 | |||||||
Business acquisition, total revenues | $ 34,000 | |||||||
Aggregate consideration paid to the owners | $ 132,400 | |||||||
Acquisition costs | $ 900 | 200 | 200 | |||||
Total revenues | 9,800 | 21,500 | ||||||
Net income | $ 1,000 | $ 2,600 | ||||||
Net income per share | $ / shares | $ 0.03 | $ 0.07 | ||||||
Rental Inc [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, completion date | Apr. 1, 2018 | |||||||
Number of branches located | Branch | 5 | |||||||
Number of employees | Employee | 65 | |||||||
Business combination, rental assets at original equipment cost | $ 35,000 | |||||||
Aggregate consideration paid to the owners | $ 68,600 | |||||||
Acquisition costs | $ 200 | $ 100 | $ 100 | |||||
Total revenues | 7,600 | 7,600 | ||||||
Net income | $ 100 | $ 100 | ||||||
Net income per share | $ / shares | $ 0 | $ 0 |
Acquisitions - Summary of Estim
Acquisitions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Apr. 02, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 105,843 | $ 31,197 | ||
CEC [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 1,244 | |||
Accounts receivable, net of allowance for doubtful accounts | 7,583 | |||
Inventory | 504 | |||
Prepaid expenses and other assets | 324 | |||
Rental equipment | 55,342 | |||
Property and equipment | 2,700 | |||
Intangible assets | 21,500 | |||
Total identifiable assets acquired | 89,197 | |||
Accounts payable | (1,023) | |||
Accrued expenses payable and other liabilities | (876) | |||
Total liabilities assumed | (1,899) | |||
Net identifiable assets acquired | 87,298 | |||
Goodwill | 45,092 | |||
Net assets acquired | $ 132,390 | |||
Rental Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 260 | |||
Accounts receivable, net of allowance for doubtful accounts | 2,873 | |||
Inventory | 5,324 | |||
Prepaid expenses and other assets | 47 | |||
Rental equipment | 22,578 | |||
Property and equipment | 1,935 | |||
Intangible assets | 10,200 | |||
Total identifiable assets acquired | 43,217 | |||
Accounts payable | (439) | |||
Manufacturer flooring plans payable | (3,293) | |||
Accrued expenses payable and other liabilities | (469) | |||
Total liabilities assumed | (4,201) | |||
Net identifiable assets acquired | 39,016 | |||
Goodwill | 29,554 | |||
Net assets acquired | $ 68,570 |
Acquisitions - Summary of Est32
Acquisitions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) $ in Thousands | Apr. 02, 2018USD ($)ReportingUnit | Jan. 02, 2018USD ($)ReportingUnit | Jun. 30, 2018USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 105,843 | $ 31,197 | |||
CEC [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair value of accounts receivables | $ 7,583 | ||||
Fair value of accounts receivables, gross contractual amount | 7,700 | ||||
Fair Value (amounts in thousands) | $ 21,500 | ||||
Goodwill | $ 45,092 | ||||
Number of goodwill reporting units | ReportingUnit | 6 | ||||
Percentage of goodwill deductible for income tax purposes | 100.00% | ||||
CEC [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value (amounts in thousands) | $ 21,000 | ||||
Life (years) | 10 years | ||||
CEC [Member] | Tradenames [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value (amounts in thousands) | $ 300 | ||||
Life (years) | 1 year | ||||
CEC [Member] | Leasehold Interests [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value (amounts in thousands) | $ 200 | ||||
Life (years) | 10 years | ||||
Rental Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair value of accounts receivables | $ 2,873 | ||||
Fair value of accounts receivables, gross contractual amount | 3,100 | ||||
Fair Value (amounts in thousands) | 10,200 | ||||
Goodwill | $ 29,554 | ||||
Number of goodwill reporting units | ReportingUnit | 6 | ||||
Percentage of goodwill deductible for income tax purposes | 100.00% | ||||
Rental Inc [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value (amounts in thousands) | $ 10,000 | ||||
Life (years) | 10 years | ||||
Rental Inc [Member] | Tradenames [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value (amounts in thousands) | $ 200 | ||||
Life (years) | 1 year |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Consolidated Statements of Income Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Total revenues | $ 310,364 | $ 249,363 | $ 570,846 | $ 476,191 |
Pretax income | 27,869 | 15,668 | 40,937 | 24,198 |
Provision for income taxes | 7,098 | 5,790 | 10,688 | 8,930 |
Net income | $ 20,771 | $ 9,878 | $ 30,249 | $ 15,268 |
Basic | $ 0.58 | $ 0.28 | $ 0.85 | $ 0.43 |
Diluted | $ 0.58 | $ 0.28 | $ 0.84 | $ 0.43 |
Pro forma adjustments to pretax income: | ||||
Total revenues | $ 266,482 | $ 578,254 | $ 509,945 | |
Pretax income | 19,221 | 41,957 | 31,245 | |
Pro forma adjustments to pretax income: | ||||
Impact of fair value mark-ups/useful life changes on depreciation | (1,547) | (749) | (3,093) | |
Intangible asset amortization | (980) | (275) | (1,960) | |
Interest expense | (475) | (480) | (995) | |
Elimination of historic interest expense | 241 | 82 | 465 | |
Pro forma pretax income (loss) | 16,460 | 40,535 | 25,662 | |
Income tax expense (benefit) | 6,079 | 10,583 | 9,464 | |
Net income (loss) | $ 10,381 | $ 29,952 | $ 16,198 | |
Net income (loss) per share – basic | $ 0.29 | $ 0.84 | $ 0.46 | |
Net income (loss) per share - diluted | $ 0.29 | $ 0.83 | $ 0.45 | |
Net income | $ 20,771 | $ 9,878 | $ 30,249 | $ 15,268 |
CEC [Member] | ||||
Business Acquisition [Line Items] | ||||
Total revenues | 9,800 | 21,500 | ||
Net income | 1,000 | 2,600 | ||
Total revenues | 8,140 | 16,529 | ||
Pretax income | 1,448 | 2,889 | ||
Pro forma adjustments to pretax income: | ||||
Impact of fair value mark-ups/useful life changes on depreciation | (809) | (1,712) | ||
Intangible asset amortization | (705) | (1,410) | ||
Elimination of historic interest expense | 139 | 263 | ||
Pro forma pretax income (loss) | 73 | 30 | ||
Income tax expense (benefit) | 27 | 11 | ||
Net income (loss) | 46 | 19 | ||
Pro forma adjustments to pretax income: | ||||
Net income | 1,000 | 2,600 | ||
Rental Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Total revenues | 7,600 | 7,600 | ||
Net income | 100 | 100 | ||
Total revenues | 8,979 | 7,408 | 17,225 | |
Pretax income | 2,105 | 1,020 | 4,158 | |
Pro forma adjustments to pretax income: | ||||
Impact of fair value mark-ups/useful life changes on depreciation | (738) | (749) | (1,381) | |
Intangible asset amortization | (275) | (275) | (550) | |
Interest expense | (475) | (480) | (995) | |
Elimination of historic interest expense | 102 | 82 | 202 | |
Pro forma pretax income (loss) | 719 | (402) | 1,434 | |
Income tax expense (benefit) | 262 | (105) | 523 | |
Net income (loss) | $ 457 | $ (297) | $ 911 | |
Net income (loss) per share – basic | $ 0.01 | $ (0.01) | $ 0.03 | |
Net income (loss) per share - diluted | $ 0.01 | $ (0.01) | $ 0.03 | |
Pro forma adjustments to pretax income: | ||||
Net income | $ 100 | $ 100 |
Acquisitions - Unaudited Pro 34
Acquisitions - Unaudited Pro Forma Consolidated Statements of Income Information (Detail) (Parenthetical) | Apr. 02, 2018 |
Rental Inc [Member] | |
Business Acquisition [Line Items] | |
Business acquisition, completion date | Apr. 1, 2018 |
Fair Value of Financial Instr35
Fair Value of Financial Instruments - Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
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% (Level 3) | $ 28,760 | $ 22,002 |
Capital leases payable (Level 3) | 829 | 1,486 |
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% (Level 3) | 24,492 | 18,737 |
Capital leases payable (Level 3) | 704 | 1,114 |
Letter of credit (Level 3) | 116 | 116 |
Level 1 [Member] | Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior unsecured notes with interest computedat 5.625% (Level 1) | 944,388 | 944,088 |
Level 1 [Member] | Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior unsecured notes with interest computedat 5.625% (Level 1) | $ 935,750 | $ 619,019 |
Fair Value of Financial Instr36
Fair Value of Financial Instruments - Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements (Parenthetical) (Detail) | Jun. 30, 2018 | Dec. 31, 2017 |
Carrying Amount [Member] | Level 3 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Manufacturer flooring plans payable, interest rate | 4.50% | 4.50% |
Capital lease payable, interest rate | 5.929% | |
Capital lease payable, interest rate, minimum | 5.929% | |
Capital lease payable interest rate, maximum | 9.55% | |
Carrying Amount [Member] | Level 1 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior unsecured notes, interest rate | 5.625% | 5.625% |
Fair Value [Member] | Level 3 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Manufacturer flooring plans payable, interest rate | 4.50% | 4.50% |
Capital lease payable, interest rate | 5.929% | |
Capital lease payable, interest rate, minimum | 5.929% | |
Capital lease payable interest rate, maximum | 9.55% | |
Fair Value [Member] | Level 1 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior unsecured notes, interest rate | 5.625% | 5.625% |
Fair Value of Financial Instr37
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfer of financial assets | $ 0 | $ 0 | $ 0 | $ 0 | |
Transfer of financial liabilities | $ 0 | $ 0 | $ 0 | $ 0 | |
Fair Value [Member] | Senior Unsecured Notes Due 2025 [Member] | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Senior unsecured notes, due year | 2,025 | 2,025 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Activity in Stockholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Schedule of Capitalization, Equity [Line Items] | ||||
Beginning balance, value | $ 216,793 | |||
Beginning balance, shares | 39,623,773 | |||
Stock-based compensation | $ 2,081 | |||
Cash dividends declared on common stock ($0.275 per share) | (19,658) | |||
Issuance of common stock, net of forfeitures | (109) | |||
Net income | $ 20,771 | $ 9,878 | 30,249 | $ 15,268 |
Ending balance, value | $ 229,356 | $ 229,356 | ||
Ending balance, shares | 39,662,340 | 39,662,340 | ||
Common Stock [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Beginning balance, value | $ 395 | |||
Beginning balance, shares | 39,623,773 | |||
Issuance of common stock, net of forfeitures | $ 1 | |||
Issuance of common stock, net of forfeitures, shares | 38,567 | |||
Ending balance, value | $ 396 | $ 396 | ||
Ending balance, shares | 39,662,340 | 39,662,340 | ||
Additional Paid-in Capital [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Beginning balance, value | $ 227,070 | |||
Stock-based compensation | 2,081 | |||
Issuance of common stock, net of forfeitures | (110) | |||
Ending balance, value | $ 229,041 | 229,041 | ||
Treasury Stock [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Beginning balance, value | (61,749) | |||
Ending balance, value | (61,749) | (61,749) | ||
Retained Earnings (Deficit) [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Beginning balance, value | 51,077 | |||
Cash dividends declared on common stock ($0.275 per share) | (19,658) | |||
Net income | 30,249 | |||
Ending balance, value | $ 61,668 | $ 61,668 |
Stockholders' Equity - Summar39
Stockholders' Equity - Summary of Activity in Stockholders' Equity (Parenthetical) (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Schedule of Capitalization, Equity [Line Items] | ||||
Cash dividends declared on common stock, per share | $ 0.275 | $ 0.275 | $ 0.55 | $ 0.55 |
Retained Earnings (Deficit) [Member] | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Cash dividends declared on common stock, per share | $ 0.275 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation expense related to non-vested stock | $ | $ 3.3 |
Expected non-vested stock recognized over a weighted-average period | 1 year 8 months 12 days |
2016 Stock-Based Incentive Compensation Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock-Based incentive compensation plan | shares | 1,857,004 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Non-Vested Stock Activity (Detail) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Non-vested stock, beginning balance, Number of Shares | shares | 445,964 |
Granted, Number of Shares | shares | 16,152 |
Vested, Number of Shares | shares | (56,834) |
Forfeited, Number of Shares | shares | (23,381) |
Non-vested stock, ending balance, Number of Shares | shares | 381,901 |
Non-vested stock, beginning balance, Weighted Average Grant Date Fair Value | $ / shares | $ 19.70 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 39.53 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 23.46 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 18.03 |
Non-vested stock, ending balance, Weighted Average Grant Date Fair Value | $ / shares | $ 20.08 |
Stock-Based Compensation - Sc42
Stock-Based Compensation - Schedule of Compensation Expense Related to Non-Vested Stock (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Compensation expense | $ 762 | $ 713 | $ 2,081 | $ 1,894 |
Income per Share - Additional I
Income per Share - Additional Information (Detail) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||
Restricted common shares, percentage | 0.80% | 0.80% |
Income per Share - Summary of C
Income per Share - Summary of Computation of Basic and Diluted Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic net income per share: | ||||
Net income | $ 20,771 | $ 9,878 | $ 30,249 | $ 15,268 |
Weighted average number of common shares outstanding | 35,634 | 35,473 | 35,613 | 35,469 |
Net income per share of common stock – basic | $ 0.58 | $ 0.28 | $ 0.85 | $ 0.43 |
Diluted net income per share: | ||||
Net income | $ 20,771 | $ 9,878 | $ 30,249 | $ 15,268 |
Weighted average number of common shares outstanding | 35,634 | 35,473 | 35,613 | 35,469 |
Effect of dilutive securities: | ||||
Weighted average number of common shares outstanding – diluted | 35,906 | 35,631 | 35,893 | 35,626 |
Net income per share of common stock – diluted | $ 0.58 | $ 0.28 | $ 0.84 | $ 0.43 |
Non-vested restricted stock [Member] | ||||
Effect of dilutive securities: | ||||
Effect of dilutive stock options and non-vested restricted stock | 272 | 158 | 280 | 157 |
Senior Secured Credit Facility
Senior Secured Credit Facility - Additional Information (Detail) - USD ($) | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 19, 2018 | Dec. 22, 2017 | Dec. 21, 2017 | |
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Unused commitment fee margin percentage | 0.375% | |||
Maximum [Member] | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Margin rate lowered in applicable to Letter of Credit | 2.00% | |||
Maximum [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin Percentage | 1.00% | |||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin Percentage | 2.00% | |||
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Unused commitment fee margin percentage | 0.25% | |||
Minimum [Member] | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Margin rate lowered in applicable to Letter of Credit | 1.50% | |||
Minimum [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin Percentage | 0.50% | |||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin Percentage | 1.50% | |||
Wells Fargo Capital Finance, LLC [Member] | Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Existing credit facility with its lenders | $ 750,000,000 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Existing credit facility with its lenders | $ 750,000,000 | $ 602,500,000 | ||
Debt instrument maturity date description | Extends the maturity date of the credit facility from May 21, 2019 to December 22, 2022 | |||
Uncommitted incremental revolving capacity | 250,000,000 | $ 150,000,000 | ||
Outstanding letters of credit | $ 132,700 | |||
Available borrowings under our senior secured credit facility | $ 609,600,000 | |||
Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding letters of credit | $ 7,700,000 | |||
Available borrowings under our senior secured credit facility | $ 592,900,000 | |||
Letter of Credit Sub-Facility, and Guaranty [Member] | ||||
Debt Instrument [Line Items] | ||||
Existing credit facility with its lenders | $ 30,000,000 |
Senior Unsecured Notes - Additi
Senior Unsecured Notes - Additional Information (Detail) - USD ($) | Nov. 22, 2017 | Sep. 25, 2017 | Aug. 24, 2017 | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||
Estimated offering expenses | $ 3,375,000 | $ 3,772,000 | |||
Add-on Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 200,000,000 | ||||
Senior unsecured notes, interest rate | 5.625% | ||||
Senior unsecured notes, maturity year | 2,025 | ||||
Net proceeds from sale of notes | $ 209,200 | ||||
Price percentage for Add-on Notes, Principal amount | 104.25% | ||||
5.6250% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 750,000,000 | ||||
Senior unsecured notes, interest rate | 5.625% | ||||
Senior unsecured notes, maturity year | 2,025 | ||||
Estimated offering expenses | $ 10,300,000 | ||||
Net proceeds from sale of notes | $ 739,700,000 | ||||
Redemption price percentage as equal to principal amount of old notes to be redeemed | 101.00% | ||||
Principal payments due until maturity | $ 0 | ||||
Maturity date of notes | Sep. 1, 2025 | ||||
5.6250% Senior Notes [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of principal amount of new notes to be redeemed | 40.00% | ||||
7% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes, interest rate | 7.00% | ||||
Senior unsecured notes, maturity year | 2,022 | ||||
Repurchase of notes | $ 329,700,000 | ||||
Early tender deadline amount received on debt instrument | 1,038.90 | ||||
Principal amount of old notes | $ 1,000 | ||||
Remaining principal amount outstanding of old notes redeemed | $ 300,300,000 | ||||
Redemption price percentage as equal to principal amount of old notes to be redeemed | 103.50% |
Senior Unsecured Notes - Reconc
Senior Unsecured Notes - Reconciliation of Senior Unsecured Notes to Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | 4 Months Ended | 6 Months Ended | 8 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Aug. 24, 2017 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||||
Senior unsecured notes, beginning balance | $ 944,088 | ||||
Amortization of deferred financing costs | 557 | $ 526 | |||
Senior unsecured notes, ending balance | $ 944,088 | 944,388 | $ 944,088 | ||
Senior Unsecured Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes, beginning balance | 944,088 | $ 627,711 | $ 627,711 | 627,711 | |
Accretion of discount | 770 | ||||
Amortization of note premium | (531) | ||||
Amortization of deferred financing costs | 158 | 153 | |||
Senior unsecured notes, ending balance | 944,088 | 944,388 | 944,088 | ||
Senior Unsecured Notes [Member] | 7% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Accretion of discount | 683 | ||||
Amortization of note premium | $ (574) | ||||
Aggregate principal amount paid | (630,000) | ||||
Writeoff of unaccreted discount | 5,294 | ||||
Writeoff of unamortized premium | (4,452) | ||||
Writeoff of deferred financing costs | 1,185 | ||||
Senior Unsecured Notes [Member] | 5.6250% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount paid | 950,000 | ||||
Writeoff of unaccreted discount | (14,684) | ||||
Writeoff of unamortized premium | $ 8,500 | ||||
Accretion of discount | 542 | ||||
Amortization of note premium | (375) | ||||
Amortization of deferred financing costs | $ 105 | ||||
Additional deferred financing costs | $ (97) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018Customer | Jun. 30, 2017Customer | Jun. 30, 2018CustomerSegment | Jun. 30, 2017Customer | |
Segment Reporting [Abstract] | ||||
Number of reportable segment | Segment | 5 | |||
Sales to international customers | 0.10% | 0.10% | 0.20% | 0.40% |
Customer accounted for more than 10% of revenue | Customer | 0 | 0 | 0 | 0 |
Segment Information - Schedule
Segment Information - Schedule of Information about Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Segment Revenues: | |||||
Revenues | $ 310,364 | $ 249,363 | $ 570,846 | $ 476,191 | |
Segment Gross Profit: | |||||
Total gross profit | 108,103 | 87,340 | 200,688 | 165,012 | |
Segment identified assets: | |||||
Total assets | 1,699,648 | 1,699,648 | $ 1,467,717 | ||
Operating Segments [Member] | |||||
Segment Revenues: | |||||
Revenues | 291,577 | 233,814 | 535,471 | 446,348 | |
Segment Gross Profit: | |||||
Total gross profit | 107,652 | 87,308 | 200,356 | 165,888 | |
Segment identified assets: | |||||
Total assets | 1,253,153 | 1,253,153 | 979,828 | ||
Operating Segments [Member] | Equipment Rentals [Member] | |||||
Segment Revenues: | |||||
Revenues | 143,829 | 118,370 | 273,190 | 225,687 | |
Segment Gross Profit: | |||||
Total gross profit | 70,585 | 56,370 | 132,205 | 104,410 | |
Segment identified assets: | |||||
Total assets | 1,090,380 | 1,090,380 | 904,824 | ||
Operating Segments [Member] | New Equipment Sales [Member] | |||||
Segment Revenues: | |||||
Revenues | 68,539 | 45,669 | 115,032 | 79,943 | |
Segment Gross Profit: | |||||
Total gross profit | 7,313 | 5,219 | 12,961 | 9,112 | |
Operating Segments [Member] | Used Equipment Sales [Member] | |||||
Segment Revenues: | |||||
Revenues | 32,140 | 24,106 | 56,993 | 52,969 | |
Segment Gross Profit: | |||||
Total gross profit | 10,368 | 7,104 | 18,284 | 16,106 | |
Segment identified assets: | |||||
Total assets | 143,602 | 143,602 | 58,125 | ||
Operating Segments [Member] | Parts Sales [Member] | |||||
Segment Revenues: | |||||
Revenues | 30,281 | 29,725 | 58,432 | 56,725 | |
Segment Gross Profit: | |||||
Total gross profit | 8,350 | 8,003 | 15,884 | 15,567 | |
Operating Segments [Member] | Services Revenues [Member] | |||||
Segment Revenues: | |||||
Revenues | 16,788 | 15,944 | 31,824 | 31,024 | |
Segment Gross Profit: | |||||
Total gross profit | 11,036 | 10,612 | 21,022 | 20,693 | |
Operating Segments [Member] | Parts and Services [Member] | |||||
Segment Revenues: | |||||
Revenues | 16,788 | 15,944 | 31,824 | 31,024 | |
Segment identified assets: | |||||
Total assets | 19,171 | 19,171 | 16,879 | ||
Non-Segmented [Member] | |||||
Segment Revenues: | |||||
Revenues | 18,787 | 15,549 | 35,375 | 29,843 | |
Segment Gross Profit: | |||||
Total gross profit | 451 | $ 32 | 332 | $ (876) | |
Segment identified assets: | |||||
Total assets | $ 446,495 | $ 446,495 | $ 487,889 |
Condensed Consolidating Finan50
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash | $ 9,579 | $ 165,878 |
Receivables, net | 175,736 | 176,081 |
Inventories, net | 162,773 | 75,004 |
Prepaid expenses and other assets | 9,671 | 9,172 |
Rental equipment, net | 1,090,380 | 904,824 |
Property and equipment, net | 112,076 | 101,789 |
Deferred financing costs, net | 3,375 | 3,772 |
Intangible assets, net | 30,215 | |
Goodwill | 105,843 | 31,197 |
Total assets | 1,699,648 | 1,467,717 |
Liabilities and Stockholders’ Equity: | ||
Amounts due on senior secured credit facility | 132,663 | |
Accounts payable | 154,551 | 89,781 |
Manufacturer flooring plans payable | 28,760 | 22,002 |
Accrued expenses payable and other liabilities | 69,917 | 65,095 |
Dividends payable | 76 | 150 |
Senior unsecured notes | 944,388 | 944,088 |
Capital leases payable | 829 | 1,486 |
Deferred income taxes | 137,162 | 126,419 |
Deferred compensation payable | 1,946 | 1,903 |
Total liabilities | 1,470,292 | 1,250,924 |
Stockholders’ equity | 229,356 | 216,793 |
Total liabilities and stockholders’ equity | 1,699,648 | 1,467,717 |
H & E Equipment Services [Member] | ||
Assets: | ||
Cash | 9,579 | 165,878 |
Receivables, net | 142,318 | 138,657 |
Inventories, net | 141,811 | 63,828 |
Prepaid expenses and other assets | 9,496 | 9,030 |
Rental equipment, net | 936,036 | 760,972 |
Property and equipment, net | 95,147 | 89,952 |
Deferred financing costs, net | 3,375 | 3,772 |
Investment in guarantor subsidiaries | 246,373 | 222,217 |
Intangible assets, net | 30,215 | |
Goodwill | 76,317 | 1,671 |
Total assets | 1,690,667 | 1,455,977 |
Liabilities and Stockholders’ Equity: | ||
Amounts due on senior secured credit facility | 132,663 | |
Accounts payable | 143,651 | 78,811 |
Manufacturer flooring plans payable | 27,851 | 20,300 |
Accrued expenses payable and other liabilities | 73,524 | 67,466 |
Dividends payable | 126 | 197 |
Senior unsecured notes | 944,388 | 944,088 |
Deferred income taxes | 137,162 | 126,419 |
Deferred compensation payable | 1,946 | 1,903 |
Total liabilities | 1,461,311 | 1,239,184 |
Stockholders’ equity | 229,356 | 216,793 |
Total liabilities and stockholders’ equity | 1,690,667 | 1,455,977 |
Guarantor Subsidiaries [Member] | ||
Assets: | ||
Receivables, net | 33,418 | 37,424 |
Inventories, net | 20,962 | 11,176 |
Prepaid expenses and other assets | 175 | 142 |
Rental equipment, net | 154,344 | 143,852 |
Property and equipment, net | 16,929 | 11,837 |
Goodwill | 29,526 | 29,526 |
Total assets | 255,354 | 233,957 |
Liabilities and Stockholders’ Equity: | ||
Accounts payable | 10,900 | 10,970 |
Manufacturer flooring plans payable | 909 | 1,702 |
Accrued expenses payable and other liabilities | (3,607) | (2,371) |
Dividends payable | (50) | (47) |
Capital leases payable | 829 | 1,486 |
Total liabilities | 8,981 | 11,740 |
Stockholders’ equity | 246,373 | 222,217 |
Total liabilities and stockholders’ equity | 255,354 | 233,957 |
Elimination [Member] | ||
Assets: | ||
Investment in guarantor subsidiaries | (246,373) | (222,217) |
Total assets | (246,373) | (222,217) |
Liabilities and Stockholders’ Equity: | ||
Stockholders’ equity | (246,373) | (222,217) |
Total liabilities and stockholders’ equity | $ (246,373) | $ (222,217) |
Condensed Consolidating Finan51
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues: | ||||
Revenues | $ 310,364 | $ 249,363 | $ 570,846 | $ 476,191 |
Cost of revenues: | ||||
Cost of revenues | 202,261 | 162,023 | 370,158 | 311,179 |
Gross profit (loss): | ||||
Gross profit | 108,103 | 87,340 | 200,688 | 165,012 |
Selling, general and administrative expenses | 69,046 | 59,807 | 134,926 | 117,125 |
Merger costs | 68 | 220 | ||
Gain on sales of property and equipment, net | 4,114 | 1,135 | 4,887 | 2,106 |
Income from operations | 43,103 | 28,668 | 70,429 | 49,993 |
Other income (expense): | ||||
Interest expense | (15,693) | (13,373) | (30,346) | (26,605) |
Other, net | 459 | 373 | 854 | 810 |
Total other expense, net | (15,234) | (13,000) | (29,492) | (25,795) |
Income before provision for income taxes | 27,869 | 15,668 | 40,937 | 24,198 |
Income tax expense | 7,098 | 5,790 | 10,688 | 8,930 |
Net income | 20,771 | 9,878 | 30,249 | 15,268 |
Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 51,171 | 41,838 | 97,640 | 82,741 |
Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 22,073 | 20,162 | 43,345 | 38,536 |
Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 291,577 | 233,814 | 535,471 | 446,348 |
Gross profit (loss): | ||||
Gross profit | 107,652 | 87,308 | 200,356 | 165,888 |
Other [Member] | ||||
Revenues: | ||||
Revenues | 18,787 | 15,549 | 35,375 | 29,843 |
Cost of revenues: | ||||
Cost of revenues | 18,336 | 15,517 | 35,043 | 30,719 |
Gross profit (loss): | ||||
Gross profit | 451 | 32 | 332 | (876) |
Elimination [Member] | ||||
Gross profit (loss): | ||||
Equity in earnings of guarantor subsidiaries | (2,490) | (1,212) | (2,948) | (4,981) |
Income from operations | (2,490) | (1,212) | (2,948) | (4,981) |
Other income (expense): | ||||
Income before provision for income taxes | (2,490) | (1,212) | (2,948) | (4,981) |
Net income | (2,490) | (1,212) | (2,948) | (4,981) |
H & E Equipment Services [Member] | ||||
Revenues: | ||||
Revenues | 261,162 | 206,304 | 483,194 | 394,991 |
Cost of revenues: | ||||
Cost of revenues | 169,158 | 135,411 | 312,126 | 260,053 |
Gross profit (loss): | ||||
Gross profit | 92,004 | 70,893 | 171,068 | 134,938 |
Selling, general and administrative expenses | 57,738 | 52,766 | 112,746 | 103,001 |
Merger costs | 68 | 220 | ||
Equity in earnings of guarantor subsidiaries | 2,490 | 1,212 | 2,948 | 4,981 |
Gain on sales of property and equipment, net | 4,023 | 905 | 4,737 | 1,629 |
Income from operations | 40,711 | 20,244 | 65,787 | 38,547 |
Other income (expense): | ||||
Interest expense | (13,247) | (7,407) | (25,596) | (14,970) |
Other, net | 405 | 274 | 746 | 621 |
Total other expense, net | (12,842) | (7,133) | (24,850) | (14,349) |
Income before provision for income taxes | 27,869 | 13,111 | 40,937 | 24,198 |
Income tax expense | 7,098 | 5,790 | 10,688 | 8,930 |
Net income | 20,771 | 7,321 | 30,249 | 15,268 |
H & E Equipment Services [Member] | Other [Member] | ||||
Revenues: | ||||
Revenues | 15,777 | 12,590 | 29,719 | 24,342 |
Cost of revenues: | ||||
Cost of revenues | 15,329 | 12,567 | 29,245 | 24,820 |
Gross profit (loss): | ||||
Gross profit | 448 | 23 | 474 | (478) |
Guarantor Subsidiaries [Member] | ||||
Revenues: | ||||
Revenues | 49,202 | 43,059 | 87,652 | 81,200 |
Cost of revenues: | ||||
Cost of revenues | 33,103 | 26,612 | 58,032 | 51,126 |
Gross profit (loss): | ||||
Gross profit | 16,099 | 16,447 | 29,620 | 30,074 |
Selling, general and administrative expenses | 11,308 | 7,041 | 22,180 | 14,124 |
Gain on sales of property and equipment, net | 91 | 230 | 150 | 477 |
Income from operations | 4,882 | 9,636 | 7,590 | 16,427 |
Other income (expense): | ||||
Interest expense | (2,446) | (5,966) | (4,750) | (11,635) |
Other, net | 54 | 99 | 108 | 189 |
Total other expense, net | (2,392) | (5,867) | (4,642) | (11,446) |
Income before provision for income taxes | 2,490 | 3,769 | 2,948 | 4,981 |
Net income | 2,490 | 3,769 | 2,948 | 4,981 |
Guarantor Subsidiaries [Member] | Other [Member] | ||||
Revenues: | ||||
Revenues | 3,010 | 2,959 | 5,656 | 5,501 |
Cost of revenues: | ||||
Cost of revenues | 3,007 | 2,950 | 5,798 | 5,899 |
Gross profit (loss): | ||||
Gross profit | 3 | 9 | (142) | (398) |
Equipment Rentals [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 143,829 | 118,370 | 273,190 | 225,687 |
Gross profit (loss): | ||||
Gross profit | 70,585 | 56,370 | 132,205 | 104,410 |
Equipment Rentals [Member] | Operating Segments [Member] | Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 51,171 | 41,838 | 97,640 | 82,741 |
Equipment Rentals [Member] | Operating Segments [Member] | Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 22,073 | 20,162 | 43,345 | 38,536 |
Equipment Rentals [Member] | H & E Equipment Services [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 123,457 | 96,709 | 234,291 | 184,992 |
Gross profit (loss): | ||||
Gross profit | 60,641 | 45,427 | 113,656 | 84,726 |
Equipment Rentals [Member] | H & E Equipment Services [Member] | Operating Segments [Member] | Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 43,950 | 34,542 | 83,509 | 68,290 |
Equipment Rentals [Member] | H & E Equipment Services [Member] | Operating Segments [Member] | Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 18,866 | 16,740 | 37,126 | 31,976 |
Equipment Rentals [Member] | Guarantor Subsidiaries [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 20,372 | 21,661 | 38,899 | 40,695 |
Gross profit (loss): | ||||
Gross profit | 9,944 | 10,943 | 18,549 | 19,684 |
Equipment Rentals [Member] | Guarantor Subsidiaries [Member] | Operating Segments [Member] | Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 7,221 | 7,296 | 14,131 | 14,451 |
Equipment Rentals [Member] | Guarantor Subsidiaries [Member] | Operating Segments [Member] | Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 3,207 | 3,422 | 6,219 | 6,560 |
New Equipment Sales [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 68,539 | 45,669 | 115,032 | 79,943 |
Cost of revenues: | ||||
Cost of revenues | 61,226 | 40,450 | 102,071 | 70,831 |
Gross profit (loss): | ||||
Gross profit | 7,313 | 5,219 | 12,961 | 9,112 |
New Equipment Sales [Member] | H & E Equipment Services [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 55,700 | 38,819 | 95,601 | 68,494 |
Cost of revenues: | ||||
Cost of revenues | 49,712 | 34,315 | 84,795 | 60,685 |
Gross profit (loss): | ||||
Gross profit | 5,988 | 4,504 | 10,806 | 7,809 |
New Equipment Sales [Member] | Guarantor Subsidiaries [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 12,839 | 6,850 | 19,431 | 11,449 |
Cost of revenues: | ||||
Cost of revenues | 11,514 | 6,135 | 17,276 | 10,146 |
Gross profit (loss): | ||||
Gross profit | 1,325 | 715 | 2,155 | 1,303 |
Used Equipment Sales [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 32,140 | 24,106 | 56,993 | 52,969 |
Cost of revenues: | ||||
Cost of revenues | 21,772 | 17,002 | 38,709 | 36,863 |
Gross profit (loss): | ||||
Gross profit | 10,368 | 7,104 | 18,284 | 16,106 |
Used Equipment Sales [Member] | H & E Equipment Services [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 26,162 | 19,333 | 46,388 | 42,474 |
Cost of revenues: | ||||
Cost of revenues | 17,559 | 14,056 | 31,391 | 30,155 |
Gross profit (loss): | ||||
Gross profit | 8,603 | 5,277 | 14,997 | 12,319 |
Used Equipment Sales [Member] | Guarantor Subsidiaries [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 5,978 | 4,773 | 10,605 | 10,495 |
Cost of revenues: | ||||
Cost of revenues | 4,213 | 2,946 | 7,318 | 6,708 |
Gross profit (loss): | ||||
Gross profit | 1,765 | 1,827 | 3,287 | 3,787 |
Parts Sales [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 30,281 | 29,725 | 58,432 | 56,725 |
Cost of revenues: | ||||
Cost of revenues | 21,931 | 21,722 | 42,548 | 41,158 |
Gross profit (loss): | ||||
Gross profit | 8,350 | 8,003 | 15,884 | 15,567 |
Parts Sales [Member] | H & E Equipment Services [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 26,087 | 25,458 | 50,434 | 48,599 |
Cost of revenues: | ||||
Cost of revenues | 18,987 | 18,712 | 36,943 | 35,437 |
Gross profit (loss): | ||||
Gross profit | 7,100 | 6,746 | 13,491 | 13,162 |
Parts Sales [Member] | Guarantor Subsidiaries [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 4,194 | 4,267 | 7,998 | 8,126 |
Cost of revenues: | ||||
Cost of revenues | 2,944 | 3,010 | 5,605 | 5,721 |
Gross profit (loss): | ||||
Gross profit | 1,250 | 1,257 | 2,393 | 2,405 |
Services Revenues [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 16,788 | 15,944 | 31,824 | 31,024 |
Cost of revenues: | ||||
Cost of revenues | 5,752 | 5,332 | 10,802 | 10,331 |
Gross profit (loss): | ||||
Gross profit | 11,036 | 10,612 | 21,022 | 20,693 |
Services Revenues [Member] | H & E Equipment Services [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 13,979 | 13,395 | 26,761 | 26,090 |
Cost of revenues: | ||||
Cost of revenues | 4,755 | 4,479 | 9,117 | 8,690 |
Gross profit (loss): | ||||
Gross profit | 9,224 | 8,916 | 17,644 | 17,400 |
Services Revenues [Member] | Guarantor Subsidiaries [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 2,809 | 2,549 | 5,063 | 4,934 |
Cost of revenues: | ||||
Cost of revenues | 997 | 853 | 1,685 | 1,641 |
Gross profit (loss): | ||||
Gross profit | $ 1,812 | $ 1,696 | $ 3,378 | $ 3,293 |
Condensed Consolidating Finan52
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||||
Net income | $ 20,771 | $ 9,878 | $ 30,249 | $ 15,268 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization on property and equipment | 12,085 | 12,115 | ||
Depreciation of rental equipment | 97,640 | 82,741 | ||
Amortization of intangible assets | 1,485 | |||
Amortization of deferred financing costs | 557 | 526 | ||
Accretion of note discount, net of premium amortization | 239 | 84 | ||
Provision for losses on accounts receivable | 1,679 | 1,858 | ||
Provision for inventory obsolescence | 71 | 71 | ||
Change in deferred income taxes | 10,743 | 9,968 | ||
Stock-based compensation expense | 2,081 | 1,894 | ||
Gain from sales of property and equipment, net | (4,114) | (1,135) | (4,887) | (2,106) |
Gain from sales of rental equipment, net | (18,006) | (15,349) | ||
Changes in operating assets and liabilities, net of acquisitions: | ||||
Receivables | 9,121 | (3,274) | ||
Inventories | (103,631) | (49,585) | ||
Prepaid expenses and other assets | (128) | (1,911) | ||
Accounts payable | 59,705 | 41,621 | ||
Manufacturer flooring plans payable | 6,758 | (4,956) | ||
Accrued expenses payable and other liabilities | (389) | 3,715 | ||
Deferred compensation payable | 43 | 27 | ||
Net cash provided by operating activities | 105,415 | 92,707 | ||
Cash flows from investing activities: | ||||
Acquisition of business, net of cash acquired | (196,027) | |||
Purchases of property and equipment | (19,561) | (12,137) | ||
Purchases of rental equipment | (217,828) | (112,946) | ||
Proceeds from sales of property and equipment | 6,687 | 3,137 | ||
Proceeds from sales of rental equipment | 52,177 | 46,013 | ||
Net cash used in investing activities | (374,552) | (75,933) | ||
Cash flows from financing activities: | ||||
Borrowings on senior secured credit facility | 735,775 | 484,252 | ||
Payments on senior secured credit facility | (603,112) | (482,042) | ||
Dividends paid | (19,619) | (19,565) | ||
Payment of deferred financing costs | (97) | |||
Payments on capital lease obligations | (109) | (107) | ||
Net cash provided by (used in) financing activities | 112,838 | (17,462) | ||
Net decrease in cash | (156,299) | (688) | ||
Cash, beginning of period | 165,878 | 7,683 | ||
Cash, end of period | 9,579 | 6,995 | 9,579 | 6,995 |
H & E Equipment Services [Member] | ||||
Cash flows from operating activities: | ||||
Net income | 20,771 | 7,321 | 30,249 | 15,268 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization on property and equipment | 10,606 | 10,535 | ||
Depreciation of rental equipment | 83,509 | 68,290 | ||
Amortization of intangible assets | 1,485 | |||
Amortization of deferred financing costs | 557 | 526 | ||
Accretion of note discount, net of premium amortization | 239 | 84 | ||
Provision for losses on accounts receivable | 1,195 | 1,484 | ||
Provision for inventory obsolescence | 71 | 71 | ||
Change in deferred income taxes | 10,743 | 9,968 | ||
Stock-based compensation expense | 2,081 | 1,894 | ||
Gain from sales of property and equipment, net | (4,023) | (905) | (4,737) | (1,629) |
Gain from sales of rental equipment, net | (14,717) | (11,595) | ||
Equity in earnings of guarantor subsidiaries | (2,490) | (1,212) | (2,948) | (4,981) |
Changes in operating assets and liabilities, net of acquisitions: | ||||
Receivables | 5,599 | (2,027) | ||
Inventories | (90,519) | (36,815) | ||
Prepaid expenses and other assets | (95) | (1,860) | ||
Accounts payable | 59,775 | 37,724 | ||
Manufacturer flooring plans payable | 7,551 | (6,666) | ||
Accrued expenses payable and other liabilities | 1,395 | 2,855 | ||
Deferred compensation payable | 43 | 27 | ||
Net cash provided by operating activities | 102,082 | 83,153 | ||
Cash flows from investing activities: | ||||
Acquisition of business, net of cash acquired | (196,027) | |||
Purchases of property and equipment | (12,990) | (10,915) | ||
Purchases of rental equipment | (189,589) | (87,518) | ||
Proceeds from sales of property and equipment | 6,537 | 2,548 | ||
Proceeds from sales of rental equipment | 41,946 | 35,760 | ||
Investment in subsidiaries | (21,208) | (6,365) | ||
Net cash used in investing activities | (371,331) | (66,490) | ||
Cash flows from financing activities: | ||||
Borrowings on senior secured credit facility | 735,775 | 484,252 | ||
Payments on senior secured credit facility | (603,112) | (482,042) | ||
Dividends paid | (19,616) | (19,561) | ||
Payment of deferred financing costs | (97) | |||
Net cash provided by (used in) financing activities | 112,950 | (17,351) | ||
Net decrease in cash | (156,299) | (688) | ||
Cash, beginning of period | 165,878 | 7,683 | ||
Cash, end of period | 9,579 | 6,995 | 9,579 | 6,995 |
Guarantor Subsidiaries [Member] | ||||
Cash flows from operating activities: | ||||
Net income | 2,490 | 3,769 | 2,948 | 4,981 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization on property and equipment | 1,479 | 1,580 | ||
Depreciation of rental equipment | 14,131 | 14,451 | ||
Provision for losses on accounts receivable | 484 | 374 | ||
Gain from sales of property and equipment, net | (91) | (230) | (150) | (477) |
Gain from sales of rental equipment, net | (3,289) | (3,754) | ||
Changes in operating assets and liabilities, net of acquisitions: | ||||
Receivables | 3,522 | (1,247) | ||
Inventories | (13,112) | (12,770) | ||
Prepaid expenses and other assets | (33) | (51) | ||
Accounts payable | (70) | 3,897 | ||
Manufacturer flooring plans payable | (793) | 1,710 | ||
Accrued expenses payable and other liabilities | (1,784) | 860 | ||
Net cash provided by operating activities | 3,333 | 9,554 | ||
Cash flows from investing activities: | ||||
Purchases of property and equipment | (6,571) | (1,222) | ||
Purchases of rental equipment | (28,239) | (25,428) | ||
Proceeds from sales of property and equipment | 150 | 589 | ||
Proceeds from sales of rental equipment | 10,231 | 10,253 | ||
Net cash used in investing activities | (24,429) | (15,808) | ||
Cash flows from financing activities: | ||||
Dividends paid | (3) | (4) | ||
Payments on capital lease obligations | (109) | (107) | ||
Capital contributions | 21,208 | 6,365 | ||
Net cash provided by (used in) financing activities | 21,096 | 6,254 | ||
Elimination [Member] | ||||
Cash flows from operating activities: | ||||
Net income | (2,490) | (1,212) | (2,948) | (4,981) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in earnings of guarantor subsidiaries | $ 2,490 | $ 1,212 | 2,948 | 4,981 |
Cash flows from investing activities: | ||||
Investment in subsidiaries | 21,208 | 6,365 | ||
Net cash used in investing activities | 21,208 | 6,365 | ||
Cash flows from financing activities: | ||||
Capital contributions | (21,208) | (6,365) | ||
Net cash provided by (used in) financing activities | $ (21,208) | $ (6,365) |