HEES - Earnings call transcript Q4 2017 | H&E Equipment Services, Inc.

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Operator

Good morning and welcome to the H&E Equipment Services Fourth Quarter 2017 Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the conference over to Mr. Kevin Inda, Vice President of Investor Relations. Please go ahead, sir.

Kevin Inda

Evan. you, Thank H&E company's to ended conference to this call XX, And for Equipment the the morning. earlier released results which year fourth review XXXX, welcome were Services quarter December and includes call website our today's for www.he-equipment.com. format the presentation, posted at which slide on is The to proceed Please X. Slide Executive Secretary. Officer; the Magee, and Chief John Chief call President Barber, Financial be will Brad Conducting and Leslie and today Officer Engquist, Officer; Chief Operating proceed to X. Please Slide

we certain today's which these have we website. and refer financial During in is release, our reconciled to to earnings non-GAAP figures call, on GAAP measures measures will our available

Before statements within let offer the containing may, could, words that beliefs anticipate laws. note statements the we of our start, securities such similar statements. federal as the call forward-looking cautionary expect, expressions constitute meaning Statements believe, forward-looking and me and expectations contains about this and

call over this does now statements. the I call. other risks John forward-looking periodic XX-K known are in such uncertainties stated, cautioned in results any and the the statements in are reports. today's statements other place and from Engquist. With differ involve annual factors for materially urged reliance and statements call A Forward-looking company of potential uncertainties, statement. evaluating most investors factors will on undertake forward-looking presentation unknown on after the the actual the cause not the publicly which forward-looking listeners carefully Safe not Investors, slide company included recent to included reports conference and Form date in of forward-looking update to to summary contained could those and revise or in contained turn the any company's described also to consider that these is in undue in risks statement risk The and these to Harbor

John Engquist

Welcome morning Services to Kevin H&E fourth you, earnings XXXX everyone. call. and Equipment good Thank quarter

Barber, I direct for Brad fourth financial our Leslie year. Chief and our Officer; Magee, will our morning Vice Relations. our today this and and close the business Leslie Operating Officer; comments our our comments, the Kevin few finishes, during Chief overall quarter will the results in Financial The with distribution be are business my non-residential me review When construction Leslie results, results. and then experienced strong market I Investor Inda, proceed the will conditions, Slide your market President call quarter momentum On to and a X. we of quarter. which rental to our during we was for The questions. quarter quarter brief will solid take fourth fourth with to after continued third happy both Please exceptionally delivering the and President

$XX.X mix. a to million revenue compared year to XX.X% result, total $XX.X a to million $XXX.X Margin million XX.X% grew million to XX.X% revenues As quarter. compared fourth year EBITDA Adjusted were increased ago. the to due ago, XX% in or a $XX.X

significant onetime the resulting For $XX.X a in quarter, the fourth legislation. diluted diluted year $XX.X tax or we to per generated recent benefit $X.XX share compared share million ago. We've quarter a per income of tax million from net $X.XX or fourth recorded the

to revenues The me increase equipment quarter new million or new a million primarily $XX.X comments specifically nearly crane delivered increase distribution XX.X% a brief fourth XXX% which in or increase year ago. our Let in a a make about sales business total $XX.X to sales. few was compared attributed the

believe fourth purchasing a decisions. recovery with extremely in indicative While by almost in We the during sales total of end largely don't is we this driven crane market quarter. are crime $XX million pleased rather the year

$X.X the believe utilization earthmoving achieved XXXX XX.X%. of was fleet points and quarter, to to for of year. is equipment sales tens was and for million. solid equipment crane we and compared increased or from new to also by demand the positive the our time Demands rates non-residential XX.X% Please in better The However, increase proceed a utilized we market. trends the consecutive for X% X. was AWP basis grew a cranes ago the percent XXX highly cranes XX.X% utilization With driven XX.X%. expect up there time quarter utilization construction XX.X% year new for for sequentially. in for Dollar debate year-over-year in XX.X% quarter positive to no demand last six to we which Slide increased do third regarding

from Greenfield illustrates million sites our X% branch please. we In As XX.X% new Washington. a since footprint, and expanding that a $XXX.X beginning result, to in Proceed XX.X% Lynnwood, growth ago. locations Slide rental various XX opened XXXX. nationwide we've and November, of revenues year the increased X to a branch opened slide rental increased This regions,

and our our early types of our markets. in quarter, late density through bringing of to Inc. geographic of our in in our the Rental and CEC expect serve We of the Florida expect We acquired the strategy expanding complement business we markets. Beach, which increase the The in well-run will will all give acquisition pursue. branches Inc. companies the CEC recently our Colorado. we and area Alabama CEC Rental recovering ability five expansion improve Panama branches Inc. The Georgia, South our which of are acquisition Fort and in and which business, Panhandle to fix we completed believe Denver Dothan they count to we additional intend represent believe City to we our announced existing Walton Western are branch executing on footprint Rental Alabama, us in quarter. second January in Tallahassee, and located customers through map of Opelika to existing acquisitions first Florida six significantly which was and close the in with acquisition broaden

please. We X are also Greenfield Proceed to and our continuing expand program. to through start Slide warm

representing slide takeaways be markets more this key on non-residential the than user customers. continues end our One construction to of XX% with

driven industrial driver which of the also the and see, a not mix material at AWP fleet can months, XX.X% we age are returns at industry advantages. by easily in are the can large positive you our youngest fleets is pricing. one segment highly our with rental With business. of Higher XX.X overall Fleet combined As utilized competitive was age fleet.

Gulf energy continues XX% ago. XX% related exposure higher from our a region. region Lastly, oil with be year significantly activity majority to and Texas in improve result alone as a of at Gulf of of continues oil gas prices the Coast the representing Coast to The

on come levels to a refineries is and to exploration Index this strong. like Leading XX Slide of this recent pipeline several ABI market solid the anyone surprised the transport gas Momentum industry indicators call. resulting oil forecast addition of conditions industry with some projects. and to please. Dodge in the of years. and are production, most surge increases positive high economy activity indicators slide in in pipeline no and capacity Overall seen In on in to has growth our required Proceed Down the is should The XXXX. additional

investment cycle. over infrastructure future results. am the financial any tax to We I significant this to plan also the call At believe recently should encourage turn going in time, extend bill for with additional Leslie approve the corporate

Leslie Magee

and begin John. financials everyone, Slide our thank to XX I'll detail. on in discuss you, morning, Good greater

our as strong demand successfully end user the were capitalized solid Our fourth we market. results in quarter on

total a $XXX.X million from $XX.X Gross million a $XX.X rental new million sales. were profit XX.X% ago, revenues equipment the For higher to year Margins year overview, lower $XXX.X in business. result ago a ago. increased level high same year or to our significantly the fourth to the distribution primarily compared XX.X% XX.X% or period and our strength compared of increased but in a quarter to driven million as both a primarily $XX.X margin XX.X%

shift equipment margins. with exception revenue the a Although gross all consolidated gross operating margins, sales used generated impact of the segments higher

XX.X% AWP XX.X% XX.X% exceptionally OEC growth revenues. from me increased provide OEC, ago. to with quarter year pointed as beginning more for topline rental was utilization the Let detail physical on to basis at increased out, And strong average XX.X% time XX.X% compared with $XXX.X XXX year of based utilization Demand XX.X% points John revenue underlying a revenues at ago. million. for Rental now a the up

increased with XX.X% up and product time XXX basis to points up fact compared to points basis increased year basis trucks versus again all our rates with up and X.X% In earthmoving XXX XXX dollar up points, strong points, Rental lift X% year. ago. cranes basis XX.X% lines year-over-year improved for returns and quarter XXX last utilization utilization rates, general equipment this sequentially

significantly end of largely sales a million XX% sales $X.X due rental $XX.X used Sales New Used equipment equipment million ago. equipment or $XX.X part demand comprised from to sales sales product result the which XX.X% XX.X% or to million in believe which equipment higher $XX.X million a $X.X with to XX.X% $XX.X and to The total higher earthmoving equipment during increase our sales. XX.X% for $XX.X to new of in quarter. sales largely due or AWP was this as demand year year purchasing new million new million sales and used or fleets million crane increased XX% patterns. increased new quarter improvement all equipment of compared increased to lines. increased earthmoving in improved We

of year now down X.X% and move to combined delivered I'll service segments brief basis, discuss margin. million on revenue gross profit and $XX.X Our in a parts on a a from ago.

Our of was profit ago, million quarter a the increase total $XXX.X revenues. million increase a to XX.X% $XX.X year on an for in gross compared XX.X%

were segments. driven a all Our XX.X% performance margins solid compared ago, year XX.X% margin consolidated across to by

ago. with segment, margin were for and margins equipment sales the sales due to new rental to combined were a ago, due million or operations sales, last please. higher fourth operations from leverage XX.X% Slide is quarter XX.X% sales to quarter the compared XX.X% on $X.XX utilization fleet-only compared compared X.X% XX.X% XX.X% year revenues gross sales. and $XX.X and by a to as rental quarter million primarily XX.X% service in on XX. pure higher in were $XX.X a a million our a XXXX For equipment by year were increase Net share Used of was revenues rate. and XX.X% revenue to gross share margins result were ago. for on Proceed ago. year XX.X% margins fourth last revenues income year largely of Margin from for diluted ago. of equipment to SG&A compared positive $XX.X fourth XX.X% the compared operating or million detailed compared year, Parts income this to gross crane compared those to to year to diluted result rental of new period $X.XX earthmoving quarter basis XX% year in segments. year $XX.X strong and XX.X% a margin in a a XX% gross compared same expenses a per strong the gross margin or XX% to were primarily XX.X% ago. increased margins Slide solid higher the per ago The margins and of a year Income XX compared quarter

tax the income current quarter negative to tax a rate ago. compared approximately year a income effected XXX.X% of $XX.X benefit a of compared recorded to XX.X% expense decline during Our We've tax approximately $X.X to million ago. year million

Adjusted move EBITDA equipment was assets XXX XX.X% year to enacted decrease XX.X% a recently to rate to but $XX.X Cuts is tax significantly the sales. XX%. and to compared in in we decrease This XX. Acts, ago, year ago quarter the tax income re-measured differed Please to primarily XX% a the a Tax the new federal liabilities $XX.X the margins higher Slide a from and resulting corporate million and points, from onetime our due were With benefit. lower margin fourth compared of Job million

period SG&A labor XX. a ago. as of due net million and this or SG&A was revenue year same increase cost. to XX.X% Slide X.X% $XX.X over quarter was compared a increase Next benefit higher percentage The $X.X year. the XX.X% million, to largely last was

increased million cost a to $X.X expansion branch ago. year compared Our

XX. Slide on Next

$X.X transfers non-cash quarter Our was gross the Gross was net for the including the was PP&E during quarter $XX.X and million fourth our fleet was inventory $X.X quarter expenditures $XX.X rental and from million. fleet CapEx capital for net capital million. expenditures million

of $XX.X age compared was the a average XXst cash of free XX.X reconciliation Our ago. end quarter in flow to included months. year GAAP as appendix at a for the fourth that. flow was December fleet accompanying $XX.X We've the million Cash presentation the

in XX.X% year of the compared utilization fourth on to XXXX. of of million at that increased million end amount the In was of credit. net $XXX.X quarter, ago. on principal $XXX of million. Next which year $XX.X balance term Slide senior of XX. facility end August our $XXX in the ABL is issued million late to therefore under an value. we add-on XXX.XX% December, of fleet of notes The based dollar X.XX Slide was par And had billion, Average of outstanding price notes quarter due million of November, $XXX the At had a the of as increased million amended our of outstanding from X.XX $X.X size of fourth aggregate which closed the add-on we no quarter, offering letters end ABL availability to Proceed million that we late offering In $XXX.X senior from under XX, at our on facility million we rental and XX.X% X.X% size $XXX amount aggregate ago. principal please. same we or $X.X OEC an a the XXXX,

result, structure growth and Proceed please. Slide a sheets to our our our we XX, believe supports As strong is balance strategy. capital

review Let which full-year quickly reflects execution solid user we demand our in end and our XXXX we market. increased believe results

Our in was compared from X.X% XXXX. in utilization $Xbillion XXXX. XXXX XXXX rental from to X.X% million to or $XXX.X to X.X% XX.X% Growth or And XX.X% $XX.X $XX.X increased million ago. in a rates in increased million million million time average, OEC profit to XXXX, total year revenues $XXX.X On based on XXXX. compared increased $XXX.X

XX.X% to a or Our ago, costs. of proceeds, year million, fee to million of income million, included compared but in revenues, operations $X.X revenues net XX.X% of or XXXX merger breakup $XXX.X from of increased $XXX.X merger XX.X%

and impacted income per diluted or $XX.X of $X.XX due assets compared share or Actin income resulting proceeds, these positively million, tax $XXX.X was re-measuring per by Excluding XX.X% was our XX.X% from the the $XXX.X Cuts and operations net to or increased Job income Net share, benefit million to $X.XX revenues. in liabilities million, passage to December diluted of income XXXX. from onetime Net the deferred XXXX. Tax of

Adjusted XX.X% with Adjusted XXXX. year increased to continued as For diluted am or back negative the decreased the We fee of this was a Adjusted in merger XX% loss was income XXXX. call in common John. compared EBITDA XX.X% the our net extinguishment of million dividend full-year million of during going $XX.X with from $X.XX early XXXX. dividend proceeds, our million, merger effective XXXX. per from percentage $XXX.X per rate share for free to third quarter net breakup year costs, XX.X% debt each turn time, EBITDA as $XXX.X well ago. in of the tax the during excluding X.X% $XXX.X at a in on generated XXXX a paid of as revenues quarter cash And total $X.XX also to the and to I payment share we million

John Engquist

very XX. in indicators business Slide non-residential to was improving highlighted proceed rental in quarter a our and business. by Many conclude, year our continued our fourth positive Please strong the pointing Leslie. it you, for and To for results continuing markets in construction trends business distribution strength strength in are key delivered XXXX. towards we Thank very overall

We executed strategy our and additional intend to have quickly on growth our continue complimentary we acquisitions. to stated pursue

paid our per consecutive $X.XX we dividend fourteenth share for total the on Lastly, quarterly December and XX, dividend year. of paid cash

approval this provide questions. and each few we'd review board to time, take instructions. like a to subject are dividends please future always, As quarter. At Operator,

Operator

Frohnapple Instructions] Buckingham Research. from question Our Please comes [Operator ahead. go Absolutely. first Neil from

Neil Frohnapple

good Congrats a guys. on quarter, Hi, morning. great

John Engquist

Neil. Thank you,

Neil Frohnapple

strip crane performance? can the I a provide significant that indicator so sort expectation give you as more for on sense I business? in lead purchasing And for then of cranes underlying sales us activity a you the You order recent provide follow-up, commentary and in guess way can decisions, out there to year quarter? the business mentioned of any during on for guess higher is XXXX of quoting a this and your fourth increase First, granularity as

John Engquist

Yeah, more crane that last activity more the have or and indicated we interest seen look, we've I quoting had two, on think side. the we've call

we say recovery so XXXX that that's we're is going we're in XXXX kind we there purchasing We're to said, the and in said of full believe be certainly demand than better market. quarter saw fourth is we not we're just the with indicative demand bond to we in not a Neil. As of where prepared yet, in are

Neil Frohnapple

certain Okay. guess or categories line some activity it's broad I And region to and geographic still base that cranes? then limited John, by product of quoting is within that product is

John Engquist

Yeah. There's crane all-terrain markets terrain strength all-terrain the really but markets. real in markets, a color probably we the weightiness in saw some strength still activity, in rough

Neil Frohnapple

final Okay. Got one one it. then for me. And

posted I full-year. despite full-year about equipment rental margins think gross incremental for modestly the rates XX% for rental only and higher anticipated quarter up than in You the being the

talk rate XXXX guess you could weigh acquisition excluding of if more discuss given which positive full environment? the margins incremental the So on growth? I about would for presumably a for gross you. run you Thank sort And could

Leslie Magee

kind if expecting and good up bumped forward and and well. fleet of rates what a rental really growth expecting offset that piece look then fourth than margin really fleet normalized that as higher that's more strong growth And We're because we're the moving expected they forward. utilization Neil. just Hi, fleet pretty utilization, in going quarter, the result were at you of

Neil Frohnapple

Okay. And a as would lastly, what characterize more you rental? of normalized

Leslie Magee

range. growth rental rates about are margin XX% incremental Normalized

Neil Frohnapple

Thank Great. you.

Leslie Magee

Sure.

Operator

Next Seth Markets. from comes Weber from Capital RBC go ahead. question Please

Seth Weber

morning. good Hey,

John Engquist

morning, Good Seth. Seth. Hey,

Seth Weber

wanted to to ask Morning. about questions, I I the - wanted acquisitions. couple of

like it what is about about of was XXXX. on $XXX bringing You're in half million fleet, acquired your which CapEx of looks

in going do to you you of sell this of fleet? any below, revenue. we you come it's how because then million buy - to margins that less that, about that there? acquired should of where expect is companies above, acquired And think help to or whether acquiring EBITDA with some equipment the running about new your I any $XX are give XXXX Can indication in So secondly, kind think are fleet for of margins consistent us they're Thanks. these going

John Engquist

similar grow HNE it's our on to to and margins Yeah. They're Rental a year drag going I a CEC because we're to to and than margins exceptionally and don't rental. their last want more CapEx [ph] we're grow There margins higher of ours. certainly Seth we more rental were capital component purer we so last they've guidance we because play acquisitions. small Inc. give did distribution are consistent, we did margins has year. than don't because the mix. some high plan going growth is our pre-acquisition, got margins, rental spend core are are but revenue which fleet their pure do prior to year to fleet that's more this that you margins

Seth Weber

Okay. That's helpful, John, thanks.

going mean will point? this fleet into fold at the of try I to mix selling So just or any and be you you're that the acquired fleet

John Engquist

their into and it fleet mix fold We'll the probably fleet. grow

Seth Weber

demand like improve. me see service expect to parts and parts the service That's on going increasing. just business really not think prior last you Okay. and Thank between quarter, disconnect you the disconnect question following-up that helpful. business, with I'm the on just I might growing opinion lack there, question have the that wrestling wondering you. but on what's any on just asked and this - I'm and I if there's in the of growth and then crane very the when And seems crane To the

John Engquist

And can I than give can. Brad you better probably color

anticipate big We're of it's come. markets we improve, end continue a driver there is I just service jobs and rebuild major business think timing getting to parts not those that's going our a really that crane to like, and issue. I the it's

Bradley Barber

Yeah.

John that portion the parts I remains agree. more spot John our continuously Look, were a spot is of brighter I soft. while brightest quote large service crane that on been through add. still really in So the and we those ago of come opportunities probably the of spoke stated, that really couldn't the crawler dollars traditionally XX brightest QX as activity. spot rebuilds

face crawler cranes, growth. headwinds a So recovery to on and we're see I until going broader parts on think continue we service to

Seth Weber

back I'll guys, Okay, Thank get in you. queue.

John Engquist

Thanks, Seth.

Bradley Barber

Thank you.

Operator

from comes Ross go Please Bank question from Next of Gilardi America. ahead.

Ross Gilardi

Hey, good morning, guys.

John Engquist

Good morning.

Ross Gilardi

I you pricing, counter the about first weeks six price increase some continued seasonal just quarter, mean the ask clearly want fourth of that XXXX? saw I you into has to in

John Engquist

and working levels year. the throughout It the expectation high It's in have see demand everybody utilization our pricing it's is will supply running and that in our positive favor.

yeah, in we're push environment pricing. a So solid

Ross Gilardi

due then with that all cranes, earthmoving tax you to And buying play and was are of seeing a same comment aerials? you is characterize the dynamic an buying, related on type out and strength the year-end

John Engquist

really strong one no rental anymore, had a earthmoving own yeah, we Well, aerials really a pure that's But quarter. item.

that making tax think I they buying. our it you and some is tells think money what year-end customers are did I

Ross Gilardi

price? your it. Got are are pricing, pushing price seeing what and offset they then And they steel to are suppliers are you equipment on getting from

Bradley Barber

So various, increases In increase, price manufacturers probably is high no realizing generally as X%, certain as Ross, Bradley. of had be X% we've our were this manufactories speaking half year-over-year. we've X% seen and

XXXX it were a to purchase much So And current secure with steel, fairly could pricing you we orders queue that not orders tell of been early it's sure I negotiation very that make doing so. that's around we our and and the event. we advanced got successful spans, in part was would more so in

Ross Gilardi

Okay.

a if got backlog the the the If because got in actually pricing? if order you XXXX equipment suppliers strong you you before actually began lot clearly so the the you got order saying in if got of saw very pickup calendar you in the quarter, XXXX fourth

Bradley Barber

to dividend Well, an responsive increase. going no in we you but think the of very I would in it's negotiation very think were a I and form price going pay small to to it's it's us to terms - tell pay individual I always that

Ross Gilardi

Got guys. it. Thanks very much,

John Engquist

you. thank Yes,

Operator

Thompson Group. from from ahead. comes Please Catherine question go Research Next Thompson

Steven Ramsey

rental that for market, you area of your of This to on excited the with acquisitions? on fields was is are with is focused being this lots Catherine. of green get Steven an morning. Ramsey I players particular equipment or curious about side thoughts on segment Good specialty the

John Engquist

like core business when the very integrate margin we've after lots We business is It bring high. your when and a And feel got tends you pay get go in them of room multiple when to your grow them you you had multiples business. you as not. a our high to specialty into rental

a grow lot our room we've business of going to that's got core and to we're So do. where

Steven Ramsey

Excellent, and back with markets markets and then from improving. thinking improving, about you you Are or into any oil those shift energy competitors are rentals moving back seeing aggressive and to gas markets aggressively fleet? those geographies

John Engquist

are we Permian. lot into Those a a in We back fleet the moving like active the and plays a Ford as plays moved as are strong we're presence have much big really, they've shale where ever market Eagle be good We there. a shale on the that of just running we've the in utilization. and fleet example. as ever mid-XXs in is got been would I environment. and mean had Midland really back

Bradley Barber

generally we same there I say a taken are in our add, competitors also would speaking, fields But thing. I'd the doing approach. and oil sector. the companywide was achieve And our rational Steve, rates highest

our So dissimilar I think to don't we're competitor.

up, really well, same I would it of be rationally utilization, rates high going our competitors our performing the getting way ramping indicative think nice returns. it's and performance of So very good

Steven Ramsey

you. Thank Excellent.

Operator

Elliott Next question Please ahead. comes go from from Stanley Stifel.

Stanley Elliott

to the that rate of part back taking way we for the into rate, my we are morning carry of Good here looking a categorize to kind and there you over being? seeing thank up kind think rental we Quick of question, constant about when XXXX, nice some Hey, question. improvement is just If were over year. what end say might holding that guys.

Bradley Barber

positive. utilization running, earlier, year some the year it, at level. would it's be currently ahead don't it would We Look that traditionally current of stated as it And prior John certainly level with provide running already.

to we continue rates, calculation. see provide that but opportunity don't to We rental increase

Stanley Elliott

rate then with the thinking looks the Yeah that And low market the kind right the that a on basis, given go time and given opportunities of you handle is M&A can is when at about that accelerating? kind number of forward all it leverage a and like that's fair.

John Engquist

we're to to we very year for two and next keep We're low pretty with confident, three two a do and can year. years acquisitions three the our comfortable leverage three very

Stanley Elliott

lastly, pickup to activity, And to earthmoving. a you then you season? construction as of road we're and XXXX the starting in building kind mentioned seeing kind look cranes Are of forward

John Engquist

Yeah, business. I activity That's not do our nonresidential depends very, it been I there's pickup markets there. think get market. based. driver tell a mean but of is broad seeing demand we construction the I some you in on big benefit, a the very in we're

wouldn't demand very, some benefit, I our that of a get but we is So the highway broad big stuff driver business, the is say very based.

Stanley Elliott

Great, guys. very Thank you much and congratulations.

John Engquist

you. Thank

Bradley Barber

you. Thank

Operator

[Operator Instructions] go Please next from from UBS. Steven question Fisher Our comes ahead.

Steven Fisher

different point utilization to could or larger in utilization verses in about equipment? utilization. difference Thanks, XXX good point mix of XXX related the smaller basis that just morning. less with in the dollar Wondering better if you basis between Is XXX improvement to talk improvements time utilization equipment the under just

John Engquist

average older of pure But disappointment would I rate I a rental so with QX. would would the highest fleet. a across It's standpoint. called rental you John say some we've I times, headwinds of there you than is said in If utilization in slightly as before call I cranes the also we've product the always happy it know from cranes impacted and one a But was improvement in both example to say related statements, that products, by mean economic OEC young out out, from at improvement. is rental that add that the mix of our higher a been foreseeably we board, we products. I is sequential many rate have very talk always fleet, give mix. prepared about And age mix this

are are they the seeing strength. of kind board, continued So across we

Steven Fisher

was think strength. Okay. John quarter, mentioned, was what that strength driving colors some And in I there in the

Bradley Barber

are customers The types to in that in typical infrastructure. in sell of work that QX both customers, and folks then we and industry energy

of crane uses houses rental the larger who our products. some traditionally to went And colors regional

Steven Fisher

lot. Got it, thanks a

Bradley Barber

you. Thank

Operator

RBC Seth go Our next from Weber from question Capital comes ahead. Markets. Please

Seth Weber

follow-up. a talking for thanks Hi,

sorry missed any am you forward? to will the it tax I you what be I Leslie, rate going but Just give did colors

Leslie Magee

estimating about talk rate We're tax to didn't we XX% over couple the XX% No, effective years. next of forward it. moving

Seth Weber

equipment then Okay, slight the channel there decline thanks. that or of just there? is sales is used a unusual margin, function something in And of just mix

John Engquist

was That mix. mix. It's purely

Seth Weber

very you guys. Thank much,

John Engquist

Thank you.

Operator

turn time, any or this the like remarks. to additional to conference John for would closing I back Engquist At

John Engquist

the on Now, I appreciate everybody being call.

I Thank in are everybody in us. to call. be we nice think our you to forward going XXXX solid environment. to next today. look And is for we talking for participating

Operator

today. for our conclude again participation. does your for you Thank conference This

may You disconnect.

H&E Equipment Services (HEES) 22 Feb 182017 Q4 Earnings call transcript