HEES - Earnings call transcript Q1 2020 | H&E Equipment Services, Inc.

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Operator

Good morning and welcome to the H&E Equipment Services First Quarter 2020 Earnings Conference Call. Today's call is being recorded.

At this time, I would like to turn the call over to Mr. Kevin Inda, Vice President of Investor Relations. Please go ahead, sir.

Kevin Inda

were welcome the H&E first company's March XXXX, and call Services quarter Mark, morning. XX, review this to results which you, to Equipment the conference ended Thank earlier released for the The format slide is on posted includes website www.he-equipment.com. presentation, at which our today's of call a

and the Chief Slide and Brad be Barber, Secretary. Executive today Officer John Financial Board Engquist, proceed to call the Directors; Please Executive and of Magee, Leslie President; Officer X. Conducting will Chairman of Chief

Slide to proceed Please X.

During figures today's on to available each refer the certain non-GAAP reconcile these presentation, financial we is call, we'll earnings our in measures, website. measures in and this which and to release to GAAP appendix of our

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

known And Forward-looking summary of uncertainties, from in any risks listeners such described statements for other the undue A forward-looking place forward-looking statement. and company's to XX-K contained are annual in which forward-looking cautioned the urged and factors on in the consider statement those uncertainties the in call. potential contained the are Form evaluating slide statements and risk to statements. recent report not is other materially harbor Investors, results actual unknown reliance today's the these on included factors company's most investors periodic carefully differ involve and also in reports. cause includes in to these could and safe presentation risks

conference after of publicly undertake revise update not any this forward-looking does the statements or company to date call. The

now With turn over Brad I that will Barber. the to stated, call

Brad Barber

everyone. Thank morning, and good you, Kevin,

Services Equipment earnings call. H&E XXXX first quarter to Welcome

Chief Relations. Magee, On and Chairman; the of Financial Vice President Investor John me our today Engquist, our with Leslie call Inda, Officer; are Executive Kevin

please. X Slide

and the with quarter on my business. more then after that the Leslie is and results Given review financial company today we we're addressing our the your quarter COVID-XX impact questions. first facing actions I discuss comments response in begin the having crisis, unprecedented for detail, our our performance challenges the in it I'll will briefly taken take will will our has

Slide please. X,

are COVID-XX. crisis All and when of time. with XXXX in multiple project has for the since since seen XXXX and us work with along realities period including that it earthquakes, we've beginning time, dealing includes in now lengthy This the of recessionary business all. floods, periods financial literally major H&E stopped fires, blizzards, last of hurricanes, been a

years The us. H&E has combined team to XXX than conditions industry only of at are specifically market not senior within of new H&E. Difficulty not more the challenging in management experience but

it unique is situation treating we're virus COVID-XX many this respect However, ways, and deserves. in with seriousness it and

central of in We care nationwide. workforce illness we we to service communities and on end, parts CDC based remain WHO serve in need curtail deeply about our our We're interruption took customers designated and our serve our perform the customers business open We've company their for to each equipment in and our and business and To on and employees, action quick our to reduce our focused been customers. the providing very work. branches and safely markets. strict recommendations to customers this

a and of result There COVID-XX. project have delays as been cancellations

impacted, will all services, be activity business levels. continue of at to our While our lower much albeit for remains

hours include our capital well locations furloughs actions work adjustments necessary a will reducing to this appropriate headcount as branch basis. We and daily environment were have our take continue modified taken schedules right-size to this environment to on in actions which in is as business and needed, evolving spending reductions. selected plans. These

please. X Slide

was utilization. quarter quarter, non-residential Demand in by first and in negative the other effects February. and impacted and quickly of pressure our our improved end-user January In during evident demand, COVID-XX construction Our the and the headwind especially pressuring ongoing were results outbreak. of February rebounds began additional fiscal March, the set seasonality the weather weather during supply January a in expectations, than our was markets and all supply of for Wet to and was but COVID-XX markets. in softer of

total a revenues year results affected from from to a line bottom the were financial negatively our ago. down As result, top the X.X% with

highlight the during the business major first me impacts segments Let on quarter. two

a X.X% basis XX% declines terms In points than XXX sequentially. year were of X.X% year utilization decreased XX.X% Rates a and physical to lower our to ago. business, rental ago

As revenues to year, XX.X% rental ago. from utilization and X.X% a declined to year a last dollar decreased XX.X% result, compared

As and purchase XX.X% a expected likely cranes year new impacted with XX.X%. times, equipment in streams. from ago, sales Subsequently, down more commit as today's large than down capital given often earthmoving other revenue not a were Customers new equipment our turbulent sales XX.X% are down to are uncertainty.

significant period. weakness me energy that quarter compares in gas total XXXX, This to XX% a the on to X% low a and basis our at remind month the Given of revenue everyone in basis. markets, LTM remains of last the the on fourth oil let exposure peak last XX

in additional year, opened location Lastly, Raleigh this two new North we have Carolina Alabama, location. adding a Birmingham, an branch and locations

results to over quarter the more discuss in turn call Leslie financial first Leslie? to detail. our I'll

Leslie Magee

you morning, Good Brad. everyone. And thank

results. Slide to more of financial XX proceed Let's for our details

not the affect triggering of will the would secured availability under senior discuss in not cash with company's from to identified or the like covenant to impairment impairment getting non-cash tests in test will to facility. business related a the and impairment charge connection expenditure briefly the financials, interim goodwill goodwill Before I $XX position, charge any The cash liquidity, our the million certain into credit events result due COVID-XX impact pandemic.

a just year total period revenues result same ago. to a headwinds compared decreased Brad various to $XX.X the X.X% million our As the of discussed, million $XXX.X or

year point from $XXX.X Our rental to million revenues decreased million, X.X% $XXX.X a ago.

was prior year OEC ago. comparable on based year compared million increased to utilization for the quarter with by $XX a the size or XX% period. time XX.X% X.X% compared The our fleet of average Our

quarter declined X.X% Rental dollar to X.X% basis physical XXX decreased utilization, to primarily sequentially. Due XX.X% to significantly lower last versus returns rates Rates declined our this year. year-over-year.

$XX.X to and Our XX.X% sales $XX.X compared lines. with $XX.X million sales equipment million decreased product million or all new to new last year lower

crane $XX.X New $XX.X or and sales million million. sales XX.X% or were down $X.X million decreased earthmoving

all a to ago. or year increased total this sales XX% major XX.X%. used sales $X.X $XX.X Sales decreasing of which Used lines fleet from equipment $X.X product million million comprised in increased rental equipment to earthmoving, except our million X.X% XX% quarter compared or

generated a on ago. up basis service from Our segments million $XX.X X.X% parts revenue in and combined year a

to to to At move as a result positive gross business $XXX.X in shift of time, Gross this mix on offset Consolidated compared million let's margins profit from ago. were profit year a positive to XX.X% ago, XX.X% decreased mixture. the and X.X% rental, margins certain this margin. a primarily gross partially year lower segments

crane largely on quarter decreased gross point by time For gross due ago, compared margins to decline XX.X% Margins rates. first new margins. on by quarter ago, XX.X% earthmoving segment detail the the during and and pressure basis year a to were rental compared utilization to sales the XX.X% in lower were during new equipment impacted XXX XX.X% by our new and margin a year

am due handling low to sales margins. lower last year, on earnings were $XX.X% I to basis sales used primarily Margins XX.X% margins increased pure were XX.X% on on to earthmoving, and ago. fleet combined used gross Used gross margins sorry, only and - crane service year equipment a XX.X% margins margins compared from margins year to a XX.X% rental XX.X% a ago. Parts compared material

XX, Slide please.

the a the As XXXX first charge million result $XX.X of million. was for $XX impairment loss operations of from quarter

prior income of quarter decreased of the million $XX.X XX.X% million first Excluding for or the $XX.X from in XXXX revenues XX.X% revenues of year periods. XX.X% impairment operations to compared to or the charge

increasing sales operations and These The on a primarily and decline result profit to were an and SG&A the gain first business property offset of partially in declines revenue shift costs. gross rental income the lower was quarter. with margins a compared mix, and of positive in gross higher combined year's in by margins last equipment mix from

first share loss first quarter quarter. compared XXXX. of XXXX to was diluted per $XX.X loss net ago. of was income first The Slide XX. XXXX. of $XX.X or in the XXXX to was a the Proceed million per year effective of in to million million XX.X% the quarter compared XX.X% quarter first income rate quarter rate or $X.XX net adjusted first Net the share in of in basis was tax Adjusted tax $X.XX The diluted the $XX or in per on an $X.XX XX.X% effective share

and XX.X% a ago, year in million compared sales compared to expanded XX. points rentals to EBITDA ago, due a versus XXX and EBITDA were positive equipment. higher quarter year higher a to quarter primarily offsetting Slide year factors Adjusted gain revenues decrease costs Partially shift million Adjusted $XX.X to to SG&A move on this of a of Please basis to the these the ago. property in margins $XXX.X first X.X%. was

$X.X XX. for decreased percentage quarter million of year related a $X.X year $XX.X other of million, XX.X% compared increase. payroll quarter in ago. increase prior XX.X% expansion excess Next in or a were wages, and Expenses salaries, $X.X expenses was total liability $X XXXX million to $X.X and a first to branch SG&A in on offsetting X.X% SG&A year to compared the XXXX, Employee's this a million ago. with expenses the in Slide taxes, first million Greenfield $XX.X million expenses was revenues services. the outside employee of increase increased insurance compared decrease a benefits related million as a

And gross for you'll XX. quarter and the from inventory. flow was slide, million including quarter non-cash fleet find first cash and in CapEx $XX.X CapEx Slide on our Next this inflows first and fleet the on

the year CapEx a down to first XX% compared Our quarter gross was approximately ago.

rental the quarter only was Our CapEx net million. $X.X fleet for

was for was CapEx and net quarter Gross $XX.X million PP&E X.X. the

of did of a the cash ago, XX, compared in February year. of lower use investment of as $XX.X flow this acquisition was fleet Our free age in average fleet The $XX.X increase was net due which a flow year. to Free last was for XX.X cash to We-Rent-It year of first million quarter March XXXX million the reflect also months.

X.X% a end $X.X please. XX.X% Next and quarter dollar time utilization rent. the a the or compared fleet average OEC was of rental on and [$X.X] based increase our ago was year XX.X% billion year million size a Slide lower from reflecting first ago, of At utilization XX, to the

near amended under is and since to down ABL have the balance facility At balance we outstanding quarter, no Proceed with million sheet XX the first And liquidity and maturity. the term million the end $XXX.X Slide of XX. $XX please. ample lastly, was a December strong

outstanding of million million borrowing net cash at have We of $X.X of $XXX.X credit. quarter letters availability end of

$XXX.X Our was excess charge used availability is as is to million, our springing fixed determine covenant measurement the which applicable.

$X credit availability require therefore availability million spring, excess would XX excess nearly this $XX at March of before of Our billion. agreements covenant even with

are liquidity have We a in very position no covenant we concern. strong and

paid the Board The by the its quarterly company subject always of Directors, policy. to our and cash are approval dividend intent XXrd continue dividends while is to consecutive dividends it

that, Q&A session. would with get into So and instructions if please questions you operator the let's provide now for

Operator

now question to can We Seth from ahead. Instructions] go RBC [Operator Markets. Weber, first Capital the Please pass

Seth Weber

you questions of being that’s us Brad expected, why you of January - color kind any bit can maybe you give this softer pre-COVID morning. little and than obviously. Couple a talked guess I that about February just

the or to as a in slower real, share anything see Did could real a you - seeing here then can you of you thoughts Thank more of saw the can point So update talk a you're that any that April? kind what month start time you any about of caused you. stabilization just a to up, And that recent may as any update? the to - you you can kind us trends follow have for year? more across give

John Engquist

January, to were So piece even wet some standards, degree. call February out January a and That it. February, was of and months, that particularly by of kind we

thought coming into As couple we've we've demand and stated we supply for people now, balance, a were seen acting rationally. we've talked quarters and

and that it whether in larger supply QX, still planned, So early imbalance we than seeing demand were in a say the markets. impact some had and select would we I was of

softer And are we had off So we primary way little the we expectations were a were planned. but those drivers. of than

some we we think it are We to, are. seeing As should pertains stabilization?

for of the project improvements and Our XX%. XX% to utilization you would do really last may incremental to the XX%. over we think more early somewhere difficult neighborhood remainder weeks. year. Today, utilization what running, the few bottomed But We're close in I of that it's some to it's tell the

last seen that to we will think but is is incremental context just positive evidenced occur offered I that's the well bottom, continues than our you from tell been to hope field where you improvement feedback But positive. I weeks utilization the that the have do more we we've two we but this are. in

Seth Weber

a could up follow in there. Okay, if just get I

Given a guide but year? your be then you're last investment the by the think industry, the for your XX% how CapEx Is that. about And for or year? bigger CapEx the do not Is - think fleet or versus just and to like comments about Thanks. in supply your that demand right the gross was down asking fleet, think for smaller year just you the directionally. fleet I rental end about it? year, that this I'm the way something thinking would of

Brad Barber

by to going very and CapEx. end be disciplined our I think going with fleets little down the of a to year, our bit the be we're

hope I to helpful So you. that's

Operator

question Group. Thompson now pass Steven to can I go the Please from ahead. next Ramsey, Research

Steven Ramsey

I you of in to kind starting to cash, event to around - it expectations, guess And down? go? sell so? free you it safety year? or pay with free expect the opportunities used opportunistic cash would be the need be fleet debt any keep and for to you plan for would positive do are Do positive kind flow you do free for of Or that just cash

Brad Barber

Steven. sure, Yes,

collect as this cash sell always going So is to ABL. to to we policy our we flow. fleet we're our have as do down generate not cash, of kind down And pay positive

that questions. So of both should those answer

Steven Ramsey

to the specifically And talk enough in with those a maybe QX April? CapEx about such Coast there markets the incremental thinking some then making regions and percentage to into or into is fleet of those And the maybe moving Gulf Great. can in Southeast into up through activity branches? large you those activities area warrant sales,

Brad Barber

our rental I the same about utilization tell the needs will if business, pretty that you So, our we If we talk much talking footprint. the about solely are our or across were then you like heavily earthmoving in may [massive Arkansas with heavily business, we're be be impacted dealer] the sales states more Louisiana distribution rent and on know, more and impacted Texas sales. may

pertains to product there it fleet, is of as dramatic But rental necessary. no that's shift

have. always that's So now of will unusual we're always part unusual of managing any amounts our but moving not be fleet fleet. nothing We're process, to

Steven Ramsey

want on to there you of any I guess And is activity? energy leaving it as far to there positioned expose of in then as somewhat area the branches, similarly, fleet you difference dig for any maybe moving out return be or those in branches

Brad Barber

Sure.

time So of relative other in some select probably as heaviest shale, out for in that We've our our quite about our and now. been - of we've X% our that you to exposure fleet Eagle spoken revenue. know, heavy is exposure the those overall or moving Ford it's market calls locations

we're start we kind need at So process that point constant be, we'll a ongoing we're this achieving a where of along. and of we this need kind that's to and been what

Operator

now Steven UBS. next ahead. the go from Fisher, to pass may question Please We

Steven Fisher

that to the about is so Seth initial to follow-up Just like? exactly you the on made give in that field, color they you a bit are they'd what comments number that utilization from little you looking more telling confidence what relative to feedback

Brad Barber

operators just Our generally are optimistic. very

generally very optimistic. are customers Our

other their see year it, there compared from on while lot operating But where just who and optimism, thing a low to is recovery that levels quicker a to a point the we're sentiment our prevailing like going is not pause I the suspect a be think this that are of causes operators, our this. well were recovery I as me and industry ago. think from soft than little I folks we customers entire appreciate our of lining today, any is to silver

sector I get improve. actually cadence believe The very our and it all can to how things it customers, is to that about general around our in the occurs think for as question you we'll I continue opportunity our rapidly. tell on And I is employees, our happens. watch But and optimistic that to is, folks,

Steven Fisher

follow-up a just guess there. I So,

just project projects, any any really there is that end particular consistency seeing, as to had up, in any activity just states of really that they're up extent it markets, to is is the starting sense actually starting is or down if sort of of now to project and a what reason back back get trying there So that's and rhyme happening? how it's is closed how

Brad Barber

a took that are online, lead of of amounts it. reason that I geographies. across think have can or product and I all sizable would on that's eight-week these now projects a theme rhyme What is back pause a Yes, could don't to I coming share six, common some we you

a So positive. That's good that's news.

We projects we maybe certain few the start cancelled. weeks, are have in time either few also last near-term were next in at or expecting the have or the cases that same weeks over in the been to that delayed

there takes, put So know to not the of going business, convention be it's are that's across rest good the all segments, year. There services certain are geographies. that. and for We the

for within have self-imposed level But allowed that There connectivity a one maintain to operate of in construction back commercial was entirely, mixed level construction bag locked some have - almost projects customers been you not shut or reasons. starting for projects, to at geography time an non-residential and period of have some these certain have online, we many state it's generally a but then it's down that safety states entire most - speaking, where down. projects come

Steven Fisher

there there? a you Or pricing seen just are And overall limited broad section declines based seeing you the saw coming what it you you've out from more industry? the so softness, say of is on some far is pricing Is rate the it. would landscape, how in Got helpful. That’s industry reacting. then

Brad Barber

pressure regional pricing of levels not levels exist, opportunity that discipline, other a of that to at utilization discipline. certainly pressure going they day lot larger competitors typical we discipline on projects, I this - to all every large tell have we've can run you than to that's falls into competitors. our largest anytime There are show there But been competitors, remain broader and they're seen these isolated pricing we're don't in but the have our nuisance So enough same the disrupt who at a these remains but point. from

Operator

question the We can ahead. pass Please next of now go to America. Bank Ross from Gilardi,

Ross Gilardi

as - getting are field I'm of Brad, for projects off that stabilizing, in on what duration you more is you curious back bouncing give the if you're feel hand duration lost lows type very rentals kind like bottom business that fleet mouth shorter or just the are the less seeing things as down, those you've get do like the seen to modest recovery with just I'm visibility to or a the you here? off of trying way the it's you

Brad Barber

us call customers machines more the No, Ross it's machines. rent same that it, the offer that to are calling

So or makes that to usual within type is no similar the as types. extent project we mix product mix sense. there business in project duration, It's expect the

Ross Gilardi

or there it. if goodwill Got is charge what acquisition is was it to And provide? to, then but any I can or specific don't you the region, Leslie any know tied color whomever, that for this tied for

Leslie Magee

rental that of in distribution the of that that components COVID, test sheet, not have it's impaired those because it ours test to and once impairment and decline but to it. a an to reporting in a but price, things, accumulated sort did on to surrounding So specific stock it component conditions the branches triggering the relates and interim our and events it's of balance one is the goes includes economic a due all tied acquisition industry we together

Ross Gilardi

sitting else, Leslie. started more aggressive in I to that terms you we're is for XX% you the a it. maybe not or, the And season. believe know, little here everyone - down feel going to kind that it Thanks what that natural to Do but bit perspective? of months being players, as the time, season, of players of you speak to now, levels, get I folks fleet at more, but you to fall? mean, Got some am the on realized asking depressed the that like guys, disciplined kind are deeper anybody of the of more like into the the there later we I towards a selling you think in you major get their range shrink risk in rates fleets if is you couple larger price a going longer a end do some and material go pricing are

Brad Barber

my is our and always that to a deteriorate our guess it's likely with discipline deteriorate. larger I risk pricing I sheet to It's could that stress have. that opinion to of not competitors, think continue there's balance the easy

to values. standpoint as use remaining probably liquidate Now use for heavy values auction an isolated residual retail you steadier value that process that's assets, a component in companies that And require value, than the of way. the - from process auction are will auction riskiest we know,

But sales that our is not at do H&E. way professional move with the big We force. product we

So, see going think what similar continue you today. that know, we to to to I see pricing we're

and headline think I through pricing really of the been is margins, Earthmoving with fleet earthmoving. sales, auction. the We depressed that of the more XX% I went both sales. talked on equipment about at were used Leslie has

to really our this sheet, the see away. strength you, I mean, top in we've on larger we're know, give same among our will XX values. of discipline fleet. really you our product continue think good getting We're players you just that also months still I And, of respect. And not And to remind a going got fleets I'd old, young balance the

Ross Gilardi

got Okay, you.

a mean, on the could you business, I Just distribution if guys comment bit.

you thinking a business know any on it managing did going just the really downturn how forward been what hope distribution to now it in has cranes for would years. glimmers of business And or you take just earthmoving you around? and dismal turn mean, in the bit, future? are the that are guys kind What of you recovery didn't an of much a have I for you

Brad Barber

are in, do. there distribution. high lot the to I about You respects some of mean our things at could a maintain in I it allows say us fleet know, levels we

helpful I and products distribution pricing particularly sold rental crane on think being fleet. business achieving very receive, consistent us to margins and value that on our types out the earthmoving is of we our

steadiest parks That respect our of overall services, abundant margin revenues, of the typically and distribution price XX%. with is piece in one gross north

you So look there are the that a have opportunity If balance of We're would what new we were business. in volatility distribution growing we're lot sales question. we of with the we of would to things. not alone, of confined geographical at where happy to understand the it, We're concern we're the But it. I the good the have is by piece the don't I territory. say to grow

that rental our does dilute focus growing business. focus not our on And

but I some so there's say, that and have takes balance that we like we like relationship puts And the within today.

Operator

[Operator Please pass Instructions] from ahead. We question can to Elliott from go Stifel. now Stanley next the

Brian Brophy

for on Brian Stanley. is Brophy This

how of we of ask wanted Thanks. cost second some SG&A and thinking about into the quarter about should are given half the taking, back to actions the Just year? be the guys you into that

Leslie Magee

good point. Yes, that's a

what some what year to downs year throughout similar and be have it expect a the rate SG&A So look various XXXX I forward, expect first irrelevant the quarter. saw as we in with I percentage as SG&A first SG&A the to we've basis, fly of so ups saw in in would on revenues. we may a to we dollars incurred made. And the the and I would today, Instead, on moving not cost a full-year much in we that quarter. in first to reductions that be line consider given The percentage quarter full revenue of a the quarters basis run

Brian Brophy

really area? that's again? you going petrochem getting when projects to. in and the kind then perfect, the these of seeing you go cancellations, of large seeing through to on guys starts some you guys What delays Are expect are helpful. projects economy guys have you focusing this Okay, And specifically exposure that

Brad Barber

at point, seeing been there at Keep this it's So delay what in going we projects much lot all more mind are cancellation? are of times. on than a that

year. Some occurs this new them particularly and maintenance are just of are growth. Others traditional time that of construction

companies, quarters safety many themselves, many contractors that the standpoint, many health have to aggregating for not refineries from And elected in petrochemical such a well tight folks as concerns. as

So to and them we be phases. some back pauses. certainly appears delays work to and we or as wrapping kind certainly We're what of seeing up those have seen literally waves folks go speak,

where cancellations we what attention. in time, seeing not base this we're at see to continue point to know, broad You due or pay cancellations to we're going that's this, but

John Engquist

I we've go their the contractors, work. see big point those industrial that seen our would some down, go of of back also out workers headcount to we're way workers and starting to

So that's an encouraging sign for us.

Operator

ahead. from pass to Wondrack, go may Deutsche We now Please Bank. Sean next question

Sean Wondrack

there? what helpful? that'd any you. think about there? some and you of Particularly we there Are are? of and are to as on get back. footprint, potential there you exposure industries oil at ahead Where of these saw XXXX provide beginning you perspective, kind gas, and Thank to of to If there come look some your your could across some When ways kind learned think be you to and XXXX, lessons it's great back weakness hear that some

Brad Barber

lessons There were learned. certainly some

peaked we our we XX% think I where double around more was gas. and of revenues, are than from today oil

has should our And this return entire learned that be should field we've and rate so reflective, markets be in projects, time, when to since diversified. been going be time, to more that our kept of be or activity field do that we're can and in associated. in point that oil those reflective the oil And lessons business practice the volatility

a of upfront as We're seeing a time percent lesson with learned. what heavily think I the in generally, They're X% But really product. that X%, field. that the you're any construction of peak weighted project byproduct the has in products our oil sets are not revenue find fungible would we commercial oil None you specific of and U.S. the to offer any the most particular field been

today. certainly that it's to for business I And things think So back us risk. and adapted paying some our mitigate learned we dividends

Sean Wondrack

then, equipment that perspective? because by kind what it fungible you but everything, the - you And mean there? Given more sort with alleviate on burden shrunk the than does make handle that managing from that does Thanks. can that that it half, does of exactly of fleet have how a that lot is

Brad Barber

revenue to non-event mean, move it's we as generalize of had But to has it's a have and Well, our - half to then from helpful sharp I company. half within the revenues. if have those only talking downturn I'm of again, you here were going has inventory coming certainly only your easier if rental rental oil, it's assets. much a generally, it it But to

want as worried sound to way oil not of oil manage make manage, these are about fleet really to our no and don't and gas the the the but our fleet the for all need different policies, markets. things gas or communications, if method, the I we're procedures, it we

naturally same So we when And just not an anymore. it's the us downturn, event respond way. we see for internally a

Sean Wondrack

in please? can you. And of just about remind mean the some infrastructure that comes then you thank of build. one, out I a it there's know kind would just Okay, news. and my what business potential to your And But rumblings last obviously been us

Brad Barber

if sometimes Every It - but for it heard be build tremendous a infrastructure because Equipment for time think it Services. about get enough outstanding excited would our were H&E would long, we've for I so be we business. don't there meaningful

Operator

next Seth ahead. our question go Capital RBC to Markets. Please move from now from Weber can We

Seth Weber

the Fisher's guys is returned just restarted, equipment's is project to talk been then quickly parked, and products it I'm the Steve on this context that the the about just to it been Brad, trying at to to back getting has if site some to or has the going question site start understand how the in you it pretty could your to see equipment can Just just turnaround? you put already back of to sitting branches depot of be obviously restart be Thanks. activity a go out. - idled quick

Brad Barber

all a doing Seth, it's secure we're those on volume so and product that there. the off it fall to where And project participating Yes, certainly also projects. the sheer that the on of would it's both tracking ability had was moved projects not projects that that it's our we're so say within there. there, And I front sitting units are in largest that category of product

work. we're better And flip the say, put switch they of going to to so work, back it lack back for - when and

our have smaller very we have literally to still products projects speak, back as the projects, going or capacity with on we to don't there that customers product amounts in largest and here Now sitting issues our yard, go returned rent on of equipment, on any near waiting yard rent but term. back on either smaller our largest the

Operator

would I time. call this to at questions to hand further no over please. Barber like are the Brad There

Brad Barber

us Yes, I'd joining to end thank like you Thank QX. quarterly of look on our everyone to for call. you. forward to speaking We

Operator

the that will participation. gentlemen, conclude for XXXX Equipment QX call. H&E Services your you and Ladies conference Thank

now may disconnect. You

H&E Equipment Services (HEES) 8 May 202020 Q1 Earnings call transcript