- Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to H&E Equipment Services Third Quarter 2022 Earnings Conference Call. All participants will be listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask the questions. [Operator Instructions] Please note this event is being recorded. At this time, I would like to turn the call over to Mr. of President Vice Chastain, Investor Relations. Jeff ahead. go Please

Jeff Chastain

and support. Welcome Okay. found, with of review XXXX. our appreciate your third statements everyone. release which all the third morning Thank and good We and continued the and H&E participation issued you, quarter to your copy H&E covering along at website, schedules, of of press the www.he-equipment.com. quarter morning A was results this results the for be can supporting

a tab by found accompanied presentation, and is which website be morning this discussion also slide at under can Our Presentations. the in H&E the Investor Relations Events

slide call Leslie you today Chief the statements remind Corporate and and Brad your slide and by you As John call expect, statements. such attention call statements Financial two will Securities containing joined Chief Secretary. Laws. discussion, but today's him, to begin expressions Federal the to Barber, within the presentation, and Executive turn beliefs Statements other Officer, I'm could, forward Chief on before Magee, see Brad over about constitute and words that and I Engquist, I'll Officer of anticipate, will believe, President today's may, our looking the looking Officer expectations three meaning forward as contains and of Operating

to of call. we publicly and risk statements date to consider summary statements on statements. carefully Company's forward the any during company company financial listeners schedules involve investors A annual update reliance in reports. factors from undertake required call, looking are and Investors, today's other statements and includes materially differ this potential those the referencing in report safe results slide such not urged or measure and to after uncertainties forward other which risks uncertainties looking most XXXX today's harbor XX-K the The Also, the contained the conference our does in in find today's actual are are looking forward statement. to associated the not as factors looking presentation revise looking cautioned the Forward any contained periodic described appendix evaluating cause known the these in and for place on undue supporting directly press disclosure measures and form these will including and is the non-GAAP unknown could release statement presentation in materials. for call, the comparable forward reconciliation included GAAP to risks these and measures you an supplemental to of in

comparisons basis. unless noted best reported now Equipment results, on Barber, specifically Chief a presented discussed our morning I'll continuing and Finally, and of over call operations to Services. Brad the for this Executive Officer turn the H&E periods are

Bradley Barber

review financial to of and our Jeff. you, Good results. third morning XXXX quarter Thank welcome the

participation today's Your call in are continued and H&E in interest appreciated.

Our were third train quarter and financial continue exceptional consecutive the across financial quarters. to results improvement

of testify Our rental significant been in XXXX. a has on our component operations consistency focused

for results. followed begin our factors fleet leading and of network the Collectively, performance a of also segment. performance Strong improved the critical equipment several financial which these and have in to the expansion rental on segment four. industry our appreciation fleet outstanding rental gains profitability branch have revenues our rates, financial quarter a this result quarter record substantial contributed highlights utilization, basis. and morning quarters margin for quarter, rental Our Proceed contributed included by to slide of consolidated I'll to another of notable factors equipment discussion led segment. both growth to a third with steady business impressive in and that review the

I achieved our will this fourth Relating address closed of our towards outlook will the progress announced to quarter conditions success. latter I the One positioning a acquisition XXXX. point, for should of month. discuss with I our currently we what and believe In expanding Incorporated, previously strong earlier which business close H&E Source persist future business Then rundown and through for addition, I'll industry and Equipment Rental considerable the into

follow we'll results slide with on and be address questions. thorough performance, Lastly, liquidity. capital an business including review segment quarter a happy update to third your of six. and we'll our structure financial On Then

remained vigor our of quarter elevated throughout the strength reveals the and our cycle. quarter Business review Our rental network. branch in continued across with highlights activity conditions the business fundamentally equipment third strong

sequentially, averaged XX.X% $XXX.X rental record a this was were ancillary of the in while Given these a basis. than million XX.X% robust the include XX% or adjusted of XXXX, a strength same Also The of totaling year-over-year on due measures XX.X% part posted on fundamentals, a a at $XXX.X company. to revenues while rental Also, points records million. financial combination Revenues business basis, been total with XX.X% in our XXX XX% $XXX.X quarterly EBITDA performance quarter rental on rate segment, revenues improving third on margin better and physical healthy up equipment reached quarter strong the quarter equipment million utilization, quarter ahead or in both year-over-year sequential rental which gain revenues fleet benefited continuously from basis, representing of appreciation, same from for XX.X% a which of grow. basis the our XXXX. and closing

OEC and the Our record $XXX.X revenue important business of quarter three equipment growth sound in cost results utilization the attributes, rate rental and -- strong the increase appreciation, XX.X%. A was Each in larger an performance. exhibit measure increase was typically resulted by an year fleet. third rental in it measured rental and present or or cycle will fleet original fundamentally than ago as on million a

better seven points of sequential quarter quarterly than basis the excellent gain and record XXXX. On basis rates of margin supported rose of by a totaled X.X% quarter results or points On increased ahead quarter. results increase a surpass XXXX. XX.X%. a the and year the year-over-year of were Rental $XXX.X The in third XX.X% the improvement increase last quarter please. previous the a over XX.X% rental quarterly sequential another revenue year million, nine rate month Rental slide achievement, set and ago and segment's year of of quarter The to have record XXX XXX X.X%. rental XX.X% XX, average, ending September the pricing our through impressive by demonstrated as of gross second

utilization forces. platform Our of ability increase which professional pricing by constrained our of of proprietary excellent such persistent levels was and supported by exceptional high the An by quarter. smart a rate a supply to made equipment, execution achieve and together combination impressive sales was demand environment customer possible through rate sustain

physical third the sequential earlier, average representing our points As highest XXXX. of third points including utilization previous XXXX or basis quarter. points beginning result second third was was yet The record of and our XX.X% quarter quarter was the another the better resulted XXX quarterly XX in quarter the The $XXX for Despite in of third our of the environment strong million indicative result XX.X%, improvement in of ahead of shown of XXXX. measure capabilities. our of quarterly ahead is $XXX industry XXXX well XXX fleet robust quarter. quarter basis XXXX, quarter XXXX. the which in basis our in basis The better equipment Utilization in as points the and since XXX previous utilization has operational since the noted OEC of quarter than XXXX, growing our than fleet, the dollar as million third half exceptional by underlying demand the

we're for continually XXXX, of through final XXXX business As and encouraged Slide quarter we we what prospects consider the hear. please. managed see and eight by

of steady are of apart the a business markets. seasonality, reassuring a these underlying immediate the into expected the a construction remains limiting remain traditional availability and XXXX. planned. chains fleet of pricing robust set a challenge Feedback our We factors Industrial equipment, fundamentals utilization and backlog Also, continue of characterized to strong with non-residential, projects demand, sustain and customer global strong continuation trends experience to from environment by favorable as in or proceeding from base with projects supply end reinforce

for numerous contribute to that expect We we Contractors believe provide manufacturing activity. the to further beginning well benefit future Furthermore, projects to measures projects emerging as U.S. the opportunities. the construction capabilities and additional planning encouraged energy. In to the visibility Builders Index, expansion addition, from the from into of projects continue Billing in infrastructure likelihood Recent of Dodge of construction XXXX, onset stages. the we construction construction as the these will other Architectural expansion the into greater renewable and Associated Index programs as Momentum well XXXX and remain by and signal indicators

the company. Slide of reinforces Our growing projected represents the we our exceptional our an continued fleet and important construction earlier our for network. our markets initiatives, the future, in year, as identified a expansion Throughout end confidence and evaluation strategic serve branch and catalyst base which fleet, we activity quarter, support please. and for demonstrated investment of sturdy third record of nine this in the rental progress

In million. of the in our XXXX of continued the to fact, to-date third expenditures $XXX.X Despite billion, including disruptions $X.X we to a fleet the range as with OEC we close growth representing expansion capital size chain, The H&E. of expect XXXX gross a by year million global been $XXX.X investment of for to quarter. has for over to capital now million, measured just $XXX million record record the and company, year increase supply our gross in is $XXX fleet

in Kentucky. expansion closed source, initial locations October presence network and increase on by X, three including of our XXXX which operations, Regarding Illinois, states, Indiana XX of branch one acquisition an our

XX to our openings confident bring quarter excited our locations presence period. locations XXst location we're this about is Midwest branch year One openings integration new in in our The branch we fewer an third XXXX. in please. of was accelerated are for emphasis with our operations the as during our new cultural included in branch progress we in Delaware. first excellence evident The in with growing in underway South. than in four latest within With operations, expected Additionally, our the The process with eight. more branch branches and combined customer existing XXth fourth Florida, locations XX XXth area. branch new the Slide our the The quarter, the for as of and of openings program consistent opened goal our fit in no satisfaction. prospects achieving Texas, of and density total H&E California, the well excellent gained and on coverage sources

play my progress through short business. than we evaluate conclude A As step business to company progress focus. quarter rental rental our sale to of exited continue a the the on months turn more sits $X.X I the exceptional. while substantially and XXX substantial now on and a success. have the our and following the later, on locations added our remained XX which significant growth, remains of state including ability position focus are support operational billion. continue of highlight and our revenues margin Through performance will platforms of greater proficiency. also our to systems environment, in of from this poised to executing transformative achieved better to XX strategic The and on the delivered of lower the significant rental a transition our comments demonstrated H&E concentrate across entirety benefiting to crane this margin want revenue in business. robust review business to over in Also, that margins last and These time to record distribution instrumental outstanding operating further key With throughout for pure term prepare in to opportunities to consequential our over of our to steadier suite focus fundamentally call achieving concentration period in states, exited and has network H&E than distribution initiatives. began the while we've our branch strategic the would I want our for performance Leslie, growth two business the transition rental the operations, OEC locations clearly evolution simultaneously years, measures. divestiture financial we while growth has capital in was systems base XX operations. with rental information we improvement business side. fleet, at predictable Arkansas, In evolve best-in-class that a many long intensified a I XXXX appreciation successfully our expanded This less and earthmoving less investing metrics the

each H&E Finally, other. toward excellence of an both and and demonstrated team has who loyal experienced dedication motivated and customers professionals our respect to

our will is over robust rental quarter to call focus of talented addition operations, for systems, a I In future. Leslie? workforce for performance. position XX, review geographic to successful please. now turn on attract Leslie that Slide intensified footprint third the it and financial our H&E

Leslie Magee

and everyone. on morning Good Brad. began I'll you, welcome XX. Thank review today's financial slide

of Third was led same improvement revenue, points increased strong million closing sequential the third and the fleet, on when $XX.X and were drove revenues Utilization better quarterly a increase or million compared of basis. an increase rates at a year in XXXX, on by XXXX. totaling a points the the combination These rental and in quarterly record strong million in XXXX. X.X% $XXX.X factors or basis. quarter to million quarter another ago to rising rental XX.X% quarter of of average XXX XX.X% sequential rental basis compared third The compared Rental third basis utilization. larger a which quarter rates to of the throughout XX.X% of ahead $XXX.X a quarter total XX.X%, set XX $XXX.X quarter, remains better and of the quarter,

OEC $XX.X We September continued the investment up OEC record close Continuing XX, million, million $XXX in the in XXXX. or declined the to when XX.X% business other of the OEC to equipment at quarter $XX.X or results XX.X%. is increasing million with segment or XXXX, used million. $XXX.X with third fleet fleet XX.X% sales compared Since our

utilization resulting sales remains all continue We lower in major while prioritize to equipment rental lines. constrained, product across

with to due million $XX increase third to record primarily gross $XXX.X $X.X third million, XX.X% in million Consolidated New earthmoving to and XXXX, the sales higher XXXX. of quarter XX.X% quarter of $XX.X of quarter, equipment profits or sales to the improved equipment. other third compared of compared set million by the another or an totaling increase the

points ago were record XX.X% XXXX reveals the the a PP&E. of or prior of Arkansas basis solid rentals, other quarter and to than equipment, transition relating quarter quarter margin branch, used improvement of the rental points comparison of sales the total rental and million better to A equipment by of plant sales third per our Income lower third which to of share Higher quarter gain XXXX. to in of equipment equipment use a the fleet. and of compared new margins income XX.X% operations obtained $X.XX to XX.X%. record XXXX. basis sales rentals, compared rose result. XX.X%, million slide year which third property, compared ahead was to ago on XX.X%, please. other or used quarter. margins to The rose of to to of slightly margins gross in or the to gross flat focus. included diluted share, pure record grew partially increased rental XX.X% the and primary business to Our compared a to the segment improved trade-in compared million compared margin improvement and of in compared $XX.X $XX.X drivers to the rental quarter to due third year with were finally, Proceed quarter on XX.X% to XX third on in the in XXX and into Net XX XXXX. improved sequential XX.X% Recall to XX% gain to primarily margins only the margins XX.X% from margins Margin sales margins, XX.X% $XX.X to exclude compared Also component margins quarter equipment quarter improved to use rental results XX.X% $X.X fleet compared diluted per XX.X% XX.X%. million, sale XX.X%. third to quarter a while to of higher on equipment million through in on Margins margins equipment XX.X% XX.X%, or third was And quarter in compared $X.XX to part $XX service dipped to year XX.X% with XX.X% XXX our the offset

rate Our income comparison. compared XX.X% XX.X% the over to same tax of quarter third in was effective period the

than EBITDA Let's increase XX.X% improvement move prior our XX.X% of quarter on a The to please. to $XXX.X million. $XXX.X revenue. year compared or better slide XX record in Adjusted favorably reached their million percent third total a total

along third EBITDA basis of of ahead gain better other mix partially with than prior offset on following the the on increased points the margin points quarter rental the sale or a basis Arkansas XXXX. revenue of year higher equipment, was quarter lower used branch. margins favorable the outcome, record XXX the adjusted sales in rental to PP&E which and by of drove XXX Our XXXX in XX% prior quarter third stronger A and

million Next was salaries, an compensation increase $XX.X the primarily $XX.X incentive headcount. increase slide profitability third please. XX, to related to XX.X% The quarter, of XXXX. compared SG&A to third or of totaled the employee wages, increase expenses in and quarter due

In year addition, the professional Expressed unchanged increase. higher as a of revenue ago. quarter compared a fees XX% were facility XX.X% and at to a and percentage expenses, third expense liability, SG&A insurance contributed to

branch of in quarter the compared contributed third branches were of XXXX efforts to Our open ago expansion ago XX Slide nine please. year period. as a $X.X expense million the since quarter year

Gross while quarter expenditures capital E in to $XXX.X non the totaled third were rental expenditures were inventory. PP&E expenditures $XX.X cash were Net million million, Turning the million. core gross PP& third transfers fleet flow, fleet expenditures for capital cash the from capital net our including and capital quarter $XX.X $XXX.X in expenditures million.

slide used the size age XXXX, fleet $XX.X, of among Net investment compared XX. flow million of industry the an larger third XX.X% of on by at original fleet improved the compared cash than the to the continuation quarter. fleet provided On operating third Slide quarter lowest to in and with XXXX compared the the $XXX of Net quarter September activities XX, million average previous rental our XX.X XXXX XX.X% XXXX. quarter while the of remained average year months. program. fleet was totaled increase age reflecting $XXX.X result at billion, approximately cash quarter the $X.X to XX.X%, close Our at equipment billion costs or industry to our September the in XX in as was XX. On Average XX, prior XXXX. close the of XX, latter free in million of quarter, in was third months at utilization of based September $XXX dollar $X on debt the in the the approximately the close

Our over quarter times at comparison. net leverage in third X.X the of remained same the period

We maturities XXXX $X.XX before of have our billion unsecured no on senior notes.

flip Let's slide the XX please.

at improved million. Our in at compared position balance XXXX, XX, increase totaled September and approximately billion ABL Excess $XXX.X $X.X XX, XX, cash a $X.X June barring our of including XXXX facility ABL to investment the our the XXXX, and under billion the under $XXX.X approximately to of million results. facility availability $XXX.X million, appraisal availability fleet amended favorable reflecting continued fleet September with on liquidity

as million. charge fixed if have defined to the billion $XX ABL our remains definition, the applicable. springing availability by determine Our is concerns. By no agreement of to we $X.X excess minimum continue is used measurement excess covenant availability availability With

quarter quarterly the common $X.XXX we dividend our stock paid per share third Finally, of regular of of XXXX. in

to third success further of it quarter XX our is dividends of summary, our While please. the subject In evidence approval, results Slide to are our business intention continue strategy. to the board pay dividend. are

to steady what our of are record remains cycle. financial investment due and well utilization, of performance. XX.X% this U.S. absence significant consistent H&E's outlook dollar in capital leading profit have our Gross as we the including industry to fundamentally and transition. that part The for our to fleet Also a intensified to encouraging of on levels manufacturing rental expanded competitive which achieve rental in be and has energy strategy. an margins. improvement a measure expansion and fleet opportunities led and Greater rental of a difficult emerging new is geographic a are level pure focus deploying at reach and opportunities our how Our to robust quarter, EBITDA opportunities play meaningful revenues currently with at remains our and base operations, position, strengthen stood would

financial all You begin focus With to ready operating addition in should further Operator, drive expect improvement a continued business instructions. of appropriate to operational to when further on expansion metrics. to and that, strategy, Q&A our please are enhancement and the presence improvement occasional we intended which of period. provide are our our in

Operator

first Fargo. will begin answer Wells We Seth from question the and now Weber question session. go Our Instructions] ahead [Operator Please with is

Unidentified Analyst

Thanks is guys, actually taking questions. Hi, today. Larry my Seth this for for

Bradley Barber

Larry. you, Thank

Unidentified Analyst

rate, XX.X% I the again, over? out I mean about I should can and rate go really, think over just there? wanted see start rate really how What year into quarter much XXXX? obviously going to year. with fourth How are strong expectation we further we mean,

Bradley Barber

Yes.

base will Our seasonality. is immune not We're rates that to positive. remain expectation

Sometime -- Where month, softness and know in that we October I we typically November, it's given. from both weather rate, I rate. exit much we'll impossible receive say XX% utilization some we seasonality probably how typical scare a determined quarter. start go don't But we in is wouldn't by with this be that's we November peak holidays. our that to see

you of to I have think to with that? in quarter. add expectation would anything coming maybe out probably point we're John, to the XX% the another X.X% somewhere

John Engquist

Look, will. expect it as long Yes. which it's, as we holds, utilization

for our comfortable. October peak with Brad As And mentioned, very is month today, are are where typically we we utilization.

still remainder the expect of demand quarter to the We be there. is solid

we're it as impacts deal last have not typical, was to that year, impactful we As were QX reality seasonality of not Brad as nearly going has in is When look mentioned, a past seasonal with. been years. at to it the

we could is that ranges, to exit double comfortable. I between with to is So, achieve being XX%. that we where rate it fair feel said, X.X% think digit say

Unidentified Analyst

expectations just contributed quarter? tell And a Okay, you. great. how can That's you follow-up. I acquisitions, just much quarter acquisition the very, and your for the very On helpful. Thank revenue us to fourth guess in

Bradley Barber

we quarter, of Yes. October. nothing closed the beginning actually It to contributed the

their disclosure, team million into QX. superior limited We've where going I and are. great to similar roughly mix a a is things. This great to where revenue This we're we out, $XXX ours, would operational embedded And OEC, culture, purchase opportunities had the board very rates a other be going and I in same efficiencies. a point at will excited products among fleet, increase pretty going do positive find not motivated, a But QX, to that we're business in think to good there point as million smaller they're at contributor rental but to is better and $XXX the as it So acquisitions, be price, team not, a capable a is, of they're quite levels H&E. a bringing and performing they're forward. going to here

Unidentified Analyst

color, for guys. it. Appreciate Thanks Great. the

Bradley Barber

you. Thank

Operator

Ramsay Research with next Steven ahead. go The is question from Group. Please Thompson

Steven Ramsay

Good operating morning. Maybe thought the going company of can to to Source magnitude your with get margin on talk and you gap can versus One continue H&E you line level? One that quickly just Source. order to you We're EBITDA of think how

Bradley Barber

the Steven, take. for question. thank you me Let

the piece Let me take last first. that of

we of have XX state them I months. to at think steady given a in economy, will XX levels our

a it As mean, of to and those little be achieving. the part are folks as months give will lower XX operating But same I I we're the H&E us levels. XX, pertains think than at they impact,

Steven Ramsay

greater the October, right what then And visibility you to compare years other now when Excellent. forward? And in prior is that look as visibility? you October is years fueling or than supporting this

Bradley Barber

Yes.

the It next sure. momentum next here going the supply business. achievement, projects a our new to through that for and magnitude is But years the cancellations No and to good rate out the few visibility. like other really of any the been last getting with the to year, their postponements, set with we today we see improvement persist a things we these us in continue books the as environments than than to started. better and achieve discipline market, of utilization is no where we better of nice before concern have lays speak of We've of sit hitting in today the day. if manning for visibility has equipment projects with every not part constrained all There's not dynamics customer anything year. and grow our Our

economic we like feel our while do points looming of the data visibility I quantifiable, another other solid point and XXXX. So some concerns, very see and anecdotal there's all to --

Steven Ramsay

-- And enhancement then you of mean you strategy, what does business talk the year helpful. the Okay, What your going big past plus. forward? would in about that occasional moves do

Bradley Barber

could mean of things. variety a It

continue our portion portion, to not acquisition been, I a to discipline. be selective specialty going meaningful in We continue to a mix. us. or discipline. be proven to always we've evaluate I think larger of The we've to the opportunities, adding think selective We're We to opportunity have very week. opportunity of stated to maybe opportunity that's better, systems. an develop That's rentals into for fixing next occur But us our for continue and

our competitors. with to And XXX systems our our size with So states that up par multiples run be may largest locations our not enterprise the just way case. some that's current not may that in an could up XX believe often, folks in systems. We with

achievement. we built I continue of think that to as And those so, there's into opportunity a lot build out,

spent start punching XX acquisition, locations We very of some tuition year, me, specialty, part pipeline. out acquisition a a excuse an decade proud strategy talent our perfecting outstanding the or paying better by So plus that's of our team. accompanied warm

consistent. rental done for been company. ourselves And work, We've reliable. We've the growing plus old always been always now. positioned XX year in decade. been so, we're And last the we've We've

that's faster up results. continue to focused. in we're And while show more little So to bit a we can rental our in going grow

Steven Ramsay

and is it more me, in slow the this is that meaningfully? that therefore last Then How How utilization for slowing, revenue impact one, should coming redeploy fleet? rates months. And need the trailing and Excellent. multifamily residential durability? month quick vertical is to clearly XX% XX much of may that have could of

Bradley Barber

no rare on family we're see to be multifamily. H&E have a an almost impact. would Equipment machine And It will It entirely single residence.

Steven Ramsay

Great. Thank you.

Bradley Barber

Thank you.

Operator

The from with America. Please go Bank ahead. [Indiscernible] next of question is

Unidentified Analyst

everyone. quarter. Hey, morning, And the on great good congratulations

Bradley Barber

you. Thank

Unidentified Analyst

thinking you for you're equipment your the strong year, placed looking about market you large of have next already? substantial just demand portion year? So your a relative current orders seeing year this to or are in How at fleet? And orders next

Bradley Barber

POs Sharif, both orders. we've purchase what APOs, placed advanced we and call

we continue the with ability all next an have of we've year manufacturers orders so, yes, And slated we are year out. to as negotiated close for and our to key with refine our

Unidentified Analyst

And orders? you pricing us that's a negotiated of those sense been could the on give

Bradley Barber

range. Sharif, so digits. the And to X% at be we're best our in X% with to to single mid I far, we're to going products tell, mean, combined. looking somewhere all analysis that's

Unidentified Analyst

just revenues, other. then bit more rental demand segment? and give and a strong Could pickup it's in utilization the looking a There's got your portfolio. color on that And dollar across the at products you it. sub highest Got in

Bradley Barber

other, of What would larger few you one revenue. that's talk pieces hauling about ancillary rental in the other fields, some primarily

you question response. little more, could a clarify So our in sure make we're so accurate we'll your

Unidentified Analyst

Yes.

you So category, other that color looking the the dollar strongest that in at you've strong bit driving the fleet, the dollar that's utilization? fleet there a if give seen utilization category, utilization in the of demand on

Bradley Barber

of set to and new that. grow charges. utilization. Damage another rates in those material no margin fuel it's of of continued question Waiver, more as we the think in end delivery other fees outstanding teams answer our the component is Waiver to users have we've component increasing and refer an your another Damage is [ph] charges to the raise with associated. I also And levels Normally ancillary but job There's fleet gross our Yes. to done change

Unidentified Analyst

is how ongoing spend? versus to builds Understood. of activities residential other such or CapEx And maintenance that exposure, as new tied then within non much

Bradley Barber

those where mix. by a are. have ongoing more It's on on heavily we That's reliant an annual new really maintenance significant certainly where markets market. basis. of the But selected there's construction. We're It's dollars majority predicated

So by really a it's geography. mix more and there's driven

Unidentified Analyst

you. Thank Understood.

Bradley Barber

Thank you.

Operator

next The is Stifel. from Please Stanley ahead. was Elliott Instructions] [Operator question go

Stanley Elliott

good Hey, congratulations question. you morning, taking on Thank year for everyone. the far. And a so great

You've I and mentioned if you've answered. apologize

how a to constrained? Some you'd in have the play in the equipment you exceptionally And that that calls. of of around could both has year? improves get supply say been a for this coming the strong But this that just dollar of into been bounced get out sense your time, year, and much trying context year? Do that I sense next been

Bradley Barber

achieve. to our one reduced you clearly next sense manufacturers going that with, position guidance. improved it. Yes. to going this our that manufacturers we're it's on reason, believe original to to Stanley, much alignment was deliver, better not availability to manufacturers. the if call last and that I CapEx take to the from desire I have going And to don't ability meaning not money with do we our due for improve I remember, that as in we're be the stated and very year, we spend get that the

I going that's improve. So, think to

of issued on the of representative -- just supply year. about, itself. POs healing that's availability going One I don't into we But excellent earlier was we what's or next received think have questions chain have we going the

team good selected with that's supplier confident and think were our planning manufacturers, I who needs of good

Stanley Elliott

constrained? being of additional supply the context In starts coming I bringing your the Source, for on the some One does appetite And guess, equipment of within that in change warm year? even

Bradley Barber

Look, it geographies. certainly in our those certainly it appetite increases

where know, do starts warm you have employees. there's we revenues a have warm As to recognition, name we some where of customer base we where prefer

entering bringing those this we're new have to consider company our to geography us. allow considerations. important forward more And making before into to And company states we three fine is going so, looking additional is than to this particular us

Stanley Elliott

should position of, -- it like your about dollar sounds can that think Ian much And within you then don't there XX we to that? something it what of additional I terms And way a lastly, over, How business months, months, down let's or in your soak quantify Florida. in any of ballpark is say, could XX the kind up drive kind like that or do would higher, you tailwind be sort there. be if equipment with of for a time know lot of Hurricane but maybe

John Engquist

Well, one going demand is, time. the extended that to period thing strong an for say of can I be is

have all But, lot available, be fleet there is you down send it, of will and opportunity? with an excess down a start going we a For mentioned, down of on certainly we supply it see impacts When going feed there. need to that's don't there, the sure the cleanup on going place come hit little is. repairs seasonality we and bit to to South Florida. have As a there it of excess in to what's

Stanley Elliott

so of guys. Great, Thanks luck. much best and

Bradley Barber

you, Thank Stanley.

Operator

Jeff back any to over This concludes conference to our turn would I question and for the answer remarks. Chastain session. closing like

Jeff Chastain

Thank for call Okay. interest We in continued good H&E. us you and today's everyone. look on again. participating And day, Gary. your you, call today's with assisting for thank everyone for and to speaking forward thank Gary, on you

Operator

The attending now for concluded. today's sir. conference presentation. Thank You're is quite you welcome,

disconnect. now may You

H&E Equipment Services (HEES) 27 Oct 222022 Q3 Earnings call transcript