falsedesktopHEES2020-09-30000156459020048324{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Large Accelerated Filer\t☑\tAccelerated Filer\t☐\tNon-Accelerated Filer ☐\nSmaller Reporting Company\t☐\tEmerging Growth Company\t☐\t\n", "q10k_tbl_1": "\tPage\nPART I. FINANCIAL INFORMATION\t5\nItem 1. Financial Statements:\t5\nCondensed Consolidated Balance Sheets as of September 30 2020 (Unaudited) and December 31 2019\t5\nCondensed Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30 2020 and 2019\t6\nCondensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30 2020 and 2019\t7\nNotes to Condensed Consolidated Financial Statements (Unaudited)\t9\nItem 2. Management's Discussion and Analysis of Financial Condition and Results of Operations\t31\nItem 3. Quantitative and Qualitative Disclosures About Market Risk\t45\nItem 4. Controls and Procedures\t45\nPART II. OTHER INFORMATION\t46\nItem 1. Legal Proceedings\t46\nItem 1A. Risk Factors\t46\nItem 2. Unregistered Sales of Equity Securities and Use of Proceeds\t47\nItem 3. Defaults upon Senior Securities\t47\nItem 4. Mine Safety Disclosures\t47\nItem 5. Other Information\t47\nItem 6. Exhibits\t48\nSignatures\t49\n", "q10k_tbl_2": "\tBalances at\t\n\tSeptember 30 2020\tDecember 31 2019\n\t(Unaudited)\t\nASSETS\t\t\nCash\t11997\t14247\nReceivables net of allowance for doubtful accounts of $4963 and $5236 respectively\t167595\t192204\nInventories net of reserves for obsolescence of $318 and $331 respectively\t72871\t85478\nPrepaid expenses and other assets\t11597\t10262\nRental equipment net of accumulated depreciation of $705944 and $676376 respectively\t1078403\t1217673\nProperty and equipment net of accumulated depreciation and amortization of $160637 and $156782 respectively\t122173\t130564\nOperating lease right-of-use assets net of accumulated amortization of $20497 and $11197 respectively\t165479\t156570\nFinance lease right-of-use assets net of accumulated amortization of $2173 and $2051 respectively\t244\t365\nDeferred financing costs net of accumulated amortization of $14944 and $14419 respectively\t2332\t2857\nIntangible assets net of accumulated amortization of $9747 and $6952 respectively\t29953\t32948\nGoodwill\t68851\t131442\nTotal assets\t1731495\t1974610\nLIABILITIES AND STOCKHOLDERS' EQUITY\t\t\nLiabilities:\t\t\nAmounts due on senior secured credit facility\t17986\t216879\nAccounts payable\t69805\t58853\nManufacturer flooring plans payable\t11646\t25201\nAccrued expenses payable and other liabilities\t73764\t78382\nDividends payable\t135\t171\nSenior unsecured notes net of unaccreted discount of $2334 and $2691 and deferred financing costs of $1511 and $1743 respectively\t946155\t945566\nOperating lease right-of-use liabilities\t168952\t159265\nFinance lease right-of-use liabilities\t368\t550\nDeferred income taxes\t178752\t180126\nDeferred compensation payable\t2173\t2098\nTotal liabilities\t1469736\t1667091\nCommitments and Contingencies\t\t\nStockholders' equity:\t\t\nPreferred stock $0.01 par value 25000000 shares authorized; no shares issued\t0\t0\nCommon stock $0.01 par value 175000000 shares authorized; 40245706 and 39921838 shares issued at September 30 2020 and December 31 2019 respectively and 36096814 and 35848089 shares outstanding at September 30 2020 and December 31 2019 respectively\t401\t398\nAdditional paid-in capital\t239139\t235844\nTreasury stock at cost 4148892 and 4073749 shares of common stock held at September 30 2020 and December 31 2019 respectively\t(66159)\t(64783)\nRetained earnings\t88378\t136060\nTotal stockholders' equity\t261759\t307519\nTotal liabilities and stockholders' equity\t1731495\t1974610\n", "q10k_tbl_3": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nRevenues:\t\t\t\t\nEquipment rentals\t165849\t204132\t496162\t572563\nNew equipment sales\t37248\t65010\t112068\t177709\nUsed equipment sales\t40000\t31180\t105231\t96942\nParts sales\t27853\t31499\t83842\t93798\nServices revenues\t15637\t18105\t48116\t50398\nOther\t2673\t3071\t8099\t8822\nTotal revenues\t289260\t352997\t853518\t1000232\nCost of revenues:\t\t\t\t\nRental depreciation\t58083\t63065\t177225\t181647\nRental expense\t25628\t27889\t74461\t79676\nRental other\t16816\t18620\t47847\t52742\n\t100527\t109574\t299533\t314065\nNew equipment sales\t33124\t57475\t99809\t156638\nUsed equipment sales\t27872\t21409\t71592\t63742\nParts sales\t20925\t23171\t62180\t68750\nServices revenues\t5198\t5898\t15911\t16261\nOther\t2547\t3342\t7873\t10167\nTotal cost of revenues\t190193\t220869\t556898\t629623\nGross profit\t99067\t132128\t296620\t370609\nSelling general and administrative expenses\t70040\t77296\t217525\t233783\nImpairment of goodwill\t0\t0\t61994\t0\nMerger costs\t150\t47\t308\t314\nGain on sales of property and equipment net\t2102\t718\t9260\t2339\nIncome from operations\t30979\t55503\t26053\t138851\nOther income (expense):\t\t\t\t\nInterest expense\t(14887)\t(17331)\t(46489)\t(51453)\nOther net\t990\t588\t2262\t1609\nTotal other expense net\t(13897)\t(16743)\t(44227)\t(49844)\nIncome (loss) before provision (benefit) for income taxes\t17082\t38760\t(18174)\t89007\nProvision (benefit) for income taxes\t6979\t10329\t(124)\t23719\nNet income (loss)\t10103\t28431\t(18050)\t65288\nNet income (loss) per common share:\t\t\t\t\nBasic\t0.28\t0.79\t(0.50)\t1.82\nDiluted\t0.28\t0.79\t(0.50)\t1.81\nWeighted average common shares outstanding:\t\t\t\t\nBasic\t36110\t35893\t36035\t35835\nDiluted\t36249\t36046\t36035\t36012\nDividends declared per common share outstanding\t0.275\t0.275\t0.825\t0.825\n", "q10k_tbl_4": "\tNine Months Ended September 30\t\n\t2020\t2019\nCash flows from operating activities:\t\t\nNet income (loss)\t(18050)\t65288\nAdjustments to reconcile net income (loss) to net cash provided by operating activities:\t\t\nDepreciation and amortization of property and equipment\t22288\t20841\nDepreciation of rental equipment\t177225\t181647\nAmortization of finance lease right-of-use assets\t121\t122\nAmortization of intangible assets\t2996\t3091\nAmortization of deferred financing costs\t755\t757\nAccretion of note discount net of premium amortization\t358\t357\nNon-cash operating lease expense\t10619\t8021\nImpairment of goodwill\t61994\t0\nProvision for losses on accounts receivable\t3340\t4059\nProvision for inventory obsolescence\t95\t152\nChange in deferred income taxes\t(1374)\t22127\nStock-based compensation expense\t3295\t3060\nGain from sales of property and equipment net\t(9260)\t(2339)\nGain from sales of rental equipment net\t(33102)\t(32780)\nChanges in operating assets and liabilities net of acquisitions:\t\t\nReceivables\t21269\t(2045)\nInventories\t(7712)\t(39631)\nPrepaid expenses and other assets\t(1355)\t(3098)\nAccounts payable\t11549\t(16871)\nManufacturer flooring plans payable\t(13555)\t2259\nAccrued expenses payable and other liabilities\t(14478)\t(7492)\nDeferred compensation payable\t75\t82\nNet cash provided by operating activities\t217093\t207607\nCash flows from investing activities:\t\t\nAcquisition of businesses net of cash acquired\t0\t(106746)\nPurchases of property and equipment\t(17283)\t(31451)\nPurchases of rental equipment\t(81426)\t(269150)\nProceeds from sales of property and equipment\t12688\t3085\nProceeds from sales of rental equipment\t96797\t89105\nNet cash provided by (used in) investing activities\t10776\t(315157)\nCash flows from financing activities:\t\t\nBorrowings on senior secured credit facility\t729810\t1174120\nPayments on senior secured credit facility\t(928703)\t(1040750)\nDividends paid\t(29668)\t(29530)\nPurchases of treasury stock\t(1376)\t(1640)\nPayments of deferred financing costs\t0\t(559)\nPayments of finance lease obligations\t(182)\t(172)\nNet cash provided by (used in) financing activities\t(230119)\t101469\nNet decrease in cash\t(2250)\t(6081)\nCash beginning of period\t14247\t16677\nCash end of period\t11997\t10596\n", "q10k_tbl_5": "\tNine Months Ended September 30\t\n\t2020\t2019\nSupplemental schedule of noncash investing and financing activities:\t\t\nAccrued acquisition purchase price consideration\t0\t3432\nNoncash asset purchases:\t\t\nAssets transferred from new and used inventory to rental fleet\t20224\t38240\nPurchases of property and equipment included in accrued expenses payable and other liabilities\t(42)\t(27)\nOperating lease right-of-use assets and lease liabilities recorded upon adoption of ASC 842\t0\t162814\nFinance lease right-of-use assets and lease liabilities recorded upon adoption of ASC 842\t0\t782\nOperating lease assets obtained in exchange for new operating lease liabilities\t18208\t9074\nSupplemental disclosures of cash flow information:\t\t\nCash paid during the period for:\t\t\nInterest\t59304\t63312\nIncome taxes paid (refunds received) net\t(354)\t2658\n", "q10k_tbl_6": "\tThree Month Period Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n\tTopic 842\tTopic 606\tTotal\tTopic 842\tTopic 606\tTotal\nRevenues:\t\t\t\t\t\t\nRental revenues\t\t\t\t\t\t\nOwned equipment rentals\t142708\t168\t142876\t177287\t305\t177592\nRe-rent revenue\t6546\t0\t6546\t7205\t0\t7205\nAncillary and other rental revenues:\t\t\t\t\t\t\nDelivery and pick-up\t0\t9161\t9161\t0\t10977\t10977\nOther\t7266\t0\t7266\t8358\t0\t8358\nTotal ancillary rental revenues\t7266\t9161\t16427\t8358\t10977\t19335\nTotal equipment rental revenues\t156520\t9329\t165849\t192850\t11282\t204132\nNew equipment sales\t0\t37248\t37248\t0\t65010\t65010\nUsed equipment sales\t0\t40000\t40000\t0\t31180\t31180\nParts sales\t0\t27853\t27853\t0\t31499\t31499\nService revenues\t0\t15637\t15637\t0\t18105\t18105\nOther\t0\t2673\t2673\t0\t3071\t3071\nTotal revenues\t156520\t132740\t289260\t192850\t160147\t352997\n", "q10k_tbl_7": "\tNine Month Period Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n\tTopic 842\tTopic 606\tTotal\tTopic 842\tTopic 606\tTotal\nRevenues:\t\t\t\t\t\t\nRental revenues\t\t\t\t\t\t\nOwned equipment rentals\t431881\t630\t432511\t497709\t824\t498533\nRe-rent revenue\t16306\t0\t16306\t19761\t0\t19761\nAncillary and other rental revenues:\t\t\t\t\t\t\nDelivery and pick-up\t0\t26890\t26890\t0\t30272\t30272\nOther\t20455\t0\t20455\t23997\t0\t23997\nTotal ancillary rental revenues\t20455\t26890\t47345\t23997\t30272\t54269\nTotal equipment rental revenues\t468642\t27520\t496162\t541467\t31096\t572563\nNew equipment sales\t0\t112068\t112068\t0\t177709\t177709\nUsed equipment sales\t0\t105231\t105231\t0\t96942\t96942\nParts sales\t0\t83842\t83842\t0\t93798\t93798\nService revenues\t0\t48116\t48116\t0\t50398\t50398\nOther\t0\t8099\t8099\t0\t8822\t8822\nTotal revenues\t468642\t384876\t853518\t541467\t458765\t1000232\n", "q10k_tbl_8": "\tEq. Rental Comp. 1\tEq. Rental Comp. 2\tNew Eq. Sales\tUsed Eq. Sales\tParts Sales\tService Revenues\tTotal\nBalance at December 31 2018\t34297\t42536\t10434\t8461\t8910\t1205\t105843\nIncreases (1)\t14918\t19775\t254\t500\t2045\t291\t37783\nDecreases (2)\t0\t0\t(10688)\t0\t0\t(1496)\t(12184)\nBalance at December 31 2019\t49215\t62311\t0\t8961\t10955\t0\t131442\nDecreases (3)\t(239)\t(317)\t0\t(8)\t(33)\t0\t(597)\nDecreases (4)\t0\t(61994)\t0\t0\t0\t0\t(61994)\nBalance at September 30 2020\t48976\t0\t0\t8953\t10922\t0\t68851\n", "q10k_tbl_9": "\t's in thousands\nCash\t1745\nAccounts receivable\t5119\nInventory\t731\nPrepaid expenses and other assets\t544\nRental equipment\t51747\nProperty and equipment\t3207\nOther assets\t21\nIntangible assets (1)\t8700\nTotal identifiable assets acquired\t71814\nAccounts payable\t(115)\nAccrued expenses payable and other liabilities\t(991)\nTotal liabilities assumed\t(1106)\nNet identifiable assets acquired\t70708\nGoodwill (2)\t37186\nNet assets acquired\t107894\n", "q10k_tbl_10": "Rental Component 1\t14679\nRental Component 2\t19458\nNew Equipment\t254\nUsed Equipment\t492\nParts\t2012\nService\t291\n\t37186\n", "q10k_tbl_11": "\t(amounts in thousands except per share data)\t\t\n\tThree Month Period Ended September 30 2018\t\t\n\tH&E(1)\tWe-Rent-It\tTotal\nTotal revenues\t322141\t9809\t331950\nPretax income\t28971\t2406\t31377\nPro forma adjustments to pretax income:\t\t\t\nImpact of fair value mark-ups/useful life changes on depreciation (2)\t0\t(1113)\t(1113)\nIntangible asset amortization (3)\t0\t(353)\t(353)\nInterest expense (4)\t0\t(1416)\t(1416)\nElimination of historic interest expense (5)\t0\t154\t154\nPro forma pretax income (loss)\t28971\t(322)\t28649\nIncome tax expense (benefit)\t7657\t(83)\t7574\nNet income (loss)\t21314\t(239)\t21075\nNet income (loss) per share - basic (6)\t0.60\t(0.01)\t0.59\nNet income (loss) per share - diluted (6)\t0.59\t(0.01)\t0.59\n", "q10k_tbl_12": "\t(amounts in thousands except per share data)\t\t\t\n\tNine Month Period Ended September 30 2018\t\t\t\n\tH&E(1)\tRental Inc.(7)\tWe-Rent-It\tTotal\nTotal revenues\t892987\t7408\t27036\t927431\nPretax income\t69908\t1020\t5622\t76550\nPro forma adjustments to pretax income:\t\t\t\t\nImpact of fair value mark-ups/useful life changes on depreciation (2)\t0\t(749)\t(3339)\t(4088)\nIntangible asset amortization (3)\t0\t(250)\t(788)\t(1038)\nInterest expense (4)\t0\t(480)\t(4248)\t(4728)\nElimination of historic interest expense (5)\t0\t82\t360\t442\nPro forma pretax income (loss)\t69908\t(377)\t(2393)\t67138\nIncome tax expense (benefit)\t18345\t(100)\t(620)\t17625\nNet income (loss)\t51563\t(277)\t(1773)\t49513\nNet income (loss) per share - basic (6)\t1.45\t(0.01)\t(0.05)\t1.39\nNet income (loss) per share - diluted (6)\t1.44\t(0.01)\t(0.05)\t1.38\n", "q10k_tbl_13": "\tSeptember 30 2020\t\n\tCarrying Amount\tFair Value\nManufacturer flooring plans payable with interest computed at 3.50% (Level 3)\t11646\t10504\nSenior unsecured notes due 2025 with interest computed at 5.625% (Level 2)\t946155\t990375\n", "q10k_tbl_14": "\tDecember 31 2019\t\n\tCarrying Amount\tFair Value\nManufacturer flooring plans payable with interest computed at 5.25% (Level 3)\t25201\t21615\nSenior unsecured notes due 2025 with interest computed at 5.625% (Level 2)\t945566\t995125\n", "q10k_tbl_15": "\tCommon Stock\t\tAdditional\t\t\tTotal\n\tShares Issued\tAmount\tPaid-in Capital\tTreasury Stock\tRetained Earnings\tStockholders' Equity\nBalances at December 31 2019\t39921838\t398\t235844\t(64783)\t136060\t307519\nStock-based compensation\t0\t0\t1652\t0\t0\t1652\nCash dividends declared on common stock ($0.275 per share)\t0\t0\t0\t0\t(9789)\t(9789)\nIssuance of common stock net of restricted stock forfeitures\t98451\t1\t0\t0\t0\t1\nRepurchase of 26392 shares of restricted common stock\t0\t0\t0\t(470)\t0\t(470)\nNet loss\t0\t0\t0\t0\t(36968)\t(36968)\nBalances at March 31 2020\t40020289\t399\t237496\t(65253)\t89303\t261945\nStock-based compensation\t0\t0\t1004\t0\t0\t1004\nCash dividends declared on common stock ($0.275 per share)\t0\t0\t0\t0\t(9896)\t(9896)\nRestricted stock forfeitures\t(6732)\t0\t0\t0\t0\t0\nNet income\t0\t0\t0\t0\t8815\t8815\nBalances at June 30 2020\t40013557\t399\t238500\t(65253)\t88222\t261868\nStock-based compensation\t0\t0\t639\t0\t0\t639\nCash dividends declared on common stock ($0.275 per share)\t0\t0\t0\t0\t(9947)\t(9947)\nIssuance of common stock net of restricted stock forfeitures\t232149\t2\t0\t0\t0\t2\nRepurchase of 48751 shares of restricted common stock\t0\t0\t0\t(906)\t0\t(906)\nNet income\t0\t0\t0\t0\t10103\t10103\nBalances at September 30 2020\t40245706\t401\t239139\t(66159)\t88378\t261759\nBalances at December 31 2018\t39748562\t396\t231174\t(63099)\t88332\t256803\nStock-based compensation\t0\t0\t1188\t0\t0\t1188\nCash dividends declared on common stock ($0.275 per share)\t0\t0\t0\t0\t(9793)\t(9793)\nIssuance of common stock net of restricted stock forfeitures\t59510\t1\t0\t0\t0\t1\nRepurchase of 14272 shares of restricted common stock\t0\t0\t0\t(387)\t0\t(387)\nCumulative effect adjustment pursuant to the adoption of ASC 842\t0\t0\t0\t0\t(56)\t(56)\nNet income\t0\t0\t0\t0\t14243\t14243\nBalances at March 31 2019\t39808072\t397\t232362\t(63486)\t92726\t261999\nStock-based compensation\t0\t0\t835\t0\t0\t835\nCash dividends declared on common stock ($0.275 per share)\t0\t0\t0\t0\t(9857)\t(9857)\nRestricted stock forfeitures\t(2666)\t0\t0\t0\t0\t0\nNet income\t0\t0\t0\t0\t22614\t22614\nBalances at June 30 2019\t39805406\t397\t233197\t(63486)\t105483\t275591\nStock-based compensation\t0\t0\t1037\t0\t0\t1037\nCash dividends declared on common stock ($0.275 per share)\t0\t0\t0\t0\t(9889)\t(9889)\nIssuance of common stock net of restricted stock forfeitures\t119152\t1\t0\t0\t0\t1\nRepurchase of 42922 shares of restricted common stock\t0\t0\t0\t(1253)\t0\t(1253)\nNet income\t0\t0\t0\t0\t28431\t28431\nBalances at September 30 2019\t39924558\t398\t234234\t(64739)\t124025\t293918\n", "q10k_tbl_16": "\tNumber of Shares\tWeighted Average Grant Date Fair Value\nNon-vested stock at December 31 2019\t377740\t29.26\nGranted\t364981\t18.21\nVested\t(200655)\t25.74\nForfeited\t(11212)\t29.86\nNon-vested stock at September 30 2020\t530854\t22.98\n", "q10k_tbl_17": "\tFor the Three Months Ended September 30\t\tFor the Nine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nCompensation expense\t639\t1037\t3295\t3060\n", "q10k_tbl_18": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nBasic net income (loss) per share:\t\t\t\t\nNet income (loss)\t10103\t28431\t(18050)\t65288\nWeighted average number of common shares outstanding\t36110\t35893\t36035\t35835\nNet income (loss) per share of common stock - basic\t0.28\t0.79\t(0.50)\t1.82\nDiluted net income (loss) per share:\t\t\t\t\nNet income (loss)\t10103\t28431\t(18050)\t65288\nWeighted average number of common shares outstanding\t36110\t35893\t36035\t35835\nEffect of dilutive securities:\t\t\t\t\nEffect of dilutive non-vested restricted stock\t139\t153\t0\t177\nWeighted average number of common shares outstanding - diluted\t36249\t36046\t36035\t36012\nNet income (loss) per share of common stock - diluted\t0.28\t0.79\t(0.50)\t1.81\nCommon shares excluded from the denominator as anti-dilutive:\t\t\t\t\nNon-vested restricted stock\t190\t90\t189\t42\n", "q10k_tbl_19": "Balance at December 31 2018\t944780\nAccretion of discount through December 31 2019\t1539\nAmortization of note premium through December 31 2019\t(1062)\nAmortization of deferred financing costs through December 31 2019\t309\nBalance at December 31 2019\t945566\nAccretion of discount through September 30 2020\t1155\nAmortization of note premium through September 30 2020\t(797)\nAmortization of deferred financing costs through September 30 2020\t231\nBalance at September 30 2020\t946155\n", "q10k_tbl_20": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nSegment Revenues:\t\t\t\t\nEquipment rentals\t165849\t204132\t496162\t572563\nNew equipment sales\t37248\t65010\t112068\t177709\nUsed equipment sales\t40000\t31180\t105231\t96942\nParts sales\t27853\t31499\t83842\t93798\nServices revenues\t15637\t18105\t48116\t50398\nTotal segmented revenues\t286587\t349926\t845419\t991410\nNon-segmented revenues\t2673\t3071\t8099\t8822\nTotal revenues\t289260\t352997\t853518\t1000232\nSegment Gross Profit:\t\t\t\t\nEquipment rentals\t65322\t94558\t196629\t258498\nNew equipment sales\t4124\t7535\t12259\t21071\nUsed equipment sales\t12128\t9771\t33639\t33200\nParts sales\t6928\t8328\t21662\t25048\nServices revenues\t10439\t12207\t32205\t34137\nTotal segmented gross profit\t98941\t132399\t296394\t371954\nNon-segmented gross profit (loss)\t126\t(271)\t226\t(1345)\nTotal gross profit\t99067\t132128\t296620\t370609\n", "q10k_tbl_21": "\tBalances at\t\n\tSeptember 30\tDecember 31\n\t2020\t2019\nSegment identified assets:\t\t\nEquipment sales\t56462\t67542\nEquipment rentals\t1078403\t1217673\nParts and services\t16409\t17936\nTotal segment identified assets\t1151274\t1303151\nNon-segment identified assets\t580221\t671459\nTotal assets\t1731495\t1974610\n", "q10k_tbl_22": "\tAs of September 30 2020\t\t\t\n\tH&E Equipment Services\tGuarantor Subsidiaries\tElimination\tConsolidated\n\t(Amounts in thousands)\t\t\t\nAssets:\t\t\t\t\nCash\t11997\t0\t0\t11997\nReceivables net\t146152\t21443\t0\t167595\nInventories net\t69883\t2988\t0\t72871\nPrepaid expenses and other assets\t11424\t173\t0\t11597\nRental equipment net\t943612\t134791\t0\t1078403\nProperty and equipment net\t104671\t17502\t0\t122173\nOperating lease right-of-use assets net\t144687\t20792\t0\t165479\nFinance lease right-of-use assets net\t0\t244\t0\t244\nDeferred financing costs net\t2332\t0\t0\t2332\nInvestment in guarantor subsidiaries\t188438\t0\t(188438)\t0\nIntangible assets net\t29953\t0\t0\t29953\nGoodwill\t57185\t11666\t0\t68851\nTotal assets\t1710334\t209599\t(188438)\t1731495\nLiabilities and Stockholders' Equity:\t\t\t\t\nAmounts due on senior secured credit facility\t17986\t0\t0\t17986\nAccounts payable\t66458\t3347\t0\t69805\nManufacturer flooring plans payable\t11646\t0\t0\t11646\nAccrued expenses payable and other liabilities\t77710\t(3946)\t0\t73764\nDividends payable\t200\t(65)\t0\t135\nSenior unsecured notes net\t946155\t0\t0\t946155\nOperating lease right-of-use liabilities\t147495\t21457\t0\t168952\nFinance lease right-of-use liabilities\t0\t368\t0\t368\nDeferred income taxes\t178752\t0\t0\t178752\nDeferred compensation payable\t2173\t0\t0\t2173\nTotal liabilities\t1448575\t21161\t0\t1469736\nStockholders' equity\t261759\t188438\t(188438)\t261759\nTotal liabilities and stockholders' equity\t1710334\t209599\t(188438)\t1731495\n", "q10k_tbl_23": "\tAs of December 31 2019\t\t\t\n\tH&E Equipment Services\tGuarantor Subsidiaries\tElimination\tConsolidated\n\t(Amounts in thousands)\t\t\t\nAssets:\t\t\t\t\nCash\t14247\t0\t0\t14247\nReceivables net\t164260\t27944\t0\t192204\nInventories net\t81945\t3533\t0\t85478\nPrepaid expenses and other assets\t10129\t133\t0\t10262\nRental equipment net\t1062154\t155519\t0\t1217673\nProperty and equipment net\t111429\t19135\t0\t130564\nOperating lease right-of-use assets net\t137625\t18945\t0\t156570\nFinance lease right-of-use assets net\t0\t365\t0\t365\nDeferred financing costs net\t2857\t0\t0\t2857\nInvestment in guarantor subsidiaries\t235749\t0\t(235749)\t0\nIntangible assets net\t32948\t0\t0\t32948\nGoodwill\t101916\t29526\t0\t131442\nTotal assets\t1955259\t255100\t(235749)\t1974610\nLiabilities and Stockholders' Equity:\t\t\t\t\nAmounts due under senior secured credit facility\t216879\t0\t0\t216879\nAccounts payable\t56225\t2628\t0\t58853\nManufacturer flooring plans payable\t25201\t0\t0\t25201\nAccrued expenses payable and other liabilities\t81646\t(3264)\t0\t78382\nDividends payable\t231\t(60)\t0\t171\nSenior unsecured notes net\t945566\t0\t0\t945566\nOperating lease right-of-use liabilities net\t139768\t19497\t0\t159265\nFinance lease right-of-use liabilities net\t0\t550\t0\t550\nDeferred income taxes\t180126\t0\t0\t180126\nDeferred compensation payable\t2098\t0\t0\t2098\nTotal liabilities\t1647740\t19351\t0\t1667091\nStockholders' equity\t307519\t235749\t(235749)\t307519\nTotal liabilities and stockholders' equity\t1955259\t255100\t(235749)\t1974610\n", "q10k_tbl_24": "\tThree Months Ended September 30 2020\t\t\t\n\tH&E Equipment Services\tGuarantor Subsidiaries\tElimination\tConsolidated\n\t(Amounts in thousands)\t\t\t\nRevenues:\t\t\t\t\nEquipment rentals\t142046\t23803\t0\t165849\nNew equipment sales\t36315\t933\t0\t37248\nUsed equipment sales\t35465\t4535\t0\t40000\nParts sales\t25336\t2517\t0\t27853\nServices revenues\t14186\t1451\t0\t15637\nOther\t2356\t317\t0\t2673\nTotal revenues\t255704\t33556\t0\t289260\nCost of revenues:\t\t\t\t\nRental depreciation\t50333\t7750\t0\t58083\nRental expense\t22229\t3399\t0\t25628\nRental other\t14141\t2675\t0\t16816\n\t86703\t13824\t0\t100527\nNew equipment sales\t32362\t762\t0\t33124\nUsed equipment sales\t24952\t2920\t0\t27872\nParts sales\t19164\t1761\t0\t20925\nServices revenues\t4752\t446\t0\t5198\nOther\t2331\t216\t0\t2547\nTotal cost of revenues\t170264\t19929\t0\t190193\nGross profit:\t\t\t\t\nEquipment rentals\t55343\t9979\t0\t65322\nNew equipment sales\t3953\t171\t0\t4124\nUsed equipment sales\t10513\t1615\t0\t12128\nParts sales\t6172\t756\t0\t6928\nServices revenues\t9434\t1005\t0\t10439\nOther\t25\t101\t0\t126\nGross profit\t85440\t13627\t0\t99067\nSelling general and administrative expenses\t61059\t8981\t0\t70040\nMerger costs\t150\t0\t0\t150\nEquity in earnings of guarantor subsidiaries\t2226\t0\t(2226)\t0\nGain on sales of property and equipment net\t1852\t250\t0\t2102\nIncome from operations\t28309\t4896\t(2226)\t30979\nOther income (expense):\t\t\t\t\nInterest expense\t(12174)\t(2713)\t0\t(14887)\nOther net\t947\t43\t0\t990\nTotal other expense net\t(11227)\t(2670)\t0\t(13897)\nIncome before income taxes\t17082\t2226\t(2226)\t17082\nIncome tax expense\t6979\t0\t0\t6979\nNet income\t10103\t2226\t(2226)\t10103\n", "q10k_tbl_25": "\tThree Months Ended September 30 2019\t\t\t\n\tH&E Equipment Services\tGuarantor Subsidiaries\tElimination\tConsolidated\n\t(Amounts in thousands)\t\t\t\nRevenues:\t\t\t\t\nEquipment rentals\t176338\t27794\t0\t204132\nNew equipment sales\t60584\t4426\t0\t65010\nUsed equipment sales\t25850\t5330\t0\t31180\nParts sales\t27284\t4215\t0\t31499\nServices revenues\t15614\t2491\t0\t18105\nOther\t2590\t481\t0\t3071\nTotal revenues\t308260\t44737\t0\t352997\nCost of revenues:\t\t\t\t\nRental depreciation\t54757\t8308\t0\t63065\nRental expense\t23947\t3942\t0\t27889\nRental other\t15505\t3115\t0\t18620\n\t94209\t15365\t0\t109574\nNew equipment sales\t53542\t3933\t0\t57475\nUsed equipment sales\t17958\t3451\t0\t21409\nParts sales\t20150\t3021\t0\t23171\nServices revenues\t5131\t767\t0\t5898\nOther\t2977\t365\t0\t3342\nTotal cost of revenues\t193967\t26902\t0\t220869\nGross profit (loss):\t\t\t\t\nEquipment rentals\t82129\t12429\t0\t94558\nNew equipment sales\t7042\t493\t0\t7535\nUsed equipment sales\t7892\t1879\t0\t9771\nParts sales\t7134\t1194\t0\t8328\nServices revenues\t10483\t1724\t0\t12207\nOther\t(387)\t116\t0\t(271)\nGross profit\t114293\t17835\t0\t132128\nSelling general and administrative expenses\t67372\t9924\t0\t77296\nMerger costs\t47\t0\t0\t47\nEquity in earnings of guarantor subsidiaries\t4701\t0\t(4701)\t0\nGain on sales of property and equipment net\t686\t32\t0\t718\nIncome from operations\t52261\t7943\t(4701)\t55503\nOther income (expense):\t\t\t\t\nInterest expense\t(14013)\t(3318)\t0\t(17331)\nOther net\t512\t76\t0\t588\nTotal other expense net\t(13501)\t(3242)\t0\t(16743)\nIncome before income taxes\t38760\t4701\t(4701)\t38760\nIncome tax expense\t10329\t0\t0\t10329\nNet income\t28431\t4701\t(4701)\t28431\n", "q10k_tbl_26": "\tNine Months Ended September 30 2020\t\t\t\n\tH&E Equipment Services\tGuarantor Subsidiaries\tElimination\tConsolidated\n\t(Amounts in thousands)\t\t\t\nRevenues:\t\t\t\t\nEquipment rentals\t429040\t67122\t0\t496162\nNew equipment sales\t107813\t4255\t0\t112068\nUsed equipment sales\t91918\t13313\t0\t105231\nParts sales\t74847\t8995\t0\t83842\nServices revenues\t42429\t5687\t0\t48116\nOther\t6944\t1155\t0\t8099\nTotal revenues\t752991\t100527\t0\t853518\nCost of revenues:\t\t\t\t\nRental depreciation\t153870\t23355\t0\t177225\nRental expense\t64733\t9728\t0\t74461\nRental other\t40376\t7471\t0\t47847\n\t258979\t40554\t0\t299533\nNew equipment sales\t96184\t3625\t0\t99809\nUsed equipment sales\t63241\t8351\t0\t71592\nParts sales\t55836\t6344\t0\t62180\nServices revenues\t14119\t1792\t0\t15911\nOther\t7011\t862\t0\t7873\nTotal cost of revenues\t495370\t61528\t0\t556898\nGross profit (loss):\t\t\t\t\nEquipment rentals\t170061\t26568\t0\t196629\nNew equipment sales\t11629\t630\t0\t12259\nUsed equipment sales\t28677\t4962\t0\t33639\nParts sales\t19011\t2651\t0\t21662\nServices revenues\t28310\t3895\t0\t32205\nOther\t(67)\t293\t0\t226\nGross profit\t257621\t38999\t0\t296620\nSelling general and administrative expenses\t189811\t27714\t0\t217525\nImpairment of goodwill\t61994\t0\t0\t61994\nMerger costs\t308\t0\t0\t308\nEquity in earnings of guarantor subsidiaries\t3904\t0\t(3904)\t0\nGain on sales of property and equipment net\t8122\t1138\t0\t9260\nIncome from operations\t17534\t12423\t(3904)\t26053\nOther income (expense):\t\t\t\t\nInterest expense\t(37821)\t(8668)\t0\t(46489)\nOther net\t2113\t149\t0\t2262\nTotal other expense net\t(35708)\t(8519)\t0\t(44227)\nIncome (loss) before income taxes\t(18174)\t3904\t(3904)\t(18174)\nIncome tax benefit\t(124)\t0\t0\t(124)\nNet income (loss)\t(18050)\t3904\t(3904)\t(18050)\n", "q10k_tbl_27": "\tNine Months Ended September 30 2019\t\t\t\n\tH&E Equipment Services\tGuarantor Subsidiaries\tElimination\tConsolidated\n\t(Amounts in thousands)\t\t\t\nRevenues:\t\t\t\t\nEquipment rentals\t495246\t77317\t0\t572563\nNew equipment sales\t160200\t17509\t0\t177709\nUsed equipment sales\t81430\t15512\t0\t96942\nParts sales\t81326\t12472\t0\t93798\nServices revenues\t42922\t7476\t0\t50398\nOther\t7422\t1400\t0\t8822\nTotal revenues\t868546\t131686\t0\t1000232\nCost of revenues:\t\t\t\t\nRental depreciation\t157380\t24267\t0\t181647\nRental expense\t68242\t11434\t0\t79676\nRental other\t44500\t8242\t0\t52742\n\t270122\t43943\t0\t314065\nNew equipment sales\t141181\t15457\t0\t156638\nUsed equipment sales\t53791\t9951\t0\t63742\nParts sales\t59962\t8788\t0\t68750\nServices revenues\t13971\t2290\t0\t16261\nOther\t8963\t1204\t0\t10167\nTotal cost of revenues\t547990\t81633\t0\t629623\nGross profit (loss):\t\t\t\t\nEquipment rentals\t225124\t33374\t0\t258498\nNew equipment sales\t19019\t2052\t0\t21071\nUsed equipment sales\t27639\t5561\t0\t33200\nParts sales\t21364\t3684\t0\t25048\nServices revenues\t28951\t5186\t0\t34137\nOther\t(1541)\t196\t0\t(1345)\nGross profit\t320556\t50053\t0\t370609\nSelling general and administrative expenses\t203785\t29998\t0\t233783\nMerger costs\t314\t0\t0\t314\nEquity in earnings of guarantor subsidiaries\t10656\t0\t(10656)\t0\nGain on sales of property and equipment net\t1948\t391\t0\t2339\nIncome from operations\t129061\t20446\t(10656)\t138851\nOther income (expense):\t\t\t\t\nInterest expense\t(41461)\t(9992)\t0\t(51453)\nOther net\t1407\t202\t0\t1609\nTotal other expense net\t(40054)\t(9790)\t0\t(49844)\nIncome before income taxes\t89007\t10656\t(10656)\t89007\nIncome tax expense\t23719\t0\t0\t23719\nNet income\t65288\t10656\t(10656)\t65288\n", "q10k_tbl_28": "\tNine Months Ended September 30 2020\t\t\t\n\tH&E Equipment Services\tGuarantor Subsidiaries\tElimination\tConsolidated\n\t(Amounts in thousands)\t\t\t\nCash flows from operating activities:\t\t\t\t\nNet income (loss)\t(18050)\t3904\t(3904)\t(18050)\nAdjustments to reconcile net income (loss) to net cash provided by operating activities:\t\t\t\t\nDepreciation and amortization on property and equipment\t18672\t3616\t0\t22288\nDepreciation of rental equipment\t153870\t23355\t0\t177225\nAmortization of finance lease right-of-use assets\t0\t121\t0\t121\nAmortization of intangible assets\t2996\t0\t0\t2996\nAmortization of deferred financing costs\t755\t0\t0\t755\nAccretion of note discount net of premium amortization\t358\t0\t0\t358\nNon-cash operating lease expense\t8495\t2124\t0\t10619\nImpairment of goodwill\t61994\t0\t0\t61994\nProvision for losses on accounts receivable\t3143\t197\t0\t3340\nProvision for inventory obsolescence\t95\t0\t0\t95\nChange in deferred income taxes\t(1374)\t0\t0\t(1374)\nStock-based compensation expense\t3295\t0\t0\t3295\nGain from sales of property and equipment net\t(8122)\t(1138)\t0\t(9260)\nGain from sales of rental equipment net\t(28175)\t(4927)\t0\t(33102)\nEquity in earnings of guarantor subsidiaries\t(3904)\t0\t3904\t0\nChanges in operating assets and liabilities:\t\t\t\t\nReceivables\t14965\t6304\t0\t21269\nInventories\t(7115)\t(597)\t0\t(7712)\nPrepaid expenses and other assets\t(1315)\t(40)\t0\t(1355)\nAccounts payable\t10830\t719\t0\t11549\nManufacturer flooring plans payable\t(13555)\t0\t0\t(13555)\nAccrued expenses payable and other liabilities\t(11785)\t(2693)\t0\t(14478)\nDeferred compensation payable\t75\t0\t0\t75\nNet cash provided by operating activities\t186148\t30945\t0\t217093\nCash flows from investing activities:\t\t\t\t\nPurchases of property and equipment\t(14771)\t(2512)\t0\t(17283)\nPurchases of rental equipment\t(71756)\t(9670)\t0\t(81426)\nProceeds from sales of property and equipment\t11021\t1667\t0\t12688\nProceeds from sales of rental equipment\t83685\t13112\t0\t96797\nInvestment in subsidiaries\t33355\t0\t(33355)\t0\nNet cash provided by investing activities\t41534\t2597\t(33355)\t10776\nCash flows from financing activities:\t\t\t\t\nBorrowings on senior secured credit facility\t729810\t0\t0\t729810\nPayments on senior secured credit facility\t(928703)\t0\t0\t(928703)\nDividends paid\t(29663)\t(5)\t0\t(29668)\nPurchases of treasury stock\t(1376)\t0\t0\t(1376)\nPayments on finance lease obligations\t0\t(182)\t0\t(182)\nCapital contributions\t0\t(33355)\t33355\t0\nNet cash used in financing activities\t(229932)\t(33542)\t33355\t(230119)\nNet decrease in cash\t(2250)\t0\t0\t(2250)\nCash beginning of period\t14247\t0\t0\t14247\nCash end of period\t11997\t0\t0\t11997\n", "q10k_tbl_29": "\tNine Months Ended September 30 2019\t\t\t\n\tH&E Equipment Services\tGuarantor Subsidiaries\tElimination\tConsolidated\n\t(Amounts in thousands)\t\t\t\nCash flows from operating activities:\t\t\t\t\nNet income\t65288\t10656\t(10656)\t65288\nAdjustments to reconcile net income to net cash provided by operating activities:\t\t\t.\t\nDepreciation and amortization of property and equipment\t18367\t2474\t0\t20841\nDepreciation of rental equipment\t157380\t24267\t0\t181647\nAmortization of finance lease right-of-use assets\t0\t122\t0\t122\nAmortization of intangible assets\t3091\t0\t0\t3091\nAmortization of deferred financing costs\t757\t0\t0\t757\nAccretion of note discount net of premium amortization\t357\t0\t0\t357\nNon-cash operating lease expense\t6417\t1604\t0\t8021\nProvision for losses on accounts receivable\t3869\t190\t0\t4059\nProvision for inventory obsolescence\t152\t0\t0\t152\nChange in deferred income taxes\t22127\t0\t0\t22127\nStock-based compensation expense\t3060\t0\t0\t3060\nGain from sales of property and equipment net\t(1948)\t(391)\t0\t(2339)\nGain from sales of rental equipment net\t(27234)\t(5546)\t0\t(32780)\nEquity in earnings of guarantor subsidiaries\t(10656)\t0\t10656\t0\nChanges in operating assets and liabilities net of acquisitions:\t\t\t\t\nReceivables\t(9639)\t7594\t0\t(2045)\nInventories\t(40006)\t375\t0\t(39631)\nPrepaid expenses and other assets\t(3052)\t(46)\t0\t(3098)\nAccounts payable\t(15472)\t(1399)\t0\t(16871)\nManufacturer flooring plans payable\t2760\t(501)\t0\t2259\nAccrued expenses payable and other liabilities\t(7914)\t422\t0\t(7492)\nDeferred compensation payable\t82\t0\t0\t82\nNet cash provided by operating activities\t167786\t39821\t0\t207607\nCash flows from investing activities:\t\t\t\t\nAcquisition of businesses net of cash acquired\t(106746)\t0\t0\t(106746)\nPurchases of property and equipment\t(27236)\t(4215)\t0\t(31451)\nPurchases of rental equipment\t(237436)\t(31714)\t0\t(269150)\nProceeds from sales of property and equipment\t2651\t434\t0\t3085\nProceeds from sales of rental equipment\t73966\t15139\t0\t89105\nInvestment in subsidiaries\t19344\t0\t(19344)\t0\nNet cash used in investing activities\t(275457)\t(20356)\t(19344)\t(315157)\nCash flows from financing activities:\t\t\t\t\nBorrowings on senior secured credit facility\t1174120\t0\t0\t1174120\nPayments on senior secured credit facility\t(1040750)\t0\t0\t(1040750)\nDividends paid\t(29525)\t(5)\t0\t(29530)\nPurchases of treasury stock\t(1640)\t0\t0\t(1640)\nPayments of deferred financing costs\t(559)\t0\t0\t(559)\nPayments of finance lease obligations\t(56)\t(116)\t0\t(172)\nCapital contributions\t0\t(19344)\t19344\t0\nNet cash provided by (used in) financing activities\t101590\t(19465)\t19344\t101469\nNet decrease in cash\t(6081)\t0\t0\t(6081)\nCash beginning of period\t16677\t0\t0\t16677\nCash end of period\t10596\t0\t0\t10596\n", "q10k_tbl_30": "\tUnits\t% of Total Units\tOriginal Acquisition Cost\t% of Original Acquisition Cost\tAverage Age in Months\nHi-Lift or Aerial Work Platforms\t21654\t53.1%\t693.8\t38.1%\t47.3\nCranes\t195\t0.5%\t76.3\t4.2%\t54.8\nEarthmoving\t4605\t11.3%\t415.4\t22.8%\t25.4\nMaterial Handling(1)\t6657\t16.3%\t512.1\t28.1%\t41.1\nOther\t7664\t18.8%\t122.6\t6.8%\t26.7\nTotal\t40775\t100.0%\t1820.2\t100.0%\t40.0\n", "q10k_tbl_31": "\tThree Months Ended\t\tTotal\tTotal\n\tSeptember 30\t\tDollar\tPercentage\n\t2020\t2019\tIncrease (Decrease)\tIncrease (Decrease)\n\t(in thousands except percentages)\t\t\t\nSegment Revenues:\t\t\t\t\nEquipment rentals\t\t\t\t\nRentals\t149423\t184797\t(35374)\t(19.1)%\nRentals other\t16426\t19335\t(2909)\t(15.0)%\nTotal equipment rentals\t165849\t204132\t(38283)\t(18.8)%\nNew equipment sales\t37248\t65010\t(27762)\t(42.7)%\nUsed equipment sales\t40000\t31180\t8820\t28.3%\nParts sales\t27853\t31499\t(3646)\t(11.6)%\nServices revenues\t15637\t18105\t(2468)\t(13.6)%\nNon-Segmented revenues\t2673\t3071\t(398)\t(13.0)%\nTotal revenues\t289260\t352997\t(63737)\t(18.1)%\n", "q10k_tbl_32": "\tThree Months Ended\t\tTotal\tTotal\n\tSeptember 30\t\tDollar\tPercentage\n\t2020\t2019\tIncrease (Decrease)\tIncrease (Decrease)\n\t(in thousands except percentages)\t\t\t\nSegment Gross Profit:\t\t\t\t\nEquipment rentals\t\t\t\t\nRentals\t65712\t93843\t(28131)\t(30.0)%\nRentals other\t(390)\t715\t(1105)\t(154.5)%\nTotal equipment rentals\t65322\t94558\t(29236)\t(30.9)%\nNew equipment sales\t4124\t7535\t(3411)\t(45.3)%\nUsed equipment sales\t12128\t9771\t2357\t24.1%\nParts sales\t6928\t8328\t(1400)\t(16.8)%\nServices revenues\t10439\t12207\t(1768)\t(14.5)%\nNon-Segmented revenues gross profit (loss)\t126\t(271)\t397\t146.5%\nTotal gross profit\t99067\t132128\t(33061)\t(25.0)%\n", "q10k_tbl_33": "\tNine Months Ended\t\tTotal\tTotal\n\tSeptember 30\t\tDollar\tPercentage\n\t2020\t2019\tIncrease (Decrease)\tIncrease (Decrease)\n\t(in thousands except percentages)\t\t\t\nSegment Revenues:\t\t\t\t\nEquipment rentals\t\t\t\t\nRentals\t448817\t518294\t(69477)\t(13.4)%\nRentals other\t47345\t54269\t(6924)\t(12.8)%\nTotal equipment rentals\t496162\t572563\t(76401)\t(13.3)%\nNew equipment sales\t112068\t177709\t(65641)\t(36.9)%\nUsed equipment sales\t105231\t96942\t8289\t8.6%\nParts sales\t83842\t93798\t(9956)\t(10.6)%\nServices revenues\t48116\t50398\t(2282)\t(4.5)%\nNon-Segmented revenues\t8099\t8822\t(723)\t(8.2)%\nTotal revenues\t853518\t1000232\t(146714)\t(14.7)%\n", "q10k_tbl_34": "\tNine Months Ended\t\tTotal\tTotal\n\tSeptember 30\t\tDollar\tPercentage\n\t2020\t2019\tIncrease (Decrease)\tIncrease (Decrease)\n\t(in thousands except percentages)\t\t\t\nSegment Gross Profit:\t\t\t\t\nEquipment rentals\t\t\t\t\nRentals\t197131\t256971\t(59840)\t(23.3)%\nRentals other\t(502)\t1527\t(2029)\t(132.9)%\nTotal equipment rentals\t196629\t258498\t(61869)\t(23.9)%\nNew equipment sales\t12259\t21071\t(8812)\t(41.8)%\nUsed equipment sales\t33639\t33200\t439\t1.3%\nParts sales\t21662\t25048\t(3386)\t(13.5)%\nServices revenues\t32205\t34137\t(1932)\t(5.7)%\nNon-Segmented revenues gross profit (loss)\t226\t(1345)\t1571\t116.8%\nTotal gross profit\t296620\t370609\t(73989)\t(20.0)%\n", "q10k_tbl_35": "31.1\tCertification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).\n31.2\tCertification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).\n32.1\tCertification pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).\n101.INS\tInline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.\n101.SCH\tInline XBRL Taxonomy Extension Schema Document.\n101.CAL\tInline XBRL Taxonomy Extension Calculation Linkbase Document.\n101.DEF\tInline XBRL Taxonomy Extension Definition Linkbase Document.\n101.LAB\tInline XBRL Taxonomy Extension Label Linkbase Document.\n101.PRE\tInline XBRL Taxonomy Extension Presentation Linkbase Document.\n104\tCover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).\n"}{"bs": "q10k_tbl_2", "is": "q10k_tbl_24", "cf": "q10k_tbl_28"}None
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 000-51759
H&E Equipment Services, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
81-0553291
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
7500 Pecue Lane,
70809
Baton Rouge, Louisiana
(ZIP Code)
(Address of Principal Executive Offices)
Registrant’s Telephone Number, Including Area Code: (225) 298-5200
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol(s)
Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share
HEES
Nasdaq Global Market
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☑No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☑No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non‑accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
☑
Accelerated Filer
☐
Non-Accelerated Filer
☐
Smaller Reporting Company
☐
Emerging Growth Company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐No ☑
As of October 21, 2020, there were 36,094,654 shares of H&E Equipment Services, Inc. common stock, $0.01 par value, outstanding.
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words “may”, “could”, “would”, “should”, “believe”, “expect”, “anticipate”, “plan”, “estimate”, “target”, “project”, “intend”, “foresee” and similar expressions. These statements include, among others, statements regarding our expected business outlook, anticipated financial and operating results, our business strategy and means to implement the strategy, our objectives, the amount and timing of capital expenditures, the likelihood of our success in expanding our business, financing plans, budgets, working capital needs and sources of liquidity. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future.
Forward-looking statements are only predictions and are not guarantees of performance. These statements are based on our management’s beliefs and assumptions, which in turn are based on currently available information. Important assumptions relating to the forward-looking statements include, among others, assumptions regarding demand for our products, the expansion of product offerings geographically or through new marketing applications, the timing and cost of planned capital expenditures, competitive conditions and general economic conditions. These assumptions could prove inaccurate. Forward-looking statements also involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. In addition, even if our actual results are consistent with the forward-looking statements contained in this Quarterly Report on Form 10-Q, those results may not be indicative of results or developments in subsequent periods. Many of these factors are beyond our ability to control or predict. Such factors include, but are not limited to, the following:
•
risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays and cancellations of construction or infrastructure projects, supply chain disruptions and other impacts to the business;
•
general economic conditions and construction and industrial activity in the markets where we operate in North America;
•
our ability to forecast trends in our business accurately, and the impact of economic downturns and economic uncertainty on the markets we serve (including as a result of current uncertainty due to COVID-19);
•
the impact of conditions in the global credit and commodity markets (including as a result of current volatility and uncertainty in credit and commodity markets due to COVID-19) and their effect on construction spending and the economy in general;
•
trends in oil and natural gas could adversely affect the demand for our services and products;
•
relationships with equipment suppliers;
•
increased maintenance and repair costs as we age our fleet and decreases in our equipment’s residual value;
•
our indebtedness;
•
risks associated with the expansion of our business and any potential acquisitions we may make, including any related capital expenditures, or our ability to consummate such acquisitions;
•
our possible inability to integrate any businesses we acquire;
•
competitive pressures;
•
security breaches and other disruptions in our information technology systems;
•
adverse weather events or natural disasters;
•
compliance with laws and regulations, including those relating to environmental matters, corporate governance matters and tax matters, as well as any future changes to such laws and regulations; and
•
other factors discussed under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019 and in Item 1A — “Risk Factors” in this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020.
Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission (“SEC”), we are under no obligation to publicly update or revise any forward-looking statements after we file this Quarterly Report on Form 10-Q, whether as a result of any new information, future events or otherwise. Investors, potential investors and other readers are urged to consider the above mentioned factors carefully in evaluating the forward‑looking statements and are cautioned not to place undue reliance on such forward‑looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results or performance.
3
For a more detailed discussion of some of the foregoing risks and uncertainties, see Item 1A — “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019 and Item 1A — “Risk Factors” in this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020, as well as other reports and registration statements filed by us with the SEC. These factors should not be construed as exhaustive and should be read with other cautionary statements in this Quarterly Report on Form 10-Q and our other public filings. All of our annual, quarterly and current reports, and any amendments thereto, filed with or furnished to the SEC are available on our Internet website under the Investor Relations link. For more information about us and the announcements we make from time to time, visit our Internet website at www.he-equipment.com.
4
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements.
H&E EQUIPMENT SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share amounts)
Balances at
September 30,
2020
December 31,
2019
(Unaudited)
ASSETS
Cash
$
11,997
$
14,247
Receivables, net of allowance for doubtful accounts of $4,963 and $5,236, respectively
167,595
192,204
Inventories, net of reserves for obsolescence of $318 and $331, respectively
72,871
85,478
Prepaid expenses and other assets
11,597
10,262
Rental equipment, net of accumulated depreciation of $705,944 and $676,376, respectively
1,078,403
1,217,673
Property and equipment, net of accumulated depreciation and amortization of $160,637 and $156,782, respectively
122,173
130,564
Operating lease right-of-use assets, net of accumulated amortization of $20,497 and $11,197, respectively
165,479
156,570
Finance lease right-of-use assets, net of accumulated amortization of $2,173 and $2,051, respectively
244
365
Deferred financing costs, net of accumulated amortization of $14,944 and $14,419, respectively
2,332
2,857
Intangible assets, net of accumulated amortization of $9,747 and $6,952, respectively
29,953
32,948
Goodwill
68,851
131,442
Total assets
$
1,731,495
$
1,974,610
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Amounts due on senior secured credit facility
$
17,986
$
216,879
Accounts payable
69,805
58,853
Manufacturer flooring plans payable
11,646
25,201
Accrued expenses payable and other liabilities
73,764
78,382
Dividends payable
135
171
Senior unsecured notes, net of unaccreted discount of $2,334 and $2,691 and deferred financing costs of $1,511 and $1,743, respectively
946,155
945,566
Operating lease right-of-use liabilities
168,952
159,265
Finance lease right-of-use liabilities
368
550
Deferred income taxes
178,752
180,126
Deferred compensation payable
2,173
2,098
Total liabilities
1,469,736
1,667,091
Commitments and Contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, 25,000,000 shares authorized; no shares issued
—
—
Common stock, $0.01 par value, 175,000,000 shares authorized; 40,245,706 and 39,921,838 shares issued at September 30, 2020 and December 31, 2019, respectively, and 36,096,814 and 35,848,089 shares outstanding at September 30, 2020 and December 31, 2019, respectively
401
398
Additional paid-in capital
239,139
235,844
Treasury stock at cost, 4,148,892 and 4,073,749 shares of common stock held at September 30, 2020 and December 31, 2019, respectively
(66,159
)
(64,783
)
Retained earnings
88,378
136,060
Total stockholders’ equity
261,759
307,519
Total liabilities and stockholders’ equity
$
1,731,495
$
1,974,610
The accompanying notes are an integral part of these condensed consolidated financial statements.
5
H&E EQUIPMENT SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands, except per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020
2019
2020
2019
Revenues:
Equipment rentals
$
165,849
$
204,132
$
496,162
$
572,563
New equipment sales
37,248
65,010
112,068
177,709
Used equipment sales
40,000
31,180
105,231
96,942
Parts sales
27,853
31,499
83,842
93,798
Services revenues
15,637
18,105
48,116
50,398
Other
2,673
3,071
8,099
8,822
Total revenues
289,260
352,997
853,518
1,000,232
Cost of revenues:
Rental depreciation
58,083
63,065
177,225
181,647
Rental expense
25,628
27,889
74,461
79,676
Rental other
16,816
18,620
47,847
52,742
100,527
109,574
299,533
314,065
New equipment sales
33,124
57,475
99,809
156,638
Used equipment sales
27,872
21,409
71,592
63,742
Parts sales
20,925
23,171
62,180
68,750
Services revenues
5,198
5,898
15,911
16,261
Other
2,547
3,342
7,873
10,167
Total cost of revenues
190,193
220,869
556,898
629,623
Gross profit
99,067
132,128
296,620
370,609
Selling, general and administrative expenses
70,040
77,296
217,525
233,783
Impairment of goodwill
—
—
61,994
—
Merger costs
150
47
308
314
Gain on sales of property and equipment, net
2,102
718
9,260
2,339
Income from operations
30,979
55,503
26,053
138,851
Other income (expense):
Interest expense
(14,887
)
(17,331
)
(46,489
)
(51,453
)
Other, net
990
588
2,262
1,609
Total other expense, net
(13,897
)
(16,743
)
(44,227
)
(49,844
)
Income (loss) before provision (benefit) for income taxes
17,082
38,760
(18,174
)
89,007
Provision (benefit) for income taxes
6,979
10,329
(124
)
23,719
Net income (loss)
$
10,103
$
28,431
$
(18,050
)
$
65,288
Net income (loss) per common share:
Basic
$
0.28
$
0.79
$
(0.50
)
$
1.82
Diluted
$
0.28
$
0.79
$
(0.50
)
$
1.81
Weighted average common shares outstanding:
Basic
36,110
35,893
36,035
35,835
Diluted
36,249
36,046
36,035
36,012
Dividends declared per common share outstanding
$
0.275
$
0.275
$
0.825
$
0.825
The accompanying notes are an integral part of these condensed consolidated financial statements.