Deal Overview - United Rentals (URI) agreed to acquire H&E Equipment Services (HEES) for $4.8 billion, with the purchase price equating to $92 per share [2] - H&E Equipment Services shares more than doubled in value intraday Tuesday, reaching $90.51 [2] - Shares of United Rentals rose close to 4% following the announcement [2] Financial and Operational Impact - The combination expands United Rentals' fleet by nearly 64,000 units [1][3] - The deal is expected to generate roughly $130 million in annual cost synergies within two years of closing [1] - H&E generated adjusted EBITDA of $696 million on revenue of $1.52 billion in the 12 months ended Sept 30 [3] - The transaction includes $1.4 billion of net debt [3] Product and Service Expansion - The combined company's equipment rental offerings will include power and HVAC, portable storage, tool solutions, fluid solutions, and more [1] Timeline - The transaction is expected to close in the first quarter of 2025 [3]

Merger Announcement - United Rentals Inc proposes to acquire H&E Equipment Services Inc for $92 per share in cash [1] Law Firm Background - Monteverde & Associates PC is a national class action securities firm with offices in the Empire State Building [2] - The firm has a successful track record in trial and appellate courts including the US Supreme Court [2] - Monteverde & Associates has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm by ISS Securities Class Action Services Report [1] Investigation Details - Monteverde & Associates is investigating H&E Equipment Services Inc regarding the proposed merger with United Rentals Inc [1] - The firm is offering free consultation and information to shareholders of H&E Equipment Services Inc [3]

STAMFORD, Conn. and BATON ROUGE, La., Jan. 14, 2025 (GLOBE NEWSWIRE) -- United Rentals, Inc. (NYSE:URI) ("United Rentals" or "the company") and H&E Equipment Services, Inc. d/b/a H&E Rentals (NASDAQ:HEES) ("H&E") today announced their entry into a definitive agreement under which United Rentals will acquire H&E for $92 per share in cash, reflecting a total enterprise value of approximately $4.8 billion, including approximately $1.4 billion of net debt. Founded in 1961, H&E provides its customers with a comp ...

Company Overview - H&E Equipment Services, founded in 1961, provides a comprehensive mix of high-quality general rental fleet including aerial work platforms, earthmoving equipment, material handling equipment, and other general and specialty lines of equipment [1] - The company has approximately 2,900 employees and $2.9 billion of rental fleet at original cost, serving a diverse mix of customers across construction and industrial markets through its network of approximately 160 branches in over 30 U.S. states [1] - United Rentals, Inc. is the largest equipment rental company in the world with an integrated network of 1,571 rental locations in North America, 39 in Europe, 37 in Australia, and 19 in New Zealand [11] - United Rentals operates in 49 states and every Canadian province, serving construction and industrial customers, utilities, municipalities, homeowners, and others with approximately 27,550 employees and a rental fleet with a total original cost of $21.85 billion [11] Financial Performance - H&E generated $696 million of adjusted EBITDA on total revenues of $1,518 million for the trailing 12 months through September 30, 2024, translating to an adjusted EBITDA margin of approximately 45.8% [2] - The purchase price of approximately $4.8 billion represents a multiple of 6.9x adjusted EBITDA for the trailing 12 months ended September 30, 2024, or 5.8x adjusted EBITDA including $130 million of targeted cost synergies and the net present value of tax attributes estimated at approximately $54 million [8] Strategic Rationale - The merger agreement includes a 35-day "go-shop" period during which H&E will actively solicit, evaluate, and potentially enter into negotiations with parties that submit alternative proposals [4][5] - The transaction is projected to result in a pro forma net leverage ratio at closing of approximately 2.3x, well within the company's target range of 1.5-2.5x, with a goal of reaching net-debt to EBITDA of approximately 2.0x within 12 months after acquisition close [4] - The integration of H&E into United Rentals' operations presents opportunities to improve efficiency, productivity, and new business development with the adoption of United Rentals' operational excellence, including its technology offerings [4] - The combination will expand United Rentals' rental fleet by almost 64,000 units with an original cost of over $2.9 billion and an average age of under 41 months, as well as roughly $230 million of non-rental fleet [8] - The combination is expected to generate approximately $130 million of annualized cost synergies within 24 months of closing, primarily in the areas of corporate overhead and operations, with procurement savings of approximately 5% compared to historical H&E pricing [8] - United Rentals expects to realize approximately $120 million of annual revenue cross-sell synergies by year three, as legacy H&E customers take advantage of United Rentals' specialty rental offerings [8] Transaction Details - The boards of directors of United Rentals and H&E unanimously approved the transaction, which is subject to customary closing conditions, including a minimum tender of at least a majority of then-outstanding H&E common shares and the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 [14] - United Rentals intends to commence a tender offer by January 28, 2025, to acquire all of the outstanding shares of H&E common stock for $92 per share in cash, with the transaction expected to close in the first quarter of 2025 [14][17] Leadership Comments - Matthew Flannery, CEO of United Rentals, emphasized the acquisition's alignment with the company's strategy to grow the core business and drive shareholder value, highlighting the benefits of expanded capacity in key markets and the potential for revenue growth through cross-selling [9] - Bradley W. Barber, CEO of H&E, expressed confidence that the combination with United Rentals will take the business to new heights, while John M. Engquist, Executive Chairman of H&E, noted the win-win outcome for both organizations, customers, and shareholders [9]

Following my initial coverage on H&E Equipment Services (NASDAQ: HEES ) in July the stock is -6% and there have been several updates to the investment debate. But my views on this business have little changed.Equity strategist [Bernard Holdings]. Objective view on the directional bias of markets. Technical expertise bridges the complex relationships between value drivers, capital flows and price action. Partners are represented over the cross-section of financial markets, from speculators, hedgers, long-ter ...

BATON ROUGE, La., Nov. 15, 2024 (GLOBE NEWSWIRE) --  H&E Equipment Services, Inc. (NASDAQ: HEES) (“H&E”, the “Company”, d/b/a "H&E Rentals") announced that its Board of Directors declared a regular quarterly cash dividend on November 15, 2024, to be paid to its stockholders. The Company announced a quarterly cash dividend of $0.275 per share of common stock to be paid on December 13, 2024, for stockholders of record as of the close of business on November 29, 2024.  About H&E Rentals Founded in 1961, H&E i ...

THIRD QUARTER 2024 EARNINGS CONFERENCE October 29, 2024 米牙 RENTALS Earnings Conference Third Quarter 2024 Company Participants Brad Barber CHIEF EXECUTIVE OFFICER October 29, 2024 John Engquist PRESIDENT AND CHIEF OPERATING OFFICER Leslie Magee CHIEF FINANCIAL OFFICER AND SECRETARY Jeff Chastain VICE PRESIDENT OF INVESTOR RELATIONS Third Quarter 2024 Earnings Conference 2 NASDAQ: HEES Legal Disclaimers Forward-Looking Information This presentation contains "forward-looking statements" within the meaning of ...

H&E Equipment Services, Inc. (NASDAQ:HEES) Q3 2024 Earnings Conference Call October 29, 2024 10:00 AM ET Company Participants Jeff Chastain - VP, IR Bradley Barber - CEO Leslie Magee - CFO & Corporate Secretary John Engquist - President & COO Conference Call Participants Steven Fisher - UBS Steven Ramsey - Thompson Research Group Timothy Thein - Raymond James Alex Rygiel - B. Riley Katherine Fleischer - KeyBanc Capital Markets Operator Good morning, and welcome to H&E Equipment Services Third Quarter 2024 E ...

Revenue Composition - Equipment rentals accounted for 82.0% of total revenues for the nine months ended September 30, 2024, with sales of rental equipment, new equipment, and parts/service/other revenues contributing 10.0%, 3.0%, and 5.0% respectively[87] - Total revenues decreased by $15.8 million (4.0%) to $384.9 million for Q3 2024 compared to Q3 2023[100] - Equipment rental revenues increased by $10.4 million (3.3%) to $326.2 million for Q3 2024[101] - Rental revenues increased by $7.8 million (2.8%) to $288.1 million for Q3 2024[102] - Sales of rental equipment decreased by $24.9 million (47.3%) to $27.8 million for Q3 2024[105] - Sales of new equipment increased by $1.4 million (11.2%) to $14.1 million for Q3 2024[106] - Total revenues increased by $49.1 million (4.5%) to $1.1 billion for the nine months ended September 30, 2024, driven by a $64.6 million (7.4%) increase in equipment rental revenues[121][122] - Rental revenues increased by $54.3 million (7.0%) to $825.3 million, while rental equipment dollar utilization decreased by 2.0% to 38.3% due to a larger fleet size[123] - Sales of rental equipment decreased by $13.6 million (11.0%) to $110.8 million, reflecting the company's fleet management strategy[125] - Sales of new equipment increased by $5.8 million (19.9%) to $35.1 million, driven by improved product line availability[126] Acquisitions and Branch Operations - The company completed three acquisitions: Giffin Equipment (3 branches in California) on November 1, 2023, Precision Rentals (1 branch each in Arizona and Colorado) on January 1, 2024, and Lewistown Rentals (4 branches in Montana) on May 1, 2024[81][82] - The company operates 157 branch locations across 32 states in the United States as of September 30, 2024[79] Rental Fleet Details - The rental fleet's net book value was $1.9 billion as of September 30, 2024, representing 66.5% of total assets, with an original acquisition cost of $2.9 billion across 63,727 units[94] - The rental fleet composition as of September 30, 2024: Aerial Work Platforms (44.9% of units, 33.2% of cost), Earthmoving (13.5% of units, 25.1% of cost), Material Handling Equipment (16.6% of units, 29.4% of cost), and Other (25.0% of units, 12.3% of cost)[95] - The original acquisition cost of the rental fleet increased by $156.0 million (5.6%) for the nine months ended September 30, 2024 compared to December 31, 2023, with the average age increasing by 1.1 months[96] - The rental fleet's average age was 40.8 months as of September 30, 2024, with Aerial Work Platforms at 51.6 months, Earthmoving at 29.5 months, Material Handling Equipment at 42.3 months, and Other at 26.4 months[95] Gross Profit and Expenses - Total gross profit decreased by $16.9 million (9.0%) to $171.5 million for Q3 2024[108] - Equipment rentals gross profit decreased by $2.0 million (1.3%) to $147.8 million for Q3 2024[109] - Sales of rental equipment gross profit decreased by $14.1 million (45.7%) to $16.7 million for Q3 2024[113] - Sales of new equipment gross profit increased by $1.1 million (66.8%) to $2.8 million for Q3 2024[114] - Parts, service and other gross profit decreased by $2.0 million (32.4%) to $4.1 million for Q3 2024[115] - Total gross profit increased by $9.5 million (1.9%) to $507.6 million, with a gross profit margin decrease of 1.2% to 44.8%[127] - Total cost of revenues for the nine months ended September 30, 2024 was $624.9 million, with SG&A expenses of $338.6 million[88] - SG&A expenses increased by $8.2 million (7.9%) to $112.4 million for Q3 2024 compared to $104.2 million in Q3 2023, with a 3.2% increase in SG&A as a percentage of total revenues to 29.2%[116] - SG&A expenses increased by $39.7 million (13.3%) to $338.6 million for the nine months ended September 30, 2024, primarily due to expansion efforts and increased employee-related costs[134] Financial Performance and Cash Flow - Net gains on sales of property and equipment increased by $0.9 million to $1.7 million in Q3 2024 compared to $0.8 million in Q3 2023[117] - Net other expenses increased by $4.2 million to $17.3 million in Q3 2024, driven by higher interest expense of $18.8 million due to increased borrowings[118] - Income tax expense decreased by $5.0 million to $12.3 million in Q3 2024, with an effective tax rate of 28.3% compared to 26.1% in Q3 2023[119] - Net gains on sales of property and equipment increased to $6.4 million for the nine months ended September 30, 2024, up from $1.9 million in the same period last year, a $4.6 million increase[135] - Net other expenses rose to $50.9 million for the nine months ended September 30, 2024, compared to $38.7 million in the same period last year, with interest expense increasing to $55.4 million from $44.5 million due to higher borrowings[136] - Income tax expense decreased to $34.4 million for the nine months ended September 30, 2024, from $41.0 million in the same period last year, with an effective tax rate of 27.6% compared to 26.2%[137] - Net cash provided by operating activities was $366.2 million for the nine months ended September 30, 2024, compared to $276.5 million in the same period last year[138][139] - Net cash used in investing activities was $422.1 million for the nine months ended September 30, 2024, including $157.8 million for acquisitions and $382.3 million for purchases of rental and non-rental equipment[140] - Net cash provided by financing activities was $58.5 million for the nine months ended September 30, 2024, with $1.4 billion in borrowings and $1.3 billion in payments on the senior secured credit facility[142][143] - Gross rental fleet capital expenditures decreased to $327.8 million for the nine months ended September 30, 2024, from $595.2 million in the same period last year, while gross property and equipment capital expenditures increased to $93.9 million from $55.4 million[149] - The company had $11.1 million in cash on hand as of September 30, 2024, with available borrowings of $461.3 million under the Credit Facility[147][151] - A quarterly dividend of $0.275 per share was paid on September 13, 2024, totaling approximately $10.1 million[152] - The company's earnings may be affected by changes in interest rates, with interest expense on the Credit Facility calculated based on the Base Rate or SOFR plus applicable margins[154] Segment Reporting - The company revised its reportable segments by aggregating parts sales and service revenues into one segment during the quarter ended June 30, 2024[86] Rental Rates and Utilization - Average rental rates for the nine months ended September 30, 2024 were approximately 1.5% higher than the same period last year[96]

H&E Equipment (HEES) came out with quarterly earnings of $0.85 per share, missing the Zacks Consensus Estimate of $0.97 per share. This compares to earnings of $1.46 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -12.37%. A quarter ago, it was expected that this construction and industrial equipment service provider would post earnings of $1 per share when it actually produced earnings of $0.91, delivering a surprise of -9%. ...