Editor’s note: This story has been updated since original publication. The headline of an earlier version stated H&E posted a loss in the third quarter. While the company’s net income was down compared to the same quarter a year earlier, it generated $11.7 million in net profit in the third quarter. Daily Report regrets the error.
Louisiana’s August flood temporarily delayed H&E Equipment Services’ construction projects and adversely affected the company’s third quarter profit, according to H&E’s quarterly report released today.
The company’s net income fell to $11.7 million, or 33 cents per diluted share, down from $14.8 million, or 42 cents per diluted share, for the same quarter one year ago. Revenues also decreased 11.6% to $244.7 million versus $276.9 million a year ago.
EBITDA—earnings before interest, taxes, depreciation and amortization—for the third quarter of 2016 was $81.9 million compared to $86.2 million in the third quarter of 2015.
H&E CEO John Engquist says in a statement that the company has since recovered from the flood, but its distribution business remained soft during the quarter as new equipment sales continued to be pressured by low crane demand.
“When the energy markets rebound on a sustained basis, we believe there will be substantial pent-up demand for cranes,” Engquist says. “We continue to believe that the nonresidential construction markets remain healthy based on current bidding activity levels, solid backlogs, positive customer sentiment and the robust activity associated with ongoing large projects.”
Third quarter rental revenues were flat at $118.5 million to $118.1 million a year ago, H&E’s quarterly report says.
