He Equipment Services, Inc. (HEES) SEC Filing 10-Q Quarterly report for the period ending Sunday, March 31, 2019

Revenues increased 20.4% to $313.6 million versus $260.5 million a year ago.

Net income was $14.2 million in the first quarter compared to net income of $9.5 million a year ago. The effective income tax rate was 26.4% in the first quarter of 2019 and 27.5% in the first quarter of 2018.

Adjusted EBITDA increased 24.7% to $100.9 million in the first quarter compared to $80.9 million a year ago, yielding a margin of 32.2% of revenues compared to 31.1% a year ago.

Total equipment rental revenues for the first quarter of 2019 were $176.1 million, an increase of $32.8 million, or 22.9%, compared to $143.3 million a year ago (as adjusted).⁽¹⁾ Rental revenues (as previously reported) for the first quarter of 2019 were $159.7 million, an increase of $30.3 million, or 23.4%, compared to $129.4 million in the first quarter of 2018.⁽¹⁾

New equipment sales increased 27.1% to $59.1 million in the first quarter compared to $46.5 million a year ago.

Used equipment sales increased 19.2% to $29.6 million in the first quarter compared to $24.9 million a year ago.

Gross margin was 36.3% compared to 35.5% a year ago. The increase in gross margin was largely the result of the improvement in rental and used equipment sales gross margins.

Total equipment rental gross margins were 44.3% in the first quarter of 2019 compared to 43.2% a year ago (as adjusted).⁽¹⁾ Rental gross margins (as previously reported) were 48.7% in the first quarter of 2019 compared to 47.6% last year.⁽¹⁾

Average time utilization (based on original equipment cost) was 70.0% compared to 70.4% a year ago. The size of the Company’s rental fleet based on original acquisition cost increased 23.4% from a year ago, to $1.9 billion.

For a reconciliation of adjustments to prior year data and historical presentations, see page 7.