H&E Equipment Services Inc. (NASDAQ:HEES) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 10:00 am ET


H&E Equipment Services Inc. (NASDAQ:HEES) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning. And welcome to H&E Equipment Services Second Quarter 2020 Earnings Conference Call. [Operator Instructions]

At this time, I would like to turn the call over to Mr. Kevin Inda, Vice President of Investor Relations. Please go ahead, sir.

Kevin Inda

Thank you, Gary. And welcome to H&E Equipment Services conference call to review the company's results for the second quarter ended June 30, 2020, which were released earlier this morning. The format for today's call includes a slide presentation, which is posted on our website at www.he-equipment.com.

Please proceed to Slide 2. Conducting the call today will be John Engquist, Executive Chairman of the Board of Directors; Brad Barber, Chief Executive Officer and President; and Leslie Magee, Chief Financial Officer and Secretary.

Please proceed to Slide 3. During today's call, we'll refer to certain non-GAAP financial measures, and we've reconciled these measures to GAAP figures in our earnings release and in the appendix to this presentation, each of which is available on our website. Before we start, let me offer the cautionary note that this call contains forward-looking statements within the meaning of the federal securities laws.

Statements about our beliefs and expectations and statements containing words such as may, could, believe, expect, anticipate, and similar expressions constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statements.

Summary of these uncertainties is included in the safe harbor statement contained in the company's slide presentation for today's call and also includes the risks described in the risk factors in the company's most recent annual report on Form 10-K and other periodic reports. Investors, potential investors and other listeners are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The company does not undertake to publicly update or revise any forward-looking statements after the date of this conference call.

With that stated, I'll now turn the call over to Brad Barber.

Bradley W. Barber

Thank you, Kevin, and good morning, everyone. Welcome to H&E Equipment Services second-quarter 2020 earnings call. On the call with me today are John Engquist, executive chairman; Leslie Magee, our chief financial officer; and Kevin Inda, our vice president of investor relations.

Slide 4, please. I will briefly discuss our second-quarter performance, and Leslie will review our financial results for the quarter in more detail. After, we will take your questions.

Slide 6, please. Beginning in March, we incurred a significant impact in our business due to COVID-19. This said, I'm pleased with the results of the actions we took during the quarter. These included rightsizing all areas of our business, most specifically, with inventory and headcount reductions. These focus areas will assist us in continuing to maximize our performance throughout the balance of the year.

Our utilization in the rental business bottomed in April, which subsequently improved and stabilized in the following months. Recent trends in our rental business are