H&E Equipment Services : 4.6 MB

Fourth Quarter 2020 Earnings Conference

Fourth Quarter 2020 Earnings Conference

Earnings Conference

NASDAQ:

John Engquist EXECUTIVE CHAIRMAN OF THE BOARD Brad Barber CHIEF EXECUTIVE OFFICER

Leslie Magee CHIEF FINANCIAL OFFICER Kevin Inda VICE PRESIDENT OF INVESTOR RELATIONS

February 17, 2021

HEES

Fourth Quarter 2020 Earnings Conference

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Legal Disclaimers

Forward-Looking Information

This presentation 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. Statements containing the words "may", "could", "would", "should", "believe", "expect", "anticipate", "plan", "estimate", "target", "project", "intend", "foresee" 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 statement. Such factors include, but are not limited to, the following: (1) risks related to the impact of the COVID-19 pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays and cancellations of construction infrastructure projects, supply chain disruptions and other impacts to the business; (2) general economic conditions and construction and industrial activity in the markets where we operate in North America; (3) 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); (4) trends in oil and natural gas could adversely affect the demand for our services and products; (5) 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; (6) relationships with equipment suppliers; (7) increased maintenance and repair costs as we age our fleet and decreases in our equipment's residual value; (8) our indebtedness; (9) 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; (10) our possible inability to integrate any businesses we acquire; (11) competitive pressures; (12) security breaches and other disruptions in our information technology systems; (13) adverse weather events or natural disasters; (14) 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 (15) other factors discussed in our public filings, including the risk factors included in the Company's most recent Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q. Investors, potential investors and other readers 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. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the SEC, we are under no obligation to publicly update or revise any forward-looking statements after the date of this presentation.

Non-GAAP Financial Measures

This presentation contains certain Non-GAAP measures (EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Income from Operations, Adjusted Net Income, Adjusted Net Income per share and recasting of certain revenue and cost of revenue numbers). Please refer to Appendix A of this presentation for a description of these measures and a discussion of our use of these measures. These Non-GAAP measures, as calculated by the Company, are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these Non-GAAP measures are not a measurement of financial or operating performance or liquidity under GAAP and should not be considered an alternative to the Company's other financial information determined under GAAP. See Appendix A for a reconciliation of these Non-GAAP measures.

Fourth Quarter 2020 Earnings Conference

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Agenda

Fourth Quarter Overview, Market Conditions, Growth Strategy

• Q4 2020 Summary
• Current Operating Environment
• Pursuing Multiple Growth Opportunities
• Supplemental Company Data
• • Rental Performance
  • Regional Branch Map; Greenfield and Acquisitions Locations
  • End-UserMarkets and Fleet

Fourth Quarter Financial Overview

• Q4 2020 Results
• 2020 Fleet and Free Cash Flow Update
• Capital Structure Update
• 2020 Financial Results

Question and Answer Session

Fourth Quarter 2020 Earnings Conference

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Brad Barber CHIEF EXECUTIVE OFFICER

Fourth Quarter 2020 Overview, Market

Conditions and Growth Strategy