H&E Equipment Services, Inc. (HEES), a provider of heavy construction and industrial equipments, reported Wednesday a swing to loss in the fourth quarter, hurt mainly by impairment charges.
The Baton Rouge, Louisiana-based company's quarterly net loss was $0.6 million or $0.02 per share, compared to net income of $17.07 million or $0.45 per share in the previous year.
During the quarter, the company recorded non-cash goodwill and intangible asset impairment charges of $22.7 million, in connection with annual fourth quarter goodwill impairment test and preparation, review and audit of the year-end financial statements. On an adjusted basis, net income was $13.83 million or $0.40 per share.
On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter declined 9.6% to $261.91 million from $289.67 million a year ago. Three analysts had a consensus revenue estimate of $270.6 million for the period.
For the full year, the company's net income declined to $43.3 million or $1.22 per share from $64.63 million or $1.70 per share in the earlier year. Adjusted net income was $57.76 million or $1.62 per share.
Total revenues for the year increased to $1.068 billion from $1.003 billion in the prior year.
Looking ahead, the company said it plans to eliminate executive and other key management incentive compensation for the foreseeable future and reduce spending on employee benefits, advertising, and travel and entertainment, among other general cut-backs.
"The continuing credit crisis and virtual inability to access lending is resulting in more and more project cancellations and delays," said John Engquist, president and chief executive officer.
HEES closed Tuesday's regular trading at $5.79 on the Nasdaq.
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