H&E Equipment Services Inc (HEES) 2023 Q1 法說會逐字稿

Good morning, and welcome to H&E Equipment Services First Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note, today's call is being recorded.

早上好，歡迎參加 H&E 設備服務 2023 年第一季度收益電話會議。 （操作員說明）請注意，今天的通話正在錄音。

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

現在，我想將電話轉給投資者關係副總裁 Jeff Chastain 先生。請繼續。

Thank you. And good morning, everyone. Welcome to a review of H&E Equipment Services First Quarter 2023 Results. Your participation this morning and continued interest in H&E is appreciated. A press release reporting our results was issued earlier today and can be found, along with all supporting statement schedules at the HME website, www.he-equipment.com. Our discussion this morning is accompanied by a slide presentation, which can also be found at the HME website under the Investor Relations tab in Events and Presentations.

謝謝。大家早上好。歡迎閱讀 H&E 設備服務 2023 年第一季度業績。感謝您今天早上的參與以及對 H&E 的持續關注。今天早些時候發布了一份報告我們結果的新聞稿，您可以在 HME 網站 www.he-equipment.com 上找到該新聞稿以及所有支持聲明表。我們今天早上的討論附有幻燈片演示，您也可以在 HME 網站的“活動和演示”中的“投資者關係”選項卡下找到該演示。

Slide 2, please. I'm joined this morning by members of our senior management team, including Brad Barber, Chief Executive Officer; John Engquist, President and Chief Operating Officer; and Leslie Magee, Chief Financial Officer and Corporate Secretary.

請幻燈片 2。今天上午，我們的高級管理團隊成員也加入了我的行列，其中包括首席執行官布拉德·巴伯 (Brad Barber)；約翰·恩奎斯特，總裁兼首席運營官；首席財務官兼公司秘書 Leslie Magee。

Brad will begin today's call, and I will be turning the call over to him after I call your attention to Slide 3 and remind you that today's 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 other 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.

Brad 將開始今天的電話會議，在我請您注意幻燈片 3 並提醒您今天的電話會議包含聯邦證券法含義內的前瞻性陳述後，我會將電話轉給他。關於我們的信念和期望的陳述以及包含“可能”、“能夠”、“相信”、“期望”、“預期”等詞語和其他類似表達的陳述構成前瞻性陳述。前瞻性陳述涉及已知和未知的風險和不確定性，可能導致實際結果與任何前瞻性陳述中包含的結果存在重大差異。

A summary of these uncertainties is included in the safe harbor statement contained in the company's slide presentation for today's call and includes the risks described in the risk factors in the company's 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 forward-looking statements. The company does not undertake to publicly update or revise any forward-looking statements after the date of this conference call.

這些不確定性的摘要包含在公司今天電話會議幻燈片演示中包含的安全港聲明中，並包括公司 10-K 表格年度報告和其他定期報告中風險因素中描述的風險。我們敦促投資者、潛在投資者和其他聽眾在評估前瞻性陳述時仔細考慮這些因素，並告誡不要過度依賴前瞻性陳述。該公司不承諾在本次電話會議日期後公開更新或修改任何前瞻性陳述。

Also, we are referencing non-GAAP financial measures during today's call. You will find the required supplemental disclosure for these measures, including the most directly comparable GAAP measure and an associated reconciliation as supporting schedules to our press release and in the appendix to today's presentation materials.

此外，我們在今天的電話會議中引用了非公認會計準則財務指標。您將在我們的新聞稿和今天演示材料的附錄中找到這些措施所需的補充披露，包括最直接可比的 GAAP 措施和相關的調節表，作為我們新聞稿的支持時間表。

I'll now turn the call over to Brad Barber, Chief Executive Officer of H&E Equipment Services.

我現在將電話轉給 H&E 設備服務公司首席執行官布拉德·巴伯 (Brad Barber)。

Thank you, Jeff. Good morning, and welcome to our review of first quarter 2023 financial results. We appreciate your participation and continued interest in H&E.

謝謝你，傑夫。早上好，歡迎來到我們對 2023 年第一季度財務業績的回顧。我們感謝您的參與以及對 H&E 的持續關注。

Our first quarter performance was very encouraging, demonstrating strong contribution from our exceptional pricing gains achieved in 2022, with further progress already shown in 2023. Also, our robust fleet growth and branch expansion provide a support to our strong year-over-year performance.

我們第一季度的業績非常令人鼓舞，這表明我們在 2022 年實現的卓越定價收益做出了巨大貢獻，並且 2023 年已經取得了進一步的進展。此外，我們強勁的機隊增長和分支機構擴張為我們強勁的同比業績提供了支持。

Please proceed to Slide 4. I'll begin today with a brief review of some key financial metrics in the quarter before I shift the discussion to an update of our rental performance. Next, I'll share my thoughts on the equipment rental business and while we remain confident in the prospects for 2023. Finally, I'll provide an update on our strategic objectives, including fleet growth and branch expansion goals and our achievements in the first quarter.

請繼續觀看幻燈片 4。今天，我將首先簡要回顧本季度的一些關鍵財務指標，然後將討論轉向我們的租賃業績更新。接下來，我將分享我對設備租賃業務的看法，同時我們對 2023 年的前景仍然充滿信心。最後，我將提供我們戰略目標的最新信息，包括機隊增長和分支機構擴張目標以及我們在第一季度取得的成就。

Leslie will follow with a review of first quarter financials, including business segment performance data, and update you on our capital structure and liquidity, then we'll be happy to take your questions.

萊斯利隨後將回顧第一季度的財務狀況，包括業務部門業績數據，並向您介紹我們的資本結構和流動性的最新情況，然後我們將很樂意回答您的問題。

Slide 6, please. Excellent rental rates, fleet growth, branch expansion, the addition of One Source and the continuation of a fundamentally strong business environment were all significant components of our first quarter growth. Compared to the first quarter of 2022, these factors were primarily responsible for the better than 18% improvement in total revenues. Improvement was partially offset by lower new equipment sales revenues and, to a lesser degree, part sales and service revenues. The lower sales from these 3 business segments were largely due to the December 2022 divestiture of our last exposure to the low-margin distribution business.

請幻燈片 6。出色的租金率、機隊增長、分支機構擴張、One Source 的增加以及基本強勁的商業環境的持續，都是我們第一季度增長的重要組成部分。與 2022 年第一季度相比，這些因素是總收入增長超過 18% 的主要原因。新設備銷售收入的下降以及零件銷售和服務收入的下降部分抵消了業績的改善。這 3 個業務部門的銷售額下降主要是由於我們於 2022 年 12 月剝離了上次的低利潤分銷業務。

Equipment rental revenues increased 31.5% in the first quarter as we captured strong year-over-year rental rate improvement with our exceptional rate achievement from 2022 carrying into the new year. Rates in the first quarter, excluding One Source, were up 9.5% from the year ago quarter despite an expected year-over-year decline in first quarter fiscal utilization. I'll provide additional details on fleet utilization in a moment. Also, our rental fleet experienced rapid growth with the first quarter original equipment cost, or OEC, up 28.1% or $534 million when compared to our fleet OEC in the first quarter of 2022.

第一季度的設備租賃收入增長了 31.5%，因為我們從 2022 年開始進入新的一年，取得了出色的租金率同比強勁增長。儘管第一季度財政利用率預計同比下降，但第一季度的利率（不包括 One Source）較上年同期增長 9.5%。我稍後將提供有關機隊利用率的更多詳細信息。此外，我們的租賃機隊經歷了快速增長，與 2022 年第一季度我們的機隊 OEC 相比，第一季度的原始設備成本 (OEC) 增長了 28.1%，即 5.34 億美元。

Additionally, we benefited from 14 more branches operating in the first quarter of 2023 compared to a year ago, which followed the record growth of in 2022 our branch network. This growth was achieved through our accelerated branch expansion program and the acquisition of One Source. The 14 branch increase reflects an adjustment for our recent branch consolidation.

此外，繼 2022 年分行網絡創紀錄增長之後，我們受益於 2023 年第一季度比去年同期新增 14 家分行。這一增長是通過我們加速分支機構擴張計劃和收購 One Source 實現的。增加 14 家分行反映了我們近期分行合併的調整。

Finally, used equipment sales experienced a meaningful increase in the quarter as part of our fleet management strategy. Leslie will cover this point and others during our financial review. These same factors drove a strong year-over-year increase in EBITDA, which totaled $140.1 million in the first quarter, up 35.4%, while an EBITDA margin of 43.4% was 540 basis points ahead of the same quarter 2022.

最後，作為我們車隊管理戰略的一部分，二手設備銷售在本季度出現了有意義的增長。萊斯利將在我們的財務審查期間討論這一點和其他問題。這些因素推動了 EBITDA 同比強勁增長，第一季度的 EBITDA 總額為 1.401 億美元，增長 35.4%，而 EBITDA 利潤率為 43.4%，比 2022 年同季度高出 540 個基點。

I will now cover some highlights from our rental business. Slide 7, please. Rental revenues when compared to the year ago quarter improved an impressive 31% to $232.1 million. Rental gross margins for the quarter were 48.4% compared to 49.9% over the same period of comparison with higher depreciation, the primary cause for the decline. Leslie will explain this further during our financial discussion.

現在我將介紹我們租賃業務的一些亮點。請幻燈片 7。與去年同期相比，租金收入增長了 31%，達到 2.321 億美元。本季度租金毛利率為 48.4%，而去年同期為 49.9%，折舊率上升是造成下降的主要原因。萊斯利將在我們的財務討論中進一步解釋這一點。

I noted earlier the positive impact on rental rates in the quarter as we continue to demonstrate excellent relative pricing performance across the equipment rental industry. In addition to the 9.5% year-over-year improvement, rental rates, excluding One Source, were up 0.7% on a sequential quarterly basis. Our expectation for modest sequentially quarterly rate improvement in 2023 remains unchanged.

我早些時候注意到，隨著我們繼續在整個設備租賃行業展現出優異的相對定價表現，本季度租金率受到了積極影響。除了同比增長 9.5% 外，租金率（不包括 One Source）環比上漲 0.7%。我們對 2023 年季度利率小幅改善的預期保持不變。

Consistent with our first quarter expectations, fleet utilization of 67.3% was in line with a typical first quarter measure. The 310-basis-point decline compared to the year ago quarter was largely due to persistent disruptive weather across several of our geographic regions. Finally, dollar utilization in the first quarter was 38.6%, a 100-basis-point improvement when compared to the first quarter of 2022.

與我們第一季度的預期一致，機隊利用率為 67.3%，符合第一季度的典型指標。與去年同期相比下降 310 個基點，主要是由於我們幾個地理區域持續出現破壞性天氣。最後，第一季度的美元利用率為 38.6%，與 2022 年第一季度相比提高了 100 個基點。

This favorable result, which has demonstrated strong improvement since late 2021, highlights our ability to effectively address critical factors for success. These success factors include rental rate discipline, fleet growth and effective fleet management, continued branch expansion and other areas of operational excellence. We also benefited from a resilient business environment, and we remain confident that sounds fundamental conditions will persist in 2023.

這一良好的結果自 2021 年底以來已經表現出強勁的進步，突顯了我們有效解決成功關鍵因素的能力。這些成功因素包括租金紀律、車隊增長和有效的車隊管理、持續的分支機構擴張以及其他卓越運營領域。我們還受益於富有彈性的商業環境，我們仍然相信良好的基本麵條件將在 2023 年持續存在。

Next, I want to provide some facts behind our positive industry thesis. On to Slide 8, please. Construction activity remained strong, contributing to the robust end market backlogs, especially in the nonresidential and industrial segments. These 2 important end markets accounted for 77% of our revenues over the last 12 months. We are witnessing an abundance of projects across our operating footprint entering various stages of execution and planning and several key industry measures of future nonresidential construction activity continue to support a positive outlook. Although certain measures have softened from peak levels in recent months, they continue to signal healthy activity throughout the balance of 2023 and into 2024.

接下來，我想提供我們積極的行業論點背後的一些事實。請轉到幻燈片 8。建築活動依然強勁，導致終端市場積壓強勁，特別是在非住宅和工業領域。這兩個重要的終端市場占我們過去 12 個月收入的 77%。我們目睹了我們經營範圍內的大量項目進入了執行和規劃的各個階段，未來非住宅建築活動的幾項關鍵行業指標繼續支持積極的前景。儘管某些指標較近幾個月的峰值有所回落，但它們繼續表明 2023 年餘下時間和 2024 年經濟活動健康發展。

Also, large private and federally-funded construction projects addressing a variety of manufacturing and infrastructure building programs are increasingly impaired across our operating footprint. These projects include, but are not limited to, LNG export terminals along the Gulf Coast, solar farms and chip factories -- chip fabrication plants in the Central and Western U.S.; electric vehicle battery facilities in the east, central and western regions of the country; and data centers across all regions. Our participation in these extensive opportunities is expected to increase throughout the year.

此外，涉及各種製造和基礎設施建設項目的大型私人和聯邦政府資助的建設項目在我們的運營足跡中日益受到損害。這些項目包括但不限於墨西哥灣沿岸的液化天然氣出口碼頭、太陽能發電場和芯片工廠——美國中西部的芯片製造廠；全國東、中、西部地區電動汽車電池設施；以及遍布所有地區的數據中心。我們對這些廣泛機會的參與預計全年都會增加。

Lastly, a continued equipment supply imbalance and the likelihood of further improvement in rental penetration represent favorable dynamics that reinforce a positive industry outlook. On the latter point, rental penetration is estimated to have exceeded 53% at the conclusion of 2022 as this important measure approaches its prepandemic highs. These numerous sources of customer demand are expected to support favorable business conditions, including higher physical fleet utilization and modest sequential rental rate improvements as the year proceeds.

最後，持續的設備供應不平衡和租賃滲透率進一步提高的可能性代表了有利的動態，增強了積極的行業前景。就後一點而言，隨著這一重要指標接近疫情前的高點，預計到 2022 年底，租金滲透率將超過 53%。這些眾多的客戶需求來源預計將支持有利的業務條件，包括更高的實體車隊利用率和隨著時間的推移租金率適度連續提高。

Finally, and before I turn the call over to Leslie, I'll provide an update on progress towards our growth and expansion strategy. Slide 9, please. Significant improvement in our rental fleet, continued expansion of our branch network and opportunistic M&A remain principal components of our growth strategy in 2023. Our gross fleet capital expenditure in the first quarter totaled approximately $128 million, with an expected expenditure for the full year remaining $500 million to $550 million. This sizable first quarter outlay attractively positions our existing branches with the equipment needed to address escalating customer demand as the seasonal expansion in construction activity begins while ensuring we have the optimal fleet mix required to seamlessly execute our new location strategy.

最後，在我將電話轉給 Leslie 之前，我將提供有關我們增長和擴張戰略進展的最新信息。請幻燈片 9。租賃機隊的顯著改善、分支機構網絡的持續擴張以及機會性併購仍然是我們 2023 年增長戰略的主要組成部分。第一季度我們的機隊資本支出總額約為 1.28 億美元，全年預計支出仍為 5 億至 5.5 億美元。隨著建築活動季節性擴張的開始，第一季度的巨額支出為我們現有的分支機構提供了所需的設備，以滿足不斷增長的客戶需求，同時確保我們擁有無縫執行新地點戰略所需的最佳機隊組合。

Regarding new locations, our previously reported goal in 2023 of no less than 10 new locations and possibly as many as 15 remains unchanged. We remain focused on greater density in key geographic regions. No new branches were added in the first quarter. However, we currently expect to open as many as 6 new branches during the second quarter.

關於新地點，我們之前報告的 2023 年新地點不少於 10 個、可能多達 15 個的目標保持不變。我們仍然專注於提高關鍵地理區域的密度。第一季度沒有新增分支機構。不過，我們目前預計第二季度將開設多達 6 家新分行。

Slide 10, please. We closed the first quarter with 119 branches across 29 states. The modest reduction in branches from our year-end 2022 total reflects the consolidation of the One Source branch as we finalized our integration process. In summary, the combination of rental rate discipline, substantial fleet growth, effective fleet management, meaningful branch expansion and superior operational execution concisely describes the story line for the first quarter, leading to another successful quarterly result.

請幻燈片 10。截至第一季度，我們在 29 個州擁有 119 家分支機構。分支機構數量較 2022 年底總數略有減少，反映了我們完成整合流程後對 One Source 分支機構的整合。總而言之，租金率紀律、機隊大幅增長、有效的機隊管理、有意義的分支機構擴張和卓越的運營執行相結合，簡潔地描述了第一季度的故事情節，從而帶來了另一個成功的季度業績。

With the continued focus on these and other critical factors, we fully expect to demonstrate further financial improvement and operational achievement in 2003 while we advance our strategic growth objectives.

通過繼續關注這些和其他關鍵因素，我們完全期望在 2003 年實現進一步的財務改善和運營成就，同時推進我們的戰略增長目標。

Now on to Slide 11, and I'm going to turn the call over to Leslie for an extensive review of our first quarter financial performance. Leslie?

現在轉到幻燈片 11，我將把電話轉給 Leslie，讓其對我們第一季度的財務業績進行廣泛審查。萊斯利？

Thank you, Brad. Good morning, and welcome, everyone. I'll begin this morning on Slide 12 with a review of revenues, gross profit and profit margins. First quarter revenues totaled $322.5 million or 18.4% better than the first quarter of 2022. The $50 million improvement was due primarily to higher revenues in both rental and used equipment sales. At the business segment level, rental revenues in the quarter were up 31% to $232.1 million compared to $177.2 million in the year ago quarter.

謝謝你，布拉德。早上好，歡迎大家。今天早上我將從幻燈片 12 開始回顧收入、毛利潤和利潤率。第一季度收入總計 3.225 億美元，比 2022 年第一季度增長 18.4%。增加 5,000 萬美元主要是由於租賃和二手設備銷售收入增加。在業務部門層面，本季度的租金收入增長 31%，達到 2.321 億美元，而去年同期的租金收入為 1.772 億美元。

Growth in our rental fleet and appreciation in rental rates contributed meaningfully to the improvement. As Brad noted earlier, our rental fleet grew 28.1% or $533.8 million when compared to the first quarter of 2022, and we continue to demonstrate excellent rate achievement with rental rates 9.5% higher than the first quarter of 2022 and 0.7% better on a sequential quarterly basis.

我們租賃機隊的增長和租金的上漲對這一改善做出了重大貢獻。正如 Brad 早些時候指出的那樣，與 2022 年第一季度相比，我們的租賃機隊增長了 28.1%，即 5.338 億美元，我們繼續展現出出色的租金成績，租金比 2022 年第一季度高 9.5%，環比高 0.7%。

Unlike the year ago quarter, when we recorded physical fleet utilization of 70.4%, first quarter of 2023 utilization of 67.3% reflected a more typical first quarter outcome.

與去年同期不同的是，我們記錄的實際機隊利用率為 70.4%，而 2023 年第一季度的利用率為 67.3%，反映了更典型的第一季度結果。

Revenues from used equipment sales rose 49.2% in the quarter to $32.1 million compared to $21.5 million in the year ago quarter. The execution of our fleet management strategy, together with our decision to capitalize on a strong market for used equipment, resulted in increased sales in the quarter. New equipment sales in the quarter declined 70% to $7.8 million compared to $26 million in the first quarter of 2022. The decline was due primarily to a reduction in the sale of earthmoving equipment. And as a reminder, in December 2022, we sold our Komatsu earthmoving distribution business, representing a final step in our planned exit from distribution activities.

本季度二手設備銷售收入增長 49.2%，達到 3210 萬美元，而去年同期為 2150 萬美元。我們車隊管理戰略的執行，加上我們利用二手設備強勁市場的決定，導致本季度銷售額增加。本季度新設備銷售額下降 70%，至 780 萬美元，而 2022 年第一季度為 2600 萬美元。下降的主要原因是土方設備銷售額減少。提醒一下，2022 年 12 月，我們出售了小鬆土方分銷業務，這是我們計劃退出分銷活動的最後一步。

Consolidated gross profit in the first quarter increased $29.8 million or 26.7% to $141.4 million compared to $111.6 million in the year ago quarter. Our consolidated gross margin improved to 43.8% compared to 41% over the same period of comparison. And improved revenue mix and higher gross margins on used equipment sales were the primary contributors to the improvement. Total equipment rental margins were 43.6% in the first quarter of 2023 compared to 44.9% in the year ago quarter.

第一季度綜合毛利潤增加 2,980 萬美元，即 26.7%，達到 1.414 億美元，而去年同期為 1.116 億美元。我們的綜合毛利率從去年同期的 41% 提高至 43.8%。收入結構的改善和二手設備銷售毛利率的提高是業績改善的主要原因。 2023 年第一季度的設備租賃總利潤率為 43.6%，而去年同期為 44.9%。

Comparing other results to the year ago quarter, rental margins were 48.4% compared to 49.9%. The lower margins resulted from higher depreciation expense on the fair market value of recently acquired fleet from One Source. Used equipment margins increased to 58.6% compared to 41.7%, with fleet-only margins, which exclude used equipment obtained through trade-in at 59.1% compared to 45.2%. Margins on new equipment sales were 13.3% compared to 14.2%. And finally, margins on parts sales improved to 28.8% compared to 27.1%, while service margins finished the quarter at 64% compared to 65.4%.

與去年同期的其他結果相比，租金利潤率為 48.4%，而去年同期為 49.9%。利潤率較低是由於最近從 One Source 收購的機隊公平市場價值的折舊費用較高。二手設備利潤率從 41.7% 增至 58.6%，僅機隊利潤率（不包括通過以舊換新獲得的二手設備）的利潤率從 45.2% 增至 59.1%。新設備銷售利潤率為 13.3%，而上年同期為 14.2%。最後，零部件銷售利潤率從 27.1% 提高到 28.8%，而本季度服務利潤率從 65.4% 提高到 64%。

Slide 13, please. Income from operations closed the first quarter at $46.7 million compared to $34.7 million in the first quarter of 2022. The 34.7% increase resulted in a margin of 14.5% compared to 12.7% in the year ago quarter. Favorable revenue mix and higher gross margins on used equipment sales contributed to the improved margin, which was partially offset by lower rental margins as discussed previously and higher SG&A costs.

請幻燈片 13。第一季度運營收入為 4670 萬美元，而 2022 年第一季度為 3470 萬美元。增長 34.7%，利潤率為 14.5%，而去年同期為 12.7%。有利的收入結構和二手設備銷售毛利率的提高促進了利潤率的提高，但部分被前面討論的較低的租金利潤率和較高的銷售管理費用所抵消。

Proceed to Slide 14, please. Net income in the first quarter increased 57.5% to $25.7 million or $0.71 per diluted share compared to $16.3 million or $0.45 per diluted share in the year ago quarter. Our effective income tax rate in the first quarter was 26.1% compared to 26.3% for the same quarter in 2022.

請繼續看幻燈片 14。第一季度淨利潤增長 57.5%，達到 2570 萬美元，即稀釋後每股收益 0.71 美元，而去年同期淨利潤為 1630 萬美元，即稀釋後每股收益 0.45 美元。我們第一季度的有效所得稅率為 26.1%，而 2022 年同一季度為 26.3%。

Proceed to Slide 15, please. First quarter EBITDA totaled $140.1 million compared to $103.4 million in the year ago quarter and a 35.4% improvement compared to an 18.4% increase in total revenue. EBITDA margin in the first quarter improved 540 basis points to 43.4%. The favorable outcome was again the result of improved revenue mix and higher gross margins on used equipment sales. These factors were partially offset by an increase in SG&A expense.

請繼續觀看幻燈片 15。第一季度 EBITDA 總計 1.401 億美元，而去年同期為 1.034 億美元，與總收入增長 18.4% 相比，增長了 35.4%。第一季度 EBITDA 利潤率提高了 540 個基點，達到 43.4%。有利的結果再次歸功於收入結構的改善和二手設備銷售毛利率的提高。這些因素被 SG&A 費用的增加部分抵消。

Next, Slide 16, please. SG&A expense in the first quarter increased $17.1 million or 21.8% to $95.3 million. The result compared to $78.3 million in the year ago quarter. The increase was due primarily to employees, salaries, wages and variable compensation as well as increased head count. Higher professional fees and facility expenses added to the quarter-over-quarter increase. Expressed as a percentage of revenues, SG&A expenses in the first quarter were 29.6% compared to 28.7% in the prior year quarter. Approximately $3.5 million of the expense increase in the quarter was attributable to our branch expansion strategy since the close of the prior year quarter. And over this period, we opened 8 new branches, excluding branches acquired in the One Source acquisition.

接下來請播放幻燈片 16。第一季度的 SG&A 費用增加了 1710 萬美元，即 21.8%，達到 9530 萬美元。相比之下，去年同期的業績為 7830 萬美元。增長主要是由於員工、工資、工資和可變薪酬以及員工人數的增加。較高的專業費用和設施費用增加了季度環比的增長。以佔收入的百分比表示，第一季度的 SG&A 費用為 29.6%，而去年同期為 28.7%。本季度費用增加中約 350 萬美元歸因於我們自去年季度結束以來的分支機構擴張戰略。在此期間，我們開設了 8 家新分支機構，不包括收購 One Source 時獲得的分支機構。

Slide 17, please. Gross total fleet capital expenditures in the first quarter inclusive of noncash transfers from inventory totaled $127.7 million. Net rental fleet capital expenditures were $96 million. Gross PP&E capital expenditures in the quarter were $12.4 million or $11.5 million, net of sales of PP&E.

請幻燈片 17。第一季度機隊資本支出總額（包括庫存非現金轉移）總計 1.277 億美元。淨租賃車隊資本支出為 9600 萬美元。本季度 PP&E 資本支出總額為 1,240 萬美元，扣除 PP&E 銷售額後為 1,150 萬美元。

Net cash provided by operating activities totaled $43.2 million in the quarter and compared to $38.5 million in the year ago quarter. Free cash flow used in the quarter was $13.2 million compared to free cash flow of $4.8 million over the same period of comparison. The average age of our rental fleet at March 31, 2023 was 43.7 months and compared favorably to the industry average fleet age of 51.9 months.

本季度經營活動提供的淨現金總額為 4,320 萬美元，而去年同期為 3,850 萬美元。本季度使用的自由現金流為 1,320 萬美元，而同期的自由現金流為 480 萬美元。截至 2023 年 3 月 31 日，我們租賃機隊的平均機齡為 43.7 個月，優於行業平均機隊機齡 51.9 個月。

Slide 18, please. Our rental fleet size based on original equipment cost at March 31, 2023 exceeded $2.4 billion and was approximately $533.8 million or 28.1%, larger than our fleet size at the conclusion of the first quarter of 2022. Average dollar utilization in the first quarter of 2023 improved to 38.6% compared to 37.6% in the prior year quarter, with the improvement due largely to rental rate improvement and fleet mix.

請幻燈片 18。截至 2023 年 3 月 31 日，我們的租賃機隊規模（基於原始設備成本）超過 24 億美元，約為 5.338 億美元，即 28.1%，比 2022 年第一季度末的機隊規模大。2023 年第一季度的平均美元利用率從去年同期的 37.6% 提高到 38.6%，這主要歸功於租金率的提高和機隊組合。

Moving on to Slide 19, please. Net debt at March 31, 2023 was approximately $1.2 billion, essentially unchanged when compared to the measure at December 31, 2022. We concluded the first quarter with a net leverage measure or up 2.1x compared to 2.2x at December 31, 2022. We have no maturities before 2028 in our $1.25 billion of senior unsecured notes.

請轉到幻燈片 19。截至 2023 年 3 月 31 日的淨債務約為 12 億美元，與 2022 年 12 月 31 日的指標相比基本沒有變化。第一季度結束時，我們的淨槓桿率指標上升了 2.1 倍，而 2022 年 12 月 31 日的槓桿率為 2.2 倍。我們的 12.5 億美元高級無抵押票據在 2028 年之前沒有到期日。

Slide 20, please. Our liquidity position at March 31, 2023, totaled $789.4 million, including a cash balance of $89.9 million and borrowing availability under our amended ABL facility of $699.4 million. Excess availability under the ABL facility of approximately $1.5 billion was unchanged from the measure on December 31, 2022. Our minimum availability as defined by the ABL agreement remains $75 million, and note that excess availability is the measurement used to determine if our springing fixed charge coverage is applicable. And with excess availability of $1.5 billion, we continue to have no covenant concerns. Finally, we paid our regular quarterly dividend of $0.275 per share of common stock in the first quarter of 2023. And while dividends are subject to Board approval, it is our intent to continue to pay the dividend.

請幻燈片 20。截至 2023 年 3 月 31 日，我們的流動性頭寸總計 7.894 億美元，其中現金餘額為 8,990 萬美元，修訂後的 ABL 設施下的可用借款為 6.994 億美元。 ABL 安排下的超額可用性約為 15 億美元，與 2022 年 12 月 31 日的措施相比沒有變化。ABL 協議定義的最低可用性仍為 7500 萬美元，請注意，超額可用性是用於確定我們即將推出的固定費用覆蓋範圍是否適用的衡量標準。由於有 15 億美元的超額可用，我們仍然沒有契約問題。最後，我們在 2023 年第一季度支付了每股普通股 0.275 美元的定期季度股息。雖然股息須經董事會批准，但我們打算繼續支付股息。

Slide 21, please. To conclude, we are encouraged by the strong start to 2023. Our financial performance demonstrates the significance of a successful rental rate strategy, sound operations, performance and disciplined growth and expansion objectives. Many key financial metrics continued to record strong year-over-year improvement, and now we benefit from a position of greater financial stability through the cycle. We've scrutinized prevailing business conditions given inflationary pressures, interest rate actions and recent banking system instability. We believe a fundamentally-sound environment remains in place supported by strong project backlog and emerging opportunities.

請幻燈片 21。總而言之，我們對 2023 年的強勁開局感到鼓舞。我們的財務業績證明了成功的租金策略、穩健的運營、業績以及嚴格的增長和擴張目標的重要性。許多關鍵財務指標繼續錄得同比強勁改善，現在我們受益於整個週期內財務穩定性的增強。考慮到通脹壓力、利率行動和近期銀行體系的不穩定，我們仔細審查了當前的商業狀況。我們相信，在強勁的項目積壓和新興機遇的支持下，基本良好的環境仍然存在。

The environment is favorable for the execution of our 2023 growth initiatives. These initiatives are supported by our excellent financial resources and a conservative capital structure. We recently extended our senior secured credit facility into 2028, and we have no senior net maturities until 2028. And our leverage ratio and EBITDA interest coverage ratio stands at 2.1x and 2.5x, respectively.

當前的環境有利於我們執行 2023 年增長計劃。這些舉措得到了我們卓越的財務資源和保守的資本結構的支持。我們最近將高級擔保信貸額度延長至 2028 年，並且在 2028 年之前我們沒有高級淨到期日。我們的槓桿率和 EBITDA 利息保障倍數分別為 2.1 倍和 2.5 倍。

Thank you for your interest in H&E, and we look forward to keeping you apprised of our progress. We are now ready to begin the Q&A period.

感謝您對 H&E 的關注，我們期待隨時向您通報我們的進展。我們現在準備開始問答階段。

(Operator Instructions) Our first question is from Steven Ramsey with Thompson Research Group.

（操作員說明）我們的第一個問題來自湯普森研究小組的 Steven Ramsey。

Seems like a strong environment out there still. I guess, if you think about customer feedback, maybe how did it change through the first quarter? Are they still as bullish as they were entering the year? And then maybe a follow-on to that. The projects in hand or in the pipeline of your customers, are there more projects with multiyear time frames than a year ago or than in normal times?

看來外面的環境仍然很強大。我想，如果您考慮客戶反饋，也許第一季度發生了怎樣的變化？他們還像進入今年時那樣樂觀嗎？然後也許是後續。您的客戶手中或正在醞釀的項目中，多年期項目是否比一年前或正常時期更多？

Yes. Steven. Customer sentiment has not changed one bit. It remains very strong. The consistent feedback from customers is really around their ability to feel enough employees to do the work that's in front of them. So their backlog remains strong, and there's no inflection point that we've witnessed at this point in time.

是的。史蒂文.客戶情緒沒有絲毫改變。它仍然非常強大。客戶的一致反饋實際上是圍繞他們是否有能力感受到足夠的員工來完成他們面前的工作。因此，他們的積壓仍然很嚴重，而且我們目前還沒有看到拐點。

The second part of your question, I'm sorry, remind me -- more projects, yes. I see it here, sorry. More projects at multiyear. I don't think there's a doubt. There are more multiyear projects in front of us today than they were 12 months ago. Many of the -- some of these have broken ground. Some broke ground late last year, and many more are scheduled to start here this quarter, Q3, Q4 and into '24. So I think it's quantifiable. There are more multiyear projects in front of us as we sit here today than certainly there was a year ago.

抱歉，你問題的第二部分提醒我——更多的項目，是的。我在這裡看到了，抱歉。多年期的更多項目。我認為沒有疑問。今天擺在我們面前的多年期項目比 12 個月前還要多。其中許多——其中一些已經破土動工。其中一些項目於去年年底破土動工，還有更多項目計劃於本季度、第三季度、第四季度乃至 2024 年在這裡啟動。所以我認為這是可以量化的。當我們今天坐在這裡時，擺在我們面前的多年期項目肯定比一年前要多。

Okay. Helpful. And then the fleet deliveries you received in the first quarter of $128 million, how did this compare to your original views of 2023 deliveries? And if it is ahead of your prior views, does this cause you to increase your rental revenue expectations for the year?

好的。有幫助。然後，您在第一季度收到的車隊交付量為 1.28 億美元，這與您最初對 2023 年交付量的看法相比如何？如果它超出了您之前的觀點，這是否會導致您提高今年的租金收入預期？

It's within range of what we were planning for internally. We're very pleased that the planning we've placed with the manufacturers for capital this year appears that it's going to be on time and as expected. So we're very encouraged by what we've seen in Q1. We're very encouraged by what we're seeing in Q2 with availability, meaning that it's aligning with our plans and expectations. So yes, I mean what will our revenues do? The quicker we get this fleet, the quicker it's going to go on rent.

這在我們內部計劃的範圍內。我們很高興今年與製造商制定的資本計劃似乎將按時按預期進行。因此，我們對第一季度所看到的情況感到非常鼓舞。我們對第二季度的可用性感到非常鼓舞，這意味著它符合我們的計劃和期望。所以是的，我的意思是我們的收入將用來做什麼？我們越快獲得這支車隊，它的租金就越快。

As I mentioned in my prepared comments, we've got a slate -- we think we're probably opened 6 locations this year on the heels of the 20 locations we've opened over the last 2 years and, of course, One Source that we've spoken about previously with their 9 locations. Now that we've had one consolidation and finalized that integration. So very happy with where we are with our CapEx.

正如我在準備好的評論中提到的，我們已經有了一份名單——我們認為繼過去 2 年開設 20 家門店之後，今年我們可能會開設 6 家門店，當然還有我們之前談到的 One Source 的 9 家門店。現在我們已經進行了一次整合併完成了整合。我們對資本支出的現狀非常滿意。

Okay. Helpful. And then one more for me on SG&A as a percentage of sales. I think you've talked about flattish this year relative to last year. Given the major revenue growth and the strong rental rates helping contribute there, what are the factors for not getting SG&A leverage this year? And at what revenue levels do you expect to start getting leverage on that line?

好的。有幫助。然後我再講一個關於 SG&A 佔銷售額的百分比。我想你已經談到了今年與去年相比持平。鑑於收入的大幅增長和強勁的租金率對此做出了貢獻，今年沒有獲得 SG&A 槓桿的因素有哪些？您預計在什麼收入水平時開始在這條線上獲得槓桿作用？

Let me give some commentary to the why we're not showing more leverage, and it's really around this rapid growth. I mean we're posting better than 10% new unit growth per year. I've stated that our expectations are 10 to 15 locations this year as we're continuing to build out One Source that we purchased, I think, in October of last year. So that's why we're not seeing the leverage you may be referring to. As far as that flattish-type guidance, we're comfortable with that. If we were more focused on reducing SG&A, we could accomplish that. But I think we're doing a nice job of balance and substantial fleet growth unit location count that's going to serve us for decades to come. The markets we're moving to are all primary markets that will serve H&E for many, many years to come. Leslie, would you add anything to that?

讓我對為什麼我們沒有表現出更多的槓桿作用進行一些評論，這實際上是圍繞著這種快速增長的。我的意思是，我們每年的新銷量增長超過 10%。我已經說過，我們今年的預期是 10 到 15 個地點，因為我們正在繼續建設 One Source，我想是我們在去年 10 月購買的。這就是為什麼我們沒有看到您可能提到的槓桿作用。就這種扁平化的指導而言，我們對此感到滿意。如果我們更加專注於減少銷售、管理和行政費用，我們就可以實現這一目標。但我認為我們在平衡方面做得很好，機隊數量大幅增長，這將在未來幾十年為我們服務。我們要進入的市場都是主要市場，將在未來很多很多年內為 H&E 提供服務。萊斯利，你能補充點什麼嗎？

No, I think that answered it perfectly. I mean I would just concur that our expectation is still that we'll be flat to 2022, which was 27.6% for the full year.

不，我認為這完美地回答了這個問題。我的意思是，我同意我們的預期仍然是到 2022 年將持平，全年增長率為 27.6%。

The next question is from Seth Weber with Wells Fargo Securities.

下一個問題來自富國銀行證券公司的 Seth Weber。

I wanted to follow up on a couple of Steven's questions. The positive customer sentiment, I guess, I'm just trying to tie that together with the sentiment is good. But have you heard anything about customers having challenges getting financing for projects? So is that potentially a -- just a governing factor on stuff going forward? And do you have any sense for what -- how many -- what percentage of the projects in your area are maybe financed locally versus money center banks or bigger banks? Or anything like -- are you hearing anything on the financing side? I guess, maybe to start there.

我想跟進史蒂文的幾個問題。我想，積極的客戶情緒，我只是試圖將其與良好的情緒聯繫起來。但您是否聽說過客戶在獲得項目融資方面遇到困難的情況？那麼，這是否可能只是未來發展的一個主導因素？您是否知道您所在地區的哪些項目（有多少項目）可能是由本地融資而不是貨幣中心銀行或大型銀行融資的？或者類似的事情——您有聽到融資方面的消息嗎？我想，也許從這裡開始。

No, we are not. I mean we spoke to investors, we spoke to others who have asked the same question and for very obvious and logical reasons. But in our engagement with regional banks and more specifically with customers and focus on our projects, we've seen zero impact so far. I've not gotten -- I've not received feedback about any projects that may not go due to financing or the current environment we're in. So we're aware, we're paying attention. But the answer to your question is no, there has been zero change.

不，我們不是。我的意思是，我們與投資者進行了交談，我們與其他提出同樣問題的人進行了交談，並且出於非常明顯且合乎邏輯的原因。但在我們與地區銀行、更具體地說是與客戶的合作以及對我們項目的關注中，到目前為止，我們看到的影響為零。我還沒有收到任何由於融資或我們當前所處環境而可能無法實施的項目的反饋。所以我們知道，我們正在關注。但你的問題的答案是否定的，變化為零。

Okay. That's helpful. And then just, Brad, how should we think about the economics on some of these longer-term projects? Are they -- is it a lower gross margin, but maybe there's less back and forth of the fleet or less maintenance or something like that so the operating margin is about the same? Or is there any kind of rule of thumb that you guys think about if the project duration gets longer, the impact that might have on the margin?

好的。這很有幫助。然後，布拉德，我們應該如何考慮其中一些長期項目的經濟效益？毛利率是否較低，但也許車隊的往返次數較少或維護次數較少或類似的情況，因此營業利潤率大致相同？或者，如果項目持續時間變長，你們是否考慮過任何經驗法則，可能會對利潤產生影響？

Yes. Well, as you just adequately outlined, the longer the project, the larger the project. Stated more plainly, the more product you put on a project for a long period of time, you typically see a flex in rates. And it's a supply/demand environment. We see a lower rental rate on a project that's going to go multiyears that may consume hundreds of machines than we would on a project that's going to consume a handful of machines for a month or so. So those are just kind of the simple economics around that.

是的。嗯，正如您剛才充分概述的那樣，項目越長，項目就越大。更簡單地說，您在一個項目上長期投入的產品越多，您通常會看到費率的彈性。這是一個供需環境。我們發現，一個將持續多年、可能消耗數百台機器的項目的租金率比一個將消耗少量機器一個月左右的項目的租金率要低。這些只是簡單的經濟學原理。

That being stated, we're very happy with the yield that these projects produce. And I will also say to you that the price increased to 10% last year, the 9.5% was shown in the quarter, the [0.7%] we're showing sequentially, we're really proud of that number coming out in Q1 where it was as wet as it was. That reflects increase in rates among all of our project types and all of our customer types. So we're not -- we're certainly not looking to discount any products. But certainly in the rental business, you look at yield and you consider the duration and the quality of the job.

話雖如此，我們對這些項目產生的產量非常滿意。我還要對你說，去年價格上漲至 10%，本季度顯示了 9.5%，我們依次顯示了 [0.7%]，我們對第一季度出現的這個數字感到非常自豪，當時的情況和以前一樣潮濕。這反映了我們所有項目類型和所有客戶類型的費率增加。所以我們不會——我們當然不想對任何產品打折。但當然，在租賃業務中，您會關注收益並考慮工作的持續時間和質量。

Got it. Okay. And then just maybe lastly, used sale margins were surprisingly high. It's obviously been a point of concern for investors, that kind of look at the auction pricing. But are you -- is there anything out there that's suggesting to you that used prices might start to soften, whether it's more new equipment coming online or shifting more towards the auction channel or anything like that?

知道了。好的。最後，二手銷售利潤率高得驚人。對拍賣定價的關注顯然是投資者關注的一個問題。但是，是否有任何跡象表明二手價格可能會開始走軟，無論是更多新設備上線，還是更多轉向拍賣渠道或類似的方式？

There's not. I mean we were very proud of the performance of our operations and their achievement. But I think margins in that low to mid-50s and similar rate of fleet sales going forward for the rest of the year are right in line with our expectations, and I have no concerns that we're going to see any type of softening in the used equipment margins. We're happy, again, as I stated to Steven, that we're gathering the equipment as early as we are into our plan. But there's not an abundance of equipment in the marketplace, so it's going to keep it constrained for the foreseeable future.

沒有。我的意思是，我們對我們的運營績效和成就感到非常自豪。但我認為 50 年代中期的利潤率以及今年剩餘時間類似的機隊銷售率完全符合我們的預期，而且我不擔心我們會看到二手設備利潤率出現任何類型的疲軟。正如我對史蒂文所說的那樣，我們很高興再次在計劃中儘早收集設備。但市場上的設備並不豐富，因此在可預見的未來它將受到限制。

The next question is from Alex Rygiel with B. Riley.

下一個問題是 Alex Rygiel 和 B. Riley 提出的。

As investors felt the cycle at peak and/or utilization where rates had peaked, how would you respond to that?

當投資者感受到週期處於峰值和/或利用率達到峰值時，您對此有何反應？

I don't think -- I don't -- I can assure you that rates have not peaked at this point in time, and I don't think that utilization as an industry has peaked. It's interesting, Alex, when you asked the question, of course, speaking specifically with H&E. The number of new locations we've added over the last few years, coupled with the 10 to 15 we'll open this year, our persistent but balanced approach on increasing rental rates going forward and the substantial fleet growth, it's going to be a slight headwind on our year-over-year fiscal utilization.

我不認為——我不認為——我可以向你保證，此時費率尚未達到頂峰，而且我認為整個行業的利用率還沒有達到頂峰。很有趣，Alex，當你問這個問題時，當然是專門與 H&E 交談的。過去幾年我們新增的門店數量，加上今年將開設的 10 到 15 個門店，我們持續但平衡地提高未來租金率的方法，以及機隊的大幅增長，這將對我們的年度財政利用率產生輕微的阻力。

But I would want to indicate that we feel like the opportunity for our peak utilization is over. What that's a factor of are the variety of things we're focused on now that we're a pure-play rental business. Specifically, I'd want to point out the full year impact of those rental rates, all of these locations we're opening, we're exceeding our internal expectations consistently with warm starts. And I would point you to dollar utilization and other return metrics just to prove out how strong we can be with utilization.

但我想指出的是，我們認為高峰利用率的機會已經結束。這是因為我們現在是一家純粹的租賃業務，所以我們關注的事情多種多樣。具體來說，我想指出這些租金率對全年的影響，我們正在開設的所有這些地點，我們都超出了我們的內部預期，並始終保持著良好的開局。我會向您指出美元利用率和其他回報指標，只是為了證明我們的利用率有多強。

So while I don't think we're going -- well, I do think we're going to have a little headwind on our year-over-year utilization. I think the net result is going to be hugely positive. Nothing is peakish for us yet with the exception of if we run utilization similar to or less than last year while we get these other performance enhancements, we're going to be really happy, and I think that's what's going to happen.

因此，雖然我認為我們不會——嗯，但我確實認為我們的同比利用率將會遇到一些阻力。我認為最終結果將是非常積極的。對我們來說，沒有什麼是高峰，除瞭如果我們的利用率與去年相似或低於去年，同時我們獲得這些其他性能增強，我們將會非常高興，我認為這就是將會發生的事情。

And then can you discuss the expectation for improved rental penetration? And is there -- other than your warm starts, are there any other pressures on more favorable rental rates, in other words, to gain some of this penetration or market share? Do you find yourself having to reduce rates to a modest extent that might be a headwind to the even more positive rental rate number you're printing?

然後您能否討論一下提高租金滲透率的預期？除了您的熱情啟動之外，是否還有其他壓力要求更優惠的租金率，換句話說，以獲得一些滲透率或市場份額？您是否發現自己必須將利率降低到一定程度，這可能會對您正在打印的更積極的租金數字產生不利影響？

No, absolutely not. When we refer to penetration, it's a measure of the dollars spent by the customer base in the marketplace for rental assets as opposed to purchasing of assets. And being that we were founded as a crane distributor, we were one of the largest commodity earthmoving distributors for the better part of our 60-plus year history, we've witnessed, when there's times of economic uncertainty, people rent and they don't buy. Or they buy -- I should say they don't buy, they buy less, and so there's much less volatility.

不，絕對不是。當我們提到滲透率時，它是衡量客戶群在市場上租賃資產而不是購買資產所花費的美元的指標。由於我們是作為起重機經銷商成立的，因此在 60 多年的歷史中，我們一直是最大的商品土方工程經銷商之一，我們見證了，當經濟不穩定時期，人們只租而不買。或者他們買——我應該說他們不買，他們買得更少，所以波動性要小得多。

And when we're talking about penetration, it's really speaking of a shift. Secondarily from that, I think you can look that we're taking more market share. And while I don't get into quoting hypothetical market shares, you can look at our growth rates and we would compare favorably with anyone in the industry, and we'll continue to do so when it comes to growth.

當我們談論滲透時，實際上是在談論轉變。其次，我想你可以看到我們正在佔據更多的市場份額。雖然我不會引用假設的市場份額，但你可以看看我們的增長率，我們將與業內任何人進行比較，並且在增長方面我們將繼續這樣做。

And coming back to that last comment that you just made. Hypothetical scenario, if customers were not to buy, but they pursued a rental option given some uncertainty in the future, have you noticed any of those decisions being made at this point in time yet in the cycle?

回到你剛剛發表的最後評論。假設的情況是，如果客戶不購買，但鑑於未來的一些不確定性，他們尋求租賃選擇，您是否注意到在周期中此時做出的任何決定？

Look, it's -- no. It's very anecdotal in short window of the time, and that's why it's measured over broader periods of time. I can tell you I've been working here at H&E for 25 years, and we have consistently seen our traditional distribution customers, some slowly, some will rapidly migrate to the rental process. But the one thing you can count on is when a customer moves to using the rental process with any consistency, they do not go back to their buying ads.

看，這是——不。這是在短時間內發生的非常有趣的事情，這就是為什麼它是在更廣泛的時間段內進行測量的。我可以告訴你，我在 H&E 工作了 25 年，我們一直看到我們的傳統分銷客戶，有些慢慢地，有些會迅速遷移到租賃流程。但您可以信賴的一件事是，當客戶開始以任何一致性使用租賃流程時，他們不會再回到購買廣告。

Nice quarter.

不錯的季度。

The next question is from Stanley Elliott with Stifel.

下一個問題是 Stanley Elliott 和 Stifel 提出的。

This is Brian Brophy on for Stanley. I was hoping you could talk about the One Source integration, how that's gone relative to your expectations? And then any updated thoughts on how you're thinking about M&A and M&A pipeline?

我是斯坦利的布賴恩·布羅菲。我希望您能談談 One Source 集成，相對於您的期望，它的進展如何？那麼您對併購和併購管道的看法有什麼最新的想法嗎？

Sure. I'll take that, Brian. So first off, One Source. We fully integrated One Source last year from a system standpoint. We have them up and running on our platform. and they are performing well as expected. As far as M&A, the M&A pipeline still remains strong. There's lots of opportunities out there. We're consistently betting deals. And hopefully, we'll be able to capitalize on that this year, but we're going to continue to pursue acquisitions that meet our needs and fit what we're looking for.

當然。我會接受的，布萊恩。所以首先，一個來源。我們去年從系統的角度完全集成了 One Source。我們讓它們在我們的平台上啟動並運行。他們的表現符合預期。就併購而言，併購渠道仍然強勁。那裡有很多機會。我們一直在押注交易。希望今年我們能夠充分利用這一點，但我們將繼續尋求滿足我們需求並符合我們需求的收購。

Brian, let me add. As John just stated, our pipeline for acquisition opportunities is, relatively speaking, as strong as it has ever been. At the same time, we're as disciplined as we've ever been. We just simply will not overpay for poor assets in questionable markets or old rental fleets. And so we hope to continue to do 1 or 2 tuck-in acquisitions a year. But when you see us do an acquisition, you can know that it checked all of the boxes for us and that we take a somewhat of a conservative approach to deploying capital because we know we can continue to stamp out 10 to 15 locations a year and get substantial returns on those assets.

布萊恩，讓我補充一下。正如約翰剛才所說，相對而言，我們的收購機會渠道一如既往地強大。與此同時，我們一如既往地遵守紀律。我們只是不會為有問題的市場或舊租賃車隊的不良資產支付過高的費用。因此，我們希望繼續每年進行一兩次收購。但是，當您看到我們進行收購時，您會知道它為我們勾選了所有條件，並且我們在部署資本方面採取了某種保守的方法，因為我們知道我們可以繼續每年取消 10 到 15 個地點，並從這些資產中獲得可觀的回報。

Now it's not one or the other. We can do both. We've got more than enough adequate bandwidth for both internally, operationally. You can look at our balance sheet and see it supports substantially more than we're investing. So as John said, hopefully get 1 or 2 done this year. Pipeline is strong, but we're going to remain disciplined with where we deploy our capital with acquisitions.

現在已經不是一個或另一個了。我們可以兩者兼得。我們已經為內部和運營提供了足夠的帶寬。您可以查看我們的資產負債表，發現它提供的支持遠多於我們的投資。正如約翰所說，希望今年能完成 1 到 2 項工作。管道很強大，但我們將繼續嚴格控制我們通過收購來部署資本的地方。

That's really helpful. And then kind of touching on a comment you made. Thinking about the longer-term outlook for warm starts, how much visibility is there in the ability to open 10 to 15 a year? Is this a multiyear opportunity? I guess, how do we think about that?

這真的很有幫助。然後談到你發表的評論。考慮到熱啟動的長期前景，一年開10到15個的能見度有多大？這是一個多年的機會嗎？我想，我們如何看待這個問題？

Yes. Look, I think this is our opportunity going forward. The only reason we do not open 10 to 15 locations on a go-forward basis would be an economic disruption that we don't see yet. If we were to see a severe recessionary period, we're not going to continue opening at the same pace. But bar that type of situation, you should expect us to open 10 to 15 locations a year in high-growth markets that are stable and will serve the company and our investors well for decades to come.

是的。聽著，我認為這是我們前進的機會。我們不繼續開設 10 到 15 個地點的唯一原因是我們尚未看到的經濟混亂。如果我們經歷嚴重的衰退期，我們就不會繼續以同樣的速度開放。但除非出現這種情況，您應該期望我們每年在高增長市場開設 10 到 15 個穩定的分支機構，並在未來幾十年內為公司和我們的投資者提供良好的服務。

Got it. That's helpful. And then last one for me. Obviously, your fleet age continues to creep higher. You guys have historically run a much younger fleet kind of curious as to how you're approaching that. Any changes in how you're thinking about fleet age and how we should think about fleet age changing going forward as equipment availability improves?

知道了。這很有幫助。然後是我的最後一張。顯然，您的機隊年齡繼續增加。你們歷來經營著一支年輕得多的艦隊，對你們如何實現這一目標感到好奇。隨著設備可用性的提高，您對機隊年齡的看法有什麼變化，以及我們應該如何考慮未來機隊年齡的變化？

Sure. Our fleet age is really not -- I mean, I think you creep forward 1/10 of a month or something quarter-over-quarter, there was -- if you were to look at last quarter when One Source came on, you saw a little bit of a notable increase then because they had an aged rental fleet. That being said, we're closer to a year younger than industry average than we are away from it.

當然。我們的機隊年齡確實不是——我的意思是，我認為你會按季度向前推進 1/10 或類似的情況——如果你看看上個季度 One Source 出現時，你會發現當時有一點顯著的增長，因為他們有一支老化的租賃機隊。話雖這麼說，我們比行業平均水平更接近年輕一歲。

So we have a very young fleet. If we want to age our fleet further, we're in a position to do so. And so again, I don't know if it's -- we're 10, 11 much younger than the industry average today. Say it differently, we could age it that much and be like everyone else. But we kind of like this younger profile with our rapid growth we have planned with this branch expansion and some same-store growth. I think you should expect to see us kind of continue to hover in the range we are and not have a material aging issue. But please be reminded, we have a very young rental fleet relative to our competitors.

所以我們有一支非常年輕的機隊。如果我們想進一步老化我們的機隊，我們有能力這樣做。再說一次，我不知道我們是否比今天的行業平均水平年輕 10、11 歲。換句話說，我們可以老到和其他人一樣。但我們有點喜歡這種年輕的形象，因為我們的快速增長已經計劃了分店擴張和同店增長。我認為你應該期望看到我們繼續徘徊在我們目前的範圍內，並且不會出現材料老化問題。但請注意，與競爭對手相比，我們的租賃車隊非常年輕。

(Operator Instructions) The next question is from Avi Jaroslawicz.

（操作員說明）下一個問題來自 Avi Jaroslawicz。

It's Steve Fisher. So just want to get into time utilization a little bit. As we're thinking about the year progressing, you expect utilization to build seasonally, but you also called out weather impacts for Q1. So how should we be thinking about the change year-over-year in time utilization through time, I think, in Q1? Do you expect that to narrow as the year goes on? Or expect to stay about the same?

我是史蒂夫·費舍爾。所以只想稍微了解一下時間利用。當我們考慮今年的進展時，您預計利用率會季節性增加，但您也指出了第一季度的天氣影響。那麼，我認為，我們應該如何考慮第一季度時間利用率隨時間的同比變化？您預計隨著時間的推移，這一數字會縮小嗎？或者期望保持不變？

I think it would probably narrow a little bit. But I think as I stated earlier, I think we're going to have a little headwind on our physical utilization peak. You should expect between now and the end of October, where we traditionally peak, that we continue to get incremental gains in physical utilization. As we sit here in Baton Rouge, this morning, we're bumping up against 70% utilization this week. And so we're not in the busy part of our season yet. It's -- we are right where we expect it to be, including with the rate gains and the growth. So we're going to be a little behind on a year-over-year utilization comp, but I think more importantly, well ahead on all of the other drivers and subsequently our return metrics and profitability.

我認為它可能會縮小一點。但我認為正如我之前所說，我認為我們的物理利用率峰值將會遇到一些阻力。您應該預計從現在到 10 月底（傳統上達到峰值），我們的物理利用率將繼續獲得增量收益。今天早上，當我們坐在巴吞魯日時，本週的利用率將達到 70%。所以我們還沒有進入季節的繁忙階段。我們正處於我們預期的位置，包括利率上漲和經濟增長。因此，我們在同比利用率方面會稍微落後，但我認為更重要的是，在所有其他驅動因素以及隨後的回報指標和盈利能力方面都遙遙領先。

Got it. And so just turning to CapEx. So looking at your fleet mix, AWP is down 3 percentage points from same period last year. The age is up for AWP, flat in material handling, down in earthmoving. So just as we think about the mix within CapEx, yes, how should we be thinking about that? I'm assuming you're trying to rebalance the fleet. Seem to imply that everything besides AWP would be down in terms of volumes. Is that the right way to think about it?

知道了。所以就轉向資本支出。因此，從機隊結構來看，AWP 比去年同期下降了 3 個百分點。 AWP 的時代已到，物料搬運領域持平，土方運輸領域下降。因此，正如我們考慮資本支出中的組合一樣，是的，我們應該如何考慮這一點？我假設你正在嘗試重新平衡艦隊。似乎暗示除了 AWP 之外的所有產品的數量都會下降。這是正確的思考方式嗎？

Well, I don't think it's a volume issue as much as a percent of the mix, right? And so we have been very intentional. We love our aerial work platforms. It's still a very meaningful piece of our overall investment, and we'll continue to be. We're not having a reconfiguration, but what you see is very thoughtful fleet management, and we clearly are going to manage to where the opportunities are to improve returns and serve our customers. And over the last 12-month period that you're referring to, we intentionally brought down some of the AWP components and redeployed more capital into other areas where we see higher returns and better future opportunity.

嗯，我不認為這是一個數量問題，而是混合比例的問題，對吧？所以我們是非常有意的。我們喜歡我們的高空作業平台。這仍然是我們整體投資中非常有意義的一部分，而且我們將繼續如此。我們沒有進行重新配置，但您看到的是非常周到的車隊管理，我們顯然將抓住機會提高回報並為我們的客戶提供服務。在您提到的過去 12 個月期間，我們有意減少了一些 AWP 組件，並將更多資本重新部署到我們看到更高回報和更好未來機會的其他領域。

Okay. That makes sense. And then just lastly for me. So also looking at your end market mix, the residential vertical has really kept pace with the rest of the business, which I think is a little surprising. Can you just discuss some of the dynamics that you're seeing there? And also, can you remind us how much of your nonres exposure is commercial?

好的。這就說得通了。最後對我來說。因此，從終端市場組合來看，住宅垂直領域確實與其他業務保持同步，我認為這有點令人驚訝。您能談談您在那裡看到的一些動態嗎？另外，您能否提醒我們，您的非資源曝光中有多少是商業性的？

How much of our nonres exposure is rental? Was that the last...

我們的非房地產投資中有多少是租賃？那是最後一次嗎...

Is commercial?

是商業的嗎？

It's a small piece. It's certainly larger than then residential, which is like almost nothing in our business and anything we have is tied to multifamily. Commercial, it varies depending on the region and the projects that are going on at a particular point in time. So -- and we do plenty of commercial work, but it would depend on what type of commercial work you're speaking of.

這是一小塊。它肯定比當時的住宅更大，這在我們的業務中幾乎沒有什麼，我們擁有的任何東西都與多戶住宅相關。商業方面，它根據地區和特定時間點正在進行的項目而有所不同。所以——我們做了很多商業工作，但這取決於你所說的商業工作類型。

Congrats for the quarter.

恭喜本季度。

This concludes our question-and-answer session. I would like to turn the conference back over to Jeff Chastain for any closing remarks.

我們的問答環節到此結束。我想將會議轉回傑夫·查斯坦（Jeff Chastain）發表閉幕詞。

Okay. Well, thank you, and we appreciate everyone taking the time today to join us, and we look forward to speaking with you again. Good day, everyone.

好的。好的，謝謝您，我們感謝大家今天抽出時間加入我們，我們期待再次與您交談。今天是個好日子。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。