BATON ROUGE, La.--(BUSINESS WIRE)--Aug. 20, 2012--
H&E Equipment Services, Inc. (NASDAQ: HEES) (the “Company”) today
announced that its Board of Directors declared a one-time special cash
dividend (the “Dividend”) of $7.00 per share, payable on September 19,
2012 to stockholders of record at the close of business on September 5,
2012. The aggregate amount of the payment to be made in connection with
the Dividend will be approximately $246 million. The Dividend will be
funded by the proceeds of the Company’s offering of $530 million
aggregate principal amount of 7% senior notes due 2022, which closed on
August 20, 2012.
At $7 per share, the Dividend represents approximately 39.8% of the
Company’s opening stock price on August 20, 2012. Pursuant to the rules
of the NASDAQ Stock Market, when a dividend is declared in a per share
amount that exceeds 25% of a company’s stock price, the date on which
that company’s shares will begin to trade without the dividend, or
ex-dividend, is the first business day following the payable date. The
Company understands from NASDAQ that, because the Dividend is expected
to exceed 25% of the Company’s share price, NASDAQ will apply this rule,
and the Company expects, in accordance with this rule, that the
ex-dividend date as set by NASDAQ will be September 20, 2012, the first
business day following the payable date for the Dividend.
The portion of the Company’s Dividend that will be treated as a
qualified dividend for U.S. tax purposes will depend upon the amount of
the Company’s accumulated earnings and profits as of December 31, 2012,
the end of the Company’s current fiscal year, as determined by the
Internal Revenue Code. Therefore, at this time the Company is not able
to determine the portion of the Dividend that will be treated as a
qualified dividend. Stockholders will receive further information on
Form 1099 after the end of 2012 and are encouraged to consult with their
own tax advisors regarding the tax treatment of the Dividend.
About H&E Equipment Services, Inc.
The Company is one of the largest integrated equipment services
companies in the United States with 65 full-service facilities
throughout the West Coast, Intermountain, Southwest, Gulf Coast,
Mid-Atlantic and Southeast regions of the United States. The Company is
focused on heavy construction and industrial equipment and rents, sells
and provides parts and service support for four core categories of
specialized equipment: (1) hi-lift or aerial platform equipment;
(2) cranes; (3) earthmoving equipment; and (4) industrial lift trucks.
By providing equipment rental, sales, and on-site parts, repair and
maintenance functions under one roof, the Company is a one-stop provider
for its customers’ varied equipment needs. This full service approach
provides the Company with multiple points of customer contact, enabling
it to maintain a high quality rental fleet, as well as an effective
distribution channel for fleet disposal and provides cross-selling
opportunities among its new and used equipment sales, rental, parts
sales and service operations.
Certain statements contained herein are “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" 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) the Company’s future
financial performance and prospects for future earnings and (2) 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
Quarterly Report on Form 10-Q. 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 hereof.
Source: H&E Equipment Services, Inc.
H&E Equipment Services, Inc.
Leslie S. Magee, 225-298-5261
Communications, Inc. (CCI)
Kevin S. Inda, 407-566-1180