H&E Equipment Services, Inc. (NASDAQ: HEES) 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% of the Company’s stock price. HEES has a market cap of $633 million.
On August 2, H&E Equipment Services reported Q2 earnings of $0.30 per share, versus the Capital IQ consensus of $0.24. Revenues were $209 million, versus the analyst estimate of $206.59 million. In the same period last year, the company reported EPS of $0.08 on revenues of $184.34 million.
H&E Equipment Services, Inc. operates as an integrated equipment services company. The company rents, sells, and provides parts and service support for hi-lift or aerial work platform equipment, crane, earthmoving equipment, and industrial lift truck categories.