Herc Holdings Reports Full Year 2024 Results and Announces 2025 Full Year Guidance
Herc Holdings (NYSE: HRI) reported its Q4 and full-year 2024 results, achieving record equipment rental revenue of $839 million (+12%) and $3,189 million (+11%) respectively. The company posted a Q4 net loss of $46 million due to Cinelease assets held for sale, but adjusted net income increased 11% to $102 million.
Full-year 2024 highlights include total revenues of $3,568 million (+9%), rental pricing increase of 3.2%, and adjusted EBITDA of $1,583 million (+9%). The company completed 9 acquisitions and opened 23 new greenfield locations. For 2025, excluding Cinelease, Herc projects equipment rental revenue growth of 4-6% and adjusted EBITDA between $1.575-1.650 billion.
Net leverage remained stable at 2.5x with $1.9 billion in liquidity. The company declared a quarterly dividend of $0.665 per share.
Herc Holdings (NYSE: HRI) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, registrando un fatturato record per il noleggio di attrezzature di $839 milioni (+12%) e $3.189 milioni (+11%) rispettivamente. L'azienda ha registrato una perdita netta di $46 milioni nel quarto trimestre a causa degli asset di Cinelease detenuti per la vendita, ma l'utile netto rettificato è aumentato dell'11% a $102 milioni.
Tra i punti salienti dell'anno intero 2024 ci sono ricavi totali di $3.568 milioni (+9%), un aumento del prezzo di noleggio del 3,2% e un EBITDA rettificato di $1.583 milioni (+9%). L'azienda ha completato 9 acquisizioni e aperto 23 nuove sedi greenfield. Per il 2025, escludendo Cinelease, Herc prevede una crescita del fatturato da noleggio di attrezzature del 4-6% e un EBITDA rettificato compreso tra $1.575 e $1.650 miliardi.
Il rapporto di indebitamento netto è rimasto stabile a 2,5x con $1,9 miliardi in liquidità. L'azienda ha dichiarato un dividendo trimestrale di $0,665 per azione.
Herc Holdings (NYSE: HRI) reportó sus resultados del cuarto trimestre y del año completo 2024, logrando un ingreso récord por alquiler de equipos de $839 millones (+12%) y $3,189 millones (+11%) respectivamente. La compañía registró una pérdida neta de $46 millones en el cuarto trimestre debido a los activos de Cinelease mantenidos para la venta, pero el ingreso neto ajustado aumentó un 11% a $102 millones.
Los aspectos destacados del año completo 2024 incluyen ingresos totales de $3,568 millones (+9%), un aumento en los precios de alquiler del 3.2% y un EBITDA ajustado de $1,583 millones (+9%). La empresa completó 9 adquisiciones y abrió 23 nuevas ubicaciones de campo verde. Para 2025, excluyendo a Cinelease, Herc proyecta un crecimiento en los ingresos por alquiler de equipos del 4-6% y un EBITDA ajustado entre $1.575 y $1.650 mil millones.
El apalancamiento neto se mantuvo estable en 2.5x con $1.9 mil millones en liquidez. La compañía declaró un dividendo trimestral de $0.665 por acción.
Herc Holdings (NYSE: HRI)는 2024년 4분기 및 전체 연도 실적을 발표하며, 장비 임대 수익이 $839백만(+12%) 및 $3,189백만(+11%)으로 기록적인 수치를 달성했습니다. 회사는 판매를 위해 보유하고 있는 Cinelease 자산으로 인해 4분기에 $46백만의 순손실을 기록했지만, 조정된 순이익은 11% 증가한 $102백만에 달했습니다.
2024년 전체 연도의 주요 내용으로는 총 수익이 $3,568백만(+9%), 임대 가격이 3.2% 증가했으며 조정된 EBITDA는 $1,583백만(+9%)에 달했습니다. 회사는 9건의 인수합병을 완료하고 23개의 새로운 그린필드 위치를 열었습니다. 2025년에는 Cinelease를 제외하고 장비 임대 수익이 4-6% 성장할 것으로 예상하며, 조정된 EBITDA는 $1.575-1.650억 달러 사이가 될 것으로 전망하고 있습니다.
순부채비율은 2.5배로 안정적으로 유지되었으며, $1.9억 달러의 유동성을 보유하고 있습니다. 회사는 주당 $0.665의 분기 배당금을 선언했습니다.
Herc Holdings (NYSE: HRI) a publié ses résultats du quatrième trimestre et de l'année complète 2024, atteignant un chiffre d'affaires record pour la location d'équipements de 839 millions USD (+12%) et de 3,189 millions USD (+11%) respectivement. L'entreprise a enregistré une perte nette de 46 millions USD au quatrième trimestre en raison des actifs de Cinelease détenus à la vente, mais le revenu net ajusté a augmenté de 11% pour atteindre 102 millions USD.
Les points forts de l'année complète 2024 incluent des revenus totaux de 3,568 millions USD (+9%), une augmentation des prix de location de 3,2% et un EBITDA ajusté de 1,583 millions USD (+9%). L'entreprise a réalisé 9 acquisitions et ouvert 23 nouveaux sites en greenfield. Pour 2025, hors Cinelease, Herc prévoit une croissance du chiffre d'affaires de location d'équipements de 4 à 6% et un EBITDA ajusté entre 1,575 et 1,650 milliards USD.
Le ratio d'endettement net est resté stable à 2,5x avec 1,9 milliard USD de liquidités. L'entreprise a déclaré un dividende trimestriel de 0,665 USD par action.
Herc Holdings (NYSE: HRI) hat seine Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 bekannt gegeben und dabei einen Rekordumsatz aus Gerätevermietungen von 839 Millionen USD (+12%) und 3.189 Millionen USD (+11%) erzielt. Das Unternehmen verzeichnete im 4. Quartal einen Nettoverlust von 46 Millionen USD aufgrund von zum Verkauf gehaltenen Cinelease-Vermögenswerten, aber das bereinigte Nettoergebnis stieg um 11% auf 102 Millionen USD.
Zu den Highlights des gesamten Jahres 2024 gehören Gesamterlöse von 3.568 Millionen USD (+9%), eine Erhöhung der Mietpreise um 3,2% und ein bereinigtes EBITDA von 1.583 Millionen USD (+9%). Das Unternehmen hat 9 Akquisitionen abgeschlossen und 23 neue Greenfield-Standorte eröffnet. Für 2025 prognostiziert Herc, abgesehen von Cinelease, ein Wachstum des Gerätevermietungsumsatzes von 4-6% und ein bereinigtes EBITDA zwischen 1,575 und 1,650 Milliarden USD.
Die Nettoverschuldung blieb stabil bei 2,5x mit 1,9 Milliarden USD an Liquidität. Das Unternehmen erklärte eine vierteljährliche Dividende von 0,665 USD pro Aktie.
- Record equipment rental revenue growth of 11% to $3,189 million in 2024
- Adjusted EBITDA increased 9% to $1,583 million with improved margin of 44.4%
- Successful expansion with 9 acquisitions and 23 new locations
- Strong liquidity position of $1.9 billion
- Rental pricing increased 3.2% year-over-year
- Q4 net loss of $46 million due to Cinelease assets write-down
- Interest expense increased to $260 million from $224 million
- Higher effective tax rate of 27% vs 22% previous year
- Direct operating expenses increased to 40.5% of rental revenue from 39.7%
- Lower projected growth for 2025 (4-6%) compared to 2024 (11%)
Insights
Herc Holdings delivered a robust performance in 2024, with several key metrics deserving careful analysis. The 11% growth in equipment rental revenue to
The company's operational efficiency remains strong, evidenced by the improvement in adjusted EBITDA margin to
Three critical factors warrant investor attention:
- The planned divestiture of Cinelease, while causing a short-term accounting loss, should streamline operations and potentially improve overall margins
- Fleet management metrics show disciplined capital deployment, with average fleet age at 46 months indicating a well-maintained portfolio without aging concerns
- The
4-6% revenue growth guidance for 2025 appears conservative, suggesting management's cautious approach to market uncertainties, particularly in local markets
The company's strategic positioning in mega projects while maintaining a 2.5x net leverage ratio provides flexibility for future growth opportunities. The reduction in planned capital expenditure for 2025 (
Fourth Quarter 2024 Highlights
-
Record equipment rental revenue of
$839 million 12% -
Record total revenues of
$951 million 14% -
Rental pricing increased
2.1% year-over-year -
Reported net loss of
$46 million $1.62 -
Adjusted net income of
$102 million $3.58 11% increase -
Adjusted EBITDA of
$438 million 15% ; adjusted EBITDA margin of46.1%
Full Year 2024 Highlights
-
Record equipment rental revenue of
$3,189 million 11% -
Record total revenues of
$3,568 million 9% -
Rental pricing increased
3.2% year-over-year -
Reported net income of
$211 million $7.40 -
Adjusted net income of
$367 million $12.88 5% -
Adjusted EBITDA of
$1,583 million 9% ; adjusted EBITDA margin of44.4% -
Free cash flow of
$314 million
"In 2024, despite a more challenging market than anticipated, we delivered another year of record results, significantly outperforming industry revenue growth by leveraging the strength of tenured customer relationships, the value derived from strategic capital-allocation priorities and our diversified position across products, geographies and end markets," said Larry Silber, president and chief executive officer.
"While the higher-for-longer interest rate environment continues to pressure local market growth, we captured an outsized share of national account mega projects last year. We also completed nine acquisitions, supporting market consolidation and positioning our company for long-term growth opportunities and greater efficiencies of scale. Strategic pricing, agile fleet management, and enterprise-wide cost controls helped to sustain margins in this dynamic environment.
"The 2025 operating landscape is still lacking good clarity. We are monitoring industry opportunities and believe the diversity of our business model, asset optimization and prudent investments will allow us to navigate local market pressure again this year, while capitalizing on incremental new mega project starts. Long term, we expect new government policies and spending initiatives will expand opportunities for Herc and our industry.”
2024 Fourth Quarter Financial Results
-
Total revenues increased
14% to$951 million $831 million $120 million $91 million 2.1% and increased volume of11.6% . Sales of rental equipment increased by$28 million
-
Dollar utilization decreased to
40.6% in the fourth quarter compared to40.9% in the prior-year period.
-
Direct operating expenses were
$324 million 38.6% of equipment rental revenue, compared to$287 million 38.4% in the prior-year period. The increase related primarily to the growth of the business with personnel and facilities costs associated with greenfields and acquisitions.
-
Depreciation of rental equipment increased
10% to$180 million 21% to$35 million
-
Selling, general and administrative expenses were
$122 million 14.5% of equipment rental revenue, compared to$116 million 15.5% in the prior-year period. The decrease as a percent of rental revenue was due to continued focus on improving operating leverage while expanding revenues.
-
Interest expense increased to
$67 million $62 million
-
Loss on assets held for sale was
$194 million
-
Net loss was
$46 million $91 million 11% to$102 million $3.58 $92 million $3.24
-
Adjusted EBITDA increased
15% to$438 million $382 million 46.1% compared to46.0% in the prior-year period.
2024 Full Year Financial Results
-
Total revenues increased
9% to$3,568 million $3,282 million $286 million $319 million 11% , reflecting positive pricing of3.2% and increased volume of9.3% , partially offset by unfavorable mix driven primarily by inflation. Sales of rental equipment decreased by$35 million
-
Dollar utilization increased to
40.9% compared to40.8% in the prior-year period.
-
Direct operating expenses were
$1,291 million 40.5% of equipment rental revenue, compared to$1,139 million 39.7% in the prior-year period. The increase related primarily to the growth of the business with personnel, facilities, maintenance and re-rent expense increases associated with greenfields and acquisitions. Additionally, insurance expense increased, primarily related to increased self insurance reserves due to claims development attributable to unsettled cases and growth of the business. Finally, an increase in delivery expenses were due to higher volume of transactions and internal transfers of equipment to branches in higher growth regions to drive fleet efficiency.
-
Depreciation of rental equipment increased
6% to$679 million 13% to$127 million
-
Selling, general and administrative expenses were
$480 million 15.1% of equipment rental revenue, compared to$448 million 15.6% in the prior-year period. The decrease as a percent of rental revenue was due to continued focus on improving operating leverage while expanding revenues.
-
Interest expense increased to
$260 million $224 million
-
Loss on assets held for sale was
$194 million
-
Net income was
$211 million $347 million $367 million $12.88 5% , compared to$353 million $12.30 27% compared to22% in the prior-year period. The rate increase was driven by the non-deductible goodwill impairment in 2024, a reduction in the benefit related to stock-based compensation, and certain other non-deductible expenses.
-
Adjusted EBITDA increased
9% to$1,583 million $1,452 million 44.4% compared to44.2% in the prior-year period.
Rental Fleet
- Net rental equipment capital expenditures were as follows (in millions):
|
Year Ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Rental equipment expenditures |
$ |
1,048 |
|
|
$ |
1,320 |
|
Proceeds from disposal of rental equipment |
|
(288 |
) |
|
|
(325 |
) |
Net rental equipment capital expenditures |
$ |
760 |
|
|
$ |
995 |
|
-
As of December 31, 2024, the Company's total fleet was approximately
$7.0 billion
-
Average fleet at OEC in the fourth quarter increased
13% compared to the prior-year period and increased11% for the year.
- Average fleet age was 46 months as of December 31, 2024 compared to 45 months in the comparable prior-year period.
Disciplined Capital Management
- The Company completed 9 acquisitions with a total of 28 locations and opened 23 new greenfield locations during the twelve months ended December 31, 2024.
-
Net debt was
$4.0 billion $1.9 billion
-
The Company declared its quarterly dividend of
$0.66 5
2025 Outlook - Excluding Cinelease
The Company is announcing its full year 2025 equipment rental revenue growth, adjusted EBITDA, and gross and net rental capital expenditures guidance ranges, excluding Cinelease studio entertainment and lighting and grip equipment rental business. The sale process for the Cinelease studio entertainment business is ongoing and a transaction is expected to be complete in 2025.
|
Current |
Equipment rental revenue growth: |
|
Adjusted EBITDA: |
|
Net rental equipment capital expenditures: |
|
Gross capex: |
|
As a leader in an industry where scale matters, the Company expects to continue to gain share by capturing an outsized position of the forecasted higher construction spending in 2025 by investing in its fleet, optimizing its existing fleet, capitalizing on strategic acquisitions and greenfield opportunities, and cross-selling a diversified product portfolio.
Earnings Call and Webcast Information
Herc Holdings' fourth quarter 2024 earnings webcast will be held today at 8:30 a.m.
Those who wish to listen to the live conference call and view the accompanying presentation slides should visit the Events and Presentations tab of the Investor Relations section of the Company's website at IR.HercRentals.com. The press release and presentation slides for the call will be posted to this section of the website prior to the call.
A replay of the conference call will be available via webcast on the Company website at IR.HercRentals.com, where it will be archived for 12 months after the call.
About Herc Holdings Inc.
Founded in 1965, Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier with 451 locations across
Certain Additional Information
In this release we refer to the following operating measures:
- Dollar utilization: calculated by dividing rental revenue (excluding re-rent, delivery, pick-up and other ancillary revenue) by the average OEC of the equipment fleet for the relevant time period, based on the guidelines of the American Rental Association (ARA).
- OEC: original equipment cost based on the guidelines of the ARA, which is calculated as the cost of the asset at the time it was first purchased plus additional capitalized refurbishment costs (with the basis of refurbished assets reset at the refurbishment date).
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, and the Private Securities Litigation Reform Act of 1995. Forward looking statements are generally identified by the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," "looks," and future or conditional verbs, such as "will," "should," "could" or "may," as well as variations of such words or similar expressions. All forward-looking statements are based upon our current expectations and various assumptions and there can be no assurance that our current expectations will be achieved. You should not place undue reliance on the forward-looking statements. They are subject to future events, risks and uncertainties - many of which are beyond our control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following: (1) the cyclical nature of our industry and our dependence on the levels of capital investment and maintenance expenditures by our customers; (2) the competitiveness of our industry, including the potential downward pricing pressures or the inability to increase prices; (3) our dependence on relationships with key suppliers; (4) our heavy reliance on communication networks, centralized information technology systems and third party technology and services and our ability to maintain, upgrade or replace our information technology systems; (5) our ability to respond adequately to changes in technology and customer demands; (6) our ability to attract and retain key management, sales and trades talent; (7) our rental fleet is subject to residual value risk upon disposition; (8) the impact of climate change and the legal and regulatory responses to such change; (9) our ability to execute our strategy to grow through strategic transactions; and (10) our significant indebtedness. Further information on the risks that may affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and in our other SEC filings. We undertake no obligation to update or revise forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.
Information Regarding Non-GAAP Financial Measures
In addition to results calculated according to accounting principles generally accepted in
(See Accompanying Tables)
HERC HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues: |
|
|
|
|
|
|
|
||||||||
Equipment rental |
$ |
839 |
|
|
$ |
748 |
|
|
$ |
3,189 |
|
|
$ |
2,870 |
|
Sales of rental equipment |
|
96 |
|
|
|
68 |
|
|
|
311 |
|
|
|
346 |
|
Sales of new equipment, parts and supplies |
|
9 |
|
|
|
9 |
|
|
|
37 |
|
|
|
38 |
|
Service and other revenue |
|
7 |
|
|
|
6 |
|
|
|
31 |
|
|
|
28 |
|
Total revenues |
|
951 |
|
|
|
831 |
|
|
|
3,568 |
|
|
|
3,282 |
|
Expenses: |
|
|
|
|
|
|
|
||||||||
Direct operating |
|
324 |
|
|
|
287 |
|
|
|
1,291 |
|
|
|
1,139 |
|
Depreciation of rental equipment |
|
180 |
|
|
|
163 |
|
|
|
679 |
|
|
|
643 |
|
Cost of sales of rental equipment |
|
67 |
|
|
|
51 |
|
|
|
224 |
|
|
|
252 |
|
Cost of sales of new equipment, parts and supplies |
|
6 |
|
|
|
6 |
|
|
|
24 |
|
|
|
25 |
|
Selling, general and administrative |
|
122 |
|
|
|
116 |
|
|
|
480 |
|
|
|
448 |
|
Non-rental depreciation and amortization |
|
35 |
|
|
|
29 |
|
|
|
127 |
|
|
|
112 |
|
Interest expense, net |
|
67 |
|
|
|
62 |
|
|
|
260 |
|
|
|
224 |
|
Loss on assets held for sale |
|
194 |
|
|
|
— |
|
|
|
194 |
|
|
|
— |
|
Other expense (income), net |
|
(1 |
) |
|
|
(6 |
) |
|
|
(2 |
) |
|
|
(8 |
) |
Total expenses |
|
994 |
|
|
|
708 |
|
|
|
3,277 |
|
|
|
2,835 |
|
Income (loss) before income taxes |
|
(43 |
) |
|
|
123 |
|
|
|
291 |
|
|
|
447 |
|
Income tax provision |
|
(3 |
) |
|
|
(32 |
) |
|
|
(80 |
) |
|
|
(100 |
) |
Net income (loss) |
$ |
(46 |
) |
|
$ |
91 |
|
|
$ |
211 |
|
|
$ |
347 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
28.4 |
|
|
|
28.2 |
|
|
|
28.4 |
|
|
|
28.5 |
|
Diluted |
|
28.4 |
|
|
|
28.4 |
|
|
|
28.5 |
|
|
|
28.7 |
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(1.62 |
) |
|
$ |
3.23 |
|
|
$ |
7.43 |
|
|
$ |
12.18 |
|
Diluted |
$ |
(1.62 |
) |
|
$ |
3.20 |
|
|
$ |
7.40 |
|
|
$ |
12.09 |
|
A - 1 |
|||||||||||||||
HERC HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) |
|||||||
|
December 31, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
83 |
|
$ |
71 |
||
Receivables, net of allowances |
|
589 |
|
|
|
563 |
|
Prepaid expenses |
|
47 |
|
|
|
30 |
|
Other current assets |
|
40 |
|
|
|
47 |
|
Current assets held for sale |
|
17 |
|
|
|
21 |
|
Total current assets |
|
776 |
|
|
|
732 |
|
Rental equipment, net |
|
4,225 |
|
|
|
3,831 |
|
Property and equipment, net |
|
554 |
|
|
|
465 |
|
Right-of-use lease assets |
|
852 |
|
|
|
665 |
|
Intangible assets, net |
|
572 |
|
|
|
467 |
|
Goodwill |
|
670 |
|
|
|
483 |
|
Other long-term assets |
|
8 |
|
|
|
10 |
|
Long-term assets held for sale |
|
220 |
|
|
|
408 |
|
Total assets |
$ |
7,877 |
|
|
$ |
7,061 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
Current maturities of long-term debt and financing obligations |
$ |
21 |
|
|
$ |
19 |
|
Current maturities of operating lease liabilities |
|
39 |
|
|
|
37 |
|
Accounts payable |
|
248 |
|
|
|
212 |
|
Accrued liabilities |
|
239 |
|
|
|
221 |
|
Current liabilities held for sale |
|
15 |
|
|
|
19 |
|
Total current liabilities |
|
562 |
|
|
|
508 |
|
Long-term debt, net |
|
4,069 |
|
|
|
3,673 |
|
Financing obligations, net |
|
101 |
|
|
|
104 |
|
Operating lease liabilities |
|
842 |
|
|
|
646 |
|
Deferred tax liabilities |
|
800 |
|
|
|
743 |
|
Other long term liabilities |
|
47 |
|
|
|
46 |
|
Long-term liabilities held for sale |
|
60 |
|
|
|
68 |
|
Total liabilities |
|
6,481 |
|
|
|
5,788 |
|
Total equity |
|
1,396 |
|
|
|
1,273 |
|
Total liabilities and equity |
$ |
7,877 |
|
|
$ |
7,061 |
|
A - 2 |
|||||||
HERC HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) |
|||||||
|
Year Ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
211 |
|
|
$ |
347 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation of rental equipment |
|
679 |
|
|
|
643 |
|
Depreciation of property and equipment |
|
82 |
|
|
|
71 |
|
Amortization of intangible assets |
|
45 |
|
|
|
41 |
|
Amortization of deferred debt and financing obligations costs |
|
5 |
|
|
|
4 |
|
Stock-based compensation charges |
|
17 |
|
|
|
18 |
|
Provision for receivables allowances |
|
70 |
|
|
|
65 |
|
Loss on assets held for sale |
|
194 |
|
|
|
— |
|
Deferred taxes |
|
59 |
|
|
|
89 |
|
Gain on sale of rental equipment |
|
(87 |
) |
|
|
(94 |
) |
Other |
|
12 |
|
|
|
1 |
|
Changes in assets and liabilities: |
|
|
|
||||
Receivables |
|
(62 |
) |
|
|
(98 |
) |
Other assets |
|
(26 |
) |
|
|
(22 |
) |
Accounts payable |
|
2 |
|
|
|
7 |
|
Accrued liabilities and other long-term liabilities |
|
24 |
|
|
|
14 |
|
Net cash provided by operating activities |
|
1,225 |
|
|
|
1,086 |
|
Cash flows from investing activities: |
|
|
|
||||
Rental equipment expenditures |
|
(1,048 |
) |
|
|
(1,320 |
) |
Proceeds from disposal of rental equipment |
|
288 |
|
|
|
325 |
|
Non-rental capital expenditures |
|
(161 |
) |
|
|
(156 |
) |
Proceeds from disposal of property and equipment |
|
10 |
|
|
|
15 |
|
Acquisitions, net of cash acquired |
|
(600 |
) |
|
|
(430 |
) |
Other investing activities |
|
— |
|
|
|
(15 |
) |
Net cash used in investing activities |
|
(1,511 |
) |
|
|
(1,581 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of long-term debt |
|
800 |
|
|
|
— |
|
Proceeds from revolving lines of credit and securitization |
|
2,008 |
|
|
|
2,127 |
|
Repayments on revolving lines of credit and securitization |
|
(2,399 |
) |
|
|
(1,387 |
) |
Principal payments under finance lease and financing obligations |
|
(19 |
) |
|
|
(16 |
) |
Dividends paid |
|
(77 |
) |
|
|
(73 |
) |
Repurchase of common stock |
|
— |
|
|
|
(120 |
) |
Other financing activities, net |
|
(14 |
) |
|
|
(19 |
) |
Net cash provided by financing activities |
|
299 |
|
|
|
512 |
|
Effect of foreign exchange rate changes on cash and cash equivalents |
|
(1 |
) |
|
|
— |
|
Net change in cash and cash equivalents during the period |
|
12 |
|
|
|
17 |
|
Cash and cash equivalents at beginning of period |
|
71 |
|
|
|
54 |
|
Cash and cash equivalents at end of period |
$ |
83 |
|
|
$ |
71 |
|
A - 3 |
|||||||
HERC HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
EBITDA AND ADJUSTED EBITDA RECONCILIATIONS
Unaudited
(In millions)
EBITDA and adjusted EBITDA - EBITDA represents the sum of net income (loss), provision (benefit) for income taxes, interest expense, net, depreciation of rental equipment and non-rental depreciation and amortization. Adjusted EBITDA represents EBITDA plus the sum of transaction related costs, restructuring and restructuring related charges, spin-off costs, non-cash stock-based compensation charges, loss on extinguishment of debt (which is included in interest expense, net), impairment charges, gain (loss) on the disposal of a business and certain other items. EBITDA and adjusted EBITDA do not purport to be alternatives to net income as an indicator of operating performance. Additionally, neither measure purports to be an alternative to cash flows from operating activities as a measure of liquidity, as they do not consider certain cash requirements such as interest payments and tax payments.
Adjusted EBITDA Margin - Adjusted EBITDA Margin, calculated by dividing Adjusted EBITDA by Total Revenues, is a commonly used profitability ratio.
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
$ |
(46 |
) |
|
$ |
91 |
|
|
$ |
211 |
|
|
$ |
347 |
|
Income tax provision |
|
3 |
|
|
|
32 |
|
|
|
80 |
|
|
|
100 |
|
Interest expense, net |
|
67 |
|
|
|
62 |
|
|
|
260 |
|
|
|
224 |
|
Depreciation of rental equipment |
|
180 |
|
|
|
163 |
|
|
|
679 |
|
|
|
643 |
|
Non-rental depreciation and amortization |
|
35 |
|
|
|
29 |
|
|
|
127 |
|
|
|
112 |
|
EBITDA |
|
239 |
|
|
|
377 |
|
|
|
1,357 |
|
|
|
1,426 |
|
Non-cash stock-based compensation charges |
|
1 |
|
|
|
3 |
|
|
|
17 |
|
|
|
18 |
|
Transaction related costs |
|
2 |
|
|
|
3 |
|
|
|
11 |
|
|
|
8 |
|
Loss on assets held for sale |
|
194 |
|
|
|
— |
|
|
|
194 |
|
|
|
— |
|
Other(1) |
|
2 |
|
|
|
(1 |
) |
|
|
4 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
438 |
|
|
$ |
382 |
|
|
$ |
1,583 |
|
|
$ |
1,452 |
|
|
|
|
|
|
|
|
|
||||||||
Total revenues |
|
951 |
|
|
|
831 |
|
|
|
3,568 |
|
|
|
3,282 |
|
Adjusted EBITDA |
$ |
438 |
|
|
$ |
382 |
|
|
$ |
1,583 |
|
|
$ |
1,452 |
|
Adjusted EBITDA margin |
|
46.1 |
% |
|
|
46.0 |
% |
|
|
44.4 |
% |
|
|
44.2 |
% |
(1) Other consists of restructuring charges and spin-off costs. |
|||||||||||||||
A - 4 |
|||||||||||||||
HERC HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
EBITDA, ADJUSTED EBITDA AND ADJUSTED REBITDA
EXCLUDING STUDIO ENTERTAINMENT RECONCILIATIONS
Unaudited
(in millions)
EBITDA, Adjusted EBITDA, REBITDA, Adjusted EBITDA Margin, REBITDA Margin and REBITDA Flow-Through Excluding Studio Entertainment - Each metric below has been adjusted to exclude the studio entertainment business due to the intent to sell that business and provides the operating performance of the remaining business.
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||||||
|
Herc |
Studio |
Ex-Studio |
|
Herc |
Studio |
Ex-Studio |
||||||||||||
Equipment rental revenue |
$ |
839 |
|
$ |
16 |
|
$ |
823 |
|
|
$ |
748 |
|
$ |
10 |
|
$ |
738 |
|
Total revenues |
|
951 |
|
|
17 |
|
|
934 |
|
|
|
831 |
|
|
11 |
|
|
820 |
|
Total expenses |
|
994 |
|
|
209 |
|
|
785 |
|
|
|
708 |
|
|
14 |
|
|
694 |
|
Income (loss) before income taxes |
|
(43 |
) |
|
(192 |
) |
|
149 |
|
|
|
123 |
|
|
(3 |
) |
|
126 |
|
Income tax (provision) benefit |
|
(3 |
) |
|
33 |
|
|
(36 |
) |
|
|
(32 |
) |
|
1 |
|
|
(33 |
) |
Net income (loss) |
|
(46 |
) |
|
(159 |
) |
|
113 |
|
|
|
91 |
|
|
(2 |
) |
|
93 |
|
Income tax provision |
|
3 |
|
|
(33 |
) |
|
36 |
|
|
|
32 |
|
|
(1 |
) |
|
33 |
|
Interest expense, net |
|
67 |
|
|
— |
|
|
67 |
|
|
|
62 |
|
|
— |
|
|
62 |
|
Depreciation of rental equipment |
|
180 |
|
|
— |
|
|
180 |
|
|
|
163 |
|
|
— |
|
|
163 |
|
Non-rental depreciation and amortization |
|
35 |
|
|
— |
|
|
35 |
|
|
|
29 |
|
|
— |
|
|
29 |
|
EBITDA |
|
239 |
|
|
(192 |
) |
|
431 |
|
|
|
377 |
|
|
(3 |
) |
|
380 |
|
Non-cash stock-based compensation charges |
|
1 |
|
|
— |
|
|
1 |
|
|
|
3 |
|
|
— |
|
|
3 |
|
Transaction related costs |
|
2 |
|
|
— |
|
|
2 |
|
|
|
3 |
|
|
1 |
|
|
2 |
|
Loss on assets held for sale |
|
194 |
|
|
194 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
Other |
|
2 |
|
|
— |
|
|
2 |
|
|
|
(1 |
) |
|
(1 |
) |
|
— |
|
Adjusted EBITDA |
|
438 |
|
|
2 |
|
|
436 |
|
|
|
382 |
|
|
(3 |
) |
|
385 |
|
Less: Gain (loss) on sales of rental equipment |
|
29 |
|
|
(1 |
) |
|
30 |
|
|
|
17 |
|
|
(1 |
) |
|
18 |
|
Less: Gain (loss) on sales of new equipment, parts and supplies |
|
3 |
|
|
— |
|
|
3 |
|
|
|
3 |
|
|
— |
|
|
3 |
|
Rental Adjusted EBITDA (REBITDA) |
$ |
406 |
|
$ |
3 |
|
$ |
403 |
|
|
$ |
362 |
|
$ |
(2 |
) |
$ |
364 |
|
|
|
|
|
|
|
|
|
||||||||||||
Total revenues |
$ |
951 |
|
$ |
17 |
|
$ |
934 |
|
|
$ |
831 |
|
$ |
11 |
|
$ |
820 |
|
Adjusted EBITDA |
$ |
438 |
|
$ |
2 |
|
$ |
436 |
|
|
$ |
382 |
|
$ |
(3 |
) |
$ |
385 |
|
Adjusted EBITDA margin |
|
46.1 |
% |
|
11.8 |
% |
|
46.7 |
% |
|
|
46.0 |
% |
|
(27.3 |
)% |
|
47.0 |
% |
|
|
|
|
|
|
|
|
||||||||||||
Total revenues |
$ |
951 |
|
$ |
17 |
|
$ |
934 |
|
|
$ |
831 |
|
$ |
11 |
|
$ |
820 |
|
Less: Sales of rental equipment |
|
96 |
|
|
— |
|
|
96 |
|
|
|
68 |
|
|
— |
|
|
68 |
|
Less: Sales of new equipment, parts and supplies |
|
9 |
|
|
1 |
|
|
8 |
|
|
|
9 |
|
|
1 |
|
|
8 |
|
Equipment rental, service and other revenues |
$ |
846 |
|
$ |
16 |
|
$ |
830 |
|
|
$ |
754 |
|
$ |
10 |
|
$ |
744 |
|
|
|
|
|
|
|
|
|
||||||||||||
Equipment rental, service and other revenues |
$ |
846 |
|
$ |
16 |
|
$ |
830 |
|
|
$ |
754 |
|
$ |
10 |
|
$ |
744 |
|
Adjusted REBITDA |
$ |
406 |
|
$ |
3 |
|
$ |
403 |
|
|
$ |
362 |
|
$ |
(2 |
) |
$ |
364 |
|
Adjusted REBITDA Margin |
|
48.0 |
% |
|
18.8 |
% |
|
48.6 |
% |
|
|
48.0 |
% |
|
(20.0 |
)% |
|
48.9 |
% |
A - 5 |
|||||||||||||||||||
HERC HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
EBITDA, ADJUSTED EBITDA AND ADJUSTED REBITDA
EXCLUDING STUDIO ENTERTAINMENT RECONCILIATIONS
Unaudited
(In millions)
EBITDA, Adjusted EBITDA, REBITDA, Adjusted EBITDA Margin, REBITDA Margin and REBITDA Flow-Through Excluding Studio Entertainment - Each metric below has been adjusted to exclude the studio entertainment business due to the intent to sell that business and provides the operating performance of the remaining business.
|
Year Ended
|
|
Year Ended
|
||||||||||||||||
|
Herc |
Studio |
Ex-Studio |
|
Herc |
Studio |
Ex-Studio |
||||||||||||
Equipment rental revenue |
$ |
3,189 |
|
$ |
87 |
|
$ |
3,102 |
|
|
$ |
2,870 |
|
$ |
50 |
|
$ |
2,820 |
|
Total revenues |
|
3,568 |
|
|
94 |
|
|
3,474 |
|
|
|
3,282 |
|
|
56 |
|
|
3,226 |
|
Total expenses |
|
3,277 |
|
|
268 |
|
|
3,009 |
|
|
|
2,835 |
|
|
93 |
|
|
2,742 |
|
Income (loss) before income taxes |
|
291 |
|
|
(174 |
) |
|
465 |
|
|
|
447 |
|
|
(37 |
) |
|
484 |
|
Income tax (provision) benefit |
|
(80 |
) |
|
26 |
|
|
(106 |
) |
|
|
(100 |
) |
|
8 |
|
|
(108 |
) |
Net income (loss) |
|
211 |
|
|
(148 |
) |
|
359 |
|
|
|
347 |
|
|
(29 |
) |
|
376 |
|
Income tax provision |
|
80 |
|
|
(26 |
) |
|
106 |
|
|
|
100 |
|
|
(8 |
) |
|
108 |
|
Interest expense, net |
|
260 |
|
|
— |
|
|
260 |
|
|
|
224 |
|
|
— |
|
|
224 |
|
Depreciation of rental equipment |
|
679 |
|
|
— |
|
|
679 |
|
|
|
643 |
|
|
24 |
|
|
619 |
|
Non-rental depreciation and amortization |
|
127 |
|
|
— |
|
|
127 |
|
|
|
112 |
|
|
2 |
|
|
110 |
|
EBITDA |
|
1,357 |
|
|
(174 |
) |
|
1,531 |
|
|
|
1,426 |
|
|
(11 |
) |
|
1,437 |
|
Non-cash stock-based compensation charges |
|
17 |
|
|
— |
|
|
17 |
|
|
|
18 |
|
|
— |
|
|
18 |
|
Transaction related costs |
|
11 |
|
|
1 |
|
|
10 |
|
|
|
8 |
|
|
2 |
|
|
6 |
|
Loss on assets held for sale |
|
194 |
|
|
194 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
Other |
|
4 |
|
|
— |
|
|
4 |
|
|
|
— |
|
|
(1 |
) |
|
1 |
|
Adjusted EBITDA |
|
1,583 |
|
|
21 |
|
|
1,562 |
|
|
|
1,452 |
|
|
(10 |
) |
|
1,462 |
|
Less: Gain (loss) on sales of rental equipment |
|
87 |
|
|
— |
|
|
87 |
|
|
|
94 |
|
|
(1 |
) |
|
95 |
|
Less: Gain (loss) on sales of new equipment, parts and supplies |
|
13 |
|
|
2 |
|
|
11 |
|
|
|
13 |
|
|
1 |
|
|
12 |
|
Rental Adjusted EBITDA (REBITDA) |
$ |
1,483 |
|
$ |
19 |
|
$ |
1,464 |
|
|
$ |
1,345 |
|
$ |
(10 |
) |
$ |
1,355 |
|
|
|
|
|
|
|
|
|
||||||||||||
Total revenues |
$ |
3,568 |
|
$ |
94 |
|
$ |
3,474 |
|
|
$ |
3,282 |
|
$ |
56 |
|
$ |
3,226 |
|
Adjusted EBITDA |
$ |
1,583 |
|
$ |
21 |
|
$ |
1,562 |
|
|
$ |
1,452 |
|
$ |
(10 |
) |
$ |
1,462 |
|
Adjusted EBITDA margin |
|
44.4 |
% |
|
22.3 |
% |
|
45.0 |
% |
|
|
44.2 |
% |
|
(17.9 |
)% |
|
45.3 |
% |
|
|
|
|
|
|
|
|
||||||||||||
Total revenues |
$ |
3,568 |
|
$ |
94 |
|
$ |
3,474 |
|
|
$ |
3,282 |
|
$ |
56 |
|
$ |
3,226 |
|
Less: Sales of rental equipment |
|
311 |
|
|
1 |
|
|
310 |
|
|
|
346 |
|
|
1 |
|
|
345 |
|
Less: Sales of new equipment, parts and supplies |
|
37 |
|
|
5 |
|
|
32 |
|
|
|
38 |
|
|
2 |
|
|
36 |
|
Equipment rental, service and other revenues |
$ |
3,220 |
|
$ |
88 |
|
$ |
3,132 |
|
|
$ |
2,898 |
|
$ |
53 |
|
$ |
2,845 |
|
|
|
|
|
|
|
|
|
||||||||||||
Equipment rental, service and other revenues |
$ |
3,220 |
|
$ |
88 |
|
$ |
3,132 |
|
|
$ |
2,898 |
|
$ |
53 |
|
$ |
2,845 |
|
Adjusted REBITDA |
$ |
1,483 |
|
$ |
19 |
|
$ |
1,464 |
|
|
$ |
1,345 |
|
$ |
(10 |
) |
$ |
1,355 |
|
Adjusted REBITDA Margin |
|
46.1 |
% |
|
21.6 |
% |
|
46.7 |
% |
|
|
46.4 |
% |
|
(18.9 |
)% |
|
47.6 |
% |
A - 6 |
|||||||||||||||||||
HERC HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE
Unaudited
(In millions)
Adjusted Net Income and Adjusted Earnings Per Diluted Share - Adjusted Net Income represents the sum of net income (loss), restructuring and restructuring related charges, spin-off costs, loss on extinguishment of debt, impairment charges, transaction related costs, gain (loss) on the disposal of a business and certain other items. Adjusted Earnings per Diluted Share represents Adjusted Net Income divided by diluted shares outstanding. Adjusted Net Income and Adjusted Earnings Per Diluted Share are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business.
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
$ |
(46 |
) |
|
$ |
91 |
|
|
$ |
211 |
|
|
$ |
347 |
|
Transaction related costs |
|
2 |
|
|
|
3 |
|
|
|
11 |
|
|
|
8 |
|
Loss on assets held for sale |
|
194 |
|
|
|
— |
|
|
|
194 |
|
|
|
— |
|
Other(1) |
|
2 |
|
|
|
(1 |
) |
|
|
4 |
|
|
|
— |
|
Tax impact of adjustments(2) |
|
(50 |
) |
|
|
(1 |
) |
|
|
(53 |
) |
|
|
(2 |
) |
Adjusted net income |
$ |
102 |
|
|
$ |
92 |
|
|
$ |
367 |
|
|
$ |
353 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted shares outstanding |
|
28.5 |
|
|
|
28.4 |
|
|
|
28.5 |
|
|
|
28.7 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted earnings per diluted share |
$ |
3.58 |
|
|
$ |
3.24 |
|
|
$ |
12.88 |
|
|
$ |
12.30 |
|
(1) Other consists of restructuring charges and spin-off costs. |
|||||||||||||||
(2) The tax rate applied for adjustments is |
|||||||||||||||
|
|||||||||||||||
A - 7 |
|||||||||||||||
HERC HOLDINGS INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
FREE CASH FLOW
Unaudited
(In millions)
Free cash flow represents net cash provided by (used in) operating activities less rental equipment expenditures and non-rental capital expenditures, plus proceeds from disposal of rental equipment, proceeds from disposal of property and equipment, and other investing activities. Free cash flow is used by management in analyzing the Company’s ability to service and repay its debt, fund potential acquisitions and to forecast future periods. However, this measure does not represent funds available for investment or other discretionary uses since it does not deduct cash used to service debt or for other non-discretionary expenditures.
|
Year Ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
1,225 |
|
|
$ |
1,086 |
|
|
|
|
|
||||
Rental equipment expenditures |
|
(1,048 |
) |
|
|
(1,320 |
) |
Proceeds from disposal of rental equipment |
|
288 |
|
|
|
325 |
|
Net rental equipment expenditures |
|
(760 |
) |
|
|
(995 |
) |
|
|
|
|
||||
Non-rental capital expenditures |
|
(161 |
) |
|
|
(156 |
) |
Proceeds from disposal of property and equipment |
|
10 |
|
|
|
15 |
|
Other |
|
— |
|
|
|
(15 |
) |
Free cash flow |
$ |
314 |
|
|
$ |
(65 |
) |
|
|
|
|
||||
Acquisitions, net of cash acquired |
|
(600 |
) |
|
|
(430 |
) |
Increase in net debt, excluding financing activities |
$ |
(286 |
) |
|
$ |
(495 |
) |
A - 8 |
|||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250213415626/en/
Leslie Hunziker
Senior Vice President,
Investor Relations, Communications & Sustainability
Leslie.hunziker@hercrentals.com
239-301-1675
Source: Herc Holdings Inc.
FAQ
What caused HRI's Q4 2024 net loss of $46 million?
What is HRI's rental revenue growth guidance for 2025?
How many acquisitions did HRI complete in 2024?
What was HRI's rental pricing increase in 2024?
What is HRI's current dividend payment?
