Herc Holdings Reports Nine Months 2024 Results and Updates 2024 Full Year Guidance
Herc Holdings reported strong Q3 2024 results, with record equipment rental revenue of $866 million, up 13% year-over-year. Total revenues increased 6% to $965 million. Net income rose 8% to $122 million, or $4.28 per diluted share. Adjusted EBITDA grew 9% to $446 million with a 46.2% margin.
Key highlights include:
- Rental pricing increased 2.3% year-over-year
- Dollar utilization improved to 42.2%
- Free cash flow of $218 million for the nine months ended September 30, 2024
The company updated its 2024 full-year guidance, projecting equipment rental revenue growth of 9.5% to 11% and adjusted EBITDA of $1.55 billion to $1.60 billion. Herc Holdings continues to focus on expanding market share through fleet investments, strategic acquisitions, and greenfield opportunities.
Herc Holdings ha riportato risultati molto positivi per il terzo trimestre del 2024, con un fatturato record per il noleggio di attrezzature di 866 milioni di dollari, in crescita del 13% rispetto all'anno precedente. I ricavi totali sono aumentati del 6%, raggiungendo i 965 milioni di dollari. Il reddito netto è salito dell'8%, raggiungendo i 122 milioni di dollari, pari a 4,28 dollari per azione diluita. L'EBITDA rettificato è cresciuto del 9%, raggiungendo i 446 milioni di dollari con un margine del 46,2%.
I punti salienti includono:
- Un aumento del 2,3% nei prezzi di noleggio rispetto all'anno precedente
- Un miglioramento dell'utilizzo in dollari al 42,2%
- Un flusso di cassa libero di 218 milioni di dollari per i nove mesi chiusi al 30 settembre 2024
La società ha aggiornato le previsioni per l'intero anno 2024, prevedendo una crescita dei ricavi da noleggio di attrezzature compresa tra il 9,5% e l'11% e un EBITDA rettificato compreso tra 1,55 miliardi e 1,60 miliardi di dollari. Herc Holdings continua a concentrarsi sull'espansione della quota di mercato attraverso investimenti nella flotta, acquisizioni strategiche e opportunità di greenfield.
Herc Holdings reportó resultados sólidos para el tercer trimestre de 2024, con ingresos récord de alquiler de equipos de 866 millones de dólares, un aumento del 13% en comparación con el año anterior. Los ingresos totales aumentaron un 6%, alcanzando los 965 millones de dólares. El ingreso neto aumentó un 8% hasta 122 millones de dólares, o 4.28 dólares por acción diluida. El EBITDA ajustado creció un 9% hasta 446 millones de dólares, con un margen del 46.2%.
Los aspectos destacados incluyen:
- Los precios de alquiler aumentaron un 2.3% interanual
- La utilización en dólares mejoró al 42.2%
- Flujo de caja libre de 218 millones de dólares para los nueve meses que terminaron el 30 de septiembre de 2024
La compañía actualizó sus pronósticos para el año completo 2024, proyectando un crecimiento en los ingresos por alquiler de equipos del 9.5% al 11% y un EBITDA ajustado de 1.55 a 1.60 mil millones de dólares. Herc Holdings continúa enfocándose en expandir su cuota de mercado a través de inversiones en flota, adquisiciones estratégicas y oportunidades de greenfield.
Herc Holdings는 2024년 3분기 동안 866 백만 달러의 기록적인 장비 임대 수익을 보고했으며, 이는 전년 대비 13% 증가한 수치입니다. 총 수익은 6% 증가하여 965 백만 달러에 도달했습니다. 순이익은 8% 증가하여 122 백만 달러에 달하며, 이는 희석 주당 4.28 달러에 해당합니다. 조정된 EBITDA는 9% 성장하여 446 백만 달러에 도달했으며, 46.2%의 마진을 기록했습니다.
주요 사항은 다음과 같습니다:
- 임대 가격이 전년 대비 2.3% 증가했습니다
- 달러 활용도는 42.2%로 개선되었습니다
- 2024년 9월 30일 종료된 9개월 동안의 자유 현금 흐름이 2억 1,800만 달러에 달했습니다
회사는 2024년 전체 연간 가이던스를 업데이트하여 장비 임대 수익이 9.5%에서 11% 증가하고 조정된 EBITDA가 15억 5천만 달러에서 16억 달러에 이를 것으로 예상하고 있습니다. Herc Holdings는 플릿 투자, 전략적 인수 및 그린필드 기회를 통해 시장 점유율을 확대하는 데 집중하고 있습니다.
Herc Holdings a annoncé des résultats solides pour le troisième trimestre 2024, avec un chiffre d'affaires record de 866 millions de dollars pour la location d'équipements, en hausse de 13% par rapport à l'année précédente. Les revenus totaux ont augmenté de 6% pour atteindre 965 millions de dollars. Le bénéfice net a augmenté de 8% pour atteindre 122 millions de dollars, soit 4,28 dollars par action diluée. L'EBITDA ajusté a crû de 9% pour atteindre 446 millions de dollars, avec une marge de 46,2%.
Les points clés incluent :
- Augmentation des prix de location de 2,3% par rapport à l'année précédente
- Amélioration de l'utilisation en dollars à 42,2%
- Flux de trésorerie libre de 218 millions de dollars pour les neuf mois se terminant le 30 septembre 2024
L'entreprise a mis à jour ses prévisions pour l'année 2024, prévoyant une croissance des revenus de location d'équipements de 9,5% à 11% et un EBITDA ajusté de 1,55 à 1,60 milliard de dollars. Herc Holdings continue de se concentrer sur l'expansion de sa part de marché à travers des investissements dans sa flotte, des acquisitions stratégiques et des opportunités de greenfield.
Herc Holdings meldete im dritten Quartal 2024 starke Ergebnisse mit einem Rekordumsatz im Equipment-Verleih von 866 Millionen Dollar, was einem Anstieg von 13% im Vergleich zum Vorjahr entspricht. Die Gesamteinnahmen stiegen um 6% auf 965 Millionen Dollar. Der Nettogewinn stieg um 8% auf 122 Millionen Dollar, oder 4,28 Dollar pro verwässerter Aktie. Das bereinigte EBITDA wuchs um 9% auf 446 Millionen Dollar mit einer Marge von 46,2%.
Wichtige Höhepunkte sind:
- Die Mietpreise stiegen um 2,3% im Vergleich zum Vorjahr
- Die Dollar-Nutzung verbesserte sich auf 42,2%
- Freier Cashflow von 218 Millionen Dollar für die neun Monate, die am 30. September 2024 endeten
Das Unternehmen hat seine Prognosen für das Gesamtjahr 2024 aktualisiert und rechnet mit einem Wachstum der Einnahmen aus Geräteverleih von 9,5% bis 11% und einem bereinigten EBITDA von 1,55 bis 1,60 Milliarden Dollar. Herc Holdings konzentriert sich weiterhin darauf, den Marktanteil durch Investitionen in die Flotte, strategische Akquisitionen und Greenfield-Möglichkeiten auszubauen.
- Record equipment rental revenue of $866 million, up 13% year-over-year
- Net income increased 8% to $122 million
- Adjusted EBITDA grew 9% to $446 million with improved margin of 46.2%
- Rental pricing increased 2.3% year-over-year
- Dollar utilization improved to 42.2%
- Free cash flow of $218 million for the nine months ended September 30, 2024
- Updated full-year guidance projecting higher equipment rental revenue growth
- Interest expense increased to $69 million from $60 million in the prior-year period
- Direct operating expenses as a percentage of equipment rental revenue increased to 38.6% from 37.6% in the prior-year period
- Net leverage increased to 2.7x compared to 2.5x in the same prior-year period
Insights
Herc Holdings' Q3 2024 results demonstrate strong performance in a challenging environment. Equipment rental revenue hit a record $866 million, up 13% year-over-year, driven by a 2.3
The company's adjusted EBITDA grew 9
However, investors should note the increased leverage, with net debt at
The updated 2024 guidance suggests continued strong performance, with equipment rental revenue growth now expected at 9.5
Herc Holdings' performance indicates resilience in the face of macroeconomic headwinds. The company's ability to grow despite a "challenging interest rate environment for local-project starts" suggests its strategy of focusing on mega projects and urban markets is paying off. This diversification helps buffer against localized slowdowns.
The 2.3
Investors should note the company's expansion strategy, with 8 acquisitions (26 locations) and 16 new greenfield locations opened in the first nine months of 2024. This aggressive growth approach could lead to market share gains but also carries integration risks and potential for increased competition.
The ongoing sale process for the Cinelease studio entertainment business is a key point to watch, as it could impact Herc's future revenue mix and growth profile. Overall, Herc's performance and outlook suggest it's well-positioned in the equipment rental market, but investors should monitor industry trends and the company's ability to maintain its growth trajectory amidst economic uncertainties.
Third Quarter 2024 Highlights
-
Record equipment rental revenue of
, an increase of$866 million 13% -
Record total revenues of
, an increase of$965 million 6% -
Rental pricing increased
2.3% year-over-year - M&A and greenfield openings offset impact from decelerating local-market revenue growth
-
Net income increased
8% to , or$122 million per diluted share$4.28 -
Adjusted EBITDA of
increased$446 million 9% ; adjusted EBITDA margin of46.2% -
Free cash flow of
for the nine months ended September 30, 2024$218 million
“In the third quarter, we significantly outpaced overall industry growth on both a total rental revenue basis and from an organic revenue perspective,” said Larry Silber, president and chief executive officer. “By capitalizing on our broad end-market coverage, diversified product and services offering and expanding share in resilient urban markets, we continue to deliver strong volume and a solid price/mix performance.
“We increased third quarter rental revenue by
“As we manage the complexities of disparate levels of demand across geographies, end markets and project types, our team is agile and remains focused on aligning costs and balancing fleet, while continuing to support the growth of our business and deliver outstanding customer service.”
2024 Third Quarter Financial Results
-
Total revenues increased
6% to compared to$965 million in the prior-year period. The year-over-year increase of$908 million primarily related to an increase in equipment rental revenue of$57 million , reflecting positive pricing of$101 million 2.3% and increased volume of10.7% . Sales of rental equipment decreased by during the period. Fleet rotation in the prior year period was accelerated due to easing of supply chain disruptions in certain categories of equipment.$43 million
-
Dollar utilization increased to
42.2% in the third quarter compared to42.1% in the prior-year period.
-
Direct operating expenses were
, or$334 million 38.6% of equipment rental revenue, compared to , or$288 million 37.6% 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
4% to due to higher year-over-year average fleet size. Non-rental depreciation and amortization increased$174 million 14% to primarily due to amortization of acquisition intangible assets.$33 million
-
Selling, general and administrative expenses was
, or$123 million 14.2% of equipment rental revenue, compared to , or$115 million 15.0% in the prior-year period due to continued focus on improving operating leverage while expanding revenues.
-
Interest expense increased to
compared with$69 million in the prior-year period due to increased borrowings primarily to fund acquisition growth and invest in rental equipment.$60 million
-
Net income was
compared to$122 million in the prior-year period. Adjusted net income increased$113 million 9% to , or$124 million per diluted share, compared to$4.35 , or$114 million per diluted share, in the prior-year period. The effective tax rate was$4.00 24% compared to23% in the prior-year period.
-
Adjusted EBITDA increased
9% to compared to$446 million in the prior-year period and adjusted EBITDA margin was$410 million 46.2% compared to45.2% in the prior-year period.
2024 Nine Months Financial Results
-
Total revenues increased
7% to compared to$2,617 million in the prior-year period. The year-over-year increase of$2,450 million primarily related to an increase in equipment rental revenue of$167 million , reflecting positive pricing of$229 million 3.5% and increased volume of8.4% , partially offset by unfavorable mix driven primarily by inflation. Sales of rental equipment decreased by during the period. Fleet rotation in the prior year period was accelerated due to easing of supply chain disruptions in certain categories of equipment.$63 million
-
Dollar utilization increased to
41.0% compared to40.8% in the prior-year period.
-
Direct operating expenses were
, or$967 million 41.1% of equipment rental revenue, compared to , or$851 million 40.1% 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. Additionally, delivery expenses were higher due to internal transfers of equipment to branches in higher growth regions to drive fleet efficiency. Finally, insurance expense increased, primarily related to increased self insurance reserves due to claims development attributable to unsettled cases.
-
Depreciation of rental equipment increased
4% to due to higher year-over-year average fleet size. Non-rental depreciation and amortization increased$499 million 11% to primarily due to amortization of acquisition intangible assets.$92 million
-
Selling, general and administrative expenses were
, or$358 million 15.2% of equipment rental revenue, compared to , or$332 million 15.7% in the prior-year period due to continued focus on improving operating leverage while expanding revenues.
-
Interest expense increased to
compared with$193 million in the prior-year period due to increased borrowings primarily to fund acquisition growth and invest in rental equipment.$162 million
-
Net income was
compared to$257 million in the prior-year period. Adjusted net income increased$256 million 2% to , or$265 million per diluted share, compared to$9.30 , or$260 million per diluted share, in the prior-year period. The effective tax rate was$9.03 23% compared to21% in the prior-year period.
-
Adjusted EBITDA increased
7% to compared to$1,145 million in the prior-year period and adjusted EBITDA margin was$1,070 million 43.8% compared to43.7% in the prior-year period.
Rental Fleet
- Net rental equipment capital expenditures were as follows (in millions):
|
Nine Months Ended September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Rental equipment expenditures |
$ |
753 |
|
|
$ |
1,100 |
|
Proceeds from disposal of rental equipment |
|
(198 |
) |
|
|
(231 |
) |
Net rental equipment capital expenditures |
$ |
555 |
|
|
$ |
869 |
|
-
As of September 30, 2024, the Company's total fleet was approximately
at OEC.$7.1 billion
-
Average fleet at OEC in the third quarter increased
12% compared to the prior-year period.
- Average fleet age was 46 months as of September 30, 2024 compared to 45 months in the comparable prior-year period.
Disciplined Capital Management
- The Company completed 8 acquisitions with a total of 26 locations and opened 16 new greenfield locations during the nine months ended September 30, 2024.
-
Net debt was
as of September 30, 2024, with net leverage of 2.7x compared to 2.5x in the same prior-year period. Cash and cash equivalents and unused commitments under the ABL Credit Facility contributed to approximately$4.0 billion of liquidity as of September 30, 2024.$1.9 billion
-
The Company declared its quarterly dividend of
paid to shareholders of record as of August 23, 2024 on September 6, 2024.$0.66 5
Outlook
The Company is updating its full year 2024 equipment rental revenue growth and gross and net rental capital expenditures guidance ranges, while reaffirming its adjusted EBITDA guidance range, presented below, which excludes the Cinelease studio entertainment and lighting and grip equipment rental business. The guidance range for the full year 2024 adjusted EBITDA reflects an increase of
|
Prior |
|
Current |
Equipment rental revenue growth: |
|
|
|
Adjusted EBITDA: |
|
|
|
Net rental equipment capital expenditures after 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 2024 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' third 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 439 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 as that term is defined by the federal securities laws, including statements concerning our business plans and strategy, projected profitability, performance or cash flows, future capital expenditures, our growth strategy, including our ability to grow organically and through M&A, anticipated financing needs, business trends, our capital allocation strategy, liquidity and capital management, exploring strategic alternatives for Cinelease, including the timing of the review process, the outcome of the process and the costs and benefits of the process, and other information that is not historical information. 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. 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. 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 |
|||||||||||||||
Unaudited |
|||||||||||||||
(In millions, except per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Equipment rental |
$ |
866 |
|
|
$ |
765 |
|
|
$ |
2,350 |
|
|
$ |
2,121 |
|
Sales of rental equipment |
|
81 |
|
|
|
124 |
|
|
|
215 |
|
|
|
278 |
|
Sales of new equipment, parts and supplies |
|
9 |
|
|
|
11 |
|
|
|
28 |
|
|
|
29 |
|
Service and other revenue |
|
9 |
|
|
|
8 |
|
|
|
24 |
|
|
|
22 |
|
Total revenues |
|
965 |
|
|
|
908 |
|
|
|
2,617 |
|
|
|
2,450 |
|
Expenses: |
|
|
|
|
|
|
|
||||||||
Direct operating |
|
334 |
|
|
|
288 |
|
|
|
967 |
|
|
|
851 |
|
Depreciation of rental equipment |
|
174 |
|
|
|
167 |
|
|
|
499 |
|
|
|
480 |
|
Cost of sales of rental equipment |
|
66 |
|
|
|
99 |
|
|
|
157 |
|
|
|
201 |
|
Cost of sales of new equipment, parts and supplies |
|
6 |
|
|
|
7 |
|
|
|
18 |
|
|
|
19 |
|
Selling, general and administrative |
|
123 |
|
|
|
115 |
|
|
|
358 |
|
|
|
332 |
|
Non-rental depreciation and amortization |
|
33 |
|
|
|
29 |
|
|
|
92 |
|
|
|
83 |
|
Interest expense, net |
|
69 |
|
|
|
60 |
|
|
|
193 |
|
|
|
162 |
|
Other expense (income), net |
|
— |
|
|
|
(3 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
Total expenses |
|
805 |
|
|
|
762 |
|
|
|
2,283 |
|
|
|
2,126 |
|
Income before income taxes |
|
160 |
|
|
|
146 |
|
|
|
334 |
|
|
|
324 |
|
Income tax provision |
|
(38 |
) |
|
|
(33 |
) |
|
|
(77 |
) |
|
|
(68 |
) |
Net income |
$ |
122 |
|
|
$ |
113 |
|
|
$ |
257 |
|
|
$ |
256 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
28.4 |
|
|
|
28.3 |
|
|
|
28.4 |
|
|
|
28.5 |
|
Diluted |
|
28.5 |
|
|
|
28.5 |
|
|
|
28.5 |
|
|
|
28.8 |
|
Earnings per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
4.30 |
|
|
$ |
3.99 |
|
|
$ |
9.05 |
|
|
$ |
8.98 |
|
Diluted |
$ |
4.28 |
|
|
$ |
3.96 |
|
|
$ |
9.02 |
|
|
$ |
8.89 |
|
A - 1 |
HERC HOLDINGS INC. AND SUBSIDIARIES |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(In millions) |
|||||
|
September 30, 2024 |
|
December 31, 2023 |
||
ASSETS |
(unaudited) |
|
|
||
Cash and cash equivalents |
$ |
142 |
|
$ |
71 |
Receivables, net of allowances |
|
623 |
|
|
563 |
Other current assets |
|
66 |
|
|
77 |
Current assets held for sale |
|
20 |
|
|
21 |
Total current assets |
|
851 |
|
|
732 |
Rental equipment, net |
|
4,283 |
|
|
3,831 |
Property and equipment, net |
|
541 |
|
|
465 |
Right-of-use lease assets |
|
842 |
|
|
665 |
Goodwill and intangible assets, net |
|
1,231 |
|
|
950 |
Other long-term assets |
|
9 |
|
|
10 |
Long-term assets held for sale |
|
415 |
|
|
408 |
Total assets |
$ |
8,172 |
|
$ |
7,061 |
|
|
|
|
||
LIABILITIES AND EQUITY |
|
|
|
||
Current maturities of long-term debt and financing obligations |
$ |
20 |
|
$ |
19 |
Current maturities of operating lease liabilities |
|
38 |
|
|
37 |
Accounts payable |
|
360 |
|
|
212 |
Accrued liabilities |
|
258 |
|
|
221 |
Current liabilities held for sale |
|
21 |
|
|
19 |
Total current liabilities |
|
697 |
|
|
508 |
Long-term debt, net |
|
4,163 |
|
|
3,673 |
Financing obligations, net |
|
101 |
|
|
104 |
Operating lease liabilities |
|
830 |
|
|
646 |
Deferred tax liabilities |
|
799 |
|
|
743 |
Other long term liabilities |
|
44 |
|
|
46 |
Long-term liabilities held for sale |
|
61 |
|
|
68 |
Total liabilities |
|
6,695 |
|
|
5,788 |
Total equity |
|
1,477 |
|
|
1,273 |
Total liabilities and equity |
$ |
8,172 |
|
$ |
7,061 |
A - 2 |
HERC HOLDINGS INC. AND SUBSIDIARIES |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
Unaudited |
|||||||
(In millions) |
|||||||
|
Nine Months Ended September 30, |
||||||
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
257 |
|
|
$ |
256 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation of rental equipment |
|
499 |
|
|
|
480 |
|
Depreciation of property and equipment |
|
60 |
|
|
|
53 |
|
Amortization of intangible assets |
|
32 |
|
|
|
30 |
|
Amortization of deferred debt and financing obligations costs |
|
3 |
|
|
|
3 |
|
Stock-based compensation charges |
|
16 |
|
|
|
15 |
|
Provision for receivables allowances |
|
48 |
|
|
|
49 |
|
Deferred taxes |
|
57 |
|
|
|
41 |
|
Gain on sale of rental equipment |
|
(58 |
) |
|
|
(77 |
) |
Other |
|
10 |
|
|
|
1 |
|
Changes in assets and liabilities: |
|
|
|
||||
Receivables |
|
(76 |
) |
|
|
(79 |
) |
Other assets |
|
(5 |
) |
|
|
(3 |
) |
Accounts payable |
|
17 |
|
|
|
10 |
|
Accrued liabilities and other long-term liabilities |
|
34 |
|
|
|
17 |
|
Net cash provided by operating activities |
|
894 |
|
|
|
796 |
|
Cash flows from investing activities: |
|
|
|
||||
Rental equipment expenditures |
|
(753 |
) |
|
|
(1,100 |
) |
Proceeds from disposal of rental equipment |
|
198 |
|
|
|
231 |
|
Non-rental capital expenditures |
|
(127 |
) |
|
|
(119 |
) |
Proceeds from disposal of property and equipment |
|
6 |
|
|
|
11 |
|
Acquisitions, net of cash acquired |
|
(567 |
) |
|
|
(332 |
) |
Other investing activities |
|
— |
|
|
|
(15 |
) |
Net cash used in investing activities |
|
(1,243 |
) |
|
|
(1,324 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of long-term debt |
|
800 |
|
|
|
— |
|
Proceeds from revolving lines of credit and securitization |
|
1,530 |
|
|
|
1,755 |
|
Repayments on revolving lines of credit and securitization |
|
(1,821 |
) |
|
|
(1,016 |
) |
Principal payments under finance lease and financing obligations |
|
(15 |
) |
|
|
(12 |
) |
Dividends paid |
|
(58 |
) |
|
|
(56 |
) |
Repurchase of common stock |
|
— |
|
|
|
(107 |
) |
Other financing activities, net |
|
(16 |
) |
|
|
(19 |
) |
Net cash provided by financing activities |
|
420 |
|
|
|
545 |
|
Effect of foreign exchange rate changes on cash and cash equivalents |
|
— |
|
|
|
— |
|
Net change in cash and cash equivalents during the period |
|
71 |
|
|
|
17 |
|
Cash and cash equivalents at beginning of period |
|
71 |
|
|
|
54 |
|
Cash and cash equivalents at end of period |
$ |
142 |
|
|
$ |
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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income |
$ |
122 |
|
|
$ |
113 |
|
|
$ |
257 |
|
|
$ |
256 |
|
Income tax provision |
|
38 |
|
|
|
33 |
|
|
|
77 |
|
|
|
68 |
|
Interest expense, net |
|
69 |
|
|
|
60 |
|
|
|
193 |
|
|
|
162 |
|
Depreciation of rental equipment |
|
174 |
|
|
|
167 |
|
|
|
499 |
|
|
|
480 |
|
Non-rental depreciation and amortization |
|
33 |
|
|
|
29 |
|
|
|
92 |
|
|
|
83 |
|
EBITDA |
|
436 |
|
|
|
402 |
|
|
|
1,118 |
|
|
|
1,049 |
|
Non-cash stock-based compensation charges |
|
7 |
|
|
|
6 |
|
|
|
16 |
|
|
|
15 |
|
Transaction related costs |
|
3 |
|
|
|
2 |
|
|
|
9 |
|
|
|
5 |
|
Other(1) |
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
1 |
|
Adjusted EBITDA |
$ |
446 |
|
|
$ |
410 |
|
|
$ |
1,145 |
|
|
$ |
1,070 |
|
|
|
|
|
|
|
|
|
||||||||
Total revenues |
$ |
965 |
|
|
$ |
908 |
|
|
$ |
2,617 |
|
|
$ |
2,450 |
|
Adjusted EBITDA |
$ |
446 |
|
|
$ |
410 |
|
|
$ |
1,145 |
|
|
$ |
1,070 |
|
Adjusted EBITDA margin |
|
46.2 |
% |
|
|
45.2 |
% |
|
|
43.8 |
% |
|
|
43.7 |
% |
(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 |
$ |
866 |
|
$ |
16 |
|
$ |
850 |
|
|
$ |
765 |
|
$ |
5 |
|
$ |
760 |
|
Total revenues |
|
965 |
|
|
18 |
|
|
947 |
|
|
|
908 |
|
|
7 |
|
|
901 |
|
Total expenses |
|
805 |
|
|
17 |
|
|
788 |
|
|
|
762 |
|
|
25 |
|
|
737 |
|
Income (loss) before income taxes |
|
160 |
|
|
1 |
|
|
159 |
|
|
|
146 |
|
|
(18 |
) |
|
164 |
|
Income tax (provision) benefit |
|
(38 |
) |
|
(1 |
) |
|
(37 |
) |
|
|
(33 |
) |
|
3 |
|
|
(36 |
) |
Net income |
|
122 |
|
|
— |
|
|
122 |
|
|
|
113 |
|
|
(15 |
) |
|
128 |
|
Income tax provision |
|
38 |
|
|
1 |
|
|
37 |
|
|
|
33 |
|
|
(3 |
) |
|
36 |
|
Interest expense, net |
|
69 |
|
|
— |
|
|
69 |
|
|
|
60 |
|
|
— |
|
|
60 |
|
Depreciation of rental equipment |
|
174 |
|
|
— |
|
|
174 |
|
|
|
167 |
|
|
8 |
|
|
159 |
|
Non-rental depreciation and amortization |
|
33 |
|
|
— |
|
|
33 |
|
|
|
29 |
|
|
1 |
|
|
28 |
|
EBITDA |
|
436 |
|
|
1 |
|
|
435 |
|
|
|
402 |
|
|
(9 |
) |
|
411 |
|
Non-cash stock-based compensation charges |
|
7 |
|
|
— |
|
|
7 |
|
|
|
6 |
|
|
— |
|
|
6 |
|
Transaction related costs |
|
3 |
|
|
— |
|
|
3 |
|
|
|
2 |
|
|
— |
|
|
2 |
|
Adjusted EBITDA |
|
446 |
|
|
1 |
|
|
445 |
|
|
|
410 |
|
|
(9 |
) |
|
419 |
|
Less: Gain (loss) on sales of rental equipment |
|
15 |
|
|
— |
|
|
15 |
|
|
|
25 |
|
|
— |
|
|
25 |
|
Less: Gain (loss) on sales of new equipment, parts and supplies |
|
3 |
|
|
— |
|
|
3 |
|
|
|
4 |
|
|
— |
|
|
4 |
|
Rental Adjusted EBITDA (REBITDA) |
$ |
428 |
|
$ |
1 |
|
$ |
427 |
|
|
$ |
381 |
|
$ |
(9 |
) |
$ |
390 |
|
|
|
|
|
|
|
|
|
||||||||||||
Total revenues |
$ |
965 |
|
$ |
18 |
|
$ |
947 |
|
|
$ |
908 |
|
$ |
7 |
|
$ |
901 |
|
Adjusted EBITDA |
$ |
446 |
|
$ |
1 |
|
$ |
445 |
|
|
$ |
410 |
|
$ |
(9 |
) |
$ |
419 |
|
Adjusted EBITDA margin |
|
46.2 |
% |
|
5.6 |
% |
|
47.0 |
% |
|
|
45.2 |
% |
|
(128.6 |
)% |
|
46.5 |
% |
|
|
|
|
|
|
|
|
||||||||||||
Total revenues |
$ |
965 |
|
$ |
18 |
|
$ |
947 |
|
|
$ |
908 |
|
$ |
7 |
|
$ |
901 |
|
Less: Sales of rental equipment |
|
81 |
|
|
1 |
|
|
80 |
|
|
|
124 |
|
|
— |
|
|
124 |
|
Less: Sales of new equipment, parts and supplies |
|
9 |
|
|
1 |
|
|
8 |
|
|
|
11 |
|
|
— |
|
|
11 |
|
Equipment rental, service and other revenues |
$ |
875 |
|
$ |
16 |
|
$ |
859 |
|
|
$ |
773 |
|
$ |
7 |
|
$ |
766 |
|
|
|
|
|
|
|
|
|
||||||||||||
Equipment rental, service and other revenues |
$ |
875 |
|
$ |
16 |
|
$ |
859 |
|
|
$ |
773 |
|
$ |
7 |
|
$ |
766 |
|
Adjusted REBITDA |
$ |
428 |
|
$ |
1 |
|
$ |
427 |
|
|
$ |
381 |
|
$ |
(9 |
) |
$ |
390 |
|
Adjusted REBITDA Margin |
|
48.9 |
% |
|
6.3 |
% |
|
49.7 |
% |
|
|
49.3 |
% |
|
(128.6 |
)% |
|
50.9 |
% |
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.
|
Nine Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
Herc |
Studio |
Ex-Studio |
|
Herc |
Studio |
Ex-Studio |
||||||||||||
Equipment rental revenue |
$ |
2,350 |
|
$ |
71 |
|
$ |
2,279 |
|
|
$ |
2,121 |
|
$ |
40 |
|
$ |
2,081 |
|
Total revenues |
|
2,617 |
|
|
77 |
|
|
2,540 |
|
|
|
2,450 |
|
|
45 |
|
|
2,405 |
|
Total expenses |
|
2,283 |
|
|
59 |
|
|
2,224 |
|
|
|
2,126 |
|
|
80 |
|
|
2,046 |
|
Income (loss) before income taxes |
|
334 |
|
|
18 |
|
|
316 |
|
|
|
324 |
|
|
(35 |
) |
|
359 |
|
Income tax (provision) benefit |
|
(77 |
) |
|
(4 |
) |
|
(73 |
) |
|
|
(68 |
) |
|
7 |
|
|
(75 |
) |
Net income |
|
257 |
|
|
14 |
|
|
243 |
|
|
|
256 |
|
|
(28 |
) |
|
284 |
|
Income tax provision |
|
77 |
|
|
4 |
|
|
73 |
|
|
|
68 |
|
|
(7 |
) |
|
75 |
|
Interest expense, net |
|
193 |
|
|
— |
|
|
193 |
|
|
|
162 |
|
|
— |
|
|
162 |
|
Depreciation of rental equipment |
|
499 |
|
|
— |
|
|
499 |
|
|
|
480 |
|
|
24 |
|
|
456 |
|
Non-rental depreciation and amortization |
|
92 |
|
|
— |
|
|
92 |
|
|
|
83 |
|
|
3 |
|
|
80 |
|
EBITDA |
|
1,118 |
|
|
18 |
|
|
1,100 |
|
|
|
1,049 |
|
|
(8 |
) |
|
1,057 |
|
Non-cash stock-based compensation charges |
|
16 |
|
|
— |
|
|
16 |
|
|
|
15 |
|
|
— |
|
|
15 |
|
Transaction related costs |
|
9 |
|
|
1 |
|
|
8 |
|
|
|
5 |
|
|
— |
|
|
5 |
|
Other |
|
2 |
|
|
— |
|
|
2 |
|
|
|
1 |
|
|
1 |
|
|
— |
|
Adjusted EBITDA |
|
1,145 |
|
|
19 |
|
|
1,126 |
|
|
|
1,070 |
|
|
(7 |
) |
|
1,077 |
|
Less: Gain (loss) on sales of rental equipment |
|
58 |
|
|
— |
|
|
58 |
|
|
|
77 |
|
|
— |
|
|
77 |
|
Less: Gain (loss) on sales of new equipment, parts and supplies |
|
10 |
|
|
2 |
|
|
8 |
|
|
|
10 |
|
|
— |
|
|
10 |
|
Rental Adjusted EBITDA (REBITDA) |
$ |
1,077 |
|
$ |
17 |
|
$ |
1,060 |
|
|
$ |
983 |
|
$ |
(7 |
) |
$ |
990 |
|
|
|
|
|
|
|
|
|
||||||||||||
Total revenues |
$ |
2,617 |
|
$ |
77 |
|
$ |
2,540 |
|
|
$ |
2,450 |
|
$ |
45 |
|
$ |
2,405 |
|
Adjusted EBITDA |
$ |
1,145 |
|
$ |
19 |
|
$ |
1,126 |
|
|
$ |
1,070 |
|
$ |
(7 |
) |
$ |
1,077 |
|
Adjusted EBITDA margin |
|
43.8 |
% |
|
24.7 |
% |
|
44.3 |
% |
|
|
43.7 |
% |
|
(15.6 |
)% |
|
44.8 |
% |
|
|
|
|
|
|
|
|
||||||||||||
Total revenues |
$ |
2,617 |
|
$ |
77 |
|
$ |
2,540 |
|
|
$ |
2,450 |
|
$ |
45 |
|
$ |
2,405 |
|
Less: Sales of rental equipment |
|
215 |
|
|
1 |
|
|
214 |
|
|
|
278 |
|
|
— |
|
|
278 |
|
Less: Sales of new equipment, parts and supplies |
|
28 |
|
|
4 |
|
|
24 |
|
|
|
29 |
|
|
— |
|
|
29 |
|
Equipment rental, service and other revenues |
$ |
2,374 |
|
$ |
72 |
|
$ |
2,302 |
|
|
$ |
2,143 |
|
$ |
45 |
|
$ |
2,098 |
|
|
|
|
|
|
|
|
|
||||||||||||
Equipment rental, service and other revenues |
$ |
2,374 |
|
$ |
72 |
|
$ |
2,302 |
|
|
$ |
2,143 |
|
$ |
45 |
|
$ |
2,098 |
|
Adjusted REBITDA |
$ |
1,077 |
|
$ |
17 |
|
$ |
1,060 |
|
|
$ |
983 |
|
$ |
(7 |
) |
$ |
990 |
|
Adjusted REBITDA Margin |
|
45.4 |
% |
|
23.6 |
% |
|
46.0 |
% |
|
|
45.9 |
% |
|
(15.6 |
)% |
|
47.2 |
% |
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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income |
$ |
122 |
|
|
$ |
113 |
|
|
$ |
257 |
|
|
$ |
256 |
|
Transaction related costs |
|
3 |
|
|
|
2 |
|
|
|
9 |
|
|
|
5 |
|
Other(1) |
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
1 |
|
Tax impact of adjustments(2) |
|
(1 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(2 |
) |
Adjusted net income |
$ |
124 |
|
|
$ |
114 |
|
|
$ |
265 |
|
|
$ |
260 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted shares outstanding |
|
28.5 |
|
|
|
28.5 |
|
|
|
28.5 |
|
|
|
28.8 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted earnings per diluted share |
$ |
4.35 |
|
|
$ |
4.00 |
|
|
$ |
9.30 |
|
|
$ |
9.03 |
|
(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.
|
Nine Months Ended September 30, |
||||||
|
2024 |
|
2023 |
||||
Net cash provided by operating activities |
$ |
894 |
|
|
$ |
796 |
|
|
|
|
|
||||
Rental equipment expenditures |
|
(753 |
) |
|
|
(1,100 |
) |
Proceeds from disposal of rental equipment |
|
198 |
|
|
|
231 |
|
Net rental equipment expenditures |
|
(555 |
) |
|
|
(869 |
) |
|
|
|
|
||||
Non-rental capital expenditures |
|
(127 |
) |
|
|
(119 |
) |
Proceeds from disposal of property and equipment |
|
6 |
|
|
|
11 |
|
Other |
|
— |
|
|
|
(15 |
) |
Free cash flow |
$ |
218 |
|
|
$ |
(196 |
) |
|
|
|
|
||||
Acquisitions, net of cash acquired |
|
(567 |
) |
|
|
(332 |
) |
Increase in net debt, excluding financing activities |
$ |
(349 |
) |
|
$ |
(528 |
) |
A - 8 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241022074014/en/
Leslie Hunziker
Senior Vice President,
Investor Relations, Communications & Sustainability
Leslie.hunziker@hercrentals.com
239-301-1675
Source: Herc Holdings Inc.
FAQ
What was Herc Holdings' (HRI) equipment rental revenue for Q3 2024?
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