Third Quarter 2024 Highlights
- Record equipment rental revenue of $866 million, an increase of
13%
- Record total revenues of $965 million, an increase of 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 $122 million, or $4.28 per diluted
share
- Adjusted EBITDA of $446 million increased 9%; adjusted EBITDA
margin of 46.2%
- Free cash flow of $218 million for the nine months ended
September 30, 2024
Herc Holdings Inc. (NYSE: HRI) ("Herc Holdings" or the
"Company") today reported financial results for the quarter ended
September 30, 2024.
“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 13% to a new
quarterly record, primarily reflecting the continued robust growth
from mega projects and contributions from our increased branch
network and recent acquisitions. This growth was achieved despite a
tough year-over-year comparison and a challenging interest rate
environment for local-project starts,” said Silber.
“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 $965 million compared to
$908 million in the prior-year period. The year-over-year increase
of $57 million primarily related to an increase in equipment rental
revenue of $101 million, reflecting positive pricing of 2.3% and
increased volume of 10.7%. Sales of rental equipment decreased by
$43 million during the period. Fleet rotation in the prior year
period was accelerated due to easing of supply chain disruptions in
certain categories of equipment.
- Dollar utilization increased to 42.2% in the third
quarter compared to 42.1% in the prior-year period.
- Direct operating expenses were $334 million, or 38.6% of
equipment rental revenue, compared to $288 million, or 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 $174
million due to higher year-over-year average fleet size. Non-rental
depreciation and amortization increased 14% to $33 million
primarily due to amortization of acquisition intangible
assets.
- Selling, general and administrative expenses was $123
million, or 14.2% of equipment rental revenue, compared to $115
million, or 15.0% in the prior-year period due to continued focus
on improving operating leverage while expanding revenues.
- Interest expense increased to $69 million compared with
$60 million in the prior-year period due to increased borrowings
primarily to fund acquisition growth and invest in rental
equipment.
- Net income was $122 million compared to $113 million in
the prior-year period. Adjusted net income increased 9% to $124
million, or $4.35 per diluted share, compared to $114 million, or
$4.00 per diluted share, in the prior-year period. The effective
tax rate was 24% compared to 23% in the prior-year period.
- Adjusted EBITDA increased 9% to $446 million compared to
$410 million in the prior-year period and adjusted EBITDA margin
was 46.2% compared to 45.2% in the prior-year period.
2024 Nine Months Financial Results
- Total revenues increased 7% to $2,617 million compared
to $2,450 million in the prior-year period. The year-over-year
increase of $167 million primarily related to an increase in
equipment rental revenue of $229 million, reflecting positive
pricing of 3.5% and increased volume of 8.4%, partially offset by
unfavorable mix driven primarily by inflation. Sales of rental
equipment decreased by $63 million during the period. Fleet
rotation in the prior year period was accelerated due to easing of
supply chain disruptions in certain categories of equipment.
- Dollar utilization increased to 41.0% compared to 40.8%
in the prior-year period.
- Direct operating expenses were $967 million, or 41.1% of
equipment rental revenue, compared to $851 million, or 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 $499
million due to higher year-over-year average fleet size. Non-rental
depreciation and amortization increased 11% to $92 million
primarily due to amortization of acquisition intangible
assets.
- Selling, general and administrative expenses were $358
million, or 15.2% of equipment rental revenue, compared to $332
million, or 15.7% in the prior-year period due to continued focus
on improving operating leverage while expanding revenues.
- Interest expense increased to $193 million compared with
$162 million in the prior-year period due to increased borrowings
primarily to fund acquisition growth and invest in rental
equipment.
- Net income was $257 million compared to $256 million in
the prior-year period. Adjusted net income increased 2% to $265
million, or $9.30 per diluted share, compared to $260 million, or
$9.03 per diluted share, in the prior-year period. The effective
tax rate was 23% compared to 21% in the prior-year period.
- Adjusted EBITDA increased 7% to $1,145 million compared
to $1,070 million in the prior-year period and adjusted EBITDA
margin was 43.8% compared to 43.7% 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 $7.1 billion at OEC.
- 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 $4.0 billion 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 $1.9 billion of
liquidity as of September 30, 2024.
- The Company declared its quarterly dividend of $0.665 paid to
shareholders of record as of August 23, 2024 on September 6,
2024.
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 6% to 9% compared to full year 2023 results, excluding
Cinelease. The sale process for the Cinelease studio entertainment
business is ongoing.
Prior
Current
Equipment rental revenue growth:
7% to 10%
9.5% to 11%
Adjusted EBITDA:
$1.55 billion to $1.60
billion
$1.55 billion to $1.60
billion
Net rental equipment capital expenditures
after gross capex:
$500 million to $700 million,
after gross capex of $750 million to $1 billion
$650 million to $700 million
after gross capex of $950 million to $1 billion
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. U.S. Eastern Time. Interested U.S. parties may
call +1-800-715-9871 and international participants should call the
country specific dial in numbers listed at
https://registrations.events/directory/international/itfs.html,
using the access code: 9128891. Please dial in at least 10 minutes
before the call start time to ensure that you are connected to the
call and to register your name and company.
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 North America, and 2023 total revenues were
approximately $3.3 billion. We offer products and services aimed at
helping customers work more efficiently, effectively, and safely.
Our classic fleet includes aerial, earthmoving, material handling,
trucks and trailers, air compressors, compaction, and lighting
equipment. Our ProSolutions® offering includes industry-specific,
solutions-based services in tandem with power generation, climate
control, remediation and restoration, pumps, and trench shorting
equipment as well as our ProContractor professional grade tools. We
employ approximately 7,700 employees, who equip our customers and
communities to build a brighter future. Learn more at www.HercRentals.com and follow us on Instagram,
Facebook and LinkedIn.
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 the United States (“GAAP”), the
Company has provided certain information in this release that is
not calculated according to GAAP (“non-GAAP”), such as EBITDA,
adjusted EBITDA, adjusted EBITDA margin, adjusted net income,
adjusted earnings per diluted common share, free cash flow and
certain results excluding the Cinelease studio entertainment
business. Management uses these non-GAAP measures to evaluate
operating performance and period-over-period performance of our
core business without regard to potential distortions, and believes
that investors will likewise find these non-GAAP measures useful in
evaluating the Company’s performance. These measures are frequently
used by security analysts, institutional investors and other
interested parties in the evaluation of companies in our industry.
Non-GAAP measures should not be considered in isolation or as a
substitute for our reported results prepared in accordance with
GAAP and, as calculated, may not be comparable to similarly titled
measures of other companies. For the definitions of these terms,
further information about management’s use of these measures as
well as a reconciliation of these non-GAAP measures to the most
comparable GAAP financial measures, please see the supplemental
schedules that accompany this release.
(See Accompanying Tables)
HERC HOLDINGS INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
Unaudited
(In millions, except per share
data)
Three Months Ended September
30,
Nine Months Ended September
30,
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 September
30, 2024
Three Months Ended September
30, 2023
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 September
30, 2024
Nine Months Ended September
30, 2023
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 25.5% in the three and nine months ended September 30, 2024 and
25.7% in the three and nine months ended September 30, 2023 and
reflects the statutory rates in the applicable entities.
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
Herc (NYSE:HRI)
Gráfica de Acción Histórica
De Dic 2024 a Ene 2025
Herc (NYSE:HRI)
Gráfica de Acción Histórica
De Ene 2024 a Ene 2025
