October 29, 2023
Herc Holdings
, Bonita Springs, Fla., reported earning a record $908 million in total revenue during the 2023 third quarter, up 22 percent compared to $745 million in the 2022 third quarter. The year-over-year increase of $163 million was primarily related to an increase in equipment rental revenue of $59 million and an increase in sales of rental equipment of $103 million.
Equipment rental revenue for the third quarter was $765 million compared to $706 million in the prior-year period.
“We continued to leverage our core strengths in market coverage, fleet management, pricing discipline and a best-in-class team to deliver double-digit revenue and Adjusted EBITDA [Earnings Before Interest, Taxes, Depreciation and Amortization] growth in the third quarter,” said Larry Silber, president and CEO. “Over the course of the quarter, we also successfully rebalanced our fleet after a wave of back-ordered supply was delivered in the first half of the year. And, with the health of the supply chain improving, we were able to accelerate used-fleet sales after two years to refresh our offering and make way for the new equipment.
“Continued investments in our premium fleet offering, strategic acquisitions and advanced technologies, along with robust demand across key end markets and a focus on cost discipline are driving the momentum in our business and will support sustainable, profitable growth over the long term,” Silber said.
“Today, we also are announcing that we will begin exploring strategic alternatives for Cinelease, our studio management and lighting and grip equipment rental business. This decision was made due to the changing dynamics for lighting and grip rental providers in the film and studio entertainment industry, which has shifted to requiring significant capital investment in studios. For Herc to allocate capital for growth in this new real estate-focused business model would be a divergence from our stated strategy.”
For the first nine months of the year, total revenue was $2.45 billion, up 25 percent compared to $1.95 billion in the prior-year period. The year-over-year increase of $497 million was related to an increase in equipment rental revenue of $283 million, partially offset by an unfavorable mix driven by the studio entertainment business and inflation. Sales of rental equipment increased $210 million compared to the prior-year period.
Equipment rental revenue for the first nine months of the year was $2.12 billion compared to $1.84 billion in the prior-year period.
The company narrowed its full year 2023 adjusted EBITDA guidance range to $1.45 billion to $1.50 billion. Previously the company’s adjusted EBITDA guidance range was $1.45 billion to $1.55 billion.
