Fourth Quarter 2024 Highlights
- Record equipment rental revenue of $839 million, an increase of
12%
- Record total revenues of $951 million, an increase of 14%
- Rental pricing increased 2.1% year-over-year
- Reported net loss of $46 million or $1.62 per share driven by
loss on Cinelease assets held for sale
- Adjusted net income of $102 million or $3.58 per diluted share,
an 11% increase
- Adjusted EBITDA of $438 million increased 15%; adjusted EBITDA
margin of 46.1%
Full Year 2024 Highlights
- Record equipment rental revenue of $3,189 million, an increase
of 11%
- Record total revenues of $3,568 million, an increase of 9%
- Rental pricing increased 3.2% year-over-year
- Reported net income of $211 million or $7.40 per diluted
share
- Adjusted net income of $367 million or $12.88 per diluted
share, an increase of 5%
- Adjusted EBITDA of $1,583 million increased 9%; adjusted EBITDA
margin of 44.4%
- Free cash flow of $314 million for the year ended December 31,
2024
Herc Holdings Inc. (NYSE: HRI) ("Herc Holdings" or the
"Company") today reported financial results for the quarter and
full year ended December 31, 2024.
"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 compared to
$831 million in the prior-year period. The year-over-year increase
of $120 million primarily related to an increase in equipment
rental revenue of $91 million, reflecting positive pricing of 2.1%
and increased volume of 11.6%. Sales of rental equipment increased
by $28 million during the period.
- Dollar utilization decreased to 40.6% in the fourth
quarter compared to 40.9% in the prior-year period.
- Direct operating expenses were $324 million, or 38.6% of
equipment rental revenue, compared to $287 million, or 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 due to higher year-over-year average fleet size. Non-rental
depreciation and amortization increased 21% to $35 million
primarily due to amortization of acquisition intangible
assets.
- Selling, general and administrative expenses were $122
million, or 14.5% of equipment rental revenue, compared to $116
million, or 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 compared with
$62 million in the prior-year period due to higher average debt
balances, primarily to fund acquisition growth and invest in rental
equipment, partially offset by slightly lower interest rates on
floating rate debt.
- Loss on assets held for sale was $194 million during the
fourth quarter of 2024 to adjust the carrying value of Cinelease
net assets to its fair value less estimated costs to sell.
- Net loss was $46 million compared to net income of $91
million in the prior-year period. The net loss in the current
period was the result of the loss on Cinelease assets held for
sale. Adjusted net income increased 11% to $102 million, or $3.58
per diluted share, compared to $92 million, or $3.24 per diluted
share, in the prior-year period. The income tax provision in the
fourth quarter was driven primarily by non-deductible goodwill
impairment related to the loss on Cinelease assets held for sale
and certain other non-deductible expenses.
- Adjusted EBITDA increased 15% to $438 million compared
to $382 million in the prior-year period and adjusted EBITDA margin
was 46.1% compared to 46.0% in the prior-year period.
2024 Full Year Financial Results
- Total revenues increased 9% to $3,568 million compared
to $3,282 million in the prior-year period. The year-over-year
increase of $286 million primarily related to an increase in
equipment rental revenue of $319 million, or 11%, reflecting
positive pricing of 3.2% and increased volume of 9.3%, partially
offset by unfavorable mix driven primarily by inflation. Sales of
rental equipment decreased by $35 million year over year. 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 40.9% compared to 40.8%
in the prior-year period.
- Direct operating expenses were $1,291 million, or 40.5%
of equipment rental revenue, compared to $1,139 million, or 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 due to higher year-over-year average fleet size. Non-rental
depreciation and amortization increased 13% to $127 million
primarily due to amortization of acquisition intangible
assets.
- Selling, general and administrative expenses were $480
million, or 15.1% of equipment rental revenue, compared to $448
million, or 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 compared with
$224 million in the prior-year period due to higher average debt
balances primarily to fund acquisition growth and invest in rental
equipment.
- Loss on assets held for sale was $194 million during
2024 to adjust the carrying value of Cinelease net assets to its
fair value less estimated costs to sell.
- Net income was $211 million compared to $347 million in
the prior-year period. Net income was impacted for the full year by
the loss on Cinelease assets held for sale. Adjusted net income
increased to $367 million, or $12.88 per diluted share, an increase
of 5%, compared to $353 million, or $12.30 per diluted share, in
the prior-year period. The effective tax rate was 27% compared to
22% 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 compared
to $1,452 million in the prior-year period and adjusted EBITDA
margin was 44.4% compared to 44.2% 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 at OEC.
- Average fleet at OEC in the fourth quarter increased 13%
compared to the prior-year period and increased 11% 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 as of December 31, 2024, with net
leverage of 2.5x unchanged from December 31, 2023. Cash and cash
equivalents and unused commitments under the ABL Credit Facility
contributed to approximately $1.9 billion of liquidity as of
December 31, 2024.
- The Company declared its quarterly dividend of $0.665 paid to
shareholders of record as of December 16, 2024 on December 27,
2024.
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:
4% to 6%
Adjusted EBITDA:
$1.575 billion to $1.650
billion
Net rental equipment capital
expenditures:
$400 million to $600 million
Gross capex:
$700 million to $900 million
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. 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
451 locations across North America, and 2024 total revenues were
approximately $3.6 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 7,600 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 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 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
(In millions, except per share
data)
Three Months Ended December
31,
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 December
31, 2024
Three Months Ended December
31, 2023
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 December 31,
2024
Year Ended December 31,
2023
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 25.5% 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.
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
Herc (NYSE:HRI)
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