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Mar 31, 2021

Herc Holdings Q1 2021 Earnings Report

Herc Holdings' first quarter total revenues increased, adjusted EBITDA expanded, and free cash flow increased.

Key Takeaways

Herc Holdings reported a strong start to the year with a 4% increase in total revenues and a 25% increase in adjusted EBITDA compared to the previous year. The company's adjusted EBITDA margin hit a record for the first quarter, reflecting the strength of their operating model. The company also raised its full year adjusted EBITDA guidance.

Equipment rental revenue increased by 3.6% to $400.4 million.

Total revenues increased by 4.0% to $453.8 million.

Net income increased to $32.9 million, or $1.09 per diluted share.

Adjusted EBITDA expanded 25.0% to $184.6 million.

Total Revenue
$454M
Previous year: $436M
+4.0%
EPS
$1.1
Previous year: $0.04
+2650.0%
Rental Fleet OEC
$3.63B
Previous year: $3.8B
-4.5%
Average Fleet Age
48
Previous year: 46
+4.3%
Gross Profit
$128M
Previous year: $99.1M
+29.0%
Cash and Equivalents
$32.9M
Previous year: $55.8M
-41.0%
Free Cash Flow
$121M
Previous year: $86M
+41.0%
Total Assets
$3.58B
Previous year: $3.77B
-5.1%

Herc Holdings

Herc Holdings

Herc Holdings Revenue by Segment

Forward Guidance

The Company updated 2021 guidance ranges for Adjusted EBITDA to $800 million to $840 million and maintained $400 million to $450 million for net rental equipment capital expenditures.

Positive Outlook

  • Strong first quarter performance
  • Positive momentum in end markets
  • Increasing demand for rental equipment
  • Intention to continue taking market share in specialty businesses
  • Maximizing operating leverage as revenue growth accelerates

Revenue & Expenses

Visualization of income flow from segment revenue to net income