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Mar 31, 2022

Herc Holdings Q1 2022 Earnings Report

Herc Holdings reported a strong first quarter with record equipment rental revenue and increased full year guidance.

Key Takeaways

Herc Holdings reported a strong first quarter in 2022, with equipment rental revenue increasing by 31.6% to a record $526.8 million and total revenues increasing by 25.0% to $567.3 million. Net income increased by 77.8% to $58.5 million, and adjusted EBITDA grew by 28.3% to $236.8 million. The company has increased its full year 2022 adjusted EBITDA guidance.

Equipment rental revenue increased 31.6% to a record $526.8 million.

Total revenues increased 25.0% to $567.3 million.

Dollar utilization increased 280 basis points to a record 41.4%.

Net income increased 77.8% to $58.5 million or $1.92 per diluted share.

Total Revenue
$567M
Previous year: $454M
+25.0%
EPS
$1.95
Previous year: $1.1
+77.3%
Rental Fleet OEC
$4.6B
Previous year: $3.63B
+26.7%
Average Fleet Age
48
Previous year: 48
+0.0%
Gross Profit
$178M
Previous year: $128M
+39.3%
Cash and Equivalents
$22.8M
Previous year: $32.9M
-30.7%
Free Cash Flow
$130M
Previous year: $121M
+7.2%
Total Assets
$4.72B
Previous year: $3.58B
+31.9%

Herc Holdings

Herc Holdings

Herc Holdings Revenue by Segment

Forward Guidance

The Company increased its full year 2022 adjusted EBITDA guidance range and maintained net rental capital expenditures guidance. Adjusted EBITDA is now expected to be between $1,175 million to $1,245 million. Net rental equipment capital expenditures are expected to be between $900 million to $1,120 million.

Positive Outlook

  • Continued strong momentum in operating performance.
  • Confidence in executing organic growth strategy.
  • Strategic M&A supplementing growth.
  • Acquisition of Cloverdale Equipment Company closed.
  • Positive outlook for the full year 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income