Herc Holdings Q3 2020 Earnings Report
Key Takeaways
Herc Holdings reported Q3 2020 results with equipment rental revenue of $402.3 million and total revenues of $456.7 million. Net income was $39.9 million, or $1.35 per diluted share. Adjusted EBITDA was $196.7 million with an adjusted EBITDA margin of 43.1%. Full year 2020 adjusted EBITDA guidance was raised to a range of $655 million to $675 million.
Equipment rental revenue was $402.3 million, while total revenues reached $456.7 million.
Net income amounted to $39.9 million, translating to $1.35 per diluted share.
Adjusted EBITDA stood at $196.7 million, with an improved adjusted EBITDA margin of 43.1%.
Full year 2020 adjusted EBITDA guidance was raised to a range of $655 million to $675 million.
Herc Holdings
Herc Holdings
Herc Holdings Revenue by Segment
Forward Guidance
The Company raised adjusted EBITDA guidance for the full year to a range of $655 million to $675 million and net fleet capital expenditures to a range of $190 million to $210 million.
Positive Outlook
- Improving efficiency in the third quarter reflects ability to manage through challenging times.
- Adjusted EBITDA margin for the fourth quarter and full year should improve versus the comparable prior-year periods.
- Strong free cash flow position for the nine-month period ending September 30, 2020, is already substantially higher than the amount generated for the full year 2019, and should continue to improve during the remainder of the year.
- Reduced leverage and ample liquidity, is well positioned for 2021.
- Committed to helping customers operate efficiently, effectively and safely.
Challenges Ahead
- Estimate fourth quarter fleet on rent is likely to decline approximately 4% to 6%.
- Rental revenue to decline approximately 6% to 8% year-over-year.
- COVID-19 business slowdown impacted volume and pricing.
- Challenging business environment.
- Normal seasonality returned to the business
Revenue & Expenses
Visualization of income flow from segment revenue to net income