Loading...
•
Sep 30, 2020
Herc Holdings Q3 2020 Earnings Report
Herc Holdings' financial performance reflected sequential volume improvement and successful cost control initiatives.
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
Revenue by Segment
Equipment Rental Revenue
CapyFin.comSales of Rental Equip. Revenue
CapyFin.comNew Equip., Parts, Supplies Revenue
CapyFin.comService and Other Revenue
CapyFin.com 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