Herc Holdings reports revenue increase; raises full year guidance

Herc Holdings, Bonita Springs, Fla., today reported earning $453.8 million in total revenue during the 2021 first quarter, up 4 percent compared to $436.2 million in the 2020 first quarter. The year-over-year increase of $17.6 million was related primarily to higher equipment rental revenue of $13.9 million and an increase in sales of rental equipment of $4.2 million.

Equipment rental revenue was $400.4 million in the 2021 first quarter, up 3.6 percent compared to $386.5 million in the 2020 first quarter.

“Our year is off to a great start with first quarter total revenues up 4 percent and adjusted EBITDA up 25 percent compared with last year,” said Larry Silber, president and CEO. “Our adjusted EBITDA margin hit a record for the first quarter of 40.7 percent and reflects the strength of our operating model. Strong performance by our ProSolutions® and entertainment rental businesses drove rental revenue growth, and the efficient execution of our operating model propelled adjusted EBITDA margin expansion of 680 basis points. Our focus on customer service and the consistent implementation of a strategy to diversify our customer and industry base continues to demonstrate the strength of our business.”

Herc also has updated its 2021 guidance ranges. Adjusted EBITDA in 2021 is expected to be $800 million to $840 million — compared to the previous guidance of $730 million to $760 million. Net rental equipment capital expenditures are expected to remain the same at $400 million to $450 million.

“Our strong first quarter performance along with the trends we are seeing in the market have prompted us to raise our adjusted EBITDA guidance for the year,” said Silber.

“Our guidance range for adjusted EBITDA now exceeds our pre-pandemic 2019 results by 8 to 13 percent. Overall, our end markets are showing positive momentum and demand for rental equipment is increasing. We intend to continue to take market share in our specialty businesses and to maximize our operating leverage as revenue growth accelerates in the seasonally strong part of the year,” he added.