Shifting Into High Gear
©2021 Herc Rentals Inc. All Rights Reserved.
Herc Rentals Team & Agenda
Larry Silber | Mark Humphrey |
President & Chief | Senior Vice President & |
Executive Officer | Chief Financial Officer |
Aaron Birnbaum | Leslie Hunziker |
Senior Vice President & | Senior Vice President |
Chief Operating Officer | Investor Relations & |
Communications |
Agenda
- Safe Harbor
- Q1 2023 Overview
- Q1 Operations Review
- Q1 Financial Review
- 2023 Outlook
- Q&A
NYSE: HRI
©2023 Herc Rentals Inc. All Rights Reserved.
2
Safe Harbor Statements and Non-GAAP Financial Measures
Forward-Looking Statements
This presentation includes forward-looking statements as that term is defined by the federal securities laws, including statements concerning our business plans and strategy, projected profitability, performance or cash flows, future capital expenditures, our growth strategy, including our ability to grow organically and through M&A, anticipated financing needs, business trends, our capital allocation strategy, liquidity and capital management, and other information that is not historical information. Forward looking statements are generally identified by the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," "looks," and future or conditional verbs, such as "will," "should," "could" or "may," as well as variations of such words or similar expressions. All forward- looking statements are based upon our current expectations and various assumptions and, there can be no assurance that our current expectations will be achieved. They are subject to future events, risks and uncertainties - many of which are beyond our control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Further information on the risks that may affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and in our other SEC filings. We undertake no obligation to update or revise forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.
Information Regarding Non-GAAP Financial Measures
In addition to results calculated according to accounting principles generally accepted in the United States ("GAAP"), the Company has provided certain information in this presentation that is not calculated according to GAAP ("non- GAAP"), such as adjusted net income, adjusted earnings per diluted share, EBITDA, adjusted EBITDA, adjusted EBITDA margin, REBITDA, REBITDA margin, REBITDA flow-through and free cash flow. Management uses these non-GAAP measures to evaluate operating performance and period-over-period performance of our core business without regard to potential distortions, and believes that investors will likewise find these non-GAAP measures useful in evaluating the Company's performance. These measures are frequently used by security analysts, institutional investors and other interested parties in the evaluation of companies in our industry.
Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to similarly titled measures of other companies. For the definitions of these terms, further information about management's use of these measures as well as a reconciliation of these non-GAAP measures to the most comparable GAAP financial measures, please see the appendix that accompanies this presentation.
NYSE: HRI
©2023 Herc Rentals Inc. All Rights Reserved.
3
First Quarter Financial Highlights: Accelerating Performance
Rental Revenue | Total Revenues | Adjusted EBITDA¹ | ||||||||||||||||||||
$ in millions | $654 | $ in millions | $740 | $ in millions | $308 | |||||||||||||||||
$527 | $568 | $237 | ||||||||||||||||||||
$378 | $387 | $400 | 24% | $476 | $437 | $453 | 30% | $184 | 30% | |||||||||||||
$142 | $146 | |||||||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | 2019 | 2020 | 2021 | 2022 | 2023 | 2019 | 2020 | 2021 | 2022 | 2023 | ||||||||
Earnings Per Diluted Share | Adjusted EBITDA Margin¹ | ROIC2 | ||||||||||||||||||||
40.7% | 41.7% | 41.6% | 9.8% | 10.6% | ||||||||||||||||||
$2.28 | ||||||||||||||||||||||
$1.92 | ||||||||||||||||||||||
6.1% | 6.3% | |||||||||||||||||||||
33.9% | 5.5% | |||||||||||||||||||||
$1.09 | 19% | |||||||||||||||||||||
29.9% | ||||||||||||||||||||||
$(0.23) | $(0.13) | |||||||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | 2019 | 2020 | 2021 | 2022 | 2023 | 2019 | 2020 | 2021 | 2022 | 2023 | ||||||||
- For a reconciliation to the most comparable GAAP financial measure, see the Appendix beginning on Slide 20
- The company's ROIC metric uses after-tax operating income for the trailing 12 months divided by average stockholders' equity, debt and deferred taxes, net of average cash. To mitigate the volatility related to fluctuations in the company's tax rate from period to period, the U.S. federal corporate statutory tax rate of 21% was used to calculate after-tax operating income.
NYSE: HRI
©2023 Herc Rentals Inc. All Rights Reserved.
4
First Quarter 2023 Highlights
Equipment rental market in N.A. grew 6%1 in Q1 2023
- Return to 1Q normal seasonal demand across regions, end markets
- Shift from equipment ownership to rental continues
- Supply chain constraints persist
- Ongoing industry rate discipline contributed to positive trends
HRI equipment rental revenue grew 24% in Q1 2023
- Record 1Q rental rate growth at 7% YoY
- Seasonal demand as expected across all regions, equipment categories
- Double-digitgrowth across core fleet categories and Pro-Solutions offerings
- Strategic acquisitions contributed 25% of YoY growth
HRI Total revenues grew 30% in Q1 2023
• Strong used equipment market; disposals increase with fleet life cycle management
1. Source: ARA / IHS Global Insights as of February 2023
NYSE: HRI
©2023 Herc Rentals Inc. All Rights Reserved.
5
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Disclaimer
Herc Holdings Inc. published this content on 20 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 April 2023 10:44:07 UTC.