On October 23, 2023, Herc Holdings Inc (HRI, Financial) released its financial results for the third quarter of 2023. The company reported a significant increase in total revenues and net income, demonstrating a robust performance amidst the challenging market conditions.
Financial Highlights
Herc Holdings Inc (HRI, Financial) reported record total revenues of $908 million in Q3 2023, a 22% increase from the same period last year. The company's net income also rose to $113 million, marking an 18% increase. The company's adjusted EBITDA of $410 million increased by 19%, with an adjusted EBITDA margin at 45.2%. Rental pricing also saw a year-over-year increase of 6.9%.
Strategic Alternatives for Cinelease
Amidst these strong financial results, the company announced that it is exploring strategic alternatives for its Cinelease studio entertainment business. This decision comes as a response to the changing dynamics in the film and studio entertainment industry, which now requires significant capital investment in studios.
Financial Tables Summary
For the nine months ended September 30, 2023, total revenues increased by 25% to $2,450 million compared to $1,953 million in the prior-year period. The company's net income was $256 million compared to $232 million in the prior-year period. Adjusted net income increased by 10% to $260 million, or $9.03 per diluted share, compared to $237 million, or 7.83 per diluted share, in the prior-year period.
Company's Performance Analysis
The company's strong financial performance can be attributed to its continued investments in premium fleet offerings, strategic acquisitions, and advanced technologies. These factors, coupled with robust demand across key end markets and a focus on cost discipline, are driving the momentum in the company's business and supporting sustainable, profitable growth over the long term.
Other Pertinent Details
The company completed eight acquisitions with a total of 14 locations and opened 13 new greenfield locations through the end of the third quarter of 2023. As of September 30, 2023, the company's total fleet was approximately $6.2 billion at OEC. The company also declared its quarterly dividend of $0.6325 payable to shareholders of record as of August 18, 2023, with a payment date of September 1, 2023.
