2017 Q1 Form 10-Q Financial Statement

#000136447917000022 Filed on May 09, 2017

View on sec.gov

Income Statement

Concept 2017 Q1 2016 Q1
Revenue $389.4M $2.311B
YoY Change -83.15% -5.83%
Cost Of Revenue $8.400M $13.10M
YoY Change -35.88% -94.31%
Gross Profit $381.0M $2.298B
YoY Change -83.42% 1243.02%
Gross Profit Margin 97.84% 99.43%
Selling, General & Admin $81.10M $62.50M
YoY Change 29.76% -76.5%
% of Gross Profit 21.29% 2.72%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $104.6M $92.30M
YoY Change 13.33% -9.42%
% of Gross Profit 27.45% 4.02%
Operating Expenses $81.10M $62.50M
YoY Change 29.76% -76.5%
Operating Profit $299.9M $2.235B
YoY Change -86.58% -2455.53%
Interest Expense -$41.10M $157.0M
YoY Change -126.18% 1.95%
% of Operating Profit -13.7% 7.02%
Other Income/Expense, Net $300.0K $900.0K
YoY Change -66.67% -118.0%
Pretax Income $54.30M -$1.500M
YoY Change -3720.0% -122.39%
Income Tax -$15.10M $0.00
% Of Pretax Income -27.81%
Net Earnings $39.20M -$1.500M
YoY Change -2713.33% -188.24%
Net Earnings / Revenue 10.07% -0.06%
Basic Earnings Per Share -$1.39 -$0.05
Diluted Earnings Per Share -$1.39 -$0.05
COMMON SHARES
Basic Shares Outstanding 28.30M shares 28.30M shares
Diluted Shares Outstanding 28.30M shares 28.30M shares

Balance Sheet

Concept 2017 Q1 2016 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $24.30M $12.30M
YoY Change 97.56%
Cash & Equivalents $24.30M $19.90M
Short-Term Investments
Other Short-Term Assets $20.30M $32.00M
YoY Change -36.56%
Inventory $25.70M $53.00M
Prepaid Expenses
Receivables $287.0M $267.2M
Other Receivables $10.90M $8.700M
Total Short-Term Assets $368.2M $340.2M
YoY Change 8.23%
LONG-TERM ASSETS
Property, Plant & Equipment $268.9M $1.214B
YoY Change -77.85% -7.61%
Goodwill $91.00M $1.353B
YoY Change -93.27% -0.22%
Intangibles $309.5M $3.804B
YoY Change -91.86% -4.37%
Long-Term Investments
YoY Change
Other Assets $34.60M $16.00M
YoY Change 116.25%
Total Long-Term Assets $3.076B $23.69B
YoY Change -87.01%
TOTAL ASSETS
Total Short-Term Assets $368.2M $340.2M
Total Long-Term Assets $3.076B $23.69B
Total Assets $3.445B $24.03B
YoY Change -85.66% -2.33%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $202.1M $148.9M
YoY Change 35.73%
Accrued Expenses $99.20M $51.80M
YoY Change 91.51%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $73.70M
YoY Change -100.0%
Long-Term Debt Due $15.60M $10.30M
YoY Change 51.46%
Total Short-Term Liabilities $328.3M $325.3M
YoY Change 0.92%
LONG-TERM LIABILITIES
Long-Term Debt $2.123B $50.70M
YoY Change 4087.18%
Other Long-Term Liabilities $32.60M $31.90M
YoY Change 2.19%
Total Long-Term Liabilities $32.60M $82.60M
YoY Change -60.53%
TOTAL LIABILITIES
Total Short-Term Liabilities $328.3M $325.3M
Total Long-Term Liabilities $32.60M $82.60M
Total Liabilities $3.163B $21.99B
YoY Change -85.62% -1.18%
SHAREHOLDERS EQUITY
Retained Earnings -$664.4M -$442.0M
YoY Change 50.32% -39.78%
Common Stock $300.0K $3.363B
YoY Change -99.99% 0.96%
Preferred Stock
YoY Change
Treasury Stock (at cost) $692.0M $692.0M
YoY Change 0.0% 695.4%
Treasury Stock Shares 2.700M shares 41.00M shares
Shareholders Equity $281.7M $2.038B
YoY Change
Total Liabilities & Shareholders Equity $3.445B $24.03B
YoY Change -85.66% -2.33%

Cashflow Statement

Concept 2017 Q1 2016 Q1
OPERATING ACTIVITIES
Net Income $39.20M -$1.500M
YoY Change -2713.33% -188.24%
Depreciation, Depletion And Amortization $104.6M $92.30M
YoY Change 13.33% -9.42%
Cash From Operating Activities $89.90M $102.6M
YoY Change -12.38% -25.22%
INVESTING ACTIVITIES
Capital Expenditures $17.90M $4.700M
YoY Change 280.85% -103.35%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities $46.60M $45.80M
YoY Change 1.75% -41.73%
Cash From Investing Activities -$28.90M $4.400M
YoY Change -756.82% -107.14%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $123.5M $0.00
YoY Change -100.0%
Cash From Financing Activities -$62.20M -$112.4M
YoY Change -44.66% 48.87%
NET CHANGE
Cash From Operating Activities $89.90M $102.6M
Cash From Investing Activities -$28.90M $4.400M
Cash From Financing Activities -$62.20M -$112.4M
Net Change In Cash -$1.100M -$5.400M
YoY Change -79.63% -5500.0%
FREE CASH FLOW
Cash From Operating Activities $89.90M $102.6M
Capital Expenditures $17.90M $4.700M
Free Cash Flow $72.00M $97.90M
YoY Change -26.46% -64.71%

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OtherComprehensiveIncomeLossNetOfTax
1700000 USD
CY2016Q1 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
22300000 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
1700000 USD
CY2016Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossBeforeTax
200000 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossBeforeTax
0 USD
CY2016Q1 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Before Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodBeforeTax
0 USD
CY2017Q1 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Before Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodBeforeTax
-400000 USD
CY2016Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
32000000 USD
CY2017Q1 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
32600000 USD
CY2016Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
900000 USD
CY2017Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
600000 USD
CY2016Q1 us-gaap Other Operating Activities Cash Flow Statement
OtherOperatingActivitiesCashFlowStatement
0 USD
CY2017Q1 us-gaap Other Operating Activities Cash Flow Statement
OtherOperatingActivitiesCashFlowStatement
1600000 USD
CY2016Q1 us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
300000 USD
CY2017Q1 us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
0 USD
CY2016Q1 us-gaap Payments To Acquire Equipment On Lease
PaymentsToAcquireEquipmentOnLease
36700000 USD
CY2017Q1 us-gaap Payments To Acquire Equipment On Lease
PaymentsToAcquireEquipmentOnLease
56200000 USD
CY2016Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
4700000 USD
CY2017Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
17900000 USD
CY2016Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2017Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2016Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
13300000 shares
CY2016Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
13300000 shares
CY2017Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
13300000 shares
CY2016Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2017Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2016Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2017Q1 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2016Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2017Q1 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2016Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
15900000 USD
CY2017Q1 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
14700000 USD
CY2016Q1 us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
365000000 USD
CY2017Q1 us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
173800000 USD
CY2016Q1 us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
1200000 USD
CY2017Q1 us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
500000 USD
CY2016Q1 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
8700000 USD
CY2017Q1 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
0 USD
CY2016Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
272000000 USD
CY2017Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
268900000 USD
CY2016Q4 us-gaap Property Subject To Or Available For Operating Lease Accumulated Depreciation
PropertySubjectToOrAvailableForOperatingLeaseAccumulatedDepreciation
1305500000 USD
CY2017Q1 us-gaap Property Subject To Or Available For Operating Lease Accumulated Depreciation
PropertySubjectToOrAvailableForOperatingLeaseAccumulatedDepreciation
1313000000 USD
CY2016Q4 us-gaap Property Subject To Or Available For Operating Lease Gross
PropertySubjectToOrAvailableForOperatingLeaseGross
3695500000 USD
CY2017Q1 us-gaap Property Subject To Or Available For Operating Lease Gross
PropertySubjectToOrAvailableForOperatingLeaseGross
3685300000 USD
CY2016Q4 us-gaap Property Subject To Or Available For Operating Lease Net
PropertySubjectToOrAvailableForOperatingLeaseNet
2390000000 USD
CY2017Q1 us-gaap Property Subject To Or Available For Operating Lease Net
PropertySubjectToOrAvailableForOperatingLeaseNet
2372300000 USD
CY2016Q1 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
12200000 USD
CY2017Q1 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
10600000 USD
CY2016Q1 us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
365000000 USD
CY2017Q1 us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
105000000 USD
CY2016Q1 us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
2500000 USD
CY2017Q1 us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
3800000 USD
CY2016Q1 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
0 USD
CY2017Q1 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
123500000 USD
CY2016Q4 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
7000000 USD
CY2017Q1 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
5600000 USD
CY2016Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-625200000 USD
CY2017Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-664400000 USD
CY2016Q1 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
17300000 USD
CY2017Q1 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
11500000 USD
CY2016Q1 us-gaap Sales Revenue Net
SalesRevenueNet
365600000 USD
CY2017Q1 us-gaap Sales Revenue Net
SalesRevenueNet
389400000 USD
CY2016Q1 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
3000000 USD
CY2017Q1 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
2900000 USD
CY2016Q1 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
62500000 USD
CY2017Q1 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
81200000 USD
CY2016Q1 us-gaap Share Based Compensation
ShareBasedCompensation
1000000 USD
CY2017Q1 us-gaap Share Based Compensation
ShareBasedCompensation
1500000 USD
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
317700000 USD
CY2017Q1 us-gaap Stockholders Equity
StockholdersEquity
281700000 USD
CY2016Q2 us-gaap Stockholders Equity Note Stock Split Conversion Ratio1
StockholdersEquityNoteStockSplitConversionRatio1
0.0667
CY2016Q4 us-gaap Taxes Payable Current
TaxesPayableCurrent
10000000 USD
CY2017Q1 us-gaap Taxes Payable Current
TaxesPayableCurrent
11400000 USD
CY2016Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
2700000 shares
CY2017Q1 us-gaap Treasury Stock Shares
TreasuryStockShares
2700000 shares
CY2016Q4 us-gaap Treasury Stock Value
TreasuryStockValue
692000000 USD
CY2017Q1 us-gaap Treasury Stock Value
TreasuryStockValue
692000000 USD
CY2016Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
28300000 shares
CY2017Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
28300000 shares
CY2016Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
28300000 shares
CY2017Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
28300000 shares
CY2017Q1 us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;"></font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Background</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Herc Holdings Inc. ("we," "us," "our," "Herc Holdings" or "the Company," or as the context requires, "its") is one of the leading equipment rental suppliers with approximately </font><font style="font-family:inherit;font-size:10pt;">275</font><font style="font-family:inherit;font-size:10pt;"> company-owned locations at March 31, 2017, principally in North America. The Company conducts substantially all of its operations through subsidiaries, including Herc Rentals Inc. ("Herc"). Operations are conducted under the Herc Rentals brand in the United States and under the Hertz Equipment Rental brand in Canada and other international locations. The Company has been in the equipment rental business since </font><font style="font-family:inherit;font-size:10pt;">1965</font><font style="font-family:inherit;font-size:10pt;"> and is a full-line equipment rental supplier in key markets, including commercial and residential construction, industrial and manufacturing, civil infrastructure, automotive, government and municipalities, energy, remediation, emergency response, facilities, entertainment and agriculture, as well as refineries and petrochemicals.&#160;The equipment rental business is supported by ProSolutions</font><font style="font-family:inherit;font-size:8pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">TM</sup></font><font style="font-family:inherit;font-size:10pt;">, the Company's industry-specific solutions-based services, and its professional grade tools, commercial vehicles, and pump, power and climate control product offerings. </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2016</font><font style="font-family:inherit;font-size:10pt;"> the Company, in its previous form as the holding company of both the existing equipment rental operations as well as the former vehicle rental operations (in its form prior to the Spin-Off, "Hertz Holdings"), completed a spin-off (the "Spin-Off") of its global vehicle rental business through a dividend to stockholders of all of the issued and outstanding common stock of Hertz Rental Car Holding Company, Inc., which was re-named Hertz Global Holdings, Inc. ("New Hertz") in connection with the Spin-Off. New Hertz is now an independent public company and trades on the New York Stock Exchange under the symbol "HTZ." New Hertz continues to operate its global vehicle rental business through its operating subsidiaries including The Hertz Corporation ("THC"). The Company changed its name to Herc Holdings Inc. on June 30, 2016 and trades on the New York Stock Exchange under the symbol &#8220;HRI.&#8221; Following the Spin-Off, the Company continues to operate its global equipment rental business through its operating subsidiaries, including Herc. </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For accounting purposes, due to the relative significance of New Hertz to Hertz Holdings, New Hertz was considered the spinnor or divesting entity in the Spin-Off and Herc Holdings was considered the spinnee or divested entity. As a result, despite the legal form of the transaction, New Hertz was the "accounting successor" to Hertz Holdings. Under the accounting rules, the historical financial information of New Hertz is required to reflect the financial information of Hertz Holdings, as if New Hertz spun off Herc Holdings in the Spin-Off. In contrast, the historical financial information of Herc Holdings for the three months ended March 31, 2016 presented in these condensed consolidated financial statements reflects the financial information of the equipment rental business and certain parent legal entities of Herc as historically operated as part of Hertz Holdings, as if Herc Holdings was a stand-alone company for such period. The historical financial information of Herc Holdings presented in these condensed consolidated financial statements is not necessarily indicative of what Herc Holdings&#8217; financial position or results of operations actually would have been had Herc Holdings operated as a separate, independent company for the period presented.</font></div></div>
CY2017Q1 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Reclassification of Prior Period Presentation</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior period amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported condensed consolidated balance sheets, results of operations, equity or cash flows for any period presented.</font></div></div>

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