2018 Q1 Form 10-Q Financial Statement

#000136447918000010 Filed on May 09, 2018

View on sec.gov

Income Statement

Concept 2018 Q1 2017 Q1
Revenue $431.3M $389.4M
YoY Change 10.76% -83.15%
Cost Of Revenue $9.000M $8.400M
YoY Change 7.14% -35.88%
Gross Profit $422.3M $381.0M
YoY Change 10.84% -83.42%
Gross Profit Margin 97.91% 97.84%
Selling, General & Admin $74.50M $81.10M
YoY Change -8.14% 29.76%
% of Gross Profit 17.64% 21.29%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $107.1M $104.6M
YoY Change 2.39% 13.33%
% of Gross Profit 25.36% 27.45%
Operating Expenses $74.50M $81.10M
YoY Change -8.14% 29.76%
Operating Profit $347.8M $299.9M
YoY Change 15.97% -86.58%
Interest Expense -$32.60M -$41.10M
YoY Change -20.68% -126.18%
% of Operating Profit -9.37% -13.7%
Other Income/Expense, Net $300.0K $300.0K
YoY Change 0.0% -66.67%
Pretax Income $15.20M $54.30M
YoY Change -72.01% -3720.0%
Income Tax -$5.100M -$15.10M
% Of Pretax Income -33.55% -27.81%
Net Earnings $10.10M $39.20M
YoY Change -74.23% -2713.33%
Net Earnings / Revenue 2.34% 10.07%
Basic Earnings Per Share $0.36 -$1.39
Diluted Earnings Per Share $0.36 -$1.39
COMMON SHARES
Basic Shares Outstanding 28.40M shares 28.30M shares
Diluted Shares Outstanding 28.40M shares 28.30M shares

Balance Sheet

Concept 2018 Q1 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $43.00M $24.30M
YoY Change 76.95% 97.56%
Cash & Equivalents $43.00M $24.30M
Short-Term Investments
Other Short-Term Assets $24.00M $20.30M
YoY Change 18.23% -36.56%
Inventory $22.20M $25.70M
Prepaid Expenses
Receivables $347.0M $287.0M
Other Receivables $0.00 $10.90M
Total Short-Term Assets $436.2M $368.2M
YoY Change 18.47% 8.23%
LONG-TERM ASSETS
Property, Plant & Equipment $283.1M $268.9M
YoY Change 5.28% -77.85%
Goodwill $91.00M $91.00M
YoY Change 0.0% -93.27%
Intangibles $286.3M $309.5M
YoY Change -7.5% -91.86%
Long-Term Investments
YoY Change
Other Assets $42.10M $34.60M
YoY Change 21.68% 116.25%
Total Long-Term Assets $3.138B $3.076B
YoY Change 2.0% -87.01%
TOTAL ASSETS
Total Short-Term Assets $436.2M $368.2M
Total Long-Term Assets $3.138B $3.076B
Total Assets $3.574B $3.445B
YoY Change 3.76% -85.66%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $266.6M $202.1M
YoY Change 31.91% 35.73%
Accrued Expenses $123.4M $99.20M
YoY Change 24.4% 91.51%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due $21.00M $15.60M
YoY Change 34.62% 51.46%
Total Short-Term Liabilities $413.7M $328.3M
YoY Change 26.01% 0.92%
LONG-TERM LIABILITIES
Long-Term Debt $2.055B $2.123B
YoY Change -3.21% 4087.18%
Other Long-Term Liabilities $36.30M $32.60M
YoY Change 11.35% 2.19%
Total Long-Term Liabilities $36.30M $32.60M
YoY Change 11.35% -60.53%
TOTAL LIABILITIES
Total Short-Term Liabilities $413.7M $328.3M
Total Long-Term Liabilities $36.30M $32.60M
Total Liabilities $3.074B $3.163B
YoY Change -2.82% -85.62%
SHAREHOLDERS EQUITY
Retained Earnings -$472.5M -$664.4M
YoY Change -28.88% 50.32%
Common Stock $300.0K $300.0K
YoY Change 0.0% -99.99%
Preferred Stock
YoY Change
Treasury Stock (at cost) $692.0M $692.0M
YoY Change 0.0% 0.0%
Treasury Stock Shares 2.700M shares 2.700M shares
Shareholders Equity $500.3M $281.7M
YoY Change
Total Liabilities & Shareholders Equity $3.574B $3.445B
YoY Change 3.76% -85.66%

Cashflow Statement

Concept 2018 Q1 2017 Q1
OPERATING ACTIVITIES
Net Income $10.10M $39.20M
YoY Change -74.23% -2713.33%
Depreciation, Depletion And Amortization $107.1M $104.6M
YoY Change 2.39% 13.33%
Cash From Operating Activities $129.2M $89.90M
YoY Change 43.72% -12.38%
INVESTING ACTIVITIES
Capital Expenditures $14.40M $17.90M
YoY Change -19.55% 280.85%
Acquisitions
YoY Change
Other Investing Activities $54.10M $46.60M
YoY Change 16.09% 1.75%
Cash From Investing Activities -$42.80M -$28.90M
YoY Change 48.1% -756.82%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $0.00 $123.5M
YoY Change -100.0%
Cash From Financing Activities -$84.40M -$62.20M
YoY Change 35.69% -44.66%
NET CHANGE
Cash From Operating Activities $129.2M $89.90M
Cash From Investing Activities -$42.80M -$28.90M
Cash From Financing Activities -$84.40M -$62.20M
Net Change In Cash $1.500M -$1.100M
YoY Change -236.36% -79.63%
FREE CASH FLOW
Cash From Operating Activities $129.2M $89.90M
Capital Expenditures $14.40M $17.90M
Free Cash Flow $114.8M $72.00M
YoY Change 59.44% -26.46%

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600000 USD
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1700000 USD
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400000 USD
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OtherComprehensiveIncomeLossAmortizationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetPriorServiceCostCreditBeforeTax
300000 USD
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1700000 USD
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-3500000 USD
CY2017Q1 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Before Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodBeforeTax
-400000 USD
CY2018Q1 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Before Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodBeforeTax
2300000 USD
CY2018Q1 us-gaap Other Liabilities Noncurrent
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36300000 USD
CY2017Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
300000 USD
CY2018Q1 us-gaap Other Nonoperating Income Expense
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300000 USD
CY2017Q1 us-gaap Other Operating Activities Cash Flow Statement
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2200000 USD
CY2018Q1 us-gaap Other Operating Activities Cash Flow Statement
OtherOperatingActivitiesCashFlowStatement
2300000 USD
CY2017Q1 us-gaap Payments Of Debt Extinguishment Costs
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3700000 USD
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0 USD
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PaymentsRelatedToTaxWithholdingForShareBasedCompensation
0 USD
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PaymentsRelatedToTaxWithholdingForShareBasedCompensation
100000 USD
CY2017Q1 us-gaap Payments To Acquire Equipment On Lease
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56200000 USD
CY2018Q1 us-gaap Payments To Acquire Equipment On Lease
PaymentsToAcquireEquipmentOnLease
82500000 USD
CY2017Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
17900000 USD
CY2018Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
14400000 USD
CY2018Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
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13300000 shares
CY2018Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
13300000 shares
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0 shares
CY2018Q1 us-gaap Preferred Stock Shares Issued
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0 shares
CY2017Q4 us-gaap Preferred Stock Shares Outstanding
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0 shares
CY2018Q1 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
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0 USD
CY2018Q1 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2017Q4 us-gaap Prepaid Expense And Other Assets Current
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23000000 USD
CY2018Q1 us-gaap Prepaid Expense And Other Assets Current
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24000000 USD
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173800000 USD
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ProceedsFromLinesOfCredit
51000000 USD
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500000 USD
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ProceedsFromSaleOfPropertyPlantAndEquipment
1200000 USD
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0 USD
CY2018Q1 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
400000 USD
CY2017Q1 us-gaap Proceeds From Stock Plans
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0 USD
CY2018Q1 us-gaap Proceeds From Stock Plans
ProceedsFromStockPlans
400000 USD
CY2017Q4 us-gaap Property Plant And Equipment Net
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286300000 USD
CY2018Q1 us-gaap Property Plant And Equipment Net
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283100000 USD
CY2017Q4 us-gaap Property Subject To Or Available For Operating Lease Accumulated Depreciation
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1382600000 USD
CY2018Q1 us-gaap Property Subject To Or Available For Operating Lease Accumulated Depreciation
PropertySubjectToOrAvailableForOperatingLeaseAccumulatedDepreciation
1397900000 USD
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3757200000 USD
CY2018Q1 us-gaap Property Subject To Or Available For Operating Lease Gross
PropertySubjectToOrAvailableForOperatingLeaseGross
3833100000 USD
CY2017Q4 us-gaap Property Subject To Or Available For Operating Lease Net
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2374600000 USD
CY2018Q1 us-gaap Property Subject To Or Available For Operating Lease Net
PropertySubjectToOrAvailableForOperatingLeaseNet
2435200000 USD
CY2017Q1 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
10600000 USD
CY2018Q1 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
10100000 USD
CY2017Q1 us-gaap Repayments Of Lines Of Credit
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105000000 USD
CY2018Q1 us-gaap Repayments Of Lines Of Credit
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131600000 USD
CY2017Q1 us-gaap Repayments Of Long Term Capital Lease Obligations
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3800000 USD
CY2018Q1 us-gaap Repayments Of Long Term Capital Lease Obligations
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4500000 USD
CY2017Q1 us-gaap Repayments Of Long Term Debt
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123500000 USD
CY2018Q1 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
0 USD
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-462400000 USD
CY2018Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-472500000 USD
CY2017Q4 us-gaap Sale Leaseback Transaction Deferred Gain Net
SaleLeasebackTransactionDeferredGainNet
112900000 USD
CY2018Q1 us-gaap Sale Leaseback Transaction Deferred Gain Net
SaleLeasebackTransactionDeferredGainNet
112200000 USD
CY2017Q4 us-gaap Sale Leaseback Transaction Gross Proceeds Financing Activities
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119500000 USD
CY2017Q1 us-gaap Sales Revenue Goods Net
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11500000 USD
CY2018Q1 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
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CY2017Q1 us-gaap Sales Revenue Net
SalesRevenueNet
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CY2018Q1 us-gaap Sales Revenue Net
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431300000 USD
CY2017Q1 us-gaap Sales Revenue Services Net
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2900000 USD
CY2018Q1 us-gaap Sales Revenue Services Net
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3500000 USD
CY2017Q1 us-gaap Selling General And Administrative Expense
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81100000 USD
CY2018Q1 us-gaap Selling General And Administrative Expense
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74500000 USD
CY2017Q1 us-gaap Share Based Compensation
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1500000 USD
CY2018Q1 us-gaap Share Based Compensation
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2800000 USD
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Total Fair Value
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100000 USD
CY2018Q1 us-gaap Stock Issued During Period Value Stock Options Exercised
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400000 USD
CY2017Q4 us-gaap Stockholders Equity
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510400000 USD
CY2018Q1 us-gaap Stockholders Equity
StockholdersEquity
500300000 USD
CY2017Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
2700000 shares
CY2018Q1 us-gaap Treasury Stock Shares
TreasuryStockShares
2700000 shares
CY2017Q4 us-gaap Treasury Stock Value
TreasuryStockValue
692000000 USD
CY2018Q1 us-gaap Treasury Stock Value
TreasuryStockValue
692000000 USD
CY2017Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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28300000 shares
CY2018Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
28400000 shares
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28300000 shares
CY2018Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
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28400000 shares
CY2018Q1 us-gaap Nature Of Operations
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<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," "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;"> locations at </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;">, 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. With over 50 years of experience, we are a full-line equipment rental supplier offering a broad portfolio of equipment for rent. In addition to our principal business of equipment rental, we sell used equipment and contractor supplies such as construction consumables, tools, small equipment and safety supplies; provide repair, maintenance, equipment management services and safety training to certain of our customers; offer equipment re-rental services and provide on-site support to our customers; and provide ancillary services such as equipment transport, rental protection, cleaning, refueling and labor. </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;">Our classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction and lighting. Our equipment rental business is supported by ProSolutions</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">TM</sup></font><font style="font-family:inherit;font-size:10pt;">, our industry-specific solutions-based services which includes pumping solutions, power generation, climate control, remediation and restoration, and studio and production equipment, and our ProContractor professional grade tools.</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 June 30, 2016, 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 an independent public company that trades on the New York Stock Exchange under the symbol "HTZ" and 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;</font></div></div>

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