2018 Q2 Form 10-Q Financial Statement

#000136447918000023 Filed on August 08, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q2
Revenue $485.5M $415.8M
YoY Change 16.76% 9.31%
Cost Of Revenue $278.4M $11.10M
YoY Change 2408.11% -20.71%
Gross Profit $207.1M $404.7M
YoY Change -48.83% 10.45%
Gross Profit Margin 42.66% 97.33%
Selling, General & Admin $77.30M $78.80M
YoY Change -1.9% 6.2%
% of Gross Profit 37.32% 19.47%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $110.7M $106.9M
YoY Change 3.55% 12.76%
% of Gross Profit 53.45% 26.41%
Operating Expenses $77.30M $78.80M
YoY Change -1.9% 6.2%
Operating Profit $129.8M $325.9M
YoY Change -60.17% 11.53%
Interest Expense -$31.60M -$32.00M
YoY Change -1.25% 137.04%
% of Operating Profit -24.35% -9.82%
Other Income/Expense, Net $100.0K -$500.0K
YoY Change -120.0% -200.0%
Pretax Income $500.0K $49.80M
YoY Change -99.0% -1944.44%
Income Tax $800.0K -$22.20M
% Of Pretax Income 160.0% -44.58%
Net Earnings $300.0K -$27.60M
YoY Change -101.09% 245.0%
Net Earnings / Revenue 0.06% -6.64%
Basic Earnings Per Share $0.01 -$0.98
Diluted Earnings Per Share $0.01 -$0.98
COMMON SHARES
Basic Shares Outstanding 28.40M shares 28.30M shares
Diluted Shares Outstanding 28.40M shares 28.30M shares

Balance Sheet

Concept 2018 Q2 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $44.00M $12.00M
YoY Change 266.67% -71.83%
Cash & Equivalents $44.00M $12.00M
Short-Term Investments
Other Short-Term Assets $20.60M $27.40M
YoY Change -24.82% 20.18%
Inventory $20.70M $25.90M
Prepaid Expenses
Receivables $350.3M $309.0M
Other Receivables $0.00 $10.90M
Total Short-Term Assets $435.6M $385.2M
YoY Change 13.08% 2.01%
LONG-TERM ASSETS
Property, Plant & Equipment $286.2M $281.3M
YoY Change 1.74% 5.43%
Goodwill $91.00M $91.00M
YoY Change 0.0% 0.0%
Intangibles $289.3M $283.6M
YoY Change 2.01% -6.34%
Long-Term Investments
YoY Change
Other Assets $42.10M $35.00M
YoY Change 20.29% -0.57%
Total Long-Term Assets $3.294B $3.140B
YoY Change 4.91% -0.52%
TOTAL ASSETS
Total Short-Term Assets $435.6M $385.2M
Total Long-Term Assets $3.294B $3.140B
Total Assets $3.730B $3.525B
YoY Change 5.8% -0.25%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $387.8M $314.8M
YoY Change 23.19% 17.29%
Accrued Expenses $103.8M $79.60M
YoY Change 30.4% 21.71%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $24.20M $16.00M
YoY Change 51.25% 1.27%
Total Short-Term Liabilities $518.5M $424.9M
YoY Change 22.03% 16.76%
LONG-TERM LIABILITIES
Long-Term Debt $2.110B $2.145B
YoY Change -1.67% 1.46%
Other Long-Term Liabilities $36.50M $38.80M
YoY Change -5.93% -7.84%
Total Long-Term Liabilities $36.50M $38.80M
YoY Change -5.93% -7.84%
TOTAL LIABILITIES
Total Short-Term Liabilities $518.5M $424.9M
Total Long-Term Liabilities $36.50M $38.80M
Total Liabilities $3.234B $3.266B
YoY Change -0.98% 2.5%
SHAREHOLDERS EQUITY
Retained Earnings -$472.8M -$692.0M
YoY Change -31.68% 12.52%
Common Stock $300.0K $300.0K
YoY Change 0.0% 0.0%
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 $495.3M $258.8M
YoY Change
Total Liabilities & Shareholders Equity $3.730B $3.525B
YoY Change 5.8% -0.25%

Cashflow Statement

Concept 2018 Q2 2017 Q2
OPERATING ACTIVITIES
Net Income $300.0K -$27.60M
YoY Change -101.09% 245.0%
Depreciation, Depletion And Amortization $110.7M $106.9M
YoY Change 3.55% 12.76%
Cash From Operating Activities $103.7M $40.10M
YoY Change 158.6% -61.99%
INVESTING ACTIVITIES
Capital Expenditures -$236.8M -$112.7M
YoY Change 110.12% -1.57%
Acquisitions
YoY Change
Other Investing Activities $78.40M $43.70M
YoY Change 79.41% 18.75%
Cash From Investing Activities -$158.4M -$69.00M
YoY Change 129.57% -11.2%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 57.10M 19.50M
YoY Change 192.82% 160.0%
NET CHANGE
Cash From Operating Activities 103.7M 40.10M
Cash From Investing Activities -158.4M -69.00M
Cash From Financing Activities 57.10M 19.50M
Net Change In Cash 2.400M -9.400M
YoY Change -125.53% -126.63%
FREE CASH FLOW
Cash From Operating Activities $103.7M $40.10M
Capital Expenditures -$236.8M -$112.7M
Free Cash Flow $340.5M $152.8M
YoY Change 122.84% -30.55%

Facts In Submission

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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;">June&#160;30, 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 Canada and under the Hertz Equipment Rental brand in 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 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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