2023 Q2 Form 10-Q Financial Statement

#000136447923000045 Filed on April 20, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1 2022 Q1
Revenue $802.0M $740.0M $567.3M
YoY Change 25.23% 30.44% 25.01%
Cost Of Revenue $311.0M $299.0M $238.6M
YoY Change 21.82% 25.31% 18.24%
Gross Profit $491.0M $441.0M $328.7M
YoY Change 27.5% 34.16% 30.44%
Gross Profit Margin 61.22% 59.59% 57.94%
Selling, General & Admin $140.0M $106.0M $89.40M
YoY Change 44.33% 18.57% 36.49%
% of Gross Profit 28.51% 24.04% 27.2%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $189.0M $178.0M $140.0M
YoY Change 23.61% 27.14% 20.48%
% of Gross Profit 38.49% 40.36% 42.59%
Operating Expenses $334.0M $106.0M $89.40M
YoY Change 244.33% 18.57% 36.49%
Operating Profit $157.0M $335.0M $239.3M
YoY Change -45.51% 39.99% 28.31%
Interest Expense -$54.00M -$48.00M -$22.50M
YoY Change 114.29% 113.33% 5.14%
% of Operating Profit -34.39% -14.33% -9.4%
Other Income/Expense, Net $0.00 -$1.000M $1.000M
YoY Change -100.0% -200.0% 400.0%
Pretax Income $103.0M $75.00M $67.10M
YoY Change 5.64% 11.77% 63.26%
Income Tax $27.00M $8.000M $8.600M
% Of Pretax Income 26.21% 10.67% 12.82%
Net Earnings $76.00M $67.00M $58.50M
YoY Change 5.26% 14.53% 77.81%
Net Earnings / Revenue 9.48% 9.05% 10.31%
Basic Earnings Per Share $2.68 $2.31 $1.96
Diluted Earnings Per Share $2.66 $2.28 $1.92
COMMON SHARES
Basic Shares Outstanding 28.49M shares 29.12M shares 29.80M shares
Diluted Shares Outstanding 28.60M shares 29.40M shares 30.40M shares

Balance Sheet

Concept 2023 Q2 2023 Q1 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $37.00M $40.00M $22.80M
YoY Change -28.98% 75.44% -30.7%
Cash & Equivalents $37.00M $40.00M $22.80M
Short-Term Investments
Other Short-Term Assets $66.00M $71.00M $53.30M
YoY Change 15.99% 33.21% 69.21%
Inventory
Prepaid Expenses
Receivables $541.0M $514.0M $399.1M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $644.0M $625.0M $475.2M
YoY Change 13.62% 31.52% 30.55%
LONG-TERM ASSETS
Property, Plant & Equipment $5.043B $4.711B $3.544B
YoY Change 27.05% 32.94% 26.64%
Goodwill $492.0M $460.0M $272.5M
YoY Change 51.15% 68.81% 170.87%
Intangibles $468.0M $447.0M $398.6M
YoY Change 12.53% 12.14% 35.3%
Long-Term Investments
YoY Change
Other Assets $48.00M $33.00M $27.60M
YoY Change 47.69% 19.57% 48.39%
Total Long-Term Assets $6.051B $5.651B $4.242B
YoY Change 27.57% 33.2% 32.08%
TOTAL ASSETS
Total Short-Term Assets $644.0M $625.0M $475.2M
Total Long-Term Assets $6.051B $5.651B $4.242B
Total Assets $6.695B $6.276B $4.718B
YoY Change 26.08% 33.03% 31.92%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $363.0M $348.0M $239.4M
YoY Change 26.52% 45.36% 63.97%
Accrued Expenses $276.0M $186.0M $169.2M
YoY Change 49.11% 9.93% 32.71%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $16.00M $16.00M $10.80M
YoY Change 45.45% 48.15% -7.69%
Total Short-Term Liabilities $655.0M $593.0M $463.3M
YoY Change 23.98% 27.99% 43.53%
LONG-TERM LIABILITIES
Long-Term Debt $3.493B $3.215B $2.142B
YoY Change 39.54% 50.09% 35.13%
Other Long-Term Liabilities $772.0M $46.00M $31.20M
YoY Change 2282.72% 47.44% -30.2%
Total Long-Term Liabilities $4.265B $46.00M $31.20M
YoY Change 13063.58% 47.44% -30.2%
TOTAL LIABILITIES
Total Short-Term Liabilities $655.0M $593.0M $463.3M
Total Long-Term Liabilities $4.265B $46.00M $31.20M
Total Liabilities $5.593B $5.189B $3.706B
YoY Change 31.76% 40.02% 32.45%
SHAREHOLDERS EQUITY
Retained Earnings $330.0M $272.0M $5.100M
YoY Change 453.69% 5233.33% -102.09%
Common Stock $0.00 $0.00 $300.0K
YoY Change -100.0% -100.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $692.0M
YoY Change 0.0%
Treasury Stock Shares 2.700M shares
Shareholders Equity $1.102B $1.087B $1.012B
YoY Change
Total Liabilities & Shareholders Equity $6.695B $6.276B $4.718B
YoY Change 26.08% 33.03% 31.92%

Cashflow Statement

Concept 2023 Q2 2023 Q1 2022 Q1
OPERATING ACTIVITIES
Net Income $76.00M $67.00M $58.50M
YoY Change 5.26% 14.53% 77.81%
Depreciation, Depletion And Amortization $189.0M $178.0M $140.0M
YoY Change 23.61% 27.14% 20.48%
Cash From Operating Activities $281.0M $235.0M $143.0M
YoY Change 30.15% 64.34% 6.16%
INVESTING ACTIVITIES
Capital Expenditures $415.0M $33.00M $12.90M
YoY Change -246.59% 155.81% -3.73%
Acquisitions $138.0M $73.00M
YoY Change 89.04%
Other Investing Activities -$64.00M $0.00 $5.000M
YoY Change -73.66% -100.0%
Cash From Investing Activities -$479.0M -$451.0M -$346.7M
YoY Change -8.95% 30.08% 457.4%
FINANCING ACTIVITIES
Cash Dividend Paid $17.10M
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 195.0M $202.0M $191.4M
YoY Change -42.6% 5.54% -362.91%
NET CHANGE
Cash From Operating Activities 281.0M $235.0M $143.0M
Cash From Investing Activities -479.0M -$451.0M -$346.7M
Cash From Financing Activities 195.0M $202.0M $191.4M
Net Change In Cash -3.000M -$14.00M -$12.30M
YoY Change -110.17% 13.82% 12200.0%
FREE CASH FLOW
Cash From Operating Activities $281.0M $235.0M $143.0M
Capital Expenditures $415.0M $33.00M $12.90M
Free Cash Flow -$134.0M $202.0M $130.1M
YoY Change -126.85% 55.27% 7.25%

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Organization and Description of Business <div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Herc Holdings Inc. ("we," "us," "our," "Herc Holdings," or "the Company") is one of the leading equipment rental suppliers with 364 locations in North America as of March 31, 2023. The Company conducts substantially all of its operations through subsidiaries, including Herc Rentals Inc. ("Herc"). With over 57 years of experience, the Company is a full-line equipment rental supplier offering a broad portfolio of equipment for rent. In addition to its principal business of equipment rental, the Company sells used equipment and contractor supplies such as construction consumables, tools, small equipment and safety supplies; provides repair, maintenance, equipment management services and safety training to certain of its customers; offers equipment re-rental services and provides on-site support to its customers; and provides ancillary services such as equipment transport, rental protection, cleaning, refueling and labor. </span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company's classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction and lighting. The Company's equipment rental business is supported by ProSolutions®, its industry-specific solutions-based services, which includes power generation, climate control, remediation and restoration, pumps, trench shoring, studio and production equipment, and its ProContractor professional grade tools.</span></div>
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Organization and Description of Business <div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Herc Holdings Inc. ("we," "us," "our," "Herc Holdings," or "the Company") is one of the leading equipment rental suppliers with 364 locations in North America as of March 31, 2023. The Company conducts substantially all of its operations through subsidiaries, including Herc Rentals Inc. ("Herc"). With over 57 years of experience, the Company is a full-line equipment rental supplier offering a broad portfolio of equipment for rent. In addition to its principal business of equipment rental, the Company sells used equipment and contractor supplies such as construction consumables, tools, small equipment and safety supplies; provides repair, maintenance, equipment management services and safety training to certain of its customers; offers equipment re-rental services and provides on-site support to its customers; and provides ancillary services such as equipment transport, rental protection, cleaning, refueling and labor. </span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company's classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction and lighting. The Company's equipment rental business is supported by ProSolutions®, its industry-specific solutions-based services, which includes power generation, climate control, remediation and restoration, pumps, trench shoring, studio and production equipment, and its ProContractor professional grade tools.</span></div>
CY2023Q1 hri Number Of Company Operated Branches
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<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Reclassifications</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain amounts in prior years have been reclassified to conform with the presentation in the current year.</span></div>
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<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Reclassifications</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain amounts in prior years have been reclassified to conform with the presentation in the current year.</span></div>
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5000000 usd
CY2022Q4 us-gaap Deferred Finance Costs Net
DeferredFinanceCostsNet
5000000 usd
CY2023Q1 us-gaap Long Term Debt And Capital Lease Obligations Including Current Maturities
LongTermDebtAndCapitalLeaseObligationsIncludingCurrentMaturities
3227000000 usd
CY2022Q4 us-gaap Long Term Debt And Capital Lease Obligations Including Current Maturities
LongTermDebtAndCapitalLeaseObligationsIncludingCurrentMaturities
2934000000 usd
CY2023Q1 us-gaap Long Term Debt And Capital Lease Obligations Current
LongTermDebtAndCapitalLeaseObligationsCurrent
12000000 usd
CY2022Q4 us-gaap Long Term Debt And Capital Lease Obligations Current
LongTermDebtAndCapitalLeaseObligationsCurrent
12000000 usd
CY2023Q1 us-gaap Long Term Debt And Capital Lease Obligations
LongTermDebtAndCapitalLeaseObligations
3215000000 usd
CY2022Q4 us-gaap Long Term Debt And Capital Lease Obligations
LongTermDebtAndCapitalLeaseObligations
2922000000 usd
CY2023Q1 us-gaap Line Of Credit Facility Remaining Borrowing Capacity
LineOfCreditFacilityRemainingBorrowingCapacity
1842000000 usd
CY2023Q1 us-gaap Finance Lease Weighted Average Discount Rate Percent
FinanceLeaseWeightedAverageDiscountRatePercent
0.0342
CY2023Q1 us-gaap Finance Lease Liability
FinanceLeaseLiability
64000000 usd
CY2022Q4 us-gaap Finance Lease Liability
FinanceLeaseLiability
64000000 usd
CY2023Q1 us-gaap Deferred Finance Costs Net
DeferredFinanceCostsNet
5000000 usd
CY2022Q4 us-gaap Deferred Finance Costs Net
DeferredFinanceCostsNet
5000000 usd
CY2023Q1 us-gaap Long Term Debt And Capital Lease Obligations Including Current Maturities
LongTermDebtAndCapitalLeaseObligationsIncludingCurrentMaturities
3227000000 usd
CY2022Q4 us-gaap Long Term Debt And Capital Lease Obligations Including Current Maturities
LongTermDebtAndCapitalLeaseObligationsIncludingCurrentMaturities
2934000000 usd
CY2023Q1 us-gaap Long Term Debt And Capital Lease Obligations Current
LongTermDebtAndCapitalLeaseObligationsCurrent
12000000 usd
CY2022Q4 us-gaap Long Term Debt And Capital Lease Obligations Current
LongTermDebtAndCapitalLeaseObligationsCurrent
12000000 usd
CY2023Q1 us-gaap Long Term Debt And Capital Lease Obligations
LongTermDebtAndCapitalLeaseObligations
3215000000 usd
CY2022Q4 us-gaap Long Term Debt And Capital Lease Obligations
LongTermDebtAndCapitalLeaseObligations
2922000000 usd
CY2023Q1 us-gaap Line Of Credit Facility Remaining Borrowing Capacity
LineOfCreditFacilityRemainingBorrowingCapacity
1842000000 usd
CY2023Q1 hri Line Of Credit Facility Remaining Borrowing Capacity Under Borrowing Base Limitation
LineOfCreditFacilityRemainingBorrowingCapacityUnderBorrowingBaseLimitation
1450000000 usd
CY2023Q1 hri Line Of Credit Facility Remaining Borrowing Capacity Under Borrowing Base Limitation
LineOfCreditFacilityRemainingBorrowingCapacityUnderBorrowingBaseLimitation
1450000000 usd
CY2023Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
8000000 usd
CY2022Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
9000000 usd
CY2023Q1 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense
12000000 usd
CY2022Q1 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense
8000000 usd
CY2023Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
8000000 usd
CY2022Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
9000000 usd
CY2023Q1 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense
12000000 usd
CY2022Q1 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense
8000000 usd
CY2022Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.96
CY2023Q1 us-gaap Oci Before Reclassifications Before Tax Attributable To Parent
OciBeforeReclassificationsBeforeTaxAttributableToParent
1000000 usd
CY2023Q1 us-gaap Reclassification From Aoci Current Period Net Of Tax Attributable To Parent
ReclassificationFromAociCurrentPeriodNetOfTaxAttributableToParent
-1000000 usd
CY2023Q1 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
2000000 usd
CY2023Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
2.28
CY2022Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.92
CY2023Q1 us-gaap Oci Before Reclassifications Before Tax Attributable To Parent
OciBeforeReclassificationsBeforeTaxAttributableToParent
1000000 usd
CY2023Q1 us-gaap Reclassification From Aoci Current Period Net Of Tax Attributable To Parent
ReclassificationFromAociCurrentPeriodNetOfTaxAttributableToParent
-1000000 usd
CY2023Q1 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
2000000 usd
CY2023Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
2.28
CY2022Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.92
CY2023Q1 us-gaap Net Income Loss
NetIncomeLoss
67000000 usd
CY2022Q1 us-gaap Net Income Loss
NetIncomeLoss
58000000 usd
CY2023Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
29000000.0 shares
CY2022Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
29800000 shares
CY2023Q1 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
400000 shares
CY2022Q1 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
600000 shares
CY2023Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
29400000 shares
CY2022Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
30400000 shares
CY2023Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
2.31
CY2023Q1 us-gaap Net Income Loss
NetIncomeLoss
67000000 usd
CY2022Q1 us-gaap Net Income Loss
NetIncomeLoss
58000000 usd
CY2023Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
29000000.0 shares
CY2022Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
29800000 shares
CY2023Q1 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
400000 shares
CY2022Q1 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
600000 shares
CY2023Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
29400000 shares
CY2022Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
30400000 shares
CY2022Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.96

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