Herc Holdings Inc. (NYSE:HRI) Q1 2024 Earnings Call Transcript

Herc Holdings Inc. (NYSE:HRI) Q1 2024 Earnings Call Transcript April 23, 2024

Herc Holdings Inc. misses on earnings expectations. Reported EPS is $2.29 EPS, expectations were $2.48. Herc Holdings Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Operator: Good morning. My name is Dennis, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Herc Holdings First Quarter 2024 Earnings Call and webcast. [Operator Instructions] I would now like to turn the conference over to Leslie Hunziker, Head of Investor Relations. Please go ahead.

Leslie Hunziker: Thank you, operator, and good morning, everyone. Welcome to Herc Rentals first quarter 2024 earnings conference call and webcast. Earlier today, our press release and presentation slides were furnished, and our 10-Q was filed with the SEC. All are posted on the Events page of our IR website. Today, we're reviewing our first quarter 2024 results, with comments on operations and our financials, including our view of the industry and our strategic outlook. The prepared remarks will be followed by an open Q&A. Now, let's move on to our Safe Harbor and GAAP reconciliations on Slide 3. Today's call will include forward-looking statements. These statements are based on the environment as we see it today, and therefore involve risks and uncertainties.

An overhead shot of a ProSolutions employee in the process of delivering equipment to a construction site.

I would caution you that our actual results could differ materially from the forward-looking statements made on the call. You should refer to the Risk Factors section of our annual report on Form 10-K for the year ended December 31, 2023. In addition to the financial results presented on a GAAP basis, we will be discussing non-GAAP information that we believe is useful in evaluating the company's operating performance. Reconciliations for these non-GAAP measures to the closest GAAP equivalent can be found in the conference call materials. A replay of this call can be accessed via dial-in through our webcast on our website. Replay instructions were included in our earnings release this morning. We have not given permission for any other recording of this call, and do not approve or sanction any transcribing of the call.

Finally, please mark your calendars to join our management team at three industrial conferences this quarter. We'll be at Bank of America's conference on May 14th in New York, KeyBanc’s conference in Boston on May 30th, and Wells Fargo's Chicago conference on June 11th. This morning, I'm joined by Larry Silber, President and Chief Executive Officer, Aaron Birnbaum, Senior Vice President and Chief Operating Officer, and Mark Humphrey, Senior Vice President and Chief Financial Officer. I'll now turn the call over to Larry.

Larry Silber: Thank you, Leslie, and good morning, everyone. Let's turn to slide number four. We're off to a solid start in 2024. Revenue and adjusted EBITDA were first quarter record highs, driven by continued strong volume growth and a 5% increase in rental rate year-over-year. These results reflect total company performance, including our Cinelease business. Our flexible business model, diverse customer base, and broad equipment portfolio, enabled us to generate topline growth in the first quarter across both core and specialty categories, and local and national accounts. By capturing an outsized share of market volume, generating rate growth to offset fleet inflation, and delivering operating efficiencies, adjusted EBITDA increased 10% over the prior year.

See also

21 Small Business Ideas for Kids and

10 Stocks American Politicians are Buying in 2024.

To continue reading the Q&A session, please click here.