HercRentals mum or dad studies 2.4% improve in 3Q rental revenues
Herc Holdings, mum or dad of HercRentals, says its 3Q gear rental revenues elevated 2.4 % to $459.6 million, in comparison with $449 million in the identical interval final yr. Complete revenues decreased 1.6 % to $508.1 million, in comparison with $516.2 million in 3Q 2018.
Though the corporate says it had robust year-over-year pricing and blend, these good points had been partially offset by “strategic reductions in re-rent income.”
On the whole income facet, the $eight.1 million decline within the quarter was positioned on the door of a $14.7 million decline in gross sales of rental gear and a $4.2 million discount in new gear, elements and provides in comparison with the prior yr. These reductions had been partially offset by a rise in gear rental income of $10.6 million.
Herc Holdings says it pricing elevated 4.5 % in comparison with the identical interval in 2018, representing the 14th consecutive quarter of year-over-year enchancment.
For the primary 9 months of 2019, the corporate spent $349.eight million in internet fleet capital expenditures. Gross fleet capital expenditures had been $506.7 million and gear disposals had been 156.9 million.
As of Sept. 30, the corporate’s complete fleet was roughly $3.94 billion authentic gear value. The typical fleet age is now 44 months, in comparison with about 46 months within the first 9 months of 2018.
“Our internet fleet capital expenditure steerage is on the high quality we supplied earlier this yr,” says Larry Silber, president and CEO. “Our expectation for improved working outcomes and decrease year-over-year internet fleet capital expenditures in 2019 are anticipated to generate robust constructive free money movement and enhance our internet leverage for the total yr,” he added.
Different numbers for the primary 9 months of 2019 in comparison with the identical interval in 2018:
Gear rental income will increase of two.eight %.
Complete income will increase of 1.eight %.
Pricing improve of 4.3 %