Herc Holdings reported equipment rental revenues of $413.1 million and total revenues of $457.6 million in the third quarter of 2017, which ended September 30. Rental revenue was up from $360.3 million and total revenue up from $403.6 million for the same period last year.
Net income was $12.8 million for the quarter, compared to $3.0 million for the same period last year.
Equipment rental revenues increased 14.7 percent, average fleet at original equipment cost (OEC) increased 3.2 percent, and overall pricing improved 1.7 percent in the third quarter of 2017 over the prior-year period. Adjusted EBITDA increased 16.2% to $176.7 million in the third quarter, compared to $152.1 million in the prior-year period.
"Our strategy to expand our fleet and diversify our customer mix drove our double-digit increase in third quarter rental revenues over the prior year," said Larry Silber, president and chief executive officer. "Higher levels of equipment on rent and improved pricing also contributed positively to our year-over-year increase in dollar utilization, which increased 350 basis points to 38.7%.
"Our third quarter results validate our strategic initiatives and business transformation efforts, which enabled solid rental revenue growth throughout North America. Construction trends and leading economic indicators support estimates of continued strength in the rental equipment industry and contribute to the confidence we have in our business strategy," said Silber.
Based on the continuing strength of the Company's operating performance and the positive market environment, the Company raised the lower end of its adjusted EBITDA guidance for the full year 2017. The new 2017 guidance for adjusted EBITDA is $560 million to $590 million compared with the previous range of $550 million to $590 million.
To meet the strong rental market demand, the Company now expects to spend approximately $355 million to $365 million in net fleet capital expenditures for the full year, an increase from the previous guidance of $275 million to $325 million.