HercRentals Rental Revenue Hits Record

HercRentals reported record equipment rental revenue of $526.8 million in the first quarter, up 31.6 percent from Q1 2021 revenue of $400.4 million.

“We continued our ‘shift into high gear’ with an excellent first quarter,” said Larry Silber, president/CEO, in a prepared statement. “Our average fleet increased 23.4 percent to $4.5 billion, dollar utilization increased to 41.4 percent, and rental revenue increased 31.6 percent over the prior year....The record first quarter results have accelerated our growth expectations for the full year and we now expect 2022 adjusted EBITDA to increase between approximately 31 percent to 39 percent over 2021.”

Sales of rental equipment was down in the quarter, a result of strong rental demand and the company’s “strategic management of our fleet to maximize fleet size and minimize the sales of rental equipment.”

Direct operating expenses grew primarily do to increases in costs associated with additional headcount, increased maintenance expenses as a result of the strong rental activity, and higher fuel prices.

HercRentals spent $286.8 million on rental equipment capex compared to $90.9 million in Q1 2021, bringing its fleet value to $4.6 billion. Average fleet age was 48 months, the same as in 2021. The company boosted its 2022 forecast for rental equipment capex from a range of $820 million to $1.12 billion to a range of $900 million to $1.12 billion.

Source: HercRentals