Herc Holdings posted total revenues of $745.1 million in the third quarter of 2022 compared to $550.4 million for the same period of 2021, a 35.4-percent growth spurt. Equipment rental revenue was $706.2 million compared to $519.6 million in the third quarter of 2021, a 35.9-percent jump.
In the third quarter of 2022, Herc reported net income of $101.4 million or $3.36 per diluted share, a 41.8 percent hike compared to $72.3 million or $2.37 per diluted share in the year-ago quarter.
"We continued to see strong demand for our equipment rental services across all of our geographic regions," said Larry Silber, president and CEO. "Our rental revenue increased 35.9 percent over the prior year, while average fleet increased 35 percent to $5.3 billion. Adjusted EBITDA increased 40.3 percent to $345 million and adjusted EBITDA margin expanded 160 basis points to 46.3 percent in the quarter.
"Just as our third quarter was nearing its close, Hurricane Ian landed in Southwest Florida. The ferocity of its impact on our local communities has been widely reported in the news. Our outstanding and dedicated Herc team stepped up to immediately respond to the needs of fellow team members, customers and communities. I want to thank all of our team for their support and their commitment to operate safely and effectively throughout the preparation, cleanup and remediation that is now ongoing throughout the region."
Pricing increased 6.2 percent compared to the same period in 2021. Dollar utilization decreased to 45.3 percent compared to 46 percent in the prior-year period primarily because of mix of equipment on rent.
Nine-month numbers climb
For the first nine months of the year, equipment rental revenue was $1,838.4 million compared to $1,368 million in the first nine months of 2021, a 34.4-percent hike. Total revenues totaled $1,952.8 million compared to $1,495.1 million in the first nine months of 2021, a 30.6-percent jump. The year-over-year increase was related to the increase in rental revenue, offset by lower sales of rental equipment of $22.6 million. The reduction in sales of used rental equipment was the result of strong rental demand and the company decision to maximize fleet size and minimize used equipment sales.
Pricing for the first nine months of 2022 increased 5.4 percent compared to last year. Dollar utilization increased to 43.2 percent compared to 42.4 percent in the year-ago period primarily because of increased volume and rate.
Herc reported net rental equipment capital expenditures of $774.6 million through the end of the third quarter of 2022, more than double the $360.9 million spent in the prior-year period. Gross rental equipment capital expenditures were $841.2 million compared to $447.0 million a year ago.
As of September 30, 2022, the company's total fleet was approximately $5.4 billion at OEC. Average fleet at OEC in the third quarter increased year-over-year by 35.0 percent compared to the prior-year period. Average fleet age was 49 months as of September 30, 2022, compared to 48 months a year ago.
Herc updated its full year 2022 adjusted EBITDA guidance range as well as its net rental capital expenditures guidelines. Previous adjusted EBITDA expectations were in the range of $1.195 billion to $1.245 billion. Now the expectation is in the range of $1.220 billion to $1.250 billion. Previous net capex expectations were in the $900 million to $1.12 billion, but the company has upped that expectation to a range of $1 billion to $1.10 billion.
Herc Rentals, headquartered in Bonita Springs, Fla., is No. 3 on the RER 100.
