Herc Holdings posted equipment rental revenue of $400.4 million in the first quarter of 2021 compared to $386.5 million during the first quarter of 2020, a 3.6-percent year-over-year increase. Total revenues for the first quarter of 2021 were $453.8 compared to $436.2 million for Q120, a 4-percent hike. Herc reported net income of $32.9 million, or $1.09 per diluted share in the first quarter of 2021, compared to a net loss of $3.7 million, or $0.13 per diluted share in the first quarter of 2020.
Pricing declined a slight 0.3 percent compared to the same period in 2020. Dollar utilization increased to 38.6 percent compared to 35.7 percent in the year-ago period.
"Our year is off to a great start with first quarter total revenues up 4 percent and adjusted EBITDA up 25 percent compared with last year," said Larry Silber, president and CEO. "Our adjusted EBITDA margin hit a record for the first quarter of 40.7 percent and reflects the strength of our operating model. Strong performance by our ProSolutionsand entertainment rental businesses drove rental revenue growth, and the efficient execution of our operating model propelled adjusted EBITDA margin expansion of 680 basis points. Our focus on customer service and the consistent implementation of a strategy to diversify our customer and industry base continues to demonstrate the strength of our business."
Adjusted EBITDA increased 25 percent to $184.6 million compared to $147.7 million in the prior-year period. The increase was primarily from improved operating efficiencies and higher contributions from the sale of rental equipment.
Herc reported net rental equipment capital expenditures of $50.6 million for 2021. Gross rental equipment capex was $90.9 million compared with $83 million in the year-ago quarter. Proceeds from disposals were $40.3 million compared to $34.6 million last year.
As of March 31, 2021, Herc’s total fleet was approximately $3.63 billion at original equipment cost. Average fleet at OEC dropped 5.1 percent year over year. Average fleet age of 48 months at the end of the quarter was the same at the end of the first quarter of 2020.
The improved results in the first quarter along with the trends the company is seeing in the market inspired officials to raise its adjusted EBITDA guidance for the year, Silber said.
“Our guidance range for adjusted EBITDA now exceeds our pre-pandemic 2019 results by 8 percent to 13 percent,” Silber said. “Overall, our end markets are showing positive momentum and demand for rental equipment is increasing. We intend to continue to take market share in our specialty businesses and to maximize our operating leverage as revenue growth accelerates in the seasonally strong part of the year.”
Herc raised its expectations for adjusted EBITDA from the $730 million to $760 million range to a range of $800 million to $840 million.
Based in Bonita Springs, Fla., Herc Rental is No. 3 on the RER 100.