Herc Rentals reports ‘good momentum’ for 2021
By Murray PollokFebruary 18, 2021
U.S. rental company Herc Rentals increased its 2020 net profits by 55% to $73.7 million despite the challenges of Covid-19. Its final quarter revenues were only 3.6% below the same period in 2019, reflecting a strong rebound from the pandemic.
Revenues for the full year to December 31 were 10.9% lower year-on-year at $1.781 million, with the pandemic impacting on all its revenue sources, but primarily rental revenues and new equipment sales.
In response to the health crisis the company reduced its gross capital spending on fleet by almost half to $344.1, with net spending of $151.6 million. However, net fleet spending this year is forecast to almost triple to between $400 and $450 million.
“We exceeded our expectations for the fourth quarter and have good momentum going into 2021,” said Larry Silber, president and CEO.
“During the year, we adjusted fleet to respond to the declines in volume related to the impact of Covid-19 on our customers and focused on controlling costs. The quick implementation of those initiatives led to our improved adjusted EBITDA margin and excellent free cash flow for the full year.
“Our commitment to customer service and consistent implementation of a strategy to diversify our customer and industry base continues to demonstrate the strength of our business model.”