The following is a summary of the Herc Holdings Inc. (HRI) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Herc Holdings posted a record-high revenue and adjusted EBITDA for Q1 2024, with a 5% increase in rental rate year-over-year.

• The adjusted EBITDA margin in Q1 was enhanced by operating leverage and early recovery in the Studio Entertainment market.

• Incremental progress in operating efficiencies resulted in a 10% increase in adjusted EBITDA over the previous year.

• A roughly 100 basis point difference was reported in expectation for a lower amount of used equipment sales compared to 2023.

Business Progress:

• The company completed four strategic acquisitions and opened four greenfield locations in key markets in Q1 2024.

• Investments were made into high-margin ProSolutions fleet to meet growing demand.

• The company enhanced digital capabilities to improve customer experience.

• Herc Rentals' business operating system E3OS is being rolled out for better customer experiences and increased operating leverage.

• Investments into requisite fleet management have been moderated to focus on improving fleet efficiency.

• Herc Holdings is targeting a 60/40 revenue split between local and national accounts in the long term.

• A large trench shoring acquisition was carried out, expected to trade at a higher multiple than their general rents business.

• Negotiations and due diligence are ongoing with parties for the Cinelease business, expected to be disposed of within the year.

More details: Herc Holdings IR

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