April 25, 2022
HercRentals reported record equipment rental revenue of $526.8 million in the first quarter, up 31.6% from first quarter 2021 revenue of $400.4 million.
“We continued our ‘shift into high gear’ with a strong first quarter,” said Larry Silber, chairman and CEO, in a prepared statement. “Our average fleet grew 23.4% to $4.5 billion, dollar usage increased 41.4% and rental revenue increased 31.6% year over year. … The record first quarter results accelerated our full-year growth expectations and we now expect 2022 Adjusted EBITDA to increase approximately 31% to 39% from 2021.”
Rental equipment sales were down in the quarter, due to strong rental demand and the company’s “strategic management of our fleet to maximize fleet size and minimize equipment sales.” rent”.
Direct operating expenses increased primarily due to higher costs associated with increased headcount, higher maintenance expenses due to strong rental activity and higher fuel prices .
HercRentals spent $286.8 million on rental equipment investments, compared to $90.9 million in the first quarter of 2021, bringing the value of its fleet to $4.6 billion. The average fleet age was 48 months, the same as in 2021. The company raised its 2022 forecast for rental equipment investment from a range of $820 million to $1.12 billion. at a range of $900 million to $1.12 billion.