Herc Holdings Inc. (NYSE:HRI) Q2 2021 Earnings Conference Call July 22, 2021 8:30 AM ET Company Participants Elizabeth Higashi - Vice President-Investor Relations Larry Silber - President & Chief Executive Officer Aaron Birnbaum - Senior Vice President & Chief Operating Officer Mark Irion - Senior Vice President & Chief Financial Officer Conference Call Participants Ross Gilardi - Bank of America Jerry Revich - Goldman Sachs Steven Ramsey - Thompson Research Group Mig Dobre - Baird Neil Tyler - Redburn Ken ...

HERC HOLDINGS INC. Q2 and First Half 2021 Earnings Conference Call July 22, 2021 ©2021 Herc Rentals Inc. All Rights Reserved. Herc Rentals Team Larry Silber President & Chief Executive Officer Mark Irion Senior Vice President & Chief Financial Officer Aaron Birnbaum Senior Vice President & Chief Operating Officer Elizabeth Higashi Vice President, Investor Relations & Sustainability NYSE: HRI 2 ©2021 Herc Rentals Inc. All Rights Reserved. Safe Harbor Statements and Non-GAAP Financial Measures Forward-Looking ...

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=ITEM%201.%20Financial%20Statements) The company's financial statements reflect a stronger financial position with significant year-over-year revenue and net income growth for Q2 and H1 2021 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $3.7 billion, driven by an increase in net rental equipment, while total equity increased to $835.4 million Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total current assets** | $379.7 | $367.1 | | **Rental equipment, net** | $2,308.7 | $2,260.4 | | **Total assets** | **$3,682.6** | **$3,588.4** | | **Total current liabilities** | $392.2 | $328.0 | | **Long-term debt, net** | $1,539.2 | $1,651.5 | | **Total liabilities** | **$2,847.2** | **$2,846.4** | | **Total equity** | **$835.4** | **$742.0** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported significant year-over-year revenue and net income growth for both the second quarter and first half of 2021 Statement of Operations Summary (in millions, except per share data) | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | $490.9 | $368.0 | $944.7 | $804.2 | | Equipment rental | $448.0 | $327.6 | $848.4 | $714.1 | | **Income (loss) before taxes** | $61.8 | $0.1 | $102.9 | $(2.5) | | **Net income (loss)** | **$47.1** | **$2.0** | **$80.0** | **$(1.7)** | | **Diluted EPS** | **$1.55** | **$0.07** | **$2.64** | **$(0.06)** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to $327.9 million for H1 2021, while investing activities increased due to higher equipment expenditures Cash Flow Summary for Six Months Ended June 30 (in millions) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $327.9 | $280.4 | | **Net cash used in investing activities** | $(204.7) | $(101.6) | | Rental equipment expenditures | $(239.3) | $(161.5) | | **Net cash used in financing activities** | $(122.0) | $(128.7) | | **Net increase in cash** | $1.6 | $50.2 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies for revenue recognition, the company's debt structure, and the dismissal of a significant securities litigation case - The company's revenue is primarily generated in the United States, accounting for approximately **91.6% of total revenue for Q2 2021**[44](index=44&type=chunk) Revenue Breakdown by Accounting Standard (Q2 2021, in millions) | Standard | Revenue | Total Revenue | | :--- | :--- | :--- | | Topic 842 (Leases) | $422.4 | $490.9 | | Topic 606 (Contracts) | $68.5 | $490.9 | - A putative shareholder class action, *In re Hertz Global Holdings, Inc. Securities Litigation*, was **dismissed with prejudice in April 2021**, resolving a long-standing legal matter[80](index=80&type=chunk)[82](index=82&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=25&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q2 2021 performance to economic recovery, driving significant growth in equipment rental revenue and maintaining robust liquidity [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q2 2021 revenue grew 33.4% year-over-year, driven by a 36.8% increase in equipment rental revenue from higher volume and positive pricing Key Performance Changes (Q2 2021 vs Q2 2020) | Metric | Q2 2021 | Q2 2020 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Equipment rental revenue | $448.0M | $327.6M | $120.4M | 36.8% | | Total revenues | $490.9M | $368.0M | $122.9M | 33.4% | | Direct operating expenses | $203.0M | $144.7M | $58.3M | 40.3% | | SG&A | $74.0M | $56.8M | $17.2M | 30.3% | | Net income | $47.1M | $2.0M | $45.1M | NM | - The increase in Q2 2021 equipment rental revenue was driven by **higher volume of equipment on rent and positive pricing of 1.9%** over the same period in 2020[117](index=117&type=chunk) - The increase in Q2 2021 direct operating expenses was primarily due to higher personnel-related costs ($20.4M), delivery and freight ($10.4M), maintenance ($9.2M), and re-rent expenses ($8.0M)[119](index=119&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $1.5 billion in credit availability and has increased capital expenditures to support growth - As of June 30, 2021, the company had liquidity of **$34.6 million in cash** and cash equivalents and approximately **$1.5 billion of unused commitments** under its ABL Credit Facility[133](index=133&type=chunk) Net Rental Equipment Capital Expenditures (Six Months Ended June 30, in millions) | Item | 2021 | 2020 | | :--- | :--- | :--- | | Rental equipment expenditures | $239.3 | $161.5 | | Disposals of rental equipment | $(71.0) | $(67.9) | | **Net rental equipment expenditures** | **$168.3** | **$93.6** | - The company is **not subject to ongoing financial maintenance covenants** under its credit facilities as of June 30, 2021, as it has maintained the appropriate levels of liquidity[149](index=149&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material change in its exposure to market risks from its 2020 Annual Report - As of June 30, 2021, there has been **no material change** in the company's market risk disclosures from its 2020 Annual Report[158](index=158&type=chunk) [Controls and Procedures](index=33&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal controls - Management concluded that as of June 30, 2021, the company's **disclosure controls and procedures were effective**[159](index=159&type=chunk) - **No changes in internal control over financial reporting** occurred during the quarter ended June 30, 2021, that have materially affected, or are reasonably likely to materially affect, internal controls[160](index=160&type=chunk) [PART II. OTHER INFORMATION](index=34&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=34&type=section&id=ITEM%201.%20Legal%20Proceedings) This section refers to Note 11 for details on legal matters, highlighting the dismissal of a significant shareholder class action - For details on legal proceedings, the report refers to **Note 11 in Part I, Item 1**[163](index=163&type=chunk) [Risk Factors](index=34&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to the company's risk factors have been reported since its 2020 Annual Report on Form 10-K - **No material changes to risk factors** were reported compared to the 2020 Annual Report on Form 10-K[164](index=164&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company made no share repurchases during H1 2021, with $395.9 million remaining available under its repurchase program - **No share repurchases** were made during the six months ended June 30, 2021[165](index=165&type=chunk) - As of June 30, 2021, **$395.9 million remains available** for share purchases under the Share Repurchase Program[165](index=165&type=chunk) [Exhibits](index=35&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including officer certifications and XBRL data files

Herc Holdings Inc. (NYSE:HRI) Q1 2021 Results Conference Call April 22, 2021 8:30 AM ET Company Participants Elizabeth Higashi - VP, IR Larry Silber - President and CEO Aaron Birnbaum - SVP and COO Mark Irion - SVP and CFO Conference Call Participants Ross Gilardi - Bank of America Rob Wertheimer - Melius Research Jerry Revich - Goldman Sachs Brian Sponheimer - Gabelli Funds Neil Tyler - Redburn Steven Ramsey - Thompson Research Ken Newman - KeyBanc Capital Mig Dobre - Baird Operator Good morning. Welcome t ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Exact name of registrant as specified in its charter) Delaware 20-3530539 _______________________________________________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001- ...

HERC HOLDINGS INC. Bank of America Securities Global Industrials Conference March 16, 2021 Larry Silber President and Chief Executive Officer Mark Irion Senior Vice President & Chief Financial Officer Elizabeth Higashi, CFA Vice President, Investor Relations & Sustainability HercRentals® ©2021 Herc Rentals Inc. All Rights Reserved. Safe Harbor Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation includes forward-looking statements as that term is defined by the federal sec ...

Herc Holdings, Inc. (NYSE:HRI) Q4 2020 Earnings Conference Call February 18, 2021 8:30 AM ET Company Participants Elizabeth Higashi - VP, IR Lawrence Silber - President, CEO & Director Aaron Birnbaum - SVP & COO Mark Irion - SVP & CFO Conference Call Participants Mircea Dobre - Robert W. Baird & Co. Kenneth Newman - KeyBanc Capital Markets Ashok Sivamohan - Goldman Sachs Group Steven Ramsey - Thompson Research Group Operator Good day, and welcome to the Herc Holdings Inc. Fourth Quarter 2020 Earnings Confer ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________________________ FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-3313 HERC HOLDINGS INC. (Exact name of registrant as specified in its charter) ( ...

Financial Performance - Q3 2020 - Equipment rental revenue was $402.3 million, a decrease of 12.5% year-over-year[9] - Total revenues reached $456.7 million, down 10.1% compared to the previous year[9] - Net income significantly increased by 324.5% year-over-year to $39.9 million[9] - Earnings per diluted share rose by 321.9% year-over-year to $1.35[9] - Adjusted EBITDA was $196.7 million, a decrease of 6.1% year-over-year, with an adjusted EBITDA margin of 43.1%, an increase of 190 bps year-over-year[9] Fleet Management - The company managed a fleet valued at $3.73 billion at OEC (Original Equipment Cost)[16] - Fleet disposals in Q3 2020 amounted to $124 million, generating approximately 37% proceeds as a percentage of OEC[18] Market and Strategy - The company is focusing on high-growth urban markets, operating in 39 states and 5 provinces with 270 locations[14] - ProSolutions rental revenue increased by 14% in Q3 compared to the prior year[11] - The company updated its FY 2020 adjusted EBITDA guidance to $655 million to $675 million[41]

Financial Data and Key Metrics Changes - Equipment rental revenue was $402.3 million in Q3 2020, a decline of 12.5% or $57.3 million compared to the prior year [19][45] - Total revenues in Q3 were $456.7 million, down 10.1% or $51.4 million year-over-year, primarily due to lower rental revenue [20][45] - Adjusted EBITDA was $196.7 million, a decline of 6.1% compared to the prior year, but an improvement from Q2 [21][48] - Net income increased significantly to $39.9 million, or $1.35 per diluted share, compared to $9.4 million, or $0.32 per diluted share in 2019 [21][46] - Adjusted EBITDA margin improved to 43.1%, up 190 basis points from the prior year [21][48] Business Line Data and Key Metrics Changes - The specialty ProSolutions business delivered double-digit year-over-year rental revenue growth in Q3, with a 14% increase compared to the prior year [16][26] - National account customers represented 44% of rental revenues, providing stability during the COVID-19 pandemic [14][38] - The company managed to maintain positive average rates for the first nine months of the year compared to last year [16] Market Data and Key Metrics Changes - The rental revenue from contractors represented 34%, industrial customers 29%, infrastructure and government 18%, and other customers 19% of total rental revenue [36] - The industrial manufacturing activity began to close the gap with pre-COVID-19 levels, indicating a recovery in that segment [38] Company Strategy and Development Direction - The company has made strategic investments in specialty equipment rental over the last four years, which have proven beneficial during the pandemic [13][32] - The company aims to continue expanding its footprint through new locations and high-growth urban markets [30][31] - The focus remains on maintaining a lean cost structure, improving margins, and providing excellent service to a diverse customer base [40] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the balance of the year, highlighting the company's resilience and ability to adapt to challenges [12][39] - The company expects a return to normal seasonality for the rest of the year, with a projected decline in rental revenue of 6% to 8% in Q4 compared to the prior year [41][68] - Management raised the adjusted EBITDA guidance for the full year 2020 to a range of $655 million to $675 million, assuming no further COVID-19 related shutdowns [67][68] Other Important Information - The company generated approximately $252 million in free cash flow year-to-date and increased liquidity to $1.4 billion by the end of Q3 [18][60] - Total debt was $1.8 billion as of September 30, 2020, a reduction of about $236 million from December 31, 2019 [61] Q&A Session Summary Question: What end markets are driving the sequential improvement into Q4? - The improvement is driven by a stronger comeback in non-residential commercial markets and emergency response markets due to hurricanes [80] Question: Can you elaborate on the EBITDA guidance for Q4? - Q3 is typically the seasonal peak in margin, and Q4 may see losses on equipment sales impacting EBITDA margins [84] Question: How does the fleet size impact utilization and market activity? - The company is working to close the gap to 2019 levels and can adjust fleet size based on actual demand [92] Question: What is the outlook for the entertainment business? - Visibility on TV and film is good, but live events remain uncertain due to the pandemic [113] Question: How significant were the unique factors like hurricanes and entertainment in Q3 results? - Revenue attributed to hurricanes and fires was only about 1% of the total third quarter revenue [126]