VBS Inc
Forklift Enterprises, Inc
Forklift & Tires Co
Florida Forklift, Inc
Eqdeals, Inc.
Dougherty Equipment Company
ARA revenue forecast calls for modest growth in 2021 accelerating in 2022 and beyond
The American Rental Association (ARA) is forecasting a 13 percent decline in equipment and event rental revenue this year compared to 2019, dropping to $48.7 billion in the United States. However, the latest forecast released by the association on November 12 calls for modest overall growth in 2021, ticking up 0.3 percent to $48.9 billion, before accelerating recovery kicks in with the growth of 9.2 percent in 2022, 6.8 percent in 2023, and 4.8 percent in 2024 to reach $59.7 billion. The party and event segment is forecast to show the largest drop in 2020 revenue, down 38.9 percent to $2.2 billion. After so many rental stores saw business virtually disappear in the spring and early summer of 2020, the results set the stage for what will look like very favorable comparisons in 2021. For example, the ARA forecast calls for party and event rental revenue to grow by 36.4 percent in 2021 to reach $3 billion, but this recovery falls far short of making up for the 2020 decline. The segment, according to the forecast, is not expected to reach peak 2019 revenue levels again until 2024. Construction and industrial rental revenue also are forecast to finish 2020 with a significant hit in revenue, dropping 13.3 percent to $33.8 billion and a 3.3 percent decline is forecast for 2021 before double-digit growth of 11.2 percent comes in 2022. The general tool segment weathered the coronavirus (COVID-19) pandemic the best and is expected to finish 2020 down 5.2 percent to $12.7 billion and is expected to top its 2019 revenue peak by 2022. “The forecast shows us how hard the coronavirus pandemic hit the equipment and event rental industry. Hopefully, 2021 will see us getting back some of the revenue losses we experienced in the equipment and general tool segments. However, the event segment continues to have a steep hill to climb and we will be working hard to bring more relief to that segment through government stimulus programs,” says John McClelland, ARA vice president for government affairs and chief economist. Investment in equipment is significantly down in 2020, with a 43 percent decrease to $8.166 billion. Equipment spending is forecast to rebound by 17.4 percent in 2021 and by 46.3 percent in 2022 to surpass annual investment of $14 billion. In Canada, total rental revenue for 2020 is expected to come in at nearly $4.7 billion, down 15.2 percent compared to last year, before growing 7.3 percent in 2021, 8.3 percent in 2022, and 6.8 percent in 2023 to $5.83 billion, exceeding the industry 2019 peak of $5.54 billion. The party and event segment in Canada is expected to have the largest drop in revenue in 2020, down 28.5 percent to $172 million, but is forecast to bounce back in 2021 with 23.7 percent revenue growth and then surpass its peak 2019 revenue by 2023. Construction and industrial rental revenue in Canada are expected to show a decrease of 15 percent in 2020 to $3.768 billion, but then grow 7 percent in 2021 and 9.1 percent in 2022 and 7.4 percent in 2023. General tool rental revenue in Canada is forecast to decline by 12.76 percent in 2020 with revenue expected to show an increase of 5.1 percent in 2021 and 4.9 percent in 2022.
Ritchie Brothers acquires Rouse Services for $275 million
Ritchie Bros. Auctioneers and Rouse Services announced that they have entered into a definitive agreement under which Ritchie Bros. will acquire Rouse Services for approximately $275 million. Completion of the acquisition is subject to customary closing conditions, including, among other conditions, the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. “Rouse offers a highly complementary suite of data and service products that will continue and accelerate our evolution from an auction company to a global, trusted marketplace and provider of services,” said Ann Fandozzi, Chief Executive Officer, Ritchie Bros. “Rouse brings a strong reputation within the industrial equipment industry for their data integrity, reliability, and strict confidentiality, and we look forward to continuing to build on these core values in the next chapter of their growth. By working together, we will be able to help customers better understand the used equipment trends and how to use them to optimize fleet management decisions. Bringing Rouse into the Ritchie Bros. family of solutions increases connectivity and deepens our already strong relationships with fleet owners and asset-backed lenders.” Rouse Services provides data intelligence and performance benchmarking solutions that help customers make better decisions. Its subscription-based revenue is generated by three Data-as-a-service (DaaS) solutions: rental analytics, equipment sales support, and fleet appraisals. Rouse Services has approximately 60 employees and will continue to operate as-is and maintain its physical presence in Los Angeles, CA for the foreseeable future. “I am personally very excited to join the Ritchie Bros. executive team,” said Gary McArdle, Executive Vice President & Chief Operating Officer, Rouse Services. “We have spent decades building our reputation as a trusted partner in the industrial equipment industry. Opportunities to better serve our clients have always directed our growth, and by joining with Ritchie Bros., we see tremendous potential to build on our foundation and deliver even more value to our industry partners.” Under the terms of the transaction, Ritchie Bros. will acquire 100% of the equity of Rouse Services for approximately US$250 million in cash and approximately $25 million in the common stock of Ritchie Bros., subject to adjustment. “Data and analytics are fundamental building blocks to deliver great customer experiences in today’s world,” added Ms. Fandozzi. “Combining our unique perspectives will enable us to build new and innovative ways to serve our customers. We look forward to welcoming all the employees of Rouse Services into the Ritchie Bros. family. Together we are stronger and will accomplish even greater things!”
Herc Holdings reports 12.5% 2020 third quarter revenue decrease and nine months results
2020 Third Quarter Highlights and Updated Guidance – Equipment rental revenue was $402.3 million and total revenues were $456.7 million – Net income was $39.9 million, or $1.35 per diluted share – Adjusted EBITDA was $196.7 million; adjusted EBITDA margin improved 190 bps to 43.1% – Full-year 2020 adjusted EBITDA guidance was raised to a range of $655 million to $675 million from a range of $625 million to $650 million Herc Holdings Inc. has reported financial results for the quarter ended September 30, 2020. Equipment rental revenue was $402.3 million and total revenues were $456.7 million in the third quarter of 2020, compared to $459.6 million and $508.1 million, respectively, for the same period last year. The Company reported a net income of $39.9 million, or $1.35 per diluted share, in the third quarter of 2020, compared to $9.4 million, or $0.32 per diluted share, in the same 2019 period. Third-quarter 2020 adjusted net income was $39.8 million, or $1.35 per diluted share, compared to $43.2 million, or $1.48 per diluted share, in 2019. See page A-5 for the adjusted net income and adjusted earnings per share calculations. “Volume improved sequentially throughout the third quarter as many of our markets steadily recovered from the impact of COVID-19 and normal seasonality returned to the business,” said Larry Silber, president and chief executive officer. “We continued to improve adjusted EBITDA margin as our operating efficiency and cost control initiatives reduced third-quarter costs compared to the prior year. Despite the challenging business environment, our customer and industry diversification strategy continued to demonstrate the resilience of our business model. “We continue to adhere to the Centers for Disease Control and Prevention’s guidelines in our operations and interactions with customers and adapt to more stringent municipal and state mandates. Our highest priority is to ensure the health and safety of our team members and customers,” Silber added. 2020 Third Quarter Highlights Equipment rental revenue was $402.3 million compared to $459.6 million in the prior-year period. While the COVID-19 business slowdown impacted volume and pricing, monthly results continued to improve sequentially throughout the third quarter. Total revenues were $456.7 million compared to $508.1 million in the prior-year period. The year-over-year decline of $51.4 million was related primarily to lower equipment rental revenue, offset by an increase in the sales of rental equipment of $9.9 million. Pricing declined by 0.8% compared to the same period in 2019. Dollar utilization was 37.6% compared with 40.8% in the prior-year period, reflecting lower volume, fleet mix, and pricing. Direct operating expenses (DOE) of $169.4 million decreased by 14.3% compared to the prior-year period. The $28.3 million decline reflected savings in nearly every category of expense and was primarily related to lower re-rent expense, personnel-related costs, and transportation and maintenance expenses. Selling, general and administrative expenses (SG&A) declined 19.9% to $61.0 million in 2020 compared to $76.2 million in the prior-year period. The $15.2 million decline was primarily attributed to reductions in selling and travel expenses, as well as lower bad debt expense due to continued improvement in collections. Interest expense decreased to $22.4 million compared to $81.9 million in the prior-year period. The decrease was primarily related to the $53.6 million debt extinguishment expense related to the refinancing of the Company’s Notes and ABL Credit Facility in 2019, and lower interest expense related to lower balances of the Company’s ABL Credit Facility in 2020. The income tax provision was $11.7 million compared with a tax benefit of $4.2 million for the same period last year. The Company reported a net income of $39.9 million compared to $9.4 million in the prior-year period. Adjusted net income was $39.8 million compared to $43.2 million in the prior-year period. Adjusted EBITDA declined 6.1% to $196.7 million compared to $209.4 million in the prior-year period. The decrease was primarily due to lower volume and pricing. Adjusted EBITDA margin increased 190 basis points to 43.1% compared with 41.2% in the prior-year period. 2020 Nine Months Highlights Equipment rental revenue was $1,116.4 million compared to $1,244.8 million in the comparable prior-year period. The 10.3% or $128.4 million decline was primarily due to lower volume related to the impact of COVID-19. Total revenues were $1,260.9 million compared to $1,458.9 million in the prior-year period. The economic slowdown related to the COVID-19 pandemic impacted all of the Company’s revenue streams in 2020. Lower equipment rental revenue and sales of rental equipment were the primary factors contributing to the 13.6%, or $198.0 million, decline compared to the prior-year period. Pricing increased by 0.4% compared to the same period in 2019. Dollar utilization was 34.7% compared with 38.1% in the prior year, primarily a result of lower volume, mix, and flat pricing. DOE fell 12.5%, or $72.0 million, to $503.3 million, compared to the prior-year period. The decline was primarily related to lower personnel-related expenses as a result of furloughs, lower overtime expenses, and lower transportation and maintenance costs. SG&A decreased 15.2% to $187.6 million compared to $221.2 million in the prior-year period. The $33.6 million decline was primarily attributed to reductions in selling and travel expenses, as well as lower bad debt expense due to continued improvement in collections. The Company recorded restructuring expense of $0.7 million primarily related to personnel reductions compared with $7.8 million in the prior-year period associated with closures of underperforming branches. Impairment expense was $9.5 million and consisted of the partial impairment of a long-term receivable related to the sale of a former joint venture, the closure of two branch locations last year, and the sale of two locations in the third quarter of 2020. There was no impairment expense in the 2019 comparable period. Interest expense decreased to $70.1 million compared to $146.4 million in the prior-year period. The decrease was primarily related to the $53.6 million debt extinguishment expense in 2019, lower average outstanding balances on the Company’s ABL Credit Facility, and lower rates on the Company’s 2027 Notes in 2020. The income tax provision was $10.9 million compared with a benefit of $2.0 million for
H&E Equipment Services Reports 19.1% drop in third quarter compared same time last year
H&E Equipment Services, Inc. just announced results for the third quarter ended September 30, 2020. THIRD QUARTER 2020 SUMMARY Revenues decreased by 18.1% to $289.3 million versus $353.0 million a year ago. Net income was $10.1 million in the third quarter of 2020 compared to net income of $28.4 million a year ago. The effective income tax rate was 40.9% in the third quarter of 2020 and 26.7% in the third quarter of 2019. The increase in the effective income tax rate was primarily due to unfavorable permanent differences in relation to profit before tax. Excluding the impact of our 2020 first quarter goodwill impairment charge, our effective tax rate in the third quarter would have been 26.2%. Adjusted EBITDA decreased 22.5% to $98.8 million in the third quarter of 2020 compared to $127.5 million a year ago, yielding a margin of 34.1% of revenues compared to 36.1% a year ago. Total equipment rental revenues for the third quarter of 2020 were $165.8 million, a decrease of $38.3 million, or 18.8%, compared to $204.1 million a year ago. Rental revenues for the third quarter of 2020 were $149.4 million, a decrease of approximately $35.4 million, or 19.1%, compared to $184.8 million in the third quarter of 2019. New equipment sales decreased 42.7% to $37.2 million in the third quarter of 2020 compared to $65.0 million a year ago. Used equipment sales increased by 28.3% to $40.0 million in the third quarter of 2020 compared to $31.2 million a year ago. Gross margin was 34.2% compared to 37.4% a year ago. The decrease in gross margin was largely the result of lower rental gross margins. Total equipment rental gross margins were 39.4% in the third quarter of 2020 compared to 46.3% a year ago. Rental gross margins were 44.0% in the third quarter of 2020 compared to 50.8% last year. The decrease was primarily due to lower time utilization and rates. Average time utilization (based on original equipment cost) was 63.8% compared to 71.4% a year ago. The size of the Company’s rental fleet based on original acquisition cost decreased 7.8% from a year ago, to $1.8 billion. Average rental rates decreased by 4.0% compared to a year ago and declined 0.4% sequentially, based on ARA guidelines. Dollar utilization was 32.4% in the third quarter of 2020 compared to 37.5% a year ago. The average rental fleet age on September 30, 2020, was 40.0 months compared to an industry average age of 50.7 months. Brad Barber, H&E Equipment Services, Inc.’s chief executive officer and president, said, “We are encouraged that demand in our end-user rental markets accelerated during the third quarter. As a result of increased project activity and our focus on operating execution, physical utilization was 63.8% for the third quarter. This improvement represented a 430 basis point increase from the second quarter.” Barber added, “While we are seeing meaningful improvements in our rental business, our financial results remain below year-ago levels. Total revenues were down 18.1%, or $63.7 million, compared to a year ago. This was largely the result of an 18.8%, or $38.3 million, decline in total rental revenue and a 42.7%, or $27.8 million, decline in new equipment sales from a year ago. Adjusted EBITDA declined 22.5%, or $28.7 million, from a year ago, and margins decreased 200 basis points to 34.1%. However, our ongoing actions to reduce capital expenditures and operating costs resulted in significant free cash flow for the quarter. We have also continued to improve our leverage and liquidity.” Barber concluded, “The current environment could further increase the secular shift toward renting equipment versus owning, creating greater opportunities for us to increase market share. Based on our improving visibility, we plan to accelerate our growth strategy. This includes significantly increasing the number of warm starts next year. We remain focused on pursuing acquisition opportunities in both the general rental and specialty rental businesses.” FINANCIAL DISCUSSION FOR THIRD QUARTER 2020: Revenue Total revenues decreased by 18.1% to $289.3 million in the third quarter of 2020 from $353.0 million in the third quarter of 2019. Total equipment rental revenues decreased by 18.8% to $165.8 million compared to $204.1 million in the third quarter of 2019. Rental revenues decreased by 19.1% to $149.4 million compared with $184.8 million in the third quarter of 2019. New equipment sales decreased 42.7% to $37.2 million compared to $65.0 million a year ago. Used equipment sales increased by 28.3% to $40.0 million compared to $31.2 million a year ago. Parts sales decreased 11.6% to $27.9 million compared to $31.5 million a year ago. Service revenues decreased by 13.6% to $15.6 million compared to $18.1 million a year ago. Gross Profit Gross profit decreased by 25.0% to $99.1 million from $132.1 million in the third quarter of 2019. Gross margin was 34.2% for the third quarter ended September 30, 2020, as compared to 37.4% for the third quarter ended September 30, 2019. On a segment basis, the gross margin on total equipment rentals was 39.4% in the third quarter of 2020 compared to 46.3% in the third quarter of 2019. Rental margins were 44.0% in the third quarter of 2020 compared to 50.8% last year. On average, rental rates were 4.0%1 lower than rates in the third quarter of 2019. Time utilization (based on original equipment cost) was 63.8% in the third quarter of 2020 compared to 71.4% a year ago. Gross margins on new equipment sales were 11.1% in the third quarter compared to 11.6% a year ago. Gross margins on used equipment sales were 30.3% compared to 31.3% a year ago. Gross margins on parts sales were 24.9% in the third quarter of 2020 compared to 26.4% a year ago. Gross margins on service revenues were 66.8% for the third quarter of 2020 compared to 67.4% in the third quarter of 2019. ____________________ 1 Based on ARA guidelines. Rental Fleet At the end of the third quarter of 2020, the original acquisition cost of the Company’s rental fleet was $1.8 billion,
United Rentals revenues falls in the third quarter and raises full-year guidance
United Rentals posted $1.861 billion in 3rd quarter 2020 rental income compared to $2.147 billion in 3rd quarter 2019. This represents a 13.3% decline in rental revenue. United Rentals, Inc., has announced financial results for the third quarter of 2020 and raised its full-year 2020 guidance. Third Quarter 2020 Highlights Total revenue of $2.187 billion, including rental revenue1 of $1.861 billion. Fleet productivity2 decreased 8.0% year-over-year, reflecting the impact of COVID-19 on volumes; fleet productivity improved sequentially by 560 basis points, primarily due to better fleet absorption. Net income3 of $208 million, implying a net income margin3 of 9.5%. GAAP diluted earnings per share3 of $2.87, and adjusted EPS3 of $5.40. Adjusted EBITDA3 of $1.081 billion, implying an adjusted EBITDA margin3 of 49.4%. $827 million of net cash from operating activities; free cash flow4 of $583 million, including gross rental capital spending of $432 million. Total liquidity5 at September 30, 2020 of $3.430 billion. CEO Comment Matthew Flannery, chief executive officer of United Rentals, said, “We’re pleased with our third-quarter results, particularly our cost performance and the quarter-over-quarter improvement in fleet absorption. I am incredibly proud of our team as they continue to provide outstanding support to our customers while maintaining a strong focus on safety and disciplined execution.” Flannery continued, “The recovery that we’ve seen since the spring has been evident in most of our markets with demand tracking to normal seasonal patterns. We expect current trends to continue and have raised our full-year 2020 outlook for revenue, profitability, and free cash flow. While the pace of the recovery remains uncertain, we are encouraged by the steady improvements we are seeing. Most importantly, we remain confident in our ability to execute well under any market conditions.” 2020 Outlook The company has issued the following new full-year guidance: Prior Outlook Current Outlook Total revenue $8.05 billion to $8.45 billion $8.35 billion to $8.45 billion Adjusted EBITDA6 $3.6 billion to $3.8 billion $3.825 billion to $3.875 billion Net rental capital expenditures after gross purchases $50 million to $150 million, after gross purchases of $800 million to $900 million $100 million to $150 million, after gross purchases of $900 million to $950 million Net cash provided by operating activities $2.25 billion to $2.55 billion $2.45 billion to $2.55 billion Free cash flow (excluding the impact of merger and restructuring-related payments) $2.0 billion to $2.2 billion $2.2 billion to $2.3 billion Summary of Third Quarter 2020 Financial Results Rental revenue for the quarter was $1.861 billion, reflecting a decrease of 13.3% year-over-year. Rental volumes improved sequentially in each month in the quarter, consistent with normal seasonality. Fleet productivity for the quarter decreased by 8.0% year-over-year, mainly due to lower rental volumes. Fleet productivity improved by 560 basis points sequentially, primarily reflecting better fleet absorption. Used equipment sales in the quarter generated $199 million of proceeds at a GAAP gross margin of 38.2% and an adjusted gross margin7 of 44.2%; this compares with $198 million at a GAAP gross margin of 38.4% and an adjusted gross margin of 46.0% for the same period last year. Used equipment proceeds in the quarter were approximately 51.4% of original equipment cost (“OEC”), compared to 53.2% in the year-ago period. Net income for the quarter decreased 46.8% year-over-year to $208 million, while the net income margin decreased 620 basis points to 9.5%. Net interest expense increased $131 million year-over-year primarily due to a loss of $159 million associated with the note redemptions made by the company during the quarter, partially offset by decreases in average debt and the average cost of debt. Gross margin from equipment rentals decreased 90 basis points year-over-year, with 180 basis points of the margin decline due to depreciation expense, which increased as a percentage of revenue. The 90 basis point increase in rental gross margin excluding the depreciation impact was primarily due to actions the company took to manage operating costs and a majority of approximately $20 million of non-recurring benefits in the third quarter of 2020, notably benefits from certain insurance recoveries. The impact of interest and depreciation expense on net income margin was partially offset by lower income tax expense. Year-over-year, the effective income tax rate was largely flat, but income tax expense decreased as a percentage of revenue. _______________ 6. Information reconciling forward-looking adjusted EBITDA to the comparable GAAP financial measures is unavailable to the company without unreasonable effort, as discussed below. 7. Used equipment sales adjusted gross margin excludes the impact of the fair value mark-up of acquired RSC, NES, Neff, and BlueLine fleet that was sold. Adjusted EBITDA for the quarter decreased 10.4% year-over-year to $1.081 billion, while adjusted EBITDA margin increased 90 basis points to 49.4%. The increase in adjusted EBITDA margin included a 90 basis point increase in the rental margin (excluding depreciation), which reflects the combined impact of actions the company has taken to manage costs and the majority of the non-recurring benefits discussed above. Adjusted EBITDA margin also benefited from a decrease in selling, general, and administrative (“SG&A”) expense as a percentage of revenue. Excluding the non-recurring benefits, the adjusted EBITDA margin for the third quarter was flat year-over-year. General rentals segment had a 15.3% year-over-year decrease in rental revenue to $1.391 billion for the quarter. Rental gross margin decreased by 190 basis points to 39.0%, with 220 basis points of the margin decline due to depreciation expense, which increased as a percentage of revenue. The 30 basis point increase in rental gross margin excluding the depreciation impact was primarily due to the combined impact of actions the company has taken to manage operating costs, and the one-time benefits discussed above. Specialty rentals segment, or Trench, Power and Fluid Solutions, rental revenue decreased 6.9% year-over-year to $470 million for the quarter. Rental gross margin increased by 110 basis points to 49.8%, mainly due to decreases in certain operating costs, including repairs and overtime labor, partially offset by increases in depreciation expense and certain fixed expenses, such as facility costs, as a percentage of revenue. Cash flow from operating activities decreased 11.4% to $2.288 billion for the first nine
Ahearn Rentals sues rival over patent
Ahern Rentals Inc. has filed a complaint with rival Equipmentshare.com Inc., in Texas federal court for allegedly infringing a patent covering a method to control rented equipment remotely. Ahern owns U.S. Patent No. 9,193,330, titled ‘Method and a System for Controlling and Monitoring Operation of a Device’ and owned by Ahern since rights were transferred to the company by its inventor, Daniel Abshire. The patent is related to a system for sending authorization codes to the equipment and preventing renters from using it outside of the rental period by locking them out if they don’t have a code. The pre-programmed authorization code goes into effect at the start of the rental period and expires at the end, after which the equipment no longer responds to attempts at operation. The technology also permits remote lockdown of the equipment if any attempt is detected to disable the authorization code. Ahern’s complaint seeks damages as well as an injunction against EquipmentShare’s further exploitation of technology based on Ahern’s patent. The lawsuit asserts that EquipmentShare has waged a four-year campaign of misinformation, trade-secret theft, and employee poaching against Ahern. Ahern’s complaint alleges that around 2016, a pair of EquipmentShare executives, who had previously known and done business with Abshire and were aware of the patent, proposed a meeting between the inventor and EquipmentShare co-founder, Jabbock Schlacks. Ahern’s lawsuit contends that a fix to EquipmentShare’s own tracking system was accomplished with information gleaned from the meeting with Abshire, which infringes on his patent.
The ARA Show™ 2021 announcement
Much has transpired since The ARA Show™ 2020 in Orlando. As the American Rental Association has been planning for 2021, their number one goal has always been to ensure the safety of its members and maintain the success and integrity of the premier event for the equipment and event rental industry. As time has progressed and we near the end of 2020, it has become clear that The ARA Show will not be feasible in February 2021 in New Orleans. After monitoring the many variables that impact the future of The ARA Show and reviewing results from an attendee intention survey around a two-day trade show floor only event, ARA has decided to move the show to Las Vegas in October 2021. This will enable ARA to deliver the rental-specific education and networking events that attendees said were critical elements of the show. In addition, there are many new developments in Las Vegas that made it an appealing city to host the show. Education will be held on Sunday, October 17, with the trade show floor to follow Oct. 18-20. “The safety and vitality of the rental community is our top priority,” said Tony Conant, ARA CEO. “We consulted with our members, monitored all the leading sources of health information, and worked closely with convention center partners, the city of New Orleans, and many others in an effort to ensure a clean, safe and essential show in February. When it became clear that the pandemic would not allow us to safely host the type of event our rental community expects, we adapted — just as our industry has throughout a resilient 2020.” With the timing of the fall 2021 show, ARA has canceled the 2022 show scheduled for Anaheim. The usual February rotation will resume in 2023, when we return to Orlando. In lieu of a 2022 show, ARA is exploring options for a focused buyer/seller showcase in 2022 to bridge the gap between shows. Please note that housing will open in February. Be sure to book your room through onPeak, ARA’s official housing partner, to take advantage of the best rates Las Vegas has to offer. Show registration will open in July of 2021.
Paul McDonnell to step down from United Rentals
United Rentals, Inc., has announced that Paul McDonnell, chief commercial officer, will leave the company on September 30, 2020. Mr. McDonnell will continue to provide advisory services to United Rentals in an independent capacity for 24 months. His leadership responsibilities with respect to sales and specialty operations will be absorbed under Dale Asplund, chief operating officer. Matthew Flannery, chief executive officer of United Rentals, said, “We thank Paul for his significant contributions to the success of our company, both as a talented leader and a strong advocate for our customers. He led the growth of our specialty rental segment to the largest network of its kind in the world. I’m pleased that Paul will remain available to us, and I join our executive team in wishing him continued success.” Mr. McDonnell’s tenure in the rental industry includes 21 years with United Rentals. He joined the company in 1999 upon the acquisition of D&E Steelplate Rental, and subsequently held roles of increasing responsibility, leading to his appointment as executive vice president and chief commercial officer in 2019. Mr. McDonnell said, “It has been an honor to help grow United Rentals from its early days in equipment rental to a $9 billion industry leader and innovator. I share my pride in those accomplishments with the many extraordinary people I’ve had the privilege to work with along the way. I wish the company continued success.”
Hunter Street Partners acquires All-Star and launches Equipment Rental Investment Platform
Hunter Street Partners (“Hunter Street“), a Minneapolis-based alternative investment management firm, just announced the launch of a scalable platform to invest in equipment rental companies. Hunter Street has acquired All-Star Equipment Rental of Naples (“All-Star”), a single-site operator based in Southwest Florida, and will work closely with the company’s management team to evaluate other opportunities for expansion in the region. All-Star rents, sells, and services equipment including but not limited to forklifts, boom lifts, mini-excavators, skid steers, scissor lifts, and an extensive offering of small equipment. All-Star serves a range of commercial end-markets including construction, renovation, landscaping, energy, milling, and agriculture companies in the Southwest Florida region. Hunter Street plans to work with All-Star’s management to identify opportunities to expand its fleet and add new equipment product types to better serve customer demand. In addition, Hunter Street will look to acquire other regional operators of complementary businesses to scale the equipment rental platform. “The COVID-19 pandemic created an imbalance in the equipment rental space, and as the U.S. positions itself for an eventual economic rebound, companies like All-Star will be among the first movers in a recovery,” said Neal Johnson, CEO, and CIO of Hunter Street Partners. “The Southwest Florida equipment rental market will benefit from broader economic factors including the pent-up demand for infrastructure spending and home building, and we’re excited to work closely with Kevin and the team at All-Star to serve more local businesses.” “All-Star is excited to continue supporting contractors getting back to business, and we strongly believe Hunter Street’s support will help us expand our rental offerings as well as our ability to reach a broader range of customers,” said Kevin Duffy, president of All-Star. “We’re grateful to the hundreds of local businesses we worked with over the last 18 years, and we look forward to continuing to build the All-Star brand with our new partner.”
Cooper Equipment Rentals acquires Herc Rentals Atlantic Canada
Cooper Equipment Rentals Limited (“Cooper”), an independent equipment rental company in Canada, announced that it has acquired the Atlantic Canada assets (“Herc Atlantic”) of Herc Rentals Inc. (“Herc “). Herc is a full-service equipment rental firm operating throughout North America. The Herc Atlantic assets include two full-service branches located in Dartmouth, NS and Saint John, NB. Herc Atlantic has developed a strong presence in the Maritimes, with a dedicated and professional team of employees and a solid core of customers. “We are excited to enter the Atlantic Canada market with the acquisition of the Herc Atlantic assets. I believe the solid team of rental professionals at Herc Atlantic will integrate well with, and ultimately contribute to, the Cooper culture. Herc Atlantic’s late-model equipment fleet and excellent branch facilities will allow our new team members to deliver the high level of service that Cooper customers across the country have come to expect,” said Darryl Cooper, president of Cooper. Doug Dougherty, CEO of Cooper, added, “this strategic acquisition establishes Cooper as a national company, with operations spanning both coasts. It allows us to support customers throughout Atlantic Canada with best-in-class service, and positions us well to continue building out our branch density and specialized service offering throughout all regions of Canada.”
Sunbelt Rentals partners with the 2020 Marine Corps Marathon
Sunbelt Rentals is partnering with the 2020 Marine Corps Marathon. The MCM, also known as “The People’s Marathon,” is celebrating its 45th anniversary. Sunbelt Rentals will have several team members, including veteran employees, family members, and those running to honor a veteran, participating in the now-virtual race between September 27 and November 10. “We are excited to be a part of this important event and share the commitment of Sunbelt Rentals in supporting our veteran employees,” said Shane McKenzie, director, Veterans Programs, Sunbelt Rentals. “Our team members make Sunbelt Rentals successful, and we want our company to be a place where veterans can find careers that leverage their leadership, work ethic, training, and education.” The Sunbelt Rentals Veterans Program is designed to improve support for military veteran team members and their families. It is built on the foundation of resources, recruitment, recognition, and retention. That includes offering job aids and resource groups, strategic partnerships, mentors, and more to ensure the success of veteran team members. “As a veteran, I am honored to participate in the MCM this year,” said Jeff Alberts, a Sunbelt Rentals branch manager. “It gives me time to reflect on those who have given the ultimate sacrifice for this country, especially the soldiers I served within the conflict. The fact that Sunbelt Rentals supports the MCM shows their commitment to the veteran community and the value they see in the technical expertise of their veteran employees.” The MCM was established to promote physical fitness and generate community goodwill, while also showcasing the high standards and discipline of the United States Marine Corps.
Sunbelt Rentals revenue falls 7 percent in fiscal first quarter
Sunbelt Rentals U.S. posted $1,284.1 billion in revenue in the fiscal first quarter of 2021 compared to $1,380.9 billion, a 7-percent year-over-year decrease. Rental-only revenue in the United States was only 8 percent lower than the prior year. Sunbelt Canada’s revenue was Canadian $90.4 million compared to CDN $94.8 million in the fiscal first quarter a year ago, a 4.6-percent decline. Sunbelt U.K. posted £123.3 million compared to £131.4 million a year ago, a 6.2-percent decline. While trading volumes were lower than last year as a result of the pandemic, this has been mitigated, in part, by emergency response efforts throughout the company’s business units especially the specialty businesses. Sunbelt Rentals is designated as an essential business in the U.S., U.K., and Canada and has supported government and private sector responses to the pandemic. This includes providing vital equipment and services to first responders, hospitals, alternative care facilities, testing sites, food services, and telecommunications and utility companies, while continuing to service ongoing construction sites and increased facility maintenance and cleaning. As a result of these market dynamics, rental-only revenue in the U.S. was only 8-percent lower than the prior year. The general tool business dropped 9 percent, while the specialty businesses (excluding oil and gas) grew the rental-only business by 6 percent. The strong specialty performance contributed to group rental revenue dropping only 8 percent at constant exchange rates. The degree of impact on volume has varied significantly across geographical markets and is correlated to the severity of infection rates and associated market-level restrictions. “In these challenging markets, the group delivered a strong quarter with rental revenue down only 8 percent at constant exchange rates,” said CEO Brendan Horgan. “This resilient performance illustrates the successful execution of our long-term strategy, which we embarked upon after the last recession, to broaden and diversify our end markets and strengthen our balance sheet. This positioned us to capitalize on our ever-increasing scale, while remaining agile, particularly during these unprecedented times. The actions we took to optimize cash flow, reducing capital expenditure and operating costs, resulted in record free cash flow for the first quarter of £447m (2019: £161m) contributing to reduced leverage of 1.8 times compared to 1.9 times at year-end. “Looking forward, the strength of our business model and balance sheet positions the group well in these more uncertain markets. Assuming there is no significant COVID-19 second wave leading to major market shutdowns like we experienced earlier this year, we expect full-year group rental revenue to be down mid-to-high single digits when compared with last year on a constant currency basis. The benefit we derive from the diversity of our products, services, and end markets, coupled with ongoing structural change, enables the board to look forward to a year with free cash flow in excess of £1 billion, continued strengthening of our market position, and the medium-term with confidence.” Activity levels have increased consistently through the quarter such that the company has almost as much fleet on rent in the U.S. and Canada as last year and slightly more in the U.K. With some impact from Hurricane Laura, U.S. August rental revenue was 7 percent (3 percent on a billings-per-day basis) lower than last year.
United Rentals shares Safety Playbook for equipment rentals
COVID-19 protocols include contactless drive-up service and pre-rental and last-touch disinfecting United Rentals, Inc., the industry’s largest equipment rental provider, has shared nine key protocols at the core of its response to COVID-19. Following the onset of the pandemic, the company acted quickly to implement new measures for the safety of its employees and customers, both inside and outside its branches. The added protocols expand on the company’s industry-leading commitment to best safety practices, training, and communications. “Now, more than ever, construction and industrial companies are looking for assurance from partners that business is being conducted in the safest possible way,” said Antwan Houston, director of operations preparedness for United Rentals. “In early March, we prioritized the development of guidelines to ensure safe, continuous operations for our internal teams and customers. This playbook has been operationalized companywide, with the flexibility to adapt to a fast-changing environment.” United Rentals has detailed the following nine protocols for safe operations implemented in response to COVID-19: Contactless and Worksite Protocols Drive-up Service and Designated Drop Zones: United Rentals offers a contactless drive-up service that lets customers pick up or drop off the equipment in designated areas without going inside the branch. Last-Touch Disinfecting: United Rentals drivers disinfect commonly-touched surfaces upon delivering equipment at a worksite. This is the second time equipment is disinfected before it is put in the customer’s hands (see Pre-Rental Disinfecting below). Driver Precautions: United Rentals drivers maintain safe social distancing at customer sites and wear a mask when a safe distancing is not possible. Digital Capabilities: Customers of United Rentals can browse equipment, schedule rentals, and designate equipment off-rent from their computer or mobile app for a contactless transactional experience. This enhances safe access to the industry’s largest rental fleet of construction, industrial, and specialty solutions. In-Branch Protocols Pre-Rental Disinfecting: In addition to performing safety and mechanical checks, United Rentals disinfects equipment before each rental, paying particular attention to controls, latches, seat belts, and other high-touch surfaces. Social Distancing: United Rentals personnel maintain safe social distancing at branches and equipment yards, delineated by floor decals. Plexiglass Counter Barriers: United Rentals branches have installed plexiglass barriers at service counters to provide added protection during in-person transactions. Personal Protective Equipment (PPE): United Rentals requires face coverings where social distancing cannot be achieved and requires additional PPE as needed. The company provides PPE to its employees and where available, to customers who need it to enter the branch. Communications: United Rentals has a strong communications infrastructure that delivers consistent safety messaging across its more than 1,160 branches. Protocols are emphasized at daily safety huddles with branch teams. In addition, periodic employee town halls reinforce top-down safety messaging, and constant input from branch and district managers ensure that local conditions are taken into account.
Honda Power Equipment launches CO-MINDER Carbon Monoxide Detector for Generators
Technology to be integrated with the full line of honda generator models by end of 2020 Honda Power Equipment, a business unit of American Honda Motor Co., Inc., is taking a bold step in generator safety by equipping all models in its portable generator lineup with CO-MINDER™, a new advanced carbon monoxide (CO) detection system designed to help protect users from injury or death from accidental carbon monoxide poisoning. The Honda CO-MINDER™ system continuously measures carbon monoxide levels in the air near the generator and automatically shuts down the unit before detected CO reaches a dangerous level. Honda Power Equipment is first in the industry to commit to installing CO detection systems on its full line of generator models. Millions of customers depend on Honda generators for work, home, and play—tailgating, camping, on-the-job—and for emergency home backup during power outages. Generators must be used outdoors and away from windows and doors to prevent the buildup of carbon monoxide, a colorless, odorless, tasteless, and deadly gas. Even outdoors, if there is no wind, it is possible for CO to accumulate to life-threatening levels in certain locations, such as under the tongue of a fifth wheel recreational vehicle. Honda Power Equipment will roll out the CO-MINDER™ technology on existing generator models throughout 2020, starting in July with four models—the EU1000i and EU3000iS Super Quiet Series inverter generators for work, home, and recreational applications; the Economy Series EG4000 open-frame unit for home backup and workplace power; and the EB10000 Industrial Series The Brain Behind the Honda CO-MINDER™ Carbon Monoxide Detection System The Honda CO-MINDER™ carbon monoxide detection system incorporates a robust, fast-reacting sensor that continuously monitors for carbon monoxide in the air near the generator. If the sensor detects a CO level at or exceeding 800 parts per million (ppm) at a given time, or an average of 400 ppm for 10 minutes (per Portable Generators Manufacturers’ Association [PGMA] G300-2018 standards), it triggers the generator to shut down automatically. A safety light on the main panel notifies the user that a buildup of carbon monoxide caused the generator to shut down. Honda designed the CO-MINDER™ system to be fast-acting, reducing nuisance shutdowns from false positives. Slower CO sensing systems must respond to dangers at a lower CO concentration in order to react in time to shut down the generator. Lower, temporary concentrations of CO can occur in certain conditions, such as when a gust of wind blows exhaust back toward the sensor, creating a false positive, a shutdown, and an inconvenience to the user. Honda CO-MINDER™ is an improvement over those systems. The Honda CO-MINDER™ carbon monoxide detection system is built with a comprehensive range of safety features. The system is not intended to be overridden or tampered with, and the sensors are designed to work even if they are accidentally blocked. The sensors, with the widest temperature operating range of any existing CO monitors for generators, match the design running temperatures of Honda generators, allowing for use anywhere in the U.S. Both moisture and dust resistant, the sensors are designed for years of use. Further, the generator sensor system automatically tests itself and is equipped with a built-in warning, alerting the user to replace the sensors prior to the end of life. Finally, the sensors conform to the American National Standards Institute (ANSI) PGMA G300-2018 quality standard established for carbon monoxide monitors for generators. “At Honda, Safety for Everyone is our commitment to incorporate industry-leading safety features into all of our product lines, whether they’re cars, motorcycles, jets, or outdoor power equipment,” said Will Walton, Vice President of Honda Power Equipment. “Our CO-MINDER™ carbon monoxide detection system is designed to help ensure that everyone who operates a Honda generator can do so with increased confidence, providing users, friends, and families with reliable, portable power and peace-of-mind protection.” Labels on the Honda generator models equipped with the CO-MINDER™ carbon monoxide detection system contain additional safety information, such as an exhaust directional safety warning decal, an anti-tamper message, and information on restarting the generator after an automatic CO-related shutdown. In addition, a portable generator should never be plugged into a standard outlet. A safe connection starts with a transfer switch installed by a licensed electrician. The switch cuts off the utility power while the generator operates, and powers only selected circuits. When utility power is restored, the user disconnects the generator from the transfer switch so that power is not fed back to the utility power source (thereby preventing injury to a utility worker). The Honda generator line offers a range of wattages and other innovative features, including inverter technology that provides clean, stable power, protecting against damaging power surges, large fuel tanks, full-frame protection, and electric starters. “As a leader in the portable generator industry, Honda Power Equipment has been highly supportive of the safety standards adopted by ANSI/PGMA G300-2018. In 2020, we are proud to be the industry’s first manufacturer to commit to installing CO detection devices on 100 percent of our portable generators,” added Walton. “CO-MINDER™ technology exemplifies Honda’s corporate commitment to providing industry-leading products and safety features for all.” A Closer Look: First Honda Generators with CO-MINDER™ Carbon Monoxide Detection System Super Quiet Series Models The Honda EU1000i is the perfect solution for scenarios where basic power and ultra-lightweight are required. Weighing in at 28.7 pounds, the EU1000i can easily be carried and conveniently stored (but not operated) in small recreational vehicle compartments. The unit also features a two-tiered noise dampening system that reduces noise to 50 dB(A)—quieter than normal speech, which is approximately 60 dB(A)—at rated load and can run 3.0 to 6.8 hours on a single tank of fuel, depending on the load. The Honda EU3000iS model is one of the smallest, quietest generators capable of starting and running most modern 13,500 BTU rooftop recreational vehicle (RV) air conditioners and other RV appliances. Equipped with a large 3.4-gallon fuel tank and electric-start capability, this model also doubles as a home backup unit to power a furnace, refrigerator,