Herc Holdings reports strong Third Quarter 2022 results and raises 2022 guidance
Third Quarter Highlights Equipment rental revenue increased 35.9% to a record $706.2 million Total revenues increased 35.4% to $745.1 million Net income increased 40.2% to $101.4 million, or $3.36 per diluted share Adjusted EBITDA grew 40.3% to a record $345.0 million and adjusted EBITDA margin expanded 160 basis points to 46.3% Repurchased approximately 540,000 shares of common stock Raises FY 2022 adjusted EBITDA guidance to 36% to 40% growth over the prior year Herc Holdings Inc. has reported financial results for the quarter that ended September 30, 2022. Equipment rental revenue was $706.2 million and total revenues were $745.1 million in the third quarter of 2022, compared to $519.6 million and $550.4 million, respectively, for the same period last year. In the third quarter of 2022, the Company reported a net income of $101.4 million, or $3.36 per diluted share, an increase of 41.8% compared to $72.3 million, or $2.37 per diluted share, in the same 2021 period. “We continued to see strong demand for our equipment rental services across all of our geographic regions,” said Larry Silber, president and chief executive officer. “Our rental revenue increased 35.9% over the prior year, while the average fleet increased 35.0% to $5.3 billion. Adjusted EBITDA increased 40.3% to $345.0 million and adjusted EBITDA margin expanded 160 basis points to 46.3% in the quarter. “Just as our third quarter was nearing its close, Hurricane Ian landed in Southwest Florida. The ferocity of its impact on our local communities has been widely reported in the news. Our outstanding and dedicated Herc team stepped up to immediately respond to the needs of fellow team members, customers, and communities. I want to thank all of our team for their support and their commitment to operate safely and effectively throughout the preparation, cleanup, and remediation that is now ongoing throughout the region.” 2022 Third Quarter Financial Results Equipment rental revenue increased 35.9% to $706.2 million compared to $519.6 million in the prior-year period. Total revenues increased 35.4% to $745.1 million compared to $550.4 million in the prior-year period. The year-over-year increase of $194.7 million was primarily related to an increase in equipment rental revenue of $186.6 million and an increase in sales of rental equipment of $4.9 million. Pricing increased6.2% compared to the same period in 2021. Dollar utilization decreased to 45.3% compared to 46.0% in the prior-year period primarily due to a mix of equipment on rent. Direct operating expenses (DOE) of $277.5 million increased 32.8% compared to the prior-year period. The $68.6 million increase was primarily related to strong rental activity and increases in payroll and related expenses associated with additional headcount, in addition to higher fuel prices, maintenance and facilities expenses. Depreciation of rental equipment increased 32.4%, or $34.2 million, to $139.6 million due to higher year-over-year average fleet size. Non-rental depreciation and amortization increased 50.0%, or $8.5 million, to $25.5 million primarily due to the amortization of acquisition intangible assets. Selling, general and administrative expenses (SG&A) increased 36.8% to $111.5 million compared to $81.5 million in the prior-year period. The $30.0 million increase was primarily due to increases in selling expenses, including commissions and other variable compensation increases, general payroll and benefits, and travel expenses. Interest expense increased to $33.0 million compared with $21.4 million in the prior-year period due to increased balances and interest rates on the ABL Credit Facility. The income tax provision was $34.2 million compared to $23.8 million for the prior-year period. The provision was driven by the level of pre-tax income, offset partially by certain non-deductible expenses. The Company reported a net income of $101.4 million compared to $72.3 million in the prior-year period. Adjusted net income increased 42.2% to $103.4 million, or $3.42 per diluted share, compared to $72.7 million, or $2.38 per diluted share, in the prior-year period. Adjusted EBITDA increased 40.3% to $345.0 million compared to $245.9 million in the prior-year period, while adjusted EBITDA margin increased 160 basis points to 46.3% compared to 44.7% in the prior-year period. 2022 Nine Months Financial Results Equipment rental revenue increased 34.4% to $1,838.4 million compared to $1,368.0 million in the prior-year period. Total revenues increased 30.6% to $1,952.8 million compared to $1,495.1 million in the prior-year period. The year-over-year increase of $457.7 million was related to an increase in equipment rental revenue of $470.4 million, offset primarily by lower sales of rental equipment of $22.6 million. The reduction in sales of rental equipment resulted from strong rental demand and the strategic management of our fleet to maximize fleet size and minimize the sales of rental equipment. Pricing increased5.4% compared to the same period in 2021. Dollar utilization increased to 43.2% compared to 42.4% in the prior-year period primarily due to increased volume and rate. Direct operating expenses (DOE) of $751.0 million increased by 33.4% compared to the prior-year period. The $187.9 million increase was primarily due to strong rental activity and increases in payroll and related expenses associated with additional headcount, in addition to increases in fuel prices, maintenance, delivery and freight, facilities, and re-rent expenses related to the corresponding increase in re-rent revenue. Depreciation of rental equipment increased 26.8%, or $82.2 million, to $389.1 million through the third quarter of 2022 due to higher year-over-year average fleet size. Non-rental depreciation and amortization increased 41.2%, or $20.1 million, to $68.9 million primarily due to the amortization of acquisition intangible assets. Selling, general and administrative expenses (SG&A) increased 34.8% to $297.9 million compared to $221.0 million in the prior-year period. The $76.9 million increase was primarily due to increases in selling expenses, including commissions and other variable compensation, general payroll and benefits, and travel expense. Interest expense increased to $80.7 million compared with $63.8 million in the prior-year period due to increased balances and interest rates on the ABL Credit Facility. The income tax provision was $68.1 million compared to $46.7 million for the prior-year period. The provision in each period was driven by the level of pre-tax income, offset partially by a benefit related to stock-based
Durante Equipment joins LiuGong North America Dealer lineup
LiuGong North America has added another Florida-based dealer to its lineup, in the form of Hollywood, Fla.-based Durante Equipment. Durante Equipment is a general rent equipment operations company (it includes both construction equipment and material handling products) and boasts a 30-year track record of experience led by Dealer Principal/President John Durante and GM/Sales Manager David D’Attilo. The Hollywood location allows Durante to serve material handling and earthmoving customers in Miami-Dade, Broward, and Palm Beach counties. Durante’s family and dealership background are based in New York. He added the Florida location roughly 2 ½ years ago. The availability of material handling inventory is key to the partnership, D’Attilo said. D’Attilo noted a strong customer base within material handling and worked with the LiuGong North America team to become the dealer for sales as well as rentals. Additionally, D’Attilo described the importance of culture within Durante Equipment with its three core tenets: driven to deliver, old-school values, and a passion to be the best. “I like to say that we are constantly building a culture,” D’Attilo said. “We are very selective on who to keep and put into our team because we want to have people here for the long haul.” Jared Ward, LiuGong North America Director of Material Handling, welcomed the Durante Equipment family into the fold. “Durante Equipment has a strong pedigree in rentals and material handling, and we are thrilled to welcome them to our LiuGong dealer lineup,” Ward said. “Ensuring they have the products and availability they need is a major part of our mission and program.” Michel Marchand, LiuGong North America Vice President of Sales, noted the importance of Durante to LiuGong’s construction equipment dealer network. “Florida is booming with projects requiring heavy equipment,” Marchand said. “As we continue to add great partners to our dealer network, we are confident Durante Equipment will be up to the task of servicing earthmoving customers in the area.”
Equipment Leasing and Finance Association’s Survey of Economic Activity: Monthly Leasing and Finance Index
August New Business Volume Up 4 Percent Year-over-year, Down 13 Percent Month-to-month, Up 5 Percent Year-to-date The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross-section of the $900 billion equipment finance sector, showed their overall new business volume for August was $8.8 billion, up 4 percent year-over-year from new business volume in August 2021. Volume was down 13 percent from $10.1 billion in July. Year-to-date, cumulative new business volume was up 5 percent compared to 2021. Receivables over 30 days were 1.5 percent, down from 1.6 percent the previous month and down from 1.8 percent in the same period in 2021. Charge-offs were 0.17 percent, down from 0.18 percent the previous month and down from 0.23 percent in the year-earlier period. Credit approvals totaled 75.2 percent, down from 78 percent in July. The total headcount for equipment finance companies was down 2.9 percent year-over-year. Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in September is 48.7, a decrease from 50 in August. ELFA President and CEO Ralph Petta said, “August origination volume reflects an equipment finance industry that is fueling continued growth and expansion of businesses throughout the U.S. Up to this point at least, steadily rising interest rates do not appear to dampen the enthusiasm of businesses that prefer the utilization of productive assets versus their ownership, which is the essence of the equipment finance sector. With the Fed’s most recent 75-basis point jump in short-term interest rates and the prospect of a hard landing, time will tell whether—and to what extent—these same business owners continue to grow and invest in equipment.” Thomas Sbordone, Managing Director and National Sales Manager, BMO Harris Equipment Finance, said, “While the economic data may be construed in any number of ways and can feel, at times, unsettling, the fundamentals of our equipment finance business remain strong. Companies invest in capital equipment, throughout all cycles, for a myriad of reasons, and equipment obsolescence is certainly real. Productivity gains require capital and business owners are always seeking an edge over the competition. Once decision-makers get past the initial ‘sticker shock’ of seeing how their financing rates have climbed over the past year they make rational choices based on their individual circumstances. The August MLFI results look positive, generally, given the market environment with continued high inflation, supply chain issues, and other challenges. It will be interesting to see the September end-of-quarter MLFI results when the effects of the Fed’s latest interest rate hike are clearer. A ‘wait and see’ approach never feels great, but we’re reminded that patience is a virtue.”
Westland and ARA partner to offer Canadian ARA members commercial insurance package
Surrey, BC/Territories of the Coast Salish (Kwantlen, Katzie, Semiahmoo, Tsawwassen first nation) Territory – Westland Insurance Group (Westland) and the American Rental Association (ARA) announced today an exclusive partnership to deliver insurance solutions to ARA members across Canada. Westland and ARA offer a commercial insurance package that includes liability, property (building, stock, and equipment), contractors’ equipment that is rented or sold, and cyber insurance. “Westland is excited to work with ARA to bring this comprehensive commercial insurance package to Canadian ARA members,” says Donna Barclay, EVP, Commercial and Specialty at Westland Insurance. “Our exclusive partnership means Canadian ARA members now have access to uniquely specialized insurance protection to complement education, business resources, news, and research insights designed for the equipment and event rental industry. Tony Conant, ARA CEO, says, “We’re really happy to have found a partner like Westland Insurance that will set our Canadian members up for success. Westland understands the complexities of rental and why insurance is so crucial to business operations. We’re excited to work with them and serve our members in all provinces.” This package is now available to ARA members across Canada and more information can be found on the ARA website – click here.
H&E opens new branch in Hollywood, FL
Effective September 21, 2022, H&E Equipment Services Inc. (H&E) announces the opening of its Hollywood rental branch, its 10th in the state of Florida. The branch is located at 2200 N. 30th Road, Hollywood, FL 33021-3737, phone 754-764-1200. It includes a fully fenced yard area, offices, and a separate repair shop and is capable of handling a variety of construction and general industrial equipment for customers in south Florida. “H&E has identified several locations to better serve its Florida customers and is expanding in the Sunshine State. Between our new Hollywood branch and our existing Pompano Beach facility, our company has the Atlantic coast covered down to Miami,” says Branch Manager Robert Monterrey, who has worked in the area for more than a dozen years. “The construction market in south Florida is healthy and growing, and we are well-positioned just off of I-95 and near other major thoroughfares for convenient, fast service to customers. With a 20-year track record in the state and one of the youngest fleets in the industry, we can deliver reliable equipment for any project in the area.” The Hollywood branch specializes in the rental of aerial lifts, telescopic forklifts, earthmoving machinery, compaction equipment, generators, compressors, and more and represents the following manufacturers: Allmand, Atlas Copco, Bomag, Case, Club Car, Cushman, Doosan, Gehl, Generac Mobile, Genie, Hilti, Husqvarna, JCB, JLG, John Deere, Kubota, LayMor, Ledwell, Lincoln Electric, Link-Belt Excavators, MEC, Miller, Multiquip, Polaris, Skyjack, SkyTrak, Sullair, Sullivan-Palatek, TAG, Taylor, Towmaster Trailers, Wacker Neuson, Yanmar, and others.
Texada Software announces strategic acquisition of LogiMove
LogiMove adds extensive mobile workflow capabilities to the Texada rental management platform enabling powerful applications including automated equipment inspection Texada Software (“Texada”), Texada Software (“Texada”), a software platform for the equipment dealer and rental industry, announced that it has acquired LogiMove CheckMobile Global (“LogiMove”). LogiMove is known for its next-generation mobile no-code/low-code applications for operations and field services in the equipment industry. With this acquisition, Texada adds a powerful new component to its platform which integrates equipment dealers’ and rental companies’ back offices with both their service and maintenance operations, and with their sales and e-commerce. LogiMove, based in Reno, Nevada, and Hamburg, Germany, is a no-code/low-code application for digitizing and optimizing field operations for heavy equipment dealers and rental companies. LogiMove’s tools are used by industry-leading companies to create fully-customizable process solutions that automate field tasks, like inspections, without the need for complex coding. “This is an extremely exciting time for Texada. The addition of the LogiMove solution to Texada’s platform enables us to provide an entirely new set of integrated field solutions helping our customers automate otherwise very time-consuming tasks,” said Matt Harris, Texada CEO. Harris added, “Importantly, LogiMove is a proven product being used innovatively by some of the world’s largest rental companies. Adding LogiMove to Texada will be a game changer for our customers and for the equipment rental and dealer market in general.” “The heavy equipment rental and dealer markets are ripe for innovation since much of the software in use today dates back to the ‘80s and ‘90s, with cumbersome processes and poor customer experience. The Texada platform and broad customer base combined with LogiMove’s mobile-first customer-centric applications make this the most exciting offering in the industry. I am thrilled to have the opportunity to be part of creating this future,” said Philipp Weirauch, founder of LogiMove. The Texada platform provides customers with a complete solution for managing equipment rental businesses and equipment assets themselves. Texada solutions integrate an equipment rental company’s back office with its field operations, customer acquisition, and payments, enabling rental companies to have end-to-end control and visibility into their business. LogiMove brings new integrated capabilities enabling powerful field applications such as AI-driven automated pre- and post-rental equipment inspections which demonstrably improve customers’ inspection accuracy and recovery of damage charges. “There is a large need in the equipment dealer and rental markets for easy-to-use, modern, cloud-based software and we’re excited to acquire such a complementary platform as well as the talented LogiMove team to build a market leader,” said Hugh Kirkpatrick, Vice President at Banneker. “We know an integrated low-code/no-code solution will add tremendous value for our customers and we look forward to investing in a shared vision to digitize and transform the equipment industry.” The acquisition is effective immediately.
Equipment Leasing and Finance Association’s Survey of Economic Activity: Monthly Leasing and Finance Index
July New Business Volume Up 2 Percent Year-over-year, down 2 percent Month-to-month, up 5 percent Year-to-date The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross-section of the $900 billion equipment finance sector, showed their overall new business volume for July was $10.1 billion, up 2 percent year-over-year from new business volume in July 2021. Volume was down 2 percent from $10.3 billion in June. Year-to-date, cumulative new business volume was up 5 percent compared to 2021. Receivables over 30 days were 1.6 percent, up from 1.5 percent the previous month and down from 1.9 percent in the same period in 2021. Charge-offs were 0.18 percent, up from 0.15 percent the previous month and unchanged from the year-earlier period. Credit approvals totaled 78.0 percent, down from 78.1 percent in June. The total headcount for equipment finance companies was down 2.8 percent year-over-year. Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in August is 50, an increase from 46.1 in July. ELFA President and CEO Ralph Petta said, “Industry performance continues to show solid growth. Despite higher interest rates, continued supply chain disruptions, and higher inflation, the equipment finance industry continues to deliver value to businesses that rely on it to acquire necessary capital equipment to run their operations. Equipment finance providers leverage a positive credit environment and abundant liquidity to help these businesses grow and prosper.” Michael Romanowski, President, of Farm Credit Leasing, said, “We continue to see robust interest from agribusinesses and producers as they look to expand operations and lock in low long-term rates. Demand is outstripping supply as we continue to experience equipment delivery delays due to continued supply chain challenges. Solar leasing remains attractive, and we expect continued interest with the passing of the Inflation Reduction Act.”
What to do in the current Finance, Rental and Leasing world
This should be fun! Here I sit putting my thoughts together on July 27 waiting on Mr. Powell to announce how much Fed Fund rates are increasing this month. I will assume a .75% increase which should make some people happy and others looking for a window ledge to climb out on. Obviously, those that leveraged up to take advantage of the super low rates are trying to figure out how to make the next debt service payment. On the other hand, those that kept their balance sheet in decent shape with adequate cushion to deal with a recession or AR problems caused by customers that leveraged up will continue to move on ready to take advantage of competitors running out of gas (I assume they have no EV’s). So, what is going on? Prime Libor Fed Funds Dec 31 rate 3.25 .583 .250 July 5 rate 4.75 3.57 1.75 % increase 46% A A A = stupid numbers but you get the idea… increase in interest expense (if you have a floating rate deal), which will eat up your cash flow as well as call for higher EBITDA numbers to meet your Debt Service bank covenants. And these numbers do not have the July 27 rate hike included. You may want to check with your banker to see how this will work out for you. If you have a fixed rate deal with a rate lower than what a current rate deal would cost, you want to do whatever it takes to keep that contract in place. If you have a deal in place that is steadily increasing, you can investigate a swap that provides a “cap” on the rate you pay. The swap can get a little complicated and expensive if the rate you agree to is never reached. So, talk to multiple sources to make sure you understand what is happening. Just to make things clear the rates shown above are the base rates on which the bank adds another 2-3%. For example, it is Libor plus 2 or Prime plus 3. In either case, you encounter a material increase in interest expense. Lenders that finance dealers, customer purchases, and lessors have to change their outlook on their operations as well. The rates, as well as collateral values, are moving around on them which has made them nervous. And when you add the recession factor into the equation that scares them even more due to potential defaults and reductions in collateral value should they be required to liquidate collateral. We have not mentioned the rental segment of the market, but for dealers, this could be a win or a loss depending on your ability to finance an increase in the rental activity. Looking at the June 2022 Small Biz Optimism Index? ….it does not look good at all. They posted a sixth consecutive drop in June with all 10 components declining. Owners expect better business conditions in the next six months at the lowest level in 48 years. 69% report significant impact from supply chain issues. Labor top business problem. These business owners have been paying low-interest rates up until now. They are in a tricky situation. This Index leads me to believe that the equipment rental business is going to soar because businesses will not be able to fund Cap-x transactions, and at the same time will want to avoid fixed costs, additional debt, and the high-interest rates associated with the debt. It will pay to keep what they have to avoid the inflation-inspired unit cost increases which also adds to their debt burden without any additional benefit. So, dealers who can provide parts and service for multiple brands, perform refurb work to lower the cost of replacing units, and have the capital to carry a short-term fleet for customers that only need units on a seasonal basis or an up and down work-flow schedule. As you have figured out already your balance sheet is going to be the determinant factor in how you work your way through this economic scenario you are facing. There are opportunities out there, but do you have the capital to make profitable things happen? Better figure out where you stand because all the noise about prices falling, and a recession that will lower prices and interest rates are all wondering if you have the cushion to make it through the recession. A review of the MHEDA 3-year forecast does not support robust growth for the balance of this year and most of 2023, which supports finding programs to make money without taking on any long-term debt service. What I would do is: Dig out all your financing and dealer agreements to make sure you are following the contract terms. Your auditors probably do this as part of their yearly work. So, ask them to provide what they have in their files, and if necessary, ask them to review your covenant calculations to make sure they are correct and in the ballpark. Along these same lines, you should have a template to calculate your EBITDA number. EBITDA is normally part of the covenant process but is easily misused for “one-time” expenses that should be removed from the calculation as well as monthly non-cash charges over and above depreciation that should also be added back into EBITDA. You may also have “not normal” expenses that could also be added back. For example, if you engage in a lawsuit and incur a substantial amount of legal fees, I would want to add those back since they have nothing to do with operating the business. Personally, a company I worked with closed existing locations and added new locations, incurring a big cost to move the equipment around. That cost was added back. Calculate EBITDA on a TTM (trailing twelve months) cycle and keep updating the annual EBITDA you projected. And what you really do not need in 2022 is for the new lease accounting rules to appear on your 2022 financials. Making
ARA forecast remains bullish on equipment rental revenue growth despite headwinds
Today’s economic indicators are mixed and uncertain, but all continue to point toward significant growth for equipment rental revenue in the U.S. according to the latest quarterly update of the five-year forecast released by the American Rental Association (ARA). The update, released Aug. 3, projects equipment rental revenue, including the construction and general tool segments, to grow 11.2 percent to nearly reach $55.9 billion in 2022. ARA expects growth of 6.2 percent in 2023, 2.5 percent in 2024, 3.3 percent in 2025, and 3.7 percent in 2026 to total more than $65.1 billion. “Rental revenue continues to experience significant growth, despite some headwinds in 2022. The longer-term forecast, while showing slower growth than this year, remains bullish. It is generally a good time to be in the equipment rental industry,” says Tom Doyle, ARA vice president for program development, “In these times of higher uncertainty, it is prudent to closely watch the driving factors to the forecast for changes that will affect build schedules for original equipment manufacturers (OEMs) or demand for rental companies. Depending on how long we have high inflation, supply chain constraints, labor shortages, and climbing interest rates, those econometric drivers can have an impact on the rest of 2022 and the outlook for 2023,” Doyle says. For construction equipment rental revenue, the forecast calls for a 12.5 percent increase in 2022 to surpass $41.6 billion, with growth slowing to 7 percent in 2023, 2 percent in 2024, 3 percent in 2025, and 3 percent in 2026. General tool growth is expected to be 7.4 percent in 2022 and then remain fairly steady with 5 percent growth in 2023, 3 percent in 2024, 5 percent in 2025, and 5 percent in 2026. The ARA forecast for equipment rental revenue in Canada, combining construction and general tool revenue, closely mirrors the outlook for the U.S., projecting growth of 14.4 percent in 2022 to $4.7 billion, 6 percent in 2023, 2 percent in 2024, 3.4 percent in 2025 and 3.3 percent in 2026 to exceed $5.4 billion.
ARA adds to leadership team focused on Rental Workforce Development initiatives
The American Rental Association (ARA) announces Erika Singleton as the association’s new Workforce Development Manager. With a background in human resources management, employee training, and program marketing, her role will work to address the industry labor shortage by promoting rental as a career. “We’re elated to have Singleton on board,” said Tony Conant, ARA CEO. “She’s the perfect fit to support our current and future workplace initiatives due to her extensive experience and her proven success in driving new strategies and solutions forward.” The current ARA workplace initiatives include an industry job portal, best practices documents, customizable job description templates, employee recruitment videos, and an employee recruitment website — exclusively available for ARA member access. Singleton will also serve as a resource on additional topics, such as the following: Rental industry public speaking – Tips for speaking at colleges, trade shows, career fairs, and more. Attending career and job fairs – Advice on how to best promote rental careers among various audiences. Workforce solutions – Guidance and resources for attracting quality candidates for rental industry careers and temporary employment opportunities. Alternative funding programs – Understanding special grants, funding, and local and state programs available for employers to use. “Adding Erika to our team will enhance current workplace initiatives,” said James Auerbach, ARA’s Vice President for the Event Segment and Rental Industry Workforce Development department. “She is focused on continuing to expand her knowledge and putting her expertise into practice in her role with ARA.”
Herc Holdings reports strong Second Quarter 2022
Second Quarter Highlights Equipment rental revenue increased 35.1% to a record $605.4 million Total revenues increased 30.5% to $640.4 million Dollar utilization increased 40 basis points to 42.5% Net income increased 53.3% to $72.2 million, or $2.38 per diluted share Adjusted EBITDA grew 36.8% to a record $284.2 million and the adjusted EBITDA margin expanded 210 basis points to 44.4% Company amends and extends its senior secured asset-based revolving credit facility from $1.75 billion to $3.5 billion, maturing July 5, 2027 Announces plan to repurchase shares under the 2014 Share Repurchase Program Narrows FY 2022 adjusted EBITDA guidance by raising lower end of guidance range Herc Holdings Inc. has reported financial results for the quarter ended June 30, 2022. Equipment rental revenue was $605.4 million and total revenues were $640.4 million in the second quarter of 2022, compared to $448.0 million and $490.9 million, respectively, for the same period last year. Herc reported a net income of $72.2 million, or $2.38 per diluted share, in the second quarter of 2022, compared to $47.1 million, or $1.55 per diluted share, in the same 2021 period. Second quarter 2022 adjusted net income was $74.8 million, or $2.47 per diluted share, compared to $47.6 million, or $1.57 per diluted share, in 2021. “We continued to see strong demand for our equipment rental services across all of our geographic regions,” said Larry Silber, president and chief executive officer. “Our rental revenue increased 35.1% over the prior year, while the average fleet increased 32.1% to $4.9 billion. Dollar utilization increased to 42.5% in the second quarter as market demand supported strong sequential and year-over-year rate growth. Adjusted EBITDA increased 36.8% to $284.2 million and adjusted EBITDA margin expanded 210 basis points to 44.4% in the quarter.” 2022 Second Quarter Financial Results Equipment rental revenue increased 35.1% to $605.4 million compared to $448.0 million in the prior-year period. Total revenues increased 30.5% to $640.4 million compared to $490.9 million in the prior-year period. The year-over-year increase of $149.5 million was related to an increase in equipment rental revenue of $157.4 million, offset primarily by lower sales of rental equipment of $11.0 million. The reduction in sales of rental equipment resulted from the strategic management of our fleet to maximize fleet size and minimize the sales of rental equipment as a result of strong rental demand. Pricing increased 5.5% compared to the same period in 2021. Dollar utilization increased to 42.5% compared to 42.1% in the prior-year period, primarily due to increased volume and rate. Direct operating expenses (DOE) of $270.7 million increased 33.3% compared to the prior year period. The $67.7 million increase was primarily related to strong rental activity and increases in payroll and related expenses associated with additional headcount, higher fuel prices, maintenance, delivery and freight, and facilities expenses. Selling, general and administrative expenses (SG&A) increased 31.1% to $97.0 million compared to $74.0 million in the prior-year period. The $23.0 million increase was primarily due to increases in selling expenses, including commissions and other variable compensation increases, and travel expenses. Depreciation expense increased 28.8%, or $29.1 million, to $130.2 million due to a higher year-over-year average fleet size. Interest expense increased to $25.2 million compared with $21.0 million in the prior-year period due to increased balances and floating rates on the ABL Credit Facility. The income tax provision was $25.3 million compared to $14.7 million for the prior-year period. The provision was driven by the level of pre-tax income, offset partially by certain nondeductible expenses. The Company reported a net income of $72.2 million compared to $47.1 million in the prior year period. Adjusted net income was $74.8 million compared to $47.6 million in the prior year period. Adjusted EBITDA increased 36.8% to $284.2 million compared to $207.7 million in the prior year period. Adjusted EBITDA margin increased 210 basis points to 44.4% compared to 42.3% in the prior-year period. 2022 First Half Financial Results Equipment rental revenue increased 33.5% to $1,132.2 million compared to $848.4 million in the prior-year period. Total revenues increased 27.8% to $1,207.7 million compared to $944.7 million in the prior year period. The year-over-year increase of $263.0 million was related to an increase in equipment rental revenue of $283.8 million, offset primarily by lower sales of rental equipment of $27.5 million. The reduction in sales of rental equipment resulted from strong rental demand and the strategic management of our fleet to maximize fleet size and minimize the sales of rental equipment. Pricing increased 4.9% compared to the same period in 2021. Dollar utilization increased to 42.0% compared to 40.4% in the prior-year period primarily due to increased volume and rate. Direct operating expenses (DOE) of $516.9 million increased 33.9% compared to the prior year period. The $130.9 million increase was primarily due to strong rental activity and increases in payroll and related expenses associated with additional headcount, increases in fuel prices, maintenance, delivery and freight, facilities, and re-rent expenses related to the corresponding increase in re-rent revenue. Depreciation increased 23.8%, or $48 million, to $249.5 million for the first half due to a higher year-over-year average fleet size. Selling, general and administrative expenses (SG&A) increased 33.6% to $186.4 million compared to $139.5 million in the prior-year period. The $46.9 million increase was primarily due to increases in selling expenses, including commissions and other variable compensation, general payroll and benefits, and professional fees. Interest expense increased to $47.7 million compared with $42.4 million in the prior-year period due to increased balances and floating rates on the ABL Credit Facility. The income tax provision was $33.9 million compared to $22.9 million for the prior-year period. The provision in each period was driven by the level of pre-tax income, offset partially by a benefit related to stock-based compensation and non-deductible expenses. The Company reported a net income of $130.7 million compared to $80.0 million in the prior year period. Adjusted net income was $134.0 million compared to $81.0 million in the prior year period. Adjusted EBITDA increased 32.8% to $521.0
Bomag Americas announces the passing of Bert DeJong
Bomag Americas announced the passing of Bert DeJong, a company leader and industry veteran for more than 30 years. DeJong is well remembered for being smart, honest, fair, and an industry pioneer, who helped drive success for both rental customers and Bomag. DeJong passed away on May 26, 2022, at the age of 68. “Throughout his 32-year career with Bomag, Bert was a consummate professional and team player, always willing to put forth the dedication and effort required to support his fellow colleagues and customers,” said Rob Mueckler, president of Bomag Americas Inc. “Today, Bomag commands a large presence in the rental market, mainly due to Bert’s leadership and valuable commitments to this customer segment, which is a true success story. More importantly, he was one of the most genuine and respectful colleagues that I’ve had the privilege to work with, and he will be deeply missed by the Bomag family and our rental customers. Bert’s contributions and compassion for others will be long remembered by us all, and his family will remain a part of the Bomag family.” DeJong began his long career with Bomag in 1986, when he joined the sales team at Bomag Canada in Mississauga, Ontario. Displaying a true passion for building the Bomag brand and integrity when working with customers, DeJong worked his way up to general manager of Bomag Canada. Bomag’s acquisition of the Stow Manufacturing equipment line in the mid-1990s afforded DeJong the opportunity to lead the North American rental equipment business for the company. He worked with internal sales, dealers, and manufacturer representatives to successfully expand the Bomag brand and increase sales for the broad light equipment range throughout the United States and Canada. One of his signature accomplishments, DeJong was instrumental in Bomag’s development of the articulated trench roller and its introduction to North America. The Bomag BMP 8500 quickly became a preferred trench roller among contractors and enjoyed a dominant market share throughout North America. “My father took great satisfaction in bringing the highly successful BMP 8500 trench roller to market, and he represented the Bomag brand with integrity and a calm demeanor,” said Wayne DeJong, Bomag rental sales manager for Canada, who is following in his father’s footsteps with the company. “Even with his many sales accomplishments, he took the most pride in being a mentor and friend to many in the rental business. He spurred many careers in the industry simply by helping when asked.”
Rental Revenue jumps 14.3 percent in Q2, Baird/RER Survey respondents say
Sixty-one percent of respondents said second-quarter revenue exceeded expectations, while 34 percent reported revenue in line with their initial expectations. Average rental revenue increased 14.3 percent year over year in the second quarter, according to respondents to the 2Q Baird/RER rental equipment industry survey. The increase was mostly in line with last quarter’s 14.8-percent hike. This marks the fourth consecutive quarter of double-digit growth. Sixty-one percent of respondents said second-quarter revenue exceeded expectations, while 34 percent reported revenue in line with their initial expectations. Overall commentary on rental revenue was more cautious compared to recent surveys. “Our web inquiries have seen a dramatic decrease over the last two weeks, so we think the interest rate hikes have slowed some markets on new equipment purchases already,” said one respondent. “The next rate hike in July may tip the scales and have us revisit our stock sales inventory forecasting for 2023.” “Unless energy costs stabilize, inflation will persist,” said another. “Workforce is a much more severe problem to the growth of the industry and will significantly negatively impact value of infrastructure bill,” added another respondent. “Bit of a slowdown, not sure if it is weather or slowdowns caused by labor shortages,” said a third respondent. Another respondent said this spring was slower than 2021, and that his company’s revenue increase is from rate and price increases rather than organic growth. Fleet utilization was 62.3 percent for the second quarter, up from 61.8 percent in the first quarter and a full percentage point from the second quarter of 2021 when it was 61.3 percent. The utilization was better for earthmoving equipment than it was for access machinery. Earthmoving utilization increased to 65 percent in the second quarter compared to 63.5 percent in the second quarter of 2021. However, access utilization declined year over year from 64.5 percent a year ago to 62.1 percent this year. Small iron improved from 52.2 percent a year ago to 53.3 percent this year. Average rental rates were up 4.5 percent year over year, basically the same as last quarter when they rose 4.4 percent. Improvement in rental demand helped provide pricing flexibility. There was, relatively speaking, little commentary regarding rental rate pressure from larger competitors. Rental rates still to rise in 2022 Respondents said they expect rental rates to be up 5 percent for the year, which is similar to last quarter’s forecast when respondents predicted a 5.1 percent for the year. However, rental companies did express concerns. “Competitors are not raising their rental rates in line with the price increases we are having to pay for new machines,” said one. “Expenses are superseding income increases,” added another. “The cost of doing business is rising dramatically, and rental rates do not seem to be keeping up with the pace.” Respondents are expecting a 9.7-percent revenue hike in 3Q22 with 27 percent expecting a 1 to 5 percent increase year over year. 25 percent expected 5 to 10 percent and 24 percent expected a 10 to 15 percent leap. Respondents still expect an 11.7 percent increase in 2022, up from an expected 9.2 percent increase last quarter. Steady demand from end markets is still expected to continue but is partially offset by equipment and labor shortages. However, respondent optimism is not as high for 2023. “An economic slowdown in 2023 seems more likely all the time,” said one. “A modest slowdown would seem to be an appropriate tonic that might improve the labor market, manufacturing lead times, and improve supply chain restraints.” “With all the uncertainty in the economy we have major concerns for 2023,” said another. “Extremely busy today but not sure if things will slow down creating a glut of equipment.” Growth in the cost of new equipment continues to be high. Respondents placed the increase at 6.6 percent, down a bit from the previous two quarters, which were increases of 7.2 percent and 6.8 percent. OEMs are still aggressively raising prices to offset their own costs, including elevated steel prices. The May Construction Machinery Manufacturing PPI hit a record high (back to 2004) of 11.4 percent year over year. Extended lead times, or uncertainty over lead times, remain a major concern because of the difficulty of fleet planning. Fleet sizes still increasing Respondents’ average fleet size in a number of units increased 6.6 percent year over year in 2Q22, which was the strongest growth since 1Q18. Respondents expect to increase fleet purchases by 9.7 percent year over year compared to 8.5 percent last quarter. Access equipment spending is expected to rise 7.5 percent over the next six months, with earthmoving expected to up 10.2 percent, small iron at 4.6 percent, and “other” 20.3 percent. Thirty-nine percent of respondents expect labor costs to increase 5 to 10 percent in 2022, versus 52 percent last quarter, while 35 percent expect labor costs to top 10 percent. Respondents also expressed concern regarding higher interest rates impacting the housing market and equipment financing rates, with 28 percent expecting a potential residential construction slowdown. With six months remaining in 2022, respondents expect 6.3 percent revenue growth in 2023, compared to 11.7 percent growth in 2022, and 6 percent fleet spending growth compared to 9.7 percent growth in the second half of 2022.
Rental Equipment Investment Corp. acquires Cahill Services, LLC
Rental Equipment Investment Corp. (REIC), a portfolio company of Kinderhook Industries LLC, announced the acquisition of Cahill Services. Cahill represents REIC’s second add-on acquisition under Kinderhook’s ownership and REIC’s 14th since its inception. The financial terms of the transaction were not disclosed. Cahill is a provider of specialty rental solutions for high-demand, critical applications across infrastructure, construction, and industrial maintenance markets. Founded in 2015 and headquartered in Livonia, Mich., Cahill operates four service centers in Canada and two service centers in the United States. Cahill is one of the largest “pure-play” specialty rental service providers of critical climate control and lighting equipment including proprietary flameless heaters and hybrid light towers. REIC’s acquisition of Cahill represents a unique opportunity to add a growing, differentiated specialty rental model that leverages both proprietary technology and local market expertise to provide critical specialty rental solutions. “We are excited to welcome the Cahill team to REIC,” said Kevin Fitzgerald, CEO of REIC. “Cahill’s patented JetHeat is the HVAC industry’s premier flameless heater, and a unique product offering that we are excited to roll out throughout our fleet. The JetHeat® helps customers achieve fuel savings, which in turn generates significant cost savings over the duration of a project.” Dennis Haller, CEO of Cahill, added, “My team is thrilled about the opportunity to join REIC’s specialty rental division. Cahill has experienced tremendous growth in the past 24 months and will now have access to the additional resources of REIC to scale our business and continue capturing market share.” “The acquisition of Cahill furthers REIC’s mission of becoming a national specialty rental provider and results in 12 standalone specialty rental locations across North America,” said Paul Cifelli, managing director at Kinderhook. “We are eager to partner with Cahill’s seasoned management team who have deep sector expertise and a long history of growing businesses in specialty rental.” “Cahill’s built a strong foundation in the specialty rental market industry and will add new geographies and products to REIC’s existing fleet,” said Nate Druckenmiller, vice president, Kinderhook. “Kinderhook and REIC look forward to leveraging the capabilities of the combined businesses to accelerate growth.” Kirkland & Ellis LLP served as legal counsel to Kinderhook. Prestwick Partners served as the Kinderhook Industries’ exclusive financial advisor and Winston & Strawn LLP acted as legal advisor to Cahill. Financing for the transaction was provided by a PNC Capital Markets bank syndicate, which included Flagstar Bank, Axos Bank, BancAlliance, Banc Hapoalim, First Merchants Bank, MUFG Union Bank, and Stifel Bank & Trust.
Equipment Finance Industry confidence lower in May
The Equipment Leasing & Finance Foundation (the Foundation) releases the May 2022 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector. Overall, confidence in the equipment finance market is 49.6, a decrease from the April index of 56.1. When asked about the outlook for the future, MCI-EFI survey respondent David Normandin, CLFP, President and CEO, Wintrust Specialty Finance, said, “Adapting to change is what the equipment leasing industry is all about. Our current rising rate environment will be good for the overall financial health of equipment finance companies as obligors adapt to the new world rate order and margin is built back into the business. I do think this will create challenges for many who may not have a long-term stable capital structure.” May 2022 Survey Results: The overall MCI-EFI is 49.6, a decrease from the April index of 56.1. • When asked to assess their business conditions over the next four months, 6.9% of executives responding said they believe business conditions will improve over the next four months, a decrease from 14.8% in April. 62.1% believe business conditions will remain the same over the next four months, down from 63% the previous month. 31% believe business conditions will worsen, an increase from 22.2% in April. • 10.3% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, down from 29.6% in April. 65.5% believe demand will “remain the same” during the same four-month time period, an increase from 55.6% the previous month. 24.1% believe demand will decline, up from 14.8% in April. • 13.8% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, down from 22.2% in April. 86.2% of executives indicate they expect the “same” access to capital to fund business, an increase from 77.8% last month. None expect “less” access to capital, unchanged from the previous month. • When asked, 48.3% of the executives report they expect to hire more employees over the next four months, up from 40.7% in April. 44.8% expect no change in headcount over the next four months, a decrease from 59.3% last month. 6.9% expect to hire fewer employees, up from none in April. • 3.5% of the leadership evaluate the current U.S. economy as “excellent,” a decrease from 14.8% the previous month. 79.3% of the leadership evaluate the current U.S. economy as “fair,” up from 74.1% in April. 17.2% evaluate it as “poor,” an increase from 11.1% last month. • 3.5% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, a decrease from 7.4% in April. 27.6% indicate they believe the U.S. economy will “stay the same” over the next six months, a decrease from 51.9% last month. 69% believe economic conditions in the U.S. will worsen over the next six months, an increase from 40.7% the previous month. • In May 34.5% of respondents indicate they believe their company will increase spending on business development activities during the next six months, up from 29.6% the previous month. 65.5% believe there will be “no change” in business development spending, down from 66.7% in April. None believe there will be a decrease in spending, down from 3.7% last month. May 2021 MCI-EFI Survey Comments from Industry Executive Leadership: Independent, Small Ticket “Inflation, inflation, inflation!” James D. Jenks, CEO, Global Finance and Leasing Services, LLC Bank, Middle Ticket “Supply chain issues continue to have an impact on lease commencements with dates getting pushed with delivery delays. We are seeing an increase in renewals and over-term rentals.” Michael Romanowski, President, Farm Credit Leasing
Equipment Leasing and Finance Association’s survey of economic activity: Monthly Leasing and Finance Index
April new business volume up 7 percent Year-over-Year, relatively unchanged month-to-month, up nearly 6 percent Year-to-Date The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross-section of the $900 billion equipment finance sector, showed their overall new business volume for April was $10.5 billion, up 7 percent year-over-year from new business volume in April 2021. Volume was relatively unchanged from $10.6 billion in March. Year-to-date, cumulative new business volume was up nearly 6 percent compared to 2021. Receivables over 30 days were 2.1 percent, up from 1.5 percent the previous month and up from 1.8 percent in the same period in 2021. Charge-offs were 0.05 percent, down from 0.10 percent the previous month and down from 0.30 percent in the year-earlier period. Credit approvals totaled 77.4 percent, down from 78.3 percent in March. The total headcount for equipment finance companies was down 1.0 percent year-over-year. Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in May is 49.6, a decrease from 56.1 in April. ELFA President and CEO Ralph Petta said, “New business volume for a subset of the ELFA membership shows stable growth in April amidst a somewhat slowing economy and rising interest rate environment. Anecdotal information from a number of ELFA member organizations indicates that equipment deliveries continue to be a problem as supply chain disruptions continue. Soaring energy prices and inflation are headwinds confronting the industry as we move into the summer months.” Eric Bunnell, CLFP, President, Arvest Equipment Finance, said, “The recent results from the MLFI-25 mirror what we are seeing every day. Volume continues to be steady even with rising interest rates. The portfolio is performing well, with below-average delinquency rates, but we continue to monitor this closely. We continue to be optimistic for the rest of 2022, especially if the supply chain continues to improve.”
Could the Rental business be an opportunity?
Equipment dealers work in a complex environment. The first topic which encouraged me to get involved with the industry relates to rental activities. The second was the dealer management’s ability to juggle the sales silos to produce a profit. As my industry experience grew it became easier to recognize the dealers that were above average. The above-average dealers were able to recognize problems before they become critical. Whether the problems were internal or brought about by external issues similar to what we are encountering now, they would take steps to find solutions to mitigate the problem as well as educate management on why the problems occurred and what steps will be taken to reduce any risk to the company. In the end, the entire management team learned a lesson they will put to effective use at some time during their career. The method described above was a standard operating procedure. Many dealers would have similar problems with employees who have run into the problem in the past. Today, however, we find ourselves without much experience with the economy we find ourselves in. Nor do we have employees on staff with the experience and knowledge to help mitigate the problem. So, to correct today’s problems management must find “current” ways to lead their company to the other side of this mess. Would I want to dive into this process to find solutions to keep my company solvent and operating at a level to both retain and attract new customers? If I am the company leader, I have no choice but to dive in to prepare a plan satisfactory to our bank, management team, OEMs, and customer base. But after considering my choices I would reverse the action steps and put customer needs first. But it sure would be nice to have another leader you respect to work through the issues with. And a few more, if available, could also consult on your game plan giving you a comfort level that will provide options to deal with inflation, interest rates, company costs to operate, parts and equipment inventories while at the same time informing employees what you need from them. Since our major goal is to keep customers happy, you should also invite a few to take part in your planning process. I also spend a lot of time in the rental and construction equipment business. The construction folks are going through the same issues as the lift truck dealers. Rental companies are also in the same boat but at least have rental assets to rent to contractors lacking the equipment they need to complete jobs. What we see in construction is that contractors keeping units longer takes on the maintenance expense to make that happen. In fact, my opinion is that the rental industry is in for dramatic growth because the thrill of equipment ownership is not what it used to be. A recent article I read expects the rental industry to move from the current $60 billion market to $130 billion by 2027 or thereabouts. Does that tell you anything? Does it spell OPPORTUNITY! Contractors are driving this change in basic assumptions because the industry is requiring them to become more proficient, and as a result reducing fixed costs in terms of equipment loans or leases is on the table. With interest rates sure to increase and a lack of tech talent, many contractors are pushing off what others can do best, like maintain and store equipment better than the contractor can do or wants to do. Lift truck dealers are also in the rental business. And today expanding the rental business is where they should be expanding. Daily, weekly, and monthly rentals are where the money is today. Maintenance is a close second. Dealers need to maintain their rental fleets as well as assist customers by keeping their owned units ready to work when needed. Believe it or not, your customers have similar concerns as the contractors have. The TALK is all about productivity and how to get it. Part of becoming more efficient is by doing what you do best and farming out the rest to parties you are comfortable working with. In terms of getting your plan on the right track there is no better time to join a performance group to share ideas and solutions, and if possible, create joint ventures to try modern technology opportunities to make all of you more productive. I would also have conversations with customers to get their opinions about avoiding the fixed costs and leases for internal fleets. The lift truck dealer does a better job of maintaining the fleet which would make the customer more efficient and profitable. I suggest you monitor Equipment Watch on a monthly basis to track changes in values, rates, and age of equipment being used. You may also want to check out an article in Forbes (the 36th Annual Billionaires Issue) where they discuss a new public co and a 27-year-old Billionaire running a company called Bolt. Bolt promises an Amazon-style checkout for millions of independent online retailers. I am sure many of your customers may find this story interesting. About the Columnist: Garry Bartecki is a CPA MBA with GB Financial Services LLC and a Wholesaler columnist since August 1993. E-mail editorial@mhwmag.com to contact Garry.
Community Impact Project lends assistance to My Friend’s House in Vacaville, CA
A partnership between the American Rental Association (ARA) Foundation and The Toro Company Foundation is bringing together rental businesses across the country to make improvements in their communities. The Community Impact Project initiative recently selected a project assisting My Friend’s House Shelter in Vacaville, Calif. My Friend’s House Shelter exists to meet the needs of homeless and at-risk young adults, ages 18-24. The program provides a low-barrier shelter and provides case management, connections to mentors, and access to essential goods and services like food, clothing, and toiletries. The shelter aims to connect with and begin serving the residents before they become victims of drugs, street gangs, incarceration, or homelessness. The Community Impact Project initiative involves both the ARA Foundation and The Toro Company Foundation with the dual purpose of community service and improvement as well as raising public awareness and demonstrating the advantages of equipment and event rental. More than 15 volunteers from area rental businesses and residents volunteered time and equipment to complete the two-day project on May 11 & 12. Work included converting the existing garage to an office space to accommodate more residents, yard beautification, and concrete repairs to make the property ADA compliant. Companies supporting the project include: Aaction Rents A Tool Shed Interstate 80 Forklift Expo Party Rentals Celebrations! Party Rentals and Tents NACH Marketing This is the third project completed in 2022 and the sixth in a series of 10 Community Impact Projects overall. Previous projects were organized in Cleveland, Ohio, Denver, Colo., St. Paul, Minn., San Antonio, Texas, and Safety Harbor, Fla. Future projects are slated for the remainder of 2022 including locations in Pennsylvania and New York. Each project is made possible through a $20,000 donation from the ARA Foundation and The Toro Company Foundation. This contribution provides the nonprofit organization the funds to purchase materials required to complete the project with any remaining funds going toward long-term project maintenance.
Lift-O-Flex
Sunbelt Rentals expands fleet with 700 Ford F-150 Lighting trucks
The purchase of the trucks will contribute to the goal Sunbelt Rentals set to reduce greenhouse gas (GHG) emission intensity by 35 percent by 2030 Sunbelt Rentals is expanding its electric on-road fleet with an order of 700 Ford F-150 Lightning trucks. The purchase of the trucks will contribute to the goal Sunbelt Rentals set to reduce greenhouse gas (GHG) emission intensity by 35 percent by 2030. “This investment highlights our strong commitment to reducing our GHG emissions through the adoption of new on-road fleet technology,” said Al Halvorsen, vice president of ESG at Sunbelt Rentals. “Starting the conversion of our truck fleet to electric alternatives, like the Ford Lightning, is critical to our ability to reach our ambitious GHG reduction goals and still continue to serve our customers with availability, reliability, and ease.” Sunbelt Rentals will also purchase and install Level 2 wall-mount chargers at employees’ homes for more efficient charging. With a fully charged battery and 1,000 pounds of payload, the Ford Lightning is expected to cover 230 miles between charging. “The demand in the market already exceeds supply for the next few years for these electric vehicles, so we are incredibly excited to be receiving the first shipment of these groundbreaking trucks this summer,” said Eric Jahnsen, director of transportation management at Sunbelt Rentals. “This initiative aligns with the commitment we make to our customers and team members through The Power of Sunbelt — prioritizing continuous innovation among the key values of doing business.”