Herc Holdings Inc (HRI) 2023 Q3 法說會逐字稿

Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to remind everyone -- I would like to welcome everyone to the Herc Holdings, Inc. Third Quarter 2023 Earnings Call. Today's conference is being recorded. (Operator Instructions) At this time, I would like to turn the conference over to Leslie Hunziker, Senior Vice President, Investor Relations. Please go ahead.

早安.我叫奧德拉，今天我將擔任你們的會議操作員。此時，我想提醒大家—歡迎大家參加 Herc Holdings, Inc. 2023 年第三季財報電話會議。今天的會議正在錄製中。 （操作員指示） 現在，我想將會議交給投資者關係資深副總裁 Leslie Hunziker。請繼續。

Thank you, operator, and good morning, everyone. Welcome to Herc Rentals Third Quarter 2023 Earnings Call and Webcast. Earlier today, our press release and presentation slides were furnished and our 10-Q was filed with the SEC. All are posted on the events page of our IR website at ir.hercrentals.com.

謝謝接線員，大家早安。歡迎參加 Herc Rentals 2023 年第三季財報電話會議和網路廣播。今天早些時候，我們已提供新聞稿和簡報幻燈片，並向 SEC 提交了 10-Q 報告。所有內容均發佈在我們 IR 網站 ir.hercrentals.com 的活動頁面上。

Today, we're reviewing our third quarter 2023 results with comments on operations and our financials, including a view of the industry and our strategic outlook. The prepared remarks will be followed by an open Q&A. Now let's move to our safe harbor and GAAP reconciliations on Slide 3. Today's call will include forward-looking statements. These statements are based on the environment as we see it today and therefore, involve risks and uncertainties.

今天，我們正在回顧 2023 年第三季的業績，並對營運和財務狀況進行評論，包括對產業的看法和我們的策略前景。準備好的發言之後將進行公開問答。現在讓我們轉向投影片 3 上的安全港和 GAAP 調整表。今天的電話會議將包括前瞻性陳述。這些陳述是基於我們今天所看到的環境，因此涉及風險和不確定性。

I would caution you that our actual results could differ materially from the forward-looking statements made on this call. You should also refer to the Risk Factors section of our annual report on Form 10-K for the year ended December 31, 2022, and our quarterly report on Form 10-Q for the period ended September 30, 2023. In addition to the financial results presented on a GAAP basis, we will be discussing non-GAAP information that we believe is useful in evaluating the company's operating performance.

我想提醒您，我們的實際結果可能與本次電話會議中所做的前瞻性陳述有重大差異。您還應該參閱我們截至 2022 年 12 月 31 日止年度的 10-K 表格年度報告中的「風險因素」部分，以及截至 2023 年 9 月 30 日止期間的 10-Q 表格季度報告。在基於公認在會計原則（GAAP）基礎上呈現的結果之後，我們將討論我們認為有助於評估公司經營績效的非公認會計原則（non-GAAP）資訊。

Reconciliations for these non-GAAP measures to the closest GAAP equivalent can be found in the conference call materials. A replay of this call can be accessed via dial-in or through the webcast on our website. Replay instructions were included in our earnings release this morning.

這些非 GAAP 指標與最接近的 GAAP 同等指標的對帳可以在電話會議資料中找到。您可以透過撥入或透過我們網站上的網路廣播來觀看本次通話的重播。今天早上我們發布的財報中包含了重播說明。

We have not given permission for any other recording of this call and do not approve or sanction any transcribing of the call.

我們尚未允許對本次通話進行任何其他錄音，也不批准或批准對本次通話進行任何轉錄。

This morning, I'm joined by Larry Silber, President and Chief Executive Officer; Aaron Birnbaum, Senior Vice President and Chief Operating Officer; and Mark Humphrey, Senior Vice President and Chief Financial Officer. I'll now turn the call over to Larry.

今天早上，總裁兼執行長 Larry Silber 也加入了我的行列。 Aaron Birnbaum，資深副總裁兼營運長；馬克‧漢弗萊 (Mark Humphrey)，資深副總裁兼財務長。我現在將電話轉給拉里。

Thank you, Leslie, and good morning, everyone. Please turn to Slide #4. Our third quarter results were driven by our strong business base, improved operating leverage and continued M&A initiatives. Total revenue and adjusted EBITDA were a third quarter record, driven by a 6.9% increase in rental rate and above-market volume growth.

謝謝你，萊斯利，大家早安。請翻到投影片 #4。我們第三季的業績得益於我們強大的業務基礎、改善的營運槓桿和持續的併購措施。在租金上漲 6.9% 和高於市場的銷售成長的推動下，總收入和調整後 EBITDA 創下第三季紀錄。

Additionally, we ramped up fleet dispositions in the quarter to adjust to higher OEM shipments in the first half of the year and to take advantage of the healthy used equipment market. Used fleet sales carry a lower margin than rental revenue -- but if we exclude fleet sales from the equation, rental EBITDA or REBITDA, as we call it, generated a significant margin and flow-through improvement in the quarter.

此外，我們在本季度增加了機隊配置，以適應上半年 OEM 出貨量的增加，並利用健康的二手設備市場。二手車隊銷售的利潤率低於租賃收入，但如果我們將車隊銷售排除在等式之外，租賃 EBITDA 或 REBITDA（我們稱之為）將在本季度產生顯著的利潤率和流量改善。

Of course, as expected, and as noted on the slide, EBITDA margin in the quarter was impacted by the sale of nearly 3x more fleet at OEC and continued disruptions from labor strikes in the studio entertainment industry. In the third quarter, our capital allocation strategy focused on profitable growth investments, supported an incremental increase in ROIC compared with last year.

當然，正如預期的那樣，正如幻燈片中所指出的，本季的 EBITDA 利潤率受到 OEC 機隊銷量增加近 3 倍以及工作室娛樂行業勞工罷工持續造成的影響。第三季度，我們的資本配置策略著重於獲利成長投資，支持ROIC較去年逐步成長。

On Slide #5, we're working in a favorable operating environment as the equipment rental market continues to benefit from strong demand across a variety of end markets and geographies. And we continue to outpace market growth as a result of our premium assets, national footprint, broad-based capabilities and expert services.

在幻燈片 #5 中，我們正在一個有利的營運環境中工作，因為設備租賃市場繼續受益於各個終端市場和地區的強勁需求。憑藉我們的優質資產、全國足跡、廣泛的能力和專家服務，我們繼續超越市場成長。

Our third quarter rental revenue grew another 8% on top of the 35% growth last year. Excluding Studio Entertainment, rental revenues increased 13% over the prior year quarter. The studio shutdowns continued into the fall as the actors guild joined the screen writers on strike, making the first time in 63 years that the Hollywood writers and actors were striking at the same time. While the writers finally resolved their dispute, the actors remain on strike, keeping most productions idle. Total revenue got a boost in the latest quarter as we significantly increased sales of used fleet.

我們第三季的租金收入在去年 35% 的基礎上又成長了 8%。不包括工作室娛樂，租賃收入比去年同期成長 13%。工作室關閉一直持續到秋季，演員工會與編劇一起罷工，這是 63 年來好萊塢編劇和演員首次同時罷工。雖然編劇們最終解決了他們的爭端，但演員們仍在罷工，導致大多數作品閒置。由於我們顯著增加了二手車隊的銷量，最近一個季度的總收入有所增加。

The supply chain's recovery in certain equipment categories allowed us to begin addressing the pent-up rotations from the last 2 years. We headed into the fourth quarter with our fleet better matched to demand after successfully managing through a wave of equipment deliveries in the first half of the year. If you turn to Slide #6, in addition to leveraging our scale as a market leader, the successful execution of our growth strategies also contributed to our outsized performance relative to the overall industry.

某些設備類別供應鏈的復甦使我們能夠開始解決過去兩年被壓抑的輪調問題。在成功應對上半年的一波設備交付後，我們進入第四季度時，我們的機隊更好地滿足了需求。如果你看投影片#6，除了利用我們身為市場領導者的規模之外，我們成長策略的成功執行也促成了我們相對於整個產業的超額表現。

We are increasing revenue in our core categories through fleet investments as well as acquisitions and new greenfield facilities that support branch network optimization. Revenue from our high-margin ProSolutions specialty business grew double digits again in third quarter, incrementally benefiting from cross-selling synergies customer wins and expanding fleet and new products like (inaudible).

我們透過機隊投資以及收購和支持分公司網路優化的新綠地設施來增加核心類別的收入。我們的高利潤 ProSolutions 專業業務的收入在第三季度再次實現兩位數增長，逐漸受益於交叉銷售協同效應、贏得客戶以及擴大機隊和新產品（聽不清楚）。

And our innovative customer-facing digital capability called ProControl, NextGen, continues as a catalyst to new project wins especially at the national account level. As always, we're committed to responsible operating practices built on a strong cultural foundation, a safety-first protocol and a pledge to continue to work hard to do more for our employees, customers and suppliers.

我們面向客戶的創新數位功能 ProControl、NextGen 將繼續成為新專案獲勝的催化劑，尤其是在國民帳戶層面。一如既往，我們致力於在強大的文化基礎、安全第一的協議以及繼續努力為我們的員工、客戶和供應商做更多事情的承諾的基礎上採取負責任的運營實踐。

In the third quarter, we were a recipient of the 2023 HIRE vets Medallion award that recognizes employers to successfully recruit, hire and retained veterans. We were also named among the best and brightest companies to work for by the National Association for Business Resources. We're honored to be recognized for these awards as they stand as a testament to our unwavering dedication to our team members and the importance we place on having a best-in-class culture.

第三季度，我們獲得了 2023 年 HIRE 退伍軍人獎章獎，該獎項旨在表彰成功招募、聘用和留住退伍軍人的雇主。我們也被美國商業資源協會評為最優秀、最聰明的公司之一。我們很榮幸獲得這些獎項，因為它們證明了我們對團隊成員堅定不移的奉獻精神以及我們對擁有一流文化的重視。

Finally, between fleet investments strategic M&A, dividends and opportunistic share repurchases, we are strategically allocating capital to drive long-term growth and higher returns. Now before I turn it over to Aaron, let's move on to Slide #7, where I'll give you some background on our plans to explore strategic alternatives for our Studio Entertainment business, which we announced in the press release. Let me start by clarifying that our studio management and lighting and grip offering branded in the TV and film industry as Cinelease.

最後，在機隊投資策略併購、股息和機會性股票回購之間，我們正在策略性地分配資本，以推動長期成長和更高的回報。現在，在我將其交給亞倫之前，讓我們繼續看第7 張幻燈片，我將在其中向您介紹我們計劃探索工作室娛樂業務戰略替代方案的一些背景信息，我們在新聞稿中宣布了這一計劃。首先我要澄清一下，我們的攝影棚管理以及燈光和握把產品在電視和電影產業中被稱為 Cinelease。

In January 2012, we acquired Cinelease to expand our product offering and our footprint in another fast-growing specialty rental market. Cinelease is one of the largest lighting and grip rental companies in the United States with a scale studio platform. Over the past few years, the industry for renting, lighting and grip equipment to studios has evolved as investment firms began purchasing sound stages and physical studios as attractive ways to diversify their real estate portfolios.

2012 年 1 月，我們收購了 Cinelease，以擴大我們的產品供應以及我們在另一個快速成長的專業租賃市場的足跡。 Cinelease 是美國最大的燈光和手把租賃公司之一，擁有規模化的攝影棚平台。在過去的幾年裡，隨著投資公司開始購買攝影棚和實體工作室，將其作為實現房地產投資組合多元化的有吸引力的方式，向工作室租賃、燈光和握持設備的行業不斷發展。

These new owners want to offer a single point of contact for studios, studio management and light and grip equipment, thereby making it less of a rental model and more a permanent part of their in-house business. As a result, in order for us to continue to grow the Cinelease Studio management and lighting and grip business, Herc would need to add fixed cost studio real estate to our portfolio offering and that capital requirement will be a departure from our core rental business model.

這些新業主希望為工作室、工作室管理以及燈光和握把設備提供單一聯繫點，從而使其不再是租賃模式，而是成為其內部業務的永久組成部分。因此，為了讓我們繼續發展 Cinelease 工作室管理以及照明和握把業務，Herc 需要將固定成本工作室房地產添加到我們的投資組合中，而資本要求將背離我們的核心租賃業務模式。

So at the beginning of the year, we began discussing strategic options facilities that will enable it to continue to maximize its potential either with Herc or on its own. We determined that exploring external opportunities was prudent, and so that process has begun. As you can see on this slide, our Herc Entertainment Services business will continue to rent our rolling stock equipment to both on-location studios, off-location productions for TV and film and live entertainment venues.

因此，在今年年初，我們開始討論戰略選擇設施，使其能夠繼續與 Herc 合作或單獨發揮最大潛力。我們認為探索外部機會是謹慎的做法，因此這個過程已經開始。正如您在這張幻燈片中看到的，我們的 Herc 娛樂服務業務將繼續向現場工作室、電視和電影的異地製作以及現場娛樂場所出租我們的機車車輛設備。

Mark will share with you our financial performance year-to-date, excluding Cinelease, to give you some perspective on the very strong performance of the go-forward business base. Finally, I'll just say that Cinelease has been a great business for us. It's a high-margin, seasonally steady growing platform business with a loyal team of product and service experts. And it has opened doors for Herc Entertainment Services, to continue to flourish in this robust and exciting end market.

馬克將與您分享我們今年迄今的財務業績（不包括 Cinelease），讓您對未來業務基礎的強勁業績有一些看法。最後，我只想說 Cinelease 對我們來說是一項偉大的業務。這是一個高利潤、季節性穩定成長的平台業務，擁有一支忠誠的產品和服務專家團隊。它為 Herc Entertainment Services 打開了大門，使其能夠在這個強勁且令人興奮的終端市場中繼續蓬勃發展。

We are confident that the strategic actions we are announcing today will help ensure that Cinelease and the incredibly strong and dedicated group of colleagues that comprise it are on the best possible trajectory moving forward, and that hurts resources and focus remain on its core strategies for profitable long-term growth. With that, I'll turn it over to Aaron to share the high-level operational drivers in the third quarter. Aaron?

我們相信，我們今天宣布的策略行動將有助於確保Cinelease 以及組成該團隊的極其強大和敬業的同事團隊走在盡可能最佳的發展軌道上，而這會損害資源，並將重點繼續放在其獲利的核心策略上。長期成長。接下來，我將把它交給 Aaron，讓他分享第三季的高層營運驅動因素。亞倫？

Thanks, Larry, and good morning, everyone. The solid performance of our operations and field support teams, combined with steady demand across our end markets continue to provide a favorable environment for us. Thanks to the hard work of Team Herc, we have demonstrated continued progress in our journey to build scale and market leadership through flexibility, efficiency, strategic network and a customer-first mindset.

謝謝拉里，大家早安。我們的營運和現場支援團隊的穩健表現，加上終端市場的穩定需求，繼續為我們提供有利的環境。感謝 Herc 團隊的辛勤工作，我們在透過靈活性、效率、策略網絡和客戶至上的理念打造規模和市場領導地位的過程中不斷取得進展。

Turning to Slide 9. Our day starts with safety, which is at the core of everything we do. As you know, our major internal safety program focuses on perfect days. That is days with no OSHA recordable incidents, no at fault motor vehicle accidents and no DOT violations. We strive for 100% perfect days throughout the organization. In the third quarter, on a branch-by-branch measure, all our branch operations achieved at least 97% of days as perfect.

轉向幻燈片 9。我們的一天從安全開始，這是我們所做一切的核心。如您所知，我們的主要內部安全計劃側重於完美的日子。也就是說，沒有 OSHA 可記錄事故、沒有過失機動車輛事故以及沒有 DOT 違規行為。我們努力在整個組織內實現 100% 完美的日子。第三季度，以分行衡量，我們所有分行的營運完美天數達到了至少 97%。

Equally notable, our total recordable incident rate remains better than the industry benchmark of 1.0, reflecting our high standards and commitment to the safety of our people and customers. On Slide 10, let me shift to a progress update on our growth strategies. One of the key initiatives of our urban market growth strategy is expansion through greenfield locations and acquisitions.

同樣值得注意的是，我們的總可記錄事故率仍然優於 1.0 的行業基準，體現了我們的高標準以及對員工和客戶安全的承諾。在投影片 10 上，讓我介紹我們的成長策略的最新進展。我們城市市場成長策略的關鍵舉措之一是透過新建地點和收購進行擴張。

In the third quarter, we added 8 locations to our network, 4 greenfield locations and 4 locations from 2 new acquisitions. As you know, we focus on acquisition opportunities in high-growth markets that complement our current branch network and fit our strategic, financial and cultural filters. Of the acquisitions in the quarter, both were general rental companies, 1 was in Southern California, which includes the largest metropolitan markets in the U.S. and the other was Houston, a top 10 market.

第三季度，我們在網路中增加了 8 個網點、4 個新建分店和 2 個新收購的 4 個網點。如您所知，我們專注於高成長市場中的收購機會，這些機會補充我們當前的分支機構網絡並適合我們的策略、財務和文化過濾器。在本季的收購中，兩家公司都是綜合租賃公司，其中一家位於南加州，其中包括美國最大的大都會市場，另一家位於排名前十的市場休士頓。

These acquisitions support our strategic goal of increased density and resilient urban markets, Moreover, many of the mega projects being announced are in the geographies where we have focused our acquisitions in greenfield additions like Phoenix, Houston, Austin, Detroit and the Midwest. Through September 30, we've invested $332 million in net cash on acquisitions. Multiples remain steady as we pay a little less for general rental companies and a little more for specialty rental companies.

這些收購支持了我們增加密度和彈性城市市場的戰略目標。此外，許多正在宣布的大型項目都位於我們重點收購的綠地新增地區，例如鳳凰城、休士頓、奧斯汀、底特律和中西部。截至 9 月 30 日，我們已在收購方面投入了 3.32 億美元的淨現金。本益比保持穩定，因為我們為一般租賃公司支付的費用略低，為專業租賃公司支付的費用略高。

We targeted up to $500 million of poor acquisitions this year and have a strong pipeline of prospects. As always, we're being disciplined to ensure acquisitions meet our criteria and can add strategic and cultural value. Our acquisition process is now a core competency for us. We are quickly integrating these new businesses and are excited to welcome their teams to her while creating value for our people and our customers. On Slide 11, in addition to acquisitions, growing our core and specialty fleet through new equipment investments is a key strategy to expanding our share and keeping up with the increasing demand opportunities.

我們今年的目標是進行高達 5 億美元的不良收購，並且擁有強大的前景。一如既往，我們遵守紀律，確保收購符合我們的標準，並能夠增加策略和文化價值。現在，我們的收購流程已成為我們的核心競爭力。我們正在快速整合這些新業務，並很高興歡迎他們的團隊加入她，同時為我們的員工和客戶創造價值。在投影片 11 中，除了收購之外，透過新設備投資擴大我們的核心和專業機隊是擴大我們的份額並跟上不斷增長的需求機會的關鍵策略。

Let me start with demand drivers. Revenue growth from both local and national accounts remained strong in the first 3 quarters of 2023. Opportunities to -- across end markets continue to increase. We are seeing it throughout our network, and it's supported by third-party data. The exception, of course, is Cinelease where the duration of the labor strikes couldn't have been predicted.

讓我從需求驅動因素開始。 2023 年前 3 季度，本地和國民帳戶的收入成長依然強勁。跨終端市場的機會持續增加。我們在整個網路中都看到了它，並且它得到了第三方數據的支持。當然，Cinelease 是個例外，該公司的罷工持續時間無法預測。

This weighed on our performance masking the underlying strength of our core business this year. Studio Entertainment represented just 1% of our rental revenue in the third quarter compared with about 5% a year ago. While the only fleet truly dedicated to those types of projects, especially lighting and grip equipment, we also rent power generation, some HVAC equipment and material handling and Aerial equipment. In July, we started moving that fungible fleet from the studio operations to other local customers.

這對我們的業績造成了壓力，掩蓋了我們今年核心業務的潛在實力。 Studio Entertainment 第三季僅占我們租賃收入的 1%，而去年同期約為 5%。雖然我們是唯一真正致力於此類專案（尤其是照明和抓握設備）的機隊，但我們也租賃發電設備、一些暖通空調設備以及物料搬運和空中設備。七月，我們開始將可替代的車隊從工作室營運轉移到其他本地客戶。

Although the rider strike is over, we don't expect that to move the needle much in the fourth quarter since the actor strike is ongoing. Moving on to fleet investments. As we told you on our call in July, our goal for the third quarter was to absorb the unusual wave of fleet deliveries we received in the fourth quarter of 2022 and the first half of this year. I couldn't be more proud of what the team delivered -- by the end of September, we significantly closed the gap between fleet growth and revenue growth by capitalizing on seasonal volume and generating $124 million in sales of used fleet.

儘管騎手罷工已經結束，但我們預計第四季度不會有太大影響，因為演員罷工仍在繼續。繼續進行機隊投資。正如我們在 7 月的電話會議上告訴您的那樣，我們第三季度的目標是吸收 2022 年第四季和今年上半年我們收到的不尋常的機隊交付浪潮。我對團隊交付的成果感到無比自豪——到 9 月底，我們利用季節性銷售並實現了 1.24 億美元的二手機隊銷售額，顯著縮小了機隊增長與收入增長之間的差距。

The team did an expanding job of rapidly adjusting to the supply chain recovery. On Slide 12, you can see how fleet expenditures and disposals have been trending. Our fleet expenditures at OEC totaled $274 million in the third quarter, about 12% lower compared to last year. Most of that had to do with the fact that supply is still extremely tight for the highest demand equipment classes like aerial and reach forklifts, for example, which caused our suppliers to push out some of those 2023 orders into 2024. On the flip side, we disposed of $309 million fleet at OEC.

團隊做了一項擴大工作，迅速調整以適應供應鏈的復甦。在投影片 12 上，您可以看到車隊支出和處置的趨勢。第三季我們在 OEC 的機隊支出總計 2.74 億美元，比去年減少約 12%。其中大部分與需求最高的設備類別（例如高空堆高機和前移式堆高機）的供應仍然極其緊張有關，這導致我們的供應商將 2023 年的部分訂單推遲到 2024 年。我們在OEC 出售了價值3.09億美元的機隊。

From an OEC standpoint, that's almost 3x more than in last year's similar period. The substantial amount of dispositions in a single quarter had us utilizing the auction channels more than we typically would, and that's reflected in the proceeds of sales margin. At the same time, the amount of fleet at OEC that was sold to retail and wholesale customers was a quarterly record for the company. So we are continuing to gain traction on our capabilities in those channels.

從 OEC 的角度來看，這幾乎是去年同期的 3 倍。單一季度的大量處置使我們比平常更多地利用拍賣管道，這反映在銷售利潤的收益中。同時，OEC 出售給零售和批發客戶的車隊數量創下了該公司的季度記錄。因此，我們將繼續增強我們在這些管道中的能力。

Where we originally planned for fleet rotation of about $600 million at OEC for this year, -- we will probably sell about $800 million by year-end based on the amount of new fleet deliveries we received year-to-date and the typical seasonal depleting will be able to do in the fourth quarter. From our 2024 fleet planning discussions with vendors, we believe deliveries will return to our more normal seasonal schedule now that supply chain inventories and capabilities are improving. But I will reiterate that the tightest category classes for supply continue to be those with the highest customer demand.

我們最初計劃今年 OEC 的機隊輪換金額約為 6 億美元，根據我們今年迄今為止收到的新機隊交付量和典型的季節性消耗量，到年底我們可能會出售約 8 億美元第四季度就能做到。從我們與供應商的 2024 年機隊規劃討論來看，我們相信，由於供應鏈庫存和能力正在改善，交付將恢復到更正常的季節性時間表。但我要重申，供應最緊張的類別仍然是客戶需求最高的類別。

So while availability in many cat classes has improved, it's clear where you're going to have another challenging year getting all the gear we'd like for certain categories. Fleet planning considerations for 2024 CapEx include incremental demand for mega projects, infrastructure and manufacturing reshoring as well as local market growth and replacement fleet needs.

因此，雖然許多貓類別的可用性有所改善，但很明顯，您將在另一個具有挑戰性的一年中獲得我們想要的某些類別的所有裝備。 2024 年資本支出的機隊規劃考量包括大型專案、基礎設施和製造業回流的增量需求，以及當地市場的成長和更換機隊的需求。

In addition to building a best-in-class fleet, you can see on Slide 13 that we have a diverse, well-balanced customer mix made up of large national accounts and local contractors operating in North America with a wide range of equipment needs across a variety of end markets. About 36% of our revenue is tied to nonresidential construction with 26% related to our industrial customers and 15% coming from infrastructure and municipal projects.

除了建立一流的車隊外，您可以在幻燈片13 中看到，我們擁有多元化、均衡的客戶組合，其中包括大型國民帳戶和在北美運營的當地承包商，他們在各個領域都有廣泛的設備需求。各種終端市場。我們約 36% 的收入與非住宅建築相關，其中 26% 與工業客戶相關，15% 來自基礎設施和市政項目。

Local accounts, which represented 58% of rental revenue in the third quarter are growing due to Herc penetration through our acquisition and greenfield strategy as well as regional growth in infrastructure, education, payments and repair and local utilities. For national accounts, we are capitalizing on what we see as a booming large project pipeline with the federal funded mega projects, large infrastructure jobs and manufacturing facilities.

由於 Herc 透過我們的收購和綠地策略進行滲透，以及基礎設施、教育、支付和維修以及當地公用事業的區域成長，佔第三季租金收入 58% 的本地帳戶正在成長。對於國民帳戶，我們正在利用我們所看到的蓬勃發展的大型項目管道，其中包括聯邦資助的大型項目、大型基礎設施工作和製造設施。

These mega projects represent the beginning of a multiyear flow of dollars into the industrial infrastructure space. As 1 of the largest players in the rental industry, our fleet capacity, digital capabilities, on-site management expertise and broad location network sets us up to win substantially more than our fair share of the market's growth. I want to thank team for their commitment to operational excellence and safety. Their professionalism shows up in the execution of our services to our customers every single day. It's a valuable differentiator for Herc.

這些大型計畫代表著多年來資金流入工業基礎設施領域的開始。作為租賃行業最大的參與者之一，我們的車隊容量、數位能力、現場管理專業知識和廣泛的位置網絡使我們能夠贏得遠遠超過我們公平份額的市場成長。我要感謝團隊對卓越營運和安全的承諾。他們的專業體現在我們每天為客戶提供的服務中。這對 Herc 來說是一個有價值的差異化因素。

Now I'll pass the call on to Mark.

現在我將把電話轉給馬克。

Thanks, Aaron, and good morning, everyone. I'm starting on Slide 15 with a summary of our key metrics for the third quarter. Larry and Aaron touched on many of these line items, so I'm just going to provide some additional color. For rental revenue, about 2/3 of the growth was organic and 1/3 came from acquisitions. DOE and SG&A as a percent of rental revenue improved 250 basis points in the quarter, supporting improvements in adjusted REBITDA margin and flow-through of more than 76%. The adjusted REBITDA margin of 49.3% was a record, exceeding our previous peak margin by 200 basis points.

謝謝，亞倫，大家早安。我從投影片 15 開始，總結了第三季的關鍵指標。拉里（Larry）和亞倫（Aaron）談到了其中許多項目，因此我將提供一些額外的顏色。就租金收入而言，約 2/3 的成長來自有機成長，1/3 來自收購。 DOE 和 SG&A 佔租金收入的百分比在本季度提高了 250 個基點，支持調整後的 REBITDA 利潤率和流量的改善超過 76%。調整後的 REBITDA 利潤率為 49.3%，創歷史新高，比之前的峰值利潤率高出 200 個基點。

Additionally, net income grew 12% while diluted EPS grew 18% to $3.96 per share. Let's walk through some of the other performance drivers on Slide 16. Here, you can see the rental revenue and adjusted EBITDA walk year-over-year. In the revenue chart, rental rate was up 6.9%. Fleet on rent increased 11.5% and mix and lower re-rent revenue was unfavorable by 9.9% compared with the third quarter a year ago.

此外，淨利潤成長 12%，稀釋後每股收益成長 18%，達到每股 3.96 美元。讓我們在投影片 16 上了解一些其他績效驅動因素。在這裡，您可以看到租金收入和調整後的 EBITDA 逐年變化。在收入圖表中，租金上漲了6.9%。租金船隊成長 11.5%，混合和較低的再租賃收入較去年第三季下降 9.9%。

The decline in studio entertainment revenue is calculated in mix as is inflation, which together accounted for approximately 90% of the mix impact. Additionally, ancillary revenue was impacted by reduced re-rent revenue in the quarter, primarily reflecting better fleet availability, which positively impacts adjusted EBITDA and REBITDA margins. The catch-up in supply deliveries and the out of season mix of fleet received in the first half, combined with the drop-off in Studio Entertainment revenue resulted in dollar utilization of 42.1% in the third quarter versus 45.3% last year.

攝影棚娛樂收入的下降是按混合計算的，通貨膨脹也是如此，兩者合計約佔混合影響的 90%。此外，輔助收入受到本季再租賃收入減少的影響，主要反映了機隊可用性的改善，這對調整後的 EBITDA 和 REBITDA 利潤率產生了積極影響。上半年供應交付的趕上和機隊接收的淡季組合，再加上演播室娛樂收入的下降，導致第三季度的美元利用率為 42.1%，而去年為 45.3%。

As Aaron mentioned, we worked through the quarter to rightsize the fleet and feel good about where we are heading into the fourth quarter. Additionally, we saw sequential improvement in dollar utilization every month this quarter, following the seasonal demand trend.

正如亞倫所提到的，我們整個季度都在努力調整機隊規模，並對我們進入第四季的前景感到滿意。此外，隨著季節性需求趨勢，我們發現本季每個月的美元利用率都在連續改善。

Moving to the adjusted EBITDA waterfall chart on the right, profit benefited from higher rental revenue and significant leverage from lower operating expenses as a percent of revenue but the studio entertainment's top line weakness on its fixed cost base was a partial offset. Adjusted EBITDA margin was impacted by the higher sales of used equipment at OEC and the higher use of the Auction sales channel in the recent quarter.

轉向右側調整後的 EBITDA 瀑布圖，利潤受益於較高的租金收入和較低的營運費用佔收入百分比的顯著槓桿，但工作室娛樂公司固定成本基礎上的營收疲軟被部分抵消。調整後的 EBITDA 利潤率受到最近季度 OEC 二手設備銷售增加以及拍賣銷售通路使用率增加的影響。

On Slide 17, we've added a summary P&L to the deck that excludes Studio Entertainment in order to give you a better sense of how well the base business has performed in the recent quarter and year-to-date. From this table, you can see the strength of our core rental business when we exclude studio entertainment from both periods.

在投影片 17 上，我們在幻燈片中新增了不包含 Studio Entertainment 的損益表摘要，以便讓您更了解基礎業務在最近一個季度和年初至今的表現。從這張表中，您可以看到當我們將工作室娛樂排除在兩個時期之外時，我們的核心租賃業務的實力。

For example, rental revenue growth would have been approximately 500 basis points higher in the third quarter at 13.2% and adjusted EBITDA would have grown 26.2% at a margin of 46.5%, a 130 basis point improvement. Also, our already record level REBITDA margin was stronger by another 170 basis points at 51%, with flow-through at 73% a more than 2,000 basis point increase over the prior year.

例如，第三季租金收入成長約 500 個基點，達到 13.2%，調整後的 EBITDA 將成長 26.2%，利潤率為 46.5%，提高了 130 個基點。此外，我們已經創紀錄的 REBITDA 利潤率又提高了 170 個基點，達到 51%，流通率為 73%，比前一年增加了 2,000 個基點以上。

The base business results reflect strong demand, favorable pricing, benefits from operating leverage and record margin performance. A full reconciliation of performance metrics, excluding Studio Entertainment, can be found on Slide 28 and 29 in the appendix of our presentation.

基本業務業績反映了強勁的需求、有利的定價、營運槓桿帶來的好處以及創紀錄的利潤率表現。性能指標（不包括演播室娛樂）的完整核對可在我們簡報附錄的幻燈片 28 和 29 中找到。

Shifting to capital management on Slide 18, you can see we have no near-term maturities and ample liquidity to fund our growth goals as we continue to allocate capital to invest in our business and drive fleet growth into this cycle. We remain confident in our business model and are committed to increasing shareholder value. In the third quarter, we declared a quarterly dividend of $0.6325, which represents $2.53 per share for the year.

轉向幻燈片18 上的資本管理，您可以看到我們沒有短期到期日和充足的流動性來為我們的成長目標提供資金，因為我們繼續分配資本投資於我們的業務並推動機隊成長進入這個週期。我們對我們的商業模式仍然充滿信心，並致力於增加股東價值。第三季度，我們宣布季度股息為 0.6325 美元，相當於全年每股 2.53 美元。

Net capital expenditures exceeded cash flow from operations in the 9 months ended September 30, with cash outflows of $196 million before acquisitions. Our current leverage ratio at 2.5x is well within our 2x to 3x target range and in line with our expectations as we invest in growth.

截至 9 月 30 日的 9 個月內，淨資本支出超過營運現金流，收購前現金流出 1.96 億美元。我們目前的槓桿率為 2.5 倍，完全在我們 2 倍至 3 倍的目標範圍內，並且符合我們投資於成長的預期。

Moving on to Slide 19, you can see the continued strength in our primary end markets. In the upper left, the ARA estimate for 2023 North American rental industry revenue is growing to $76 billion based on ARA's recently revised estimates and is forecasted to grow at a 4% CAGR and over the next 3 years due to its diversified end markets.

繼續看投影片 19，您可以看到我們的主要終端市場持續強勁。在左上方，根據 ARA 最近修訂的估計，ARA 對 2023 年北美租賃行業收入的估計將增長至 760 億美元，並且由於終端市場多元化，預計未來 3 年將以 4% 的複合年增長率增長。

On the bottom left is the Architectural Billing Index, which reported below 50 in September, it's not unusual to see the billing index along with its counterparts, inquiries and design contracts be choppy in the back half of the year. We saw a similar trend in 2022. ABI is just one indicator of future construction activity. We will continue to monitor it in conjunction with other data points over the next 12 months.

左下角是建築帳單指數，9 月報告低於 50，下半年帳單指數及其同業、詢價和設計合約出現波動並不罕見。我們在 2022 年看到了類似的趨勢。ABI 只是未來建築活動的指標之一。我們將在未來 12 個月內繼續結合其他數據點進行監控。

Two of our key end markets are industrial and nonresidential construction both continue to show strength for 2023. Combined, these end markets reflect about 2/3 of our customer base and both are likely to outperform other consumer-driven end markets due to new mega project construction as the reshoring of U.S. manufacturing capacity continues to gather steam.

我們的兩個主要終端市場是工業和非住宅建築，到2023 年，這兩個市場都將繼續表現強勁。這些終端市場加起來約占我們客戶群的2/3，並且由於新的大型項目，這兩個市場的表現都可能優於其他消費者驅動的終端市場隨著美國製造業產能回流的勢頭持續增強。

Taking a look at the industrial spending forecast on the top right, Industrial Info Resources is projecting $409 billion of spend in 2023, the highest level on record and a 16% increase over 2022. In the lower right quadrant is Dodge's forecast for nonresidential construction starts, you can see in 2023, Dodge estimated to be another $429 billion on top of last year's peak $445 billion.

看看右上角的工業支出預測，工業資訊資源公司預計 2023 年支出為 4090 億美元，這是有史以​​來的最高水平，比 2022 年增長 16%。右下象限是道奇對非住宅建築開工的預測，你可以看到，到2023年，道奇預計在去年高峰4,450億美元的基礎上再增加4,290億美元。

Of course, these are also just starts of new projects of multiyear construction builds that will continue into '24, '25 and beyond. The dotted line on these charts reflects growth over pre-pandemic levels. You can see that last year and the next 3 years are projected to be the strongest periods of activity that this industry has ever seen.

當然，這些也只是多年建設新項目的開始，這些項目將持續到 24 年、25 年及以後。這些圖表上的虛線反映了大流行前水準的成長。您可以看到，去年和未來 3 年預計將是該行業有史以來最活躍的時期。

Additionally, there's another $306 billion in nonresidential nonbuildings or infrastructure projects slated for 2023. That's a 20% increase over 2022. These projects are supported by federal funds approved in the infrastructure package, the CHIPS and Sciences Act and the Inflation Reduction Act. The current strength in mega projects and infrastructure activity is not particularly sensitive to short-term interest rates and clearly has a structural tailwind.

此外，預計2023 年還將有3,060 億美元的非住宅非建築或基礎設施項目。這比2022 年增長20%。這些項目得到了基礎設施一攬子計劃、《CHIPS 和科學法案》以及《通貨膨脹減少法案》中批准的聯邦資金的支持。目前大型專案和基礎設施活動的實力對短期利率並不特別敏感，並且顯然具有結構性推動力。

These large projects benefit rental companies of scale with larger, more diverse rental fleet and is one of the leading North American rental companies, Herc stands to benefit more favorably from this trend.

這些大型專案有利於擁有更大、更多樣化租賃車隊的規模租賃公司，作為北美領先的租賃公司之一，Herc 將從這一趨勢中獲得更有利的受益。

We expect to continue to outpace market growth at a rate greater than 2x. As we head into the last quarter of the year, we are fine-tuning our guidance for 2023. This is on Slide 20. We've narrowed our adjusted EBITDA forecast range to $1.45 billion to $1.5 billion, which represents growth of 18% to 22%. This is on top of 37% growth in 2022.

我們預計增速將持續超過市場成長 2 倍。隨著進入今年最後一個季度，我們正在微調2023 年的指引。這是投影片20 上的內容。我們已將調整後的EBITDA 預測範圍縮小至14.5 億美元至15 億美元，這意味著成長18%至 18%。22%。 2022 年成長 37%。

We assume the incremental benefits from opportunistic M&A this year would help offset the significant impact from Studio Entertainment and fewer weather events than originally projected. However, while the pipeline for M&A remains robust, the cadence of the closing activity is extending into Q4 and Q1 of 2024. Dollar utilization in the last quarter 2023 is expected to be slightly down sequentially from Q3 as the benefits of our realigned fleet are offset by the Studio Entertainment impact and the probability that we won't see a big weather event this year compared with incremental volume from Hurricane Ian in last year's fourth quarter.

我們認為今年機會主義併購帶來的增量收益將有助於抵消演播室娛樂和比最初預計更少的天氣事件的重大影響。然而，儘管併購管道依然強勁，但結束活動的節奏將延續到2024 年第四季和第一季。預計2023 年最後一季的美元利用率將比第三季略有下降，因為我們重新調整的機隊帶來的好處被抵消了受到工作室娛樂的影響，以及與去年第四季度颶風伊恩的增量相比，今年我們不會看到重大天氣事件的可能性。

And our target for full year 2023 REBITDA flow-through tightens to the mid-50s, which represents continued benefits from operating leverage year-over-year. We've also tightened our net fleet CapEx range to $1 billion to $1.1 billion to reflect the lower end of our original guidance, as noted last quarter.

我們將 2023 年全年 REBITDA 流動目標收緊至 50 多歲，這表明營運槓桿逐年持續受益。我們還將淨機隊資本支出範圍收緊至 10 億至 11 億美元，以反映我們上季度指出的原始指導的下限。

The revision is based on a roughly 33% increase in our original plan for used equipment sales at OEC and the fact that some of our planned 2023 growth CapEx was pushed into 2024 to account for OEM supply constraints in certain categories.

此次修訂基於我們原計劃將 OEC 二手設備銷售增長約 33%，以及我們計劃的 2023 年增長資本支出的一部分被推遲到 2024 年，以解決某些類別的 OEM 供應限制。

Interest expense was up 82% in the third quarter year-over-year, reflecting the accumulation of Fed rate increases in our M&A funding. Finally, we expect our leverage ratio to be at the midpoint of our 2x to 3x target range at year-end, we are experiencing all the trends consistent with an industry in an up cycle and intend to continue to address the needs of our customers as we execute on our growth strategy. With that, I'll turn the call back to Larry.

第三季利息支出年增 82%，反映出聯準會升息對我們併購資金的累積。最後，我們預計到年底我們的槓桿率將處於 2 倍至 3 倍目標範圍的中點，我們正在經歷與行業上升週期一致的所有趨勢，並打算繼續滿足客戶的需求我們執行我們的成長策略。說完，我會把電話轉回給拉里。

Thanks, Mark. Now please turn to Slide 21. Everything we do starts with our vision, mission and values and a purpose statement that focuses on equipping our customers and communities to build a brighter future. We do what's right, we're together, we take responsibility, we achieve results, and we prove ourselves every day.

謝謝，馬克。現在請翻到投影片 21。我們所做的一切都始於我們的願景、使命和價值觀以及旨在幫助我們的客戶和社區建立更光明的未來的宗旨聲明。我們做正確的事，我們在一起，我們承擔責任，我們取得成果，我們每天都證明自己。

Now before moving on to Q&A, I want to remind you that we'll be hosting our next Investor Day on November 2. The event will take place here in Bonita Springs, Florida and will be available via webcast. With market opportunities significantly growing for Herc and having already achieved nearly all of our 3-year targets that we set back in 2021, this will be an opportunity to set new guideposts for the future of our growth trajectory. I hope you'll be able to join us.

現在，在進行問答之前，我想提醒您，我們將於 11 月 2 日舉辦下一次投資者日。該活動將在佛羅裡達州博尼塔斯普林斯舉行，並將透過網路直播進行直播。隨著 Herc 的市場機會顯著成長，並且已經實現了我們在 2021 年設定的幾乎所有 3 年目標，這將是一個為我們未來成長軌跡設定新路標的機會。我希望你能夠加入我們。

With that, operator, we'll take our first question.

接線員，接下來我們將回答第一個問題。

(Operator Instructions) We'll take our first question from Rob Wertheimer with Melius Research.

（操作員說明）我們將回答 Melius Research 的 Rob Wertheimer 提出的第一個問題。

So my question is really on demand. And I think you're pretty clear on the big picture outlook. But I want to narrow it down into, I guess, this quarter and last, where you sort of saw rental revenue grow at a slower pace than the fleet. And I wanted to ask if that's because you didn't see the pockets of demand you thought you would have for the fleet that was coming in or whether it's largely an effect of the fact that you've got more fleet transition as you're selling more and bringing more in a seasonal patterns. So really, is it -- didn't quite up like you thought? Or is it just transitional cost?

所以我的問題確實是按需提出的。我認為您對大局前景非常清楚。但我想將範圍縮小到本季和上季，您會看到租金收入的成長速度慢於機隊的成長速度。我想問這是否是因為您沒有看到您認為對即將到來的機隊的需求，或者這是否在很大程度上是因為您有更多機隊轉換的事實的影響銷售更多並帶來更多季節性模式。真的嗎——並沒有像你想的那樣？或只是過渡成本？

Yes, Rob, demand landscape is still really good. And even as we look out over the next couple of quarters, it looks good. The fleet revenue balance and what we did in Q3 really was to kind of reset that balance because of the fleet, as I put in my remarks, they came in last year and then the first part of this year with the disjointment of the supply chain that got corrected. And so we wanted to correct our balance and that's what we did in Q3. But the demand outlook is still good.

是的，羅布，需求情勢仍然非常好。即使我們展望未來幾個季度，情況看起來也不錯。機隊收入平衡以及我們在第三季度所做的實際上是為了重置這種平衡，因為機隊，正如我在評論中所說，它們是去年出現的，然後是今年上半年，供應鏈脫節了已得到糾正。所以我們想要糾正我們的平衡，這就是我們在第三季所做的。但需求前景依然良好。

I think you're pretty on that excuse. So does that imply then that as you get to a more normal season or a more normal pattern of fleet coming in and fleet going out that rag of transitional drag goes away and you kind of revert or on some of the time.

我覺得你這個藉口很漂亮。那麼，這是否意味著，當你進入一個更正常的季節或更正常的車隊進出模式時，過渡阻力的碎片就會消失，你會在某些時候恢復或恢復。

Yes, precisely. And we'll continue to get the operating leverage of the business as that equation with fleet of revenue stays balanced. And that's how we'll plan for next year's fleet adds. And that's the visibility we see going forward for the next several quarters.

是的，正是如此。我們將繼續獲得業務的營運槓桿，因為與收入的等式保持平衡。這就是我們計劃明年機隊增加的方式。這就是我們預計未來幾季的前景。

We'll go next to Jerry Revich at Goldman Sachs.

接下來我們將採訪高盛的傑瑞·雷維奇 (Jerry Revich)。

I'm wondering if you could just talk about the pricing environment into October. It's nice to see a positive variance in pricing in the quarter, I think versus most expectations even with utilization softer. Would you attribute that to the interest rate environment? And any context that you can provide on how the leading edge is tracking in October, if you don't mind?

我想知道您是否可以談談十月的定價環境。很高興看到本季的定價出現積極變化，我認為這與大多數預期相比，即使利用率較低。您會將其歸因於利率環境嗎？如果您不介意的話，您可以提供有關 10 月份領先優勢追蹤情況的任何背景資訊嗎？

Yes. I mean I think the way I would answer that, Jerry, is one, I think that the industry has remained extremely disciplined throughout the first 3 quarters of this year. And then I think secondarily, right, it's also an extremely healthy environment. And so I think we've posted 7.2% through the first 9 months of the year. And I think that I would direct you as you sort of look into October and fourth quarter, that would be a mid-single-digit sort of pricing lift for fourth quarter.

是的。我的意思是，傑瑞，我認為我的回答是，我認為該行業在今年前三個季度仍然保持著極其嚴格的紀律。其次我想，對吧，這也是一個非常健康的環境。因此，我認為今年前 9 個月我們的成長率為 7.2%。我認為，當您研究 10 月和第四季度時，我會指導您，這將是第四季度中個位數的定價提升。

And Mark, maybe just to put a final point on that. I mean, normally, seasonally, pricing is up 50 basis points sequentially, October verses September? Are we on the pace with that normal Seasonality?

馬克，也許只是想提出最後一點。我的意思是，通常情況下，按季節計算，10 月與 9 月相比，價格會連續上漲 50 個基點？我們是否跟上正常季節性的步伐？

Yes. I would say that all seasonal trends are being followed.

是的。我想說的是，所有季節性趨勢都在遵循。

Okay, super. And then, Larry, in your prepared remarks you spoke to just the cadence of CapEx this year versus normal seasonality as we think about that cadence continuing into the early part of '24, is it fair to expect CapEx to be down year-over-year in that 15% to 20% range in the first half, just given the timing of the deliveries? Or any comments that you would make about the capital budget for '24, please?

好吧，超級。然後，拉里，在您準備好的演講中，您談到了今年資本支出的節奏與正常季節性的比較，因為我們認為這種節奏會持續到 24 年初，預計資本支出同比下降是否公平？僅考慮到交貨時間，上半年的成長率會在15% 至20% 的範圍內嗎？或者您對 24 年的資本預算有何評論？

Yes. Well, look, in total, we're still fine-tuning the capital plans for '24. I think we'll have a better look on November 2 for the next 3 years in terms of what our CapEx spend will look like and better be prepared to give you a better guidance and more guidance on that. But I think you'll see us revert to a normal seasonal inflow pattern as the manufacturers continue to improve.

是的。好吧，看，總的來說，我們仍在微調 24 年的資本計畫。我認為我們將在 11 月 2 日更好地了解未來 3 年的資本支出情況，並做好更好的準備，為您提供更好的指導和更多的指導。但我認為，隨著製造商不斷改善，您會看到我們恢復到正常的季節性流入模式。

And I would say we'll revert to that with the exception of the couple of categories that we mentioned. Look (inaudible) platform access related manufacturers are still struggling and not achieving their promise dates and their deliveries as we would like to see them. And as our requirements continue to grow in those areas. So we'll take that equipment when it becomes available. But outside of that, you'll see us revert to a more seasonal flow of material coming in to match our demand requirements.

我想說，除了我們提到的幾個類別之外，我們將回到這一點。看（聽不清楚）平台訪問相關製造商仍在苦苦掙扎，沒有實現我們希望看到的承諾日期和交付。隨著我們在這些領域的需求不斷增長。因此，當該設備可用時，我們將採用該設備。但除此之外，您會看到我們恢復更季節性的材料流入以滿足我們的需求要求。

We'll move next to Ken Newman at KeyBanc Capital Markets.

我們將接聽 KeyBanc Capital Markets 的 Ken Newman。

Maybe just to start with the demand outlook. Obviously, it seems like demand across both our national and local accounts still remains pretty strong here. But I'm curious if you could just -- maybe give a little bit more color from what you're seeing both on project visibility and maybe to tack on to Jerry's question on the pricing, if you've seen a big or a wider divergence in pricing between the local and national accounts.

也許只是從需求前景開始。顯然，我們的國家和地方帳戶的需求似乎仍然相當強勁。但我很好奇你是否可以——也許可以從你所看到的項目可見性方面提供更多的色彩，如果你見過一個大的或更廣泛的項目，也許可以補充一下傑裡關於定價的問題.地方帳戶和國民帳戶之間的定價差異。

The divergence, no, there's still a good appetite for equipment, whether you're in the local or the national landscape. The demand, as I said, is good. The mega project landscape, there's so many projects out there. And many are online, but most of them haven't come online yet, and we see a lot of them coming online over the next 3 quarters. But there's plenty of work out there. And as I mentioned, high demand for the fleets. so we're pretty positive on the entire local and the national project landscape.

分歧，不，無論您是在本地還是在全國範圍內，對設備仍然有很好的胃口。正如我所說，需求是好的。大型專案景觀，有如此多的專案。許多都已上線，但其中大多數尚未上線，我們看到其中許多將在未來 3 個季度上線。但那裡還有很多工作要做。正如我所提到的，對機隊的需求很高。所以我們對整個地方和國家計畫的前景非常樂觀。

Yes. Okay. And then for my follow-up here, just on Cinelease, I think it's interesting that you guys are looking to potentially divest that business. And I know it's early in the negotiations here, but any thought or color on how you think about just how tough environment could be for sale in the near term, if that's even possible, just with the funding rate environment?

是的。好的。然後，對於我在 Cinelease 上的後續行動，我認為你們正在尋求可能剝離該業務，這很有趣。我知道現在還處於談判的早期階段，但是對於您如何看待短期內出售的環境有多艱難（如果有可能的話），僅考慮融資利率環境，有什麼想法或看法嗎？

And also, just if I think about the prior guide, I think we try to take out all the impact from studio rental revenue and EBITDA from last year, last quarter. So maybe just a little bit more detail on what drove the negative surprise this quarter.

而且，只要我考慮一下之前的指南，我認為我們會嘗試消除去年上季工作室租賃收入和 EBITDA 的所有影響。因此，也許只是更詳細地說明本季出現負面意外的原因。

Yes. I'll take the first part of that, and then I'll let Mark address the financial side of that, to give you some more detail, Ken. Well, look, this Cinelease business is the premier business in the industry. It's a gold star business that is well recognized, well known for its capability and it's service excellence within the TV and film industry.

是的。我將討論第一部分，然後我將讓馬克解決財務方面的問題，以便為您提供更多細節，肯。嗯，你看，Cinelease 的業務是業界首屈一指的業務。這是一家在電視和電影行業中廣泛認可、以其能力和卓越服務而聞名的金星企業。

We -- while it is early in the process, and we just announced it last evening, we believe the demand for that business will be quite strong. There will be a large appetite for it amongst the real estate consolidators that are developing and continuing to grow in that industry. And we expect a very good and strong process for that business. Like I said, it is the premier business in the industry and something that we are very much feeling like it will be strong for us. Mark, do you want to...

我們——雖然現在還處於這個過程的早期階段，而且我們昨晚剛剛宣布了這一消息，但我們相信對該業務的需求將會相當強勁。在該行業中正在發展並持續增長的房地產整合商將對它有很大的興趣。我們期望該業務有一個非常良好和強大的流程。就像我說的，這是行業中最重要的業務，我們非常感覺到它對我們來說會很強大。馬克，你想...

Yes. And then, Ken, in terms of sort of the midpoint guide moved down, I tried to cover that off in my prepared remarks. But really, there was sort of 3 driving factors there. One, we said in Q2, right, that we anticipated that M&A activity would help fill that impact that we were feeling from Cinelease.

是的。然後，肯，就中點指南向下移動而言，我試圖在我準備好的發言中掩蓋這一點。但實際上，有 3 個驅動因素。第一，我們在第二季說過，我們預計併購活動將有助於填補我們從 Cinelease 感受到的影響。

And I think that the reality is that the M&A is opportunistic. And just from the cadence of the closes particularly year-over-year, those have been pushed out further into Q3, really the activity that we had in Q3 was done 3 days before quarter end. And so that activity is pushing out into Q4 and then even possibly into Q1. So that was a big driver there.

我認為現實是併購是機會主義的。從關閉的節奏來看，特別是與去年同期相比，這些已經被進一步推遲到第三季度，實際上，我們在第三季度的活動是在季度末前 3 天完成的。因此，該活動正在推進到第四季度，甚至可能推進到第一季。所以這是一個很大的推動力。

I think that the cuts and the impact from Cinelease is deep. And I think lastly, no storm activity in '23, particularly comped up against '22 is also an impact that we had to take into consideration, and we've got visibility now here in October that it's not going to happen.

我認為 Cinelease 的削減和影響是深遠的。我認為最後，23 年沒有風暴活動，特別是與 22 年相比，這也是我們必須考慮的影響，而且我們現在在 10 月就已經看到這種情況不會發生。

We'll take our next question from Seth Weber at Wells Fargo.

我們將回答富國銀行塞思韋伯的下一個問題。

I just -- I wanted to just clarify, make sure I'm understanding the CapEx message for this year, was there a -- has there been any change to your gross CapEx number for 2023? Or is it just -- I think I heard some comments about some growth CapEx getting pushed to '24 million versus '23. I'm just trying to understand your new CapEx range, does that incorporate any changes on the -- what you were planning to buy side or taken for 2023?

我只是 - 我想澄清一下，確保我理解今年的資本支出信息，您 2023 年的資本支出總額是否有任何變化？或者只是——我想我聽到了一些關於一些增長資本支出被推至“2400 萬，而不是 23”的評論。我只是想了解您的新資本支出範圍，這是否包含您計劃購買或在 2023 年採取的任何變化？

Seth, it's Mark. Good question. I think really, we tried to put this in prepared remarks. But really, it's an impact and a combination of 2 things, right? We had some 2023 orders pushed out. And then obviously, we're disposing of a bit more gear than we had originally guided to. And we mentioned that in the prepared remarks as well.

賽斯，我是馬克。好問題。我認為確實，我們試圖將這一點放在準備好的評論中。但實際上，這是一種影響，也是兩件事的結合，對嗎？我們延後了一些 2023 年訂單。顯然，我們處理的裝備比最初指導的要多一些。我們在準備好的發言中也提到了這一點。

I think the only other thing I would say to you is that in Q2, right, we guided to the low end of the range. And so really, this is just us tightening that range up for you, but there's no difference or variance to really our messaging from Q2.

我想我要對你們說的唯一一件事是，在第二季度，我們引導到了範圍的低端。事實上，這只是我們為您收緊了範圍，但與我們第二季度的消息沒有任何差異或差異。

Okay. And is the push out something that happened during this that you observed during the third quarter? Because I think -- I feel like you had sort of -- in the second quarter, you had talked about some deliveries and stuff moving around as well. Is this an incremental update where more stuff is getting pushed into 2024 or it's kind of improving?

好的。您在第三季觀察到的這段期間是否發生了推出事件？因為我認為 - 我覺得你在第二季度談到了一些交付和移動的東西。這是漸進式更新，更多內容將被推入 2024 年，還是有所改進？

Yes. In the remarks, and Larry mentioned some of the product types like access equipment, which is we call them some material handling and some aerial booms, they're getting pushed out just like they did in '22 and kind of rolled into '23. Some of the stuff we wanted in '23 rolling into '24.

是的。在演講中，拉里提到了一些產品類型，例如通道設備，我們稱之為一些物料搬運和一些空中吊桿，它們正像 22 年那樣被推出，並被推入 23 年。我們在 23 年想要的一些東西將延續到 24 年。

Now we're getting some of that product, but we're not getting as much of the product as we desire to have. So that's really the sequence that's happening. The other parts of the supply chain are working better than they have in the last 3 years. But there are the access equipment that is kind of rolling over into the next year.

現在我們得到了一些該產品，但我們沒有得到我們想要的那麼多產品。這確實是正在發生的順序。供應鏈的其他部分比過去三年運作得更好。但有些接取設備可能會延續到明年。

And as I mentioned also, some of those product types and access equipment part of the type of equipment that are the highest demand in the marketplace. So we'd like to get more of it, but we're not able to -- some of our expectations of receiving it this year is kind of rolling over to '24.

正如我也提到的，其中一些產品類型和接入設備屬於市場需求最高的設備類型。因此，我們希望獲得更多，但我們無法做到——我們對今年收到它的一些期望可能會延續到 24 年。

Got it. Okay. So it's not -- you wouldn't characterize it as a change in your demand for the equipment?

知道了。好的。那麼，您不會將其描述為您對設備需求的變化嗎？

No. If we could get more access equipment, we would take it as soon as you get it.

不。如果我們可以獲得更多的無障礙設備，我們會在您拿到後立即使用。

And then just -- just -- and then just a follow-up. The used sales margin, I guess, how would you characterize your channel mix going forward? It sounds like you sold more stuff through auction this quarter, margins were a little bit light year-over-year or sequentially. I mean, is that -- is this the mix that we should contemplate going forward? Or do you think you move more towards real and margins get better going forward?

然後只是 - 只是 - 然後只是後續行動。我想，使用的銷售利潤率，您將如何描述您未來的通路組合？聽起來您本季透過拍賣出售了更多東西，利潤比去年同期有點低。我的意思是，這是我們未來應該考慮的組合嗎？或者您認為您會更接近實際並且利潤率會變得更好嗎？

No. Our focus going forward is a more heavily weighted retail wholesale channel for disposals. And we were making a lot of progress on that over the last 3 or 4 quarters. Just in this recent quarter in Q3, we wanted to really focus on rebalancing the fleet to the (inaudible). And so we had to use auction more than we wanted but mission accomplished, right?

不會。我們未來的重點是更重要的零售批發管道的處置。在過去的三、四個季度裡，我們在這方面取得了很大進展。就在第三季的最近一個季度，我們希望真正專注於重新平衡機隊（聽不清楚）。因此，我們必須更多地使用拍賣，但任務已經完成，對嗎？

We got done what we needed to get done, and we're back to dispose them through the retail wholesale, which is a bit of a journey for us, right? We have to get that activity going through our entire sales force and marketing efforts. But that's where we're going. That will help drive more proceeds to our bottom line in the subsequent quarters.

我們已經完成了我們需要完成的事情，我們又回來透過零售批發來處理它們，這對我們來說是一段旅程，對吧？我們必須讓這項活動貫穿我們整個銷售團隊和行銷工作。但這就是我們要去的地方。這將有助於在接下來的幾季中為我們帶來更多收益。

Okay. So you would think fourth quarter used sale margin should more reflect what you guys were putting up prior to third quarter?

好的。所以您認為第四季的使用銷售利潤率應該更反映您在第三季之前的表現？

Yes, more of what you saw in our previous quarters this year and Q4 last year.

是的，更多的是你在今年前幾季和去年第四季看到的情況。

We'll go next to John Healy at Northcoast Research.

接下來我們將採訪北海岸研究中心的約翰·希利。

Great. Larry, I just want to ask a big picture question. I think the ARA came out this summer, kind of talked about the year being kind of a high single-digit growth year for the industry and next year being, I know somewhere around 3% or 4%, I want to say.

偉大的。拉里，我只是想問一個大問題。我認為 ARA 今年夏天發布，談到今年是該行業高個位數成長的一年，我想說明年是 3% 或 4% 左右。

Your big picture thoughts about those forecasts. And as you look at those forecasts, do you find them reasonable and reflective of the market as you see it? And how do you think Herc should perform relative to maybe those industry benchmarks?

您對這些預測的整體看法。當您查看這些預測時，您是否發現它們合理並反映了您所看到的市場？您認為 Herc 相對於這些產業基準應該表現如何？

Yes. Look, I think for the most part, ARA is maybe even a little light on what we think the growth possibly could be. I think the growth in '23 is more like in a half in '24 is going to be mid-single digits. And so I think as we've mentioned in the prepared remarks, we think we're going to outperform the market by maybe a factor of 2.

是的。看，我認為在很大程度上，ARA 甚至可能對我們認為的成長可能有一點幫助。我認為 23 年的成長更像是 24 年的一半，將達到中個位數。因此，我認為正如我們在準備好的發言中提到的那樣，我們認為我們的表現將比市場高出 2 倍。

And I think it's really being driven by the onshoring, the mega projects, the infrastructure projects, as well as our growth in the local market with the M&A and the greenfield activity that we're doing. So we're fairly bullish on what we see going forward.

我認為這實際上是由在岸外包、大型專案、基礎設施專案以及我們透過併購和我們正在進行的綠地活動在當地市場的成長所推動的。因此，我們對未來的發展相當樂觀。

Great. And I just want to ask your thoughts about capital allocation going into next year. I know you guys have taken a balanced approach between the dividend, buyback and M&A. But when I look at the company, I think you have something in your slides today where you talked about acquisition multiples around 5.5% and getting to a synergized multiple around 4% or so. The company itself today is probably trading below those acquisition multiples. So I mean, do you think about you think about pivoting more towards the buyback as you look to next year? Or how do you think about that for going forward?

偉大的。我只是想問您對明年資本配置的看法。我知道你們在股利、回購和併購之間採取了平衡的方法。但當我觀察這家公司時，我認為您今天的幻燈片中有一些內容，您談到了收購倍數約為 5.5%，協同倍數約為 4% 左右。該公司目前的交易價格可能低於這些收購倍數。所以我的意思是，你認為明年你會考慮更多轉向回購嗎？或者您如何看待未來的發展？

Yes. Look, I think as we've said before, we'll reevaluate our strategy around capital allocation as we go into next year with our board and determine what's in the best interest of the shareholders and continued positioning and growth of this company. So all of those are long-term views that we're going to take on it. So it's really not what I would call a short-term decision around where that is.

是的。聽著，我認為正如我們之前所說，當我們進入明年時，我們將與董事會一起重新評估我們圍繞資本配置的策略，並確定什麼最符合股東的最佳利益以及公司的持續定位和成長。因此，所有這些都是我們將採取的長期觀點。所以這確實不是我所說的短期決定。

And we'll move next to Mig Dobre at Baird.

我們將搬到貝爾德 (Baird) 的米格·多布雷 (Mig Dobre) 旁邊。

Yes. Just to follow up on that last statement, Larry. So industry growing maybe mid-single digit, you're aiming for twice that, so call it, high single or maybe 10%. That's obviously great. I'm curious kind of how you think about the moving pieces in terms of what gets you there, pricing versus fleet growth versus utilization, if you can provide some context around that.

是的。只是為了跟進最後一句話，拉里。因此，行業成長可能是中個位數，你的目標是兩倍，所以可以稱之為高個位數，或者可能是 10%。這顯然很棒。我很好奇你如何看待移動部件，例如定價、機隊成長與利用率，如果你能提供一些相關背景資訊的話。

Yes. Look, I think it's all of that, Mig. I think you'll see a mixture of pricing and fleet growth, the utilization as well as M&A activity that will allow us continue to have that kind of trajectory. We do not see a recession at all, regardless of what the folks in your world might think.

是的。聽著，我想這就是全部，米格。我認為你會看到定價和機隊成長、利用率以及併購活動的混合，這將使我們能夠繼續保持這種軌跡。無論你們世界的人們怎麼想，我們根本看不到經濟衰退。

Fair enough. Just to make sure that I -- we clarified this a bit because everybody kind of asked the questions around CapEx. But it seems to me that with higher disposals, if you're talking about fleet growth into 2024, that would necessarily imply higher CapEx. Do I have that right?

很公平。只是為了確保我 - 我們澄清了這一點，因為每個人都問了有關資本支出的問題。但在我看來，隨著處置量的增加，如果你談論的是 2024 年的機隊成長，必然意味著更高的資本支出。我有這個權利嗎？

Well, we're not ready to disclose what we're thinking about CapEx for next year, as Aaron mentioned in the prepared remarks, we've had a fair amount of pent-up demand as a result of COVID and the inadequacies of the supply chain over the last 3 years that allowed us to then have a higher level of disposals going into the fourth quarter of this year. We're still evaluating our CapEx plan for next year and the following 2 years, and we'll be able to share more of that with you on November 2 at our Investor Day.

好吧，我們還沒有準備好透露我們對明年資本支出的想法，正如亞倫在準備好的演講中提到的那樣，由於新冠疫情和公司的不足，我們有相當多的被壓抑的需求。過去三年供應鏈的改善使我們能夠在今年第四季進行更高水準的處置。我們仍在評估明年和未來 2 年的資本支出計劃，我們將在 11 月 2 日的投資者日與您分享更多內容。

And at this time, we have no further questions. I'll turn the conference back over to Leslie for closing remarks.

此時，我們沒有其他問題了。我將把會議轉回給萊斯利做閉幕詞。

Thank you for joining us on the call today. We look forward to updating you on our progress in the quarters to come. Of course, if you have any further questions, please don't hesitate to reach out to us. Have a great day.

感謝您今天加入我們的電話會議。我們期待向您通報我們未來幾季的最新進展。當然，如果您還有其他疑問，請隨時與我們聯繫。祝你有美好的一天。

And that does conclude today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。