Herc Holdings Inc (HRI) 2024 Q3 法說會逐字稿

Thank you for standing by. My name is John and I'll be your conference operator for today. At this time. I would like to welcome everyone to the Herc holdings third quarter, 2024 Ernie call at webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad to withdraw your question. Please press star run again. Thank you. I would now like to turn the call over to Leslie Hunziker, head of investor relations. Please go ahead.

謝謝你的支持。我叫約翰，我將擔任今天的會議操作員。此時。我歡迎大家參加 Herc Holdings 2024 年第三季 Ernie 電話網路直播。所有線路均已靜音，以防止任何背景噪音。演講者發言後，將進行問答環節。如果您想在此期間提出問題，只需按星號，然後按電話鍵盤上的數字 1 即可撤回您的問題。請再次按星號運行。謝謝。我現在想將電話轉給投資者關係主管 Leslie Hunziker。請繼續。

Thank you operator and good morning everyone. Welcome to Herc rentals third quarter, 2024 earnings conference 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. Today, we're reviewing our third quarter, 2024 results with comments on operations in our financials including our view of the industry and our strategic outlook. The prepared remarks was followed by an open Q&A now let's move to our safe harbor and GAAP reconciliation on slide. Three. 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. I would caution you that our actual results could differ materially from the forward-looking statements made on this call.

謝謝接線員，大家早安。歡迎參加 Herc Rentals 2024 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。所有內容均發佈在我們 IR 網站的活動頁面上。今天，我們正在回顧 2024 年第三季的業績，並對我們的財務營運進行評論，包括我們對產業的看法和策略前景。準備好的發言之後是公開問答，現在讓我們轉向我們的安全港和幻燈片上的 GAAP 調節。三。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。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。

You should also refer to the risk factors section of our annual report on form 10 K for the year ended December 31st 2023. In addition to the financial results presented on a GAAP basis, we'll be discussing non GAAP information that we believe is useful in evaluating the company's operating performance reconciliation for these non GAAP measures. And the to the closest GAAP equivalent can be found in the conference call material. 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. We've not given permission for any other recording of this call and do not approve or sanction any transcribing of the call. Finally, please mark your calendars to join our management meetings at the Baird Global Industrial Conference in Chicago on November 12th, North Coast Researches Virtual Management access forum on November 13th, Redburn Atlantic Virtual CEO Conference on December third and the Mey Research Conference in New York on December 11th. We hope to see you there 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.

您也應該參閱我們截至 2023 年 12 月 31 日止年度的 10 K 表格年度報告的風險因素部分。除了以 GAAP 基礎呈現的財務業績外，我們還將討論非 GAAP 訊息，我們認為這些資訊有助於評估公司針對這些非 GAAP 指標的經營業績調節情況。最接近的 GAAP 等效值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重播本次通話。今天早上我們發布的財報中包含了重播說明。我們未授權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。最後，請標記您的日曆，參加我們的管理會議：11 月12 日在芝加哥舉行的貝爾德全球工業會議、11 月13 日舉行的北海岸研究虛擬管理訪問論壇、12 月3 日舉行的Redburn Atlantic虛擬CEO 會議以及在紐約舉行的梅伊研究會議12 月 11 日。我們希望今天早上在那裡見到您。與我一起出席的還有總裁兼執行長 Larry Silber、高級副總裁兼營運長 Aaron Birnbaum 以及高級副總裁兼財務長 Mark Humphrey。我現在將電話轉給拉里。

Thank you, Leslie and good morning, everyone. Let's turn to slide. Number four in the third quarter. We continue to deliver on our long term growth strategies focusing on the fundamentals of increasing market share and geographic density for scale optimizing fleet mix with greater penetration of our specialty equipment and leveraging proprietary and industry data and technologies to enhance our competitive position and customer satisfaction. We're continuing to make good progress on all of these initiatives.

謝謝你，萊斯利，大家早安。讓我們轉向幻燈片。第三季排名第四。我們繼續實施我們的長期成長策略，重點關注增加市場份額和地理密度的基本原則，以規模優化機隊組合，提高我們的專業設備的滲透率，並利用專有和行業數據和技術來增強我們的競爭地位和客戶滿意度。我們將繼續在所有這些措施上取得良好進展。

Year-to-date, we've acquired '26 locations and opened '16 Greenfield branches that will drive market share and revenue efficiencies in key metropolitan areas in line with our urban market growth strategy. In addition to desirable locations, the acquisitions bring complementary fleet categories valuable new team members with a strong cultural fit and new local account opportunities.

今年迄今為止，我們已收購了 26 個地點並開設了 16 個新建分支機構，這將根據我們的城市市場成長策略，提高主要大都市地區的市場份額和收入效率。除了理想的地點外，這些收購還為互補的機隊類別帶來了寶貴的新團隊成員，這些成員具有強大的文化契合度和新的本地客戶機會。

Our enhanced fleet mix allows us to cross sell our specialty products to these typically gene customers. We've increased our specialty fleet capex this year to support share of wallet opportunities as well as the incremental demand for mega projects and potential business with customers in newer and market verticals where we're capturing greater penetration.

我們增強的機隊組合使我們能夠向這些典型的基因客戶交叉銷售我們的特色產品。今年，我們增加了專業船隊資本支出，以支持錢包機會的份額以及對大型項目的增量需求以及與我們正在獲得更大滲透的新興垂直市場客戶的潛在業務。

Now, moving to slide 5, this is our year-to-date financial scorecard which includes the clease business with the softness in the local market. Continuing as developers await further interest rate cuts. This year's operating performance really emphasizes the advantage of herc mega project participation, customer project and geographic diversity, specialty equipment and services, strategic acquisitions and of course pricing discipline, rental rate was up 2.3% year over year in the quarter and 3.5% year-to-date. That's on top of the tough comp of 7.2% over the same nine month period last year and a 5.4% rate increase in the first three quarters of 2022. Further pricing is improving on a sequential basis, reflecting our leadership as well as ongoing industry discipline and based on benchmark data, herc volume continues to significantly outpace overall rental market growth on both an organic and total revenue basis adjusted ebit margin is running slightly ahead of last year-to-date results. Despite an unfavorable trade off and profitability as 2024 acquisitions and Greenfield initially generate lower incremental margins than our established local account business. Ultimately, over an '18 to '24 month period, these new locations will become fully accretive and will further help drive scale efficiencies that make them a valuable component of our long term profitability plan.

現在，轉到幻燈片 5，這是我們今年迄今為止的財務記分卡，其中包括本地市場疲軟的清算業務。開發商仍在等待進一步降息。今年的經營業績確實強調了 Herc 大型專案參與、客戶專案和地理多樣性、專業設備和服務、策略性收購，當然還有定價紀律的優勢，本季租金率年增 2.3%，較去年同期上漲 3.5%。為止。去年同期 9 個月期間成長率為 7.2%，2022 年前三個季度成長率為 5.4%。進一步的定價環比改善，反映了我們的領導地位以及持續的行業紀律，並且根據基準數據，herc 交易量在有機收入和總收入基礎上繼續顯著超過整體租賃市場的增長，調整後的息稅前利潤率略高於預期去年至今的結果。儘管 2024 年收購和綠地專案最初產生的增量利潤率低於我們已建立的本地帳戶業務，但獲利能力和權衡不利。最終，在 18 至 24 個月的時間內，這些新地點將完全增值，並將進一步幫助提高規模效率，使其成為我們長期盈利計劃的重要組成部分。

Year-to-date ROIC is being impacted by some near term inefficiencies, including those from new locations which will improve over time mark will walk you through the year over year comparison in detail in just a minute. But on a favorable note, fleet efficiency on an organic basis is positive for the nine months year-to-date. And that's due to a strong execution by our fleet sales and operations team in such a dynamic market. They've stayed focused on fleet pro productivity and it's paid off as we think about the remainder of the year. Let me jump to slide number six to share some thoughts we expect once again generate record rental revenue in the fourth quarter. As mega projects accelerate new acquisitions provide incremental contributions and a revenue related to our support of the recovery efforts for the two recent hurricanes are captured when it comes to margin. We're going to continually to carefully manage the cost structure and fleet utilization to address this near term disparity of demand. We're seeing between certain regions, customer and project types. We'll also continue our efforts to pull synergies from recent acquisitions as quickly as possible to enhance profitability experience, agility and discipline will help navigate this timing issue in the local market for net fleet capexs we've taken in most of our new fleet at this point and we'll ramp up seasonal dispositions over the next two months. Our fleet group has done an excellent job in managing the timing and allocation of investments in new equipment and adjusting the amounts of new fleet against fleet dispositions based on regional demand trends. From what we're continuing to see in the industry data. The overall market is being equally disciplined when it comes to fleet growth.

今年迄今的投入資本回報率受到一些近期效率低下的影響，其中包括來自新地點的投入資本回報率將隨著時間的推移而改善，您將在一分鐘內詳細了解同比的比較。但有利的一面是，在今年迄今的九個月內，機隊的有機效率是正面的。這要歸功於我們的車隊銷售和營運團隊在如此充滿活力的市場中的強大執行力。他們一直專注於車隊專業生產力，當我們想到今年剩餘時間時，他們的努力得到了回報。讓我跳到第六張投影片來分享一些我們預計第四季將再次創造創紀錄租金收入的想法。隨著大型專案的加速，新的收購提供了增量貢獻，並且在利潤率方面也反映了與我們支持最近兩次颶風的復原工作相關的收入。我們將繼續仔細管理成本結構和機隊利用率，以解決近期的需求差異。我們正在觀察某些地區、客戶和專案類型之間的情況。我們也將繼續努力，盡快從最近的收購中獲得協同效應，以增強盈利經驗、敏捷性和紀律，這將有助於解決我們在大多數新機隊中所採取的淨機隊資本支出的本地市場的時機問題。我們的機隊集團在管理新設備投資的時間和分配以及根據區域需求趨勢根據機隊配置調整新機隊數量方面做得非常出色。從我們不斷看到的產業數據來看。在機隊成長方面，整個市場同樣受到嚴格限制。

As always, we'll manage our costs and assets carefully while we continue to support the growth of our business, Aaron will talk a little bit more about current operating trends and then Mark will take you through the core business performance and more specific puts and takes that support our full year guidance range, Aaron, thanks

一如既往，我們將仔細管理我們的成本和資產，同時繼續支持我們業務的成長，亞倫將更多地談論當前的營運趨勢，然後馬克將帶您了解核心業務績效和更具體的看跌期權和需要支持我們的全年指導範圍，亞倫，謝謝

Larry and good morning everyone.

拉里，大家早安。

The underlying long term fundamentals supporting equipment rental demand remains strong.

支援設備租賃需求的長期基本面依然強勁。

The trends of rental over ownership, restoring manufacturing, fortifying North America's infrastructure, modernizing the electrical grid, rapid growth in A I and data centers. And the move toward clean energy all represents significant future opportunities for her as a leading equipment rental company with a full fleet of capabilities, products and best in class services.

租賃超過所有權的趨勢、恢復製造業、加強北美基礎設施、現代化電網、人工智慧和資料中心的快速成長。作為一家擁有全套能力、產品和一流服務的領先設備租賃公司，向清潔能源的轉變為她帶來了巨大的未來機會。

While the current period of transition from the post COVID peak to a more normal local operating environment was challenged this year with the higher interest rates and some macro economic uncertainty. Our much more diversified position today provides the resiliency to continue to drive revenue growth and deliver strong operating margins. Of course, the secret sauce is team hurts on wavering dedication to the success of our customers and their critical projects.

然而，由於利率上升和宏觀經濟的一些不確定性，目前從後疫情高峰期到更正常的當地經營環境的過渡期今年受到了挑戰。如今，我們的定位更加多元化，為持續推動營收成長和實現強勁的營業利潤提供了彈性。當然，秘訣在於團隊對客戶及其關鍵專案成功的奉獻精神動搖而受到傷害。

Success starts with safety and safety is at the core of everything we do as you can see on slide 8, our major internal safety program focuses on perfect days. We strive for 100% perfect days throughout the organization in the third quarter, on a branch by branch measurement, all of our operations achieved at least 97% of days. As perfect.

成功始於安全，安全是我們所做一切的核心，正如您在幻燈片 8 中看到的，我們的主要內部安全計劃專注於完美的日子。第三季度，我們努力在整個組織內實現 100% 的完美天數，以分支機構衡量，我們所有的營運都實現了至少 97% 的天數。一樣完美。

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 our customers.

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，反映了我們的高標準以及對員工和客戶安全的承諾。

On slide 9, you can see that we are making great progress on our urban market growth strategy by expanding through Greenfield locations and acquisitions in the TOP100 metropolitan markets.

在幻燈片 9 上，您可以看到，透過在 TOP100 大都會市場進行綠地擴張和收購，我們在城市市場成長策略方面取得了巨大進展。

In the third quarter, we spent $277 million in net cash on two acquisitions, adding a total of five locations to our networks in Florida, Arizona and California.

第三季度，我們花了 2.77 億美元的淨現金進行了兩次收購，在佛羅裡達州、亞利桑那州和加利福尼亞州的網路中總共增加了 5 個地點。

The acquisition out West was our largest since launching our M&A strategy. At the end of 2020 we completed the transaction in July and as I mentioned on our last call, this premium business brings four locations serving construction and industrial customers in Phoenix and San Diego.

此次對 West 的收購是我們自啟動併購策略以來最大的一筆收購。2020 年底，我們在 7 月完成了交易，正如我在上次電話會議中提到的，這項優質業務帶來了四個地點，為鳳凰城和聖地亞哥的建築和工業客戶提供服務。

Of course, Arizona is a top '10 market and a mega project hotspot in the San Diego locations substantially expand our share and now position us as a leader in this top '25 market.

當然，亞利桑那州是“10 大市場”，並且是聖地亞哥地區的大型專案熱點，這大大擴大了我們的份額，現在使我們成為這個“25 大市場”的領導者。

We also opened five Greenfield locations in the quarter, bringing our total over the last '12 months to '24 which is nearly a 41% increase in Greenfield openings over the comparable trailing '12 month period.

我們還在本季度新開設了 5 家新店，使過去 12 個月內的新店總數達到 24 個月，與過去 12 個月期間相比，新店開業數量增加了近 41%。

As you know, we are focused on opportunities in high growth markets that complement our current branch network and fit our strategic financial and cultural filters Moreover, many of the mega industrial manufacturing projects being announced are in the geographies where we have targeted our acquisitions and Greenfield editions like Texas, Southern California, Arizona and along the eastern seaboard, we have successfully integrated 51 businesses with 115 locations into the Herc network since late 2020.

如您所知，我們專注於高成長市場的機會，這些機會補充了我們當前的分支機構網絡並適合我們的戰略財務和文化過濾器此外，許多正在宣布的大型工業製造項目都位於我們瞄準收購和綠地的地區自 2020 年底以來，我們已在德克薩斯州、南加州、亞利桑那州和東海岸等地區成功將 115 個地點的 51 家企業整合到 Herc 網路中。

As a result of revenue efficiencies, we've been generating synergized multiples at maturity of approximately 3.5 to 4.5 times while new acquisition opportunities remain robust. In fact, we just closed on another last week. We are equally focused on ensuring we are capturing the cross selling and fleet productivity synergies from acquisitions completed over the last '24 months on slide. '10. In addition to acquisitions growing our core and special fleet through new equipment investments is a key strategy to expanding our share and keeping up with our increasing demand opportunities.

由於營收效率的提高，我們在到期時的協同倍數約為 3.5 至 4.5 倍，同時新的收購機會仍然強勁。事實上，我們上週剛關閉了另一個項目。我們同樣致力於確保我們能夠從過去 24 個月內完成的收購中獲得交叉銷售和車隊生產力協同效應。'10。除了收購之外，透過新設備投資來發展我們的核心和特種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。

Our fleet composition at OEC is on the right side of the page total. Fleet is now a record 7.1 billion as of September 30 2024 centile lease fleet represents roughly 4% of the total. So when you exclude the center assets held for sale, our base fleet is about $6.8 billion.

我們在 OEC 的機隊構成位於頁面總數的右側。截至 2024 年 9 月 30 日，機隊數量已達到創紀錄的 71 億人次，租賃機隊約佔總數的 4%。因此，如果排除待售的中心資產，我們的基礎機隊價值約為 68 億美元。

You'll note that higher margin specialty fleet represents approximately 23% of the total today excluding centile specially makes up about 20% of the total with plenty of room to continue to grow when it comes to fleet investments in the quarter. The 34% increase year over year is more reflective of a return to normal seasonal delivery patterns this year. With the supply chain recovery.

您會注意到，利潤率較高的專業機隊約佔目前總數的23%，不包括佔總數約20% 的Centile 特別機隊，在本季度的機隊投資方面，還有足夠的空間繼續增長。同比增長 34% 更反映了今年正常季節性交付模式的回歸。隨著供應鏈的恢復。

In fact, year-to-date fleet investments at OEC are down about 14%. It was we manage our fleet efficiency while supporting the incremental demand from general market expansion in the peak season, new green fields in the mega projects that significantly accelerated into the back half of the year. For the full year. We expect to spend roughly $1 billion on new fleet purchases in the 2024 third quarter. Fleet disposals at OEC were 36% lower than last year. Again, this is in keeping with our plan for a more normal seasonal cadence of dispositions this year, year-to-date disposals at OEC are down 24% compared with a year earlier when we were both right, sizing and refreshing our fleet for the for the full year. We've increased our planned OEC dispositions to approximately $700 million to update some of the acquisition fleet and to adjust for the slower local market demand in certain regions where transportation costs to move existing fleet are less economically efficient.

事實上，年初至今 OEC 的機隊投資下降了約 14%。我們管理船隊效率，同時支援旺季整體市場擴張、大型專案新綠地的增量需求，這些需求在下半年顯著加速。全年。我們預計 2024 年第三季將花費約 10 億美元購買新機隊。OEC 的機隊處置量比去年減少了 36%。再次強調，這符合我們今年更正常的季節性處置節奏的計劃，OEC 今年迄今為止的處置量比去年同期下降了 24%，當時我們在調整和更新我們的機隊方面都是正確的。 。我們已將計劃的 OEC 處置金額增加至約 7 億美元，以更新部分收購機隊，並適應某些地區較慢的當地市場需求，因為這些地區移動現有機隊的運輸成本經濟效率較低。

In the third quarter, we continue to gain traction on improving our use fleet sales capabilities, utilizing technology training and sales force incentives to participate more in the higher return retail and wholesale channels as a result of our now more favorable channel mix. And despite the used equipment market moderating from peak levels. Our proceeds at 42% of what we see in the quarter were 300 basis points higher than last year.

在第三季度，我們繼續努力提高我們的使用車隊銷售能力，利用技術培訓和銷售人員激勵措施，更多地參與回報率更高的零售和批發管道，因為我們現在擁有更有利的通路組合。儘管二手設備市場從高峰水準有所放緩。我們本季的收益為 42%，比去年高出 300 個基點。

Turning to slide 11, we are successfully addressing the needs of both large national accounts and local contractors.

轉向投影片 11，我們正在成功滿足大型國民帳戶和當地承包商的需求。

Local accounts represented 56% of rental revenue in the third quarter and are expanding through share gains from acquisition and Greenfield locations as well as organic growth and select regions where infrastructure education, local utilities and facility maintenance repair projects are underway.

本地帳戶佔第三季租金收入的 56%，並透過收購和綠地地點的份額收益以及有機增長和基礎設施教育、本地公用事業和設施維護修復項目正在進行的特定地區而不斷擴大。

We continue to view the slow down on local project starts primarily as an interest rate, timing issue based on everything we're hearing on the national account side. We're capitalizing on continued government and private funding for new projects in areas like battery storage, energy infrastructure, semiconductor L&G plants and data centers.

根據我們在國民帳戶方面聽到的一切，我們仍然認為本地項目開工放緩主要是由於利率和時間安排問題。我們正在利用政府和私人的持續資助，在電池儲存、能源基礎設施、半導體 L&G 工廠和資料中心等領域開展新專案。

We'll continue to target a 64 revenue split between local and national accounts. This diversification provides for growth and resiliency.

我們將繼續以地方帳戶和國民帳戶之間收入分配 64 的目標為目標。這種多元化提供了成長和彈性。

Turning to slide '12 overall, we're continuing to see solid demand across a variety of end markets, geographies and project types. In 2024 mega projects continue to represent incremental new opportunities for us. As our specially offering expanded market coverage, technology advancements and service and logistics expertise distinguishes us as a top three solutions provider from most indian market vertical and team her is already gearing up their professionalism shows up in execution of our services to our customers every single day. Our growth is attributable to our people and our culture.

轉向 12 年幻燈片，我們繼續看到各種終端市場、地區和專案類型的強勁需求。2024 年，大型專案持續為我們帶來增量新機會。由於我們的專門產品擴大了市場覆蓋範圍，技術進步以及服務和物流專業知識使我們成為印度大多數垂直市場中排名前三的解決方案提供商，她的團隊已經在每天為客戶提供的服務中展現出他們的專業。我們的成長歸功於我們的人民和我們的文化。

They're the reason for the long tenure of our national account customers and for the new business we're winning on local mega projects. Now, I'll pass the call on to mark.

它們是我們國民帳戶客戶長期使用的原因，也是我們在當地大型專案中贏得新業務的原因。現在，我將把電話轉給馬克。

Thanks Erin and good morning everyone. I'm starting on slide '14 with a summary of our key metrics for the third quarter for clarification. These are our GAAP results that include the center studio entertainment business, which as we've discussed previously is classified as assets held for sale. I'll just make a couple of quick points here before turning the focus to the core results in the third quarter, rental revenue increased 13.2% and adjusted EBITDA increased 8.8% to a record 446 million EBITA margin expanded 100 basis points and dollar utilization was up slightly.

謝謝艾琳，大家早安。我從投影片 '14 開始，總結了第三季的關鍵指標，以進行澄清。這些是我們的公認會計準則結果，其中包括中心工作室娛樂業務，正如我們之前討論的那樣，該業務被歸類為持有待售的資產。在將重點轉向第三季的核心業績之前，我先簡單介紹幾點，租金收入成長 13.2%，調整後 EBITDA 成長 8.8%，達到創紀錄的 4.46 億 EBITA 利潤率擴大 100 個基點，美元利用率成長稍微上升。

Let's move to slide '15.

讓我們轉到幻燈片 '15。

Here we outline our core financial results which exclude centile lease from both periods in order to give you a better sense of how the base business performed in the quarter.

在這裡，我們概述了我們的核心財務業績，其中不包括兩個時期的百分位租賃，以便讓您更了解本季基礎業務的表現。

A full reconciliation of quarterly performance metrics excluding centile lease can be found on slides '26 and '27 in the appendix of our presentation for the third quarter. At nearly 12%. Our rental revenue significantly outpaced. The overall industry's performance rental revenue came from a variety of sources which speaks to the strong execution of our sales force fleet team and branch operators as well as the diversification of our business and fleet offerings. Reinforcing that our capital allocation strategy is working mega projects led national account business, the double digit growth in line with our expectations. While our local rental business also grew as a result of contributions from recent acquisitions, as well as organic growth from health care, education, municipal and mro projects pricing came in at 2.3% in the quarter. And pricing discipline across the industry is evident as companies continue working to align fleet with demand trends especially in the local markets for her. In addition to moving or disposing of fleet in softer regions of the country. We're also working through the newly acquired fleet to upgrade quality refresh for age or right size where necessary. While acquisition fleet weighs on fleet efficiency and dollar utilization, we have seen improvements in both metrics sequentially versus the second quarter of this year and we expect to continue to see improvement as acquisitions mature under our ownership. Organic fleet efficiency was positive in the quarter.

您可以在我們第三季簡報附錄中的投影片「26」和「27」中找到不包括百分位數租賃的季度業績指標的完整核對錶。接近12%。我們的租金收入大幅成長。整個行業的績效租賃收入來自多種來源，這證明了我們的銷售車隊團隊和分支機構營運商的強大執行力以及我們的業務和車隊產品的多元化。強化我們的資本配置策略，以大型專案為主導的國民帳業務，兩位數的成長符合我們的預期。我們的本地租賃業務也因最近收購的貢獻而成長，以及醫療保健、教育、市政和 MRO 專案的有機成長，本季定價為 2.3%。隨著公司繼續努力使車隊與需求趨勢保持一致，尤其是在當地市場，整個行業的定價紀律是顯而易見的。除了在該國較軟的地區移動或處置車隊外。我們也正在透過新收購的機隊進行升級品質更新，以適應車齡或必要時的尺寸要求。雖然收購船隊影響了船隊效率和美元利用率，但與今年第二季相比，我們已經看到這兩個指標連續改善，並且隨著我們所有權下收購的成熟，我們預計將繼續看到改善。本季有機車隊效率為正值。

Net income was impacted by higher interest expense related to increased borrowings to fund acquisitions and invest in rental equipment and higher non rental amortization expense associated with acquisition intangibles. Partially offsetting these impacts was operating leverage gained in our SG&A from our cost discipline as revenues expand rebit during the third quarter was a record and margin was strong at nearly 50%.

淨利潤受到與收購和投資租賃設備相關的借款增加相關的利息費用增加以及與收購無形資產相關的非租金攤銷費用增加的影響。部分抵銷這些影響的是，隨著第三季營收擴大，再計入創紀錄的利潤率和接近 50% 的強勁利潤率，我們的成本控制在銷售及管理費用 (SG&A) 中獲得了營運槓桿。

Reba do flow through at 40% was a bit lower than the 45% we expected when we updated in Q2. But for perspective, only 5 million of additional revit on the quarter would have gotten us to our expectations.

Reba 的流量為 40%，略低於我們在第二季更新時預期的 45%。但從長遠來看，本季僅增加 500 萬個 Revit 就能達到我們的預期。

We're still being impacted on the revenue side by the slowdown in the local market project starts as Aaron mentioned, which also creates a short term imbalance with gaining full leverage on our fixed direct operating costs particularly as we bring on acquisition and Greenfield locations. We believe these investments are necessary to gain scale through expanding our branch network during this growth phase and positions us for long term success.

正如亞倫所提到的，我們的收入方面仍然受到當地市場項目啟動放緩的影響，這也造成了短期不平衡，因為我們充分利用了我們的固定直接運營成本，特別是當我們引入收購和綠地地點時。我們相信，這些投資對於在這個成長階段透過擴大我們的分公司網絡來擴大規模是必要的，並使我們能夠取得長期成功。

Trailing '12 month, ROIC on the core business declined 160 basis points to 10% at the end of the quarter. The prior year period benefited from accelerated fleet dispositions. Driving an approximate 50 basis point impact the remaining 100 basis point variants relates to the impact associated with the acquisitions in greenfields and as new locations mature and our prudent onboarding of new fleet supports fleet efficiency. We expect to drive ROIC improvement.

截至 12 月末，核心業務的投資報酬率下降了 160 個基點，至季末的 10%。去年同期受惠於機隊處置的加速。推動約 50 個基點的影響，其餘 100 個基點的變化與綠地收購相關的影響有關，隨著新地點的成熟以及我們對新機隊的審慎入職，支持了機隊效率。我們期望推動投資報酬率 (ROIC) 的提高。

Let's turn to slide '16 and I'll walk you through the rental revenue and adjusted EBITDA bridges from third quarter, 2023 to third quarter, 2024. To give you a visual reconciliation in the revenue chart. The roughly 12% increase year over year was made up of 2.3% increase in rate and a 10.7% increase in OEC on fleet on rent mix was an offset of 1.2% reflecting the net of higher equipment inflation and a more favorable mix of equipment on rent for clarification. When it comes to revenue fleet inflation is in the mix to adjust the volume measured at OEC dollars to a unit metric of the 12% growth in the quarter 7.3 points came from organic rental revenue and 4.6 points came from 2024 acquisitions of the 9.5% rental revenue growth year-to-date. The contributing split was roughly 7.2 points of organic growth and 2.3 points from 2024 acquisitions adjusted EBIT increased 6.2% year over year. Benefiting from higher overall rental revenue adjusted EBIT margin was strong in the quarter, primarily due to favorable SG&A expense management and higher proceeds at OEC on fleet disposals year over year as we shift our mix of sales channel to retail and wholesale and reduce our exposure to lower margin auction sales.

讓我們轉向幻燈片 '16，我將帶您了解從 2023 年第三季到 2024 年第三季的租金收入和調整後的 EBITDA 橋樑。在收入圖表中為您提供直覺的調節。年比增長約 12%，其中包括費率增長 2.3%，以及租賃組合機隊 OEC 增長 10.7%，抵消了 1.2% 的影響，反映了較高的設備通貨膨脹和更有利的設備組合的淨值。求澄清。就收入而言，機隊通貨膨脹是其中之一，將以OEC 美元衡量的數量調整為本季成長12% 的單位指標，其中7.3 個百分點來自有機租賃收入，4.6 個百分點來自2024 年收購的9.5 % 租賃收入年初至今的收入成長。有機成長的貢獻約為 7.2 個百分點，2024 年收購帶來的 2.3 個百分點調整後息稅前利潤年增 6.2%。得益於整體租賃收入的增加，調整後的息稅前利潤率在本季度表現強勁，這主要是由於有利的SG&A 費用管理以及OEC 因將銷售渠道組合轉向零售和批發並減少對機隊處置的收益而年增。

Shifting to capital management on slide 17, 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.

轉到投影片 17 上的資本管理，您可以看到我們沒有短期到期日，也沒有充足的流動性來為我們的成長目標提供資金。隨著我們繼續分配資本投資我們的業務並推動機隊成長進入這個週期。

Higher operating cash flow and disciplined net capital expenditures resulted in $218 million of free cash flow year-to-date our current leverage ratio at 2.7 times as well within our 2 to 3 times target range. And in line with our expectations as we invest in growth, we remain confident in our business model and are committed to increasing shareholder value in the third quarter. We declared a quarterly dividend of 66.5¢ which represents $2.66 per share for the year.

較高的營運現金流和嚴格的淨資本支出導致年初至今我們的自由現金流達到 2.18 億美元，目前槓桿率為 2.7 倍，也在我們 2 至 3 倍的目標範圍內。根據我們投資成長的預期，我們對我們的業務模式仍然充滿信心，並致力於在第三季增加股東價值。我們宣布季度股息為 66.5 美分，相當於當年每股 2.66 美元。

On slide 18, you can see the continued strength in our primary end market in the upper left is the AR a estimate for 2024 North American rental industry revenue. We operate in a growing industry with a total adjustable market of $84 billion. Today on the bottom left is the architectural billing index that recorded a score of 45.7. In the August release.

在幻燈片 18 上，您可以在左上角看到我們的主要終端市場的持續強勢，這是 AR 對 2024 年北美租賃行業收入的估計。我們所處的產業不斷發展，可調整市場總額達 840 億美元。今天左下角的是建築計費指數，得分為45.7。在八月版本中。

Surveyed respondents agreed that prolonged high interest rates continue to discourage new project activity.

受訪的受訪者一致認為，長期高利率持續阻礙新項目活動。

Also, the survey showed that the majority of architecture firms reported having little experience with mega projects as a lever to offset regional weakness.

此外，調查還顯示，大多數建築公司報告稱，他們在大型專案方面缺乏經驗，無法以此作為抵消地區弱點的槓桿。

Taking a look at the updated industrial spending forecast on the top right. Industrial info resources is projecting 2024 to be the highest level on record at 372 billion billion. On top of last year's elevated 368 billion spent in the lower right. Quadrant is Dodge's forecast for nonresidential construction starts. 2024 starts are estimated to increase 6% to 442 billion the dotted line on both of these charts reflects growth over prepandemic peak levels.

查看右上角更新的工業支出預測。工業資訊資源預計到 2024 年將達到有記錄以來的最高水平，達到 3,720 億美元。去年右下角的支出增加了 3,680 億美元。象限是道奇對非住宅建築開工的預測。預計 2024 年開工量將增加 6%，達到 4,420 億套，這兩個圖表上的虛線反映了超過大流行前峰值水平的增長。

You can see that this year and the next three years are projected to be some of the strongest periods of activity that this industry has ever seen.

您可以看到，今年和未來三年預計將是該行業有史以來最活躍的時期。

Additionally, there's another 342 billion in infrastructure project slated for 2024. That's a 13% increase over 2023.

此外，2024 年還將有另外 3,420 億美元的基礎建設項目。比 2023 年增長 13%。

If you flip the slide 19, you can see that we're updating the 2024 guidance that was set in February. As noted, our guidance excludes the performance of ST studio entertainment which is held for sale. We are now expecting rental revenue growth of 9.5% to 11% for the full year based on organic growth continuing to significantly outpace the overall industry's performance which includes our which includes our outside share of mega project activity and the contribution from the 2024 acquisitions.

如果您翻轉投影片 19，您可以看到我們正在更新 2 月制定的 2024 年指南。如前所述，我們的指引不包括持有待售的 ST studio Entertainment 的表現。我們目前預計全年租金收入將成長 9.5% 至 11%，因為有機成長持續顯著超過整個產業的表現，其中包括我們在大型專案活動中的外部份額以及 2024 年收購的貢獻。

Our full year adjusted EBITDA guidance range is unchanged at 1.55 billion to 1.6 billion. Reflecting another year of profitable growth ranging from 6 to 9% over prior year.

我們全年調整後 EBITDA 指引範圍維持在 15.5 億至 16 億美元不變。反映出另一年獲利比上年成長 6% 至 9%。

Rental equipment capex is expected to come in near the high end of both our net and gross capex ranges.

租賃設備資本支出預計將接近我們的淨資本支出和總資本支出範圍的高端。

Now before we open it up for Q&A let me leave you with this while the broader macro environment is clearly transitioning in 2024 from the outsized growth of the last three years. Today's demand drivers are multi dimensional for the largest most diversified companies.

現在，在我們開始問答之前，請容許我先向大家介紹這一點，因為更廣泛的宏觀環境將在 2024 年明顯從過去三年的大幅成長中轉變。對於最大、最多元化的公司來說，當今的需求驅動因素是多維度的。

Her continues to outpace market growth by capitalizing on our increase, increasing market share pricing, leadership, broad product and services, portfolio, expanding branch network and team members dedicated to our company's purpose. And as we continue to gain a foothold in the fast growing mega project environment, roll out our operating system called E Three Os and improve our fleet efficiency. We are further elevating our competitive advantages, solidifying our path for sustainable long term growth with that operator. We'll take our first question.

她透過利用我們的成長、提高市場份額、定價、領導力、廣泛的產品和服務、投資組合、擴大分支機構網絡以及致力於公司目標的團隊成員，繼續超越市場成長。隨著我們繼續在快速成長的大型專案環境中站穩腳跟，推出我們名為 E Three Os 的作業系統並提高我們的車隊效率。我們正在進一步提升我們的競爭優勢，鞏固我們與該營運商實現可持續長期成長的道路。我們將回答第一個問題。

Thank you. We will now begin our question and answer session. If you have dialed in and would like to ask a question, please press star followed by the number one on your telephone keypad. If you would like to restore your question, simply press bar one again as a reminder. Please limit yourself to one question and one follow up. Only your first question comes from the line of Jerry Ravich from Goldman Sachs. Please go ahead.

謝謝。我們現在開始問答環節。如果您已撥入並想提問，請按星號，然後按電話鍵盤上的數字 1。如果您想恢復您的問題，只需再次按下欄一作為提醒即可。請限制自己提出一個問題並進行一項跟進。只有你的第一個問題來自高盛的傑瑞·拉維奇（Jerry Ravich）。請繼續。

Yes. Hi, good morning, everyone.

是的。嗨，大家早安。

Good morning, Jerry. How are you?

早安，傑瑞。你好嗎？

Good, good, thanks. I hope, I hope you're doing well too. Larry and team. I want to ask the the performance that you guys had in terms of fleet on rent was generally in line with the oec growth. So essentially time utilization flattish year over year. Can you just talk about with the dynamic of the hurricane that you mentioned in the fourth quarter or are we at a point where time utilization should be improving year over year in, in four Q and entering '25 just given that cadence mark, you know,

好，好，謝謝。我希望，我希望你也過得很好。拉里和團隊。我想問一下，你們在租賃機隊方面的表現總體上與東歐合作組織的成長一致。因此，時間利用率基本上與去年同期持平。您能否談談您在第四季度提到的颶風的動態，或者我們是否正處於時間利用率應該逐年提高的階段，在第四季度並進入 25 年，考慮到節奏標記，您知道,

Good question Jerry. I mean, there, there's a lot to unpack, there, there's a lot to unpack really in the quarter. And even as we sort of roll into four Q, I think that, you know, we certainly will expect some uplift from the hurricane. But I also think it's probably too early to sort of begin to pinpoint what that impact is in the quarter. And that's not necessarily avoiding your question. But the reality is, is we know where we are today, but, you know, the storms impacted three of our regions. And additionally, you know, the duration, there were two different storms really involved here and they were very different. And so I think as we sort of unpack and work our way through, we'll have a better feel for sort of the impacts on the uplift of time you. And the mix really, there's a, there's a large specialty component to that as well. But I think your first part of your question was, was reasonably in line. I think from a core perspective, you know, we achieved fleet efficiency. It's really the overhang from the M&A activity which was heavily weighted into the back end of Q2 and really into the front side of Q3. And So that was weighing on us in the quarter where about half the fleet growth in the quarter came from M&A

傑瑞，問得好。我的意思是，這個季度確實有很多東西要解開。即使我們進入了四個問題，我認為，你知道，我們肯定會期望颶風帶來一些提升。但我也認為現在開始確定本季的影響可能還為時過早。這並不一定會迴避你的問題。但現實是，我們知道我們今天在哪裡，但是，你知道，風暴影響了我們的三個地區。此外，你知道，在持續時間裡，這裡確實涉及了兩種不同的風暴，而且它們非常不同。因此，我認為，當我們解開並解決問題時，我們會對增加時間的影響有更好的感覺。確實，這種混合也有很大的專業成分。但我認為你問題的第一部分是合理的。我認為從核心角度來看，我們實現了機隊效率。這實際上是併購活動的懸而未決，它在第二季的後端和第三季的前端佔據了很大的比重。因此，這在本季度給我們帶來了壓力，本季機隊成長的一半左右來自併購

Super appreciate the color and then from a rate standpoint, looks like normally you folks have pricing that's up four Q versus three Q. So should we be thinking about the exit rate for pricing essentially in that low? Who's range and you know, at that level of pricing, I'm wondering if you folks are in a position given the cost structure to deliver stable margins as we think about what that means heading into '25.

非常欣賞這種顏色，然後從價格的角度來看，看起來通常你們的定價比三個Q要高出四個Q。那麼，我們是否應該考慮在如此低的定價下的退出率？誰的範圍，你知道，在這個定價水平上，我想知道你們是否能夠考慮到成本結構來提供穩定的利潤，因為我們正在考慮進入 25 年這意味著什麼。

Yeah, I mean, again, I think it's, it's sort of a marketplace that's sort of performing as we would expect it to. You know, I think, you know, the sequential improvement that we gained in Q3 was right in line with where we thought it was going to be and that sort of aligned to Q2 sequential as you work your way through Q4.

是的，我的意思是，我認為這是一個市場，其表現符合我們的預期。你知道，我認為，你知道，我們在第三季度獲得的連續改進與我們預期的情況一致，當你在第四季度工作時，這種改進與第二季度的連續改進是一致的。

You know, that movement generally, historically speaking has been a bit less than three and two really respectively, but I don't think directionally, Jerry not trying to get to pinpoint here directionally, I don't think you're, you're too far off in terms of the exit point out of four Q and into Q1 of 2025.

你知道，一般來說，從歷史上看，這一運動分別少於三個和兩個，但我不認為有方向性，傑裡沒有試圖明確指出這裡的方向，我不認為你是，你'就2025 年第四季和第一季的退出點而言，距離太遠了。

And I'm sorry, mark the cost part of that conversation is that level of rate enough to get you to stable to up margins given the inflationary picture.

很抱歉，請注意，對話的成本部分是，考慮到通貨膨脹情況，利率水準足以讓您穩定提高利潤。

Yeah, I mean, again, right? I mean, everything is sort of driven by the demand side of this, right, sort of driving into the fixed cost structure of our business. But again, all else being equal, that that's accurate.

是的，我的意思是，再說一遍，對嗎？我的意思是，一切都是由需求方驅動的，對的，有點推動我們業務的固定成本結構。但同樣，在其他條件相同的情況下，這是準確的。

Okay, thank you.

好的，謝謝。

Thank you.

謝謝。

Your next question comes from the line of Robert Wertheimer from research. Please go ahead.

你的下一個問題來自羅伯特‧韋特海默的研究。請繼續。

Thanks. Morning guys. There's, there's a lot of cross currents here, you know, progress on margin, fleet efficiency team, you know, improving and better. The, the the thing that surprised me a bit was the capex increase where I know you guys can grow and I know you got Greenfield when they got acquisitions and there's opportunity there. But I'm wondering is that a signal that the mega projects are rising enough to really absorb the fleet? Is that a signal that you see the industry being constrained by cost and cost and, and can't raise capex? I'm just a little bit curious about that because I might have, I might have guessed a slight trend as opposed to an increase.

謝謝。早安各位。這裡有很多交叉流，你知道，在利潤方面取得進展，機隊效率團隊，你知道，不斷改進，變得更好。讓我有點驚訝的是資本支出的增加，我知道你們可以成長，我知道當他們進行收購時你們會得到格林菲爾德，那裡有機會。但我想知道這是否是一個信號，表明大型項目正在崛起，足以真正吸收船隊？這是一個信號，表明您認為該行業受到成本和成本的限制，並且無法提高資本支出嗎？我只是對此有點好奇，因為我可能猜測到了輕微的趨勢，而不是增加。

Hey, Rob. Yeah, good question. This is Erin. You know, as you saw, we raised the guidance on the revenue. So our revenue view for the year is stronger than it was through three quarters, we actually bought less fleet than we did a year ago. And that'll be the case when we finish the year, but it's really matching up the fleet mix, the needs of our customers, primarily in the Meg arena where we need to kind of go to the high end of that guidance. And that's kind of what our view is on our, our capex for the end of the year. So it's really fleet that's still going to come in the remaining of the year, but it's really revenue that will be generated as we go through the quarter and into the first part of next year.

嘿，羅布。是的，好問題。這是艾琳。您知道，正如您所看到的，我們提高了收入指引。因此，我們對今年的收入預期比前三個季度要強，我們實際上購買的機隊比一年前要少。當我們今年結束時，情況就會如此，但這確實符合機隊組合和客戶的需求，主要是在 Meg 領域，我們需要達到該指導的高端。這就是我們對年底資本支出的看法。因此，今年剩下的時間仍然會出現車隊，但隨著我們進入本季和明年上半年，真正會產生收入。

And, and I think Rob may maybe just to add on to that. Right? I think we'd be having a different conversation if we hadn't achieved fleet efficiency through the first nine months of the year, I, I don't think we'd be having the conversation. So, you know, I think at the end of the day, right, it, customer demand is sort of driving this and we're meeting those demands.

而且，我認為羅布可能只是對此進行補充。正確的？我認為，如果我們在今年前九個月沒有實現機隊效率，我們將會進行不同的對話，我，我認為我們不會進行這樣的對話。所以，你知道，我認為歸根結底，客戶需求在某種程度上推動了這一點，我們正在滿足這些需求。

Okay. That's helpful. And I'm sorry for this basic question, but could you just give us the exact definition on fleet efficiency? I'm not sure where s lease or, or, or anything else falls out of that.

好的。這很有幫助。我對這個基本問題感到抱歉，但是您能給我們車隊效率的確切定義嗎？我不確定租約或，或，或其他任何東西都在哪裡。

Yeah. No, completely fair. It's really just our challenge to get revenue growth ahead of fleet growth. So when you unpack that externalities, right? So you unpack that in the quarter, top level, it looks like you were fleet inefficient, right? Because you grew at '11 8 versus fleet growth of '12 3. If you unpack that to the M&A piece, the M&A piece was inefficient while the organic piece was efficient.

是的。不，完全公平。在機隊成長之前實現收入成長確實是我們面臨的挑戰。那麼當你解開外部因素時，對吧？因此，您在本季的頂層進行了分析，看起來您的車隊效率低下，對嗎？因為您的成長是在 11 8 年，而機隊成長是在 12 3 年。如果你將其分解為併購部分，你會發現併購部分效率低下，而有機部分則是高效。

I got you. Okay. That actually, that, that helps. Thank you. I'll turn it over to somebody else.

我接到你了。好的。實際上，那有幫助。謝謝。我會把它交給別人。

Your next question comes from the line of Steven Ramsey from Thompson Research Group. Please go ahead.

您的下一個問題來自湯普森研究小組的史蒂文拉姆齊。請繼續。

Good morning. O on the mega projects as you make progress capturing that opportunity with, with market share, that's well above your total rental market share. What have you learned as you've gotten into this as far as the competitive nature of these jobs as they ramp activity? It seems like more fleet types are being used at, at this point in the opportunity as they mature, just curious, your learning and, and if you think the market share you've achieved, if there's even upside to that,

早安.O 在大型專案上，當您在抓住機會方面取得進展時，其市場份額將遠高於您的總租賃市場份額。當您進入這個行業時，您從這些工作隨著活動的增加而具有的競爭性質中學到了什麼？似乎更多的機隊類型正在被使用，在它們成熟的機會中，只是好奇，你的學習，如果你認為你已經獲得的市場份額，如果有的話，

The market share that we achieve is kind of what we set out to achieve, you know, a multiple of our current market share of, you know, three or four times. So we're happy where we are. You won't remain to be seen if that expands, but that's kind of how we've strategically gone after the opportunities. You know, in the mega arena, what you find is that you know, they, they end up going into a variety of markets and the local players, you know, they get pieces of that because they, they're there, they got available fee fleet but what the contractors really want is they want companies that have scale enough to deliver large volumes of fleet. They want technology, they want a, you know, young fleet and they want a safety program so that your employees and their employees are in a safe environment. So those are the three or four critical pieces that, is required by the large customers.

我們實現的市場份額是我們計劃實現的目標，是我們目前市場份額的三到四倍。所以我們很高興我們現在的處境。如果這種情況擴大，你將不會再有待觀察，但這就是我們策略性地抓住機會的方式。你知道，在大型競技場中，你發現你知道，他們，他們最終進入了各種市場，而本地參與者，你知道，他們得到了其中的一部分，因為他們，他們在那裡，他們得到了可用的收費車隊，但承包商真正想要的是他們希望公司有足夠的規模來交付大量車隊。他們想要技術，他們想要一支年輕的車隊，他們想要一個安全計劃，以便您的員工和他們的員工處於安全的環境中。這些是大客戶需要的三到四個關鍵部分。

Yeah. Additionally, I think, Steve, it's important for, you know, any of the people that are really sort of in the mix in a big way to have a strong specialty offering the fleet, that they can supplement the core fleet with. And I think that is certainly helping us in, in maximizing our, our capability and our penetration with these accounts.

是的。此外，我認為，史蒂夫，對於任何真正在大範圍內參與其中的人來說，擁有強大的專業能力來提供艦隊，這是很重要的，他們可以補充核心艦隊。我認為這肯定有助於我們最大限度地發揮我們的能力和對這些帳戶的滲透。

Okay. That's helpful. And then on the improved used channel sales mix, what inning are we in on volume moving through these channels? And then secondly, what inning are you in on the operating efficiency of this activity? Just as you, as you learn how to operate better in a scale? Thanks.

好的。這很有幫助。然後，在改進的二手通路銷售組合方面，我們在透過這些管道的銷售方面處於什麼階段？其次，您認為這項活動的運作效率是第幾局？就像你一樣，當你學習如何在規模上更好地運作時？謝謝。

Yeah, we're definitely in the early innings of kind of transitioning to the retail wholesale channel mix for us. It's really, this is the first full year we've in delivering on that. And, we're getting the, the, you know, our teams focused on it from our sales force and our marketing team. So it's early for us and we think that, you know, over the next two or three years that, that mix of youth equipment sales will just continue to, come in higher and we like that because we know that'll give us a higher proceeds as we exit each quarter.

是的，我們肯定正處於向零售批發通路組合轉型的早期階段。確實，這是我們實現這一目標的第一個全年。而且，我們的銷售團隊和行銷團隊正在重點關注這個問題。所以對我們來說現在還為時過早，我們認為，你知道，在接下來的兩三年裡，青年裝備的銷售組合將繼續上升，我們喜歡這樣，因為我們知道這會給我們帶來更高的收入。

Excellent. Thank you.

出色的。謝謝。

Next question comes from the line of Neil Tyler from Redburn Atlantic. Please go ahead.

下一個問題來自 Redburn Atlantic 的 Neil Tyler。請繼續。

Hey, good morning guys. First question, first question. Just on, on, on the rate increase, I think pre previously, once or twice, you've given us a bit of a sort of breakout of differing trends within the number that you report between. You know, some of the short term, you know, rate trends and longer term or, or sort of local and national. And what, you know, so I wonder if you could do that and within that, perhaps discuss how the change in mix ie you know, that the growth in Megas has has impacted that that 2.2 0.3% number and then I may have missed this earlier, but on the on fleet efficiency, when you're describing the sort of outlook there, can you help us in the context of your, you know, your medium term targets and medium term sort of capex guide that you presented at the investor event last year. You know, where are we on that path? You know, given the, given the capex guidance you've given today for sort of '25 and '26. And is it the right assumption from your comments that fleet efficiency improves sort of year on year on year over the next two years, as well as, as well as into the back of this year. Thanks.

嘿，早上好，夥計們。第一個問題，第一個問題。就在利率上升的問題上，我認為之前有一兩次，您已經向我們提供了您報告的數字中不同趨勢的突破。你知道，一些短期的利率趨勢和長期的，或某種地方和全國的趨勢。你知道嗎，所以我想知道你是否可以做到這一點，並且在此範圍內，也許可以討論一下組合的變化，即你知道，巨型的增長如何影響了2.2 0.3% 的數字，然後我可能錯過了這個早些時候，但在機隊效率方面，當您描述那裡的前景時，您能否幫助我們了解您向投資者提供的中期目標和中期資本支出指南去年的活動。你知道，我們在這條路上處於什麼位置？你知道，考慮到你今天給予的 25 年和 26 年的資本支出指引。從您的評論來看，機隊效率在未來兩年以及今年下半年將逐年提高，這是正確的假設嗎？謝謝。

Let me take the, let me take the rate question first. Sort of the, so let's talk about non contract versus contract. I would tell you that both of them are performing as expected. I think that the spot market is stable. You know, the break between those will pass on sort of giving that. But I would tell you sort of big picture performing as expected. And like I said, you know, we got sort of a sequential price list, you know, in line with Q2's 60 points. And so, you know, I think performing as we would intend, remember, right, we're trying to cover off inflation and grab a premium for the service that we provide. And that's, you know, that's our goal and that's our intent as it relates to efficiency. And I'm, I'm, I'm now blanking on the specifics of what you wanted me to cover there from an efficiency perspective, right? And then in context of the, of the goals that we laid out at the end of 2023 I think it's too early to sort of align where we are today with where that three year Mark would have had us obviously, even inside of that plan, you know, fleet efficiency was the expectation. I think that the marketplace in and of itself has changed fairly significantly from the time that we rolled that out to what we're operating in today. And so I think there's a bit of a wait and see there as these interest rates take hold. You know, how quickly developers put activity back online into these local markets. And I think, you know, as that demand shows we'll be ready to, to capitalize on it, but we're not going to speculate there and, and buy in advance of that. I think the health of the OEM certainly supports. You know that play.

讓我先回答一下費率問題。是的，所以讓我們來談談非合約與合約。我會告訴你，他們兩個的表現都符合預期。我認為現貨市場穩定。你知道，這些之間的間隔將會持續下去。但我會告訴你整體情況符合預期。就像我說的，你知道，我們有一個連續的價格表，你知道，與第二季的 60 點一致。所以，你知道，我認為按照我們的預期行事，記住，對吧，我們正在努力抵消通貨膨脹並為我們提供的服務獲取溢價。你知道，這就是我們的目標，這就是我們與效率相關的意圖。我，我，我現在對您希望我從效率角度介紹的具體內容空白，對嗎？然後，就我們在 2023 年底制定的目標而言，我認為現在將我們今天的處境與馬克三年的目標相一致還為時過早，即使是在該計劃之內，你知道，機隊效率是人所期望的。我認為，從我們推出該產品到今天我們經營的市場，市場本身已經發生了相當大的變化。因此，我認為隨著這些利率的確立，人們需要等待一段時間。您知道，開發商將活動重新帶回這些本地市場的速度有多快。我認為，你知道，正如需求表明我們將準備好利用它，但我們不會在那裡進行投機，並提前購買。我認為 OEM 的健康狀況肯定會得到支持。你知道那場戲。

That's great.

那太棒了。

Thank

感謝

You.

你。

Your next question comes from the line of Tammy Zakaria from JP Morgan. Please go ahead.

您的下一個問題來自摩根大通的 Tammy Zakaria。請繼續。

Hi, good morning. Thank you so much for the opportunity. So my first question is, are you able to comment on growth in specialty versus general rent you saw in the quarter relative to the overall 7.3% organic growth? I think, I think you said you saw in the, in the quarter for rental revenues. I'm just trying to understand specialty versus rental performance in the quarter.

嗨，早安。非常感謝您給我這個機會。所以我的第一個問題是，您能否評論一下您在本季度看到的專業租金與一般租金相對於整體 7.3% 有機增長的增長情況？我想，我想你說過你在本季看到了租金收入。我只是想了解本季的專業與租賃表現。

Yeah, I mean, we, we don't specifically break that out. I mean, I think generally speaking, you know, specially grew at double digits, but we won't get any more pointed than that. It's certainly a tailwind for us and performing extremely well as we work our way through the back half of the year.

是的，我的意思是，我們，我們並沒有具體說明這一點。我的意思是，我認為一般來說，你知道，特別以兩位數增長，但我們不會得到比這更尖銳的信息。這對我們來說無疑是一股順風，在我們下半年的工作中表現得非常出色。

Got it. That is super helpful. Thanks for the color. And then my next question is, I think you mentioned local account revenues increased in the quarter due to acquisitions in Greenfield. Are you able to quantify or give directional commentary around the organic growth in, in local accounts? X these Greenfield and acquisitions in the quarter. I'm just trying to understand how local markets did in three Q versus the prior two quarters. Is there any stabilization going on or things got forced? So any color there would be helpful?

知道了。這非常有幫助。謝謝你的顏色。然後我的下一個問題是，我認為您提到由於格林菲爾德的收購，本季度本地帳戶收入有所增加。您能否對本地帳戶的有機成長進行量化或給予方向性評論？X 本季的新建案和收購案。我只是想了解本地市場在第三季與前兩季的表現如何。是否有任何穩定的情況發生或事情是被迫的？那麼任何顏色都會有幫助嗎？

Certainly, I, I think no, I mean, in, in terms of getting that pointed to, you know, local market growth versus national growth, I mean, obviously, you know, we grew organically somewhere in that plus 7% range. I, I would tell you that the color is, is that sort of the local market behavior coming out of Q2 is really what we experienced in Q3. So I would say to you from a color perspective, stabilized as we worked our way through Q3 as we had anticipated coming out of Q2.

當然，我，我認為不，我的意思是，就這一點而言，你知道，本地市場成長與全國成長相比，我的意思是，顯然，你知道，我們有機成長在7% 以上的範圍內。我想告訴你，第二季的本地市場行為確實是我們在第三季所經歷的。因此，我想從顏色的角度對您說，隨著我們在第三季的工作，正如我們預期的那樣，從第二季開始穩定下來。

Got it. Thank you.

知道了。謝謝。

Your next question comes from the line of Ken Newman from Keyban capital markets. Please go ahead.

您的下一個問題來自 Keyban 資本市場的 Ken Newman。請繼續。

Hey, good morning guys. Thanks for taking the question.

嘿，早上好，夥計們。感謝您提出問題。

Good morning.

早安.

Morning.

早晨。

You know, I just wanted to touch on the updated guidance this morning. Mark, I think it does imply four Q core E dot rental margins in the low to mid 50% range. Obviously, that's a decent step up from both last year and last quarter. I know there's a lot of moving pieces here, whether it's, you know, the hurricane impact or maybe some better volume of absorption. But I was curious if you could just help us provide a bridge from three Q to four Q on those various buckets on, you know, what helps you kind of get to that midpoint.

你知道，我只是想談談今天早上更新的指導。馬克，我認為這確實意味著四個 Q 核心 E 點的租金利潤率在 50% 的中低範圍內。顯然，這比去年和上季都有了很大的進步。我知道這裡有很多變化，無論是颶風的影響還是更好的吸收量。但我很好奇你是否可以幫助我們在這些不同的桶子上提供從三個 Q 到四個 Q 的橋樑，你知道，什麼可以幫助你到達那個中點。

Well, I mean, I think, you know, generally speaking, if you look at, you know, sort of 3 to 42 historically, you know, those have performed at reasonably, the same levels, give or take sometimes a three out, performs a four and sometimes a four out performs a three.

嗯，我的意思是，我想，你知道，一般來說，如果你看看歷史上的 3 到 42 名球員，你知道，這些球員的表現相當合理，水平相同，有時會出三分，執行四，有時四勝過三。

But, but I think, you know, as we walk into four Q, you're not wrong, there's going to be a bit of, hurricane list there to be determined, but I think it's more around sort of the cost actions that we've taken that we, we talked about in Q2.

但是，但我認為，你知道，當我們進入四個問題時，你沒有錯，將會有一些颶風清單待確定，但我認為這更多是圍繞我們採取的成本行動我們在第二季度討論過這一點。

And then obviously, you know, the demand components that we've talked about, there's a lot of moving parts underneath that. But I think, you know, that sort of gives us, the sort of confidence to talk through it in the way that we have. I think the other piece of this is, is that if you look at four Q 2023 a bit of an easier comp than 32 2023. So I think all of that sort of relative, put all of that into the mix and that's sort of where you fall out.

顯然，你知道，我們討論過的需求組件，其下面有很多移動部件。但我認為，你知道，這給了我們以我們現有的方式討論這個問題的信心。我認為另一件事是，如果你看看 2023 年 4 季度的比賽，會比 2023 年 32 季度的比賽更容易一些。所以我認為所有這些都是相對的，把所有這些都放在一起，這就是你失敗的地方。

Okay. Got it. So is it fair to say that just levels of magnitude from a higher, you know, 30,000 ft type of view? It's, it's more so the the cost actions maybe levering SG&A more so than a mixed benefit from hurricanes at this point.

好的。知道了。那麼，可以公平地說，這只是從更高（你知道的，30,000 英尺）視角觀察到的震級水平嗎？更重要的是，成本行動可能比颶風帶來的混合效益更能撬動SG&A。

Okay?

好的？

To be determined. You know, I think, I think we, we, we had to put this together with a bit of one arm tied behind our back, right? Because we were, you know, halfway through the 1st month of a significant amount of, of hurricane disruption. But, but I think all else being equal, you're not wrong.

待定。你知道，我想，我想我們，我們，我們必須把它放在一起，一隻手臂綁在背後，對嗎？因為，你知道，我們正經歷大量颶風破壞的第一個月的一半。但是，但我認為在其他條件相同的情況下，你並沒有錯。

Yeah, a little too early to tell, you know, on the hurricane, you know, two different types of hurricanes, different fleet mix for the two hurricanes depends on, you know, the length or duration of gear on rent for that. And, you know, I think what we've done is use our, you know, our best estimates based upon the past, but again, too early to tell.

是的，現在說還為時過早，你知道，關於颶風，你知道，兩種不同類型的颶風，兩種颶風的不同機隊組合取決於，你知道，租賃裝備的長度或持續時間。而且，你知道，我認為我們所做的是使用我們基於過去的最佳估計，但同樣，現在下結論還為時過早。

Yes. Got it and then just quickly on my my follow up here. You know, look, I, I know you're not ready to give '25 guidance yet, but, you know, I think you are in the process potentially of, of securing build plots for new for delivery next year, just given what you're seeing at this point in time. Is it fair to assume that you expect to drive fleet growth beyond replacement of 2025?

是的。明白了，然後就快速跟進我的情況。你知道，聽著，我，我知道你還沒有準備好提供 25 年的指導，但是，你知道，我認為你可能正在為明年交付新的建築地塊做好準備，只要考慮到什麼你現在看到的。您期望在 2025 年更換後推動機隊成長，這樣的假設是否公平？

You know, I, I think it's a little too early to sort of say that I think what we are doing is looking at replacement capex first and looking at mega project requirements that stem from that and then look at cross selling opportunities at our acquisitions and where we need to fill and gravitate that towards those to make those, you know, acquisitions reach the multiples that Aaron talked about. So I think those are our top three priorities and our field is, you know, working on that together with our fleet team. And, but, you know, it'll be a minimum at least a replacement capex, which, you know, we replace the fleet, you know, on a 7 to 8 year average. So sort of take our, our six, our 6.9 billion or 6.8 billion of core fleet. And, you know, that's about, you know, 1/7 or 1/8 of that will be a minimum.

你知道，我認為現在說我們正在做的事情是首先考慮替代資本支出並考慮由此產生的大型項目需求，然後考慮收購和收購中的交叉銷售機會還為時過早。將其吸引到那些使這些收購達到亞倫談到的倍數的地方。所以我認為這些是我們的三大優先事項，我們的領域正在與我們的車隊團隊一起努力解決這個問題。而且，但是，你知道，這至少是更換資本支出，你知道，我們平均更換機隊 7 到 8 年。以我們的、我們的六個、我們的 69 億或 68 億核心機隊為例。而且，您知道，這大約是至少 1/7 或 1/8。

Understood. Thanks Larry.

明白了。謝謝拉里。

Your next question comes from the line of Sheriff Al Sabahi. From Bank of America. Please go ahead.

你的下一個問題來自警長阿爾·薩巴希。來自美國銀行。請繼續。

Hi, good morning. I just wanted to touch on flow through. Understand, third quarter is impacted by the local slow down in M&A and greenfields guide seems to imply similar flow through in Q4 to Q3, but just give them the pace of M&A and your current market visibility. How should we think about flow through going forward? Particularly if you maintain a similar pace of M&A next year as you have this year.

嗨，早安。我只是想談談流程。請理解，第三季度受到當地併購放緩的影響，綠地指南似乎意味著第四季度至第三季度的流量類似，但只需告訴他們併購的步伐和當前的市場能見度。我們該如何思考未來的流量？特別是如果明年的併購步伐保持與今年相似的話。

Good, good question. Obviously, there's a, there's a lot of moving parts here, right? Sort of the larger component of, of, of rev growth coming from M&A just sort of making it immature by its very nature. And the challenging local market slow down. You know, I think, you know, when you, when you look at at at '23 right, that was a margin, expanding year, right? We, we moved revit on margin 160 basis points in 2023 which implied extremely heavy flow throughs or incremental margin if you will, you know, we're in a different environment now, right? Cost actions are, are coming through to sort of hold margin. I, I would tell you that sort of given the comp of 2023 fourth quarter that I would anticipate that the flow through in four Q 2024 will be better than three Q 2020

好，好問題。顯然，這裡有很多活動部件，對吧？收入成長的較大部分來自併購，這使其本質上不成熟。充滿挑戰的當地市場放緩。你知道，我想，你知道，當你看 23 年時，那是一個邊緣、擴張的一年，對嗎？我們，我們在 2023 年將 Revit 的利潤率提高了 160 個基點，這意味著極其大量的流量或增量利潤，如果你願意的話，你知道，我們現在處於不同的環境中，對嗎？成本行動正在透過某種方式保持利潤。我，我會告訴你，考慮到 2023 年第四季的業績，我預計 2024 年第四季的流量將好於 2020 年三個季度

Four.

四。

Understood. And are you able to kind of give us an idea of the magnitude of the impact from M&A and Greenfield versus the slow down in the third quarter

明白了。您能否讓我們了解併購和綠地開發與第三季經濟放緩的影響程度

In the quarter. I mean, no, I mean, I, I mean, again, I mean, it's sort of just in the, it's just in the, it's just in the cake. Right. I mean, it's, it's there. It is sort of, it's just right now, right. The M&A piece of this where that's generally sort of been in the, you know, mid 20s to 30s is sort of ranging into that 40% of your your rev growth contribution. Just given M&A timing.

在本季度。我的意思是，不，我的意思是，我，我的意思是，我的意思是，它就在，它就在，它就在蛋糕裡。正確的。我的意思是，它就在那裡。有點，現在就是這樣，對吧。併購部分通常發生在 20 多歲到 30 多歲之間，佔您的營收成長貢獻的 40%。剛剛給了併購時機。

Understood. Thank you.

明白了。謝謝。

Your next question comes from the line of Meg Aubrey from baard. Please go ahead.

您的下一個問題來自 baard 的 Meg Aubrey。請繼續。

Yes, good morning. Thank you for taking the questions. Larry maybe just clarification here. Your comment on slide '19 concerning guidance mentions that there there is some contribution from, from hurricane. Is this, is this you essentially baking in sort of an average hurricane or weather event into this guide? With, with your, your comments early during the deck pointing to potential upside? So if these hurricanes are worse than average, then that would be the source of upside or is it that the guidance just does not reflect really any contribution at this point? Because you don't know how to size it. I'm I'm just looking to clarify that.

是的，早安。感謝您提出問題。拉里也許只是在這裡澄清一下。您對幻燈片 '19 有關指導的評論提到，颶風做出了一些貢獻。這是，您本質上是在本指南中以某種平均的颶風或天氣事件的形式烘焙的嗎？您在牌組早期的評論指出了潛在的上漲空間嗎？因此，如果這些颶風比平均水平更嚴重，那麼這將是上行空間的來源，還是指導意見目前並未反映出真正的任何貢獻？因為你不知道如何調整它的大小。我只是想澄清這一點。

Yeah, I would say we've baked in, just what has been a historical normal average at this point. Nothing more, nothing less. And you know, that and it's not the only thing contributing to the upside in Q4. So it's just one of the components for Q4 and not, you know, significantly impacting the upside.

是的，我想說我們已經適應了，這正是目前的歷史正常平均值。不多不少。你知道，這並不是促成第四季上漲的唯一因素。因此，這只是第四季度的組成部分之一，並且不會對上行產生重大影響。

Okay. Because that was going to be my, my, my second question on the revenue guidance raise. What sort of drove that give or take 50 million of the raise? And you know, how come, I guess we're not seeing more of an impact on EBITA, both from the revenue and also from the incremental M&A that you guys have done this year. Thank you.

好的。因為這將是我、我、我關於收入指導提升的第二個問題。是什麼樣的驅動力導致了 5000 萬美元的加薪？你知道，為什麼，我想我們沒有看到對 EBITA 的更多影響，無論是來自收入還是來自你們今年所做的增量併購。謝謝。

But I think we, we talked about why there's an impact on the EBITA.

但我認為我們討論了為什麼會對 EBITA 產生影響。

We do have some drag from acquisitions and Greenfield particularly because they're more local market focused and they're not up to get the margins that are our existing locations are and it takes, you know, an '18 to '24 month period to do that. So, you know, I don't think if there's, I'll let mark comment on the first part of your question.

我們確實受到了收購和綠地項目的一些拖累，特別是因為他們更注重本地市場，而且他們無法獲得我們現有地點的利潤率，而且你知道，這需要 18 到 24 個月的時間才能實現。做。所以，你知道，我認為如果有的話，我會讓馬克對你問題的第一部分發表評論。

Yeah, I mean, there's a, there's a fair number of tailwinds that sort of have worked their way through the back half of the year. Mig you know, one of those, it is just the, the mega project growth, you know, as you think about that year, over year. You know, that has performed as we had anticipated, it had anticipated it through the first three quarters. And you know that anticipation into four Q is also one of those levers that's being pulled as we think about our growth components for rev in four Q.

是的，我的意思是，今年下半年有相當多的順風車。Mig，你知道，其中之一，就是大型專案的成長，你知道，當你回想起那一年，一年又一年。你知道，它的表現正如我們預期的那樣，在前三個季度都是如此。你知道，當我們考慮四個季度的營收成長成分時，對四個季度的預期也是被拉動的槓桿之一。

Okay. Understood. Thank you.

好的。明白了。謝謝。

As there are no further questions at this time, I would like to turn the call over back to li for closing remarks.

由於目前沒有其他問題，我想將電話轉回給李進行總結發言。

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.

感謝您加入我們的通話。今天。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。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您可以