Herc Holdings Inc. (NYSE:HRI) Q3 2023 Earnings Call Transcript

Larry Silber : 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 three 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. And I would say we’ll revert to that with the exception of the couple of categories that we mentioned, the [inaudible] word 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.

Operator: We’ll move next to Ken Newman at KeyBanc Capital Markets.

Ken Newman: Hi, good morning, guys. 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.

Aaron Birnbaum: 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 three 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.

Ken Newman: 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 just any thought or color on how you think about just how tough the environment could be for sale in the near term, if that’s even possible, just with the funding rate environment. And also just if I think about the prior guide, I think we tried 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.

Larry Silber : Yes, I’ll take the first part of that. And then I’ll let Mark address the financial side of that give you some more detail can fill up, 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 its service excellence within the TV and film industry. 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–?