Bonita Springs-based equipment rental supplier Herc Holdings reported a net income of $113 million in the third quarter of 2023, up 18% from the same period in 2022, according to an earnings report.
Total revenues increased 22% to $908 million compared to $745 million in the prior-year period. The year-over-year increase of $163 million was primarily related to an increase in equipment rental revenue of $59 million, reflecting positive pricing of 6.9% and increased volume of 11.5%, partially offset by an unfavorable mix driven by the studio entertainment business and inflation.
The company retained Goldman Sachs & Co. as its financial advisor to assist with the possible sale of its Cinelease studio entertainment and lighting and grip equipment rental business. It cited a shift in the film and entertainment industry to a studio-centric model where owning or managing a large footprint of studios is becoming essential to being a competitive equipment rental provider, requiring significant investment in fully managed studios.
The company will continue to provide equipment rentals, other than lighting and grip equipment, to the film and entertainment industry through Herc Entertainment Services, which includes aerial equipment, forklifts, carts, generators and climate solutions.
