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

Operator: And we’ll move next to Mig Dobre at Baird.

Mig Dobre: Yes. Thanks. Good morning. And 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.

Larry Silber : 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.

Mig Dobre: 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? Thank you.

Larry Silber : 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 three 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 two years, and we’ll be able to share more of that with you on November 2 at our Investor Day.

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

Leslie Hunziker: 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.

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