HERC HOLDINGS (HTZ) has reported 85.58 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $3 million, or $0.11 a share in the quarter, compared with $20.80 million, or $0.69 a share for the same period last year.
Revenue during the quarter dropped 6.53 percent to $403.60 million from $431.80 million in the previous year period. Gross margin for the quarter contracted 90 basis points over the previous year period to 29.09 percent. Total expenses were 90.54 percent of quarterly revenues, up from 89.90 percent for the same period last year. That has resulted in a contraction of 63 basis points in operating margin to 9.46 percent.
However, the adjusted EBITDA for the quarter stood at $152.10 million compared with $160.10 million in the prior year period. At the same time, adjusted EBITDA margin improved 61 basis points in the quarter to 37.69 percent from 37.08 percent in the last year period.
"We continued to make good progress on our strategic initiatives in our first quarter as a stand-alone public company and remain confident that we are on track to achieve our long term operational and financial performance targets," said Larry Silber, president and chief executive officer. "Of note, for the third quarter, in our key markets we achieved rental revenue growth of 7.2% and realized improved pricing of 1.8%.
Operating cash flow falls marginallyHERC HOLDINGS has generated cash of $370.90 million from operating activities during the nine month period, down 1.62 percent or $6.10 million, when compared with the last year period. The company has spent $240.50 million cash to meet investing activities during the nine month period as against cash outgo of $464 million in the last year period.
The company has spent $94.60 million cash to carry out financing activities during the nine month period as against cash inflow of $74.70 million in the last year period.
Cash and cash equivalents stood at $51.90 million as on Sep. 30, 2016, down 89.80 percent or $457.10 million from $509 million on Sep. 30, 2015.
Working capital turns negative
Working capital of HERC HOLDINGS has turned negative to $2.40 million on Sep. 30, 2016 from positive $1,139 million on Sep. 30, 2015. Current ratio was at 0.99 as on Sep. 30, 2016, down from 1.50 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 77 days for the quarter from 15 days for the last year period. Days sales outstanding went down to 191 days for the quarter compared with 321 days for the same period last year.
Days inventory outstanding has decreased to 4 days for the quarter compared with 21 days for the previous year period. At the same time, days payable outstanding went down to 272 days for the quarter from 357 for the same period last year.
Debt comes down significantlyHERC HOLDINGS has recorded a decline in total debt over the last one year. It stood at $2,139.90 million as on Sep. 30, 2016, down 87.12 percent or $14,469.10 million from $16,609 million on Sep. 30, 2015. Short-term debt stood at $15.50 million as on Sep. 30, 2016. Total debt was 59.81 percent of total assets as on Sep. 30, 2016, compared with 67.60 percent on Sep. 30, 2015. Debt to equity ratio was at 6.07 as on Sep. 30, 2016, down from 7.10 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 1.18 for the quarter from 4.69 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
