- Total revenue of $2.187 billion, including rental revenue of $1.861 billion.
- Fleet productivity decreased 8.0 percent year-over-year, reflecting the impact of Covid-19 on volumes; fleet productivity improved sequentially by 560 basis points, primarily due to better fleet absorption.
- Net income of $208 million, implying a net income margin of 9.5 percent.
Summary of Third Quarter 2020 Financial Results
- Rental revenue for the quarter was $1.861 billion, reflecting a decrease of 13.3 percent year-over-year. Rental volumes improved sequentially in each month in the quarter, consistent with normal seasonality.
- Fleet productivity for the quarter decreased 8.0 percent year-over-year, mainly due to lower rental volumes. Fleet productivity improved by 560 basis points sequentially, primarily reflecting better fleet absorption.
- Used equipment sales in the quarter generated $199 million of proceeds at a GAAP gross margin of 38.2 percent and an adjusted gross margin of 44.2 percent; this compares with $198 million at a GAAP gross margin of 38.4 percent and an adjusted gross margin of 46.0 percent for the same period last year. Used equipment proceeds in the quarter were approximately 51.4 percent of original equipment cost ("OEC"), compared to 53.2 percent in the year-ago period.
- Net income for the quarter decreased 46.8 percent year-over-year to $208 million, while net income margin decreased 620 basis points to 9.5 percent. Net interest expense increased $131 million year-over-year primarily due to a loss of $159 million associated with the note redemptions made by the company during the quarter, partially offset by decreases in average debt and the average cost of debt.
- General rentals segment had a 15.3 percent year-over-year decrease in rental revenue to $1.391 billion for the quarter. Rental gross margin decreased by 190 basis points to 39.0 percent, with 220 basis points of the margin decline due to depreciation expense, which increased as a percentage of revenue.
- Specialty rentals segment, or Trench, Power and Fluid Solutions, rental revenue decreased 6.9 percent year-over-year to $470 million for the quarter. Rental gross margin increased by 110 basis points to 49.8 percent.
