Kyle Mengas

Kyle Mengas asked if any noteworthy or unexpected findings have emerged from the efficiency reviews now that Herc Holdings Inc. is operating on a single platform. He also requested an update on dissynergies, salesforce stabilization, and early revenue synergies.

Answer

Mark Humphrey, SVP and CFO, stated that it's still early innings for efficiency reviews, focusing on aligning KPIs and running the established playbook without significant surprises. Larry Silber, President and CEO, added that substantial training and education are still underway. Larry Silber also confirmed that sales organization attrition has stabilized at or below normalized Herc levels, with most positions backfilled by internal talent. Aaron Birnbaum, SVP and COO, noted that revenue synergies are in early stages, with good traction from introducing specialty products to former H&E customers.

Kyle Mengas inquired about any noteworthy or unexpected findings from the efficiency reviews initiated after Herc Holdings Inc. completed its systems integration. He also sought an update on dissynergies and synergies, specifically asking about confidence in dissynergies being behind them, salesforce stabilization, success in rehiring, and early revenue synergy observations.

Answer

Mark Humphrey, SVP and CFO, indicated it's still early innings for efficiency reviews, which just completed at the end of Q3. He noted that the process involves aligning Herc's operational KPIs with the newly formed territories on the consolidated platform, expecting no surprises but rather the execution of their playbook for efficiency. Larry Silber, President and CEO, confirmed that sales organization attrition has stabilized at or below normalized Herc levels, with most vacancies filled by internal 'black and gold' team members. Aaron Birnbaum, SVP and COO, added that early revenue synergies are being observed, with H&E customers embracing Herc's broader specialty product offerings, though significant work remains.