Hertz Reports Year-over-Year Improvement

Hertz Global Holdings Inc. reported fourth quarter 2009 worldwide revenues of $1.7 billion, a decrease of 2.7 percent year-over-year (a 6.5 percent decrease in constant currency). Worldwide car rental revenues for the quarter increased 3.4 percent (a 0.6 percent decrease in constant currency) to $1.5 billion. Revenues from worldwide equipment rental for the fourth quarter were $274.0 million, down 26.1 percent (a 28.9 percent decrease in constant currency) over the prior year period.

Fourth quarter 2009 adjusted pre-tax income was $39.2 million, versus adjusted pre-tax loss of $103.7 million in the same period in 2008, and loss before income taxes ("pre-tax loss"), on a GAAP basis, was $67.4 million, versus $1,446.2 million in the fourth quarter of 2008.

The fourth quarter of 2008 included a non-cash impairment charge of $1,168.9 million relating to our goodwill, other intangible assets and property and equipment. Corporate EBITDA for the fourth quarter of 2009 was $221.0 million, an increase of 89.1 percent from the same period in 2008.

Fourth quarter 2009 adjusted net income was $22.5 million, versus a loss of $73.0 million in the same period of 2008. Fourth quarter 2009 net loss, on a GAAP basis, was $30.9 million, compared with a net loss of $1,218.0 million for the fourth quarter of 2008.

Mark P. Frissora, Hertz’s Chairman and Chief Executive Officer, said, "Our strong performance in the fourth quarter of 2009 was based on continued improvement in the U.S. car rental business, our largest market, and sustained progress throughout the year to develop new revenue sources and further reduce overall costs.

“For the full year 2009, we cut costs by $760 million, and by over $1.2 billion from 2007 through 2009. We also generated over $170 million of incremental revenues last year from new products and services, which helped offset recession-related pressure on our core businesses. In 2010, we expect to take more costs out of our business processes, further develop new revenue sources, and open over 150 new rental locations in the U.S. and internationally."

Hertz took $34.5 million in restructuring and related charges in the fourth quarter of 2009, primarily attributable to costs associated with job reductions, the closure of rental locations and process reengineering. Hertz said it expects restructuring and related charges to diminish significantly throughout 2010.

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