Hertz Clarifies Total Revenue per Transaction Day Calculation

This week, Hertz Global Holdings Inc. provided additional information regarding the calculation of total revenue per transaction day (RPD). The total RPD metric was introduced in the first quarter of 2013.

For Hertz’s car rental segment, its total revenue includes revenue from fleet subleases, Donlen leasing transactions and licensee transactions, among other items. This was disclosed in the first quarter’s Form 10-Q in the MD&A revenue — car rental segment section along with the actual dollar amounts for each of these items, says Hertz.

For purposes of calculating total RPD, Hertz excluded revenue from Donlen leasing transactions and currency effects, but total RPD for the second quarter does include the positive impact of the sublease fees. And it also includes the negative impact of year-over-year changes related to mix, rental length and franchised divestitures.

According to Hertz, the second quarter’s total revenue included $22.2 million associated with vehicles leased to Franchise Services of North America (FSNA) in connection with the sale of Advantage, which was only 1% of worldwide car rental revenue, excluding Donlen.

Given the unique and temporary nature of the sublease revenue, Hertz will not include it in its total RPD calculation going forward, says the company.

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