Hertz Global Holdings, Inc. today reported results for its fourth quarter and full year for 2017.
For the fourth quarter 2017, total revenues were $2.1 billion, a 4% increase versus the fourth quarter 2016. The company reported adjusted net loss for the fourth quarter 2017 of $64 million, compared with adjusted net loss of $59 million for the same period last year. Net income was positive based on a one-time benefit from federal tax legislation passed in December.
"In 2018, we expect to see continued progress from our U.S. improvement programs,” said Kathryn V. Marinello, president and chief executive officer of Hertz, in a statement. However, we also will have elevated investments throughout the year as we implement several, major technology conversions. By 2019, we should begin to evolve toward a more competitive earnings profile."
For the full-year 2017, total revenues for 2017 were unchanged from 2016 at $8.8 billion. Hertz reported net income of $327 million, including the one-time benefit related to U.S. tax reform, compared with net loss from continuing operations of $474 million, for 2016.
The company reported adjusted net loss for 2017 of $132 million, compared with adjusted net income of $41 million for the same period last year.
Total U.S. rental car revenues increased 1% versus the same period last year. Transaction days increased by 3% year-over-year as a result of increased rentals to commercial customers, including corporate, insurance replacement and ride-hailing drivers.
Pricing decreased 1% in the quarter. Excluding ancillary revenue and the growth in ride-hailing rentals, pricing increased 3% over the 2016 fourth quarter.
Utilization and revenue per unit increased slightly in the fourth quarter over 2016, while monthly depreciation per unit decreased 6%.
Revenues from the company's international rental car segment increased 10% from the fourth quarter 2016, or 4% excluding currency adjustments, driven by a 3% increase in total RPD and a 1% increase in transaction days.
Expenses in 2018 will continue to be elevated, the company reports, and will be targeted toward new marketing campaigns, ongoing field process improvements, an upgraded model-year 2018 fleet, and the deployment of several redesigned technology platforms. The benefits from its U.S. turnaround program are expected to accelerate in 2019.
The number of rental days reached a new record of 87.7 million in 2018, up 27% versus 2017.