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. 

<p><em>Photo courtesy of Hertz.</em></p>

"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.


0 Comments