Hertz Global Holdings reported results for its fourth quarter and year ending Dec. 31, 2018.
For the fourth quarter 2018, total revenues were $2.3 billion, a 10% increase versus the fourth quarter 2017. Net loss attributable to Hertz Global was $101 million, or $1.20 loss per diluted share, compared with net income attributable to Hertz Global of $616 million during the fourth quarter 2017, or $7.42 per diluted share, which included a one-time benefit of $679 million, or $8.18 per diluted share, related to U.S. tax reform.
The Company reported an adjusted net loss for the fourth quarter 2018 of $46 million, or $0.55 adjusted diluted loss per share, compared with $64 million, or $0.77 adjusted diluted loss per share which excludes the one-time tax benefit, for the same period last year.
Adjusted corporate EBITDA for the fourth quarter 2018 was $49 million, compared to $21 million in the same period last year.
For the full-year 2018, total revenues were $9.5 billion, an 8% increase versus 2017.
Net loss attributable to Hertz Global was $225 million, or $2.68 loss per diluted share compared with net income attributable to Hertz Global of $327 million, or $3.94 per diluted share, in 2017, which included a one-time benefit of $679 million, or $8.18 per diluted share, related to U.S. tax reform.
The Company reported adjusted net loss for 2018 of $14 million, or $0.17 adjusted diluted loss per share compared with $132 million, or $1.59 adjusted diluted loss per share for 2017.
Adjusted corporate EBITDA for 2018 was $433 million versus $267 million for 2017.
Total U.S. RAC revenues increased 10% compared to the fourth quarter of 2017.
The core rental revenue, which excludes rentals to transportation network company drivers (TNC), generated 7% growth. Transaction days for the core rental fleet increased by 2% year-over-year primarily driven by growth in rentals to corporate, insurance replacement, and retail leisure customers.
Pricing, as measured by Total Revenue Per Day (Total RPD), for the core rental fleet increased 4% in the quarter, and increased 6% when excluding ancillary revenue, driven by growth in its highest-profit leisure categories. TNC rentals generated higher volume and pricing in the quarter.
The Company grew its fleet to meet expansion in its TNC business, where average units increased 76% to 38,000 vehicles, and to address increasing demand in its corporate and retail leisure segments. Utilization improved slightly during the quarter. As a result, Total RPU, an important measure of asset efficiency, increased 3%.
Net depreciation per unit per month decreased 15% as a result of favorable vehicle acquisition prices, stronger residual values, and an increase in the number of vehicle dispositions through the Company's higher-return retail and dealer direct sales channels year over year.
Adjusted corporate EBITDA significantly improved to $48 million in the fourth quarter driven by higher revenue and lower vehicle depreciation.
The Company's international RAC segment revenues were flat year over year, but increased 4% on a constant currency basis. The revenue growth was driven by a 4% increase in transaction days reflecting higher demand across all customer segments.
Utilization declined 60-basis points in the fourth quarter year over year as the Company continued to realign its capacity following a soft peak season in the third quarter of 2018.
Net depreciation per unit per month decreased 1% driven by favorable vehicle acquisition prices and improved fleet mix.
Adjusted corporate EBITDA was $8 million, down 27% for the fourth quarter, driven by higher interest expense on vehicle debt.