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Hertz Boosts Worldwide Revenues 7.1 Percent in Second Quarter

Hertz reports record worldwide pre-tax income boost of 21.9 percent. U.S. car rental revenues increase 10.1 percent year over year. Company reports slight pre-tax loss attributed to one-time gain in second quarter 2009.

by Staff
August 4, 2010
3 min to read


Hertz Global Holdings Inc. reported second quarter 2010 worldwide revenues of $1.9 billion, an increase of 7.1 percent year-over-year (a 7.5 percent increase excluding the effects of foreign currency).

Worldwide car rental revenues for the quarter increased 9.3 percent (a 10.0 percent increase excluding the effects of foreign currency) to $1.6 billion. Revenues from worldwide equipment rental for the second quarter were $265.8 million, down 4 percent (a 5.9 percent decrease excluding the effects of foreign currency) over the prior year period.

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Second quarter 2010 adjusted pre-tax income was $95.8 million, versus $81.1 million in the same period in 2009, and loss before income taxes ("pre-tax loss"), on a GAAP basis, was $6.2 million, versus income of $30.7 million in the second quarter of 2009. The year-over-year decline in GAAP pre-tax income for the second quarter is attributable primarily to a gain, recorded in 2009, of $48.5 million related to the buyback of a portion of our senior notes and senior subordinated notes. Corporate EBITDA for the second quarter of 2010 was $281.4 million, an increase of 0.2 percent from the same period in 2009.

Second quarter 2010 adjusted net income was $58.5 million, versus $49.6 million in the same period of 2009, resulting in adjusted diluted earnings per share for the quarter of $0.14, compared with $0.12 per share for the second quarter of 2009. Second quarter 2010 net loss, on a GAAP basis, was $25.1 million or a loss of $0.06 per share on a diluted basis, compared with net income of $3.9 million, or earnings of $0.01 per share on a diluted basis, for the second quarter of 2009.

Mark P. Frissora, chairman and chief executive officer of Hertz, said, "The best example of our successful growth and efficiency strategy is the record second quarter 2010 performance of our largest business, U.S. car rental. Compared with the pre-recession second quarter of 2007, U.S. RAC generated $32.5 million higher adjusted pre-tax income this year, representing a 350 bps margin improvement over 2007, on 7 percent lower revenues.

"We have significantly reduced fleet and other costs while investing in 298 net new off-airport and 31 Advantage airport locations since April of 2009. In the second quarter of 2010, U.S. car rental generated over 10% revenue growth, with double-digit increases in off-airport, corporate and inbound revenues, versus the same period in 2009, a result of our diversified global growth strategy, and an 18.6 percent year-over-year increase in adjusted pre-tax income. Furthermore, we believe our other two major businesses, Europe RAC and Worldwide HERC, will achieve similar results when their volume levels increase closer to 2007 levels," he added.

To read the complete press release on Hertz's second quarter 2010 earnings, click here.

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