Auto Rental News
MenuMENU
SearchSEARCH

Hertz Completes Financial Restatements

The restatements reduced Hertz’s profits by a cumulative $128 million for years 2011, 2012 and 2013, or nearly 20% of previously stated profits. Richard Broome resigns.

by Staff
July 16, 2015
Hertz Completes Financial Restatements

Photo courtesy of The Hertz Corp.

3 min to read


Photo courtesy of The Hertz Corp.

Hertz Global Holdings Inc. has filed its annual report on Form 10-K for the fiscal year ending Dec. 31, 2014, which includes the restated results for 2012 and 2013 as well as selected unaudited restated financial information for 2011.

Hertz is now up-to-date on all of its filings with the Securities and Exchange Commission (SEC), the company said.

Ad Loading...

The restatements lower Hertz’s profits in each of the audited years. In 2011, Hertz’s GAAP net income was lowered an additional $19 million, for a total of $31 million in net income including previously disclosed misstatements. This represented 18% of total GAAP net income.

In 2012, the company’s net income was lowered an additional $58 million, for a total of $62 million in net income in that year, representing 26% of net income. In 2013, net income was lowered $51 million in total (15% of net income), as no misstatements were previously identified.

Hertz also announced progress on the planned separation of its equipment rental business (Hertz Equipment Rental Corp.) and its capital allocation, cost savings and fleet refresh, according to the company. The HERC separation is expected to be completed in second quarter 2016.

“Today's filings are an important step forward, and our attention is now on realizing Hertz's full potential,” said John Tague, Hertz’s president and CEO. “While much work remains, I thank the Hertz team for their efforts to bring our filings up to date while continuing to remain focused on our customers and our future.”

The Form 10-K filed today also contains quarterly information for the quarters in 2013, as restated, and 2014. Quarterly information for the first quarter of 2015 is contained in the Form 10-Q, which was also filed today.

Ad Loading...

The 10-K form also announced that Richard Broome, senior vice president, Corporate Affairs and Communications at Hertz Global Holdings, has stepped down.

According to Hertz, the filing of its Form 10-K brings Hertz back into compliance with its New York Stock Exchange (NYSE) listing requirements.

"Going forward, we are committed to developing a differentiated customer experience and premium brand position for Hertz that is number one in the industry, while revitalizing Dollar and Thrifty into leading value brands,” said Tague.

By year-end 2015, Hertz now expects to achieve $300 million in annualized cost savings, up from a previously announced savings goal of $100 million. The cost savings are expected to come mainly from reductions in corporate and operations overhead, fleet management efficiency and marketing spending. According to Hertz, it expects to incur $30 million to $35 million of costs in 2015 in connection with these actions.

Hertz reported that its fleet fresh target has been realized. For full-year 2015, it anticipates U.S. fleet growth of 0.5% to 1.5% over 2014 — compared to its previous estimate of 1.5% to 2.5%. In part, this reduction is supported by improvements in fleet utilization, according to the company.

Ad Loading...

For full-year 2015, Hertz forecasts its consolidated corporate EBITDA at $1.45 to $1.55 billion. For U.S. RAC monthly depreciation per unit, Hertz predicts $295 to $305.

"We indicated in May that the second quarter performance would be a continuation of the challenges we faced in the first three months of the year, which is consistent with our expectation," said Tague. "This is a transition year, and we are not going to be satisfied with the results quarter-by-quarter. Progress on our initiatives to reduce capacity, meet our fleet refresh targets and capture cost savings will be evident in the third quarter, which we believe will be an inflection point for the year. And of course, we expect those benefits to become progressively more visible in 2016."

More Rental Operations

Rental car agent shows woman her choice of rental car
Rental Operations•by Chris Brown•October 7, 2026

Advantage, Sixt Place Among Top Five in Annual Satisfaction Study

While Enterprise and National retain the top spots in JD Power’s 2026 rankings, the latest customer satisfaction results suggest renters can find competitive service beyond the biggest car rental names.

Read More →
an exotic car wrapped in an insurance policy
Rental Operations•October 1, 2026

The $100,000 Insurance Trap in Exotic Car Rentals

Exotic rental agencies often rely on customers’ personal auto policies to protect six-figure vehicles. But policy language can dramatically change the coverage for vehicles over $100,000 MSRP.

Read More →
globe of world and drivers license from UK
Rental Operations•September 28, 2026

The Booking Is Confirmed, But Is Your Customer Ready to Drive?

For international renters, a confirmed reservation doesn’t always mean they’re eligible to drive. Earlier checks can help operators catch documentation and payment issues before the customer reaches the counter.

Read More →
Ad Loading...
Scenes from Car Rental Shows past
Rental Operations•by Staff•September 23, 2026

ICRS 2027 Opens Call for Papers

The International Car Rental Show seeks session proposals on the business, operational, and technology issues facing car rental operators. Submissions are due Jan. 15.

Read More →
hand holding phone and Turo logo
Rental Operations•by Staff•September 21, 2026

Turo to Launch Vehicle Delivery Service

Turo Delivered will let travelers search for vehicles that hosts can deliver directly to hotels, homes, airports, train stations, and other locations.

Read More →
plane, palm trees, car rental sign
Rental Operations•by Chris Brown•September 15, 2026

Palm Beach Airport Code Change Creates Car Rental Distribution Gap

A test of rental searches under the old PBI and new DJT airport codes returned largely different sets of brands and vehicles, highlighting a potential distribution problem for rental operators.

Read More →
Ad Loading...
Team members of U-Save's new franchise
Rental Operations•by Staff•September 15, 2026

U-Save Continues Dominican Republic Expansion with Launch in Punta Cana

The new franchise location builds on U-Save’s existing Santo Domingo operation and will begin taking reservations for October 2026.

Read More →
A traveler searches for rental cars with an AI bot
Rental Operations•September 14, 2026

When AI Books the Rental Car, Who Controls the Sale?

As AI moves from comparing rental rates to completing transactions, operators need to understand how travelers find, interpret, rank, and ultimately see their offers. (Part 2 of 2.)

Read More →
map of europe and summer car rental rates
Rental Operations•September 11, 2026

European Booked Car Rental Rates Fell 5%, Results Varied by Country

Ireland, Cyprus, and the United Kingdom saw steep declines, while booked rates rose in Poland and Hungary.

Read More →
Ad Loading...
thumbnail of Chris Brown and Mike DeLorenzo with title Time to Rethink Rental Categories?
Rental Operations•by Chris Brown•September 8, 2026

Is It Time to Rethink Rental Categories?

As traditional economy and compact cars disappear from the market, longtime rental operator Mike DeLorenzo asks whether the industry’s familiar vehicle categories still make sense — and what operators need to rethink along with them.

Read More →
Ad Loading...