Hertz Posts Record Q1 Revenues
Results achieved on record transaction days, increased volume and robust residual values, according to the company.
Hertz Global Holdings Inc. reported first quarter 2012 worldwide revenues May 2 of $2.0 billion, an increase of 10.2% year-over-year.
First quarter 2012 adjusted net income was $19.4 million, versus a loss of $14.2 million in the same period of 2011. Loss before income taxes, on a GAAP basis, was $36.8 million, versus a pre-tax loss of $158.9 million in the first quarter of 2011.
Worldwide car rental revenues for the quarter increased 9.8% year-over-year to $1.66 billion. Worldwide car rental adjusted pre-tax income for the first quarter of 2012 was $91.6 million, an increase of $30.3 million from $61.3 million in the prior year period.
These results were driven by increased volume, robust residual values, and strong cost management performance, partially offset by a decrease in rental rate revenue per transaction day ("RPD").
Worldwide RPD for the quarter decreased 3.9% from the prior year period. RPD continues to be impacted by the shift in the mix between airport and off-airport rentals, Hertz reports. Growth in off-airport rentals, and specifically growth in replacement rentals, which have longer rental lengths, has a negative impact on RPD, while off-airport's profit contribution is growing significantly, Hertz reports.
Hertz reports it achieved record transaction days for the quarter, which increased 6.8% over the first quarter of 2011, with most gains coming in the U.S. U.S. off-airport total revenues for the first quarter increased 8.2% year-over-year, and transaction days increased 10.9% from the prior year period.
The worldwide average number of company-operated cars for the first quarter of 2012 was 595,300, an increase of 39.3% over the prior year period, largely as a result of the Donlen acquisition, and a 6.2% increase year-over-year excluding the effects of the Donlen acquisition.
Revenues from HERC, Hertz’s worldwide equipment rental division, for the first quarter were $302.1 million, up 12.6% year-over-year.
In regards to the growth, Mark P. Frissora, the Company's chairman and chief executive officer, identified stabilizing conditions in Europe, a growth in Advantage, its discount brand, and U.S. advance reservations almost double that of 2011 levels for all periods forward. Additionally, he re-stated Hertz’s intention to equip Hertz’s entire rental fleet with that Hertz on Demand's car sharing technology in the next 12-18 months.
Hertz has increased its full-year 2012 guidance in all categories.
For the full press statement, click here.
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