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Hertz Posts Record Q1 Revenues

Results achieved on record transaction days, increased volume and robust residual values, according to the company.

by Staff
May 2, 2012
2 min to read


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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