Hertz reports strong third quarter improvement

Hertz reports strong third quarter improvement

Hertz Global Holdings, Inc. (with its subsidiaries, the “Company” or “we”) reported third quarter 2012 worldwide revenues of $2.5 billion, an increase of 3.4% year-over-year (a 6.4% increase excluding the effects of foreign currency, primarily in Europe).  Worldwide car rental revenues for the quarter increased 2.1% year-over-year (a 5.3% increase excluding the effects of foreign currency) to a record $2,152.6 million.  Revenues from worldwide equipment rental for the third quarter were $363.0 million, up 12.8% year-over-year (a 14.2% increase excluding the effects of foreign currency), driven by an 18.6% revenue increase in the U.S. and 17.1% in North America.

Third quarter 2012 adjusted pre-tax income was a record $424.8 million increasing 22.5% over the same period in 2011, and income before income taxes (“pre-tax income”), on a GAAP basis, was $368.9 million, an increase of 24.8% over the third quarter of 2011.  Corporate EBITDA(1) for the third quarter of 2012 was a record $607.0 million, an increase of 15.5% from the same period in 2011.

Third quarter 2012 adjusted net income(1) was a record $280.3 million, versus $223.2 million in the same period of 2011, resulting in adjusted diluted earnings per share for the quarter of $0.63, compared with $0.51 for the third quarter of 2011.  Third quarter 2012 net income attributable to Hertz Global Holdings, Inc. and subsidiaries’ common stockholders, or “net income,” on a GAAP basis, was $242.9 million or a record $0.55 per share on a diluted basis, compared with $206.7 million, or $0.47 per share on a diluted basis, for the third quarter of 2011.

Mark P. Frissora, the Company’s Chairman and Chief Executive Officer, said, ” I am especially pleased with our ability to improve the consolidated adjusted operating margin 260 bps in the third quarter despite soft global macro economic conditions.  Margin improvement was driven by a 220 bp decline in consolidated adjusted direct operating and selling, general and administrative expenses as a percentage of sales, and $145 million of incremental efficiency savings.  Additionally, HERC’s 18.6% U.S. revenue growth in the third quarter easily outpaced the competition as we gained momentum in new markets and with new fleet,” he noted.