Hertz sets financial records for Q4, full-year 2011

  • Worldwide revenues for the quarter up 9.7% year-over-year (“YOY”).
  • Fourth quarter worldwide car rental revenues of $1,695.2 million, on record transaction days; worldwide equipment rental revenues increased 11.1% YOY; U.S. HERC fourth quarter rental rate revenue increased 15.5% YOY.
  • Record fourth quarter adjusted pre-tax margin of 8.2%, and record adjusted pre-tax income(1) of $165.1 million, 136.5% higher YOY. GAAP pre-tax income for the fourth quarter of $92.8 million, up $98.8 million YOY.
  • U.S. car rental adjusted pre-tax income for the fourth quarter up 45.2% YOY, on a margin improvement of 440 bps; worldwide equipment rental adjusted pre-tax income up 77.4% for the quarter, on a margin improvement of 730 bps.
  • Adjusted diluted earnings per share(1) for the quarter of $0.24 versus $0.10 in the fourth quarter of 2010.  GAAP diluted earnings per share for the quarter of $0.11 versus a loss of $0.07 in the fourth quarter of 2010.
  • Record full year worldwide RAC revenues of $7.1 billion in 2011, on record transaction days; four consecutive quarters of double-digit worldwide equipment rental revenue growth in 2011.
  • Record adjusted pre-tax income for FY 2011 of $680.5 million, up 96.1% YOY, on a margin improvement of 360 bps.  GAAP pre-tax income for FY 2011 of $324.3 million versus a loss of $14.6 million in 2010.

Hertz Global Holdings, Inc. (with its subsidiaries, the "Company" or "we") reported fourth quarter 2011 worldwide revenues of $2.0 billion, an increase of 9.7% year-over-year (a 9.8% increase excluding the effects of foreign currency).  Worldwide car rental revenues for the quarter increased 9.5% year-over-year (a 9.6% increase excluding the effects of foreign currency) to $1,695.2 million.  Revenues from worldwide equipment rental for the fourth quarter were $317.9 million, up 11.1% year-over-year (a 11.4% increase excluding the effects of foreign currency).    

Fourth quarter 2011 adjusted pre-tax income was $165.1 million, versus $69.8 million in the same period in 2010, and income before income taxes (“pre-tax income”), on a GAAP basis, was $92.8 million, versus a loss of $6.0 million in the fourth quarter of 2010.  Corporate EBITDA(1) for the fourth quarter of 2011 was $335.2 million, an increase of 25.3% from the same period in 2010.  

Fourth quarter 2011 adjusted net income(1) was $104.0 million, versus $41.6 million in the same period of 2010, resulting in adjusted diluted earnings per share for the quarter of $0.24, compared with $0.10 for the fourth quarter of 2010.  Fourth quarter 2011 net income attributable to Hertz Global Holdings, Inc. and Subsidiaries’ common stockholders, or “net income,” on a GAAP basis, was $47.1 million or $0.11 per share on a diluted basis, compared with a loss of $28.1 million, or $0.07 per share on a diluted basis, for the fourth quarter of 2010.

Mark P. Frissora, the Company’s Chairman and Chief Executive Officer, said, “Our record results for the fourth quarter and full year 2011 are attributable to an equal emphasis on efficiency and revenue growth, which were achieved despite deteriorating macro conditions in Europe.  Hertz generated over $450 million of efficiency savings last year, bringing the cumulative five-year total to over $2.1 billion, representing 25% of our total cost base. The results of our growth initiatives were record worldwide car rental revenues for full year 2011, on record transaction day growth, and the fourth consecutive quarter of double-digit growth in the equipment rental business.  These achievements capped a year where Hertz almost doubled 2010 adjusted pre-tax income and beat the previous, pre-recession record in 2007, on $387.2 million lower revenues. We also refinanced almost $7 billion of debt on favorable terms last year, further strengthening our balance sheet.  A continued emphasis on technology-driven efficiencies and customer service initiatives, the advancement of an asset-light business model, and a rich mixture of car and equipment rental growth initiatives, are the recipe for sustained financial improvement in 2012 and beyond.”

Source = Hertz
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