Hertz Reports Significant First Quarter Improvement

Hertz Global Holdings Inc., Park Ridge, N.J., reported its first quarter 2012 worldwide revenues of $2 billion represented an increase of 10.2 percent year-over-year (a 10.7 percent increase excluding the effects of foreign currency). Revenues from worldwide equipment rental for the first quarter were $302.1 million, up 12.6 percent year-over-year (a 13.4 percent increase excluding the effects of foreign currency).

 

First quarter 2012 adjusted pre-tax income was $29.4 million, versus an adjusted pre-tax loss of $16.0 million in the same period in 2011, and 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. Corporate EBITDA(1) for the first quarter of 2012 was $208.0 million, an increase of 25.0 percent from the same period in 2011.

 

First quarter 2012 adjusted net income(1) was $19.4 million, versus a loss of $14.2 million in the same period of 2011, resulting in adjusted diluted earnings per share for the quarter of $0.05, compared with an adjusted diluted loss per share of $0.03 for the first quarter of 2011. First quarter 2012 net loss attributable to Hertz Global Holdings, Inc. and subsidiaries' common stockholders, or "net loss," on a GAAP basis, was $56.3 million or $0.13 per share on a diluted basis, compared with a loss of $132.6 million, or $0.32 per share on a diluted basis, for the first quarter of 2011.

 

Mark P. Frissora, the company's chairman and CEO, said, "We are gratified by strong first quarter 2012 results, further validating our long-term, balanced approach to running global businesses, which generated double-digit revenue and profit growth despite difficult conditions in Europe."

 

Net cash provided by operating activities was $492.0 million in the first quarter of 2012, compared to $165.6 million in the same period last year, an increase of $326.4 million. The increase was primarily due to the timing of interest and other corporate payments, as well as an increase in net income before depreciation and amortization. Additionally, corporate cash flow(1) improved by $73.4 million due to the reasons stated above, as well as due to favorable timing of fleet payables and lower financing costs, partially offset by cash used for acquisitions. The Company ended the first quarter of 2012 with total debt of $11.4 billion and net corporate debt (1) of $3.96 billion, compared with total debt of $11.3 billion and net corporate debt of $3.68 billion as of Dec. 31, 2011.

 

Rental Revenues

Worldwide equipment rental revenues were $302.1 million for the first quarter of 2012, a 12.6 percent increase (a 13.4 percent increase excluding the effects of foreign currency) from the prior year period.

 

Adjusted pre-tax income for worldwide equipment rental for the first quarter of 2012 was $25.9 million, an improvement of $15.7 million from $10.2 million in the prior year period, primarily attributable to the effects of increased volume and pricing and cost management initiatives. Worldwide equipment rental achieved an adjusted pre-tax margin of 8.6 percent and a Corporate EBITDA margin(1) of 35.6 percent for the quarter.

 

The average acquisition cost of rental equipment operated during the first quarter of 2012 increased by 5.3 percent year-over-year and net revenue earning equipment as of March 31, 2012 was $1.9 billion, compared to $1.79 million as of Dec. 31, 2011.