Hertz Second-Quarter Rental Revenues Increase 11% Year Over Year

Hertz Global Holdings Inc. reported second-quarter 2012 worldwide revenues of $2.2 billion, an increase of 7.4% year-over-year (a 10.3% increase excluding the effects of foreign currency). Worldwide car rental revenues for the quarter increased 6.8% year-over-year (a 9.9% increase excluding the effects of foreign currency) to a record $1,889.6 million.
Revenues from worldwide equipment rental for the second quarter were $335.0 million, up 11.0% year-over-year (a 13.1% increase excluding the effects of foreign currency), driven by an 18.8% revenue increase in the U.S. and 15.2% in North America.

Second quarter 2012 adjusted pre-tax income was a record $233.9 million, versus $184.4 million in the same period in 2011, and income before income taxes, on a GAAP basis, was $158.7 million, versus $94.6 million in the second quarter of 2011. Corporate EBITDA(1) for the second quarter of 2012 was a record $407.7 million, an increase of 12.6% from the same period in 2011.

Second quarter 2012 adjusted net income(1) was a record $154.4 million, versus $116.6 million in the same period of 2011, resulting in record adjusted diluted earnings per share for the quarter of $0.35, compared with $0.26 for the second quarter of 2011. Second quarter 2012 net income attributable to Hertz Global Holdings Inc. and subsidiaries’ common stockholders, or “net income,” on a GAAP basis, was $92.9 million or $0.21 per share on a diluted basis, compared with $55.0 million, or $0.12 per share on a diluted basis, for the second quarter of 2011.

Mark P. Frissora, the company's chairman and chief executive officer, said, “We delivered strong revenue and earnings growth again in the second quarter of 2012, and achieved several record results, despite moderate global GDP growth. Our second quarter 2012 results are a testament to fostering a culture of continuous improvement as we delivered a 390 basis point improvement in direct operating expenses and $107 million in incremental efficiency savings for the quarter.”

Net cash provided by operating activities was $666.4 million in the second quarter of 2012, compared to $521.3 million in the same period last year, an increase of $145.1 million. The increase was primarily due to an increase in net income before depreciation and amortization. Additionally, corporate cash flow(1) improved by $107.8 million, primarily due to increased advance rates on our fleet debt and earnings before depreciation and amortization, partially offset by an increase in our equipment rental fleet spend associated with our continued growth and the timing of fleet payables associated with additions to our U.S. car rental fleet. The company ended the second quarter of 2012 with total debt of $12.5 billion and net corporate debt (1) of $4.11 billion, compared with total debt of $11.7 billion and net corporate debt of $4.01 billion as of June 30, 2011.

Despite overall net REE growth of $885 million, the total debt increase was limited primarily to the addition of $879 million in debt associated with Donlen's fleet. Net corporate debt increased $100 million, but excluding proceeds paid for acquisitions since June 30, 2011 it would have declined over $275 million.

Worldwide car rental