Hertz Equipment Rental Corp.

Hertz Equipment Rental Q1 Revenues Up 16% from Last Year

Hertz Global Holdings, Inc. reported first-quarter 2013 worldwide revenues of $2.4 billion, an increase of 24.3% year-over-year. Revenues from worldwide equipment rental for the first quarter were $351.0 million, up 16.2% year-over-year.

First quarter 2013 adjusted pre-tax income was $144.5 million, versus adjusted pre-tax income of $29.4 million in the same period in 2012, and pre-tax income, on a GAAP basis, was $72.2 million versus a loss before income taxes, on a GAAP basis of $36.8 million in the first quarter of 2012. Corporate EBITDA for the first quarter of 2013 was $367.1 million, an increase of 74.2% from the same period in 2012.

First quarter 2013 adjusted net income was $93.9 million, versus $19.4 million in the same period of 2012, resulting in adjusted diluted earnings per share for the quarter of $0.21, compared to $0.05 for the first quarter of 2012. First quarter 2013 net income attributable to Hertz Global Holdings, Inc. and Subsidiaries' common stockholders, on a GAAP basis, was $18.0 million or $0.04 per share on a diluted basis, compared to a net loss attributable to Hertz Global Holdings, Inc. and Subsidiaries' common stockholders, on a GAAP basis, of $56.3 million or $0.13 per share on a diluted basis for the first quarter of 2012.

Mark P. Frissora, the company's chairman and chief executive officer, said, "We've now achieved record year-over-year adjusted pre-tax income seven consecutive quarters and increased employee productivity twenty six consecutive quarters. Our record first quarter 2013 results were driven by year-over-year, double-digit revenue and pre-tax margin growth in the car and equipment rental and leasing businesses, especially in North America. Dollar Thrifty is performing better than anticipated, with integration and synergy progress exceeding our targets," he added.

Worldwide equipment rental revenues were $351.0 million for the first quarter of 2013, a 16.2% increase from the prior year period. The primary drivers of the increase were stronger equipment rental volumes, up 15.7%, and a 3.6% increase in pricing. Volume increased on strong industrial and improving construction performance.

Adjusted pre-tax income for worldwide equipment rental for the first quarter of 2013 was $45.8 million, an improvement of $19.9 million from $25.9 million in the prior year period, primarily attributable to the effects of increased volume, improved pricing and cost management initiatives. Worldwide equipment rental achieved an adjusted pre-tax margin of 13.0% and a Corporate EBITDA margin(1) of 39.6% for the quarter.

The average acquisition cost of rental equipment operated during the first quarter of 2013 increased by 12.8% year-over-year and net revenue earning equipment as of March 31, 2013 was $2,269.5 million, compared to $1,911.1 million as of March 31, 2012.

For more about Hertz's first-quarter financial report...

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