Hertz Global Holdings Inc. (NYSE: HTZ) reported first quarter 2011 worldwide revenues of $1.8 billion, an increase of 7.2% year-over-year (a 6.1% increase excluding the effects of foreign currency). Worldwide car rental revenues for the quarter increased 6.2% (a 5.1% increase excluding the effects of foreign currency) to $1.5 billion. Revenues from worldwide equipment rental for the first quarter were $268.2 million, up 13.2% (an 11.9% increase excluding the effects of foreign currency).
First quarter 2011 adjusted pre-tax loss was $16.0 million, versus a loss of $69.2 million in the same period in 2010, and loss before income taxes ("pre-tax loss"), on a GAAP basis, was $158.9 million, including more than $90 million of debt refinancing costs, versus a loss of $157.8 million in the first quarter of 2010. Corporate EBITDA for the first quarter of 2011 was $166.4 million, an increase of 37.1% from the same period in 2010.
Mark P. Frissora, the company's chairman and CEO, said, "We continued to make significant operational progress and balance sheet improvements in the first quarter of 2011. U.S. car rental delivered record first-quarter adjusted pre-tax income results despite unusually severe winter weather in January and February, and Europe car rental performed well again despite an unsettled economic environment. Both businesses achieved their highest customer service ratings since we began measuring in 2007. HERC (Hertz Equipment Rental Co.) continued to rebound from a three-year recession, generating double digit revenue growth in a quarter for the first time since the last quarter of 2006. In addition to almost $6 billion of debt refinancings in 2010, we executed transactions that refinanced over $4 billion of corporate debt in the first quarter. Looking ahead, we are encouraged by a currently favorable outlook for the peak summer travel season in our major car rental markets, by increases in used car residual values, and by general improvement in overall macro conditions which bodes well for HERC's ongoing recovery," Frissora concluded.
