Hertz Global Holdings Reports Second Quarter 2017 Financial Results

ESTERO, Fla., Aug. 8, 2017

Total revenues for the second quarter 2017 were $2.2 billion, a 2% decline versus the second quarter 2016. Loss from continuing operations before income taxes for second quarter 2017 was $245 million, including $86 million of impairment charges, versus $35 million in the same period last year. Adjusted Corporate EBITDA for the second quarter 2017 was $35 million, compared to $184 million in the same period last year.

"We have made significant progress in the first half of the year, executing on our operating turnaround plan. Of course, the hard work always comes before the pay off as reflected in our second quarter results, where increased spending to fix areas of weakness and invest in areas of opportunity were exacerbated by a challenging vehicle residual environment in the U.S.," said Kathryn V. Marinello, president and chief executive officer of Hertz. "On the upside, we have now completed our U.S. fleet transformation, redesigned 37 Hertz airport locations for Ultimate Choice, updated our financial and revenue management systems, and introduced new management tools and resources to drive service excellence. Admittedly, we still have a lot of work to do, but these early wins are evidence that we have the right plan in place to ultimately achieve best-in-class outcomes."

U.S. RAC(1)	Three Months Ended June 30,								Percent Inc/(Dec) ARIVA.DE Börsen-Geflüster Kurse Hertz Global Holding -   0,00%
($ in millions, except where noted)	2017				2016
Total Revenues	$	1,519			$	1,584			(4)%
Depreciation of revenue earning vehicles and lease charges, net	$	524			$	417			26%
Income (loss) from continuing operations before income taxes	$	(146)			$	104			NM
Adjusted pre-tax income (loss)	$	(37)			$	143			NM
Adjusted pre-tax margin	(2)%				9%				NM		bps
Adjusted Corporate EBITDA	$	(22)			$	168			NM
Adjusted Corporate EBITDA margin	(1)%				11%				NM		bps
Average vehicles	495,000				500,000				(1)%
Transaction days (in thousands)	36,233				37,190				(3)%
Total RPD (in whole dollars)	$	41.26			$	42.11			(2)%
Total RPU (in whole dollars)	$	1,007			$	1,044			(4)%
Net depreciation per unit per month (in whole dollars)	$	353			$	278			27%

NM - Not Meaningful

Total U.S. RAC revenues were $1.5 billion in the second quarter 2017, a decrease of 4%, versus the same period last year. Transaction days decreased by 3% year-over-year as compared to a strong second quarter 2016, which was driven by replacement rentals from unusually high customer vehicle recall activity. Pricing, as measured by Total RPD, decreased by 2% in the quarter, driven by a change in customer mix year-over-year and weaker ancillary revenues.

Second quarter U.S. RAC net vehicle depreciation per month increased 27% versus the same period last year to $353 per unit primarily driven by declining residual values, accelerated vehicle disposition timing and fleet quality and mix investments. Despite the decrease in industry residual values, the Company stayed on course with its fleet optimization plan, selling 35% more vehicles year-over-year and onboarding a richer mix of model year 2017 vehicles.  As planned, the Company reduced its total average fleet by 1% in the second quarter compared with a year earlier, as the number of core rental vehicles declined by 3%, partially offset by an increase in the vehicles dedicated to the ride hailing fleet. While utilization declined by 130 basis points in the quarter, the Company has made early progress toward driving customer satisfaction and improving profitability longer term.  Its goal of reducing its mix of compact cars to 16% of the total U.S. fleet from 21% a year ago was met at quarter end, better reflecting customer preference.  Also, the Company continued to roll out its Ultimate Choice program, where customers are able to choose their preferred vehicle, on site, with no wait.

Second quarter 2017 Adjusted Corporate EBITDA for U.S. RAC was a negative $22 million, a $190 million decline versus the same period last year. In addition to revenue pressure and increased fleet costs, the reduction was impacted by investments related to service-level improvements, systems enhancements and brand development initiatives.

International RAC(1)	Three Months Ended June 30,								Percent Inc/(Dec)
($ in millions, except where noted)	2017				2016
Total Revenues	$	543			$	540			1	%
Depreciation of revenue earning vehicles and lease charges, net	$	100			$ Werbung Mehr Nachrichten zur Hertz Global Holding Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 17.04.24 - PR Newswire Ashtead Group Plc - Transaction in Own Shares 17.04.24 - PR Newswire Invesco Bond Income Plus Ltd - Issue of Equity 17.04.24 - PR Newswire Norges Bank - Form 8.3 - Virgin Money UK PLC Auf zur INVEST am 26.+ 27.04.2024    Foto: Landesmesse Stuttgart GmbH - Jetzt kostenloses Ticket sichern! weiterlesen» Anzeige wo-site-teaser-box-16688_site-teaser-box_2024-04-17_09%253A00%253A00_2024-04-22_09%253A00%253A59