HERC 2Q Revenue Up 14.7 Percent

August 1, 2013

Hertz Equipment Rental Corp. (HERC) reported a second-quarter equipment rental revenue of $384.3 million, up 14.7 percent from the same period in 2012.

Equipment rental volumes were up 16.4 percent, with a 3.6 percent increase in pricing, which contributed to the gain.

Adjusted pre-tax income for worldwide equipment rental for the second quarter of 2013 was $74.1 million, a $31.6 million gain from $42.5 million in the 2012 period, primarily attributable to the effects of increased volume, improved pricing and cost management initiatives. 

The average acquisition cost of rental equipment operated during the second quarter of 2013 increased by 12.3% year-over-year and net revenue earning equipment as of June 30, 2013 was $2,385.3 million, compared to $2,269.5 million as of March 31, 2013.

The company reaffirmed its full year 2013 outlook, provided on Feb. 25, 2013, for revenues, Corporate EBITDA, adjusted pre-tax income, adjusted net income and adjusted diluted earnings per share.  In 2013, the company expects to generate worldwide revenues in the range of $10,850 million to $10,950 million, Corporate EBITDA in the range of $2.21 billion to $2.27 billion, adjusted pre-tax income in the range of $1.27 billion to $1.34 billion, adjusted net income in the range of $830 million to $875 million and adjusted diluted earnings per share in the range of $1.82 to $1.92.

"Our eighth consecutive quarter of record adjusted pre-tax income, which increased 34.5 percent year-over-year in the second quarter, was driven in part by double-digit revenue growth in four businesses: U.S. off-airport car rental, leisure car rental, HERC and Donlen,” said Mark P. Frissora, chairman and CEO of Hertz. “Hertz also achieved several other financial records this past quarter, the result of solid execution of balanced revenue, cost initiatives and Dollar Thrifty synergies which are running ahead of plan."