Market Overview

Hertz Global Holdings Reports Third Quarter 2019 Financial Results

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ESTERO, Fla., Nov. 4, 2019 /PRNewswire/ -- Hertz Global Holdings, Inc. (NYSE:HTZ) ("Hertz Global" or the "Company") today reported results for its third quarter 2019.

The Hertz Corporation. (PRNewsfoto/Hertz)

Third Quarter 2019 Compared to Third Quarter 2018:

  • Global revenue grew 3%, up 4% on a constant currency basis
  • Record third quarter U.S. RAC revenues of $2.0 billion, up 6%
  • U.S. RAC Transaction Days up 5%, Total RPD up 1%
  • U.S. RAC Depreciation Per Unit Per Month decreased 5%
  • Net income attributable to Hertz Global improved 20%
  • Adjusted Corporate EBITDA improved 12%

"Our strong third quarter results continue to reflect the successful execution of our strategies, operational efficiencies, and early returns on foundational and growth investments," said Kathryn Marinello, Hertz's Chief Executive Officer. "By leveraging core strengths and looking at our business with an entrepreneurial mindset, we're not only improving the customer experience, we're finding new ways to capture incremental growth in adjacent markets and create incremental value through innovation."

For the third quarter 2019, total revenues were $2.8 billion, a 3% increase versus the third quarter 2018. Net income attributable to Hertz Global was $169 million, or $1.26 earnings per diluted share on 134 million weighted-average shares outstanding, compared to $141 million, or $1.47 per diluted share on 96 million weighted-average shares outstanding in the third quarter 2018. Adjusted Net Income for the third quarter 2019 was $214 million, or $1.60 Adjusted Diluted Earnings Per Share, compared to $180 million, or $1.88 per share  for the same period last year. Adjusted Corporate EBITDA was $392 million, compared to $351 million for the third quarter 2018.

U.S. RENTAL CAR ("U.S. RAC") SUMMARY

U.S. RAC

Three Months Ended
September 30,


Percent
Inc/(Dec)

($ in millions, except where noted)

2019


2018


Total revenues

$

1,962



$

1,852



6

%







Adjusted EBITDA

$

269



$

208



29

%

Adjusted EBITDA Margin

14

%


11

%









Average Vehicles (in whole units)

566,229



527,900



7

%

Vehicle Utilization

79

%


81

%



Transaction Days (in thousands)

41,399



39,478



5

%

Total RPD (in whole dollars)

$

46.67



$

46.23



1

%

Total RPU Per Month (in whole dollars)

$

1,137



$

1,152



(1)

%

Depreciation Per Unit Per Month (in whole dollars)

$

247



$

261



(5)

%

NM - Not meaningful

Total U.S. RAC revenues grew to a third quarter record of $2.0 billion in 2019, a 6% increase versus the third quarter 2018. Transaction days grew 5% driven by higher demand from summer leisure renters and ride-hailing drivers ("TNC"). Total RPD increased 1% in the quarter, largely driven by favorable airport and off-airport pricing.

Average vehicles were up 7%, and up 5% excluding TNC. Utilization was impacted by the in-fleeting of cargo vans and trucks in anticipation of the holiday delivery season demand.

Depreciation Per Unit Per Month decreased 5% driven by the Company's vehicle acquisition strategy, a 9% increase in the number of vehicle dispositions through its highest-return retail car sales channel, and continued strength in residual values.

Adjusted EBITDA improved $61 million in the third quarter and Adjusted EBITDA Margin expanded 250 basis points, driven by higher revenue, significantly improved productivity and lower per unit depreciation.

INTERNATIONAL RENTAL CAR ("INTERNATIONAL RAC") SUMMARY

International RAC

Three Months Ended
September 30,


Percent
Inc/(Dec)

($ in millions, except where noted)

2019


2018


Total revenues

$

702



$

732



(4)

%







Adjusted EBITDA

$

115



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