Hertz Global Holdings reported fourth-quarter 2011 worldwide revenues of $2 billion, a 9.7-percent year-over-year boost and a company record. Worldwide equipment rental revenues jumped 11.1 percent year over year, with fourth-quarter rental-related revenue increasing 15.5 percent year over year, the company said.
HERC posted $317.9 million on a worldwide basis for the fourth quarter, compared with $286.1 million for the same period a year ago. For the full year 2011, HERC’s equipment rental segment revenues were $1,209.5 million, compared with $1,070.1 million in 2010, a 13-percent jump.
Rental and rental-related revenue, excluding equipment sales and “other revenue,” totaled $291.1 million for the fourth quarter, compared with $260.8 million for the fourth quarter of 2010, an 11.6-percent climb, while rental and rental-related revenues for the year totaled $1,094.4 million worldwide, compared with $975.9 million a year ago, a 12.1-percent hike.
Adjusted pre-tax income for worldwide equipment rental for the fourth quarter of 2011 was $62.1 million, compared with $35 million in the year-ago period, a 77.4-percent leap, which management attributed to increased volume, improved pricing and cost-management initiatives. Worldwide equipment rental achieved an adjusted pre-tax margin of 19.5 percent, and a corporate EBITDA margin of 44.3 percent for the quarter.
“Our record results for the fourth quarter and full-year 2011 are attributable to an equal emphasis on efficiency and revenue growth, which were achieved despite deteriorating macro conditions in Europe,” said Mark Frissora, chairman and CEO, speaking for the company as a whole. “Hertz generated over $450 million of efficiency savings last year, bringing the cumulative five-year total to over $2.1 billion, representing 25 percent of our total cost base. The results of our growth initiatives were record worldwide car rental revenues for full-year 2011, on record transaction day growth, and the fourth consecutive quarter of double-digit growth in the equipment rental business.”
The company has an optimistic expectation for 2012. “Despite the soft conditions in Europe, we are encouraged by the operating environment in the United States,” Frissora added. “For the first quarter of this year, we are anticipating double-digit volume growth in the U.S. car rental business, based on solid advance reservation build-up, and we are expecting approximately 20-percent rental rate revenue growth in the U.S. equipment rental business.”
Based in Park Ridge, N.J., HERC is No. 4 on the RER 100.