Hertz to Restate 2012 and 2013 Results; HERC Up 3 Percent in Q3

Hertz Global Holdings stated in a filing with the Securities & Exchange Commission that it will restate its results for 2012 and 2013 as the company continues an investigation into its financial statements from 2011 through 2013. Originally Hertz had stated that the 2011 results would have to be re-stated, but in the filing said “the 2012 and 2013 annual and quarterly financial statements must be restated and should no longer be relied upon.”

Hertz said “the further requirement to restate the 2012 and 2013 financial statements will further lengthen the period for completion of the applicable accounting and audit activities. Hertz does not currently expect to complete the process and file updated financial statements before mid-2015, and there can be no assurance that the process will be completed at that time.”

Hertz disclosed its discovery of accounting errors in March, after having named a new chief financial officer at the end of 2013. The company has since been challenged by activist investors such as Carl Icahn and Jana Partners, leading to the resignation of chairman and CEO Mark Frissora.

Hertz reiterated its intention to spin off Hertz Equipment Rental Corp. into a separate public company, but said it will not occur until after the company completes its accounting review and files the updated financial statements, and then obtains SEC clearance.

Hertz disclosed that HERC posted a 3-percent revenue increase to $415 million worldwide in the third quarter of 2014. Hertz Corp., including car rental, increased 2 percent to $3.12 billion.