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Hertz reports strong third quarter results

Nov. 8, 2010 – Hertz Global Holdings has reported third quarter 2010 worldwide revenues of $2.2 billion, an increase of 7.1 percent year-over-year. Revenues from worldwide equipment rental for the third quarter were $281.2 million, up 0.2 percent over the prior year period.


November 8, 2010
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Nov. 8, 2010 – Hertz Global Holdings has reported third quarter 2010 worldwide revenues of $2.2 billion, an increase of 7.1 percent year-over-year. Revenues from worldwide equipment rental for the third quarter were $281.2 million, up 0.2 percent over the prior year period.

Mark P. Frissora, the company's chairman and chief executive officer, said, "HERC generated revenue growth in the third quarter for the first time in two years, and recorded a 33.7 percent year-over-year improvement in adjusted pre-tax income as well as a Corporate EBITDA margin of 40 percent."

The company took $15.2 million in restructuring and related charges in the third quarter of 2010, primarily attributable to costs associated with the closure of equipment rental locations and process reengineering. The company expects the restructuring and related charges to continue to diminish throughout the remainder of 2010.

The company ended the third quarter of 2010 with total debt of $12.05 billion and net corporate debt of $3.78 billion, compared with total debt of $11.69 billion and net corporate debt of $3.64 billion as of June 30, 2010. Total debt increased primarily due to the private offering of $700.0 million of 7.5 percent senior notes that closed on September 30, 2010, partly offset by a decrease in fleet debt related to seasonality. Net cash provided by operating activities was $904.7 million in the third quarter of 2010, compared to $608.8 million last year.

Worldwide equipment rental revenues were $281.2 million for the third quarter of 2010, a 0.2 percent increase from the prior year period.

Adjusted pre-tax income for worldwide equipment rental for the third quarter of 2010 was $33.7 million, an increase of 33.7 percent from $25.2 million in the prior year period, primarily attributable to the effects of increased volume and cost management initiatives. Worldwide equipment rental achieved an adjusted pre-tax margin, based on revenues, of 12.0 percent, a 300 basis point improvement over the prior year period, and a Corporate EBITDA margin, based on revenues, of 40.0 percent for the quarter.

The average acquisition cost of rental equipment operated during the third quarter of 2010 decreased by 5.0 percent year-over-year and net revenue earning equipment as of September 30, 2010 was $1,681.4 million, a 11.2 percent decrease from the amount as of September 30, 2009.