Hertz Reports Record Gains for 2012

car rentalHertz reports record worldwide revenues for the fourth quarter and full year 2012, up 15.1 percent and 8.7 percent, respectively, year-over-year. Record fourth quarter adjusted pre-tax margin of 9.2 percent, and record adjusted pre-tax income of $213.5 million, 29.3 percent higher year-over-year was also reported. On a GAAP basis, pre-tax loss was $40.3 million, attributable primarily to Dollar Thrifty Automotive Group, Inc., or “Dollar Thrifty,” related acquisition costs and charges, Hertz said.

Car rental adjusted pre-tax income for the fourth quarter was up 29.5 percent, Hertz said on an improved margin of 11.5 percent. Worldwide equipment rental adjusted pre-tax income was up 32.7 percent for the quarter, on an improved margin of 21.4 percent.

FY 2012 net cash flow from operations of $2.72 billion, was reported, an increase of $484.7 million YOY. Record Corporate EBITDA of $1.63 billion for the full year, up $246.1 million, or 17.7 percent YOY was reported.

Record adjusted pre-tax income for FY 2012 of $901.5 million, up 32.5 percent YOY was reported.

Mark P. Frissora, Hertz Chairman and Chief Executive Officer, said, “I’m pleased that Hertz once again delivered record fourth quarter and full year financial performance due to sustained operational excellence, improving pricing during the fourth quarter and the positive impact of strategic investments, including the acquisition of Dollar Thrifty Automotive Group."

"We also continue to realize best-in-class efficiency improvements with over $480 million of incremental cost savings in 2012, bringing total savings to over $2.6 billion since 2007. Net cash flows from operations topped $2.7 billion last year, a $484.7 million year-over-year increase, and accelerating cash flow generation will be a critical financial objective going forward. Finally, 2012 marked our third consecutive year of significant double-digit percentage improvements in adjusted pre-tax income, EBITDA, and adjusted earnings per share, as well as margin expansion,” Frissora said.

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