HERC Grows Q2 Rental Revenue 14.7 Percent

July 29, 2013

Hertz Equipment Rental Corp. posted worldwide equipment rental revenues for the second quarter of $384.3 million, up 14.7 percent compared to 2012. A 16.4-percent increase in equipment rental volumes and a 3.6-percent increase in pricing were the primary drivers of the Q2 revenue increase. Volume increased on strong industrial and improving construction performance.

Adjusted pre-tax income for worldwide equipment rental for the second quarter of 2013 was $74.1 million, an improvement of $31.6 million from $42.5 million in the prior-year period, primarily attributable to the effects of increased volume, improved pricing and cost management initiatives. Worldwide equipment rental achieved an adjusted pre-tax margin of 19.3 percent and a corporate EBITDA margin of 43.1 percent for the quarter.

The average acquisition cost of rental equipment operated during the second quarter of 2013 increased by 12.3 percent year-over-year and net revenue earning equipment as of June 30, was $2.39 billion, compared to $2.27 billion as of March 31.

"Our eighth consecutive quarter of record adjusted pre-tax income, which increased 34.5 percent year-over-year in the second quarter, was driven in part by double-digit revenue growth in four businesses: U.S. off-airport car rental, leisure car rental, HERC and Donlen,” said Mark Frissora, Hertz Corp.’s chairman and CEO.

Hertz Corp. reaffirmed its full-year 2013 guidance for revenues, corporate EBITDA, adjusted pre-tax income, adjusted net income and adjusted diluted earnings per share. In 2013, the company expects to generate worldwide revenues in the range of $10.85 billion to $10.95 billion; corporate EBITDA in the range of $2.21 billion to $2.27 billion; adjusted pre-tax income in the range of $1.27 million to $1.34 billion; adjusted net income in the range of $830 million to $875 million; and adjusted diluted earnings per share in the range of $1.82 to $1.92.

Park Ridge, N.J.-based Hertz Equipment Rental Corp. is No. 3 on the RER 100.