Hertz Global Q2 Adj Profit Meet View, Revenues Top, Backs 2013 Outlook

(RTTNews) - Car and equipment rental provider Hertz Global Holdings, Inc. (HTZ), the parent company of Hertz Corp., reported Monday a profit for the second quarter that increased from last year, reflecting double-digit revenue growth amid contributions from the Dollar Thrifty acquisition.

Adjusted earnings per share matched analysts' expectations, while quarterly revenues topped their estimates by a whisker. The company maintained its earnings and revenue forecast for the full-year 2013.

Hertz, in late August 2012, agreed to acquire smaller rival Dollar Thrifty for $87.50 per share in an all-cash deal valued at about $2.3 billion. The merger was completed in late November.

"Our eighth consecutive quarter of record adjusted pre-tax income, which increased 34.5% 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," Chairman and CEO Mark Frissora said in a statement.

Frissora added that, "Hertz also achieved several other financial records this past quarter, the result of solid execution of balanced revenue, cost initiatives, and Dollar Thrifty synergies which are running ahead of plan."

The Park Ridge, New Jersey-based company posted net income of $121.4 million or $0.27 per share for the second quarter, higher than $92.9 million or $0.21 per share in the prior-year quarter.

Excluding non-recurring items, adjusted net income for the quarter was $204.4 million or $0.45 per share, compared to $154.4 million or $0.35 per share in year-ago quarter.

On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.45 per share for the second quarter. Analysts' estimates typically exclude special items.

Worldwide revenues for the quarter grew 22.0 percent to $2.72 billion from $2.23 billion in the same quarter last year, and topped five Wall Street analysts' consensus estimate of $2.70 billion by a whisker.

Global car rental revenues increased 23.3 percent to $2.33 billion, with transactions growing 22.5 percent, transaction days rising 22.0 percent and average number of company-operated cars increasing 26.5 percent. However, revenue per transaction day grew only 1.2 percent.

Worldwide equipment rental also grew 14.7 percent to $384.3 million, with equipment rental volumes growing 16.4 percent and a 3.6 percent increase in pricing.

Looking ahead to fiscal 2013, Hertz continues to expect adjusted earnings in the range of $1.82 to $1.92 per share, on projected worldwide revenues between $10.85 billion and $10.95 billion. Street is currently looking for full-year 2013 earnings of $1.90 per share, on revenues of $10.90 billion.

HTZ closed Friday's regular trading session at $26.89, up $0.23 on a volume of 8.93 million shares. In the past 52-week period, the stock has been trading in a range of $10.22 to $19.98.