Photo courtesy of Hertz.
Hertz Global Holdings reported third quarter 2019 financial results today.
For the third quarter 2019, total revenues were $2.8 billion, a 3% increase versus the third quarter 2018. Net income attributable to Hertz Global was $169 million compared to $141 million in the third quarter 2018.
Adjusted Net Income for the third quarter 2019 was $214 million compared to $180 million for the same period last year. Adjusted Corporate EBITDA was $392 million, compared to $351 million for the third quarter 2018.
“Our strong third quarter results continue to reflect the successful execution of our strategies, operational efficiencies, and early returns on foundational and growth investments,” said Kathryn Marinello, Hertz’s CEO. “By leveraging core strengths and looking at our business with an entrepreneurial mindset, we’re not only improving the customer experience, we’re finding new ways to capture incremental growth in adjacent markets and create incremental value through innovation.”
Total U.S. RAC revenues grew to a third quarter record of $2.0 billion in 2019, a 6% increase versus the third quarter 2018. Transaction days grew 5% driven by higher demand from summer leisure renters and ride-hailing drivers (“TNC”). Total revenue per day (RPD) increased 1% in the quarter, largely driven by favorable airport and off-airport pricing.
Average vehicles were up 7%, and up 5% excluding TNC. Utilization was impacted by the in-fleeting of cargo vans and trucks in anticipation of the holiday delivery season demand, Hertz reported.
Depreciation per unit, per month decreased 5%, driven by a 9% increase in the number of vehicle dispositions through its retail car sales channel and continued strength in residual values.
Total International RAC revenues decreased 4% year-over-year and were flat on a constant currency basis. Total RPD was up 1% driven by improved pricing in Asia Pacific and Europe, offset by a volume decline of 2% due to softness in Europe.