Hertz Global Holdings reported fourth quarter 2015 GAAP net income of $70 million, or $0.16 per diluted share.
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This compares to a net loss of $234 million, or $0.51 per diluted share, during the fourth quarter of 2014.
The Company also reported adjusted net income for the fourth quarter 2015 of $22 million, or $0.05 per diluted share, compared with an adjusted net loss of $101 million, or $0.22 per diluted share, for the same period last year.
Total revenues for the fourth quarter 2015 were $2.41 billion, a 6% decline versus the fourth quarter of 2014. Adjusted corporate EBITDA for the 2015 fourth quarter was $266 million, compared to $76 million in the fourth quarter of 2014.
Foreign currency exchange rates had an unfavorable impact on Hertz Global Holdings' fourth quarter 2015 results as compared to the prior year period.
The unfavorable impact of foreign currency exchange rates to total revenue in the quarter was approximately $75 million and the unfavorable impact to net income for the period was approximately $6 million, or $0.01 per diluted share.
For the full-year 2015, Hertz Global Holdings reported GAAP net income of $273 million, or $0.60 per diluted share, versus a loss of $82 million, or $0.18 per diluted share, for the full year 2014.
Adjusted net income for 2015 was $360 million, or $0.79 per diluted share, compared with an adjusted net loss of $254 million, or $0.56 per diluted share, for 2014.
Total revenues for 2015 of $10.5 billion represent a 5% year over year decline. Full year 2015 adjusted corporate EBITDA of $1,493 million represents a 12% improvement versus full year 2014.
Hertz Global Holdings ended 2015 with approximately $2.2 billion of corporate liquidity, which is its highest level since 2011. As a result, the company reduced its year-end leverage ratio, which is defined as net corporate debt to adjusted corporate EBITDA, to 3.7 times at Dec. 31, 2015 versus 4.4 times at Sept. 30, 2015.
In the fourth quarter, effective fleet management and a focus and investment in customer service programs resulted in improvements in worldwide customer satisfaction for Hertz, Dollar and Thrifty.
Customer satisfaction levels reached record levels for these brands in the fourth quarter. For Hertz Global Holdings overall, customer satisfaction in the fourth quarter rose 4 points and 5 points in the U.S. and International segments, respectively.
Effective fleet management also drove a 3 percentage point year-over-year increase in Worldwide Car Rental fleet efficiency to 78%. In the U.S., Car Rental fleet efficiency rose to 79%, an increase of 4 percentage points versus the fourth quarter of 2014, driven by reduced out-of-service levels and better utilization or matching of demand to cars available to rent.
In the International segment, Car Rental fleet efficiency was 73%, a decrease of 1 percentage point from the fourth quarter of 2014.
Worldwide Revenue per Available Car Day (RACD) increased by 1%, as the improvement in fleet efficiency mitigated a 3% decrease in Total Revenue per Transaction Day (RPD) versus the fourth quarter of 2014.
In the U.S., RACD was unchanged as higher fleet efficiency offset a 5% decrease in RPD. The International region RACD increased 2%, as a 3% increase in Total RPD was slightly offset by a reduction in fleet efficiency.
Effective fleet management resulted in improved fleet condition, which contributed to the Company's lower out-of-service levels and lower maintenance costs during the fourth quarter versus the prior year. This was accomplished while keeping 2015 fleet cost slightly below 2014 levels.
As part of its ongoing cost reduction program, Hertz Global Holdings achieved savings of approximately $75 million in the fourth quarter. For the full-year, the Company realized cost savings of approximately $230 million, exceeding its 2015 goal. In 2016, the Company expects to achieve an additional $350 million in cost savings.
Hertz Equipment Rental Corporation (HERC) continued to diversify its business, achieving a 42% increase in revenue from new accounts in North America on a constant currency basis in the fourth quarter.
Hertz Global Holdings continues to expect that the planned separation of HERC as a public company is on track for mid-2016. ■