Hertz Global Holdings released 2015 first quarter operating results. While the company remains committed to its off-airport operation, by the end of the 2015 second quarter, it will have closed approximately 200 stores.
Article continues below
This is representing 5% of the total off-airport locations and less than 1% of the vehicle fleet. Closing these stores will result in approximately $10 million in annual savings.
As previously announced, the previously issued financial statements must be restated and should no longer be relied upon. As a result of the completion of Management's examination of additional accounts in connection with our accounting review and investigation, the company has identified an additional $30 million in errors above that which had been previously identified.
As a result, the impact on GAAP pre-tax income of cumulative errors identified to date, on an unaudited basis, is approximately $42 million, $85 million and $56 million for 2013, 2012 and 2011, respectively, inclusive of $9 million in 2012 and $19 million in 2011, previously disclosed and reflected in the financials included in the company's 2013 Form 10-K/A.
The review and investigation of the company's financial records are ongoing, and amounts are therefore subject to change. The financial information set forth in this release is subject to change based on the completion of the investigation and review, and such changes may be significant.
Total U.S. car rental revenue was $1.5 billion in the 2015 first quarter, down 3% from the 2014 first quarter as a result of a 1% decline in transaction days and a 2% decline in Total Revenue Per Day (Total RPD). Excluding lower fuel prices on ancillary revenue, Total RPD was down 1% compared to the 2014 first quarter.
International car rental segment revenue was $436 million, down 9% in the first quarter due to negative currency translation, but up 5% excluding currency effects, compared to the 2014 first quarter. Total International transaction days were up 4% on a 1% increase in Total RPD, excluding currency effects. Excluding lower fuel prices on ancillary revenue and currency effects, Total International RPD was up 2% compared to the 2014 first quarter.
Worldwide equipment rental segment revenue of $355 million decreased 1% in the 2015 first quarter, but was up 2% excluding currency effects, compared with the prior year. Worldwide rental and rental-related revenue was flat in the first quarter due to negative currency exchange rates, but grew 3% excluding currency effects.
Although the company is still working to determine how the accounting issues will impact its profitability for 2015, the company expects its consolidated Corporate EBITDA for the first quarter will likely be between $200 million and $215 million. ■