Hertz reported results for its first quarter 2021 with revenue of $1.3 billion, net income attributable to the Company of $190 million and Adjusted Corporate EBITDA of $2 million.
Liquidity at the end of the first quarter was $1.1 billion.
During the quarter, the Company closed on the sale of substantially all of the assets of its Donlen vehicle leasing and fleet management business to Athene Holding Ltd for $891 million in cash proceeds, subject to certain adjustments.
U.S. RAC revenue declined 32% period over period due to lower volume, partially offset by an 11% increase in Total RPD. Strong pricing during the quarter was driven by tighter fleet levels combined with upward trending leisure travel.
Depreciation Per Unit Per Month decreased 21%, driven by strength in market residual values.
Direct operating and selling, general and administration expenses declined 33% year over year as the Company continued to drive productivity, aligning costs with demand.
Despite revenue headwinds from the pandemic, U.S. RAC Adjusted EBITDA margin was at its highest first quarter level since 2015.
Total International RAC revenues were down 49% year over year on a constant currency basis. A mix shift in volume from airport rentals to longer-length, lower-priced off-airport rentals contributed to a 7% decrease in Total RPD versus first quarter 2020.
Depreciation Per Unit Per Month decreased 24%, driven by strong residual values across key markets.
Direct operating and selling, general and administration expenses declined 43% year over year as the Company continued to drive productivity, aligning costs with demand.
Adjusted EBITDA loss of $6 million reflects an impressive 86% improvement year over year.
All Other Operations primarily is comprised of the Company's Donlen leasing and fleet management operations. Revenue and Adjusted EBITDA declines were driven by lower leasing volume year over year.
On March 30, 2021, the Company sold substantially all of the assets of its Donlen business to Athene Holding Ltd. and recognized a pre-tax gain in its corporate operations of $392 million. ■