Hertz Reports Significant Year-Over-Year Improvement

Worldwide car rental revenues for the quarter increased 3.4% (a 0.6% decrease in constant currency) to $1.5 billion. Revenues from worldwide equipment rental for the fourth quarter were $274.0 million, down 26.1% (a 28.9% decrease in constant currency) over the prior year period.

Fourth quarter 2009 adjusted pre-tax income was $39.2 million, versus adjusted pre-tax loss of $103.7 million in the same period in 2008, and loss before income taxes ("pre-tax loss"), on a GAAP basis, was $67.4 million, versus $1,446.2 million in the fourth quarter of 2008. The fourth quarter of 2008 included a non-cash impairment charge of $1,168.9 million relating to our goodwill, other intangible assets and property and equipment. Corporate EBITDA for the fourth quarter of 2009 was $221.0 million, an increase of 89.1% from the same period in 2008.

Fourth quarter 2009 adjusted net income(1) was $22.5 million, versus a loss of $73.0 million in the same period of 2008, resulting in adjusted diluted earnings per share for the quarter of $0.06, compared with adjusted diluted loss per share of $0.22 for the fourth quarter of 2008. Fourth quarter 2009 net loss, on a GAAP basis, was $30.9 million or $0.08 per share on a diluted basis, compared with a net loss of $1,218.0 million, or $3.77 per share on a diluted basis, for the fourth quarter of 2008.

Mark P. Frissora, the Company's Chairman and Chief Executive Officer, said, "Our strong performance in the fourth quarter of 2009 was based on continued improvement in the U.S. car rental business, our largest market, and sustained progress throughout the year to develop new revenue sources and further reduce overall costs. For the full year 2009, we cut costs by $760 million, and by over $1.2 billion from 2007 through 2009. We also generated over $170 million of incremental revenues last year from new products and services, which helped offset recession-related pressure on our core businesses. In 2010, we expect to take more costs out of our business processes, further develop new revenue sources, and open over 150 new rental locations in the U.S. and internationally."

The Company took $34.5 million in restructuring and related charges in the fourth quarter of 2009, primarily attributable to costs associated with job reductions, the closure of rental locations and process reengineering. The Company said it expects restructuring and related charges to diminish significantly throughout 2010.