Hertz Global Holdings, Inc. has reported results for its fourth quarter and year ended 31st December 2017, with worldwide revenue increasing 4% in the fourth quarter, while net income in the fourth quarter was $616 million, including a one-time benefit of $679 million related to US tax reform.
“The company’s top priority in 2017 was to design and launch an operational improvement plan that would drive sustainable, profitable revenue growth,” said Kathryn Marinello, President and Chief Executive. “In the first half of the year, we right-sized our fleet and began upgrading vehicle quality, redesigned operating processes, including our Ultimate Choice offering, and deployed smart systems for revenue management. In the second half, our performance reflected positive momentum against these initiatives.
“In 2018, we expect to see continued progress from our US improvement programmes. However, we will also have elevated investments throughout the year as we implement several major technology conversions. By 2019, we should begin to evolve toward a more competitive earnings profile.”
For the fourth quarter 2017, total revenues were US$2.1 billion, a 4% increase versus the fourth quarter 2016. Loss before income taxes for the fourth quarter 2017 was $179 million versus a loss of $466 million in the same period last year. Fourth quarter 2017 net income was $616 million, or $7.42 per diluted share, which included a one-time benefit of $679 million related to US tax reform, compared with a net loss from continuing operations of $438 million during the fourth quarter 2016, or $5.28 per diluted share. The company reported adjusted net loss for the fourth quarter 2017 of $64 million, or $0.77 adjusted diluted loss per share, compared with adjusted net loss of $59 million, or $0.71 adjusted diluted loss per share, for the same period last year. Adjusted Corporate EBITDA for the fourth quarter 2017 was $21 million, compared to $12 million in the same period last year.
For the full-year 2017, Hertz Global reported net income of $327 million, or $3.94 per diluted share, including the one-time benefit related to US tax reform, compared with net loss from continuing operations of $474 million, or $5.65 per diluted share, for 2016. Total revenues for 2017 were unchanged from 2016 at $8.8 billion. The company reported adjusted net loss for 2017 of $132 million, or $1.59 adjusted diluted loss per share, compared with adjusted net income of $41 million, or $0.49 adjusted diluted earnings per share, for the same period last year. Adjusted corporate EBITDA for 2017 was $267 million, versus $553 million for 2016.