Hertz Global disclosed that Q1 results are likely to be below consensus (Capital IQ consensus $0.09 & revenue of $2.533 bln)
- "On May 13, 2014, each of Hertz Global Holdings, Inc. and The Hertz Corporation delayed the filing of its Form 10-Q for the period ended March 31, 2014. During the preparation of the First Quarter 10-Q, errors were identified relating to Hertz's conclusions regarding the capitalization and timing of depreciation for certain non-fleet assets, allowances for doubtful accounts in Brazil, as well as other items. Hertz continued its review and recently identified additional errors related to allowances for uncollectible amounts with respect to renter obligations for damaged vehicles and restoration obligations at the end of facility leases."
- For the first quarter ended March 31, 2014, the Company's results are likely to be below consensus, reflecting costs associated with the accounting review, other unusual items, and certain anticipated operating results, although the Company will not be certain until the review referred to in Item 4.02 above is completed.
- Highlights for the 2014 first quarter for U.S. RAC include: · U.S. rental car revenue increased approximately 4.5% over the same period last year. U.S. rental car total revenue per day was down 1.6% compared with last year due to excess fleet creating a supply/demand imbalance, the loss of the Easter holiday, and a strategic change in the business mix with the introduction of the Firefly discount brand on airport and significant, rapid growth in insurance replacement business.
- Adjusted for volume mix, total revenue per day was flat. The primary Hertz Classic brand on airport was up approximately 1% in the quarter, supported in part by positive commercial pricing. International rental car revenue increased approximately 1.7% over the same period last year.
- Europe's top line improved as the Company opened 12 new off airport locations, generated incremental Firefly revenue, launched its Dream Car collection in five countries and had a significant increase in ancillary sales.