Hertz 2013 Annual Report Download - page 54

Table of Contents
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Notes to our audited annual consolidated financial statements included in this Annual Report under the caption “Item 8—Financial
Statements and Supplementary Data.”
U.S. Car Rental Segment
Revenues from our U.S. car rental segment increased 9.5%, primarily as a result of increases in U.S. car rental transaction days of 12.6%,
incremental volume associated with the Recent Acquisitions and refueling fees of $32.0 million. These increases were partly offset by a
decrease in Total RPD in the U.S.
U.S. Total RPD for the year ended December 31, 2012 decreased 2.8% from 2011. U.S. airport RPD decreased 3.1% and U.S. off-airport
RPD declined by 1.4%. U.S. airport RPD was negatively impacted by a shift to longer life and lower RPD rentals (due to a proportionately
higher amount attributable to off-airport).
International Car Rental Segment
Revenues from our international car rental segment decreased 8.2%, primarily as a result of decreases in international car rental transaction
days of 0.7%, Total RPD of 1.9% and refueling fees of $9.8 million, as well as the effects of foreign currency translation of approximately
$140.6 million.
International Total RPD for the year ended December 31, 2012 decreased 1.9% from 2011 primarily due to a decline in Europe's airport RPD
which was due to the competitive pricing environment and uncertain economic conditions.
Worldwide Equipment Rental Segment
Revenues from our worldwide equipment rental segment increased 14.5%, primarily due to increases of 12.3% and 3.6% in worldwide
equipment rental volumes and pricing, respectively, partly offset by the effects of foreign currency translation of approximately $11.2 million.
The increase in volumes were primarily due to strong industrial performance, especially oil and gas related, and improvement in the
construction sector in part reflecting higher rental penetration. Additionally, Cinelease and other 2012 equipment rental segment acquisitions
contributed to the increase in equipment rental revenues.
All Other Operations Segment
Revenues from all other operations increased $ 328.8 million from the prior year period, primarily due to increased revenues from our
Donlen operations, primarily attributable to a full year of Donlen operations in 2012 as compared to four months of operations in 2011.
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Expenses:
Fleet related expenses $1,145.7
$1,120.6
$ 25.1
2.2 %
Personnel related expenses 1,563.2
1,478.0
85.2
5.8 %
Other direct operating expenses 2,097.1
1,974.5
122.6
6.2 %
Direct operating 4,806.0
4,573.1
232.9
5.1 %
Depreciation of revenue earning equipment
and lease charges 2,128.9
1,896.2
232.7
12.3 %
Selling, general and administrative 968.0
767.5
200.5
26.1 %
Interest expense 597.8
650.3
(52.5)
(8.1)%
Interest income (4.9)
(5.5)
0.6
(10.9)%
Other (income) expense, net 35.5
62.5
(27.0)
(43.2)%
Total expenses $ 8,531.3
$7,944.1
$ 587.2
7.4 %
Total expenses increased 7.4%, but total expenses as a percentage of revenues decreased from 95.7 for the year ended December 31, 2011
to 94.5 for the year ended December 31, 2012.
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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