PARK RIDGE, N.J. -

Hertz Global Holdings closed 2010 with quite a fourth-quarter financial turnaround, making significant improvements in adjusted pre-tax income, adjusted net income and worldwide revenue.

Along with speculating on how this year might unfold, the company shared this week that its fourth-quarter worldwide revenues came in at $1.8 billion, an increase of 5.5 percent year-over-year or a 6.3-percent increase excluding the effects of foreign currency. The company determined worldwide car rental revenues for the quarter climbed 5.8 percent (a 6.9-percent uptick excluding the effects of foreign currency) to $1.5 billion. And revenues from worldwide equipment rental for the fourth quarter settled at $286.1 million, a figure Hertz said was up 4.4 percent over the prior-year period or 4.1 percent excluding the effects of foreign currency.

As a result, officials computed that their fourth-quarter adjusted pre-tax income totaled $68.0 million, versus $39.2 million in the same period in 2009. That’s an increase of $28.8 million or 73.5 percent.

Hertz conceded that it still sustained pre-tax loss on a GAAP basis during the fourth quarter totaling $7.8 million. However, the company said its total during the year-ago quarter on this balance sheet item was much higher — a loss of $67.4 million.

Turning back to more positive readings, Hertz revealed that its fourth-quarter corporate EBITDA was $265.7 million, an increase of 20.2 percent versus the same period in 2009.

Officials also highlighted their fourth-quarter adjusted net income came in at $40.4 million, an increase of 79.6 percent from $22.5 million coming in the same period of 2009. They noted that figure resulted in adjusted diluted earnings per share for the quarter of 10 cents, compared with 6 cents for the fourth quarter of 2009.

Although looking again on a GAAP basis, officials pointed out the fourth-quarter net loss attributable to Hertz Global Holdings and subsidiaries’ common stockholders was $29.2 million or 7 cents per share on a diluted basis. The amounts were slightly lower than the year-ago quarter when the net loss settled at $30.9 million or 8 cents per share on a diluted basis.

A couple of other items related to the company’s fourth-quarter performance, including the company taking $14.4 million in restructuring and related charges. Management indicated this amount stemmed primarily from job reductions, the closure of rental locations and process reengineering.

The company pointed out that it ended the fourth quarter with total debt of $11.3 billion and net corporate debt of $3.36 billion, compared with total debt of $12.0 billion and net corporate debt of $3.78 billion as of Sept 30. Officials found total debt decreased primarily due to a decrease in fleet debt related to seasonality, partly offset by an increase due to the private offering of $500 million of 7.375 percent senior notes issued in December.

Hertz added net cash provided by operating activities was $479.1 million in the fourth quarter, compared with $498.6 million last year.

The series of positive fourth-quarter developments left Hertz chairman and chief executive officer Mark Frissora upbeat.

“As previously announced on Jan 24, we beat our high end guidance for all adjusted earning metrics for the full year 2010 due to strong performance by our car rental businesses and consistent sequential improvement by HERC,” Frissora began.

“We reduced costs by an additional $438 million during 2010, bringing our four-year total to almost $1.7 billion, and we generated approximately $380 million in incremental revenues from a variety of new products, services and geographies,” he continued.

“In 2011, Hertz will continue to focus on incremental cost management and revenue growth, as well as additional refinancings to optimize our global debt structure, including improvements to our maturity profile,” Frissora went on to say. “In 2010, we completed almost $6 billion of global debt refinancings on highly favorable terms which will materially decrease our interest expense through 2015.”

4Q Car Rental Performance

Moving into a discussion just about its worldwide car rental operation, Hertz discovered this segment’s revenues totaled $1.5 billion in the fourth quarter, an increase of 5.8 percent (or a 6.9-percent increase excluding the effects of foreign currency) above the prior-year period.

The company noted transaction days for the quarter increased 6.6 percent — 6.7 percent in the U.S. and 6.3 percent internationally. Hertz found U.S. off-airport total revenues for the fourth quarter increased 13.8 percent year-over-year, and transaction days increased 11.6 percent.  The company’s rental rate revenue per transaction day for the quarter slid down 0.9 percent from the prior year period. It was off by 1.5 percent in the U.S. but only 0.1 percent internationally.

Elsewhere, Hertz revealed its fourth-quarter worldwide car rental adjusted pre-tax income was $130.3 million, an increase of $33.4 million from $96.9 million in the prior-year period. Officials explained the result was driven by increased volume and strong cost management performance.

As a result, the company said its worldwide car rental operation achieved an adjusted pre-tax margin, based on revenues, of 8.4 percent for the quarter, versus 6.6 percent in the prior-year period.

Hertz noted the worldwide average number of company-operated units in the fourth quarter of was 427,600, an increase of 3.1 percent over the prior-year period.

4Q Equipment Rental Performance

Switching over to a report about its worldwide equipment rental operations, Hertz indicated revenues totaled $286.1 million for the fourth quarter — a 4.4-percent increase (or a 4.1-percent uptick excluding the effects of foreign currency) from the year-ago quarter.

The company found this division’s fourth-quarter adjusted pre-tax income climbed 35.7 percent from $25.8 million to $35.0 million. Management said the jump primarily was attributable to the effects of increased volume and cost management initiatives.

Hertz mentioned its worldwide equipment rental activities achieved an adjusted pre-tax margin, based on revenues, of 12.2 percent, a 280 basis-point improvement over the prior-year period. The company added its corporate EBITDA margin, based on revenues, was 40.1 percent for the quarter.

Officials determined the average acquisition cost of rental equipment operated during the fourth quarter decreased by 3.1 percent year-over-year and net revenue earning equipment as of Dec. 31 was $1.703 billion — a 7.0 percent drop from the amount as of the close of 2009.

Hertz Shares Full-Year Results

After rattling off how the company and its various segments fared in the fourth quarter, the company tallied up its full-year results for 2010.

Hertz calculated that 2010 worldwide revenues grew 6.5 percent over the prior year to $7.6 billion. While the company determined its worldwide car rental revenue climbed 8.5 percent above the 2009 total to $6.5 billion, it conceded worldwide equipment rental revenue for the year settled at $1.07 billion, a 3.7 percent downtick from the previous year.

Officials found their adjusted pre-tax income for 2010 was $348.1 million, versus $198.9 million in the prior year. That’s an increase of $149.2 million or 75.0 percent.

Like in the fourth quarter, Hertz suffered a pre-tax loss on a GAAP basis for all of 2010, but it was significantly improved over the prior year. The company’s pre-tax loss for 2010 was $13.6 million, versus a pre-tax loss of $171.0 million in 2009.

Meanwhile, Hertz learned its corporate EBITDA for the year was $1.101 billion, an increase of 12.4 percent from 2009.

Furthermore, officials declared that its full-year adjusted net income came in at $212.4 million, representing an 82.2-percent spike from 2009. The total resulted in adjusted diluted earnings per share for the year of 52 cents, compared with 29 cents in the prior year.

Hertz conceded that its full-year net loss on a GAAP basis settled at $48.0 million or 12 cents per share on a diluted basis. However, again, the year-over-year improvement was substantial as the 2009 net loss was $126.0 million or 34 cents per share on a diluted basis.

Wrapping up its full-year analysis, Hertz determined that it ended 2010 with total debt of $11.3 billion and net corporate debt of $3.36 billion, compared with total debt of $10.4 billion and net corporate debt of $3.63 billion as of Dec. 31, 2009.

The company explained its total debt increased primarily because of the private offerings of $700 million of 7.50 percent senior notes issued in September 2010 and $500 million of 7.375 percent senior notes issued in December 2010.

Officials added net cash provided by operating activities was $2.208 billion for the year, compared with $1.693 billion in 2009.

Hertz Provides 2011 Outlook

When looking at how Hertz might perform this year, officials made the following forecasts:

—Revenues: $7.95 to $8.1 billion.

—Corporate EBITDA: $1.265 to $1.305 billion.

—Adjusted pre-tax income: $525 to $565 million

—Adjusted net income: $330 to $355 million.

Hertz emphasized its forecast range is based on the projection of modest economic growth, a strong U.S. dollar and incremental franchising of certain rental operations.

The company also explained that it has replaced adjusted diluted earnings per share guidance with guidance for adjusted net income. Management believes the adjusted diluted number of shares outstanding is estimated to fluctuate within a range of 413 million to 450 million through the year. Hertz added the estimate for the first quarter of this year is 413 million shares outstanding.

“For example, based on 440 million adjusted diluted shares outstanding, the company’s full-year 2011 guidance for adjusted diluted earnings per share is 81 cents at the upper end of the guidance range,” Hertz officials stated.

“The company will provide an estimate of forecasted adjusted diluted shares outstanding on a quarterly basis,” they concluded