Hertz Global Holdings reported second-quarter 2012 worldwide revenues of $2.2 billion, an increase of 7.4 percent year-over-year, and a 10.3 percent increase excluding the effects of foreign currency. Worldwide car rental revenues for the quarter increased 6.8 percent year-over-year, a 9.9 percent increase excluding the effects of foreign currency, to a record $1.89 billion. Revenues from worldwide equipment rental for the second quarter were $335 million, up 11 percent year-over-year, a 13.1 percent increase excluding the effects of foreign currency, driven by an 18.8 percent revenue increase in the U.S. and 15.2 percent in North America.

Second-quarter 2012 adjusted pre-tax income was a record $233.9 million, versus $184.4 million in the same period in 2011, and pre-tax income, on a GAAP basis, was $158.7 million, versus $94.6 million in the second quarter of 2011. Corporate EBITDA for the second quarter of 2012 was a record $407.7 million, an increase of 12.6 percent from the same period in 2011.

Second-quarter 2012 adjusted net income was a record $154.4 million, versus $116.6 million in the same period of 2011, resulting in record adjusted diluted earnings per share for the quarter of 35 cents, compared with 26 cents for the second quarter of 2011.

Second-quarter 2012 net income attributable to Hertz Global Holdings, Inc. and subsidiaries' common stockholders, or net income on a GAAP basis, was $92.9 million, or 21 cents per share on a diluted basis, compared with $55 million, or 12 cents per share on a diluted basis, for the second quarter of 2011.

Net cash provided by operating activities was $666.4 million in the second quarter of 2012, compared to $521.3 million in the same period last year, an increase of $145.1 million. The increase was primarily due to an increase in net income before depreciation and amortization. Additionally, corporate cash flow improved by $107.8 million, primarily due to increased advance rates on the company’s fleet debt and earnings before depreciation and amortization, partially offset by an increase in equipment rental fleet spend associated with the company’s continued growth and the timing of fleet payables associated with additions to its U.S. car rental fleet. The company ended the second quarter of 2012 with total debt of $12.5 billion and net corporate debt of $4.11 billion, compared with total debt of $11.7 billion and net corporate debt of $4.01 billion as of June 30, 2011.

Despite overall net REE growth of $885 million, the total debt increase was limited primarily to the addition of $879 million in debt associated with Donlen's fleet. Net corporate debt increased $100 million, but excluding proceeds paid for acquisitions since June 30, 2011, it would have declined over $275 million.

Worldwide car rental revenues were a record $1.89 billion for the second quarter of 2012, an increase of 6.8 percent and a 9.9 percent increase excluding the effects of foreign currency, from the prior-year period. The company achieved record transaction days for the quarter, which increased 7 percent over the second quarter of 2011. U.S. off-airport total revenues for the second quarter increased 12.5 percent year-over-year, and transaction days increased 17.4 percent from the prior-year period. Worldwide rental rate revenue per transaction day (RPD) for the quarter decreased 3.4 percent from the prior-year period. RPD continues to be impacted by the shift in the company’s mix between airport and off-airport rentals. When adjusted for mix, second-quarter U.S. RPD decreased 1.9 percent. Growth in off-airport rentals, and specifically growth in replacement rentals, which have longer rental lengths, has a negative impact on RPD. However, off-airport profit contribution is growing significantly. U.S. airport RPD benefitted from a 1.4 percent increase in airport leisure pricing, but this was more than offset by continued pressure on commercial pricing and in the deep value segment, where new competitors are aggressively discounting rentals.

In Europe, improved pricing in commercial rentals is being more than offset by negative pricing for leisure rentals, where demand is softest. Worldwide car rental adjusted pre-tax income for the second quarter of 2012 was a record $277.4 million, an increase of $35.2 million from $242.2 million in the prior-year period. The result was driven primarily by increased volume, strong cost management performance and lower net depreciation per vehicle, partially offset by a decrease in RPD. As a result, worldwide car rental achieved a record adjusted pre-tax margin of 14.7 percent for the quarter, versus 13.7 percent in the prior-year period.

The worldwide average number of company-operated cars for the second quarter of 2012 was 656,200, an increase of 34.7 percent over the prior-year period, largely as a result of the Donlen acquisition, and a 4.6 percent increase year-over-year excluding the effects of the Donlen acquisition.

Worldwide equipment rental revenues were $335 million for the second quarter of 2012, an 11 percent increase, and a 13.1 percent increase excluding the effects of foreign currency, from the prior-year period, driven by an 18.8 percent revenue increase in the U.S. and 15.2 percent in North America. Adjusted pre-tax income for worldwide equipment rental for the second quarter of 2012 was $42.5 million, an improvement of $9.1 million from $33.4 million in the prior-year period, primarily attributable to the effects of increased volume and pricing and cost management initiatives. Worldwide equipment rental achieved an adjusted pre-tax margin of 12.7 percent and a corporate EBITDA margin of 37.7 percent for the quarter. Worldwide equipment rental corporate EBITDA margin of 37.7 percent was negatively impacted 180 basis points due to insurance claims reserves and legal expenses.

The average acquisition cost of rental equipment operated during the second quarter of 2012 increased by 8.1 percent year-over-year and net revenue earning equipment as of June 30, 2012, was $2.03 billion, compared to $1.91 billion as of March 31, 2012.

The company reaffirms its full-year 2012 revenues, corporate EBITDA, adjusted pre-tax income, adjusted net income and adjusted diluted earnings per share guidance provided on May 2, 2012. The company expects to generate worldwide revenues in the range of $8.9 billion to $9 billion, corporate EBITDA in the range of $1.6 billion to $1.66 billion, adjusted pre-tax income in the range of $870 million to $940 million, adjusted net income in the range of $570 million to $620 million, and adjusted diluted earnings per share in the range of $1.28 to $1.38 (based on 450 million shares).

The company's operating subsidiary, The Hertz Corporation, posted the same revenues for the second quarter of 2012 as the company. Hertz's second-quarter 2012 pre-tax income was $171.7 million versus the company's pre-tax income of $158.7 million. The difference between Hertz's and the company's results is primarily due to additional interest expense recognized by the company on its 5.25 percent convertible senior notes issued in May and September 2009.