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We own what we believe is the largest worldwide general use car rental brand and the third largest equipment rental business in the United States, both based on revenues. Our Hertz brand name is one of the most recognized in the world, signifying leadership in quality rental services and products. In our car rental business segment, we and our independent licensees and associates accept reservations for car rentals at approximately 7,600 locations in approximately 145 countries. We are the only car rental company that has an extensive network of company-operated rental locations both in the United States and in all major European markets. We maintain the leading airport car rental market share, by overall reported revenues, in the United States and at the 69 major airports in Europe where we have company-operated locations and which have provided data regarding car rental concessionaire activity. We believe that we also maintain the second largest market share, by revenues, in the off-airport car rental market in the United States. In our equipment rental business segment, we rent equipment through over 340 branches in the United States, Canada, France and Spain, as well as through our international licensees. We and our predecessors have been in the car rental business since 1918 and in the equipment rental business since 1965.
Key Finanacial Details:
Revenues: Total revenues in the quarter ended March 31, 2006 of $1,786.6 million increased by 8.9% from $1,640.6 million in the quarter ended March 31, 2005. Revenues from our car rental operations of $1,399.6 million in the quarter ended March 31, 2006 increased by $66.2 million, or 5.0%, from $1,333.4 million in the quarter ended March 31, 2005. The increase was primarily the result of a 2.2% increase in car rental volume worldwide, a 3.1% increase in pricing worldwide (including a 3.6% increase in the U.S.), an increase in license and tax reimbursement fees, refueling fees and airport concession fees and the effects of foreign currency translation of approximately $27.1 million.
Revenues from our equipment rental operations of $363.0 million in the quarter ended March 31, 2006 increased by $77.6 million, or 27.2%, from $285.4 million in the quarter ended March 31, 2005. The increase was due to higher rental volume and improved pricing primarily in the United States and Canada.
Revenues from all other sources of $23.9 million in the quarter ended March 31, 2006 increased by $2.1 million, or 9.8%, from $21.8 million in the quarter ended March 31, 2005, primarily due to the increase in car rental licensee revenue.
Net Loss: We had a net loss of $49.2 million in the quarter ended March 31, 2006, representing a decrease of $70.1 million from net income of $20.9 million in the quarter ended March 31, 2005. The decrease in net income was primarily due to the 112.0% increase in interest expense over the first quarter of 2005, as well as the net effect of other contributing factors noted above.
Underwriters: Goldman Sachs, Lehman Brothers, Merrill Lynch
Select Competitors: Avis, Budget, National Car Rental