Tina Bellon

(Reuters) – Hertz Global Holdings Inc. (OTC) Inc. announced on Wednesday that the company posted a new adjusted profit record in its fourth quarter. The increase in prices has not deterred consumers from renting cars and traveling, which was reflected in higher rents.

Florida’s rental car agency reported that adjusted earnings before interest and taxes (depreciation) for the three-month period ended December 31 were $628million, which was higher than an analyst estimate of $595million, Refintiv data showed.

Hertz lost $260million net due to charges in connection with its restructuring after bankruptcy.

Following the exit from U.S. bankruptcy proceedings, the company achieved a stock exchange return and is now raising debt in order to repay its preferred stock.

Hertz reported fourth quarter revenue of $1.9Bn, which was in line with Wall Street’s expectations but about 12% less than third-quarter revenues.

The average monthly revenue per vehicle, a key industry indicator that measures pricing and vehicle usage, was almost 30% higher than the quarter prior to the pandemic.

Higher revenue results from an industry-wide dramatic increase in vehicle prices. Customers are returning to rental agencies for business and leisure travel after the pandemic has passed.

The rental agencies claim they’re trying to stockpile their vehicles but struggle to get them in the face of a worldwide shortage of semiconductors that is limiting global auto production.

Mark Fields, Hertz’s interim chief executive officer, said that Hertz wanted to expand its car fleet profitably.

Fields stated in an interview to Reuters that he would only expand his fleet to the extent travel rises.

Fields will be succeeded by Stephen Scherr, former Goldman Sachs finance chief (NYSE:), on February 28.