Hertz Global Holdings Inc (NASDAQ: HTZ) plans on selling 20,000 electric vehicles it currently has in its U.S. fleet. Shares of the car rental company opened in the red on Thursday.Hertz will reinvest in gas-powered vehiclesCopy link to sectionThe Nasdaq-listed firm also confirmed in its regulatory filing today that part of the proceeds from this sale will be used to reinvest in gas-powered vehicles. Hertz cited higher repair costs and weak demand for electric vehicles for the switch that it expects will re ...

Tesla cars in a Hertz rental car parking garage in San Francisco. Photo: Dylan Stewart/Image of Sports/Newscom/ZUMA PressHertz is selling about a third of its global electric vehicle fleet, citing weaker demand for its electrified rentals.The car-rental company said in a regulatory filing on Thursday that it would use part of the proceeds from selling about 20,000 EVs in the U.S. to purchase internal-combustion-engine vehicles. ...

Rental car giant Hertz is selling 20,000 all-electric vehicles. The sale will generate a loss of about $245 millionExternal link. Investors aren’t happy. ...

Hertz Global Holdings Inc. said Thursday it is selling about 20,000 electric vehicles from its fleet, or about one-third of the total, and expects to book charges of about $245 million in the fourth quarter.The move is aimed at better balancing supply and expected demand for EVs, allowing the car-rental company to scrap a disproportionate number of lower-margin rentals and reduce damage expense associated with EVs. Collision and damages costs for EVs remained high in the fourth quarter, Hertz said in a regu ...

ESTERO, Fla., Jan. 11, 2024 /PRNewswire/ -- Hertz Global Holdings, Inc. (NASDAQ: HTZ)  (the "Company") announced today that it plans to report its fourth quarter 2023 financial results at approximately 7:30 a.m. ET on Tuesday February 6, 2024 followed by an earnings call at 8:30 a.m. ET.A live webcast of the call will be available on the Investor Relations page of the Company's website at https://ir.hertz.com. To access the call by phone, please register through this link: Hertz Q4 2023 earnings call teleco ...

Hertz Global Holdings, Inc. (NASDAQ:HTZ) Q3 2023 Earnings Conference Call October 26, 2023 8:30 AM ET Company Participants Johann Rawlinson - Investor Relations Stephen Scherr - Chief Executive Officer Alexandra Brooks - Executive Vice President and Chief Financial Officer Conference Call Participants Chris Woronka - Deutsche Bank Ian Zaffino - Oppenheimer Hans Hoffman - Jefferies Ryan Brinkman - JPMorgan Chris Stathoulopoulos - SIG Operator Welcome to the Hertz Global Holdings Third Quarter 2023 Earnings C ...

>500k Note: Data For Full Year 2022 Q3 2022 Q3 2023 DRIVERS We continue to experience a strong overall demand environment AVERAGE FLEET 533k 590k +11% Demand-driven growth in leisure, rideshare and corporate in Q3 2023 DPU $185 $282 +52% DOE/TRANSACTION DAY $34.53 $34.78 +1% Excluding net collision and damage costs in both periods, DOE per transaction day was down 10% ADJ. FREE CASH FLOW $505M $313M Impacted by reduced net gain on disposition of vehicles and (38%) materially lower EBITDA GLOBAL RESULTS – SE ...

Financial Performance and Expenses - International RAC's SG&A decreased by $13 million in Q3 2023 compared to 2022, primarily due to reduced litigation reserves and decreased incentive compensation[226] - Vehicle interest expense for International RAC increased by $34 million in Q3 2023 compared to 2022, driven by higher market interest rates and higher debt levels[227] - Depreciation of revenue earning vehicles and lease charges for International RAC increased by $55 million in the nine months ended September 30, 2023, driven by higher Average Vehicles and vehicle acquisition costs[229] - DOE for International RAC increased by $96 million in the nine months ended September 30, 2023, primarily due to increased volume[230] - Vehicle interest expense for International RAC increased by $58 million in the nine months ended September 30, 2023, due to higher market interest rates and debt levels[231] - Net income for the nine months ended September 30, 2023, was $853 million, compared to $1,359 million in 2022[45] - Revenue earning vehicles expenditures were $8,312 million in the nine months ended September 30, 2023, compared to $7,853 million in 2022[45] - Proceeds from issuance of vehicle debt were $5,741 million in the nine months ended September 30, 2023, compared to $8,282 million in 2022[45] - Cash and cash equivalents and restricted cash decreased by $362 million in the nine months ended September 30, 2023, compared to a decrease of $1,142 million in 2022[47] Revenue and Demand - Total revenues for International RAC increased by $193 million in the nine months ended September 30, 2023, with Transaction Days up 17% due to increased travel demand[228] Tax and Financial Adjustments - Hertz recorded a tax benefit of $68 million for Q3 2023, resulting in an effective tax rate of -30%[96] - Hertz recorded a tax benefit of $184 million for the nine months ended September 30, 2023, resulting in an effective tax rate of -27%[98] - Hertz recognized an additional $163 million ordinary loss related to the tax restructuring of European operations in the nine months ended September 30, 2023[94] - Hertz's tax changes in Q3 2023 were driven by benefits from electric vehicle credits and lower pre-tax income[97] - Hertz's tax changes in the nine months of 2023 were driven by lower pre-tax income, electric vehicle credits, and uncertain tax benefits related to European operations[93] Asset Sales and Gains - Hertz recognized a pre-tax gain of $133 million from the sale-leaseback of its Los Angeles airport location in March 2023[58] - Hertz received an additional $29 million pre-tax gain from the sale of non-vehicle capital assets in February 2023[57] Operational and Market Insights - Hertz's vehicle rental operations are seasonal, with decreased activity in winter and heightened activity in spring and summer[53] - Hertz operates globally through the Hertz, Dollar, and Thrifty brands, with locations in the U.S., Africa, Asia, Australia, Canada, the Caribbean, Europe, Latin America, the Middle East, and New Zealand[51] - Hertz Global does not anticipate a material impact from the Inflation Reduction Act's 15% corporate alternative minimum tax and 1% excise tax on stock buybacks[95]

Financial Data and Key Metrics Changes - Revenue for the second quarter was $2.4 billion, up 19% sequentially, with adjusted corporate EBITDA at $347 million, reflecting strong demand and lower fleet carrying costs [16][22] - Revenue per day (RPD) in Q2 was $61.14, up from Q1, although down year-over-year due to last year's tight fleet levels [17][40] - Adjusted corporate EBITDA margin was 14%, with depreciation per unit at $195, favorable compared to previous expectations [18][22] Business Line Data and Key Metrics Changes - Rideshare revenue grew by 84% year-over-year and 14% sequentially, with transaction days increasing by 69% year-over-year [6][40] - Fleet utilization reached 82%, 400 basis points higher than Q1 and 230 basis points better year-over-year, enabling better pricing and higher revenue per unit [4][41] - Direct operating expenses (DOE) per transaction day improved by $2 sequentially to $34, driven by better internal labor productivity [23] Market Data and Key Metrics Changes - International inbound volume was at 78% of 2019 levels, with strong demand from American travelers to Europe [40][66] - The company noted a continuing tailwind in US inbound travel and further recovery in business travel, with no current evidence of softening demand [5][40] Company Strategy and Development Direction - The company is focusing on a dynamic approach to fleet management, emphasizing high utilization to command better pricing and improve margins [4][10] - Strategic initiatives include revitalizing the Dollar brand and enhancing digital properties to capture a younger, value-driven consumer [12] - The company is investing in the largest EV rental fleet in North America, positioning itself for long-term value through electrification and fleet management [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand growth, with expectations for a sequential uptick in revenue and improved RPD in Q3 [25][40] - The company acknowledged risks of a weaker economy but maintained a positive outlook based on strong travel trends prevailing over economic concerns [5][40] - Management highlighted the importance of disciplined fleet management in a declining residual environment, focusing on profitable channels for vehicle disposition [51][67] Other Important Information - The company repurchased 6.3 million shares for $100 million, with approximately $950 million remaining under the board's authorization [42] - The transition to cloud-based operations is expected to yield significant cost savings by reducing reliance on third-party service providers [11][62] Q&A Session Summary Question: Outlook for 2024 and demand expectations - Management sees no abatement in baseline demand fundamentals, expecting continued growth in Rideshare, Europe, and Dollar [28] Question: Impact of depreciation and vehicle sales - The company noted $110 million gains on car sales in Q2, with expectations for a dynamic fleet impacting future depreciation rates [54][55] Question: Expense management during cloud transition - Management indicated that transitioning to the cloud will lead to significant savings by reducing reliance on third-party providers [62] Question: Update on Hertz and Uber partnership in Europe - The partnership is starting in London and Amsterdam, with expectations for better risk management and potential for improved economics compared to the US [64]

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