Hertz(HTZ)2023-10-25 16:00Financial 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]