Hertz(US:HTZ)2025-02-13 13:05Financial Performance - Q4 2024 revenue was $2.0 billion, a decrease of 7% compared to $2.184 billion in Q4 2023[9] - GAAP net loss for Q4 2024 was $479 million, or $1.56 loss per diluted share, compared to a net loss of $348 million in Q4 2023[8] - Revenues for Q4 2024 were $2,040 million, a decrease of 6.6% compared to $2,184 million in Q4 2023[21] - For the full year 2024, Hertz Global's revenues were $9,049 million, down 3.4% from $9,371 million in 2023[31] - Hertz Global reported revenues of $2,040 million for Q4 2024, a decrease of 6.6% from $2,184 million in Q4 2023[27] - Adjusted net loss for Q4 2024 was $362 million, with adjusted diluted earnings per share of $(1.18)[34] - Hertz Global's net loss for Q4 2024 was $479 million, compared to a net loss of $348 million in Q4 2023[34] Operational Metrics - Average vehicles in the fleet decreased by 4% year over year to 532,884 in Q4 2024, down from 553,545 in Q4 2023[9] - Total RPU per month decreased by 1% to $1,376 in Q4 2024, down from $1,391 in Q4 2023[9] - Average rentable vehicles decreased to 497,875 in Q4 2024 from 527,267 in Q4 2023, a decline of 5.6%[51] - Vehicle utilization improved to 79% in Q4 2024 compared to 78% in Q4 2023[51] - The company reported a total of 35,998 transaction days in Q4 2024, down from 37,602 in Q4 2023, a decrease of 4.3%[51] Expenses and Costs - Total expenses for Q4 2024 were $2,603 million, down from $2,677 million in Q4 2023, with significant increases in depreciation of revenue earning vehicles and lease charges[21] - Direct vehicle and operating expenses rose by 2% year over year in Q4 2024, primarily due to increased insurance costs[6] - The company reported a significant increase in direct vehicle and operating expenses, totaling $1,413 million in Q4 2024, up from $1,388 million in Q4 2023[27] - Total expenses for the three months ended December 31, 2024, were $2,603 million, a decrease of 2.8% from $2,677 million in the same period of 2023[41] Cash Flow and Liquidity - Strong corporate liquidity of $1.8 billion was reported as of December 31, 2024[8] - Cash and cash equivalents at the end of Q4 2024 were $592 million, a decrease from $764 million at the end of Q4 2023[22] - Operating cash flow for the twelve months ended December 31, 2024, was $2,224 million, compared to $2,474 million for the same period in 2023[24] - Adjusted operating cash flow for the twelve months ended December 31, 2024, was $(1,755) million, compared to $44 million in 2023[46] Debt and Financial Leverage - Total debt increased to $16,335 million in Q4 2024, up from $15,691 million in Q4 2023, indicating a rise in financial leverage[22] - Net debt as of December 31, 2024, was $15,355 million, an increase from $14,668 million as of December 31, 2023[49] - Total interest expense, net for the twelve months ended December 31, 2024, was $858 million, up from $596 million in 2023, reflecting a 43.9% increase[44] - Hertz Global's total interest expense for the full year 2024 was $959 million, up from $793 million in 2023[31] Asset Management - The company’s total assets decreased to $21,802 million in Q4 2024 from $24,605 million in Q4 2023[22] - The company reported a long-lived assets impairment of $1,048 million for the twelve months ended December 31, 2024[21] - Depreciation of revenue-earning vehicles and lease charges, net for the twelve months ended December 31, 2024, was $3,611 million, significantly higher than $2,039 million in 2023[44] Future Outlook and Strategy - The operational transformation is expected to be substantially completed by the end of 2025, focusing on strengthening the core business[7] - The company plans to continue focusing on improving operational efficiency and managing costs in the upcoming quarters[21] - The company anticipates reduced EV-related tax credits will impact its U.S. federal tax provision throughout 2024[41] Adjusted Metrics - Adjusted Corporate EBITDA loss narrowed to negative $357 million in Q4 2024, improving by 7% from a loss of $382 million in Q4 2023[9] - Hertz Global's adjusted Corporate EBITDA margin for Q4 2024 was -18%, compared to -17% in Q4 2023[38] - Adjusted total revenues for the twelve months ended December 31, 2024, were $9,100 million, down from $9,418 million in 2023, reflecting a decrease of 3.4%[51] - Adjusted Net Income (Loss) is calculated to eliminate the impact of GAAP income tax, vehicle and non-vehicle debt-related charges, and other non-recurring items, providing a clearer view of operational performance[64]