HERTZ REPORTS THIRD QUARTER 2024 RESULTS

Overview - Hertz reported third quarter 2024 revenue of $2.6 billion, a decrease of 5% compared to $2.7 billion in the same period last year [2][12] - The company experienced a GAAP net loss of $1.3 billion, translating to a negative margin of 52%, or a loss of $4.34 per diluted share [2][9] - Adjusted net loss was $208 million, or $0.68 loss per diluted share, compared to a profit of $230 million in the prior year [2][9] - Adjusted Corporate EBITDA was negative $157 million, down from positive $359 million in the previous year [2][9] Financial Performance - The company recorded a non-cash asset impairment charge of $1.0 billion due to declining fleet residual values [2][9] - Vehicle depreciation increased significantly to $937 million, up from $501 million in the prior year [2][9] - Direct vehicle and operating expenses decreased to $1.47 billion, down from $1.50 billion year-over-year [9][12] - Corporate liquidity stood at $1.6 billion as of September 30, 2024 [2] Operational Insights - Average vehicles in the fleet decreased by 1% to 583,516 units compared to 590,489 units in the previous year [2][12] - Vehicle utilization rate was 82%, down from 83% year-over-year [2][12] - The company aims to complete its fleet rotation by the end of 2025, expecting depreciation per unit to normalize to under $300 [2][9] Segment Performance - The Americas RAC segment generated revenues of $2.06 billion, a 5% decline from $2.17 billion in the prior year [2][12] - The International RAC segment reported revenues of $514 million, down 3% from $531 million [2][12] - Adjusted EBITDA for the Americas RAC segment was negative $169 million, compared to positive $302 million in the previous year [2][12] Cash Flow and Debt - GAAP operating cash flow was $894 million, while adjusted operating cash outflow was $132 million [2][9] - Total debt increased to $16.96 billion from $15.69 billion year-over-year [10][12] - The company reported a net cash used in investing activities of $487 million for the quarter [11]