Financial Data and Key Metrics Changes - Revenue for Q4 was just over $2 billion, representing a 7% year-over-year decrease largely driven by a decrease in volume [24] - Adjusted EBITDA for the quarter was a loss of $357 million [24] - Fleet utilization improved year-over-year for the first time in 2024, with a DPU (depreciation per unit) target of below $300 [25][32] Business Line Data and Key Metrics Changes - The fleet size was down 4% year-over-year in Q4, with a 7% reduction compared to the start of 2024 [18] - The company sold over 100,000 vehicles in Q4, significantly up from just over 30,000 in Q4 2023 [9] - The average fleet consisted of over 60% vehicles one year old or less by year-end 2024 [9] Market Data and Key Metrics Changes - Hertz serviced 154 million transaction days in 2024, with year-over-year utilization improving by 270 basis points from Q3 to Q4 [11] - Loyalty enrollments grew 18% year-over-year in Q4, indicating a positive trend in customer retention [21] Company Strategy and Development Direction - The company is focused on a "back to basics" roadmap anchored by three core financial pillars: fleet, revenue, and cost management [8] - A transformative fleet rotation strategy is underway, with a goal to complete it by year-end 2025 [9] - The company aims to enhance customer experience through improved service recovery and digital experiences [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2024 as a challenging year but expressed optimism about the foundational changes being implemented for long-term success [5] - The company expects to face a seasonal EBITDA loss in Q1 2025, with a gradual improvement throughout the year [31] - Management is confident in achieving a sub-$300 DPU by the end of 2025, supported by improved fleet management and sales strategies [40][44] Other Important Information - The company raised $500 million through the issuance of additional first lien senior secured notes due in 2029 to enhance liquidity [32] - Upcoming debt maturities are being actively planned for, with confidence in managing these obligations [33] Q&A Session Summary Question: What metrics should be used to gauge Hertz's operational progress? - Management highlighted DPU as a key metric, aiming for less than $300, along with utilization and NPS (Net Promoter Score) as critical indicators [40][42] Question: How should net DPU be expected to trend throughout the year? - Management indicated that net DPU would be inflated in Q1 but expected to decline through the year, aiming for sub-$300 by year-end [43][44] Question: What is the outlook for fleet size moving forward? - Management expects to maintain a smaller fleet while maximizing RPU (Revenue Per Unit) through improved demand capture strategies [45][46] Question: What is the medium or long-term margin target for the company? - Management suggested using North Star metrics, targeting RPU above $1,500 and DOE (Daily Operating Expense) in the low 30s [50][52] Question: How is the company addressing liquidity and cash considerations? - Management confirmed a strong liquidity position of $1.8 billion, with plans to manage cash flow through fleet rotation and operational improvements [67][70] Question: What avenues are being explored for vehicle disposals? - Management is focusing on increasing retail sales channels while reducing reliance on auctions, aiming for higher net margin sales [73][74] Question: What options are available for refinancing upcoming maturities? - Management expressed confidence in addressing refinancing needs, with ongoing discussions for the revolver due in the first half of the year [78][79]