Business
HERTZ REPORTS SECOND QUARTER 2024 RESULTS
"We're moving quickly with a best-in-class leadership team, a strategy laser-focused on delivering sustainable returns and elevating our operational
About this update from Hertz Global Holdings, Inc
[{"type":"text","content":"\"We're moving quickly with a best-in-class leadership team, a strategy laser-focused on delivering sustainable returns and elevating our operational performance across the business,\" said Gil West, Hertz CEO. \"During the second quarter, we bolstered our liquidity to expedite our cost and revenue improvement initiatives and accelerate our fleet refresh to provide vehicles aligned with customer needs. We are at an exciting inflection point in our path to generate greater value for our customers, employees and shareholders – and I am more confident than ever in our plan, our team and the road ahead.\"\nESTERO, Fla., Aug. 1, 2024 /PRNewswire/ -- Hertz Global Holdings, Inc. (NASDAQ: HTZ) (\"Hertz\", \"Hertz Global\" or the \"Company\") today reported results for its second quarter 2024.\n\nOVERVIEW \nRevenue of $2.4 billionGAAP net loss of $865 million, a negative 37% margin, or $2.82 loss per diluted shareAdjusted net loss of $440 million, or $1.44 loss per diluted shareAdjusted Corporate EBITDA of negative $460 million, a negative 20% margin, due mainly to an increase in vehicle depreciation of $706 million largely driven by acceleration of the Company's fleet refreshGAAP operating cash flow of $546 million; Adjusted operating cash outflow of $576 million and adjusted free cash outflow of $553 millionThe Company raised $1 billion during the quarter to bolster liquidity and de-risk its fleet refreshCorporate liquidity of $1.8 billion at June 30, 2024SECOND QUARTER RESULTS \nSecond quarter revenue was $2.4 billion. Demand was healthy yet the Company remained disciplined on capacity and prioritized rate. Execution of the Company's revenue strategy continued to narrow its year-over-year RPD decline, which was 3% for the quarter and moderated to 2% in June.\nVehicle depreciation increased $706 million compared to the prior year quarter due mainly to a decline in future and current residual values. As previously announced, acceleration of the Company's fleet refresh shortened the hold period on a substantial portion of its fleet, which resulted in DPU of $600 for the quarter, up sequentially from Q1 2024. The Company expects to substantially complete the refresh by the end of 2025, at which time it expects DPU to normalize in the low $300s.\nDirect operating expense on a per transaction day basis in the second quarter of 2024 increase...