Business
HERTZ REPORTS THIRD QUARTER 2023 RESULTS: REVENUE OF $2.7 BILLION, NET INCOME OF $629 MILLION AND ADJUSTED CORPORATE EBITDA OF $359 MILLION
"Hertz produced record revenue in the quarter, reflecting ongoing strength in demand and stability in pricing. Our premium Hertz brand performed well, and we
About this update from Hertz Global Holdings, Inc
[{"type":"text","content":"\"Hertz produced record revenue in the quarter, reflecting ongoing strength in demand and stability in pricing. Our premium Hertz brand performed well, and we saw further growth in our rideshare business and progress in reinvigorating our value brands,\" said Stephen Scherr, Chair and CEO of Hertz. \"We nonetheless remain focused on the cost side to improve margins,\" Scherr continued. \"Our ongoing investments will give rise to better operating fundamentals, and with the growth opportunities ahead of us, I am confident in the trajectory of our business and the forward for Hertz. Across these efforts, we remain committed to delivering excellent service to our customers while shaping the future of mobility.\"\nESTERO, Fla., Oct. 26, 2023 /PRNewswire/ -- Hertz Global Holdings, Inc. (NASDAQ: HTZ) (\"Hertz\", \"Hertz Global\" or the \"Company\") today reported results for its third quarter 2023.\n\nHIGHLIGHTS \nTotal revenues of $2.7 billionGAAP net income of $629 million, a 23% margin, or $0.92 per diluted shareAdjusted Net Income of $230 million, or $0.70 per adjusted diluted shareAdjusted Corporate EBITDA of $359 million, a 13% marginOperating cash flow of $851 million, adjusted operating cash flow of $215 millionAdjusted free cash flow of $313 millionCorporate liquidity of $1.7 billion at September 30, including $594 million in unrestricted cashCompany utilized $50 million to repurchase 3.0 million common shares during the quarterTHIRD QUARTER RESULTS \nThird quarter revenue of $2.7 billion was a quarterly record for the Company and was characterized by continued strength in demand, particularly in leisure and rideshare channels, coupled with pricing that was well above pre-pandemic levels. Volume increased 16% year over year while average fleet was up 11%, reflecting continued fleet management optimization. Monthly revenue per unit in the quarter of $1,596 benefited from utilization of 83%, an increase of 320 basis points relative to the prior year quarter.\nMonthly fleet depreciation per unit was $282, reflecting a year over year increase of 52%, attributable to a reduction in net vehicle disposition gains which were at elevated levels in 2022.\nDirect operating expense (DOE) increased 17% compared to the third quarter of 2022, largely in line with the increase in volume. On a per transaction day basis, meaningful benefits fro...