Q2 2024 Hertz Global Holdings Inc Earnings Call Transcript
Key Points
- Hertz Global Holdings Inc (HTZ) has strengthened its balance sheet and improved liquidity, providing a stable financial foundation.
- The company is accelerating its fleet rotation, which is expected to lower depreciation and maintenance costs and improve customer experience.
- New leadership with a strong track record in commercial success and financial management has been brought in to drive transformation.
- Investments in technology and product innovation are enhancing operational capabilities and customer service.
- The company is focusing on high RPD (Revenue Per Day) channels and value-added services to improve profitability.
- The fleet rotation process is expected to take until the end of 2025, indicating a prolonged period of elevated depreciation costs.
- The company anticipates using some cash on the operating side through the first half of 2025, which could impact liquidity.
- Higher insurance and labor rates have partially offset the benefits of cost reduction initiatives.
- There is a likelihood of needing to make incremental lease payments to maintain a positive cushion in ABS facilities due to declining vehicle residual values.
- The company reported an adjusted corporate EBITDA loss of $460 million for Q2 2024, significantly impacted by increased depreciation expenses.
Welcome to the Hertz Global Holdings second-quarter 2024 earnings call. (Operator Instructions) I would like to remind you that this morning's call is being recorded by the company. I would now like to turn the call over to our host, Johann Rawlinson, Vice President, Investor Relations. Please go ahead.
Good morning, everyone, and thank you for joining us. By now, you should have our earnings press release and associated financial information. We've also provided slides to accompany our conference call, and these can be accessed through the Investor Relations section of our website.
I want to remind you that certain statements made on this call contain forward-looking information. Forward-looking statements are not a guarantee of performance and by their nature are subject to inherent risks and uncertainties. Actual results may differ materially. Any forward-looking information relayed on this call speaks only as of today's date and the company undertakes no obligation to
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