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Travel Rebound Helps Hertz

By Staff Writer August 10, 2021 452

For the second quarter 2021, Hertz Global Holdings generated total revenues of $1.9 billion, reflecting strong leisure travel demand coupled with tighter fleet inventory. Adjusted Corporate EBITDA was $639 million resulting in a 34% margin. The improvement resulted from strong revenues, efficient fleet management and over $400 million of structural, and recurring, cost reduction. The company generated a net loss of $168 million or $1.05 loss per share, which included $633 million of reorganization expenses.

“Hertz delivered an outstanding second quarter as travel continued to rebound,” said Paul Stone, Hertz Global president and chief executive officer. “With resurgent demand and tight supply across the industry, we remained agile in managing our fleet to meet customers’ needs. At the same time, we benefited from the important operational and financial improvements we made through our restructuring process. Our improved financial position and capital structure give us the flexibility and resources to build upon our strengths and capitalize on accelerating momentum in the quarters ahead.

“We are optimistic about a sustained recovery and travel rebound. We are carefully managing our fleet accordingly to deliver superior customer experience while optimizing profitability.”

Hertz Global emerged from its Chapter 11 process on June 30, 2021 as a well-capitalized company with the flexibility and resources to pursue exciting new growth opportunities. The Company anticipates a re-IPO, which includes hosting an investor roadshow and relisting on a major exchange by year-end 2021.

America’s Rental Car (RAC) Summary

Americas RAC

Three Months Ended

June 30,

 

Percent
Inc/(Dec)
2021 vs.
2020

 

Percent
Inc/(Dec)
2021 vs.
2019

($ in millions, except where noted)

2021

 

2020

 

2019

 

 

Total revenues

$

1,643

 

 

$

543

 

 

$

1,849

 

 

NM

 

 

(11)

%

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

664

 

 

$

(485)

 

 

$

166

 

 

NM

 

 

NM

 

Adjusted EBITDA Margin

40

%

 

(89)

%

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Vehicles (in whole units)

350,122

 

 

517,973

 

 

575,172

 

 

(32)

%

 

(39)

%

Vehicle Utilization

78

%

 

28

%

 

81

%

 

 

 

 

Transaction Days (in thousands)

24,992

 

 

13,321

 

 

42,593

 

 

88

%

 

(41)

%

Total RPD (in whole dollars)

$

65.42

 

 

$

37.95

 

 

$

42.71

 

 

72

%

 

53

%

Total RPU Per Month (in whole dollars)

$

1,557

 

 

$

325

 

 

$

1,054

 

 

NM

 

 

48

%

Depreciation Per Unit Per Month (in whole dollars)

$

76

 

 

$

270

 

 

$

245

 

 

(72)

%

 

(69)

%

NM - Not meaningful

 

Americas RAC second quarter 2021 revenues reflect upward pricing trends due to continued positive momentum in domestic travel combined with industry-wide fleet constraints. Americas RAC Adjusted EBITDA of $664 million and margin of 40% reflect the impact of demand-driven pricing, strong residual values, disciplined fleet

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Last modified on Tuesday, 10 August 2021 00:21