ADESA hosted a single digital auction event with vehicles in 22 different locations using the company’s Simulcast+ technology. The sale was hosted in late July on behalf of The Hertz Corporation and sold vehicles to buyers in 19 states across the country. Simulcast+ is ADESA’s new digital auction platform that simulates the competitive live auction environment in a fully digitized, highly automated, live streaming format.

“We launched Simulcast+ months ahead of schedule to support our customers during the COVID-19 lockdowns, and it has grown exponentially since then,” said Jim Hallett, chairman and CEO of KAR Global, ADESA’s parent company. “It’s faster than a physical auction, it’s safer than a physical auction, and it allows sellers and buyers to participate in live auctions anytime, anywhere. Last week’s successful Hertz sale reinforces Simulcast+ as the premier solution to effectively remarket inventory from multiple locations and reach a broad, highly engaged national buyer base.”

The Simulcast+ technology was first utilized by ADESA in April 2020 and has since been used for more than 400 auction events. Over 11,000 buying dealers have participated in those events, casting over 400,000 bids and resulting in tens of thousands of digital vehicle sales.

“We were pleased with the results of this sale in terms of dealer attendance, bidding activity, conversion and proceeds,” said Jeffrey Adams, senior vice president of remarketing at The Hertz Corporation.

For sellers, the Simulcast+ platform offers full control to set and adjust floors, pass on bids, post new asking prices and communicate directly with buyers during the sale. The integrated seller dashboard also captures comprehensive pricing, bidding and behavioral data that can be utilized to inform and market future sales. For buyers, Simulcast+ provides the ease, convenience and safety of bidding from any location and allows access to sales well outside their usual geographic auction market. It also delivers a more transparent bidding experience by clearly displaying every bid and every bidder on every sale. 

Hertz Global Holdings Inc. announced it and certain of its U.S. and Canadian subsidiaries have filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

Hertz reported the impact of COVID-19 on travel demand was “sudden and dramatic, causing an abrupt decline in the company’s revenue and future bookings. Hertz took immediate actions to prioritize the health and safety of employees and customers, eliminate all non-essential spending and preserve liquidity.” Hertz added that “uncertainty remains as to when revenue will return and when the used-car market will fully re-open for sales, which necessitated the action. The financial reorganization will provide Hertz a path toward a more robust financial structure that best positions the company for the future as it navigates what could be a prolonged travel and overall global economic recovery.”

Hertz’s franchised locations, which are not owned by the company, also are not included in the Chapter 11 proceedings. All of Hertz’s businesses globally, including its Hertz, Dollar, Thrifty, Firefly, Hertz Car Sales, and Donlen subsidiaries, are open and serving customers. As of the filing date, the company had more than $1 billion in cash on hand to support its ongoing operations. Depending upon the length of the COVID-19 induced crisis and its impact on revenue, the company may seek access to additional cash, including through new borrowings, as the reorganization progresses.

Hertz Global Holdings, Inc. reported results for its first quarter 2020, showing financial results significantly impacted by COVID-19 pandemic.

The results show consolidated revenue of $1.9 billion and U.S. RAC revenue of $1.4 billion. Hertz Global showed a net loss of $356 million and Adjusted Corporate EBITDA of negative $243 million. Results also show approximately $1.0 billion of unrestricted cash and cash equivalents at March 31, 2020.

“We started the year with positive momentum, extending the strong growth trajectory of the past three years, reflecting consistent increases in both price and volume, productivity improvements and best-in-class fleet management,” said CEO and President, Kathryn V. Marinello. “Yet in just two months, the outbreak of the coronavirus created a major business disruption as global travel demand dropped to almost zero and the U.S. used-car market effectively shut down. We immediately shifted our business priorities to focus on employee and customer safety, expense mitigation and preserving liquidity.”

While ensuring the safety of its people, the company aggressively managed costs and liquidity by right-sizing its staffing and operations to reflect the current market realities, significantly reducing capital spending, canceling new fleet orders and disposing of excess fleet through multiple disposition channels before the shutdown of the used-car market. Company leaders believe these actions will result in approximately $2.5 billion in annualized cost savings.

Hertz Touts 4Q Results

February 26, 2020

Hertz Global Holdings, Inc. reports an increase in U.S. revenue for both the 4th quarter and full-year 2019.

  • Record U.S. RAC revenue, up 6 percent for the fourth quarter, 7 percent for the full year on pricing and volume;
  • Record global revenue, up 1 percent for the fourth quarter, 3 percent for the full year;
  • Global revenue, excluding Donlen adjustments and fx, increased 5 percent for the fourth quarter and full year;
  • Net loss attributable to Hertz Global was $118 million for the fourth quarter, $58 million for the full year; and
  • Adjusted Corporate EBITDA up 11 percent for the fourth quarter, 50 percent for the full year.

“We have made tremendous progress over the past three years in re-igniting topline growth, driving margin expansion and improving customer satisfaction,” said Kathryn Marinello, Hertz’s chief executive officer.

“Our latest results reflect 10 straight quarters of year-over-year revenue growth and nine consecutive quarters of year-over-year adjusted corporate EBITDA growth.”

Hertz Names President

November 26, 2019

Hertz Global Holdings, Inc. announced that Angela Brav has joined the company as president of Hertz’s international division.

Bray brings 25 years of executive experience with InterContinental Hotels Group (IHG) in multiple operational and strategic roles in the U.S. and Europe. She is based at the car rental companys international headquarters near London and will report to Hertz President & CEO Kathryn Marinello.

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