Hertz reports record third quarter EBITDA results

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Hertz Global Holdings reported revenues of $ 2.2 billion in the third quarter of 2021, of which $ 1.9 billion attributed to the Americas and $ 312 million to international operations. The total compared to $ 1.1 billion a year ago.

Net income for the quarter was $ 605 million compared to a loss of $ 222 million for the quarter ending September 30, 2020. Adjusted corporate profit before interest, tax, depreciation was $ 860 million for the quarter. with a margin of 39 percent – both records for the company’s third quarter results. Earnings from EBITDA increased from a decline of $ 26 million in 2020 and represented a 134% increase over the same quarter of 2019.

Hertz noted the continued rebound in leisure travel and limited fleet inventory as factors for its results. The company is also holding its vehicles for a longer period of time, which will result in lower depreciation expense, Hertz CFO Kenny Cheung said on Oct.5. A total of 28 earnings, the slowdown in the return of business travel also weighed on the results.

“Looking into the fourth quarter, this is the time of year when we would typically experience lower leisure volumes and increase corporate travel,” said Mark Fields, Hertz interim CEO. “However, with the rise of the delta variant until early autumn, many companies continue to delay the resumption of business travel. Despite this, early vacation bookings are strong and we believe the momentum in our results. will continue”.

Q4 2021 and indications for the whole year

Hertz has projected an adjusted corporate EBITDA of a range of $ 500 million to $ 600 million for the fourth quarter of 2021. The full year is projected to be between $ 2 billion and $ 2.1 billion. Depreciation per unit per month will be between $ 60 and $ 70 for the fourth quarter and between $ 95 and $ 105 for the full year.

Hertz recently announced that they have ordered 100,000 Tesla electric vehicles, and as part of that purchase Speaking of drivers rated 4.7 or higher would be eligible to rent a Tesla Model 3 from Hertz at select locations. The company also announced a new partnership with Carvana to use that company’s transaction technology and logistics network to expand vehicle disposition channels.

The company has completed its Chapter 11 restructuring process earlier this year.

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