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Hertz Global Holdings, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenues to $2,576 million from $2,703 million in the same quarter the previous year. The decrease is attributed to lower volume in the Americas RAC segment.
Depreciation of revenue earning vehicles and lease charges, net increased significantly to $937 million from $501 million in the previous year, due to deterioration in residual values and decreased holding periods.
The company reported a net loss of $1,354 million for the quarter, compared to a net income of $299 million in the previous year, with the decline attributed to an impairment charge of $1.0 billion on long-lived assets.
Direct vehicle and operating expenses were $1,470 million, a slight decrease from $1,499 million in the previous year. This decrease was primarily due to lower volume.
Selling, general, and administrative expenses decreased to $189 million from $209 million, driven by reduced non-cash stock-based compensation charges.
Interest expense, net increased to $246 million from $225 million, mainly due to higher debt levels and benchmark rates.
Cash provided by operating activities was $1,813 million, while cash used in investing activities was $3,267 million, primarily due to revenue earning vehicle expenditures.
Hertz had a working capital of $1,648 million as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including the issuance of $750 million in First Lien Senior Notes and $250 million in Exchangeable Notes.
Hertz does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting due to a lack of resources with SEC financial reporting experience.
Hertz continues to focus on optimizing its fleet and operations, highlighting the impact of reduced vehicle demand and increased costs on its financial performance.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Hertz Global Holdings Inc quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.