Hertz Reports Record Q3 EBITDA Results

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Hertz Global Holdings reported third-quarter 2021 revenues
of $2.2 billion, with $1.9 billion attributed to the Americas and $312 million
from international operations. The total compared with $1.1 billion one year

Net income during the quarter was $605 million versus a loss
of $222 million as of the quarter ended Sept. 30, 2020. Adjusted corporate
earnings before interest, taxes, depreciation and amortization was $860 million
for the quarter with a margin of 39 percent—both records for third-quarter
results for the company. EBITDA earnings were up from a $26 million decline in
2020 and represented a 134 percent increase compared with the same quarter in 2019.

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

“As we look ahead to the fourth quarter, this is the
time of year when we would typically experience lower leisure volumes and
increase corporate travel,” said Hertz interim CEO Mark Fields on the
call. “However, with the rise of the delta variant through early fall,
many companies continue to delay resumption of business travel. Even with that,
forward bookings for the holidays are strong, and we believe momentum in our
results will continue.”

Q4 2021 and Full-Year Guidance

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

Hertz recently announced it had ordered 100,000
Tesla electric vehicles, and as part of that purchase Uber
drivers with 4.7 ratings or higher would be eligible to rent a Model 3
Tesla from Hertz in 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 completed its Chapter
11 restructuring process earlier this year.

Q2 earnings

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