Hertz Global (HTZ) 27 Apr 232023 Q1 Earnings call transcript

Welcome to the Hertz Global Holdings First Quarter 2023 Earnings Call. Currently, all lines are in a listen-only mode.

Following management's commentary we will conduct a question-and-answer session. I would like to remind you that this morning's call is being recorded by the company.

I would now like to turn the call over to your host, Johann Rawlinson, Vice President of Investor Relations. ahead. go Please

conference and that you everyone, associated for us. call want information. accompany joining information. on forward-looking be Good website. contain statements our have thank made our now, I our to slides should also remind and which earnings By can We've accessed you morning, to provided you call, certain press financial this release on

results to may performance, of materially. Forward-looking statements inherent by nature, uncertainties. are a Actual are and subject differ their guarantee not

Any no forward-looking this on reflect call speaks date, and only today's information relayed update to as the obligation information of company that circumstances. undertakes changed to

XXXX Additional the Form are and information Risk Relations Statements also the Factors filed contained in these our our section Investor of is Forward-Looking with documents in XX-K quarter first website. our Form earnings XX-Q SEC. and XXXX the available statements press These and the release of Hertz on concerning section

which our global otherwise we'll are We these Today, financial additional Unless GAAP non-GAAP of our operations, better discussion our measures performance. press focuses information believe today evaluation available earnings numbers and profitability website. that allowing provide our use our on with reconciled our release about noted, certain on non-GAAP measures, in business.

this and call we Alex the Financial morning, our Officer; Scherr, On Brooks, have Chief Chief Executive Stephen Officer. our Interim

Stephen. to call now over the I'll turn

first quarter to I morning, Johann. Brooks Good call. and thank on you earnings you, this joining to Thank welcoming call. for begin all want the Alex by us

naming guidance and team in the process. permanent role close CFO is CFO. several context our orchestrated Accounting of to of to We for assumed a look a and Alex her the a under years seamless has Alex been know, forward now CFO Interim has her Chief completion you upon review proven leader our the QX As transition. of Officer

across our turn environment the results quarter, stable a continued customer strong demand pricing me and in quarterly segments results. in to reflecting let broad. growth that, first the and and With our both Hertz posted U.S

came of $X revenue in QX of by guided, QX. back softer in we breaking on the to billion relative volumes, at QX As with seasonal demand expectations strong

Importantly, expected we QX. remain about performance in our optimistic

April the both solid and first holding and quarter across channels momentum utilization continued international into exiting with customer high Our rates markets.

As close driving quarter, fleet, down month the in remain on on aligning demand. we aggressively and price second costs we the of to delivery focused calibrating the

are quick bookings We move warrant. to advanced strong markets in where

we the control, positive optimism Looking industry travel beyond as by the the critical summer bolstered season. broader we further levers move is coming indicators our can into from the demand

provide turn the while year-over-year, $X continued ROA. our To meaningful QX over a in fleet line, of in average up on in reflected top revenue QX higher X%, is RPU was the fleet increased A on bit per was note, reflecting This only more on QX year. up particular utilization improved detail and year-over-year. revenue $X,XXX, a improvement prior or days transaction billion unit focus our of XX%

travel elevated manufacturing resolved. sequential largely days in XXXX, RPD than stability, the lower in exhibit across calculation relative as impact QX both reflecting on was as of and well year-over-year RPD in as rideshare rate growth of corporate leisure. flat the quarter, historically in the more now of high recalls the given transaction a all On been impressive strength burden the off the pricing have which was basis, Coming

as rate exited versus we While up quarter was softer was QX. whole of sequentially in in March the pricing QX, the

January's higher RPD note, of the RPU for and out As I nearly with well the pricing performance. QX than mentioned, our We exited March generated in Of volume momentum QX quarter of was materially transaction bodes XX% in quarter March coming above well January. March.

Hertz ABS high a our facility. remain EBITDA steps associated now we demand depreciation Adjusted adjusted to produced particularly and EBITDA certain reflected rates corporate margin. contribution see also taken a million, XX% our in corporate fleet caps results, reflecting interest and QX sustaining, with rate positive $XXX lower-than-expected of of to around disciplined underway, markets. With Further monetize

QX at in unit and in or and came $XXX million extent to an fleet a used primarily month, related on per $XXX pricing in Depreciation lesser to lower-than-anticipated uptick optimization. vehicles, mix per

We of expect expected to on as as brands our the our to rideshare keep fleet. relative Dollar longer work to and portions of channel rise our length well Thrifty give

that basis recall very modestly collision our related related repair, elevated mind expense expenses, Keep our primarily the day operations On completing in burden by a our bear flat lesser direct OEMs per maintenance and transaction days. and cost sequential degree versus the of transaction expectation on of DOE in up reducing recalls to even though the expenses recall was quarter. a a due to increasing

As rest through the in XXXX. remain noted we call, reduce QX expenses we of we that will our our confident unit

associated contribution to caps Finally, risk, rate EBITDA regarding QX. our monetization In EBITDA $XX into from interest expected caps our and the positive liquidity interest the facility. the interest rate Adjusted an the in rate of quarter forward quarters brought attributable managing savings four million caps. over in ABS with the we included corporate next

transacting, more value in over the the caps realized cash in monetize exceeds saw of the reinvestment $XX our those where rates monetize additional opportunity and expected of the Even to move than XXXX, since by million. the moved Given value fleet rates the the since for recaps have relevant period in inception we operations. embedded and interest

year will of this be expect EBITDA we XXXX. such, full net in to benefit As

fleet CapEx, of outflow Let now to based cash an experienced in non-fleet and free free adjusted million. QX In cash $XX me turn capital flow we both investments allocation. on and

the more the demand we expected weighted know, year, as to in ourselves months. heavily meet to is position first fleet the you half over summer As investment of

free inside and meaningfully the expect and car of said, expected fleet to QX to cash sit to we period in end, prescribed underwriting ownership. returns that remain and our investment To the over That flow of returns to through our of generation strategy growing demand, lens investment fleet turn committed be positive QX. attractive we on decisions

To Measuring the to end, to across that cash return net and produced [ph], fleet not sold on company. $XXX QX, large the of estate LAX adjacent and is we proceeds should assets, sales of be understood real in million. mindset other estate in assets hold company parcel of portfolio. including limited real includes context the These a our taking ROA

Our team so. profile creating cash eye assets makes to is of a consumption, an increasingly focused continuous return opportunity the with overall it accretive review contribution our toward buffer to ensure on to business undertaking do where their of sense strategic to

let us. two front the sits of in in to that Reflecting QX, trends relate to performance on me speak our as opportunity they

macro environment. the on First

move industry a positioning we travel into the itself QX, As for is strong summer.

Easter the We are Memorial week we Already have seasonal to spring same. have bringing good demand some doing strong us summer. Day, experienced a indicators to respect forward we and break with with and acceleration

are forecasting in summer strength have and earnings hotels advanced both bookings their demand and calls. reported robust Airlines in

For yet opportunity segment that a only Hertz, around RPD. been elevated rental to remains XX% significant levels demonstrates which of there pre-pandemic through back a is on margin particular customer this revenue, higher travel, Recall component traditionally international inbound has QX.

to levels, continues Latin improved from relaxed, to strong. inbound eventually from business much back pre-pandemic opportunity. positive our Japan, European inbound troughs pandemic China which Korea creating COVID And not is yet significantly, we inbound the the build. for beginning of travel believe pacing perhaps America It business. returns has travel is and to Asian is show will yield only most business from rules improvement. With International

are as again in Second used relevant presented the gains in again excess acquisition. redeploy The strength fleet trend on is opportunity we to on continued car our growth focus the our XXXX through fleet subsidize in This rose to rotation team's residual of equity prices. QX. and to that with monetize means and harvest values

may no higher and yet it certainty early this action the the continuing stronger trend of economy, is in supply a balance this rates, may better-than-forecasted, fundamentally reverse. car interest was in markets. the and there indicate course, demand But end in despite uncertainty price which Of

focus With to priorities turn a strategic execution. that, let on me with our

We've First GM of At experience begun we models approximately more price electrification. QX, XX,XXX other XX% in points. vehicles of options cars. delivery customers taking at our various end thereby fleet, and providing EVs, our to had the of comprising for about OEM on total EV electric

acquisition timing. vehicle costs delivery generally with Our fleet aligned are

result, price EV from declines been OEMs. have we recent a benefiting from As

EV are in XXXX, nearly Xx rentals forecasting approximately X million the prior year. We the number of

charging proprietary of continues grow, as service network to charging our fleet. stations our terms to In so

and EV the Through of driving our partnership cities customers the with serve Hertz BP Pulse, U.S we charging to infrastructure public. are in our both major locations accelerating buildout at

our rideshare of charging Atlanta, areas. serve our public-private partnership are Houston other Denver, the we across addition in customers to with all and and the and increasing other and through targeted Hertz up the public, EV importantly, utilization stations have of signed process In cities objective metropolitan buildout and Electrifies,

renewals we [indiscernible], working processing, drivers all reduce cost both drivers. to length these rental growth this with streamline continues grow. with ICE longer rideshare. business, lower vehicles remote rent, and promote process to and of are for and associated offering rentals ensure for to optimize doubled by To payment pricing. QX on rideshare fleet increase among these year-over-year Next to in for the further volumes churn Rental days ease serve in of EVs to notable and drivers Transaction

and rideshare I the drivers home our can relative their would leisure business XX% Rideshare trough of to the Operationally, to business. renting quarterly take an rental. from potential to creating XX% that buffer Hertz greater modulation peak in by is experienced economics typically EV growing volume to an increase ICE the observe

call, on cars, a overall value on noted a so, I from margin dedicated elevated and an project have we revitalize to to Dollar As with that cost basis, departure brands of customers digital an on past fleet the for to produces intend infrastructure lower Hertz. begun margins. we lower that a Thrifty. a And depreciating basis the do cost a provides our attractive cost prior In and engage

a that to customer channel digital value In provide properties touchless experience, digital context, direct begun to designed with forward at including point. co-develop affordable customers an a experience we've

project early launch more to the select are we We at looking summer, early generally. a airport of operations operations the limited locations of as with in the honed an number

In of XXXX of on second the entering leadership. priorities reset operations, Europe. European and 'XX, our half now are Finally under the which new now we

significantly XXXX, EBITDA in adjusted revenue our and our QX a European a year record in produced As business up and reminder, is ago. also versus performance

we base our have priorities, cadence extended strategic here. operational we of and our to right our motion, from partnership EV our we size our changes We improve of considerable With penetration. taken Uber and steps increasing are in growth to markets. anticipate each terms Europe, our in European In expense

position the our on view the year expectations the these initiatives a company. As to to course continue will their we more to for mature of be contribution specific a XXXX, in later over in share financial

the uncertainty demand the acknowledge the Before unsustainable returning the strength economy. near-term we market that it in in is and in may consumer to call Alex, be weakening that important view a

we set prepared meet manage While to defensively positioned a a opportunity conditions. economic strong we of are summer, are the to against equally weaker of

Our more, without repercussion. high. can be plan sit positioned dynamic curve inside alter cars utilization running quickly moves. fleet fleet and are now demand the is as right sized is right can to and wherever long We What's we not our

in sales. actions accelerating than focus slowdown our a So would on more buys reducing

We chase volume. will not unprofitable

agile running cornerstone Hertz business should importance as before. underscore industry differently, the than better transforming times of as the the running are of will well. fleet evidence and arise this they We is and Challenging believe the management

you. financial call With performance. you quarterly the turn to provide to that, Alex to our let detail added Alex, over me on

you, Thank of fiscal and team XXXX. good progress The quarter delivered morning, a Stephen, following record everyone. Hertz another

the rate, year-on-year leisure international to contributed and and segments. corporate in and Americas growth our in combined international Solid growth fleet dynamic strength revenue and with both demand in strategy continued inbounds

momentum year-over-year. the top the Importantly, period bookings line continued with holiday QX up over target into Easter

rent. seen was of QX fact, in were XXXX XX% the as versus reported. $X billion, post-pandemic on of year-over-year, QX Revenue In up vehicles April days up firm. days XX% has records of while pricing Transaction several number in terms remained

the that in the XX% and respectively. show improved XX% March to XXXX and into for has recovery the We Americas early international course XX% quarter, of utilization levels, January leisure from continued to progressed domestic in Over to post-pandemic QX. and complete in is inbounds and XX% substantially have corporate momentum believe the of

of Stephen further Recovery down business earlier. here growth XX% it has international the which opportunity continues this further XX% leisure as to break in momentum international and segments, while corporate and XXXX our expect lagged level, of level. Americas, segment, we from in the noted inbound are To build is XXXX

was lower EBITDA than QX, corporate XX%. XXXX, million Adjusted the QX typically Margin $XXX Americans margin. a the was in of for XX% year is balance business which the in

international, very QX the as more a year sale on to production for reflects adjusted been produced gains a normalized level carried vehicles which on of nearly relative gains For EBITDA doubled EBITDA elevated year-over-year comparison, On of a XX% and prior discussed. margin year-over-year period, have the sales quarter.

was fleet, up summer for vehicles demand, to size quarter in fleet curve. grew of quarter the the the gear began the which below to end regards last the the consistent demand their still was to fleet of Net XXXX. spring as With peak average by with and always XXX,XXX we for the range although throughout intention inside a on DPU $XXX, we expected the quarter, low maintaining $XXX. demonstrated than in primarily residual This call uptick of our was earnings values, differential quoted which driven lower

turn let Now costs. operating me to our

be changed should revenue for to in The revenue per offset that RPD our we our to day I cash no $XX. was in rather impact the and with QX flow. quarter, to than in day immaterial to transaction per to current recoveries note DOE in presentation impact in DOE reflected damage DOE and a resulted was DOE. in $X earnings change transaction both Our or

billion from our At the capital our debt X.Xx, X.Xx. $X at In to credit comfortably million March available under committed XX, was aggregate sheet, amount was our to billion March, $X.X including billion. we structure of $X.X the end billion, revolving of of for target With and leverage cash. QX turn unrestricted now me liquidity $XXX quarter respect increased our $X.X liquidity. facility to Let the corporate our below net net and balance was

in capacity III $X.X of maturities our meaningful XX, ABS corporate we XXXX. facility in March facility, With about HVF until On our March ABS of the ABS $XXX and million a there are respect term medium had no U.S debt, under $X.X internationally. X%. fixed the At to at rate billion issued we notes billion combined of under the

rate, cushion rising in Our impact at our the structured mitigates vehicle equity maturity which mid-XXXX. debt end. a maintain portfolio remains well is approximately We ladder And XX% environment. of commencing fixed materially sufficient ABS rate quarter

cash CapEx to in Turning was was capital Fleet of CapEx QX quarter. an LAX flow million discussed million allocation first by impacted flow of inflow cash Adjusted property to quarter. the the non-fleet for $XXX our $XXX operating and in was the million earlier. adjacent sale $XXX the and

was flow of cash free $XX outflow Adjusted an million.

earnings continuing aligns follow the summer In additional peak the our with we to that in-fleeting and fleet know for fleet of we half the the up free in QX. expect back tend As cash year to annual as flows demand, our seasonal a of translates flow. our pattern we peak We're cash de-fleeting. after that achieve generate majority which into fleet surge, investments down and to

we which cadence excess $XXX under repurchase capital X.X billion utilized strategic shares. priorities flow, our authorization approximately reflected remains Our Board's million XXXX, share and in investing non-fleet cash our for in fleet, have we of to repurchases. QX projects, the returning $X shareholders funding and Despite investment initiatives cash remaining unchanged. the our Currently, in our to fleet free of million

sequential in QX we're Lastly, our consistent color let XX% prior that fleet we some fleet, expect summer strong approximately approaching with to the the me forward-looking get then On end corresponding of growth around the years. seasonal revenue, a of On reduction We half XX% the increase expectations. global demand into our from on is expecting peak. in year. expect by QX levels second

remains to fleet materializing planned considerable plan demand in accommodate. with As subject always, this as flexibility to the

QX, residual value $XXX net range $XXX to recent of in longer DPU notwithstanding trending term. we depreciation with the expect higher to On strength in depreciation, settle

expect we'll rate expense million monetization, subsequent QX, interest a we approximate $XXX fleet quarters. with in fleet quarterly fleet interest curve down on and and to come and rate cap Finally, in our size the

year-end, We monetization inclusive expected net proceeds. the cash benefit to through the company upfront of

In spring months, closing, pleased summer as we into momentum. and the head our I'm with

our across activity is whole improving. also business accelerating. to we the inbounds As to hold continue rate international enter and of utilization is and demand related QX, Transactional

business Our the are is on ROA scrutiny focus for vehicle non-fleet maximizing assets. lifecycle as our on working through extended dynamic the a well fleet and hurdles returns strategy of for the

expect structure. leverage, on lean focus we We cost our as continue in [ph] operating improvement further a our and productivity

With for the let's that, open call Q&A.

from Woronka Instructions] of comes line Our Deutsche question first Chris the Bank. [Operator with

is Please line Your open. go ahead.

of the Stephen, so that. so along sense kind guess, us a underpinnings your for balance view And guess XXXX? all the little for Great. maybe lines, I thanks laid of about do talk environment. a far, for is a the I comments Thanks. us same you what out what of and of spoke stable Give also can in pricing on you downturn. for those you you've a prospects might bit

Appreciate Chris. that. Thanks, Sure.

On this Pricing well maybe going pre-pandemic, of environment, particularly the to quarter pricing. European holding, I very So stable the U.S pricing, and relevance was north And we're more we back start of pricing with market. pickup of dynamics, the regime pricing. in pricing sort XXXX. in to the But in U.S., obviously we've in where seen has seen a been have market. this particularly

and attractive rates utilization driving in, very higher So that's that coming business.

look and where the back XX% looking increase north with January it sequential just about of what's meaning the we rate going kind about running that's you increasing saw March, from in than utilization RPU, again, is a we of terms March month-over-month If January. happening And in utilization, of into XX% was XX%. at were shows of what both quarter, in because higher we on just where at spoke performance

we're but also increase and in leisure, spoke seeing renewables in where of TNC often I And corporate strength seeing at price. negotiated about higher volume, strength there. continue So we're doubling in kind rate

strength you across so, those if elements, is will, three there. And

available more year that, of all certainly more the industry would I this say not to last, back relative Mean, of So levels. well, there this? cars to sort what's we're across elevated driving are

And sort supply so calculus I there's a of playing there. demand, think that's

hotels, volumes feeds and what that demand about and plays airlines and into hear experience. You obviously across we

what is with things, cars coming out are And against of would themselves. so also more I which supply just reflect that I season. describe maybe we're of now cities demand as of a limited still there specificity one, seeing more two kind a would little

So as seen think commensurate seeing expect we would and a city become about Phoenix about we're have South softness and not Florida, with as you what cities like before. those what offseason think

encouraging. so And that's

that say rate, rate well coming United West support States. say that to Asian leadership the the just to and made and bookings. able shown also finally and and both the I'd like Coast around And particularly advanced inbound I speak into been comments would will price also inbound about in travel to price a I the markets we've leadership following have or markets that see higher demonstrate Hawaii

we've that kind taking of an appropriate in so been And of advantage way.

So of price. underpinnings the sort out that's around framing what's of

an is so which say otherwise would Sort I'm to hill, of on summer in good okay. forward, sort indicators demand the about to that position I take fleet and our sort One are of that a I both to of things ability speak, seize of really We're two take as is, very kind feel the with this speaking, did of advantage the the opportunity to that I out, opportunity. are in remarks, strong. playing

turning. there's the summer front all consumer is, the no us, of are And in demand strong, while and indicators second of is the sensibility and

biggest based I is a a fleet remarks, we As the see prism, as should risk And and are. where are that we is and in and will with set that adjust demands and materialize differently those business the on play the said am we the we that if my I lever fleet, market do, up this risk we softness. will in through manager event view in running

the on the the proposition opportunity no positioned summer there abatement, hand, could So to one of ready not do to of be and and seeing but it. sort take to well that blind softness,

quarter. we're the by virtue we're just the would but not minded confident exit So first velocity give to my that guidance, I’m I leaving by would of view I say, give on directionally, you the year, which

we're month-over-month within first seeing favorable elevated again, better residual in cars. depreciation stronger and virtue the outcome and April demand, where on quarter, and of that stability, rate So by playing prices a are

I so think that's And important.

manifest our bolstered which to signs inevitably say, being would in I business the the is the developments our in in of later and those Europe, accretive Second, of confidence a think bit rideshare I Thrifty, outcome year, of around some will the efforts in year the will XXXX. Dollar more for but context most show be

know zone for are again, for so to billion giving in EBITDA I million $X.X that the XXXX. estimates not but $X.X in for And the marketplace the year guidance, of

obviously, I about here, lower outcomes sitting view one right the about with working estimates are would having month that business in in on that optimistic the for And And delivering I experienced from quarter, distribution the this those second more even the a quarter one year. I'm there. projects say think for into than XXXX of we're to

were And I price of it of for outlook first on the the a both balance and would so kind as of that's the your part year. how question general frame

That super very Great. Thanks, comprehensive. was Stephen. helpful,

Sure.

on As now EVs and think you you've you're on about a your some pricing and that about XX% also to that. the you're on next of hoped try Does EVs. that? target the you've purchase including to then -- down the for, to you want seeing make come accelerate rideshare And of or into end that I side talked pricing go piece go lean -- that Do the further year? by rentals, your the harder of want talked getting and you above that follow-up,

just the I me I Well, there, dynamics be would of mindful demand limitations implications which say the are practical to and growing. that need yes. pricing question, lead would answer equally to your of But and

our XX% currently EV. are about at fleet We of

a quite next are big seeing both remarks. the we in collateral to as about confident sort that is of that our develop, challenges we that by in that of sort to XX% ambition and move. has elsewhere And spoke charging year. I'm is Our I sort airport it And locations on sure to get of end developing. need of the make That's

think In And that lower is I'm there, XX%, price I'm point drop I and happier get in the for I'll a proposition higher if on than buyer better price us. and to moving encouraging I'm an equally a EVs pleased at obviously XX%, a from not. that and taking continue customers are the while delivery diversification GM varied prospect choice. and now the is at buy inherently a of offer to EVs, will And good Tesla's risk from I of think greater point a Polestar's, which points be view that our I price thing.

in from So to I'm We when is price drop vehicles. TNC and as these the lot drop a good. buy dynamics both benefit we excited that rate and leisure. buy. where price There's are more in about

hold. I of take think to will adoption sort continue

that see EVs on think are get needless happening. at I importantly, in more place. the that And drivers in entry at the requirements those will use that X of on happy we that cities rideshare, now. affordable meeting and of follow the them. that of putting for rates, you to would or that get point about would EV and benefits by years other I most but Lyft, This the what in terms variety vehicles the and across too and benefits, that say case And And Uber maybe the from these country, Hertz the the we company fleet The read rent is future. electric come in cities attractive date distant our those are say is a X of networks electric to not I attractive be in by some into require and driver say, most I'm requirements margins to you

Stephen. much, so Thanks Great.

Great. Thanks, Chris.

next one our And question. for you. moment Thank

Zaffino the Oppenheimer. of comes Our with next line question Ian from

ahead. line Please Your is go open.

talk seeing very environment And but you competitors do players? you And thank Hi, would or about at what you basically, a in just again, if seeing about now? know about do But think look what bit the larger what a competitive from would then you react about or maybe Thanks. little in upon as a you're what the you're how guys I them smaller players, you far talked you touched what downturn. from a downturn, know Can much. as past? you

Sure.

the seeing my a here So clear, of indicators I market we up from we sort lever and to as are sit past was sort yourself upon incumbent as we remarks, play us about and that think point to company in and to coming But into a industry downturn. in of out and the the the of way the I of of QX and managed departure be the as set fleet for not in think contemplate QX it's changes. noted or to which today the is extent

it's Look, it's others you hard and stable tell to with across that can relates doing, board. been for behavior me it to I are but rate, know precision watch the what I as

there's somebody that through sort to price, just low given to market, be side that more practical down, on one any take ability limiting of I in governor the of supply think meaning was available on it's happen. of And player. would worth presents the in a a and company's for all number not any one cars constrained if industry, which limited aggressive players any to noting that the price of cars been has sort

more impact to And limited it market. have would the so broader a

And commented role price. think role ability were that or of to outsized destructive that I or we're have an dampening new think carries on 'XX 'XX. of I through will ago, a the a there think in used, end before I And effect player I cars to that there sort And while cars back personally play one any year of into the and now nowhere of a the by the availability near that way. more are than

no you that is mean, remember, terms new are U.S were beginning of of that cars that numbers of there is because car of the in all at into or into It's depths And the off COVID over there 'XX the in. coming of are 'XX. are being the mind used lease market, cars meaning off that to depleted, fewer end are the production car them used the I bear these in cars, the spilling production. OEMs But and the in important coming and not know in of follow itself because no market

have, again, more be effect that the depressive going cars. on a of will the availability that ultimately, to So I is governor. And think

question my the I have the I all, so relevance larger of competitors are but a comments your global that smaller market are are And would say think market, the because the relevant to part particular be parties on opportunity maybe relevant and in and all. larger for going I think And rental but about or competitors, one versus way smaller, apply that less to not equally to of us like. those of

If during at I was there. Christmas customers smaller service, we the some that happened are niche ones responsive a be important of rental and from think to companies, Hertz the and in of you what like position needs but large the around to travel, unlike were level is us sets apart other smaller season the looked that players in, of

recognition of can and then quickly, also but sort [indiscernible] Okay, second, as that’s big the pretty talk industry of EBITDA, a maybe And very And fourth year. please? quarters. we imputing for, about of about: number It cap thanks. maybe one, kind the numbers are back maybe and about half Thanks. then you cadence just third timing Alex, And you of like the the sale, of looks it. think talk

Absolutely. Sure, Ian. Yes.

absolutely you're of observing cadence yes, the right So, in EBITDA.

us. lower a quarter typically is earnings QX for So

up we entering start spring and February then the summer. spring and we into off, January over break, start and year build to and So

and summer is get August peak earnings. most Our the our July timeframe of when in June, we

QX in So to the volume we expecting to between about noted, as increase we're an of tune QX XX%.

longer experienced term that's over in we've with pretty what consistent the prior terms and year -- metrics. of So

with cadence flow. cash our EBITDA also be cadence you'll that to observe And is the which going

the with So during again, then typical QX and in-fleeting will peak. cash we'll of then early part in the the levels in in through de-fleeting year first and at positive QX flow. those fleet have summer elevated remain the And QX,

to your then to So the second cap interest moving question, sale. it rate relates as

related interest to facility. we an the And adjusted cap. corporate contribution million floating included quarter monetization in our ABS as is portion from [ph] noted, So the of of $XX the the the this rate EBITDA positive

is of facility So, is XX% ABS rate, as XX% you'll and fixed floating. remember, the

that XX% really So this floating. that's is related of the debt to

the than of interest gain we in we QX through savings And of million. is into more that to remainder expect than incur realize tune fleet this over the the forward to the we selling interest additional caps, realized QX. to that year By essentially we QX more $XX the brought the expected the year

brought can we we year. early the cash and reinvest the into into So business that in QX

So a all transaction. around great

Thank much. Okay. very you

you. for moment And next one Thank our question.

with from Northcoast comes question next line Healy of Research. John Our the

is ahead. Please Your open. go line

Great. question. Thanks my for taking

by Just bucks. just wanted on RPD a and on And think revenues you said just lifted thinking ask two accounting into said think guys you that you the dive question the a previous RPD. up about I clarification [indiscernible] for I about bit that question. to the Could just little a transaction XX% expectations just sequential said XX% QX, basis you growth to change

flat So is was just apples-to-apples an in RPD hoping that quarters? terms just there theoretically, pricing QX benefit next of we kind through from And in the change imply is get of I RPD to accounting So an there. year-over-year? of flow as couple comparison this does that

John. Sure, Yes.

So it. let dive me into

recoveries relates our come to customers, damage to cash So as presentation from changed from it we vehicles. that

customer, better immaterial versus offset a cash previously represented from as line to thought which and the it's presented. change revenue neutral. cash to it's it's an because in neutral a were collection was DOE, So and to it -- a we It's -- an EBITDA was

I of DOE. RPD $X both would terms and effect, think its it to to as In of

by to $X DOE increase and an $X the by on from about changing income So the to just RPD statement. geography increase an

in maybe hoping bit Thrifty does those I on And be travel some Curious little think the competition And what the of online reboot. of of then more a dive kind to pricing end of brands low you the might and of reach that elevated with And reboot happen bring Dollar could on you at brands? structure? was your mind sense. in the Stephen, that sites there you reboot. then terms risk secondly, those with a continue you'll to customer Makes in will how

was was several there wasn't did in to think this don't I Sure. Dollar in consolidation. [indiscernible] there integrating that and Thrifty kind at the of across regimen a And which good way I to. at them think cost a of kind fleet because moment the ago obviously, broad years took when Well, particularly we we there job a all it in of ought industry

And so where dedicated brands lower of revitalization a of these more cars. the can fleet we will in put us depreciating position a have

with play defensive will is unquestionably elements for. continue in have our being value to properties digitally to the not VAS dedicated are brand service the loyalty Dollar and the high-end about through brand like, But that be will necessarily process that with active looking are Hertz Thrifty of be direct delivered, products. customer itself Dollar we'll We of the more and Thrifty. and more around product the that can think I including OTAs. channel the a And digital We

lower not human cost, side of lower and that be point, will offering this base other with kiosks choice. we're experimenting touch things. customer So And the

will So cost kind proposition. that spot car to you at lower a our to go, but where relative customers offer a an based that'll think to be get dedicated to our on I attractive Hertz, margin you move, price very and to a point out will which the will inputs interesting at ability be fit, prove you of your

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around open and channels to partnership be that I up also will identity available think I important I'd will other us. out that that point Dollar building it Thrifty don't think have been

think in that, ability element why the keeping not to another motivating of other encouraging So price, down say and price sort you there's think drive or with partnership we're with volume of fit. leading there partnership a But of more that market, But particular to necessarily partnership brands, segmentation didn't are travel And Thrifty with if through customer Hertz demand of a with this with based quite or will brands cost, going be lower is for Dollar Hertz. would sort that to sort I path. were brand. obvious you I other retail, mass on will, I

Thank Great. you so much.

Yes, sure.

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you. Thank Great.

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one for our Christopher with next Stathoulopoulos the line And moment of Thank question. next you. And from our question comes SIG.

is Please open. go line Your ahead.

to there there's my some difficult morning, domestic [indiscernible] not travel going seasonality, for alike would Good slowing, and Thanks also that everyone. around for concern Stephen with from it just taking but to there's And making questions. more skewing airlines out travel, by respect forward. investors teams with plan blended that. some U.S data much, support

airline schedules here, mixed. are the we capacity look if at So domestic trends second fairly through the quarter,

this - a the give domestic nuanced wondering view respect more bookings outlook healthy with a you overall could of But persist, you. seeing to the to of if you blended I demand be kind you? phenomenon, know that? that into And bit summer. is if summer. tease where little it little will, how into spoke was I if making out Thank you're So very if to a demand challenging bit a core then also, for you Is travel more might

Thanks for Sure. question. the

first, So on me address let the last which blended is one travel.

one split play are leisure. us in the business on the blended an it see that both see playing context business and billing, knowing trip of part forward. We one to asking and continue We leisure a forward employee the that may corporate be part about and of travel, blend may be i.e. trip customers

rental. be. the meetings net in say days to to if that on the because benefiting matter work a fact that's to no York think Thursday, hotel weekend three I likelihood New that a from adds it spend whereas LA that example, chains they're trip, Friday which suspect Thursday travels as then staying my I airline us a dates I to that the and in have remotely from has with and a benefit continue on that well night. we'll person, in the for are Wednesday Angeles you fly Los the the The and round back latitude plays. all pre-pandemic would for professional

I travel off. positive, So blended see sort particular no and for for is of fall the to reason it a us

in basis reference would question the the airlines bodes our airlines be. context to are positive, it vacation which has the honestly they come to a the and domestic On capacity, and marker use to for airports think of business about alone well think for rental us. and customers that a or dear, your take that short option like. But is like. Look, the the travel your But within I the forward not It trip reality. around quite that's on you reasonable a at us we us. becomes to that come the true domestic It extent haul performance think therefore I raised been car forward driving take becomes distance what particularly

travel. in capacity say So means on would short from alternative an we haul as that way, a benefit limited would certain I of

not of comments on as question, general it be downturn, there the script It's I will which proposition happening. the a a the relates think in is, hold your of for horizon. made evidence to whether don't I we As see that

another, defensive ability But hotel have than to I another. three to an planes needs a floors different in from to if I We the returns, sell us market because hotels that booking It's I should I would than yielding park of in to asset airlines a we good tell the short eliminate of position, meaning can kind desert, it admittedly have not in it's to which different find can that sort more it to sort city be solid a move, move hotels. don't I materialize airlines, or an want. one base one can of you from move relative cycle that are that or it's part

downturn, can a quickly more versatile. that changes market And regard. pretty got dynamics the base, or defend asset I've I So in mobile against in

to midterm. going what talked you you're And you. that and happening prepared And moving wondering thank optimistic OEMs remarks, to this supply sounds the take dynamic what's from my persist in to Okay, the your the then like at the that I apart follow-up, we market fairly with car supply you for sounded chains, of OEM pieces that were least nuanced about dynamic to a demand view the of the used -- more side, the semi areas. in here bit are confidence particularly gives little you a these you is that It persist this get with on what chips, little but a we just current midterm? going view like bit if could so there you. for is as of -- it near across it different sound the certain three channels, really weighing sort Thank

without into but of not of I dynamic future, and 'XX balance kind the does persist. the limit it the persists saying it think persists. into the context 'XX, I I'm of in think Well,

are buy than last this Now, to more well cars, below. opportunity more year and but year, cars see still we see

that to just a set down baseline. of So sort as

of combustion there from sort vehicle. Number I persists. it. of I equally much think conditions the been number of but is engine the And the midst of okay. all are do dealing cars. chain, the than, some nonetheless transition two, production to want have less uncertainty electric creates of think to the in, they're put friction which one, capacity of that issues, assuming I OEMs they they new Number are in with in they sort think that supply And a to a of how supply dealing with has economic and

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out bear period my that the we're now lack narrow condition, of and context. these a in of limited of lease coming more But so -- entering market. of in the cars is used off that And the good over will number into market, cars, XXXX mileage comments production in therefore course the on where segments XXXX, the that off low take the entering

used more addressed again, having And of some side. we're so limited OEM coming again, think into, I supply sort piece, the in the

implied well, 'XX through that's dynamic, persists I And I forever. think it through think I last won't And do think in 'XX. so it

you. Okay. Thank

hand This you. And concludes Officer. Please ahead. would like to back Stephen Executive today's session. call Chief to Scherr, the I go Thank question-and-answer over

participation want technical given all So you I just and for your to patience had. we your the delay small thank

close call, you attention I We the as Hertz summer we with want particularly further of for Before forward that, updates sharing thank XX,XXX call. to With to operator. than on busy enter look turn the employees customers, their I'll our and all it to the to season. continued back their next of our the service more we

Global XXXX Hertz call. earnings Thank quarter Holdings concludes you This conference participating. first for