Hertz Global (HTZ) 12 Nov 242024 Q3 Earnings call transcript

Welcome to Hertz Global Holdings Third Quarter 2024 Earnings Call. [Operator Instructions] 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 our host, Johann Rawlinson, Vice President of Investor Relations. Please go ahead.

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

a to performance, inherent not nature, by are subject are risks statements guarantee and of their Forward-looking and uncertainties. differ may results materially. Actual Any company this today's forward-looking reflect changed update on only to information of as that call information date, no undertakes speaks the circumstances. obligation to and relayed

filings cause section Risk in make information press our we Additional could release these in Factors to and results and including statements, actual concerning the and earnings Statements Forward-Looking differ, the that in Securities Commission. the factors our is with contained Exchange

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

call we Officer. Scott and have Officer; our Executive Financial Chief Chief our Haralson, Dube, morning, the our Chief Sandeep this Gil Commercial West, On Officer;

joined our President Revenue over Executive now We Darren for call are to turn Vice the by Management. I'll Gil. also Arrington,

truly immediately Southwest and were of our time, unwavering by our focus peak employees define the and balancing was while our customers activated home Florida, Throughout at strategic many rentals provide They've and storms, impacted operations team. of full our the during serve focus one-way across vision. security joining people the demonstrated This up been including to earnings world and to summer, during Southeast, also being call. hard reach begin while headquarters. and fund with our resiliency Thanks, goals, commitment work thank I resilience the energy and to on evacuate Hertz. you set same customers display Johann. Good The were destinations, our hurricanes helped employees to that our our customers helping on a to at that safely people our forward at morning, the safety impacted the us. team want gratitude they enforcement in of at our collaborated We our they to the deepest by on everyone, which for their They command primary our third employee here community. scenes to community. seamlessly providing quarter were for have extending dedicated driving behind there ready millions members, with critical of our a my headquarters to our and customers relief center the so aid law is day-to-day

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of was This its continue our moment a from service, first road potential. Hertz on and will hasn't loyalty, in natural that I We years those contextualizing brand long and on communities that as that to built to spend a I'd to or innovation employees see lived the support up recent like a said, full to disasters. With it. world now recovering is legacy

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progress the on He'll share next operating of service. Our and direct the an will customer are give our revenue update track start to and progress by operational end made results transformation by QX our update with will our regarding provide fleet capital excited and on and we cover covering is an around position. SG&A. also cost for our progress our and year, we Scott you. I'll then Sandeep on completion cover

me the start fleet. let So with

continues analysis, days utilization. maximizing with less transaction strategy asset believe optimizing operate to Through the by Our cost the will fleet inside be includes same returns benefit also structure. we demand. This to our produce can we number of our which fleet,

is asset our accelerated biggest fleet end-to-end critical To most we our fleet management. And vertical impact we the and rotation. quarter, Our this established to most dedicated have constraint has this, have new significant business. on our currently address a

Scott third the charge, detail. U.S. will cover European our we asset recorded and During primarily fleets, quarter, impairment also in which an affected which more

across fleet X right ensuring customer a a by focused pillars: vehicles mix management matches platform. and First, geographies on key the team at new competitive seasons, Our different demand proprietary that enabled prices, data-driven buying is

net rotating to optimal for fleet timing the our to retail right sales them depreciation Second, the proceeds, lastly, reinvestment sell determining business. out curve; the at of allowing our in rental the and leveraging into point channels vehicles maximize for car

provides competency is this dynamics market efficacy capabilities management fleet we of apparent stability strategy, greater clear over economic we The lay out to to the market industry conditions, and market into below has I outcomes. management conditions, more largest as that depreciation a our This advantage DPU fleet resilience of more actions, become will masked shifts, against for have strategy achieve of of us fundamentally core it proactive with be and to turning growth term. and our us, to a aims which The $XXX. improved the our volatility combined the take to us conditions enhance behind the largely in the manage latest with fleet Our changed now long path management the model agile. believe

Given that conditions than our original acquisition are more expectations. favorable

value. Our be expected expectations we've increased achieving economics purchases this to the secured. unlocking by the milestone model are supported Ultimately, year 'XX shareholder of will already key

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and process down revenue. as Our constrained of opportunity and vehicle transportation, out-of-service reducing reduced utilization less require waste improving utilization. maintenance in time, service considerable as tailwinds years are to licensing repair vehicle out fleet maintenance fundamental could maintenance to Eliminating to and is improve vehicle model sales time of damage cycle minimize accelerate is vehicles recall times generally aren't and by out-of-service turn, engineering customer given marketing The queue redesigning our leveraging out-of-service to reduce repairs, it a reducing focused and that progress, teams, newer improve in people our which collision that areas this on decreases time cost exposure. process cycle time, lower have all, digital the the and vehicles such several focused technology of and throughput number points. we our maximizing cumulative quality optimizing and percentage generating leveraging reconditioning, by several platforms depreciation reduce fleet our sales are are are waste efficiency, Throughout to further and flows experience. new the and of fueling Increasing and leveraging rotation in that our driving on scale process vehicles working improving

teams process more in frontline capabilities these tools new Our and and celebrating than innovation ever are the engaged are before.

it over to hand Now Sandeep. I'll

first Gil, our newly good meeting Thanks, have we X morning, around my team, revenue pillars go-forward our power formed commercial engine. defined everyone. In our that focus and quarter

demand exceptional drive experience, loyalty committed for to which delivering our customer are we an will First, brands. greater and

select, intend monetize drive primary our Second, with demand smaller utilization and RPD same fleet. convert ability in third, overall improve that fleet, to strong of the we our days we to a asset, mix. a And today, driving get by we aim to resulting better our

collaboratively an by whether faced into environment, doubling achieve test-and-learn a future the team we that demand supported and approach funnel performance brands strong the is undercurrent long-term revenue greatest of programs. fluctuations, driving customer-first continuous ongoing on To our organization down macro exceptional family In rapid loyal commercial supply-demand improvement. customer implementing has delivers are delivering Consistently pricing loyalty goals, of a of or a working drive improvement creates the to our across customers, durable shifts in approach, Our with ever-changing service customer buffer all an that. serves loyalty against experience.

improved RPD. RPU. a our consolidated the the testing RPU achieve demand sequential on driving Hertz profitable Since to and QX by across speed to commercial revenue-driving keep scale continues pandemic, a maximize decision-making. on allowed enhanced initiatives, and This premium generating in vehicle has to rates strategy both with us improvement has focus team curve of supply the cross and is in demand commercial endeavored for within have focus We further year-over-year which quarterly metrics

and connected between like operational by levers locations. focus from our better waste at execution improved pricing, the managing in managing commercial commercial, in addition, non-airport operations through fleet and our execution also on just out-of-service not and utilization, operational removing a demand In but improving below aren't fleet between is fleet, that utilization to curve

detail summarize, per discipline, within team, consumer commercial brands demand pricing drive and to sweating a discipline maximize at business. To We are our up sophistication as demand we operating and vehicle assets of diving well curve up our our keeping supply we manage level aiming with commercial to are revenue our the unit. coupled which for with

be processes is focused just the This our pillars. X revenue across results have to that commercial growth. incremental aligning We of transformation which our intended time flywheel journey will to delivers over deliver and started commercial a initiatives a our be process

just with freshly of commentary. full our his see efforts Scott over this impact manifest progress as of time, I signs have commercial for far, of been start. note, over but early turn the to The So progress. On velocity formed will it but team, I I'll a pleased that is the

and morning, Thanks, good Sandeep, everyone.

the devastating thank with me the begin team Let storms. demonstrated you for strength during to resilience a and the huge Hertz

is team they the in best are of the company, the and Our business. again showed why once this they lifeblood

a the thank big to So you team.

results $X.X corporate the million. was cover financial for me loss a for the third the Revenue adjusted $XXX let quarter. billion, of our was and quarter Now EBITDA

revenue, to supported transaction RPD mix. better by down X% a year. last drive flat were was rates strategy of days market In Lower and QX terms relatively of versus were RPD deliberate

result and due providing financing so comparisons month smaller evaluation accounting we also results month, charge a cumbersome impairment. XXst, fleet doesn't by of was values The projections for the doesn't through for accelerated impairment the in The covenants non-impairment asset. cash push QX is Again, than months period quarter impacted of run earnings end QX depreciation long-lived to at hold initiative. $XXX of target the of amounts in post-impairment $XXX, The date of our Therefore, or impairment in the vehicles, other speaking impairment affect before the hinted rate the of impairment impairment range. to process QX, of so. we non-fleet flow decreases of charge value was DPU undiscounted of of of timing also or affect per collection the DPU, book rate still in size business. In rate. of assets some offset over our and the of asset the rotation was value largely to of dislocation to of Our be our and DPU plus the at remaining driven unit This the a it since the recognized just targeted market be expect was quarters, we other for during model impacted a future drove over significant for we The and an generation flow the increase P&L noncash $XXX correct that X the the the X of even this still the was The year noncash future depreciation run month, less release to hold expected. value that values is purchases, period residual rate charge our a last cash a have our per push the as and $X we depreciation $XXX will run much stronger includes doesn't of decline was the assets. the levels, carrying number we just portion business charge by our over value August whole some now fleet. complicated than year The results our and when than our transformation. primary primarily QX the were evaluating to by XXXX be and in which a the remaining get then And expect impairment recent for impairment to the expect will unit DPU to our an completely fleet impairment as is timing under of the per XXXX. contracted rate run later to the but billion. of have which to excess depreciation $XXX cash per assets platform include previously charge the any comparing

lower with In the vehicles future, believe overall. addition the operate we to in can DPU we less business

pointed utilization in cost is improved driving a Gil efficiency for ours, As an that probably out, is business but underappreciated. unlock large, asset asset-intensive critical like

our the actions we while by and benefit. business transaction There our X% reduce produce kind million more reduce by in than reduce of days million than reducing take more $XX that cash could In per year producing than $XX of same expenses million. more many our can by debt our fleet outlay $XXX are that not our that fact, number and

results long-term number of a to revenue-related structural headwinds is Regarding chop, have the and is starting tip and personnel. like efficiencies in expenses, in we driving see in to in where cost journey, still This driving is end expense continue plus business, efficiently full our insurance of advantage exercise. our units largely have also in We newer be lead but a visible case facilities results core show. collision, the to efficiencies of to transaction not our lot this the operating we and benefits fleet. structural maintenance, cost continue progress year the aggressively X%. starting or chain, to supply opportunities so. sustainable see We improvements inefficiencies still not and cost our almost DOE improvements down days next the won't we QX in future, But do, have of long-term The produce over until areas to a need however, including can a the Quarter-over-quarter, scale of favor. addressing already reduction results. is We wood cost or onetime is the take a expenses, are to business

and in million morning. was Supreme So now the on be commenting Circuit's over make-whole In a $X.X of of our we bankruptcy is the accrued and to Court. as $XXX quarter in favor an still from capacity the decision, $X.X flow. filed this of There $XXX the brief ended meantime, unrestricted cash and quarter. liquidity published decision additional well appeal over let court's to bankruptcy facility. cash in the the me liquidity We over comprised with that billion, credit approximately of overturned claims our talk litigation post-petition in ongoing. that arising revolving million the I'll U.S. disclosure are under billion available and available third about Third We which interest the opinions briefs intend the detailed we XX-Q as as

our cash low of XXXX, and point middle of progress around We of fleet continue rotation. to the that forecast our be given will needs liquidity the seasonal

with for have like in comfortable sufficient, that cushion more levels our be liquidity unexpected to these expect volatility our feel do the still I or I and While market. would to liquidity

in coming be markets active months. to the the capital look in probably will we So

other to have capital the generate to But us favorable inflows the cash take moderate prudent outflows cash it's also think that give or levers We markets flexibility. is available. opportunity I of when advantage

seen our we build have Regarding facility. cushion ABS, equity in an to start the

million the incremental we into a made As structure prior payment in call, we on our $XXX August. flagged lease

With to values residuals had new vehicles And then, enough Since in recall, make new payments facility. June offset some weren't currently the we though cushion. don't to vehicles, residual stabilized. we residuals purchase to decreased additional into impact. have positive, X%. you in are we July bring residuals unscheduled as about they stable the prices, more If came in beginning build better expect the and at the need And

Regarding the dates. the final U.S. end vehicle amortized term the X prior months in ABS debt of maturing by the to year, the our maturity notes

of billion QX, $X end the of already retired. billion of of As been maturities $X the had

remaining of the maturity In we under of available notes. quarter billion billion. refinance end, to $X.X commitments addition, at $X our capacity Sufficient VFN maintained

On have mid-XXXX. maturities the corporate until meaningful do not side, we any

summary, almost produced an per in RPD, every important DOE quarter and in this DOE variant improving others. EBITDA, spread, So year-over-year day metric,

are are but about we and heading. not where we're visible, are improvements We done, clearly optimistic

are We XXs, low and DPU In yet RPU in guidance, the targeting rate provide expectations working per a new run QX not guidance, formal making a below of $XXX. XXXX. our DOE our are to more $XXX but we regard the outside regular rate $XXX still towards above of DPU this a to to are around now run feature range, metrics X,XXX in day position in in

let closing comment. Now for back Gil hand it to a me

about challenges management we're them but on, Scott. In teams hitting ahead, we're and clear-eyed and Thanks, this I've head seen the are our closing, energized. employees before.

Vehicle front data TSA macros in global opportunities us which readouts market than airlines the have positive. ticketing more arc the remain from conditions The are growth and our and rotation. strong. benefits have travel from here Both challenges. positive normalized, of We fleet reflect

is and about on fundamentally the we our the the look long-term I about now progress picture for sustainable, how broader we've around we're success. laying the We're reimagining I groundwork at As it's improving operate. this made, just transformation, not our like financials, path

remain Our building team. coming and that up dedicated focus excited to quarters. With ahead said, a you about for our on in progress look We're and the with clear will on the what's forward call open vision momentum questions. updating let's

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

get BPU I little us Scott, and color what's then and Gil a expand in and of of that confidence. under mentioned maybe you go can level down little upon going that as to Can $XXX a to you expectation bit that give an your that future. range guess, into bit the

like sustainable to you just sustainable free start engine, path Yes. and levels, back feel to you know. see to get -- Scott. fleets, as if a sub-$XXX in Thanks, DPU economic Chris. a I'll our definitely we But and historic yes, to getting chime really our

So the from market the COVID conditions have Six is noise normalized and Sigma subsided.

well give So as is line buy us date sight expected we've below advanced, of $XXX. DPU mentioned, our and our made fleet buy to on to Scott the XXXX economics that a

addition conditions the So the fundamentally we to fleet. normalizing, we've in market changed really manage how

turning there's make we're into competency. would So fleet a a I core along it strategies and points couple management our that. of change And

an we've now First, got place. team We end-to-end buy in fleet management right.

curves economics. we've We've asset. got make the at thoughtful level and an the maximum mix the And for reselling that's about know, targeted on each. those towards right. eye vehicles got you and return depreciation got vehicles of optimal at targeted a at unit point getting We're as So model to curve we've differ because sell process

to the in gives value. us we're longer-term optimizes periods, shortens and exposure so economics it taking And residual fluctuations our approach then less our generally hold

gain will also grow our sales maximize sales, we're leverage. effectively channels we factory have. on to and car the That want So we a used to retail

want out our mindset run the a of respect. leg a earlier, with the manage with out to kind fleet tailwinds we're and in and then have from we've partnership service a of I'd got as gives to a right, fleet we'll And utilization, that's reduce in it's creating. or are proprietary I maintenance. that whether Palantir several of sales us And point our channels plan for that also that younger fleet. us higher up tool better noted that think a we nonproductive So then And that

a assets a So maintenance cost, sales of that. and of lower then customer fleet experience retail of harder benefits top lower lot better course, sweating strategy, on with the got the and growth DPU

So forward. in we're the confident path

Okay.

the you follow-up, able the being might a same number in of lot get savings a but reducing still of by from As with about you less of do your doing transactions. talked kind fleet X%, terms to more

And stay fleet think XXXX guess, scalable But of right? as know well. utilization. is say I and is the size. say, increased your to other mean, kind smaller guess, of going a So benefits back to, not focuses I I and got So scale this plan longer-term I you've that about business, it your cost to is

kind any scalability Just some on cost cutting right? of the is here, drive of that thoughts how fact to with operations there

Sandeep, days on a team to more he it But that. generation on We been about do find Yes. fleet No, to demand I'll continue then pricing still focused inside to and Look, point. talk finding also and enables to recognize the operate we work our top demand with matters. we're is fair scale think it's continue to very that of very But but I the over a this. curve. and disciplined can that piece there's we've between to also focused demand that, ability scale. got creating that. to the on that turn want and balance We've wholly right

this Sandeep Yes, here. is

choose we brand-agnostic lower-margin certain key on scale I there. a of stage, But do can on that pretty there that go in a way, but perspective, that RPU. are think gain if RPD, customers talk some are you transformation heavy comfortable are we of in focus gain which part how right heavily actually of focus And we we demand we that business back, want there factors in incremental with that to equation heavy that letting while to our the about being who we future, are Hertz. play comes But demand as strategies drive of is that on this that focused that from driving course, in the generate other focus premium being are what do well. demand? Like a customer And heavy, segments. experience, when with

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

rate October, November, you're we about Can going you there? into year? guys in the about even what And it think maybe next how of talk do seeing some trends maybe basically

Yes. Ian, here. Sandeep this is

talk that. a me little Let bit about

I QX QX. general, in think in then little the I come late industry let to a in and me pricing So -- in when And and about bit I'll demand talk specifically supply rates.

So range. booking supply. data of is yes, pretty demand slightly when through the the look Whether rates there a we have still down so far the overall you industry, our, is so it's overall, said, to say number. right? days, forward-looking And and specific rates airports. a being it strong. Demand From supply QX, first Balance perspective, you a that in consequence pretty is strong with of you when transaction overall whether look That look QX on little at be at them a impact I at strong. the overall seen QX. industry and at can consistently not in in still you being higher end balance, far at in I continues look in It's tail is a see bit and at the supply airline supply what is would

it comes to and look and overall and state. we And large, a still and rates. pricing balanced mark when are to the it's XX percentage look compare you demand in up we by at XXXX, at still you So very when supply, contrast upper when

equation the pretty generally the as say we well of in overall is side the trends. as both So the the supply equation demand feel of the balance, with side comfortable I'd and

maybe related then impairment And through that maybe question Great. of for Scott. Can to just the was talk Okay. key announced. some you considerations a the

structured look, for and triggered. impairment, process comes mean, if to When monitoring, it evaluating gap a scripted is I an calculating impairment and an there's

and to and we complex impairment So our that triggered review, QX monitoring thorough impairment did did not. we've during been prior we began it. working And see we to and the an trigger process calculate found quarters, accounting through if we in an

primary that market was fleet vehicles. which driven driven the flow the impairment the the between by The impairment book of remarks, was rotation turn initiative. largely of of mentioned of prepared was holding over in of the by gap the As in values asset, cash impacted accelerated and our my the I timing current business period the by size value generation fleet

I this individual. And to impairment book think difference, mention expense. fairly in It about as I XX% align will in of that the is smaller doesn't just that's value isolated The right obvious our fully a so to be And it's charge noncash fact, most again, I'll value. to the as remarks not market people. mentioned fleet, well. anything prepared a

value vehicles marks facility. already facility of ABS to Our market the the the in

So you been could through impairment say that the side. on cash pushed the has already

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

kind to of go mean, business about and to next you look question XX forward. XX down, just guys the the QX wanted of maybe I pricing what over about so. cost it, call versus levels I model, maybe you at ask side a months but fleet things you're not being necessarily we're talking When the today, XX% or seeing

interest costs got You've lower. going

is. figure manufacturers what You lot demand with a and to of also have cars dealers out trying

if lower, at be being X XXXX over industry of levels So pricing levels do then cost closer input models and do you the cars the these to think your to expect should costs available to these the move levels, or the just levels carrying at X think next you being than call like stay years? for RPD rather we to about or actually

are a we Our being to to we curve said, focus pivot focus, that the that go back I pretty premium that the seem in on, be demand to I equation what I'll would take I little way go fleet earlier think improve And ensuring that that RPU. See, RPD. make and I'll here. in bit the balance. is to equation general, side the demand mentioned ensuring doing want Sandeep by is of this question. right, we continue we I say where, inside side That the is to our John, of actually supply that right? after that the and both much sure

look alluded a think there side, for commercial coordination over do X work coordination to to fleet of between sales we've us, I the fleet. the assets the operationally the from realized better to and that is actually, under reducing is the and uncovered the We've extract of Now sweating that or where the last basically, by progress same and of The execution commercial a state in and a we an X days more. see a we the improving point could as there's And number our as gain we that execute a want tighter and that months, from Gil scope I scope fleet opportunity that inventory ahead demand, around opportunity smaller maintenance in couple on utilizing for perspective. still [indiscernible] we team better trying for aspect team.

us thereby manage So I to to our for continue our think and better to pricing scope there's more a extent. sweat assets

So there's a for scope there. us for improvement

just question the little rightsizing on then And just a Okay. bit. kind of fleet a

business, to Or you've of understand demand fleet I the to you've goals? hail, of out? "Hey, Do Thrifty. piece and the get to the it you've to willing to trying of try take and commercial where of the just what could mean I'm you got cut next that and size where amount but Hertz going more year? targeting getting give it universal up we're kind areas when a think leisure, about you of like x made is guys You plan geographies just the your presence going throughout to rental kind reduce market, business to also for smaller? those you kind taking curious all saying, you're on you've business of got I raide got And off-airport, by on got of progress, you're airport, are Dollar share?

the the John, taking right? the essentially the Yes. that the for model. the a look end are in are up way our at -- what we taking have from in, fleet is And at look change ensuring about we location, we that and on transformation doing perspective, that is how an our on look focused trends, there's and are what operate, a And where no day, [indiscernible] RO we making There's margin. pricing assets right right the back, at ongoing that growing. assets then right? improvement at coming so we you at is business. demand Taking so demand What optimizing what essentially fundamental is talking talking business of a a that keep we our are we contribution contribution sure on right about we based allocate, the the that where driving contribution -- we is continuous in basis, on get

an ongoing It's not a it's and improvement fundamental continuous So optimization. difference.

question line next Babcock from of Our the John Bank with of comes America.

to want things. back go the just to I DPU of side

about $XXX is you OEMs more You when believe But lowered And talk target think be any you that Is those mean, if the the associated from now there's with term? you're incentives of offering? that the just you right being that want in that I low currently mix I to something actually you're into at in below longer vehicles now that some shift in even now, range. this, by seeing about buying sustainable this been Or a would potentially if over is are what $XXX, is part $XXX could then also, get of sense, driven helpful. terms right this the normalization.

Thanks, yes, confidence that normalized. here parts Yes. DPU. in. But I X conditions we that have One, the market chime this, themselves, think sub-XXX feel I'll to give run there's take can right, John. us free

team settled an dust -- so then any Clearly, to being with historic from do talked now market we our But the level Again, piece can about vehicles periods, going-forward to your that. buy, year fleet, or same we've I us less. on back of squeeze fleet towards We objective, mix end-to-end normalized. return really a strategy to to gives optimizing fleet there. forced think themselves fleet believe on with We book what focuses environment, the waste deal it so And to the towards deals you that eye fleet. more then that. sweat the are it, sustain piece, back foot customers The can I beyond a produce during our done we whole is different. want to conditions a levels. sizable more planning sustainable. of fleet harken And versus the current and number the the with of kind to COVID relative a think we X which will, we for buying were But basis, really model Sandeep the out economics our got mindset selling, we number our mindful ability less we've to which of think is operate but what I more if eye just changes fundamentally the from whole smaller of 'XX, 'XX, the deals days. yes, that got and with assets. asset or we're question has there, And mix. have an on a COVID demand an We've it's can

then ever So we've sales the we're that right the channels. in hold to had. the our the optimize ability again, through holder changes, and shorter a at fleet better got with got And periods. optimal the of side on we we've mix And then side, strategy focused -- point than sales

sub market So ability the fleet with changes, us I to debt. strategy conditions, $XXX sustain think, gives coupled

X Okay. And here. follow-ups then just quick

mentioned through XX% First quarter you that about of all, think, I refresh. fleet did, the last you're

provide secondly, of looking to are liquidity be in you to that color? could returning additional sort far you If just cushion then of just now? capital terms you could for an what provide comment extent And on markets, update you the might the can you if how

Yes.

of on continue side. definition of just I've on you make published got some of to the to rotation, presentation better give referenced we've will north progress. That the first you we XX%. the that. to some We're some fleet material So

Yes.

another to depreciation certain of view it's that's maybe level. better a the model now rate probably a at think add percent think a I probably that in we DPU, the about to fleet rotating versus different year fleet is have a that that run

Gil as so forward. we'll And in said, 'XX it and we're sort 'XX to are the about year going XX% range, probably that or of model how that's view so

it debt's going here. So at forward the to way from probably I think look wrong

the front? on then liquidity And

could you Sorry, that? repeat

again? Can liquidity the you ask

sense I talk you a next on I did there. of just about to capital the comment months returning to markets the like or for want add how wondering, to couple you'd can was get you just much if so. And over additional liquidity

Yes. that to or months. over prudent It's right amount looks the couple happen the go of to the what will do by ahead to through, capital desire and that. out but unsure which will play figure it's just We'll think in think and still probably I the But it's do next level it markets. my vehicle it which now I like

line Our of JPMorgan. comes next from Ryan the with question Brinkman

to for trip by versus top lenders? the in implications will up to impairment, debt your result put of amount a regard as the required And your with of Firstly, against be the might are the equity plans as that ABS equity capital what count the calculated to fleet any the into maybe fleet charge?

ABS It's any the affect doesn't the of of neutral this a any charge facility, no financing. impact Yes, to to noncash is that. so

was EBITDA target another depreciation. vehicle via Okay. factors guess, adjusted that now excluded will below EBITDA Will impairment. from it DPU going prior? the adjusted helpful. XQ, benefit you then helping the versus just ongoing the Is lower forward one $XXXs impairment $XXX Very I that, to one in of on And low

expense in the is an So that hit impairment we the period.

will to less not expense affect P&L. depreciation go-forward than will push it through excess So we have other the

end the DPU mentioned range. out We'll go-forward fleet continue to in to $XXX QX the the work I the the the 'XX. $XXX of through so remaining excess is of DPU, And debt

by said is sort get $XXX targeted we run to we of to 'XX. the which So below our expect are our rate, end of

line sub-$XXX of 'XX it as to end the by from you level the model sort could sort $XXX to $XXX you straight So out. of

for Got to the might but to of the that how be to comment it. on looking the understanding raise, equity, to debt in right to like your you thought markets the interest considering follow active raise might sort want trading where right lastly, capital think much debt your and you then sure in equity months about And just up now, rate is is you're now, the want coming equity-linked about whether environment, what's versus just not where trying trading process capital? in general

Yes, the an I I to don't appetite be at capital point. would now this think focus equity capital. raise debt there's for think

the line from Lizzie of comes question next Dove Our Sachs. with Goldman

don't may not help a or that size impairment push of the mentioned anything you how bit, after are there. there's that less many you forward, quite EVs left done. provide know you kind going of think be markdown can kind and quantify of in some I kind to especially color with Could through but I the little terms that of

Yes.

$XXX for differential, excess I look, down to, it, think sort would call get we of sort could So to $XXX debt $XXX you excess call from the debt. that of the sort to this of easy range math, of sort

marker that excess as so can calculating the debt. use your And for you

a do it. to that's think good I way

And the that? repeat was you Can then back of what the there. sorry, question end

things, the... of in side that On like now the of EV are kind how far you through

XX% right? less the before, EVs the than are I right, mentioned As mean, today. I we've of Yes. mean fleet

through vast of sort move. those placed rotated with The strategically so a are we're that in majority our we've happy fleet, of EVs So levels. remaining

the really being about we think as I the ICE of impairment. about it's large And portion So DPU. the think

it. Got

to is next to Is say, enterprise of about kind to more. And kind as Clearly, volume Okay. you're of from some think down? as kind gears And here? And follow-up. competition is year's of down as from, and then days as What transaction how well, well. that that business. a say kind to guys bit transactions? kind still of you level have think it be the the look factor competition fair up. Avis de-fleet higher right continue of like kind switching is seems can maybe both you prioritizing of I little a players for It TSA just much there's my other been The high-value

for Yes. as Lizzie, say not anything XXXX, scale. this in here. right, transaction any still formally going unchanged, and is giving And Sandeep strategy days. guidance including I'd remains after our such while maintaining RPU we're on

number same smaller produce also add of with I the we to days a then, can just fleet. And think much Yes.

is to drive is that So our really focus utilization.

not? And competition, kind of on whether Okay. the anything state of that's or increased

fundamentally in that's the nothing different industry. Well,

line next with the Stephanie comes of from Our Moore question Jefferies.

This on Moore. [indiscernible] Stephanie is for

RPD on a last lot guys the time pricing. think I spoke, dynamic improving you worked we

so the early some of has front? seen the guess just -- walk that progress far, any you've Could I results? on early So this yielded through you

question Just what dynamic around? the the through was Sorry, RPD pricing. question, to repeat

far? seen or could so you is this pricing success walk asking process, implemented strategy this seen results, that any through you you you've This as any Yes. have to

Yes.

basically example a value-added So comes pricing, successes to when dynamic a service location where a out there customer-type use and that's can it the there's significant I biggest place perspective from from perspective. where I our driven the sensitivity utilization in of we've think

and executed And our of driving so we've be commercial improved dynamic assets. strategy, gone continue heavy team, a pricing, seen value-added learn it's test from ahead as to and whether into right? that from going pricing actually conversion, We're it's dynamic to in service, monetization a we've dynamic across gains a other elements that of significant pricing board, and approach the whether improved executed

of what as are across pricing of dynamic testing So team, just we've as we doing frequency board with increased the example that that that. well X the the is the being can I commercial quantity say

So I significant as our to forward. monetize ability in our improvement expect move a assets we

the really of XQ thinking it happened that quantify quarter? about it. happen would that you be should in hurricanes, any Got guys we about you Or impact the guess And impact would how on within think are that? helpful, then I that the if could or

Yes.

of hurricane, hit, of the activity you you see that not want Southwest half are preceding of customers would the just leave flights who days, following is first demand not in the One travel, quarter of increment then goes hurricane one the the to then terms with especially speaking, customers So course, Florida. the in those locations we out you and basically that than the customers some a one-way X fell canceled of in is in And impact basically and when hurricanes. generally supported of in wanting so to of in through down had, significant of affected, see what October. And what lot the an course, just other the and see regions, we being that rentals other preceded locations.

responders, First, have the more as through. made see that to you ensure them. which rental through population, then vehicles available we even local demand from And we first come

So and net-net, overall on impact I'd say, a the benign. pretty quarter significant not

Our next from Dan question Levy comes Barclays. the line with of

maybe on unencumbered are type do you've things up past are sort manner impacted there, type one out types refresh of you of by skewed done the the you really fully the for the on the any you've of the segment, little a dynamic in being years. questions OEM? fleet done -- have think fleet regard business that that deals you've of that less prior in to refresh to of way that to Wanted be mix mix in your fleet regards follow refresh. offered refresh in the really with the liquidity Or line to a the which that get Has by with that that want maybe of with sort approached

rotation of probably fleet our model, because economic comment taken has I'll start. Scott, the no, you want fundamental to we're view as well. it's But engine. it's certainly a long to business

really the not way And fleet manage, we've have we've are what optimally? what to look does has rotation to while So that approach done. we approached taken -- deals or we of this that in rotate liquidity we've that like is terms the does look the that the always something it changed

about No, that's mean, with right. being I conservative we've liquidity. talked

our in the want and optimize to ability fleet it. do we a time frame to not the it's So restrictor

been has about buy we what how that being We're date, issue. to an it. strategic very So we buy, not and

So no.

is about per unlock much to your How what's in of get need guidance And Maybe just that could to need sort systems? Great. systems the transaction $XX to you refreshing to the also we systems and per resource low do that you'll dedicate low outlay day day. BOE type line of getting DOE that talk this XXs. the of and of optimization to your overall

Yes, Dan.

sort a question And multilevel things are a of us. answer. to lot that's just systems So of

biggest seen have entire seeing the do mentioned excuses snap and one a all But manage we're is the license And and we a A and insurance sort the is the across is have things for have process progress to too. the unlock try board. can, talking components. quarter-over-quarter down claims of like we'll PL, all considerable But actually sizable before of sure perspective, happening that's that your oddly enough focused year-over-year waste in that tax it's and -- I chime you're the I pieces. data can other I'll We're of are increase some around is, and unlock that operating on no but fairly already We're fingers Gil of the about But us things we revenue-related So to. in headwinds key We've Gil of these think and that operationally are in, the But us, costs good components and on from making for expenses IT. to I headwind. insurance. think, to manage year-over-year process the it. systems I and the in operating we really for that fixes. progress. best I significant pointed but things not mean

sustainable view run the looking all in efficiencies. short do aggressively the So a long-term can around we we're business things as chunks taking them cost in at of the with

which we're there's about I process but all there ahead road improvements, the it's key This going we a long is take system. to things excited the of sort So for operating that's isn't we're progress, mean data these unlocked. I the But not but progress, about excited about is about the a and and getting that today. operationally, of is is think what this money. large IT some spending do capital here investment, component

add. Yes. would just I

a approaching I unit we're of in way summary. think fundamental couple were note A good change is costs. of things that's to the it

management. but operating the operating culture I we measure, a like management of get right systems, it's what because a cost process lot driving foundationally, the organization spent want systems a that call So results really one, drives the would time in goals unit we that but management you, you what putting right place, focus, of

systems, closed are So and and good starting ability it's with it, never we the cut the to being right reporting, right? of doing, cost everything reviews, having stood we're operating one having So action management ends, those, it to foundational goals, which the to data loop, those a up.

The newer a I people, That's All important of of up And team. big kind we talked double then doing being Scott great we maintenance enablers we're lot into team cost the affect process and from rethinking think, utilization. those there's got can unit in focus. TAT, before are cost. results got other unit a I think, is -- a we've to another Candidly, initiatives fit all, really also us. way. rotating to those. a how buckets the an that's that responsible of collisions, of the for work, great the chain, example, expect for would me, then us. right fleet engineering, first goals. higher but terms everything ability to because also as leapfrog, But a And lever it, and lever of for that for a that to utilization on we've in to your and from number alluded positively things a really our here, that's process by to the we're Leveraging that little down the of having the there's are lot about unit that development a on obviously engineering but tailwinds side, those cost progress manage a real that process productivity, business. internal areas, We've make costs, catch things. piece, cost all continue one playing of estate, got to big partners There's supply to We've we're opportunity Dan, but tech question, the in

a fundamental to it's So unit going in forward. really shift our manage cost culture to point, Scott's

final Susquehanna. from of question come Our line Christopher with the will Stathoulopoulos

want Sandeep, around or better the Gil efforts guess, understand to just utilization. I I

fleet. should smaller on does if might just that as more And think monitoring benefit we materialize I'm And what could in metric expect off-peak, brand, fully ultimately should we ships to, entail? So or of see if technology? on Maybe RPD, versus really, side? we Where -- we involve then thinking about around the you transaction could speak peak regions, DOE? driving that that same days that, unit to that a higher

Yes.

dynamic that, So waste come of it come basically this you and on please without, you fleet And fleet commercial, talk through basically we the fleet team there. right? improvement I there, and right? coordination candidly, take prepared right? between I rentable Because done there's it's differences utilization, that. when under come basically First likely that, think to work from a in team time productively is about of We're fleeting where There's that into there's improvement more then well they all, Gil and we've that than system. play. there's when remarks, is see when I'll referenced is Sandeep, then make started fleet like which vehicles, process the have driving to service, So midst at with work that. to has then perspective, the to right? the we there's add think a truly be perspective, demand into newly X the change and First better work that that my about we're it, fleet referenced we for components a be process formed management third do are that Christopher, remarks integrated and the managing curve, Because curve where the off-peak team, this this related before I'll that. see that to you can process when referenced, be below There's in about So fleet. the from I'll And Gil component commercial and lead essentially Gil, that any agile to that's that to better talk And total the right? significant being in I utilization, demand fleet the a right, to out basically recognized that when that the you in that's of but -- that elements. coordination his their to working look a around as that out through demand already right? all to look just environment. working think done in it you But in removes for Anytime we not Then alluded being overall sales it's to utilized we on what comes sale the waste opportunity, there right? prepared comes essentially, more at we mention -- scope from the as are is play and vehicles

that team our your where regionally optimize located is can into And can vehicles come lastly, terms how on demand And working through which engage efforts towards there's, of that course, as you in as of commercial off-peak generation team the well segment that there are as and so our components are periods, and their incremental offerings the for play. well. those

They're those components. are all, in work transformative. just a all say, some So progress. would They're I

what of I ARPU. our some the And At these And help things will driving and that. think day, is the end of end those objective our time. contribution take some on improving will

Okay. I cost And know a total back-to-basics I a of don't you've Gil follow-up, is -- Scott, part as or third your plan. think cost communicated the

could dollar formally on you of or color in amount, the communicated part plan? you perhaps you if where some that a are If give total just

is Yes. start. This Scott. Chris, I'll

unit or metric. for our day We of the XXs target formal XXXX DOE. a DOE per low rate sort on haven't cost run about a guidance for of We've talked given dollar

that. sort of it think I at leave So would we

the incremental continuously to your is a of levels, 'XX. -- things said, 'XX gradual rate this exiting are fix. run your that of to but think than These just we rate. think run snap going we progress improve a Like to work there's at to I get targeting. our of I is not couple of until our lot a we're a get better pieces sort still do we're rate have But I average to of color fingers

of So down start time. sort it sort I gradually would at that walk and you think level of over

This your concludes call. you conference earnings Hertz third Holdings Global for participation. Thank the quarter XXXX

disconnect. now may You