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Dec 31, 2020
Hertz Q4 2020 Earnings Report
Hertz reported a challenging Q4 2020 due to the pandemic, with revenue declines across all segments, but showed sequential improvement from Q3.
Key Takeaways
Hertz Global Holdings reported Q4 2020 revenue of $1.2 billion, a net loss of $289 million, and an Adjusted Corporate EBITDA loss of $140 million. The company is progressing with its Chapter 11 reorganization and aims to emerge by mid to late summer. Despite the difficulties, cost savings were achieved, and customer satisfaction remained a priority.
Revenue was $1.2 billion, a significant decrease compared to Q4 2019.
Net loss attributable to the company was $289 million.
Adjusted Corporate EBITDA loss was $140 million.
Liquidity at the end of 2020 was $1.1 billion.
Hertz
Hertz
Hertz Revenue by Geographic Location
Revenue by Geographic Location
Americas RAC Revenue
CapyFin.com Forward Guidance
Hertz is focused on navigating its Chapter 11 reorganization, with the goal of emerging by mid to late summer. The company anticipates closing the sale of its Donlen business in March 2021.
Positive Outlook
- On track to close on the sale of Donlen vehicle leasing and fleet management business in March 2021.
- Making progress on plan of reorganization.
- Goal to emerge from Chapter 11 by mid to late summer.
- December 2020 global revenue nearly double that from April 2020.
- Achieved monthly, sequential year-over-year global rental volume improvement.
Challenges Ahead
- Travel demand remains suppressed due to the pandemic.
- Uncertainty related to the length and severity of COVID-19.
- Risks associated with the Chapter 11 process.
- Dependence on the company's ability to restructure its substantial indebtedness.
- The company's ability to maintain sufficient liquidity.