Hertz Global Holdings yesterday reported results for its third quarter 2020 with revenue of $1.3 billion, a decline of 56% over the third quarter in 2019. Hertz reported a net loss of $222 million and adjusted corporate EBITDA loss of $26 million. Liquidity at the end of the third quarter was $1.1 billion.
"Our U.S. Chapter 11 process is progressing well. Recent, new funding and commitments of more than $6.0 billion allow us to continue taking steps to best position our business as a rental-car and fleet-leasing leader through the pandemic and for the future," said Paul Stone, Hertz Global's President and Chief Executive Officer.
"Since Labor Day, U.S. rental volume has trended better, reflecting pent-up leisure demand and market-specific rate adjustments. As a result, our domestic revenue improved 14 points sequentially from July to September. And, October revenue has held steady at September's level," Stone said.
Throughout the third quarter, Hertz Global took advantage of a hot used car market to take average operating fleet down 34% through its remarketing channels. Hertz Global's average international fleet is down 51% in the third quarter year over year.
Hertz is increasing its annualized global cost savings target to $3.0 billion, up from $2.5 billion.
In addition to the $1.1 billion in liquidity at September 30, the company recently closed on $1.65 billion of debtor-in-possession financing, as well as $4 billion of fleet financing which it believes will meet its forecasted U.S. fleet needs through 2021. In October, the company closed on a fleet financing facility of up to $400 million for its Donlen leasing and fleet management operations.