Hertz reported total revenues of $2 billion for the fourth quarter of 2022, up 4% from the fourth quarter of 2021, and up 7% on a constant currency basis.

Total revenue per transaction day and total revenue per unit per month were at fourth-quarter record levels, and volume was up 3% led by post-pandemic demand recovery. Hertz said depreciation continued to normalize during the quarter.

Excluding litigation settlements of $168 million in the quarter, direct operating expense per transaction day was $33, down $2 from the third quarter of 2022, showing improved operating leverage.

Net income was $116 million and adjusted corporate EBITDA was $309 million, a 15% margin. For the quarter, loss per share was $0.01 and adjusted earnings per share was $0.50.

Operating cash flow was $277 million for the quarter. Hertz said fleet capital expenditures of $312 million was a source of cash in the fourth quarter, driven by fleet rejuvenation and seasonal defleeting. Consequently, adjusted free cash flow was $424 million, reflecting a 137% conversion from adjusted corporate EBITDA. The company acquired 19 million shares, or 6% of its common stock, during the quarter.

“Our strong results in the fourth quarter and record performance last year reflect a commitment to customers – from leisure and corporate travelers to ride share drivers. With a focus on asset return and risk management, we showed better operating performance, more disciplined fleet management and a commitment to financial returns,” said Stephen Scherr, Hertz chair and chief executive officer.