Hertz Global Holdings Inc (HTZ) 2024 Q4 法說會逐字稿

Welcome to Hertz Global Holdings fourth-quarter 2024 earnings call. (Operator Instructions) I would like to remind you that this morning's call is being recorded by the company.

歡迎參加赫茲全球控股 2024 年第四季財報電話會議。（操作員指示）我想提醒您，公司正在錄音今天早上的通話。

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

現在，我想將電話轉給我們的主持人、投資者關係副總裁約翰·羅林森 (Johann Rawlinson)。請繼續。

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.

大家早安，感謝大家的收看。現在，您應該已經收到我們的收益新聞稿和相關財務資訊。我們還提供了電話會議的幻燈片，您可以透過我們網站的投資者關係部分存取這些幻燈片。

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

我想提醒您，本次電話會議中發表的某些聲明將包含前瞻性資訊。前瞻性陳述並不能保證業績，且其性質有固有風險和不確定性。實際結果可能存在重大差異。本次電話會議中傳達的任何前瞻性訊息僅代表今日的觀點，本公司不承擔更新該資訊以反映情況變化的義務。

Additional information concerning these statements, including factors that could cause our actual results to differ, is contained in our earnings press release and in the Risk Factors and Forward-Looking Statements section and in the filings we make with the Securities and Exchange Commission. Our filings are available on the SEC's website and the Investor Relations section of the Hertz website.

有關這些聲明的更多信息，包括可能導致我們的實際結果不同的因素，包含在我們的收益新聞稿和“風險因素和前瞻性聲明”部分以及我們向美國證券交易委員會提交的文件中。我們的文件可在美國證券交易委員會 (SEC) 網站和赫茲網站的投資者關係部分查閱。

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

今天，我們將使用某些非 GAAP 財務指標，這些指標與我們收益新聞稿和我們網站上的收益報告中的 GAAP 數字相協調。我們相信，這些非公認會計準則指標提供了有關我們運營的更多有用信息，可以更好地評估我們的盈利能力和業績。除非另有說明，我們今天的討論重點是我們的全球業務。

On the call this morning we have Gil West, our Chief Executive Officer, who will provide an overview of our strategy and discuss operational highlights and our fleet. Our Chief Commercial Officer, Sandeep Dube, will then share insight into our capacity, unit revenue, and commercial strategy; followed by Scott Haralson, our Chief Financial Officer, who will discuss our financial performance and liquidity. We are also joined by Darren Arrington, our Executive Vice President for Revenue Management, who will be available to answer questions during the Q&A session.

今天早上的電話會議上，我們的執行長吉爾·韋斯特 (Gil West) 將概述我們的策略並討論營運亮點和我們的機隊。我們的商務長 Sandeep Dube 將分享我們產能、單位收入和商業策略的見解；接下來是我們的財務長 Scott Haralson，他將討論我們的財務表現和流動性。我們的收益管理執行副總裁 Darren Arrington 也將出席活動，他將在問答環節回答我們的問題。

I'll now turn the call to Gil.

我現在將電話轉給吉爾。

Good morning, everyone. As I reflect on my first eight months at Hertz, 2024 was undoubtedly a challenging year for our company, but I am pleased to share that we've taken the necessary actions to turn the page on the past and set Hertz up for ongoing success. While there's still a lot of work to do, we are already seeing encouraging signs of progress as we've implemented fundamental changes, which have laid the foundation to transform our company for the long term.

大家早安。回顧我在赫茲工作的頭八個月，2024 年對我們公司來說無疑是充滿挑戰的一年，但我很高興地告訴大家，我們已採取必要的行動，翻開過去的一頁，為赫茲的持續成功做好準備。儘管還有很多工作要做，但我們已經看到了令人鼓舞的進展跡象，因為我們已經實施了根本性的變革，這為公司長期轉型奠定了基礎。

When I joined, I recognized two basic truths. We have an iconic brand and our success is powered by our people. So I want to start by thanking our dedicated team for their resilience and commitment through this period of significant change, especially during the busy holiday season. We've strengthened our team throughout the year and supplemented our resident expertise in the rental car industry with experience in transformation and operational excellence across transportation companies and consumer brands.

當我加入時，我認識到了兩個基本事實。我們擁有標誌性的品牌，我們的成功源自於我們的員工。因此，首先我要感謝我們敬業的團隊在這段重大變革時期，特別是在繁忙的假期期間所展現的堅韌和奉獻精神。我們全年都在加強我們的團隊，並透過在運輸公司和消費品牌的轉型和卓越運營方面的經驗補充我們在租車行業的常駐專業知識。

Many of these individuals also have experience with managing asset-heavy businesses, and all of them are attracted and committed to transforming Hertz to once again be an industry leader.

其中許多人還具有管理重資產業務的經驗，他們都被吸引並致力於將赫茲轉變為再次成為行業領導者。

Most recently, Chris Berg supplemented our best-in-class leadership team as our Chief Administrative Officer. Chris spent over 20 years at Home Depot, running large-scale transformation projects and operations across 500 stores and 100,000 employees and is immediately enhancing our ability to execute cross-functionally.

最近，克里斯·伯格（Chris Berg）加入了我們一流的領導團隊，擔任我們的首席行政官。Chris 在家得寶工作了 20 多年，負責管理 500 家商店和 100,000 名員工的大規模轉型專案和運營，並立即增強了我們跨職能執行的能力。

Doria Holbrook also recently joined as EVP of Mobility. Doria was instrumental in operationalizing Amazon's last-mile delivery service and will bring innovative expertise to the significant opportunities we see in this space.

Doria Holbrook 最近也加入該公司並擔任行動業務執行副總裁。Doria 在亞馬遜最後一哩配送服務的營運中發揮了重要作用，並將為我們在這一領域看到的重要機會帶來創新專業知識。

Our new organizational structure enables faster, more rigorous execution of our strategy. We've also deployed robust management operating systems, which drive a disciplined approach to managing the business and achieving results. These systems are fueled by goals, which provide the proper focus for the team, managing with data, reporting on all aspects of the business, rigorous performance reviews, and reward systems that align to the success of the business. With these foundational elements in place, we are building a high-performance culture driven to win to once again become a leading employer of choice.

我們的新組織結構使我們的策略能夠更快、更嚴格地執行。我們也部署了強大的管理作業系統，以推動規範的業務管理方法和實現成果。這些系統由目標推動，為團隊提供適當的關注點，透過數據進行管理，報告業務的各個方面，嚴格的績效評估以及與業務成功一致的獎勵制度。有了這些基礎要素，我們正在建立一種高績效文化，以贏得勝利，再次成為首選的領先雇主。

Our actions are guided by our back-to-basics roadmap and are anchored by three core financial pillars: fleet, revenue, and cost management. The key enablers to these pillars are our people, technology, and processes.

我們的行動以回歸基本路線圖為指導，並以三大核心財務支柱為基礎：車隊、收入和成本管理。這些支柱的關鍵推動因素是我們的人才、技術和流程。

Turning now to the first of our financial pillars, the fleet. As I mentioned before, we’re turning our fleet from a headwind to a tailwind for the business through our ability to buy right, hold right, and sell right. Our transformative fleet rotation is well underway. And as of year-end 2024, over 60% of our fleet was comprised of vehicles one year old or less. And we remain on track to substantially complete our fleet rotation by year-end 2025.

現在來談談我們的第一個財務支柱－艦隊。正如我之前提到的，我們透過正確購買、正確持有和正確銷售的能力，將我們的機隊從業務的逆風轉變為順風。我們的轉型船隊輪換正在順利進行中。截至 2024 年底，我們車隊中 60% 以上的車輛均為車齡一年或以下的車輛。我們仍有望在 2025 年底前基本完成船隊輪換。

In terms of our buy right strategy, our risk vehicles, that is vehicles with residual value exposure, have an average cap cost almost 30% lower than our existing fleet of model year '22 through '24 car buys. Our fleet rotation will provide benefits to our customers, our cost structure, our balance sheet, and unlocks our ability to achieve sub $300 DPU.

就我們的正確購買策略而言，我們的風險車輛（即具有殘值風險的車輛）的平均上限成本比我們現有的 22 年至 24 年車型的汽車購買成本低近 30%。我們的機隊輪換將為我們的客戶、我們的成本結構、我們的資產負債表帶來好處，並釋放我們實現低於 300 美元 DPU 的能力。

In Q4, we aggressively aligned our fleet size to meet the seasonal demand patterns and sold 100,000 vehicles, up from just over 30,000 in Q4 '23. This is a significant effort by the team, given both the volume and timing of the sales. Because of this, we chose to leverage wholesale channels in addition to our more desirable retail channels to achieve our strategic goals.

在第四季度，我們積極調整車隊規模以滿足季節性需求模式，銷售了 10 萬輛汽車，高於 23 年第四季的 3 萬多輛。考慮到銷售量和時間，這是團隊的重大努力。因此，除了更理想的零售通路之外，我們選擇利用批發通路來實現我們的策略目標。

As one of the world's largest car dealers, we recognize the unique opportunity that Hertz car sales presents. Because of this, we are prioritizing making retail our primary car selling channel. We have several initiatives underway, including increasing awareness of the Hertz car sales brand and improving the digital and purchasing experiences so that customers can more easily discover and purchase the car they want, whether online or anywhere across Hertz' expansive footprint.

作為世界上最大的汽車經銷商之一，我們認識到赫茲汽車銷售所提供的獨特機會。因此，我們優先將零售作為我們的主要汽車銷售管道。我們正在進行多項舉措，包括提高赫茲汽車銷售品牌的知名度，改善數位和購買體驗，以便客戶能夠更輕鬆地發現和購買他們想要的汽車，無論是在網上還是在赫茲廣泛的業務範圍內的任何地方。

In parallel, we continue to grow our retail sales channels through strategic partnerships. In 2024, Hertz serviced 154 million transaction days. Our year-over-year utilization improved 270 basis points when comparing Q4 to Q3, despite the seasonally adjusted demand in the industry largely being similar between the quarters.

同時，我們繼續透過策略合作夥伴關係擴大我們的零售銷售管道。2024年，赫茲服務的交易日數達1.54億天。儘管經季節性調整後的行業需求在兩個季度間大致相似，但與第三季度相比，第四季度我們的同比利用率提高了 270 個基點。

Through our operational improvements in our fleet management and our effort to sweat the assets, we remain focused on eliminating unproductive vehicles to generate higher utilization. We are working towards turning our vehicles more productively and shortening our vehicle turnaround time from drop off to rental, reducing vehicle out of service and shortening our vehicle sales cycle times, which drive out waste by leveraging process and technology.

透過改善車隊管理並努力充分利用資產，我們將繼續致力於淘汰效率低下的車輛，以提高利用率。我們正在努力提高車輛的生產力，縮短從還車到租賃的車輛週轉時間，減少車輛停運，縮短車輛銷售週期，透過流程和技術減少浪費。

Our partnerships with Palantir and Goldratt Group are enabling us to harness our data through redesigned processes to more efficiently operate our fleet. It is worth noting that we have completed the 30,000 EV fleet reduction announced just last year. Moving forward, we recognize the strategic value of EVs in the markets with established product market fit and infrastructure, particularly in our rideshare business where drivers receive advantageous partner incentives for choosing EVs over traditional ICE vehicles. I'm also encouraged by the progress our team is making both on revenue and cost, which Sandeep and Scott will discuss in detail.

我們與 Palantir 和 Goldratt Group 的合作使我們能夠透過重新設計的流程利用數據來更有效率地營運我們的車隊。值得注意的是，我們剛剛在去年宣布完成了減少3萬輛電動車的目標。展望未來，我們認識到電動車在具有成熟產品市場契合度和基礎設施的市場中的戰略價值，特別是在我們的共享乘車業務中，司機如果選擇電動車而非傳統內燃機汽車，將獲得有利的合作夥伴激勵。我們的團隊在收入和成本方面取得的進展也令我感到鼓舞，Sandeep 和 Scott 將詳細討論這一點。

Finally, I'd like to turn to our customers. We know that to truly earn customer loyalty, we must build trust and confidence in our service. In 2024, we directly confronted the issues that drive customer satisfaction by addressing key pain points, providing newer, well-maintained vehicles that customers want to drive, creating seamless digital experiences, better enabling self-service, reducing line waits at counters, delivering best-in-class customer service experience, and ensuring effective problem resolution.

最後，我想向我們的客戶致謝。我們知道，要真正贏得客戶忠誠度，我們必須建立對我們服務的信任和信心。2024年，我們直面推動客戶滿意度的問題，解決關鍵痛點，提供客戶想要駕駛的更新、保養良好的車輛，創造無縫的數位體驗，更好地實現自助服務，減少櫃檯排隊等待，提供一流的客戶服務體驗，並確保有效解決問題。

By putting ourselves on the other side of the counter and in our customers' shoes, we've seen strong gains in our Net Promoter Scores, both in our core customer experience and in our customer service recovery. Our passion for a better experience will not stop here. We're committed to making 2025 a breakout year for our customer.

透過站在櫃檯的另一邊、從客戶的角度考慮問題，我們的淨推薦值 (Net Promoter Score) 得到了大幅提升，無論是在核心客戶體驗方面，還是在客戶服務恢復方面。我們對更好體驗的熱情不會就此止步。我們致力於讓 2025 年成為客戶突破的一年。

Having successfully launched our back-to-basics roadmap in 2024, our focus for 2025 is clear: excellence in execution. With strong execution of our strategy, we are confident we can strengthen the core business, unlock new areas of value creation, and restore Hertz back to its full potential. There's no doubt it will take hard work to make our strategic goals a reality. But I know we've got the right team and plans in place to do it.

我們在 2024 年成功啟動了回歸基礎的路線圖，2025 年的重點很明確：卓越的執行。透過強而有力的執行我們的策略，我們有信心可以加強核心業務，開拓新的價值創造領域，並恢復赫茲的全部潛力。毫無疑問，要實現我們的策略目標還需要艱苦的努力。但我知道我們有合適的團隊和計劃來完成這項任務。

With that, I'll turn it over to Sandeep.

說完這些，我會把話題交給 Sandeep。

Thanks, Gil, and good morning, everyone. First, let me thank the entire Hertz team for their hard work. Their focus on our customers and commitment to our success continue to make our company stronger.

謝謝，吉爾，大家早安。首先，我要感謝赫茲整個團隊的辛勤工作。他們對客戶的關注以及對我們成功的承諾使我們的公司不斷變得更加強大。

On our last call, I commented on our newly formed commercial team and gave you some insight into our strategy: better utilization of our fleet, delivering an unmatched customer experience, and driving a better RPD mix through improved ability to generate, convert, and monetize demand.

在我們上次電話會議中，我對我們新成立的商業團隊進行了評論，並向您介紹了我們的策略：更好地利用我們的車隊，提供無與倫比的客戶體驗，並透過提高產生、轉換和貨幣化需求的能力來推動更好的 RPD 組合。

Back then, we had just started on our journey by identifying areas for improvement. Since then, my team has been intensely focused on executing our strategy. We are starting to see the impact of those efforts. Let me start with our key commercial objective, maximizing RPU.

那時，我們才剛開始我們的旅程，確定需要改進的地方。從那時起，我的團隊一直專注於執行我們的策略。我們開始看到這些努力的影響。讓我先從我們的主要商業目標開始，最大化 RPU。

We have systematically delivered year-over-year RPU improvements for each quarter sequentially from Q1, where it was down 7%, to Q4 where it was down 1%, including a 150-basis-point improvement between Q3 and Q4. Just as encouraging is that we saw intra-quarter sequential year-over-year improvement from October to December. The key drivers were becoming better at capacity management relative to demand, improved demand generation, and improved segment management, which resulted in a greater mix of high RPD segments.

我們系統性地實現了每個季度的 RPU 年成長，從第一季的下降 7% 到第四季的下降 1%，其中第三季和第四季之間提高了 150 個基點。同樣令人鼓舞的是，我們看到 10 月至 12 月的季度內同比連續改善。關鍵驅動因素包括相對於需求的容量管理變得更好、需求產生改善以及細分市場管理改善，從而帶來了高 RPD 細分市場的組合更加多樣化。

When it comes to fleeting under the demand curve, I had mentioned in the Q3 earnings call that we are working on process improvements between the fleet team and commercial team to refine our ability to fleet under the demand curve. Our stated goal is to sweat our assets while staying inside the demand curve. Well, a nimbler and more coordinated process between those two teams is delivering better results.

當談到需求曲線下的車隊時，我在第三季財報電話會議上提到，我們正在致力於車隊團隊和商業團隊之間的流程改進，以提高我們在需求曲線下的車隊能力。我們既定的目標是充分利用我們的資產，同時保持在需求曲線之內。嗯，這兩個團隊之間更靈活、更協調的過程正在帶來更好的結果。

Our average fleet size was down 4% in Q4 year over year and even better. That same metric for December was down 6% year over year. We ended the year with a fleet size that was 7% below the start of 2024 and more in line with demand. What is exciting to me is that we see further scope for process improvement between the fleet and commercial team, and we are actively working on those to deliver results in 2025.

我們第四季的平均機隊規模年減 4%，甚至更好。12 月的相同指標較去年同期下降了 6%。截至年底，我們的船隊規模比 2024 年初下降了 7%，並且更加符合需求。令我興奮的是，我們看到了機隊和商業團隊之間流程改善的進一步空間，我們正在積極努力，以在 2025 年取得成果。

As Gil noted, we are seeing strong year-over-year utilization improvement quarter over quarter. We have a rich set of opportunities that we are actively working on, positioning us to be excited about 2025.

正如吉爾所說，我們看到利用率逐年呈現逐季強勁提升趨勢。我們擁有豐富的機遇，我們正在積極努力，為 2025 年做好準備。

Turning to our commitment to delivering an unmatched customer experience, we firmly believe that customer satisfaction is the cornerstone of driving durable demand and fostering loyalty. We are moving with focus and speed.

談到我們對提供無與倫比的客戶體驗的承諾，我們堅信客戶滿意度是推動持久需求和培養忠誠度的基石。我們正集中精力、快速行動。

A quick little example of the same. In August 2024 as part of commercial team's management operating system, we prioritized service recovery of customer issues. In just five months, through our focus and drive, leveraging people, process and technology, our service recovery scores have improved 60 points and we have only just started on this journey.

這是一個簡單的小例子。2024年8月，作為商業團隊管理作業系統的一部分，我們優先考慮客戶問題的服務恢復。在短短的五個月內，透過我們的專注和動力，利用人員、流程和技術，我們的服務恢復分數提高了 60 分，而我們才剛開始這段旅程。

Our RPD mix initiatives are also beginning to show promise. We have seen year-over-year growth and a positive trajectory in bookings on hertz.com from Q2 through Q4. These are relatively higher RPD bookings. We are becoming more effective in our demand generation strategies, leveraging technology and the rapid test-and-learn culture that I detailed in a prior earnings call. In addition, our quest for driving greater durable demand is starting to show progress. Case in point, in Q4, loyalty enrollments grew 18% year over year.

我們的 RPD 混合計畫也開始展現出前景。從第二季度到第四季度，我們看到 Hertz.com 上的預訂量同比增長並且呈現積極的趨勢。這些是相對較高的 RPD 預訂。我們的需求產生策略變得更加有效，利用技術和快速測試與學習的文化，我在先前的財報電話會議上詳細介紹過。此外，我們推動更大耐用品需求的努力已開始取得進展。例如，第四季度，忠誠度註冊人數較去年同期成長了 18%。

We also continue to focus on exiting low-yielding, nondurable business and enhancing our revenue management tools. Additionally, we are focused on leveraging dynamic pricing for value-added services, which we believe will also add to improving RPU.

我們也將繼續致力於退出低收益、非耐用品業務並增強我們的收入管理工具。此外，我們專注於利用動態定價來提供加值服務，我們相信這也有助於提高 RPU。

In summary, when I look back at 2024, I'm grateful to the Hertz teams in delivering improvements in our commercial results. Coming into 2025, travel demand continues to be robust. Demand looked really strong for MLK and reservations for the upcoming Presidents' Day weekend are looking good, too.

總而言之，當我回顧 2024 年時，我很感謝赫茲團隊為我們的商業表現帶來的改進。進入2025年，旅遊需求持續強勁。MLK 的需求看起來非常強勁，即將到來的總統日週末的預訂情況也看起來不錯。

The commercial team is energized with the plethora of strategies we are actively working on. We are focused on leveraging our management operating system across the team. Every team member has clear goals and a prioritized list of high-impact initiatives being actively worked on to deliver transformation in 2025 and beyond. While we are in the early stages of our commercial strategy, we are building momentum, and my confidence remains high that our commercial strategies will yield results that drive us towards our north star target of RPU above $1,500.

我們積極實施的大量策略讓商業團隊充滿活力。我們專注於在整個團隊中利用我們的管理作業系統。每個團隊成員都有明確的目標和一份優先考慮的高影響力舉措清單，並積極致力於在 2025 年及以後實現轉型。雖然我們的商業策略尚處於早期階段，但我們正在積聚力量，我仍然充滿信心，我們的商業策略將產生成果，推動我們實現 RPU 超過 1,500 美元的北極星目標。

And on that note, I'll turn it over to Scott.

關於這一點，我會把話題交給史考特。

Thanks, Sandeep. Before I get into the results, I want to give a huge shoutout to the entire Hertz team for their dedication to our customers and commitment to continuing to drive our transformation. 2024 was a year of transition, and our team was nimble and did a great job pivoting to meet the needs of the business while continuing to serve our customers. So a huge thanks to them.

謝謝，桑迪普。在談論結果之前，我想先向整個赫茲團隊致以誠摯的謝意，感謝他們對客戶的奉獻以及繼續推動我們轉型的承諾。 2024 年是轉型的一年，我們的團隊行動敏捷，在繼續為客戶提供服務的同時，出色地滿足了業務需求。非常感謝他們。

Turning to our financial performance for Q4, revenue for the quarter was just over $2 billion and our adjusted EBITDA was a loss of $357 million. Revenue was about 7% lower year over year, largely driven by a decrease in volume. We remained disciplined on capacity and continued driving utilization. In fact, fleet utilization was higher year over year for the first time in 2024 as we continue to execute on process efficiencies in the business.

談到我們第四季的財務業績，本季的營收略高於 20 億美元，調整後的 EBITDA 虧損 3.57 億美元。營收年減約 7％，主要原因是銷量下降。我們嚴格控制產能並持續提高利用率。事實上，隨著我們持續提高業務流程效率，2024 年車隊利用率首次較去年同期成長。

We made additional progress in the quarter on our fleet rotation and sold over 100,000 vehicles. We guided to a DPU of $350 to $375, and our gross depreciation came in slightly better than that at $347. However, MMR values dropped below forecasted levels and caused a book value loss on sale for those vehicles sold in the fourth quarter driving our net DPU number above the top end of the range. It was a risk of selling in the fourth quarter, which is a seasonally softer period, but it was the right thing to do to push forward and not carry the additional vehicles into 2025.

本季度，我們在車隊輪換方面取得了進一步的進展，銷售了超過 100,000 輛汽車。我們預計 DPU 為 350 美元至 375 美元，而我們的總折舊略好於此，為 347 美元。然而，MMR 值跌破預測水平，導致第四季度售出的車輛出現帳面價值損失，導致我們的淨 DPU 數字高於範圍的最高端。在第四季度出售存在風險，因為第四季度是季節性疲軟期，但繼續推進銷售而不是將新增車輛帶入 2025 年是正確的做法。

Overall, Q4 depreciation was clouded by the sale of vehicles, and it is likely this will continue into Q1 a bit as we continue to accelerate our fleet rotation. Given this, we expect DPU for the first quarter to be slightly below the fourth quarter of 2025. However, this should decline after Q1 for a few reasons.

總體而言，第四季的折舊受到汽車銷售的影響，而且隨著我們繼續加快車隊輪換，這種情況很可能會持續到第一季。有鑑於此，我們預計第一季的 DPU 將略低於 2025 年第四季。然而，由於一些原因，這一數字在第一季之後應該會下降。

One, gross depreciation continues to decline from newer model year car purchases. Two, we have less of the higher cap cost cars to sell. Three, we are further along optimizing our retail sales channels. And four, we will be selling into a seasonally stronger sales period. We still expect to exit the year at our target of below $300 a month per unit.

首先，新車型的購買總折舊額持續下降。二是我們出售的高價位汽車較少。三是進一步優化零售通路。第四，我們將在季節性銷售旺季進行銷售。我們仍然預計今年年底我們的目標價格為每台每月低於 300 美元。

Regarding operating expenses, our operational execution in our core cost components of the business, such as labor, maintenance, collision, and supply chain are all working in our favor as those costs are lower year over year. In fact, in the fourth quarter, our core operating DOE per day is down slightly year over year even with lower days production. Also, we expect these trends to continue into 2025.

至於營運費用，我們在業務核心成本組成部分（如勞動力、維護、碰撞和供應鏈）的營運執行都對我們有利，因為這些成本逐年降低。事實上，在第四季度，即使日產量較低，我們的核心營運能源消耗量（DOE）仍比去年同期略有下降。此外，我們預計這些趨勢將持續到 2025 年。

In addition to good cost control, as Sandeep mentioned, we'll continue to drive utilization through process efficiency. As I have said many times, good unit cost management starts with an efficient production of units, and we'll continue to drive that.

除了良好的成本控制之外，正如 Sandeep 所提到的，我們還將繼續透過流程效率來提高利用率。正如我多次說過的，良好的單位成本管理始於高效率的單位生產，我們將繼續推動這一點。

However, with all of that said, we had a couple of outsized headwinds that obscured the progress we have made on the operating side. As in prior periods, insurance continues to be a headwind. Initiatives we discussed on prior calls started to take effect in January. So we expect some benefits to start to materialize, but it will take until the latter part of the year to make a significant impact.

然而，儘管如此，我們仍面臨著一些巨大的阻力，掩蓋了我們在營運方面取得的進展。與前期一樣，保險業持續面臨阻力。我們在先前的電話會議中討論的舉措已於一月份開始生效。因此，我們預計一些好處將開始實現，但要到今年下半年才能產生重大影響。

We took a sizable increase in our insurance reserve in Q4 that pushed DOE higher than our usual run rate. We anticipate that this will allow us to now maintain a more reasonable run rate going forward.

我們在第四季度大幅增加了保險準備金，這使得 DOE 的運作率高於通常的水平。我們預計這將使我們今後保持更合理的運行率。

Second, a consequence of the impairment we recognized in the third quarter is a change in how we are required to account for lease expenses, primarily airport leases. The right-of-use asset was impaired but the post-impairment lease liability did not change. The accounting results in an expense that is no longer straight lined, but now results in a downward sloping expense through the end of the lease, meaning we expense more immediately after the impairment, but that expense gradually declines over time. So we will be taking a higher noncash increase in expense today but will benefit from a lower expense in the outer years, probably starting in 2027.

其次，我們在第三季確認的減損導致了我們對租賃費用（主要是機場租賃）的會計方式發生了變化。使用權資產發生減損，但減損後的租賃負債沒有變動。會計處理的結果不再是直線型的費用，而是在租賃期結束時呈向下傾斜的費用，這意味著我們在減值後立即產生更多的費用，但隨著時間的推移，該費用會逐漸下降。因此，我們今天將承擔更高的非現金支出增加，但將受益於未來幾年（可能從 2027 年開始）的較低支出。

These items should start self-correcting themselves as we head through the year. All in all, we've made good progress on the core cost components, and we're controlling what we can control. But there are some items that conceal the real progress being made to our core operating costs. Despite all of this, we expect our DOE plus SG&A unit costs to be flat to down year over year in 2025, even with a smaller fleet.

隨著一年的過去，這些事項應該會開始自我修正。總而言之，我們在核心成本組成部分方面取得了良好的進展，我們正在控制我們能夠控制的部分。但有些項目掩蓋了我們核心營運成本的真正進展。儘管如此，我們預計，到 2025 年，即使機隊規模較小，我們的 DOE 加 SG&A 單位成本仍將同比持平或下降。

Further for 2025, let me give you a little color on EBITDA for the year. We do expect to have a seasonal EBITDA loss in the first quarter at a smaller quarter over quarter but exaggerated by inflated depreciation associated with the remaining loss on sale from older vehicles. For the remainder of the year, we expect the second quarter to be roughly breakeven, a sizable EBITDA profit in the third quarter and a small profit in the fourth quarter. This all equates to a low single-digit EBITDA margin for the year.

此外，對於 2025 年，讓我為您介紹該年度的 EBITDA。我們確實預計第一季的季節性 EBITDA 虧損將比上一季度減少，但由於舊款車輛銷售剩餘損失導致的折舊膨脹而導致的虧損擴大。今年剩餘時間的表現，我們預計第二季將大致實現收支平衡，第三季將實現可觀的 EBITDA 利潤，第四季將實現小幅獲利。這一切意味著今年的 EBITDA 利潤率將低個位數。

In terms of liquidity, our position is strong at $1.8 billion at the end of 2024. In Q4, we completed a capital raise to enhance our liquidity and support our operational and strategic plans. We raised $500 million through the issuance of additional first-lien senior secured notes due in 2029. We also received the requisite consents to amend certain provisions of the indentures governing our first-lien senior secured notes due in 2029 and exchangeable senior second-lien PIK notes also due in 2029. This was a positive development for our capital structure and provides us with additional financial flexibility.

在流動性方面，我們的地位強勁，到 2024 年底將達到 18 億美元。在第四季度，我們完成了融資，以增強我們的流動性並支持我們的營運和策略計劃。我們透過發行 2029 年到期的額外優先留置權優先擔保票據籌集了 5 億美元。我們也獲得了必要的同意，可以修改管理 2029 年到期的一級留置權優先擔保票據以及同樣於 2029 年到期的可交換二級留置權 PIK 票據的契約的某些條款。這對我們的資本結構來說是一個積極的發展，並為我們提供了額外的財務靈活性。

Looking ahead, we have upcoming debt maturities that we are actively planning to address and we are confident in our ability to manage these maturities. As we have mentioned previously, we still expect our low point of liquidity to be around the middle part of the year. We don't expect to start building cash until the third quarter and we'll use cash in our fleet rotation until the -- during the first and second quarter of this year. We also have pending litigation that has an undefined timing of resolution and outcome. We have, however, begun discussions aimed at resolving this matter.

展望未來，我們有即將到期的債務，我們正在積極計劃解決，並且我們有信心有能力管理這些到期債務。正如我們之前提到的，我們仍然預計流動性的低點將在今年中期左右。我們預計要到第三季才會開始累積現金，並將在今年第一季和第二季期間在我們的船隊輪換中使用現金。我們還有一些未決訴訟，其解決時間和結果尚不確定。然而，我們已經開始討論以解決這個問題。

Regarding our main ABS program, our equity cushion continued to build another couple of percentage points in the facility, primarily driven by our investment in newer vehicles. Assuming residual values remain stable and as we continue rotating out of older cars, we expect this trend to continue.

關於我們的主要 ABS 計劃，我們的股本緩衝在該設施中繼續增加幾個百分點，這主要得益於我們對較新車輛的投資。假設殘值保持穩定，並且隨著我們繼續淘汰舊車，我們預計這種趨勢將會持續下去。

In terms of future guidance, since the cleanup from 2024 isn't completely done yet, it makes it difficult for us to accurately guide to more specific financial targets for the next quarter. The directional guidance given thus far is what we are prepared to give today, but it's a start, and we'll look to refine our guidance metrics over time.

就未來指引而言，由於 2024 年的清理工作尚未完全完成，因此我們很難準確地指導下一季更具體的財務目標。迄今為止給出的方向性指導是我們今天準備給出的，但這是一個開始，我們將隨著時間的推移不斷完善我們的指導指標。

Before I hand it back to Gil, I want to reflect a minute on 2024. When I look back on my six months in 2024, I see the groundwork being laid for progress but also recognize that the hole was large. We have been intensely focused on getting the business on solid footing and setting ourselves up for future success.

在我將其交還給吉爾之前，我想稍微回顧一下 2024 年。當我回顧 2024 年的六個月時，我看到了為進步奠定的基礎，但也意識到漏洞很大。我們一直高度重視讓業務打下穩固的基礎並為未來的成功做好準備。

We knew the cleanup in 2024 would make things complicated from the fleet rotation to operational improvements, a number of leadership changes, and even an asset impairment and the resulting accounting complexities. We executed on liquidity initiatives to enhance our ability to rotate the fleet, drove sizable improvements in our customer experience and NPS scores that will continue to move north, launched detailed management operating systems that will be the backbone of our future execution, and now turning our attention to 2025.

我們知道，2024 年的清理工作將使事情變得複雜，從船隊輪換到營運改善、一系列領導層變動，甚至資產減損以及由此產生的會計複雜性。我們執行了流動性計劃，以增強我們輪換車隊的能力，推動了我們的客戶體驗和 NPS 分數的大幅改善，並將繼續向北發展，推出了詳細的管理操作系統，這將成為我們未來執行的支柱，現在我們將注意力轉向 2025 年。

The platform is taking shape. And by this time next year, I plan to be talking about how the business is now positioned for success as we get closer to a run rate level of financial production and focusing on positioning Hertz for the next decade and beyond.

平台已初具規模。到明年這個時候，我計劃談論隨著我們越來越接近財務生產的運行率水平，現在的業務如何定位成功，並專注於為赫茲未來十年及以後的發展定位。

With that, I'll hand it back to Gil for his closing comments.

說完這些，我會把話題交還給吉爾，請他作最後評論。

Thanks, Scott. I want to close by reaffirming what makes us so excited for Hertz’ future. As a global business with an iconic brand and a vast customer base, Hertz has the infrastructure, scale, and expertise to lead the industry once again in fleet asset management, operational excellence, and delivering an unmatched customer experience. With our world-class team, I am confident we've laid the groundwork to not only reach our North Star metrics but once again lead in the mobility space.

謝謝，斯科特。最後，我想重申一下讓我們對赫茲的未來如此興奮的原因。作為一家擁有標誌性品牌和龐大客戶群的全球性企業，赫茲擁有基礎設施、規模和專業知識，能夠在車隊資產管理、卓越營運和提供無與倫比的客戶體驗方面再次引領產業。我相信，憑藉我們世界級的團隊，我們不僅能夠達到我們的北極星指標，而且還能再次在行動領域處於領先地位，從而奠定了基礎。

With that, let's open it up for questions.

現在，讓我們開始提問吧。

(Operator Instructions) John Babcock, Bank of America.

（操作員指示）美國銀行的約翰·巴布科克。

You did talk about the fleet refresh and also about some of the operational changes you've made. Could you just give us some sense as to what metrics you'd guide us to on a go-forward basis to gauge Hertz's progress on the operational front?

您確實談到了機隊更新以及您所做的一些營運變革。您能否告訴我們，您將指導我們用什麼指標來衡量赫茲在營運方面的進展？

Well, I mean, I'll start and Scott can chime in. But I think on the operational front, in particular, the fleet rotation, our North Star metric there is achieving a DPU of less than $300. So a couple of comments around that probably. I mean, we were early to recognize the need for an improved fleet strategy, and we've been aggressively actioning it, as you know, making the necessary investments in that. The fleet strategy really unlocks our ability to get and sustain that sub $300 DPU.

嗯，我的意思是，我先開始，斯科特可以加入討論。但我認為在營運方面，特別是機隊輪換方面，我們的北極星指標實現了低於 300 美元的 DPU。因此大概有幾則評論圍繞著這一點。我的意思是，我們很早就認識到改進機隊策略的必要性，而且我們一直在積極採取行動，如你所知，在這方面進行必要的投資。車隊策略確實釋放了我們獲得並維持低於 300 美元 DPU 的能力。

We've got the committed model year '25 buys locked in at the economics that fit to that metric, and we've made the large investment in the fleet rotation, which is well underway. And of course, we'll make even further progress as those model year buys continue to deliver in the first half of the year.

我們已經鎖定了符合該指標的經濟型 25 款車型的承諾購買量，並且對車隊輪換進行了大量投資，目前這項工作正在順利進行中。當然，隨著這些車型的購買在上半年繼續交付，我們將取得更大的進步。

So the other aspect of that really is our -- how we -- when we choose to sell the vehicles, right? We're more optimized the timing around that effectively shorten our holds, but then the channels we sell them through as well. So as I mentioned, driving those retail channels up are important. We've got right now less than 10% of our car sales run through auctions. And so we're confident we can achieve that DPU target.

所以另一個方面實際上是我們——我們如何——選擇出售車輛，對嗎？我們對時間進行了進一步優化，從而有效地縮短了持有時間，同時也優化了銷售管道。正如我所提到的，推動這些零售通路的發展非常重要。目前，我們的汽車銷售額中只有不到 10% 是透過拍賣實現的。因此我們有信心能夠實現 DPU 目標。

Yeah. John, I'd probably add maybe one or two more here. Obviously, utilization is a bedrock of both driving RPU as well as cost efficiency in the business. So utilization is a critical metric that we're looking forward to. But also I would add to Sandeep's comments earlier around NPS. We know there's a strong correlation between being able to price and create demand in NPS. So that's a critical platform. So I think those two addition to what Gil said is what's driving our day.

是的。約翰，我可能還會在這裡加一兩條。顯然，利用率是推動 RPU 以及業務成本效率的基石。因此，利用率是我們期待的關鍵指標。但我還要補充 Sandeep 之前關於 NPS 的評論。我們知道，定價能力和 NPS 創造需求之間存在著強烈的相關性。所以這是一個關鍵的平台。所以我認為吉爾所說的這兩點正是我們生活的動力。

Thanks. And actually, just quickly on the DPU front. How should we think about net DPU going through the year? So I mean, it sounds like you're targeting a little bit less in the 4Q level in the first quarter. And then some improvement. But as we get to the end of the year, that $300, is that more of a gross number? Or is that a net number? Or should those two converge?

謝謝。實際上，只是在 DPU 方面很快。我們該如何看待全年的淨 DPU 呢？所以我的意思是，聽起來你在第一季的第四季的目標稍微低了一點。然後有一些改進。但到了年底，這 300 美元還是一個總數嗎？或者說這是淨數字？或者說這兩者應該要融合？

Yeah. Thanks, John. What we've talked about is the net DPU number. We had an inflated net DPU in Q4. And like I said in my prepared remarks, we'll have an inflated number in Q1, and that will work down through the year. We still think we're going to exit the year at sub $300 on a net DPU basis. So that's the guide slope.

是的。謝謝，約翰。我們討論的是淨 DPU 數字。我們第四季的淨 DPU 過高。正如我在準備好的發言中所說的那樣，我們在第一季會有一個虛高的數字，而這種虛高會持續到全年。我們仍然認為，以淨 DPU 計算，今年的業績將低於 300 美元。這就是引導斜率。

Okay, thank you. And then just last question, if you don't mind. It sounds like the fleet size ended the year about down 7%. How do you see the fleet size trending from here? And then also does this mean you end up -- you might end up seeing demand beyond the business you're intentionally giving up associated with the focus on the premium business?

好的，謝謝。如果您不介意的話，我還有最後一個問題。聽起來，年底的船隊規模下降了約 7%。您認為今後船隊規模的發展趨勢如何？那麼這是否意味著你最終會看到除了你有意放棄的與專注於高端業務相關的業務之外的需求？

Yeah. So John, this is Sandeep here. I think overall, our plan is to continue to sweat our assets, right, and drive higher Ute through improved demand capture, reducing out of service and reducing the sales cycle time, right? So as we run that playbook, I do expect us to have a smaller fleet to capture a given demand, right?

是的。約翰，這是桑迪普。我認為總的來說，我們的計劃是繼續努力提高我們的資產，對吧，並透過改善需求捕獲、減少服務中斷和縮短銷售週期來提高 Ute 的價格，對吧？因此，當我們運行該劇本時，我確實希望我們擁有較小的船隊來滿足特定的需求，對嗎？

Also, you have to keep in mind that we were a bit over-fleeted in Q1 of 2024. So if you factor both of those, we do expect to have a smaller fleet in Q1. And that also goes towards our key commercial objective of maximizing our RPU, right, on our way to a north star metric of RPU about $1,500.

另外，您必須記住，我們在 2024 年第一季的車隊有點過於擁擠。因此，如果將這兩點考慮在內，我們預計第一季的船隊規模將會較小。這也符合我們最大化 RPU 的關鍵商業目標，對吧，我們正在朝著 RPU 的北極星指標邁進，約 1,500 美元。

That being said, the way we accomplish all of this is basically ensuring that we're going after durable demand. That's incredibly important of a concept that we have dialed in within the commercial team, right? So we talked a little bit about the improvement in bookings and reservations to hertz.com. That's very durable demand. We talked a bit about the 18% improvement in loyalty enrollments in Q4 year over year. And that's again, durable demand.

話雖如此，我們實現所有這些目標的方式基本上就是確保我們追求持久需求。這是我們在商業團隊中提出的重要概念，對嗎？我們稍微談論了一下hertz.com的預訂和預約的改善情況。這是非常持久的需求。我們談到了第四季度忠誠會員數量年增 18% 的情況。這再次是持久需求。

So we are going after premium high RPD segments. We are going after our customers that keep choosing our brands because they love the experience that we deliver. So that's the playbook. We'll keep on following and keep on improving our unit economics, which is basically our focus.

因此，我們追求的是優質的高 RPD 細分市場。我們追求的是那些不斷選擇我們品牌的客戶，因為他們喜歡我們所提供的體驗。這就是劇本。我們將繼續關注並不斷提高我們的單位經濟學，這基本上是我們的重點。

Chris Woronka, Deutsche Bank.

德意志銀行的克里斯‧沃倫卡 (Chris Woronka)。

Appreciate the EBITDA cadence and the margin commentary you just provided for '25. So the question is, as we look a little further out, is there a medium- or long-term margin at which you think the company should operate at? If you get DPU down to $300 or less by year-end, you get OpEx optimized. I think you've mentioned low 30s per transaction day. Is there any kind of round or rough figure we can think about on a just a go-forward basis after '25? I'm not really asking for a specific year, just a normalized margin the way you might think about it.

感謝您剛剛提供的 EBITDA 節奏和’25 年利潤率評論。所以問題是，當我們把眼光放長遠一點時，您認為公司應該保持一個中期或長期的利潤率嗎？如果 DPU 在年底時降至 300 美元或更低，則您的 OpEx 已最佳化。我記得你提到每筆交易日低於 30 美元。我們能否在 25 年後考慮一個大致的數字？我實際上並不是要求特定的年份，而只是要求您可能想到的標準差。

Yeah, Chris, this is Scott. I'll start and Gil probably want to chime in, too. But I think you could use the basis of our north star metrics to get there. I mean, it's the 1,500 RPU, DOE in the low 30s and DOE in the low 30s, DPU at sub-$300. Those will sort of give you our sort of targets for EBITDA production. Again, this business is obviously volatile and depends on demand and residual values and those things. So it's really hard to predict and create sort of a floor of EBITDA.

是的，克里斯，這是史考特。我先開始，吉爾可能也想加入。但我認為您可以使用我們的北極星指標的基礎來實現這一目標。我的意思是，RPU 為 1,500，DOE 在 30 美元出頭，DOE 在 30 美元出頭，DPU 在 300 美元以下。這些將會為您提供我們的 EBITDA 生產目標。再說一遍，這項業務顯然是不穩定的，並且取決於需求和剩餘價值等因素。因此，預測並設定 EBITDA 的底線確實非常困難。

But those are our targets, and we think they're achievable. So I would just guide you to do the math on those and kind of see where that may end up.

但這些是我們的目標，我們認為這些是可以實現的。因此，我只是指導你對這些進行計算，看看最終結果會如何。

Yeah, I'd just echo that. And then, I mean, that's kind of the core business. There's certainly -- as we move forward, we want to get those unit economics dialed in, but there's additional growth opportunities for us, clearly, in the mobility space in general as well as car sales through the retail channels.

是的，我只是想重複。那麼，我的意思是，這就是核心業務。當然有——隨著我們不斷前進，我們希望實現單位經濟效益，但顯然，我們在整個行動領域以及透過零售通路的汽車銷售中還存在額外的成長機會。

Okay, fair enough. Thanks for that. And then as a follow-up, if you're continuing to optimize the business that you do take with a smaller fleet, can you maybe give us a little bit of color on which businesses you're -- or which segments you're maybe deemphasizing whether that's airport, off-airport, whether it's the Dollar, Thrifty brands, whether it's corporate versus leisure, so -- something else, just to try to frame it where we can see the revenue growth come from segment-wise? Thanks.

好吧，夠公平。謝謝。然後作為後續問題，如果您繼續優化透過較小機隊開展的業務，您能否向我們介紹一下您正在開展哪些業務，或者您可能弱化哪些細分市場，無論是機場業務還是機場外業務，無論是 Dollar 品牌還是 Thrifty 品牌，無論是商務業務還是休閒業務，等等，只是為了嘗試將其框定為我們可以看到收入增長來自哪些細分市場？謝謝。

Yeah, Chris, this is Sandeep here. No, it's less about airports versus off airport. It's more about certain segments that are just like -- I'm going to use the term pretty low RPD in general and ones where the customer is not choosing a brand but going based on price. A lot of that is domestic opaque packages. That's one I would qualify in there, segments like that.

是的，克里斯，我是桑迪普。不，這與機場與機場外的關係不大。這更多的是關於某些特定的細分市場——我將一般性地使用“相當低的 RPD”這個術語，在這些細分市場中，客戶不是選擇品牌，而是基於價格進行選擇。其中很多都是國內不透明包裝。這就是我能歸類到其中的一個部分，就像那樣。

And then there are also certain other segments where -- across the board where we have done an exercise of looking at our lowest RPD contribution within each one of the segments and basically culled some of that business across the board as well because it wasn't a contribution margin that we were happy with.

然後，還有一些其他細分市場，我們全面審查了每個細分市場中 RPD 貢獻最低的細分市場，並且基本上全面剔除了部分業務，因為這不是我們滿意的貢獻利潤率。

Dan Levy, Barclays.

巴克萊銀行的丹‧利維 (Dan Levy)。

I wanted to go back to the DPU. And maybe you could just give us a sense versus when you last spoke and you were guiding us to $3.50, $3.75 for the quarter. You said there was losses on sale. Maybe what specifically materialized that was below your expectations?

我想回到DPU。也許您可以給我們介紹一下與您上次演講時相比的情況，當時您預計本季的業績為 3.50 美元到 3.75 美元。你說銷售有損失。也許具體發生的事情低於您的預期？

And I would ask as a follow-up. With one of your competitors now engaging on an aggressive sort of rotation of their fleet and potentially another one of your competitors doing so, how does that then impact the remaining rotation of your fleet?

我會進一步詢問。現在，您的一個競爭對手正在積極輪換其船隊，而您的另一個競爭對手也有可能這樣做，這會對您剩餘的船隊輪換產生什麼影響？

Yeah, I'll start and Scott can maybe add some color. He added some color in there on the loss of sales. Some of that on the fourth quarter is just the volume and timing aspects of the sale, coupled with rotating out the older vehicles, right? So a large portion of this and what we saw throughout almost all of '24 was some of the noise in depreciation as we're selling off the older vehicles, rotating the fleet. And then on a go-forward basis, we're far better positioned because we've got a lower cap cost going in. We got a shorter hold period and we're selling through retail channels.

是的，我先開始，斯科特也許可以添加一些顏色。他對銷售損失做了一些說明。第四季的部分原因只是銷售的數量和時間方面，再加上舊款車輛的輪換，對嗎？因此，其中很大一部分以及我們在 24 年幾乎全部時間看到的都是由於我們出售舊車、輪換車隊而產生的折舊噪音。從長遠來看，我們處於更有利的位置，因為我們的資本成本更低。我們的持有期較短，而且我們透過零售通路進行銷售。

So all of that really helps us sustain that -- get to and sustain the sub-$300 DPU, but we've been doing cleanup work throughout all of the last year, and some of that will -- will continue to trickle through until we're through the fleet rotation, the heavy lift is done, but there's still some to do left.

因此，所有這些確實幫助我們維持這一點 - 達到並維持低於 300 美元的 DPU，但我們在去年全年都在做清理工作，其中一些工作將繼續進行，直到我們完成船隊輪換，重型工作完成，但仍有一些工作要做。

I think the -- in terms of kind of the supply side of the equation with vehicles, again, we've already made a big investment with a fleet rotation, right? I mentioned where 60% of our cars are less than a year old at this point or at the end of the year. So we'll continue to make progress.

我認為，就車輛的供應方面而言，我們已經對車隊輪換進行了大筆投資，對嗎？我提到過，截至目前或年底，我們 60% 的汽車使用時間不到一年。因此我們將繼續取得進步。

We've got effectively all our model year '25 buys locked in, and those will continue to deliver. The model year '26, we'll shortly start to look at those and negotiate those. But what I would say is we've been first to recognize we needed to change the fleet strategy. And we've been aggressively pursuing it, and we've been accelerating it wherever we could. As we mentioned on prior calls, we would look to do that, and we have.

我們實際上已經鎖定了 25 款車型的所有購買訂單，並且這些訂單將繼續交付。對於 26 年款的車型，我們很快就會開始關注和協商。但我想說的是，我們首先認識到我們需要改變船隊策略。我們一直在積極追求這一目標，並盡我們所能加速這一目標的實現。正如我們在之前的電話會議中提到的那樣，我們會考慮這樣做，而且我們已經這樣做了。

So we're positioned, I think, really well in terms of flexibility as you think about the dynamics going forward. So we have good fleet. We got -- the model year '25 is locked in. So as we think about the rotation, we've invested in the fleet, and that gives us flexibility. But then we think the model going forward certainly is sustainable.

因此，當你考慮未來的動態時，我認為我們在靈活性方面處於非常好的位置。所以我們有優秀的車隊。我們知道了 — — 25 年款已經確定了。因此，當我們考慮輪換時，我們已經對船隊進行了投資，這為我們提供了靈活性。但我們認為，未來的模式肯定是可持續的。

Hey, Dan, this is Scott. I'll add just a little bit of color there, too. I think some of the confusion might be a little bit on our side. We were looking at MMR values and probably missed the drop in the fourth quarter. And then that's on us. We think that going forward, we have a better grasp of sort of where MMR values will sit. We're actually seeing good trending as we went through the year -- sorry, entered the 2025 year and going forward, values are stabilizing. So we feel good about where that is and where the guidance sits today.

嘿，丹，我是史考特。我也會在那裡添加一點點顏色。我認為部分混亂可能與我們有關。我們正在關注 MMR 值，可能錯過了第四季度的下降。那麼，這就是我們的責任了。我們認為，展望未來，我們將更能掌握 MMR 值的未來方向。事實上，隨著時間的流逝，我們看到了良好的趨勢——抱歉，進入 2025 年，展望未來，價值正在趨於穩定。因此，我們對目前的狀況和指導方針感到滿意。

Also too, we pulled forward a handful of vehicles too that were sort of mistimed. So they were under-depreciated and caused a bit of an outsized net-net dep issue. But I think a lot of this is really sort of unique in nature to the period and to us, and that's fixed going forward. So we feel good about where the guidance sits on residuals, and we've seen them in a pretty good place so far.

另外，我們也拉了幾輛時機不對的車輛。因此，它們的折舊被低估，並導致了較大的淨負債問題。但我認為，其中許多內容在那個時期和我們看來確實是獨一無二的，而這些特點在未來是會固定下來的。因此，我們對殘差的指導位置感到滿意，到目前為止，我們看到它們處於相當好的位置。

Okay. Thank you. As a follow-up, I wanted to ask about cash and liquidity. You're saying that it sounds like you're expecting EBITDA to be something above breakeven, but we do know there is an expensive -- what can be a costly fleet rotation for you. And you do have some calls on your cash over the next 18 months including a large maturity in '26 and there's the potential make-whole payment.

好的。謝謝。作為後續問題，我想問一下現金和流動性的問題。您說這聽起來像是您預期 EBITDA 將高於盈虧平衡點，但我們知道這會花費昂貴——對於您來說，機隊輪換可能會花費高昂。在接下來的 18 個月內，您確實需要使用一些現金，包括 26 年的一筆大額到期款項，並且還有潛在的補足付款。

Maybe you could just run us through some of the cash considerations, how expensive the fleet rotation is, and what are your options to maintain a minimum level of cash on the balance sheet? Is it just to draw down the revolver or what other options do you have?

也許您可以向我們介紹一下現金方面的一些考慮，例如船隊輪換的成本有多高，以及您有哪些選擇可以維持資產負債表上的最低現金水平？只是拔出左輪手槍嗎，還是有其他選擇？

Yeah. So thanks, Dan. I'll give you a little bit of color here what we can give you. So we talked about the strong cash balance that we have: $1.8 billion of liquidity. And a good portion of that is the revolver, we have available $500 million-plus in cash and about $1.2 billion, $1.3 billion remaining on the revolver. So a strong level of liquidity to start the year.

是的。所以謝謝你，丹。我會在這裡給你一些我們能給你的東西。因此，我們談到了我們擁有的強勁現金餘額：18 億美元的流動資金。其中很大一部分是循環信貸，我們有 5 億多美元的現金，還有大約 12 億美元、13 億美元的剩餘循環信貸。因此，年初的流動性水準很高。

I've talked about the business, we'll probably burn some cash in the first half. We'll spend money on the fleet rotation, and the low point will be in the second quarter. And then we'll start to generate cash from the business as we head to the back end of the year. And we haven't quantified what that low point is, and I'm not prepared to give specific numbers on that today. But I think that's the flow.

我已經談過業務了，我們上半年可能會燒掉一些現金。我們將在船隊輪換上投入資金，最低點將在第二季。然後，當我們進入年底時，我們將開始從業務中產生現金。我們還沒有量化這個最低點，今天我還沒準備好要給出具體的數字。但我認為這就是趨勢。

We feel good about our obligations. We have good starting cash balance. We have good balance sheet flexibility. We understand the maturities. So we feel good about where we are. Obviously, as a CFO, more cash is better, so I'm always going to be a little bit conservative with cash, but we have good flexibility to manage what lies ahead of us.

我們對自己所承擔的義務感到滿意。我們擁有良好的起始現金餘額。我們的資產負債表彈性良好。我們了解成熟度。我們對目前的狀況感到很滿意。顯然，作為一名財務官，現金越多越好，因此我總是對現金持保守態度，但我們有很好的靈活性來管理我們未來的發展。

Harold Antor, Jefferies.

哈羅德‧安托 (Harold Antor)，傑富瑞 (Jefferies)。

Hello. This is Harold Antor on for Stephanie Moore. I guess given the elevated defleeting, could you talk about the options of disposing these vehicles, where there's still the auction process, retail or company channels? So if you could just give us a sense for what -- how are you disposing these vehicles and what are you seeing on the pricing side through these disposals.

你好。哈羅德·安托 (Harold Antor) 為 Stephanie Moore 主持節目。我想，考慮到報廢汽車的價格上漲，您能否談談處理這些車輛的選擇，是否仍透過拍賣流程、零售或公司管道？所以，如果您能告訴我們您是如何處理這些車輛的，以及透過這些處理，您在定價方面看到了什麼變化。

Yeah. I mean, the general color around kind of our sales channels, right? I think directionally, we want to move towards the higher net margin sales channels. We're -- which tend to kind of break from one end of the spectrum, which is auctions to more of a dealer-to-dealer kind of mix in the middle to more retail in terms of the higher margin net sales for us.

是的。我的意思是，我們的銷售管道周圍的一般顏色，對嗎？我認為從方向來看，我們希望朝著淨利潤更高的銷售管道邁進。我們傾向於從拍賣這一端突破到經銷商對經銷商的混合模式，再到零售，以獲得更高的利潤淨銷售。

So -- we're -- our strategy is to move towards overweight retail channels. We've been working that over the last -- at least the last year making progress, but there's still work to do. As I mentioned, we run less than 10% of our cars to auction at this point, and we continue to increase our mix of retail sales.

所以，我們的策略是轉向超重零售通路。我們在過去 —— 至少去年一直在努力，取得了進展，但仍有工作要做。正如我所提到的，目前我們拍賣的汽車不到 10％，我們將繼續增加零售銷售的組合。

We -- and there's two channels of that. One is kind of the organic growth through our sales channels, and we really want to continue to grow those through the digital experience, being able to transact digitally, remove the friction for the customer and more brand visibility. We've got a footprint now. So we continue to drive more volume through that. But then also, we've got some really good strategic partnerships now. We'll add others, hopefully, and we'll continue to grow those segments as well. Got some partnerships.

我們 — — 有兩個頻道。一方面是透過我們的銷售管道實現有機成長，另一方面我們真正希望的是繼續透過數位體驗發展這些管道，能夠進行數位化交易，消除客戶的摩擦並提高品牌知名度。現在我們已經有了足跡。因此，我們會繼續透過這種方式來提高銷量。但同時，我們現在也建立了一些非常好的策略夥伴關係。我們希望能夠添加其他內容，並且我們也將繼續擴大這些部分。建立了一些合作夥伴關係。

So I think as we think about that going forward, it's kind of an end-to-end look. Ultimately, that unlocks our the sub-$300 DPU we're talking about. We also will inform our buy decisions as well. Obviously, we've got to overlay that with the right fleet mix for our rental business. But trying to work those in concert where we're buying vehicles with an eye towards obviously, the rental hold period, but then an eye towards what sales and then through what channels are really key because we've got a large fleet of vehicles. People are test driving them every day.

因此我認為，當我們思考這個問題時，這是一種端到端的檢視。最終，這解鎖了我們所談論的低於 300 美元的 DPU。我們也會告知我們的購買決定。顯然，我們必須為此選擇適合我們租賃業務的車隊組合。但是，我們試圖將這些結合起來，我們購買車輛時顯然會關注租賃持有期，但隨後也會關注銷售情況以及透過哪些管道銷售，這才是關鍵，因為我們擁有大量的車輛。人們每天都在試駕它們。

Effectively, we could have our whole fleet for sale at any given point in time. And we're -- the way I look at it at least is we're almost a used car factory, right? As I mentioned, we're one of the largest car dealerships in the world. So we have all the necessary ingredients to create value for us.

實際上，我們可以在任何時間點出售我們的整個車隊。而且我們——至少在我看來，我們幾乎是一個二手車工廠，對嗎？正如我所提到的，我們是世界上最大的汽車經銷商之一。因此，我們擁有創造價值的所有必要因素。

That's great, thank you for the color. And then I guess just for my follow-up, one I wanted to piggyback on the liquidity question. What options do you have to refi the 2026 maturities? And then, I guess, if you could provide any sense on as you improve vehicle choice for customers, as you rotate the fleet -- how are you seeing -- is there any change in the fleet mix and any impact on RPD? Thank you.

太棒了，謝謝你的顏色。然後我想只是為了後續的問題，我想順便提一下流動性問題。您有哪些選擇可以為 2026 年到期的債務進行再融資？然後，我想，如果您能提供一些建議，隨著您為客戶改善車輛選擇，隨著您輪換車隊——您是如何看待的——車隊組合是否有任何變化以及對 RPD 有何影響？謝謝。

Okay. I'll start with the first part around I think you were talking about balance sheet flexibility and refinancing. Yeah, we -- as I mentioned before, we have a good bit of balance sheet flexibility, and we'll look to refinance those obligations as the maturities come due. First up is obviously the revolver that we have that comes due in the first half of this year, and we're already in discussions addressing that. And then we'll deal with the remaining ones at the end of the year and stay ahead of them going current into '26. But we understand those today, and we feel like we're going to have all of those addressed in time.

好的。我將從第一部分開始，我認為您正在談論資產負債表靈活性和再融資。是的，正如我之前提到的，我們擁有相當好的資產負債表彈性，我們將在債務到期時尋求再融資。首先顯然是我們今年上半年到期的左輪手槍，我們已經在討論解決這個問題。然後，我們將在年底處理剩餘的問題，並提前進入 26 年。但我們今天明白了這些問題，並且我們覺得我們將及時解決所有這些問題。

And then I think you had a question, too, around the fleet and car sales mix.

然後我想您也對車隊和汽車銷售組合有疑問。

Yeah.

是的。

I can have -- this is Sandeep here. So on the asset class mix, essentially, our intent is always to ensure that what we buy is as close as possible to the customer generated demand from a class perspective, right? So that's always -- and that's generally a question around the supply that's available from the OEMs. That's a constant endeavor, and we keep aiming for a better match there.

我可以—這是桑迪普 (Sandeep)。因此，在資產類別組合方面，本質上，我們的目的始終是確保我們購買的資產從類別角度盡可能接近客戶產生的需求，對嗎？所以這始終是一個有關 OEM 供應的問題。這是一項持續不斷的努力，我們一直致力於取得更好的成績。

I think the second part of your question around the impact on RPD, there's no material impact on RPD based on that. It's more of a cap cost consideration. So that's really the metric in play, less so RPD.

我認為你問題的第二部分是關於對 RPD 的影響，這並不會對 RPD 產生實質影響。這更多是一種上限成本的考慮。所以這其實是發揮作用的衡量標準，而不是 RPD。

Chris Stathoulopoulos, Susquehanna.

克里斯‧斯塔圖洛普洛斯 (Chris Stathoulopoulos)，薩斯奎哈納。

Scott, so on the EBITDA guide, the cadence for the year, loss in 1Q, breakeven 2Q, sizable 3Q, 4Q small profit. I think you said low single-digit adjusted margin for the full year. So as we think about the exit rates for 4Q on yields -- DOE, DPU -- could you help bridge that versus the targets on the $1,500, the low 30s and sub-$300? Should we think about the first half of '26 as spring loaded or sort of a back-weighted? We just want to understand all the moving parts here, how the revenue and cost initiatives should mature as we exit this year and work into '26. Thanks.

斯科特，根據 EBITDA 指南，今年的節奏是，第一季虧損，第二季損益平衡，第三季可觀獲利，第四季小幅獲利。我認為您說的是全年調整後利潤率處於低個位數。因此，當我們考慮到第四季度的收益率退出利率（DOE、DPU）時，您能否幫助將其與 1,500 美元、30 美元出頭和 300 美元以下的目標進行比較？我們是否應該把 26 年上半年看作是彈簧加載的，還是某種後加權的？我們只是想了解這裡的所有活動部分，以及當我們今年退出並進入26年時收入和成本計劃應該如何成熟。謝謝。

Yeah, Chris, thanks for the question. I'll start, and maybe Gil and Sandeep want to chime in on some of the others. But I think we're not here to officially give guidance on specific numbers for Q4 or for '26 either. But I think directionally, you can imagine that the North Star targets will move directionally towards that. We've already said DPU, we think, will exit in that sub-$300 range. We think we're going to make progress on RPU as we go through the year. So we'll move closer to that $1,500 RPU target.

是的，克里斯，謝謝你的提問。我先開始，也許 Gil 和 Sandeep 也想加入討論。但我認為我們在這裡並不是要正式提供第四季度或26年具體數字的指導。但我認為從方向上看，你可以想像北極星目標將朝著那個方向移動。我們已經說過，我們認為 DPU 將在 300 美元以下的範圍內退出。我們認為，隨著時間的流逝，我們將在 RPU 方面取得進展。因此我們將更接近 1,500 美元的 RPU 目標。

I think the one that's going to be a little more difficult in the short run, given the headwinds that I talked about in my prepared remarks, is going to be low 30s DOE, especially as we are a little bit smaller year over year in terms of fleet size, and it makes it a little more difficult to accelerate that to the low 30s target. But I think all in all, we're making good progress on all three.

我認為，考慮到我在準備好的發言中提到的阻力，短期內會更困難一點，那就是 DOE 將會低於 30 秒，尤其是我們的機隊規模同比去年有所縮小，這將使加速達到 30 秒以下的目標變得更加困難。但我認為總的來說，我們在這三個方面都取得了良好的進展。

The good news is that DPU, which is the one we have the most visibility on, is the biggest mover of our financial metrics from an EBITDA perspective, and we have confidence in that. But I think by the end of the year, we'll have good clarity on where the other two sit and we'll reserve that at that point. But we feel good about the exit rate for '25 heading into '26.

好消息是，從 EBITDA 角度來看，DPU（我們最關注的指標）是我們財務指標的最大推動因素，我們對此充滿信心。但我認為到今年年底，我們將清楚地知道另外兩個的位置，屆時我們將保留這一點。但我們對 25 年邁向 26 年的退出率感到滿意。

Okay. And as a follow-up, Gil, your thoughts on the tariffs. I realize it's still early here. We've seen that if new vehicle prices move higher, there could be demand for secondary or used, which would typically be good for residual values and Hertz. Any thoughts as or how you're thinking about the tariffs at this point? Thanks

好的。接下來，吉爾，請問您對關稅有何看法。我意識到這裡時間還早。我們已經看到，如果新車價格上漲，二手車或舊車的需求就會增加，這通常對殘值和赫茲有利。您現在對關稅有什麼想法或看法？謝謝

Yeah. Thanks, Chris. Yes, obviously, top of mind for us. I mean, of course, I think it's -- I mean, it's a fluid situation, right? In all likelihood, temporary by nature, but the dynamics are breaking different ways.

是的。謝謝，克里斯。是的，顯然，這是我們最關心的問題。我的意思是，當然，我認為這是——我的意思是，這是一個不穩定的情況，對吧？很有可能，本質上來說這是暫時的，但動態會以不同的方式改變。

I would just start by saying, I think for Hertz, we're largely insulated. And I think it's a result of all the work we've done, really trying -- working towards transforming Hertz, specifically around the fleet strategy. As I kind of mentioned earlier, we're well positioned in the short run because the strategy we've taken with fleet will pay dividends in any real trade environment. So we've made significant investments already in the fleet and progress towards the fleet rotation. And then in turn, that gives us a lot of flexibility to manage through the current period of uncertainty.

我首先要說的是，我認為對於赫茲來說，我們基本上沒有受到影響。我認為這是我們付出所有努力的結果，我們確實在努力改變赫茲，特別是圍繞車隊策略。正如我之前提到的，我們在短期內處於有利地位，因為我們針對船隊採取的策略將在任何實際貿易環境中帶來回報。因此，我們已經對船隊進行了大量投資，並朝著船隊輪換的方向取得了進展。反過來，這給了我們很大的靈活性來度過當前的不確定時期。

So we've locked in additional vehicles already, as I mentioned. And then as we're taking those and then we look for model year '26 is we've got a diversified supply chain, of course. And all that, that won't change through the tariffs. But on a macro basis, as you mentioned, if tariffs have a resulting increase in new car prices, the counterbalance is likely residual values will go up, which will help our business model. But we're -- we've made so much progress on the fleet rotation and what's coming in the first half already locked in, that we've got a lot of flexibility to manage through the environment.

正如我所提到的那樣，我們已經鎖定了其他車輛。然後，當我們考慮這些並尋找 26 年車型時，我們當然擁有多樣化的供應鏈。而這一切都不會因為關稅而改變。但從宏觀角度來看，正如您所說，如果關稅導致新車價格上漲，那麼抵消作用的可能是殘值也會上漲，這將有助於我們的商業模式。但是我們在艦隊輪換方面已經取得了很大進展，並且已經確定了上半年的計劃，因此我們在管理環境中擁有很大的靈活性。

Ian Zaffino, Oppenheimer.

伊恩·扎菲諾 (Ian Zaffino)，奧本海默。

This is Isaac Sellhausen on for Ian. I had one follow-up on the comments around DOE. Are you able to provide any additional details on the puts and takes for the full year? Is there -- I guess, a few moving pieces with the operational initiatives, rotations, and I guess, some cost headwinds on the insurance side? And I guess is there anything incremental on the operational side that could help offset some of those cost headwinds? Thanks.

這是 Ian 的 Isaac Sellhausen。我對 DOE 的評論進行了一次跟進。您能否提供有關全年收益和收益的更多詳細資訊？我猜，在營運措施、輪調方面是否存在一些變動因素，而且我猜，在保險方面是否存在一些成本阻力？我想問一下，在營運方面有沒有什麼增量措施可以幫助抵銷一些成本方面的不利因素？謝謝。

This is Scott. I'll start. I think I can give you a little bit of color around the categorical nature of it, probably not numerically from a guidance perspective. But we've talked about the things that are working. Obviously, the core operating components of the business are moving in the right direction: labor, maintenance, collision, supply chain, rental ops. All those are moving directionally where we need them to go.

這是斯科特。我先開始。我想我可以給你一些關於它的分類性質的說明，可能不是從指導的角度來看數字的。但我們已經討論過正在起作用的事情。顯然，業務的核心營運要素正在朝著正確的方向發展：勞動力、維護、碰撞、供應鏈、租賃營運。所有這些都在按照我們需要的方向移動。

We have -- we do have a few headwinds that we're facing that we are addressing that are a little different, some accounting changes, some related to insurance that will have a lag effect on some of the initiatives that we put in place. So I think that's the sort of backdrop.

我們確實面臨著一些阻力，我們正在採取一些不同的措施來應對，一些會計變化，一些與保險相關的變化，這些變化將對我們實施的一些舉措產生滯後效應。所以我認為這就是這樣的背景。

The initiatives are working. Obviously, we got to drive utilization, as I said. A critical piece of this is making sure we get the units. But I think the initiatives that we have in place are all working. We're seeing real benefit from the newer cars in the fleet. All of those things are good platforms. We just have to address the peripheral components of the business.

這些措施正在發揮成效。顯然，正如我所說，我們必須提高利用率。其中關鍵的部分是確保我們得到這些單位。但我認為我們採取的措施都是有效的。我們看到了車隊中較新的車輛所帶來的真正好處。所有這些都是很好的平台。我們只需要解決業務的外圍部分。

This concludes the Hertz Global Holdings fourth-quarter 2024 earnings conference call. Thank you for joining. You may now disconnect.

赫茲全球控股 2024 年第四季財報電話會議到此結束。感謝您的加入。您現在可以斷開連線。