What was the diluted earnings per share for Dollar Rent A Car in 2022?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
including Public Warrants and Exchangeable Notes, except when the effect would be antidilutive. Dilutive shares for stock-based instruments and Public Warrants are computed using the treasury stock method and Exchangeable Notes are computed using the if-converted method. Additionally, the Company removes the income or expense impacts related to Public Warrants and Exchangeable Notes when computing diluted earnings (loss) per common share, when the impacts are dilutive.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table sets forth the computation of basic and diluted earnings (loss) per common share:
| (In millions, except per share data)(1) | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| Numerator: | ||||
| Net income (loss) available to Hertz Global common stockholders, basic | $ (2,862) $ | 616 | 2,059 | |
| Change in fair value of Public Warrants | — | (163) | (704) | |
| Net income (loss) available to Hertz Global common stockholders, | $ (2,862) $ | 452 | $ 1,355 | |
| diluted | ||||
| Denominator: | ||||
| Basic weighted-average common shares outstanding | 306 | 313 | 379 | |
| Dilutive effect of stock options, RSUs and PSUs | — | 1 | 1 | |
| Dilutive effect of Public Warrants | — | 11 | 23 | |
| Diluted weighted-average common shares outstanding | 306 | 326 | 403 | |
| Antidilutive Public Warrants | 167 | — | — | |
| Antidilutive stock options, RSUs and PSUs | 13 | 6 | 6 | |
| Antidilutive shares related to Exchangeable Notes | 19 | — | — | |
| Total antidilutive | 199 | 6 |
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, the diluted earnings per share in 2022 was $3.36. This figure represents the portion of the company's profit allocated to each outstanding share of common stock, considering the dilutive effect of stock options, RSUs, PSUs, and Public Warrants.
For a prospective Dollar Rent A Car franchisee, understanding diluted earnings per share can provide insight into the financial performance and profitability of the parent company, Hertz Global. A higher diluted earnings per share generally indicates stronger profitability, which can be a positive sign for the overall health and stability of the franchise system.
However, it is important to note that this figure is based on Hertz Global's consolidated financial statements, and may not directly reflect the performance of individual Dollar Rent A Car franchise locations. Franchisees should also consider other financial metrics and factors when evaluating the franchise opportunity, such as revenue growth, operating expenses, and market conditions.