What was the net income (loss) for Dollar Rent A Car in 2024?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
Dividends paid to Hertz Holdings | | | (7) | | | (7) | | December 31, 2024 | 100 | $ | $ 4,598 | $ (3,956) | $ (316) | $ 326 |
(1) See "Share Repurchase Programs for Common Stock" in Note 17, "Equity and Earnings (Loss) Per Common Share – Hertz Global," for additional information.
(2) Represents former CEO awards forfeited in March 2024. See also Note 9, "Stock-Based Compensation."
THE HERTZ CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions)
| Years Ended December 31, | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||
| Cash flows from operating activities: | |||||
| Net income (loss) | $ (3,137) $ | 452 | $ 1,355 | ||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) | |||||
| operating activities: | |||||
| Depreciation and reserves for revenue earning vehicles, net | 3,983 | 2,422 | 809 | ||
| Depreciation and amortization, non-vehicle | 139 | 149 | 142 | ||
| Amortization of deferred financing costs and debt discount (premium) | 74 | 61 | 53 | ||
| Stock-based compensation charges | 63 | 87 | 130 | ||
| Stock-based compensation forfeitures | (68) | — | — | ||
| Provision for receivables allowance | 120 | 93 | 57 | ||
| Deferred income taxes, net | (459) | (380) | 301 | ||
| Long-Lived Assets impairment | 1,048 | — | — | ||
| (Gain) loss on sale of non-vehicle capital assets | 3 | (162) | (5) | ||
| Changes in financial instruments | 7 | 117 | (111) | ||
| Other | (30) | 5 | 11 | ||
| Changes in assets and liabilities: | |||||
| Non-vehicle receivables | 23 | (216) | (264) | ||
| Prepaid expenses and other assets | 8 | (39) | (126) | ||
| Operating lease right-of-use assets | 386 | 365 | 280 | ||
| Non-vehicle accounts payable | (14) | (48) | 43 | ||
| Accrued liabilities | 324 | (39) | 80 | ||
| Accrued taxes, net | 21 | 1 | 73 | ||
| Operating lease liabilities | (417) | (391) | (309) | ||
| Self-insured liabilities | 152 | (6) | 19 | ||
| Net cash provided by (used in) operating activities | 2,226 | 2,471 | 2,538 | ||
| Cash flows from investing activities: | |||||
| Revenue earning vehicles expenditures | (10,524) | (9,514) | (10,596) | ||
| Proceeds from disposal of revenue earning vehicles | 7,678 | 5,498 | 6,498 | ||
| Non-vehicle |
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 net income (loss) for the year 2024 was a loss of $3,137 million. This figure is a key indicator of the company's overall financial performance during that period. A prospective franchisee should carefully consider this significant loss when evaluating the financial stability and potential risks associated with investing in a Dollar Rent A Car franchise.
It's important to note that this net loss is just one aspect of the company's financial health. The FDD also includes other financial data, such as cash flow information and details on revenues and expenses, which can provide a more comprehensive picture. For instance, while the net income was negative, the cash flows from operating activities were positive, amounting to $2,226 million. This suggests that the core business operations were generating cash, even though the company experienced an overall net loss.
Several factors can contribute to a net loss, including high operating costs, depreciation of assets, and other financial adjustments. In the case of Dollar Rent A Car, the FDD mentions adjustments such as depreciation and reserves for revenue earning vehicles, Long-Lived Assets impairment, and deferred income taxes, which all play a role in reconciling the net income (loss) to net cash provided by (used in) operating activities. Understanding these factors is crucial for assessing the long-term viability of the franchise.
Prospective franchisees should consult with a financial advisor to thoroughly analyze Dollar Rent A Car's financial statements and understand the implications of the net loss for their investment. Additionally, it would be prudent to ask the franchisor for more detailed explanations regarding the factors that contributed to the loss and the strategies they have in place to improve profitability.