What was the total Adjusted EBITDA for Hertz Global and Dollar Rent A Car in 2022?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
| Year Ended December 31, 2022 | ||||||
|---|---|---|---|---|---|---|
| (In millions) | Americas RAC | International RAC | Total | |||
| Revenues | $ | 7,280 | $ | 1,405 | $ | 8,685 |
| Significant segment expenses: | ||||||
| Direct vehicle and operating | 4,080 | 728 | 4,808 | |||
| Depreciation of revenue earning vehicles and lease charges, net(1) | 553 | 148 | 701 | |||
| Selling, general and administrative | 351 | 180 | 531 | |||
| Other segment items(2) | 4 | (1) | 3 | |||
| Segment profit (loss): Adjusted EBITDA | $ | 2,292 | $ | 350 | $ | 2,642 |
| Corporate(3) | (337) | |||||
| Total Hertz Global and Hertz Adjusted EBITDA | 2,305 |
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 total Adjusted EBITDA for Hertz Global and Hertz, which includes Dollar Rent A Car, was $2,305 million for the year ended December 31, 2022. This figure represents the overall profitability of Hertz Global's operations, incorporating adjustments to EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). These adjustments provide a clearer picture of the company's operational performance by excluding items such as non-vehicle depreciation and amortization, non-vehicle debt interest, vehicle debt-related charges, restructuring costs, and unrealized gains or losses on financial instruments.
For a prospective Dollar Rent A Car franchisee, this number is an indicator of the financial health and stability of the parent company. A strong Adjusted EBITDA suggests that Hertz Global is effectively managing its operations and generating substantial profits. This can translate to better support and resources for franchisees, as well as a more stable and reliable business partnership. However, it is important to note that this is a consolidated figure, and the performance of individual brands or segments within Hertz Global may vary.
It is also important to consider the adjustments made to EBITDA to arrive at the Adjusted EBITDA figure. These adjustments can provide insights into the specific factors that are affecting the company's profitability. For example, significant restructuring charges or unrealized losses on financial instruments could indicate potential challenges or risks. Therefore, prospective franchisees should carefully review the notes to the consolidated financial statements to understand the nature and impact of these adjustments.
In summary, while the total Adjusted EBITDA for Hertz Global provides a valuable overview of the company's financial performance, prospective Dollar Rent A Car franchisees should conduct further due diligence to understand the underlying factors driving this performance and how it may impact their individual franchise operations. This includes analyzing segment-specific data, reviewing the company's financial statements and related disclosures, and consulting with financial advisors.