The company recorded a $1.0 billion non-cash asset impairment charge during the third quarter of 2024. The size of the impairment charge was largely due to the decline in fleet residual values over the last year or so. The timing of the impairment was driven by the cash flow generation of the business over the remaining hold period, which was primarily impacted by our recent accelerated fleet rotation initiative. Third quarter revenue was $2.6 billion in 2024. Revenue per day was relatively flat year over year supported by execution of the Company’s commercial strategy aimed at maximizing RPU. This strategy resulted in volume declines in lower yielding channels as the Company remained disciplined on capacity and favored premium RPD business. Vehicle depreciation of $937 million increased significantly compared to the prior year period. DPU for the third quarter of 2024 was $537. The Company expects to substantially complete the fleet rotation by the end of 2025, at which time it expects that DPU could normalize to under $300. Direct vehicle and operating expense decreased primarily due to lower volume, partially offset by insurance and vehicle licensing and tax headwinds. DOE on a per transaction day basis in the third quarter of 2024 increased by 2% year over year and decreased 2% quarter over quarter. Structural operational efficiencies that the company is executing on are expected to continue to drive ongoing improvements in per day unit costs. Adjusted Corporate EBITDA was negative $157 million in the quarter compared with positive Adjusted Corporate EBITDA in the prior year quarter. The decrease was due mainly to increased vehicle depreciation. The company’s operational transformation is ongoing and is expected to be substantially completed by the end of 2025.
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