Hertz Announces Resignation of Chief Accounting Officer

Published 18/03/2025, 13:06
© Reuters

ESTERO, FL – Hertz Global Holdings (OTC:HTZGQ), Inc. (NASDAQ:HTZ) and its subsidiary The Hertz Corporation announced today that Kelly Galloway, Senior Vice President and Chief Accounting Officer, has decided to resign. Galloway, who has played a significant role in the company’s accounting operations, will continue in her current capacity until the company files its quarterly report for the period ending March 31, 2025. According to InvestingPro data, this transition comes at a challenging time for Hertz, as the company currently operates with a significant debt burden and faces cash flow challenges, with a negative EBITDA of $1.01 billion in the last twelve months.

Galloway’s departure is set to take place following the completion of the upcoming quarterly financial disclosure. Upon her exit, Scott M. Haralson, currently the Executive Vice President and Chief Financial Officer, will take over the responsibilities as the company’s principal accounting officer.

The company, a Delaware-incorporated entity with its principal executive offices located in Estero, Florida, has not disclosed the reasons for Galloway’s resignation or any details about her new opportunity outside of Hertz.

This organizational change comes at a time when Hertz, known for its car rental and leasing services, continues to navigate the competitive auto rental industry landscape. The company has not yet announced a successor for the role of Senior Vice President and Chief Accounting Officer following Galloway’s transition to her new role. InvestingPro analysis reveals concerning financial metrics, including a weak Financial Health Score of 1.32 and a high debt-to-equity ratio of 120.31, suggesting significant operational challenges ahead. For deeper insights into Hertz’s financial position, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Investors and stakeholders were informed of this development through a Form 8-K filing with the Securities and Exchange Commission (SEC) on March 18, 2025. The filing, which provides updates on key corporate events, indicates that Hertz’s leadership is managing the transition in its finance department’s senior ranks.

Hertz operates under the ticker symbols HTZ for its common stock and HTZWW for its warrants on The Nasdaq Stock Market LLC. The company has been a staple in the auto rental industry, and changes in its executive team are closely watched by investors for potential impacts on the company’s strategic direction and financial performance. Trading at $3.77, the stock has experienced a significant decline of nearly 47% over the past year, with current market capitalization at $1.16 billion. InvestingPro analysis indicates the stock is currently fairly valued, with 13 additional ProTips available to subscribers regarding the company’s financial outlook.

The information in this article is based on a press release statement.

In other recent news, Hertz Global Holdings Inc . reported a significant loss for the fourth quarter of 2024, with earnings per share at -$1.18, missing the forecast of -$0.65. The company’s revenue was $2 billion, falling short of the $2.13 billion expected by analysts, marking a 7% year-over-year decline. Despite these financial challenges, Hertz maintained a strong liquidity position with $1.8 billion available. In response to these results, BofA Securities raised its price target for Hertz to $3.30, while maintaining an Underperform rating, noting the company’s lower-than-expected adjusted EBITDA and revenue. Jefferies analysts, on the other hand, reiterated a Hold rating with a price target of $4.00, highlighting Hertz’s strategic focus on fleet management and pricing strategies.

Additionally, Hertz announced an executive shift, with CFO Scott M. Haralson assuming the additional role of principal accounting officer following the resignation of Kelly Galloway. In labor news, Hertz workers at Dallas-Fort Worth and Palm Beach International Airports secured new collective bargaining agreements that include wage increases and improved working conditions, ending recent strikes. These developments come as Hertz continues to navigate its strategic plans and internal transitions.

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