"Our focus in 2024 was stabilizing the business and
implementing fundamental changes to transform our company," said
Gil West, Hertz CEO. "With our new
leadership team and organizational structure in place, we are well
positioned to execute our strategy with rigor and at pace. We are
turning our fleet into a business advantage with a comprehensive
strategy that will enable us to operate more efficiently while
improving vehicle choice for our customers. Throughout this
transformation, we remain focused on building customer trust and
confidence by delivering a best-in-class experience.
"As an asset-heavy business with extensive global reach, we
have the scale and expertise to lead the industry again. The
foundation we built in 2024 positions us to execute our
transformation in 2025, and I am confident in our ability to
deliver sustainable value for our customers, employees, and
shareholders."
ESTERO,
Fla., Feb. 13, 2025 /PRNewswire/ -- Hertz Global
Holdings, Inc. (NASDAQ: HTZ) ("Hertz", "Hertz Global" or the
"Company") today reported results for its fourth quarter and full
year 2024.
Q4 2024
- Revenue of $2.0 billion
- GAAP net loss of $479 million, or
$1.56 loss per diluted share
FY 2024
- Revenue of $9.0 billion
- GAAP net loss of $2.9 billion, or
$9.34 loss per diluted share
- 30,000 EV fleet reduction announced in 2023 has been
completed
- Strong corporate liquidity of $1.8
billion at December 31,
2024
OVERVIEW
The Company has been executing a commercial strategy aimed at
maximizing RPU, primarily by driving a greater mix of high RPD
business coupled with keeping fleet capacity inside demand. As a
result, year over year RPU declines narrowed from down 7% in the
first quarter of 2024 to down only 1% in the fourth quarter.
Vehicle depreciation improved 19% year over year in the fourth
quarter. Fourth quarter 2023 included $245
million of loss on sale for EV's stemming from the Company's
EV fleet reduction plan that did not recur in the fourth quarter of
2024. This benefit was partially offset by loss on sales
experienced in the fourth quarter of 2024 largely driven by the
impacts of higher-than-normal defleeting. The Company is in the
midst of a fleet rotation aimed at normalizing DPU that is expected
to be substantially complete by the end of 2025, at which time it
expects DPU to settle below $300.
In the fourth quarter, direct vehicle and operating expenses
rose by 2% compared to the previous year. The increase was
primarily due to insurance cost headwinds and the recognition of
additional non-cash rent expense, which primarily resulted from
leases expense recognition post the long-lived asset impairment in
the third quarter of 2024. This, combined with lower volume, drove
a 6% year over year increase in DOE per transaction day. Selling,
general and administrative expenses improved 9% year over year in
the fourth quarter, due mostly to lower personnel and advertising
expenses. The Company is laser-focused on its continued execution
of structural operational efficiencies, including initiatives to
lower insurance costs, that it expects will drive ongoing
improvements in per day unit costs.
Adjusted Corporate EBITDA loss narrowed year over year in the
fourth quarter to negative $357
million.
The Company is in the midst of an operational transformation
grounded in its back to basics strategy aimed at strengthening the
core business. The Company is laser-focused on excellence in
execution of this strategy. The operational transformation is
ongoing and is expected to be substantially completed by the end of
2025.
SUMMARY RESULTS
|
Three Months Ended
December 31,
|
|
Percent
Inc/(Dec)
2024 vs 2023
|
|
($ in millions, except earnings per share or where
noted)
|
2024
|
|
2023
|
|
|
Hertz Global - Consolidated
|
|
|
|
|
|
|
Total
revenues
|
$
2,040
|
|
$
2,184
|
|
(7) %
|
|
Net income
(loss)
|
$
(479)
|
|
$
(348)
|
|
38 %
|
|
Net income (loss)
margin
|
(23) %
|
|
(16) %
|
|
|
|
Adjusted net income
(loss)(a)
|
$
(362)
|
|
$
(418)
|
|
(13) %
|
|
Adjusted diluted
earnings (loss) per share(a)
|
$
(1.18)
|
|
$
(1.36)
|
|
(13) %
|
|
Adjusted Corporate
EBITDA(a)
|
$
(357)
|
|
$
(382)
|
|
(7) %
|
|
Adjusted Corporate
EBITDA Margin(a)
|
(18) %
|
|
(17) %
|
|
|
|
|
|
|
|
|
|
Average Vehicles (in
whole units)
|
532,884
|
|
553,545
|
|
(4) %
|
|
Average Rentable
Vehicles (in whole units)
|
497,875
|
|
527,267
|
|
(6) %
|
|
Vehicle
Utilization
|
79 %
|
|
78 %
|
|
|
|
Transaction Days (in
thousands)
|
35,998
|
|
37,602
|
|
(4) %
|
|
Total RPD (in
dollars)(b)
|
$
57.10
|
|
$
58.50
|
|
(2) %
|
|
Total RPU Per Month (in
whole dollars)(b)
|
$
1,376
|
|
$
1,391
|
|
(1) %
|
|
Depreciation Per Unit
Per Month (in whole dollars)(b)
|
$
422
|
|
$
501
|
|
(16) %
|
|
|
|
|
|
|
|
Americas RAC Segment
|
|
|
|
|
|
|
Total
revenues
|
$
1,669
|
|
$
1,805
|
|
(8) %
|
|
Adjusted
EBITDA
|
$
(297)
|
|
$
(309)
|
|
(4) %
|
|
Adjusted EBITDA
Margin
|
(18) %
|
|
(17) %
|
|
|
|
|
|
|
|
|
|
Average Vehicles (in
whole units)
|
432,909
|
|
446,573
|
|
(3) %
|
|
Average Rentable
Vehicles (in whole units)
|
399,927
|
|
422,155
|
|
(5) %
|
|
Vehicle
Utilization
|
80 %
|
|
79 %
|
|
|
|
Transaction Days (in
thousands)
|
29,298
|
|
30,589
|
|
(4) %
|
|
Total RPD (in
dollars)(b)
|
$
57.06
|
|
$
59.07
|
|
(3) %
|
|
Total RPU Per Month (in
whole dollars)(b)
|
$
1,393
|
|
$
1,427
|
|
(2) %
|
|
Depreciation Per Unit
Per Month (in whole dollars)(b)
|
$
460
|
|
$
553
|
|
(17) %
|
|
|
|
|
|
|
|
International RAC Segment
|
|
|
|
|
|
|
Total
revenues
|
$
371
|
|
$
379
|
|
(2) %
|
|
Adjusted
EBITDA
|
$
1
|
|
$
44
|
|
(98) %
|
|
Adjusted EBITDA
Margin
|
— %
|
|
12 %
|
|
|
|
|
|
|
|
|
|
Average Vehicles (in
whole units)
|
99,975
|
|
106,972
|
|
(7) %
|
|
Average Rentable
Vehicles (in whole units)
|
97,948
|
|
105,112
|
|
(7) %
|
|
Vehicle
Utilization
|
74 %
|
|
73 %
|
|
|
|
Transaction Days (in
thousands)
|
6,700
|
|
7,013
|
|
(4) %
|
|
Total RPD (in
dollars)(b)
|
$
57.26
|
|
$
56.03
|
|
2 %
|
|
Total RPU Per Month (in
whole dollars)(b)
|
$
1,305
|
|
$
1,246
|
|
5 %
|
|
Depreciation Per Unit
Per Month (in whole dollars)(b)
|
$
258
|
|
$
283
|
|
(9) %
|
|
|
|
NM - Not
meaningful
|
|
(a)
|
Represents a non-GAAP
measure. See the accompanying reconciliations included in
Supplemental Schedule II for 2024 and 2023.
|
|
(b)
|
Based on December
31, 2023 foreign exchange rates.
|
EARNINGS WEBCAST INFORMATION
Hertz Global's live webcast and conference call to discuss its
fourth quarter 2024 results will be held on February 13, 2025,
at 9:00 a.m. Eastern Time. The
conference call will be broadcast live in listen-only mode on the
Company's investor relations website at IR.Hertz.com. If you would
like to access the call by phone and ask a question, please go to
Hertz Q4 and FY 2024 earnings teleco registration,
and you will be provided with dial in details. Investors are
encouraged to dial-in approximately 15 minutes prior to the call. A
web replay will remain available on the website for approximately
one year. The earnings release and related supplemental schedules
containing the reconciliations of non-GAAP measures will be
available on the Hertz website, IR.Hertz.com.
UNAUDITED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP
MEASURES AND DEFINITIONS
In this earnings release, we include select unaudited financial
data of Hertz Global, Supplemental Schedules, which are provided to
present segment results, and reconciliations of non-GAAP measures
to their most comparable GAAP measures. Following the Supplemental
Schedules, the Company provides definitions for terminology used
throughout the earnings release and its rationale on the importance
and usefulness of non-GAAP measures for investors and
management.
ABOUT HERTZ
Hertz Global Holdings Inc. is one of the world's leading car
rental and mobility solutions providers. Its subsidiaries and
licensees operate the Hertz, Dollar, Thrifty and Firefly vehicle
rental brands with more than 11,000 rental locations in 160
countries around the globe, as well as the Hertz Car Sales brand,
which offers a range of quality, competitively priced used cars for
sale online and at locations across the US, and the Hertz 24/7 car
sharing business in Europe. For
more information about Hertz, visit www.hertz.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
Certain statements contained or incorporated by reference in
this release, and in related comments by the Company's management,
include "forward-looking statements." Forward-looking statements
are identified by words such as "believe," "expect," "project,"
"potential," "anticipate," "intend," "plan," "estimate," "seek,"
"will," "may," "would," "should," "could," "forecasts," "guidance"
or similar expressions, and include information concerning our
liquidity, our results of operations, our business strategies,
economic and industry conditions and other information. These
forward-looking statements are based on certain assumptions that
the Company has made in light of its experience in the industry, as
well as its perceptions of historical trends, current conditions,
expected future developments and other factors. The Company
believes these judgments are reasonable, but you should understand
that these forward-looking statements are not guarantees of future
performance or results, and that the Company's actual results could
differ materially from those expressed in the forward-looking
statements due to a variety of important factors, both positive and
negative, that may be revised or supplemented in subsequent
reports, such as Annual Reports on Form 10-K, Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K filed or furnished to the
SEC.
Important factors that could affect the Company's actual results
and cause them to differ materially from those expressed in
forward-looking statements include, among other things.
- mix of program and non-program vehicles in the Company's
fleet, which can lead to increased exposure to residual value risk
upon disposition;
- the potential for residual values associated with
non-program vehicles in the Company's fleet to decline, including
suddenly or unexpectedly, or fail to follow historical seasonal
patterns;
- the Company's ability to purchase adequate supplies of
competitively priced vehicles at a reasonable cost in order to
efficiently service rental demand, including upon any disruptions
in the global supply chain;
- the Company's ability to effectively dispose of vehicles, at
the times and through the channels, that maximize the Company's
returns;
- the age of the Company's fleet, and its impact on vehicle
carrying costs, customer service scores, as well as on the
Company's ability to sell vehicles at acceptable prices and
times;
- disruptions in the supply chain, including in connection
with any increase in tariffs;
- whether a manufacturer of the Company's program vehicle
fulfills its repurchase obligations;
- the frequency or extent of manufacturer safety
recalls;
- levels of travel demand, particularly business and leisure
travel in the U.S. and in global markets;
- seasonality and other occurrences that disrupt rental
activity during the Company's peak periods, including in critical
geographies;
- the Company's ability to accurately estimate future levels
of rental activity and adjust the number, location and mix of
vehicles used in the Company's rental operations
accordingly;
- the Company's ability to implement its business strategy or
strategic transactions, including the Company's ability to
implement plans to support a modern mobility ecosystem;
- the Company's ability to achieve cost savings and normalized
depreciation levels, as well as revenue enhancements from its
profitability initiatives and other operational programs;
- the Company's ability to adequately respond to changes in
technology impacting the mobility industry;
- significant changes in the competitive environment and the
effect of competition in the Company's markets on rental volume and
pricing;
- the Company's reliance on third-party distribution channels
and related prices, commission structures and transaction
volumes;
- the Company's ability to offer services for a favorable
customer experience, and to retain and develop customer loyalty and
market share;
- the Company's ability to maintain its network of leases and
vehicle rental concessions at airports and other key locations in
the U.S. and internationally;
- the Company's ability to maintain favorable brand
recognition and a coordinated branding and portfolio
strategy;
- the Company's ability to attract and retain effective
front-line employees, senior management and other key
employees;
- the Company's ability to effectively manage its union
relations and labor agreement negotiations;
- the Company's ability to manage and respond to cybersecurity
threats and cyber attacks on the Company's information technology
systems or those of the Company's third-party providers;
- the Company's ability, and that of the Company's key
third-party partners, to prevent the misuse or theft of information
the Company possesses, including as a result of cyber attacks and
other security threats;
- the Company's ability to evaluate, maintain, upgrade and
consolidate its information technology systems;
- the Company's ability to comply with current and future laws
and regulations in the U.S. and internationally regarding data
protection, data security and privacy risks;
- risks associated with operating in many different countries,
including the risk of a violation or alleged violation
of applicable anti-corruption or anti-bribery laws and the
Company's ability to repatriate cash from non-U.S. affiliates
without adverse tax consequences;
- risks relating to tax laws, including those that affect the
Company's ability to recapture accelerated tax depreciation and
expensing, as well as any adverse determinations or rulings by tax
authorities;
- the Company's ability to utilize its net operating loss
carryforwards;
- the Company's exposure to uninsured liabilities relating to
personal injury, death and property damage, or otherwise, including
material litigation;
- the potential for adverse changes in laws, regulations,
policies or other activities of governments, agencies and similar
organizations, including those related to environmental matters,
optional insurance products or policies, franchising and licensing
matters, the ability to pass-through rental car related expenses or
taxes, among others, that affect the Company's operations, the
Company's costs or applicable tax rates;
- the risk of an impairment of the Company's long-lived
assets, which risk could be impacted by, among other things, the
timing of our fleet rotation;
- the Company's ability to recover its goodwill and
indefinite-lived intangible assets when performing impairment
analysis;
- the potential for changes in management's best estimates and
assessments;
- the Company's ability to maintain an effective compliance
program;
- the availability of earnings and funds from the Company's
subsidiaries;
- the Company's ability to comply, and the cost and burden of
complying, with corporate and social responsibility regulations or
expectations of stakeholders, and otherwise advance the Company's
corporate responsibility priorities;
- the availability of additional, or continued sources, of
financing at acceptable rates for the Company's revenue earning
vehicles and to refinance the Company's existing indebtedness, and
the Company's ability to comply with the covenants in the
agreements governing its indebtedness;
- the extent to which the Company's consolidated assets secure
its outstanding indebtedness;
- volatility in the Company's share price, the Company's
ownership structure and certain provisions of the Company's charter
documents, which could, among other things, negatively affect the
market price of the Company's common stock;
- the Company's ability to implement an effective business
continuity plan to protect the business in exigent
circumstances;
- the Company's ability to effectively maintain effective
internal control over financial reporting; and
- the Company's ability to execute strategic
transactions.
Additional information concerning these and other factors can be
found in the Company's filings with the SEC, including its Annual
Reports on Form 10-K, Quartely Reports on Form 10-Q and Current
Reports on Form 8-K
You should not place undue reliance on forward-looking
statements. All forward-looking statements attributable to the
Company, or persons acting on its behalf, are expressly qualified
in their entirety by the foregoing cautionary statements. All such
statements speak only as of the date of this release, and, except
as required by law, the Company undertakes no obligation to update
or revise publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.
|
UNAUDITED FINANCIAL
INFORMATION
|
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
(In millions, except per share
data)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenues
|
$
2,040
|
|
$
2,184
|
|
$
9,049
|
|
$
9,371
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Direct vehicle and
operating
|
1,413
|
|
1,388
|
|
5,689
|
|
5,455
|
|
Depreciation of
revenue earning vehicles and lease charges, net
|
670
|
|
828
|
|
3,611
|
|
2,039
|
|
Depreciation and
amortization of non-vehicle assets
|
32
|
|
49
|
|
139
|
|
149
|
|
Selling, general and
administrative
|
225
|
|
247
|
|
819
|
|
962
|
|
Interest expense,
net:
|
|
|
|
|
|
|
|
|
Vehicle
|
143
|
|
150
|
|
590
|
|
555
|
|
Non-vehicle
|
117
|
|
68
|
|
369
|
|
238
|
|
Total interest
expense, net
|
260
|
|
218
|
|
959
|
|
793
|
|
Other (income)
expense, net
|
2
|
|
—
|
|
4
|
|
12
|
|
(Gain) on sale of
non-vehicle capital assets
|
—
|
|
—
|
|
—
|
|
(162)
|
|
Bankruptcy-related
litigation reserve
|
4
|
|
—
|
|
292
|
|
—
|
|
Long-Lived Assets
impairment
|
—
|
|
—
|
|
1,048
|
|
—
|
|
Change in fair value
of Public Warrants
|
(3)
|
|
(53)
|
|
(275)
|
|
(163)
|
|
Total
expenses
|
2,603
|
|
2,677
|
|
12,286
|
|
9,085
|
|
Income (loss) before
income taxes
|
(563)
|
|
(493)
|
|
(3,237)
|
|
286
|
|
Income tax (provision)
benefit
|
84
|
|
145
|
|
375
|
|
330
|
|
Net income
(loss)
|
$
(479)
|
|
$
(348)
|
|
$
(2,862)
|
|
$
616
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
307
|
|
306
|
|
306
|
|
313
|
|
Diluted
|
307
|
|
306
|
|
306
|
|
326
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
(1.56)
|
|
$
(1.14)
|
|
$
(9.34)
|
|
$
1.97
|
|
Diluted
|
$
(1.56)
|
|
$
(1.14)
|
|
$
(9.34)
|
|
$
1.39
|
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
|
|
(In millions, except par value and share
data)
|
December 31,
2024
|
|
December 31,
2023
|
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
592
|
|
$
764
|
|
Restricted cash and
cash equivalents:
|
|
|
|
|
Vehicle
|
258
|
|
152
|
|
Non-vehicle
|
283
|
|
290
|
|
Total restricted cash
and cash equivalents
|
541
|
|
442
|
|
Total cash and cash
equivalents and restricted cash and cash equivalents
|
1,133
|
|
1,206
|
|
Receivables:
|
|
|
|
|
Vehicle
|
389
|
|
211
|
|
Non-vehicle, net of
allowance of $58 and $47, respectively
|
816
|
|
980
|
|
Total receivables,
net
|
1,205
|
|
1,191
|
|
Prepaid expenses and
other assets
|
894
|
|
726
|
|
Revenue earning
vehicles:
|
|
|
|
|
Vehicles
|
12,714
|
|
16,806
|
|
Less: accumulated
depreciation
|
(751)
|
|
(2,155)
|
|
Total revenue earning
vehicles, net
|
11,963
|
|
14,651
|
|
Property and equipment,
net
|
623
|
|
671
|
|
Operating lease
right-of-use assets
|
2,088
|
|
2,253
|
|
Intangible assets,
net
|
2,852
|
|
2,863
|
|
Goodwill
|
1,044
|
|
1,044
|
|
Total
assets
|
$
21,802
|
|
$
24,605
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
Accounts
payable:
|
|
|
|
|
Vehicle
|
$
161
|
|
$
191
|
|
Non-vehicle
|
481
|
|
510
|
|
Total accounts
payable
|
642
|
|
701
|
|
Accrued
liabilities
|
1,174
|
|
860
|
|
Accrued taxes,
net
|
158
|
|
157
|
|
Debt:
|
|
|
|
|
Vehicle
|
11,231
|
|
12,242
|
|
Non-vehicle
|
5,104
|
|
3,449
|
|
Total debt
|
16,335
|
|
15,691
|
|
Public
Warrants
|
178
|
|
453
|
|
Operating lease
liabilities
|
2,073
|
|
2,142
|
|
Self-insured
liabilities
|
617
|
|
471
|
|
Deferred income taxes,
net
|
472
|
|
1,038
|
|
Total
liabilities
|
21,649
|
|
21,513
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock,
$0.01 par value, no shares issued and outstanding
|
—
|
|
—
|
|
Common stock,
$0.01 par value, 481,502,623 and 479,990,286 shares issued,
respectively, and
306,690,579 and 305,178,242 shares
outstanding, respectively
|
5
|
|
5
|
|
Treasury stock,
at cost, 174,812,044 and 174,812,044 common shares,
respectively
|
(3,430)
|
|
(3,430)
|
|
Additional
paid-in capital
|
6,396
|
|
6,405
|
|
Retained
earnings (Accumulated deficit)
|
(2,502)
|
|
360
|
|
Accumulated
other comprehensive income (loss)
|
(316)
|
|
(248)
|
|
Total
stockholders' equity
|
153
|
|
3,092
|
|
Total
liabilities and stockholders' equity
|
$
21,802
|
|
$
24,605
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
(In millions)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(479)
|
|
$
(348)
|
|
$
(2,862)
|
|
$
616
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
reserves for revenue earning vehicles, net
|
764
|
|
932
|
|
3,983
|
|
2,422
|
|
Depreciation and
amortization, non-vehicle
|
32
|
|
49
|
|
139
|
|
149
|
|
Amortization of
deferred financing costs and debt discount (premium)
|
20
|
|
17
|
|
74
|
|
61
|
|
Stock-based
compensation charges
|
15
|
|
22
|
|
63
|
|
87
|
|
Stock-based
compensation forfeitures
|
—
|
|
—
|
|
(68)
|
|
—
|
|
Provision for
receivables allowance
|
26
|
|
26
|
|
120
|
|
93
|
|
Deferred income taxes,
net
|
(80)
|
|
(144)
|
|
(459)
|
|
(380)
|
|
Long-Lived Assets
impairment
|
—
|
|
—
|
|
1,048
|
|
—
|
|
(Gain) loss on sale of
non-vehicle capital assets
|
(1)
|
|
3
|
|
3
|
|
(162)
|
|
Change in fair value
of Public Warrants
|
(3)
|
|
(53)
|
|
(275)
|
|
(163)
|
|
Changes in financial
instruments
|
15
|
|
10
|
|
7
|
|
117
|
|
Other
|
(24)
|
|
(4)
|
|
(29)
|
|
5
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Non-vehicle
receivables
|
68
|
|
167
|
|
23
|
|
(216)
|
|
Prepaid expenses and
other assets
|
28
|
|
56
|
|
8
|
|
(39)
|
|
Operating lease
right-of-use assets
|
105
|
|
112
|
|
386
|
|
365
|
|
Non-vehicle accounts
payable
|
4
|
|
(75)
|
|
(14)
|
|
(48)
|
|
Accrued
liabilities
|
14
|
|
(42)
|
|
324
|
|
(39)
|
|
Accrued taxes,
net
|
(46)
|
|
(42)
|
|
18
|
|
3
|
|
Operating lease
liabilities
|
(109)
|
|
(116)
|
|
(417)
|
|
(391)
|
|
Self-insured
liabilities
|
65
|
|
(6)
|
|
152
|
|
(6)
|
|
Net cash provided by
(used in) operating activities
|
414
|
|
564
|
|
2,224
|
|
2,474
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Revenue earning
vehicles expenditures
|
(2,666)
|
|
(1,202)
|
|
(10,524)
|
|
(9,514)
|
|
Proceeds from disposal
of revenue earning vehicles
|
3,022
|
|
1,320
|
|
7,678
|
|
5,498
|
|
Non-vehicle capital
asset expenditures
|
(24)
|
|
(37)
|
|
(105)
|
|
(188)
|
|
Proceeds from
non-vehicle capital assets disposed of
|
4
|
|
3
|
|
23
|
|
181
|
|
Return of (investment
in) equity investments
|
2
|
|
—
|
|
(1)
|
|
(1)
|
|
Net cash provided by
(used in) investing activities
|
338
|
|
84
|
|
(2,929)
|
|
(4,024)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of vehicle debt
|
614
|
|
302
|
|
3,873
|
|
6,043
|
|
Repayments of vehicle
debt
|
(1,547)
|
|
(1,098)
|
|
(4,827)
|
|
(4,837)
|
|
Proceeds from issuance
of non-vehicle debt
|
1,176
|
|
840
|
|
4,646
|
|
2,490
|
|
Repayments of
non-vehicle debt
|
(732)
|
|
(505)
|
|
(2,966)
|
|
(2,018)
|
|
Payment of financing
costs
|
(9)
|
|
(10)
|
|
(64)
|
|
(41)
|
|
Share
repurchases
|
—
|
|
(43)
|
|
—
|
|
(315)
|
|
Other
|
—
|
|
(6)
|
|
(4)
|
|
(9)
|
|
Net cash provided by
(used in) financing activities
|
(498)
|
|
(520)
|
|
658
|
|
1,313
|
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents and restricted cash and cash
equivalents
|
(26)
|
|
22
|
|
(26)
|
|
25
|
|
Net increase (decrease)
in cash and cash equivalents and restricted cash and
cash equivalents during the period
|
228
|
|
150
|
|
(73)
|
|
(212)
|
|
Cash and cash
equivalents and restricted cash and cash equivalents at
beginning of period
|
905
|
|
1,056
|
|
1,206
|
|
1,418
|
|
Cash and cash
equivalents and restricted cash and cash equivalents at end of
period
|
$
1,133
|
|
$
1,206
|
|
$
1,133
|
|
$
1,206
|
|
Supplemental
Schedule I
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
|
CONDENSED STATEMENT
OF OPERATIONS BY SEGMENT
|
|
Unaudited
|
|
|
Three Months Ended December 31,
2024
|
|
Three Months Ended December 31,
2023
|
|
(In millions)
|
Americas
RAC
|
|
International
RAC
|
|
Corporate
|
|
Hertz Global
|
|
Americas
RAC
|
|
International
RAC
|
|
Corporate
|
|
Hertz Global
|
|
Revenues
|
$
1,669
|
|
$
371
|
|
$
—
|
|
$
2,040
|
|
$
1,805
|
|
$
379
|
|
$
—
|
|
$
2,184
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct vehicle and
operating
|
1,173
|
|
240
|
|
—
|
|
1,413
|
|
1,163
|
|
229
|
|
(4)
|
|
1,388
|
|
Depreciation of revenue
earning vehicles and lease
charges, net
|
595
|
|
75
|
|
—
|
|
670
|
|
740
|
|
88
|
|
—
|
|
828
|
|
Depreciation and
amortization of non-vehicle assets
|
28
|
|
3
|
|
1
|
|
32
|
|
43
|
|
3
|
|
3
|
|
49
|
|
Selling, general and
administrative
|
108
|
|
84
|
|
33
|
|
225
|
|
134
|
|
105
|
|
8
|
|
247
|
|
Interest expense,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
|
116
|
|
27
|
|
—
|
|
143
|
|
118
|
|
32
|
|
—
|
|
150
|
|
Non-vehicle
|
(1)
|
|
(4)
|
|
122
|
|
117
|
|
4
|
|
(3)
|
|
67
|
|
68
|
|
Total interest
expense, net
|
115
|
|
23
|
|
122
|
|
260
|
|
122
|
|
29
|
|
67
|
|
218
|
|
Other (income) expense,
net
|
(2)
|
|
—
|
|
4
|
|
2
|
|
2
|
|
1
|
|
(3)
|
|
—
|
|
Bankruptcy-related
litigation reserve
|
—
|
|
—
|
|
4
|
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Change in fair value of
Public Warrants
|
—
|
|
—
|
|
(3)
|
|
(3)
|
|
—
|
|
—
|
|
(53)
|
|
(53)
|
|
Total
expenses
|
2,017
|
|
425
|
|
161
|
|
2,603
|
|
2,204
|
|
455
|
|
18
|
|
2,677
|
|
Income (loss) before
income taxes
|
$
(348)
|
|
$
(54)
|
|
$
(161)
|
|
$
(563)
|
|
$
(399)
|
|
$
(76)
|
|
$
(18)
|
|
(493)
|
|
Income tax (provision)
benefit
|
|
|
|
|
|
|
84
|
|
|
|
|
|
|
|
145
|
|
Net income
(loss)
|
|
|
|
|
|
|
$
(479)
|
|
|
|
|
|
|
|
$
(348)
|
|
Supplemental
Schedule I (continued)
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
|
CONDENSED STATEMENT
OF OPERATIONS BY SEGMENT
|
|
Unaudited
|
|
|
Twelve Months Ended December 31,
2024
|
|
Twelve Months Ended December 31,
2023
|
|
(In millions)
|
Americas
RAC
|
|
International
RAC
|
|
Corporate
|
|
Hertz Global
|
|
Americas
RAC
|
|
International
RAC
|
|
Corporate
|
|
Hertz Global
|
|
Revenues
|
$
7,398
|
|
$
1,651
|
|
$
—
|
|
$
9,049
|
|
$
7,722
|
|
$
1,649
|
|
$
—
|
|
$
9,371
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct vehicle and
operating
|
4,726
|
|
971
|
|
(8)
|
|
5,689
|
|
4,582
|
|
880
|
|
(7)
|
|
5,455
|
|
Depreciation of revenue
earning vehicles and lease
charges, net
|
3,198
|
|
413
|
|
—
|
|
3,611
|
|
1,775
|
|
264
|
|
—
|
|
2,039
|
|
Depreciation and
amortization of non-vehicle assets
|
109
|
|
13
|
|
17
|
|
139
|
|
125
|
|
11
|
|
13
|
|
149
|
|
Selling, general and
administrative
|
482
|
|
244
|
|
93
|
|
819
|
|
501
|
|
227
|
|
234
|
|
962
|
|
Interest expense,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
|
479
|
|
111
|
|
—
|
|
590
|
|
456
|
|
99
|
|
—
|
|
555
|
|
Non-vehicle
|
(4)
|
|
(18)
|
|
391
|
|
369
|
|
(22)
|
|
(10)
|
|
270
|
|
238
|
|
Total interest
expense, net
|
475
|
|
93
|
|
391
|
|
959
|
|
434
|
|
89
|
|
270
|
|
793
|
|
Other (income) expense,
net
|
—
|
|
2
|
|
2
|
|
4
|
|
2
|
|
3
|
|
7
|
|
12
|
|
(Gain) on sale of
non-vehicle capital assets
|
—
|
|
—
|
|
—
|
|
—
|
|
(162)
|
|
—
|
|
—
|
|
(162)
|
|
Bankruptcy-related
litigation reserve
|
—
|
|
—
|
|
292
|
|
292
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Long-Lived Assets
impairment
|
865
|
|
183
|
|
—
|
|
1,048
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Change in fair value of
Public Warrants
|
—
|
|
—
|
|
(275)
|
|
(275)
|
|
—
|
|
—
|
|
(163)
|
|
(163)
|
|
Total
expenses
|
9,855
|
|
1,919
|
|
512
|
|
12,286
|
|
7,257
|
|
1,474
|
|
354
|
|
9,085
|
|
Income (loss) before
income taxes
|
$
(2,457)
|
|
$
(268)
|
|
$
(512)
|
|
(3,237)
|
|
$
465
|
|
$
175
|
|
$
(354)
|
|
286
|
|
Income tax (provision)
benefit
|
|
|
|
|
|
|
375
|
|
|
|
|
|
|
|
330
|
|
Net income
(loss)
|
|
|
|
|
|
|
$
(2,862)
|
|
|
|
|
|
|
|
$
616
|
|
Supplemental
Schedule II
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
|
RECONCILIATION OF
GAAP TO NON-GAAP MEASURE - ADJUSTED NET INCOME (LOSS), ADJUSTED
DILUTED EARNINGS (LOSS) PER SHARE AND ADJUSTED
CORPORATE EBITDA
|
|
Unaudited
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
(In millions, except per share
data)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Adjusted Net Income (Loss) and Adjusted Diluted
Earnings (Loss) Per Share:
|
|
|
|
|
|
|
|
|
Net income
(loss)(a)
|
$
(479)
|
|
$
(348)
|
|
$
(2,862)
|
|
$
616
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Income tax
provision (benefit)
|
(84)
|
|
(145)
|
|
(375)
|
|
(330)
|
|
Vehicle and
non-vehicle debt-related charges(b)
|
26
|
|
17
|
|
86
|
|
62
|
|
Restructuring
and restructuring related charges(c)
|
21
|
|
7
|
|
66
|
|
17
|
|
Acquisition
accounting-related depreciation and
amortization(d)
|
1
|
|
1
|
|
2
|
|
2
|
|
Unrealized
(gains) losses on financial instruments(e)
|
15
|
|
10
|
|
7
|
|
117
|
|
(Gain) on sale
of non-vehicle capital assets(f)
|
—
|
|
—
|
|
—
|
|
(162)
|
|
Bankruptcy-related litigation reserve(g)
|
4
|
|
—
|
|
292
|
|
—
|
|
Long-Lived
Assets impairment(h)
|
—
|
|
—
|
|
1,048
|
|
—
|
|
Change in fair
value of Public Warrants
|
(3)
|
|
(53)
|
|
(275)
|
|
(163)
|
|
Other
items(i)(m)
|
16
|
|
19
|
|
62
|
|
43
|
|
Adjusted pre-tax
income (loss)(j)
|
(483)
|
|
(492)
|
|
(1,949)
|
|
202
|
|
Income tax (provision)
benefit on adjusted pre-tax income (loss)(k)
|
121
|
|
74
|
|
487
|
|
(30)
|
|
Adjusted Net Income
(Loss)
|
$
(362)
|
|
$
(418)
|
|
$
(1,462)
|
|
$
172
|
|
Weighted-average
number of diluted shares outstanding
|
307
|
|
306
|
|
306
|
|
326
|
|
Adjusted Diluted
Earnings (Loss) Per Share(l)
|
$
(1.18)
|
|
$
(1.36)
|
|
$
(4.77)
|
|
$
0.53
|
|
Supplemental
Schedule II (continued)
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
(In millions, except per share
data)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Adjusted Corporate EBITDA:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(479)
|
|
$
(348)
|
|
$
(2,862)
|
|
$
616
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Income tax
provision (benefit)
|
(84)
|
|
(145)
|
|
(375)
|
|
(330)
|
|
Non-vehicle
depreciation and amortization
|
32
|
|
49
|
|
139
|
|
149
|
|
Non-vehicle
debt interest, net of interest income
|
109
|
|
68
|
|
375
|
|
238
|
|
Vehicle
debt-related charges(b)
|
12
|
|
11
|
|
45
|
|
42
|
|
Restructuring
and restructuring related charges(c)
|
21
|
|
7
|
|
66
|
|
17
|
|
Unrealized
(gains) losses on financial instruments(e)
|
15
|
|
10
|
|
7
|
|
117
|
|
(Gain) on sale
of non-vehicle capital assets(f)
|
—
|
|
—
|
|
—
|
|
(162)
|
|
Non-cash
stock-based compensation forfeitures(n)
|
—
|
|
—
|
|
(64)
|
|
—
|
|
Bankruptcy-related litigation reserve(g)
|
4
|
|
—
|
|
292
|
|
—
|
|
Long-Lived
Assets impairment(h)
|
—
|
|
—
|
|
1,048
|
|
—
|
|
Change in fair
value of Public Warrants
|
(3)
|
|
(53)
|
|
(275)
|
|
(163)
|
|
Other
items(i)
|
16
|
|
19
|
|
63
|
|
37
|
|
Adjusted Corporate
EBITDA(o)
|
$
(357)
|
|
$
(382)
|
|
$
(1,541)
|
|
$
561
|
|
Adjusted Corporate
EBITDA margin
|
(18) %
|
|
(17) %
|
|
(17) %
|
|
6 %
|
|
|
|
(a)
|
Net income (loss)
margin for the three and twelve months ended December 31, 2024 was
(23)% and (32)%, respectively. Net income (loss) margin for the
three and twelve months ended December 31, 2023 was (16)% and 7%,
respectively.
|
|
(b)
|
Represents debt-related
charges relating to the amortization of deferred financing costs
and debt discounts and premiums, including interest associated with
the Exchangeable Notes issued in June 2024.
|
|
(c)
|
Represents charges
incurred under restructuring actions as defined in U.S. GAAP. Also
includes restructuring related charges such as incremental costs
incurred related to personnel reductions and closure of
underperforming locations.
|
|
(d)
|
Represents incremental
expense associated with the amortization of other intangible assets
and depreciation of property and equipment relating to acquisition
accounting.
|
|
(e)
|
Represents unrealized
gains (losses) on derivative financial instruments. In 2023, also
includes the realization of $88 million of previously unrealized
gains resulting from the unwind of certain interest rate caps in
the first quarter of 2023.
|
|
(f)
|
Represents gain on the
sale of certain non-vehicle capital assets sold in March
2023.
|
|
(g)
|
Represents an increase
to an existing bankruptcy-related litigation reserve recorded in
September 2024, including interest that continues to accrue during
each subsequent reporting period.
|
|
(h)
|
Represents impairment
charges recorded against the Fleet Long-Lived Assets in the third
quarter of 2024.
|
|
(i)
|
Represents
miscellaneous items. For 2024, primarily includes certain
IT-related charges, cloud computing costs and certain storm-related
vehicle damages, partially offset by certain litigation settlements
and a loss recovery settlement. For 2023, primarily includes
certain IT related charges, certain storm-related vehicle damages
and certain professional fees and charges related to the settlement
of bankruptcy claims, partially offset by a loss recovery
settlement.
|
|
(j)
|
The tables below
reconcile expenses as reported in the condensed consolidated
unaudited statement of operations to adjusted expenses utilized in
calculating Adjusted Pretax Income (Loss) and Adjusted Net Income
(Loss), all of which are deemed non-GAAP measures.
|
|
|
|
(in
millions)
|
Three Months Ended December 31,
2024
|
|
Three Months Ended December 31,
2023
|
|
Expenses:
|
As Reported
|
|
Adjustment
|
|
As Adjusted
|
|
As Reported
|
|
Adjustment
|
|
As Adjusted
|
|
Direct vehicle and
operating
|
$
1,413
|
|
$
(6)
|
|
$
1,407
|
|
$
1,388
|
|
$
(6)
|
|
$
1,382
|
|
Depreciation of revenue
earning vehicles and lease charges, net
|
670
|
|
3
|
|
673
|
|
828
|
|
—
|
|
828
|
|
Depreciation and
amortization of non-vehicle assets
|
32
|
|
—
|
|
32
|
|
49
|
|
—
|
|
49
|
|
Selling, general and
administrative
|
225
|
|
(35)
|
|
190
|
|
247
|
|
(13)
|
|
234
|
|
Interest expense,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
|
143
|
|
(11)
|
|
132
|
|
150
|
|
(24)
|
|
126
|
|
Non-vehicle
|
117
|
|
(26)
|
|
91
|
|
68
|
|
(9)
|
|
59
|
|
Total interest
expense, net
|
260
|
|
(37)
|
|
223
|
|
218
|
|
(33)
|
|
185
|
|
Other income (expense),
net
|
2
|
|
(5)
|
|
(3)
|
|
—
|
|
(2)
|
|
(2)
|
|
Bankruptcy-related
litigation reserve
|
4
|
|
(4)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Change in fair value of
Public Warrants
|
(3)
|
|
3
|
|
—
|
|
(53)
|
|
53
|
|
—
|
|
Total
|
$
2,603
|
|
$
(81)
|
|
$
2,522
|
|
$
2,677
|
|
$
(1)
|
|
$
2,676
|
|
(in
millions)
|
Twelve Months Ended December 31,
2024
|
|
Twelve Months Ended December 31,
2023
|
|
Expenses:
|
As Reported
|
|
Adjustment
|
|
As Adjusted
|
|
As Reported
|
|
Adjustment
|
|
As Adjusted
|
|
Direct vehicle and
operating
|
$
5,689
|
|
$
(31)
|
|
$
5,658
|
|
$
5,455
|
|
$
(6)
|
|
$
5,449
|
|
Depreciation of revenue
earning vehicles and lease charges, net
|
3,611
|
|
8
|
|
3,619
|
|
2,039
|
|
5
|
|
2,044
|
|
Depreciation and
amortization of non-vehicle assets
|
139
|
|
—
|
|
139
|
|
149
|
|
—
|
|
149
|
|
Selling, general and
administrative
|
819
|
|
(96)
|
|
723
|
|
962
|
|
(38)
|
|
924
|
|
Interest expense,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
|
590
|
|
(50)
|
|
540
|
|
555
|
|
(163)
|
|
392
|
|
Non-vehicle
|
369
|
|
(51)
|
|
318
|
|
238
|
|
(34)
|
|
204
|
|
Total interest
expense, net
|
959
|
|
(101)
|
|
858
|
|
793
|
|
(197)
|
|
596
|
|
Other income (expense),
net
|
4
|
|
(2)
|
|
2
|
|
12
|
|
(5)
|
|
7
|
|
Gain on sale
non-vehicle capital assets
|
—
|
|
—
|
|
—
|
|
(162)
|
|
162
|
|
—
|
|
Bankruptcy-related
litigation reserve
|
292
|
|
(292)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Long-Lived Assets
impairment
|
1,048
|
|
(1,048)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Change in fair value of
Public Warrants
|
(275)
|
|
275
|
|
—
|
|
(163)
|
|
163
|
|
—
|
|
Total
|
$
12,286
|
|
$
(1,287)
|
|
$
10,999
|
|
$
9,085
|
|
$
84
|
|
$
9,169
|
|
|
|
(k)
|
Derived utilizing a
combined statutory rate of 25% and 15% for the three and twelve
months ended December 31, 2024 and 2023, respectively, applied to
the respective Adjusted Pre-tax Income (Loss). The increase in rate
is primarily resulting from reduced EV-related tax credits
anticipated to be used to decrease the Company's U.S. federal tax
provision throughout 2024 based on the Company's expected purchases
of electric vehicles.
|
|
(l)
|
Adjustments used to
reconcile diluted earnings (loss) per share on a GAAP basis to
Adjusted Diluted Earnings (Loss) Per Share are comprised of the
same adjustments, inclusive of the tax impact, used to reconcile
net income (loss) to Adjusted Net Income (Loss) divided by the
weighted-average diluted shares outstanding during the
period.
|
|
(m)
|
Also includes letter of
credit fees.
|
|
(n)
|
Represents former CEO
awards forfeited in March 2024.
|
|
|
|
Supplemental
Schedule II (continued)
|
|
|
|
(o)
|
The tables below
reconcile expenses as reported in the condensed consolidated
unaudited statement of operations to adjusted expenses utilized in
calculating Adjusted Corporate EBITDA, both of which are deemed
non-GAAP measures.
|
|
|
|
(in
millions)
|
Three Months Ended December 31,
2024
|
|
Three Months Ended December 31,
2023
|
|
Expenses:
|
As Reported
|
|
Adjustment
|
|
As Adjusted
|
|
As Reported
|
|
Adjustment
|
|
As Adjusted
|
|
Direct vehicle and
operating
|
$
1,413
|
|
$
(6)
|
|
$
1,407
|
|
$
1,388
|
|
$
(6)
|
|
$
1,382
|
|
Depreciation of revenue
earning vehicles and lease charges, net
|
670
|
|
3
|
|
673
|
|
828
|
|
—
|
|
828
|
|
Depreciation and
amortization of non-vehicle assets
|
32
|
|
(32)
|
|
—
|
|
49
|
|
(49)
|
|
—
|
|
Selling, general and
administrative
|
225
|
|
(35)
|
|
190
|
|
247
|
|
(13)
|
|
234
|
|
Interest expense,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
|
143
|
|
(11)
|
|
132
|
|
150
|
|
(24)
|
|
126
|
|
Non-vehicle
|
117
|
|
(117)
|
|
—
|
|
68
|
|
(68)
|
|
—
|
|
Total interest
expense, net
|
260
|
|
(128)
|
|
132
|
|
218
|
|
(92)
|
|
126
|
|
Other income (expense),
net
|
2
|
|
(8)
|
|
(6)
|
|
—
|
|
(4)
|
|
(4)
|
|
Bankruptcy-related
litigation reserve
|
4
|
|
(4)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Change in fair value of
Public Warrants
|
(3)
|
|
3
|
|
—
|
|
(53)
|
|
53
|
|
—
|
|
Total
expenses
|
$
2,603
|
|
$
(207)
|
|
$
2,396
|
|
$
2,677
|
|
$
(111)
|
|
$
2,566
|
|
(in
millions)
|
Twelve Months Ended December 31,
2024
|
|
Twelve Months Ended December 31,
2023
|
|
Expenses:
|
As Reported
|
|
Adjustment
|
|
As Adjusted
|
|
As Reported
|
|
Adjustment
|
|
As Adjusted
|
|
Direct vehicle and
operating
|
$
5,689
|
|
$
(31)
|
|
$
5,658
|
|
$
5,455
|
|
$
(6)
|
|
$
5,449
|
|
Depreciation of revenue
earning vehicles and lease charges, net
|
3,611
|
|
8
|
|
3,619
|
|
2,039
|
|
5
|
|
2,044
|
|
Depreciation and
amortization of non-vehicle assets
|
139
|
|
(139)
|
|
—
|
|
149
|
|
(149)
|
|
—
|
|
Selling, general and
administrative
|
819
|
|
(33)
|
|
786
|
|
962
|
|
(38)
|
|
924
|
|
Interest expense,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
|
590
|
|
(50)
|
|
540
|
|
555
|
|
(165)
|
|
390
|
|
Non-vehicle
|
369
|
|
(369)
|
|
—
|
|
238
|
|
(238)
|
|
—
|
|
Total interest
expense, net
|
959
|
|
(419)
|
|
540
|
|
793
|
|
(403)
|
|
390
|
|
Other income (expense),
net
|
4
|
|
(17)
|
|
(13)
|
|
12
|
|
(9)
|
|
3
|
|
Gain on sale
non-vehicle capital assets
|
—
|
|
—
|
|
—
|
|
(162)
|
|
162
|
|
—
|
|
Bankruptcy-related
litigation reserve
|
292
|
|
(292)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Long-Lived Assets
impairment
|
1,048
|
|
(1,048)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Change in fair value of
Public Warrants
|
(275)
|
|
275
|
|
—
|
|
(163)
|
|
163
|
|
—
|
|
Total
expenses
|
$
12,286
|
|
$
(1,696)
|
|
$
10,590
|
|
$
9,085
|
|
$
(275)
|
|
$
8,810
|
|
Supplemental
Schedule III
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
|
RECONCILIATION OF
GAAP TO NON-GAAP MEASURE - ADJUSTED OPERATING CASH
FLOW
AND ADJUSTED FREE CASH FLOW
|
|
Unaudited
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
(In millions)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH
FLOW:
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
$
414
|
|
$
564
|
|
$
2,224
|
|
$
2,474
|
|
Depreciation and
reserves for revenue earning vehicles, net
|
(764)
|
|
(932)
|
|
(3,983)
|
|
(2,422)
|
|
Bankruptcy related
payments (post emergence) and other payments
|
—
|
|
2
|
|
4
|
|
(8)
|
|
Adjusted operating cash
flow
|
(350)
|
|
(366)
|
|
(1,755)
|
|
44
|
|
Non-vehicle capital
asset proceeds (expenditures), net
|
(21)
|
|
(34)
|
|
(83)
|
|
(7)
|
|
Adjusted operating cash
flow before vehicle investment
|
(371)
|
|
(400)
|
|
(1,838)
|
|
37
|
|
Net fleet growth after
financing
|
39
|
|
272
|
|
70
|
|
(358)
|
|
Adjusted free cash
flow
|
$
(332)
|
|
$
(128)
|
|
$
(1,768)
|
|
$
(321)
|
|
|
|
|
|
|
|
|
|
CALCULATION OF NET FLEET GROWTH AFTER
FINANCING:
|
|
|
|
|
|
|
|
|
Revenue earning
vehicles expenditures
|
$
(2,666)
|
|
$
(1,202)
|
|
$
(10,524)
|
|
$
(9,514)
|
|
Proceeds from disposal
of revenue earning vehicles
|
3,022
|
|
1,320
|
|
7,678
|
|
5,498
|
|
Revenue earning
vehicles capital expenditures, net
|
356
|
|
118
|
|
(2,846)
|
|
(4,016)
|
|
Depreciation and
reserves for revenue earning vehicles, net
|
764
|
|
932
|
|
3,983
|
|
2,422
|
|
Financing activity
related to vehicles:
|
|
|
|
|
|
|
|
|
Borrowings
|
614
|
|
302
|
|
3,873
|
|
6,043
|
|
Payments
|
(1,547)
|
|
(1,098)
|
|
(4,827)
|
|
(4,837)
|
|
Restricted cash
changes, vehicle
|
(148)
|
|
18
|
|
(113)
|
|
30
|
|
Net financing activity
related to vehicles
|
(1,081)
|
|
(778)
|
|
(1,067)
|
|
1,236
|
|
Net fleet growth after
financing
|
$
39
|
|
$
272
|
|
$
70
|
|
$
(358)
|
|
Supplemental
Schedule IV
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
|
NET DEBT
CALCULATION
|
|
Unaudited
|
|
|
As of December 31, 2024
|
|
As of December 31, 2023
|
|
(In millions)
|
Vehicle
|
|
Non-Vehicle
|
|
Total
|
|
Vehicle
|
|
Non-Vehicle
|
|
Total
|
|
First Lien
RCF
|
$
—
|
|
$
175
|
|
$
175
|
|
$
—
|
|
$
—
|
|
$
—
|
|
Term loans
|
—
|
|
1,995
|
|
1,995
|
|
—
|
|
2,013
|
|
2,013
|
|
First lien senior
notes
|
—
|
|
1,250
|
|
1,250
|
|
—
|
|
—
|
|
—
|
|
Exchangeable
notes
|
—
|
|
250
|
|
250
|
|
—
|
|
—
|
|
—
|
|
Senior unsecured
notes
|
—
|
|
1,500
|
|
1,500
|
|
—
|
|
1,500
|
|
1,500
|
|
U.S. vehicle financing
(HVF III)
|
9,431
|
|
—
|
|
9,431
|
|
10,203
|
|
—
|
|
10,203
|
|
International vehicle
financing (Various)
|
1,752
|
|
—
|
|
1,752
|
|
2,001
|
|
—
|
|
2,001
|
|
Other debt
|
97
|
|
—
|
|
97
|
|
110
|
|
2
|
|
112
|
|
Debt issue costs,
discounts and premiums
|
(49)
|
|
(66)
|
|
(115)
|
|
(72)
|
|
(66)
|
|
(138)
|
|
Debt as reported in the
balance sheet
|
11,231
|
|
5,104
|
|
16,335
|
|
12,242
|
|
3,449
|
|
15,691
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt issue costs,
discounts and premiums
|
49
|
|
66
|
|
115
|
|
72
|
|
66
|
|
138
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
—
|
|
592
|
|
592
|
|
—
|
|
764
|
|
764
|
|
Restricted
cash
|
258
|
|
—
|
|
258
|
|
152
|
|
—
|
|
152
|
|
Restricted cash and
restricted cash
equivalents associated with Term C
Loan
|
—
|
|
245
|
|
245
|
|
—
|
|
245
|
|
245
|
|
Net Debt
|
$
11,022
|
|
$
4,333
|
|
$
15,355
|
|
$
12,162
|
|
$
2,506
|
|
$
14,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTM Adjusted Corporate
EBITDA
|
|
|
(1,541)
|
|
|
|
|
|
561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Corporate
Leverage
|
|
|
(2.8)x
|
|
|
|
|
|
4.5x
|
|
|
|
Supplemental
Schedule V
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
|
KEY METRICS
CALCULATIONS
|
|
REVENUE, UTILIZATION
AND DEPRECIATION
|
|
Unaudited
|
|
|
Global
RAC
|
|
|
Three Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
Twelve Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
($ in millions, except where noted)
|
2024
|
|
2023
|
|
|
2024
|
|
2023
|
|
|
Total RPD
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
2,040
|
|
$
2,184
|
|
|
|
$
9,049
|
|
$
9,371
|
|
|
|
Foreign currency
adjustment(a)
|
15
|
|
16
|
|
|
|
51
|
|
47
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
2,055
|
|
$
2,200
|
|
|
|
$
9,100
|
|
$
9,418
|
|
|
|
Transaction Days (in
thousands)
|
35,998
|
|
37,602
|
|
|
|
153,871
|
|
154,189
|
|
|
|
Total RPD (in
dollars)
|
$
57.10
|
|
$
58.50
|
|
(2) %
|
|
$
59.14
|
|
$
61.09
|
|
(3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue Per Unit Per
Month
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
2,055
|
|
$
2,200
|
|
|
|
$
9,100
|
|
$
9,418
|
|
|
|
Average Rentable
Vehicles (in whole units)
|
497,875
|
|
527,267
|
|
|
|
530,679
|
|
526,659
|
|
|
|
Total revenue per unit
(in whole dollars)
|
$
4,128
|
|
$
4,172
|
|
|
|
$ 17,148
|
|
$ 17,883
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
|
Total RPU Per Month (in
whole dollars)
|
$
1,376
|
|
$
1,391
|
|
(1) %
|
|
$
1,429
|
|
$
1,490
|
|
(4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle Utilization
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction Days (in
thousands)
|
35,998
|
|
37,602
|
|
|
|
153,871
|
|
154,189
|
|
|
|
Average Rentable
Vehicles (in whole units)
|
497,875
|
|
527,267
|
|
|
|
530,679
|
|
526,659
|
|
|
|
Number of days in
period (in whole units)
|
92
|
|
92
|
|
|
|
366
|
|
365
|
|
|
|
Available Car Days (in
thousands)
|
45,805
|
|
48,511
|
|
|
|
194,257
|
|
192,334
|
|
|
|
Vehicle
Utilization(b)
|
79 %
|
|
78 %
|
|
|
|
79 %
|
|
80 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation Per Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of revenue
earning vehicles and lease
charges, net
|
$
670
|
|
$
828
|
|
|
|
$
3,611
|
|
$
2,039
|
|
|
|
Foreign currency
adjustment(a)
|
4
|
|
3
|
|
|
|
15
|
|
9
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and
lease charges
|
$
674
|
|
$
831
|
|
|
|
$
3,626
|
|
$
2,048
|
|
|
|
Average Vehicles (in
whole units)
|
532,884
|
|
553,545
|
|
|
|
560,279
|
|
552,460
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and
lease charges divided by Average Vehicles (in
whole
dollars)
|
$
1,265
|
|
$
1,502
|
|
|
|
$
6,471
|
|
$
3,707
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
|
Depreciation Per Unit
Per Month (in whole dollars)
|
$
422
|
|
$
501
|
|
(16) %
|
|
$
539
|
|
$
309
|
|
75 %
|
|
|
Note: Global RAC
represents Americas RAC and International RAC segment information
on a combined basis and excludes Corporate
|
|
NM - Not
meaningful
|
|
(a)
|
Based on December 31,
2023 foreign exchange rates.
|
|
(b)
|
Calculated as
Transaction Days divided by Available Car Days.
|
|
Supplemental
Schedule V (continued)
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
|
KEY METRICS
CALCULATIONS
|
|
REVENUE, UTILIZATION
AND DEPRECIATION
|
|
Unaudited
|
|
|
Americas
RAC
|
|
|
Three Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
Twelve Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
($ in millions, except where noted)
|
2024
|
|
2023
|
|
|
2024
|
|
2023
|
|
|
Total RPD
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
1,669
|
|
$
1,805
|
|
|
|
$
7,398
|
|
$
7,722
|
|
|
|
Foreign currency
adjustment(a)
|
3
|
|
2
|
|
|
|
11
|
|
6
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
1,672
|
|
$
1,807
|
|
|
|
$
7,409
|
|
$
7,728
|
|
|
|
Transaction Days (in
thousands)
|
29,298
|
|
30,589
|
|
|
|
124,767
|
|
125,215
|
|
|
|
Total RPD (in
dollars)
|
$
57.06
|
|
$
59.07
|
|
(3) %
|
|
$
59.38
|
|
$
61.73
|
|
(4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue Per Unit Per
Month
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
1,672
|
|
$
1,807
|
|
|
|
$
7,409
|
|
$
7,728
|
|
|
|
Average Rentable
Vehicles (in whole units)
|
399,927
|
|
422,155
|
|
|
|
426,017
|
|
422,485
|
|
|
|
Total revenue per unit
(in whole dollars)
|
$
4,180
|
|
$
4,280
|
|
|
|
$ 17,390
|
|
$ 18,292
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
|
Total RPU Per Month (in
whole dollars)
|
$
1,393
|
|
$
1,427
|
|
(2) %
|
|
$
1,449
|
|
$
1,524
|
|
(5) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle Utilization
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction Days (in
thousands)
|
29,298
|
|
30,589
|
|
|
|
124,767
|
|
125,215
|
|
|
|
Average Rentable
Vehicles (in whole units)
|
399,927
|
|
422,155
|
|
|
|
426,017
|
|
422,485
|
|
|
|
Number of days in
period (in whole units)
|
92
|
|
92
|
|
|
|
366
|
|
365
|
|
|
|
Available Car Days (in
thousands)
|
36,792
|
|
38,839
|
|
|
|
155,935
|
|
154,272
|
|
|
|
Vehicle
Utilization(b)
|
80 %
|
|
79 %
|
|
|
|
80 %
|
|
81 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation Per Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of revenue
earning vehicles and lease
charges, net
|
$
595
|
|
$
740
|
|
|
|
$
3,198
|
|
$
1,775
|
|
|
|
Foreign currency
adjustment(a)
|
2
|
|
—
|
|
|
|
5
|
|
2
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and
lease charges
|
$
597
|
|
$
740
|
|
|
|
$
3,203
|
|
$
1,777
|
|
|
|
Average Vehicles (in
whole units)
|
432,909
|
|
446,573
|
|
|
|
453,706
|
|
446,219
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and
lease charges divided by Average Vehicles (in
whole
dollars)
|
$
1,379
|
|
$
1,658
|
|
|
|
$
7,060
|
|
$
3,983
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
|
Depreciation Per Unit
Per Month (in whole dollars)
|
$
460
|
|
$
553
|
|
(17) %
|
|
$
588
|
|
$
332
|
|
77 %
|
|
|
|
NM - Not
meaningful
|
|
(a)
|
Based on December 31,
2023 foreign exchange rates.
|
|
(b)
|
Calculated as
Transaction Days divided by Available Car Days.
|
|
Supplemental
Schedule V (continued)
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
|
KEY METRICS
CALCULATIONS
|
|
REVENUE, UTILIZATION
AND DEPRECIATION
|
|
Unaudited
|
|
|
International
RAC
|
|
|
Three Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
Twelve Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
($
in millions, except where noted)
|
2024
|
|
2023
|
|
|
2024
|
|
2023
|
|
|
Total RPD
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
371
|
|
$
379
|
|
|
|
$
1,651
|
|
$
1,649
|
|
|
|
Foreign currency
adjustment(a)
|
13
|
|
14
|
|
|
|
40
|
|
41
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
384
|
|
$
393
|
|
|
|
$
1,691
|
|
$
1,690
|
|
|
|
Transaction Days (in
thousands)
|
6,700
|
|
7,013
|
|
|
|
29,104
|
|
28,974
|
|
|
|
Total RPD (in
dollars)
|
$
57.26
|
|
$
56.03
|
|
2 %
|
|
$
58.11
|
|
$
58.33
|
|
— %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue Per Unit Per
Month
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
384
|
|
$
393
|
|
|
|
$
1,691
|
|
$
1,690
|
|
|
|
Average Rentable
Vehicles (in whole units)
|
97,948
|
|
105,112
|
|
|
|
104,661
|
|
104,173
|
|
|
|
Total revenue per unit
(in whole dollars)
|
$
3,916
|
|
$
3,738
|
|
|
|
$ 16,160
|
|
$ 16,224
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
|
Total RPU Per Month (in
whole dollars)
|
$
1,305
|
|
$
1,246
|
|
5 %
|
|
$
1,347
|
|
$
1,352
|
|
— %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle Utilization
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction Days (in
thousands)
|
6,700
|
|
7,013
|
|
|
|
29,104
|
|
28,974
|
|
|
|
Average Rentable
Vehicles (in whole units)
|
97,948
|
|
105,112
|
|
|
|
104,661
|
|
104,173
|
|
|
|
Number of days in
period (in whole units)
|
92
|
|
92
|
|
|
|
366
|
|
365
|
|
|
|
Available Car Days (in
thousands)
|
9,013
|
|
9,672
|
|
|
|
38,321
|
|
38,061
|
|
|
|
Vehicle Utilization
(b)
|
74 %
|
|
73 %
|
|
|
|
76 %
|
|
76 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation Per Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of revenue
earning vehicles and lease
charges, net
|
$
75
|
|
$
88
|
|
|
|
$
413
|
|
$
264
|
|
|
|
Foreign currency
adjustment(a)
|
2
|
|
3
|
|
|
|
10
|
|
7
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and
lease charges
|
$
77
|
|
$
91
|
|
|
|
$
423
|
|
$
271
|
|
|
|
Average Vehicles (in
whole units)
|
99,975
|
|
106,972
|
|
|
|
106,573
|
|
106,240
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and
lease charges divided by Average Vehicles (in
whole
dollars)
|
$
773
|
|
$
850
|
|
|
|
$
3,968
|
|
$
2,548
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
|
Depreciation Per Unit
Per Month (in whole dollars)
|
$
258
|
|
$
283
|
|
(9) %
|
|
$
331
|
|
$
212
|
|
56 %
|
|
|
|
NM - Not
meaningful
|
|
(a)
|
Based on December 31,
2023 foreign exchange rates.
|
|
(b)
|
Calculated as
Transaction Days divided by Available Car Days.
|
NON-GAAP MEASURES AND KEY METRICS
The term "GAAP" refers to accounting principles generally
accepted in the United States.
Adjusted EBITDA is the Company's segment measure of profitability
and complies with GAAP when used in that context.
NON-GAAP MEASURES
Non-GAAP measures are not recognized measurements under GAAP.
When evaluating the Company's operating performance or liquidity,
investors should not consider non-GAAP measures in isolation of,
superior to, or as a substitute for measures of the Company's
financial performance as determined in accordance with GAAP.
Adjusted Net Income (Loss) and Adjusted Diluted Earnings
(Loss) Per Share ("Adjusted EPS")
Adjusted Net Income (Loss) represents income or loss
attributable to the Company as adjusted to eliminate the impact of
GAAP income tax; vehicle and non-vehicle debt-related charges;
restructuring and restructuring related charges; acquisition
accounting-related depreciation and amortization; unrealized
(gains) losses on financial instruments; change in fair value of
Public Warrants and certain other miscellaneous or non-recurring
items on a pre-tax basis. Adjusted Net Income (Loss) includes a
provision (benefit) for income taxes derived utilizing a combined
statutory rate. The combined statutory rate is management's
estimate of the Company's long-term tax rate. Its most comparable
GAAP measure is net income (loss) attributable to the Company.
Adjusted EPS represents Adjusted Net Income (Loss) on a per
diluted share basis using the weighted-average number of diluted
shares outstanding for the period. Its most comparable GAAP measure
is diluted earnings (loss) per share.
Adjusted Net Income (Loss) and Adjusted EPS are important
operating metrics because they allow management and investors to
assess operational performance of the Company's business, exclusive
of the items mentioned above that are not operational in nature or
comparable to those of the Company's competitors.
Adjusted Corporate EBITDA and Adjusted Corporate EBITDA
Margin
Adjusted Corporate EBITDA represents income or loss attributable
to the Company as adjusted to eliminate the impact of GAAP income
tax; non-vehicle depreciation and amortization; non-vehicle debt
interest, net; vehicle debt-related charges; restructuring and
restructuring related charges; unrealized (gains) losses on
financial instruments; change in fair value of Public Warrants and
certain other miscellaneous or non-recurring items.
Adjusted Corporate EBITDA Margin is calculated as the ratio of
Adjusted Corporate EBITDA to total revenues.
Management uses these measures as operating performance metrics
for internal monitoring and planning purposes, including the
preparation of the Company's annual operating budget and monthly
operating reviews, and analysis of investment decisions,
profitability and performance trends. These measures enable
management and investors to isolate the effects on profitability of
operating metrics most meaningful to the business of renting and
leasing vehicles. They also allow management and investors to
assess the performance of the entire business on the same basis as
its reportable segments. Adjusted Corporate EBITDA is also utilized
in the determination of certain executive compensation. Its most
comparable GAAP measure is net income (loss) attributable to the
Company.
Adjusted operating cash flow and adjusted free cash
flow
Adjusted operating cash flow represents net cash provided by
operating activities net of the non-cash add back for vehicle
depreciation and reserves, and exclusive of bankruptcy related
payments made post emergence. Adjusted operating cash flow is an
important performance measure to management and investors as it
provides useful information about the amount of cash generated from
operations when fully burdened by fleet costs.
Adjusted free cash flow represents adjusted operating cash flow
plus the impact of net non-vehicle capital expenditures and net
fleet growth after financing. Adjusted free cash flow is an
important performance measure to management and investors as it
provides useful information about the amount of cash available for,
but not limited to, the reduction of non-vehicle debt, share
repurchase and acquisition.
The most comparable GAAP measure for adjusted operating cash
flow and adjusted free cash flow is net cash provided by (used in)
operating activities.
Net Fleet Growth After Financing
U.S. and International Rental Car segments Fleet Growth is
defined as revenue earning vehicles expenditures, net of proceeds
from disposals, plus vehicle depreciation and net vehicle
financing, which includes borrowings, repayments and the change in
restricted cash associated with vehicles. Fleet Growth is important
as it allows the Company to assess the cash flow required to
support its investment in revenue earning vehicles.
Net Non-vehicle Debt
Net Non-vehicle Debt is calculated as non-vehicle debt as
reported on the Company's balance sheet, excluding the impact of
unamortized debt issuance costs associated with non-vehicle debt,
less cash and cash equivalents. Non-vehicle debt consists of the
Company's Senior Term Loans, Senior RCF, First Lien Senior Notes,
Second Lien Exchangeable Notes, Senior Unsecured Notes, Promissory
Notes and certain other non-vehicle indebtedness of its domestic
and foreign subsidiaries. Net Non-vehicle Debt is important to
management and investors as it helps measure the Company's
corporate leverage. Net Non-vehicle Debt also assists in the
evaluation of the Company's ability to service its non-vehicle debt
without reference to the expense associated with the vehicle debt,
which is collateralized by assets not available to lenders under
the non-vehicle debt facilities.
Net Vehicle Debt
Net Vehicle Debt is calculated as vehicle debt as reported on
the Company's balance sheet, excluding the impact of unamortized
debt issue costs associated with vehicle debt, less restricted cash
associated with vehicles. Restricted cash associated with vehicle
debt is restricted for the purchase of revenue earning vehicles and
other specified uses under the Company's vehicle debt facilities.
Net Vehicle Debt is important to management, investors and ratings
agencies as it helps measure the Company's leverage with respect to
its vehicle assets.
Total Net Debt
Total Net Debt is calculated as total debt, excluding the impact
of unamortized debt issuance costs, less total cash and cash
equivalents and restricted cash associated with vehicle debt.
Unamortized debt issuance costs are required to be reported as a
deduction from the carrying amount of the related debt obligation
under GAAP. Management believes that eliminating the effects that
these costs have on debt will more accurately reflect the Company's
net debt position. Total Net Debt is important to management,
investors and ratings agencies as it helps measure the Company's
gross leverage.
Net Corporate Leverage
Net Corporate Leverage is calculated as non-vehicle net debt
divided by Adjusted Corporate EBITDA for the last twelve months.
Net Corporate Leverage is important to management and investors as
it measures the Company's corporate leverage net of unrestricted
cash. Net Corporate Leverage also assists in the evaluation of the
Company's ability to service its non-vehicle debt with reference to
the generation of Adjusted Corporate EBITDA.
KEY METRICS
Available Rental Car Days
Available Rental Car Days represents Average Rentable Vehicles
multiplied by the number of days in a given period.
Average Vehicles ("Fleet Capacity" or
"Capacity")
Average Vehicles is determined using a simple average of the
number of vehicles in the fleet whether owned or leased by the
Company at the beginning and end of a given period.
Average Rentable Vehicles
Average Rentable Vehicles reflects Average Vehicles excluding
vehicles for sale on the Company's retail lots or actively in the
process of being sold through other disposition channels.
Depreciation Per Unit Per Month ("Depreciation Per Unit"
or "DPU")
Depreciation Per Unit Per Month represents the amount of average
depreciation expense and lease charges per vehicle per month,
exclusive of the impacts of foreign currency exchange rates so as
not to affect the comparability of underlying trends. This metric
is important to management and investors as it reflects how
effectively the Company is managing the costs of its vehicles and
facilitates comparisons with other participants in the vehicle
rental industry.
Total Revenue Per Transaction Day ("Total RPD"or "RPD";
also referred to as "pricing")
Total RPD represents revenue generated per transaction day,
excluding the impact of foreign currency exchange rates so as not
to affect the comparability of underlying trends. This metric is
important to management and investors as it represents a measure of
changes in the underlying pricing in the vehicle rental business
and encompasses the elements in vehicle rental pricing that
management has the ability to control.
Total Revenue Per Unit Per Month ("Total RPU", "RPU" or
"Total RPU Per Month")
Total RPU Per Month represents the amount of revenue generated
per vehicle in the rental fleet each month, excluding the impact of
foreign currency exchange rates so as not to affect the
comparability of underlying trends. This metric is important to
management and investors as it provides a measure of revenue
productivity relative to the number of vehicles in our rental fleet
whether owned or leased, or asset
efficiency.
Transaction Days ("Days"; also referred to as
"volume")
Transaction Days represents the total number of 24-hour periods,
with any partial period counted as one Transaction Day, that
vehicles were on rent (the period between when a rental contract is
opened and closed) in a given period. Thus, it is possible for a
vehicle to attain more than one Transaction Day in a 24-hour
period. This metric is important to management and investors as it
represents the number of revenue-generating days.
Vehicle Utilization ("Utilization")
Vehicle Utilization represents the ratio of Transaction Days to
Available Rental Car Days. This metric is important to management
and investors as it is the measurement of the proportion of
vehicles that are being used to generate revenues relative to
rentable fleet capacity.
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SOURCE Hertz Global Holdings, Inc.
