"Hertz posted strong results in the first quarter, reflecting
continued growth in demand across all customer segments and
sustained pricing both in the U.S. and abroad," said Stephen Scherr, Hertz chair and chief executive
officer. "Our continued investments in the business, particularly
in the areas of technology and electrification, are improving our
operational cadence, extending our reach in rideshare, and enabling
the revitalization of our value brands, all with a view toward
delivering sustainable returns for our shareholders. We look
forward to serving our customers with excellence during the
upcoming summer season."
ESTERO,
Fla., April 27, 2023 /PRNewswire/ -- Hertz
Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz", "Hertz Global" or the
"Company") today reported results for its first quarter 2023.
HIGHLIGHTS
- Total revenues of $2.0
billion
- GAAP net income of $196 million,
or $0.61 per diluted share
- Adjusted Net Income of $126
million, or $0.39 per adjusted
diluted share
- Adjusted Corporate EBITDA of $237
million, a 12% margin
- Operating cash flow of $562
million, adjusted operating cash flow of $104 million
- Adjusted free cash outflow of $83
million
- Corporate liquidity of $2.2
billion at March 31, including
$728 million in unrestricted
cash
- Company utilized $100 million to
repurchase 5.7 million common shares during the quarter
FIRST QUARTER RESULTS
First quarter revenue was $2.0
billion, up 13% year over year, characterized by continued
strength in leisure and corporate demand. Transaction days
increased 10% year over year while average fleet was up 5%. Monthly
revenue per unit in the quarter of $1,409, was up 7% year over year and benefited
from a 280-basis point improvement in utilization and pricing
strength.
Adjusted Corporate EBITDA was $237
million in the quarter. Fleet depreciation was $381 million, or $252 per unit per month. Fleet depreciation in
the first quarter of 2022 reflected outsized gains on sale of
vehicles. Adjusted Corporate EBITDA in the quarter included
$88 million of gains from the
monetization of interest rate caps associated with the Company's
HVFIII U.S. ABS facility.
Adjusted free cash outflow of $83
million in the quarter reflected an investment to grow the
fleet to meet spring and summer demand.
During the first quarter of 2023, the Company repurchased 5.7
million shares of its common stock for $100
million. As of April 20, 2023,
the Company had approximately $1.0
billion remaining under its share repurchase
authorization.
The Company's liquidity position was $2.2
billion at March 31, 2023, of
which $728 million was unrestricted
cash.
SUMMARY RESULTS
|
Three Months
Ended
March
31,
|
|
Percent Inc/
(Dec)
2023 vs
2022
|
|
($ in millions, except
earnings per share or where noted)
|
2023
|
|
2022
|
|
|
Hertz Global -
Consolidated
|
|
|
|
|
|
|
Total
revenues
|
$
2,047
|
|
$
1,810
|
|
13 %
|
|
Adjusted net income
(loss)(a)
|
$
126
|
|
$
403
|
|
(69) %
|
|
Adjusted diluted
earnings (loss) per share(a)
|
$
0.39
|
|
$
0.87
|
|
(55) %
|
|
Adjusted Corporate
EBITDA(a)
|
$
237
|
|
$
614
|
|
(61) %
|
|
Adjusted Corporate
EBITDA Margin(a)
|
12 %
|
|
34 %
|
|
|
|
|
|
|
|
|
|
Average Vehicles (in
whole units)
|
504,528
|
|
481,211
|
|
5 %
|
|
Average Rentable
Vehicles (in whole units)
|
483,288
|
|
455,517
|
|
6 %
|
|
Vehicle
Utilization
|
77 %
|
|
75 %
|
|
|
|
Transaction Days (in
thousands)
|
33,787
|
|
30,621
|
|
10 %
|
|
Total RPD (in
dollars)(b)
|
$
60.48
|
|
$
58.54
|
|
3 %
|
|
Total RPU Per Month (in
whole dollars)(b)
|
$
1,409
|
|
$
1,312
|
|
7 %
|
|
Depreciation Per Unit
Per Month (in whole dollars)(b)
|
$
252
|
|
$
(42)
|
|
NM
|
|
|
|
|
|
|
|
Americas RAC
Segment
|
|
|
|
|
|
|
Total
revenues
|
$
1,730
|
|
$
1,558
|
|
11 %
|
|
Adjusted
EBITDA
|
$
261
|
|
$
641
|
|
(59) %
|
|
Adjusted EBITDA
Margin
|
15 %
|
|
41 %
|
|
|
|
|
|
|
|
|
|
Average Vehicles (in
whole units)
|
412,983
|
|
397,620
|
|
4 %
|
|
Average Rentable
Vehicles (in whole units)
|
393,512
|
|
373,153
|
|
5 %
|
|
Vehicle
Utilization
|
79 %
|
|
76 %
|
|
|
|
Transaction Days (in
thousands)
|
27,879
|
|
25,579
|
|
9 %
|
|
Total RPD (in
dollars)(b)
|
$
62.03
|
|
$
60.81
|
|
2 %
|
|
Total RPU Per Month (in
whole dollars)(b)
|
$
1,465
|
|
$
1,390
|
|
5 %
|
|
Depreciation Per Unit
Per Month (in whole dollars)(b)
|
$
282
|
|
$
(78)
|
|
NM
|
|
|
|
|
|
|
|
International RAC
Segment
|
|
|
|
|
|
|
Total
revenues
|
$
317
|
|
$
252
|
|
25 %
|
|
Adjusted
EBITDA
|
$
53
|
|
$
27
|
|
97 %
|
|
Adjusted EBITDA
Margin
|
17 %
|
|
11 %
|
|
|
|
|
|
|
|
|
|
Average Vehicles (in
whole units)
|
91,545
|
|
83,591
|
|
10 %
|
|
Average Rentable
Vehicles (in whole units)
|
89,776
|
|
82,364
|
|
9 %
|
|
Vehicle
Utilization
|
72 %
|
|
68 %
|
|
|
|
Transaction Days (in
thousands)
|
5,908
|
|
5,042
|
|
17 %
|
|
Total RPD (in
dollars)(b)
|
$
53.18
|
|
$
47.00
|
|
13 %
|
|
Total RPU Per Month (in
whole dollars)(b)
|
$
1,167
|
|
$
959
|
|
22 %
|
|
Depreciation Per Unit
Per Month (in whole dollars)(b)
|
$
115
|
|
$
129
|
|
(11) %
|
|
|
NM - Not
meaningful
|
|
(a)
Represents a non-GAAP measure. See the accompanying reconciliations
included in Supplemental Schedule II.
|
|
(b) Based
on December 31, 2022 foreign exchange rates.
|
EARNINGS WEBCAST INFORMATION
Hertz Global's live webcast and conference call to discuss its
first quarter 2023 results will be held on April 27, 2023, at 8:30
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
https://register.vevent.com/register/BI62d702e50f4c42c0b23858ca0440e2e4,
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
Following is selected financial data of Hertz Global. Also
included are Supplemental Schedules, which are provided to present
segment results, and reconciliations of non-GAAP measures to their
most comparable GAAP measure. Following the Supplemental Schedules,
the Company provides definitions for terminology used throughout
the earnings release and its view of the usefulness of non-GAAP
measures to investors and management.
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings,
Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands
throughout North America,
Europe, the Caribbean, Latin
America, Africa, the
Middle East, Asia, Australia and New
Zealand. The Hertz Corporation is one of the largest
worldwide vehicle rental companies, and the Hertz brand is one of
the most recognized globally. Additionally, The Hertz Corporation
owns and operates the Firefly vehicle rental brand and Hertz 24/7
car sharing business in international markets and sells vehicles
through Hertz Car Sales. For more information about The Hertz
Corporation, 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
include information concerning the Company's liquidity and its
possible or assumed future results of operations, including
descriptions of its business strategies. These statements often
include words such as "believe," "expect," "project," "potential,"
"anticipate," "intend," "plan," "estimate," "seek," "will," "may,"
"would," "should," "could," "forecasts," "guidance" or similar
expressions. These 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 it believes are
appropriate in these circumstances. The Company believes these
judgments are reasonable, but you should understand that these
statements are not guarantees of 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 on Form 10-K, 10-Q and 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:
- the Company's ability to purchase adequate supplies of
competitively priced vehicles at a reasonable cost in order to
efficiently service rental demand, including as a result of
disruptions in the global supply chain;
- the Company's ability to attract and retain effective
frontline employees and senior management and other key
employees;
- levels of travel demand, particularly business and leisure
travel in the U.S. and in global markets;
- significant changes in the competitive environment and the
effect of competition in the Company's markets on rental volume and
pricing;
- occurrences that disrupt rental activity during the
Company's peak periods particularly in critical
geographies;
- the Company's ability to accurately estimate future levels
of rental activity and adjust the number and mix of vehicles used
in its rental operations accordingly;
- the Company's ability to implement its business strategy or
strategic transactions, including its ability to implement plans to
support a large-scale electric vehicle fleet, execute its rideshare
strategy and to play a central role in the modern mobility
ecosystem;
- the Company's ability to adequately respond to changes in
technology impacting the mobility industry;
- the mix of vehicles in the Company's fleet, including but
not limited to program and non-program vehicles, which can lead to
increased exposure to residual risk upon disposition;
- increases in vehicle holding periods, which may result in
additional maintenance costs and lower customer
satisfaction;
- financial instability of the manufacturers of the Company's
vehicles, which could impact their ability to fulfill obligations
under repurchase or guaranteed depreciation programs;
- increases in the level of recall activity by the
manufacturers of the Company's vehicles, which may increase the
Company's costs and can disrupt its rental activity due to safety
recalls by the manufacturers of its vehicles;
- the Company's access to third-party distribution channels
and related prices, commission structures and transaction volumes
associated with those channels;
- the Company's ability to offer an excellent customer
experience, retain and increase customer loyalty and increase
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 effectively manage its union
relations and labor agreement negotiations;
- the Company's ability, and that of its key third-party
partners, to prevent the misuse or theft of information the Company
possesses, including as a result of cyber security breaches and
other security threats, as well as to comply with privacy
regulations across the globe;
- a major disruption in the Company's communication or
centralized information networks or a failure to maintain, upgrade
and consolidate its information technology systems;
- 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 offset future tax on fleet dispositions, 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;
- changes in laws, regulations, policies or other activities
of governments, agencies and similar organizations, including those
related to accounting principles, that affect the Company's
operations, its costs or applicable tax rates;
- the recoverability of the Company's goodwill and
indefinite-lived intangible assets when performing impairment
analysis;
- costs and risks associated with potential litigation and
investigations, compliance with and changes in laws and regulations
and potential exposures under environmental laws and
regulations;
- the Company's ability to comply with ESG regulations, meet
increasing ESG expectations of stakeholders, and otherwise achieve
ESG goals;
- the availability of additional or continued sources of
financing at acceptable rates for the Company's revenue earning
vehicles and to refinance its existing indebtedness;
- volatility in the Company's stock price and certain
provisions of its charter documents which could negatively affect
the market price of the Company's common stock;
- the Company's ability to effectively maintain effective
internal controls over financial reporting; and
- the Company's ability to implement an effective business
continuity plan to protect the business in exigent
circumstances.
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, Quarterly 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
March
31,
|
|
(In millions, except
per share data)
|
2023
|
|
2022
|
|
Revenues
|
$
2,047
|
|
$
1,810
|
|
Expenses:
|
|
|
|
|
Direct vehicle and
operating
|
1,221
|
|
1,053
|
|
Depreciation of
revenue earning vehicles and lease charges, net
|
381
|
|
(59)
|
|
Depreciation and
amortization of non-vehicle assets
|
35
|
|
33
|
|
Selling, general and
administrative
|
221
|
|
235
|
|
Interest expense,
net:
|
|
|
|
|
Vehicle
|
111
|
|
5
|
|
Non-vehicle
|
51
|
|
39
|
|
Total interest
expense, net
|
162
|
|
44
|
|
Other (income)
expense, net
|
9
|
|
(2)
|
|
(Gain) on sale of
non-vehicle capital assets
|
(162)
|
|
—
|
|
Change in fair value
of Public Warrants
|
118
|
|
(50)
|
|
Total
expenses
|
1,985
|
|
1,254
|
|
Income (loss) before
income taxes
|
62
|
|
556
|
|
Income tax (provision)
benefit
|
134
|
|
(130)
|
|
Net income
(loss)
|
$
196
|
|
$
426
|
|
|
|
|
|
Weighted average number
of shares outstanding:
|
|
|
|
|
Basic
|
321
|
|
432
|
|
Diluted
|
323
|
|
461
|
|
Earnings (loss) per
share:
|
|
|
|
|
Basic
|
$
0.61
|
|
$
0.99
|
|
Diluted
|
$
0.61
|
|
$
0.82
|
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
|
|
(In millions, except
par value and share data)
|
March 31,
2023
|
|
December 31,
2022
|
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
728
|
|
$
943
|
|
Restricted cash and
cash equivalents:
|
|
|
|
|
Vehicle
|
216
|
|
180
|
|
Non-vehicle
|
298
|
|
295
|
|
Total restricted cash
and cash equivalents
|
514
|
|
475
|
|
Total cash and cash
equivalents and restricted cash and cash equivalents
|
1,242
|
|
1,418
|
|
Receivables:
|
|
|
|
|
Vehicle
|
136
|
|
111
|
|
Non-vehicle, net of
allowance of $42 and $45, respectively
|
898
|
|
863
|
|
Total receivables,
net
|
1,034
|
|
974
|
|
Prepaid expenses and
other assets
|
980
|
|
1,155
|
|
Revenue earning
vehicles:
|
|
|
|
|
Vehicles
|
15,746
|
|
14,281
|
|
Less: accumulated
depreciation
|
(1,888)
|
|
(1,786)
|
|
Total revenue earning
vehicles, net
|
13,858
|
|
12,495
|
|
Property and equipment,
net
|
642
|
|
637
|
|
Operating lease
right-of-use assets
|
2,067
|
|
1,887
|
|
Intangible assets,
net
|
2,882
|
|
2,887
|
|
Goodwill
|
1,044
|
|
1,044
|
|
Total
assets
|
$
23,749
|
|
$
22,497
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Accounts
payable:
|
|
|
|
|
Vehicle
|
$
167
|
|
$
79
|
|
Non-vehicle
|
553
|
|
578
|
|
Total accounts
payable
|
720
|
|
657
|
|
Accrued
liabilities
|
926
|
|
911
|
|
Accrued taxes,
net
|
173
|
|
170
|
|
Debt:
|
|
|
|
|
Vehicle
|
11,789
|
|
10,886
|
|
Non-vehicle
|
2,975
|
|
2,977
|
|
Total debt
|
14,764
|
|
13,863
|
|
Public
Warrants
|
735
|
|
617
|
|
Operating lease
liabilities
|
1,977
|
|
1,802
|
|
Self-insured
liabilities
|
457
|
|
472
|
|
Deferred income taxes,
net
|
1,223
|
|
1,360
|
|
Total
liabilities
|
20,975
|
|
19,852
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock, $0.01
par value, no shares issued and outstanding
|
—
|
|
—
|
|
Common stock, $0.01 par
value, 479,114,852 and 478,914,062 shares issued,
respectively, and
317,948,320 and 323,483,178 shares outstanding,
respectively
|
5
|
|
5
|
|
Treasury stock, at
cost, 161,166,532 and 155,430,884 common shares,
respectively
|
(3,237)
|
|
(3,136)
|
|
Additional paid-in
capital
|
6,346
|
|
6,326
|
|
Retained earnings
(Accumulated deficit)
|
(60)
|
|
(256)
|
|
Accumulated other
comprehensive income (loss)
|
(280)
|
|
(294)
|
|
Total stockholders'
equity
|
2,774
|
|
2,645
|
|
Total liabilities and
stockholders' equity
|
$
23,749
|
|
$
22,497
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
Three Months
Ended
March
31,
|
|
(In
millions)
|
2023
|
|
2022
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
(loss)
|
$
196
|
|
$
426
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating
activities:
|
|
|
|
|
Depreciation and
reserves for revenue earning vehicles
|
466
|
|
(20)
|
|
Depreciation and
amortization, non-vehicle
|
35
|
|
33
|
|
Amortization of
deferred financing costs and debt discount (premium)
|
14
|
|
11
|
|
Stock-based
compensation charges
|
21
|
|
28
|
|
Provision for
receivables allowance
|
20
|
|
13
|
|
Deferred income taxes,
net
|
(135)
|
|
103
|
|
(Gain) loss on sale of
non-vehicle capital assets
|
(162)
|
|
(2)
|
|
Change in fair value
of Public Warrants
|
118
|
|
(50)
|
|
Changes in financial
instruments
|
108
|
|
(44)
|
|
Other
|
—
|
|
1
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Non-vehicle
receivables
|
(50)
|
|
(43)
|
|
Prepaid expenses and
other assets
|
(48)
|
|
(40)
|
|
Operating lease
right-of-use assets
|
78
|
|
72
|
|
Non-vehicle accounts
payable
|
(27)
|
|
51
|
|
Accrued
liabilities
|
29
|
|
124
|
|
Accrued taxes,
net
|
1
|
|
30
|
|
Operating lease
liabilities
|
(84)
|
|
(80)
|
|
Self-insured
liabilities
|
(18)
|
|
8
|
|
Net cash provided by
(used in) operating activities
|
562
|
|
621
|
|
Cash flows from
investing activities:
|
|
|
|
|
Revenue earning
vehicles expenditures
|
(2,824)
|
|
(2,985)
|
|
Proceeds from disposal
of revenue earning vehicles
|
1,206
|
|
1,471
|
|
Non-vehicle capital
asset expenditures
|
(45)
|
|
(30)
|
|
Proceeds from
non-vehicle capital assets disposed of or to be disposed
of
|
175
|
|
1
|
|
Collateral returned in
exchange for letters of credit
|
—
|
|
17
|
|
Return of (investment
in) equity investments
|
—
|
|
(15)
|
|
Net cash provided by
(used in) investing activities
|
(1,488)
|
|
(1,541)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from issuance
of vehicle debt
|
2,061
|
|
4,680
|
|
Repayments of vehicle
debt
|
(1,190)
|
|
(3,492)
|
|
Proceeds from issuance
of non-vehicle debt
|
425
|
|
—
|
|
Repayments of
non-vehicle debt
|
(430)
|
|
(5)
|
|
Payment of financing
costs
|
(8)
|
|
(24)
|
|
Proceeds from
exercises of Public Warrants
|
—
|
|
3
|
|
Share
repurchases
|
(118)
|
|
(766)
|
|
Other
|
(1)
|
|
(4)
|
|
Net cash provided by
(used in) financing activities
|
739
|
|
392
|
|
Effect of foreign
currency exchange rate changes on cash and cash equivalents and
restricted
cash and cash equivalents
|
11
|
|
(1)
|
|
Net increase (decrease)
in cash and cash equivalents and restricted cash and cash
equivalents
during the period
|
(176)
|
|
(529)
|
|
Cash and cash
equivalents and restricted cash and cash equivalents at beginning
of period
|
1,418
|
|
2,651
|
|
Cash and cash
equivalents and restricted cash and cash equivalents at end of
period
|
$
1,242
|
|
$
2,122
|
|
Supplemental
Schedule I
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
CONDENSED STATEMENT
OF OPERATIONS BY SEGMENT
Unaudited
|
|
|
Three Months Ended
March 31, 2023
|
|
Three Months Ended
March 31, 2022
|
|
(In
millions)
|
Americas
RAC
|
|
International
RAC
|
|
Corporate
|
|
Hertz
Global
|
|
Americas
RAC
|
|
International
RAC
|
|
Corporate
|
|
Hertz
Global
|
|
Revenues
|
$
1,730
|
|
$
317
|
|
$
—
|
|
$ 2,047
|
|
$
1,558
|
|
$
252
|
|
$
—
|
|
$ 1,810
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct vehicle and
operating
|
1,039
|
|
182
|
|
—
|
|
1,221
|
|
903
|
|
151
|
|
(1)
|
|
1,053
|
|
Depreciation of revenue
earning vehicles and lease charges, net
|
349
|
|
32
|
|
—
|
|
381
|
|
(93)
|
|
34
|
|
—
|
|
(59)
|
|
Depreciation and
amortization of non-vehicle assets
|
28
|
|
2
|
|
5
|
|
35
|
|
26
|
|
3
|
|
4
|
|
33
|
|
Selling, general and
administrative
|
105
|
|
37
|
|
79
|
|
221
|
|
86
|
|
42
|
|
107
|
|
235
|
|
Interest expense,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
|
93
|
|
18
|
|
—
|
|
111
|
|
2
|
|
3
|
|
—
|
|
5
|
|
Non-vehicle
|
(18)
|
|
(2)
|
|
71
|
|
51
|
|
(8)
|
|
—
|
|
47
|
|
39
|
|
Total interest
expense, net
|
75
|
|
16
|
|
71
|
|
162
|
|
(6)
|
|
3
|
|
47
|
|
44
|
|
Other (income) expense,
net
|
(1)
|
|
6
|
|
4
|
|
9
|
|
(1)
|
|
(3)
|
|
2
|
|
(2)
|
|
(Gain) on sale of
non-vehicle capital assets
|
(162)
|
|
—
|
|
—
|
|
(162)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Change in fair value of
Public Warrants
|
—
|
|
—
|
|
118
|
|
118
|
|
—
|
|
—
|
|
(50)
|
|
(50)
|
|
Total
expenses
|
1,433
|
|
275
|
|
277
|
|
1,985
|
|
915
|
|
230
|
|
109
|
|
1,254
|
|
Income (loss) before
income taxes
|
$
297
|
|
$
42
|
|
$
(277)
|
|
62
|
|
$
643
|
|
$
22
|
|
$
(109)
|
|
556
|
|
Income tax (provision)
benefit
|
|
|
|
|
|
|
134
|
|
|
|
|
|
|
|
(130)
|
|
Net income
(loss)
|
|
|
|
|
|
|
$
196
|
|
|
|
|
|
|
|
$
426
|
|
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
March
31,
|
|
(In millions, except
per share data)
|
2023
|
|
2022
|
|
Adjusted Net Income
(Loss) and Adjusted Diluted Earnings (Loss) Per
Share:
|
|
|
|
|
Net income
(loss)
|
$
196
|
|
$
426
|
|
Adjustments:
|
|
|
|
|
Income tax provision
(benefit)
|
(134)
|
|
130
|
|
Vehicle and
non-vehicle debt-related charges(a)(k)
|
14
|
|
12
|
|
Restructuring and
restructuring related charges(b)
|
3
|
|
6
|
|
Acquisition
accounting-related depreciation and
amortization(c)
|
—
|
|
1
|
|
Unrealized (gains)
losses on financial instruments(d)
|
108
|
|
(44)
|
|
(Gain) on sale of
non-vehicle capital assets(e)
|
(162)
|
|
—
|
|
Change in fair value
of Public Warrants
|
118
|
|
(50)
|
|
Other
items(f)(l)
|
14
|
|
56
|
|
Adjusted pre-tax
income (loss)(g)
|
157
|
|
537
|
|
Income tax (provision)
benefit on adjusted pre-tax income (loss)(h)
|
(31)
|
|
(134)
|
|
Adjusted Net Income
(Loss)
|
$
126
|
|
$
403
|
|
Weighted-average
number of diluted shares outstanding
|
323
|
|
461
|
|
Adjusted Diluted
Earnings (Loss) Per Share(i)
|
$
0.39
|
|
$
0.87
|
|
Adjusted Corporate
EBITDA:
|
|
|
|
|
Net income
(loss)
|
$
196
|
|
$
426
|
|
Adjustments:
|
|
|
|
|
Income tax provision
(benefit)
|
(134)
|
|
130
|
|
Non-vehicle
depreciation and amortization(j)
|
35
|
|
33
|
|
Non-vehicle debt
interest, net of interest income
|
51
|
|
39
|
|
Vehicle debt-related
charges(a)(k)
|
10
|
|
7
|
|
Restructuring and
restructuring related charges(b)
|
3
|
|
6
|
|
Unrealized (gains)
losses on financial instruments(d)
|
108
|
|
(44)
|
|
(Gain) on sale of
non-vehicle capital assets(e)
|
(162)
|
|
—
|
|
Change in fair value
of Public Warrants
|
118
|
|
(50)
|
|
Other
items(f)(m)
|
12
|
|
67
|
|
Adjusted Corporate
EBITDA
|
$
237
|
|
$
614
|
|
Supplemental
Schedule II (continued)
|
|
|
(a)
|
Represents debt-related
charges relating to the amortization of deferred financing costs
and debt discounts and premiums.
|
|
(b)
|
Represents charges
incurred under restructuring actions as defined in U.S. GAAP,
excluding impairments and asset write-downs. Also includes
restructuring related charges such as incremental costs incurred
directly supporting business transformation initiatives. For the
three months ended March 31, 2023 and 2022, respectively, charges
incurred related primarily to International RAC.
|
|
(c)
|
Represents incremental
expense associated with the amortization of other intangible assets
and depreciation of property and equipment relating to acquisition
accounting.
|
|
(d)
|
Represents unrealized
gains (losses) on derivative financial instruments, primarily
associated with Americas RAC. In 2023, also includes the
realization of $88 million of previously unrealized gains resulting
from the unwind of certain interest rate caps in Americas
RAC.
|
|
(e)
|
Represents gain on the
sale of certain non-vehicle capital assets sold in March 2023 in
Americas RAC.
|
|
(f)
|
Represents
miscellaneous items. For 2023, primarily includes certain IT
related charges primarily in Corporate. For 2022, primarily
includes bankruptcy claims, certain professional fees and charges
related to the settlement of bankruptcy claims.
|
|
(g)
|
Adjustments by caption
on a pre-tax basis were as follows:
|
|
|
|
Increase (decrease)
to expenses
|
Three Months Ended
March 31,
|
|
(In
millions)
|
2023
|
|
2022
|
|
Direct vehicle and
operating
|
$
—
|
|
$
(2)
|
|
Depreciation of revenue
earning vehicles and lease charges, net
|
2
|
|
—
|
|
Selling, general and
administrative
|
(14)
|
|
(5)
|
|
Interest expense,
net:
|
|
|
|
|
Vehicle
|
(119)
|
|
36
|
|
Non-vehicle
|
(8)
|
|
(5)
|
|
Total interest
expense, net
|
(127)
|
|
31
|
|
Other income (expense),
net
|
—
|
|
(55)
|
|
Gain on sale
non-vehicle capital assets
|
162
|
|
—
|
|
Change in fair value of
Public Warrants
|
(118)
|
|
50
|
|
Total
adjustments
|
$
(95)
|
|
$
19
|
|
|
|
(h)
|
Derived utilizing a
combined statutory rate of 20% and 25% for the three months ended
March 31, 2023 and 2022, respectively, applied to the respective
Adjusted Pre-tax Income (Loss). The decrease in rate is primarily
resulting from EV-related tax credits anticipated to be used to
decrease the Company's U.S. federal tax provision throughout 2023
based on the Company's expected purchases of electric
vehicles.
|
|
(i)
|
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.
|
|
(j)
|
Non-vehicle
depreciation and amortization expense for Americas RAC,
International RAC and Corporate for the three months ended March
31, 2023 was $28 million, $2 million and $5 million,
respectively. For the three months ended March 31, 2022 was $26
million, $3 million, and $4 million for Americas RAC, International
RAC and Corporate, respectively.
|
|
(k)
|
Vehicle debt-related
charges for Americas RAC and International RAC for the three months
ended March 31, 2023 were $8 million and $1 million, respectively,
and were $6 million and $1 million, respectively, for the
three months ended March 31, 2022.
|
|
(l)
|
Also includes letter of
credit fees recorded primarily in Corporate.
|
|
(m)
|
In 2022, also includes
an adjustment for certain non-cash stock-based compensation charges
recorded in Corporate.
|
|
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
March
31,
|
|
(In
millions)
|
2023
|
|
2022
|
|
ADJUSTED OPERATING
CASH FLOW AND ADJUSTED FREE CASH FLOW:
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
$
562
|
|
$
621
|
|
Depreciation and
reserves for revenue earning vehicles
|
(466)
|
|
20
|
|
Bankruptcy related
payments (post emergence) and other payments
|
8
|
|
36
|
|
Adjusted operating cash
flow
|
104
|
|
677
|
|
Non-vehicle capital
asset proceeds (expenditures), net
|
130
|
|
(29)
|
|
Adjusted operating cash
flow before vehicle investment
|
234
|
|
648
|
|
Net fleet growth after
financing
|
(317)
|
|
(569)
|
|
Adjusted free cash
flow
|
$
(83)
|
|
$
79
|
|
|
|
|
|
CALCULATION OF NET
FLEET GROWTH AFTER FINANCING:
|
|
|
|
Revenue earning
vehicles expenditures
|
$
(2,824)
|
|
$
(2,985)
|
|
Proceeds from disposal
of revenue earning vehicles
|
1,206
|
|
1,471
|
|
Revenue earning
vehicles capital expenditures, net
|
(1,618)
|
|
(1,514)
|
|
Depreciation and
reserves for revenue earning vehicles
|
466
|
|
(20)
|
|
Financing activity
related to vehicles:
|
|
|
|
|
Borrowings
|
2,061
|
|
$
4,680
|
|
Payments
|
(1,190)
|
|
$
(3,492)
|
|
Restricted cash
changes, vehicle
|
(36)
|
|
$
(223)
|
|
Net financing activity
related to vehicles
|
835
|
|
965
|
|
Net fleet growth after
financing
|
$
(317)
|
|
$
(569)
|
|
Supplemental
Schedule IV
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
NET DEBT
CALCULATION
Unaudited
|
|
|
As of March 31,
2023
|
|
As of
December 31, 2022
|
|
(In
millions)
|
Vehicle
|
|
Non-Vehicle
|
|
Total
|
|
Vehicle
|
|
Non-Vehicle
|
|
Total
|
|
Term loans
|
$
—
|
|
$
1,522
|
|
$
1,522
|
|
$
—
|
|
$
1,526
|
|
$
1,526
|
|
Senior notes
|
—
|
|
1,500
|
|
1,500
|
|
—
|
|
1,500
|
|
1,500
|
|
U.S. vehicle financing
(HVF III)
|
10,283
|
|
—
|
|
10,283
|
|
9,406
|
|
—
|
|
9,406
|
|
International vehicle
financing (Various)
|
1,490
|
|
—
|
|
1,490
|
|
1,466
|
|
—
|
|
1,466
|
|
Other debt
|
78
|
|
8
|
|
86
|
|
76
|
|
9
|
|
85
|
|
Debt issue costs,
discounts and premiums
|
(62)
|
|
(55)
|
|
(117)
|
|
(62)
|
|
(58)
|
|
(120)
|
|
Debt as reported in the
balance sheet
|
11,789
|
|
2,975
|
|
14,764
|
|
10,886
|
|
2,977
|
|
13,863
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt issue costs,
discounts and premiums
|
62
|
|
55
|
|
117
|
|
62
|
|
58
|
|
120
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
—
|
|
728
|
|
728
|
|
—
|
|
943
|
|
943
|
|
Restricted
cash
|
216
|
|
—
|
|
216
|
|
180
|
|
—
|
|
180
|
|
Restricted cash and
restricted cash equivalents
associated with Term C Loan
|
—
|
|
245
|
|
245
|
|
—
|
|
245
|
|
245
|
|
Net Debt
|
$
11,635
|
|
$
2,057
|
|
$
13,692
|
|
$
10,768
|
|
$
1,847
|
|
$
12,615
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate leverage
ratio(a)
|
|
|
1.1x
|
|
|
|
|
|
0.8x
|
|
|
|
|
(a)
Corporate leverage ratio is calculated as non-vehicle net debt
divided by LTM Adjusted Corporate EBITDA.
|
|
Supplemental
Schedule V
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
KEY METRICS
CALCULATIONS
REVENUE, UTILIZATION
AND DEPRECIATION
Unaudited
|
|
|
Global
RAC
|
|
|
Three Months
Ended
March
31,
|
|
Percent Inc/
(Dec)
|
|
($ in millions, except
where noted)
|
2023
|
|
2022
|
|
|
Total
RPD
|
|
|
|
|
|
|
Revenues
|
$
2,047
|
|
$
1,810
|
|
|
|
Foreign currency
adjustment(a)
|
(3)
|
|
(18)
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
2,044
|
|
$
1,792
|
|
|
|
Transaction Days (in
thousands)
|
33,787
|
|
30,621
|
|
|
|
Total RPD (in
dollars)
|
$
60.48
|
|
$
58.54
|
|
3 %
|
|
|
|
|
|
|
|
Total Revenue Per
Unit Per Month
|
|
|
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
2,044
|
|
$
1,792
|
|
|
|
Average Rentable
Vehicles (in whole units)
|
483,288
|
|
455,517
|
|
|
|
Total revenue per unit
(in whole dollars)
|
$
4,228
|
|
$
3,935
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
Total RPU Per Month (in
whole dollars)
|
$
1,409
|
|
$
1,312
|
|
7 %
|
|
|
|
|
|
|
|
Vehicle
Utilization
|
|
|
|
|
|
|
Transaction Days (in
thousands)
|
33,787
|
|
30,621
|
|
|
|
Average Rentable
Vehicles (in whole units)
|
483,288
|
|
455,517
|
|
|
|
Number of days in
period (in whole units)
|
90
|
|
90
|
|
|
|
Available Car Days (in
thousands)
|
43,609
|
|
40,999
|
|
|
|
Vehicle
Utilization(b)
|
77 %
|
|
75 %
|
|
|
|
|
|
|
|
|
|
Depreciation Per
Unit Per Month
|
|
|
|
|
|
|
Depreciation of revenue
earning vehicles and lease charges, net
|
$
381
|
|
$
(59)
|
|
|
|
Foreign currency
adjustment(a)
|
—
|
|
(2)
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and lease charges
|
$
381
|
|
$
(61)
|
|
|
|
Average Vehicles (in
whole units)
|
504,528
|
|
481,211
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and lease charges divided
by
Average Vehicles (in whole dollars)
|
$
756
|
|
$
(127)
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
Depreciation Per Unit
Per Month (in whole dollars)
|
$
252
|
|
$
(42)
|
|
NM
|
|
|
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, 2022 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
March 31,
|
|
Percent Inc/
(Dec)
|
|
($ in millions, except
where noted)
|
2023
|
|
2022
|
|
|
Total
RPD
|
|
|
|
|
|
|
Revenues
|
$
1,730
|
|
$
1,558
|
|
|
|
Foreign currency
adjustment(a)
|
(1)
|
|
(2)
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
1,729
|
|
$
1,556
|
|
|
|
Transaction Days (in
thousands)
|
27,879
|
|
25,579
|
|
|
|
Total RPD (in
dollars)
|
$
62.03
|
|
$
60.81
|
|
2 %
|
|
|
|
|
|
|
|
Total Revenue Per
Unit Per Month
|
|
|
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
1,729
|
|
$
1,556
|
|
|
|
Average Rentable
Vehicles (in whole units)
|
393,512
|
|
373,153
|
|
|
|
Total revenue per unit
(in whole dollars)
|
$
4,395
|
|
$
4,169
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
Total RPU Per Month (in
whole dollars)
|
$
1,465
|
|
$
1,390
|
|
5 %
|
|
|
|
|
|
|
|
Vehicle
Utilization
|
|
|
|
|
|
|
Transaction Days (in
thousands)
|
27,879
|
|
25,579
|
|
|
|
Average Rentable
Vehicles (in whole units)
|
393,512
|
|
373,153
|
|
|
|
Number of days in
period (in whole units)
|
90
|
|
90
|
|
|
|
Available Car Days (in
thousands)
|
35,420
|
|
33,584
|
|
|
|
Vehicle
Utilization(b)
|
79 %
|
|
76 %
|
|
|
|
|
|
|
|
|
|
Depreciation Per
Unit Per Month
|
|
|
|
|
|
|
Depreciation of revenue
earning vehicles and lease charges, net
|
$
349
|
|
$
(93)
|
|
|
|
Foreign currency
adjustment(a)
|
1
|
|
—
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and lease charges
|
$
350
|
|
$
(93)
|
|
|
|
Average Vehicles (in
whole units)
|
412,983
|
|
397,620
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and lease charges divided
by
Average Vehicles (in whole dollars)
|
$
847
|
|
$
(235)
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
Depreciation Per Unit
Per Month (in whole dollars)
|
$
282
|
|
$
(78)
|
|
NM
|
|
|
NM - Not
meaningful
|
|
(a) Based on
December 31, 2022 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
March 31,
|
|
Percent Inc/
(Dec)
|
|
($
in millions, except where noted)
|
2023
|
|
2022
|
|
|
Total
RPD
|
|
|
|
|
|
|
Revenues
|
$
317
|
|
$
252
|
|
|
|
Foreign currency
adjustment(a)
|
(3)
|
|
(15)
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
314
|
|
$
237
|
|
|
|
Transaction Days (in
thousands)
|
5,908
|
|
5,042
|
|
|
|
Total RPD (in
dollars)
|
$
53.18
|
|
$
47.00
|
|
13 %
|
|
|
|
|
|
|
|
Total Revenue Per
Unit Per Month
|
|
|
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
314
|
|
$
237
|
|
|
|
Average Rentable
Vehicles (in whole units)
|
89,776
|
|
82,364
|
|
|
|
Total revenue per unit
(in whole dollars)
|
$
3,500
|
|
$
2,877
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
Total RPU Per Month (in
whole dollars)
|
$
1,167
|
|
$
959
|
|
22 %
|
|
|
|
|
|
|
|
Vehicle
Utilization
|
|
|
|
|
|
|
Transaction Days (in
thousands)
|
5,908
|
|
5,042
|
|
|
|
Average Rentable
Vehicles (in whole units)
|
89,776
|
|
82,364
|
|
|
|
Number of days in
period (in whole units)
|
90
|
|
90
|
|
|
|
Available Car Days (in
thousands)
|
8,191
|
|
7,415
|
|
|
|
Vehicle Utilization
(b)
|
72 %
|
|
68 %
|
|
|
|
|
|
|
|
|
|
Depreciation Per
Unit Per Month
|
|
|
|
|
|
|
Depreciation of revenue
earning vehicles and lease charges, net
|
$
32
|
|
$
34
|
|
|
|
Foreign currency
adjustment(a)
|
(1)
|
|
(2)
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and lease charges
|
$
31
|
|
$
32
|
|
|
|
Average Vehicles (in
whole units)
|
91,545
|
|
83,591
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and lease charges divided by
Average Vehicles (in whole dollars)
|
$
344
|
|
$
386
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
Depreciation Per Unit
Per Month (in whole dollars)
|
$
115
|
|
$
129
|
|
(11) %
|
|
|
(a) Based on
December 31, 2022 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; change in fair
value of Public Warrants; unrealized (gains) losses on financial
instruments, gain on sale of non-vehicle capital assets and certain
other miscellaneous 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; change in fair value of Public
Warrants; unrealized (gains) losses on financial instruments; gain
on sale of non-vehicle capital assets and certain other
miscellaneous 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
important 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 important
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.
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" 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.
View original
content:https://www.prnewswire.com/news-releases/hertz-reports-first-quarter-2023-results-revenue-of-2-0-billion-net-income-of-196-million-and-adjusted-corporate-ebitda-of-237-million-301808883.html
SOURCE Hertz Global Holdings, Inc.
