ESTERO, Fla., March 26, 2020 /PRNewswire/ — Hertz Global Holdings, Inc. (NYSE: HTZ) ("Hertz" or the "Company") today provided the following business update related to the significant, adverse impact on travel demand from the coronavirus (COVID-19).
"Like the rest of the global travel sector, COVID-19’s impact on Hertz arrived swiftly, and the reversal in customer demand has been significant," said Kathryn V. Marinello. "We are aggressively taking actions to sustain operations and preserve liquidity, while confronting the issues raised by some of the most difficult economic conditions we have experienced."
Hertz experienced strong revenue and productivity in January and February, which followed 10 consecutive quarters of year-over-year revenue growth and nine quarters of year-over-year Adjusted Corporate EBITDA improvement. For the first two months of 2020, global revenue increased 6% on 8% higher U.S. car rental revenue. In March, cities around the world rapidly began shutting down and airline travel decreased dramatically, causing increased rental cancellations and declining forward bookings. Hertz immediately began adjusting fleet levels in response to the reduced travel demand. The Company has been leveraging its multiple used-car channels and negotiating with suppliers to defer new fleet deliveries or modify previously placed orders.
In addition, Hertz is aggressively managing costs and substantially reducing capital expenditures. It is prioritizing sales and marketing strategies to be more in line with the current economic environment, while providing flexibility to support its customers. The Company also has been consolidating local rental locations in the U.S. and Europe, offering customers nearby alternative pick up points, as necessary.
Hertz recently implemented employee furlough programs across its North American field operations and U.S. corporate locations to align staffing levels with the slowdown in demand. This was a very difficult decision and was not easily made, knowing that many good people would be affected. The Company hopes to bring back as many team members as possible once global travel rebounds.
In order to support the organization, while working to effectively manage the dynamic environment and protect the future of the business, senior leaders at Hertz are taking a significant reduction in pay and CEO Marinello is relinquishing 100% of her base salary.
In terms of financial flexibility, the Company has access to approximately $1.0 billion in liquidity with no significant corporate debt maturities due until June 2021. In February, Hertz increased its U.S. vehicle debt capacity by $750 million and does not anticipate any vehicle debt financing requirements for its global car rental business for the remainder of the year.
In addition to reductions in operating and overhead expenses, and deferral of capital expenditures, the Company is taking actions to access surplus equity in its car-rental fleet facilities to provide incremental liquidity. Ultimately, however, available liquidity will depend on the duration and magnitude of the travel slowdown as well as other factors, including trends in used-car values.
Hertz, together with its car rental peers, is actively engaging with U.S. and European governments, seeking financial support to help the industry through this period.
"This situation is unprecedented. Events are unfolding rapidly and the picture changes daily. But Hertz is a resilient company, with resilient brands and resilient people," said Marinello. "The actions we are taking should position us to navigate the current environment and emerge an even stronger business as world travel recovers. Our proactive position ensures we are here to support our customers now – providing critical transportation needs for government, healthcare, delivery and frontline relief workers — and over the long term."
Note on forward-looking statements: This press release contains "forward-looking statements" within the meaning of federal securities laws, including statements related to the expected effects on our business, financial condition and results of operations due to the spread of the COVID-19 virus; the impact of cost and capital expenditure reductions; our liquidity and fleet financing expectations; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including those we identify below and other risk factors that we identify in our most recent annual report on Form 10-K. Risks that could affect forward-looking statements in this press release include the duration and scope of the COVID-19 pandemic and impact on the demand for travel, transient and group business, and levels of consumer confidence; actions governments, businesses and individuals take in response to the pandemic, including limiting or banning travel; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies, travel, and economic activity; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the effects of steps we take to reduce our fleet and operating costs; competitive conditions in the rental car industry; relationships with corporate clients and airport and off airport locations; the availability of capital to purchase new and used vehicles; and the impact of the pandemic and reduced economic activity on used car sales and values. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release. We make these forward-looking statements as of March 26, 2020. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 10,200 corporate and franchisee locations 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. Product and service initiatives such as Hertz Gold Plus Rewards, Ultimate Choice, Carfirmations, Mobile Wi-Fi and unique vehicles offered through its specialty collections set Hertz apart from the competition. Additionally, The Hertz Corporation owns the vehicle leasing and fleet management leader Donlen Corporation, 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.
ESTERO, Fla., March 5, 2020 /PRNewswire/ — Last week Hertz announced Phillip Abma as the winner of the Ultimate Ride Sweepstakes in celebration of its limited-edition custom 2020 Hertz-Hendrick Motorsports Camaro ZL1 and SS models. The custom Camaros debuted last fall and are available for rent this Spring.
Abma, his daughter Leilani (12) and son Ethan (8), with No. 24 William Byron at Hendrick Motorsport facilities
Phillip Abma drove away in a 2020 Hertz-Hendrick Motorsports Camaro SS, celebrating alongside No. 24 William Byron.
"Last week’s event helps us celebrate our rich car culture history providing the right vehicle to meet customer needs, whenever and wherever they need it," said Hertz Senior Vice President Jayesh Patel. "We’re delighted to share the powerful and exhilarating experience of these vehicles with our customers and congratulate Phillip Abma on winning this ultimate ride."
The Hertz Ultimate Ride Sweepstakes brought five finalists to Charlotte, NC for a special experience and the chance to drive home with the Hertz-Hendrick Motorsports Camaro SS. The finalists, Gina Golshani of Oklahoma, Dion Hansen of California, Steven Ipson of Ohio, Tamra Mays of Texas and Phillip Abma of Florida were whisked away to Charlotte, NC for a two-night hotel stay with first class airfare for themselves and a guest. To further enhance the experience, they received a three-day Hertz Premium/Adrenaline collection car rental, $1,000 cash and a heart-pumping track day at Charlotte Motor Speedway with the Hendrick Motorsports Team. William Byron, driver of the No. 24 Hertz Chevrolet ZL1 LE1, turned laps with each finalist in a Hertz branded two-seater race car before a tour of the Hendrick Motorsports facilities. The five winners were then given specially coded key chains. The person with the key that started the 2020 Hertz-Hendrick Motorsports Camaro SS won the grand prize of the Ultimate Ride and $15,000 cash.
Abma was excited to take his two children, Leilani (12) and Ethan (8), to a city they had never been to but never expected to win the grand prize, which is valued at more than $72,000.
"Winning the car is something I cannot put into words," said Abma. "I was not expecting the car to start when I hit the button and I was beyond surprised when it did."
The first thing he plans to do is show the car to his family, who are located in Miami, FL. He has always wanted a Camaro, and now he is the proud owner a custom Hertz-Hendrick Motorsports Camaro SS.
"The experience was incredibly awesome," said Abma. "To be in a race car with a professional driver at insane speeds was a once in a lifetime experience. Riding with William Byron was awesome. I used to be ‘that guy’ who used to think it was just driving and easy. Boy was I ever wrong. It is beyond comprehension how they can deal with the forces exerted for over 200 laps."
Fashioned in the signature Hertz yellow and black color scheme and full performance upgrades outfitted by NASCAR’s most successful team, Hendrick Motorsports Equipped with 480 horsepower and a 6.2L V8 engine, the 2020 Hertz-Hendrick Motorsports Camaro SS is optimized with 20-inch satin black wheels; a Performance Upgrade Package inclusive of a Chevrolet Cold Air Intake and Chevrolet Cat-back Dual Exhaust Upgrade System; custom exterior graphics package; strut tower bar with Hendrick Motorsports branding; custom Hertz lighted door sill plates; embroidered headrests with the No. 24 team logo and William Byron’s signature; Hertz fender badges; and a Hertz-Hendrick Motorsports plaque denoting the individual numbering of the 200 custom Camaros.
The Hertz-Hendrick Motorsports Camaros are available at select Hertz airport locations, including Charlotte, N.C., Dallas, Texas, Ft. Lauderdale, Fla., Ft. Myers, Fla., Houston, Texas, Las Vegas, Nev., Los Angeles, Calif., Miami, Fla., Nashville, Tenn., Orlando, Fla., Phoenix, Ariz., San Diego, Calif., San Francisco, Calif., Tampa, Fla. And West Palm Beach, Fla.
About Hertz Hertz, one of the most recognized brands in the world and currently ranked #1 in Customer Satisfaction by J.D. Power, has a long-standing legacy of providing a fast and easy experience designed to make every journey special. It starts with top-rated vehicles to fit every traveler’s needs, delivered with a caring touch and personalized services including its award-winning Hertz Gold Plus Rewards loyalty program, Ultimate Choice, Hertz Fast Lane powered by CLEAR, Mobile Wi-Fi, and more. Beyond car rental, Hertz is one of the top 10 sellers of pre-owned vehicles in the U.S. with more than 80 Hertz Car Sales retail locations nationwide. Wherever and whenever you need to go, at Hertz, we’re here to get you there. To learn more or reserve a vehicle, visit Hertz.com.
ESTERO, Fla., Feb. 25, 2020 /PRNewswire/ — The Hertz Corporation (NYSE: HTZ), one of the largest car rental companies, has been recognized by Ethisphere, a global leader in defining and advancing the standards of ethical business practices, as one of the World’s Most Ethical Companies of 2020.
The Hertz Corporation – consisting of Hertz, Dollar, Thrifty and Firefly car rental – is the first car rental company to earn this title from Ethisphere. Of the 132 companies being recognized across 21 countries and 51 industries, Hertz is the only company in the Transportation & Logistics category.
"It’s an honor for Hertz to be named one of the most ethical companies in the world and to be the first in our industry to earn such recognition" said Kathryn Marinello, Hertz President and CEO. "We have a robust Compliance team dedicated to educating employees and making sure integrity and compliance are the foundation of our business. It touches everything we do, from our written policies to our relationships with our suppliers and being a first responder on vehicle recalls for the safety of our customers."
The World’s Most Ethical Companies assessment process serves as an operating framework to capture and codify the leading practices of organizations across industries and around the globe. Grounded in Ethisphere’s proprietary Ethics Quotient®, the assessment includes more than 200 questions on culture; environmental and social practices; ethics and compliance activities; governance; diversity; and initiatives to support a strong value chain.
"Hertz is among a select group of companies that infuse integrity into every area of their business," said Timothy Erblich, Ethisphere’s Chief Executive Officer. "The company has a long legacy of being a leader in its industry while also working to advance a culture of compliance. Congratulations to everyone at Hertz on being named as one of the most ethical companies in the world."
About Hertz The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., is one of the largest car rental companies in the world consisting of Hertz – the flagship brand, which is currently rated #1 in Customer Satisfaction by J.D. Power® – as well as the Dollar, Thrifty and Firefly rental companies. Named by Ethisphere® as one of the World’s Most Ethical Companies of 2020, the company operates over 10,200 corporate and franchisee locations in 150 countries.
The Hertz Corporation also owns fleet management leader Donlen and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit: www.hertz.com.
About the Ethisphere Institute The Ethisphere® Institute is the global leader in defining and advancing the standards of ethical business practices that fuel corporate character, marketplace trust and business success. Ethisphere has deep expertise in measuring and defining core ethics standards using data-driven insights that help companies enhance corporate character and measure and improve culture. Ethisphere honors superior achievement through its World’s Most Ethical Companies recognition program and provides a community of industry experts with the Business Ethics Leadership
ESTERO, Fla., Feb. 24, 2020 /PRNewswire/ — Hertz Global Holdings, Inc. (NYSE: HTZ) ("Hertz Global" or the "Company") today reported results for its fourth quarter and year ended December 31, 2019.
Record U.S. RAC revenue, up 6% for the fourth quarter, 7% for the full year on pricing and volume
Record global revenue, up 1% for the fourth quarter, 3% for the full year
Global revenue, excluding Donlen adjustments and fx, increased 5% for the fourth quarter and full year
Net loss attributable to Hertz Global was $118 million for the fourth quarter, $58 million for the full year
Adjusted Corporate EBITDA up 11% for the fourth quarter, 50% for the full year
"We have made tremendous progress over the past three years in re-igniting topline growth, driving margin expansion and improving customer satisfaction. Our latest results reflect 10 straight quarters of year-over-year revenue growth and nine consecutive quarters of year-over-year adjusted corporate EBITDA growth," said Kathryn Marinello, Hertz’s Chief Executive Officer. "We are leveraging our existing capabilities to drive new revenue opportunities and continuing our focus on operational efficiencies to ensure sustainable earnings improvement over the long-term."
For the fourth quarter 2019, total revenues were $2.3 billion, a 1% increase versus the fourth quarter 2018. Net loss attributable to Hertz Global was $118 million, or $0.83 loss per diluted share, compared with net loss attributable to Hertz Global of $101 million for the fourth quarter 2018, or $1.05 loss per diluted share. The Company reported Adjusted Net Loss for the fourth quarter 2019 of $34 million, or $0.24 Adjusted Diluted Loss Per Share, compared with Adjusted Net Loss of $46 million for the fourth quarter 2018, or $0.48 Adjusted Diluted Loss Per Share. Adjusted Corporate EBITDA for the fourth quarter 2019 was $54 million versus $49 million for the same period last year.
For the full-year 2019, total revenues were $9.8 billion, a 3% increase versus 2018. Net loss attributable to Hertz Global was $58 million, or $0.49 loss per diluted share, compared with net loss attributable to Hertz Global of $225 million for 2018, or $2.35 loss per diluted share. The Company reported Adjusted Net Income for 2019 of $168 million, or $1.44 Adjusted Diluted Earnings Per Share, compared with Adjusted Net Loss of $14 million for 2018, or $0.15 Adjusted Diluted Loss Per Share. Adjusted Corporate EBITDA for 2019 was $649 million versus $433 million for 2018.
U.S. RENTAL CAR ("U.S. RAC") SUMMARY __________________________________________________________________
U.S. RAC
Three Months Ended December 31,
Percent Inc/ (Dec)
($ in millions, except where noted)
2019
2018
Total revenues
$
1,673
$
1,575
6
%
Adjusted EBITDA
$
48
$
48
—
%
Adjusted EBITDA Margin
3
%
3
%
Average Vehicles (in whole units)
516,726
498,100
4
%
Vehicle Utilization
79
%
81
%
Transaction Days (in thousands)
37,706
37,036
2
%
Total RPD (in whole dollars)
$
43.54
$
41.88
4
%
Total RPU Per Month (in whole dollars)
$
1,059
$
1,038
2
%
Depreciation Per Unit Per Month (in whole dollars)
$
283
$
256
11
%
Total U.S. RAC revenues of $1.7 billion were a fourth quarter record for the Company and up 6% on higher volume and pricing. Revenue per day was up 4% as pricing improved across all brands, in both business and leisure categories, and in on- and off-airport rentals. Transaction days grew 2% driven by solid demand from the Company’s growth initiatives in TNC and delivery rentals. Vehicle utilization was negatively impacted by a significant number of units on safety recall compared to a year ago and the continued ramp up of trucks and vans to meet future demand for delivery rentals.
Depreciation Per Unit Per Month increased 11%, reflecting lower residual values on certain vehicles sold by the Company during the quarter. The Company continues to benefit from dispositions through its higher returning retail car-sales channel.
Adjusted Corporate EBITDA of $48 million was flat versus the fourth quarter of 2018. These results were driven by strong revenue growth and a 270-basis point improvement in operating expenses and SG&A as a percentage of revenue were offset by higher per-unit depreciation in the quarter.
INTERNATIONAL RENTAL CAR ("INTERNATIONAL RAC") SUMMARY ________________________________________________________________
International RAC
Three Months Ended December 31,
Percent Inc/ (Dec)
($ in millions, except where noted)
2019
2018
Total revenues
$
474
$
487
(3)
%
Adjusted EBITDA
$
(10)
$
8
NM
Adjusted EBITDA Margin
(2)
%
2
%
Average Vehicles (in whole units)
169,971
170,600
—
%
Vehicle Utilization
72
%
72
%
Transaction Days (in thousands)
11,256
11,342
(1)
%
Total RPD (in whole dollars)
$
42.98
$
42.58
1
%
Total RPU Per Month (in whole dollars)
$
949
$
943
1
%
Depreciation Per Unit Per Month (in whole dollars)
$
221
$
204
8
%
NM – Not meaningful
Total International RAC revenues decreased 3% year-over-year and were flat on a constant currency basis. Total RPD was up 1% driven by improved pricing in Asia Pacific and Europe, offset by a volume decline of 1% due to continued softness in Europe.
Depreciation Per Unit Per Month increased 8% driven by residual value declines on certain vehicles that were disposed of during the quarter.
Adjusted EBITDA loss of $10 million reflected lower revenue and higher per-unit depreciation versus the fourth quarter of 2018.
ALL OTHER OPERATIONS SUMMARY ___________________________________
All Other Operations
Three Months Ended December 31,
Percent Inc/ (Dec)
($ in millions, except where noted)
2019
2018
Total revenues
$
179
$
232
(23)
%
Adjusted EBITDA
$
30
$
22
36
%
Adjusted EBITDA Margin
17
%
9
%
Average Vehicles (in whole units) – Donlen
222,400
188,100
18
%
All Other Operations primarily is comprised of the Company’s Donlen leasing operations. Revenue was unfavorably impacted by a change in presentation for certain leased vehicles in 2019, which lowered revenue by $18 million during the quarter. In addition, in the prior year quarter, Donlen experienced higher than normal capital lease volume, resulting in a $53 million increase in revenue and depreciation. Excluding these items, Donlen revenues grew 10% in the quarter which drove a 36% increase in Adjusted EBITDA for the segment behind strong growth in leasing and fleet management.
RIGHTS OFFERING _________________________________
In June 2019, the Company distributed transferable subscription rights to its shareholders to purchase up to an aggregate of 57,915,055 new shares (the "Rights Offering"). The Rights Offering, which was fully subscribed, was consummated in July 2019. As a result of the timing of the subscription period, the rights generated a dilutive impact to the Company’s 2019 basic and diluted earnings per share. The three and twelve months ended December 31, 2018 have been adjusted to reflect the impact of the Rights Offering, and the Company will continue to adjust prior periods for the impact, where necessary.
RESULTS OF THE HERTZ CORPORATION ________________________________________________________________
The GAAP and non-GAAP profitability metrics for Hertz Global’s operating subsidiary, The Hertz Corporation ("Hertz"), are materially the same as those for Hertz Global.
EARNINGS WEBCAST INFORMATION __________________________________________________________
Hertz Global’s live webcast and conference call to discuss its fourth quarter 2019 results will be held on February 25, 2020, at 8:30 a.m. Eastern Time, and can be accessed through a link on the Investor Relations section of the Hertz website, IR.Hertz.com, or by dialing (877) 692-8955 and providing access code 2258216. Investors are encouraged to dial-in approximately 10 minutes prior to the call. A web replay will remain available for approximately one year. A telephone replay will be available one hour following the conclusion of the call for one year at (866) 207-1041 with access code 5425195. The earnings release and related supplemental schedules containing the reconciliations of non-GAAP measures will be available on the Hertz website, IR.Hertz.com.
SELECTED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP MEASURES AND DEFINITIONS ________________________________________________________________________________________________________
Following are tables that present 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 this earnings release and provides the usefulness of non-GAAP measures to investors and additional purposes for which management uses such measures.
ABOUT HERTZ ___________________________
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 10,200 corporate and franchisee locations 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. Product and service initiatives such as Hertz Gold Plus Rewards, Ultimate Choice, Carfirmations, Mobile Wi-Fi and unique vehicles offered through its specialty collections set Hertz apart from the competition. Additionally, The Hertz Corporation owns the vehicle leasing and fleet management leader Donlen Corporation, 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.
Certain statements contained 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" 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 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.
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 others, those that may be disclosed, revised or supplemented from time to time in subsequent reports on Forms 10-K, 10-Q and 8-K filed with or furnished to the Securities and Exchange Commission ("SEC"). Among other items, such factors could include: levels of travel demand, particularly with respect to business and leisure travel in the United States 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, including on the Company’s pricing policies or use of incentives; occurrences that disrupt rental activity during the Company’s peak periods; the Company’s ability to accurately estimate future levels of rental activity and adjust the number and mix of vehicles used in the Company’s rental operations accordingly; increased vehicle costs due to declining value of the Company’s non-program vehicles; the Company’s ability to maintain sufficient liquidity and the availability of additional or continued sources of financing for the Company’s revenue earning vehicles and to refinance the Company’s existing indebtedness; the Company’s ability to adequately respond to changes in technology, customer demands and market competition; the Company’s ability to purchase adequate supplies of competitively priced vehicles and risks relating to increases in the cost of the vehicles it purchases; the Company’s recognition of previously deferred tax gains on the disposition of revenue earning vehicles; financial instability of the manufacturers of the Company’s vehicles, which could impact their ability to fulfill obligations under repurchase or guaranteed depreciation programs; an increase in the Company’s vehicle costs or disruption to the Company’s rental activity, particularly during the Company’s peak periods, due to safety recalls by the manufacturers of the Company’s vehicles; the Company’s ability to execute a business continuity plan; the Company’s access to third-party distribution channels and related prices, commission structures and transaction volumes; the Company’s ability to retain customer loyalty and market share; risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anticorruption or antibribery laws, the Company’s ability to repatriate cash from non-U.S. affiliates without adverse tax consequences, the Company’s exposure to fluctuations in foreign currency exchange rates and the Company’s ability to effectively manage the Company’s international operations after the United Kingdom’s withdrawal from the European Union; a major disruption in the Company’s communication or centralized information networks; a failure to maintain, upgrade and consolidate the Company’s information technology systems; the Company’s ability to prevent the misuse or theft of information it possesses, including as a result of cyber security breaches and other security threats; costs and risks associated with litigation and investigations or any failure or inability to comply with laws and regulations or any changes in the legal and regulatory environment, including laws and regulations relating to environmental matters and consumer privacy and data security; the Company’s ability to maintain its network of leases and vehicle rental concessions at airports 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 maintain an effective employee retention and talent management strategy and resulting changes in personnel and employee relations; changes in the existing, or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations, where such actions may affect the Company’s operations, the cost thereof or applicable tax rates; risks relating to the Company’s deferred tax assets, including the risk of an "ownership change" under the Internal Revenue Code of 1986; the Company’s exposure to uninsured claims in excess of historical levels; risks relating to the Company’s participation in multiemployer pension plans; risks related to the Company’s indebtedness, including the Company’s substantial amount of debt, the Company’s ability to incur substantially more debt, the fact that substantially all of the Company’s consolidated assets secure certain of the Company’s outstanding indebtedness and increases in interest rates or in the Company’s borrowing margins; the Company’s ability to meet the financial and other covenants contained in the Company’s senior credit facilities and letter of credit facility, the Company’s outstanding unsecured senior notes, the Company’s outstanding senior second priority secured notes and certain asset-backed and asset-based arrangements; the Company’s ability to access financial markets, including the financing of the Company’s vehicle fleet through the issuance of asset-backed securities; fluctuations in interest rates and commodity prices; the Company’s ability to sustain operations during adverse economic cycles and unfavorable external events (including war, terrorist acts, natural disasters and epidemic disease); shortages of fuel and increases or volatility in fuel costs; changes in accounting principles, or their application or interpretation, and the Company’s ability to make accurate estimates and the assumptions underlying the estimates, which could have an effect on operating results; and other risks and uncertainties described from time to time in periodic and current reports that the Company files with the SEC.
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 hereof, 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.
____________________
FINANCIAL INFORMATION AND OPERATING DATA _____________________________________________________________________________
SELECTED UNAUDITED CONSOLIDATED INCOME STATEMENT DATA
Three Months Ended December 31,
As a Percentage of Total Revenues
Twelve Months Ended December 31,
As a Percentage of Total Revenues
(In millions, except per share data)
2019
2018
2019
2018
2019
2018
2019
2018
Total revenues
$
2,326
$
2,294
100
%
100
%
$
9,779
$
9,504
100
%
100
%
Expenses:
Direct vehicle and operating
1,339
1,312
58
%
57
%
5,486
5,355
56
%
56
%
Depreciation of revenue earning vehicles and lease charges
672
670
29
%
29
%
2,565
2,690
26
%
28
%
Selling, general and administrative
248
251
11
%
11
%
969
1,017
10
%
11
%
Interest expense, net:
Vehicle
121
113
5
%
5
%
494
448
5
%
5
%
Non-vehicle
98
72
4
%
3
%
311
291
3
%
3
%
Total interest expense, net
219
185
9
%
8
%
805
739
8
%
8
%
Other (income) expense, net
(22)
(4)
(1)
%
—
%
(59)
(40)
(1)
%
—
%
Total expenses
2,456
2,414
106
%
105
%
9,766
9,761
100
%
103
%
Income (loss) before income taxes
(130)
(120)
(6)
%
(5)
%
13
(257)
—
%
(3)
%
Income tax (provision) benefit
15
18
1
%
1
%
(63)
30
(1)
%
—
%
Net income (loss)
(115)
(102)
(5)
%
(4)
%
(50)
(227)
(1)
%
(2)
%
Net (income) loss attributable to noncontrolling interests
(3)
1
—
%
—
%
(8)
2
—
%
—
%
Net income (loss) attributable to Hertz Global
$
(118)
$
(101)
(5)
%
(4)
%
$
(58)
$
(225)
(1)
%
(2)
%
Weighted average number of shares outstanding(a):
Basic
142
96
117
96
Diluted
142
96
117
96
Earnings (loss) per share:
Basic
$
(0.83)
$
(1.05)
$
(0.49)
$
(2.35)
Diluted
$
(0.83)
$
(1.05)
$
(0.49)
$
(2.35)
Adjusted Net Income (Loss)(b)
$
(34)
$
(46)
$
168
$
(14)
Adjusted Diluted Earnings (Loss) Per Share(b)
$
(0.24)
$
(0.48)
$
1.44
$
(0.15)
Adjusted Corporate EBITDA(b)
$
54
$
49
$
649
$
433
(a)
Basic weighted-average shares and weighted-average shares used to calculate diluted earnings (loss) per share for the three and twelve months ended December 31, 2018 have been adjusted to give effect to the Rights Offering.
(b)
Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule II.
SELECTED UNAUDITED CONSOLIDATED BALANCE SHEET DATA
(In millions)
As of December 31, 2019
As of December 31, 2018
Cash and cash equivalents
$
865
$
1,127
Total restricted cash and cash equivalents
495
283
Revenue earning vehicles, net:
U.S. Rental Car
9,820
8,793
International Rental Car
2,319
2,146
All Other Operations
1,650
1,480
Total revenue earning vehicles, net
13,789
12,419
Total assets(a)
24,627
21,382
Total debt
17,089
16,324
Net Vehicle Debt(b)
12,949
11,688
Net Non-vehicle Debt(b)
2,890
3,328
Total stockholders’ equity
1,888
1,120
(a)
On January 1, 2019, the Company adopted new lease guidance under U.S. GAAP and recorded a net cumulative-effect adjustment of $1.5 billion to recognize assets associated with the Company’s leases as of that date.
(b)
Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule V.
SELECTED UNAUDITED CONSOLIDATED CASH FLOW DATA
Twelve Months Ended December 31,
(In millions)
2019
2018
Cash flows provided by (used in):
Operating activities
$
2,900
$
2,556
Investing activities
(4,425)
(4,197)
Financing activities
1,474
1,561
Effect of exchange rate changes
1
(14)
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents
$
(50)
$
(94)
Fleet Growth(a)
$
(161)
$
215
Adjusted Free Cash Flow(a)
$
(202)
$
153
(a)
Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedules III and IV.
Supplemental Schedule I
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
Three Months Ended December 31, 2019
Three Months Ended December 31, 2018
(In millions)
U.S. Rental Car
Int’l Rental Car
All Other Operations
Corporate
Hertz Global
U.S. Rental Car
Int’l Rental Car
All Other Operations
Corporate
Hertz Global
Total revenues:
$
1,673
$
474
$
179
$
—
$
2,326
$
1,575
$
487
$
232
$
—
$
2,294
Expenses:
Direct vehicle and operating
1,019
312
8
—
1,339
998
300
11
3
1,312
Depreciation of revenue earning vehicles and lease charges
439
111
122
—
672
383
106
181
—
670
Selling, general and administrative
126
51
11
60
248
122
61
9
59
251
Interest expense, net:
Vehicle
85
23
13
—
121
75
26
12
—
113
Non-vehicle
(47)
—
(5)
150
98
(42)
(1)
(5)
120
72
Total interest expense, net
38
23
8
150
219
33
25
7
120
185
Other (income) expense, net
(22)
(1)
—
1
(22)
(1)
(3)
—
—
(4)
Total expenses
1,600
496
149
211
2,456
1,535
489
208
182
2,414
Income (loss) before income taxes
$
73
$
(22)
$
30
$
(211)
$
(130)
$
40
$
(2)
$
24
$
(182)
$
(120)
Income tax (provision) benefit
15
18
Net income (loss)
$
(115)
$
(102)
Net (income) loss attributable to noncontrolling interests
(3)
1
Net income (loss) attributable to Hertz Global
$
(118)
$
(101)
Supplemental Schedule I (continued)
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
Twelve Months Ended December 31, 2019
Twelve Months Ended December 31, 2018
(In millions)
U.S. Rental Car
Int’l Rental Car
All Other Operations
Corporate
Hertz Global
U.S. Rental Car
Int’l Rental Car
All Other Operations
Corporate
Hertz Global
Total revenues:
$
6,938
$
2,169
$
672
$
—
$
9,779
$
6,480
$
2,276
$
748
$
—
$
9,504
Expenses:
Direct vehicle and operating
4,146
1,312
28
—
5,486
4,014
1,306
37
(2)
5,355
Depreciation of revenue earning vehicles and lease charges
1,656
440
469
—
2,565
1,678
448
564
—
2,690
Selling, general and administrative
490
221
35
223
969
466
248
37
266
1,017
Interest expense, net:
Vehicle
345
97
52
—
494
291
114
43
—
448
Non-vehicle
(188)
(4)
(21)
524
311
(147)
(1)
(16)
455
291
Total interest expense, net
157
93
31
524
805
144
113
27
455
739
Other (income) expense, net
(38)
—
—
(21)
(59)
(7)
(5)
—
(28)
(40)
Total expenses
6,411
2,066
563
726
9,766
6,295
2,110
665
691
9,761
Income (loss) before income taxes
$
527
$
103
$
109
$
(726)
$
13
$
185
$
166
$
83
$
(691)
$
(257)
Income tax (provision) benefit
(63)
30
Net income (loss)
$
(50)
$
(227)
Net (income) loss attributable to noncontrolling interests
(8)
2
Net income (loss) attributable to Hertz Global
$
(58)
$
(225)
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)
2019
2018
2019
2018
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share:
Net income (loss) attributable to Hertz Global
$
(118)
$
(101)
$
(58)
$
(225)
Adjustments:
Income tax provision (benefit)
(15)
(18)
63
(30)
Vehicle and non-vehicle debt-related charges(a)
13
14
52
50
Loss on extinguishment of debt(b)
39
—
43
22
Restructuring and restructuring related charges(c)
3
6
14
32
Information technology and finance transformation costs(d)
37
24
114
98
Acquisition accounting-related depreciation and amortization(e)
14
14
55
62
Other items(f)
(18)
(1)
(59)
(28)
Adjusted pre-tax income (loss)(g)
(45)
(62)
224
(19)
Income tax (provision) benefit on adjusted pre-tax income (loss)(h)
11
16
(56)
5
Adjusted Net Income (Loss)
$
(34)
$
(46)
$
168
$
(14)
Weighted-average number of diluted shares outstanding
142
96
117
96
Adjusted Diluted Earnings (Loss) Per Share(i)
$
(0.24)
$
(0.48)
$
1.44
$
(0.15)
Adjusted Corporate EBITDA:
Net income (loss) attributable to Hertz Global
$
(118)
$
(101)
$
(58)
$
(225)
Adjustments:
Income tax provision (benefit)
(15)
(18)
63
(30)
Non-vehicle depreciation and amortization(j)
52
52
203
218
Non-vehicle debt interest, net
98
72
311
291
Vehicle debt-related charges(a),(k)
9
10
38
36
Loss on extinguishment of vehicle debt(b)
—
—
—
22
Restructuring and restructuring related charges(c)
3
6
14
32
Information technology and finance transformation costs(d)
37
24
114
98
Other items(f),(l)
(12)
4
(36)
(9)
Adjusted Corporate EBITDA
$
54
$
49
$
649
$
433
Supplemental Schedule II (continued)
(a)
Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.
(b)
In 2019, represents $39 million of early redemption premium and write-off of deferred financing costs associated with the partial redemption in the fourth quarter of the Senior Second Priority Secured Notes and a $4 million write-off of deferred financing costs associated with the full redemption in the third quarter of the 5.875% Senior Notes due October 2020 and 7.375% Senior Notes due January 2021. In 2018, primarily represents $20 million of early redemption premium and write-off of deferred financing costs associated with the full redemption of the 4.375% European Vehicle Senior Notes due January 2019.
(c)
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. In 2018, also includes consulting costs, legal fees, and other expenses related to the previously disclosed accounting review and investigation.
(d)
Represents costs associated with the Company’s information technology and finance transformation programs, both of which are multi-year initiatives to upgrade and modernize the Company’s systems and processes. These costs relate primarily to the Company’s corporate operations ("Corporate").
(e)
Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.
(f)
Represents miscellaneous items. In 2019, includes a $30 million gain on marketable securities in Corporate, of which $5 million was recorded during the fourth quarter of 2019, and a $39 million gain on the sale of non-vehicle capital assets in U.S. RAC, of which $24 million was recorded in the fourth quarter of 2019. In 2018, includes a $20 million gain on marketable securities, and a $6 million legal settlement received related to an oil spill in the Gulf of Mexico in 2010, all of which relate to Corporate.
(g)
Adjustments by caption on a pre-tax basis are as follows:
Increase (decrease) to expenses
Three Months Ended December 31,
Twelve Months Ended December 31,
(In millions)
2019
2018
2019
2018
Direct vehicle and operating
$
(14)
$
(15)
$
(54)
$
(63)
Selling, general and administrative
(42)
(28)
(127)
(127)
Interest expense, net:
Vehicle
(9)
(10)
(38)
(58)
Non-vehicle
(43)
(4)
(57)
(14)
Total interest expense, net
(52)
(14)
(95)
(72)
Other income (expense), net
20
—
57
26
Noncontrolling interests
3
(1)
8
(2)
Total adjustments
$
(85)
$
(58)
$
(211)
$
(238)
(h)
Derived utilizing a combined statutory rate of 25% for the periods ending December 31, 2019 and 2018 applied to the respective Adjusted Pre-tax Income (Loss).
(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 U.S. RAC, International RAC, All Other Operations and Corporate for the three months ended December 31, 2019 are $40 million, $5 million, $2 million and $5 million, respectively, and for the three months ended December 31, 2018 are $38 million, $7 million, $3 million and $4 million respectively. Non-vehicle depreciation and amortization expense for U.S. RAC, International RAC, All Other Operations and Corporate for the twelve months ended December 31, 2019 are $156 million, $23 million, $10 million and $14 million, respectively, and for the twelve months ended December 31, 2018 are $159 million, $32 million, $10 million and $17 million, respectively.
(k)
Vehicle debt related charges for U.S. RAC, International RAC and All Other Operations for the three months ended December 31, 2019 are $6 million, $2 million and $1 million, respectively, and for the three months ended December 31, 2018 are $5 million, $4 million, and $1 million, respectively. Vehicle debt related charges for U.S. RAC, International RAC and All Other Operations for the twelve months ended December 31, 2019 are $22 million, $12 million and $4 million, respectively, and for the twelve months ended December 31, 2018 are $22 million, $10 million and $4 million, respectively.
(l)
Also includes an adjustment for non-cash stock-based compensation charges in Corporate.
Supplemental Schedule III
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE – FLEET GROWTH
Unaudited
Twelve Months Ended December 31, 2019
Twelve Months Ended December 31, 2018
(In millions)
U.S. Rental Car
Int’l Rental Car
All Other Operations
Hertz Global
U.S. Rental Car
Int’l Rental Car
All Other Operations
Hertz Global
Revenue earning vehicles expenditures
$
(9,296)
$
(3,379)
$
(1,039)
$
(13,714)
$
(8,519)
$
(3,171)
$
(803)
$
(12,493)
Proceeds from disposal of revenue earning vehicles
6,283
2,851
352
9,486
5,527
2,749
176
8,452
Net revenue earning vehicles capital expenditures
(3,013)
(528)
(687)
(4,228)
(2,992)
(422)
(627)
(4,041)
Depreciation and reserves for revenue earning vehicles
1,923
399
469
2,791
1,678
358
510
2,546
Financing activity related to vehicles:
Borrowings
9,536
2,338
1,139
13,013
9,457
3,588
964
14,009
Payments
(8,473)
(2,131)
(926)
(11,530)
(8,179)
(3,411)
(836)
(12,426)
Restricted cash changes
(58)
(105)
(44)
(207)
120
26
(19)
127
Net financing activity related to vehicles
1,005
102
169
1,276
1,398
203
109
1,710
Fleet Growth
$
(85)
$
(27)
$
(49)
$
(161)
$
84
$
139
$
(8)
$
215
Supplemental Schedule IV
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE – ADJUSTED FREE CASH FLOW
Unaudited
Twelve Months Ended December 31,
(In millions)
2019
2018
Net cash provided by operating activities
$
2,900
$
2,556
Net change in restricted cash and cash equivalents, vehicle(a)
(207)
127
Revenue earning vehicles expenditures
(13,714)
(12,493)
Proceeds from disposal of revenue earning vehicles
9,486
8,452
Non-vehicle capital asset expenditures
(224)
(177)
Proceeds from non-vehicle capital assets disposed of or to be disposed of
27
51
Proceeds from issuance of vehicle debt
13,013
14,009
Repayments of vehicle debt
(11,530)
(12,426)
Noncontrolling interests
47
54
Adjusted Free Cash Flow(b)
$
(202)
$
153
(a)
Amounts presented for the twelve months ended December 31, 2019 and 2018 exclude a $2 million non-cash impact of foreign currency exchange rates, respectively.
(b)
During the third quarter 2019, the Company changed its definition of Adjusted Free Cash Flow and revised its reconciliation for the twelve months ended December 31, 2018 accordingly.
Supplemental Schedule V
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE – NET DEBT
Unaudited
As of December 31, 2019
As of December 31, 2018
(In millions)
Vehicle
Non-Vehicle
Total
Vehicle
Non-Vehicle
Total
Debt as reported in the balance sheet
$
13,368
$
3,721
$
17,089
$
11,902
$
4,422
$
16,324
Add:
Debt issue costs, discounts and premiums
47
34
81
43
33
76
Less:
Cash and cash equivalents
—
865
865
—
1,127
1,127
Restricted cash
466
—
466
257
—
257
Net Debt
$
12,949
$
2,890
$
15,839
$
11,688
$
3,328
$
15,016
Supplemental Schedule VI
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATIONS OF KEY METRICS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
U.S. Rental Car
Three Months Ended December 31,
Percent Inc/ (Dec)
Twelve Months Ended
December 31,
Percent Inc/ (Dec)
($ in millions, except where noted)
2019
2018
2019
2018
Total RPD
Total Revenues
$
1,673
$
1,575
$
6,938
$
6,480
Ancillary retail vehicle sales revenue
(31)
(24)
(122)
(102)
Total Rental Revenues
$
1,642
$
1,551
$
6,816
$
6,378
Transaction Days (in thousands)
37,706
37,036
155,859
149,463
Total RPD (in whole dollars)
$
43.54
$
41.88
4
%
$
43.73
$
42.67
2
%
Total Revenue Per Unit Per Month
Total Rental Revenues
$
1,642
$
1,551
$
6,816
$
6,378
Average Vehicles (in whole units)
516,726
498,100
534,879
506,900
Total revenue per unit (in whole dollars)
$
3,178
$
3,114
$
12,743
$
12,582
Number of months in period (in whole units)
3
3
12
12
Total RPU Per Month (in whole dollars)
$
1,059
$
1,038
2
%
$
1,062
$
1,049
1
%
Vehicle Utilization
Transaction Days (in thousands)
37,706
37,036
155,859
149,463
Average Vehicles (in whole units)
516,726
498,100
534,879
506,900
Number of days in period (in whole units)
92
92
365
365
Available Car Days (in thousands)
47,539
45,825
195,231
185,019
Vehicle Utilization(a)
79
%
81
%
80
%
81
%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease
charges
$
439
$
383
$
1,656
$
1,678
Average Vehicles (in whole units)
516,726
498,100
534,879
506,900
Depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$
850
$
769
$
3,096
$
3,310
Number of months in period (in whole units)
3
3
12
12
Depreciation Per Unit Per Month (in whole dollars)
$
283
$
256
11
%
$
258
$
276
(7)
%
(a)
Calculated as Transaction Days divided by Available Car Days.
Supplemental Schedule VI (continued)
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATIONS OF KEY METRICS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
International Rental Car
Three Months Ended December 31,
Percent Inc/ (Dec)
Twelve Months Ended December 31,
Percent Inc/ (Dec)
($ in millions, except where noted)
2019
2018
2019
2018
Total RPD
Total Revenues
$
474
$
487
$
2,169
$
2,276
Ancillary retail vehicle sales revenue
—
—
—
(1)
Foreign currency adjustment(a)
10
(4)
24
(82)
Total Rental Revenues
$
484
$
483
$
2,193
$
2,193
Transaction Days (in thousands)
11,256
11,342
50,139
50,417
Total RPD (in whole dollars)
$
42.98
$
42.58
1
%
$
43.73
$
43.49
1
%
Total Revenue Per Unit Per Month
Total Rental Revenues
$
484
$
483
$
2,193
$
2,193
Average Vehicles (in whole units)
169,971
170,600
180,723
180,400
Total revenue per unit (in whole dollars)
$
2,848
$
2,831
$
12,135
$
12,156
Number of months in period (in whole units)
3
3
12
12
Total RPU Per Month (in whole dollars)
$
949
$
943
1
%
$
1,011
$
1,013
—
%
Vehicle Utilization
Transaction Days (in thousands)
11,256
11,342
50,139
50,417
Average Vehicles (in whole units)
169,971
170,600
180,723
180,400
Number of days in period (in whole units)
92
92
365
365
Available Car Days (in thousands)
15,637
15,695
65,964
65,846
Vehicle Utilization(b)
72
%
72
%
76
%
77
%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges
$
111
$
106
$
440
$
448
Foreign currency adjustment(a)
2
(1)
5
(17)
Adjusted depreciation of revenue earning vehicles and lease charges
$
113
$
105
$
445
$
431
Average Vehicles (in whole units)
169,971
170,600
180,723
180,400
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$
665
$
615
$
2,462
$
2,389
Number of months in period (in whole units)
3
3
12
12
Depreciation Per Unit Per Month (in whole dollars)
$
221
$
204
8
%
$
205
$
199
3
%
(a)
Based on December 31, 2018 foreign exchange rates.
(b)
Calculated as Transaction Days divided by Available Car Days.
Supplemental Schedule VI (continued)
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATIONS OF KEY METRICS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
Worldwide Rental Car
Three Months Ended December 31,
Percent Inc/(Dec)
Twelve Months Ended December 31,
Percent Inc/(Dec)
($ in millions, except where noted)
2019
2018
2019
2018
Total RPD
Total Revenues
$
2,147
$
2,062
$
9,107
$
8,756
Ancillary retail vehicle sales revenue
(31)
(24)
(122)
(103)
Foreign currency adjustment(a)
10
(4)
24
(82)
Total Rental Revenues
$
2,126
$
2,034
$
9,009
$
8,571
Transaction Days (in thousands)
48,962
48,378
205,998
199,880
Total RPD (in whole dollars)
$
43.41
$
42.03
3
%
$
43.73
$
42.88
2
%
Total Revenue Per Unit Per Month
Total Rental Revenues
$
2,126
$
2,034
$
9,009
$
8,571
Average Vehicles (in whole units)
686,697
668,700
715,602
687,300
Total revenue per unit (in whole dollars)
$
3,096
$
3,042
$
12,589
$
12,471
Number of months in period (in whole units)
3
3
12
12
Total RPU Per Month (in whole dollars)
$
1,032
$
1,014
2
%
$
1,049
$
1,039
1
%
Vehicle Utilization
Transaction Days (in thousands)
48,962
48,378
205,998
199,880
Average Vehicles (in whole units)
686,697
668,700
715,602
687,300
Number of days in period (in whole units)
92
92
365
365
Available Car Days (in thousands)
63,176
61,520
261,195
250,865
Vehicle Utilization(b)
78
%
79
%
79
%
80
%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges
$
550
$
489
$
2,096
$
2,126
Foreign currency adjustment(a)
2
(1)
5
(17)
Adjusted depreciation of revenue earning vehicles and lease charges
$
552
$
488
$
2,101
$
2,109
Average Vehicles (in whole units)
686,697
668,700
715,602
687,300
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$
804
$
730
$
2,936
$
3,069
Number of months in period (in whole units)
3
3
12
12
Depreciation Per Unit Per Month (in whole dollars)
$
268
$
243
10
%
$
245
$
256
(4)
%
Note: Worldwide Rental Car represents U.S. Rental Car and International Rental Car segment information on a combined basis and excludes the All Other Operations segment, which is primarily comprised of the Company’s Donlen leasing operations, and Corporate.
(a)
Based on December 31, 2018 foreign exchange rates.
(b)
Calculated as Transaction Days divided by Available Car Days.
NON-GAAP MEASURES AND KEY METRICS _______________________________________________________________________________________________________
Hertz Global is the top-level holding company that indirectly wholly owns The Hertz Corporation (together, the "Company"). The term "GAAP" refers to accounting principles generally accepted in the United States of America. 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 Diluted EPS")
Adjusted Net Income (Loss) represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax, debt-related charges and losses, restructuring and restructuring related charges, intangible and tangible asset impairments and write-downs, information technology and finance transformation costs, non-cash acquisition accounting charges 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 Diluted 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 Diluted EPS are important to management because they allow management 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, net non-vehicle debt interest, vehicle debt-related charges and losses, restructuring and restructuring related charges, goodwill, intangible and tangible asset impairments and write-downs, information technology and finance transformation costs 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 to facilitate 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 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 Free Cash Flow
Adjusted Free Cash Flow represents net cash provided by operating activities, including the change in restricted cash and cash equivalents related to vehicles, net revenue earning vehicle and capital asset expenditures and the net impact of vehicle financing activities. During the third quarter 2019, the Company changed its definition of Adjusted Free Cash Flow to exclude the impact of noncontrolling interests which primarily eliminates proceeds from vehicle sales upon consolidation of the Company, but not the associated repayment of vehicle debt. Adjusted Free Cash Flow is important to management and investors as it provides useful information about the amount of cash available for acquisitions and the reduction of non-vehicle debt.
Fleet Growth
Fleet Growth represents 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 to management as it allows the Company to assess the cash flow required to support its investment in revenue earning vehicles.
Net Non-vehicle Debt, Net Vehicle Debt and Total Net Debt
Net Non-vehicle Debt represents non-vehicle debt as reported on the Company’s balance sheet, excluding the impact of unamortized debt issue costs, discounts and premiums associated with non-vehicle debt, less cash and cash equivalents. This measure is important to management and investors as it helps measure the Company’s net corporate leverage. It 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 represents vehicle debt as reported on the Company’s balance sheet, excluding the impact of unamortized debt issue costs, discounts and premiums 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 and its vehicle rental like-kind exchange program. 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 is the sum of Net Non-vehicle Debt and Net Vehicle debt and is important to management, investors and ratings agencies as it helps measure the Company’s gross leverage.
KEY METRICS
Available Car Days
Available Car Days represents Average Vehicles multiplied by the number of days in a 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.
Depreciation Per Unit Per Month
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. Management believes eliminating the effect of fluctuations in foreign currency exchange rates is appropriate so as not to affect the comparability of underlying trends. This metric is important to management and investors as it is reflective of how the Company is managing the costs of its vehicles and facilitates in comparison with other participants in the vehicle rental industry.
Time and Mileage Revenue Per Transaction Day ("Time and Mileage pricing" or "T&M Rate")
Time and Mileage ("T&M") pricing represents the ratio of Total Rental Revenues, less ancillary revenue from value-added services, such as charges to the customer for the fueling of vehicles, loss damage waivers, insurance products, supplemental equipment and other consumables, to Transaction Days. This metric is important to management and investors as it represents a measurement of the changes in base rental fees, which comprise the majority of the Company’s Total RPD.
Total Rental Revenues
Total Rental Revenues represents total revenues less ancillary retail vehicle sales revenues, with all periods adjusted to eliminate the effect of fluctuations in foreign currency exchange rates. Management believes eliminating the effect of fluctuations in foreign currency exchange rates is appropriate so as not to affect the comparability of underlying trends. This metric is important to management and investors as it represents a measurement that excludes the impact of revenues generated from non-vehicle rental activity, such as ancillary revenues resulting from vehicle sales and facilitates in 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 the ratio of Total Rental Revenues to Transaction Days. This metric is important to management and investors as it represents a measurement of the changes in 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 average Total Rental Revenues per vehicle per month. This metric is important to management and investors as it provides a measure of revenue productivity relative to fleet capacity, or asset efficiency.
Transaction Days ("Days"; also referred to as "volume")
Transaction Days, also known as volume, represent 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 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 fleet capacity.
NEW YORK and ESTERO, Fla., Jan. 23, 2020 /PRNewswire/ — Today Hertz announced a new campaign that recognizes the people who helped make Hertz #1 in customer satisfaction by J.D. Power. To kick off the effort, Hertz partnered with American football running back, Jerome "The Bus" Bettis to celebrate customers with special experiences at the Big Game. One lucky Hertz Gold Plus Rewards member will win a grand prize* of a Hertz helicopter tour of the host city and chauffeured car service to the stadium. Plus, 100 customers (50 winners plus guest) will ride in style to and from the Big Game* in a decked-out Hertz bus. To broaden the celebration, Hertz is offering $300 Hertz certificates to winners who engage with the brand on Instagram.
The Hertz "Extra Mile" campaign celebrates the people who go the extra mile for their families, friends and communities. It spotlights the selfless acts that inspire the Hertz team to go the extra mile.
Jerome “The Bus” Bettis kicks off the Hertz "Extra Mile" campaign. “I’ve been a Hertz Gold Reward member for more than 20 years because the Hertz team always takes great care of me.”
One lucky Hertz Gold Plus Rewards member will win a grand prize of a Hertz helicopter tour of Miami and chauffeured car service to the stadium.
A rendering of the Hertz decked-out bus. Fifty winners and their guests will ride in style to and from the Big Game.
"Our customers inspire us every day and we love the opportunity to go the extra mile for them," said Jayesh Patel, Senior Vice President of Hertz Brand. "We’re excited to work with first-class football great Jerome "The Bus" Bettis to offer a unique and special experience in Miami for the Big Game. We know that the journey to get there is as important as the destination itself. This is just the beginning of celebrating with our customers as a thank you for all they do to inspire us."
The Hertz "Extra Mile" campaign first starts with the Big Game experience, followed by TV, digital and social advertising beginning in February. The advertising will celebrate the inspirational people who go the extra mile for their families, friends and communities like the dedicated soccer moms and dads who shuttle teams to the game, to those who give their time to help friends move. The campaign aims to spotlight the selfless acts that in turn inspire the Hertz team to go the extra mile to make their customers’ journeys special.
"I worked hard to be at the top of my game, and I want to work with others who are #1 like Hertz," said Jerome Bettis, Senior. "My family and I have been loyal Hertz customers for years because of the great service we always receive from the Hertz team. I’m honored to partner with Hertz to kick off their "Extra Mile" campaign in football territory.
About the Hertz Big Game Sweepstakes To enter the Hertz Big Game Sweepstakes, participants must be a Hertz Gold Plus Rewards member. For free enrollment and to enter the Big Game Sweepstakes, visit hertz.com/biggamesweeps.
Others wanting to participate in the festivities can win $300 towards their future Hertz rental by sharing the Hertz Big Game Instagram post to their story and tagging @hertz and liking @hertz Instagram page. One winner will be chosen each day between January 23rd and February 1st.
*Prize package includes transportation (bus ride or helicopter) to and from the game. Prize does not include tickets to the game.
About Hertz Hertz, one of the most recognized brands in the world and currently ranked #1 in Customer Satisfaction by J.D. Power, has a long-standing legacy of providing a fast and easy experience designed to make every journey special. It starts with top-rated vehicles to fit every traveler’s needs, delivered with a caring touch and personalized services including its award-winning Hertz Gold Plus Rewards loyalty program, Ultimate Choice, Hertz Fast Lane powered by CLEAR, Mobile Wi-Fi, and more. Beyond car rental, Hertz is one of the top 10 sellers of pre-owned vehicles in the U.S. with more than 80 Hertz Car Sales retail locations nationwide. Wherever and whenever you need to go, at Hertz, we’re here to get you there. To learn more or reserve a vehicle, visit Hertz.com.
Hertz pioneered the car rental industry more than 100 years ago and today is owned by Hertz Global Holdings, Inc. which includes Dollar and Thrifty vehicle rental brands and fleet management leader Donlen Corporation.
ESTERO, Fla., Jan. 22, 2020 /PRNewswire/ — Hertz Global Holdings, Inc. (NYSE: HTZ) announced today that it plans to report its fourth quarter 2019 financial results after market close on Monday, February 24 and will host its accompanying webcast and conference call to discuss such results on Tuesday, February 25 at 8:30 a.m. ET.
This webcast and conference call can be accessed through a link on the Investor Relations section of the Hertz website, ir.hertz.com, or by dialing (877) 692-8955 and providing access code 2258216. Investors are encouraged to dial-in approximately 10 minutes prior to the call. A web replay will remain available for approximately one year. A telephone replay will be available one hour following the conclusion of the call for one year at (866) 207-1041 with access code 5425195.
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 10,200 corporate and franchisee locations 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. Product and service initiatives such as Hertz Gold Plus Rewards, Ultimate Choice, Carfirmations, Mobile Wi-Fi and unique vehicles offered through its specialty collections set Hertz apart from the competition. Additionally, The Hertz Corporation owns the vehicle leasing and fleet management leader Donlen Corporation, 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.
ESTERO, Fla., Dec. 17, 2019 /PRNewswire/ — Hertz (NYSE: HTZ), one of the most iconic car rental brands, has earned several accolades from top influencers in the travel industry throughout 2019.
"We’re thrilled that the biggest names in the travel industry are continuing to recognize Hertz year after year," said Hertz President and CEO Kathryn Marinello. "Our goal is to provide our customers with the best possible experience, and these awards are a reflection of the hard work our employees put into making that happen every day."
Exceptional Service
Hertz remains relentlessly focused on what matters most to its customers, listening to their feedback and acting on it to improve their experience. Earlier this year Hertz earned the No. 1 overall ranking in the J.D. Power 2019 North America Rental Car Satisfaction Study – a direct result of the company’s commitment to providing caring, personalized service, offering top-rated vehicles and investing in customer-centric technologies that enhance the travel experience. In addition to earning the highest score in overall Customer Satisfaction, the company took the top spot in multiple categories for its fast and easy-to-use service including the reservation process, pick-up process, return process and cost and fees.
This year thousands of Global Traveler magazine readers voted in the GT Tested Reader Survey Awards to honor Hertz with the title of Best Car Rental Company for the sixth consecutive year, and Millennial readers of Global Traveler‘s sister web publication, trazeetravel.com, voted in the 2019 Trazees Awards to name Hertz as their Favorite Car Rental Company.
For the seventh consecutive year, Hertz received the Women’s Choice Award® for America’s Most Recommended™ Car Rental Brand. The Women’s Choice Awards are based on a national survey distributed to tens of thousands of women across the country who were asked to select brands they would highly recommend to family and friends, and Hertz won in multiple categories, including Business Travel, Loyalty Programs, Overall Customer Service and Best Value.
Additionally, more than 100,000 readers of the online publication The Points Guy (TPG) voted Hertz as the Best Car Rental Company in the 2019 TPG Awards, and Hertz earned the title of Leading Car Rental Company in more than 40 regions and countries from the World Travel Awards.
Hertz was also named Best in Car Rentals for the Domestic and International categories in the 17th annual Travel Weekly Readers Choice Awards, an honor that Hertz has received several years in a row.
Leaders in the Industry
Hertz leaders were recognized in 2019 for the innovation and outstanding leadership they have contributed to the travel industry. Hertz President and CEO Kathryn Marinello was recently named to Business Travel News’ 2019 list of the Most Influential People in Business Travel, and two other Hertz executives – Susan Jacobs, senior vice president, global Dollar and Thrifty brands, and Laura Smith, senior vice president, global Customer Experience – received accolades from WINit by GBTA, a network for driving positive change for the career mobility of women in travel-related industries. Jacobs received the Most Innovative Trailblazer Award, which celebrates the business success and creativity of a woman who advances innovation by developing and creating new ideas, while Smith was honored with the Rising Female Leader Award for her impressive career path at Hertz, which began 17 years ago managing a small team in Dublin, Ireland.
Best in Customer Loyalty
Hertz’s best-in-class loyalty program was awarded when FlyerTalk, the popular online community of frequent travelers, voted the Hertz Gold Plus Rewards® program the Best Rewards Program in the Drive category across every geographic region in the world – the Americas, Europe/Africa and Middle East/Asia/Oceana – for the eighth consecutive year. The program earned FlyerTalk Awards for Outstanding Benefit globally as well for the following member benefits: Hertz Ultimate Choice (Americas), Five Star and President’s Circle (Europe/Africa) and Platinum Elite service (Middle East/Asia/Oceana).
The Hertz Gold Plus Rewards program was further honored with several Frequent Traveler (FT) Awards. The program won in nearly every category for the Americas –– Best Overall Promotion, Best Elite Program, Best Loyalty Customer Service and Program of the Year. In recognition of Hertz’s innovation in the loyalty industry, the Loyalty Titan Panel of the FT Awards –– comprised of notable leaders in the loyalty industry –– honored the program with the coveted Titan Award, which is awarded to one hotel, airline and car rental company each year.
For more information about Hertz, visit Hertz.com.
About Hertz
Hertz, one of the most recognized brands in the world and currently ranked #1 in Customer Satisfaction by J.D. Power, has a long-standing legacy of providing a fast and easy experience designed to make every journey special. It starts with top-rated vehicles to fit every traveler’s needs, delivered with a caring touch and personalized services including its award-winning Hertz Gold Plus Rewards loyalty program, Ultimate Choice, Hertz Fast Lane powered by CLEAR, Mobile Wi-Fi, and more. Beyond car rental, Hertz is one of the top 10 sellers of pre-owned vehicles in the U.S. with more than 80 Hertz Car Sales retail locations nationwide. Wherever and whenever you need to go, at Hertz, we’re here to get you there. To learn more or reserve a vehicle, visit Hertz.com.
Hertz pioneered the car rental industry more than 100 years ago and today is owned by Hertz Global Holdings, Inc. which includes Dollar and Thrifty vehicle rental brands and fleet management leader Donlen Corporation.
LONDON and ROISSY, France, Nov. 27, 2019 /PRNewswire/ — Longstanding partners Hertz International, part of Hertz Global Holdings, Inc. (NYSE: HTZ), and Air France are now offering passengers of the French flag carrier the new transfer service with private driver Hertz DriveU at more than 300 airports globally. Air France customers opting for the service will enjoy the peace of mind of having high-quality, hassle-free transportation to and from the airport, arranged ahead of their flight.
Hertz and Air France launch transfer service with private driver Hertz DriveU.
Hertz DriveU is the latest addition to Hertz’s broad selection of innovative travel solutions, designed to meet all customer transportation needs. Seamlessly integrated into Air France’s customer journey, the service offers a fully reliable and convenient alternative to taxis and other transportation means.
Vincent Gillet, VP Marketing, Hertz International, said: "Hertz, which pioneered ‘Fly/Drive’ in 1932, and Air France have been offering passengers a seamless union of top air and ground transportation for more than 30 years. Hertz DriveU is yet another innovative addition to the unique selection of Hertz products and services that Air France passengers can easily access from the airline’s website before, during or after the reservation of their flight."
Soline de Montrémy, SVP Global Sales and Commercial Partnerships at Air France, added: "Our aim is to provide our customers with a trip that is as stress-free as possible. By offering the new transfer service with private driver our customers can relax for the rest of their trip, as they know someone is waiting for them. I am delighted with Hertz DriveU, which allows us to offer a high-quality customer experience, both on the ground and on board."
A tailor-made service, easy to book
Air France customers and Flying Blue members travelling onboard partner airlines’ flights can easily pre-book Hertz DriveU from airfrance.hertzdriveu.com up to 3 hours before the transfer, with the peace of mind that the price they see is the final price they pay (with no unexpected costs). They will then receive an email confirming the booking, and a text message just before pick-up with the driver’s full details, including contact numbers, pick-up location and vehicle information.
Hertz DriveU quality vehicles are grouped under Standard, Premium, Luxury, Green and Van categories for customers to choose the option that best suits their needs in more than 300 airports across 70 countries.
For airport pickups, a Hertz DriveU professional driver, equipped with a digital board displaying the passenger’s name, will be waiting at arrivals up to 90 minutes, depending on the vehicle’s category at no extra cost. As part of the service, the customer’s flight is tracked at all times to ensure that the driver is at the airport when the customer arrives, even if there has been a last minute change.
As changes are part of daily life, customers can also cancel the service for free up to one hour before the booked pickup time.
In addition, members of the Flying Blue loyalty programme using Hertz DriveU will earn 3 Miles per dollar, euro or pound spent.
Part of Air France La Première service
As part of the exclusive, tailor-made services available to them, Air France customers travelling in La Première – the company’s most exclusive cabin – can currently enjoy complimentary Hertz DriveU transfers at Paris-Charles de Gaulle – more airports to come.
Each Air France La Première guests receives a personalised welcome throughout his/her journey, starting with a Hertz DriveU transfer with a private driver. La Première customers travelling with Hertz DriveU to Paris-Charles de Gaulle will be greeted by a porter who will accompany them to La Première Lounge, where they can relax or enjoy fine dining by Alain Ducasse. Then, customers will be ready for their stress-free boarding at their convenience, before their tailor-made flight in their La Première cabin.
The service can be booked via a dedicated telephone number for La Première customers, up to 24 hours before the transfer.
About Air France
Air France, airline of French inspiration, with high standards and a caring attitude, turns the flight into a moment of real pleasure on all its daily operations in France, Europe and worldwide.
Air France-KLM is the leading Group in terms of international traffic on departure from Europe. It offers its customers access to a network covering 312 destinations in 116 countries thanks to Air France, KLM Royal Dutch Airlines and Transavia. With a fleet of 550 aircraft and 101.4 million passengers carried in 2018, Air France-KLM operates up to 2,300 daily flights, mainly from its hubs at Paris-Charles de Gaulle and Amsterdam-Schiphol.
Its Flying Blue loyalty program is one of the leaders in Europe with over 15 million members.
Together with its partners Delta Air Lines and Alitalia, Air France and KLM operates the largest transatlantic joint venture with more than 275 daily flights.
The group also offers cargo transport and aeronautical maintenance solutions.
Air France and KLM are also members of the SkyTeam alliance which has 19 member airlines, offering customers access to a global network of over 14,500 daily flights to more than 1,150 destinations in more than 175 countries.
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 10,200 company-owned, licensee and franchisee locations 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 rental companies, and the Hertz brand is one of the most recognized in the world. Product and service initiatives such as Hertz Gold Plus Rewards, Ultimate Choice, Carfirmations, Mobile Wi-Fi and unique vehicles offered through its specialty collections set Hertz apart from the competition. Additionally, The Hertz Corporation owns the vehicle leasing and fleet management leader Donlen, 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.
LONDON, Nov. 25, 2019 /PRNewswire/ — Hertz Global Holdings, Inc., (NYSE: HTZ) announced that Angela Brav has joined the company as President of Hertz’s International division.
Brav, a respected spokesperson for the travel industry, brings 25 years of executive experience with InterContinental Hotels Group (IHG) in multiple operational and strategic roles in the U.S. and Europe. Most recently as CEO of IHG’s European Region, she led the successful turnaround of that business by elevating and leveraging brand, distribution, franchise and technology opportunities. She is based at the car rental company’s international headquarters near London, UK., and will report to Hertz President & CEO, Kathryn Marinello.
"Angela brings a proven track record of shaping growth strategy, demonstrating multi-brand capabilities, developing franchise portfolios and exhibiting innovative thought leadership all of which are central to our continued success," said Marinello. "She shares our passion for elevating the customer experience and investing in and developing her teams. She is a strong addition to our leadership team with a focus on strategic, long-term planning for the international business."
About Hertz Hertz, one of the most recognized brands in the world and currently ranked #1 in Customer Satisfaction by J.D. Power, has a long-standing legacy of providing a fast and easy experience designed to make every journey special. It starts with top-rated vehicles to fit every traveler’s needs, delivered with a caring touch and personalized services including its award-winning Hertz Gold Plus Rewards loyalty program, Ultimate Choice, Hertz Fast Lane powered by CLEAR, Mobile Wi-Fi, and more. Beyond car rental, Hertz is one of the top 10 sellers of pre-owned vehicles in the U.S. with more than 80 Hertz Car Sales retail locations nationwide. Wherever and whenever you need to go, at Hertz, we’re here to get you there. To learn more or reserve a vehicle, visit Hertz.com.
Hertz pioneered the car rental industry more than 100 years ago and today is owned by Hertz Global Holdings, Inc. which includes Dollar and Thrifty vehicle rental brands and fleet management leader Donlen Corporation.
ESTERO, Fla., Nov. 20, 2019 /PRNewswire/ — Two Hertz Corporation (NYSE: HTZ) executives were recently recognized for innovation and outstanding leadership by WINit by GBTA – a network for driving positive change for career mobility of women in travel-related industries – at the inaugural WINit Awards at WINit Gala 2019 in New York City.
Hertz executives Susan Jacobs and Laura Smith receive 2019 WINit Awards
Susan Jacobs, senior vice president, global Dollar and Thrifty brands, received the Most Innovative Trailblazer Award, which celebrates the business success and creativity of a woman who advances innovation by developing and creating new ideas. Jacobs was recognized in part for spearheading the successful launch and implementation of Dollar Car Rental’s industry-leading debit card policy change which has enabled more Dollar customers to rent vehicles.
Laura Smith, senior vice president, global Customer Experience, received the Rising Female Leader Award for her impressive career path at Hertz, which began 17 years ago managing a small team in Dublin, Ireland. Today, Smith oversees the company’s global Customer Care and Customer Experience organizations, comprised of thousands of employees. Her leadership is also attributed to the company achieving record high customer satisfaction scores in North America, which was further reinforced with Hertz’s No. 1 ranking in the 2019 J.D. Power Rental Car Rental Satisfaction Study.
"Susan and Laura are true role models for leadership and I’m continuously impressed by their ingenuity and passion for the success of our people and customers," said Jodi Allen, Hertz executive vice president and chief marketing officer. "They have made a tremendous impact and I’m thrilled they are being honored for the difference they’re making at our company and within the travel industry."
ABOUT HERTZ The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 10,200 company-owned, licensee and franchisee locations 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. Product and service initiatives such as Hertz Gold Plus Rewards, Ultimate Choice, Carfirmations, Mobile Wi-Fi and unique vehicles offered through its specialty collections set Hertz apart from the competition. Additionally, The Hertz Corporation owns the vehicle leasing and fleet management leader Donlen Corporation, 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.
