Author: dadams2025

"We’re moving quickly with a best-in-class leadership team, a strategy laser-focused on delivering sustainable returns and elevating our operational performance across the business," said Gil West, Hertz CEO. "During the second quarter, we bolstered our liquidity to expedite our cost and revenue improvement initiatives and accelerate our fleet refresh to provide vehicles aligned with customer needs. We are at an exciting inflection point in our path to generate greater value for our customers, employees and shareholders – and I am more confident than ever in our plan, our team and the road ahead."

ESTERO, Fla., Aug. 1, 2024 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz", "Hertz Global" or the "Company") today reported results for its second quarter 2024.

OVERVIEW

• Revenue of $2.4 billion
• GAAP net loss of $865 million, a negative 37% margin, or $2.82 loss per diluted share
• Adjusted net loss of $440 million, or $1.44 loss per diluted share
• Adjusted Corporate EBITDA of negative $460 million, a negative 20% margin, due mainly to an increase in vehicle depreciation of $706 million largely driven by acceleration of the Company’s fleet refresh
• GAAP operating cash flow of $546 million; Adjusted operating cash outflow of $576 million and adjusted free cash outflow of $553 million
• The Company raised $1 billion during the quarter to bolster liquidity and de-risk its fleet refresh
• Corporate liquidity of $1.8 billion at June 30, 2024

SECOND QUARTER RESULTS

Second quarter revenue was $2.4 billion. Demand was healthy yet the Company remained disciplined on capacity and prioritized rate. Execution of the Company’s revenue strategy continued to narrow its year-over-year RPD decline, which was 3% for the quarter and moderated to 2% in June.

Vehicle depreciation increased $706 million compared to the prior year quarter due mainly to a decline in future and current residual values. As previously announced, acceleration of the Company’s fleet refresh shortened the hold period on a substantial portion of its fleet, which resulted in DPU of $600 for the quarter, up sequentially from Q1 2024. The Company expects to substantially complete the refresh by the end of 2025, at which time it expects DPU to normalize in the low $300s.

Direct operating expense on a per transaction day basis in the second quarter of 2024 increased by 7% year over year. Approximately 30% of the increase was driven by non-recurring charges in both periods. The remaining increase was driven by insurance, personnel, and collision and damage costs, as well as general inflationary pressure. The Company has cost management actions in place to reduce expenses and increase productivity.

Consistent with previous guidance, Adjusted Corporate EBITDA was negative $460 million in the quarter compared with positive Adjusted Corporate EBITDA of $347 million in the prior year quarter. The decrease was due mainly to increased vehicle depreciation.

Recently, the Company announced critical executive management appointments to strengthen its leadership team and sharpen the Company’s focus on driving enhanced profitability through operational excellence, superior customer service, strategic fleet management, cost control, and premium revenue.

SUMMARY RESULTS

	Three Months Ended June 30,				Percent Inc/(Dec) 2024 vs 2023
($ in millions, except earnings per share or where noted)	2024		2023
Hertz Global – Consolidated
Total revenues	$ 2,353		$ 2,437		(3) %
Net income (loss)	$ (865)		$ 139		NM
Net income (loss) margin	(37) %		6 %
Adjusted net income (loss)(a)	$ (440)		$ 227		NM
Adjusted diluted earnings (loss) per share(a)	$ (1.44)		$ 0.72		NM
Adjusted Corporate EBITDA(a)	$ (460)		$ 347		NM
Adjusted Corporate EBITDA Margin(a)	(20) %		14 %
Average Vehicles (in whole units)	577,224		561,277		3 %
Average Rentable Vehicles (in whole units)	546,187		533,813		2 %
Vehicle Utilization	80 %		82 %
Transaction Days (in thousands)	39,721		39,705		— %
Total RPD (in dollars)(b)	$ 59.65		$ 61.62		(3) %
Total RPU Per Month (in whole dollars)(b)	$ 1,446		$ 1,527		(5) %
Depreciation Per Unit Per Month (in whole dollars)(b)	$ 600		$ 197		NM
Americas RAC Segment
Total revenues	$ 1,928		$ 2,015		(4) %
Adjusted EBITDA	$ (403)		$ 331		NM
Adjusted EBITDA Margin	(21) %		16 %
Average Vehicles (in whole units)	467,863		457,405		2 %
Average Rentable Vehicles (in whole units)	439,284		431,921		2 %
Vehicle Utilization	81 %		83 %
Transaction Days (in thousands)	32,216		32,469		(1) %
Total RPD (in dollars)(b)	$ 59.94		$ 62.11		(3) %
Total RPU Per Month (in whole dollars)(b)	$ 1,465		$ 1,556		(6) %
Depreciation Per Unit Per Month (in whole dollars)(b)	$ 645		$ 198		NM
International RAC Segment
Total revenues	$ 425		$ 422		1 %
Adjusted EBITDA	$ (6)		$ 96		NM
Adjusted EBITDA Margin	(1) %		23 %
Average Vehicles (in whole units)	109,361		103,872		5 %
Average Rentable Vehicles (in whole units)	106,903		101,892		5 %
Vehicle Utilization	77 %		78 %
Transaction Days (in thousands)	7,505		7,237		4 %
Total RPD (in dollars)(b)	$ 58.38		$ 59.41		(2) %
Total RPU Per Month (in whole dollars)(b)	$ 1,366		$ 1,406		(3) %
Depreciation Per Unit Per Month (in whole dollars)(b)	$ 409		$ 188		NM

NM – Not meaningful

(a) Represents a non-GAAP measure. See the accompanying reconciliations included in Supplemental Schedule II for 2024 and 2023.

(b) Based on December 31, 2023 foreign exchange rates.

EARNINGS WEBCAST INFORMATION

Hertz Global’s live webcast and conference call to discuss its second quarter 2024 results will be held on August 1, 2024, at 9:00 a.m. Eastern Time. The conference call will be broadcast live in listen-only mode on the Company’s investor relations website at IR.Hertz.com. If you would like to access the call by phone and ask a question, please go to Hertz Q2 earnings participant call link, and you will be provided with dial in details. Investors are encouraged to dial-in approximately 15 minutes prior to the call. A web replay will remain available on the website for approximately one year. The earnings release and related supplemental schedules containing the reconciliations of non-GAAP measures will be available on the Hertz website, IR.Hertz.com.

UNAUDITED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP MEASURES AND DEFINITIONS

In this earnings release, we include select unaudited financial data of Hertz Global, Supplemental Schedules, which are provided to present segment results, and reconciliations of non-GAAP measures to their most comparable GAAP measures. Following the Supplemental Schedules, the Company provides definitions for terminology used throughout the earnings release and its rationale on the importance and usefulness of non-GAAP measures for investors and management.

ABOUT HERTZ

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 are identified by words such as "believe," "expect," "project," "potential," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts," "guidance" or similar expressions, and include information concerning our liquidity, our results of operations, our business strategies, the business environment and other information. These forward-looking statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors. The Company believes these judgments are reasonable, but you should understand that these forward-looking statements are not guarantees of future performance or results, and that the Company’s actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative, that may be revised or supplemented in subsequent reports, such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed or furnished to the SEC.

Important factors that could affect the Company’s actual results and cause them to differ materially from those expressed in forward-looking statements include, among other things:

• mix of program and non-program vehicles in the Company’s fleet, which can lead to increased exposure to residual value risk upon disposition;
• the potential for residual values associated with non-program vehicles in the Company’s fleet to decline, including suddenly or unexpectedly, or fail to follow historical seasonal patterns;
• the Company’s ability to purchase adequate supplies of competitively priced vehicles at a reasonable cost in order to efficiently service rental demand, including upon any disruptions in the global supply chain;
• the Company’s ability to effectively dispose of vehicles, at the times and through the channels, that maximize the Company’s returns;
• the age of the Company’s fleet, and its impact on vehicle carrying costs, customer service scores, as well as on the Company’s ability to sell vehicles at acceptable prices and times;
• whether a manufacturer of the Company’s program vehicle fulfills its repurchase obligations;
• the frequency or extent of manufacturer safety recalls;
• levels of travel demand, particularly business and leisure travel in the U.S. and in global markets;
• seasonality and other occurrences that disrupt rental activity during the Company’s peak periods, including in critical geographies;
• the Company’s ability to accurately estimate future levels of rental activity and adjust the number, location and mix of vehicles used in the Company’s rental operations accordingly;
• the Company’s ability to implement its business strategy or strategic transactions, including the Company’s ability to implement plans to support an electric vehicle fleet and to play a central role in the modern mobility ecosystem;
• the Company’s ability to achieve cost savings and normalized depreciation levels, as well as revenue enhancements from its profitability initiatives and other operational programs;
• the Company’s ability to adequately respond to changes in technology impacting the mobility industry;
• significant changes in the competitive environment and the effect of competition in the Company’s markets on rental volume and pricing;
• the Company’s reliance on third-party distribution channels and related prices, commission structures and transaction volumes;
• the Company’s ability to offer services for a favorable customer experience, and to retain and develop customer loyalty and market share;
• the Company’s ability to maintain its network of leases and vehicle rental concessions at airports and other key locations in the U.S. and internationally;
• the Company’s ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy;
• the Company’s ability to attract and retain effective frontline employees, senior management and other key employees;
• the Company’s ability to effectively manage its union relations and labor agreement negotiations;
• the Company’s ability to manage and respond to cybersecurity threats and cyber attacks on the Company’s information technology systems, or those of the Company’s third-party providers;
• the Company’s ability, and that of the Company’s key third-party partners, to prevent the misuse or theft of information the Company possesses, including as a result of cyber attacks and other security threats;
• the Company’s ability to maintain, upgrade and consolidate its information technology systems;
• the Company’s ability to comply with current and future laws and regulations in the U.S. and internationally regarding data protection, data security and privacy risks;
• risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anti-corruption or anti-bribery laws and the Company’s ability to repatriate cash from non-U.S. affiliates without adverse tax consequences;
• risks relating to tax laws, including those that affect the Company’s ability to recapture accelerated tax depreciation and expensing, as well as any adverse determinations or rulings by tax authorities;
• the Company’s ability to utilize its net operating loss carryforwards;
• the Company’s exposure to uninsured liabilities relating to personal injury, death and property damage, or otherwise, including material litigation;
• the potential for adverse changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, including those related to environmental matters, optional insurance products or policies, franchising and licensing matters, the ability to pass-through rental car related expenses, or taxes, among others, that affect the Company’s operations, the Company’s costs or applicable tax rates;
• the Company’s ability to recover its goodwill and indefinite-lived intangible assets when performing impairment analysis;
• the potential for changes in management’s best estimates and assessments;
• the Company’s ability to maintain an effective compliance program;
• the availability of earnings and funds from the Company’s subsidiaries;
• the Company’s ability to comply, and the cost and burden of complying, with environmental, social and governance, or ESG, regulations or expectations of stakeholders, and otherwise achieve the Company’s corporate responsibility goals;
• the availability of additional or continued sources of financing at acceptable rates for the Company’s revenue earning vehicles and to refinance the Company’s existing indebtedness, and the Company’s ability to comply with the covenants in the agreements governing its indebtedness;
• the extent to which the Company’s consolidated assets secure its outstanding indebtedness;
• volatility in the Company’s share price, the Company’s ownership structure and certain provisions of the Company’s charter documents, which could negatively affect the market price of the Company’s common stock;
• the Company’s ability to implement an effective business continuity plan to protect the business in exigent circumstances;
• the Company’s ability to effectively maintain effective internal control over financial reporting; and
• the Company’s ability to execute strategic transactions.

Additional information concerning these and other factors can be found in the Company’s filings with the SEC, including its Annual Reports on Form 10-K, 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 June 30,				Six Months Ended June 30,
(In millions, except per share data)	2024		2023		2024		2023
Revenues	$ 2,353		$ 2,437		$ 4,433		$ 4,484
Expenses:
Direct vehicle and operating	1,440		1,347		2,806		2,568
Depreciation of revenue earning vehicles and lease charges, net	1,035		329		2,004		710
Depreciation and amortization of non-vehicle assets	41		32		73		67
Selling, general and administrative	243		285		405		506
Interest expense, net:
Vehicle	149		132		290		243
Non-vehicle	88		56		163		107
Total interest expense, net	237		188		453		350
Other (income) expense, net	(5)		(2)		(3)		7
(Gain) on sale of non-vehicle capital assets	—		—		—		(162)
Change in fair value of Public Warrants	(165)		100		(251)		218
Total expenses	2,826		2,279		5,487		4,264
Income (loss) before income taxes	(473)		158		(1,054)		220
Income tax (provision) benefit	(392)		(19)		3		115
Net income (loss)	$ (865)		$ 139		$ (1,051)		$ 335
Weighted average number of shares outstanding:
Basic	306		314		306		318
Diluted	306		315		306		319
Earnings (loss) per share:
Basic	$ (2.82)		$ 0.44		$ (3.44)		$ 1.06
Diluted	$ (2.82)		$ 0.44		$ (3.44)		$ 1.05

UNAUDITED CONSOLIDATED BALANCE SHEETS
(In millions, except par value and share data)	June 30, 2024		December 31, 2023
ASSETS
Cash and cash equivalents	$ 568		$ 764
Restricted cash and cash equivalents:
Vehicle	137		152
Non-vehicle	289		290
Total restricted cash and cash equivalents	426		442
Total cash and cash equivalents and restricted cash and cash equivalents	994		1,206
Receivables:
Vehicle	164		211
Non-vehicle, net of allowance of $53 and $47, respectively	1,103		980
Total receivables, net	1,267		1,191
Prepaid expenses and other assets	754		726
Revenue earning vehicles:
Vehicles	18,122		16,806
Less: accumulated depreciation	(2,753)		(2,155)
Total revenue earning vehicles, net	15,369		14,651
Property and equipment, net	670		671
Operating lease right-of-use assets	2,229		2,253
Intangible assets, net	2,858		2,863
Goodwill	1,044		1,044
Total assets	$ 25,185		$ 24,605
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable:
Vehicle	$ 429		$ 191
Non-vehicle	566		510
Total accounts payable	995		701
Accrued liabilities	931		860
Accrued taxes, net	208		157
Debt:
Vehicle	12,774		12,242
Non-vehicle	4,595		3,449
Total debt	17,369		15,691
Public Warrants	203		453
Operating lease liabilities	2,108		2,142
Self-insured liabilities	501		471
Deferred income taxes, net	912		1,038
Total liabilities	23,227		21,513
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, no shares issued and outstanding	—		—
Common stock, $0.01 par value, 481,250,923 and 479,990,286 shares issued, respectively, and 306,438,879 and 305,178,242 shares outstanding, respectively	5		5
Treasury stock, at cost, 174,812,044 and 174,812,044 common shares, respectively	(3,430)		(3,430)
Additional paid-in capital	6,365		6,405
Retained earnings (Accumulated deficit)	(691)		360
Accumulated other comprehensive income (loss)	(291)		(248)
Total stockholders’ equity	1,958		3,092
Total liabilities and stockholders’ equity	$ 25,185		$ 24,605

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2024		2023		2024		2023
Cash flows from operating activities:
Net income (loss)	$ (865)		$ 139		$ (1,051)		$ 335
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and reserves for revenue earning vehicles, net	1,124		418		2,194		884
Depreciation and amortization, non-vehicle	41		32		73		67
Amortization of deferred financing costs and debt discount (premium)	15		15		33		29
Stock-based compensation charges	16		22		32		43
Stock-based compensation forfeitures	—		—		(68)		—
Provision for receivables allowance	32		20		63		40
Deferred income taxes, net	349		(28)		(65)		(163)
(Gain) loss on sale of non-vehicle capital assets	2		(3)		3		(165)
Change in fair value of Public Warrants	(165)		100		(251)		218
Changes in financial instruments	2		(2)		8		106
Other	6		5		(4)		5
Changes in assets and liabilities:
Non-vehicle receivables	(165)		(284)		(201)		(334)
Prepaid expenses and other assets	(3)		(50)		(59)		(98)
Operating lease right-of-use assets	90		87		190		165
Non-vehicle accounts payable	67		33		63		6
Accrued liabilities	40		39		71		68
Accrued taxes, net	31		55		52		56
Operating lease liabilities	(100)		(94)		(200)		(178)
Self-insured liabilities	29		(7)		33		(25)
Net cash provided by (used in) operating activities	546		497		916		1,059
Cash flows from investing activities:
Revenue earning vehicles expenditures	(3,723)		(3,719)		(5,627)		(6,543)
Proceeds from disposal of revenue earning vehicles	1,669		1,560		2,902		2,766
Non-vehicle capital asset expenditures	(26)		(78)		(59)		(123)
Proceeds from non-vehicle capital assets disposed of	4		1		7		176
Return of (investment in) equity investments	(1)		(1)		(3)		(1)
Net cash provided by (used in) investing activities	(2,077)		(2,237)		(2,780)		(3,725)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt	1,149		1,960		1,683		4,021
Repayments of vehicle debt	(229)		(682)		(1,121)		(1,872)
Proceeds from issuance of non-vehicle debt	1,950		825		2,885		1,250
Repayments of non-vehicle debt	(1,245)		(329)		(1,735)		(759)
Payment of financing costs	(42)		(9)		(42)		(17)
Share repurchases	—		(104)		—		(222)
Other	(1)		1		(3)		—
Net cash provided by (used in) financing activities	1,582		1,662		1,667		2,401
Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents	(2)		2		(15)		13
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents during the period	49		(76)		(212)		(252)
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period	945		1,242		1,206		1,418
Cash and cash equivalents and restricted cash and cash equivalents at end of period	$ 994		$ 1,166		$ 994		$ 1,166

Supplemental Schedule I
HERTZ GLOBAL HOLDINGS, INC. CONDENSED STATEMENT OF OPERATIONS BY SEGMENT Unaudited
	Three Months Ended June 30, 2024								Three Months Ended June 30, 2023
(In millions)	Americas RAC		International RAC		Corporate		Hertz Global		Americas RAC		International RAC		Corporate		Hertz Global
Revenues	$ 1,928		$ 425		$ —		$ 2,353		$ 2,015		$ 422		$ —		$ 2,437
Expenses:
Direct vehicle and operating	1,199		244		(3)		1,440		1,139		211		(3)		1,347
Depreciation of revenue earning vehicles and lease charges, net	905		130		—		1,035		272		57		—		329
Depreciation and amortization of non-vehicle assets	28		3		10		41		27		3		2		32
Selling, general and administrative	137		46		60		243		148		45		92		285
Interest expense, net:
Vehicle	123		26		—		149		113		19		—		132
Non-vehicle	—		(6)		94		88		(4)		(5)		65		56
Total interest expense, net	123		20		94		237		109		14		65		188
Other (income) expense, net	1		—		(6)		(5)		—		(4)		2		(2)
Change in fair value of Public Warrants	—		—		(165)		(165)		—		—		100		100
Total expenses	2,393		443		(10)		2,826		1,695		326		258		2,279
Income (loss) before income taxes	$ (465)		$ (18)		$ 10		(473)		$ 320		$ 96		$ (258)		158
Income tax (provision) benefit							(392)								(19)
Net income (loss)							$ (865)								$ 139

Supplemental Schedule I (continued)
HERTZ GLOBAL HOLDINGS, INC. CONDENSED STATEMENT OF OPERATIONS BY SEGMENT Unaudited
	Six Months Ended June 30, 2024								Six Months Ended June 30, 2023
(In millions)	Americas RAC		International RAC		Corporate		Hertz Global		Americas RAC		International RAC		Corporate		Hertz Global
Revenues	$ 3,667		$ 766		$ —		$ 4,433		$ 3,745		$ 739		$ —		$ 4,484
Expenses:
Direct vehicle and operating	2,351		460		(5)		2,806		2,178		393		(3)		2,568
Depreciation of revenue earning vehicles and lease charges, net	1,781		223		—		2,004		621		89		—		710
Depreciation and amortization of non-vehicle assets	53		7		13		73		55		5		7		67
Selling, general and administrative	261		103		41		405		253		82		171		506
Interest expense, net:
Vehicle	239		51		—		290		206		37		—		243
Non-vehicle	(2)		(10)		175		163		(22)		(7)		136		107
Total interest expense, net	237		41		175		453		184		30		136		350
Other (income) expense, net	—		1		(4)		(3)		(1)		2		6		7
(Gain) on sale of non-vehicle capital assets	—		—		—		—		(162)		—		—		(162)
Change in fair value of Public Warrants	—		—		(251)		(251)		—		—		218		218
Total expenses	4,683		835		(31)		5,487		3,128		601		535		4,264
Income (loss) before income taxes	$ (1,016)		$ (69)		$ 31		(1,054)		$ 617		$ 138		$ (535)		220
Income tax (provision) benefit							3								115
Net income (loss)							$ (1,051)								$ 335

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 June 30,				Six Months Ended June 30,
(In millions, except per share data)	2024		2023		2024		2023
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share:
Net income (loss)(a)	$ (865)		$ 139		$ (1,051)		$ 335
Adjustments:
Income tax provision (benefit)	392		19		(3)		(115)
Vehicle and non-vehicle debt-related charges(b)	16		15		34		29
Restructuring and restructuring related charges(c)	12		5		44		8
Acquisition accounting-related depreciation and amortization(d)	1		1		1		1
Unrealized (gains) losses on financial instruments(e)	2		(2)		8		106
(Gain) on sale of non-vehicle capital assets(f)	—		—		—		(162)
Change in fair value of Public Warrants	(165)		100		(251)		218
Other items(g)(k)	20		(10)		28		4
Adjusted pre-tax income (loss)(h)	(587)		267		(1,190)		424
Income tax (provision) benefit on adjusted pre-tax income (loss)(i)	147		(40)		298		(64)
Adjusted Net Income (Loss)	$ (440)		$ 227		$ (892)		$ 360
Weighted-average number of diluted shares outstanding	306		315		306		319
Adjusted Diluted Earnings (Loss) Per Share(j)	$ (1.44)		$ 0.72		$ (2.92)		$ 1.13
Adjusted Corporate EBITDA:
Net income (loss)	$ (865)		$ 139		$ (1,051)		$ 335
Adjustments:
Income tax provision (benefit)	392		19		(3)		(115)
Non-vehicle depreciation and amortization	41		32		73		67
Non-vehicle debt interest, net of interest income	88		56		163		107
Vehicle debt-related charges(b)	10		10		22		20
Restructuring and restructuring related charges(c)	12		5		44		8
Unrealized (gains) losses on financial instruments(e)	2		(2)		8		106
(Gain) on sale of non-vehicle capital assets(f)	—		—		—		(162)
Non-cash stock-based compensation forfeitures(l)	—		—		(64)		—
Change in fair value of Public Warrants	(165)		100		(251)		218
Other items(g)	25		(12)		32		—
Adjusted Corporate EBITDA(l)	$ (460)		$ 347		$ (1,027)		$ 584
Adjusted Corporate EBITDA margin	(20) %		14 %		(23) %		13 %

(a)	Net income (loss) margin for the three and six months ended June 30, 2024 was (37)% and (24)%, respectively. Net income (loss) margin for the three and six months ended June 30, 2023 was 6% and 7%, respectively.
(b)	Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.
(c)	Represents charges incurred under restructuring actions as defined in U.S. GAAP. Also includes restructuring related charges such as incremental costs incurred related to personnel reductions and closure of underperforming locations.
(d)	Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.
(e)	Represents unrealized gains (losses) on derivative financial instruments. In 2023, also includes the realization of $88 million of previously unrealized gains resulting from the unwind of certain interest rate caps in the first quarter of 2023.
(f)	Represents gain on the sale of certain non-vehicle capital assets sold in March 2023.
(g)	Represents miscellaneous items. For the three and six months ended June 30, 2024, primarily includes certain IT-related charges and certain storm-related damages, partially offset by certain litigation settlements. For the three and six months ended June 30, 2023, primarily includes a loss recovery settlement, partially offset by certain IT-related charges.
(h)	The table below reconciles expenses as reported in the condensed consolidated unaudited statement of operations to adjusted expenses utilized in calculating Adjusted Pretax Income (Loss) and Adjusted Net Income (Loss), all of which are deemed non-GAAP measures:

(in millions)	Three Months Ended June 30, 2024						Three Months Ended June 30, 2023
Expenses:	As Reported		Adjustment		As Adjusted		As Reported		Adjustment		As Adjusted
Direct vehicle and operating	1,440		$ (10)		$ 1,430		1,347		$ 17		$ 1,364
Depreciation of revenue earning vehicles and lease charges, net	1,035		—		1,035		329		—		329
Depreciation and amortization of non-vehicle assets	41		—		41		32		—		32
Selling, general and administrative	243		(16)		227		285		(13)		272
Interest expense, net:
Vehicle	149		(13)		136		132		(3)		129
Non-vehicle	88		(10)		78		56		(9)		47
Total interest expense, net	237		(23)		214		188		(12)		176
Other income (expense), net	(5)		(2)		(7)		(2)		(1)		(3)
Change in fair value of Public Warrants	(165)		165		—		100		(100)		—
Total	$ 2,826		$ 114		$ 2,940		$ 2,279		$ (109)		$ 2,170

(in millions)	Six Months Ended June 30, 2024						Six Months Ended June 30, 2023
Expenses:	As Reported		Adjustment		As Adjusted		As Reported		Adjustment		As Adjusted
Direct vehicle and operating	2,806		$ (16)		$ 2,790		2,568		$ 17		$ 2,585
Depreciation of revenue earning vehicles and lease charges, net	2,004		5		2,009		710		2		712
Depreciation and amortization of non-vehicle assets	73		—		73		67		—		67
Selling, general and administrative	405		(55)		350		506		(27)		479
Interest expense, net:
Vehicle	290		(26)		264		243		(122)		121
Non-vehicle	163		(20)		143		107		(17)		90
Total interest expense, net	453		(46)		407		350		(139)		211
Other income (expense), net	(3)		(3)		(6)		7		(1)		6
Gain on sale non-vehicle capital assets	—		—		—		(162)		162		—
Change in fair value of Public Warrants	(251)		251		—		218		(218)		—
Total	$ 5,487		$ 136		$ 5,623		$ 4,264		$ (204)		$ 4,060

(i)	Derived utilizing a combined statutory rate of 25% and 15% for the three and six months ended June 30, 2024 and 2023, respectively, applied to the respective Adjusted Pre-tax Income (Loss). The increase in rate is primarily resulting from reduced EV-related tax credits anticipated to be used to decrease the Company’s U.S. federal tax provision throughout 2024 based on the Company’s expected purchases of electric vehicles.
(j)	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.
(k)	Also includes letter of credit fees.
(l)	Represents former CEO awards forfeited in March 2024.
(m)	The table below reconciles expenses as reported in the condensed consolidated unaudited statement of operations to adjusted expenses utilized in calculating Adjusted Corporate EBITDA, both of which are deemed non-GAAP measures:

(in millions)	Three Months Ended June 30, 2024						Three Months Ended June 30, 2023
Expenses:	As Reported		Adjustment		As Adjusted		As Reported		Adjustment		As Adjusted
Direct vehicle and operating	1,440		$ (10)		$ 1,430		1,347		$ 17		$ 1,364
Depreciation of revenue earning vehicles and lease charges, net	1,035		—		1,035		329		—		329
Depreciation and amortization of non-vehicle assets	41		(41)		—		32		(32)		—
Selling, general and administrative	243		(17)		226		285		(13)		272
Interest expense, net:
Vehicle	149		(13)		136		132		(3)		129
Non-vehicle	88		(88)		—		56		(56)		—
Total interest expense, net	237		(101)		136		188		(59)		129
Other income (expense), net	(5)		(9)		(14)		(2)		(2)		(4)
Change in fair value of Public Warrants	(165)		165		—		100		(100)		—
Total	$ 2,826		$ (13)		$ 2,813		$ 2,279		$ (189)		$ 2,090

(in millions)	Six Months Ended June 30, 2024						Six Months Ended June 30, 2023
Expenses:	As Reported		Adjustment		As Adjusted		As Reported		Adjustment		As Adjusted
Direct vehicle and operating	2,806		$ (16)		$ 2,790		2,568		$ 17		$ 2,585
Depreciation of revenue earning vehicles and lease charges, net	2,004		5		2,009		710		2		712
Depreciation and amortization of non-vehicle assets	73		(73)		—		67		(67)		—
Selling, general and administrative	405		8		413		506		(27)		479
Interest expense, net:
Vehicle	290		(26)		264		243		(122)		121
Non-vehicle	163		(163)		—		107		(107)		—
Total interest expense, net	453		(189)		264		350		(229)		121
Other income (expense), net	(3)		(13)		(16)		7		(4)		3
Gain on sale non-vehicle capital assets	—		—		—		(162)		162		—
Change in fair value of Public Warrants	(251)		251		—		218		(218)		—
Total	$ 5,487		$ (27)		$ 5,460		$ 4,264		$ (364)		$ 3,900

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 June 30,				Six Months Ended June 30,
(In millions)	2024		2023		2024		2023
ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW:
Net cash provided by (used in) operating activities	$ 546		$ 497		$ 916		$ 1,059
Depreciation and reserves for revenue earning vehicles, net	(1,124)		(418)		(2,194)		(884)
Bankruptcy related payments (post emergence) and other payments	2		12		5		20
Adjusted operating cash flow	(576)		91		(1,273)		195
Non-vehicle capital asset proceeds (expenditures), net	(22)		(77)		(52)		53
Adjusted operating cash flow before vehicle investment	(598)		14		(1,325)		248
Net fleet growth after financing	45		(437)		43		(754)
Adjusted free cash flow	$ (553)		$ (423)		$ (1,282)		$ (506)
CALCULATION OF NET FLEET GROWTH AFTER FINANCING:
Revenue earning vehicles expenditures	$ (3,723)		$ (3,719)		$ (5,627)		$ (6,543)
Proceeds from disposal of revenue earning vehicles	1,669		1,560		2,902		2,766
Revenue earning vehicles capital expenditures, net	(2,054)		(2,159)		(2,725)		(3,777)
Depreciation and reserves for revenue earning vehicles, net	1,124		418		2,194		884
Financing activity related to vehicles:
Borrowings	1,149		1,960		1,683		4,021
Payments	(229)		(682)		(1,121)		(1,872)
Restricted cash changes, vehicle	55		26		12		(10)
Net financing activity related to vehicles	975		1,304		574		2,139
Net fleet growth after financing	$ 45		$ (437)		$ 43		$ (754)

Supplemental Schedule IV
HERTZ GLOBAL HOLDINGS, INC. NET DEBT CALCULATION Unaudited
	As of June 30, 2024						As of December 31, 2023
(In millions)	Vehicle		Non-Vehicle		Total		Vehicle		Non-Vehicle		Total
First Lien RCF	$ —		$ 160		$ 160		$ —		$ —		$ —
Term loans	—		2,004		2,004		—		2,013		2,013
First lien senior notes	—		750		750		—		—		—
Exchangeable notes	—		250		250		—		—		—
Senior unsecured notes	—		1,500		1,500		—		1,500		1,500
U.S. vehicle financing (HVF III)	10,471		—		10,471		10,203		—		10,203
International vehicle financing (Various)	2,216		—		2,216		2,001		—		2,001
Other debt	144		21		165		110		2		112
Debt issue costs, discounts and premiums	(57)		(90)		(147)		(72)		(66)		(138)
Debt as reported in the balance sheet	12,774		4,595		17,369		12,242		3,449		15,691
Add:
Debt issue costs, discounts and premiums	57		90		147		72		66		138
Less:
Cash and cash equivalents	—		568		568		—		764		764
Restricted cash	137		—		137		152		—		152
Restricted cash and restricted cash equivalents associated with Term C Loan	—		245		245		—		245		245
Net Debt	$ 12,694		$ 3,872		$ 16,566		$ 12,162		$ 2,506		$ 14,668
LTM Adjusted Corporate EBITDA(a)			(1,050)						561
Net Corporate Leverage			NM						4.5x

NM – Not meaningful
(a)	Reconciliation of LTM Adjusted Corporate EBITDA for the six months ended June 30, 2024 and twelve months ended December 31, 2023 are as follows:

(in millions)	Six Months Ended June 30, 2024		Twelve Months Ended December 31, 2023
Net income (loss) three months ended:
September 30, 2023	$ 629		n/a
December 31, 2023	(348)		n/a
March 31, 2024	(186)		n/a
June 30, 2024	(865)		n/a
LTM net income (loss)	(770)		$ 616
Adjustments:
Income tax provision (benefit)	(218)		(330)
Non-vehicle depreciation and amortization	155		149
Non-vehicle debt interest, net of interest income	294		238
Vehicle debt-related charges	44		42
Restructuring and restructuring related charge	59		17
Unrealized (gains) losses on financial instruments	19		117
(Gain) on sale of non-vehicle capital assets	—		(162)
Non-cash stock-based compensation forfeitures	(64)		—
Change in fair value of Public Warrants	(632)		(163)
Other items	69		37
LTM Adjusted Corporate EBITDA	$ (1,044)		$ 561

Supplemental Schedule V
HERTZ GLOBAL HOLDINGS, INC. KEY METRICS CALCULATIONS REVENUE, UTILIZATION AND DEPRECIATION Unaudited
Global RAC
	Three Months Ended June 30,				Percent Inc/(Dec)		Six Months Ended June 30,				Percent Inc/(Dec)
($ in millions, except where noted)	2024		2023				2024		2023
Total RPD
Revenues	$ 2,353		$ 2,437				$ 4,433		$ 4,484
Foreign currency adjustment(a)	16		9				25		18
Total Revenues – adjusted for foreign currency	$ 2,369		$ 2,446				$ 4,458		$ 4,502
Transaction Days (in thousands)	39,721		39,705				76,575		73,493
Total RPD (in dollars)	$ 59.65		$ 61.62		(3) %		$ 58.22		$ 61.27		(5) %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency	$ 2,369		$ 2,446				$ 4,458		$ 4,502
Average Rentable Vehicles (in whole units)	546,187		533,813				537,710		508,550
Total revenue per unit (in whole dollars)	$ 4,338		$ 4,582				$ 8,291		$ 8,853
Number of months in period (in whole units)	3		3				6		6
Total RPU Per Month (in whole dollars)	$ 1,446		$ 1,527		(5) %		$ 1,382		$ 1,476		(6) %
Vehicle Utilization
Transaction Days (in thousands)	39,721		39,705				76,575		73,493
Average Rentable Vehicles (in whole units)	546,187		533,813				537,710		508,550
Number of days in period (in whole units)	91		91				182		181
Available Car Days (in thousands)	49,701		48,576				97,882		92,079
Vehicle Utilization(b)	80 %		82 %				78 %		80 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net	$ 1,035		$ 329				$ 2,004		$ 710
Foreign currency adjustment(a)	5		2				8		4
Adjusted depreciation of revenue earning vehicles and lease charges	$ 1,040		$ 331				$ 2,012		$ 714
Average Vehicles (in whole units)	577,224		561,277				562,358		532,903
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$ 1,801		$ 590				$ 3,577		$ 1,339
Number of months in period (in whole units)	3		3				6		6
Depreciation Per Unit Per Month (in whole dollars)	$ 600		$ 197		NM		$ 596		$ 223		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, 2023 foreign exchange rates.
(b)	Calculated as Transaction Days divided by Available Car Days.

Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC. KEY METRICS CALCULATIONS REVENUE, UTILIZATION AND DEPRECIATION Unaudited
Americas RAC
	Three Months Ended June 30,				Percent Inc/(Dec)		Six Months Ended June 30,				Percent Inc/(Dec)
($ in millions, except where noted)	2024		2023				2024		2023
Total RPD
Revenues	$ 1,928		$ 2,015				$ 3,667		$ 3,745
Foreign currency adjustment(a)	3		1				4		2
Total Revenues – adjusted for foreign currency	$ 1,931		$ 2,016				$ 3,671		$ 3,747
Transaction Days (in thousands)	32,216		32,469				62,776		60,348
Total RPD (in dollars)	$ 59.94		$ 62.11		(3) %		$ 58.47		$ 62.10		(6) %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency	$ 1,931		$ 2,016				$ 3,671		$ 3,747
Average Rentable Vehicles (in whole units)	439,284		431,921				436,553		412,717
Total revenue per unit (in whole dollars)	$ 4,396		$ 4,668				$ 8,408		$ 9,079
Number of months in period (in whole units)	3		3				6		6
Total RPU Per Month (in whole dollars)	$ 1,465		$ 1,556		(6) %		$ 1,401		$ 1,513		(7) %
Vehicle Utilization
Transaction Days (in thousands)	32,216		32,469				62,776		60,348
Average Rentable Vehicles (in whole units)	439,284		431,921				436,553		412,717
Number of days in period (in whole units)	91		91				182		181
Available Car Days (in thousands)	39,974		39,304				79,470		74,725
Vehicle Utilization(b)	81 %		83 %				79 %		81 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net	$ 905		$ 272				$ 1,781		$ 621
Foreign currency adjustment(a)	1		—				2		1
Adjusted depreciation of revenue earning vehicles and lease charges	$ 906		$ 272				$ 1,783		$ 622
Average Vehicles (in whole units)	467,863		457,405				459,224		435,194
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$ 1,936		$ 595				$ 3,882		$ 1,430
Number of months in period (in whole units)	3		3				6		6
Depreciation Per Unit Per Month (in whole dollars)	$ 645		$ 198		NM		$ 647		$ 238		NM

NM – Not meaningful
(a)	Based on December 31, 2023 foreign exchange rates.
(b)	Calculated as Transaction Days divided by Available Car Days.

Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC. KEY METRICS CALCULATIONS REVENUE, UTILIZATION AND DEPRECIATION Unaudited
International RAC
	Three Months Ended June 30,				Percent Inc/(Dec)		Six Months Ended June 30,				Percent Inc/(Dec)
($ in millions, except where noted)	2024		2023				2024		2023
Total RPD
Revenues	$ 425		$ 422				$ 766		$ 739
Foreign currency adjustment(a)	13		8				22		16
Total Revenues – adjusted for foreign currency	$ 438		$ 430				$ 788		$ 755
Transaction Days (in thousands)	7,505		7,237				13,799		13,145
Total RPD (in dollars)	$ 58.38		$ 59.41		(2) %		$ 57.07		$ 57.45		(1) %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency	$ 438		$ 430				$ 788		$ 755
Average Rentable Vehicles (in whole units)	106,903		101,892				101,156		95,834
Total revenue per unit (in whole dollars)	$ 4,098		$ 4,219				$ 7,785		$ 7,880
Number of months in period (in whole units)	3		3				6		6
Total RPU Per Month (in whole dollars)	$ 1,366		$ 1,406		(3) %		$ 1,298		$ 1,313		(1) %
Vehicle Utilization
Transaction Days (in thousands)	7,505		7,237				13,799		13,145
Average Rentable Vehicles (in whole units)	106,903		101,892				101,156		95,834
Number of days in period (in whole units)	91		91				182		181
Available Car Days (in thousands)	9,727		9,271				18,413		17,354
Vehicle Utilization (b)	77 %		78 %				75 %		76 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net	$ 130		$ 57				$ 223		$ 89
Foreign currency adjustment(a)	4		2				6		3
Adjusted depreciation of revenue earning vehicles and lease charges	$ 134		$ 59				$ 229		$ 92
Average Vehicles (in whole units)	109,361		103,872				103,134		97,709
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$ 1,226		$ 564				$ 2,220		$ 937
Number of months in period (in whole units)	3		3				6		6
Depreciation Per Unit Per Month (in whole dollars)	$ 409		$ 188		NM		$ 370		$ 156		NM

NM – Not meaningful
(a)	Based on December 31, 2023 foreign exchange rates.
(b)	Calculated as Transaction Days divided by Available Car Days.

NON-GAAP MEASURES AND KEY METRICS

The term "GAAP" refers to accounting principles generally accepted in the United States. Adjusted EBITDA is the Company’s segment measure of profitability and complies with GAAP when used in that context.

NON-GAAP MEASURES

Non-GAAP measures are not recognized measurements under GAAP. When evaluating the Company’s operating performance or liquidity, investors should not consider non-GAAP measures in isolation of, superior to, or as a substitute for measures of the Company’s financial performance as determined in accordance with GAAP.

Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share ("Adjusted EPS")

Adjusted Net Income (Loss) represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; vehicle and non-vehicle debt-related charges; restructuring and restructuring related charges; acquisition accounting-related depreciation and amortization; unrealized (gains) losses on financial instruments, gain on sale of non-vehicle capital assets; change in fair value of Public Warrants 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; unrealized (gains) losses on financial instruments; gain on sale of non-vehicle capital assets; former CEO stock-based compensation award forfeitures; change in fair value of Public Warrants 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 an important performance measure to management and investors as it provides useful information about the amount of cash generated from operations when fully burdened by fleet costs.

Adjusted free cash flow represents adjusted operating cash flow plus the impact of net non-vehicle capital expenditures and net fleet growth after financing. Adjusted free cash flow is an important performance measure to management and investors as it provides useful information about the amount of cash available for, but not limited to, the reduction of non-vehicle debt, share repurchase and acquisition.

The most comparable GAAP measure for adjusted operating cash flow and adjusted free cash flow is net cash provided by (used in) operating activities.

Net Fleet Growth After Financing

U.S. and International Rental Car segments Fleet Growth is defined as revenue earning vehicles expenditures, net of proceeds from disposals, plus vehicle depreciation and net vehicle financing, which includes borrowings, repayments and the change in restricted cash associated with vehicles. Fleet Growth is important as it allows the Company to assess the cash flow required to support its investment in revenue earning vehicles.

Net Non-vehicle Debt

Net Non-vehicle Debt is calculated as non-vehicle debt as reported on the Company’s balance sheet, excluding the impact of unamortized debt issuance costs associated with non-vehicle debt, less cash and cash equivalents. Non-vehicle debt consists of the Company’s Senior Term Loan, Senior RCF, First Lien Senior Notes, Second Lien Exchangeable Notes, Senior Second Priority Secured Notes, Senior Unsecured Notes, Promissory Notes and certain other non-vehicle indebtedness of its domestic and foreign subsidiaries. Net Non-vehicle Debt is important to management and investors as it helps measure the Company’s corporate leverage. Net Non-vehicle Debt also assists in the evaluation of the Company’s ability to service its non-vehicle debt without reference to the expense associated with the vehicle debt, which is collateralized by assets not available to lenders under the non-vehicle debt facilities.

Net Vehicle Debt

Net Vehicle Debt is calculated as vehicle debt as reported on the Company’s balance sheet, excluding the impact of unamortized debt issue costs associated with vehicle debt, less restricted cash associated with vehicles. Restricted cash associated with vehicle debt is restricted for the purchase of revenue earning vehicles and other specified uses under the Company’s vehicle debt facilities. Net Vehicle Debt is important to management, investors and ratings agencies as it helps measure the Company’s leverage with respect to its vehicle assets.

Total Net Debt

Total Net Debt is calculated as total debt, excluding the impact of unamortized debt issuance costs, less total cash and cash equivalents and restricted cash associated with vehicle debt. Unamortized debt issuance costs are required to be reported as a deduction from the carrying amount of the related debt obligation under GAAP. Management believes that eliminating the effects that these costs have on debt will more accurately reflect the Company’s net debt position. Total Net Debt is important to management, investors and ratings agencies as it helps measure the Company’s gross leverage.

Net Corporate Leverage

Net Corporate Leverage is calculated as non-vehicle net debt divided by Adjusted Corporate EBITDA for the last twelve months. Net Corporate Leverage is important to management and investors as it measures the Company’s corporate leverage net of unrestricted cash. Net Corporate Leverage also assists in the evaluation of the Company’s ability to service its non-vehicle debt with reference to the generation of Adjusted Corporate EBITDA.

KEY METRICS

Available Rental Car Days

Available Rental Car Days represents Average Rentable Vehicles multiplied by the number of days in a given period.

Average Vehicles ("Fleet Capacity" or "Capacity")

Average Vehicles is determined using a simple average of the number of vehicles in the fleet whether owned or leased by the Company at the beginning and end of a given period.

Average Rentable Vehicles

Average Rentable Vehicles reflects Average Vehicles excluding vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.

Depreciation Per Unit Per Month ("Depreciation Per Unit" or "DPU")

Depreciation Per Unit Per Month represents the amount of average depreciation expense and lease charges per vehicle per month, exclusive of the impacts of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it reflects how effectively the Company is managing the costs of its vehicles and facilitates comparisons with other participants in the vehicle rental industry.

Total Revenue Per Transaction Day ("Total RPD"or "RPD"; also referred to as "pricing")

Total RPD represents revenue generated per transaction day, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it represents a measure of changes in the underlying pricing in the vehicle rental business and encompasses the elements in vehicle rental pricing that management has the ability to control.

Total Revenue Per Unit Per Month ("Total RPU", "RPU" or "Total RPU Per Month")

Total RPU Per Month represents the amount of revenue generated per vehicle in the rental fleet each month, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it provides a measure of revenue productivity relative to the number of vehicles in our rental fleet whether owned or leased, or asset efficiency.

Transaction Days ("Days"; also referred to as "volume")

Transaction Days represents the total number of 24-hour periods, with any partial period counted as one Transaction Day, that vehicles were on rent (the period between when a rental contract is opened and closed) in a given period. Thus, it is possible for a vehicle to attain more than one Transaction Day in a 24-hour period. This metric is important to management and investors as it represents the number of revenue-generating days.

Vehicle Utilization ("Utilization")

Vehicle Utilization represents the ratio of Transaction Days to Available Rental Car Days. This metric is important to management and investors as it is the measurement of the proportion of vehicles that are being used to generate revenues relative to rentable fleet capacity.

SOURCE Hertz Global Holdings, Inc.

ESTERO, Fla., July 8, 2024 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz" or the "Company"), a leading global rental car company, today announced key appointments that will strengthen its leadership team and sharpen the Company’s focus on driving enhanced profitability through operational excellence, superior customer service, strategic fleet management, cost control, and premium revenue.

Sandeep Dube will join Hertz as Executive Vice President, Chief Commercial Officer on July 22, 2024, and Katherine Lee Martin, who currently serves as Hertz’s Interim General Counsel, will be appointed to Executive Vice President, General Counsel, and Corporate Secretary, effective immediately.

In addition, the following leaders are joining Hertz this month: Henry Kuykendall as Executive Vice President, North America Operations; Greg May as Executive Vice President, Fleet Management; and Mike Moore as Executive Vice President, Technical Operations. Each executive will report to Hertz Chief Executive Officer Gil West.

"The leaders announced today, along with our new CFO Scott Haralson, add capacity and capabilities that complement our existing leadership team’s deep institutional knowledge of the rental car industry," said Hertz Chief Executive Officer Gil West. "With this best-in-class leadership team, we are now set to execute our strategy to deliver sustainable growth and create value by excelling at the basics – elevating our operational performance across every facet of our business with continued process improvement, technological and product innovation, and mobilizing our best and most valued asset – our 27,000 employees globally – to deliver an unmatched customer experience."

West added, "Our enhanced executive team, and the added resilience and flexibility afforded by the capital we recently raised, enable us to pursue our fleet rotation plan on an accelerated timeline, deliver our cost and revenue improvement initiatives, and allow Hertz to reach its full potential. We are at an exciting inflection point in our path to generate greater value for our customers, employees, and shareholders."

Sandeep Dube, Executive Vice President, Chief Commercial Officer, will lead global commercial strategy and revenue generation for Hertz through an integrated customer-centric approach, overseeing revenue management and pricing, corporate sales and strategic partnerships, customer experience, product development, loyalty programs, marketing, and franchise. Dube has over 25 years of experience leading transformational growth for businesses. He most recently served as Chief Operating Officer at Intuit Mailchimp. Before that, he was Chief Commercial Officer at Activision Blizzard, and he held senior leadership roles at Delta Air Lines, including Senior Vice President, Revenue Management, leading revenue, product strategy, and commercial delivery, Senior Vice President, Digital, Loyalty, Lounges, and Consumer Insights, and Chief Executive Officer of Delta Vacations.

Katherine Lee Martin, Executive Vice President, General Counsel, and Corporate Secretary, will continue to oversee Hertz’s global legal affairs, government affairs, as well as sustainability and social impact teams. Martin has served as the Company’s Interim General Counsel and Assistant Corporate Secretary since April 2024, after joining Hertz in May 2023 as Vice President, Chief Counsel. Prior to joining Hertz, she held senior leadership positions at X Corp. and Twitter, where she oversaw the company’s global portfolio of highly complex litigation, regulatory, and competition matters. Before joining Twitter, Martin spent more than a decade as an Assistant U.S. Attorney at the U.S. Department of Justice.

Henry Kuykendall, Executive Vice President, North America Operations, will oversee airport and off-airport car rental operations across North America. Kuykendall previously spent 33 years at Delta Air Lines, where he held several key leadership roles focused on operations, customer service and sales, and the development of best-in-class processes. He most recently served as Senior Vice President, Airport Operations, East, overseeing all airport operations at Boston Logan International Airport, Detroit Metropolitan Airport, LaGuardia Airport, and John F. Kennedy International Airport. In that role, Kuykendall also oversaw Delta’s operations at 41 stations in the East and at 137 smaller airport locations across the U.S., which comprised over 20,000 employees and contractors.

Greg May, Executive Vice President, Fleet Management, will lead all aspects of Hertz’s fleet management, including fleet procurement and strategy, analytics, and vehicle remarketing. May has over 35 years of experience managing commercial aviation fleets and supply chains and has held leadership positions at Delta Air Lines, Northwest Airlines, and United Airlines, among other companies. He also founded aircraft leasing company Q Aviation and launched Valkyrie BTO Aviation, a commercial aircraft investment company for Blackstone where he most recently served as President and Chief Executive Officer.

Mike Moore, Executive Vice President, Technical Operations, will lead all aspects of Hertz’s fleet maintenance. Due to his over 25 years of experience managing fleet operations and maintenance, Moore has expertise in overseeing operations and delivering process improvements that reduce costs and drive enhanced financial performance. He has held leadership positions at Delta Air Lines, where he spent a decade in operations-focused roles of increasing responsibility, and at Northwest Airlines, among others. He most recently served as Executive Vice President, Spaceline Technical Operations at Virgin Galactic.

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.

SOURCE Hertz Global Holdings, Inc.

ESTERO, Fla., July 1, 2024 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) (the "Company") announced today that it plans to report its second quarter 2024 financial results at 8:00 a.m. ET on Thursday, August 1, 2024, followed by an earnings call at 9:00 a.m. ET.

A live webcast of the call will be available on the Investor Relations page of the Company’s website at https://ir.hertz.com. To access the call by phone, please register through this link: Hertz Q2 2024 earnings teleco registration, and you will be provided with dial-in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A web replay will remain available on the website for one year.

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 operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales.

SOURCE Hertz Global Holdings, Inc.

Comprised of $750 Million of First Lien Senior Secured Notes and $250 Million of Exchangeable Senior Second-Lien Secured PIK Notes Issued by The Hertz Corporation

ESTERO, Fla., June 21, 2024 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz" or the "Company"), a leading global rental car company, today announced that its wholly-owned indirect subsidiary, The Hertz Corporation ("Hertz Corp."), has entered into agreements to sell $750 million (representing an upsize from the previously announced $500 million) aggregate principal amount of 12.625% First Lien Senior Secured Notes due 2029 (the "First Lien Notes") and $250 million aggregate principal amount of 8.000% Exchangeable Senior Second-Lien Secured PIK Notes due 2029 (the "Exchangeable Notes" and, together with the First Lien Notes, the "Notes"), in private offerings exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The offerings are each expected to close on or about June 28, 2024, subject to customary closing conditions.

Hertz Corp. intends to use the net proceeds of the offerings to pay down a portion of its $2.0 billion committed revolving credit facility, improving liquidity. The revolving credit facility will remain available following the paydown, and total commitments under the revolving credit facility will be unchanged as a result of the offerings. The completion of the offering of the First Lien Notes and the completion of the offering of the Exchangeable Notes are not contingent on each other.

The First Lien Notes will be issued at par and will bear interest at a rate of 12.625% per annum payable semi-annually in cash in arrears on January 15 and July 15 of each year, beginning on January 15, 2025, and will mature on July 15, 2029.

The Exchangeable Notes will bear PIK interest at a rate of 8.000% per year payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2025. The Exchangeable Notes will mature on July 15, 2029, unless repurchased, redeemed or exchanged in accordance with their terms prior to maturity.

The exchange rate will initially be 150.9388 shares of Common Stock per $1,000 capitalized principal amount of Exchangeable Notes (equivalent to an initial exchange price of approximately $6.6252 per share of Common Stock). The initial exchange price of the Exchangeable Notes represents a premium of approximately 89% to the $3.51 closing price of the Common Stock on the Nasdaq Global Select Market on June 20, 2024. Prior to April 15, 2029, the Exchangeable Notes will be exchangeable only upon satisfaction of certain conditions and during certain periods, and thereafter, the Exchangeable Notes will be exchangeable at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The Exchangeable Notes will be exchangeable on the terms set forth in the indenture into cash, shares of common stock of the Company ("Common Stock"), or a combination thereof, at Hertz Corp.’s election.

Holders of the Exchangeable Notes will have the right to require Hertz Corp. to repurchase all or a portion of their Exchangeable Notes at 100% of their initial principal amount of the Exchangeable Notes to be repurchased plus PIK interest on such Exchangeable Notes for each interest payment date occurring on or prior to the repurchase date plus accrued and unpaid PIK interest to, but excluding, the date of such repurchase, upon the occurrence of certain corporate events constituting a "fundamental change" as defined in the indenture governing the Exchangeable Notes. Hertz Corp. may not redeem the Exchangeable Notes prior to July 20, 2027. On or after July 20, 2027 and on or prior to the 31st scheduled trading day immediately preceding the maturity date, if the last reported sale price per share of Common Stock has been at least 250% of the exchange price for the Exchangeable Notes for certain specified periods, Hertz Corp. may redeem all (but not part) of the Exchangeable Notes at a cash redemption price equal to the initial principal amount of the Exchangeable Notes to be redeemed plus PIK interest on such Exchangeable Notes for each interest payment date occurring on or prior to the redemption date plus accrued and unpaid PIK interest on such Exchangeable Notes to, but not including, the redemption date.

The Notes are expected to be guaranteed by the Company, Rental Car Intermediate Holdings, LLC, Hertz Corp.’s direct parent company, and each of Hertz Corp.’s existing domestic subsidiaries and future restricted subsidiaries that guarantees indebtedness under Hertz Corp.’s first lien credit facilities or certain other indebtedness for borrowed money. The First Lien Notes and the related guarantees (other than the guarantee by the Company) are expected to be secured (subject to certain exceptions and permitted liens) on a first-lien basis by the same assets (other than certain excluded property) that secure indebtedness under Hertz Corp.’s first lien credit facilities (the "Collateral") and are therefore expected to be effectively pari passu with indebtedness under Hertz Corp.’s first lien credit facilities. The Exchangeable Notes and the related guarantees (other than the guarantee by the Company) are expected to be secured (subject to certain exceptions and permitted liens) on a second-lien basis by the Collateral and are therefore expected to be effectively junior to the First Lien Notes and indebtedness under Hertz Corp.’s first lien credit facilities.

The Notes and the guarantees of the Notes were offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and, except for the Exchangeable Notes and the related guarantees, to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The Notes, the guarantees of the Notes and any shares of Common Stock issuable upon exchange of the Exchangeable Notes have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and the securities laws of any other jurisdiction.

This press release is not an offer to sell or purchase, or a solicitation of an offer to sell or purchase, the Notes, the guarantees of the Notes or the shares of Common Stock issuable upon exchange of the Exchangeable Notes and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any person to whom such an offer, solicitation or sale would be unlawful.

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.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" within the meaning of the federal securities laws. Words such as "expect," "will" and "intend" and similar expressions identify forward-looking statements, which include but are not limited to statements related to our positioning, strategy, vision, forward looking investments, conditions in the travel industry, our financial and operational condition, our sources of liquidity, the offerings, the anticipated completion and timing of the offerings and Hertz Corp.’s expected use of proceeds from the offerings. 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 risks and uncertainties related to completion of the offerings on the anticipated terms or at all, market conditions (including market interest rates) and the satisfaction of customary closing conditions related to the offerings, unanticipated uses of capital and those in our risk factors that we identify in the offering memorandums for these offerings and our most recent annual report on Form 10-K for the year ended December 31, 2023, as filed with the U.S. Securities and Exchange Commission on February 12, 2024, and any updates thereto in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K. We caution you not to place undue reliance on our forward-looking statements, which speak only as of their date, and we undertake no obligation to update this information.

SOURCE Hertz Global Holdings, Inc.

Comprised of $500 Million of First Lien Senior Secured Notes and $250 Million of Exchangeable Senior Second-Lien Secured PIK Notes Issued by The Hertz Corporation

ESTERO, Fla., June 20, 2024 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz" or the "Company"), a leading global rental car company, today announced that its wholly-owned indirect subsidiary, The Hertz Corporation ("Hertz Corp."), intends to offer, subject to market and other conditions, $500 million in aggregate principal amount of First Lien Senior Secured Notes due 2029 (the "First Lien Notes") and $250 million in aggregate principal amount of Exchangeable Senior Second-Lien Secured PIK Notes due 2029 (the "Exchangeable Notes" and, together with the First Lien Notes, the "Notes"), in private offerings exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act").

Concurrently with the offerings of the Notes, investors affiliated with CK Amarillo LP have committed to Hertz Corp. and an investor has provided a firm commitment to an initial purchaser to purchase up to $250 million aggregate principal amount of Exchangeable Notes. In addition, Hertz Corp. has received a backstop commitment to purchase up to $500 million aggregate principal amount of First Lien Notes.

Hertz Corp. intends to use the net proceeds of the offerings to pay down a portion of its $2.0 billion committed revolving credit facility, improving liquidity. The completion of the offering of the First Lien Notes and the completion of the offering of the Exchangeable Notes are not contingent on each other.

The Exchangeable Notes will bear PIK interest payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2024. Hertz Corp. expects that the initial exchange price for the Exchangeable Notes will be at a 100% premium to the volume-weighted average price of the common stock of the Company ("Common Stock") on the date of pricing of the Exchangeable Notes, but in no event greater than $7.00 or less than $6.00 per share of Common Stock. The interest rate and certain other terms of the Exchangeable Notes will be determined by negotiations between Hertz Corp. and the initial purchasers. The Exchangeable Notes will mature on June 15, 2029, unless repurchased, redeemed or exchanged in accordance with their terms prior to maturity. Prior to March 15, 2029, the Exchangeable Notes will be exchangeable only upon satisfaction of certain conditions and during certain periods, and thereafter, the Exchangeable Notes will be exchangeable at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The Exchangeable Notes will be exchangeable on the terms set forth in the indenture into cash, shares of Common Stock, or a combination thereof, at Hertz Corp.’s election.

Holders of the Exchangeable Notes will have the right to require Hertz Corp. to repurchase all or a portion of their Exchangeable Notes at 100% of their initial principal amount of the Exchangeable Notes to be repurchased plus PIK interest on such Exchangeable Notes for each interest payment date occurring on or prior to the repurchase date plus accrued and unpaid PIK interest to, but excluding, the date of such repurchase, upon the occurrence of certain corporate events constituting a "fundamental change" as defined in the indenture governing the Exchangeable Notes. Hertz Corp. may not redeem the Exchangeable Notes prior to June 21, 2027. On or after June 21, 2027 and on or prior to the 31st scheduled trading day immediately preceding the maturity date, if the last reported sale price per share of Common Stock has been at least 250% of the exchange price for the Exchangeable Notes for certain specified periods, Hertz Corp. may redeem all (but not part) of the Exchangeable Notes at a cash redemption price equal to the initial principal amount of the Exchangeable Notes to be redeemed plus PIK interest on such Exchangeable Notes for each interest payment date occurring on or prior to the redemption date plus accrued and unpaid PIK interest on such Exchangeable Notes to, but not including, the redemption date.

The Notes are expected to be guaranteed by the Company, Rental Car Intermediate Holdings, LLC, Hertz Corp.’s direct parent company, and each of Hertz Corp.’s existing domestic subsidiaries and future restricted subsidiaries that guarantees indebtedness under Hertz Corp.’s first lien credit facilities or certain other indebtedness for borrowed money. The First Lien Notes and the related guarantees (other than the guarantee by the Company) are expected to be secured (subject to certain exceptions and permitted liens) on a first-lien basis by the same assets (other than certain excluded property) that secure indebtedness under Hertz Corp.’s first lien credit facilities (the "Collateral") and are therefore expected to be effectively pari passu with indebtedness under Hertz Corp.’s first lien credit facilities. The Exchangeable Notes and the related guarantees (other than the guarantee by the Company) are expected to be secured (subject to certain exceptions and permitted liens) on a second-lien basis by the Collateral and are therefore expected to be effectively junior to the First Lien Notes and indebtedness under Hertz Corp.’s first lien credit facilities.

The Notes and the guarantees of the Notes are being offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and, except for the Exchangeable Notes and the related guarantees, to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The Notes, the guarantees of the Notes and any shares of Common Stock issuable upon exchange of the Exchangeable Notes have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and the securities laws of any other jurisdiction.

This press release is not an offer to sell or purchase, or a solicitation of an offer to sell or purchase, the Notes, the guarantees of the Notes or the shares of Common Stock issuable upon exchange of the Exchangeable Notes and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any person to whom such an offer, solicitation or sale would be unlawful.

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.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" within the meaning of the federal securities laws. Words such as "expect," "will" and "intend" and similar expressions identify forward-looking statements, which include but are not limited to statements related to our positioning, strategy, vision, forward looking investments, conditions in the travel industry, our financial and operational condition, our sources of liquidity, the proposed offerings, the anticipated terms of the Notes and Hertz Corp.’s expected use of proceeds from the proposed offerings. 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 risks and uncertainties related to completion of the offerings on the anticipated terms or at all, market conditions (including market interest rates) and the satisfaction of customary closing conditions related to the offerings, unanticipated uses of capital and those in our risk factors that we identify in the offering memorandums for these offerings and our most recent annual report on Form 10-K for the year ended December 31, 2023, as filed with the U.S. Securities and Exchange Commission on February 12, 2024, and any updates thereto in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K. We caution you not to place undue reliance on our forward-looking statements, which speak only as of their date, and we undertake no obligation to update this information.

SOURCE Hertz Global Holdings, Inc.

ESTERO, Fla., June 3, 2024 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz", "Hertz Global" or the "Company"), a leading global rental car company, today announced the appointment of Scott M. Haralson as Chief Financial Officer, joining the company by the end of June. Haralson will succeed Alexandra Brooks, who is leaving the Company to pursue other opportunities but will remain until the end of the month to ensure an orderly transition.

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"I am thrilled to have Scott join the Hertz team," said Hertz CEO Gil West. "His deep expertise in financial management and leveraging the capital markets to drive business transformation will be invaluable to Hertz as we rotate our fleet, deliver operational excellence, build greater cost discipline and undertake other key initiatives to improve our financial performance. I welcome Scott’s partnership in helping lead Hertz through this transition year and into our next phase of growth as we seek to deliver sustainable long-term shareholder value."

"I’m honored to be joining such a storied brand in the travel industry at this critical moment in Hertz’s journey," said Haralson. "I look forward to working alongside Gil and the entire Hertz team as we continue strengthening the balance sheet and drive enhanced profitability to unlock new opportunities for growth, all with an eye toward delivering excellent service to customers and shaping the future of mobility."

Haralson is a seasoned executive and veteran of the transportation industry with over 25 years of leadership and corporate finance experience, having most recently served as Chief Financial Officer of Spirit Airlines, where he helped the company navigate the pandemic and strengthened its financial position. Prior to Spirit Airlines, Haralson held key financial leadership roles at Dish Network, Frontier Airlines, Swift Aviation Group and US Airways. He has deep experience across all facets of financial management, including capital markets and capital funding, capital budgeting, strategic planning, forecasting, financial planning and analysis and cost management and treasury and cash management.

"I want to thank Alex for her dedicated service to Hertz over the past four years," West added. "Alex has played an important role in shaping Hertz, first as Chief Accounting Officer and then as CFO."

In addition, Hertz and Chief Operating Officer Justin Keppy have agreed that Mr. Keppy would resign from the Company, effective June 3, 2024. "As we welcome Scott onto the team for this next exciting chapter at Hertz, we thank Alex and Justin for their contributions to the company and wish them well in their next endeavors," West said.

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.

SOURCE Hertz Global Holdings, Inc.

"Fleet and direct operating costs weighed on this quarter’s performance," said Gil West, Hertz chief executive officer. "We’re tackling both issues – getting to the right supply of vehicles at an acceptable capital cost while at the same time driving productivity up and operating costs down. These, along with creating a superior customer experience, will be our focus as we position ourselves to take advantage of strong travel demand in this transition year. We’ve put the right strategy in place, and I see a clear path for Hertz to generate sustainable and higher earnings for our shareholders."

ESTERO, Fla., April 25, 2024 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz", "Hertz Global" or the "Company") today reported results for its first quarter 2024.

OVERVIEW

• Revenue of $2.1 billion
• GAAP net loss of $186 million, a negative 9% margin, or $0.61 loss per diluted share
• Adjusted net loss of $392 million, or $1.28 loss per diluted share
• Adjusted Corporate EBITDA of negative $567 million, a negative 27% margin, driven by a $588 million increase in vehicle depreciation, of which $195 million related to EVs held for sale
• GAAP operating cash flow of $370 million; Adjusted operating cash outflow of $697 million and adjusted free cash outflow of $729 million
• Corporate liquidity of $1.3 billion at March 31, 2024

FIRST QUARTER RESULTS

First quarter revenue was $2.1 billion, up 2% from the first quarter of 2023 and reflected continued strength in rental demand. Increased demand in leisure and rideshare customer channels drove a 9% increase in transaction days. First quarter RPD of $56.68 reflected a decline of 7% year over year, which moderated to 3% in March.

In the first quarter, the Company upsized its EV disposition plan by 10,000 vehicles, for a total of 30,000 EVs intended for sale in 2024. The Company incurred a $195 million charge to vehicle depreciation to write down the EVs held for sale which were remaining in inventory at quarter-end to fair value and recognize the disposition losses on EVs sold in the period.

Vehicle depreciation in the first quarter of 2024 increased $588 million, or $339 on a per unit basis, primarily driven by deterioration in estimated forward residual values and disposition losses on ICE vehicles compared to gains in the prior year quarter. Additionally, of the $339 per unit increase, $119 was related to EVs held for sale.

Direct operating expense on a per transaction day basis in the first quarter of 2024 increased by 3% year over year reflecting inflationary pressure as well as elevated collision and damage expense. Excluding collision and damage, DOE per day was flat.

Adjusted Corporate EBITDA was negative $567 million in the quarter driven mainly by a $588 million increase in vehicle depreciation compared to the first quarter of 2023, of which $195 million related to EVs held for sale. The Company commenced a broad fleet refresh during the quarter and has revenue and cost initiatives in place to enhance the Company’s future profitability.

SUMMARY RESULTS

	Three Months Ended March 31,				Percent Inc/(Dec) 2024 vs 2023
($ in millions, except earnings per share or where noted)	2024		2023
Hertz Global – Consolidated
Total revenues	$ 2,080		$ 2,047		2 %
Net income (loss)	$ (186)		$ 196		NM
Net income (loss) margin	(9) %		10 %
Adjusted net income (loss)(a)	$ (392)		$ 126		NM
Adjusted diluted earnings (loss) per share(a)	$ (1.28)		$ 0.39		NM
Adjusted Corporate EBITDA(a)	$ (567)		$ 237		NM
Adjusted Corporate EBITDA Margin(a)	(27) %		12 %
Average Vehicles (in whole units)	547,492		504,528		9 %
Average Rentable Vehicles (in whole units)	529,232		483,288		10 %
Vehicle Utilization	76 %		77 %
Transaction Days (in thousands)	36,854		33,787		9 %
Total RPD (in dollars)(b)	$ 56.68		$ 60.85		(7) %
Total RPU Per Month (in whole dollars)(b)	$ 1,316		$ 1,418		(7) %
Depreciation Per Unit Per Month (in whole dollars)(b)	$ 592		$ 253		NM
Americas RAC Segment
Total revenues	$ 1,739		$ 1,730		1 %
Adjusted EBITDA	$ (488)		$ 261		NM
Adjusted EBITDA Margin	(28) %		15 %
Average Vehicles (in whole units)	450,585		412,983		9 %
Average Rentable Vehicles (in whole units)	433,823		393,512		10 %
Vehicle Utilization	77 %		79 %
Transaction Days (in thousands)	30,560		27,879		10 %
Total RPD (in dollars)(b)	$ 56.92		$ 62.08		(8) %
Total RPU Per Month (in whole dollars)(b)	$ 1,337		$ 1,466		(9) %
Depreciation Per Unit Per Month (in whole dollars)(b)	$ 649		$ 282		NM
International RAC Segment
Total revenues	$ 341		$ 317		8 %
Adjusted EBITDA	$ (27)		$ 53		NM
Adjusted EBITDA Margin	(8) %		17 %
Average Vehicles (in whole units)	96,907		91,545		6 %
Average Rentable Vehicles (in whole units)	95,409		89,776		6 %
Vehicle Utilization	72 %		72 %
Transaction Days (in thousands)	6,294		5,908		7 %
Total RPD (in dollars)(b)	$ 55.52		$ 55.06		1 %
Total RPU Per Month (in whole dollars)(b)	$ 1,221		$ 1,208		1 %
Depreciation Per Unit Per Month (in whole dollars)(b)	$ 326		$ 120		NM

NM – Not meaningful
(a)	Represents a non-GAAP measure. See the accompanying reconciliations included in Supplemental Schedule II for 2024 and 2023.
(b)	Based on December 31, 2023 foreign exchange rates.

EARNINGS WEBCAST INFORMATION

Hertz Global’s live webcast and conference call to discuss its first quarter 2024 results will be held on April 25, 2024, 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/BI56fe0b7f1062434abaa5ccf4ea43b795, and you will be provided with dial in details. Investors are encouraged to dial-in approximately 15 minutes prior to the call. A web replay will remain available on the website for approximately one year. The earnings release and related supplemental schedules containing the reconciliations of non-GAAP measures will be available on the Hertz website, IR.Hertz.com.

UNAUDITED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP MEASURES AND DEFINITIONS

In this earnings release, we include select unaudited financial data of Hertz Global, Supplemental Schedules, which are provided to present segment results, and reconciliations of non-GAAP measures to their most comparable GAAP measures. Following the Supplemental Schedules, the Company provides definitions for terminology used throughout the earnings release and its rationale on the importance and usefulness of non-GAAP measures for investors and management.

ABOUT HERTZ

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 are identified by words such as "believe," "expect," "project," "potential," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts," "guidance" or similar expressions, and include information concerning our liquidity, our results of operations, our business strategies, the business environment and other information. These forward-looking statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors. The Company believes these judgments are reasonable, but you should understand that these forward-looking statements are not guarantees of future performance or results, and that the Company’s actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative, that may be revised or supplemented in subsequent reports, such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed or furnished to the SEC.

Important factors that could affect the Company’s actual results and cause them to differ materially from those expressed in forward-looking statements include, among other things:

• mix of program and non-program vehicles in the Company’s fleet, which can lead to increased exposure to residual value risk upon disposition;
• the potential for residual values associated with non-program vehicles in the Company’s fleet to decline, including suddenly or unexpectedly, or fail to follow historical seasonal patterns;
• the Company’s ability to purchase adequate supplies of competitively priced vehicles at a reasonable cost in order to efficiently service rental demand, including upon any disruptions in the global supply chain;
• the Company’s ability to effectively dispose of vehicles, at the times and through the channels, that maximize the Company’s returns;
• the age of the Company’s fleet, and its impact on vehicle carrying costs, customer service scores, as well as on the Company’s ability to sell vehicles at acceptable prices and times;
• whether a manufacturer of the Company’s program vehicle fulfills its repurchase obligations;
• the frequency or extent of manufacturer safety recalls;
• levels of travel demand, particularly business and leisure travel in the U.S. and in global markets;
• seasonality and other occurrences that disrupt rental activity during the Company’s peak periods, including in critical geographies;
• the Company’s ability to accurately estimate future levels of rental activity and adjust the number, location and mix of vehicles used in the Company’s rental operations accordingly;
• the Company’s ability to implement its business strategy or strategic transactions, including the Company’s ability to implement plans to support a large-scale EV fleet 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;
• significant changes in the competitive environment and the effect of competition in the Company’s markets on rental volume and pricing;
• the Company’s reliance on third-party distribution channels and related prices, commission structures and transaction volumes;
• the Company’s ability to offer services for a favorable customer experience, and to retain and develop customer loyalty and market share;
• the Company’s ability to maintain its network of leases and vehicle rental concessions at airports and other key locations in the U.S. and internationally;
• the Company’s ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy;
• the Company’s ability to attract and retain effective frontline employees, senior management and other key employees;
• the Company’s ability to effectively manage its union relations and labor agreement negotiations;
• the Company’s ability to manage and respond to cybersecurity threats and cyber attacks on the Company’s information technology systems, or those of the Company’s third-party providers;
• the Company’s ability, and that of the Company’s key third-party partners, to prevent the misuse or theft of information the Company possesses, including as a result of cyber attacks and other security threats;
• the Company’s ability to maintain, upgrade and consolidate its information technology systems;
• the Company’s ability to comply with current and future laws and regulations in the U.S. and internationally regarding data protection, data security and privacy risks;
• risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anti-corruption or anti-bribery laws and the Company’s ability to repatriate cash from non-U.S. affiliates without adverse tax consequences;
• risks relating to tax laws, including those that affect the Company’s ability to recapture accelerated tax depreciation and expensing, as well as any adverse determinations or rulings by tax authorities;
• the Company’s ability to utilize its net operating loss carryforwards;
• the Company’s exposure to uninsured liabilities relating to personal injury, death and property damage, or otherwise, including material litigation;
• the potential for adverse changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, including those related to environmental matters, optional insurance products or policies, franchising and licensing matters, the ability to pass-through rental car related expenses, or taxes, among others, that affect the Company’s operations, the Company’s costs or applicable tax rates;
• the Company’s ability to recover its goodwill and indefinite-lived intangible assets when performing impairment analysis;
• the potential for changes in management’s best estimates and assessments;
• the Company’s ability to maintain an effective compliance program;
• the availability of earnings and funds from the Company’s subsidiaries;
• the Company’s ability to comply, and the cost and burden of complying, with ESG regulations or expectations of stakeholders, and otherwise achieve the Company’s corporate responsibility goals;
• the availability of additional or continued sources of financing at acceptable rates for the Company’s revenue earning vehicles and to refinance the Company’s existing indebtedness, and the Company’s ability to comply with the covenants in the agreements governing its indebtedness;
• the extent to which the Company’s consolidated assets secure its outstanding indebtedness;
• volatility in the Company’s share price, the Company’s ownership structure and certain provisions of the Company’s charter documents could negatively affect the market price of the Company’s common stock;
• the Company’s ability to implement an effective business continuity plan to protect the business in exigent circumstances;
• the Company’s ability to effectively maintain effective internal control over financial reporting; and
• the Company’s ability to execute strategic transactions.

Additional information concerning these and other factors can be found in the Company’s filings with the SEC, including its Annual Reports on Form 10-K, 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)	2024		2023
Revenues	$ 2,080		$ 2,047
Expenses:
Direct vehicle and operating	1,366		1,221
Depreciation of revenue earning vehicles and lease charges, net	969		381
Depreciation and amortization of non-vehicle assets	32		35
Selling, general and administrative	162		221
Interest expense, net:
Vehicle	141		111
Non-vehicle	75		51
Total interest expense, net	216		162
Other (income) expense, net	2		9
(Gain) on sale of non-vehicle capital assets	—		(162)
Change in fair value of Public Warrants	(86)		118
Total expenses	2,661		1,985
Income (loss) before income taxes	(581)		62
Income tax (provision) benefit	395		134
Net income (loss)	$ (186)		$ 196
Weighted average number of shares outstanding:
Basic	305		321
Diluted	305		323
Earnings (loss) per share:
Basic	$ (0.61)		$ 0.61
Diluted	$ (0.61)		$ 0.61

UNAUDITED CONSOLIDATED BALANCE SHEETS
(In millions, except par value and share data)	March 31, 2024		December 31, 2023
ASSETS
Cash and cash equivalents	$ 465		$ 764
Restricted cash and cash equivalents:
Vehicle	193		152
Non-vehicle	287		290
Total restricted cash and cash equivalents	480		442
Total cash and cash equivalents and restricted cash and cash equivalents	945		1,206
Receivables:
Vehicle	238		211
Non-vehicle, net of allowance of $49 and $47, respectively	975		980
Total receivables, net	1,213		1,191
Prepaid expenses and other assets	751		726
Revenue earning vehicles:
Vehicles	17,052		16,806
Less: accumulated depreciation	(2,435)		(2,155)
Total revenue earning vehicles, net	14,617		14,651
Property and equipment, net	667		671
Operating lease right-of-use assets	2,211		2,253
Intangible assets, net	2,862		2,863
Goodwill	1,044		1,044
Total assets	$ 24,310		$ 24,605
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable:
Vehicle	$ 632		$ 191
Non-vehicle	502		510
Total accounts payable	1,134		701
Accrued liabilities	883		860
Accrued taxes, net	177		157
Debt:
Vehicle	11,846		12,242
Non-vehicle	3,898		3,449
Total debt	15,744		15,691
Public Warrants	367		453
Operating lease liabilities	2,100		2,142
Self-insured liabilities	473		471
Deferred income taxes, net	620		1,038
Total liabilities	21,498		21,513
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, no shares issued and outstanding	—		—
Common stock, $0.01 par value, 480,430,082 and 479,990,286 shares issued, respectively, and 305,618,038 and 305,178,242 shares outstanding, respectively	5		5
Treasury stock, at cost, 174,812,044 and 174,812,044 common shares, respectively	(3,430)		(3,430)
Additional paid-in capital	6,351		6,405
Retained earnings (Accumulated deficit)	174		360
Accumulated other comprehensive income (loss)	(288)		(248)
Total stockholders’ equity	2,812		3,092
Total liabilities and stockholders’ equity	$ 24,310		$ 24,605

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
	Three Months Ended March 31,
(In millions)	2024		2023
Cash flows from operating activities:
Net income (loss)	$ (186)		$ 196
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and reserves for revenue earning vehicles, net	1,070		466
Depreciation and amortization, non-vehicle	32		35
Amortization of deferred financing costs and debt discount (premium)	18		14
Stock-based compensation charges	16		21
Stock-based compensation forfeitures	(68)		—
Provision for receivables allowance	31		20
Deferred income taxes, net	(414)		(135)
(Gain) loss on sale of non-vehicle capital assets	1		(162)
Change in fair value of Public Warrants	(86)		118
Changes in financial instruments	6		108
Other	(10)		—
Changes in assets and liabilities:
Non-vehicle receivables	(36)		(50)
Prepaid expenses and other assets	(56)		(48)
Operating lease right-of-use assets	100		78
Non-vehicle accounts payable	(4)		(27)
Accrued liabilities	31		29
Accrued taxes, net	21		1
Operating lease liabilities	(100)		(84)
Self-insured liabilities	4		(18)
Net cash provided by (used in) operating activities	370		562
Cash flows from investing activities:
Revenue earning vehicles expenditures	(1,904)		(2,824)
Proceeds from disposal of revenue earning vehicles	1,233		1,206
Non-vehicle capital asset expenditures	(33)		(45)
Proceeds from non-vehicle capital assets disposed of	3		175
Return of (investment in) equity investments	(2)		—
Net cash provided by (used in) investing activities	(703)		(1,488)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt	534		2,061
Repayments of vehicle debt	(892)		(1,190)
Proceeds from issuance of non-vehicle debt	935		425
Repayments of non-vehicle debt	(490)		(430)
Payment of financing costs	—		(8)
Share repurchases	—		(118)
Other	(2)		(1)
Net cash provided by (used in) financing activities	85		739
Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents	(13)		11
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents during the period	(261)		(176)
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period	1,206		1,418
Cash and cash equivalents and restricted cash and cash equivalents at end of period	$ 945		$ 1,242

Supplemental Schedule I
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
	Three Months Ended March 31, 2024								Three Months Ended March 31, 2023
(In millions)	Americas RAC		International RAC		Corporate		Hertz Global		Americas RAC		International RAC		Corporate		Hertz Global
Revenues	$ 1,739		$ 341		$ —		$ 2,080		$ 1,730		$ 317		$ —		$ 2,047
Expenses:
Direct vehicle and operating	1,152		216		(2)		1,366		1,039		182		—		1,221
Depreciation of revenue earning vehicles and lease charges, net	876		93		—		969		349		32		—		381
Depreciation and amortization of non-vehicle assets	25		4		3		32		28		2		5		35
Selling, general and administrative	124		57		(19)		162		105		37		79		221
Interest expense, net:
Vehicle	116		25		—		141		93		18		—		111
Non-vehicle	(2)		(4)		81		75		(18)		(2)		71		51
Total interest expense, net	114		21		81		216		75		16		71		162
Other (income) expense, net	(1)		1		2		2		(1)		6		4		9
(Gain) on sale of non-vehicle capital assets	—		—		—		—		(162)		—		—		(162)
Change in fair value of Public Warrants	—		—		(86)		(86)		—		—		118		118
Total expenses	2,290		392		(21)		2,661		1,433		275		277		1,985
Income (loss) before income taxes	$ (551)		$ (51)		$ 21		(581)		$ 297		$ 42		$ (277)		62
Income tax (provision) benefit							395								134
Net income (loss)							$ (186)								$ 196

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)	2024		2023
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share:
Net income (loss)(a)	$ (186)		$ 196
Adjustments:
Income tax provision (benefit)	(395)		(134)
Vehicle and non-vehicle debt-related charges(b)	18		14
Restructuring and restructuring related charges(c)	32		3
Acquisition accounting-related depreciation and amortization(d)	—		—
Unrealized (gains) losses on financial instruments(e)	6		108
(Gain) on sale of non-vehicle capital assets(f)	—		(162)
Change in fair value of Public Warrants	(86)		118
Other items(g)(k)	8		14
Adjusted pre-tax income (loss)(h)	(603)		157
Income tax (provision) benefit on adjusted pre-tax income (loss)(i)	211		(31)
Adjusted Net Income (Loss)	$ (392)		$ 126
Weighted-average number of diluted shares outstanding	305		323
Adjusted Diluted Earnings (Loss) Per Share(j)	$ (1.28)		$ 0.39
Adjusted Corporate EBITDA:
Net income (loss)	$ (186)		$ 196
Adjustments:
Income tax provision (benefit)	(395)		(134)
Non-vehicle depreciation and amortization	32		35
Non-vehicle debt interest, net of interest income	75		51
Vehicle debt-related charges(b)	12		10
Restructuring and restructuring related charges(c)	32		3
Unrealized (gains) losses on financial instruments(e)	6		108
(Gain) on sale of non-vehicle capital assets(f)	—		(162)
Non-cash stock-based compensation forfeitures(l)	(64)		—
Change in fair value of Public Warrants	(86)		118
Other items(g)	7		12
Adjusted Corporate EBITDA(l)	$ (567)		$ 237
Adjusted Corporate EBITDA margin	(27) %		12 %

(a)	Net income (loss) margin for the three months ended March 31, 2024 and 2023 was (9)% and 10%, respectively.
(b)	Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.
(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.
(d)	Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.
(e)	Represents unrealized gains (losses) on derivative financial instruments. In 2023, also includes the realization of $88 million of previously unrealized gains resulting from the unwind of certain interest rate caps.
(f)	Represents gain on the sale of certain non-vehicle capital assets sold in March 2023.
(g)	Represents miscellaneous items. For the three months ended March 31, 2024, primarily includes certain IT-related charges, partially offset by certain litigation settlements. For the three months ended March 31, 2023, primarily includes certain IT-related charges..
(h)	The table below reconciles expenses as reported in the condensed consolidated unaudited statement of operations to adjusted expenses utilized in calculating Adjusted Pretax Income (Loss) and Adjusted Net Income (Loss), all of which are deemed non-GAAP measures:

(in millions)	Three Months Ended March 31, 2024						Three Months Ended March 31, 2023
Expenses:	As Reported		Adjustment		As Adjusted		As Reported		Adjustment		As Adjusted
Direct vehicle and operating	1,366		$ (6)		$ 1,360		1,221		$ —		$ 1,221
Depreciation of revenue earning vehicles and lease charges, net	969		5		974		381		2		383
Depreciation and amortization of non-vehicle assets	32		—		32		35		—		35
Selling, general and administrative	162		(39)		123		221		(14)		207
Interest expense, net:
Vehicle	141		(13)		128		111		(119)		(8)
Non-vehicle	75		(10)		65		51		(8)		43
Total interest expense, net	216		(23)		193		162		(127)		35
Other income (expense), net	2		(1)		1		9		—		9
Gain on sale non-vehicle capital assets	—		—		—		(162)		162		—
Change in fair value of Public Warrants	(86)		86		—		118		(118)		—
Total	$ 2,661		$ 22		$ 2,683		$ 1,985		$ (95)		$ 1,890

(i)	Derived utilizing a combined statutory rate of 35% and 20% for the three months ended March 31, 2024 and 2023, respectively, applied to the respective Adjusted Pre-tax Income (Loss). The increase in rate is primarily resulting from reduced EV-related tax credits anticipated to be used to decrease the Company’s U.S. federal tax provision throughout 2024 based on the Company’s expected purchases of electric vehicles.
(j)	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.
(k)	Also includes letter of credit fees.
(l)	Represents former CEO awards forfeited in March 2024.
(m)	The table below reconciles expenses as reported in the condensed consolidated unaudited statement of operations to adjusted expenses utilized in calculating Adjusted Corporate EBITDA, both of which are deemed non-GAAP measures:

(in millions)	Three Months Ended March 31, 2024						Three Months Ended March 31, 2023
Expenses:	As Reported		Adjustment		As Adjusted		As Reported		Adjustment		As Adjusted
Direct vehicle and operating	1,366		$ (6)		$ 1,360		1,221		$ —		$ 1,221
Depreciation of revenue earning vehicles and lease charges, net	969		5		974		381		2		383
Depreciation and amortization of non-vehicle assets	32		(32)		—		35		(35)		—
Selling, general and administrative	162		25		187		221		(14)		207
Interest expense, net:
Vehicle	141		(13)		128		111		(119)		(8)
Non-vehicle	75		(75)		—		51		(51)		—
Total interest expense, net	216		(88)		128		162		(170)		(8)
Other income (expense), net	2		(4)		(2)		9		(2)		7
Gain on sale non-vehicle capital assets	—		—		—		(162)		162		—
Change in fair value of Public Warrants	(86)		86		—		118		(118)		—
Total	$ 2,661		$ (14)		$ 2,647		$ 1,985		$ (175)		$ 1,810

Supplemental Schedule III
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE – ADJUSTED OPERATING CASH FLOW
AND ADJUSTED FREE CASH FLOW
Unaudited
	Three Months Ended March 31,
(In millions)	2024		2023
ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW:
Net cash provided by (used in) operating activities	$ 370		$ 562
Depreciation and reserves for revenue earning vehicles, net	(1,070)		(466)
Bankruptcy related payments (post emergence) and other payments	3		8
Adjusted operating cash flow	(697)		104
Non-vehicle capital asset proceeds (expenditures), net	(30)		130
Adjusted operating cash flow before vehicle investment	(727)		234
Net fleet growth after financing	(2)		(317)
Adjusted free cash flow	$ (729)		$ (83)
CALCULATION OF NET FLEET GROWTH AFTER FINANCING:
Revenue earning vehicles expenditures	$ (1,904)		$ (2,824)
Proceeds from disposal of revenue earning vehicles	1,233		1,206
Revenue earning vehicles capital expenditures, net	(671)		(1,618)
Depreciation and reserves for revenue earning vehicles, net	1,070		466
Financing activity related to vehicles:
Borrowings	534		2,061
Payments	(892)		(1,190)
Restricted cash changes, vehicle	(43)		(36)
Net financing activity related to vehicles	(401)		835
Net fleet growth after financing	$ (2)		$ (317)

Supplemental Schedule IV
HERTZ GLOBAL HOLDINGS, INC.
NET DEBT CALCULATION
Unaudited
	As of March 31, 2024						As of December 31, 2023
(In millions)	Vehicle		Non-Vehicle		Total		Vehicle		Non-Vehicle		Total
First Lien RCF	$ —		$ 450		$ 450		$ —		$ —		$ —
Term loans	—		2,008		2,008		—		2,013		2,013
Senior notes	—		1,500		1,500		—		1,500		1,500
U.S. vehicle financing (HVF III)	10,051		—		10,051		10,203		—		10,203
International vehicle financing (Various)	1,761		—		1,761		2,001		—		2,001
Other debt	98		2		100		110		2		112
Debt issue costs, discounts and premiums	(64)		(62)		(126)		(72)		(66)		(138)
Debt as reported in the balance sheet	11,846		3,898		15,744		12,242		3,449		15,691
Add:
Debt issue costs, discounts and premiums	64		62		126		72		66		138
Less:
Cash and cash equivalents	—		465		465		—		764		764
Restricted cash	193		—		193		152		—		152
Restricted cash and restricted cash equivalents associated with Term C Loan	—		245		245		—		245		245
Net Debt	$ 11,717		$ 3,250		$ 14,967		$ 12,162		$ 2,506		$ 14,668
LTM Adjusted Corporate EBITDA(a)			(243)						561
Net Corporate Leverage			NM						4.5x

NM – Not meaningful
(a)	Reconciliation of LTM Adjusted Corporate EBITDA for the three months ended March 31, 2024 is as follows:

LTM Adjusted Corporate EBITDA:
Net income (loss) three months ended:
June 30, 2023	$ 139
September 30, 2023	629
December 31, 2023	(348)
March 31, 2024	(186)
LTM net income (loss)	234
Adjustments:
Income tax provision (benefit)	(591)
Non-vehicle depreciation and amortization	146
Non-vehicle debt interest, net of interest income	262
Vehicle debt-related charges	44
Restructuring and restructuring related charge	46
Unrealized (gains) losses on financial instruments	15
Non-cash stock-based compensation forfeitures	(64)
Change in fair value of Public Warrants	(367)
Other items	32
LTM Adjusted Corporate EBITDA	$ (243)

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)	2024		2023
Total RPD
Revenues	$ 2,080		$ 2,047
Foreign currency adjustment(a)	9		9
Total Revenues – adjusted for foreign currency	$ 2,089		$ 2,056
Transaction Days (in thousands)	36,854		33,787
Total RPD (in dollars)	$ 56.68		$ 60.85		(7) %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency	$ 2,089		$ 2,056
Average Rentable Vehicles (in whole units)	529,232		483,288
Total revenue per unit (in whole dollars)	$ 3,947		$ 4,254
Number of months in period (in whole units)	3		3
Total RPU Per Month (in whole dollars)	$ 1,316		$ 1,418		(7) %
Vehicle Utilization
Transaction Days (in thousands)	36,854		33,787
Average Rentable Vehicles (in whole units)	529,232		483,288
Number of days in period (in whole units)	91		90
Available Car Days (in thousands)	48,181		43,609
Vehicle Utilization(b)	76 %		77 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net	$ 969		$ 381
Foreign currency adjustment(a)	3		2
Adjusted depreciation of revenue earning vehicles and lease charges	$ 972		$ 383
Average Vehicles (in whole units)	547,492		504,528
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$ 1,775		$ 759
Number of months in period (in whole units)	3		3
Depreciation Per Unit Per Month (in whole dollars)	$ 592		$ 253		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, 2023 foreign exchange rates.
(b)	Calculated as Transaction Days divided by Available Car Days.

Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
Americas RAC
	Three Months Ended March 31,				Percent Inc/(Dec)
($ in millions, except where noted)	2024		2023
Total RPD
Revenues	$ 1,739		$ 1,730
Foreign currency adjustment(a)	—		1
Total Revenues – adjusted for foreign currency	$ 1,739		$ 1,731
Transaction Days (in thousands)	30,560		27,879
Total RPD (in dollars)	$ 56.92		$ 62.08		(8) %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency	$ 1,739		$ 1,731
Average Rentable Vehicles (in whole units)	433,823		393,512
Total revenue per unit (in whole dollars)	$ 4,010		$ 4,398
Number of months in period (in whole units)	3		3
Total RPU Per Month (in whole dollars)	$ 1,337		$ 1,466		(9) %
Vehicle Utilization
Transaction Days (in thousands)	30,560		27,879
Average Rentable Vehicles (in whole units)	433,823		393,512
Number of days in period (in whole units)	91		90
Available Car Days (in thousands)	39,496		35,420
Vehicle Utilization(b)	77 %		79 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net	$ 876		$ 349
Foreign currency adjustment(a)	1		1
Adjusted depreciation of revenue earning vehicles and lease charges	$ 877		$ 350
Average Vehicles (in whole units)	450,585		412,983
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$ 1,947		$ 847
Number of months in period (in whole units)	3		3
Depreciation Per Unit Per Month (in whole dollars)	$ 649		$ 282		NM

NM – Not meaningful
(a)	Based on December 31, 2023 foreign exchange rates.
(b)	Calculated as Transaction Days divided by Available Car Days.

Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
International RAC
	Three Months Ended March 31,				Percent Inc/(Dec)
($ in millions, except where noted)	2024		2023
Total RPD
Revenues	$ 341		$ 317
Foreign currency adjustment(a)	8		8
Total Revenues – adjusted for foreign currency	$ 349		$ 325
Transaction Days (in thousands)	6,294		5,908
Total RPD (in dollars)	$ 55.52		$ 55.06		1 %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency	$ 349		$ 325
Average Rentable Vehicles (in whole units)	95,409		89,776
Total revenue per unit (in whole dollars)	$ 3,663		$ 3,623
Number of months in period (in whole units)	3		3
Total RPU Per Month (in whole dollars)	$ 1,221		$ 1,208		1 %
Vehicle Utilization
Transaction Days (in thousands)	6,294		5,908
Average Rentable Vehicles (in whole units)	95,409		89,776
Number of days in period (in whole units)	91		90
Available Car Days (in thousands)	8,686		8,191
Vehicle Utilization (b)	72 %		72 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net	$ 93		$ 32
Foreign currency adjustment(a)	2		1
Adjusted depreciation of revenue earning vehicles and lease charges	$ 95		$ 33
Average Vehicles (in whole units)	96,907		91,545
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$ 979		$ 359
Number of months in period (in whole units)	3		3
Depreciation Per Unit Per Month (in whole dollars)	$ 326		$ 120		NM

NM – Not meaningful
(a)	Based on December 31, 2023 foreign exchange rates.
(b)	Calculated as Transaction Days divided by Available Car Days.

NON-GAAP MEASURES AND KEY METRICS

The term "GAAP" refers to accounting principles generally accepted in the United States. Adjusted EBITDA is the Company’s segment measure of profitability and complies with GAAP when used in that context.

NON-GAAP MEASURES

Non-GAAP measures are not recognized measurements under GAAP. When evaluating the Company’s operating performance or liquidity, investors should not consider non-GAAP measures in isolation of, superior to, or as a substitute for measures of the Company’s financial performance as determined in accordance with GAAP.

Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share ("Adjusted EPS")

Adjusted Net Income (Loss) represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; vehicle and non-vehicle debt-related charges; restructuring and restructuring related charges; acquisition accounting-related depreciation and amortization; former CEO stock-based compensation award forfeitures; 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.

Net Fleet Growth After Financing

U.S. and International Rental Car segments Fleet Growth is defined as revenue earning vehicles expenditures, net of proceeds from disposals, plus vehicle depreciation and net vehicle financing, which includes borrowings, repayments and the change in restricted cash associated with vehicles. Fleet Growth is important as it allows the Company to assess the cash flow required to support its investment in revenue earning vehicles.

Net Non-vehicle Debt

Net Non-vehicle Debt is calculated as non-vehicle debt as reported on the Company’s balance sheet, excluding the impact of unamortized debt issuance costs associated with non-vehicle debt, less cash and cash equivalents. Non-vehicle debt consists of the Company’s Senior Term Loan, Senior RCF, Senior Notes, Senior Second Priority Secured Notes, Promissory Notes and certain other non-vehicle indebtedness of its domestic and foreign subsidiaries. Net Non-vehicle Debt is important to management and investors as it helps measure the Company’s corporate leverage. Net Non-vehicle Debt also assists in the evaluation of the Company’s ability to service its non-vehicle debt without reference to the expense associated with the vehicle debt, which is collateralized by assets not available to lenders under the non-vehicle debt facilities.

Net Vehicle Debt

Net Vehicle Debt is calculated as vehicle debt as reported on the Company’s balance sheet, excluding the impact of unamortized debt issue costs associated with vehicle debt, less restricted cash associated with vehicles. Restricted cash associated with vehicle debt is restricted for the purchase of revenue earning vehicles and other specified uses under the Company’s vehicle debt facilities. Net Vehicle Debt is important to management, investors and ratings agencies as it helps measure the Company’s leverage with respect to its vehicle assets.

Total Net Debt

Total Net Debt is calculated as total debt, excluding the impact of unamortized debt issuance costs, less total cash and cash equivalents and restricted cash associated with vehicle debt. Unamortized debt issuance costs are required to be reported as a deduction from the carrying amount of the related debt obligation under GAAP. Management believes that eliminating the effects that these costs have on debt will more accurately reflect the Company’s net debt position. Total Net Debt is important to management, investors and ratings agencies as it helps measure the Company’s gross leverage.

Net Corporate Leverage

Net Corporate Leverage is calculated as non-vehicle net debt divided by Adjusted Corporate EBITDA for the last twelve months. Net Corporate Leverage is important to management and investors as it measures the Company’s corporate leverage net of unrestricted cash. Net Corporate Leverage also assists in the evaluation of the Company’s ability to service its non-vehicle debt with reference to the generation of Adjusted Corporate EBITDA.

KEY METRICS

Available Rental Car Days

Available Rental Car Days represents Average Rentable Vehicles multiplied by the number of days in a given period.

Average Vehicles ("Fleet Capacity" or "Capacity")

Average Vehicles is determined using a simple average of the number of vehicles in the fleet whether owned or leased by the Company at the beginning and end of a given period.

Average Rentable Vehicles

Average Rentable Vehicles reflects Average Vehicles excluding vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.

Depreciation Per Unit Per Month ("Depreciation Per Unit" or "DPU")

Depreciation Per Unit Per Month represents the amount of average depreciation expense and lease charges per vehicle per month, exclusive of the impacts of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it reflects how effectively the Company is managing the costs of its vehicles and facilitates comparisons with other participants in the vehicle rental industry.

Total Revenue Per Transaction Day ("Total RPD"or "RPD"; also referred to as "pricing")

Total RPD represents revenue generated per transaction day, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it represents a measure of changes in the underlying pricing in the vehicle rental business and encompasses the elements in vehicle rental pricing that management has the ability to control.

Total Revenue Per Unit Per Month ("Total RPU", "RPU" or "Total RPU Per Month")

Total RPU Per Month represents the amount of revenue generated per vehicle in the rental fleet each month, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it provides a measure of revenue productivity relative to the number of vehicles in our rental fleet whether owned or leased, or asset efficiency.

Transaction Days ("Days"; also referred to as "volume")

Transaction Days represents the total number of 24-hour periods, with any partial period counted as one Transaction Day, that vehicles were on rent (the period between when a rental contract is opened and closed) in a given period. Thus, it is possible for a vehicle to attain more than one Transaction Day in a 24-hour period. This metric is important to management and investors as it represents the number of revenue-generating days.

Vehicle Utilization ("Utilization")

Vehicle Utilization represents the ratio of Transaction Days to Available Rental Car Days. This metric is important to management and investors as it is the measurement of the proportion of vehicles that are being used to generate revenues relative to rentable fleet capacity.

SOURCE Hertz Global Holdings, Inc.