ESTERO, Fla., Jan. 11, 2024 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) (the "Company") announced today that it plans to report its fourth quarter 2023 financial results at approximately 7:30 a.m. ET on Tuesday February 6, 2024 followed by an earnings call at 8:30 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 Q4 2023 earnings call 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 approximately 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.
ESTERO, Fla., Oct. 24, 2023 /PRNewswire/ — Hertz Global Holdings, Inc., (NASDAQ: HTZ), a global leader in car rental, today announced that Justin Keppy will join the company as Executive Vice President and Chief Operating Officer, effective November 15, 2023. In this role, Keppy will be responsible for running the day-to-day operations of the company’s global business.
Hertz Announces Justin Keppy as Chief Operating Officer, effective November 15, 2023.
Keppy joins Hertz from Carrier Corporation where he most recently served as President, North America Residential & Light Commercial HVAC. He took the helm of Carrier’s largest business at the onset of the pandemic and led the organization through one of its most complex periods. Under his leadership, the division won share and drove exceptional topline growth while significantly increasing profitability.
“Justin is a seasoned leader with more than 25 years of operational experience in both the private sector and the U.S. military,” said Hertz CEO and Chair, Stephen Scherr. “He is passionate about building high-performing teams and strong customer relationships to help drive revenue and operational efficiencies. I look forward to working closely with him as he leads the day-to-day execution of our business.”
Prior to Carrier, Keppy served in a variety of senior roles within UTC Aerospace Systems, including President, Sensors & Integrated Systems and Vice President, Operations & Supply Chain, as well as Vice President, Manufacturing, for Hamilton Sundstrand. Before that, he held operations leadership positions with Shawmut Corporation, Ford Motor Company and the U.S. Army.
“I’m thrilled to join Hertz at such a transformational time for the company and the broader travel and automotive industries,” said Keppy. “I look forward to working with Stephen and the amazing team at Hertz to execute the company’s strategic plan to drive value for employees, customers and investors.”
Keppy earned an MBA from Harvard Business School and a bachelor’s degree in Systems Engineering from the United States Military Academy, West Point where he was a distinguished graduate and awarded the Colonial Dames: XVII Century Award for Excellence in Systems Engineering.
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.
ESTERO, Fla., Oct. 3, 2023 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) (the "Company") announced today that it plans to report its third quarter 2023 financial results at approximately 7:30 a.m. ET on Thursday, October 26, 2023 followed by an earnings call at 8:30 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 Q3 2023 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 approximately 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.
Mayor Adams Partners with Hertz to Add Electric Vehicles, Create Jobs, and Provide Workforce Training
NEW YORK, Sept. 20, 2023 /PRNewswire/ — During New York City Climate Week, Hertz (NASDAQ: HTZ) CEO Stephen Scherr and New York City Mayor Eric Adams launched "Hertz Electrifies New York City," a public-private partnership aimed at increasing electric vehicle (EV) adoption and extending the environmental and economic benefits of electrification across neighborhoods.
Through the initiative, Hertz intends to add up to 1,700 rental EVs to its local fleet, create 100 new jobs to serve its growing New York presence, and partner with four public high schools to create EV education and training opportunities for students. The partnership also includes the donation of five EVs from Hertz’s fleet to help New York City schools provide hands-on training to the next generation of auto technicians.
"Hertz is investing in the largest EV rental fleet in North America," said Stephen Scherr, Hertz Chair and CEO. "New York City has always been on the cutting edge of technology and innovation, making it a natural accelerator for the most significant transformation that’s happened in the auto industry in a century. We are excited to partner with Mayor Adams to launch Hertz Electrifies during Climate Week, helping to make the electric driving experience more accessible in New York City while investing in the city’s workforce."
"New York City is in the driver’s seat as we accelerate towards our clean, green, electric future, and public-private partnerships, like what we’re announcing today with Hertz, will help us get there because to successfully transition New York City to electric vehicles and properly fight climate change, everyone must come along for the ride — from the public to the private sector," said New York City Mayor Eric Adams. "As we celebrate Climate Week, we’re proud to announce an expansion of our partnership with Hertz. This investment will also make more EVs available to New Yorkers, while preparing our youth for the emerging green economy of the future and helping us fight climate change from behind the wheel."
As part of Hertz Electrifies New York City, Hertz is partnering with and donating electric vehicles to A-Tech High School in Brooklyn, Thomas Edison Career and Technical Education High School in Queens, Alfred E. Smith Career and Technical Education High School in the Bronx and Ralph R. McKee Career and Technical Education High School on Staten Island.
"We are excited to announce this dynamic partnership with Hertz Electrifies," said First Deputy Mayor Sheena Wright. "Creating a better and more eco-friendly environment requires more than a singular change. Through this partnership, not only are we building a cleaner city by introducing more electric vehicles to New York City, but we are also preparing for the future by training the next generation of a green economy workforce."
Additionally, Hertz is sharing telematic insights from its fleet of connected cars to assist the city in planning for additional public charging infrastructure across all neighborhoods through its Hertz Charging Opportunity Index.
As the Mayor’s EV initiatives are implemented, Hertz will continue making its EV fleet available to rideshare drivers in New York City. To date, more than 50,000 rideshare drivers across the country have rented EVs from Hertz, logging more than 260 million electric miles.
To support its growing EV presence in New York, Hertz is working with bp to launch bp pulse fast charging hubs in New York City, starting with midtown Manhattan. These sites will feature ultra-fast chargers of 150kW+ designed to serve Hertz customers, taxi and ride-share drivers, and the public.
New York City is committed to cutting transportation emissions in half by 2030 and achieving net-zero transportation emissions by 2050. This requires helping more New Yorkers walk, bike, and take public transit, and, when they need to drive, encouraging them to drive electric — a key component of Mayor Adams’ "PlaNYC: Getting Sustainability Done." The plan commits to ensuring no New Yorker is more than 2.5 miles from an electric vehicle fast-charging hub, requires parking garages and lots to make charging available to their customers, and requires all rideshare vehicles to be either zero-emission or wheelchair accessible by 2030. The city is also supporting the electrification of freight vehicles, working to pilot the East Coast’s first low-emissions zone, and creating shared charging depots for electric trucks. The city is leading by example with its own fleet, having already replaced nearly 4,500 fossil-fuel powered vehicles with electric vehicles and operating its own 1,700-port electric vehicle charging network.
"New York City is always leading the charge in modeling important transformation for our country and the city’s investment in the green economy is no different," said DOE Chancellor David C. Banks. "There’s no better way to ensure that we see the return on that investment than to have our students trained on the importance of electric vehicles. Not only are we setting our children up with bold futures in emerging industries, but we are teaching them to use innovation to create a better tomorrow for everyone."
New York is the fifth and largest city to partner with Hertz through Hertz Electrifies to accelerate consumer adoption of electric vehicles and bring environmental and economic benefits to communities across the country.
About Hertz Electrifies Hertz Electrifies is a public-private partnership aimed at furthering the mainstream adoption of electric vehicles and extending the benefits of electrification to communities throughout the United States. The initiative works to: (1) expand electric vehicle fleets (2) accelerate EV charging infrastructure; (3) build education and training opportunities for jobs of the future; and (4) help broaden economic opportunity through electrification. For more information visit www.hertz.com/electrifies.
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. For more information about The Hertz Corporation, visit www.hertz.com. Hertz has tens of thousands of EVs available at more than 500 Hertz locations across 38 states.
Cautionary Note Concerning Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the federal securities laws. Words such as "aim," "create," "accelerate," "transition," "will," "build," "future," "transform," "invest," "shift," "launch," "increase," "initiative," "expand," add," and "develop," and similar expressions identify forward-looking statements, which include but are not limited to statements related to the expansion of Hertz’s EV fleet and its partnership with Uber, installation of charging infrastructure including in partnership with bp, and any other statements regarding future expectations, beliefs, plans, objectives, future events or performance. 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 Hertz’s ability to expand its EV fleet, develop and install sufficient EV charging infrastructure, and otherwise execute on its strategic plans, as well as other factors identified in the risk factors of Hertz’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission (the "SEC") on February 23, 2022 and any updates thereto in subsequent filings with the SEC including in Hertz’s Quarterly Reports on Form 10-Q. We caution you not to place undue reliance on our forward-looking statements, which speak only as of their date, and Hertz undertakes no obligation to update this information.
ESTERO, Fla., Sept. 13, 2023 /PRNewswire/ — Hertz Global Holdings, Inc. (Nasdaq: HTZ) today announced that Paul Stone, Chief Operations Officer and President, will step down from his role effective September 30, 2023, to pursue opportunities in the retail sector, where he began his career. Paul will remain employed with the company in a transitional capacity through October 31, 2023.
The company will conclude a search for a Chief Operating Officer in short order. In the interim, key operations leadership will report directly to Stephen M. Scherr, Chair and Chief Executive Officer.
"I want to thank Paul for his leadership at Hertz, particularly through the company’s restructuring," said Scherr. "I look forward to completing the leadership team, focused on transforming the future of Hertz, with the selection of a new COO."
"Hertz’s progress under Stephen’s leadership has been impressive, and I am confident that the team he has built will deliver meaningful value for customers and shareholders in the years ahead," said Stone.
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.
"Results for the second quarter were strong, reflecting continued high demand for our services and elevated levels of fleet utilization," said Stephen Scherr, Chair and CEO of Hertz. "Our focus on asset returns continues to yield tangible results, enabling us to advance the growth of our rideshare business and the revitalization of the Dollar brand, in addition to facilitating ongoing investments in technology and electrification. Through the hard work and dedication of Hertz employees, we are positioned well to serve our customers through the busy summer season."
ESTERO, Fla., July 27, 2023 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz", "Hertz Global" or the "Company") today reported results for its second quarter 2023.
HIGHLIGHTS
Total revenues of $2.4 billion
GAAP net income of $139 million, a 6% margin, or $0.44 per diluted share
Adjusted Net Income of $227 million, or $0.72 per adjusted diluted share
Adjusted Corporate EBITDA of $347 million, a 14% margin
Operating cash flow of $497 million, adjusted operating cash flow of $91 million
Adjusted free cash outflow of $423 million
Corporate liquidity of $1.4 billion at June 30, including $682 million in unrestricted cash
Company utilized $100 million to repurchase 6.3 million common shares during the quarter
SECOND QUARTER RESULTS
Second quarter revenue of $2.4 billion was characterized by continued strength in demand. Volume increased 12% year over year while average fleet was up 9%. Monthly revenue per unit in the quarter of $1,516 benefited from utilization of 82%, an increase of 230 bps relative to Q2 2022. Fleet depreciation was $329 million, reflecting a year over year increase of $223 million attributable to a reduction in vehicle disposition gains which were at elevated levels in 2022.
Adjusted Corporate EBITDA was $347 million in the quarter, reflecting a healthy 14% margin.
Adjusted free cash outflow of $423 million in the quarter reflected an investment in fleet to meet spring and summer demand.
The Company’s liquidity position was $1.4 billion at June 30, 2023, of which $682 million was unrestricted cash.
SUMMARY RESULTS
Three Months Ended
June 30,
Percent
Inc/(Dec)
2023 vs 2022
($ in millions, except earnings per share or where noted)
2023
2022
Hertz Global – Consolidated
Total revenues
$ 2,437
$ 2,344
4 %
Adjusted net income (loss)(a)
$ 227
$ 520
(56) %
Adjusted diluted earnings (loss) per share(a)
$ 0.72
$ 1.22
(41) %
Adjusted Corporate EBITDA(a)
$ 347
$ 764
(55) %
Adjusted Corporate EBITDA Margin(a)
14 %
33 %
Average Vehicles (in whole units)
561,277
513,307
9 %
Average Rentable Vehicles (in whole units)
533,813
490,236
9 %
Vehicle Utilization
82 %
79 %
Transaction Days (in thousands)
39,705
35,444
12 %
Total RPD (in dollars)(b)
$ 61.14
$ 65.79
(7) %
Total RPU Per Month (in whole dollars)(b)
$ 1,516
$ 1,586
(4) %
Depreciation Per Unit Per Month (in whole dollars)(b)
$ 195
$ 68
NM
Americas RAC Segment
Total revenues
$ 2,015
$ 1,973
2 %
Adjusted EBITDA
$ 331
$ 770
(57) %
Adjusted EBITDA Margin
16 %
39 %
Average Vehicles (in whole units)
457,405
422,113
8 %
Average Rentable Vehicles (in whole units)
431,921
399,588
8 %
Vehicle Utilization
83 %
80 %
Transaction Days (in thousands)
32,469
29,160
11 %
Total RPD (in dollars)(b)
$ 62.03
$ 67.52
(8) %
Total RPU Per Month (in whole dollars)(b)
$ 1,554
$ 1,643
(5) %
Depreciation Per Unit Per Month (in whole dollars)(b)
$ 198
$ 49
NM
International RAC Segment
Total revenues
$ 422
$ 371
14 %
Adjusted EBITDA
$ 96
$ 92
4 %
Adjusted EBITDA Margin
23 %
25 %
Average Vehicles (in whole units)
103,872
91,194
14 %
Average Rentable Vehicles (in whole units)
101,892
90,648
12 %
Vehicle Utilization
78 %
76 %
Transaction Days (in thousands)
7,237
6,284
15 %
Total RPD (in dollars)(b)
$ 57.16
$ 57.77
(1) %
Total RPU Per Month (in whole dollars)(b)
$ 1,353
$ 1,335
1 %
Depreciation Per Unit Per Month (in whole dollars)(b)
$ 180
$ 160
13 %
NM – Not meaningful
(a) Represents a non-GAAP measure. See the accompanying reconciliations included in Supplemental Schedule II.
(b) Based on December 31, 2022 foreign exchange rates.
EARNINGS WEBCAST INFORMATION
Hertz Global’s live webcast and conference call to discuss its second quarter 2023 results will be held on July 27, 2023, at 8:30 a.m. Eastern Time. The conference call will be broadcast live in listen-only mode on the Company’s investor relations website at IR.Hertz.com. If you would like to access the call by phone and ask a question, please go to https://register.vevent.com/register/BI2102718ea246452781a1fcfa0f708a95, and you will be provided with dial in details. Investors are encouraged to dial-in approximately 15 minutes prior to the call. A web replay will remain available on the website for approximately one year. The earnings release and related supplemental schedules containing the reconciliations of non-GAAP measures will be available on the Hertz website, IR.Hertz.com.
UNAUDITED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP MEASURES AND DEFINITIONS
Following is selected financial data of Hertz Global. Also included are Supplemental Schedules, which are provided to present segment results, and reconciliations of non-GAAP measures to their most comparable GAAP measures. Following the Supplemental Schedules, the Company provides definitions for terminology used throughout the earnings release and its view of the usefulness of non-GAAP measures to investors and management.
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation owns and operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit www.hertz.com.
Certain statements contained or incorporated by reference in this release, and in related comments by the Company’s management, include "forward-looking statements." Forward-looking statements include information concerning the Company’s liquidity and its possible or assumed future results of operations, including descriptions of its business strategies. These statements often include words such as "believe," "expect," "project," "potential," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts," "guidance" or similar expressions. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate in these circumstances. The Company believes these judgments are reasonable, but you should understand that these statements are not guarantees of performance or results, and that the Company’s actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative, that may be revised or supplemented in subsequent reports on Form 10-K, 10-Q and 8-K filed or furnished to the SEC.
Important factors that could affect the Company’s actual results and cause them to differ materially from those expressed in forward-looking statements include, among other things:
the Company’s ability to purchase adequate supplies of competitively priced vehicles at a reasonable cost in order to efficiently service rental demand, including as a result of disruptions in the global supply chain;
the Company’s ability to attract and retain effective frontline employees, senior management and other key employees;
levels of travel demand, particularly business and leisure travel in the U.S. and in global markets;
significant changes in the competitive environment and the effect of competition in the Company’s markets on rental volume and pricing;
occurrences that disrupt rental activity during the Company’s peak periods particularly in critical geographies;
the Company’s ability to accurately estimate future levels of rental activity and adjust the number and mix of vehicles used in its rental operations accordingly;
the Company’s ability to implement its business strategy or strategic transactions, including its ability to implement plans to support a large-scale electric vehicle fleet, execute its rideshare strategy and to play a central role in the modern mobility ecosystem;
the Company’s ability to adequately respond to changes in technology impacting the mobility industry;
the mix of vehicles in the Company’s fleet, including but not limited to program and non-program vehicles, which can lead to increased exposure to residual risk upon disposition;
increases in vehicle holding periods, which may result in additional maintenance costs and lower customer satisfaction;
financial instability of the manufacturers of the Company’s vehicles, which could impact their ability to fulfill obligations under repurchase or guaranteed depreciation programs;
increases in the level of recall activity by the manufacturers of the Company’s vehicles, which may increase the Company’s costs and can disrupt its rental activity;
the Company’s access to third-party distribution channels and related prices, commission structures and transaction volumes associated with those channels;
the Company’s ability to offer an excellent customer experience, retain and increase customer loyalty and increase market share;
the Company’s ability to maintain its network of leases and vehicle rental concessions at airports and other key locations in the U.S. and internationally;
the Company’s ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy;
the Company’s ability to effectively manage its union relations and labor agreement negotiations;
the Company’s ability, and that of its key third-party partners, to prevent the misuse or theft of information the Company possesses, including as a result of cyber security breaches and other security threats, as well as to comply with privacy regulations across the globe;
a major disruption in the Company’s communication or centralized information networks or a failure to maintain, upgrade and consolidate its information technology systems;
risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anti-corruption or anti-bribery laws and the Company’s ability to repatriate cash from non-U.S. affiliates without adverse tax consequences;
risks relating to tax laws, including those that affect the Company’s ability to offset future tax on fleet dispositions, as well as any adverse determinations or rulings by tax authorities;
the Company’s ability to utilize its net operating loss carryforwards;
the Company’s exposure to uninsured liabilities relating to personal injury, death and property damage, or otherwise;
changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, including those related to accounting principles, that affect the Company’s operations, its costs or applicable tax rates;
the recoverability of the Company’s goodwill and indefinite-lived intangible assets when performing impairment analysis;
costs and risks associated with potential litigation and investigations, compliance with and changes in laws and regulations and potential exposures under environmental laws and regulations;
the Company’s ability to comply with ESG regulations, meet increasing ESG expectations of stakeholders, and otherwise achieve ESG goals;
the availability of additional or continued sources of financing at acceptable rates for the Company’s revenue earning vehicles and to refinance its existing indebtedness;
volatility in the Company’s stock price and certain provisions of its charter documents which could negatively affect the market price of the Company’s common stock;
the Company’s ability to effectively maintain effective internal controls over financial reporting; and
the Company’s ability to implement an effective business continuity plan to protect the business in exigent circumstances.
Additional information concerning these and other factors can be found in the Company’s filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date of this release, and, except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
UNAUDITED FINANCIAL INFORMATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions, except per share data)
2023
2022
2023
2022
Revenues
$ 2,437
$ 2,344
$ 4,484
$ 4,154
Expenses:
Direct vehicle and operating
1,347
1,199
2,568
2,252
Depreciation of revenue earning vehicles and lease charges, net
329
106
710
47
Depreciation and amortization of non-vehicle assets
32
36
67
69
Selling, general and administrative
285
257
506
492
Interest expense, net:
Vehicle
132
45
243
50
Non-vehicle
56
41
107
80
Total interest expense, net
188
86
350
130
Other (income) expense, net
(2)
2
7
—
(Gain) on sale of non-vehicle capital assets
—
—
(162)
—
Change in fair value of Public Warrants
100
(461)
218
(511)
Total expenses
2,279
1,225
4,264
2,479
Income (loss) before income taxes
158
1,119
220
1,675
Income tax (provision) benefit
(19)
(179)
115
(309)
Net income (loss)
$ 139
$ 940
335
1,366
Weighted average number of shares outstanding:
Basic
314
398
318
415
Diluted
315
424
319
443
Earnings (loss) per share:
Basic
$ 0.44
$ 2.36
$ 1.06
$ 3.29
Diluted
$ 0.44
$ 1.13
$ 1.05
$ 1.93
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In millions, except par value and share data)
June 30, 2023
December 31,
2022
ASSETS
Cash and cash equivalents
$ 682
$ 943
Restricted cash and cash equivalents:
Vehicle
190
180
Non-vehicle
294
295
Total restricted cash and cash equivalents
484
475
Total cash and cash equivalents and restricted cash and cash equivalents
1,166
1,418
Receivables:
Vehicle
132
111
Non-vehicle, net of allowance of $39 and $45, respectively
1,160
863
Total receivables, net
1,292
974
Prepaid expenses and other assets
1,031
1,155
Revenue earning vehicles:
Vehicles
17,833
14,281
Less: accumulated depreciation
(1,988)
(1,786)
Total revenue earning vehicles, net
15,845
12,495
Property and equipment, net
665
637
Operating lease right-of-use assets
2,169
1,887
Intangible assets, net
2,883
2,887
Goodwill
1,044
1,044
Total assets
$ 26,095
$ 22,497
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable:
Vehicle
$ 358
$ 79
Non-vehicle
577
578
Total accounts payable
935
657
Accrued liabilities
971
911
Accrued taxes, net
229
170
Debt:
Vehicle
13,100
10,886
Non-vehicle
3,470
2,977
Total debt
16,570
13,863
Public Warrants
835
617
Operating lease liabilities
2,072
1,802
Self-insured liabilities
451
472
Deferred income taxes, net
1,193
1,360
Total liabilities
23,256
19,852
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, no shares issued and outstanding
—
—
Common stock, $0.01 par value, 479,126,125 and 478,914,062 shares issued, respectively,
and 311,692,986 and 323,483,178 shares outstanding, respectively
5
5
Treasury stock, at cost, 167,433,139 and 155,430,884 common shares, respectively
(3,338)
(3,136)
Additional paid-in capital
6,369
6,326
Retained earnings (Accumulated deficit)
79
(256)
Accumulated other comprehensive income (loss)
(276)
(294)
Total stockholders’ equity
2,839
2,645
Total liabilities and stockholders’ equity
$ 26,095
$ 22,497
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)
2023
2022
2023
2022
Cash flows from operating activities:
Net income (loss)
$ 139
$ 940
$ 335
$ 1,366
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and reserves for revenue earning vehicles, net
418
165
884
145
Depreciation and amortization, non-vehicle
32
36
67
69
Amortization of deferred financing costs and debt discount (premium)
15
14
29
25
Stock-based compensation charges
22
36
43
64
Provision for receivables allowance
20
10
40
23
Deferred income taxes, net
(28)
146
(163)
249
(Gain) loss on sale of non-vehicle capital assets
(3)
(1)
(165)
(3)
Change in fair value of Public Warrants
100
(461)
218
(511)
Changes in financial instruments
(2)
(21)
106
(65)
Other
5
(1)
5
—
Changes in assets and liabilities:
Non-vehicle receivables
(284)
(157)
(334)
(200)
Prepaid expenses and other assets
(50)
(47)
(98)
(87)
Operating lease right-of-use assets
87
7
165
79
Non-vehicle accounts payable
33
(83)
6
(32)
Accrued liabilities
39
109
68
233
Accrued taxes, net
55
22
56
52
Operating lease liabilities
(94)
(13)
(178)
(93)
Self-insured liabilities
(7)
7
(25)
15
Net cash provided by (used in) operating activities
497
708
1,059
1,329
Cash flows from investing activities:
Revenue earning vehicles expenditures
(3,719)
(3,104)
(6,543)
(6,089)
Proceeds from disposal of revenue earning vehicles
1,560
1,416
2,766
2,887
Non-vehicle capital asset expenditures
(78)
(29)
(123)
(59)
Proceeds from non-vehicle capital assets disposed of
1
5
176
6
Collateral returned in exchange for letters of credit
—
2
—
19
Return of (investment in) equity investments
(1)
—
(1)
(15)
Net cash provided by (used in) investing activities
(2,237)
(1,710)
(3,725)
(3,251)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt
1,960
2,699
4,021
7,379
Repayments of vehicle debt
(682)
(1,332)
(1,872)
(4,824)
Proceeds from issuance of non-vehicle debt
825
—
1,250
—
Repayments of non-vehicle debt
(329)
(5)
(759)
(10)
Payment of financing costs
(9)
(14)
(17)
(38)
Proceeds from exercises of Public Warrants
—
—
—
3
Share repurchases
(104)
(881)
(222)
(1,647)
Other
1
—
—
(4)
Net cash provided by (used in) financing activities
1,662
467
2,401
859
Effect of foreign currency exchange rate changes on cash and cash
equivalents and restricted cash and cash equivalents
2
(24)
13
(25)
Net increase (decrease) in cash and cash equivalents and restricted cash and
cash equivalents during the period
(76)
(559)
(252)
(1,088)
Cash and cash equivalents and restricted cash and cash equivalents at
beginning of period
1,242
2,122
1,418
2,651
Cash and cash equivalents and restricted cash and cash equivalents at end
of period
$ 1,166
$ 1,563
$ 1,166
$ 1,563
Supplemental Schedule I
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
Three Months Ended June 30, 2023
Three Months Ended June 30, 2022
(In millions)
Americas
RAC
International RAC
Corporate
Hertz
Global
Americas
RAC
International RAC
Corporate
Hertz
Global
Revenues
$ 2,015
$ 422
$ —
$ 2,437
$ 1,973
$ 371
$ —
$ 2,344
Expenses:
Direct vehicle and operating
1,139
211
(3)
1,347
1,002
197
—
1,199
Depreciation of revenue earning vehicles and lease charges, net
272
57
—
329
61
45
—
106
Depreciation and amortization of non-vehicle assets
27
3
2
32
30
4
2
36
Selling, general and administrative
148
45
92
285
99
47
111
257
Interest expense, net:
Vehicle
113
19
—
132
35
10
—
45
Non-vehicle
(4)
(5)
65
56
(13)
—
54
41
Total interest expense, net
109
14
65
188
22
10
54
86
Other (income) expense, net
—
(4)
2
(2)
(1)
(4)
7
2
Change in fair value of Public Warrants
—
—
100
100
—
—
(461)
(461)
Total expenses
1,695
326
258
2,279
1,213
299
(287)
1,225
Income (loss) before income taxes
$ 320
$ 96
$ (258)
158
$ 760
$ 72
$ 287
1,119
Income tax (provision) benefit
(19)
(179)
Net income (loss)
$ 139
$ 940
Supplemental Schedule I (continued)
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
Six Months Ended June 30, 2023
Six Months Ended June 30, 2022
(In millions)
Americas
RAC
International RAC
Corporate
Hertz
Global
Americas
RAC
International RAC
Corporate
Hertz
Global
Revenues
$ 3,745
$ 739
$ —
$ 4,484
$ 3,531
$ 623
$ —
$ 4,154
Expenses:
Direct vehicle and operating
2,178
393
(3)
2,568
1,905
348
(1)
2,252
Depreciation of revenue earning vehicles and lease charges, net
621
89
—
710
(32)
79
—
47
Depreciation and amortization of non-vehicle assets
55
5
7
67
56
7
6
69
Selling, general and administrative
253
82
171
506
185
89
218
492
Interest expense, net:
Vehicle
206
37
—
243
37
13
—
50
Non-vehicle
(22)
(7)
136
107
(21)
—
101
80
Total interest expense, net
184
30
136
350
16
13
101
130
Other (income) expense, net
(1)
2
6
7
(2)
(7)
9
—
(Gain) on sale of non-vehicle capital assets
(162)
—
—
(162)
—
—
—
—
Change in fair value of Public Warrants
—
—
218
218
—
—
(511)
(511)
Total expenses
3,128
601
535
4,264
2,128
529
(178)
2,479
Income (loss) before income taxes
$ 617
$ 138
$ (535)
220
$ 1,403
$ 94
$ 178
1,675
Income tax (provision) benefit
115
(309)
Net income (loss)
$ 335
$ 1,366
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)
2023
2022
2023
2022
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share:
Net income (loss)
$ 139
$ 940
$ 335
$ 1,366
Adjustments:
Income tax provision (benefit)
19
179
(115)
309
Vehicle and non-vehicle debt-related charges(a)(k)
15
14
29
26
Restructuring and restructuring related charges(b)
5
15
8
21
Acquisition accounting-related depreciation and amortization(c)
1
—
1
1
Unrealized (gains) losses on financial instruments(d)
(2)
(21)
106
(65)
(Gain) on sale of non-vehicle capital assets(e)
—
—
(162)
—
Change in fair value of Public Warrants
100
(461)
218
(511)
Other items(f)(l)
(10)
27
4
83
Adjusted pre-tax income (loss)(g)
267
693
424
1,230
Income tax (provision) benefit on adjusted pre-tax income (loss)(h)
(40)
(173)
(64)
(307)
Adjusted Net Income (Loss)
$ 227
$ 520
$ 360
$ 923
Weighted-average number of diluted shares outstanding
315
424
319
443
Adjusted Diluted Earnings (Loss) Per Share(i)
$ 0.72
$ 1.22
$ 1.13
$ 2.08
Adjusted Corporate EBITDA:
Net income (loss)
$ 139
$ 940
$ 335
$ 1,366
Adjustments:
Income tax provision (benefit)
19
179
(115)
309
Non-vehicle depreciation and amortization(j)
32
36
67
69
Non-vehicle debt interest, net of interest income
56
41
107
80
Vehicle debt-related charges(a)(k)
10
9
20
16
Restructuring and restructuring related charges(b)
5
15
8
21
Unrealized (gains) losses on financial instruments(d)
(2)
(21)
106
(65)
(Gain) on sale of non-vehicle capital assets(e)
—
—
(162)
—
Change in fair value of Public Warrants
100
(461)
218
(511)
Other items(f)(m)
(12)
26
—
93
Adjusted Corporate EBITDA
$ 347
$ 764
$ 584
$ 1,378
(a)
Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.
(b)
Represents charges incurred under restructuring actions as defined in U.S. GAAP. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. For 2023, charges incurred related primarily to International RAC and Corporate. For 2022, charges incurred related primarily to International RAC.
(c)
Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.
Supplemental Schedule II (continued)
(d)
Represents unrealized gains (losses) on derivative financial instruments, primarily associated with Americas RAC. In the six months ended June 30, 2023, also includes the realization of $88 million of previously unrealized gains resulting from the unwind of certain interest rate caps in Americas RAC.
(e)
Represents gain on the sale of certain non-vehicle capital assets sold in March 2023 in Americas RAC.
(f)
Represents miscellaneous items. For 2023, primarily includes a loss recovery settlement in Americas RAC, partially offset by certain IT related charges primarily in Corporate. For 2022, primarily includes bankruptcy claims, certain professional fees and charges related to the settlement of bankruptcy claims.
(g)
Adjustments by caption on a pre-tax basis were as follows:
Increase (decrease) to expenses
Three Months Ended June 30,
Six Months Ended June 30,
(In millions)
2023
2022
2023
2022
Direct vehicle and operating
$ 17
$ (19)
$ 17
$ (21)
Depreciation of revenue earning vehicles and lease charges, net
—
—
2
—
Selling, general and administrative
(13)
(6)
(27)
(11)
Interest expense, net:
Vehicle
(3)
(9)
(122)
(16)
Non-vehicle
(9)
(8)
(17)
(14)
Total interest expense, net
(12)
(17)
(139)
(30)
Other income (expense), net
(1)
7
(1)
(4)
Gain on sale non-vehicle capital assets
—
—
162
—
Change in fair value of Public Warrants
(100)
461
(218)
511
Total adjustments
$ (109)
$ 426
$ (204)
$ 445
(h)
Derived utilizing a combined statutory rate of 15% for the three and six months ended June 30, 2023 and 25% for the three and six months ended June 30, 2022 applied to the respective Adjusted Pre-tax Income (Loss). The decrease in rate is primarily resulting from EV-related tax credits anticipated to be used to decrease the Company’s U.S. federal tax provision throughout 2023 based on the Company’s expected purchases of electric vehicles.
(i)
Adjustments used to reconcile diluted earnings (loss) per share on a GAAP basis to Adjusted Diluted Earnings (Loss) Per Share are comprised of the same adjustments, inclusive of the tax impact, used to reconcile net income (loss) to Adjusted Net Income (Loss) divided by the weighted-average diluted shares outstanding during the period.
(j)
Non-vehicle depreciation and amortization expense for Americas RAC, International RAC and Corporate for the three months ended June 30, 2023 was $27 million, $3 million and $2 million, respectively. For the three months ended June 30, 2022 was $30 million, $4 million, and $2 million for Americas RAC, International RAC and Corporate, respectively. Non-vehicle depreciation and amortization expense for Americas RAC, International RAC and Corporate for the six months ended June 30, 2023 was $55 million, $5 million and $7 million, respectively. For the six months ended June 30, 2022 was $56 million, $7 million and $6 million for Americas RAC, International RAC and Corporate, respectively
(k)
Vehicle debt-related charges for Americas RAC and International RAC for the three months ended June 30, 2023 were $9 million and $1 million, respectively, and were $3 million and $6 million, respectively, for the three months ended June 30, 2022. Vehicle debt-related charges for Americas RAC and International RAC for the six months ended June 30, 2023 were $17 million and $3 million, respectively, and were $9 million and $7 million, respectively, for the six months ended June 30, 2022.
(l)
Also includes letter of credit fees recorded primarily in Corporate.
(m)
In 2022, also includes an adjustment for certain non-cash stock-based compensation charges recorded in Corporate.
Supplemental Schedule III
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE – ADJUSTED OPERATING CASH FLOW
AND ADJUSTED FREE CASH FLOW
Unaudited
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)
2023
2022
2023
2022
ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW:
Net cash provided by (used in) operating activities
$ 497
$ 708
$ 1,059
$ 1,329
Depreciation and reserves for revenue earning vehicles, net
(418)
(165)
(884)
(145)
Bankruptcy related payments (post emergence) and other payments
12
42
20
78
Adjusted operating cash flow
91
585
195
1,262
Non-vehicle capital asset proceeds (expenditures), net
(77)
(24)
53
(53)
Adjusted operating cash flow before vehicle investment
14
561
248
1,209
Net fleet growth after financing
(437)
(77)
(754)
(646)
Adjusted free cash flow
$ (423)
$ 484
$ (506)
$ 563
CALCULATION OF NET FLEET GROWTH AFTER FINANCING:
Revenue earning vehicles expenditures
$ (3,719)
$ (3,104)
$ (6,543)
$ (6,089)
Proceeds from disposal of revenue earning vehicles
1,560
1,416
2,766
2,887
Revenue earning vehicles capital expenditures, net
(2,159)
(1,688)
(3,777)
(3,202)
Depreciation and reserves for revenue earning vehicles, net
418
165
884
145
Financing activity related to vehicles:
Borrowings
1,960
2,699
4,021
7,379
Payments
(682)
(1,332)
(1,872)
(4,824)
Restricted cash changes, vehicle
26
79
(10)
(144)
Net financing activity related to vehicles
1,304
1,446
2,139
2,411
Net fleet growth after financing
$ (437)
$ (77)
$ (754)
$ (646)
Supplemental Schedule IV
HERTZ GLOBAL HOLDINGS, INC.
NET DEBT CALCULATION
Unaudited
As of June 30, 2023
As of December 31, 2022
(In millions)
Vehicle
Non-Vehicle
Total
Vehicle
Non-Vehicle
Total
Term loans
$ —
$ 1,519
$ 1,519
$ —
$ 1,526
$ 1,526
First Lien RCF
—
500
500
—
—
—
Senior notes
—
1,500
1,500
—
1,500
1,500
U.S. vehicle financing (HVF III)
11,095
—
11,095
9,406
—
9,406
International vehicle financing (Various)
1,982
—
1,982
1,466
—
1,466
Other debt
80
4
84
76
9
85
Debt issue costs, discounts and premiums
(57)
(53)
(110)
(62)
(58)
(120)
Debt as reported in the balance sheet
13,100
3,470
16,570
10,886
2,977
13,863
Add:
Debt issue costs, discounts and premiums
57
53
110
62
58
120
Less:
Cash and cash equivalents
—
682
682
—
943
943
Restricted cash
190
—
190
180
—
180
Restricted cash and restricted cash equivalents associated with Term C Loan
—
245
245
—
245
245
Net Debt
$ 12,967
$ 2,596
$ 15,563
$ 10,768
$ 1,847
$ 12,615
Corporate leverage ratio(a)
1.7x
0.8x
(a) Corporate leverage ratio is calculated as non-vehicle net debt divided by LTM Adjusted Corporate EBITDA.
Supplemental Schedule V
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
Global RAC
Three Months Ended
June 30,
Percent
Inc/(Dec)
Six Months Ended
June 30,
Percent
Inc/(Dec)
($ in millions, except where noted)
2023
2022
2023
2022
Total RPD
Revenues
$ 2,437
$ 2,344
$ 4,484
$ 4,154
Foreign currency adjustment(a)
(9)
(12)
(13)
(29)
Total Revenues – adjusted for foreign currency
$ 2,428
$ 2,332
$ 4,471
$ 4,125
Transaction Days (in thousands)
39,705
35,444
73,493
66,065
Total RPD (in dollars)
$ 61.14
$ 65.79
(7) %
$ 60.84
$ 62.43
(3) %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency
$ 2,428
$ 2,332
$ 4,471
$ 4,125
Average Rentable Vehicles (in whole units)
533,813
490,236
508,550
472,871
Total revenue per unit (in whole dollars)
$ 4,548
$ 4,757
$ 8,792
$ 8,722
Number of months in period (in whole units)
3
3
6
6
Total RPU Per Month (in whole dollars)
$ 1,516
$ 1,586
(4) %
$ 1,465
$ 1,454
1 %
Vehicle Utilization
Transaction Days (in thousands)
39,705
35,444
73,493
66,065
Average Rentable Vehicles (in whole units)
533,813
490,236
508,550
472,871
Number of days in period (in whole units)
91
91
181
181
Available Car Days (in thousands)
48,576
44,615
92,079
85,616
Vehicle Utilization(b)
82 %
79 %
80 %
77 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges,
net
$ 329
$ 106
$ 710
$ 47
Foreign currency adjustment(a)
(1)
(1)
(1)
(3)
Adjusted depreciation of revenue earning vehicles and lease
charges
$ 328
$ 105
$ 709
$ 44
Average Vehicles (in whole units)
561,277
513,307
532,903
497,259
Adjusted depreciation of revenue earning vehicles and lease
charges divided by Average Vehicles (in whole dollars)
$ 584
$ 205
$ 1,331
$ 89
Number of months in period (in whole units)
3
3
6
6
Depreciation Per Unit Per Month (in whole dollars)
$ 195
$ 68
NM
$ 222
$ 15
NM
Note: Global RAC represents Americas RAC and International RAC segment information on a combined basis and excludes Corporate
NM – Not meaningful
(a) Based on December 31, 2022 foreign exchange rates.
(b) Calculated as Transaction Days divided by Available Car Days.
Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
Americas RAC
Three Months Ended
June 30,
Percent
Inc/(Dec)
Six Months Ended
June 30,
Percent
Inc/(Dec)
($ in millions, except where noted)
2023
2022
2023
2022
Total RPD
Revenues
$ 2,015
$ 1,973
$ 3,745
$ 3,531
Foreign currency adjustment(a)
(1)
(4)
(2)
(7)
Total Revenues – adjusted for foreign currency
$ 2,014
$ 1,969
$ 3,743
$ 3,524
Transaction Days (in thousands)
32,469
29,160
60,348
54,739
Total RPD (in dollars)
$ 62.03
$ 67.52
(8) %
$ 62.03
$ 64.39
(4) %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency
$ 2,014
$ 1,969
$ 3,743
$ 3,524
Average Rentable Vehicles (in whole units)
431,921
399,588
412,717
386,363
Total revenue per unit (in whole dollars)
$ 4,663
$ 4,928
$ 9,070
$ 9,122
Number of months in period (in whole units)
3
3
6
6
Total RPU Per Month (in whole dollars)
$ 1,554
$ 1,643
(5) %
$ 1,512
$ 1,520
(1) %
Vehicle Utilization
Transaction Days (in thousands)
32,469
29,160
60,348
54,739
Average Rentable Vehicles (in whole units)
431,921
399,588
412,717
386,363
Number of days in period (in whole units)
91
91
181
181
Available Car Days (in thousands)
39,304
36,366
74,725
69,952
Vehicle Utilization(b)
83 %
80 %
81 %
78 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges,
net
$ 272
$ 61
$ 621
$ (32)
Foreign currency adjustment(a)
—
1
1
—
Adjusted depreciation of revenue earning vehicles and
lease charges
$ 272
$ 62
$ 622
$ (32)
Average Vehicles (in whole units)
457,405
422,113
435,194
409,867
Adjusted depreciation of revenue earning vehicles and
lease charges divided by Average Vehicles (in whole dollars)
$ 595
$ 146
$ 1,429
$ (77)
Number of months in period (in whole units)
3
3
6
6
Depreciation Per Unit Per Month (in whole dollars)
$ 198
$ 49
NM
$ 238
$ (13)
NM
NM – Not meaningful
(a) Based on December 31, 2022 foreign exchange rates.
(b) Calculated as Transaction Days divided by Available Car Days.
Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
International RAC
Three Months Ended
June 30,
Percent
Inc/(Dec)
Six Months Ended
June 30,
Percent
Inc/(Dec)
($ in millions, except where noted)
2023
2022
2023
2022
Total RPD
Revenues
$ 422
$ 371
$ 739
$ 623
Foreign currency adjustment(a)
(8)
(8)
(11)
(23)
Total Revenues – adjusted for foreign currency
$ 414
$ 363
$ 728
$ 600
Transaction Days (in thousands)
7,237
6,284
13,145
11,326
Total RPD (in dollars)
$ 57.16
$ 57.77
(1) %
$ 55.37
$ 52.98
5 %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency
$ 414
$ 363
$ 728
$ 600
Average Rentable Vehicles (in whole units)
101,892
90,648
95,834
86,508
Total revenue per unit (in whole dollars)
$ 4,060
$ 4,005
$ 7,595
$ 6,936
Number of months in period (in whole units)
3
3
6
6
Total RPU Per Month (in whole dollars)
$ 1,353
$ 1,335
1 %
$ 1,266
$ 1,156
10 %
Vehicle Utilization
Transaction Days (in thousands)
7,237
6,284
13,145
11,326
Average Rentable Vehicles (in whole units)
101,892
90,648
95,834
86,508
Number of days in period (in whole units)
91
91
181
181
Available Car Days (in thousands)
9,271
8,248
17,354
15,664
Vehicle Utilization (b)
78 %
76 %
76 %
72 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges,
net
$ 57
$ 45
$ 89
$ 79
Foreign currency adjustment(a)
(1)
(1)
(2)
(3)
Adjusted depreciation of revenue earning vehicles and lease
charges
$ 56
$ 44
$ 87
$ 76
Average Vehicles (in whole units)
103,872
91,194
97,709
87,392
Adjusted depreciation of revenue earning vehicles and lease
charges divided by Average Vehicles (in whole dollars)
$ 539
$ 479
$ 895
$ 869
Number of months in period (in whole units)
3
3
6
6
Depreciation Per Unit Per Month (in whole dollars)
$ 180
$ 160
13 %
$ 149
$ 145
3 %
(a) Based on December 31, 2022 foreign exchange rates.
(b) Calculated as Transaction Days divided by Available Car Days.
NON-GAAP MEASURES AND KEY METRICS
The term "GAAP" refers to accounting principles generally accepted in the United States. Adjusted EBITDA is the Company’s segment measure of profitability and complies with GAAP when used in that context.
NON-GAAP MEASURES
Non-GAAP measures are not recognized measurements under GAAP. When evaluating the Company’s operating performance or liquidity, investors should not consider non-GAAP measures in isolation of, superior to, or as a substitute for measures of the Company’s financial performance as determined in accordance with GAAP.
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share ("Adjusted EPS")
Adjusted Net Income (Loss) represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; vehicle and non-vehicle debt-related charges; restructuring and restructuring related charges; acquisition accounting-related depreciation and amortization; change in fair value of Public Warrants; unrealized (gains) losses on financial instruments, gain on sale of non-vehicle capital assets and certain other miscellaneous items on a pre-tax basis. Adjusted Net Income (Loss) includes a provision (benefit) for income taxes derived utilizing a combined statutory rate. The combined statutory rate is management’s estimate of the Company’s long-term tax rate. Its most comparable GAAP measure is net income (loss) attributable to the Company.
Adjusted EPS represents Adjusted Net Income (Loss) on a per diluted share basis using the weighted-average number of diluted shares outstanding for the period. Its most comparable GAAP measure is diluted earnings (loss) per share.
Adjusted Net Income (Loss) and Adjusted EPS are important operating metrics because they allow management and investors to assess operational performance of the Company’s business, exclusive of the items mentioned above that are not operational in nature or comparable to those of the Company’s competitors.
Adjusted Corporate EBITDA and Adjusted Corporate EBITDA Margin
Adjusted Corporate EBITDA represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; non-vehicle depreciation and amortization; non-vehicle debt interest, net; vehicle debt-related charges; restructuring and restructuring related charges; change in fair value of Public Warrants; unrealized (gains) losses on financial instruments; gain on sale of non-vehicle capital assets and certain other miscellaneous items.
Adjusted Corporate EBITDA Margin is calculated as the ratio of Adjusted Corporate EBITDA to total revenues.
Management uses these measures as operating performance metrics for internal monitoring and planning purposes, including the preparation of the Company’s annual operating budget and monthly operating reviews, and analysis of investment decisions, profitability and performance trends. These measures enable management and investors to isolate the effects on profitability of operating metrics most meaningful to the business of renting and leasing vehicles. They also allow management and investors to assess the performance of the entire business on the same basis as its reportable segments. Adjusted Corporate EBITDA is also utilized in the determination of certain executive compensation. Its most comparable GAAP measure is net income (loss) attributable to the Company.
Adjusted operating cash flow and adjusted free cash flow
Adjusted operating cash flow represents net cash provided by operating activities net of the non-cash add back for vehicle depreciation and reserves, and exclusive of bankruptcy related payments made post emergence. Adjusted operating cash flow is important to management and investors as it provides useful information about the amount of cash generated from operations when fully burdened by fleet costs.
Adjusted free cash flow represents adjusted operating cash flow plus the impact of net non-vehicle capital expenditures and net fleet growth after financing. Adjusted free cash flow is important to management and investors as it provides useful information about the amount of cash available for, but not limited to, the reduction of non-vehicle debt, share repurchase and acquisition.
The most comparable GAAP measure for adjusted operating cash flow and adjusted free cash flow is net cash provided by (used in) operating activities.
KEY METRICS
Available Rental Car Days
Available Rental Car Days represents Average Rentable Vehicles multiplied by the number of days in a given period.
Average Vehicles ("Fleet Capacity" or "Capacity")
Average Vehicles is determined using a simple average of the number of vehicles in the fleet whether owned or leased by the Company at the beginning and end of a given period.
Average Rentable Vehicles
Average Rentable Vehicles reflects Average Vehicles excluding vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.
Depreciation Per Unit Per Month ("Depreciation Per Unit" or "DPU")
Depreciation Per Unit Per Month represents the amount of average depreciation expense and lease charges per vehicle per month, exclusive of the impacts of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it reflects how effectively the Company is managing the costs of its vehicles and facilitates comparisons with other participants in the vehicle rental industry.
Total Revenue Per Transaction Day ("Total RPD"or "RPD"; also referred to as "pricing")
Total RPD represents revenue generated per transaction day, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it represents a measure of changes in the underlying pricing in the vehicle rental business and encompasses the elements in vehicle rental pricing that management has the ability to control.
Total Revenue Per Unit Per Month ("Total RPU", "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.
Kelly Galloway appointed to Chief Accounting Officer
ESTERO, Fla., July 26, 2023 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) today announced that Alexandra Brooks, the company’s interim Chief Financial Officer since April 2023 and Chief Accounting Officer since 2020, has been named Executive Vice President and Chief Financial Officer, effective immediately. In addition, Kelly Galloway, Senior Vice President and Controller, is appointed Chief Accounting Officer.
Alex Brooks, Hertz Executive Vice President and Chief Financial Officer
"In her role as Chief Accounting Officer and, more recently, Interim Chief Financial Officer, Alex has demonstrated the financial acumen, leadership skills and deep grounding in the Hertz business necessary to help lead an era of transformation at Hertz," said Stephen Scherr, Chair and Chief Executive Officer of Hertz.
"Hertz is an iconic brand with a proud history and an exciting future. I am keen to work closely with Stephen and the talented Hertz team to deliver on our strategic initiatives and drive profitable growth," said Brooks.
"These promotions demonstrate the depth of talent at Hertz and I look forward to working with Alex and Kelly in their new roles," said Scherr.
Alexandra Brooks, a Certified Public Accountant (CPA), previously served as Interim Chief Financial Officer, Chief Accounting Officer and Senior Vice President, Internal Audit at Hertz. Prior to joining Hertz, Ms. Brooks was Vice President, Internal Audit at Aptiv PLC, the Chief Financial Officer for Champion Windows and Home Exteriors, and held a variety of leadership roles at the General Electric Company and the General Motors Company and began her career with PricewaterhouseCoopers.
Kelly Galloway, also a CPA, has held roles of increasing responsibility in finance and accounting with Hertz for nine years, including most recently as Senior Vice President and Controller since August 2020. She began her career with PricewaterhouseCoopers.
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.
ESTERO, Fla., July 19, 2023 /PRNewswire/ — Hertz is giving Americans the opportunity to experience an electric vehicle by hosting one of the largest-ever EV test drives in the country. Today, Hertz customers and rideshare drivers will have the chance to test drive an EV at the Hertz location at Los Angeles International Airport (LAX), and to see the newest EV models showcased by Tesla, Chevrolet, Polestar and Kia.
Today Hertz kicked off one of the country’s largest Electric Vehicle test drives at the company’s LAX location. Drivers had the chance to test drive an EV and see the newest EV models showcased by Tesla, General Motors, Polestar and Kia. Additional in-person test drives are being planned at Hertz locations across the U.S. later this year.
Today Hertz kicked off one of the country’s largest Electric Vehicle test drives at the company’s LAX location. Drivers had the chance to test drive an EV and see the newest EV models showcased by Tesla, General Motors, Polestar and Kia. Additional in-person test drives are being planned at Hertz locations across the U.S. later this year.
For those who can’t make it to the event at LAX, Hertz is offering a nationwide Hertz Let’s Go Electric promotion that provides customers with one rental day free when they rent an electric vehicle for two or more days now through Labor Day*. Additional in-person test drives are being planned at Hertz locations across the U.S. later this year.
"We are thrilled to offer our customers a range of rental vehicles at a variety of price points, including this exciting next generation of automotive technology," said Laura Smith, Hertz Executive Vice President of Global Sales and Customer Experience. "For customers who are curious about electric vehicles, there’s no better way to experience one than with a test drive at Hertz, which has the largest rental fleet of EVs in the U.S."
Hertz has tens of thousands of EVs available for rent at more than 2,000 locations across 44 states. In addition to leisure and business travelers, Hertz also rents EVs to rideshare drivers through a partnership with Uber. Nearly 50,000 drivers on the Uber platform have rented electric vehicles from Hertz so far.
To help customers feel comfortable and confident on the road, Hertz provides a variety of digital resources and in-person guidance on how to rent, charge and operate an EV. To learn more about driving an EV and where to rent one at Hertz, visit Hertz.com/EV. For more details about the Hertz Let’s Go Electric promotion, visit: Hertz.com/LetsGoEV.
*Rent for 2 days, pay for 1 less. Discount applies to base rate only. Taxes, fees and options are excluded. Terms and exclusions apply.
About Hertz Hertz, one of the most recognized brands in the world, has a long-standing legacy of providing a fast and easy experience designed to make every journey special. It starts with top-rated vehicles to fit every traveler’s needs, delivered with a caring touch and personalized services including its award-winning Hertz Gold Plus Rewards loyalty program, Ultimate Choice, Hertz app, and more. To learn more or to reserve a vehicle at an airport or a convenient neighborhood Hertz location, visit Hertz.com.
Hertz pioneered the car rental industry more than 100 years ago and today is owned by Hertz Global Holdings, Inc. which includes Dollar and Thrifty vehicle rental brands.
ESTERO, Fla., July 5, 2023 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) (the "Company") announced today that it plans to report its second quarter 2023 financial results at approximately 7:30 a.m. ET on Thursday, July 27, 2023 followed by an earnings call at 8:30 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 2023 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 approximately 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.
Hertz extends its partnership with the seven-time Super Bowl champion through 2024
ESTERO, Fla., May 22, 2023 /PRNewswire/ — Tom Brady is holding nothing back from the cameras while appearing on the "Hertz. Let’s Go Show," which is hosted by actress and comedian Yvonne Orji and is the fictional daytime talk show premise for the latest series of new digital ads debuting today as part of the Hertz. Let’s Go! campaign. During an "exclusive" interview with Orji, Brady hilariously reveals his deep affinity for Hertz.
Tom Brady Reveals All in “Electrifying” New Hertz Ads Featuring Yvonne Orji.
In the campaign’s hero spot, the five-time Super Bowl MVP finds himself baring his soul to Orji on the show, ultimately winning a ‘Let’s Go moment’ in a Hertz electric vehicle (EV) rental. Brady and Orji recreate multiple iconic daytime talk show moments in the new series while highlighting Hertz’s diverse vehicle options – including its growing EV fleet – Hertz Gold Plus Rewards loyalty program, partnerships, global footprint and more.
"The Hertz. Let’s Go! campaign has effectively shined a spotlight on our fast and seamless service, and innovative vehicle offerings, including our EV rentals," said Wayne Davis, Hertz’s chief marketing officer. "Tom Brady has been such an authentic and enthusiastic partner for Hertz and this campaign, that we mutually decided to extend our partnership through 2024. We can’t wait for people to engage with the next phase of the campaign as Tom and Yvonne bring their talent and humor to showcase the many elements that make renting from Hertz a great way to travel and create memories."
Brady and Hertz first teamed up in October 2021 as the company announced its industry-leading investment in EVs, and have released several ads over the past three years using topical humor to highlight Hertz’s diverse and unique vehicle offerings and customer service. Brady is once again along for the ride with Hertz as it expands its electric vehicle offerings through large-scale purchases with Tesla, Polestar and General Motors that enable the brand to offer a variety of EVs at a range of price points.
"I appreciate my close collaboration with Hertz because it truly is so natural and authentic to me," said Brady. "There is such a true connection to ‘Let’s Go’ as it relates to travel and the desire to have a seamless experience which Hertz always provides. Being an EV driver, I also love that more people across the country will have the opportunity to experience Hertz’s EV rental fleet. I’ve been driving one for a long time and seeing Hertz continue to invest in them is amazing."
According to Orji, joining the campaign was a no-brainer as she’s a longtime Hertz customer and true believer in the ‘Let’s Go’ mantra as well.
"I love a good ‘Let’s Go moment’ because I never like to feel restricted or live with the restraints of when and how you can take a break," said Orji. "I let my body decide when it’s time to tap out and then I hit the open road."
The ads will be featured on premium streaming networks – Hulu, Disney, HBO Max, Peacock, Warner Bros. and Discovery – YouTube and across Facebook, Instagram, and TikTok with accompanying audio ads on Pandora. The hero spot can be viewed here on YouTube.
ABOUT HERTZ
Hertz, one of the most recognized brands in the world, has a long-standing legacy of providing a fast and easy experience designed to make every journey special. It starts with top-rated vehicles to fit every traveler’s needs, delivered with a caring touch and personalized services including its award-winning Hertz Gold Plus Rewards loyalty program, Ultimate Choice, Hertz app, and more. To learn more or to reserve a vehicle at an airport or a convenient neighborhood Hertz location, visit Hertz.com.
Hertz pioneered the car rental industry more than 100 years ago and today is owned by Hertz Global Holdings, Inc. which includes Dollar and Thrifty vehicle rental brands.
