ESTERO, Fla., Oct. 20, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK: HTZZ; OTCPK: HTZZW) (the "Company") announced today that it plans to report its third quarter 2021 financial results before market opening on Thursday, October 28 and will provide recorded audio commentary on the Company’s third quarter 2021 results from Mark Fields, Interim Chief Executive Officer and Kenny Cheung, Chief Financial Officer.
Details for accessing the pre-recorded audio commentary will be included in the Company’s earnings press release.
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. 15, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK:HTZZ) ("Hertz" or the "Company") announced today that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission ("SEC") relating to a proposed public offering of its common stock. The shares of common stock to be sold in the offering are anticipated to be offered by certain of the Company’s stockholders. The terms of the offering have not yet been determined. The offering is expected to be commenced in the fourth quarter of 2021, subject to market conditions and completion of any regulatory review.
Hertz’s common stock currently trades on the over-the-counter market under the symbol "HTZZ". Hertz intends to apply to list its common stock on the Nasdaq Global Select Market under the symbol "HTZ" in connection with the offering.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC are acting as lead-bookrunning managers for the proposed offering. Barclays Capital Inc. and Deutsche Bank Securities Inc. are acting as additional bookrunners.
The proposed offering will be made only by means of a prospectus. Copies of the preliminary prospectus, when available, may be obtained from Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or email: prospectus-ny@ny.email.gs.com; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, email at prospectus-eq_fi@jpmorgan.com, or telephone: 1-866-803-9204; or Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014.
A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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.
This press release contains "forward-looking statements" within the meaning of federal securities laws. Words such as "expect" and "intend" and similar expressions identify forward-looking statements. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including those in our risk factors that we identify in our most recent annual report on Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission on February 26, 2021, 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.
ESTERO, Fla., Oct. 6, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. announced today that Evelina Vougessis Machas has joined its Board of Directors, effective September 30, 2021. She is an accomplished executive in the European financial industry with proven success raising capital and leading teams through corporate transformations.
Ms. Vougessis Machas is the Co-Founder and CEO of Moneikos Global Asset Management, an independent asset management company based in Monaco. She is also the co-founder of MaxInvest Holdings, a single-family office that invests in startups and early-stage companies.
Greg O’Hara, Chairman of the Board, said, "It’s a pleasure to welcome Evelina Vougessis Machas to our Board of Directors as we continue building a bright future at Hertz. Her demonstrated success in the European financial sector and expertise in leading corporate transformations are core strengths that will support the company’s global efforts to lead the future of mobility and travel while delivering value for our customers and shareholders."
Ms. Vougessis Machas was instrumental in standing up Moneikos Global Asset Management as an independent entity and spearheaded the company’s current strategic plan. Prior to that, she served as Investor Relations and Strategy Director at Marfin Popular Bank Group as well as Marfin Investment Group, a multi-billion pan-European investment company headquartered in Greece, where she raised millions in capital. She was also recognized as the Best IR Manager in Greece for her position as Investor Relations Manager at Commercial Bank of Greece, a subsidiary of Credit Agricole Bank of France. She started her career as a research analyst in ABN AMRO Equities London, a subsidiary of ABN AMRO BANK Group.
Ms. Vougessis Machas holds a M.Sc. in International Securities, Investments and Banking (Hons.) from the ISMA Centre of the University of Reading, United Kingdom and a B.A. in Economics from the American College of Greece.
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release contains "forward-looking statements" within the meaning of federal securities laws. Words such as "expect" and "intend" and similar expressions identify forward-looking statements, which include but are not limited to statements related to our positioning. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including those in our risk factors that we identify in our most recent annual report on Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission on February 26, 2021, 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.
ESTERO, Fla., Aug. 9, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK: HTZZ; OTCPK: HTZZW) ("Hertz Global" or the "Company") today announced financial results for the second quarter of 2021.
For the second quarter 2021, the Company generated total revenues of $1.9 billion reflecting strong leisure travel demand coupled with tighter fleet inventory. Adjusted Corporate EBITDA was $639 million resulting in a 34% margin. The improvement resulted from strong revenues, efficient fleet management and over $400 million of structural, and recurring, cost reduction. The Company generated a net loss of $168 million or $1.05 loss per share, which included $633 million of reorganization expenses.
"Hertz delivered an outstanding second quarter as travel continued to rebound," said Paul Stone, Hertz Global’s President and Chief Executive Officer. "With resurgent demand and tight supply across the industry, we remained agile in managing our fleet to meet customers’ needs. At the same time, we benefited from the important operational and financial improvements we made through our restructuring process. Our improved financial position and capital structure give us the flexibility and resources to build upon our strengths and capitalize on accelerating momentum in the quarters ahead."
"We are optimistic about a sustained recovery and travel rebound. We are carefully managing our fleet accordingly to deliver superior customer experience while optimizing profitability," Mr. Stone continued.
Hertz Global emerged from its Chapter 11 process on June 30, 2021 as a well-capitalized company with the flexibility and resources to pursue exciting new growth opportunities. The Company anticipates a re-IPO, which includes hosting an investor roadshow and relisting on a major exchange by year-end 2021.
AMERICAS RENTAL CAR ("AMERICAS RAC") SUMMARY
Americas RAC
Three Months Ended
June 30,
Percent Inc/(Dec) 2021 vs. 2020
Percent Inc/(Dec) 2021 vs. 2019
($ in millions, except where noted)
2021
2020
2019
Total revenues
$
1,643
$
543
$
1,849
NM
(11)
%
Adjusted EBITDA
$
664
$
(485)
$
166
NM
NM
Adjusted EBITDA Margin
40
%
(89)
%
9
%
Average Vehicles (in whole units)
350,122
517,973
575,172
(32)
%
(39)
%
Vehicle Utilization
78
%
28
%
81
%
Transaction Days (in thousands)
24,992
13,321
42,593
88
%
(41)
%
Total RPD (in whole dollars)
$
65.42
$
37.95
$
42.71
72
%
53
%
Total RPU Per Month (in whole dollars)
$
1,557
$
325
$
1,054
NM
48
%
Depreciation Per Unit Per Month (in whole dollars)
$
76
$
270
$
245
(72)
%
(69)
%
NM – Not meaningful
Americas RAC second quarter 2021 revenues reflect upward pricing trends due to continued positive momentum in domestic travel combined with industry-wide fleet constraints. Americas RAC Adjusted EBITDA of $664 million and margin of 40% reflect the impact of demand-driven pricing, strong residual values, disciplined fleet management and the Company’s leaner cost structure.
INTERNATIONAL RENTAL CAR ("INTERNATIONAL RAC") SUMMARY
International RAC
Three Months Ended
June 30,
Percent Inc/(Dec) 2021 vs. 2020
Percent Inc/(Dec) 2021 vs. 2019
($ in millions, except where noted)
2021
2020
2019
Total revenues
$
230
$
125
$
495
84
%
(54)
%
Adjusted EBITDA
$
(1)
$
(112)
$
46
(99)
%
NM
Adjusted EBITDA Margin
—
%
(90)
%
9
%
Average Vehicles (in whole units)
71,044
114,405
166,503
(38)
%
(57)
%
Vehicle Utilization
76
%
37
%
77
%
Transaction Days (in thousands)
4,893
3,900
11,704
25
%
(58)
%
Total RPD (in whole dollars)
$
47.07
$
35.54
$
45.72
32
%
3
%
Total RPU Per Month (in whole dollars)
$
1,081
$
404
$
1,071
NM
1
%
Depreciation Per Unit Per Month (in whole dollars)
$
174
$
227
$
206
(23)
%
(16)
%
NM – Not meaningful
The pandemic-related impact on global travel continues to be a headwind for International RAC and segment revenues continued to be down compared to second quarter 2019 levels. Strong residual values, disciplined fleet management and the Company’s continued execution on productivity were able to offset the revenue headwinds. International RAC Adjusted EBITDA loss was $1 million, which reflected an improvement of $111 million year-over-year.
LIQUIDITY AND CAPITAL RESOURCES
The Company emerged from Chapter 11 with significantly lower non-vehicle debt levels relative to its pre-Chapter 11 balance sheet. At June 30, 2021 the Company had $1.5 billion in outstanding non-vehicle debt, comprised of a $1.3 billion Term B Loan and a $245 million Term C Loan that will support the issuance of letters of credit. In addition, the Company has a $1.3 billion first lien revolving credit facility ("First Lien RCF"). At June 30, 2021, the Company had $70 million of letters of credit deemed issued and no borrowings outstanding under the First Lien RCF. The Company has no material non-vehicle debt maturities until 2026.
The Company’s liquidity position totaled $3.0 billion at June 30, 2021, comprised of $1.8 billion in unrestricted cash and $1.2 billion of availability under the First Lien RCF.
The Company also refinanced its ABS program with $2.8 billion of committed funding under a 2-year, floating rate syndicated bank sponsored Variable Funding Rental Car Asset Backed Notes, of which $2.3 billion was drawn at June 30, 2021. The Company also issued $4.0 billion in Fixed Rate Rental Car Asset Backed Notes split evenly between 3- and 5-year maturities. The overall cost of the ABS funding in the United States is currently below 2.0%.
ADDITIONAL MANAGEMENT COMMENTARY
Pre-recorded audio commentary on Hertz Global’s second quarter 2021 results from President and CEO Paul Stone and CFO Kenny Cheung is available at the Company’s IR website at https://ir.hertz.com/events-presentations.
RESULTS OF THE HERTZ CORPORATION
The Company’s operating subsidiary, The Hertz Corporation ("Hertz"), posted the same revenues as the Company for the second quarter of 2021 and 2020. Hertz’s second quarter 2021 pre-tax loss was $51 million versus the Company’s pre-tax loss of $215 million. The difference between Hertz’s and the Company’s GAAP results is due to a $164 million backstop fee associated with a rights offering offered by the Company in the second quarter of 2021. Hertz’s second quarter 2020 pre-tax loss was $1.2 billion versus the Company’s pre-tax loss of $1.0 billion. The difference between Hertz’s and the Company’s GAAP results is primarily due to Hertz’s write off in the second quarter of 2020 of $133 million due from the Company. The non-GAAP profitability metrics for Hertz are materially the same as those for Hertz Global for the second quarter 2021 and 2020.
FINANCIAL REORGANIZATION
As previously announced, on May 22, 2020, Hertz Global, Hertz and certain of their direct and indirect subsidiaries in the United States and Canada filed voluntary petitions for relief under chapter 11 of the U.S. Bankruptcy Code ("Chapter 11"). On June 10, 2021, a joint Chapter 11 plan of reorganization (the "Reorganization") was confirmed by the U.S. Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") and became effective on June 30, 2021. On the same day, the Company emerged from Chapter 11 in accordance with the terms of the Reorganization.
Information related to the Reorganization and emergence from Chapter 11 is included in the Hertz Global and Hertz quarterly report on Form 10-Q for the quarter ended June 30, 2021 filed with the Securities and Exchange Commission (the "SEC") and on the Hertz website, IR.Hertz.com. Additional information, including access to documents filed with the Bankruptcy Court, is also available online at https://restructuring.primeclerk.com/hertz, a website administered by Prime Clerk, LLC, a third-party bankruptcy claims and noticing agent.
SELECTED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP MEASURES AND DEFINITIONS
The selected financial data of Hertz Global are set forth on page 7 of this release. Also included are Supplemental Schedules, which are provided to present segment results, and reconciliations of non-GAAP measures to their most comparable GAAP measures.
In the second quarter 2021, and in connection with its Chapter 11 emergence, the Company revised its reportable segments to combine its Canada, Latin America and Caribbean operations with the U.S. and renamed its U.S. Rental Car segment Americas Rental Car ("Americas RAC"). As a result, those operations will no longer be reported in the International RAC segment. Accordingly, prior periods have been recast to conform with the revised presentation. Refer also to Supplemental Schedule IV.
Following the Supplemental Schedules, the Company provides definitions for terminology used throughout this earnings release and provides the usefulness of non-GAAP measures to investors and additional purposes for which management uses such measures.
Financial data included in this release are derived from our unaudited condensed consolidated financial statements for the three months ended June 30, 2021, which are included in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 filed with the SEC and on the Hertz website, IR.Hertz.com. We have prepared the unaudited condensed consolidated financial statements on the same basis as we have prepared our audited consolidated financial statements. The unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, that management considered necessary for a fair statement of our financial position, results of operations and cash flows for the quarter. The Company’s historical results are not necessarily indicative of the results to be expected for any future period. Financial data included in this release are qualified by reference to and should be read in conjunction with the Company’s unaudited condensed consolidated financial statements and related notes which are included in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2021.
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.
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" 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 others, such factors include: the impact of the Company’s recent emergence from Chapter 11 on the Company’s business and relationships; levels of travel demand, particularly with respect to business and leisure travel in the U.S. and in global markets; the length and severity of COVID-19 and the impact on the Company’s vehicle rental business as a result of travel restrictions and business closures or disruptions; the impact of COVID-19 and actions taken in response to the pandemic on global and regional economies and economic factors; general economic uncertainty and the pace of economic recovery, including in key global markets, when COVID-19 subsides; the ability of the Company’s reconstituted Board of Directors to implement its business strategy; the Company’s ability to attract and retain key personnel following its emergence from bankruptcy; the Company’s ability to utilize its net operating loss carryforwards and realized built-in-losses as a result of its emergence from bankruptcy; the Company’s ability to remediate the material weaknesses in its internal controls over financial reporting; the Company’s ability to maintain an effective employee retention and talent management strategy and resulting changes in personnel and employee relations; the recoverability of the Company’s goodwill and indefinite-lived intangible assets when performing impairment analysis; the Company’s ability to dispose of vehicles in the used-vehicle market, use the proceeds of such sales to acquire new vehicles and to reduce exposure to residual risk; actions creditors may take with respect to the vehicles used in the rental car operations; 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; the Company’s ability to accurately estimate future levels of rental activity and adjust the number and mix of vehicles used in the Company’s rental operations accordingly; the Company’s ability to retain and increase customer loyalty and market share; increased vehicle costs due to declining value of the Company’s non-program vehicles; the Company’s ability to maintain sufficient liquidity and the availability to it of additional or continued sources of financing for the Company’s revenue earning vehicles and to refinance its existing indebtedness; risks related to the Company’s indebtedness, including its substantial amount of debt, its ability to incur substantially more debt, the fact that substantially all of the Company’s consolidated assets secure certain of its outstanding indebtedness and increases in interest rates or in its borrowing margins; the Company’s ability to meet the financial and other covenants contained in its First Lien Credit Agreement and certain asset-backed and asset-based arrangements; the Company’s ability to access financial markets, including the financing of its vehicle fleet through the issuance of asset-backed securities; fluctuations in interest rates, foreign currency exchange rates and commodity prices; the Company’s ability to sustain operations during adverse economic cycles and unfavorable external events (including war, escalation of hostilities, terrorist acts, natural disasters and epidemic disease); the Company’s ability to prevent the misuse or theft of information it possesses, including as a result of cyber security breaches and other security threats; the Company’s ability to adequately respond to changes in technology, customer demands and market competition; the Company’s ability to successfully implement any strategic transactions; the Company’s ability to achieve anticipated cost savings from on-going strategic initiatives; the impact on the value of the Company’s assets and liabilities as a result of potential changes to the LIBOR reference rate; the Company’s ability to purchase adequate supplies of competitively priced vehicles and risks relating to the availability and increases in the cost of the vehicles it purchases as a result of the continuing global semiconductor chip shortage; the Company’s recognition of previously deferred tax gains on the disposition of revenue earning vehicles; financial instability of the manufacturers of the Company’s vehicles, which could impact their ability to fulfill obligations under repurchase or guaranteed depreciation programs; an increase in the Company’s vehicle costs or disruption to the Company’s rental activity, particularly during peak periods, due to safety recalls by the manufacturers of the Company’s vehicles; the Company’s ability to execute a business continuity plan; the Company’s access to third-party distribution channels and related prices, commission structures and transaction volumes; 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; a major disruption in the Company’s communication or centralized information networks; a failure to maintain, upgrade and consolidate the Company’s information technology systems; costs and risks associated with potential litigation and investigations or any failure or inability to comply with laws and regulations or any changes in the legal and regulatory environment; the Company’s ability to maintain its network of leases and vehicle rental concessions at airports in the U.S. and internationally; the Company’s ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy; changes in the existing, or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations, where such actions may affect the Company’s operations, the cost thereof or applicable tax rates; risks relating to the Company’s deferred tax assets, including the risk of an "ownership change" under the Internal Revenue Code of 1986, as amended; the Company’s exposure to uninsured claims in excess of historical levels; risks relating to the Company’s participation in multiemployer pension plans; shortages of fuel and increases or volatility in fuel costs; the Company’s ability to manage its relationships with unions; changes in accounting principles, or their application or interpretation, and the Company’s ability to make accurate estimates and the assumptions underlying the estimates; and other risks and uncertainties described from time to time in periodic and current reports that it files with the SEC.
Additional information concerning these and other factors can be found in the Company’s filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date 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.
______________________
FINANCIAL INFORMATION AND OPERATING DATA
SELECTED UNAUDITED CONSOLIDATED INCOME STATEMENT DATA
Three Months Ended
June 30,
As a Percentage of Total Revenues
Six Months Ended
June 30,
As a Percentage of Total Revenues
(In millions, except per share data)
2021
2020
2021
2020
2021
2020
2021
2020
Total revenues
$
1,873
$
832
100
%
100
%
$
3,161
$
2,755
100
%
100
%
Expenses:
Direct vehicle and operating
946
652
51
%
78
%
1,724
1,845
55
%
67
%
Depreciation of revenue earning vehicles and lease charges
116
609
6
%
73
%
359
1,285
11
%
47
%
Depreciation and amortization of non-vehicle assets
50
57
3
%
7
%
104
110
3
%
4
%
Selling, general and administrative
172
164
9
%
20
%
321
368
10
%
13
%
Interest expense, net:
Vehicle
98
132
5
%
16
%
202
250
6
%
9
%
Non-vehicle
91
44
5
%
5
%
135
101
4
%
4
%
Total interest expense, net
189
176
10
%
21
%
337
351
11
%
13
%
Technology-related intangible and other asset impairments
—
193
—
%
23
%
—
193
—
%
7
%
Other (income) expense, net
(10)
2
(1)
%
—
%
(13)
(15)
—
%
(1)
%
Reorganization items, net
633
23
34
%
3
%
677
23
21
%
1
%
(Gain) from the sale of a business
(8)
—
—
%
—
%
(400)
—
(13)
%
—
%
Total expenses
2,088
1,876
111
%
225
%
3,109
4,160
98
%
151
%
Income (loss) before income taxes
(215)
(1,044)
(11)
%
(125)
%
52
(1,405)
2
%
(51)
%
Income tax (provision) benefit
46
192
2
%
23
%
(33)
196
(1)
%
7
%
Net income (loss)
(169)
(852)
(9)
%
(102)
%
19
(1,209)
1
%
(44)
%
Net (income) loss attributable to noncontrolling interests
1
5
—
%
1
%
2
6
—
%
—
%
Net income (loss) attributable to Hertz Global
$
(168)
$
(847)
(9)
%
(102)
%
$
21
$
(1,203)
1
%
(44)
%
Weighted-average number of shares outstanding:
Basic
160
144
158
143
Diluted
160
144
158
143
Earnings (loss) per share:
Basic
$
(1.05)
$
(5.86)
$
0.13
$
(8.39)
Diluted
$
(1.05)
$
(5.86)
$
0.13
$
(8.39)
Adjusted Net Income (Loss)(a)
$
408
$
(508)
$
349
$
(760)
Adjusted Diluted Earnings (Loss) Per Share(a)
$
2.55
$
(3.51)
$
2.20
$
(5.30)
Adjusted Corporate EBITDA(a)
$
639
$
(587)
$
642
$
(830)
(a)
Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule II.
Supplemental Schedule I
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
Three Months Ended June 30, 2021
Three Months Ended June 30, 2020
(In millions)
Americas RAC
International RAC
All other operations
Corporate
Hertz Global
Americas RAC
International RAC
All other operations
Corporate
Hertz Global
Total revenues:
$
1,643
$
230
$
—
$
—
$
1,873
$
543
$
125
$
164
$
—
$
832
Expenses:
Direct vehicle and operating
793
154
—
(1)
946
530
118
4
—
652
Depreciation of revenue earning vehicles and lease charges
80
36
—
—
116
419
70
120
—
609
Depreciation and amortization of non-vehicle assets
43
4
—
3
50
47
4
2
4
57
Selling, general and administrative
69
40
—
63
172
64
36
$
9
55
164
Interest expense, net:
Vehicle
77
21
—
—
98
99
22
11
—
132
Non-vehicle
(3)
—
—
94
91
(21)
—
(3)
68
44
Total interest expense, net
74
21
—
94
189
78
22
8
68
176
Technology-related intangible and other asset impairments
—
—
—
—
—
—
—
—
193
193
(Gain) from the sale of a business
—
—
—
(8)
(8)
—
—
—
—
—
Other (income) expense, net
(6)
(1)
—
(3)
(10)
(1)
—
—
3
2
Reorganization items, net
94
12
—
527
633
(1)
—
—
24
23
Total expenses
1,147
266
—
675
2,088
1,136
250
143
347
1,876
Income (loss) before income taxes
$
496
$
(36)
$
—
$
(675)
$
(215)
$
(593)
$
(125)
$
21
$
(347)
$
(1,044)
Income tax (provision) benefit
46
192
Net income (loss)
$
(169)
$
(852)
Net (income) loss attributable to noncontrolling interests
1
5
Net income (loss) attributable to Hertz Global
$
(168)
$
(847)
Supplemental Schedule I (continued)
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
Six Months Ended June 30, 2021
Six Months Ended June 30, 2020
(In millions)
Americas RAC
International RAC
All other operations
Corporate
Hertz Global
Americas RAC
International RAC
All other operations
Corporate
Hertz Global
Total revenues:
$
2,610
$
415
$
136
$
—
$
3,161
$
1,964
$
452
$
339
$
—
$
2,755
Expenses:
Direct vehicle and operating
1,434
279
5
6
1,724
1,491
347
8
(1)
1,845
Depreciation of revenue earning vehicles and lease charges
290
69
—
—
359
893
147
245
—
1,285
Depreciation and amortization of non-vehicle assets
87
9
2
6
104
89
9
5
7
110
Selling, general and administrative
121
70
10
120
321
182
79
5
102
368
Interest expense, net:
Vehicle
149
41
12
—
202
186
41
23
—
250
Non-vehicle
(5)
1
1
138
135
(68)
(1)
(8)
178
101
Total interest expense, net
144
42
13
138
337
118
40
15
178
351
Technology-related intangible and other asset impairments
—
—
—
—
—
—
—
—
193
193
(Gain) from the sale of a business
—
—
—
(400)
(400)
—
—
—
—
—
Other (income) expense, net
(7)
(1)
—
(5)
(13)
(22)
3
—
4
(15)
Reorganization items, net
80
12
(1)
586
677
(1)
—
—
24
23
Total expenses
2,149
480
29
451
3,109
2,750
625
278
507
4,160
Income (loss) before income taxes
$
461
$
(65)
$
107
$
(451)
$
52
$
(786)
$
(173)
$
61
$
(507)
$
(1,405)
Income tax (provision) benefit
(33)
196
Net income (loss)
$
19
$
(1,209)
Net (income) loss attributable to noncontrolling interests
2
6
Net income (loss) attributable to Hertz Global
$
21
$
(1,203)
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)
2021
2020
2021
2020
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share:
Net income (loss) attributable to Hertz Global
$
(168)
$
(847)
$
21
$
(1,203)
Adjustments:
Income tax provision (benefit)
(46)
(192)
33
(196)
Vehicle and non-vehicle debt-related charges(a)(n)
68
18
104
30
Technology-related intangible and other asset impairments(b)
—
193
—
193
Restructuring and restructuring related charges(c)
37
41
50
47
Information technology and finance transformation costs(d)
4
8
10
25
Acquisition accounting-related depreciation and amortization(e)
12
13
25
27
Reorganization items, net(f)
633
23
677
23
Pre-reorganization and non-debtor financing charges(g)
17
45
40
45
Gain from the Donlen Sale(h)
(8)
—
(400)
—
Other items(i)
2
21
(88)
(5)
Adjusted pre-tax income (loss)(j)
551
(677)
472
(1,014)
Income tax (provision) benefit on adjusted pre-tax income (loss)(k)
(143)
169
(123)
254
Adjusted Net Income (Loss)
$
408
$
(508)
$
349
$
(760)
Weighted-average number of diluted shares outstanding
160
144
158
143
Adjusted Diluted Earnings (Loss) Per Share(l)
$
2.55
$
(3.51)
$
2.20
$
(5.30)
Adjusted Corporate EBITDA:
Net income (loss) attributable to Hertz Global
$
(168)
$
(847)
21
(1,203)
Adjustments:
Income tax provision (benefit)
(46)
(192)
33
(196)
Non-vehicle depreciation and amortization(m)
50
57
104
110
Non-vehicle debt interest, net of interest income(n)
91
44
135
101
Vehicle debt-related charges(a)(o)
26
15
54
24
Technology-related intangible and other asset impairments(c)
—
193
—
193
Restructuring and restructuring related charges(d)
37
41
50
47
Information technology and finance transformation costs(e)
4
8
10
25
Reorganization items, net(g)
633
23
677
23
Pre-reorganization and non-debtor financing charges(h)
17
45
40
45
Gain from the Donlen Sale(i)
(8)
—
(400)
—
Other items(j)(p)
3
26
(82)
1
Adjusted Corporate EBITDA
$
639
$
(587)
$
642
$
(830)
Supplemental Schedule II (continued)
(a)
Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.
(b)
In 2020, represents the impairment of technology-related intangible assets and capitalized cloud computing implementation costs. These costs relate to the Company’s corporate operations ("Corporate").
(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 costs associated with the Company’s information technology and finance transformation programs, both of which are multi-year initiatives to upgrade and modernize the Company’s systems and processes. These costs relate primarily to the Corporate.
(e)
Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.
(f)
Represents charges incurred associated with the Reorganization and emergence from chapter 11, including professional fees. The charges relate primarily to Corporate. Hertz Corporation reorganization expenses for the three and six months ended June 30, 2021 were $469 million and $513 million, respectively. The difference is due to $164 million in Backstop fee.
Three Months Ended June 30,
Six Months Ended
June 30,
(In millions)
2021
2020
2021
2020
Professional fees and other bankruptcy related costs
$
199
$
23
$
257
$
23
Loss on extinguishment of debt
191
—
191
—
Backstop fee
164
—
164
—
Breakup fee
77
—
77
—
Contract settlements
25
—
25
—
Cancellation of share-based compensation grants
(10)
—
(10)
—
Net gain on settlement of liabilities subject to compromise
(11)
—
(22)
—
Other, net
(2)
—
(5)
—
Reorganization items, net
$
633
$
23
$
677
$
23
(g)
Represents charges incurred prior to the filing of the Chapter 11 Cases comprised of preparation charges for the Reorganization, such as professional fees. Also includes, certain non-debtor financing and professional fee charges. The amounts incurred for Americas RAC, International RAC and Corporate were $8 million, $2 million, and $7 million for the three months ended June 30, 2021, respectively. For Americas RAC, International RAC, All other operations and Corporate were $17 million, $5 million, $2 million and $17 million for the six months ended June 30, 2021, respectively. For Americas RAC, International RAC and Corporate, charges incurred for the three and six months ended June 30, 2020 were $15 million, $2 million and $28 million, respectively.
(h)
Represents the gain from the sale of the Company’s Donlen business on March 30, 2021, primarily associated with Corporate.
(i)
Represents miscellaneous items. In 2021, includes $100 million due to the suspension of depreciation during the first half of the year for the Donlen leasing and fleet management operations while classified as held for sale in All other operations, partially offset by letter of credit fees recorded in the first half of the year in Corporate and charges for a multiemployer pension plan withdrawal liability recorded in the first quarter in Corporate. In 2020, includes a $20 million gain on the sale of non-vehicle capital assets in Americas RAC, which was recorded in the first quarter, partially offset by second quarter charges of $18 million for losses associated with certain vehicle damages in Americas RAC.
(j)
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)
2021
2020
2021
2020
Direct vehicle and operating
$
(28)
$
(54)
$
59
$
(70)
Selling, general and administrative
(36)
(56)
(67)
(64)
Interest expense, net:
Vehicle
(34)
(30)
(73)
(39)
Non-vehicle
(44)
(3)
(50)
(6)
Total interest expense, net
(78)
$
(33)
$
(123)
(45)
Intangible and other asset impairments
—
(193)
—
(193)
Other income (expense), net
2
(3)
(10)
10
Reorganization items, net
(633)
(23)
(677)
(23)
Gain from the Donlen Sale
8
—
400
—
Total adjustments
$
(765)
$
(362)
$
(418)
$
(385)
(k)
Derived utilizing a combined statutory rate of 26% and 25% for the three and six months ended June 30, 2021 and 2020, respectively, applied to the respective Adjusted Pre-tax Income (Loss).
(l)
Adjustments used to reconcile diluted earnings (loss) per share on a GAAP basis to Adjusted Diluted Earnings (Loss) Per Share are comprised of the same adjustments, inclusive of the tax impact, used to reconcile net income (loss) to Adjusted Net Income (Loss) divided by the weighted-average diluted shares outstanding during the period.
(m)
Non-vehicle depreciation and amortization expense for Americas RAC, International RAC and Corporate for the three months ended June 30, 2021 was $43 million, $4 million and $3 million, respectively. For the three months ended June 30, 2020 was $47 million, $4 million, $2 million and $4 million for Americas RAC, International RAC, All other operations and Corporate, respectively. Non-vehicle depreciation and amortization for Americas RAC, International RAC, All other operations and Corporate for the six months ended June 30, 2021 were $87 million, $9 million, $2 million and $6 million, respectively, and for the six months ended June 30, 2020 were $89 million, $9 million, $5 million and $7 million, respectively.
(n)
In 2021, includes $8 million of loss on extinguishment of debt associated with the payoff and termination of non-vehicle debt in Corporate.
(o)
Vehicle debt-related charges for Americas RAC and International RAC for the three months ended June 30, 2021 were $21 million and $5 million, respectively. For the three months ended June 30, 2020 vehicle debt-related charges for Americas RAC, International RAC and All other operations were $9 million, $5 million and $1 million, respectively. Vehicle debt-related charges for Americas RAC, International RAC and All other operations for the six months ended June 30, 2021 were $42 million, $10 million and $2 million, respectively, and for the six months ended June 30, 2020 were $15 million, $7 million and $2 million, respectively.
(p)
Also includes an adjustment for non-cash stock-based compensation charges in Corporate.
Supplemental Schedule III
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATIONS OF KEY METRICS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
Americas RAC
Three Months Ended
June 30,
Percent Inc/(Dec)
Six Months Ended
June 30,
Percent Inc/(Dec)
($ in millions, except where noted)
2021
2020
2021
2020
Total RPD
Total revenues
$
1,643
$
543
$
2,610
$
1,964
Foreign currency adjustment(a)
(1)
1
(1)
2
Ancillary retail vehicle sales revenue
(7)
(38)
(11)
(70)
Total Rental Revenues
$
1,635
$
506
$
2,598
$
1,896
Transaction Days (in thousands)
24,992
13,321
45,243
45,684
Total RPD (in whole dollars)
$
65.42
$
37.95
72
%
$
57.43
$
41.50
38
%
Total Revenue Per Unit Per Month
Total Rental Revenues
$
1,635
$
506
$
2,598
$
1,896
Average Vehicles (in whole units)
350,122
517,973
325,364
526,247
Total revenue per unit (in whole dollars)
$
4,670
$
977
$
7,985
$
3,603
Number of months in period (in whole units)
3
3
6
6
Total RPU Per Month (in whole dollars)
$
1,557
$
325
379
%
$
1,331
$
600
122
%
Vehicle Utilization
Transaction Days (in thousands)
24,992
13,321
45,243
45,684
Average Vehicles (in whole units)
350,122
517,973
325,364
526,247
Number of days in period (in whole units)
91
91
181
182
Available Car Days (in thousands)
31,861
47,136
58,891
95,777
Vehicle Utilization(b)
78
%
28
%
77
%
48
%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges
$
80
$
419
$
290
$
893
Foreign currency adjustment(a)
—
1
—
1
Adjusted depreciation of revenue earning vehicles and lease charges
80
420
290
894
Average Vehicles (in whole units)
350,122
517,973
325,364
526,247
Depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$
228
$
811
$
891
$
1,699
Number of months in period (in whole units)
3
3
6
6
Depreciation Per Unit Per Month (in whole dollars)
$
76
$
270
(72)
%
$
149
$
283
(47)
%
(a)
Based on December 31, 2020 foreign exchange rates
(b)
Calculated as Transaction Days divided by Available Car Days.
Supplemental Schedule III (continued)
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATIONS OF KEY METRICS
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)
2021
2020
2021
2020
Total RPD
Total revenues
$
230
$
125
$
415
$
452
Foreign currency adjustment(a)
—
14
1
49
Total Rental Revenues
$
230
$
139
$
416
$
501
Transaction Days (in thousands)
4,893
3,900
9,291
11,964
Total RPD (in whole dollars)
$
47.07
$
35.54
32
%
$
44.81
$
41.90
7
%
Total Revenue Per Unit Per Month
Total Rental Revenues
$
230
$
139
$
416
$
501
Average Vehicles (in whole units)
71,044
114,405
69,019
123,226
Total revenue per unit (in whole dollars)
$
3,237
$
1,215
$
6,027
$
4,066
Number of months in period (in whole units)
3
3
6
6
Total RPU Per Month (in whole dollars)
$
1,081
$
404
168
%
$
1,005
$
678
48
%
Vehicle Utilization
Transaction Days (in thousands)
4,893
3,900
9,291
11,964
Average Vehicles (in whole units)
71,044
114,405
69,019
123,226
Number of days in period (in whole units)
91
91
181
182
Available Car Days (in thousands)
6,465
10,411
12,492
22,427
Vehicle Utilization(b)
76
%
37
%
74
%
53
%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges
$
36
$
70
$
69
$
147
Foreign currency adjustment(a)
1
8
1
17
Adjusted depreciation of revenue earning vehicles and lease charges
$
37
$
78
$
70
$
164
Average Vehicles (in whole units)
71,044
114,405
69,019
123,226
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$
521
$
682
$
1,014
$
1,331
Number of months in period (in whole units)
3
3
6
6
Depreciation Per Unit Per Month (in whole dollars)
$
174
$
227
(23)
%
$
169
$
222
(24)
%
(a)
Based on December 31, 2020 foreign exchange rates.
(b)
Calculated as Transaction Days divided by Available Car Days.
Supplemental Schedule III (continued)
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATIONS OF KEY METRICS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
Worldwide Rental Car
Three Months Ended
June 30,
Percent Inc/(Dec)
Six Months Ended
June 30,
Percent Inc/(Dec)
($ in millions, except where noted)
2021
2020
2021
2020
Total RPD
Total revenues
$
1,873
$
668
$
3,025
$
2,416
Ancillary retail vehicle sales revenue
(7)
(38)
(11)
(70)
Foreign currency adjustment(a)
(1)
15
—
51
Total Rental Revenues
$
1,865
$
645
$
3,014
$
2,397
Transaction Days (in thousands)
29,885
17,221
54,534
57,648
Total RPD (in whole dollars)
$
58.61
$
37.41
57
%
$
51.88
$
41.58
25
%
Total Revenue Per Unit Per Month
Total Rental Revenues
$
1,865
$
645
$
3,014
$
2,397
Average Vehicles (in whole units)
421,166
632,378
394,383
649,473
Total revenue per unit (in whole dollars)
$
4,428
$
1,020
$
7,642
$
3,691
Number of months in period (in whole units)
3
3
6
6
Total RPU Per Month (in whole dollars)
$
920
$
340
171
%
$
988
$
615
61
%
Vehicle Utilization
Transaction Days (in thousands)
29,885
17,221
54,534
57,648
Average Vehicles (in whole units)
421,166
632,378
394,383
649,473
Number of days in period (in whole units)
91
91
181
182
Available Car Days (in thousands)
38,326
57,546
71,383
118,204
Vehicle Utilization(b)
78
%
30
%
76
%
49
%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges
$
116
$
489
$
359
$
1,040
Foreign currency adjustment(a)
1
9
1
18
Adjusted depreciation of revenue earning vehicles and lease charges
$
117
$
498
$
360
$
1,058
Average Vehicles (in whole units)
421,166
632,378
394,383
649,473
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$
278
$
788
$
913
$
1,629
Number of months in period (in whole units)
3
3
6
6
Depreciation Per Unit Per Month (in whole dollars)
$
93
$
263
(65)
%
$
152
$
272
(44)
%
Note: Worldwide Rental Car represents Americas RAC and International RAC segment information on a combined basis and excludes All other operations, which is primarily comprised of the Company’s former Donlen leasing operations, and Corporate.
(a) Based on December 31, 2020 foreign exchange rates.
(b) Calculated as Transaction Days divided by Available Car Days.
Supplemental Schedule IV
HERTZ GLOBAL HOLDINGS, INC.
RECAST OF HISTORICAL SEGMENT FINANCIAL INFORMATION AND KEY METRICS
Unaudited
Three Months Ended June 30, 2020
(In millions)
U.S. RAC
Canada, LATAM & Caribbean
Americas RAC
International RAC
(historical segmentation)
Canada, LATAM & Caribbean
International RAC
(new segmentation)
Total revenues:
$
533
$
10
$
543
$
135
$
(10)
$
125
Expenses:
Direct vehicle and operating
515
15
530
133
(15)
118
Depreciation of revenue earning vehicles and lease charges
408
11
419
81
(11)
70
Depreciation and amortization of non-vehicle assets
46
1
47
5
(1)
4
Selling, general and administrative
63
1
64
37
(1)
36
Interest expense, net:
Vehicle
98
1
99
23
(1)
22
Non-vehicle
(21)
—
(21)
—
—
—
Total interest expense, net
77
1
78
23
(1)
22
Technology-related intangible and other asset impairments
—
—
—
—
—
—
(Gain) from the sale of a business
—
—
—
—
—
—
Other (income) expense, net
2
(3)
(1)
(3)
3
—
Reorganization items, net
(1)
—
(1)
—
—
—
Total expenses
1,110
26
1,136
276
(26)
250
Income (loss) before income taxes
$
(577)
$
(16)
$
(593)
$
(141)
$
16
$
(125)
Adjusted EBITDA
$
(470)
$
(15)
$
(485)
$
(127)
$
15
$
(112)
Adjusted EBITDA Margin
(88)
%
(150)
%
(89)
%
(94)
%
150
%
(90)
%
0
Average Vehicles (in whole units)
502,763
15,210
517,973
129,615
(15,210)
114,405
Vehicle Utilization
28
%
26
%
28
%
36
%
(26)
%
37
%
Transaction Days (in thousands)
12,964
356
13,321
4,256
(356)
3,900
Total RPD (in whole dollars)(a)
$
38.17
$
30.23
$
37.95
$
35.10
$
(30.23)
$
35.54
Total RPU Per Month (in whole dollars)(a)
$
328
$
236
$
325
$
384
$
(236)
$
404
Depreciation Per Unit Per Month (in whole dollars)(a)
$
271
$
259
$
270
$
231
$
(259)
$
227
(a)
Based on December 31, 2020 foreign exchange rates
Supplemental Schedule IV (continued)
HERTZ GLOBAL HOLDINGS, INC.
RECAST OF HISTORICAL SEGMENT FINANCIAL INFORMATION AND KEY METRICS
Unaudited
Three Months Ended June 30, 2019
(In millions)
U.S. RAC
Canada, LATAM &
Caribbean
Americas RAC
International RAC
(historical segmentation)
Canada, LATAM & Caribbean
International RAC
(new segmentation)
Total revenues:
$
1,784
$
65
$
1,849
$
560
$
(65)
$
495
Expenses:
Direct vehicle and operating
1,013
40
1,053
324
(40)
284
Depreciation of revenue earning vehicles and lease charges
411
11
422
106
(11)
95
Depreciation and amortization of non-vehicle assets
39
—
39
6
—
6
Selling, general and administrative
119
3
122
55
(3)
52
Interest expense, net:
Vehicle
90
2
92
24
(2)
22
Non-vehicle
(47)
—
(47)
(1)
—
(1)
Total interest expense, net
43
2
45
23
(2)
21
Technology-related intangible and other asset impairments
—
—
—
—
—
—
(Gain) from the sale of a business
—
—
—
—
—
—
Other (income) expense, net
(5)
—
(5)
—
—
—
Reorganization items, net
—
—
—
—
—
—
Total expenses
1,620
56
1,676
514
(56)
458
Income (loss) before income taxes
$
164
$
9
$
173
$
46
$
(9)
$
37
Adjusted EBITDA
$
156
$
10
$
166
$
56
$
(10)
$
46
Adjusted EBITDA Margin
9
%
15
%
9
%
10
%
(15)
%
9
%
Average Vehicles (in whole units)
554,794
20,378
575,172
186,881
(20,378)
166,503
Vehicle Utilization
82
%
77
%
81
%
77
%
(77)
%
77
%
Transaction Days (in thousands)
41,173
1,421
42,593
13,125
(1,421)
11,704
Total RPD (in whole dollars)(a)
$
42.54
$
47.54
$
42.71
$
45.92
$
(47.54)
$
45.72
Total RPU Per Month (in whole dollars)(a)
$
1,052
$
1,105
$
1,054
$
1,075
$
(1,105)
$
1,071
Depreciation Per Unit Per Month (in whole dollars)(a)
$
247
$
185
$
245
$
204
$
(185)
$
206
(a)
Based on December 31, 2020 foreign exchange rates
NON-GAAP MEASURES AND KEY METRICS
Hertz Global is the top-level holding company that indirectly wholly owns Hertz. 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 Diluted EPS")
Adjusted Net Income (Loss) represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax, debt-related charges and losses, restructuring and restructuring related charges, intangible and tangible asset impairments and write-downs, information technology and finance transformation costs, non-cash acquisition accounting charges, reorganization items, pre-reorganization and non-debtor financing charges, gain from the sale of a business and certain other miscellaneous items on a pre-tax basis. Adjusted Net Income (Loss) includes a provision (benefit) for income taxes derived utilizing a combined statutory rate. The combined statutory rate is management’s estimate of the Company’s long-term tax rate. Its most comparable GAAP measure is net income (loss) attributable to the Company.
Adjusted Diluted EPS represents Adjusted Net Income (Loss) on a per diluted share basis using the weighted-average number of diluted shares outstanding for the period. Its most comparable GAAP measure is diluted earnings (loss) per share.
Adjusted Net Income (Loss) and Adjusted Diluted EPS are important 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, net non-vehicle debt interest, vehicle debt-related charges and losses, restructuring and restructuring related charges, goodwill, intangible and tangible asset impairments and write-downs, information technology and finance transformation costs, reorganization items, pre-reorganization and non-debtor financing charges, gain from the sale of a business 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.
KEY METRICS
Available Car Days
Available Car Days represents Average 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.
Depreciation Per Unit Per Month
Depreciation Per Unit Per Month represents the amount of average depreciation expense and lease charges per vehicle per month, exclusive of the impacts of foreign currency exchange rates. Management believes eliminating the effect of fluctuations in foreign currency exchange rates is appropriate so as not to affect the comparability of underlying trends. This metric is important to management and investors as it reflects how effectively the Company is managing the costs of its vehicles and facilitates comparisons with other participants in the vehicle rental industry.
Total Rental Revenues
Total Rental Revenues represents total revenues less ancillary retail vehicle sales revenues, with all periods adjusted to eliminate the effect of fluctuations in foreign currency exchange rates. Management believes eliminating the effect of fluctuations in foreign currency exchange rates is appropriate so as not to affect the comparability of underlying trends. This metric is important to management and investors as it represents a measure that excludes the impact of ancillary revenues resulting from vehicle sales 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 the ratio of Total Rental Revenues to Transaction Days. This metric is important to management and investors as it represents a measure of changes in the underlying pricing in the vehicle rental business and encompasses the elements in vehicle rental pricing that management has the ability to control.
Total Revenue Per Unit Per Month ("Total RPU" or "Total RPU Per Month")
Total RPU Per Month represents the amount of average Total Rental Revenues per vehicle per month. This metric is important to management and investors as it provides a measure of revenue productivity relative to fleet capacity, or asset efficiency.
Transaction Days ("Days"; also referred to as "volume")
Transaction Days 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 Car Days. This metric is important to management and investors as it measures the proportion of vehicles that are being used to generate revenues relative to fleet capacity.
ESTERO, Fla., Aug. 3, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK: HTZZ; OTCPK: HTZZW) announced today that it plans to report its second quarter 2021 financial results before market opening on Monday, August 9 and will provide pre-recorded audio commentary on the Company’s second quarter 2021 results from President and CEO Paul Stone and CFO Kenny Cheung.
Details for accessing the pre-recorded audio commentary will be included in the Company’s earnings press release.
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.
ESTERO, Fla., Aug. 2, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK: HTZZ) ("Hertz" or the "Company") announced today that Jennifer Feikin has joined its Board of Directors, effective July 29, 2021. She is an experienced business leader who brings deep expertise in digital technology, innovation and consumer product development.
Ms. Feikin is an independent board member of several American Funds and Capital Group Companies mutual funds. She also serves on the Board of Trustees of The Nature Conservancy of California.
Greg O’Hara, Chairman of the Board said, "We are delighted to welcome Jennifer Feikin to our Board of Directors as we embark on a new and exciting chapter for Hertz. She is an accomplished executive and director with significant experience as a leader in strategic product development and digital innovation for large global companies. We look forward to benefitting from the valuable perspective that she will provide as we remain focused on enhancing value for our customers and shareholders."
Ms. Feikin conceived of the idea for Google Video and both helped drive its product development strategy and led its content team. She also negotiated many of the company’s first and largest search and advertising deals. Prior to that, Ms. Feikin held roles in AOL Time Warner’s strategic development group and in business affairs at Twentieth Century Fox, Fox Searchlight, and Morgan Creek Productions, negotiating major motion picture deals. She began her career as a management consultant focused on financial institutions, telecom and technology at McKinsey & Company.
Ms. Feikin earned her J.D. from Harvard Law School and a B.A. from Duke University.
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release contains "forward-looking statements" within the meaning of federal securities laws. Words such as "expect" and "intend" and similar expressions identify forward-looking statements, which include but are not limited to statements related to our positioning. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including those in our risk factors that we identify in our most recent annual report on Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission on February 26, 2021, 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.
ESTERO, Fla., June 30, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK:HTZGQ) ("Hertz" or the "Company") announced the composition of its new Board of Directors whose term is effective with the Company’s successful completion of its restructuring and emergence from Chapter 11 today. The new Board will initially include eight members with up to three additional directors to be named in the future. The eight members named include Certares founder Michael Gregory O’Hara as Chairperson; Knighthead Capital co-founder Thomas Wagner as Vice Chairperson; Certares Senior Managing Director Colin Farmer; Knighthead Partner Andrew Shannahan; Apollo Partner Christopher Lahoud; TPG Capital Senior Advisor and former CEO of Ford Motor Company Mark Fields; current Hertz Board member Vincent Intrieri; and Hertz President and CEO Paul Stone.
Paul Stone said, "We are excited to welcome our new Board members and benefit from their collective expertise, leadership and oversight at this pivotal time for Hertz and the travel industry. These executives bring extensive financial, operational and market experience that will be invaluable in the next chapter for Hertz. I also want to express our company’s appreciation to our retiring Board members for their service and tireless efforts, particularly throughout the past year and a half of the pandemic and our successful restructuring."
Hertz New Board Member Bios
Michael Gregory (Greg) O’Hara, Chairperson; Founder and Senior Managing Director of Certares, a firm that invests in the travel, tourism and hospitality sectors, and co-founder of GO Acquisition Corp. He is the Head of Certares’ Investment Committee and a member of the Management Committee. Prior to forming Certares, he served as Chief Investment Officer of JPMorgan Chase’s Special Investments Group ("JPM SIG"). Prior to this role at JPM SIG, Greg was a Managing Director of One Equity Partners ("OEP"), the private equity arm of JPMorgan. Before joining OEP in 2005, he served as Executive Vice President of Worldspan and was a member of its Board of Directors. Greg is the Executive Chairman of American Express Global Business Travel and Vice Chairman of Liberty TripAdvisor Holdings and serves on the Boards of Directors of Liberty TripAdvisor Holdings and Tripadvisor, The Innocence Project, World Travel & Tourism Council and Certares Holdings.
Thomas (Tom) Wagner, Vice Chairperson; Co-Founder and Managing Member of Knighthead Capital Management, LLC, an event driven and deep value focused SEC registered investment advisor that specializes in investing in companies that need financial and operational restructuring. His deep financial experience also includes serving as Managing Director at Goldman Sachs in Capital Structure Franchise Trading, as well as roles at Credit Suisse First Boston and Ernst & Young, LLP. Tom is currently Board Chairman of Knighthead Annuity & Life Assurance Company and on the Board of Trustees of Villanova University, the National Advisory Board for Youth Inc., and the National Leadership Council for the Navy SEAL Foundation. He is the Co-Portfolio Manager of all funds and accounts managed by Knighthead Capital Management, LLC.
Colin Farmer, Senior Managing Director and the Head of the Management Committee of Certares. Previously, he was Managing Director of One Equity Partners. Prior to that, he was a Principal at Harvest Partners, a middle market private equity firm, and an Analyst at Robertson Stephens & Company, a middle market investment bank. Colin serves on the Boards of Internova Travel Group, AmaWaterways, Guardian Alarm, Mystic Invest and Certares Holdings, and is a member of Certares’ Investment Committee.
Andrew Shannahan, Head of Research and Partner at Knighthead Capital Management, LLC, an event driven and deep value focused SEC registered investment advisor that specializes in investing in companies that need financial and operational restructuring. Andrew brings oversight to the Knighthead research team through his investment expertise gained during thirteen years at Knighthead, leading complex investment situations. Prior to joining Knighthead in 2008, he spent six years as a senior research analyst for Litespeed Partners, an event-driven hedge fund. Andrew serves as a member of the Investment Committee of certain funds managed by Knighthead Capital Management, LLC.
Christopher Lahoud, Partner in Credit at Apollo Global Management. Prior to joining Apollo, he was the Head of the Distressed Product Group at Deutsche Bank managing a team of 15 professionals. He began his career with Citigroup in 2006 as a credit trader and currently serves on the Board of Directors of Moxe Health.
Mark Fields, Senior Advisor at TPG Capital and former President and CEO of Ford Motor Company. He held senior leadership roles at the company, including Chief Operating Officer, Executive Vice President & President of the Americas, Executive Vice President and Chief Executive Officer of Premier Automotive Group and Ford Europe, Chairman and Chief Executive Officer of the Premier Automotive Group, and President and Chief Executive Officer of Mazda Motor Corporation. He is the Lead Independent Director of Tanium and serves on Qualcomm’s Board of Directors. He has served on the Boards of Ford, IBM and Mazda, as well as four private companies on behalf of TPG Capital.
Vincent Intrieri, CEO and founder of VDA Capital Management LLC and has served as a director of Hertz Global Holdings since June 2016 and Hertz since September 2014. Previously, he was with Icahn-related entities from October 1998 to December 2016 in various investment-related capacities, including as Senior Managing Director of Icahn Capital LP, Senior Managing Director of Icahn Onshore LP, and Icahn Offshore LP. Prior to joining Icahn Capital, Vincent was a partner at Arthur Andersen LLP. He is the co-lead director of Navistar International and a director of Transocean Limited. Previously, he served as a director of Energen Corporation, Conduent Incorporated, Chesapeake Energy, Forest Laboratories Inc, CVR Energy Inc, Federal-Mogul Corporation, and various other public companies.
Paul Stone, President and Chief Executive Officer of Hertz Global Holdings, Inc. Named CEO in May 2020, Paul has led the Company through its successful operational and financial restructuring. He joined Hertz in March 2018 as Executive Vice President and Chief Retail Operations Officer for North America. Previously, he was Chief Retail Officer at Cabela’s Inc. He spent the first 28 years of his career in various leadership roles at Walmart Inc.
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of federal securities laws. Words such as "expect" and "intend" and similar expressions identify forward-looking statements, which include but are not limited to statements related to our positioning. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including those in our risk factors that we identify in our most recent annual report on Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission on February 26, 2021, 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.
ESTERO, Fla., June 30, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK:HTZGQ) ("Hertz" or the "Company") today announced that it has successfully completed its Chapter 11 restructuring process and has emerged as a financially and operationally stronger company that is well-positioned for the future. Hertz’s Plan of Reorganization was confirmed by the Bankruptcy Court on June 10, 2021. In doing so, Judge Mary Walrath described the outcome as a "fantastic result" that "surpasses any result that I’ve seen in any Chapter 11 case that I’ve faced in my 20-plus years."
With over $5.9 billion of new equity capital being provided by Hertz’s new investor group, led by Knighthead Capital Management LLC, Certares Opportunities LLC, and certain funds managed by affiliates of Apollo Capital Management, L.P., Hertz has reduced its corporate debt by nearly 80% and significantly enhanced its liquidity to fund operations and future growth. Specifically, Hertz has eliminated nearly $5.0 billion of debt, including all of Hertz Europe’s corporate debt. In addition, Hertz has emerged with a new $2.8 billion exit credit facility (including an undrawn $1.3 billion revolving credit facility) and a $7.0 billion asset-backed vehicle financing facility, each having terms the Company views as extremely favorable. The aggregate interest rate on the Company’s new ABS financing is less than 2.0%.
Henry Keizer, Chairman of Hertz’s outgoing Board of Directors, said: "Faced with the epic and unprecedented challenges presented by the COVID-19 pandemic, and unfazed by early leadership changes, we stayed focused on stabilizing the business and seizing opportunities to mitigate losses and create value for our stakeholders. When the economy began to show signs of recovery earlier this year, we were perfectly positioned to drive a competitive process that would maximize recoveries. The result – paying our nearly $19 billion of creditors in full and returning substantial value to our shareholders – is remarkable."
In tandem with its financial restructuring, Hertz also executed on a series of operational initiatives to create a more focused and profitable enterprise. Among these actions, Hertz launched a cost reduction program that is generating significant savings, right-sized its fleet across both its U.S. and International businesses, optimized its location footprint, negotiated cost reductions and concessions at certain airport locations, and completed the sale of its Donlen fleet leasing business for $891 million in cash. In addition, Hertz focused on meeting changing demand through its portfolio of neighborhood rental locations as a complement to its airport business. These efforts, combined with a sharp increase in car rentals in the U.S. and the continued strength in used car sales, are putting the Company on track for strong financial results in 2021.
Paul Stone, Hertz’s President and Chief Executive Officer, said: "Today marks a significant milestone in Hertz’s 103-year history. Through the relentless efforts of our Board and team, we are moving forward in an incredibly strong position with an exciting road ahead of us. Now with a solid financial foundation, a leaner, more efficient operating model, and ample liquidity to invest in our business, Hertz has outstanding potential to drive long-term profitable growth. Both in the U.S. and around the world, we are poised to capitalize on our industry leadership, deep operational expertise and iconic global brand."
He continued: "I am tremendously proud of all we have accomplished and confident that this is only the beginning in delivering even greater value to our stakeholders. Thank you to the Hertz team around the world and Board of Directors, to our new investor group, who bring extensive industry experience, and to our customers, franchisees, partners and shareholders for your confidence and support during this process. We look forward to a bright future as a vibrant part of the rebounding travel industry and as a trusted partner for our customers’ mobility needs."
Hertz filed for Chapter 11 for its U.S. operations on May 22, 2020 following the onset of the COVID-19 pandemic, which had a severe and dramatic effect on travel demand. Hertz’s principal international operating regions including Europe, Australia and New Zealand were not included in the U.S. Chapter 11 proceedings.
Following its successful restructuring process, Hertz’s creditors will receive payment in cash in full and existing shareholders will receive more than $1 billion of value. Shares of Hertz common stock will continue to be publicly traded on the over-the-counter (OTC) market, until such time as the Company relists on a national securities exchange. The new ticker symbols effective July 1 will be HTZZ for Hertz common stock and HTZZW for warrants.
For Court documents or filings, please visit https://restructuring.primeclerk.com/hertz or call (877) 428-4661 or (929) 955-3421. White & Case LLP is serving as legal advisor, Moelis & Co. is serving as investment banker, and FTI Consulting is serving as financial advisor.
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release contains "forward-looking statements" within the meaning of federal securities laws. Words such as "expect" and "intend" and similar expressions identify forward-looking statements, which include but are not limited to statements related to our liquidity, financing sources and operations and expectations for travel. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including those in our risk factors that we identify in our most recent annual report on Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission on February 26, 2021, 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.
ESTERO, Fla., June 10, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK:HTZGQ) ("Hertz" or the "Company") today announced that the Bankruptcy Court confirmed the Company’s Plan of Reorganization (the "Plan"). The Plan unimpairs all classes of creditors (who are legally deemed to have accepted it) and was approved by more than 97% of voting shareholders. The Court’s approval clears the way for Hertz to emerge from Chapter 11 by the end of June 2021.
As a result of its restructuring efforts, Hertz will emerge from Chapter 11 with a substantially stronger balance sheet and greater financial flexibility than it had prior to the onset of the COVID-19 pandemic, which forced Hertz to file for Chapter 11 relief in May 2020. Hertz’s Plan will eliminate over $5 billion of debt, including all of Hertz Europe’s corporate debt, and will provide more than $2.2 billion of global liquidity to the reorganized Company. Hertz also will emerge with (i) a new $2.8 billion exit credit facility consisting of at least $1.3 billion of term loans and a revolving loan facility, and (ii) an approximately $7 billion of asset-backed vehicle financing facility, each on favorable terms. The Plan provides for the payment in cash in full to all creditors and for existing shareholders to receive more than $1 billion of value.
Paul Stone, Hertz’s President and Chief Executive Officer, said: "With the Court’s approval of our Plan today and a committed new investor group, we are poised to exit Chapter 11 by the end of this month as a well-capitalized and even more competitive company, with the flexibility and resources to pursue exciting new growth opportunities. I want to thank our employees and teams around the world for their hard work, which has enabled us to continue taking great care of our customers. As the demand for rental cars continues to rise, we look forward to helping our customers travel confidently and safely as they get back out on the road, and to successfully building on Hertz’s more than 100-year history of quality service as one of the world’s best known brands."
For Court documents or filings, please visit https://restructuring.primeclerk.com/hertz or call (877) 428-4661 or (929) 955-3421. White & Case LLP is serving as legal advisor, Moelis & Co. is serving as investment banker, and FTI Consulting is serving as financial advisor.
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release contains "forward-looking statements" within the meaning of federal securities laws. Words such as "expect" and "intend" and similar expressions identify forward-looking statements, which include but are not limited to statements related to our liquidity and potential financing sources; the bankruptcy process; our ability to obtain approval from the Bankruptcy Court with respect to motions or other requests made to the Bankruptcy Court throughout the course of the Chapter 11 Cases; the effects of Chapter 11 on the interests of various constituents; and the ability to negotiate, develop, confirm and consummate a plan of reorganization. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including those in our risk factors that we identify in our most recent annual report on Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission on February 26, 2021, 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.
ESTERO, Fla., May 24, 2021 /PRNewswire/ — In honor of National Road Trip Day on May 28, Hertz surveyed more than 1,500 Americans to determine how and when they plan to put the pedal to the metal toward their next vacation.
The Great American Road Trip is Back More than 80% of people surveyed say they plan to take a road trip this summer and 86% agree they are more likely or as likely to hit the road compared to previous years.
Hertz Reveals Latest U.S. Summer Travel Insights for National Road Trip Day
Car Culture Overwhelmingly, 65% said that a rental car was the mode of transportation that made them feel the safest. While 45% of participants noted they would be flying somewhere first to start their road trip, nearly 29% of those surveyed said they prefer rental cars over taking their personal vehicle to avoid putting extra miles on their car. Others liked the idea of parking the minivan and renting a shiny convertible for the week.
"Our data shows summer road trips are shaping up to be more popular than ever before in 2021 and just in time for National Road Trip day, which kicks off the summer road trip season," said Laura Smith, Senior Vice President of Sales, Marketing and Customer Experience at Hertz. "People are ready to get out and make new memories, and we’re here to help them travel confidently with a safe, fast and easy rental experience."
Hit the Road Jack (in June!) Fifty-two percent of respondents plan to resume travel as early as June. That being said, respondents made it clear that a city/state’s COVID-19 restrictions remain a factor in the decision to travel there and face masks will be the top must-have item to pack this year.
In Search of Southern Hospitality While international travel will open up for travelers, a recent TripAdvisor study shows 74% of Americans that plan to travel this summer will stay within the U.S. Among the 81% of people surveyed who said they were taking a trip this summer, 42% are planning to travel to the South or Southeast, with the West coming in second at 32% followed by the Northeast at 24%. National parks or local attractions and beaches nearly tied in a following question.
The Evolution of Entertainment Over half of road trippers surveyed played I Spy, counted license plates or got semi-trucks to honk as their top entertainment choice for road trips as a kid. Now, instead of playing games, they are cranking up the tunes with 70% of respondents saying they listen to music via the radio or a streaming app as their top entertainment option.
Family First Seventy-one percent of respondents said road trips would not be complete without their spouse or significant other as their ideal companion. Nearly half of survey participants noted their summer road trip plans would take them to visit family, with an additional 35% saying they cannot wait to reconnect with friends when they’re ready to travel again, and Hertz is making that possible.
Maximize Every Summer Road Hertz is helping make the great American summer road trip possible this year with thousands of airport and convenient neighborhood locations across the country. In order to get the most out of your road trip this summer, the company is sharing its top tips for renting a car, including:
Rent from a Reputable Company: When choosing a rental car company, it’s best to rent from a reputable company you trust. Hertz pioneered the car rental industry more than 100 years ago and is one of the most recognized brands in the world. Hertz also has earned the No. 1 ranking for Customer Satisifaction in the J.D. Power North America Rental Car Customer Satisfaction Study for the past two consecutive years.
Plan Your Trip Ahead of Time: Reserve your rental car when making other travel arrangements like air and hotel. Rates are often more expensive the closer you get to time of renting so book early. Pre-paying for a car rental can also provide a savings of up to 20% at Hertz.
Consider Booking Outside of High-Volume Locations: If you need to book last minute and have flexibility, you may find car rental availability outside of high-volume areas during busy seasonal or holiday travel periods. Hertz has thousands of convenient locations in neighborhoods across the U.S., which offer a free pick-up service.
Join a Car Rental Loyalty Program: Join Hertz Gold Plus Rewards for free and enjoy special benefits that make your rental faster, easier and more rewarding. As a Gold Plus Rewards member, you can skip the counter at more than 50 airports worldwide and earn exclusive benefits, points toward free rentals, vehicle upgrades and more.
Choose the Right Car: Choose a car type based on the purpose of your trip and number of travelers, as well as accompanying luggage. At locations with Hertz Ultimate Choice, you can choose the exact car you want to drive from the car class you reserved or upgrade to a different one.
Familiarize Yourself with the Car: Before leaving the lot, find and operate all controls, know where USB ports are located, connect any cell phones to Bluetooth and turn on the radio for the upcoming drive.
Plan Your Return: Become familiar with the fueling options available at pick-up before leaving the rental lot. Hertz offers several convenient fueling options so you don’t have to worry about refueling the vehicle. Customers can also get on their way faster with Hertz’s Express Return service by simply providing a valid email address when booking or at the time of pickup.
To learn more and start planning a summer road trip, visit Hertz.com.
Hertz received the highest score in the J.D. Power 2019-2020 North America Rental Car Satisfaction Study of customers’ satisfaction with airport rental car experience. Visit jdpower.com/awards for more details
About Hertz Hertz, one of the most recognized brands in the world and currently ranked #1 in Customer Satisfaction by J.D. Power, has a long-standing legacy of providing a fast and easy experience designed to make every journey special. It starts with top-rated vehicles to fit every traveler’s needs, delivered with a caring touch and personalized services including its award-winning Hertz Gold Plus Rewards loyalty program, Ultimate Choice, Mobile Wi-Fi, and more. Wherever and whenever you need to go, at Hertz, we’re here to get you there. To learn more or reserve a vehicle, visit Hertz.com.
Hertz pioneered the car rental industry more than 100 years ago and today is owned by Hertz Global Holdings, Inc. which includes Dollar and Thrifty vehicle rental brands.
