Category: Press Release

ESTERO, Fla., May 12, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK:HTZGQ) ("Hertz" or the "Company") today announced that, following the completion of the auction previously approved by the Court in its Chapter 11 case, Hertz has selected and approved a revised proposal from certain funds and accounts managed by affiliates of each of Knighthead Capital Management LLC ("Knighthead"), Certares Opportunities LLC ("Certares") and Apollo Capital Management, LP ("Apollo" and together with Knighthead and Certares, the "KHCA Group") to provide the equity capital required to fund Hertz’s revised Plan of Reorganization and exit from Chapter 11. The proposed agreements with the KHCA Group, as well as any necessary modifications to the Plan and solicitation procedures, are subject to the approval of the Bankruptcy Court at a hearing scheduled for Friday, May 14, 2021.

Under the revised proposal, Hertz’s Chapter 11 plan will be funded through direct common stock investments from the KHCA Group and certain co-investors aggregating $2.781 billion, the issuance of $1.5 billion of new preferred stock to Apollo, and a fully backstopped rights offering to the Company’s existing shareholders to purchase $1.635 billion of additional common stock. The revised Plan would provide for the payment in cash in full of all administrative, priority, secured, and unsecured claims in the Chapter 11 cases and would deliver significant value to the Company’s existing shareholders including:

• $239 million of cash;
• common stock representing 3% of the shares of the reorganized Company (subject to dilution from warrants and equity issued under a new management incentive plan); and
• 30-year warrants for 18% of the common stock of the reorganized Company (subject to dilution by a new management incentive plan) with a strike price based on a total equity value of $6.5 billion, or the opportunity, for eligible shareholders, to subscribe for shares of common stock in the $1.635 billion rights offering at Plan equity value.

As previously announced, two investor groups have been competing to fund Hertz’s Chapter 11 exit. On April 21, the Bankruptcy Court overseeing Hertz’s Chapter 11 cases authorized Hertz to begin soliciting votes on its Chapter 11 plan and approved a group consisting of Centerbridge Partners L.P., Warburg Pincus LLC, Dundon Capital Partners, LLC and an ad hoc group of the Company’s unsecured noteholders (collectively, the "CWD Group") as the sponsors of the Plan. When it became apparent that the competition to sponsor the Company’s Plan would continue, the Company sought and obtained Court approval of bidding procedures and an auction process to ensure that it received the highest and best sponsorship proposal within a timeframe that would permit the Company to continue working toward a planned exit from Chapter 11 by June 30, 2021. A robust competition between the CWD Group and the KHCA Group ensued, concluding with the selection of the revised KHCA Group’s proposal late yesterday following the auction.

As with the CWD Group’s previous proposal, the KHCA Group’s proposal would eliminate approximately $5.0 billion of corporate debt (including the complete elimination of all corporate debt on Hertz’s European business) and provide the Company with over $2.2 billion of global liquidity. The KHCA Group’s proposal would also replace the bridge financing previously provided by the CWD Group to fund the Company’s European fleet needs prior to the Plan’s consummation. The debt funding commitments for Hertz’s Chapter 11 plan, which were approved by the Court earlier this week, will remain in place under the KHCA Proposal.

Paul Stone, Hertz’s President and Chief Executive Officer, commented, "We are very pleased that our Plan process produced such a tremendous result for our creditors and shareholders. We appreciate the strong interest in Hertz from the competing Plan sponsors and thank them for their active engagement, which provided us with excellent options for our exit from Chapter 11. We look forward to working with the KHCA Group to complete the remaining steps in our restructuring and best position Hertz for the future.

"Our proposed Plan provides a robust recovery and excellent value for all of our stakeholders and enables Hertz to emerge as a much stronger, more competitive company," continued Mr. Stone. "During our restructuring, we have made material improvements in our operational efficiency and have built added cost discipline into our business. Now, we look forward to implementing our Chapter 11 plan, which will substantially strengthen our financial structure by eliminating 79% of our corporate debt. We are well-positioned to take advantage of increasing global travel demand and new long-term growth opportunities. We are excited about Hertz’s future and the benefits for all of our stakeholders – including our employees and customers as well as our investors, franchisees and business partners."

The proposed deal with the KHCA Group is reflected in definitive documents executed by the Plan sponsors, including (1) an Equity Purchase and Commitment Agreement, (2) a Plan Support Agreement, (3) a Bridge Financing Commitment for Hertz International Ltd., and (4) an Amended Chapter 11 Plan of Reorganization. These documents, together with an amended Disclosure Statement, will be filed with the Bankruptcy Court later today. If the Bankruptcy Court approves the revised agreements with the KHCA Group at the hearing scheduled for May 14, the Company would terminate its agreements with its existing Plan sponsorship group (which remain in effect) and execute the new agreements with the KHCA Group.

A Court hearing to confirm Hertz’s Plan of Reorganization is scheduled for June 10.

For Court documents or filings, please visit https://restructuring.primeclerk.com/hertz or call (877) 428-4661 (toll-free in the U.S.) or (929) 955-3421 (from outside the U.S.). 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.

SOURCE Hertz Global Holdings, Inc.

ESTERO, Fla., May 7, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK:HTZGQ) ("Hertz Global" or the "Company") today reported results for its first quarter 2021 with revenue of $1.3 billion, net income attributable to the Company of $190 million and Adjusted Corporate EBITDA of $2 million. Liquidity at the end of the first quarter was $1.1 billion.

"This quarter we realized the first effects of the leisure travel rebound and capitalized on strong demand-driven pricing in destination markets that exceeded 2019 levels," said Paul Stone, Hertz Global’s President and Chief Executive Officer. "We’re continuing to see improved demand and are optimistic about a sustained recovery. We’re actively replenishing our fleet, despite the constraints of the global semiconductor shortage and its impact on the automotive supply chain. Most importantly, I’m exceptionally proud of our employees who are working tirelessly to serve our customers as they’re ready to be on the road again."

During the quarter, the Company closed on the sale of substantially all of the assets of its Donlen vehicle leasing and fleet management business to Athene Holding Ltd for $891 million in cash proceeds, subject to certain adjustments.

"Notably, we are also making great progress towards concluding the bankruptcy process," continues Stone. "We are actively engaged with potential plan sponsor groups which we anticipate will deliver a robust recovery for creditors and shareholders. We remain on track to emerge in June and are poised to do so with more efficient operations and a stronger balance sheet for the future."

U.S. RENTAL CAR ("U.S. RAC") SUMMARY

U.S. RAC	Three Months Ended March 31,								Percent Inc/(Dec)
($ in millions, except where noted)	2021				2020
Total revenues	$	946			$	1,381			(32)	%
Adjusted EBITDA	$	24			$	(199)			NM
Adjusted EBITDA Margin	3		%		(14)		%
Average Vehicles (in whole units)	292,154				518,580				(44)	%
Vehicle Utilization	75		%		67		%
Transaction Days (in thousands)	19,776				31,564				(37)	%
Total RPD (in whole dollars)	$	47.63			$	42.74			11	%
Total RPU Per Month (in whole dollars)	$	1,075			$	867			24	%
Depreciation Per Unit Per Month (in whole dollars)	$	234			$	298			(21)	%

NM – Not meaningful

U.S. RAC revenue declined 32% period over period due to lower volume, partially offset by an 11% increase in Total RPD. Strong pricing during the quarter was driven by tighter fleet levels combined with upward trending leisure travel.

Depreciation Per Unit Per Month decreased 21%, driven by strength in market residual values.

Direct operating and selling, general and administration expenses declined 33% year over year as the Company continued to drive productivity, aligning costs with demand.

Despite revenue headwinds from the pandemic, U.S. RAC Adjusted EBITDA margin was at its highest first quarter level since 2015.

INTERNATIONAL RENTAL CAR ("INTERNATIONAL RAC") SUMMARY

International RAC	Three Months Ended March 31,								Percent Inc/(Dec)
($ in millions, except where noted)	2021				2020
Total revenues	$	207			$	368			(44)	%
Adjusted EBITDA	$	(6)			$	(45)			(86)	%
Adjusted EBITDA Margin	(3)		%		(12)		%
Average Vehicles (in whole units)	75,446				147,987				(49)	%
Vehicle Utilization	72		%		66		%
Transaction Days (in thousands)	4,872				8,863				(45)	%
Total RPD (in whole dollars)	$	42.49			$	45.57			(7)	%
Total RPU Per Month (in whole dollars)	$	915			$	910			1	%
Depreciation Per Unit Per Month (in whole dollars)	$	168			$	220			(24)	%

Total International RAC revenues were down 49% year over year on a constant currency basis. A mix shift in volume from airport rentals to longer-length, lower-priced off-airport rentals contributed to a 7% decrease in Total RPD versus first quarter 2020.

Depreciation Per Unit Per Month decreased 24%, driven by strong residual values across key markets.

Direct operating and selling, general and administration expenses declined 43% year over year as the Company continued to drive productivity, aligning costs with demand.

Adjusted EBITDA loss of $6 million reflects an impressive 86% improvement year over year.

ALL OTHER OPERATIONS SUMMARY

All Other Operations	Three Months Ended March 31,								Percent Inc/(Dec)
($ in millions, except where noted)	2021				2020
Total revenues	$	136			$	174			(22)	%
Adjusted EBITDA	$	13			$	24			(46)	%
Adjusted EBITDA Margin	10		%		14		%
Average Vehicles (in whole units) – Donlen	182,362				201,364				(9)	%

All Other Operations primarily is comprised of the Company’s Donlen leasing and fleet management operations. Revenue and Adjusted EBITDA declines were driven by lower leasing volume year over year.

On March 30, 2021, the Company sold substantially all of the assets of its Donlen business to Athene Holding Ltd. and recognized a pre-tax gain in its corporate operations of $392 million .

RESULTS OF THE HERTZ CORPORATION

The GAAP and non-GAAP profitability metrics for Hertz Global’s operating subsidiary, The Hertz Corporation ("Hertz"), are materially the same as those for Hertz Global for the first quarter 2021 and 2020.

FINANCIAL REORGANIZATION

As previously announced, on May 22, 2020, Hertz Global and Hertz (together, the "Companies") 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 (the "Reorganization").

The Reorganization provides the time to put in place a new, stronger financial foundation to move successfully through the COVID-19 pandemic and to better position the Companies for the future. Throughout the Reorganization process, all of Hertz’s businesses globally, including its Hertz, Dollar, Thrifty, Firefly, and Hertz Car Sales, are open and serving customers. All reservations, promotional offers, vouchers, and customer and loyalty programs, including rewards points, are expected to continue as usual.

Information related to the Reorganization is included in the Hertz Global and Hertz Form 10-Qs for the quarterly period ended March 31, 2021 filed with the Securities and Exchange Commission ("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

Following is selected financial data of Hertz Global. Also included are Supplemental Schedules, which are provided to present segment results, and reconciliations of non-GAAP measures to their most comparable GAAP measure. Following the Supplemental Schedules, the Company provides definitions for terminology used throughout this earnings release and provides the usefulness of non-GAAP measures to investors and additional purposes for which management uses such measures.

ABOUT HERTZ

The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands 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

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 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 Forms 10-K, 10-Q and 8-K filed or furnished to the SEC. Among other items, such factors could include: the Company’s ability to navigate the Chapter 11 process, including obtaining Bankruptcy Court approval for certain actions, complying with and operating under the requirements and constraints of the Bankruptcy Code, developing, funding and executing the Company’s business plan and continuing as a going concern; the actions and decisions of creditors, regulators and other third parties that have an interest in the Chapter 11 cases; our ability to effectuate the Chapter 11 plan of reorganization described in the plan support agreement with certain of our creditors; the impact of the Company’s delisting from the New York Stock Exchange on the Company’s stockholders; the value of the Company’s common stock due to the Chapter 11 process or its treatment under the Fourth Modified Second Amended Joint Chapter 11 Plan of Reorganization of the Debtors filed on April 21, 2021; 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 Company’s ability to successfully restructure the Company’s substantial indebtedness or raise additional capital; the Company’s post-bankruptcy capital structure; the Company’s ability to remediate the material weaknesses in our 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 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 DIP 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, 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 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 semiconductor microchip manufacturing 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; the Company’s ability to retain customer loyalty and market share; risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anti-corruption or anti-bribery laws, 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, which could have an effect on operating results; and other risks and uncertainties described from time to time in periodic and current reports that we file 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 From 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 Quarterly Report on Form 10-Q, 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 March 31,								As a Percentage of Total Revenues
(In millions, except per share data)	2021				2020				2021			2020
Total revenues	$	1,289			$	1,923			100	%		100	%
Expenses:
Direct vehicle and operating	827				1,241				64	%		65	%
Depreciation of revenue earning vehicles and lease charges	243				677				19	%		35	%
Selling, general and administrative	156				208				12	%		11	%
Interest expense, net:
Vehicle	104				118				8	%		6	%
Non-vehicle	44				57				3	%		3	%
Total interest expense, net	148				175				11	%		9	%
Other (income) expense, net	(3)				(17)				—	%		(1)	%
Reorganization items, net	42				—				3	%		—	%
(Gain) from the sale of a business	(392)				—				30	%		—	%
Total expenses	1,021				2,284				79	%		119	%
Income (loss) before income taxes	268				(361)				21	%		(19)	%
Income tax (provision) benefit	(79)				4				(6)	%		—	%
Net income (loss)	189				(357)				15	%		(19)	%
Net (income) loss attributable to noncontrolling interests	1				1				—	%		—	%
Net income (loss) attributable to Hertz Global	$	190			$	(356)			15	%		(19)	%
Weighted-average number of shares outstanding:
Basic	156				142
Diluted	157				142
Earnings (loss) per share:
Basic	$	1.22			$	(2.50)
Diluted	$	1.21			$	(2.50)
Adjusted Net Income (Loss)(a)	$	(52)			$	(253)
Adjusted Diluted Earnings (Loss) Per Share(a)	$	(0.33)			$	(1.78)
Adjusted Corporate EBITDA(a)	$	2			$	(243)

(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 March 31, 2021																				Three Months Ended March 31, 2020
(In millions)	U.S. Rental Car				Int’l Rental Car				All Other Operations				Corporate				Hertz Global				U.S. Rental Car				Int’l Rental Car				All Other Operations				Corporate				Hertz Global
Total revenues:	$	946			$	207			$	136			$	—			$	1,289			$	1,381			$	368			$	174			$	—			$	1,923
Expenses:
Direct vehicle and operating	670				141				7				9				827				969				265				7				—				1,241
Depreciation of revenue earning vehicles and lease charges	205				38				—				—				243				463				89				125				—				677
Selling, general and administrative	51				36				10				59				156				115				48				(4)				49				208
Interest expense, net:
Vehicle	71				21				12				—				104				86				21				11				—				118
Non-vehicle	(2)				1				1				44				44				(47)				(1)				(5)				110				57
Total interest expense, net	69				22				13				44				148				39				20				6				110				175
(Gain) from the sale of a business	—				—				—				(392)				(392)				—				—				—				—				—
Other (income) expense, net	(1)				—				—				(2)				(3)				(20)				3				—				—				(17)
Reorganization items, net	(14)				—				(1)				57				42				—				—				—				—				—
Total expenses	980				237				29				(225)				1,021				1,566				425				134				159				2,284
Income (loss) before income taxes	$	(34)			$	(30)			$	107			$	225			$	268			$	(185)			$	(57)			$	40			$	(159)			$	(361)
Income tax (provision) benefit																	(79)																				4
Net income (loss)																	$	189																			$	(357)
Net (income) loss attributable to noncontrolling interests																	1																				1
Net income (loss) attributable to Hertz Global																	$	190																			$	(356)

Supplemental Schedule II
HERTZ GLOBAL HOLDINGS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURE – ADJUSTED NET INCOME (LOSS), ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE AND ADJUSTED CORPORATE EBITDA Unaudited
	Three Months Ended March 31,
(In millions, except per share data)	2021				2020
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share:
Net income (loss) attributable to Hertz Global	$	190			$	(356)
Adjustments:
Income tax provision (benefit)	79				(4)
Vehicle and non-vehicle debt-related charges(a)	35				12
Restructuring and restructuring related charges(b)	12				7
Information technology and finance transformation costs(c)	6				17
Acquisition accounting-related depreciation and amortization(d)	13				14
Reorganization items, net(e)	42				—
Pre-reorganization and non-debtor financing charges(f)	23				—
Gain from the Donlen Sale(g)	(392)				—
Other items(h)	(87)				(27)
Adjusted pre-tax income (loss)(i)	(79)				(337)
Income tax (provision) benefit on adjusted pre-tax income (loss)(j)	27				84
Adjusted Net Income (Loss)	$	(52)			$	(253)
Weighted-average number of diluted shares outstanding	157				142
Adjusted Diluted Earnings (Loss) Per Share(k)	$	(0.33)			$	(1.78)
Adjusted Corporate EBITDA:
Net income (loss) attributable to Hertz Global	$	190			$	(356)
Adjustments:
Income tax provision (benefit)	79				(4)
Non-vehicle depreciation and amortization(l)	54				53
Non-vehicle debt interest, net of interest income	44				57
Vehicle debt-related charges(a)(m)	28				9
Restructuring and restructuring related charges(b)	12				7
Information technology and finance transformation costs(c)	6				17
Reorganization items, net(e)	42				—
Pre-reorganization and non-debtor financing charges(f)	23				—
(Gain) from the Donlen Sale(g)	(392)				—
Other items(h)(n)	(84)				(26)
Adjusted Corporate EBITDA	$	2			$	(243)

Supplemental Schedule II (continued)
(b)	Represents charges incurred under restructuring actions as defined in U.S. GAAP, excluding impairments and asset write-downs. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives.
(c)	Represents costs associated with the Company’s information technology and finance transformation programs, both of which are multi-year initiatives to upgrade and modernize the Company’s systems and processes. These costs relate primarily to the Company’s corporate operations ("Corporate")..
(d)	Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.
(e)	Represents charges incurred associated with the Reorganization, including professional fees. The charges relate primarily to Corporate.
(f)	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. For U.S. RAC, International RAC, All Other Operations and Corporate charges incurred for the three months ended March 31, 2021 are $9 million, $2 million, $2 million and $10 million, respectively.
(g)	Represents the gain from the sale of the Company’s Donlen business on March 30, 2021, primarily associated with the Company’s corporate operations.
(h)	Represents miscellaneous items. In 2021, includes $100 million due to U.S. GAAP accounting treatment associated with the Donlen Sale in All Other Operations, partially offset by charges for a multiemployer pension plan withdrawal liability in the Company’s corporate operations. In 2020, includes a $20 million gain on the sale of non-vehicle capital assets in U.S. RAC and $13 million in unrealized gains on derivative financial instruments in All Other Operations.
(i)	Adjustments by caption on a pre-tax basis are as follows:

Increase (decrease) to expenses	Three Months Ended March 31,
(In millions)	2021				2020
Direct vehicle and operating	$	87			(16)
Selling, general and administrative	(31)				(8)
Interest expense, net:
Vehicle	(39)				(9)
Non-vehicle	(7)				(3)
Total interest expense, net	(46)				(12)
Other income (expense), net	(12)				13
Reorganization items, net	(42)				—
Gain from the Donlen Sale	392				—
Total adjustments	$	348			(23)

(j)	Derived utilizing a combined statutory rate of 34% and 25% for the three months ended March 31, 2021 and 2020, respectively, applied to the respective Adjusted Pre-tax Income (Loss).
(k)	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.
(l)	Non-vehicle depreciation and amortization expense for U.S. RAC, International RAC, All Other Operations and Corporate for the three months ended March 31, 2021 are $43 million, $6 million, $2 million and $3 million, respectively, and for the three months ended March 31, 2020 are $41 million, $5 million, $2 million and $5 million, respectively.
(m)	Vehicle debt-related charges for U.S. RAC, International RAC and All Other Operations for the three months ended March 31, 2021 are $21 million, $5 million and $2 million, respectively, and for the three months ended March 31, 2020 are $6 million, $2 million, and $1 million, respectively.
(n)	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 U.S. Rental Car
	Three Months Ended March 31,								Percent Inc/(Dec)
($ in millions, except where noted)	2021				2020
Total RPD
Total revenues	$	946			$	1,381
Ancillary retail vehicle sales revenue	(4)				(32)
Total Rental Revenues	$	942			$	1,349
Transaction Days (in thousands)	19,776				31,564
Total RPD (in whole dollars)	$	47.63			$	42.74			11	%
Total Revenue Per Unit Per Month
Total Rental Revenues	$	942			$	1,349
Average Vehicles (in whole units)	292,154				518,580
Total revenue per unit (in whole dollars)	$	3,224			$	2,601
Number of months in period (in whole units)	3				3
Total RPU Per Month (in whole dollars)	$	1,075			$	867			24	%
Vehicle Utilization
Transaction Days (in thousands)	19,776				31,564
Average Vehicles (in whole units)	292,154				518,580
Number of days in period (in whole units)	90				91
Available Car Days (in thousands)	26,294				47,191
Vehicle Utilization(a)	75		%		67		%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges	$	205			$	463
Average Vehicles (in whole units)	292,154				518,580
Depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$	702			$	893
Number of months in period (in whole units)	3				3
Depreciation Per Unit Per Month (in whole dollars)	$	234			$	298			(21)	%

(a) 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 Rental Car
	Three Months Ended March 31,								Percent Inc/(Dec)
($ in millions, except where noted)	2021				2020
Total RPD
Total revenues	$	207			$	368
Foreign currency adjustment(a)	—				36
Total Rental Revenues	$	207			$	404
Transaction Days (in thousands)	4,872				8,863
Total RPD (in whole dollars)	$	42.49			$	45.57			(7)	%
Total Revenue Per Unit Per Month
Total Rental Revenues	$	207			$	404
Average Vehicles (in whole units)	75,446				147,987
Total revenue per unit (in whole dollars)	$	2,744			$	2,730
Number of months in period (in whole units)	3				3
Total RPU Per Month (in whole dollars)	$	915			$	910			1	%
Vehicle Utilization
Transaction Days (in thousands)	4,872				8,863
Average Vehicles (in whole units)	75,446				147,987
Number of days in period (in whole units)	90				91
Available Car Days (in thousands)	6,790				13,467
Vehicle Utilization(b)	72		%		66		%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges	$	38			$	89
Foreign currency adjustment(a)	—				9
Adjusted depreciation of revenue earning vehicles and lease charges	$	38			$	98
Average Vehicles (in whole units)	75,446				147,987
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$	504			$	662
Number of months in period (in whole units)	3				3
Depreciation Per Unit Per Month (in whole dollars)	$	168			$	220			(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 March 31,								Percent Inc/(Dec)
($ in millions, except where noted)	2021				2020
Total RPD
Total revenues	$	1,153			$	1,749
Ancillary retail vehicle sales revenue	(4)				(32)
Foreign currency adjustment(a)	—				36
Total Rental Revenues	$	1,149			$	1,753
Transaction Days (in thousands)	24,648				40,427
Total RPD (in whole dollars)	$	46.62			$	43.36			8	%
Total Revenue Per Unit Per Month
Total Rental Revenues	$	1,149			$	1,753
Average Vehicles (in whole units)	367,600				666,567
Total revenue per unit (in whole dollars)	$	3,126			$	2,630
Number of months in period (in whole units)	3				3
Total RPU Per Month (in whole dollars)	$	1,042			$	877			19	%
Vehicle Utilization
Transaction Days (in thousands)	24,648				40,427
Average Vehicles (in whole units)	367,600				666,567
Number of days in period (in whole units)	90				91
Available Car Days (in thousands)	33,084				60,658
Vehicle Utilization(b)	75		%		67		%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges	$	243			$	552
Foreign currency adjustment(a)	—				9
Adjusted depreciation of revenue earning vehicles and lease charges	$	243			$	561
Average Vehicles (in whole units)	367,600				666,567
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$	661			$	842
Number of months in period (in whole units)	3				3
Depreciation Per Unit Per Month (in whole dollars)	$	221			$	280			(21)	%
Note: Worldwide Rental Car represents U.S. Rental Car and International Rental Car segment information on a combined basis and excludes the All Other Operations segment, which is primarily comprised of the Company’s Donlen leasing operations, and Corporate.
(a) Based on December 31, 2020 foreign exchange rates.
(b) Calculated as Transaction Days divided by Available Car Days.

NON-GAAP MEASURES AND KEY METRICS

Hertz Global is the top-level holding company that indirectly wholly owns The Hertz Corporation (together, the "Company"). The term "GAAP" refers to accounting principles generally accepted in the United States of America. Adjusted EBITDA is the Company’s segment measure of profitability and complies with GAAP when used in that context.

NON-GAAP MEASURES

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

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

Adjusted Net Income (Loss) represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax, debt-related charges and losses, restructuring and restructuring related charges, intangible and tangible asset impairments and write-downs, information technology and finance transformation costs, non-cash acquisition accounting charges, 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 to management because they allow management to assess operational performance of the Company’s business, exclusive of the items mentioned above that are not operational in nature or comparable to those of the Company’s competitors.

Adjusted Corporate EBITDA and Adjusted Corporate EBITDA Margin

Adjusted Corporate EBITDA represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax, non-vehicle depreciation and amortization, net non-vehicle debt interest, vehicle debt-related charges and losses, restructuring and restructuring related charges, goodwill, intangible and tangible asset impairments and write-downs, information technology and finance transformation costs, 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 to facilitate analysis of investment decisions, profitability and performance trends. These measures enable management and investors to isolate the effects on profitability of operating metrics most meaningful to the business of renting and leasing vehicles. They also allow management to assess the performance of the entire business on the same basis as its reportable segments. Adjusted Corporate EBITDA is also utilized in the determination of certain executive compensation. Its most comparable GAAP measure is net income (loss) attributable to the Company.

KEY METRICS

Available Car Days

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

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

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

Depreciation Per Unit Per Month

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

Total Rental Revenues

Total Rental Revenues represents total revenues less ancillary retail vehicle sales revenues, with all periods adjusted to eliminate the effect of fluctuations in foreign currency exchange rates. Management believes eliminating the effect of fluctuations in foreign currency exchange rates is appropriate so as not to affect the comparability of underlying trends. This metric is important to management and investors as it represents a measurement that excludes the impact of ancillary revenues resulting from vehicle sales and facilitates in comparisons with other participants in the vehicle rental industry.

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

Total RPD represents the ratio of Total Rental Revenues to Transaction Days. This metric is important to management and investors as it represents a measurement of the changes in underlying pricing in the vehicle rental business and encompasses the elements in vehicle rental pricing that management has the ability to control.

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

Total RPU Per Month represents the amount of average Total Rental Revenues per vehicle per month. This metric is important to management and investors as it provides a measure of revenue productivity relative to fleet capacity, or asset efficiency.

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

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

Vehicle Utilization ("Utilization")

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

SOURCE Hertz Global Holdings, Inc.

ESTERO, Fla., May 5, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK:HTZGQ) ("Hertz" or the "Company") today announced that it has considered the revised proposal made by affiliates of Knighthead Capital Management LLC, Certares Opportunities LLC and Apollo Capital Management, LP (the "KHC Group") to provide equity capital required to fund Hertz’s exit from Chapter 11. Hertz has determined that the revised proposal constitutes a superior proposal as contemplated by its agreement with its existing plan sponsors, affiliates of Centerbridge Capital Partners, L.P., Warburg Pincus LLC and Dundon Capital Partners, LLC (the "Current Plan Sponsors"), which agreement remains in effect.

Hertz will comply with the procedures established by the Bankruptcy Court’s April 28, 2021 Order (I) Establishing Bidding and Auction Procedures Relating to the Submission of Alternative Plan Proposals, (II) Setting a Hearing for Approval of (A) The Successful Bidder and (B) Authorization of Supplemental Solicitation Materials and (III) Granting Related Relief governing Hertz’s evaluation of the alternatives. If the Current Plan Sponsors inform Hertz by May 7, 2021 that the Current Plan Sponsors intend to make a counteroffer to the proposal by the KHC Group, then the Company will proceed to an auction on May 10, 2021 in accordance with the process established by the Bankruptcy Court.

For Court documents or filings, please visit https://restructuring.primeclerk.com/hertz or call (877) 428-4661 (toll-free in the U.S.) or (929) 955-3421 (from outside the U.S.). 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.

SOURCE Hertz Global Holdings, Inc.

Related Links

https://www.hertz.com

ESTERO, Fla., April 3, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK:HTZGQ) ("Hertz" or the "Company") announced today that it has selected an enhanced proposal from Centerbridge Partners, L.P., Warburg Pincus LLC, and Dundon Capital Partners, LLC (collectively, the "Sponsorship Group") to provide the equity capital required to fund Hertz’s exit from Chapter 11, keeping the Company on track to conclude its Chapter 11 case in June 2021. The deal is reflected in definitive executed documents, including, (1) an Equity Purchase and Commitment Agreement, (2) a Plan Support Agreement, (3) a Bridge Financing Commitment for Hertz International Ltd., (4) an Amended Chapter 11 Plan of Reorganization (the "Plan"), and (5) an amended Disclosure Statement (collectively, the "Transaction Documents"), which have been filed with the Delaware Bankruptcy Court presiding over Hertz’s Chapter 11 case.

The proposed transaction, which remains subject to approval by the Bankruptcy Court, is supported by holders of over 85% of the Company’s unsecured notes (the "Supporting Noteholders"), which comprise the vast majority of creditors in the largest class of claims voting on the Plan. As disclosed earlier this week, the two leading proposals under consideration had been advanced to the point where either one would leave the Company in a significantly strengthened financial position. Both would provide bridge financing to fund the Company’s European fleet needs prior to the Plan’s consummation. At exit, under both proposals, the Company would eliminate approximately $5 billion of debt, have over $2 billion of global liquidity, and completely eliminate all corporate debt on its European business. The level of creditor support for the Sponsorship Group’s proposal gave it the clear advantage. The proposal maximizes the Company’s opportunity to capitalize on the current market conditions for the financing of its business going forward and to exit Chapter 11 in a timely and efficient fashion.

Paul Stone, President and Chief Executive, said: "We are pleased to be moving forward with an enhanced proposal supported by our largest creditor constituency and that delivers excellent value to all our stakeholders. This plan accomplishes all the goals we set out to achieve through our financial restructuring. Our new sponsors combined with our strong leadership team will bring significant operational experience across fleet financing and management, which will benefit all of our stakeholders. We look forward to emerging from Chapter 11 in the second quarter financially and operationally stronger, and well-positioned to achieve the opportunities in the rebounding travel market."

As set forth in the Transaction Documents, the Supporting Noteholders have agreed to support the exchange of the unsecured funded debt claims against the Company for approximately 48.2% of the equity in the reorganized company and the right to purchase an additional $1.6 billion of equity to fund the Plan. The Supporting Noteholders have also committed to purchase, or otherwise backstop, the full $1.6 billion of equity being offered to the holders of the Company’s unsecured funded debt. The holders of the Company’s €725 million European vehicle notes will be paid in cash in full under the Plan; their guaranty claims against the U.S. entities will be unimpaired and the balance of their debt will be paid by the issuer, Hertz Holdings Netherlands BV. Holders of general unsecured claims will receive a cash payment estimated to provide a recovery of approximately 75 percent. Administrative, priority, and secured claims will be paid in cash in full. In addition, the Company’s existing equity will be cancelled and receive no distribution.

The Sponsorship Group brings unique operational expertise as strategic partners to the Company. They have extensive experience across the automotive, rental, and travel sectors, including with companies such as Santander Consumer USA (SCUSA), Dana Incorporated, and Car Trade.

The selection of the Sponsorship Group reflects the culmination of a robust competitive process and series of negotiations that began in November 2020. The Company believes that through this competitive process they have maximized value for all stakeholders. The next step will be for the Bankruptcy Court to consider approving the terms of the Sponsorship Group’s proposed investment, the Disclosure Statement with respect to the Plan, and related creditor solicitation materials and procedures. All such matters are currently scheduled to be heard on April 16. Assuming Court approval, the Disclosure Statement and Plan will then be sent to Hertz’s creditors for a vote, and the Court will hold a hearing to consider confirmation of the Plan.

For the Court documents or filings, please visit https://restructuring.primeclerk.com/hertz or call (877) 428-4661 (toll-free in the U.S.) or (929) 955-3421 (from outside the U.S.). 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.

SOURCE Hertz Global Holdings, Inc.

Related Links

https://www.hertz.com

ESTERO, Fla., March 30, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK:HTZGQ) ("Hertz" or the "Company") announced today that it has made all of the required court filings in its Chapter 11 case needed to continue the process it initiated at the beginning of March 2021 to exit Chapter 11 in June 2021. The filings also report on the status of ongoing negotiations regarding funding the Company’s proposed Plan of Reorganization (the "Plan").

The Plan, as initially filed on March 1, 2021, contemplated a $4.2 billion equity infusion from affiliates of Certares Opportunities LLC and Knighthead Capital Management, LLC (the "Plan Sponsorship Proposal") to fund the payment in cash in full of all senior claims and a 70-cent payout to the Company’s unsecured creditors. Prior to filing its initial Plan, Hertz had received interest from a number of parties to provide the equity capital needed to fund its Chapter 11 exit, including a proposal from Centerbridge Partners, L.P., Warburg Pincus LLC, and Dundon Capital Partners (collectively, the "Alternate Plan Sponsorship Proposal"). Based on its assessment of the proposals received and all of the information then available, Hertz believed that the Plan Sponsorship Proposal would support a value-maximizing conclusion to its Chapter 11 case, while also providing the best opportunity for an efficient and timely exit from Chapter 11.

Based on events that have occurred since the initial Plan filing, including (1) material modifications and improvements to both sponsorship proposals, (2) the fact that both proposals remain subject to certain contingencies, including final documentation, and (3) input received from holders of over 80% of Hertz’s approximately $2.7 billion of unsecured notes, Hertz has determined to continue the process of negotiating the terms on which its Plan will be sponsored without delaying its goal of exiting Chapter 11 by early to mid-summer. This ongoing iterative and competitive process is reflected in the court filings Hertz made last night. The Company expects to file one or more amendments to the documents filed yesterday to incorporate the terms of a finalized sponsorship proposal once selected.

Under the current terms of both proposals, upon exit from Chapter 11, the Company would:

(1) have at most approximately $1.3 billion of corporate debt,

(2) be provided with over $2 billion of global liquidity,

(3) obtain a new asset-backed securitization facility that would pay in full all existing obligations related to Hertz’s U.S. vehicle fleet and provide the funding needed to meet Hertz’s ongoing fleet requirements, and

(4) satisfy in full all debt obligations associated with the Company’s European business, leaving it debt-free.

Both proposals also currently contemplate that the Company will emerge from Chapter 11 as a publicly-traded company, with up to approximately 80% of its shares owned by the holders of its U.S. unsecured funded debt obligations. The equity capital required to fund the Plan will, in both cases, be funded by (a) direct purchases of equity in the reorganized company by the plan sponsors or their affiliates, and (b) the proceeds of an offering to the holders of the Company’s unsecured funded debt to purchase common shares that will be fully backstopped by either the plan sponsors or certain holders of the unsecured notes. General unsecured creditors will receive a cash distribution of approximately 80 cents on the dollar under the Plan Sponsorship Proposal and approximately 75 cents on the dollar under the Alternate Plan Sponsorship Proposal. Additionally, the holders of the Company’s unsecured funded debt would receive common equity in the reorganized company. The Company’s existing common shares would be cancelled.

Paul Stone, President and Chief Executive, said: "We’re fortunate to be in a position to choose between two proposals that will strengthen the Company by eliminating approximately $5 billion of corporate debt and providing us with the liquidity to execute on our business plan, while also delivering excellent value for our creditors and stakeholders. We are encouraged that our creditors would prefer to invest in the reorganized company, rather than receive a cash payout. Others are seeing what we already know – Hertz is an incredible company with tremendous growth potential. Once the proposals have been finalized and we receive further input from our creditors, we will work with our financial and legal advisors to quickly determine which of these excellent options will fund our plan. We remain committed to completing the reorganization process in the second quarter and emerging from Chapter 11 well positioned for the upcoming summer season."

Hertz anticipates that it will finalize the proposals imminently and that, after consulting with its stakeholders, including the Ad Hoc Group of Unsecured Noteholders and the Official Committee of Unsecured Creditors, it will select a Plan sponsor and amend its court filings accordingly in the coming days. The next step will be for the Bankruptcy Court to consider approving the terms of the selected Plan sponsors’ proposed investment, the Disclosure Statement with respect to the Plan, and related creditor solicitation materials and procedures. All such matters are currently scheduled to be heard on April 16. Assuming Court approval, the Disclosure Statement and Plan will then be sent to Hertz’s creditors for a vote, and the Court will hold a hearing to consider confirmation of the Plan.

For the Court documents or filings, please visit https://restructuring.primeclerk.com/hertz or call (877) 428-4661 (toll-free in the U.S.) or (929) 955-3421 (from outside the U.S.). 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.

SOURCE Hertz Global Holdings, Inc.

ESTERO, Fla. and HAMILTON, Bermuda, March 30, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK: HTZGQ) today announced the successful completion of the sale of substantially all of the assets of its wholly-owned subsidiary, Donlen Corporation ("Donlen") to Athene Holding Ltd. ("Athene") (NYSE: ATH). Hertz received $891 million in cash proceeds per the terms of the transaction, subject to certain adjustments post-closing based on the level of assumed indebtedness, working capital and fleet equity. Moving forward, Athene plans to invest behind the Donlen platform to support the continued growth and strength of the business. As a leading insurance company with more than $200 billion of assets under management, Athene provides a stable and long-term capital base, which will allow Donlen to expand capabilities, grow the team, and continue the Company’s award-winning customer service.

Hertz President and CEO Paul Stone said, "Hertz is very pleased with the successful outcome of the sale process for Donlen, which marks another significant accomplishment in our financial restructuring. We are pleased to have maximized Donlen’s value and are making excellent progress on our financial and operational initiatives as we reposition Hertz for the future. We wish the entire Donlen team continued success under Athene’s ownership."

Athene Chairman and CEO Jim Belardi said, "We are confident that pairing Donlen’s expertise in fleet management with Athene’s strategic investment will result in a positive outcome for all parties involved. With our support, Donlen will be able to enhance their client experience and continue to grow their presence as a fleet management leader. This investment is squarely in line with our strategy of sourcing attractive, differentiated long-term investments that deliver strong and consistent returns for our growing portfolio. We look forward to partnering with Tom and the rest of Donlen’s management team to help position the company for long-term success."

Donlen President Tom Callahan said, "I want to thank our dedicated employees for their commitment to providing best-in-class service to our customers. We are thrilled to gain the confidence and support of Athene, who believes deeply in our business and our people. Donlen will be even better positioned for the future as an industry leader with Athene’s investments in our proprietary tools, data management capabilities, and our focus on exceptional customer service, and we look forward to a bright future together."

White & Case LLP served as Hertz’s legal advisor, Moelis & Company LLC served as investment banker, and FTI Consulting served as Hertz’s 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 American, 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. 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, visit www.hertz.com.

About Donlen

Headquartered in Bannockburn, Ill., Donlen develops innovative fleet management technology solutions and offers a proactive, hands-on approach to customer service. Donlen has been named one of the Best and Brightest Companies to Work For® in Chicago and in the Nation for six consecutive years. For more than 55 years, Donlen has empowered its customers to focus on their core business and drive continuous improvement in their fleet’s operational and financial performance. For more information about Donlen’s best-in-class fleet management solutions, visit www.donlen.com.

About Athene

Athene Holding Ltd. (NYSE: ATH), through its subsidiaries, is a leading financial services company with total assets of $202.8 billion as of December 31, 2020 and operations in the United States, Bermuda, and Canada. Athene specializes in helping its customers achieve financial security and is a solutions provider to institutions. Founded in 2009, Athene is Driven to Do More for its policyholders, business partners, shareholders, and the communities in which they work and live. For more information, please visit www.athene.com.

Cautionary Statement Concerning 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 the expected benefits of the transaction (including anticipated synergies, projected financial information and future opportunities) and any other statements regarding future expectations, beliefs, plans, objectives, results of operations, financial condition and cash flows, or future events or performance of either Athene or Hertz. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that each of Athene and Hertz may not be able to accurately predict or assess, including those in the risk factors that each of Athene and Hertz identify in their most recent annual reports on Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission (the "SEC"), and any updates thereto in subsequent filings with the SEC. We caution you not to place undue reliance on our forward-looking statements, which speak only as of their date, and Athene and Hertz undertake no obligation to update this information.

SOURCE Hertz Global Holdings, Inc.

ESTERO, Fla., March 3, 2021 /PRNewswire/ — Laura Smith, Executive Vice President of Sales, Marketing and Customer Experience at Hertz has been honored as a Top 50 Women in Travel by WINiT by GBTA – a network focused on driving positive change for the career advancement of women in travel-related industries.

Continue Reading

"Laura is a true role model for leadership – always rising to meet any challenge, supporting others, serving as a positive example and putting our customers and employees at the heart of everything we do," said Paul Stone, Hertz President and CEO. "I’m thrilled she is being honored for the incredible impact that she’s making at Hertz and in the travel industry."

Smith has led a long and impressive career at Hertz and was previously honored by WINiT in 2019 as the recipient of the Rising Female Leader Award. She joined the company in 2002 in Dublin, Ireland as a Team Leader at Hertz’s international call center and has advanced her career to one of the highest positions, overseeing global Marketing, Sales and Customer Experience.

Amid the challenges created by the pandemic in 2020 in the travel industry and communities around the world, Smith led several impactful initiatives that further underscored her people-focused leadership and care and commitment to Hertz customers. In collaboration with Hertz’s global rental operations, Smith and her teams introduced and marketed Hertz Gold Standard Clean, an enhanced vehicle and sanitization process that concludes with the car being sealed to help customers travel safely and confidently during the pandemic; launched a program giving free month-long car rentals to NYC healthcare workers totaling $2M in rental donations; and implemented initiatives that earned Hertz the No. 1 ranking in the J.D. Power North American Rental Car Satisfaction Study for the second consecutive year.

Smith is also recognized for supporting WINiT’s mission this year in part for her longstanding coaching and mentorship of female professionals and efforts to promote more women into leadership roles.

"It is an honor to be recognized by WINiT and a privilege to be included alongside these talented women in the travel industry," said Smith. "I love what I do and proud to be surrounded by so many remarkable colleagues and teammates who are making a difference and lifting each other up. They inspire me and fuel my own commitment to help others grow and succeed."

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 and fleet management leader Donlen Corporation.

SOURCE The Hertz Corporation

Related Links

http://www.hertz.com

ESTERO, Fla., March 2, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK:HTZGQ) ("Hertz" or the "Company") today announced that it has reached a key milestone in the Company’s Chapter 11 process by filing its proposed Plan of Reorganization ("Plan") and related Disclosure Statement with the U.S. Bankruptcy Court for the District of Delaware.

The proposed Plan contemplates that Knighthead Capital Management, LLC and its affiliates ("Knighthead") and Certares Opportunities LLC and its affiliates ("Certares") will serve as the Plan Sponsors and will commit to invest up to $4.2 billion to purchase up to 100% (but not less than a majority) of the common stock of the reorganized Hertz. This proposed investment, if consummated, will, together with a new $1 billion first-lien financing, a new $1.5 billion revolving credit facility, and a new asset-backed securitization facility to finance Hertz’s U.S. vehicle fleet, provide the basis for the proposed Plan and the funding needed for Hertz to complete its financial restructuring and emerge from Chapter 11 in early to mid summer. The equity investment will take the form of a direct purchase of up to approximately $2.3 billion of common equity of reorganized Hertz, together with a commitment to backstop a rights offering for up to approximately $1.9 billion of common equity in reorganized Hertz, which will be made available to unsecured creditors as part of the Plan. The proposed Plan is subject to Court approval and the satisfaction of certain conditions, including all conditions to the Plan Sponsors’ commitment, which is subject to, among other things, the completion of satisfactory documentation and due diligence.

The proposed Plan would provide for a new, sustainable capital structure that would substantially reduce Hertz’s corporate debt and provide for a less leveraged vehicle debt structure. If confirmed, the proposed Plan would provide for the payment in cash in full of all of Hertz’s existing first- and second-lien debt and all administrative and priority claims, including the obligations owed under Hertz’s $1.65 billion debtor-in-possession facility. Confirmation of the proposed Plan would also result in a 70% cash recovery to general unsecured creditors (including the guarantee of the €725 million Euronote facility issued by Hertz’s affiliate, HHN), subject to the right of the holders of funded unsecured debt claims to elect to take a portion of their recovery in the form of common equity in reorganized Hertz. In addition, it is contemplated that certain obligations of Hertz’s international businesses, which are not in Chapter 11, will be restructured on a consensual basis.

Overall, the proposed Plan will enable Hertz to exit Chapter 11 stronger both financially and operationally.

The next step in this process is for the Bankruptcy Court to approve the terms of the Plan Sponsors’ proposed investment, the Disclosure Statement and creditor solicitation materials at a hearing scheduled for April 16. Assuming Court approval, the Disclosure Statement and Plan will be mailed to Hertz’s creditors for a vote and the Court will schedule a hearing to confirm the Plan. Changes may be made to the Plan and Disclosure Statement prior to final creditor and Court approval.

Paul Stone, Hertz’s President and Chief Executive said, "We are excited to reach this important milestone in our restructuring process. Our Plan of Reorganization provides us a clear path forward to completing our financial restructuring and emerging from Chapter 11 by early to mid summer. The support of the Plan sponsors demonstrates their confidence in Hertz’s growth potential; moreover, they bring valuable experience in the travel and leisure industry."

Stone continued, "We’ve been making excellent progress on our financial and operational initiatives and repositioning our business as we prepare for increased travel demand as the pandemic subsides. We’re grateful for the commitment of our exceptional employees and teams around the world working tirelessly to maintain smooth operations with safe and outstanding service to our customers. We would like to thank our customers, franchise partners, vendors and other business partners for their continued support and loyalty. Based on actions we’ve taken during the restructuring process, we believe Hertz will be well-positioned to resume growth and secure the long-term success of our iconic brand."

Certares and Knighthead have recently formed the CK Opportunities Fund, a co-managed vehicle specifically dedicated to investments in travel and leisure. Knighthead is a leading credit-investment management firm established in 2008 with $5.5 billion of assets under management. Certares is a private investment platform dedicated to investing in the travel, tourism and hospitality sectors with approximately $4.5 billion of assets under management.

For the Court documents or filings, please visit https://restructuring.primeclerk.com/hertz or call (877) 428-4661 (toll-free in the U.S.) or (929) 955-3421 (from outside the U.S.).

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 owns the vehicle leasing and fleet management leader Donlen Corporation, operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit www.hertz.com.

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.

SOURCE Hertz Global Holdings, Inc.

Related Links

https://www.hertz.com/

ESTERO, Fla., Feb. 26, 2021 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK: HTZGQ) ("Hertz Global" or the "Company") today reported results for its fourth quarter and year ended December 31, 2020. For the fourth quarter, the Company’s revenue was $1.2 billion, net loss attributable to the Company was $289 million and Adjusted Corporate EBITDA loss was $140 million. For the year, the Company’s revenue was $5.3 billion, net loss attributable to the Company was $1.7 billion and Adjusted Corporate EBITDA loss was $995 million. Liquidity at the end of 2020 was $1.1 billion.

"We are making significant headway on our U.S. Chapter 11 process," said Paul Stone, Hertz Global’s President and Chief Executive Officer. "We are on track to close on the sale of our Donlen vehicle leasing and fleet management business in March 2021 and are making progress on our plan of reorganization with the goal to emerge from Chapter 11 by mid to late summer."

December 2020 global revenue was nearly double that from April 2020 and since that time the Company achieved monthly, sequential year-over-year global rental volume improvement. The Company delivered annualized cost savings of approximately $3 billion during the year and downsized the fleet so that it was well positioned to match demand entering into 2021.

During the year, the Company adapted to severe volume declines by realigning its fleet, consolidating locations and staffing to the reality of pandemic-level travel demand, cutting all non-essential spending and capital expenses, all the while enhancing cleaning and sanitization processes for the safety of customers and employees. While the Company was focused on cost savings, it kept its sights on the importance of providing customers the highest level of service and in 2020 was ranked No. 1 in Customer Satisfaction for Rental Cars by J.D. Power for the second year in a row.

"Throughout the difficulties of the past year, I have been exceptionally proud of our employees for their dedication to serving our customers and putting safety and satisfaction first. They remain our greatest asset," said Stone.

"I am humbled yet honored to lead such an iconic brand through one of the most challenging years in its history," continued Stone. "Based on our progress thus far, I believe more than ever that, with the continued support of our loyal customers and exceptional employees, we are laying the foundation for long-term success."

U.S. RENTAL CAR ("U.S. RAC") SUMMARY

U.S. RAC	Three Months Ended December 31,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019
Total revenues	$	876			$	1,673			(48)	%
Adjusted EBITDA	$	(113)			$	48			NM
Adjusted EBITDA Margin	(13)		%		3		%
Average Vehicles (in whole units)	298,183				516,726				(42)	%
Vehicle Utilization	74		%		79		%
Transaction Days (in thousands)	20,178				37,706				(46)	%
Total RPD (in whole dollars)	$	43.10			$	43.54			(1)	%
Total RPU Per Month (in whole dollars)	$	972			$	1,059			(8)	%
Depreciation Per Unit Per Month (in whole dollars)	$	301			$	283			6	%

NM – Not meaningful

The pandemic-related impact on travel continued to result in fewer transaction days compared with the fourth quarter of 2019, mostly at airport locations. Volume trends continued to improve on a sequential quarterly basis with U.S. RAC revenues down 48% in the fourth quarter on 46% lower volume, compared with a 56% revenue decline year-over-year in the third quarter on 57% lower volume. Off-airport revenues comprised 45% of total revenue for the segment in the fourth quarter 2020 versus 33% in the prior year period.

Depreciation Per Unit Per Month was impacted by residual values on certain vehicle models, and lower year-over-year retail sales volume during the quarter.

Direct operating and selling, general and administration expenses declined 36% year over year as the Company proactively reduced costs in line with demand.

Adjusted EBITDA loss of $113 million was driven by the impact of lower revenue, partially offset by lower fleet costs as the Company adjusted fleet levels to demand, and reduced expenses.

INTERNATIONAL RENTAL CAR ("INTERNATIONAL RAC") SUMMARY

International RAC	Three Months Ended December 31,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019
Total revenues	$	217			$	474			(54)	%
Adjusted EBITDA	$	(41)			$	(10)			NM
Adjusted EBITDA Margin	(19)		%		(2)		%
Average Vehicles (in whole units)	83,744				169,971				(51)	%
Vehicle Utilization	69		%		72		%
Transaction Days (in thousands)	5,308				11,256				(53)	%
Total RPD (in whole dollars)	$	39.16			$	42.68			(8)	%
Total RPU Per Month (in whole dollars)	$	827			$	942			(12)	%
Depreciation Per Unit Per Month (in whole dollars)	$	174			$	220			(21)	%

NM – Not meaningful

International travel restrictions and lockdowns continued to drive volume lower in the fourth quarter, however, trends continued to improve on a sequential quarterly basis. International RAC revenues were down 54% in the fourth quarter on 53% lower volume, compared with a 64% revenue decline year-over-year in the third quarter on 60% lower volume. Off-airport revenues comprised 63% of total revenue for the segment in the fourth quarter 2020 versus 44% in the prior year period. The mix shift in volume from airport rentals to longer-length, lower-priced off-airport rentals contributed to a 8% decrease in Total RPD versus fourth quarter 2019.

Depreciation Per Unit Per Month benefited from strong residual values across key markets.

Direct operating and selling, general and administration expenses declined 45% year over year as the Company proactively reduced costs in line with demand.

Adjusted EBITDA loss of $41 million reflected lower revenue, partially offset by lower fleet costs as the Company adjusted fleet levels to demand, and reduced operating expenses.

ALL OTHER OPERATIONS SUMMARY

All Other Operations	Three Months Ended December 31,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019
Total revenues	$	142			$	179			(21)	%
Adjusted EBITDA	$	22			$	30			(27)
Adjusted EBITDA Margin	15		%		17		%
Average Vehicles (in whole units) – Donlen	186,200				222,400				(16)	%

All Other Operations is primarily comprised of the Company’s Donlen vehicle leasing and fleet management business. As previously announced in November 2020, the Company entered into a stock and asset purchase agreement to sell substantially all of the assets of its Donlen business to Athene Holding Ltd. The purchase agreement was approved by the Bankruptcy Court in December 2020. The sale is expected to close in March 2021.

RESULTS OF THE HERTZ CORPORATION

The pre-tax GAAP and non-GAAP profitability metrics for Hertz Global’s operating subsidiary, The Hertz Corporation ("Hertz"), are materially the same as those for Hertz Global for the fourth quarter 2020 and 2019 and for the year ended December 31, 2019. For the year ended December 31, 2020, Hertz posted the same revenues as the Company, however its pre-tax loss was $2.2 billion versus the Company’s pre-tax loss of $2.1 billion. The difference between Hertz’s and the Company’s pre-tax 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.

FINANCIAL REORGANIZATION

As previously announced, on May 22, 2020, Hertz Global and Hertz (together, the "Companies") 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 (the "Reorganization").

The Reorganization provides the time to put in place a new, stronger financial foundation to move successfully through the COVID-19 pandemic and to better position the Companies for the future. Throughout the Reorganization process, all of Hertz’s businesses globally, including its Hertz, Dollar, Thrifty, Firefly, Hertz Car Sales, and Donlen subsidiaries, are open and serving customers. All reservations, promotional offers, vouchers, and customer and loyalty programs, including rewards points, are expected to continue as usual.

Information related to the Reorganization is included in the Hertz Global and Hertz Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission 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. The information in this website is not incorporated by reference and does not constitute part of this earnings release.

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

Following is selected financial data of Hertz Global. Also included are Supplemental Schedules which are provided to present segment results and reconciliations of non-GAAP measures to their most comparable GAAP measure. Following the Supplemental Schedules, the Company provides definitions for terminology used throughout this earnings release and provides the usefulness of non-GAAP measures to investors and additional purposes for which management uses such measures.

ABOUT HERTZ

The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands 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 the vehicle leasing and fleet management leader Donlen Corporation, operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit www.hertz.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this release, and in related comments by the Company’s management, include "forward-looking statements." Forward-looking statements include information concerning the Company’s liquidity and its possible or assumed future results of operations, including descriptions of its business strategies. These statements often include words such as "believe," "expect," "project," "potential," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts" or similar expressions. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate in these circumstances. The Company believes these judgments are reasonable, but you should understand that these statements are not guarantees of performance or results and the Company’s actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative.

Important factors that could affect the Company’s actual results and cause them to differ materially from those expressed in forward-looking statements include, among others, those that may be disclosed from time to time in subsequent reports filed with or furnished to the Securities and Exchange Commission ("SEC"). Among other items, such factors include: the Company’s ability to navigate the Chapter 11 process, including obtaining Bankruptcy Court approval for certain actions, complying with and operating under the requirements and constraints of the Bankruptcy Code, negotiating and consummating a Chapter 11 plan, developing, funding and executing the Company’s business plan and continuing as a going concern; 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 Company’s ability to successfully restructure the Company’s substantial indebtedness or raise additional capital; the Company’s post-bankruptcy capital structure; the impact of the Company’s delisting from the New York Stock Exchange on its stockholders; the value of the Company’s common stock due to the Chapter 11 process; the Company’s ability to remediate the material weakness in its internal control 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 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; 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; the Company’s ability to retain customer loyalty and market share; occurrences that disrupt rental activity during the Company’s peak periods; the Company’s ability to purchase adequate supplies of competitively priced vehicles and risks relating to increases in the cost of the vehicles the Company purchases; 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; increased vehicle costs due to declining value of the Company’s non-program vehicles; the Company’s ability to meet the financial and other covenants contained in its debtor-in-possession ("DIP") 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; the Company’s ability to maintain sufficient liquidity and the availability to the Company of additional or continued sources of financing for its revenue earning vehicles and to refinance its existing indebtedness; risks related to the Company’s indebtedness, including its substantial amount of debt, the Company’s ability to incur substantially more debt, the fact that substantially all of its consolidated assets secure certain of its outstanding indebtedness and increases in interest rates or in its borrowing margins; 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, terrorist acts, natural disasters and epidemic disease); the Company’s ability to prevent the misuse or theft of information the Company 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 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 its rental activity, particularly during the Company’s peak periods, due to safety recalls by the manufacturers of its vehicles; the Company’s ability to execute a business continuity plan; the recoverability of the Company’s goodwill and indefinite-lived intangible assets when performing impairment analysis; 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 anticorruption or antibribery 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, which could have an effect on operating results; and other risks and uncertainties described from time to time in periodic and current reports that the Company files with the SEC.

Additional information concerning these and other factors can be found in the Company’s filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made and, except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

FINANCIAL INFORMATION AND OPERATING DATA

SELECTED UNAUDITED CONSOLIDATED INCOME STATEMENT DATA
	Three Months Ended December 31,								As a Percentage of Total Revenues						Twelve Months Ended December 31,								As a Percentage of Total Revenues
(In millions, except per share data)	2020				2019				2020			2019			2020				2019				2020			2019
Total revenues	$	1,235			$	2,326			100	%		100	%		$	5,258			$	9,779			100	%		100	%
Expenses:
Direct vehicle and operating	851				1,339				69	%		58	%		3,627				5,486				69	%		56	%
Depreciation of revenue earning vehicles and lease charges	398				672				32	%		29	%		2,032				2,565				39	%		26	%
Selling, general and administrative	143				248				12	%		11	%		664				969				13	%		10	%
Interest expense, net:
Vehicle	96				121				8	%		5	%		455				494				9	%		5	%
Non-vehicle	34				98				3	%		4	%		153				311				3	%		3	%
Total interest expense, net	130				219				11	%		9	%		608				805				12	%		8	%
Intangible and other asset impairments	20				—				2	%		—	%		213				—				4	%		—	%
Other (income) expense, net	6				(22)				—	%		(1)	%		(9)				(59)				—	%		(1)	%
Reorganization items, net	74				—				6	%		—	%		175				—				3	%		—	%
Total expenses	1,622				2,456				131	%		106	%		7,310				9,766				139	%		100	%
Income (loss) before income taxes	(387)				(130)				(31)	%		(6)	%		(2,052)				13				(39)	%		—	%
Income tax (provision) benefit	97				15				8	%		1	%		329				(63)				6	%		(1)	%
Net income (loss)	(290)				(115)				(23)	%		(5)	%		(1,723)				(50)				(33)	%		(1)	%
Net (income) loss attributable to noncontrolling interests	1				(3)				—	%		—	%		9				(8)				—	%		—	%
Net income (loss) attributable to Hertz Global	$	(289)			$	(118)			(23)	%		(5)	%		$	(1,714)			$	(58)			(33)	%		(1)	%
Weighted average number of shares outstanding:
Basic	156				142										150				117
Diluted	156				142										150				117
Earnings (loss) per share:
Basic earnings (loss) per share	$	(1.85)			$	(0.83)									$	(11.44)			$	(0.49)
Diluted earnings (loss) per share	$	(1.85)			$	(0.83)									$	(11.44)			$	(0.49)
Adjusted Net Income (Loss)(a)	$	(188)			$	(34)									$	(1,148)			$	168
Adjusted Diluted Earnings (Loss) Per Share(a)	$	(1.20)			$	(0.24)									$	(7.66)			$	1.44
Adjusted Corporate EBITDA(a)	$	(140)			$	54									$	(995)			$	649

(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 December 31, 2020																				Three Months Ended December 31, 2019
(In millions)	U.S. Rental Car				Int’l Rental Car				All Other Operations				Corporate				Hertz Global				U.S. Rental Car				Int’l Rental Car				All Other Operations				Corporate				Hertz Global
Total revenues:	$	876			$	217			$	142			$	—			$	1,235			$	1,673			$	474			$	179			$	—			$	2,326
Expenses:
Direct vehicle and operating	680				163				8				—				851				1,019				312				8				—				1,339
Depreciation of revenue earning vehicles and lease charges	269				46				83				—				398				439				111				122				—				672
Selling, general and administrative	50				38				8				47				143				126				51				11				60				248
Interest expense, net:
Vehicle	63				21				12				—				96				85				23				13				—				121
Non-vehicle	(1)				—				1				34				34				(47)				—				(5)				150				98
Total interest expense, net	62				21				13				34				130				38				23				8				150				219
Intangible and other asset impairments	—				20				—				—				20				—				—				—				—				—
Other (income) expense, net	1				3				—				2				6				(22)				(1)				—				1				(22)
Reorganization items, net	8				—				2				64				74				—				—				—				—				—
Total expenses	1,070				291				114				147				1,622				1,600				496				149				211				2,456
Income (loss) before income taxes	$	(194)			$	(74)			$	28			$	(147)			$	(387)			$	73			$	(22)			$	30			$	(211)			$	(130)
Income tax (provision) benefit																	97																				15
Net income (loss)																	(290)																				(115)
Net (income) loss attributable to noncontrolling interests																	1																				(3)
Net income (loss) attributable to Hertz Global																	$	(289)																			$	(118)

Supplemental Schedule I (continued)
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
	Twelve Months Ended December 31, 2020																				Twelve Months Ended December 31, 2019
(In millions)	U.S. Rental Car				Int’l Rental Car				All Other Operations				Corporate				Hertz Global				U.S. Rental Car				Int’l Rental Car				All Other Operations				Corporate				Hertz Global
Total revenues:	$	3,656			$	972			$	630			$	—			$	5,258			$	6,938			$	2,169			$	672			$	—			$	9,779
Expenses:
Direct vehicle and operating	2,858				742				27				—				3,627				4,146				1,312				28				—				5,486
Depreciation of revenue earning vehicles and lease charges	1,323				274				435				—				2,032				1,656				440				469				—				2,565
Selling, general and administrative	275				180				20				189				664				490				221				35				223				969
Interest expense, net:
Vehicle	323				86				46				—				455				345				97				52				—				494
Non-vehicle	(70)				—				(6)				229				153				(188)				(4)				(21)				524				311
Total interest expense, net	253				86				40				229				608				157				93				31				524				805
Intangible and other asset impairments	—				20				—				193				213				—				—				—				—				—
Other (income) expense, net	(18)				4				—				5				(9)				(38)				—				—				(21)				(59)
Reorganization items, net	8				—				2				165				175				—				—				—				—				—
Total expenses	4,699				1,306				524				781				7,310				6,411				2,066				563				726				9,766
Income (loss) before income taxes	$	(1,043)			$	(334)			$	106			$	(781)			$	(2,052)			$	527			$	103			$	109			$	(726)			$	13
Income tax (provision) benefit																	329																				(63)
Net income (loss)																	(1,723)																				(50)
Net (income) loss attributable to noncontrolling interests																	9																				(8)
Net income (loss) attributable to Hertz Global																	$	(1,714)																			$	(58)

Supplemental Schedule II
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE – ADJUSTED NET INCOME (LOSS), ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE AND ADJUSTED CORPORATE EBITDA
Unaudited
	Three Months Ended December 31,								Twelve Months Ended December 31,
(In millions, except per share data)	2020				2019				2020				2019
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share:
Net income (loss) attributable to Hertz Global	$	(289)			$	(118)			$	(1,714)			$	(58)
Adjustments:
Income tax provision (benefit)	(97)				(15)				(329)				63
Vehicle and non-vehicle debt-related charges(a)	22				13				61				52
Loss on extinguishment of debt(b)	—				39				5				43
Intangible and other asset impairments(c)	20				—				213				—
Restructuring and restructuring related charges(d)	10				3				64				14
Information technology and finance transformation costs(e)	8				37				42				114
Acquisition accounting-related depreciation and amortization(f)	13				14				54				55
Reorganization items, net(g)	74				—				175				—
Pre-reorganization and non-debtor financing charges(h)	20				—				109				—
Other items(i)	3				(18)				1				(59)
Adjusted pre-tax income (loss)(j)	(216)				(45)				(1,319)				224
Income tax (provision) benefit on adjusted pre-tax income (loss)(k)	28				11				172				(56)
Adjusted Net Income (Loss)	$	(188)			$	(34)			$	(1,148)			$	168
Weighted-average number of diluted shares outstanding	156				142				150				117
Adjusted Diluted Earnings (Loss) Per Share(l)	$	(1.20)			$	(0.24)			$	(7.66)			$	1.44
Adjusted Corporate EBITDA:
Net income (loss) attributable to Hertz Global	$	(289)			$	(118)			$	(1,714)			$	(58)
Adjustments:
Income tax provision (benefit)	(97)				(15)				(329)				63
Non-vehicle depreciation and amortization(m)	57				52				225				203
Non-vehicle debt interest, net	34				98				153				311
Vehicle debt-related charges(a),(n)	18				9				50				38
Loss on extinguishment of vehicle debt(b)	—				—				5				—
Intangible and other asset impairments(c)	20				—				213				—
Restructuring and restructuring related charges(d)	10				3				64				14
Information technology and finance transformation costs(e)	8				37				42				114
Reorganization items, net(g)	74				—				175				—
Pre-reorganization and non-debtor financing charges(h)	20				—				109				—
Other items(i),(o)	5				(12)				12				(36)
Adjusted Corporate EBITDA	$	(140)			$	54			$	(995)			$	649

(a)	Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.
(b)	In 2020, represents, a $5 million write-off of deferred financing costs resulting from the European ABS waiver agreements entered into in the second and third quarters. In 2019, represents $39 million of early redemption premium and write-off of deferred financing costs associated with the partial redemption in the fourth quarter of the Senior Second Priority Secured Notes and a $4 million write-off of deferred financing costs associated with the full redemption in the third quarter of the 5.875% Senior Notes due October 2020 and 7.375% Senior Notes due January 2021.
(c)	In 2020, represents a $193 million impairment of technology-related intangible and other assets related to the Company’s corporate operations ("Corporate") recorded in the second quarter of 2020 and a $20 million impairment of the Hertz tradename in the Company’s International RAC segment recorded in the fourth quarter of 2020.
(d)	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.
(e)	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 Corporate.
(f)	Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.
(g)	Represents charges incurred associated with the Reorganization, including professional fees. The charges relate primarily to Corporate.
(h)	Represents charges incurred in the second quarter of 2020 prior to the Reorganization comprised of preparation charges for the Reorganization, such as professional fees. Also includes, certain non-debtor financing and professional fee charges. For U.S. RAC, International RAC, All Other Operations and Corporate charges incurred for the three months ended December 31, 2020 $11 million, $(3) million, $2 million and $10 million, respectively, and for the twelve months ended December 31, 2020 are $43 million, $14 million, $6 million and $46 million, respectively.
(i)	Represents miscellaneous items. In 2020, includes $18 million for losses associated with certain vehicle damages of which $15 million impact U.S. RAC and $3 million impacts International RAC which were recorded in the second quarter. In 2019, includes a $30 million gain on marketable securities in Corporate, of which $5 million was recorded during the fourth quarter, and a $39 million gain on the sale of non-vehicle capital assets in U.S. RAC, of which $24 million was recorded in the fourth quarter.
(j)	Adjustments by caption on a pre-tax basis are as follows:

Increase (decrease) to expenses	Three Months Ended December 31,								Twelve Months Ended December 31,
(In millions)	2020				2019				2020				2019
Direct vehicle and operating	$	(4)			$	(14)			$	(87)			$	(54)
Selling, general and administrative	(25)				(42)				(129)				(127)
Interest expense, net:
Vehicle	(32)				(9)				(105)				(38)
Non-vehicle	(4)				(43)				(11)				(57)
Total interest expense, net	(36)				(52)				(116)				(95)
Intangible and other asset impairments	(20)				—				(213)				—
Other income (expense), net	(11)				20				(4)				57
Reorganization items, net	(74)				—				(175)				—
Total adjustments	$	(170)			$	(88)			$	(724)			$	(219)

(k)	Derived utilizing a combined statutory rate of 13% and 25% for the periods ending December 31, 2020 and 2019, 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 U.S. RAC, International RAC. All Other Operations and Corporate for the three months ended December 31, 2020 are $46 million, $5 million, $3 million and $3 million, respectively, and for the three months ended December 31, 2019 are $40 million, $5 million, $2 million and $5 million, respectively. Non-vehicle depreciation and amortization expense for U.S. RAC, International RAC, All Other Operations and Corporate for the twelve months ended December 31, 2020 are $179 million, $22 million, $10 million and $14 million, respectively, and for the twelve months ended December 31, 2019 are $156 million, $23 million, $10 million and $14 million, respectively.
(n)	Vehicle debt related charges for U.S. RAC, International RAC and All Other Operations for the three months ended December 31, 2020 are $12 million, $4 million and $2 million, respectively, and for the three months ended December 31, 2019 are $6 million, $2 million and $1 million, respectively. Vehicle debt related charges for U.S. RAC, International RAC and All Other Operations for the twelve months ended December 31, 2020 are $36 million, $10 million and $4 million, respectively, and for the twelve months ended December 31, 2019 are $22 million, $12 million and $4 million, respectively.
(o)	Also includes an adjustment for non-cash stock-based compensation charges in Corporate.

Supplemental Schedule VI
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATIONS OF KEY METRICS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
U.S. Rental Car
	Three Months Ended December 31,								Percent Inc/(Dec)			Twelve Months Ended December 31,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019							2020				2019
Total RPD
Total Revenues	$	876			$	1,673						$	3,656			$	6,938
Ancillary retail vehicle sales revenue	(6)				(31)							(111)				(122)
Total Rental Revenues	$	870			$	1,642						$	3,545			$	6,816
Transaction Days (in thousands)	20,178				37,706							82,678				155,859
Total RPD (in whole dollars)	$	43.10			$	43.54			(1)	%		$	42.88			$	43.73			(2)	%
Total Revenue Per Unit Per Month
Total Rental Revenues	$	870			$	1,642						$	3,545			$	6,816
Average Vehicles (in whole units)	298,183				516,726							423,992				534,879
Total revenue per unit (in whole dollars)	$	2,918			$	3,178						$	8,361			$	12,743
Number of months in period (in whole units)	3				3							12				12
Total RPU Per Month (in whole dollars)	$	972			$	1,059			(8)	%		$	697			$	1,062			(34)	%
Vehicle Utilization
Transaction Days (in thousands)	20,178				37,706							82,678				155,859
Average Vehicles (in whole units)	298,183				516,726							423,992				534,879
Number of days in period (in whole units)	92				92							366				365
Available Car Days (in thousands)	27,433				47,539							155,181				195,231
Vehicle Utilization(a)	74		%		79		%					53		%		80		%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges	$	269			$	439						$	1,323			$	1,656
Average Vehicles (in whole units)	298,183				516,726							423,992				534,879
Depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$	902			$	850						$	3,120			$	3,096
Number of months in period (in whole units)	3				3							12				12
Depreciation Per Unit Per Month (in whole dollars)	$	301			$	283			6	%		$	260			$	258			1	%

(a)	Calculated as Transaction Days divided by Available Car Days.

Supplemental Schedule VI (continued)
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATIONS OF KEY METRICS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
International Rental Car
	Three Months Ended December 31,								Percent Inc/(Dec)			Twelve Months Ended December 31,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019							2020				2019
Total RPD
Total Revenues	$	217			$	474						$	972			$	2,169
Ancillary retail vehicle sales revenue	—				—							—				—
Foreign currency adjustment(a)	(9)				6							(5)				11
Total Rental Revenues	$	208			$	480						$	967			$	2,180
Transaction Days (in thousands)	5,308				11,256							24,621				50,139
Total RPD (in whole dollars)	$	39.16			$	42.68			(8)	%		$	39.32			$	43.45			(10)	%
Total Revenue Per Unit Per Month
Total Rental Revenues	$	208			$	480						$	967			$	2,180
Average Vehicles (in whole units)	83,744				169,971							116,348				180,723
Total revenue per unit (in whole dollars)	$	2,484			$	2,824						$	8,311			$	12,063
Number of months in period (in whole units)	3				3							12				12
Total RPU Per Month (in whole dollars)	$	827			$	942			(12)	%		$	693			$	1,005			(31)	%
Vehicle Utilization
Transaction Days (in thousands)	5,308				11,256							24,621				50,139
Average Vehicles (in whole units)	83,744				169,971							116,348				180,723
Number of days in period (in whole units)	92				92							366				365
Available Car Days (in thousands)	7,704				15,637							42,583				65,964
Vehicle Utilization(b)	69		%		72		%					58		%		76		%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges	$	46			$	111						$	274			$	440
Foreign currency adjustment(a)	(2)				1							1				3
Adjusted depreciation of revenue earning vehicles and lease charges	$	44			$	112						$	275			$	443
Average Vehicles (in whole units)	83,744				169,971							116,348				180,723
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$	525			$	659						$	2,364			$	2,451
Number of months in period (in whole units)	3				3							12				12
Depreciation Per Unit Per Month (in whole dollars)	$	174			$	220			(21)	%		$	197			$	204			(3)	%

(a)	Based on December 31, 2019 foreign exchange rates.
(b)	Calculated as Transaction Days divided by Available Car Days.

Supplemental Schedule VI (continued)
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATIONS OF KEY METRICS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
Worldwide Rental Car
	Three Months Ended December 31,								Percent Inc/(Dec)			Twelve Months Ended December 31,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019							2020				2019
Total RPD
Total Revenues	$	1,093			$	2,147						$	4,628			$	9,107
Ancillary retail vehicle sales revenue	(6)				(31)							(111)				(122)
Foreign currency adjustment(a)	(9)				6							(5)				11
Total Rental Revenues	$	1,078			$	2,122						$	4,512			$	8,996
Transaction Days (in thousands)	25,486				48,962							107,299				205,998
Total RPD (in whole dollars)	$	42.28			$	43.34			(2)	%		$	42.06			$	43.66			(4)	%
Total Revenue Per Unit Per Month
Total Rental Revenues	$	1,078			$	2,122						$	4,512			$	8,996
Average Vehicles (in whole units)	381,927				686,697							540,340				715,602
Total revenue per unit (in whole dollars)	$	2,823			$	3,090						$	8,350			$	12,571
Number of months in period (in whole units)	3				3							12				12
Total RPU Per Month (in whole dollars)	$	940			$	1,030			(9)	%		$	696			$	1,047			(34)	%
Vehicle Utilization
Transaction Days (in thousands)	25,486				48,962							107,299				205,998
Average Vehicles (in whole units)	381,927				686,697							540,340				715,602
Number of days in period (in whole units)	92				92							366				365
Available Car Days (in thousands)	35,137				63,176							197,764				261,195
Vehicle Utilization(b)	73		%		78		%					54		%		79		%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges	$	315			$	550						$	1,597			$	2,096
Foreign currency adjustment(a)	(2)				1							1				3
Adjusted depreciation of revenue earning vehicles and lease charges	$	313			$	551						$	1,598			$	2,099
Average Vehicles (in whole units)	381,927				686,697							540,340				715,602
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$	820			$	802						$	2,957			$	2,933
Number of months in period (in whole units)	3				3							12				12
Depreciation Per Unit Per Month (in whole dollars)	$	273			$	268			2	%		$	246			$	244			1	%

Note: Worldwide Rental Car represents U.S. Rental Car and International Rental Car segment information on a combined basis and excludes the All Other Operations segment, which is primarily comprised of the Company’s Donlen leasing operations and Corporate.

(a)	Based on December 31, 2019 foreign exchange rates.
(b)	Calculated as Transaction Days divided by Available Car Days.

NON-GAAP MEASURES AND KEY METRICS

Hertz Global is the top-level holding company that indirectly wholly owns The Hertz Corporation (together, the "Company"). The term "GAAP" refers to accounting principles generally accepted in the United States of America. Adjusted EBITDA is the Company’s segment measure of profitability and complies with GAAP when used in that context.

NON-GAAP MEASURES

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

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

Adjusted Net Income (Loss) represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax, debt-related charges and losses, restructuring and restructuring related charges, intangible and tangible asset impairments and write-downs, information technology and finance transformation costs, non-cash acquisition accounting charges and certain other miscellaneous items on a pre-tax basis. Adjusted Net Income (Loss) includes a provision (benefit) for income taxes derived utilizing a combined statutory rate. The combined statutory rate is management’s estimate of the Company’s long-term tax rate. Its most comparable GAAP measure is net income (loss) attributable to the Company.

Adjusted Diluted EPS represents Adjusted Net Income (Loss) on a per diluted share basis using the weighted-average number of diluted shares outstanding for the period. Its most comparable GAAP measure is diluted earnings (loss) per share.

Adjusted Net Income (Loss) and Adjusted Diluted EPS are important to management because they allow management to assess operational performance of the Company’s business, exclusive of the items mentioned above that are not operational in nature or comparable to those of the Company’s competitors.

Adjusted Corporate EBITDA and Adjusted Corporate EBITDA Margin

Adjusted Corporate EBITDA represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax, non-vehicle depreciation and amortization, net non-vehicle debt interest, vehicle debt-related charges and losses, restructuring and restructuring related charges, goodwill, intangible and tangible asset impairments and write-downs, information technology and finance transformation costs and certain other miscellaneous items. Adjusted Corporate EBITDA Margin is calculated as the ratio of Adjusted Corporate EBITDA to total revenues.

Management uses these measures as operating performance metrics for internal monitoring and planning purposes, including the preparation of the Company’s annual operating budget and monthly operating reviews, and to facilitate analysis of investment decisions, profitability and performance trends. These measures enable management and investors to isolate the effects on profitability of operating metrics most meaningful to the business of renting and leasing vehicles. They also allow management to assess the performance of the entire business on the same basis as its reportable segments. Adjusted Corporate EBITDA is also utilized in the determination of certain executive compensation. Its most comparable GAAP measure is net income (loss) attributable to the Company.

KEY METRICS

Available Car Days

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

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

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

Depreciation Per Unit Per Month

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

Total Rental Revenues

Total Rental Revenues represents total revenues less ancillary retail vehicle sales revenues, with all periods adjusted to eliminate the effect of fluctuations in foreign currency exchange rates. Management believes eliminating the effect of fluctuations in foreign currency exchange rates is appropriate so as not to affect the comparability of underlying trends. This metric is important to management and investors as it represents a measurement that excludes the impact of ancillary revenues resulting from vehicle sales and facilitates in comparisons with other participants in the vehicle rental industry.

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

Total RPD represents the ratio of Total Rental Revenues to Transaction Days. This metric is important to management and investors as it represents a measurement of the changes in underlying pricing in the vehicle rental business and encompasses the elements in vehicle rental pricing that management has the ability to control.

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

Total RPU Per Month represents the amount of average Total Rental Revenues per vehicle per month. This metric is important to management and investors as it provides a measure of revenue productivity relative to fleet capacity, or asset efficiency.

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

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

Vehicle Utilization ("Utilization")

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

SOURCE The Hertz Corporation

Related Links

http://www.hertz.com