Category: Press Release

ESTERO, Fla., Nov. 9, 2020 /PRNewswire/ — Hertz Global Holdings, Inc. (OTCPK: HTZGQ) ("Hertz Global" or the "Company") today reported results for its third quarter 2020 with revenue of $1.3 billion, a net loss attributable to the Company of $222 million and Adjusted Corporate EBITDA loss of $26 million. Liquidity at the end of the third quarter was $1.1 billion.

"Our U.S. Chapter 11 process is progressing well. Recent, new funding and commitments of more than $6.0 billion allow us to continue taking steps to best position our business as a rental-car and fleet-leasing leader through the pandemic and for the future," said Paul Stone, Hertz Global’s President and Chief Executive Officer.

In the third quarter, the Company made sequential progress as month-to-month revenue improvement, disciplined cost controls and prudent working capital management enabled it to maintain its liquidity position, despite the pandemic challenges impacting the travel sector. "Since Labor Day, U.S. rental volume has trended better, reflecting pent-up leisure demand and market-specific rate adjustments. As a result, our domestic revenue improved 14 points sequentially from July to September. And, October revenue has held steady at September’s level," Stone said.

Throughout the third quarter, Hertz Global aggressively sold fleet into a record-high U.S. residual market, taking average operating fleet down 34% through its retail, wholesale and dealer-direct channels. As of the end of October, the Company’s U.S. fleet level is well positioned to match current demand. Hertz Global’s average international fleet, down 51% in the third quarter year over year, also is now sized appropriately for the current rental environment.

Based on the significant reduction in direct operating and selling, general and administrative expenses to date, the Company is increasing its annualized global cost savings target to $3.0 billion, up from $2.5 billion.

In addition to the $1.1 billion in liquidity at September 30, 2020, the Company recently closed on $1.65 billion of debtor-in-possession financing which provides support for ongoing operations, vehicle procurement and key investments in the business. The Company has also secured commitments for $4.0 billion of fleet financing which, if approved by the court, will enable the Company to meet its forecasted U.S. fleet needs through 2021. In October, the Company closed on a fleet financing facility of up to $400 million for its Donlen leasing and fleet management operations.

"The impact of the Covid-19 pandemic has been tough on everyone. But our employees have met the challenges head on, adapted processes and continued to put our customers’ safety and satisfaction first," said Stone. "Last month, we couldn’t have been prouder to have Hertz awarded No. 1 in Customer Satisfaction for Rental Cars by J.D. Power for a second consecutive year. It’s a true testament to our preferred position among rental car customers and our team’s commitment and dedication to our Company."

U.S. RENTAL CAR ("U.S. RAC") SUMMARY
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U.S. RAC	Three Months Ended September 30,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019
Total revenues	$	866			$	1,962			(56)	%
Adjusted EBITDA	$	(10)			$	269			NM
Adjusted EBITDA Margin	(1)		%		14		%
Average Vehicles (in whole units)	376,443				566,229				(34)	%
Vehicle Utilization	52		%		79		%
Transaction Days (in thousands)	17,971				41,399				(57)	%
Total RPD (in whole dollars)	$	46.27			$	46.67			(1)	%
Total RPU Per Month (in whole dollars)	$	736			$	1,137			(35)	%
Depreciation Per Unit Per Month (in whole dollars)	$	161			$	247			(35)	%
NM – Not meaningful

Total U.S. RAC revenues were down 56%. Intra-quarter, the Company saw steady year-over-year improving trends with July revenue down 61%, August down 58% and September down 47%.

Off-airport revenues comprised 48% of total revenue for the third quarter 2020 versus 32% in the prior year. Overall volume in the third quarter declined year over year due to the pandemic-related impact on travel, especially to corporate customers. However, on a sequential quarterly basis, off-airport volume improved 12 points compared with the 2020 second quarter as leisure travel picked up and delivery services rentals continued to grow. Sequential quarterly year-over-year airport revenue improved 16 points, reflecting some recovery in airline travel from the second-quarter 2020 trough and a higher mix of local rentals at the airport.

Depreciation Per Unit Per Month benefited from sales of used vehicles into a record-high residual market during the quarter. The Company disposed of 133,000 vehicles, 72% more than the third quarter 2019.

Direct operating and selling, general and administration expenses declined 43% year over year as the Company aggressively adjusted costs in response to pandemic-level demand.

On a sequential quarterly basis, the Company nearly recouped its second quarter 2020 Adjusted EBITDA loss in the third quarter through improved rental demand, lower vehicle depreciation and incremental cost savings.

INTERNATIONAL RENTAL CAR ("INTERNATIONAL RAC") SUMMARY
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International RAC	Three Months Ended September 30,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019
Total revenues	$	253			$	702			(64)	%
Adjusted EBITDA	$	(35)			$	115			NM
Adjusted EBITDA Margin	(14)		%		16		%
Average Vehicles (in whole units)	104,045				213,294				(51)	%
Vehicle Utilization	65		%		80		%
Transaction Days (in thousands)	6,194				15,631				(60)	%
Total RPD (in whole dollars)	$	39.75			$	45.44			(13)	%
Total RPU Per Month (in whole dollars)	$	789			$	1,110			(29)	%
Depreciation Per Unit Per Month (in whole dollars)	$	183			$	199			(8)	%
NM – Not meaningful

Total International RAC revenues were down 64% year-over-year on a constant currency basis. Off airport revenues comprised 61% of total revenues for the segment versus 36% for the third quarter 2019. The mix shift in volume from airport rentals to longer-length, lower-priced off-airport rentals contributed to a 13% decrease in Total RPD versus third quarter 2019. While down, both airport and off airport volumes reflected sequential improvement compared to the year-over-year results reported for the second quarter 2020.

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

Direct operating and selling, general and administration expenses declined 47% year over year as the Company proactively reduced costs in response to pandemic-level demand.

Actions taken in the third quarter to reduce vehicle inventories and operating expenses helped to narrow the Adjusted EBITDA loss from the second quarter 2020.

ALL OTHER OPERATIONS SUMMARY
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All Other Operations	Three Months Ended September 30,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019
Total revenues	$	149			$	172			(13)	%
Adjusted EBITDA	$	24			$	24			(3)	%
Adjusted EBITDA Margin	16		%		14		%
Average Vehicles (in whole units) – Donlen	187,876				216,925				(13)	%

All Other Operations primarily is comprised of the Company’s Donlen leasing and fleet management operations. Revenue declined 13% and vehicle depreciation declined 12% driven by a reduction in leased vehicles year over year. Adjusted EBITDA for the quarter was flat.

RESULTS OF THE HERTZ CORPORATION
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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 third quarter 2020 and 2019, and for the nine months ended September 30, 2019. For the nine months ended September 30, 2020 Hertz, posted the same revenues as the Company, however its pre-tax loss was $1.8 billion versus the Company’s pre-tax loss of $1.7 billion. The difference between Hertz’s and the Company’s GAAP results is primarily due to Hertz’s write off in the second quarter of 2020 of $133 million due from the Company. The non-GAAP profitability metrics for Hertz are materially the same as those for Hertz Global.

FINANCIAL REORGANIZATION
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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 Form 10-Qs for the quarterly period ended September 30, 2020 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 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
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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 requirements, 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; 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; levels of travel demand, particularly with respect to business and leisure travel in the United States and in global markets; the length and severity of the COVID-19 pandemic and the impact on the Company’s vehicle rental business as a result of travel restrictions and business closures or disruptions; the impact of the COVID-19 pandemic 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 the COVID-19 pandemic 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 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, including on the Company’s pricing policies or use of incentives; occurrences that disrupt rental activity during the Company’s peak periods; the Company’s ability to accurately estimate future levels of rental activity and adjust the number and mix of vehicles used in the Company’s rental operations accordingly; increased vehicle costs due to declining value of the Company’s non-program vehicles; the Company’s ability to maintain sufficient liquidity and the availability 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 senior credit facilities and letter of credit facilities, its outstanding unsecured senior notes, its outstanding senior second priority secured notes and certain asset-backed and asset-based arrangements; the Company’s ability to access financial markets, including the financing of 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 purchase adequate supplies of competitively priced vehicles and risks relating to increases in the cost of the vehicles it purchases; the Company’s recognition of previously deferred tax gains on the disposition of revenue earning vehicles; financial instability of the manufacturers of the Company’s vehicles, which could impact their ability to fulfill obligations under repurchase or guaranteed depreciation programs; an increase in the Company’s vehicle costs or disruption to the Company’s rental activity, particularly during peak periods, due to safety recalls by the manufacturers of the Company’s vehicles; the Company’s ability to execute a business continuity plan; the Company’s access to third-party distribution channels and related prices, commission structures and transaction volumes; the Company’s ability to retain customer loyalty and market share; risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anticorruption or antibribery laws, the Company’s ability to repatriate cash from non-U.S. affiliates without adverse tax consequences, the Company’s exposure to fluctuations in foreign currency exchange rates and the Company’s ability to effectively manage its international operations after the United Kingdom’s withdrawal from the European Union; a major disruption in the Company’s communication or centralized information networks; a failure to maintain, upgrade and consolidate the Company’s information technology systems; costs and risks associated with litigation and investigations or any failure or inability to comply with laws and regulations or any changes in the legal and regulatory environment, including laws and regulations relating to environmental matters and consumer privacy and data security; the Company’s ability to maintain its network of leases and vehicle rental concessions at airports in the U.S. and internationally; the Company’s ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy; 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; 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 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.

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FINANCIAL INFORMATION AND OPERATING DATA
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SELECTED UNAUDITED CONSOLIDATED INCOME STATEMENT DATA

	Three Months Ended September 30,								As a Percentage of Total Revenues						Nine Months Ended September 30,								As a Percentage of Total Revenues
(In millions, except per share data)	2020				2019				2020			2019			2020				2019				2020			2019
Total revenues	$	1,268			$	2,836			100	%		100	%		$	4,023			$	7,454			100	%		100	%
Expenses:
Direct vehicle and operating	832				1,492				66	%		53	%		2,777				4,147				69	%		56	%
Depreciation of revenue earning vehicles and lease charges	347				667				27	%		24	%		1,634				1,892				41	%		25	%
Selling, general and administrative	143				232				11	%		8	%		519				723				13	%		10	%
Interest expense, net:
Vehicle	110				134				9	%		5	%		360				372				9	%		5	%
Non-vehicle	17				70				1	%		2	%		118				214				3	%		3	%
Total interest expense, net	127				204				10	%		7	%		478				586				12	%		8	%
Technology-related intangible and other asset impairments	—				—				—	%		—	%		193				—				5	%		—	%
Other (income) expense, net	—				(6)				—	%		—	%		(15)				(37)				—	%		—	%
Reorganization items, net	78				—				6	%		—	%		101				—				3	%		—	%
Total expenses	1,527				2,589				120	%		91	%		5,687				7,311				141	%		98	%
Income (loss) before income taxes	(259)				247				(20)	%		9	%		(1,664)				143				(41)	%		2	%
Income tax (provision) benefit	36				(74)				3	%		(3)	%		232				(78)				6	%		(1)	%
Net income (loss)	(223)				173				(18)	%		6	%		(1,432)				65				(36)	%		1	%
Net (income) loss attributable to noncontrolling interests	1				(4)				—	%		—	%		7				(4)				—	%		—	%
Net income (loss) attributable to Hertz Global	$	(222)			$	169			(18)	%		6	%		$	(1,425)			$	61			(35)	%		1	%
Weighted-average number of shares outstanding:
Basic	156				133										148				109
Diluted	156				134										148				109
Earnings (loss) per share:
Basic	$	(1.42)			$	1.26									$	(9.65)			$	0.56
Diluted	$	(1.42)			$	1.26									$	(9.65)			$	0.56
Adjusted Net Income (Loss)(a)	$	(68)			$	214									$	(827)			$	202
Adjusted Diluted Earnings (Loss) Per Share(a)	$	(0.44)			$	1.60									$	(5.60)			$	1.85
Adjusted Corporate EBITDA(a)	$	(26)			$	392									$	(855)			$	595
(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 September 30, 2020																				Three Months Ended September 30, 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:	$	866			$	253			$	149			$	—			$	1,268			$	1,962			$	702			$	172			$	—			$	2,836
Expenses:
Direct vehicle and operating	648				179				7				(2)				832				1,099				386				7				—				1,492
Depreciation of revenue earning vehicles and lease charges	182				59				106				—				347				420				126				121				—				667
Selling, general and administrative	46				56				6				35				143				125				60				8				39				232
Interest expense, net:
Vehicle	77				21				12				—				110				93				27				14				—				134
Non-vehicle	(1)				1				1				16				17				(49)				(1)				(6)				126				70
Total interest expense, net	76				22				13				16				127				44				26				8				126				204
Technology-related intangible and other asset impairments	—				—				—				—				—				—				—				—				—				—
Other (income) expense, net	—				—				—				—				—				(3)				1				—				(4)				(6)
Reorganization items, net	1				—				—				77				78				—				—				—				—				—
Total expenses	953				316				132				126				1,527				1,685				599				144				161				2,589
Income (loss) before income taxes	$	(87)			$	(63)			$	17			$	(126)			$	(259)			$	277			$	103			$	28			$	(161)			$	247
Income tax (provision) benefit																	36																				(74)
Net income (loss)																	$	(223)																			$	173
Net (income) loss attributable to noncontrolling interests																	1																				(4)
Net income (loss) attributable to Hertz Global																	$	(222)																			$	169

Supplemental Schedule I (continued)
HERTZ GLOBAL HOLDINGS, INC. CONDENSED STATEMENT OF OPERATIONS BY SEGMENT Unaudited
	Nine Months Ended September 30, 2020																				Nine Months Ended September 30, 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:	$	2,780			$	755			$	488			$	—			$	4,023			$	5,266			$	1,695			$	493			$	—			$	7,454
Expenses:
Direct vehicle and operating	2,178				579				19				1				2,777				3,127				1,001				20				(1)				4,147
Depreciation of revenue earning vehicles and lease charges	1,054				228				352				—				1,634				1,217				329				346				—				1,892
Selling, general and administrative	224				142				13				140				519				365				169				23				166				723
Interest expense, net:
Vehicle	260				66				34				—				360				260				73				39				—				372
Non-vehicle	(69)				(1)				(7)				195				118				(141)				(3)				(15)				373				214
Total interest expense, net	191				65				27				195				478				119				70				24				373				586
Technology-related intangible and other asset impairments	—				—				—				193				193				—				—				—				—				—
Other (income) expense, net	(19)				1				—				3				(15)				(16)				1				—				(22)				(37)
Reorganization items, net	1				—				—				100				101				—				—				—				—				—
Total expenses	3,629				1,015				411				632				5,687				4,812				1,570				413				516				7,311
Income (loss) before income taxes	$	(849)			$	(260)			$	77			$	(632)			$	(1,664)			$	454			$	125			$	80			$	(516)			$	143
Income tax (provision) benefit																	232																				(78)
Net income (loss)																	$	(1,432)																			$	65
Net (income) loss attributable to noncontrolling interests																	7																				(4)
Net income (loss) attributable to Hertz Global																	$	(1,425)																			$	61

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 September 30,								Nine Months Ended September 30,
(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	$	(222)			$	169			$	(1,425)			$	61
Adjustments:
Income tax provision (benefit)	(36)				74				(232)				78
Vehicle and non-vehicle debt-related charges(a)	13				17				43				44
Technology-related intangible and other asset impairments(b)	—				—				193				—
Restructuring and restructuring related charges(c)	7				1				54				11
Information technology and finance transformation costs(d)	8				17				34				77
Acquisition accounting-related depreciation and amortization(e)	14				14				41				41
Reorganization items, net(f)	78				—				101				—
Pre-reorganization and non-debtor financing charges(g)	44				—				89				—
Other items(h)	4				(7)				(1)				(43)
Adjusted pre-tax income (loss)(i)	(90)				285				(1,103)				269
Income tax (provision) benefit on adjusted pre-tax income (loss)(j)	22				(71)				276				(67)
Adjusted Net Income (Loss)	$	(68)			$	214			$	(827)			$	202
Weighted-average number of diluted shares outstanding	156				134				148				109
Adjusted Diluted Earnings (Loss) Per Share(k)	$	(0.44)			$	1.60			$	(5.60)			$	1.85
Adjusted Corporate EBITDA:
Net income (loss) attributable to Hertz Global	(222)				169				(1,425)				61
Adjustments:
Income tax provision (benefit)	(36)				74				(232)				78
Non-vehicle depreciation and amortization(l)	58				51				168				151
Non-vehicle debt interest, net of interest income	17				70				118				214
Vehicle debt-related charges(a)(m)	13				10				37				29
Technology-related intangible and other asset impairments(b)	—				—				193				—
Restructuring and restructuring related charges(c)	7				1				54				11
Information technology and finance transformation costs(d)	8				17				34				77
Reorganization items, net(f)	78				—				101				—
Pre-reorganization and non-debtor financing charges(g)	44				—				89				—
Other items(h)(n)	7				—				8				(26)
Adjusted Corporate EBITDA	$	(26)			$	392			$	(855)			$	595

Supplemental Schedule II (continued)
(a)	Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.
(b)	Represents the impairment of technology-related intangible assets and capitalized cloud computing implementation costs. These costs relate to the Company’s corporate operations ("Corporate").
(c)	Represents charges incurred under restructuring actions as defined in U.S. GAAP, excluding impairments and asset write-downs. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives.
(d)	Represents costs associated with the Company’s information technology and finance transformation programs, both of which are multi-year initiatives to upgrade and modernize the Company’s systems and processes. These costs relate primarily to Corporate.
(e)	Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.
(f)	Represents charges incurred associated with the Reorganization, including professional fees. The charges relate primarily to Corporate.
(g)	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 September 30, 2020 are $17 million, $15 million, $3 million and $9 million, respectively, and for the nine months ended September 30, 2020 are $32 million, $17 million, $3 million and $37 million, respectively.
(h)	Represents miscellaneous items. In 2020, includes $18 million for losses associated with certain vehicle damages of which $15 million impacts U.S. RAC and $3 million impacts International RAC which were recorded in the second quarter, partially offset by a $20 million gain on the sale of non-vehicle capital assets in U.S. RAC, which was recorded in the first quarter. In 2019, includes a $26 million gain on marketable securities in Corporate, of which $6 million was recorded in the third quarter, and a $15 million gain on the sale of non-vehicle capital assets in U.S. RAC, of which $3 million was recorded in the third quarter.
(i)	Adjustments by caption on a pre-tax basis are as follows:

Increase (decrease) to expenses	Three Months Ended September 30,								Nine Months Ended September 30,
(In millions)	2020				2019				2020				2019
Direct vehicle and operating	$	(14)			$	(13)			$	(83)			$	(40)
Selling, general and administrative	(38)				(17)				(104)				(83)
Interest expense, net:
Vehicle	(34)				(10)				(73)				(29)
Non-vehicle	—				(7)				(6)				(15)
Total interest expense, net	(34)				(17)				(79)				(44)
Intangible and other asset impairments	—				—				(193)				—
Other income (expense), net	(4)				5				6				37
Reorganization items, net	(78)				—				(101)				—
Total adjustments	$	(168)			$	(42)			$	(554)			$	(130)

(j)	Derived utilizing a combined statutory rate of 25% for the three and nine months ended September 30, 2020 and 2019 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 September 30, 2020 are $46 million, $6 million, $2 million and $4 million, respectively, and for the three months ended September 30, 2019 are $38 million, $6 million, $3 million and $4 million, respectively. Non-vehicle depreciation and amortization expense for U.S. RAC, International RAC, All Other Operations and Corporate for the nine months ended September 30, 2020 are $134 million, $16 million, $7 million and $11 million, respectively, and for the nine months ended September 30, 2019 are $116 million, $18 million, $8 million and $9 million, respectively.
(m)	Vehicle debt-related charges for U.S. RAC, International RAC and All Other Operations for the three months ended September 30, 2020 are $9 million, $3 million and $1 million, respectively, and for the three months ended September 30, 2019 are $6 million, $3 million, and $1 million, respectively. Vehicle debt-related charges for U.S. RAC, International RAC and All Other Operations for the nine months ended September 30, 2020 are $23 million, $11 million and $3 million, respectively, and for the nine months ended September 30, 2019 are $16 million, $10 million and $3 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 September 30,								Percent Inc/(Dec)			Nine Months Ended September 30,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019							2020				2019
Total RPD
Total revenues	$	866			$	1,962						$	2,780			$	5,266
Ancillary retail vehicle sales revenue	(35)				(30)							(105)				(92)
Total Rental Revenues	$	831			$	1,932						$	2,675			$	5,174
Transaction Days (in thousands)	17,971				41,399							62,499				118,153
Total RPD (in whole dollars)	$	46.27			$	46.67			(1)	%		$	42.81			$	43.79			(2)	%
Total Revenue Per Unit Per Month
Total Rental Revenues	$	831			$	1,932						$	2,675			$	5,174
Average Vehicles (in whole units)	376,443				566,229							465,929				540,930
Total revenue per unit (in whole dollars)	$	2,208			$	3,412						$	5,741			$	9,565
Number of months in period (in whole units)	3				3							9				9
Total RPU Per Month (in whole dollars)	$	736			$	1,137			(35)	%		$	638			$	1,063			(40)	%
Vehicle Utilization
Transaction Days (in thousands)	17,971				41,399							62,499				118,153
Average Vehicles (in whole units)	376,443				566,229							465,929				540,930
Number of days in period (in whole units)	92				92							274				273
Available Car Days (in thousands)	34,633				52,093							127,665				147,674
Vehicle Utilization(a)	52		%		79		%					49		%		80		%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges	$	182			$	420						$	1,054			$	1,217
Average Vehicles (in whole units)	376,443				566,229							465,929				540,930
Depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$	483			$	742						$	2,262			$	2,250
Number of months in period (in whole units)	3				3							9				9
Depreciation Per Unit Per Month (in whole dollars)	$	161			$	247			(35)	%		$	251			$	250			—	%
(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 September 30,								Percent Inc/(Dec)			Nine Months Ended September 30,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019							2020				2019
Total RPD
Total revenues	$	253			$	702						$	755			$	1,695
Foreign currency adjustment(a)	(7)				8							5				4
Total Rental Revenues	$	246			$	710						$	760			$	1,699
Transaction Days (in thousands)	6,194				15,631							19,314				38,884
Total RPD (in whole dollars)	$	39.75			$	45.44			(13)	%		$	39.36			$	43.68			(10)	%
Total Revenue Per Unit Per Month
Total Rental Revenues	$	246			$	710						$	760			$	1,699
Average Vehicles (in whole units)	104,045				213,294							127,216				184,307
Total revenue per unit (in whole dollars)	$	2,364			$	3,329						$	5,974			$	9,218
Number of months in period (in whole units)	3				3							9				9
Total RPU Per Month (in whole dollars)	$	789			$	1,110			(29)	%		$	664			$	1,024			(35)	%
Vehicle Utilization
Transaction Days (in thousands)	6,194				15,631							19,314				38,884
Average Vehicles (in whole units)	104,045				213,294							127,216				184,307
Number of days in period (in whole units)	92				92							274				273
Available Car Days (in thousands)	9,572				19,623							34,857				50,316
Vehicle Utilization(b)	65		%		80		%					55		%		77		%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges	$	59			$	126						$	228			$	329
Foreign currency adjustment(a)	(2)				2							3				—
Adjusted depreciation of revenue earning vehicles and lease charges	$	57			$	128						$	231			$	329
Average Vehicles (in whole units)	104,045				213,294							127,216				184,307
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$	548			$	600						$	1,816			$	1,785
Number of months in period (in whole units)	3				3							9				9
Depreciation Per Unit Per Month (in whole dollars)	$	183			$	199			(8)	%		$	202			$	198			2	%
(a) Based on December 31, 2019 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 September 30,								Percent Inc/(Dec)			Nine Months Ended September 30,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019							2020				2019
Total RPD
Total revenues	$	1,119			$	2,664						$	3,535			$	6,960
Ancillary retail vehicle sales revenue	(35)				(30)							(105)				(92)
Foreign currency adjustment(a)	(7)				8							5				4
Total Rental Revenues	$	1,077			$	2,642						$	3,435			$	6,872
Transaction Days (in thousands)	24,165				57,030							81,813				157,037
Total RPD (in whole dollars)	$	44.60			$	46.33			(4)	%		$	41.99			$	43.76			(4)	%
Total Revenue Per Unit Per Month
Total Rental Revenues	$	1,077			$	2,642						$	3,435			$	6,872
Average Vehicles (in whole units)	480,488				779,523							593,145				725,237
Total revenue per unit (in whole dollars)	$	2,241			$	3,389						$	5,791			$	9,476
Number of months in period (in whole units)	3				3							9				9
Total RPU Per Month (in whole dollars)	$	748			$	1,130			(34)	%		$	644			$	1,053			(39)	%
Vehicle Utilization
Transaction Days (in thousands)	24,165				57,030							81,813				157,037
Average Vehicles (in whole units)	480,488				779,523							593,145				725,237
Number of days in period (in whole units)	92				92							274				273
Available Car Days (in thousands)	44,205				71,716							162,522				197,990
Vehicle Utilization(b)	55		%		80		%					50		%		79		%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges	$	241			$	546						$	1,282			$	1,546
Foreign currency adjustment(a)	(2)				2							3				—
Adjusted depreciation of revenue earning vehicles and lease charges	$	239			$	548						$	1,285			$	1,546
Average Vehicles (in whole units)	480,488				779,523							593,145				725,237
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$	497			$	703						$	2,166			$	2,132
Number of months in period (in whole units)	3				3							9				9
Depreciation Per Unit Per Month (in whole dollars)	$	166			$	234			(29)	%		$	241			$	237			2	%
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, reorganization items, pre-reorganization and non-debtor financing 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, reorganization items, pre-reorganization and non-debtor financing charges 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. 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., Oct. 30, 2020 /PRNewswire/ — Hertz Global Holdings, Inc. (OTC: HTZGQ) today announced that its common stock will start trading exclusively on the over-the-counter market. Stock quotations will be available on the OTC Bulletin Board (Pink Sheets) under the ticker symbol HTZGQ.

The NYSE determined that Hertz was no longer suitable for listing following the Company’s May 22, 2020 Chapter 11 filing and its review of the Company’s appeal of the delisting. The stock will no longer trade on the NYSE effective October 30, 2020.

Investor information is available on the Company’s website at http://ir.hertz.com/. Information about the Chapter 11 case and Court filings are available on https://restructuring.primeclerk.com/hertz.

SOURCE Hertz Global Holdings, Inc.

ESTERO, Fla., Oct. 19, 2020 /PRNewswire/ — Hertz Global Holdings, Inc., (NYSE: HTZ), a global leader in car rental, today announced that Alexandra (Alex) Brooks has been appointed to Senior Vice President and Chief Accounting Officer, effective November 1, 2020. Ms. Brooks will oversee the company’s global accounting operations, financial shared services, tax and risk management.

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Ms. Brooks previously had served as Senior Vice President, Internal Audit at Hertz since June 2020. She has more than 25 years of experience in finance, accounting and audit. Prior to joining Hertz, Ms. Brooks was Vice President, Internal Audit at Aptiv PLC, a global technology company, and before that was the Chief Financial Officer for Champion Windows and Home Exteriors, a home improvement company. She has also held a variety of leadership roles at the General Electric Company, including Global Controller for the Aviation segment, Executive Technical Advisor to the Corporate Audit Staff and Global Controller for the Plastics division. Additionally, Ms. Brooks worked at the General Motors Company in a variety of finance and accounting roles and began her career with Pricewaterhouse Coopers.

Ms. Brooks is a Certified Public Accountant with an MBA from Wayne State University and a Bachelor of Science in accounting from the University of Rhode Island.

"In a short time, Alex has made significant contributions to Hertz," said Kenny Cheung, Executive Vice President and Chief Financial Officer. "I know her leadership and extensive accounting, finance and audit experience will continue to serve Hertz well as we further progress our efforts to ensure a strong future for the company."

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. 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.

For further information:

Hertz Media Relations
mediarelations@hertz.com

SOURCE Hertz Global Holdings, Inc.

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http://www.hertz.com

ESTERO, Fla., Oct. 16, 2020 /PRNewswire/ — Hertz Global Holdings, Inc. (NYSE: HTZ) today announced that it has secured commitments for debtor-in-possession ("DIP") financing totaling $1.65 billion and has filed a motion for approval of the financing by the U.S. Bankruptcy Court for the District of Delaware.

Hertz President and CEO Paul Stone said, "This new financing will provide additional financial flexibility as we continue to navigate the pandemic’s effects on the travel industry and take steps to best position our business for the future. We are pleased with the strong interest from our pre-petition first-lien lenders and appreciate their support of Hertz and our future opportunities as a rental car leader."

The proposed DIP financing will support the Company as it moves through its next stage of its Chapter 11 process. The financing is to be provided by certain of the Company’s pre-petition first-lien lenders and is expected to be structured as a delayed draw term loan debtor facility. Up to $1 billion can be used to provide equity for vehicle acquisition in the U.S. and Canada. Up to $800 million can be used for working capital and general corporate purposes. The financing is subject to finalization of definitive documentation, Court approval and other customary conditions, and a hearing is scheduled for October 29, 2020.

Moelis & Co. is serving as investment banker, FTI Consulting is serving as Hertz’s financial advisor and White & Case LLP is serving as Hertz’s legal advisor.

Additional information about the DIP financing and Court filings are available on https://restructuring.primeclerk.com/hertz.

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. 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.

SOURCE Hertz Global Holdings, Inc.

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http://www.hertz.com

ESTERO, Fla., Oct. 14, 2020 /PRNewswire/ — Hertz today announced that for the second consecutive year it has earned the No. 1 overall ranking for Customer Satisfaction in the J.D. Power 2020 North America Rental Car Satisfaction Study, which surveys leisure and business customers. Hertz also received top honors in the following categories: reservation process, pick-up process and rental car, which includes satisfaction with the overall vehicle and its cleanliness.

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"From the beginning of their journey to the end, our customers’ satisfaction is the heartbeat of everything we do," said Hertz President and CEO Paul Stone. "While the rental car and overall travel industry has faced challenges during the pandemic, I’m grateful to our employees for taking great care of our customers and implementing our enhanced measures that enabled us to continue providing a safe, fast and easy rental experience."

As traveler needs shifted amid the pandemic, Hertz quickly adapted to meet customer expectations. The car rental brand raised the bar on its already high standards for safety and cleanliness by introducing the Hertz Gold Standard Clean seal. Each vehicle is sealed immediately following a rigorous 15-point cleaning and sanitization process that follows U.S. Centers for Disease Control and Prevention (CDC) guidelines. This is a first-of-its-kind practice in the car rental industry.

To further help customers travel safely and confidently, Hertz launched new capabilities within its mobile app this year to facilitate a touchless rental experience by enabling them to select and purchase more products and services digitally. These enhancements complement the low-touch and touchless solutions that Hertz offers through its Hertz Gold Plus Rewards loyalty program. Gold Plus Rewards members can minimize or eliminate personal contact by skipping the counter at many airports and going straight to their car. When they return, members can drop off their car and go with Hertz’s eReceipt and Express Return service. Hertz Gold Plus Rewards is free to join and benefits are immediately available.

To celebrate its second consecutive J.D. Power No. 1 ranking and thank its customers, Hertz is offering a free car class upgrade for a limited time. Additionally, through December 31, 2020, Hertz will award a free two-day rental to five customers each week who share their positive Hertz experience on social media with a written story, photo or video using #1Hertz. For more details and official rules, visit: Hertz.com/JDPower.

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

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ESTERO, Fla., Sept. 28, 2020 /PRNewswire/ — Hertz Global Holdings, Inc. (NYSE: HTZ) (the "Company" or "Hertz") a global leader in car rental, today announced that Kenny K. Cheung, recently promoted to Executive Vice President of Finance, Chief Operational Finance and Restructuring Officer, assumed the role of Chief Financial Officer, effective September 24, 2020. He succeeds R. Eric Esper, who has resigned to pursue a new opportunity and will remain with Hertz as Chief Accounting Officer until November 1, 2020, to assist in the transition of those responsibilities.

Previously, Mr. Cheung served as Senior Vice President of Global Financial Planning & Analysis and Chief Financial Officer of North America at Hertz. He joined the Company in December 2018. Prior to that, he held financial leadership roles with Nielsen Holdings, PLC, most recently as Global Chief Audit Executive, and prior to that as a regional Chief Operating Officer after serving as regional Chief Financial Officer. Prior to Nielsen, Mr. Cheung worked for General Electric in various roles across Supply Chain, Operations, and Financial Planning & Analysis.

Paul Stone, CEO of Hertz said, "Kenny has developed a deep understanding of our business and we’re pleased that he is stepping into this role and expanding his financial leadership responsibilities at this important time as we continue taking steps to best position Hertz for the future."

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. Product and service initiatives such as Hertz Gold Plus Rewards, Ultimate Choice, Carfirmations, Mobile Wi-Fi and unique vehicles offered through its specialty collections set Hertz apart from the competition. Additionally, The Hertz Corporation owns the vehicle leasing and fleet management leader Donlen Corporation, operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit: www.hertz.com.

SOURCE Hertz Global Holdings, Inc.

Related Links

http://www.hertz.com

ESTERO, Fla., Aug. 14, 2020 /PRNewswire/ — Hertz Global Holdings, Inc. (NYSE: HTZ) ( the "Company" or "Hertz") a global leader in car rental, today announced that Chief Financial Officer (CFO) Jamere Jackson, has resigned to pursue a new opportunity. Mr. Jackson will remain with Hertz until September 11, 2020, to assist in the transition of his responsibilities.

The Company also today announced the promotion of R. Eric Esper to Executive Vice President of Finance, Chief Financial Officer, and Kenny K. Cheung to Executive Vice President of Finance, Chief Operational Finance and Restructuring Officer, effective immediately. They will report directly to Paul Stone, Hertz’s President and Chief Executive Officer, as will the Company’s Treasurer, Scott Massengill.

Mr. Esper has served as Senior Vice President and Chief Accounting Officer of Hertz since November 2018. He previously served as Vice President and Controller of the Company beginning March 2018. From July 2010 to March 2018, Mr. Esper held a variety of financial leadership roles with Norwegian Cruise Line Holdings Ltd., most recently as Vice President, Brand Finance & Strategy, and Vice President and Controller. Prior to that, Mr. Esper was with PricewaterhouseCooper, LLC. He is a Certified Public Accountant.

Mr. Cheung has served as Senior Vice President of Global Financial Planning & Analysis and Chief Financial Officer of North America at Hertz. He joined the Company in December 2018. He previously held a variety of financial leadership roles with Nielsen Holdings, PLC ("Nielsen"), an information, data and measurement firm, most recently as Global Chief Audit Executive, and prior to that as a regional Chief Operating Officer after holding the position of regional Chief Financial Officer. Prior to Nielsen, Mr. Cheung worked for General Electric in various roles across Supply Chain, Operations, and FP&A.

Mr. Massengill has served as Senior Vice President and Treasurer of Hertz since July 2008. Prior to joining Hertz, Mr. Massengill served as Chief Financial Officer for the $2 billion domestic residential heating and air conditioning business division of Trane Inc. (formerly American Standard Companies Inc.) from 2005 to 2008. Prior to that, he was Vice President and Treasurer at American Standard from 2001 to 2005. Mr. Massengill has also held management level financial positions at Bristol–Myers Squibb, AlliedSignal and Exxon.

"The finance function is extremely important. This leadership structure provides us with deep expertise that will be especially valuable as we navigate the uncertainty around travel that the global pandemic has produced and as we work our way through the bankruptcy process," said Stone. "We’re fortunate to have incredible bench strength on our Finance team. I’ve worked closely with Eric, Kenny and Scott for several years, and appreciate the value they add through the different perspectives they bring, while remaining tightly aligned on vision and strategy."

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. Product and service initiatives such as Hertz Gold Plus Rewards, Ultimate Choice, Carfirmations, Mobile Wi-Fi and unique vehicles offered through its specialty collections set Hertz apart from the competition. Additionally, The Hertz Corporation owns the vehicle leasing and fleet management leader Donlen Corporation, operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit: www.hertz.com.

SOURCE Hertz Global Holdings, Inc.

ESTERO, Fla., Aug. 10, 2020 /PRNewswire/ — Hertz Global Holdings, Inc. (NYSE: HTZ) ("Hertz Global" or the "Company") today reported results for its second quarter 2020 with revenue of $832 million, a net loss attributable to the Company of $847 million and Adjusted Corporate EBITDA of negative $587 million. Liquidity at the end of the second quarter was $1.4 billion.

"In the second quarter, like so many companies whose revenues have sharply declined due to the pandemic’s significant impact on global travel, we had to make difficult but necessary decisions to strengthen and position the company for growth for many years to come," said Paul Stone, President and Chief Executive Officer of Hertz Global. "The toughest decisions have been those that impact the livelihood of our dedicated workforce and our voluntarily reorganizing under Chapter 11 in North America. We are moving through our reorganization process and remain focused on emerging an even stronger global rental car leader better positioned to serve our customers around the world."

In the second quarter, global revenue declined 67%. While air travel around the world experienced a significant slowdown, and the U.S. car sales market was extremely limited until May, the Company worked to align labor with rental demand, cancel new-fleet orders, return program vehicles, cut all non-essential spending and capital expenses, and consolidate off-airport rental locations for efficiency. As a result, the Company reduced global direct operating and SG&A expenses by 47% year-over-year in the second quarter.

Global revenue in April, May and June, while down versus prior year, showed sequential monthly improvement as states and countries began to re-open. During the quarter, Hertz Global capitalized on positive trends in its new driver and delivery service offering and saw an increase in cargo trucks and van rentals off airport. Insurance replacement rentals also experienced a restart as more cars returned to the highways. Leisure air travel began to pick up heading into the domestic July 4th holiday in the U.S. However, a rise in COVID-19 infections in the south and west since then caused the positive leisure trend to slow again.

The U.S. used-car market experienced a strong rebound in May and June. At the end of the second quarter, the number of vehicles in the global fleet was 29% lower year over year. The Company is capitalizing on the robust demand and record-high resale pricing by significantly ramping up its used-car sales efforts in North America.

"We continue to make disciplined adjustments to our cost structure based on revenue fluctuations and expect to generate about $2.5 billion in annualized savings," said Stone. "Our priority is fleet management. The continued strong used-car market allows us to continue to sell cars aggressively as we right-size the fleet to align with market realities. Across the business, our team is laser-focused on capturing revenue, driving efficiency and advancing critical technology. In the U.S., we continue to capitalize on rental opportunities off airport, while ensuring customer service levels remain best-in-class. Internationally, our fleet is trending toward demand levels. And our Donlen leasing business remains stable. Finally, continuing to keep our teams and our customers safe in this unpredictable environment is of utmost importance to everyone at Hertz."

In addition to following social distancing best practices and daily employee health assessments at Hertz, Dollar and Thrifty locations, the Company raised the bar on its high standards for safety and cleanliness. Every vehicle is being sealed and certified ‘Hertz Gold Standard Clean’ after undergoing a 15-point cleaning and sanitization process that follows global health agency guidelines and uses EPA-approved products. The Company also has directed that masks be worn by all employees in its field and corporate locations across the U.S. Similarly, masks are now required for U.S. customers to help protect not only the renters, but also the tens of thousands of Hertz employees working to serve our customers every day. The Company’s Ultimate Choice vehicle pick-up option and digital app for adding ancillary products and services allows renters to bypass the counter for a contactless experience.

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

U.S. RAC	Three Months Ended June 30,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019
Total revenues	$	533			$	1,784			(70)	%
Adjusted EBITDA	$	(470)			$	156			NM
Adjusted EBITDA Margin	(88)		%		9		%
Average Vehicles (in whole units)	502,763				554,794				(9)	%
Vehicle Utilization	28		%		82		%
Transaction Days (in thousands)	12,964				41,173				(69)	%
Total RPD (in whole dollars)	$	38.17			$	42.54			(10)	%
Total RPU Per Month (in whole dollars)	$	328			$	1,052			(69)	%
Depreciation Per Unit Per Month (in whole dollars)	$	271			$	247			10	%

NM – Not meaningful

Total U.S. RAC revenues were down 70% year-over-year. Airport rental car volume declined 82%, roughly in line with airline travel weakness resulting from COVID-19 restrictions. Off airport volume declined 47% as the impact on demand for insurance replacement rentals was less severe than travel-related rentals and demand for delivery vans increased. The mix shift in volume from airport rentals to lower-priced, longer-length off-airport rentals contributed to a 10% decrease in Total RPD. Off airport revenues comprised 60% of total revenues for the segment versus 32% for the second quarter 2019.

Depreciation Per Unit Per Month was impacted by residual values on certain vehicle models.

During the quarter, the Company reduced the size of the U.S. operating fleet and took measures to align staffing levels and operating costs with the decline in demand. The aggressive cost reduction actions and lower volume drove a $547 million decrease in direct operating and selling, general and administration expenses.

The Company remains focused on sustainable cost-savings and right-sizing its U.S. RAC fleet.

INTERNATIONAL RENTAL CAR ("INTERNATIONAL RAC") SUMMARY
_______________________________________________________________________________________________________

International RAC	Three Months Ended June 30,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019
Total revenues	$	135			$	560			(76)	%
Adjusted EBITDA	$	(127)			$	56			NM
Adjusted EBITDA Margin	(94)		%		10		%
Average Vehicles (in whole units)	129,615				186,881				(31)	%
Vehicle Utilization	36		%		77		%
Transaction Days (in thousands)	4,256				13,125				(68)	%
Total RPD (in whole dollars)	$	32.56			$	42.68			(24)	%
Total RPU Per Month (in whole dollars)	$	356			$	999			(64)	%
Depreciation Per Unit Per Month (in whole dollars)	$	215			$	189			14	%

NM – Not meaningful

Total International RAC revenues were down 76% year-over-year on a constant currency basis. Airport rental car volume declined 84%, roughly in line with airline travel weakness resulting from COVID-19 restrictions. Off airport volume declined 47% as the impact of the pandemic was less substantial for local rentals. The mix shift in volume from airport rentals to lower-priced, longer-length off-airport rentals contributed to a 24% decrease in Total RPD. Off airport revenues comprised 71% of total revenues for the segment versus 40% for the second quarter 2019.

Depreciation Per Unit Per Month increased primarily due to the impact of lower residual values on risk vehicles and shortened hold periods on certain program vehicles.

During the quarter, the Company significantly reduced the size of the International operating fleet and eliminated non-essential spend. International RAC direct operating and selling, general and administration expenses were down $210 million year-over-year in the quarter.

The Company remains focused on sustainable cost-savings and right-sizing its International fleet.

ALL OTHER OPERATIONS SUMMARY
___________________________________________________________

All Other Operations	Three Months Ended June 30,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019
Total revenues	$	164			$	167			(1)	%
Adjusted EBITDA	$	23			$	24			(3)	%
Adjusted EBITDA Margin	14		%		14		%
Average Vehicles (in whole units) – Donlen	196,018				207,704				(6)	%

All Other Operations primarily is comprised of the Company’s Donlen leasing and fleet management operations. Revenue and Adjusted EBITDA for the quarter remained relatively stable.

FINANCIAL REORGANIZATION
_______________________________________________________

As previously announced, on May 22, 2020, Hertz Global and its operating subsidiary, The Hertz Corporation ("Hertz") (and together with Hertz Global, 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 Form 10-Qs for the quarterly period ended June 30, 2020 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.

RESULTS OF THE HERTZ CORPORATION
________________________________________________________________

The Company’s operating subsidiary, The Hertz Corporation ("Hertz"), posted the same revenues as the Company for the second quarter of 2020. Hertz’s second quarter 2020 pre-tax loss was $1.2 billion versus the Company’s pre-tax loss of $1.0 billion. The difference between Hertz’s and the Company’s GAAP results is primarily due to Hertz’s write off in the second quarter of 2020 of $133 million due from the Company. The non-GAAP profitability metrics for Hertz are materially the same as those for Hertz Global.

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. Product and service initiatives such as Hertz Gold Plus Rewards, Ultimate Choice, Carfirmations, Mobile Wi-Fi and unique vehicles offered through its specialty collections set Hertz apart from the competition. Additionally, The Hertz Corporation owns the vehicle leasing and fleet management leader Donlen Corporation, operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit: www.hertz.com.

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 Securities and Exchange Commission ("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 requirements, 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; the Company’s ability to maintain a listing of its common stock on the New York Stock Exchange; the value of the Company’s common stock due to the Chapter 11 process; levels of travel demand, particularly with respect to business and leisure travel in the United States and in global markets; the length and severity of the COVID-19 pandemic and the impact on the Company’s vehicle rental business as a result of travel restrictions and business closures or disruptions; the impact of the COVID-19 pandemic 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 the COVID-19 pandemic 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 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, including on the Company’s pricing policies or use of incentives; occurrences that disrupt rental activity during the Company’s peak periods; the Company’s ability to accurately estimate future levels of rental activity and adjust the number and mix of vehicles used in the Company’s rental operations accordingly; increased vehicle costs due to declining value of the Company’s non-program vehicles; the Company’s ability to maintain sufficient liquidity and the availability 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 senior credit facilities and letter of credit facilities, its outstanding unsecured senior notes, its outstanding senior second priority secured notes and certain asset-backed and asset-based arrangements; the Company’s ability to access financial markets, including the financing of 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 purchase adequate supplies of competitively priced vehicles and risks relating to increases in the cost of the vehicles it purchases; the Company’s recognition of previously deferred tax gains on the disposition of revenue earning vehicles; financial instability of the manufacturers of the Company’s vehicles, which could impact their ability to fulfill obligations under repurchase or guaranteed depreciation programs; an increase in the Company’s vehicle costs or disruption to the Company’s rental activity, particularly during peak periods, due to safety recalls by the manufacturers of the Company’s vehicles; the Company’s ability to execute a business continuity plan; the Company’s access to third-party distribution channels and related prices, commission structures and transaction volumes; the Company’s ability to retain customer loyalty and market share; risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anticorruption or antibribery laws, the Company’s ability to repatriate cash from non-U.S. affiliates without adverse tax consequences, the Company’s exposure to fluctuations in foreign currency exchange rates and the Company’s ability to effectively manage its international operations after the United Kingdom’s withdrawal from the European Union; a major disruption in the Company’s communication or centralized information networks; a failure to maintain, upgrade and consolidate the Company’s information technology systems; costs and risks associated with litigation and investigations or any failure or inability to comply with laws and regulations or any changes in the legal and regulatory environment, including laws and regulations relating to environmental matters and consumer privacy and data security; the Company’s ability to maintain its network of leases and vehicle rental concessions at airports in the U.S. and internationally; the Company’s ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy;; 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; 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 the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

______________________

FINANCIAL INFORMATION AND OPERATING DATA
_____________________________________________________________________________

SELECTED UNAUDITED CONSOLIDATED INCOME STATEMENT DATA

	Three Months Ended June 30,								As a Percentage of Total Revenues						Six Months Ended June 30,								As a Percentage of Total Revenues
(In millions, except per share data)	2020				2019				2020			2019			2020				2019				2020			2019
Total revenues	$	832			$	2,511			100	%		100	%		$	2,755			$	4,618			100	%		100	%
Expenses:
Direct vehicle and operating	704				1,388				85	%		55	%		1,945				2,655				71	%		57	%
Depreciation of revenue earning vehicles and lease charges	610				634				73	%		25	%		1,286				1,226				47	%		27	%
Selling, general and administrative	168				258				20	%		10	%		377				490				14	%		11	%
Interest expense, net:
Vehicle	132				127				16	%		5	%		250				238				9	%		5	%
Non-vehicle	44				72				5	%		3	%		101				144				4	%		3	%
Total interest expense, net	176				199				21	%		8	%		351				382				13	%		8	%
Technology-related intangible and other asset impairments	193				—				23	%		—	%		193				—				7	%		—	%
Other (income) expense, net	2				(12)				—	%		—	%		(15)				(31)				(1)	%		(1)	%
Reorganization items, net	23				—				3	%		—	%		23				—				1	%		—	%
Total expenses	1,876				2,467				225	%		98	%		4,160				4,722				151	%		102	%
Income (loss) before income taxes	(1,044)				44				(125)	%		2	%		(1,405)				(104)				(51)	%		(2)	%
Income tax (provision) benefit	192				(4)				23	%		—	%		196				(3)				7	%		—	%
Net income (loss)	(852)				40				(102)	%		2	%		(1,209)				(107)				(44)	%		(2)	%
Net (income) loss attributable to noncontrolling interests	5				(2)				1	%		—	%		6				(1)				—	%		—	%
Net income (loss) attributable to Hertz Global	$	(847)			$	38			(102)	%		2	%		$	(1,203)			$	(108)			(44)	%		(2)	%
Weighted-average number of shares outstanding:
Basic	144				96										143				96
Diluted	144				97										143				96
Earnings (loss) per share:
Basic	$	(5.86)			$	0.40									$	(8.39)			$	(1.13)
Diluted	$	(5.86)			$	0.40									$	(8.39)			$	(1.13)
Adjusted Net Income (Loss)(a)	$	(508)			$	71									$	(760)			$	(12)
Adjusted Diluted Earnings (Loss) Per Share(a)	$	(3.51)			$	0.74									$	(5.30)			$	(0.12)
Adjusted Corporate EBITDA(a)	$	(587)			$	207									$	(830)			$	203

(a)	Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule II.

Supplemental Schedule I
HERTZ GLOBAL HOLDINGS, INC. CONDENSED STATEMENT OF OPERATIONS BY SEGMENT Unaudited
	Three Months Ended June 30, 2020																				Three Months Ended June 30, 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:	$	533			$	135			$	164			$	—			$	832			$	1,784			$	560			$	167			$	—			$	2,511
Expenses:
Direct vehicle and operating	561				136				6				1				704				1,052				330				7				(1)				1,388
Depreciation of revenue earning vehicles and lease charges	408				81				121				—				610				411				106				117				—				634
Selling, general and administrative	63				39				8				58				168				119				55				7				77				258
Interest expense, net:
Vehicle	98				23				11				—				132				90				24				13				—				127
Non-vehicle	(21)				—				(3)				68				44				(47)				(1)				(5)				125				72
Total interest expense, net	77				23				8				68				176				43				23				8				125				199
Technology-related intangible and other asset impairments	—				—				—				193				193				—				—				—				—				—
Other (income) expense, net	2				(3)				—				3				2				(5)				—				—				(7)				(12)
Reorganization items, net	(1)				—				—				24				23				—				—				—				—				—
Total expenses	1,110				276				143				347				1,876				1,620				514				139				194				2,467
Income (loss) before income taxes	$	(577)			$	(141)			$	21			$	(347)			$	(1,044)			$	164			$	46			$	28			$	(194)			$	44
Income tax (provision) benefit																	192																				(4)
Net income (loss)																	$	(852)																			$	40
Net (income) loss attributable to noncontrolling interests																	5																				(2)
Net income (loss) attributable to Hertz Global																	$	(847)																			$	38

Supplemental Schedule I (continued)
HERTZ GLOBAL HOLDINGS, INC. CONDENSED STATEMENT OF OPERATIONS BY SEGMENT Unaudited
	Six Months Ended June 30, 2020																				Six Months Ended June 30, 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:	$	1,914			$	502			$	339			$	—			$	2,755			$	3,304			$	993			$	321			$	—			$	4,618
Expenses:
Direct vehicle and operating	1,530				401				13				1				1,945				2,028				614				13				—				2,655
Depreciation of revenue earning vehicles and lease charges	871				170				245				—				1,286				797				203				226				—				1,226
Selling, general and administrative	180				85				5				107				377				241				111				14				124				490
Interest expense, net:
Vehicle	183				44				23				—				250				166				47				25				—				238
Non-vehicle	(68)				(1)				(8)				178				101				(92)				(3)				(9)				248				144
Total interest expense, net	115				43				15				178				351				74				44				16				248				382
Technology-related intangible and other asset impairments	—				—				—				193				193				—				—				—				—				—
Other (income) expense, net	(19)				—				—				4				(15)				(13)				—				—				(18)				(31)
Reorganization items, net	(1)				—				—				24				23				—				—				—				—				—
Total expenses	2,676				699				278				507				4,160				3,127				972				269				354				4,722
Income (loss) before income taxes	$	(762)			$	(197)			$	61			$	(507)			$	(1,405)			$	177			$	21			$	52			$	(354)			$	(104)
Income tax (provision) benefit																	196																				(3)
Net income (loss)																	$	(1,209)																			$	(107)
Net (income) loss attributable to noncontrolling interests																	6																				(1)
Net income (loss) attributable to Hertz Global																	$	(1,203)																			$	(108)

Supplemental Schedule II
HERTZ GLOBAL HOLDINGS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURE – ADJUSTED NET INCOME (LOSS), ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE AND ADJUSTED CORPORATE EBITDA Unaudited
	Three Months Ended June 30,								Six Months Ended June 30,
(In millions, except per share data)	2020				2019				2020				2019
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share:
Net income (loss) attributable to Hertz Global	$	(847)			$	38			$	(1,203)			$	(108)
Adjustments:
Income tax provision (benefit)	(192)				4				(196)				3
Vehicle and non-vehicle debt-related charges(a)	18				13				30				26
Technology-related intangible and other asset impairments(b)	193				—				193				—
Restructuring and restructuring related charges(c)	41				4				47				10
Information technology and finance transformation costs(d)	8				38				25				60
Acquisition accounting-related depreciation and amortization(e)	13				14				27				27
Reorganization items, net(f)	23				—				23				—
Pre-reorganization and non-debtor financing charges(g)	45				—				45				—
Other items(h)	21				(16)				(5)				(34)
Adjusted pre-tax income (loss)(i)	(677)				95				(1,014)				(16)
Income tax (provision) benefit on adjusted pre-tax income (loss)(j)	169				(24)				254				4
Adjusted Net Income (Loss)	$	(508)			$	71			$	(760)			$	(12)
Weighted-average number of diluted shares outstanding	144				97				143				96
Adjusted Diluted Earnings (Loss) Per Share(k)	$	(3.51)			$	0.74			$	(5.30)			$	(0.12)
Adjusted Corporate EBITDA:
Net income (loss) attributable to Hertz Global	(847)				38				(1,203)				(108)
Adjustments:
Income tax provision (benefit)	(192)				4				(196)				3
Non-vehicle depreciation and amortization(l)	57				51				110				99
Non-vehicle debt interest, net of interest income	44				72				101				144
Vehicle debt-related charges(a)(m)	15				9				24				19
Technology-related intangible and other asset impairments(b)	193				—				193				—
Restructuring and restructuring related charges(c)	41				4				47				10
Information technology and finance transformation costs(d)	8				38				25				60
Reorganization items, net(f)	23				—				23				—
Pre-reorganization and non-debtor financing charges(g)	45				—				45				—
Other items(h)(n)	26				(9)				1				(24)
Adjusted Corporate EBITDA	$	(587)			$	207			$	(830)			$	203

Supplemental Schedule II (continued)
(a)	Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.
(b)	Represents the impairment of technology-related intangible assets and capitalized cloud computing implementation costs. These costs relate to the Company’s corporate operations ("Corporate").
(c)	Represents charges incurred under restructuring actions as defined in U.S. GAAP, excluding impairments and asset write-downs. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives.
(d)	Represents costs associated with the Company’s information technology and finance transformation programs, both of which are multi-year initiatives to upgrade and modernize the Company’s systems and processes. These costs relate primarily to Corporate.
(e)	Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.
(f)	Represents charges incurred associated with the Reorganization, including professional fees. The charges relate primarily to Corporate.
(g)	Represents charges incurred prior to the Reorganization comprised of preparation charges for the Reorganization, such as professional fees and certain non-debtor financing charges. For U.S. RAC, International RAC and Corporate charges incurred for the three and six months ended June 30, 2020 are $15 million, $2 million and $28 million, respectively.
(h)	Represents miscellaneous items. In 2020, includes a $20 million gain on the sale of non-vehicle capital assets in U.S. RAC, which was recorded in the first quarter, partially offset by second quarter charges of $18 million for losses associated with certain vehicle damages of which $15 million impacts U.S. RAC and $3 million impacts International RAC. In 2019, includes a $20 million gain on marketable securities in Corporate, of which $9 million was recorded in the second quarter, and a $12 million gain on the sale of non-vehicle capital assets in U.S. RAC, of which $4 million was recorded in the second quarter.
(i)	Adjustments by caption on a pre-tax basis are as follows:

Increase (decrease) to expenses	Three Months Ended June 30,								Six Months Ended June 30,
(In millions)	2020				2019				2020				2019
Direct vehicle and operating	$	(54)			$	(15)			$	(70)			$	(27)
Selling, general and administrative	(56)				(38)				(64)				(68)
Interest expense, net:
Vehicle	(30)				(9)				(39)				(19)
Non-vehicle	(3)				(4)				(6)				(7)
Total interest expense, net	(33)				(13)				(45)				(26)
Intangible and other asset impairments	(193)				—				(193)				—
Other income (expense), net	(3)				13				10				32
Reorganization items, net	(23)				—				(23)				—
Total adjustments	$	(362)			$	(53)			$	(385)			$	(89)

(j)	Derived utilizing a combined statutory rate of 25% for the three and six months ended June 30, 2020 and 2019 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 June 30, 2020 are $46 million, $5 million, $2 million and $4 million, respectively, and for the three months ended June 30, 2019 are $39 million, $6 million, $3 million and $3 million, respectively. Non-vehicle depreciation and amortization expense for U.S. RAC, International RAC, All Other Operations and Corporate for the six months ended June 30, 2020 are $87 million, $11 million, $5 million and $7 million, respectively, and for the six months ended June 30, 2019 are $76 million, $12 million, $5 million and $6 million, respectively.
(m)	Vehicle debt-related charges for U.S. RAC, International RAC and All Other Operations for the three months ended June 30, 2020 are $9 million, $5 million and $1 million, respectively, and for the three months ended June 30, 2019 are $5 million, $3 million, and $1 million, respectively. Vehicle debt-related charges for U.S. RAC, International RAC and All Other Operations for the six months ended June 30, 2020 are $15 million, $8 million and $1 million, respectively, and for the six months ended June 30, 2019 are $11 million, $6 million and $2 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 June 30,								Percent Inc/(Dec)			Six Months Ended June 30,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019							2020				2019
Total RPD
Total revenues	$	533			$	1,784						$	1,914			$	3,304
Ancillary retail vehicle sales revenue	(38)				(33)							(70)				(62)
Total Rental Revenues	$	495			$	1,751						$	1,844			$	3,242
Transaction Days (in thousands)	12,964				41,173							44,529				76,754
Total RPD (in whole dollars)	$	38.17			$	42.54			(10)	%		$	41.41			$	42.24			(2)	%
Total Revenue Per Unit Per Month
Total Rental Revenues	$	495			$	1,751						$	1,844			$	3,242
Average Vehicles (in whole units)	502,763				554,794							510,672				528,281
Total revenue per unit (in whole dollars)	$	985			$	3,156						$	3,611			$	6,137
Number of months in period (in whole units)	3				3							6				6
Total RPU Per Month (in whole dollars)	$	328			$	1,052			(69)	%		$	602			$	1,023			(41)	%
Vehicle Utilization
Transaction Days (in thousands)	12,964				41,173							44,529				76,754
Average Vehicles (in whole units)	502,763				554,794							510,672				528,281
Number of days in period (in whole units)	91				91							182				181
Available Car Days (in thousands)	45,751				50,486							92,942				95,619
Vehicle Utilization(a)	28		%		82		%					48		%		80		%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges	$	408			$	411						$	871			$	797
Average Vehicles (in whole units)	502,763				554,794							510,672				528,281
Depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$	812			$	741						$	1,706			$	1,509
Number of months in period (in whole units)	3				3							6				6
Depreciation Per Unit Per Month (in whole dollars)	$	271			$	247			10	%		$	284			$	251			13	%

(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 June 30,								Percent Inc/(Dec)			Six Months Ended June 30,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019							2020				2019
Total RPD
Total revenues	$	135			$	560						$	502			$	993
Foreign currency adjustment(a)	4				—							12				(4)
Total Rental Revenues	$	139			$	560						$	514			$	989
Transaction Days (in thousands)	4,256				13,125							13,119				23,252
Total RPD (in whole dollars)	$	32.56			$	42.68			(24)	%		$	39.18			$	42.49			(8)	%
Total Revenue Per Unit Per Month
Total Rental Revenues	$	139			$	560						$	514			$	989
Average Vehicles (in whole units)	129,615				186,881							138,801				169,814
Total revenue per unit (in whole dollars)	$	1,072			$	2,997						$	3,703			$	5,824
Number of months in period (in whole units)	3				3							6				6
Total RPU Per Month (in whole dollars)	$	356			$	999			(64)	%		$	617			$	970			(36)	%
Vehicle Utilization
Transaction Days (in thousands)	4,256				13,125							13,119				23,252
Average Vehicles (in whole units)	129,615				186,881							138,801				169,814
Number of days in period (in whole units)	91				91							182				181
Available Car Days (in thousands)	11,795				17,006							25,262				30,736
Vehicle Utilization(b)	36		%		77		%					52		%		76		%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges	$	81			$	106						$	170			$	203
Foreign currency adjustment(a)	3				—							4				(1)
Adjusted depreciation of revenue earning vehicles and lease charges	$	84			$	106						$	174			$	202
Average Vehicles (in whole units)	129,615				186,881							138,801				169,814
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$	648			$	567						$	1,254			$	1,190
Number of months in period (in whole units)	3				3							6				6
Depreciation Per Unit Per Month (in whole dollars)	$	215			$	189			14	%		$	209			$	198			6	%

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

Supplemental Schedule III (continued)
HERTZ GLOBAL HOLDINGS, INC. RECONCILIATIONS OF KEY METRICS REVENUE, UTILIZATION AND DEPRECIATION Unaudited
Worldwide Rental Car
	Three Months Ended June 30,								Percent Inc/(Dec)			Six Months Ended June 30,								Percent Inc/(Dec)
($ in millions, except where noted)	2020				2019							2020				2019
Total RPD
Total revenues	$	668			$	2,344						$	2,416			$	4,296
Ancillary retail vehicle sales revenue	(38)				(33)							(70)				(62)
Foreign currency adjustment(a)	4				—							12				(4)
Total Rental Revenues	$	634			$	2,311						$	2,358			$	4,230
Transaction Days (in thousands)	17,220				54,298							57,648				100,006
Total RPD (in whole dollars)	$	36.78			$	42.58			(14)	%		$	40.90			$	42.30			(3)	%
Total Revenue Per Unit Per Month
Total Rental Revenues	$	634			$	2,311						$	2,358			$	4,230
Average Vehicles (in whole units)	632,378				741,675							649,473				698,095
Total revenue per unit (in whole dollars)	$	1,003			$	3,116						$	3,631			$	6,059
Number of months in period (in whole units)	3				3							6				6
Total RPU Per Month (in whole dollars)	$	334			$	1,039			(68)	%		$	605			$	1,010			(40)	%
Vehicle Utilization
Transaction Days (in thousands)	17,220				54,298							57,648				100,006
Average Vehicles (in whole units)	632,378				741,675							649,473				698,095
Number of days in period (in whole units)	91				91							182				181
Available Car Days (in thousands)	57,546				67,492							118,204				126,355
Vehicle Utilization(b)	30		%		80		%					49		%		79		%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges	$	489			$	517						$	1,041			$	1,000
Foreign currency adjustment(a)	3				—							4				(1)
Adjusted depreciation of revenue earning vehicles and lease charges	$	492			$	517						$	1,045			$	999
Average Vehicles (in whole units)	632,378				741,675							649,473				698,095
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$	778			$	697						$	1,609			$	1,431
Number of months in period (in whole units)	3				3							6				6
Depreciation Per Unit Per Month (in whole dollars)	$	259			$	232			12	%		$	268			$	238			13	%

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, reorganization items, pre-reorganization and non-debtor financing 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, reorganization items, pre-reorganization and non-debtor financing charges 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. 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 revenues generated from non-vehicle rental activity, such as ancillary revenues resulting from vehicle sales and facilitates in comparisons with other participants in the vehicle rental industry.

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

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

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

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

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

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

Vehicle Utilization ("Utilization")

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

SOURCE Hertz Global Holdings, Inc.

Related Links

http://www.hertz.com