ESTERO, Fla., Sept. 18, 2019 /PRNewswire/ — Further accelerating its partnership with 12-time NASCAR Cup Series champions Hendrick Motorsports, Hertz (NYSE: HTZ) is proud to introduce a new "pace car" to its best fleet ever by making a limited-edition custom 2020 Camaro ZL1 and 2020 Camaro SS available to reserve for rent beginning mid-October 2019.
2020 Hertz-Hendrick Motorsports Camaro ZL1 and 2020 Hertz-Hendrick Motorsports Camaro SS
2020 Hertz-Hendrick Motorsports Camaro ZL1
2020 Hertz-Hendrick Motorsports Camaro SS
2020 Hertz-Hendrick Motorsports Upfitting
Hertz and Hendrick Motorsports Custom Badge
Auto racing fans and car enthusiasts alike can rev up their ride with the 2020 Hertz-Hendrick Motorsports Camaro ZL1 and 2020 Hertz-Hendrick Motorsports Camaro SS, which will be fashioned in the signature Hertz yellow and black color scheme with custom wheels, interior badging and full performance upgrades outfitted by NASCAR’s most successful team. Throughout Fall 2019, only 224 custom Camaros will roll into Hertz airport locations in select cities, including Atlanta, Ga., Charlotte, N.C., Dallas, Texas, Ft. Lauderdale, Fla., Ft. Myers, Fla., Houston, Texas, Las Vegas, Nev., Los Angeles, Calif., Miami, Fla., Nashville, Tenn., Orlando, Fla., Phoenix, Ariz., San Diego, Calif., San Francisco, Calif., and Tampa, Fla.
"We’re delighted to partner with Hendrick Motorsports to unveil our limited-edition 2020 Camaros," said Hertz Senior Vice President Jayesh Patel. "Both vehicles provide a powerful and exhilarating driving experience that we can’t wait to share with our customers. We have a rich history of providing custom high-performance vehicles for rent, and we’re thrilled to build on that legacy with this latest collaboration with Hendrick Motorsports."
Hertz-Hendrick Motorsports Camaro ZL1
The 2020 Hertz-Hendrick Motorsports Camaro ZL1 will be outfitted with a 6.2L V8 engine and a roaring 750 horsepower, with features including a larger Callaway Supercharger; custom Hertz wheels; custom Hertz lighted door sill plates; embroidered headrests with Hertz-sponsored Hendrick Motorsports driver William Byron’s signature and the No. 24 team logo; Hertz fender badges; and a Hertz-Hendrick Motorsports plaque denoting the individual numbering of the 24 custom Camaros.
Hertz-Hendrick Motorsports Camaro SS
Equipped with 480 horsepower and a 6.2L V8 engine, the 2020 Hertz-Hendrick Motorsports Camaro SS is optimized with 20-inch satin black wheels; a Performance Upgrade Package inclusive of a Chevrolet Cold Air Intake and Chevrolet Cat-back Dual Exhaust Upgrade System; custom exterior graphics package; strut tower bar with Hendrick Motorsports branding; custom Hertz lighted door sill plates; embroidered headrests with the No. 24 team logo and William Byron’s signature; Hertz fender badges; and a Hertz-Hendrick Motorsports plaque denoting the individual numbering of the 200 custom Camaros.
Scoring the Ultimate Ride
To celebrate the debut of the limited-edition Camaros, customers can participate in The Hertz Ultimate Ride Sweepstakes* – beginning Sept. 18, through Nov. 15, 2019 – for a chance to win a 2020 Hertz-Hendrick Motorsports Camaro SS. Five finalists will also win an exclusive driving experience in Charlotte that includes:
A driving experience at Charlotte Motor Speedway with Hendrick Motorsports driver William Byron
Private behind-the-scenes tour of the Hendrick Motorsports facilities
NASCAR Hall of Fame passes
Lunch with Byron’s No. 24 Hendrick Motorsports team
At the track, the five finalists will receive a specially coded key. The finalist with the key that starts the 2020 Hertz-Hendrick Motorsports Camaro SS will win a piece of automotive history.
Participants can register for a chance to win at Hertz.com/CamaroSweepstakes. Additional entries can be earned by renting with Hertz, signing up for the Hertz Gold Plus Rewards® loyalty program and sharing the sweepstakes with friends via social media and email.
A Winning Partnership
Hertz and Hendrick Motorsports have enjoyed a formal partnership since 2018, with Hertz serving as a primary sponsor of driver William Byron and his iconic No. 24 Chevrolet Camaro ZL1 team in the NASCAR Cup Series.
"As a race car driver, I have a huge appreciation for performance vehicles," Byron said. "The fact that Hertz is offering cars of this caliber to its customers is really amazing. After personally driving one of the custom Camaros, it’s as close as you can get to an actual race car out on the road. Hertz and Hendrick Motorsports have outdone themselves."
"We have a tremendous partnership with Hertz," said Hendrick Motorsports owner Rick Hendrick. "Cars are my passion, so seeing this program come together is especially exciting for me. We’ve never undertaken a project like this in the history of our team. These custom Camaros are going to be a huge hit with car enthusiasts and customers who are looking for a special experience. Hertz has truly taken this to the next level."
To learn more and reserve the 2020 Hertz-Hendrick Motorsports Camaro ZL1 and 2020 Hertz-Hendrick Motorsports Camaro SS, visit Hertz.com/CustomCamaro.
*About the Sweepstakes
NO PURCHASE NECESSARY. The sweepstakes runs from September 18, 2019 until November 15, 2019 and is open to all legal U.S. residents residing in the 48 contiguous U.S. states and District of Columbia who are 25 years and older. Void where prohibited by law. The Hertz Corporation is the sponsor of the sweepstakes. Subject to full official rules at Hertz.com/CamaroSweepstakes.
About Hertz
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 10,200 company-owned, licensee and franchisee locations 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.
About Hendrick Motorsports
Founded by Rick Hendrick in 1984, Hendrick Motorsports has earned 255 points-paying race victories and a record 12 car owner championships in the premier NASCAR Cup Series. The organization fields four full-time Chevrolet teams on the Cup circuit with drivers Chase Elliott, William Byron, Jimmie Johnson and Alex Bowman. Headquartered in Concord, North Carolina, Hendrick Motorsports employs more than 600 people. For more information, please visit HendrickMotorsports.com or interact on Twitter, Facebook and Instagram.
ESTERO, Fla., Aug. 6, 2019 /PRNewswire/ — Hertz Global Holdings, Inc. (NYSE: HTZ) ("Hertz Global" or the "Company") today reported results for its second quarter 2019.
Second Quarter 2019 Compared to Second Quarter 2018:
Global revenue grew to a record $2.5 billion, up 5%, up 7% on a constant currency basis
U.S. RAC total revenues grew to $1.8 billion, up 10%
U.S. RAC Transaction Days up 6%, Total RPD up 3%
U.S. RAC Depreciation Per Unit Per Month decreased 13%
Net income attributable to Hertz Global improved 160%
Adjusted Corporate EBITDA improved 124%
"We delivered record revenues and significant earnings improvement in the second quarter. Our results were achieved through quality top-line growth, productivity improvements and effective fleet management. At the same time, we continued to invest in our business, focusing on new revenue opportunities and a company-wide technology transformation," said Kathryn Marinello, Hertz’s chief executive officer. "Through disciplined execution, investments in new revenue opportunities and by aligning ourselves with our customers, we are strategically positioned for future growth."
For the second quarter 2019, total revenues were $2.5 billion, a 5% increase versus the second quarter 2018. Net income attributable to Hertz Global was $38 million, or $0.40 earnings per diluted share, compared to a loss of $63 million, or $0.66 loss per diluted share in the second quarter 2018. Adjusted Net Income for the second quarter 2019 was $71 million, or $0.74 Adjusted Diluted Earnings Per Share, compared to Adjusted Net Loss of $16 million, or $0.17 Adjusted Diluted Loss Per Share, for the same period last year. Adjusted Corporate EBITDA was $207 million, compared to $93 million for the second quarter 2018.
U.S. RENTAL CAR ("U.S. RAC") SUMMARY
U.S. RAC
Three Months Ended June 30,
Percent Inc/(Dec)
($ in millions, except where noted)
2019
2018
Total revenues
$
1,784
$
1,628
10
%
Adjusted EBITDA
$
156
$
18
NM
Adjusted EBITDA Margin
9
%
1
%
Average Vehicles (in whole units)
554,794
523,000
6
%
Vehicle Utilization
82
%
81
%
Transaction Days (in thousands)
41,173
38,747
6
%
Total RPD (in whole dollars)
$
42.54
$
41.37
3
%
Total RPU Per Month (in whole dollars)
$
1,052
$
1,022
3
%
Depreciation Per Unit Per Month (in whole dollars)
$
247
$
285
(13)
%
NM – Not meaningful
Total U.S. RAC revenues grew to $1.8 billion in 2019, a 10% increase versus the second quarter 2018. Transaction days grew 6% driven by higher demand from transportation network company drivers ("TNC") and strong growth in retail and corporate categories. Total RPD and time and mileage pricing both increased 3% in the quarter, primarily driven by favorable pricing in both leisure and business customer segments.
Average vehicles were up 6%, driven by 68% growth in the Company’s TNC fleet. Excluding TNC, average vehicles were up 3%, in line with volume. Higher revenue and Vehicle Utilization led to a 3% increase in Total RPU, an important measure of asset efficiency.
Depreciation Per Unit Per Month decreased 13% driven by the Company’s vehicle acquisition strategy, an increase in the number of vehicle dispositions through its highest-return retail car sales channel, and continued strength in residual values.
Adjusted EBITDA improved $138 million in the second quarter and Adjusted EBITDA Margin expanded 760 basis points, driven by higher revenue, lower depreciation and improved productivity.
INTERNATIONAL RENTAL CAR ("INTERNATIONAL RAC") SUMMARY
International RAC
Three Months Ended June 30,
Percent Inc/(Dec)
($ in millions, except where noted)
2019
2018
Total revenues
$
560
$
589
(5)
%
Adjusted EBITDA
$
56
$
81
(31)
%
Adjusted EBITDA Margin
10
%
14
%
Average Vehicles (in whole units)
186,881
187,300
—
%
Vehicle Utilization
77
%
78
%
Transaction Days (in thousands)
13,125
13,225
(1)
%
Total RPD (in whole dollars)
$
42.97
$
42.45
1
%
Total RPU Per Month (in whole dollars)
$
1,006
$
999
1
%
Depreciation Per Unit Per Month (in whole dollars)
$
191
$
189
1
%
Total International RAC revenues decreased 5% year-over-year and were flat on a constant currency basis. Total RPD was up 1% driven by Europe leisure rentals and volume declined 1% due to market softness in Europe, partially offset by strong business and leisure growth in Asia Pacific.
Adjusted EBITDA was lower year-over-year primarily due to a favorable expense item in the second quarter 2018 that did not repeat in the second quarter 2019.
ALL OTHER OPERATIONS SUMMARY
All Other Operations
Three Months Ended June 30,
Percent Inc/(Dec)
($ in millions)
2019
2018
Total revenues
$
167
$
172
(3)
%
Adjusted EBITDA
$
24
$
21
14
%
Adjusted EBITDA Margin
14
%
12
%
Average Vehicles (in whole units) – Donlen
207,704
187,600
11
%
All Other Operations primarily is comprised of the Company’s Donlen leasing operations. Strong revenue growth was more than offset by the impact of a change in presentation for certain leased vehicles in the second quarter 2019 versus 2018 which resulted in lower revenue and vehicle depreciation. New accounts and growth in both the leasing and management portfolios drove an 11% increase in Average Vehicles.
RIGHTS OFFERING
In June 2019, the Company announced that on June 26, 2019, it would distribute transferable subscription rights to its shareholders to purchase up to an aggregate of 57,915,055 new shares (the "Rights Offering"). Each subscription right entitled the holder to purchase 0.688285 shares of the Company’s common stock at the subscription price of $12.95. During the subscription period, which commenced in the second quarter and concluded on July 11, 2019, the rights were traded on the NYSE under the symbol "HTZ-RT." On July 18, 2019 the Rights Offering was consummated, resulting in the issuance of 57,915,055 shares of common stock. As a result of the timing of the subscription period, the rights generated a dilutive impact to the Company’s 2019 basic and diluted earnings per share. The three and six month periods ended June 30, 2018 have been adjusted to reflect the impact of the Rights Offering, and the Company will continue to adjust prior periods for the impact, where necessary.
SEGMENT MEASURE OF PROFITABILITY
Effective during the second quarter 2019, the Company changed its segment measure of profitability for its reportable segments to Adjusted EBITDA. This measure better aligns with the way the Company reviews its overall vehicle rental and leasing business and determines management incentive compensation. Previously, the Company’s segment measure of profitability was Adjusted Pre-tax Income (Loss) which included non-vehicle depreciation and amortization, net non-vehicle debt interest and certain other items. For comparability purposes, the Company revised the 2018 segment results in this earnings release to reflect the new segment measure of profitability.
RESULTS OF THE HERTZ CORPORATION
The GAAP and non-GAAP profitability metrics for Hertz Global’s operating subsidiary, The Hertz Corporation ("Hertz"), are materially the same as those for Hertz Global.
EARNINGS WEBCAST INFORMATION
Hertz Global’s live webcast and conference call to discuss its second quarter 2019 results will be held on August 7, 2019, at 8:30 a.m. Eastern Time, and can be accessed through a link on the Investor Relations section of the Hertz website, IR.Hertz.com, or by dialing (800) 230-1059 and providing passcode 469574. Investors are encouraged to dial-in approximately 10 minutes prior to the call. A web replay will remain available for approximately one year. A telephone replay will be available one hour following the conclusion of the call for one year at (800) 475-6701 with pass code 469574.
The earnings release and related supplemental schedules containing the reconciliations of non-GAAP measures will be available on the Hertz website, IR.Hertz.com.
SELECTED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP MEASURES AND DEFINITIONS
Following are tables that present 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 in approximately 10,200 company-owned, licensee and franchisee locations 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.
Certain statements contained in this release, and in related comments by the Company’s management, include "forward-looking statements." Forward-looking statements include information concerning the Company’s liquidity and its possible or assumed future results of operations, including descriptions of its business strategies. These statements often include words such as "believe," "expect," "project," "potential," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts" or similar expressions. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate in these circumstances. The Company believes these judgments are reasonable, but you should understand that these statements are not guarantees of performance or results, and the Company’s actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative, 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: levels of travel demand, particularly with respect to airline passenger traffic in the United States and in global markets; the effect of the Company’s separation of its vehicle and equipment rental businesses, any failure by Herc Holdings Inc. to comply with the agreements entered into in connection with the separation and the Company’s ability to obtain the expected benefits of the separation; 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 its rental operations accordingly; increased vehicle costs due to declines in the 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 its revenue earning vehicles and to refinance its existing indebtedness; 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 ability to adequately respond to changes in technology and customer demands; the Company’s ability to retain customer loyalty and market share; the Company’s recognition of previously deferred tax gains on the disposition of revenue earning vehicles; an increase in the Company’s vehicle costs or disruption to its rental activity, particularly during its peak periods, due to safety recalls by the manufacturers of its vehicles; the Company’s access to third-party distribution channels and related prices, commission structures and transaction volumes; the Company’s ability to execute a business continuity plan; a major disruption in the Company’s communication or centralized information networks; a failure to maintain, upgrade and consolidate the Company’s information technology networks; financial instability of the manufacturers of the Company’s vehicles; any impact on the Company from the actions of its franchisees, dealers and independent contractors; the Company’s ability to sustain operations during adverse economic cycles and unfavorable external events (including war, terrorist acts, natural disasters and epidemic disease); shortages of fuel and increases or volatility in fuel costs; the Company’s ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy; the Company’s ability to maintain an effective employee retention and talent management strategy and resulting changes in personnel and employee relations; costs and risks associated with litigation and investigations; 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 its 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 facility, its outstanding unsecured senior notes, its outstanding senior second priority secured notes and certain asset-backed and asset-based arrangements; 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; risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anticorruption or antibribery laws and the Company’s ability to repatriate cash from non-U.S. affiliates without adverse tax consequences; 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; changes in the existing, or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations, such as the adoption of new regulations under the Tax Cuts and Jobs Act, 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; fluctuations in interest rates and commodity prices; the Company’s exposure to fluctuations in foreign currency exchange rates 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)
2019
2018
2019
2018
2019
2018
2019
2018
Total revenues
$
2,511
$
2,389
100
%
100
%
$
4,618
$
4,452
100
%
100
%
Expenses:
Direct vehicle and operating
1,388
1,349
55
%
56
%
2,655
2,585
57
%
58
%
Depreciation of revenue earning vehicles and lease charges
634
687
25
%
29
%
1,226
1,348
27
%
30
%
Selling, general and administrative
258
265
10
%
11
%
490
498
11
%
11
%
Interest expense, net:
Vehicle
127
127
5
%
5
%
238
221
5
%
5
%
Non-vehicle
72
73
3
%
3
%
144
146
3
%
3
%
Total interest expense, net
199
200
8
%
8
%
382
367
8
%
8
%
Other (income) expense, net
(12)
(26)
—
%
(1)
%
(31)
(29)
(1)
%
(1)
%
Total expenses
2,467
2,475
98
%
104
%
4,722
4,769
102
%
107
%
Income (loss) before income taxes
44
(86)
2
%
(4)
%
(104)
(317)
(2)
%
(7)
%
Income tax (provision) benefit
(4)
23
—
%
1
%
(3)
52
—
%
1
%
Net income (loss)
40
(63)
2
%
(3)
%
(107)
(265)
(2)
%
(6)
%
Net (income) loss attributable to noncontrolling interests
(2)
—
—
%
—
%
(1)
—
—
%
—
%
Net income (loss) attributable to Hertz Global
$
38
$
(63)
2
%
(3)
%
$
(108)
$
(265)
(2)
%
(6)
%
Weighted average number of shares outstanding(a):
Basic
96
96
96
95
Diluted
97
96
96
95
Earnings (loss) per share:
Basic
$
0.40
$
(0.66)
$
(1.13)
$
(2.78)
Diluted
$
0.40
$
(0.66)
$
(1.13)
$
(2.78)
Adjusted Net Income (Loss)(b)
$
71
$
(16)
$
(12)
$
(148)
Adjusted Diluted Earnings (Loss) Per Share(b)
$
0.74
$
(0.17)
$
(0.12)
$
(1.55)
Adjusted Corporate EBITDA(b)
$
207
$
93
$
203
$
33
(a)
Basic weighted average shares and weighted average shares used to calculate diluted earnings (loss) per share for the three and six months ended June 30, 2018 have been adjusted to give effect to the Rights Offering.
(b)
Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule II.
SELECTED UNAUDITED CONSOLIDATED BALANCE SHEET DATA
(In millions)
As of June 30, 2019
As of December 31, 2018
Cash and cash equivalents
$
415
$
1,127
Total restricted cash and cash equivalents
239
283
Revenue earning vehicles, net:
U.S. Rental Car
11,499
8,793
International Rental Car
3,292
2,146
All Other Operations
1,654
1,480
Total revenue earning vehicles, net
16,445
12,419
Total assets(a)
26,354
21,382
Total debt
19,347
16,324
Net Vehicle Debt(b)
14,762
11,688
Net Non-vehicle Debt(b)
4,042
3,328
Total stockholders’ equity
1,070
1,120
(a)
On January 1, 2019, the Company adopted new lease guidance under U.S. GAAP and recorded a net cumulative-effect adjustment of $1.5 billion to recognize assets associated with the Company’s leases as of that date.
(b)
Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule V.
SELECTED UNAUDITED CONSOLIDATED CASH FLOW DATA
Six Months Ended June 30,
(In millions)
2019
2018
Cash flows provided by (used in):
Operating activities
$
1,054
$
942
Investing activities
(4,832)
(4,055)
Financing activities
3,023
2,540
Effect of exchange rate changes
(1)
(10)
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents
$
(756)
$
(583)
Fleet Growth(a)
$
(343)
$
110
Adjusted Free Cash Flow(a)
$
(715)
$
(326)
(a)
Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedules III and IV.
Supplemental Schedule I
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
Three Months Ended June 30, 2019
Three Months Ended June 30, 2018
(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:
$
1,784
$
560
$
167
$
—
$
2,511
$
1,628
$
589
$
172
$
—
$
2,389
Expenses:
Direct vehicle and operating
1,052
330
7
(1)
1,388
1,021
322
8
(2)
1,349
Depreciation of revenue earning vehicles and lease charges
411
106
117
—
634
447
112
128
—
687
Selling, general and administrative
119
55
7
77
258
118
62
9
76
265
Interest expense, net:
Vehicle
90
24
13
—
127
73
44
10
—
127
Non-vehicle
(47)
(1)
(5)
125
72
(35)
—
(4)
112
73
Total interest expense, net
43
23
8
125
199
38
44
6
112
200
Other (income) expense, net
(5)
—
—
(7)
(12)
(6)
(1)
—
(19)
(26)
Total expenses
1,620
514
139
194
2,467
1,618
539
151
167
2,475
Income (loss) before income taxes
$
164
$
46
$
28
$
(194)
$
44
$
10
$
50
$
21
$
(167)
$
(86)
Income tax (provision) benefit
(4)
23
Net income (loss)
$
40
$
(63)
Net (income) loss attributable to noncontrolling interests
(2)
—
Net income (loss) attributable to Hertz Global
$
38
$
(63)
Supplemental Schedule I (continued)
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
Six Months Ended June 30, 2019
Six Months Ended June 30, 2018
(In millions)
U.S. Rental Car
Int’l Rental Car
All Other Operations
Corporate
Hertz Global
U.S. Rental Car
Int’l Rental Car
All Other Operations
Corporate
Hertz Global
Total revenues:
$
3,304
$
993
$
321
$
—
$
4,618
$
3,054
$
1,057
$
341
$
—
$
4,452
Expenses:
Direct vehicle and operating
2,028
614
13
—
2,655
1,947
622
17
(1)
2,585
Depreciation of revenue earning vehicles and lease charges
797
203
226
—
1,226
881
214
253
—
1,348
Selling, general and administrative
241
111
14
124
490
220
121
18
139
498
Interest expense, net:
Vehicle
166
47
25
—
238
137
64
20
—
221
Non-vehicle
(92)
(3)
(9)
248
144
(66)
(1)
(7)
220
146
Total interest expense, net
74
44
16
248
382
71
63
13
220
367
Other (income) expense, net
(13)
—
—
(18)
(31)
(7)
(1)
—
(21)
(29)
Total expenses
3,127
972
269
354
4,722
3,112
1,019
301
337
4,769
Income (loss) before income taxes
$
177
$
21
$
52
$
(354)
$
(104)
$
(58)
$
38
$
40
$
(337)
$
(317)
Income tax (provision) benefit
(3)
52
Net income (loss)
$
(107)
$
(265)
Net (income) loss attributable to noncontrolling interests
(1)
—
Net income (loss) attributable to Hertz Global
$
(108)
$
(265)
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)
2019
2018
2019
2018
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share:
Net income (loss) attributable to Hertz Global
$
38
$
(63)
$
(108)
$
(265)
Adjustments:
Income tax provision (benefit)
4
(23)
3
(52)
Vehicle and non-vehicle debt-related charges(a)
13
13
26
26
Loss on extinguishment of debt(b)
—
20
—
22
Restructuring and restructuring related charges(c)
4
10
10
13
Information technology and finance transformation costs(d)
38
29
60
51
Acquisition accounting-related depreciation and amortization(e)
14
15
27
30
Other items(f)
(16)
(22)
(34)
(22)
Adjusted pre-tax income (loss)(g)
95
(21)
(16)
(197)
Income tax (provision) benefit on adjusted pre-tax income (loss)(h)
(24)
5
4
49
Adjusted Net Income (Loss)
$
71
$
(16)
$
(12)
$
(148)
Weighted average number of diluted shares outstanding
97
96
96
95
Adjusted Diluted Earnings (Loss) Per Share(i)
$
0.74
$
(0.17)
$
(0.12)
$
(1.55)
Adjusted Corporate EBITDA:
Net income (loss) attributable to Hertz Global
38
(63)
(108)
(265)
Adjustments:
Income tax provision (benefit)
4
(23)
3
(52)
Non-vehicle depreciation and amortization(j)
51
56
99
113
Non-vehicle debt interest, net of interest income
72
73
144
146
Vehicle debt-related charges(a),(k)
9
9
19
19
Loss on extinguishment of vehicle debt(b)
—
20
—
22
Restructuring and restructuring related charges(c)
4
10
10
13
Information technology and finance transformation costs(d)
38
29
60
51
Other items(f),(l)
(9)
(18)
(24)
(14)
Adjusted Corporate EBITDA
$
207
$
93
$
203
$
33
Supplemental Schedule II (continued)
(a)
Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.
(b)
In 2018, primarily represents $20 million of early redemption premium and write-off of deferred financing costs associated with the full redemption of the 4.375% European Vehicle Senior Notes due January 2019 in April 2018.
(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. Such costs include transition costs incurred in connection with business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. In 2018, also includes consulting costs, legal fees, and other expenses related to the previously disclosed accounting review and investigation.
(d)
Represents costs associated with the Company’s information technology and finance transformation programs, both of which are multi-year initiatives to upgrade and modernize the Company’s systems and processes. These costs relate primarily to the Company’s corporate operations ("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 miscellaneous items. In 2019, includes a $20 million gain on marketable securities in Corporate, of which $9 million was recorded during the second quarter of 2019, 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 of 2019. In 2018, includes a $17 million gain on marketable securities and a $6 million legal settlement received in the second quarter related to an oil spill in the Gulf of Mexico in 2010, both of which relate to Corporate.
(g)
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)
2019
2018
2019
2018
Direct vehicle and operating
$
(15)
$
(16)
$
(27)
$
(32)
Selling, general and administrative
(38)
(38)
(68)
(63)
Interest expense, net:
Vehicle
(9)
(29)
(19)
(41)
Non-vehicle
(4)
(4)
(7)
(7)
Total interest expense, net
(13)
(33)
(26)
(48)
Other income (expense), net
13
22
32
23
Total adjustments
$
(53)
$
(65)
$
(89)
$
(120)
(h)
Derived utilizing a combined statutory rate of 25% for the periods ending June 30, 2019 and 2018 applied to the respective Adjusted Pre-tax Income (Loss).
(i)
Adjustments used to reconcile diluted earnings (loss) per share on a GAAP basis to Adjusted Diluted Earnings (Loss) Per Share are comprised of the same adjustments, inclusive of the tax impact, used to reconcile net income (loss) to Adjusted Net Income (Loss) divided by the weighted average diluted shares outstanding during the period.
(j)
Non-vehicle depreciation and amortization expense for U.S. RAC, International RAC, All Other Operations and Corporate for the three months ended June 30, 2019 are $39 million, $6 million, $3 million and $3 million, respectively, and for the three months ended June 30, 2018 are $41 million, $8 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 six months ended June 30, 2019 are $76 million, $12 million, $5 million and $6 million, respectively, and for the six months ended June 30, 2018 are $84 million, $17 million, $4 million and $8 million, respectively.
(k)
Vehicle debt related charges for U.S. RAC, International RAC and All Other Operations for the three months ended June 30, 2019 and 2018 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, 2019 are $11 million, $6 million and $2 million, respectively, and for the six months ended June 30, 2018 are $12 million, $5 million and $2 million, respectively.
(l)
Also includes an adjustment for non-cash stock-based compensation charges in Corporate.
Supplemental Schedule III
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE – FLEET GROWTH
Unaudited
Six Months Ended June 30, 2019
Six Months Ended June 30, 2018
(In millions)
U.S. Rental Car
Int’l Rental Car
All Other Operations
Hertz Global
U.S. Rental Car
Int’l Rental Car
All Other Operations
Hertz Global
Revenue earning vehicles expenditures
$
(6,318)
$
(2,068)
$
(561)
$
(8,947)
$
(5,321)
$
(1,910)
$
(379)
$
(7,610)
Proceeds from disposal of revenue earning vehicles
2,802
1,242
168
4,212
2,353
1,205
96
3,654
Net revenue earning vehicles capital expenditures
(3,516)
(826)
(393)
(4,735)
(2,968)
(705)
(283)
(3,956)
Depreciation and reserves for revenue earning vehicles
928
175
226
1,329
881
172
253
1,306
Financing activity related to vehicles:
Borrowings
5,794
1,579
894
8,267
6,581
2,123
710
9,414
Payments
(3,646)
(914)
(694)
(5,254)
(4,725)
(1,471)
(633)
(6,829)
Restricted cash changes
49
6
(5)
50
169
22
(16)
175
Net financing activity related to vehicles
2,197
671
195
3,063
2,025
674
61
2,760
Fleet Growth
$
(391)
$
20
$
28
$
(343)
$
(62)
$
141
$
31
$
110
Supplemental Schedule IV
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE – ADJUSTED FREE CASH FLOW
Unaudited
Six Months Ended June 30,
(In millions)
2019
2018
Net cash provided by operating activities
$
1,054
$
942
Net change in restricted cash and cash equivalents, vehicle(a)
50
175
Revenue earning vehicles expenditures
(8,947)
(7,610)
Proceeds from disposal of revenue earning vehicles
4,212
3,654
Capital asset expenditures, non-vehicle
(118)
(80)
Proceeds from property and other equipment disposed of or to be disposed of
21
8
Proceeds from issuance of vehicle debt
8,267
9,414
Repayments of vehicle debt
(5,254)
(6,829)
Adjusted Free Cash Flow
$
(715)
$
(326)
(a)
Amount presented for the six months ended June 30, 2018 excludes a $2 million non-cash impact of foreign currency exchange rates.
Supplemental Schedule V
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE – NET DEBT
Unaudited
As of June 30, 2019
As of December 31, 2018
(In millions)
Vehicle
Non- Vehicle
Total
Vehicle
Non- Vehicle
Total
Debt as reported in the balance sheet
$
14,919
$
4,428
$
19,347
$
11,902
$
4,422
$
16,324
Add:
Debt issue costs, discounts and premiums
50
29
79
43
33
76
Less:
Cash and cash equivalents
—
415
415
—
1,127
1,127
Restricted cash
207
—
207
257
—
257
Net Debt
$
14,762
$
4,042
$
18,804
$
11,688
$
3,328
$
15,016
Supplemental Schedule VI
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)
2019
2018
2019
2018
Total RPD
Revenues
$
1,784
$
1,628
$
3,304
$
3,054
Ancillary retail vehicle sales revenue
(33)
(25)
(62)
(51)
Total Rental Revenue
$
1,751
$
1,603
$
3,242
$
3,003
Transaction Days (in thousands)
41,173
38,747
76,754
72,949
Total RPD (in whole dollars)
$
42.54
$
41.37
3
%
$
42.24
$
41.17
3
%
Total Revenue Per Unit Per Month
Total Rental Revenue
$
1,751
$
1,603
$
3,242
$
3,003
Average Vehicles
554,794
523,000
528,281
500,800
Total revenue per unit (in whole dollars)
$
3,156
$
3,065
$
6,137
$
5,996
Number of months in period
3
3
6
6
Total RPU Per Month (in whole dollars)
$
1,052
$
1,022
3
%
$
1,023
$
999
2
%
Vehicle Utilization
Transaction Days (in thousands)
41,173
38,747
76,754
72,949
Average Vehicles
554,794
523,000
528,281
500,800
Number of days in period
91
91
181
181
Available Car Days (in thousands)
50,486
47,593
95,619
90,645
Vehicle Utilization(a)
82
%
81
%
80
%
80
%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges
$
411
$
447
$
797
$
881
Average Vehicles
554,794
523,000
528,281
500,800
Depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$
741
$
855
$
1,509
$
1,759
Number of months in period
3
3
6
6
Depreciation Per Unit Per Month (in whole dollars)
$
247
$
285
(13)
%
$
251
$
293
(14)
%
(a)
Calculated as Transaction Days divided by Available Car Days.
Supplemental Schedule VI (continued)
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATIONS OF KEY METRICS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
International Rental Car
Three Months Ended June 30,
Percent Inc/(Dec)
Six Months Ended June 30,
Percent Inc/(Dec)
($ in millions, except where noted)
2019
2018
2019
2018
Total RPD
Revenues
$
560
$
589
$
993
$
1,057
Foreign currency adjustment(a)
4
(28)
2
(63)
Total Rental Revenue
$
564
$
561
$
995
$
994
Transaction Days (in thousands)
13,125
13,225
23,252
23,199
Total RPD (in whole dollars)
$
42.97
$
42.45
1
%
$
42.79
$
42.86
—
%
Total Revenue Per Unit Per Month
Total Rental Revenue
$
564
$
561
$
995
$
994
Average Vehicles
186,881
187,300
169,814
168,000
Total revenue per unit (in whole dollars)
$
3,018
$
2,995
$
5,859
$
5,917
Number of months in period
3
3
6
6
Total RPU Per Month (in whole dollars)
$
1,006
$
999
1
%
$
977
$
987
(1)
%
Vehicle Utilization
Transaction Days (in thousands)
13,125
13,225
23,252
23,199
Average Vehicles
186,881
187,300
169,814
168,000
Number of days in period
91
91
181
181
Available Car Days (in thousands)
17,006
17,044
30,736
30,408
Vehicle Utilization(b)
77
%
78
%
76
%
76
%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges
$
106
$
112
$
203
$
214
Foreign currency adjustment(a)
1
(6)
—
(13)
Adjusted depreciation of revenue earning vehicles and lease charges
$
107
$
106
$
203
$
201
Average Vehicles
186,881
187,300
169,814
168,000
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$
573
$
566
$
1,195
$
1,196
Number of months in period
3
3
6
6
Depreciation Per Unit Per Month (in whole dollars)
$
191
$
189
1
%
$
200
$
199
1
%
(a)
Based on December 31, 2018 foreign exchange rates.
(b)
Calculated as Transaction Days divided by Available Car Days.
Supplemental Schedule VI (continued)
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATIONS OF KEY METRICS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
Worldwide Rental Car
Three Months Ended June 30,
Percent Inc/(Dec)
Six Months Ended June 30,
Percent Inc/(Dec)
($ in millions, except where noted)
2019
2018
2019
2018
Total RPD
Revenues
$
2,344
$
2,217
$
4,297
$
4,111
Ancillary retail vehicle sales revenue
(33)
(25)
(62)
(51)
Foreign currency adjustment(a)
4
(28)
2
(63)
Total Rental Revenue
$
2,315
$
2,164
$
4,237
$
3,997
Transaction Days (in thousands)
54,298
51,972
100,006
96,148
Total RPD (in whole dollars)
$
42.65
$
41.63
2
%
$
42.37
$
41.57
2
%
Total Revenue Per Unit Per Month
Total Rental Revenue
$
2,315
$
2,164
$
4,237
$
3,997
Average Vehicles
741,675
710,300
698,095
668,800
Total revenue per unit (in whole dollars)
$
3,121
$
3,047
$
6,069
$
5,976
Number of months in period
3
3
6
6
Total RPU Per Month (in whole dollars)
$
1,041
$
1,015
3
%
$
1,012
$
996
2
%
Vehicle Utilization
Transaction Days (in thousands)
54,298
51,972
100,006
96,148
Average Vehicles
741,675
710,300
698,095
668,800
Number of days in period
91
91
181
181
Available Car Days (in thousands)
67,492
64,637
126,355
121,053
Vehicle Utilization(b)
80
%
80
%
79
%
79
%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges
$
517
$
559
$
1,000
$
1,095
Foreign currency adjustment(a)
1
(6)
—
(13)
Adjusted depreciation of revenue earning vehicles and lease charges
$
518
$
553
$
1,000
$
1,082
Average Vehicles
741,675
710,300
698,095
668,800
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$
698
$
779
$
1,432
$
1,618
Number of months in period
3
3
6
6
Depreciation Per Unit Per Month (in whole dollars)
$
233
$
260
(10)
%
$
239
$
270
(11)
%
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, 2018 foreign exchange rates.
(b)
Calculated as Transaction Days divided by Available Car Days.
NON-GAAP MEASURES AND KEY METRICS
Hertz Global is the top-level holding company that indirectly wholly owns The Hertz Corporation (together, the "Company"). The term "GAAP" refers to accounting principles generally accepted in the United States of America. Adjusted EBITDA is the Company’s segment measure of profitability and complies with GAAP when used in that context.
NON-GAAP MEASURES
Non-GAAP measures are not recognized measurements under GAAP. When evaluating the Company’s operating performance or liquidity, investors should not consider non-GAAP measures in isolation of, superior to, or as a substitute for measures of the Company’s financial performance as determined in accordance with GAAP.
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share ("Adjusted Diluted EPS")
Adjusted Net Income (Loss) represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax, debt-related charges and losses, restructuring and restructuring related charges, intangible and tangible asset impairments and write-downs, information technology and finance transformation costs, non-cash acquisition accounting charges and certain other miscellaneous items on a pre-tax basis. Adjusted Net Income (Loss) includes a provision (benefit) for income taxes derived utilizing a combined statutory rate. The combined statutory rate is management’s estimate of the Company’s long-term tax rate. Its most comparable GAAP measure is net income (loss) attributable to the Company.
Adjusted Diluted EPS represents Adjusted Net Income (Loss) on a per diluted share basis using the weighted average number of diluted shares outstanding for the period. Its most comparable GAAP measure is diluted earnings (loss) per share.
Adjusted Net Income (Loss) and Adjusted Diluted EPS are important to management because they allow management to assess operational performance of the Company’s business, exclusive of the items mentioned above that are not operational in nature or comparable to those of the Company’s competitors.
Adjusted Corporate EBITDA and Adjusted Corporate EBITDA Margin
Adjusted Corporate EBITDA represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax, non-vehicle depreciation and amortization, net non-vehicle debt interest, vehicle debt-related charges and losses, restructuring and restructuring related charges, goodwill, intangible and tangible asset impairments and write-downs, information technology and finance transformation costs and certain other miscellaneous items. Adjusted Corporate EBITDA Margin is calculated as the ratio of Adjusted Corporate EBITDA to total revenues.
Management uses these measures as operating performance metrics for internal monitoring and planning purposes, including the preparation of the Company’s annual operating budget and monthly operating reviews, and to facilitate analysis of investment decisions, profitability and performance trends. These measures enable management and investors to isolate the effects on profitability of operating metrics most meaningful to the business of renting and leasing vehicles. They also allow management to assess the performance of the entire business on the same basis as its reportable segments. Adjusted Corporate EBITDA is also utilized in the determination of certain executive compensation. Its most comparable GAAP measure is net income (loss) attributable to the Company.
Adjusted Free Cash Flow
Adjusted Free Cash Flow represents net cash provided by operating activities, including the change in restricted cash and cash equivalents related to vehicles, net revenue earning vehicle and capital asset expenditures and the net impact of vehicle financing activities. Adjusted Free Cash Flow is important to management and investors as it provides useful information about the amount of cash available for acquisitions and the reduction of non-vehicle debt.
Fleet Growth
Fleet Growth represents revenue earning vehicles expenditures, net of proceeds from disposals, plus vehicle depreciation and net vehicle financing which includes borrowings, repayments and the change in restricted cash associated with vehicles. Fleet Growth is important to management as it allows the Company to assess the cash flow required to support its investment in revenue earning vehicles.
Net Non-vehicle Debt, Net Vehicle Debt and Total Net Debt
Net Non-vehicle Debt represents non-vehicle debt as reported on the Company’s balance sheet, excluding the impact of unamortized debt issue costs, discounts and premiums associated with non-vehicle debt, less cash and cash equivalents. This measure is important to management and investors as it helps measure the Company’s net corporate leverage. It also assists in the evaluation of the Company’s ability to service its non-vehicle debt without reference to the expense associated with the vehicle debt, which is collateralized by assets not available to lenders under the non-vehicle debt facilities.
Net Vehicle Debt represents vehicle debt as reported on the Company’s balance sheet, excluding the impact of unamortized debt issue costs, discounts and premiums associated with vehicle debt, less restricted cash associated with vehicles. Restricted cash associated with vehicle debt is restricted for the purchase of revenue earning vehicles and other specified uses under the Company’s vehicle debt facilities and its vehicle rental like-kind exchange program. Net Vehicle Debt is important to management, investors and ratings agencies as it helps measure the Company’s leverage with respect to its vehicle assets.
Total Net Debt is the sum of Net Non-vehicle Debt and Net Vehicle debt and is important to management, investors and ratings agencies as it helps measure the Company’s gross leverage.
KEY METRICS
Available Car Days
Available Car Days represent 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.
Time and Mileage Revenue Per Transaction Day ("Time and Mileage pricing" or "T&M Rate")
Time and Mileage ("T&M") pricing represents the ratio of Total Rental Revenue, less ancillary revenue from value-added services, such as charges to the customer for the fueling of vehicles, loss damage waivers, insurance products, supplemental equipment and other consumables, to Transaction Days. This metric is important to management and investors as it represents a measurement of the changes in base rental fees, which comprise the majority of the Company’s Total RPD.
Total Rental Revenue
Total Rental Revenue represents total revenue less ancillary retail vehicle sales revenue, 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 Revenue 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 Revenue 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.
ESTERO, Fla., July 22, 2019 /PRNewswire/ — The Hertz Corporation (NYSE: HTZ) – one of the world’s largest car rental companies – has joined Ethisphere’s Business Ethics Leadership Alliance (BELA); a globally recognized organization aimed at promoting ethical leadership and world-class compliance cultures.
As a member of BELA, Hertz will have the ability to measure and benchmark its ethics and compliance program to those of the World’s Most Ethical Companies. Additionally, Hertz will have the opportunity to capture and codify leading practices through a curated resource center with a catalog of member-contributed content and in-person and virtual events.
"Joining BELA further underscores our commitment to strengthen our culture of integrity and compliance, which is the foundation of our business," said Jeannie Henry, Hertz Vice President and Chief Compliance Officer. "Every employee at Hertz has a shared responsibility to act with integrity and make ethical decisions. Having the right tools and resources will help us ensure that all employees are making the right decisions no matter what their position is within the company."
"Research—including Ethisphere’s—shows how organizations with a strong ethical culture regularly outperform their peers. We refer to this as an ethics premium," said Erica Salmon-Byrne, Executive Vice President, Data and Services and Chair, BELA. "This underscores the value of prioritizing a strong, innovative ethics program in an ever-changing business ecosystem. To that end, we are proud to partner with our members to develop new platforms that will help raise the ethical standards at companies in the region and globally."
Founded by the Ethisphere Institute, the Business Ethics Leadership Alliance (BELA) is a globally recognized organization of leading companies collaborating together to share best practices in governance, risk management, compliance and ethics. BELA’s membership has since grown to a large community of companies who recognize the inherent value of promoting ethical leadership and world-class compliance culture. Learn more about BELA by visiting https://bela.ethisphere.com/.
ABOUT HERTZ The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar, Thrifty and Firefly vehicle rental brands in approximately 10,200 corporate and franchisee locations 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 rental companies, and the Hertz brand is one of the most recognized in the world. 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, operates the 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.
About Ethisphere The Ethisphere Institute is the global leader in defining and advancing the standards of ethical business practices that fuel corporate character, marketplace trust, and business success. Ethisphere has deep expertise in measuring and defining core ethics standards using data-driven insights that help companies enhance corporate character. Ethisphere honors superior achievement through its World’s Most Ethical Companies recognition program, provides a community of industry experts with the Business Ethics Leadership Alliance (BELA), and showcases trends and best practices in ethics with Ethisphere Magazine. Ethisphere’s reach continues to expand with events hosted around the globe bringing together thought leaders and practitioners through local roundtables and global summits. More information about Ethisphere can be found at http://www.ethisphere.com.
ESTERO, Fla., July 18, 2019 /PRNewswire/ — Hertz Global Holdings, Inc. (NYSE: HTZ) (the "Company") today announced that its wholly-owned subsidiary, The Hertz Corporation ("Hertz"), has entered into an agreement to sell $500 million aggregate principal amount of 7.125% Senior Notes due 2026 (the "Notes") in a private offering (the "Offering") exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The Offering is expected to close on or about August 1, 2019, subject to customary closing conditions.
The Notes will pay interest semi-annually in arrears. The Notes are expected to be guaranteed on a senior unsecured basis by the domestic subsidiaries of Hertz that guarantee its senior credit facilities from time to time.
Hertz intends to use the proceeds from the issuance of the Notes, together with net proceeds from the Company’s previously announced rights offering, to consummate the redemption of its outstanding 5.875% Senior Notes due 2020 (the "2020 Notes") and its outstanding 7.375% Senior Notes due 2021 (the "2021 Notes"), pay accrued and unpaid interest in connection with redemption of the 2020 Notes and 2021 Notes, pay fees and expenses in connection with the foregoing and use any remaining proceeds for general corporate purposes. The redemptions of the 2020 Notes and 2021 Notes are each subject to the satisfaction of specified conditions precedent set forth in the applicable Notice of Conditional Redemption, including the consummation of the Capital Markets Offerings (as described in the applicable Notice of Conditional Redemption) on terms and conditions satisfactory in all respects to Hertz.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the Notes (and the guarantees of the Notes) or any other securities, nor will there be any sale of the Notes (or any guarantees of the Notes) or any other securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. The Notes (and the guarantees of the Notes) will be issued in reliance on the exemption from the registration requirements provided by Rule 144A under the Securities Act and, outside of the United States, only to non-U.S. investors pursuant to Regulation S under the Securities Act. None of the Notes (or the guarantees of the Notes) have been registered under the Securities Act or any state or other jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state and other jurisdiction’s securities laws.
This press release does not constitute a notice of redemption under the indentures governing the 2020 Notes or the 2021 Notes, nor an offer to tender for, or purchase, any 2020 Notes, any 2021 Notes or any other security. There can be no assurances that the conditions precedent to the redemptions will be satisfied or that the redemptions will occur.
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 10,200 company-owned, licensee and franchisee locations 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. 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.
Certain statements contained in this release include "forward-looking statements." Forward-looking statements include information concerning the rights offering, 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 levels of travel demand, particularly with respect to airline passenger traffic in the United States and in global markets; the effect of the Company’s separation of its vehicle and equipment rental businesses, any failure by Herc Holdings Inc. to comply with the agreements entered into in connection with the separation and the Company’s ability to obtain the expected benefits of the separation; 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 its rental operations accordingly; increased vehicle costs due to declines in the 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 its revenue earning vehicles and to refinance its existing indebtedness; 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 ability to adequately respond to changes in technology and customer demands; the Company’s ability to retain customer loyalty and market share; the Company’s recognition of previously deferred tax gains on the disposition of revenue earning vehicles; an increase in the Company’s vehicle costs or disruption to its rental activity, particularly during its peak periods, due to safety recalls by the manufacturers of its vehicles; the Company’s access to third-party distribution channels and related prices, commission structures and transaction volumes; the Company’s ability to execute a business continuity plan; a major disruption in the Company’s communication or centralized information networks; a failure to maintain, upgrade and consolidate the Company’s information technology networks; financial instability of the manufacturers of the Company’s vehicles; any impact on the Company from the actions of its franchisees, dealers and independent contractors; the Company’s ability to sustain operations during adverse economic cycles and unfavorable external events (including war, terrorist acts, natural disasters and epidemic disease); shortages of fuel and increases or volatility in fuel costs; the Company’s ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy; the Company’s ability to maintain an effective employee retention and talent management strategy and resulting changes in personnel and employee relations; costs and risks associated with litigation and investigations; 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 its 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 facility, its outstanding unsecured senior notes, its outstanding senior second priority secured notes and certain asset-backed and asset-based arrangements; 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; risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anticorruption or antibribery laws and the Company’s ability to repatriate cash from non-U.S. affiliates without adverse tax consequences; 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; changes in the existing, or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations, such as the adoption of new regulations under the Tax Cuts and Jobs Act, 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; fluctuations in interest rates and commodity prices; the Company’s exposure to fluctuations in foreign currency exchange rates 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.
ESTERO, Fla., July 18, 2019 /PRNewswire/ — Hertz Global Holdings, Inc. (NYSE: HTZ) (the "Company") today announced that its wholly-owned subsidiary, The Hertz Corporation ("Hertz"), intends to offer $500 million aggregate principal amount of senior unsecured notes (the "Notes"), subject to market and other conditions, in a private offering (the "Offering") exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act").
The Notes will pay interest semi-annually in arrears. The Notes are expected to be guaranteed on a senior unsecured basis by the domestic subsidiaries of Hertz that guarantee its senior credit facilities from time to time.
Hertz intends to use the proceeds from the issuance of the Notes, together with net proceeds from the Company’s previously announced rights offering, to consummate the redemption of the 2020 Notes and 2021 Notes as described below, pay accrued and unpaid interest in connection with redemption of the 2020 Notes and the 2021 Notes, pay fees and expenses in connection with the foregoing and use any remaining proceeds for general corporate purposes.
On July 12, 2019, Hertz issued conditional notices of redemption to (1) redeem $699.8 million aggregate principal amount of its outstanding 5.875% Senior Notes due 2020 (the "2020 Notes") and (2) redeem an aggregate principal amount of its outstanding 7.375% Senior Notes due 2021 (the "2021 Notes") equal to (i) the net proceeds from one or more capital markets offerings described in the applicable Notice of Conditional Redemption (the "Capital Markets Offerings"), minus (ii) the amount of such net proceeds used to consummate the redemption of the 2020 Notes as determined by Hertz in its sole and absolute discretion.
The redemptions of the 2020 Notes and 2021 Notes are each subject to the satisfaction of specified conditions precedent set forth in the applicable Notice of Conditional Redemption, including the consummation of the Capital Markets Offerings on terms and conditions satisfactory in all respects to Hertz and the amount of net proceeds received from the Capital Markets Offerings. The anticipated redemption date is August 11, 2019 or, if the conditions precedent are not satisfied on or prior to August 11, 2019, such later date (but not later than September 10, 2019) as such conditions precedent are so satisfied.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the Notes (and the guarantees of the Notes) or any other securities, nor will there be any sale of the Notes (or any guarantees of the Notes) or any other securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. The Notes (and the guarantees of the Notes) will be issued in reliance on the exemption from the registration requirements provided by Rule 144A under the Securities Act and, outside of the United States, only to non-U.S. investors pursuant to Regulation S under the Securities Act. None of the Notes (or the guarantees of the Notes) have been registered under the Securities Act or any state or other jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state and other jurisdiction’s securities laws.
This press release does not constitute a notice of redemption under the indentures governing the 2020 Notes or the 2021 Notes, nor an offer to tender for, or purchase, any 2020 Notes, any 2021 Notes or any other security. There can be no assurances that the conditions precedent to the redemptions will be satisfied or that the redemptions will occur.
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 10,200 company-owned, licensee and franchisee locations 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. 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.
Certain statements contained in this release include "forward-looking statements." Forward-looking statements include information concerning the rights offering, 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 levels of travel demand, particularly with respect to airline passenger traffic in the United States and in global markets; the effect of the Company’s separation of its vehicle and equipment rental businesses, any failure by Herc Holdings Inc. to comply with the agreements entered into in connection with the separation and the Company’s ability to obtain the expected benefits of the separation; 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 its rental operations accordingly; increased vehicle costs due to declines in the 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 its revenue earning vehicles and to refinance its existing indebtedness; 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 ability to adequately respond to changes in technology and customer demands; the Company’s ability to retain customer loyalty and market share; the Company’s recognition of previously deferred tax gains on the disposition of revenue earning vehicles; an increase in the Company’s vehicle costs or disruption to its rental activity, particularly during its peak periods, due to safety recalls by the manufacturers of its vehicles; the Company’s access to third-party distribution channels and related prices, commission structures and transaction volumes; the Company’s ability to execute a business continuity plan; a major disruption in the Company’s communication or centralized information networks; a failure to maintain, upgrade and consolidate the Company’s information technology networks; financial instability of the manufacturers of the Company’s vehicles; any impact on the Company from the actions of its franchisees, dealers and independent contractors; the Company’s ability to sustain operations during adverse economic cycles and unfavorable external events (including war, terrorist acts, natural disasters and epidemic disease); shortages of fuel and increases or volatility in fuel costs; the Company’s ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy; the Company’s ability to maintain an effective employee retention and talent management strategy and resulting changes in personnel and employee relations; costs and risks associated with litigation and investigations; 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 its 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 facility, its outstanding unsecured senior notes, its outstanding senior second priority secured notes and certain asset-backed and asset-based arrangements; 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; risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anticorruption or antibribery laws and the Company’s ability to repatriate cash from non-U.S. affiliates without adverse tax consequences; 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; changes in the existing, or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations, such as the adoption of new regulations under the Tax Cuts and Jobs Act, 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; fluctuations in interest rates and commodity prices; the Company’s exposure to fluctuations in foreign currency exchange rates 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.
ESTERO, Fla., July 18, 2019 /PRNewswire/ — Hertz Global Holdings, Inc. (NYSE: HTZ) ("Hertz Global" or the "Company") today announced the closing of its highly successful, over-subscribed rights offering. At the closing, the Company is issuing an aggregate of 57,915,055 new shares of common stock at the subscription price of $12.95 per share for total gross proceeds of approximately $750 million to the Company. Pursuant to the terms of the rights offering, 55,816,783 shares of common stock are being purchased pursuant to the exercise of basic subscription rights and 2,098,272 shares of common stock are being purchased under the over‑subscription right. After giving effect to the rights offering, the Company will have 142,067,494 shares of common stock issued and outstanding.
Based on the final results, affiliates of Carl C. Icahn are purchasing a total of 17,631,446 shares of common stock pursuant to basic subscription rights and over-subscription rights.
Hertz Global will use the proceeds from the rights offering to deleverage its balance sheet by repaying debt obligations.
Investors who have participated in the rights offering should expect to see the shares of common stock issued to them in book-entry or, uncertificated, form. Any excess subscription payments received by Computershare Trust Company, N.A. (the "subscription agent") will be returned by the subscription agent to investors, without interest or deduction, through the same method by which they participated in the rights offering.
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 10,200 company-owned, licensee and franchisee locations 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. 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.
Certain statements contained in this release 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 (the "SEC").
Among other items, such factors could include: the levels of travel demand, particularly with respect to airline passenger traffic in the United States and in global markets; the effect of the Company’s separation of its vehicle and equipment rental businesses, any failure by Herc Holdings Inc. to comply with the agreements entered into in connection with the separation and the Company’s ability to obtain the expected benefits of the separation; 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 its rental operations accordingly; increased vehicle costs due to declines in the 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 its revenue earning vehicles and to refinance its existing indebtedness; 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 ability to adequately respond to changes in technology and customer demands; the Company’s ability to retain customer loyalty and market share; the Company’s recognition of previously deferred tax gains on the disposition of revenue earning vehicles; an increase in the Company’s vehicle costs or disruption to its rental activity, particularly during its peak periods, due to safety recalls by the manufacturers of its vehicles; the Company’s access to third-party distribution channels and related prices, commission structures and transaction volumes; the Company’s ability to execute a business continuity plan; a major disruption in the Company’s communication or centralized information networks; a failure to maintain, upgrade and consolidate the Company’s information technology networks; financial instability of the manufacturers of the Company’s vehicles; any impact on the Company from the actions of its franchisees, dealers and independent contractors; the Company’s ability to sustain operations during adverse economic cycles and unfavorable external events (including war, terrorist acts, natural disasters and epidemic disease); shortages of fuel and increases or volatility in fuel costs; the Company’s ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy; the Company’s ability to maintain an effective employee retention and talent management strategy and resulting changes in personnel and employee relations; costs and risks associated with litigation and investigations; 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 its 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 facility, its outstanding unsecured senior notes, its outstanding senior second priority secured notes and certain asset-backed and asset-based arrangements; 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; risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anticorruption or antibribery laws and the Company’s ability to repatriate cash from non-U.S. affiliates without adverse tax consequences; 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; changes in the existing, or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations, such as the adoption of new regulations under the Tax Cuts and Jobs Act, 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; fluctuations in interest rates and commodity prices; the Company’s exposure to fluctuations in foreign currency exchange rates 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 the prospectus supplement filed with the SEC relating to the rights offering, 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.
ESTERO, Fla., July 16, 2019 /PRNewswire/ — Millennials have named Hertz (NYSE: HTZ) as their favorite global car rental company in the 2019 Trazees Awards.
"Travelers of all ages have many transportation options today and we’re honored that Millennials have chosen Hertz as their favorite car rental provider," said Jayesh Patel, Hertz Senior Vice President of Brand. "This recognition shows that we’re focused on the right things – providing exceptional service, top-rated vehicles and innovations that speed up their travels such as our redesigned mobile app and Hertz Fast Lane powered by CLEAR."
"We also know that Millennials value having memorable experiences when they travel and that’s why we’re here to help them get there and enjoy those moments that matter like exploring a coastal town in a sporty convertible, getting to a job interview in a new city or reuniting with friends for a wedding," Patel added. "We’re also committed to enhancing their journey by introducing new experiential rewards and benefits through our Hertz Gold Plus Rewards loyalty program, offering exciting vacation giveaways, enabling customers to book personalized travel experiences in thousands of destinations through our Hertz+ platform and more."
Hertz moved up from the second spot in the car rental category from last year in the Trazees Awards which are voted on annually by Millennial readers of trazeetravel.com, the sister web publication to Global Traveler, globaltravelerusa.com and whereverfamily.com. Trazee Travel is a one-stop resource for travelers aged 25-40 with news, tips, reviews and more. Reader nominations for The Trazees were collected from December 2018-March 2019.
ABOUT HERTZ The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar, Thrifty and Firefly vehicle rental brands in approximately 10,200 corporate and franchisee locations 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 rental companies, and the Hertz brand is one of the most recognized in the world. 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, operates the Hertz 24/7 car sharing business in international markets, and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit: www.hertz.com.
ESTERO, Fla., July 15, 2019 /PRNewswire/ — Hertz Global Holdings, Inc. (NYSE: HTZ) ("Hertz Global" or the "Company") today announced the preliminary results of its highly successful, over-subscribed rights offering following the expiration of the subscription period at 5:00 p.m., Eastern Time, on July 12, 2019 (the "expiration date"). According to Computershare Trust Company, N.A., the subscription agent for the rights offering, as of the expiration date, 68,604,395 basic subscription rights were exercised to purchase an aggregate of 47,218,016 shares of common stock and 303,590,241 additional shares of common stock were subscribed for under the over-subscription right, subject to proration. In addition, 20,781,699 basic subscription rights were exercised subject to guaranteed delivery and 70,708,114 additional shares of common stock were subscribed for pursuant to the over-subscription right subject to guaranteed delivery and proration. The shares of common stock were purchased at the subscription price of $12.95 per whole share. The Company expects the subscription agent to distribute the shares of common stock and the proceeds from the rights offering on or about July 18, 2019.
The results of the rights offering, including the allocation of shares to be issued in the rights offering, are preliminary and subject to change pending the expiration of the guaranteed delivery period under the rights offering and finalization of subscription procedures by the subscription agent. Hertz expects to issue a press release on or about July 18, 2019 to announce the final results of the rights offering.
Hertz will receive aggregate gross proceeds of approximately $750 million from the rights offering and expects to use the proceeds to deleverage its balance sheet by repaying debt obligations.
If a holder did not exercise its subscription rights prior to the expiration date, such rights have expired and are void and have no value, and such holder owns the same number of shares of Hertz common stock as such holder did before the commencement of the rights offering.
A shelf registration statement on Form S-3 relating to the rights and shares of common stock was previously filed with the Securities and Exchange Commission (the "SEC") and declared effective on June 12, 2019. A prospectus relating to the rights offering was filed with the SEC on June 13, 2019 and is available on the SEC’s website.
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 10,200 company-owned, licensee and franchisee locations 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. 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.
Certain statements contained in this release include "forward-looking statements." Forward-looking statements include information concerning the rights offering, 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 levels of travel demand, particularly with respect to airline passenger traffic in the United States and in global markets; the effect of the Company’s separation of its vehicle and equipment rental businesses, any failure by Herc Holdings Inc. to comply with the agreements entered into in connection with the separation and the Company’s ability to obtain the expected benefits of the separation; 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 its rental operations accordingly; increased vehicle costs due to declines in the 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 its revenue earning vehicles and to refinance its existing indebtedness; 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 ability to adequately respond to changes in technology and customer demands; the Company’s ability to retain customer loyalty and market share; the Company’s recognition of previously deferred tax gains on the disposition of revenue earning vehicles; an increase in the Company’s vehicle costs or disruption to its rental activity, particularly during its peak periods, due to safety recalls by the manufacturers of its vehicles; the Company’s access to third-party distribution channels and related prices, commission structures and transaction volumes; the Company’s ability to execute a business continuity plan; a major disruption in the Company’s communication or centralized information networks; a failure to maintain, upgrade and consolidate the Company’s information technology networks; financial instability of the manufacturers of the Company’s vehicles; any impact on the Company from the actions of its franchisees, dealers and independent contractors; the Company’s ability to sustain operations during adverse economic cycles and unfavorable external events (including war, terrorist acts, natural disasters and epidemic disease); shortages of fuel and increases or volatility in fuel costs; the Company’s ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy; the Company’s ability to maintain an effective employee retention and talent management strategy and resulting changes in personnel and employee relations; costs and risks associated with litigation and investigations; 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 its 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 facility, its outstanding unsecured senior notes, its outstanding senior second priority secured notes and certain asset-backed and asset-based arrangements; 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; risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anticorruption or antibribery laws and the Company’s ability to repatriate cash from non-U.S. affiliates without adverse tax consequences; 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; changes in the existing, or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations, such as the adoption of new regulations under the Tax Cuts and Jobs Act, 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; fluctuations in interest rates and commodity prices; the Company’s exposure to fluctuations in foreign currency exchange rates 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 the prospectus filed with the SEC relating to the rights offering, 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.
LONDON, July 11, 2019 /PRNewswire/ — Hertz Europe Ltd, part of Hertz Global Holdings, Inc. (NYSE: HTZ), has announced that customers of Hertz, Dollar and Thrifty can now rent a car using a valid debit card in a host of countries across Europe. The new, easy payment option gives customers with a Debit Mastercard or other recognised debit cards access to standard car and van rentals at key European locations, opening up the rental market for new users in time for the summer holiday season.
The updated policy applies to locations in Belgium, Czech Republic, France, Germany, Italy, Luxembourg, The Netherlands, Slovakia, mainland Spain and the UK.
Although the majority of people renting cars today pay with a credit card, many people across Europe do not have access to one. In addition, recent Mastercard research shows that people are increasingly using their debit card. In 2016, more than seventy percent (70%) of all card payment transactions in Europe were made with debit cards, representing over €2 trillion in card payments1, with additional research showing that fifty percent (50%) of people carry debit cards only2.
Tracy Gehlan, Senior Vice President, Hertz Europe, commented: "A significant number of people do not have access to a credit card or simply prefer to use their debit card for certain transactions. With the holiday season fast approaching, we are pleased to make it easier for our customers to pay by debit card in thousands of locations across Europe. The new ‘pay your own way’ option is all about offering customers greater flexibility, convenience and choice in how they rent from us, putting them in the driving seat."
Gehlan added: "As part of our ongoing commitment to customer excellence, our guests wishing to use a debit card can expect the same ease of service as with a credit card."
Mauro Fiorentino, Vice President of Merchant Partnerships at Mastercard commented: "We know people’s choice of how to pay differs, so it’s essential we work together with partners like Hertz to broaden acceptance and give customers that choice in how to pay. Enabling Debit Mastercard acceptance at Hertz, Dollar and Thrifty is a major step forward and it will improve the overall customer experience for our cardholders across Europe."
Customers who prefer to use a debit card must have a Debit Mastercard or other recognised debit cards, and will undergo the same ID and Driving Licence checks before renting the vehicle. A pre-authorised deposit for the vehicle will be held on the customer’s account.
Once the vehicle has been returned, reserved amount/deposit will be released less any owed charges. Typically, it can take four to seven days for the customer’s deposit to appear back in their account, depending on the card issuer. Hertz advises customers to check with their card issuer for further details.
At the time of pick-up the main driver will need to present a valid driver’s licence, a passport or ID card, and the credit or debit card that was used for the booking online. This MUST be presented by the person in whose name the vehicle was booked.
Hertz, Dollar or Thrifty will reserve credit (if paying with a credit card) or take a pre-authorised deposit (if paying with a debit card) to cover the estimated charges arising from the customer’s rental, including a full tank of fuel. The reserved credit/deposit will be released on final calculation and payment of the rental charges on return (minus any charges). Customers should check with their card issuer on when their deposit will appear in their account (est. 4-7 days, but it could take up to 30 days).
At the time of rental, credit or charge cards must have available credit, and acceptable debit/check cards must have available funds, sufficient to pay the estimated amount of the rental charges plus the credit reserved or deposit pre-authorised by Hertz, Dollar or Thrifty.
Customers may find a slight variation between the exchange rate received when collecting their car compared to when they return it. The exchange rate is given to customers by their bank, so customers are advised to refer to their bank’s policy for more information.
For some car groups (Premium) the driver may be required to present one or two credit cards. Details can be found in the Forms of Payment information.
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 10,200 company-owned, licensee and franchisee locations 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 rental companies, and the Hertz brand is one of the most recognized in the world. 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, 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.
About Mastercard
Mastercard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. Our global payments processing network connects consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MastercardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.
ESTERO, Fla., July 1, 2019 /PRNewswire/ — Hertz Global Holdings, Inc. (NYSE: HTZ) announced today that it plans to report its second quarter 2019 financial results after market close on Tuesday, August 6 and will host its accompanying webcast and conference call to discuss such results on Wednesday, August 7 at 8:30 a.m. ET.
This webcast and conference call can be accessed through a link on the Investor Relations section of the Hertz website, ir.hertz.com, or by dialing (800) 230-1059 and providing passcode 469574. Investors are encouraged to dial-in approximately 10 minutes prior to the call. A web replay will remain available for approximately one year. A telephone replay will be available one hour following the conclusion of the call for one year at (800) 475-6701 with pass code 469574.
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 10,200 corporate and franchisee locations 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.
