ESTERO, Fla., July 5, 2022 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) (the "Company") announced today that it plans to report its second quarter 2022 financial results at approximately 7:30 a.m. ET on Thursday, July 28, 2022 followed by an earnings call at 8:30 a.m. ET.
A live webcast of the call will be available on the Investor Relations page of the Company’s website at https://ir.hertz.com. To access the call by phone, please go to https://register.vevent.com/register/BI2433af661d3d4b639a2e3512a894d4d6, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A web replay will remain available on the website for approximately one year.
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales.
ESTERO, Fla. and LONDON, June 25, 2022 /PRNewswire/ — Hertz announced today it is sponsoring a new Porsche racecar to compete in the 2023 FIA World Endurance Championship (WEC) which includes the legendary 24 Hours of Le Mans race. Hertz will serve as title sponsor for a new Porsche 963 LMDh racecar from 2023 to 2025.
Vehicle design leader Singer Group and JOTA, the recently crowned Le Mans LMP2 winner, will join the new racing team. Singer Group will serve as a sponsor and JOTA will oversee all vehicle and race-day preparation and manage the team, crew and drivers.
Hertz has a long history of successful auto racing sponsorships in NASCAR, MotoGP, rallying and other sportscar racing. Participating in the WEC marks a new chapter in the company’s involvement with premium motorsports experiences.
"We’re excited to sponsor a new Hertz racing team and partner with JOTA and Singer to join one of the most thrilling and prestigious race series in the world," said Hertz CEO Stephen Scherr. "Hertz intends to transform the future of mobility through technological innovation and a digital-first customer experience, and we look forward to bringing our brand to millions of car racing fans at next year’s World Endurance Championship."
"Racing with Hertz and Singer is a momentous milestone for JOTA," said David Clark, co-owner of JOTA. "We have enjoyed hard-won success at a global level in recent years, particularly at Le Mans. With this new team, we will be in a very strong position to keep our momentum going when sportscar racing truly enters a golden period in 2023."
More details about the new Hertz-sponsored racing team, including the livery of the car, will be announced soon.
About Hertz The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin American, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognised globally. Additionally, The Hertz Corporation operates the Firefly Car Rental, Ace Rental Cars and Hertz 24/7 in select markets as well as the Flexicar car sharing business in Australia and New Zealand. For more information about The Hertz Corporation, visit www.hertz.com.
Certain statements contained in this release include "forward-looking statements" within the meaning of applicable securities laws and regulations. These statements often include words such as "believe," "expect," "enable," "develop," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts" or similar expressions. These statements are based on the Hertz’s current views with respect to future events. These forward-looking statements are subject to a number of risks and uncertainties including prevailing market conditions, our ability to implement the initiatives described in this press release, as well as other factors described in the Risk Factor sections of our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Qs. Forward-looking statements represent Hertz’s estimates and assumptions only as of the date that they were made, and, except as required by law, Hertz 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., June 15, 2022 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz" or the "Company") today announced that its Board of Directors approved a new $2.0 billion share repurchase program. The new authorization is in addition to the $2.0 billion share repurchase program announced in November 2021. With approximately $0.2 billion remaining under the previous authorization, pursuant to which the Company has repurchased approximately 88 million shares as of June 14, 2022, the Company now has $2.2 billion available under the programs.
"The increased authorization underscores the confidence that management and the board have in the direction of the Company," said Stephen Scherr, Hertz chief executive officer. "We remain committed to our capital allocation strategy that utilizes organic cash flows and appropriate leverage to invest in technology, modernize our fleet, and return capital to shareholders."
Repurchases will be made at management’s discretion and may be executed through a variety of methods, such as open-market transactions (including pre-set trading plans), privately negotiated transactions, accelerated share repurchases, and other transactions in accordance with applicable securities laws. The program has no time limit. The share repurchase authorization does not obligate the Company to acquire any particular amount of common stock and can be discontinued at any time. There can be no assurance as to the timing or number of shares of any repurchases.
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales.
Certain statements contained in this release include "forward-looking statements" within the meaning of applicable securities laws and regulations. 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 the Company’s current views with respect to future events. These forward-looking statements are subject to a number of risks and uncertainties including prevailing market conditions, as well as other factors. Forward-looking statements represent the Company’s estimates and assumptions only as of the date that they were made, and, except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
ESTERO, Fla., June 1, 2022 /PRNewswire/ — Hertz (NASDAQ: HTZ) today announced that Liz Bowyer has joined the company as executive vice president of corporate affairs, effective June 1. Bowyer will be responsible for Hertz’s strategic approach to communications, corporate reputation, and the company’s social responsibility and sustainability initiatives.
"This new senior leader position demonstrates our continued focus on communicating across our broad group of stakeholders, and actively positioning Hertz in the public conversation on issues related to our business and the future of mobility," said Hertz CEO Stephen Scherr. "Liz brings a wealth of experience that will be invaluable as we continue to evolve our business and the Hertz story."
Bowyer has spent her career working at the intersection of communications, politics and law. She’s been a television producer for NBC News, a speechwriter and researcher at the White House, and an attorney practicing complex civil litigation. She was a managing director at Goldman Sachs, overseeing the company’s brand and content strategy as it emerged from the financial crisis. Most recently, she was responsible for brand, content and strategic communications at a tech start-up focused on making home ownership more accessible.
Bowyer received her bachelor’s degree from the University of Florida and her Juris Doctor degree from Columbia Law School. She’s a member of the board of directors of Human Rights First and the Progressive Policy Institute.
"I’m delighted to join Stephen and the team at Hertz for the next chapter of this iconic American company," said Bowyer. "I’m excited to be part of Hertz’s vision to transform the future of mobility while creating a world-class customer experience."
About Hertz
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit www.hertz.com.
Certain statements contained in this release include "forward-looking statements" within the meaning of applicable securities laws and regulations. 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 the Hertz’s current views with respect to future events and the timing of the tender offer. These forward-looking statements are subject to a number of risks and uncertainties including prevailing market conditions, as well as other factors. Forward-looking statements represent Hertz’s estimates and assumptions only as of the date that they were made, and, except as required by law, Hertz 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., May 26, 2022 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz" or the "Company") announced today that its Chief Executive Officer, Stephen Scherr, will participate in a fireside chat at the following conference:
Goldman Sachs Travel and Leisure Conference
Monday, June 6, 2022
11:20 a.m. ET
New York, New York
An audio webcast link of the fireside chat will be accessible on the Company’s Investor Relations website, https://ir.hertz.com. The replay will be available for 90 days from the respective date of the fireside chat.
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales.
For the first time in history, consumers will be able to rent a special Mustang Shelby GT500-H with 900+ horsepower via Hertz at select airport locations
New models combine Shelby’s legendary performance with rental car giant Hertz to create limited-edition fastbacks and convertibles
The exclusive Shelby GT-H models celebrate the 60th anniversary of Shelby American
ESTERO, Fla. and LAS VEGAS, May 10, 2022 /PRNewswire/ — Hertz and Shelby American announce a three-year custom car partnership, kicking off with exclusive 2022 Shelby edition Ford Mustangs. Beginning this summer, this special production run of history-making vehicles will be available for rent at select Hertz locations across the U.S.
The new Mustang Shelby GT500-H fastback, modified with 900+ horsepower, is available to customers to rent this summer as part of the exclusive Hertz and Shelby partnership.
Featuring aluminum forged mono-block wheels, the iconic 5.2L Mustang Shelby GT500-H fastback includes performance spec tires, Shelby GT500-H badges and more.
The collection also includes Mustang Shelby GT-H fastbacks and convertibles, each complete with Borla cat-back performance exhaust for the 5.0L V8, and a staggered wheel kit.
Set off with gold “Le Mans” dual racing and special rocker stripes, each car features the Hertz Edition and Shelby 60th anniversary emblems that celebrate Hertz’s rich performance heritage.
The Mustang Shelby GT-H rides on 20-inch aluminum wheels and is also fitted with a unique Shelby-designed deep-draw hood, upper grille, fascia winglets and taillight panel.
Paying tribute to the original Hertz Shelby “Rent-A-Racer” program, the collection builds on Hertz’s legacy to give consumers the unique opportunity to drive elite, high-performance vehicles.
The collection includes Mustang Shelby GT500-H fastbacks modified with 900+ horsepower and Ford Shelby Mustang GT-H fastbacks and convertibles, each created specifically for Hertz. The vehicles pay tribute to the original "Rent-A-Racer," the legendary 1966 Shelby GT350-H, and builds on Hertz’s legacy to give customers the unique opportunity to drive elite, high-performance vehicles they can’t access anywhere else.
The Mustang Shelby GT500-H will be available in Fort Myers, Las Vegas, Miami, Orlando, Phoenix and Tampa. The Mustang Shelby GT-H convertibles and fastbacks will be available in Atlanta, Dallas, Fort Lauderdale, Fort Myers, Las Vegas, Los Angeles, Miami, Orlando, Phoenix, San Diego, San Francisco and Tampa.
"Shelby American and Ford Motor Company changed the perception of American sports cars, starting with the Shelby Cobra in 1962," said Joe Conway, CEO of Shelby American. "Shelby later teamed with Hertz to create the 1966 Shelby GT350-H, which immediately became one of the most exciting rental cars in the world. Together, we made history again with both a reborn Shelby-GT in 2006, 2007 and in 2016. Now we’re going even further with the first Mustang Shelby GT500-H, which is the most powerful rental car that Shelby has ever built."
"Hertz and Shelby American have created driving magic again," said Stephen Scherr, CEO of Hertz. "This partnership has made automotive history many times over the years, and we look forward to future collaborations that will continue to both push limits and delight our customers with exciting cars and experiences."
Each of the 2022 Shelby Mustang Hertz models will be instantly recognizable with unique styling enhancements that celebrate a rich performance heritage. Nineteen of the Shelby GT500-H fastbacks will wear shadow black exterior paint and six, to honor Shelby American’s 60th anniversary, will be clad in oxford white. The Shelby GT-H fastbacks and convertibles will be available in rapid red metallic, oxford white, carbonized gray and shadow black exterior paint. All will be set off with gold "Le Mans" dual racing stripes and set of special rocker stripes, along with Hertz Edition and Shelby 60th anniversary emblems. Inside, Shelby and Hertz logos are on the seats, sill plates and floor mats; a numbered badge will be on the dash and under the hood. The supercharger on the Shelby GT500-H is gold hued for Hertz’s livery.
Starting with Ford’s world-class Shelby GT500, the 5.2L fastback boasts 900+ horsepower, aluminum forged mono-block wheels, performance spec tires, tinted windows, Shelby GT500-H badges, driver- and passenger-side stripes and much more. Shelby cut 30 pounds by replacing the stock hood with a vented, ultra-light dry carbon fiber one that is also much stronger.
As with previous models, the 2022 Ford Shelby GT-H will include a Borla cat-back performance exhaust for the 5.0L V8. Both convertibles and fastbacks will have staggered wheel kit. The Shelby GT-H rides on 20-inch aluminum wheels wearing all weather Michelin tires and is also fitted with a unique Shelby-designed deep-draw hood, upper grille, fascia winglets and taillight panel.
Shelby American will complete the cars at its assembly facility in Las Vegas and document them in the official Shelby American Registry. With production limited and exclusively destined for Hertz rental fleets across the country, the special-edition cars will give Hertz customers a truly exclusive driving experience.
*Specific equipment and options are subject to change without notice.
About Shelby American, Inc.
Founded by legend Carroll Shelby, Shelby American, a wholly owned subsidiary of Carroll Shelby International Inc., manufactures and markets performance vehicles and related products. The company builds authentic continuation Cobras, including the 427 S/C, 289 FIA, 289 streetcar, Daytona Coupe and Shelby Series 2 component vehicles; it offers the Shelby Super Snake, KR, SE and GT post-title packages for the 2015-2022 Ford Mustang. Shelby American also offers the Shelby Raptor, Shelby F-150 Super Snake and Shelby F-150 trucks, as well as the Shelby F-250 Super Baja. Heritage cars include the continuation 1965 Shelby GT350 competition model, 1967 Ford Shelby Super Snake and 1968 Ford Shelby GT500KR. For more information, visit www.Shelby.com.
About Hertz
Hertz, one of the most recognized brands in the world, has a long-standing legacy of providing a fast and easy experience designed to make every journey special. It starts with top-rated vehicles to fit every traveler’s needs, delivered with a caring touch and personalized services including its award-winning Hertz Gold Plus Rewards loyalty program, Ultimate Choice, Hertz app, and more. To learn more or to reserve a vehicle at an airport or a convenient neighborhood Hertz location, visit Hertz.com.
Hertz pioneered the car rental industry more than 100 years ago and today is owned by Hertz Global Holdings, Inc. which includes Dollar and Thrifty vehicle rental brands.
For the first time ever, grads under 25 drive young renter fee-free for everything from post-graduation road trips in a sporty coupe to relocating for their next chapter in a brand-new box truck
ESTERO, Fla., May 2, 2022 /PRNewswire/ — To celebrate Spring 2022 college graduates, today Hertz launched a new offer designed specifically to meet the needs of young renters. College graduates under 25 who become a Hertz Gold Plus Rewards® member will get the Young Renter Fee waived* when they rent by signing up at hertz.com/grads.
Gold Plus Rewards members enjoy a faster pickup and drop-off experience. Free to join, benefits start from day one and include:
Hertz Celebrates Grads by Waiving Young Renter Fee
Box trucks available at Hertz
Choosing from a wide selection of cars from fuel-free EVs, luxury sedans and sports cars to SUVs, trucks, vans and more
Skipping the counter and going straight to your car at select locations
Earning points toward free rental days and upgrades
Adding an additional driver for free*
Dropping the keys and going at return
"We couldn’t be more thrilled to celebrate the class of 2022," said Laura Smith, Hertz Executive Vice President of Sales, Marketing and Customer Experience. "Introducing younger customers to our brand is vital as we create a new Hertz and become a leader in the future of mobility and travel. This new loyalty offering for young renters, our industry-leading investment in EVs, and the upcoming digital enhancements we’re making to further enable a fast and seamless car rental experience are a few examples of how we’re appealing to Gen Z’s values, unique needs and preferences."
Perfectly timed to align with college graduations around the country and ahead of the busy summer moving season, Hertz has also expanded its U.S. rental fleet to include 12- and 16-foot box trucks that are available for rent for business and personal use at select Hertz neighborhood locations. Hertz continues to offer a broad range of vehicles to support customers’ diverse transportation and mobility needs, including helping grads move on to their next chapter whether that be relocating for their first job, or transitioning to a new apartment or house.
The new, modern box trucks feature state-of-the-art safety features and are easy to drive with automatic transmissions, parking sensors and rearview cameras. Hertz also offers moving supplies like dollies, hand trucks, tie-down straps and padlocks that can be added to rentals at select locations. In addition to box trucks, Hertz also has pickup trucks and cargo vans available to rent at its Hertz neighborhood locations.
To learn more and to sign up for the college grad young renter offering, visit hertz.com/grads. For moving needs, visit Hertz’s dedicated truck and van rental page to view makes and models and book a reservation at a nearby neighborhood location: hertz.com/trucks.
*The young renter fee is waived for college graduates, age 21-24 who join Hertz Gold Plus Rewards and meet standard rental qualifications. Advance reservation required and must include CDP #2232366 at booking. Age restrictions apply on certain car classes. Waiver subject to verification. No additional driver fee is charged for a spouse or domestic partner of a renting Gold Plus Rewards Member. All other standard terms and conditions of Hertz rentals and Gold Plus Rewards program apply.
About Hertz
Hertz, one of the most recognized brands in the world, has a long-standing legacy of providing a fast and easy experience designed to make every journey special. It starts with top-rated vehicles to fit every traveler’s needs, delivered with a caring touch and personalized services including its award-winning Hertz Gold Plus Rewards loyalty program, Ultimate Choice, Hertz app, and more. To learn more or to reserve a vehicle at an airport or a convenient neighborhood Hertz location, visit Hertz.com.
Hertz pioneered the car rental industry more than 100 years ago and today is owned by Hertz Global Holdings, Inc. which includes Dollar and Thrifty vehicle rental brands.
"Hertz produced a very strong first quarter," said Stephen Scherr, Hertz chief executive officer. "Our team delivered on behalf of customers amidst strong demand, reflecting a sharp rebound in travel. We experienced high volumes and sustained pricing, particularly in the back half of the quarter following Omicron. We also maintained cost discipline and began to see the benefits of several new partnerships. I am equally pleased with our momentum on customer experience – especially as we move into the peak summer travel season and as we play a more central role in mobility over the longer term."
ESTERO, Fla., April 27, 2022 /PRNewswire/ — Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz", "Hertz Global" or the "Company") today reported results for its first quarter 2022.
HIGHLIGHTS
Total revenues of $1.8 billion
GAAP net income of $426 million, or $0.82 per diluted share
Adjusted Net Income of $403 million, or $0.87 per adjusted diluted share (reflects adjustments for fair value remeasurements to outstanding public warrants and certain derivative contracts, among other items)
Adjusted Corporate EBITDA of $614 million
Adjusted Corporate EBITDA Margin of 34%
Operating cash flow of $621 million and adjusted operating cash flow of $677 million
Corporate liquidity of $2.7 billion at March 31st, including $1.5 billion in unrestricted cash
Company repurchased 38 million common shares from January 1, 2022 through April 21, 2022
For the first quarter 2022, the Company generated total revenues of $1.8 billion, which were 57% higher than the first quarter 2021, excluding Donlen. Monthly revenue per unit rose 26%, due to structural improvements and a continued recovery in travel demand. These trends, along with strong cost performance, drove $0.87 of adjusted earnings per share and $614 million of Adjusted Corporate EBITDA.
SUMMARY RESULTS
Three Months Ended
March 31,
Percent Inc/(Dec)
2022 vs 2021
($ in millions, except earnings per share or where noted)
2022
2021
Hertz Global – Consolidated
Total revenues
$ 1,810
$ 1,289
40%
Adjusted net income (loss)(a)
$ 403
$ (52)
NM
Adjusted diluted earnings (loss) per share(a)
$ 0.87
$ (0.33)
NM
Adjusted Corporate EBITDA(a)
$ 614
$ 2
NM
Adjusted Corporate EBITDA Margin(a)
34%
—%
Average Vehicles (in whole units)
481,211
367,600
31%
Average Rentable Vehicles (in whole units)
455,517
361,561
26%
Vehicle Utilization
75%
76%
Transaction Days (in thousands)
30,621
24,648
24%
Total RPD (in dollars)(b)
$ 59.17
$ 46.36
28%
Total RPU Per Month (in whole dollars)(b)
$ 1,326
$ 1,053
26%
Depreciation Per Unit Per Month (in whole dollars)(b)
$ (40)
$ 219
NM
Americas RAC Segment
Total revenues
$ 1,558
$ 967
61%
Adjusted EBITDA
$ 641
$ 26
NM
Adjusted EBITDA Margin
41%
3%
Average Vehicles (in whole units)
397,620
300,606
32%
Average Rentable Vehicles (in whole units)
373,153
296,412
26%
Vehicle Utilization
76%
76%
Transaction Days (in thousands)
25,579
20,251
26%
Total RPD (in dollars)(b)
$ 60.90
$ 47.75
28%
Total RPU Per Month (in whole dollars)(b)
$ 1,391
$ 1,087
28%
Depreciation Per Unit Per Month (in whole dollars)(b)
$ (78)
$ 233
NM
International RAC Segment
Total revenues
$ 252
$ 186
36%
Adjusted EBITDA
$ 27
$ (8)
NM
Adjusted EBITDA Margin
11%
(4)%
Average Vehicles (in whole units)
83,591
66,995
25%
Average Rentable Vehicles (in whole units)
82,364
65,149
26%
Vehicle Utilization
68 %
75 %
Transaction Days (in thousands)
5,042
4,397
15%
Total RPD (in dollars)(b)
$ 50.43
$ 39.92
26%
Total RPU Per Month (in whole dollars)(b)
$ 1,029
$ 898
15%
Depreciation Per Unit Per Month (in whole dollars)(b)
$ 138
$ 156
(11)%
NM – Not meaningful
NOTE: Hertz Global – consolidated key metrics reflect global rental car operations only and exclude Donlen fleet management and leasing
(a)
Represents a non-GAAP measure. See the accompanying reconciliations included in Supplemental Schedule II.
(b)
Based on December 31, 2021 foreign exchange rates.
LIQUIDITY AND CAPITAL RESOURCES
During the first quarter 2022, the Company repurchased 35 million shares of its common stock for an aggregate price of $722 million. Between April 1, 2022 and April 21, 2022, the Company repurchased 3 million shares of Hertz Global’s common stock for an aggregate purchase price of $70 million. As of April 21, 2022, $800 million remains available for share repurchases under the Board-approved plan.
During the first quarter 2022, the Company issued multiple series of medium-term fixed rate rental car asset backed notes for $2.5 billion. The net proceeds from the issuances were used to repay amounts outstanding on certain of the Company’s variable rate rental car asset backed notes and for the future acquisition or refinancing of vehicles. Also, the Series 2021-A variable funding notes were amended to increase the maximum principal amount to $3.2 billion.
During the first quarter 2022, the Company amended its First Lien RCF to increase commitments from $1.3 billion to $1.5 billion, increase the sublimit for letters of credit from $1.1 billion to $1.4 billion and to revise the interest benchmark from a USD London Inter-Bank Offered Rate to a Secured Overnight Funding Rate.
The Company’s liquidity position was $2.7 billion at March 31, 2022, of which $1.5 billion was unrestricted cash.
EARNINGS WEBCAST INFORMATION
Hertz Global’s live webcast and conference call to discuss its first quarter 2022 results will be held on April 27, 2022, at 5:00 p.m. Eastern Time. The conference call will be broadcast live in listen-only mode on the company’s investor relations website at IR.Hertz.com. If you would like to ask a question, the dial in number for the conference call is (800) 924-0350; access code 7595076. Investors are encouraged to dial-in approximately 10 minutes prior to the call. A web replay will remain available on the website for approximately one year. The earnings release and related supplemental schedules containing the reconciliations of non-GAAP measures will be available on the Hertz website, IR.Hertz.com.
UNAUDITED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP MEASURES AND DEFINITIONS
Following is selected financial data of Hertz Global. Also included are Supplemental Schedules, which are provided to present segment results, and reconciliations of non-GAAP measures to their most comparable GAAP measure. Following the Supplement Schedules, the Company provides definitions for terminology used throughout the earnings release and provides the usefulness of non-GAAP measures to investors and additional purposes for which management uses such measures.
In the first quarter of 2022, the Company began using Average Rentable Vehicles when calculating Available Car Days, Total RPU and Utilization instead of Average Vehicles. Average Rentable Vehicles excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels. Prior periods have been restated to conform with the revisions, as appropriate.
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation owns and operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit www.hertz.com.
Certain statements contained or incorporated by reference in this release, and in related comments by the Company’s management, include "forward-looking statements." Forward-looking statements include information concerning the Company’s liquidity and its possible or assumed future results of operations, including descriptions of its business strategies. These statements often include words such as "believe," "expect," "project," "potential," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts," "guidance" or similar expressions. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate in these circumstances. The Company believes these judgments are reasonable, but you should understand that these statements are not guarantees of performance or results, and that the Company’s actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative, that may be revised or supplemented in subsequent reports on Form 10-K, 10-Q and 8-K filed or furnished to the SEC.
Important factors that could affect the Company’s actual results and cause them to differ materially from those expressed in forward-looking statements include, among other things:
the length and severity of COVID-19 and the impact on the Company’s vehicle rental business as a result of travel restrictions and business closures or disruptions, as well as the impact on its employee retention and talent management strategies;
the impact of macroeconomic conditions resulting in inflationary cost pressures resulting in labor and supply chain constraints and increased vehicle acquisition costs, among others;
the Company’s ability to purchase adequate supplies of competitively priced vehicles at a reasonable cost as a result of the continuing global semiconductor microchip manufacturing shortage (the "Chip Shortage") and other raw material supply constraints;
the impact of the conflict between Russia and Ukraine on supply chains and raw materials for the automotive industry and uncertainty on overall consumer sentiment and travel demand, especially in Europe;
the impact on the value of the Company’s non-program vehicles upon disposition when the Chip Shortage and other raw material supply constraints are alleviated;
the Company’s ability to attract and retain key employees;
levels of travel demand, particularly business and leisure travel in the U.S. and in global markets;
significant changes in the competitive environment and the effect of competition in the Company’s markets on rental volume and pricing;
occurrences that disrupt rental activity during the Company’s peak periods;
the Company’s ability to accurately estimate future levels of rental activity and adjust the number and mix of vehicles used in its rental operations accordingly;
the Company’s ability to implement its business strategy, including its ability to implement plans to support a large scale electric vehicle fleet and to play a central role in the modern mobility ecosystem;
the Company’s ability to adequately respond to changes in technology, customer demands and market competition;
the mix of program and non-program vehicles in the Company’s fleet can lead to increased exposure to residual risk;
the Company’s ability to dispose of vehicles in the used-vehicle market and use the proceeds of such sales to acquire new vehicles;
financial instability of the manufacturers of the Company’s vehicles, which could impact its ability to fulfill obligations under repurchase or guaranteed depreciation programs;
an increase in the Company’s vehicle costs or disruption to its rental activity 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 offer an excellent customer experience, retain and increase customer loyalty and market share;
the Company’s ability to maintain its network of leases and vehicle rental concessions at airports in the U.S. and internationally;
the Company’s ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy;
major disruption in the Company’s communication or centralized information networks or a failure to maintain, upgrade and consolidate its information technology systems;
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, as well as its ability to comply with privacy regulations;
risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anti-corruption or anti-bribery laws and the Company’s ability to repatriate cash from non-U.S. affiliates without adverse tax consequences;
the Company’s ability to utilize its net operating loss carryforwards;
risks relating to tax laws, including those that affect the Company’s ability to deduct certain business interest expenses and offset previously-deferred tax gains, as well as any adverse determinations or rulings by tax authorities;
changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, including those related to accounting principles, that affect the Company’s operations, its costs or applicable tax rates;
the recoverability of the Company’s goodwill and indefinite-lived intangible assets when performing impairment analysis;
costs and risks associated with potential litigation and investigations, compliance with and changes in laws and regulations and potential exposures under environmental laws and regulations; and
the availability of additional or continued sources of financing for the Company’s revenue earning vehicles and to refinance its existing indebtedness.
Additional information concerning these and other factors can be found in the Company’s filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date of this release, and, except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
UNAUDITED FINANCIAL INFORMATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
March 31,
(In millions, except per share data)
2022
2021
Revenues
$ 1,810
$ 1,289
Expenses:
Direct vehicle and operating
1,053
778
Depreciation of revenue earning vehicles and lease charges, net
(59)
243
Depreciation and amortization of non-vehicle assets
33
54
Selling, general and administrative
235
151
Interest expense, net:
Vehicle
5
104
Non-vehicle
39
44
Total interest expense, net
44
148
Other (income) expense, net
(2)
(3)
Reorganization items, net
—
42
(Gain) from the sale of a business
—
(392)
Change in fair value of Public Warrants
(50)
—
Total expenses
1,254
1,021
Income (loss) before income taxes
556
268
Income tax (provision) benefit
(130)
(79)
Net income (loss)
426
189
Net (income) loss attributable to noncontrolling interests
—
1
Net income (loss) attributable to Hertz Global
$ 426
$ 190
Weighted average number of shares outstanding:
Basic
432
156
Diluted
461
157
Earnings (loss) per share:
Basic
$ 0.99
$ 1.22
Diluted
$ 0.82
$ 1.21
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In millions, except par value and share data)
March 31, 2022
December 31, 2021
ASSETS
Cash and cash equivalents
$ 1,521
$ 2,258
Restricted cash and cash equivalents:
Vehicle
301
77
Non-vehicle
300
316
Total restricted cash and cash equivalents
601
393
Total cash and cash equivalents and restricted cash and cash equivalents
2,122
2,651
Receivables:
Vehicle
93
62
Non-vehicle, net of allowance of $45 and $48, respectively
707
696
Total receivables, net
800
758
Prepaid expenses and other assets
1,331
1,017
Revenue earning vehicles:
Vehicles
12,118
10,836
Less: accumulated depreciation
(1,554)
(1,610)
Total revenue earning vehicles, net
10,564
9,226
Property and equipment, net
611
608
Operating lease right-of-use assets
1,566
1,566
Intangible assets, net
2,903
2,912
Goodwill
1,044
1,045
Total assets
$ 20,941
$ 19,783
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable:
Vehicle
$ 109
$ 56
Non-vehicle
566
516
Total accounts payable
675
572
Accrued liabilities
939
863
Accrued taxes, net
188
157
Debt:
Vehicle
9,098
7,921
Non-vehicle
2,984
2,986
Total debt
12,082
10,907
Public Warrants
1,272
1,324
Operating lease liabilities
1,502
1,510
Self-insured liabilities
468
463
Deferred income taxes, net
1,113
1,010
Total liabilities
18,239
16,806
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, no shares issued and outstanding
—
—
Common stock, $0.01 par value, 477,673,065 and 477,233,278 shares issued, respectively, and 415,256,346 and 449,782,424 shares outstanding, respectively
5
5
Treasury stock, at cost, 62,416,719 and 27,450,854 common shares, respectively
(1,430)
(708)
Additional paid-in capital
6,237
6,209
Retained earnings (Accumulated deficit)
(1,889)
(2,315)
Accumulated other comprehensive income (loss)
(221)
(214)
Total stockholders’ equity
2,702
2,977
Total liabilities and stockholders’ equity
$ 20,941
$ 19,783
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
March 31,
(In millions)
2022
2021
Cash flows from operating activities:
Net income (loss)
$ 426
$ 189
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and reserves for revenue earning vehicles
(20)
275
Depreciation and amortization, non-vehicle
33
54
Amortization of deferred financing costs and debt discount (premium)
11
34
Stock-based compensation charges
28
2
Provision for receivables allowance
13
29
Deferred income taxes, net
103
62
Reorganization items, net
—
(15)
(Gain) loss from the sale of a business
—
(392)
Change in fair value of Public Warrants
(50)
—
(Gain) loss on financial instruments
(44)
1
Other
(1)
(2)
Changes in assets and liabilities:
Non-vehicle receivables
(43)
(73)
Prepaid expenses and other assets
(40)
(87)
Operating lease right-of-use assets
72
78
Non-vehicle accounts payable
51
40
Accrued liabilities
124
62
Accrued taxes, net
30
36
Operating lease liabilities
(80)
(78)
Self-insured liabilities
8
(15)
Net cash provided by (used in) operating activities
621
200
Cash flows from investing activities:
Revenue earning vehicles expenditures
(2,985)
(1,517)
Proceeds from disposal of revenue earning vehicles
1,471
686
Non-vehicle capital asset expenditures
(30)
(9)
Proceeds from non-vehicle capital assets disposed of or to be disposed of
1
4
Collateral returned in exchange for letters of credit
17
—
Return of (investment in) equity investments
(15)
—
Proceeds from the sale of a business, net of cash sold
—
818
Net cash provided by (used in) investing activities
(1,541)
(18)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt
4,680
1,096
Repayments of vehicle debt
(3,492)
(946)
Proceeds from issuance of non-vehicle debt
—
560
Repayments of non-vehicle debt
(5)
(1)
Payment of financing costs
(24)
(7)
Proceeds from exercises of Public Warrants
3
—
Contributions from (distributions to) noncontrolling interests
—
(10)
Share repurchases
(766)
—
Other
(4)
—
Net cash provided by (used in) financing activities
392
692
Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents
(1)
(12)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents during the period
(529)
862
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period(a)
2,651
1,578
Cash and cash equivalents and restricted cash and cash equivalents at end of period
$ 2,122
$ 2,440
(a)
Amounts include cash and cash equivalents and restricted cash and cash equivalents of Donlen which were held for sale as of December 31, 2020.
Supplemental Schedule I
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
Three Months Ended March 31, 2022
Three Months Ended March 31, 2021
(In millions)
Americas RAC
International RAC
Corporate
Hertz Global
Americas RAC
International RAC
All other operations
Corporate
Hertz Global
Revenues
$ 1,558
$ 252
$ —
$ 1,810
$ 967
$ 186
$ 136
$ —
$ 1,289
Expenses:
Direct vehicle and operating
903
151
(1)
1,053
641
124
5
8
778
Depreciation of revenue earning vehicles and lease charges, net
(93)
34
—
(59)
210
33
—
—
243
Depreciation and amortization of non-vehicle assets
26
3
4
33
44
5
2
3
54
Selling, general and administrative
86
42
107
235
52
32
10
57
151
Interest expense, net:
Vehicle
2
3
—
5
72
20
12
—
104
Non-vehicle
(8)
—
47
39
(2)
1
1
44
44
Total interest expense, net
(6)
3
47
44
70
21
13
44
148
Other (income) expense, net
(1)
(3)
2
(2)
(1)
—
—
(2)
(3)
Reorganization items, net
—
—
—
—
(14)
—
(1)
57
42
(Gain) from the sale of a business
—
—
—
—
—
—
—
(392)
(392)
Change in fair value of Public Warrants
—
—
(50)
(50)
—
—
—
—
—
Total expenses
915
230
109
1,254
1,002
215
29
(225)
1,021
Income (loss) before income taxes
$ 643
$ 22
$ (109)
556
$ (35)
$ (29)
$ 107
$ 225
268
Income tax (provision) benefit
(130)
(79)
Net income (loss)
426
189
Net (income) loss attributable to noncontrolling interests
—
1
Net income (loss) attributable to Hertz Global
$ 426
$ 190
NOTE: Effective in the second quarter of 2021, as a result of the sale of the Company’s Donlen fleet management and leasing business on March 30, 2021, the All Other Operations reportable segment, which consisted primarily of the former Donlen business, was no longer deemed a reportable segment.
Supplemental Schedule II
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE – ADJUSTED NET INCOME (LOSS), ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE AND ADJUSTED CORPORATE EBITDA
Unaudited
Three Months Ended
March 31,
(In millions, except per share data)
2022
2021
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share:
Net income (loss) attributable to Hertz Global
$ 426
$ 190
Adjustments:
Income tax provision (benefit)
130
79
Vehicle and non-vehicle debt-related charges(a)(n)
12
35
Restructuring and restructuring related charges(b)
6
12
Information technology and finance transformation costs(c)
(1)
6
Acquisition accounting-related depreciation and amortization(d)
1
13
Reorganization items, net(e)
—
42
Pre-reorganization and non-debtor financing charges(f)
—
23
Gain from the Donlen Sale(g)
—
(392)
Unrealized (gains) losses on financial instruments(h)
(44)
—
Change in fair value of Public Warrants
(50)
—
Other items(i)(o)
57
(87)
Adjusted pre-tax income (loss)(j)
537
(79)
Income tax (provision) benefit on adjusted pre-tax income (loss)(k)
(134)
27
Adjusted Net Income (Loss)
$ 403
$ (52)
Weighted-average number of diluted shares outstanding
461
157
Adjusted Diluted Earnings (Loss) Per Share(l)
$ 0.87
$ (0.33)
Adjusted Corporate EBITDA:
Net income (loss) attributable to Hertz Global
$ 426
$ 190
Adjustments:
Income tax provision (benefit)
130
79
Non-vehicle depreciation and amortization(m)
33
54
Non-vehicle debt interest, net
39
44
Vehicle debt-related charges(a)(n)
7
28
Restructuring and restructuring related charges(b)
6
12
Information technology and finance transformation costs(c)
(1)
6
Reorganization items, net(e)
—
42
Pre-reorganization and non-debtor financing charges(f)
—
23
Gain from the Donlen Sale(g)
—
(392)
Unrealized (gains) losses on financial instruments(h)
(44)
—
Change in fair value of Public Warrants
(50)
—
Other items(i)(p)
68
(84)
Adjusted Corporate EBITDA
$ 614
$ 2
Supplemental Schedule II (continued)
(a)
Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.
(b)
Represents charges incurred under restructuring actions as defined in U.S. GAAP. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. For the three months ended March 31, 2022, charges incurred related primarily to International RAC. For the three months ended March 31, 2021, charges incurred were $7 million and $5 million International RAC and Corporate, respectively.
(c)
Represents costs associated with the Company’s information technology and finance transformation programs, both of which were multi-year initiatives to upgrade and modernize the Company’s systems and processes. These costs related primarily to Corporate.
(d)
Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.
(e)
Represents charges incurred associated with the Reorganization and emergence from Chapter 11, primarily for professional fees. The charges relate primarily to Corporate.
(f)
Represents charges incurred prior to the filing of the Chapter 11 Cases comprised of preparation charges for the Reorganization, such as professional fees. Also includes, certain non-debtor financing and professional fee charges. For the three months ended March 31, 2021, charges incurred were $10 million, $9 million, $2 million and $2 million in Corporate, Americas RAC, International RAC and All other operations, respectively.
(g)
Represents the gain from the sale of the Company’s Donlen business on March 30, 2021, primarily associated with Corporate.
(h)
Represents unrealized gains (losses) on derivative financial instruments, primarily associated with Americas RAC.
(i)
Represents miscellaneous items. For 2022, primarily includes bankruptcy claims, certain professional fees and charges related to the settlement of bankruptcy claims. For 2021, includes $100 million due to the suspension of depreciation for the Donlen leasing and fleet management operations while classified as held for sale in all other operations, partially offset by charges for a multiemployer pension plan withdrawal liability in Corporate.
(j)
Adjustments by caption on a pre-tax basis were as follows:
Increase (decrease) to expenses
Three Months Ended
March 31,
(In millions)
2022
2021
Direct vehicle and operating
$ (2)
$ 87
Selling, general and administrative
(5)
(31)
Interest expense, net:
Vehicle
36
(39)
Non-vehicle
(5)
(7)
Total interest expense, net
31
(46)
Other income (expense), net
(55)
(12)
Reorganization items, net
—
(42)
Gain from the Donlen Sale
—
392
Change in fair value of Public Warrants
50
—
Total adjustments
$ 19
$ 348
(k)
Derived utilizing a combined statutory rate of 25% and 34% for the periods ended March 31, 2022 and 2021, respectively, applied to the respective Adjusted Pre-tax Income (Loss).
(l)
Adjustments used to reconcile diluted earnings (loss) per share on a GAAP basis to Adjusted Diluted Earnings (Loss) Per Share are comprised of the same adjustments, inclusive of the tax impact, used to reconcile net income (loss) to Adjusted Net Income (Loss) divided by the weighted-average diluted shares outstanding during the period.
(m)
Non-vehicle depreciation and amortization expense for Americas RAC, Corporate and International RAC for the three months ended March 31, 2022 was $26 million, $4 million and $3 million, respectively. For the three months ended March 31, 2021 was $44 million, $5 million, $3 million and $2 million for Americas RAC, International RAC, Corporate and All other operations, respectively.
(n)
Vehicle debt-related charges for Americas RAC and International RAC for the three months ended March 31, 2022 were $6 million and $1 million, respectively. For the three months ended March 31, 2021, vehicle debt-related charges for Americas RAC, International RAC and All other operations were $21 million, $5 million and $2 million, respectively.
(o)
In 2022, includes letter of credit fees recorded in Corporate.
(p)
In 2022, Includes an adjustment for certain non-cash stock-based compensation charges recorded in Corporate.
ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW:
Net cash provided by (used in) operating activities
$ 621
Depreciation and reserves for revenue earning vehicles
20
Bankruptcy related payments – post emergence
36
Adjusted operating cash flow
677
Non-vehicle capital asset expenditures, net
(29)
Adjusted operating cash flow before vehicle investment
648
Net fleet growth after financing
(569)
Adjusted free cash flow
$ 79
CALCULATION OF NET FLEET GROWTH AFTER FINANCING:
Revenue earning vehicles expenditures
$ (2,985)
Proceeds from disposal of revenue earning vehicles
1,471
Revenue earning vehicles capital expenditures, net
(1,514)
Depreciation and reserves for revenue earning vehicles
(20)
Financing activity related to vehicles:
Borrowings
4,680
Payments
(3,492)
Restricted cash changes, vehicle
(223)
Net financing activity related to vehicles
965
Net fleet growth after financing
$ (569)
Note:
Adjusted free cash flow for the first quarter 2021 is not shown in the above table because it is not comparable to the corresponding period in 2022 due to the Company’s restructuring.
Supplemental Schedule IV
HERTZ GLOBAL HOLDINGS, INC.
NET DEBT CALCULATION
Unaudited
As of March 31, 2022
As of December 31, 2021
(In millions)
Vehicle
Non-Vehicle
Total
Vehicle
Non-Vehicle
Total
Term loans
$ —
$ 1,535
$ 1,535
$ —
$ 1,539
$ 1,539
Senior notes
—
1,500
1,500
—
1,500
1,500
U.S. vehicle financing (HVF III)
8,147
—
8,147
7,001
—
7,001
International vehicle financing (Various)
909
—
909
860
—
860
Other debt
94
15
109
93
16
109
Debt issue costs, discounts and premiums
(52)
(66)
(118)
(33)
(69)
(102)
Debt as reported in the balance sheet
9,098
2,984
12,082
7,921
2,986
10,907
Add:
Debt issue costs, discounts and premiums
52
66
118
33
69
102
Less:
Cash and cash equivalents
—
1,521
1,521
—
2,258
2,258
Restricted cash
301
—
301
77
—
77
Restricted cash and restricted cash equivalents associated with Term C Loan
—
245
245
—
245
245
Net Debt
$ 8,849
$ 1,284
$ 10,133
$ 7,877
$ 552
$ 8,429
Corporate leverage ratio(a)
0.5x
0.3x
(a)
Corporate leverage ratio is calculated as non-vehicle net debt divided by LTM Adjusted Corporate EBITDA.
Supplemental Schedule V
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
Global RAC
Three Months Ended
March 31,
Percent Inc/(Dec)
($ in millions, except where noted)
2022
2021
Total RPD
Revenues
$ 1,810
$ 1,153
Foreign currency adjustment(a)
2
(10)
Total Revenues – adjusted for foreign currency
$ 1,812
$ 1,143
Transaction Days (in thousands)
30,621
24,648
Total RPD (in dollars)(b)
$ 59.17
$ 46.36
28 %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency
$ 1,812
$ 1,143
Average Rentable Vehicles (in whole units)(c)
455,517
361,561
Total revenue per unit (in whole dollars)
$ 3,978
$ 3,160
Number of months in period (in whole units)
3
3
Total RPU Per Month (in whole dollars)(b)(c)
$ 1,326
$ 1,053
26 %
Vehicle Utilization
Transaction Days (in thousands)
30,621
24,648
Average Rentable Vehicles (in whole units)(c)
455,517
361,561
Number of days in period (in whole units)
90
90
Available Car Days (in thousands)
40,999
32,554
Vehicle Utilization(c)(d)
75 %
76 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net
$ (59)
$ 243
Foreign currency adjustment(a)
1
(2)
Adjusted depreciation of revenue earning vehicles and lease charges
$ (58)
$ 241
Average Vehicles (in whole units)
481,211
367,600
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$ (121)
$ 656
Number of months in period (in whole units)
3
3
Depreciation Per Unit Per Month (in whole dollars)
$ (40)
$ 219
NM
Note: Global RAC represents Americas RAC and International RAC segment information on a combined basis and excludes Corporate and the Company’s former Donlen leasing operations which were sold on March 30, 2021.
NM – Not meaningful
(a)
Based on December 31, 2021 foreign exchange rates.
(b)
Effective in the third quarter of 2021, the Company revised its calculation of Total RPD and Total RPU to include ancillary retail vehicle sales revenues.
(c)
Effective in the first quarter of 2022, the Company revised its calculation of Total RPU and Vehicle Utilization to use Average Rentable Vehicles in the denominator which excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.
(d)
Calculated as Transaction Days divided by Available Car Days.
Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
Americas RAC
Three Months Ended
March 31,
Percent Inc/(Dec)
($ in millions, except where noted)
2022
2021
Total RPD
Revenues
$ 1,558
$ 967
Foreign currency adjustment(a)
—
—
Total Revenues – adjusted for foreign currency
$ 1,558
$ 967
Transaction Days (in thousands)
25,579
20,251
Total RPD (in dollars)(b)
$ 60.90
$ 47.75
28 %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency
$ 1,558
$ 967
Average Rentable Vehicles (in whole units)(c)
373,153
296,412
Total revenue per unit (in whole dollars)
$ 4,174
$ 3,262
Number of months in period (in whole units)
3
3
Total RPU Per Month (in whole dollars)(b)(c)
$ 1,391
$ 1,087
28 %
Vehicle Utilization
Transaction Days (in thousands)
25,579
20,251
Average Rentable Vehicles (in whole units)(c)
373,153
296,412
Number of days in period (in whole units)
90
90
Available Car Days (in thousands)
33,584
26,690
Vehicle Utilization(c)(d)
76 %
76 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net
$ (93)
$ 210
Foreign currency adjustment(a)
—
—
Adjusted depreciation of revenue earning vehicles and lease charges
$ (93)
$ 210
Average Vehicles (in whole units)
397,620
300,606
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$ (234)
$ 698
Number of months in period (in whole units)
3
3
Depreciation Per Unit Per Month (in whole dollars)
$ (78)
$ 233
NM
NM – Not meaningful
(a)
Based on December 31, 2021 foreign exchange rates.
(b)
Effective in the third quarter of 2021, the Company revised its calculation of Total RPD and Total RPU to include ancillary retail vehicle sales revenues.
(c)
Effective in the first quarter of 2022, the Company revised its calculation of Total RPU and Vehicle Utilization to use Average Rentable Vehicles in the denominator which excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.
(d)
Calculated as Transaction Days divided by Available Car Days.
Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
International RAC
Three Months Ended March 31,
Percent Inc/(Dec)
($ in millions, except where noted)
2022
2021
Total RPD
Revenues
$ 252
$ 186
Foreign currency adjustment(a)
2
(10)
Total Revenues – adjusted for foreign currency
$ 254
$ 176
Transaction Days (in thousands)
5,042
4,397
Total RPD (in dollars)(b)
$ 50.43
$ 39.92
26 %
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency
$ 254
$ 176
Average Rentable Vehicles (in whole units)(c)
82,364
65,149
Total revenue per unit (in whole dollars)
$ 3,087
$ 2,694
Number of months in period (in whole units)
3
3
Total RPU Per Month (in whole dollars)(b)(c)
$ 1,029
$ 898
15 %
Vehicle Utilization
Transaction Days (in thousands)
5,042
4,397
Average Rentable Vehicles (in whole units)(c)
82,364
65,149
Number of days in period (in whole units)
90
90
Available Car Days (in thousands)
7,415
5,864
Vehicle Utilization(c)(d)
68 %
75 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net
$ 34
$ 33
Foreign currency adjustment(a)
1
(2)
Adjusted depreciation of revenue earning vehicles and lease charges
$ 35
$ 31
Average Vehicles (in whole units)
83,591
66,995
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$ 415
$ 468
Number of months in period (in whole units)
3
3
Depreciation Per Unit Per Month (in whole dollars)
$ 138
$ 156
(11) %
(a)
Based on December 31, 2021 foreign exchange rates.
(b)
Effective in the third quarter of 2021, the Company revised its calculation of Total RPD and Total RPU to include ancillary retail vehicle sales revenues.
(c)
Effective in the first quarter of 2022, the Company revised its calculation of Total RPU and Vehicle Utilization to use Average Rentable Vehicles in the denominator which excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.
(d)
Calculated as Transaction Days divided by Available Car Days.
Supplemental Schedule VI
HERTZ GLOBAL HOLDINGS, INC.
RECAST OF HISTORICAL KEY METRICS
Unaudited
Global RAC
Three Months Ended
March 31, 2021
($ in millions, except where noted)
As Reported
Adjustment
As Revised
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency(a)
$ 1,143
$ 1,143
Average Rentable Vehicles (in whole units)(c)
367,600
(6,039)
361,561
Total revenue per unit (in whole dollars)
$ 3,108
52
$ 3,160
Number of months in period (in whole units)
3
3
Total RPU Per Month (in whole dollars)(b)(c)
$ 1,036
17
$ 1,053
Vehicle Utilization
Transaction Days (in thousands)
24,648
24,648
Average Rentable Vehicles (in whole units)(c)
367,600
(6,039)
361,561
Number of days in period (in whole units)
90
90
Available Car Days (in thousands)
33,084
(530)
32,554
Vehicle Utilization(c)(d)
74 %
2 %
76 %
(a)
Based on December 31, 2021 foreign exchange rates.
(b)
Effective in the third quarter of 2021, the Company revised its calculation of Total RPU to include ancillary retail vehicle sales revenues.
(c)
Effective in the first quarter of 2022, the Company revised its calculation of Total RPU and Vehicle Utilization to use Average Rentable Vehicles in the denominator which excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.
(d)
Calculated as Transaction Days divided by Available Car Days.
Supplemental Schedule VI (continued)
HERTZ GLOBAL HOLDINGS, INC.
RECAST OF HISTORICAL KEY METRICS
Unaudited
Americas RAC
Three Months Ended
March 31, 2021
($ in millions, except where noted)
As Reported
Adjustment
As Revised
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency(a)
$ 967
$ 967
Average Rentable Vehicles (in whole units)(c)
300,606
(4,194)
296,412
Total revenue per unit (in whole dollars)
$ 3,217
45
$ 3,262
Number of months in period (in whole units)
3
3
Total RPU Per Month (in whole dollars)(b)(c)
$ 1,072
15
$ 1,087
Vehicle Utilization
Transaction Days (in thousands)
20,251
20,251
Average Rentable Vehicles (in whole units)(c)
300,606
(4,194)
296,412
Number of days in period (in whole units)
90
90
Available Car Days (in thousands)
27,055
(365)
26,690
Vehicle Utilization(c)(d)
75 %
1 %
76 %
(a)
Based on December 31, 2021 foreign exchange rates.
(b)
Effective in the third quarter of 2021, the Company revised its calculation of Total Total RPU to include ancillary retail vehicle sales revenues.
(c)
Effective in the first quarter of 2022, the Company revised its calculation of Total RPU and Vehicle Utilization to use Average Rentable Vehicles in the denominator which excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.
(d)
Calculated as Transaction Days divided by Available Car Days.
Supplemental Schedule VI (continued)
HERTZ GLOBAL HOLDINGS, INC.
RECAST OF HISTORICAL KEY METRICS
Unaudited
International RAC
Three Months Ended
March 31, 2021
($ in millions, except where noted)
As Reported
Adjustment
Revised
Total Revenue Per Unit Per Month
Total Revenues – adjusted for foreign currency(a)
$ 176
$ 176
Average Rentable Vehicles (in whole units)(c)
66,995
(1,846)
65,149
Total revenue per unit (in whole dollars)
$ 2,620
74
$ 2,694
Number of months in period (in whole units)
3
3
Total RPU Per Month (in whole dollars)(b)(c)
$ 873
25
$ 898
Vehicle Utilization
Transaction Days (in thousands)
4,397
4,397
Average Rentable Vehicles (in whole units)(c)
66,995
(1,846)
65,149
Number of days in period (in whole units)
90
90
Available Car Days (in thousands)
6,030
(166)
5,864
Vehicle Utilization(c)(d)
73 %
2 %
75 %
(a)
Based on December 31, 2021 foreign exchange rates.
(b)
Effective in the third quarter of 2021, the Company revised its calculation of Total RPU to include ancillary retail vehicle sales revenues.
(c)
Effective in the first quarter of 2022, the Company revised its calculation of Total RPU and Vehicle Utilization to use Average Rentable Vehicles in the denominator which excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.
(d)
Calculated as Transaction Days divided by Available Car Days.
NON-GAAP MEASURES AND KEY METRICS
The term "GAAP" refers to accounting principles generally accepted in the United States. Adjusted EBITDA is the Company’s segment measure of profitability and complies with GAAP when used in that context.
NON-GAAP MEASURES
Non-GAAP measures are not recognized measurements under GAAP. When evaluating the Company’s operating performance or liquidity, investors should not consider non-GAAP measures in isolation of, superior to, or as a substitute for measures of the Company’s financial performance as determined in accordance with GAAP.
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share ("Adjusted EPS")
Adjusted Net Income (Loss) represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; vehicle and non-vehicle debt-related charges; restructuring and restructuring related charges; information technology and finance transformation costs; acquisition accounting-related depreciation and amortization; reorganization items, net; pre-reorganization and non-debtor financing charges; gain from the sale of a business; change in fair value of Public Warrants; unrealized (gains) losses on financial instruments and certain other miscellaneous items on a pre-tax basis. Adjusted Net Income (Loss) includes a provision (benefit) for income taxes derived utilizing a combined statutory rate. The combined statutory rate is management’s estimate of the Company’s long-term tax rate. Its most comparable GAAP measure is net income (loss) attributable to the Company.
Adjusted EPS represents Adjusted Net Income (Loss) on a per diluted share basis using the weighted-average number of diluted shares outstanding for the period. Its most comparable GAAP measure is diluted earnings (loss) per share.
Adjusted Net Income (Loss) and Adjusted EPS are important operating metrics because they allow management and investors to assess operational performance of the Company’s business, exclusive of the items mentioned above that are not operational in nature or comparable to those of the Company’s competitors.
Adjusted Corporate EBITDA and Adjusted Corporate EBITDA Margin
Adjusted Corporate EBITDA represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; non-vehicle depreciation and amortization; non-vehicle debt interest, net; vehicle debt-related charges; restructuring and restructuring related charges; information technology and finance transformation costs; reorganization items, net; pre-reorganization and non-debtor financing charges; gain from the sale of a business; change in fair value of Public Warrants; unrealized (gains) losses on financial instruments and certain other miscellaneous items.
Adjusted Corporate EBITDA Margin is calculated as the ratio of Adjusted Corporate EBITDA to total revenues.
Management uses these measures as operating performance metrics for internal monitoring and planning purposes, including the preparation of the Company’s annual operating budget and monthly operating reviews, and analysis of investment decisions, profitability and performance trends. These measures enable management and investors to isolate the effects on profitability of operating metrics most meaningful to the business of renting and leasing vehicles. They also allow management and investors to assess the performance of the entire business on the same basis as its reportable segments. Adjusted Corporate EBITDA is also utilized in the determination of certain executive compensation. Its most comparable GAAP measure is net income (loss) attributable to the Company.
Adjusted operating cash flow and adjusted free cash flow
Adjusted operating cash flow represents net cash provided by operating activities net of the non-cash add back for vehicle depreciation and reserves, and exclusive of bankruptcy related payments made post emergence. Adjusted operating cash flow is important to management and investors as it provides useful information about the amount of cash generated from operations when fully burdened by fleet costs.
Adjusted free cash flow represents adjusted operating cash flow plus the impact of net non-vehicle capital expenditures and net fleet growth after financing. Adjusted Free Cash Flow is important to management and investors as it provides useful information about the amount of cash available for, but not limited to, the reduction of non-vehicle debt, share repurchase and acquisition.
KEY METRICS
Available Car Days
Available Car Days represents Average Rentable Vehicles multiplied by the number of days in a given period.
Average Vehicles ("Fleet Capacity" or "Capacity")
Average Vehicles is determined using a simple average of the number of vehicles in the fleet whether owned or leased by the Company at the beginning and end of a given period.
Average Rentable Vehicles
Average Rentable Vehicles reflects Average Vehicles excluding vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.
Depreciation Per Unit Per Month ("Depreciation Per Unit" or "DPU")
Depreciation Per Unit Per Month represents the amount of average depreciation expense and lease charges per vehicle per month, exclusive of the impacts of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it reflects how effectively the Company is managing the costs of its vehicles and facilitates comparisons with other participants in the vehicle rental industry.
Total Revenue Per Transaction Day ("Total RPD"or "RPD"; also referred to as "pricing")
Total RPD represents revenue generated per transaction day, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it represents a measure of changes in the underlying pricing in the vehicle rental business and encompasses the elements in vehicle rental pricing that management has the ability to control.
Historically, the Company excluded revenue generated from ancillary retail vehicles sales. Effective in the third quarter 2021, the Company revised its calculation of Total RPD to include ancillary retail vehicle sales revenues to better align with current industry practice. Prior periods shown have been restated to conform with the revised definition.
Total Revenue Per Unit Per Month ("Total RPU" or "Total RPU Per Month")
Total RPU Per Month represents the amount of revenue generated per vehicle in the rental fleet each month, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it provides a measure of revenue productivity relative to the number of vehicles in our rental fleet whether owned or leased, or asset efficiency.
Historically, the Company excluded revenue generated from ancillary retail vehicles sales. Effective in the third quarter 2021, the Company revised its calculation of Total RPU to include ancillary retail vehicle sales revenues to better align with current industry practice. Also, historically, the company used Average Vehicles as the denominator to calculate Total RPU and effective in the first quarter of 2022, the Company revised the calculation to use Average Rentable Vehicles. Prior periods shown have been restated to conform with the revised definition.
Transaction Days ("Days"; also referred to as "volume")
Transaction Days represents the total number of 24-hour periods, with any partial period counted as one Transaction Day, that vehicles were on rent (the period between when a rental contract is opened and closed) in a given period. Thus, it is possible for a vehicle to attain more than one Transaction Day in a 24-hour period. This metric is important to management and investors as it represents the number of revenue-generating days.
Vehicle Utilization ("Utilization")
Effective in the first quarter of 2022, in connection with the appointment of the new CEO (who serves as our Chief Operating Decision Maker) and arising from significantly increased activity in vehicle dispositions, we began using Average Rentable Vehicles when calculating Available Car Days, Total RPU and Utilization instead of Average Vehicles. Average Rentable Vehicles excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels. We believe this is a better measure of the productivity of our rental fleet as it is unaffected by fluctuations in disposition activity. Prior periods have been restated to conform with the revisions, as appropriate.
ESTERO, Fla., April 27, 2022 /PRNewswire/ — Hertz (NASDAQ: HTZ) today announced that Ned Ryan will join the company as chief product development officer, effective May 9. Ryan will oversee efforts to deliver connected products and technology to enhance the customer experience as Hertz assumes an increased role in the modern mobility ecosystem.
Ned Ryan, Chief Product Development Officer at Hertz
"Our ambition to lead as a mobility company rests on our commitment to invest in technology and innovation, and Ned is the ideal leader to advance our digital ambitions for the next chapter of Hertz," said Hertz CEO Stephen Scherr. "Ned has a record of innovating, having served as founder and CEO of multiple startup businesses, including two successful ventures in the mobility sector and most recently at Ford. Ned will work in close partnership with Tim Langley-Hawthorne, our chief information officer, and a growing engineering team to develop world-class technology solutions that position Hertz as a key player in the travel and auto industry."
Ryan is an entrepreneurial leader, passionate about building products and teams with a focus on mobility. In 2013, he launched Breeze, the first flexible rideshare financing platform, which was purchased by Ford in 2016. He also founded Canvas, a vehicle subscription service that was purchased by Fair.com at the end of 2019. Ryan most recently served in a senior capacity at Ford where he worked on new, digitally connected mobility businesses.
"I’m incredibly excited to join the Hertz team at an important time in the company’s history," said Ryan. "I look forward to building world-class products for our customers and partners and can’t wait to get started."
About Hertz
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit www.hertz.com.
Certain statements contained in this release include "forward-looking statements" within the meaning of applicable securities laws and regulations. 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 the Hertz’s current views with respect to future events and the timing of the tender offer. These forward-looking statements are subject to a number of risks and uncertainties including prevailing market conditions, as well as other factors. Forward-looking statements represent Hertz’s estimates and assumptions only as of the date that they were made, and, except as required by law, Hertz 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., April 25, 2022 /PRNewswire/ — Hertz (NASDAQ: HTZ) today announced a collaboration with Amazon Web Services, Inc. (AWS) to modernize and digitize the Hertz customer experience and key components of its new mobility platform including enhanced data analytics and vehicle telematics capabilities. The continued investment in cloud services is part of Hertz’s ongoing commitment to lead in electrification, shared mobility and a digital-first customer experience.
“Tapping the power of the cloud will materially increase our ability to provide better tools to our business in order to serve our global customers,” said Tim Langley-Hawthorne, EVP and CIO, Hertz. “Working with AWS, and its unparalleled experience in the automotive sector, enables Hertz to deliver a best-in-class, digitally led customer experience and accelerate our technology modernization by leveraging a robust suite of services to drive innovation and agility across the enterprise.”
“AWS is helping Hertz to develop new seamless customer experiences, leverage its electric vehicle fleet, and build and scale its global electric vehicle charging infrastructure,” said Greg Pearson, Vice President of Worldwide Commercial Sales at AWS. “By accelerating its cloud migration and adopting AWS analytics and machine learning capabilities, Hertz can unlock the power of customer and fleet data to build personalized, connected vehicle solutions that will improve the overall driver experience, maximize its existing operations, and integrate more sustainable electric vehicles and future mobility options into its operations.”
Plugging Into the Future of Mobility and Digitizing the Customer Experience
Hertz’s work with AWS will help the company create the future car rental experience that is all-digital and EV-centric. Hertz will leverage AWS to scale the technology that will support its investment in the largest electric vehicle rental fleet in North America and one of the largest in the world, including the buildout of its global charging infrastructure.
AWS technologies will also help Hertz enhance the customer experience by powering its vehicle telematics platform, which provides vehicle diagnostics data to facilitate better fleet management and support new customer products. These products will further enable a touchless car rental experience with contactless vehicle pickups and returns via the Hertz mobile app.
Additionally, Hertz will look to accelerate its cloud strategy and transition core infrastructure components from on-premises data centers to AWS. This will support its all-digital strategy and expand its use of services, including the AWS Marketplace, which will provide access to a variety of software and integrated technologies that will support many of the company’s strategic IT priorities.
About Hertz The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit www.hertz.com.
Certain statements contained in this release include “forward-looking statements” within the meaning of applicable securities laws and regulations. These statements often include words such as “believe,” “expect,” “enable,” “develop,” “anticipate,” “intend,” “plan,” “estimate,” “seek,” “will,” “may,” “would,” “should,” “could,” “forecasts” or similar expressions. These statements are based on the Hertz’s current views with respect to future events. These forward-looking statements are subject to a number of risks and uncertainties including prevailing market conditions, our ability to implement the technological initiatives described in this press release, as well as other factors described in the Risk Factor sections of our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Qs. Forward-looking statements represent Hertz’s estimates and assumptions only as of the date that they were made, and, except as required by law, Hertz undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
