HERTZ REPORTS THIRD QUARTER 2024 RESULTS
Hertz Global Holdings reported Q3 2024 results with revenue of $2.6 billion, down 5% year-over-year. The company recorded a GAAP net loss of $1.3 billion, including a non-cash asset impairment charge of $1.0 billion. Adjusted net loss was $208 million, or $0.68 loss per diluted share. Vehicle depreciation increased significantly to $937 million, with DPU at $537. The company expects fleet rotation completion by end of 2025, targeting DPU normalization under $300. Corporate liquidity stood at $1.6 billion as of September 30, 2024.
Hertz Global Holdings ha riportato i risultati del terzo trimestre 2024 con un fatturato di 2,6 miliardi di dollari, in calo del 5% rispetto all'anno precedente. L'azienda ha registrato una perdita netta GAAP di 1,3 miliardi di dollari, inclusa una carica di svalutazione degli asset non monetaria di 1,0 miliardo di dollari. La perdita netta rettificata è stata di 208 milioni di dollari, pari a una perdita di 0,68 dollari per azione diluita. L'ammortamento dei veicoli è aumentato significativamente a 937 milioni di dollari, con un DPU di 537. L'azienda prevede di completare il ricambio della flotta entro la fine del 2025, puntando a una normalizzazione del DPU sotto i 300 dollari. La liquidità aziendale ammontava a 1,6 miliardi di dollari al 30 settembre 2024.
Hertz Global Holdings reportó resultados del tercer trimestre de 2024 con ingresos de 2.6 mil millones de dólares, lo que representa una caída del 5% en comparación con el año anterior. La compañía registró una pérdida neta GAAP de 1.3 mil millones de dólares, incluyendo un cargo por deterioro de activos no monetarios de 1.0 mil millones de dólares. La pérdida neta ajustada fue de 208 millones de dólares, o una pérdida de 0.68 dólares por acción diluida. La depreciación de vehículos aumentó significativamente a 937 millones de dólares, con un DPU de 537. La compañía espera completar la rotación de la flota para finales de 2025, con el objetivo de normalizar el DPU por debajo de 300 dólares. La liquidez corporativa se situó en 1.6 mil millones de dólares al 30 de septiembre de 2024.
허츠 글로벌 홀딩스는 2024년 3분기 실적을 보고하며 매출이 26억 달러로 전년 대비 5% 감소했다고 발표했습니다. 이 회사는 13억 달러의 GAAP 순손실을 기록했으며, 여기에는 10억 달러의 비현금 자산 손상 차감이 포함됩니다. 조정된 순손실은 2억 8천만 달러로, 희석 주당 손실은 0.68달러입니다. 차량 감가상각은 9억 3천7백만 달러로 크게 증가했으며, DPU는 537입니다. 이 회사는 2025년 말까지 플릿 교체를 완료할 것으로 예상하며, DPU 정상화를 300달러 이하로 목표하고 있습니다. 2024년 9월 30일 기준으로 기업 유동성은 16억 달러에 달했습니다.
Hertz Global Holdings a publié des résultats pour le troisième trimestre 2024 avec des revenus de 2,6 milliards de dollars, en baisse de 5 % par rapport à l'année précédente. L'entreprise a enregistré une perte nette GAAP de 1,3 milliard de dollars, incluant une charge d'amortissement d'actifs non monétaires de 1,0 milliard de dollars. La perte nette ajustée s'élevait à 208 millions de dollars, soit une perte de 0,68 dollar par action diluée. L'amortissement des véhicules a considérablement augmenté à 937 millions de dollars, avec un DPU de 537. L'entreprise s'attend à terminer la rotation de sa flotte d'ici la fin de 2025, visant une normalisation du DPU en dessous de 300 dollars. La liquidité de l'entreprise s'élevait à 1,6 milliard de dollars au 30 septembre 2024.
Hertz Global Holdings hat die Ergebnisse des dritten Quartals 2024 veröffentlicht, mit einem Umsatz von 2,6 Milliarden Dollar, was einem Rückgang von 5 % im Jahresvergleich entspricht. Das Unternehmen verzeichnete einen GAAP-Nettoverlust von 1,3 Milliarden Dollar, einschließlich einer nicht zahlungswirksamen Wertminderung von 1,0 Milliarden Dollar. Der bereinigte Nettoverlust betrug 208 Millionen Dollar, oder einen Verlust von 0,68 Dollar pro verwässerter Aktie. Die Fahrzeugabschreibung stieg erheblich auf 937 Millionen Dollar, mit einem DPU von 537. Das Unternehmen erwartet, die Flottenrotation bis Ende 2025 abzuschließen, mit dem Ziel, den DPU unter 300 Dollar zu normalisieren. Die Unternehmensliquidität belief sich zum 30. September 2024 auf 1,6 Milliarden Dollar.
- Corporate liquidity remains strong at $1.6 billion
- Expected DPU normalization to under $300 by end of 2025
- Operating cash flow of $894 million in Q3 2024
- Revenue declined 5% to $2.6 billion
- GAAP net loss of $1.3 billion with negative 52% margin
- $1.0 billion non-cash asset impairment charge
- Vehicle depreciation increased 89% to $537 per unit per month
- Transaction days decreased 4% year-over-year
- Adjusted Corporate EBITDA turned negative at -$157 million
Insights
The Q3 results reveal significant challenges at Hertz, with a concerning
The negative
The
The shift toward premium RPD business shows strategic intent, but the
"In the third quarter, we continued executing on our efforts to implement our transformation, focusing on our back-to-basics strategy to deliver sustainable, long-term returns for shareholders," said Gil West, Hertz CEO. "Our team's commitment to both our customers and our strategic objectives were evident throughout the summer. This dedication is reflective of our ongoing endeavors to improve operational performance and reposition the Company to achieve against its value proposition. There is still work to be done, but I am confident that the enhancements achieved over the course of this quarter demonstrate that we are on the right track."
OVERVIEW
- Revenue of
$2.6 billion - GAAP net loss of
, a negative$1.3 billion 52% margin, or loss per diluted share. Results include a non-cash asset impairment charge of$4.34 $1.0 billion - Adjusted net loss of
, or$208 million loss per diluted share$0.68 - Adjusted Corporate EBITDA of negative
, a negative$157 million 6% margin, due mainly to an increase in vehicle depreciation of$436 million - GAAP operating cash flow of
; Adjusted operating cash outflow of$894 million and adjusted free cash outflow of$132 million $154 million - Corporate liquidity of
at September 30, 2024$1.6 billion
THIRD QUARTER RESULTS
The Company recorded a
Third quarter revenue was
Vehicle depreciation of
Direct vehicle and operating expense decreased primarily due to lower volume, partially offset by insurance and vehicle licensing and tax headwinds. DOE on a per transaction day basis in the third quarter of 2024 increased by
Adjusted Corporate EBITDA was negative
The Company's operational transformation is ongoing and is expected to be substantially completed by the end of 2025.
SUMMARY RESULTS
Three Months Ended September 30, | Percent 2024 vs 2023 | ||||
($ in millions, except earnings per share or where noted) | 2024 | 2023 | |||
Hertz Global - Consolidated | |||||
Total revenues | $ 2,576 | $ 2,703 | (5) % | ||
Net income (loss) | $ (1,332) | $ 629 | NM | ||
Net income (loss) margin | (52) % | 23 % | |||
Adjusted net income (loss)(a) | $ (208) | $ 230 | NM | ||
Adjusted diluted earnings (loss) per share(a) | $ (0.68) | $ 0.70 | NM | ||
Adjusted Corporate EBITDA(a) | $ (157) | $ 359 | NM | ||
Adjusted Corporate EBITDA Margin(a) | (6) % | 13 % | |||
Average Vehicles (in whole units) | 583,516 | 590,489 | (1) % | ||
Average Rentable Vehicles (in whole units) | 550,074 | 562,267 | (2) % | ||
Vehicle Utilization | 82 % | 83 % | |||
Transaction Days (in thousands) | 41,298 | 43,095 | (4) % | ||
Total RPD (in dollars)(b) | $ 62.63 | $ 63.04 | (1) % | ||
Total RPU Per Month (in whole dollars)(b) | $ 1,567 | $ 1,610 | (3) % | ||
Depreciation Per Unit Per Month (in whole dollars)(b) | $ 537 | $ 284 | 89 % | ||
Americas RAC Segment | |||||
Total revenues | $ 2,062 | $ 2,172 | (5) % | ||
Adjusted EBITDA | $ (169) | $ 302 | NM | ||
Adjusted EBITDA Margin | (8) % | 14 % | |||
Average Vehicles (in whole units) | 463,467 | 467,916 | (1) % | ||
Average Rentable Vehicles (in whole units) | 432,608 | 442,353 | (2) % | ||
Vehicle Utilization | 82 % | 84 % | |||
Transaction Days (in thousands) | 32,693 | 34,278 | (5) % | ||
Total RPD (in dollars)(b) | $ 63.20 | $ 63.45 | — % | ||
Total RPU Per Month (in whole dollars)(b) | $ 1,592 | $ 1,638 | (3) % | ||
Depreciation Per Unit Per Month (in whole dollars)(b) | $ 592 | $ 295 | 100 % | ||
International RAC Segment | |||||
Total revenues | $ 514 | $ 531 | (3) % | ||
Adjusted EBITDA | $ 63 | $ 109 | (42) % | ||
Adjusted EBITDA Margin | 12 % | 21 % | |||
Average Vehicles (in whole units) | 120,049 | 122,572 | (2) % | ||
Average Rentable Vehicles (in whole units) | 117,466 | 119,914 | (2) % | ||
Vehicle Utilization | 80 % | 80 % | |||
Transaction Days (in thousands) | 8,605 | 8,817 | (2) % | ||
Total RPD (in dollars)(b) | $ 60.45 | $ 61.47 | (2) % | ||
Total RPU Per Month (in whole dollars)(b) | $ 1,476 | $ 1,507 | (2) % | ||
Depreciation Per Unit Per Month (in whole dollars)(b) | $ 324 | $ 240 | 35 % |
NM - Not meaningful | |
(a) | Represents a non-GAAP measure. See the accompanying reconciliations included in Supplemental Schedule II for 2024 and 2023. |
(b) | Based on December 31, 2023 foreign exchange rates. |
EARNINGS WEBCAST INFORMATION
Hertz Global's live webcast and conference call to discuss its third quarter 2024 results will be held on November 12, 2024, at 9:00 a.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 access the call by phone and ask a question, please go to Hertz Q3 2024 earnings participant call link, and you will be provided with dial in details. Investors are encouraged to dial-in approximately 15 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
In this earnings release, we include select unaudited financial data of Hertz Global, Supplemental Schedules, which are provided to present segment results, and reconciliations of non-GAAP measures to their most comparable GAAP measures. Following the Supplemental Schedules, the Company provides definitions for terminology used throughout the earnings release and its rationale on the importance and usefulness of non-GAAP measures for investors and management.
ABOUT HERTZ
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained or incorporated by reference in this release, and in related comments by the Company's management, include "forward-looking statements." Forward-looking statements are identified by words such as "believe," "expect," "project," "potential," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts," "guidance" or similar expressions, and include information concerning our liquidity, our results of operations, our business strategies, the business environment and other information. These forward-looking 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. The Company believes these judgments are reasonable, but you should understand that these forward-looking statements are not guarantees of future 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, such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 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:
- mix of program and non-program vehicles in the Company's fleet, which can lead to increased exposure to residual value risk upon disposition;
- the potential for residual values associated with non-program vehicles in the Company's fleet to decline, including suddenly or unexpectedly, or fail to follow historical seasonal patterns;
- the Company's ability to purchase adequate supplies of competitively priced vehicles at a reasonable cost in order to efficiently service rental demand, including upon any disruptions in the global supply chain;
- the Company's ability to effectively dispose of vehicles, at the times and through the channels, that maximize the Company's returns;
- the timing of the Company's fleet rotation, the performance of its long-lived assets and changes in market conditions, which could result in future impairments of its long-lived assets;
- the age of the Company's fleet, and its impact on vehicle carrying costs, customer service scores, as well as on the Company's ability to sell vehicles at acceptable prices and times;
- whether a manufacturer of the Company's program vehicle fulfills its repurchase obligations;
- the frequency or extent of manufacturer safety recalls;
- levels of travel demand, particularly business and leisure travel in the
U.S. and in global markets; - seasonality and other occurrences that disrupt rental activity during the Company's peak periods, including in critical geographies;
- the Company's ability to accurately estimate future levels of rental activity and adjust the number, location and mix of vehicles used in the Company's rental operations accordingly;
- the Company's ability to implement its business strategy or strategic transactions, including the Company's ability to implement plans to support an electric vehicle fleet and to play a central role in the modern mobility ecosystem;
- the Company's ability to achieve cost savings and normalized depreciation levels, as well as revenue enhancements from its profitability initiatives and other operational programs;
- the Company's ability to adequately respond to changes in technology impacting the mobility industry;
- significant changes in the competitive environment and the effect of competition in the Company's markets on rental volume and pricing;
- the Company's reliance on third-party distribution channels and related prices, commission structures and transaction volumes;
- the Company's ability to offer services for a favorable customer experience, and to retain and develop customer loyalty and market share;
- the Company's ability to maintain its network of leases and vehicle rental concessions at airports and other key locations in the
U.S. and internationally; - the Company's ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy;
- the Company's ability to attract and retain effective frontline employees, senior management and other key employees;
- the Company's ability to effectively manage its union relations and labor agreement negotiations;
- the Company's ability to manage and respond to cybersecurity threats and cyber attacks on the Company's information technology systems, or those of the Company's third-party providers;
- the Company's ability, and that of the Company's key third-party partners, to prevent the misuse or theft of information the Company possesses, including as a result of cyber attacks and other security threats;
- the Company's ability to maintain, upgrade and consolidate its information technology systems;
- the Company's ability to comply with current and future laws and regulations in the
U.S. and internationally regarding data protection, data security and privacy risks; - 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; - risks relating to tax laws, including those that affect the Company's ability to recapture accelerated tax depreciation and expensing, as well as any adverse determinations or rulings by tax authorities;
- the Company's ability to utilize its net operating loss carryforwards;
- the Company's exposure to uninsured liabilities relating to personal injury, death and property damage, or otherwise, including material litigation;
- the potential for adverse changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, including those related to environmental matters, optional insurance products or policies, franchising and licensing matters, the ability to pass-through rental car related expenses, or taxes, among others, that affect the Company's operations, the Company's costs or applicable tax rates;
- the Company's ability to recover its goodwill and indefinite-lived intangible assets when performing impairment analysis;
- the potential for changes in management's best estimates and assessments;
- the Company's ability to maintain an effective compliance program;
- the availability of earnings and funds from the Company's subsidiaries;
- the Company's ability to comply, and the cost and burden of complying, with environmental, social and governance, or ESG, regulations or expectations of stakeholders, and otherwise achieve the Company's corporate responsibility goals;
- the availability of additional or continued sources of financing at acceptable rates for the Company's revenue earning vehicles and to refinance the Company's existing indebtedness, and the Company's ability to comply with the covenants in the agreements governing its indebtedness;
- the extent to which the Company's consolidated assets secure its outstanding indebtedness;
- volatility in the Company's share price, the Company's ownership structure and certain provisions of the Company's charter documents, which could negatively affect the market price of the Company's common stock;
- the Company's ability to implement an effective business continuity plan to protect the business in exigent circumstances;
- the Company's ability to effectively maintain effective internal control over financial reporting; and
- the Company's ability to execute strategic transactions.
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 September 30, | Nine Months Ended September 30, | ||||||
(In millions, except per share data) | 2024 | 2023 | 2024 | 2023 | |||
Revenues | $ 2,576 | $ 2,703 | $ 7,009 | $ 7,187 | |||
Expenses: | |||||||
Direct vehicle and operating | 1,470 | 1,499 | 4,276 | 4,067 | |||
Depreciation of revenue earning vehicles and lease charges, net | 937 | 501 | 2,941 | 1,211 | |||
Depreciation and amortization of non-vehicle assets | 34 | 33 | 107 | 100 | |||
Selling, general and administrative | 189 | 209 | 594 | 715 | |||
Interest expense, net: | |||||||
Vehicle | 157 | 162 | 447 | 405 | |||
Non-vehicle | 89 | 63 | 252 | 170 | |||
Total interest expense, net | 246 | 225 | 699 | 575 | |||
Other (income) expense, net | 5 | 5 | 2 | 12 | |||
(Gain) on sale of non-vehicle capital assets | — | — | — | (162) | |||
Bankruptcy-related litigation reserve | 288 | — | 288 | — | |||
Long-Lived Assets impairment | 1,048 | — | 1,048 | — | |||
Change in fair value of Public Warrants | (21) | (328) | (272) | (110) | |||
Total expenses | 4,196 | 2,144 | 9,683 | 6,408 | |||
Income (loss) before income taxes | (1,620) | 559 | (2,674) | 779 | |||
Income tax (provision) benefit | 288 | 70 | 291 | 185 | |||
Net income (loss) | $ (1,332) | $ 629 | $ (2,383) | $ 964 | |||
Weighted average number of shares outstanding: | |||||||
Basic | 307 | 311 | 306 | 315 | |||
Diluted | 307 | 327 | 306 | 332 | |||
Earnings (loss) per share: | |||||||
Basic | $ (4.34) | $ 2.02 | $ (7.79) | $ 3.06 | |||
Diluted | $ (4.34) | $ 0.92 | $ (7.79) | $ 2.57 |
UNAUDITED CONSOLIDATED BALANCE SHEETS | |||
(In millions, except par value and share data) | September 30, | December 31, | |
ASSETS | |||
Cash and cash equivalents | $ 501 | $ 764 | |
Restricted cash and cash equivalents: | |||
Vehicle | 116 | 152 | |
Non-vehicle | 288 | 290 | |
Total restricted cash and cash equivalents | 404 | 442 | |
Total cash and cash equivalents and restricted cash and cash equivalents | 905 | 1,206 | |
Receivables: | |||
Vehicle | 406 | 211 | |
Non-vehicle, net of allowance of | 934 | 980 | |
Total receivables, net | 1,340 | 1,191 | |
Prepaid expenses and other assets | 927 | 726 | |
Revenue earning vehicles: | |||
Vehicles | 13,543 | 16,806 | |
Less: accumulated depreciation | (308) | (2,155) | |
Total revenue earning vehicles, net | 13,235 | 14,651 | |
Property and equipment, net | 639 | 671 | |
Operating lease right-of-use assets | 2,033 | 2,253 | |
Intangible assets, net | 2,856 | 2,863 | |
Goodwill | 1,044 | 1,044 | |
Total assets | $ 22,979 | $ 24,605 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable: | |||
Vehicle | $ 131 | $ 191 | |
Non-vehicle | 493 | 510 | |
Total accounts payable | 624 | 701 | |
Accrued liabilities | 1,176 | 860 | |
Accrued taxes, net | 222 | 157 | |
Debt: | |||
Vehicle | 12,303 | 12,242 | |
Non-vehicle | 4,653 | 3,449 | |
Total debt | 16,956 | 15,691 | |
Public Warrants | 181 | 453 | |
Operating lease liabilities | 2,021 | 2,142 | |
Self-insured liabilities | 559 | 471 | |
Deferred income taxes, net | 559 | 1,038 | |
Total liabilities | 22,298 | 21,513 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock, | — | — | |
Common stock, | 5 | 5 | |
Treasury stock, at cost, 174,812,044 and 174,812,044 common shares, respectively | (3,430) | (3,430) | |
Additional paid-in capital | 6,380 | 6,405 | |
Retained earnings (Accumulated deficit) | (2,023) | 360 | |
Accumulated other comprehensive income (loss) | (251) | (248) | |
Total stockholders' equity | 681 | 3,092 | |
Total liabilities and stockholders' equity | $ 22,979 | $ 24,605 |
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(In millions) | 2024 | 2023 | 2024 | 2023 | |||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (1,332) | $ 629 | $ (2,383) | $ 964 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) | |||||||
Depreciation and reserves for revenue earning vehicles, net | 1,025 | 606 | 3,219 | 1,490 | |||
Depreciation and amortization, non-vehicle | 34 | 33 | 107 | 100 | |||
Amortization of deferred financing costs and debt discount (premium) | 21 | 15 | 54 | 44 | |||
Stock-based compensation charges | 16 | 22 | 48 | 65 | |||
Stock-based compensation forfeitures | — | — | (68) | — | |||
Provision for receivables allowance | 31 | 27 | 94 | 67 | |||
Deferred income taxes, net | (314) | (73) | (379) | (236) | |||
Long-Lived Assets impairment | 1,048 | — | 1,048 | — | |||
(Gain) loss on sale of non-vehicle capital assets | 1 | — | 4 | (165) | |||
Change in fair value of Public Warrants | (21) | (328) | (272) | (110) | |||
Changes in financial instruments | (16) | 1 | (8) | 107 | |||
Other | (1) | 4 | (5) | 9 | |||
Changes in assets and liabilities: | |||||||
Non-vehicle receivables | 156 | (49) | (45) | (383) | |||
Prepaid expenses and other assets | 39 | 3 | (20) | (95) | |||
Operating lease right-of-use assets | 91 | 88 | 281 | 253 | |||
Non-vehicle accounts payable | (81) | 21 | (18) | 27 | |||
Accrued liabilities | 239 | (65) | 310 | 3 | |||
Accrued taxes, net | 12 | (11) | 64 | 45 | |||
Operating lease liabilities | (108) | (97) | (308) | (275) | |||
Self-insured liabilities | 54 | 25 | 87 | — | |||
Net cash provided by (used in) operating activities | 894 | 851 | 1,810 | 1,910 | |||
Cash flows from investing activities: | |||||||
Revenue earning vehicles expenditures | (2,231) | (1,769) | (7,858) | (8,312) | |||
Proceeds from disposal of revenue earning vehicles | 1,754 | 1,412 | 4,656 | 4,178 | |||
Non-vehicle capital asset expenditures | (22) | (28) | (81) | (151) | |||
Proceeds from non-vehicle capital assets disposed of | 12 | 2 | 19 | 178 | |||
Return of (investment in) equity investments | — | — | (3) | (1) | |||
Net cash provided by (used in) investing activities | (487) | (383) | (3,267) | (4,108) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of vehicle debt | 1,576 | 1,720 | 3,259 | 5,741 | |||
Repayments of vehicle debt | (2,159) | (1,867) | (3,280) | (3,739) | |||
Proceeds from issuance of non-vehicle debt | 585 | 400 | 3,470 | 1,650 | |||
Repayments of non-vehicle debt | (499) | (754) | (2,234) | (1,513) | |||
Payment of financing costs | (13) | (14) | (55) | (31) | |||
Share repurchases | — | (50) | — | (272) | |||
Other | (1) | (3) | (4) | (3) | |||
Net cash provided by (used in) financing activities | (511) | (568) | 1,156 | 1,833 | |||
Effect of foreign currency exchange rate changes on cash and cash | 15 | (10) | — | 3 | |||
Net increase (decrease) in cash and cash equivalents and restricted cash and | (89) | (110) | (301) | (362) | |||
Cash and cash equivalents and restricted cash and cash equivalents at | 994 | 1,166 | 1,206 | 1,418 | |||
Cash and cash equivalents and restricted cash and cash equivalents at end of | $ 905 | $ 1,056 | $ 905 | $ 1,056 |
Supplemental Schedule I | |||||||||||||||
HERTZ GLOBAL HOLDINGS, INC. | |||||||||||||||
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT | |||||||||||||||
Unaudited | |||||||||||||||
Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | ||||||||||||||
(In millions) |
| International | Corporate | Hertz Global |
| International | Corporate | Hertz Global | |||||||
Revenues | $ 2,062 | $ 514 | $ — | $ 2,576 | $ 2,172 | $ 531 | $ — | $ 2,703 | |||||||
Expenses: | |||||||||||||||
Direct vehicle and operating | 1,202 | 271 | (3) | 1,470 | 1,241 | 258 | — | 1,499 | |||||||
Depreciation of revenue earning vehicles and lease | 822 | 115 | — | 937 | 414 | 87 | — | 501 | |||||||
Depreciation and amortization of non-vehicle assets | 28 | 3 | 3 | 34 | 27 | 3 | 3 | 33 | |||||||
Selling, general and administrative | 113 | 57 | 19 | 189 | 114 | 40 | 55 | 209 | |||||||
Interest expense, net: | |||||||||||||||
Vehicle | 124 | 33 | — | 157 | 132 | 30 | — | 162 | |||||||
Non-vehicle | (1) | (4) | 94 | 89 | (4) | — | 67 | 63 | |||||||
Total interest expense, net | 123 | 29 | 94 | 246 | 128 | 30 | 67 | 225 | |||||||
Other (income) expense, net | 2 | 1 | 2 | 5 | 1 | — | 4 | 5 | |||||||
Bankruptcy-related litigation reserve | — | — | 288 | 288 | — | — | — | — | |||||||
Long-Lived Assets impairment | 865 | 183 | — | 1,048 | — | — | — | — | |||||||
Change in fair value of Public Warrants | — | — | (21) | (21) | — | — | (328) | (328) | |||||||
Total expenses | 3,155 | 659 | 382 | 4,196 | 1,925 | 418 | (199) | 2,144 | |||||||
Income (loss) before income taxes | $ (1,093) | $ (145) | $ (382) | $ (1,620) | $ 247 | $ 113 | $ 199 | 559 | |||||||
Income tax (provision) benefit | 288 | 70 | |||||||||||||
Net income (loss) | $ (1,332) | $ 629 |
Supplemental Schedule I (continued) | |||||||||||||||
HERTZ GLOBAL HOLDINGS, INC. | |||||||||||||||
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT | |||||||||||||||
Unaudited | |||||||||||||||
Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | ||||||||||||||
(In millions) |
| International | Corporate | Hertz Global |
| International | Corporate | Hertz Global | |||||||
Revenues | $ 5,729 | $ 1,280 | $ — | $ 7,009 | $ 5,917 | $ 1,270 | $ — | $ 7,187 | |||||||
Expenses: | |||||||||||||||
Direct vehicle and operating | 3,553 | 731 | (8) | 4,276 | 3,419 | 651 | (3) | 4,067 | |||||||
Depreciation of revenue earning vehicles and lease | 2,603 | 338 | — | 2,941 | 1,035 | 176 | — | 1,211 | |||||||
Depreciation and amortization of non-vehicle assets | 81 | 10 | 16 | 107 | 82 | 8 | 10 | 100 | |||||||
Selling, general and administrative | 374 | 160 | 60 | 594 | 367 | 122 | 226 | 715 | |||||||
Interest expense, net: | |||||||||||||||
Vehicle | 363 | 84 | — | 447 | 338 | 67 | — | 405 | |||||||
Non-vehicle | (3) | (14) | 269 | 252 | (26) | (7) | 203 | 170 | |||||||
Total interest expense, net | 360 | 70 | 269 | 699 | 312 | 60 | 203 | 575 | |||||||
Other (income) expense, net | 2 | 2 | (2) | 2 | — | 2 | 10 | 12 | |||||||
(Gain) on sale of non-vehicle capital assets | — | — | — | — | (162) | — | — | (162) | |||||||
Bankruptcy-related litigation reserve | — | — | 288 | 288 | — | — | — | — | |||||||
Long-Lived Assets impairment | 865 | 183 | — | 1,048 | — | — | — | — | |||||||
Change in fair value of Public Warrants | — | — | (272) | (272) | — | — | (110) | (110) | |||||||
Total expenses | 7,838 | 1,494 | 351 | 9,683 | 5,053 | 1,019 | 336 | 6,408 | |||||||
Income (loss) before income taxes | $ (2,109) | $ (214) | $ (351) | (2,674) | $ 864 | $ 251 | $ (336) | 779 | |||||||
Income tax (provision) benefit | 291 | 185 | |||||||||||||
Net income (loss) | $ (2,383) | $ 964 |
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 | |||||||
Unaudited | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(In millions, except per share data) | 2024 | 2023 | 2024 | 2023 | |||
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share: | |||||||
Net income (loss)(a) | $ (1,332) | $ 629 | $ (2,383) | $ 964 | |||
Adjustments: | |||||||
Income tax provision (benefit) | (288) | (70) | (291) | (185) | |||
Vehicle and non-vehicle debt-related charges(b) | 26 | 16 | 60 | 45 | |||
Restructuring and restructuring related charges(c) | 1 | 2 | 45 | 10 | |||
Acquisition accounting-related depreciation and amortization(d) | — | — | 1 | 1 | |||
Unrealized (gains) losses on financial instruments(e) | (16) | 1 | (8) | 107 | |||
(Gain) on sale of non-vehicle capital assets(f) | — | — | — | (162) | |||
Bankruptcy-related litigation reserve(g) | 288 | — | 288 | — | |||
Long-Lived Assets impairment(h) | 1,048 | — | 1,048 | — | |||
Change in fair value of Public Warrants | (21) | (328) | (272) | (110) | |||
Other items(i)(m) | 18 | 20 | 46 | 24 | |||
Adjusted pre-tax income (loss)(j) | (276) | 270 | (1,466) | 694 | |||
Income tax (provision) benefit on adjusted pre-tax income (loss)(k) | 68 | (40) | 366 | (104) | |||
Adjusted Net Income (Loss) | $ (208) | $ 230 | $ (1,100) | $ 590 | |||
Weighted-average number of diluted shares outstanding | 307 | 327 | 306 | 332 | |||
Adjusted Diluted Earnings (Loss) Per Share(l) | $ (0.68) | $ 0.70 | $ (3.59) | $ 1.78 |
Supplemental Schedule II (continued) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(In millions, except per share data) | 2024 | 2023 | 2024 | 2023 | |||
Adjusted Corporate EBITDA: | |||||||
Net income (loss) | $ (1,332) | $ 629 | $ (2,383) | $ 964 | |||
Adjustments: | |||||||
Income tax provision (benefit) | (288) | (70) | (291) | (185) | |||
Non-vehicle depreciation and amortization | 34 | 33 | 107 | 100 | |||
Non-vehicle debt interest, net of interest income | 103 | 63 | 266 | 170 | |||
Vehicle debt-related charges(b) | 11 | 11 | 33 | 31 | |||
Restructuring and restructuring related charges(c) | 1 | 2 | 45 | 10 | |||
Unrealized (gains) losses on financial instruments(e) | (16) | 1 | (8) | 107 | |||
(Gain) on sale of non-vehicle capital assets(f) | — | — | — | (162) | |||
Non-cash stock-based compensation forfeitures(n) | — | — | (64) | — | |||
Bankruptcy-related litigation reserve(g) | 288 | — | 288 | — | |||
Long-Lived Assets impairment(h) | 1,048 | — | 1,048 | — | |||
Change in fair value of Public Warrants | (21) | (328) | (272) | (110) | |||
Other items(i) | 15 | 18 | 47 | 18 | |||
Adjusted Corporate EBITDA(o) | $ (157) | $ 359 | $ (1,184) | $ 943 | |||
Adjusted Corporate EBITDA margin | (6) % | 13 % | (17) % | 13 % |
(a) | Net income (loss) margin for the three and nine months ended September 30, 2024 was (52)% and (34)%, respectively. Net income (loss) margin for the three and nine months ended September 30, 2023 was |
(b) | Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums, including interest associated with the Exchangeable Notes issued in June 2024. |
(c) | Represents charges incurred under restructuring actions as defined in |
(d) | Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting. |
(e) | Represents unrealized gains (losses) on derivative financial instruments. In 2023, also includes the realization of |
(f) | Represents gain on the sale of certain non-vehicle capital assets sold in March 2023. |
(g) | Represents an increase to an existing bankruptcy-related litigation reserve recorded in September 2024. |
(h) | Represents impairment charges recorded against the Fleet Long-Lived Assets in the third quarter of 2024. |
(i) | Represents miscellaneous items. For the three and nine months ended September 30, 2024, primarily includes certain IT-related charges, cloud computing costs and certain storm-related vehicle damages, partially offset by certain litigation settlements and a loss recovery settlement. For the three and nine months ended September 30, 2023, primarily includes certain IT related charges, certain storm-related vehicle damages and certain professional fees and charges related to the settlement of bankruptcy claims, partially offset by a loss recovery settlement. |
(j) | The tables below reconcile expenses as reported in the condensed consolidated unaudited statement of operations to adjusted expenses utilized in calculating Adjusted Pretax Income (Loss) and Adjusted Net Income (Loss), all of which are deemed non-GAAP measures. |
(in millions) | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||||||
Expenses: | As Reported | Adjustment | As Adjusted | As Reported | Adjustment | As Adjusted | |||||
Direct vehicle and operating | $ 1,470 | $ (7) | $ 1,463 | $ 1,499 | $ (17) | $ 1,482 | |||||
Depreciation of revenue earning vehicles and lease charges, net | 937 | — | 937 | 501 | 3 | 504 | |||||
Depreciation and amortization of non-vehicle assets | 34 | — | 34 | 33 | — | 33 | |||||
Selling, general and administrative | 189 | 1 | 190 | 209 | 2 | 211 | |||||
Interest expense, net: | |||||||||||
Vehicle | 157 | (14) | 143 | 162 | (19) | 143 | |||||
Non-vehicle | 89 | (5) | 84 | 63 | (8) | 55 | |||||
Total interest expense, net | 246 | (19) | 227 | 225 | (27) | 198 | |||||
Other income (expense), net | 5 | (3) | 2 | 5 | — | 5 | |||||
Bankruptcy-related litigation reserve | 288 | (288) | — | — | — | — | |||||
Long-Lived Assets impairment | 1,048 | (1,048) | — | — | — | — | |||||
Change in fair value of Public Warrants | (21) | 21 | — | (328) | 328 | — | |||||
Total | $ 4,196 | $ (1,343) | $ 2,853 | $ 2,144 | $ 289 | $ 2,433 | |||||
(in millions) | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | |||||||||
Expenses: | As Reported | Adjustment | As Adjusted | As Reported | Adjustment | As Adjusted | |||||
Direct vehicle and operating | $ 4,276 | $ (23) | $ 4,253 | $ 4,067 | $ — | $ 4,067 | |||||
Depreciation of revenue earning vehicles and lease charges, net | 2,941 | 5 | 2,946 | 1,211 | 5 | 1,216 | |||||
Depreciation and amortization of non-vehicle assets | 107 | — | 107 | 100 | — | 100 | |||||
Selling, general and administrative | 594 | (54) | 540 | 715 | (25) | 690 | |||||
Interest expense, net: | |||||||||||
Vehicle | 447 | (40) | 407 | 405 | (141) | 264 | |||||
Non-vehicle | 252 | (25) | 227 | 170 | (25) | 145 | |||||
Total interest expense, net | 699 | (65) | 634 | 575 | (166) | 409 | |||||
Other income (expense), net | 2 | (6) | (4) | 12 | (1) | 11 | |||||
Gain on sale non-vehicle capital assets | — | — | — | (162) | 162 | — | |||||
Bankruptcy-related litigation reserve | 288 | (288) | — | — | — | — | |||||
Long-Lived Assets impairment | 1,048 | (1,048) | — | — | — | — | |||||
Change in fair value of Public Warrants | (272) | 272 | — | (110) | 110 | — | |||||
Total | $ 9,683 | $ (1,207) | $ 8,476 | $ 6,408 | $ 85 | $ 6,493 |
(k) | Derived utilizing a combined statutory rate of |
(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) | Also includes letter of credit fees. |
(n) | Represents former CEO awards forfeited in March 2024. |
Supplemental Schedule II (continued) | |
(o) | The tables below reconcile expenses as reported in the condensed consolidated unaudited statement of operations to adjusted expenses utilized in calculating Adjusted Corporate EBITDA, both of which are deemed non-GAAP measures. |
(in millions) | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||||||
Expenses: | As Reported | Adjustment | As Adjusted | As Reported | Adjustment | As Adjusted | |||||
Direct vehicle and operating | $ 1,470 | $ (7) | $ 1,463 | $ 1,499 | $ (17) | $ 1,482 | |||||
Depreciation of revenue earning vehicles and lease charges, net | 937 | — | 937 | 501 | 3 | 504 | |||||
Depreciation and amortization of non-vehicle assets | 34 | (34) | — | 33 | (33) | — | |||||
Selling, general and administrative | 189 | 1 | 190 | 209 | 2 | 211 | |||||
Interest expense, net: | |||||||||||
Vehicle | 157 | (14) | 143 | 162 | (19) | 143 | |||||
Non-vehicle | 89 | (89) | — | 63 | (63) | — | |||||
Total interest expense, net | 246 | (103) | 143 | 225 | (82) | 143 | |||||
Other income (expense), net | 5 | (5) | — | 5 | (1) | 4 | |||||
Bankruptcy-related litigation reserve | 288 | (288) | — | — | — | — | |||||
Long-Lived Assets impairment | 1,048 | (1,048) | — | — | — | — | |||||
Change in fair value of Public Warrants | (21) | 21 | — | (328) | 328 | — | |||||
Total expenses | $ 4,196 | $ (1,463) | $ 2,733 | $ 2,144 | $ 200 | $ 2,344 | |||||
(in millions) | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | |||||||||
Expenses: | As Reported | Adjustment | As Adjusted | As Reported | Adjustment | As Adjusted | |||||
Direct vehicle and operating | $ 4,276 | $ (23) | $ 4,253 | $ 4,067 | $ — | $ 4,067 | |||||
Depreciation of revenue earning vehicles and lease charges, net | 2,941 | 5 | 2,946 | 1,211 | 5 | 1,216 | |||||
Depreciation and amortization of non-vehicle assets | 107 | (107) | — | 100 | (100) | — | |||||
Selling, general and administrative | 594 | 9 | 603 | 715 | (25) | 690 | |||||
Interest expense, net: | |||||||||||
Vehicle | 447 | (40) | 407 | 405 | (141) | 264 | |||||
Non-vehicle | 252 | (252) | — | 170 | (170) | — | |||||
Total interest expense, net | 699 | (292) | 407 | 575 | (311) | 264 | |||||
Other income (expense), net | 2 | (18) | (16) | 12 | (5) | 7 | |||||
Gain on sale non-vehicle capital assets | — | — | — | (162) | 162 | — | |||||
Bankruptcy-related litigation reserve | 288 | (288) | — | — | — | — | |||||
Long-Lived Assets impairment | 1,048 | (1,048) | — | — | — | — | |||||
Change in fair value of Public Warrants | (272) | 272 | — | (110) | 110 | — | |||||
Total expenses | $ 9,683 | $ (1,490) | $ 8,193 | $ 6,408 | $ (164) | $ 6,244 |
Supplemental Schedule III | |||||||
HERTZ GLOBAL HOLDINGS, INC. | |||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURE - ADJUSTED OPERATING CASH FLOW | |||||||
Unaudited | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(In millions) | 2024 | 2023 | 2024 | 2023 | |||
ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW: | |||||||
Net cash provided by (used in) operating activities | $ 894 | $ 851 | $ 1,810 | $ 1,910 | |||
Depreciation and reserves for revenue earning vehicles, net | (1,025) | (606) | (3,219) | (1,490) | |||
Bankruptcy related payments (post emergence) and other payments | (1) | (30) | 4 | (10) | |||
Adjusted operating cash flow | (132) | 215 | (1,405) | 410 | |||
Non-vehicle capital asset proceeds (expenditures), net | (10) | (26) | (62) | 27 | |||
Adjusted operating cash flow before vehicle investment | (142) | 189 | (1,467) | 437 | |||
Net fleet growth after financing | (12) | 124 | 31 | (630) | |||
Adjusted free cash flow | $ (154) | $ 313 | $ (1,436) | $ (193) | |||
CALCULATION OF NET FLEET GROWTH AFTER FINANCING: | |||||||
Revenue earning vehicles expenditures | $ (2,231) | $ (1,769) | $ (7,858) | $ (8,312) | |||
Proceeds from disposal of revenue earning vehicles | 1,754 | 1,412 | 4,656 | 4,178 | |||
Revenue earning vehicles capital expenditures, net | (477) | (357) | (3,202) | (4,134) | |||
Depreciation and reserves for revenue earning vehicles, net | 1,025 | 606 | 3,219 | 1,490 | |||
Financing activity related to vehicles: | |||||||
Borrowings | 1,576 | 1,720 | 3,259 | 5,741 | |||
Payments | (2,159) | (1,867) | (3,280) | (3,739) | |||
Restricted cash changes, vehicle | 23 | 22 | 35 | 12 | |||
Net financing activity related to vehicles | (560) | (125) | 14 | 2,014 | |||
Net fleet growth after financing | $ (12) | $ 124 | $ 31 | $ (630) |
Supplemental Schedule IV | |||||||||||
HERTZ GLOBAL HOLDINGS, INC. | |||||||||||
NET DEBT CALCULATION | |||||||||||
Unaudited | |||||||||||
As of September 30, 2024 | As of December 31, 2023 | ||||||||||
(In millions) | Vehicle | Non-Vehicle | Total | Vehicle | Non-Vehicle | Total | |||||
First Lien RCF | $ — | $ 250 | $ 250 | $ — | $ — | $ — | |||||
Term loans | — | 1,999 | 1,999 | — | 2,013 | 2,013 | |||||
First lien senior notes | — | 750 | 750 | — | — | — | |||||
Exchangeable notes | — | 250 | 250 | — | — | — | |||||
Senior unsecured notes | — | 1,500 | 1,500 | — | 1,500 | 1,500 | |||||
9,871 | — | 9,871 | 10,203 | — | 10,203 | ||||||
International vehicle financing (Various) | 2,341 | — | 2,341 | 2,001 | — | 2,001 | |||||
Other debt | 149 | 2 | 151 | 110 | 2 | 112 | |||||
Debt issue costs, discounts and premiums | (58) | (98) | (156) | (72) | (66) | (138) | |||||
Debt as reported in the balance sheet | 12,303 | 4,653 | 16,956 | 12,242 | 3,449 | 15,691 | |||||
Add: | |||||||||||
Debt issue costs, discounts and premiums | 58 | 98 | 156 | 72 | 66 | 138 | |||||
Less: | |||||||||||
Cash and cash equivalents | — | 501 | 501 | — | 764 | 764 | |||||
Restricted cash | 116 | — | 116 | 152 | — | 152 | |||||
Restricted cash and restricted cash | — | 245 | 245 | — | 245 | 245 | |||||
Net Debt | $ 12,245 | $ 4,005 | $ 16,250 | $ 12,162 | $ 2,506 | $ 14,668 | |||||
LTM Adjusted Corporate EBITDA(a) | (1,566) | 561 | |||||||||
Net Corporate Leverage | -2.6x | 4.5x |
NM - Not meaningful | |
(a) | Reconciliation of LTM Adjusted Corporate EBITDA for the nine months ended September 30, 2024 and twelve months ended December 31, 2023 are as follows: |
(In millions) | Nine Months Ended | Twelve Months Ended | |
Net income (loss) three months ended: | |||
December 31, 2023 | $ (348) | n/a | |
March 31, 2024 | (186) | n/a | |
June 30, 2024 | (865) | n/a | |
September 30, 2024 | (1,332) | n/a | |
LTM net income (loss) | (2,731) | $ 616 | |
Adjustments: | |||
Income tax provision (benefit) | (436) | (330) | |
Non-vehicle depreciation and amortization | 156 | 149 | |
Non-vehicle debt interest, net of interest income | 334 | 238 | |
Vehicle debt-related charges | 44 | 42 | |
Restructuring and restructuring related charge | 52 | 17 | |
Unrealized (gains) losses on financial instruments | 2 | 117 | |
(Gain) on sale of non-vehicle capital assets | — | (162) | |
Non-cash stock-based compensation forfeitures | (64) | — | |
Bankruptcy-related litigation reserve | 288 | — | |
Long-Lived Assets impairment | 1,048 | — | |
Change in fair value of Public Warrants | (325) | (163) | |
Other items | 66 | 37 | |
LTM Adjusted Corporate EBITDA | $ (1,566) | $ 561 |
Supplemental Schedule V | |||||||||||
HERTZ GLOBAL HOLDINGS, INC. | |||||||||||
KEY METRICS CALCULATIONS | |||||||||||
REVENUE, UTILIZATION AND DEPRECIATION | |||||||||||
Unaudited | |||||||||||
Global RAC | |||||||||||
Three Months Ended | Percent | Nine Months Ended September 30, | Percent | ||||||||
($ in millions, except where noted) | 2024 | 2023 | 2024 | 2023 | |||||||
Total RPD | |||||||||||
Revenues | $ 2,576 | $ 2,703 | $ 7,009 | $ 7,187 | |||||||
Foreign currency adjustment(a) | 10 | 13 | 35 | 32 | |||||||
Total Revenues - adjusted for foreign currency | $ 2,586 | $ 2,716 | $ 7,044 | $ 7,219 | |||||||
Transaction Days (in thousands) | 41,298 | 43,095 | 117,873 | 116,588 | |||||||
Total RPD (in dollars) | $ 62.63 | $ 63.04 | (1) % | $ 59.76 | $ 61.92 | (3) % | |||||
Total Revenue Per Unit Per Month | |||||||||||
Total Revenues - adjusted for foreign currency | $ 2,586 | $ 2,716 | $ 7,044 | $ 7,219 | |||||||
Average Rentable Vehicles (in whole units) | 550,074 | 562,267 | 541,307 | 526,456 | |||||||
Total revenue per unit (in whole dollars) | $ 4,702 | $ 4,831 | $ 13,014 | $ 13,712 | |||||||
Number of months in period (in whole units) | 3 | 3 | 9 | 9 | |||||||
Total RPU Per Month (in whole dollars) | $ 1,567 | $ 1,610 | (3) % | $ 1,446 | $ 1,524 | (5) % | |||||
Vehicle Utilization | |||||||||||
Transaction Days (in thousands) | 41,298 | 43,095 | 117,873 | 116,588 | |||||||
Average Rentable Vehicles (in whole units) | 550,074 | 562,267 | 541,307 | 526,456 | |||||||
Number of days in period (in whole units) | 92 | 92 | 274 | 273 | |||||||
Available Car Days (in thousands) | 50,628 | 51,744 | 148,368 | 143,823 | |||||||
Vehicle Utilization(b) | 82 % | 83 % | 79 % | 81 % | |||||||
Depreciation Per Unit Per Month | |||||||||||
Depreciation of revenue earning vehicles and lease | $ 937 | $ 501 | $ 2,941 | $ 1,211 | |||||||
Foreign currency adjustment(a) | 3 | 2 | 11 | 6 | |||||||
Adjusted depreciation of revenue earning vehicles and | $ 940 | $ 503 | $ 2,952 | $ 1,217 | |||||||
Average Vehicles (in whole units) | 583,516 | 590,489 | 569,411 | 552,098 | |||||||
Adjusted depreciation of revenue earning vehicles and | $ 1,611 | $ 852 | $ 5,184 | $ 2,204 | |||||||
Number of months in period (in whole units) | 3 | 3 | 9 | 9 | |||||||
Depreciation Per Unit Per Month (in whole dollars) | $ 537 | $ 284 | 89 % | $ 576 | $ 245 | NM |
Note: Global RAC represents Americas RAC and International RAC segment information on a combined basis and excludes Corporate | |
NM - Not meaningful | |
(a) | Based on December 31, 2023 foreign exchange rates. |
(b) | 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 | Percent | Nine Months Ended September 30, | Percent | ||||||||
($ in millions, except where noted) | 2024 | 2023 | 2024 | 2023 | |||||||
Total RPD | |||||||||||
Revenues | $ 2,062 | $ 2,172 | $ 5,729 | $ 5,917 | |||||||
Foreign currency adjustment(a) | 4 | 2 | 8 | 4 | |||||||
Total Revenues - adjusted for foreign currency | $ 2,066 | $ 2,174 | $ 5,737 | $ 5,921 | |||||||
Transaction Days (in thousands) | 32,693 | 34,278 | 95,469 | 94,626 | |||||||
Total RPD (in dollars) | $ 63.20 | $ 63.45 | — % | $ 60.09 | $ 62.59 | (4) % | |||||
Total Revenue Per Unit Per Month | |||||||||||
Total Revenues - adjusted for foreign currency | $ 2,066 | $ 2,174 | $ 5,737 | $ 5,921 | |||||||
Average Rentable Vehicles (in whole units) | 432,608 | 442,353 | 434,714 | 422,595 | |||||||
Total revenue per unit (in whole dollars) | $ 4,776 | $ 4,915 | $ 13,196 | $ 14,012 | |||||||
Number of months in period (in whole units) | 3 | 3 | 9 | 9 | |||||||
Total RPU Per Month (in whole dollars) | $ 1,592 | $ 1,638 | (3) % | $ 1,466 | $ 1,557 | (6) % | |||||
Vehicle Utilization | |||||||||||
Transaction Days (in thousands) | 32,693 | 34,278 | 95,469 | 94,626 | |||||||
Average Rentable Vehicles (in whole units) | 432,608 | 442,353 | 434,714 | 422,595 | |||||||
Number of days in period (in whole units) | 92 | 92 | 274 | 273 | |||||||
Available Car Days (in thousands) | 39,816 | 40,709 | 119,143 | 115,433 | |||||||
Vehicle Utilization(b) | 82 % | 84 % | 80 % | 82 % | |||||||
Depreciation Per Unit Per Month | |||||||||||
Depreciation of revenue earning vehicles and lease | $ 822 | $ 414 | $ 2,603 | $ 1,035 | |||||||
Foreign currency adjustment(a) | 1 | 1 | 3 | 2 | |||||||
Adjusted depreciation of revenue earning vehicles and | $ 823 | $ 415 | $ 2,606 | $ 1,037 | |||||||
Average Vehicles (in whole units) | 463,467 | 467,916 | 460,638 | 446,101 | |||||||
Adjusted depreciation of revenue earning vehicles and | $ 1,777 | $ 886 | $ 5,658 | $ 2,325 | |||||||
Number of months in period (in whole units) | 3 | 3 | 9 | 9 | |||||||
Depreciation Per Unit Per Month (in whole dollars) | $ 592 | $ 295 | 100 % | $ 629 | $ 258 | NM |
NM - Not meaningful | |
(a) | Based on December 31, 2023 foreign exchange rates. |
(b) | 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 | Percent | Nine Months Ended September 30, | Percent | ||||||||
($ in millions, except where noted) | 2024 | 2023 | 2024 | 2023 | |||||||
Total RPD | |||||||||||
Revenues | $ 514 | $ 531 | $ 1,280 | $ 1,270 | |||||||
Foreign currency adjustment(a) | 6 | 11 | 28 | 27 | |||||||
Total Revenues - adjusted for foreign currency | $ 520 | $ 542 | $ 1,308 | $ 1,297 | |||||||
Transaction Days (in thousands) | 8,605 | 8,817 | 22,404 | 21,962 | |||||||
Total RPD (in dollars) | $ 60.45 | $ 61.47 | (2) % | $ 58.37 | $ 59.07 | (1) % | |||||
Total Revenue Per Unit Per Month | |||||||||||
Total Revenues - adjusted for foreign currency | $ 520 | $ 542 | $ 1,308 | $ 1,297 | |||||||
Average Rentable Vehicles (in whole units) | 117,466 | 119,914 | 106,593 | 103,861 | |||||||
Total revenue per unit (in whole dollars) | $ 4,429 | $ 4,520 | $ 12,269 | $ 12,490 | |||||||
Number of months in period (in whole units) | 3 | 3 | 9 | 9 | |||||||
Total RPU Per Month (in whole dollars) | $ 1,476 | $ 1,507 | (2) % | $ 1,363 | $ 1,388 | (2) % | |||||
Vehicle Utilization | |||||||||||
Transaction Days (in thousands) | 8,605 | 8,817 | 22,404 | 21,962 | |||||||
Average Rentable Vehicles (in whole units) | 117,466 | 119,914 | 106,593 | 103,861 | |||||||
Number of days in period (in whole units) | 92 | 92 | 274 | 273 | |||||||
Available Car Days (in thousands) | 10,813 | 11,035 | 29,225 | 28,389 | |||||||
Vehicle Utilization (b) | 80 % | 80 % | 77 % | 77 % | |||||||
Depreciation Per Unit Per Month | |||||||||||
Depreciation of revenue earning vehicles and lease | $ 115 | $ 87 | $ 338 | $ 176 | |||||||
Foreign currency adjustment(a) | 2 | 1 | 8 | 4 | |||||||
Adjusted depreciation of revenue earning vehicles and | $ 117 | $ 88 | $ 346 | $ 180 | |||||||
Average Vehicles (in whole units) | 120,049 | 122,572 | 108,772 | 105,997 | |||||||
Adjusted depreciation of revenue earning vehicles and | $ 971 | $ 720 | $ 3,176 | $ 1,696 | |||||||
Number of months in period (in whole units) | 3 | 3 | 9 | 9 | |||||||
Depreciation Per Unit Per Month (in whole dollars) | $ 324 | $ 240 | 35 % | $ 353 | $ 188 | 87 % |
NM - Not meaningful | |
(a) | Based on December 31, 2023 foreign exchange rates. |
(b) | 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
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; acquisition accounting-related depreciation and amortization; unrealized (gains) losses on financial instruments; change in fair value of Public Warrants and certain other miscellaneous or non-recurring 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; unrealized (gains) losses on financial instruments; change in fair value of Public Warrants and certain other miscellaneous or non-recurring 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 an important performance measure 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 an important performance measure 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.
The most comparable GAAP measure for adjusted operating cash flow and adjusted free cash flow is net cash provided by (used in) operating activities.
Net Fleet Growth After Financing
Net Non-vehicle Debt
Net Non-vehicle Debt is calculated as non-vehicle debt as reported on the Company's balance sheet, excluding the impact of unamortized debt issuance costs associated with non-vehicle debt, less cash and cash equivalents. Non-vehicle debt consists of the Company's Senior Term Loans, Senior RCF, First Lien Senior Notes, Second Lien Exchangeable Notes, Senior Unsecured Notes, Promissory Notes and certain other non-vehicle indebtedness of its domestic and foreign subsidiaries. Net Non-vehicle Debt is important to management and investors as it helps measure the Company's corporate leverage. Net Non-vehicle Debt 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
Net Vehicle Debt is calculated as vehicle debt as reported on the Company's balance sheet, excluding the impact of unamortized debt issue costs 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. 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
Total Net Debt is calculated as total debt, excluding the impact of unamortized debt issuance costs, less total cash and cash equivalents and restricted cash associated with vehicle debt. Unamortized debt issuance costs are required to be reported as a deduction from the carrying amount of the related debt obligation under GAAP. Management believes that eliminating the effects that these costs have on debt will more accurately reflect the Company's net debt position. Total Net Debt is important to management, investors and ratings agencies as it helps measure the Company's gross leverage.
Net Corporate Leverage
Net Corporate Leverage is calculated as non-vehicle net debt divided by Adjusted Corporate EBITDA for the last twelve months. Net Corporate Leverage is important to management and investors as it measures the Company's corporate leverage net of unrestricted cash. Net Corporate Leverage also assists in the evaluation of the Company's ability to service its non-vehicle debt with reference to the generation of Adjusted Corporate EBITDA.
KEY METRICS
Available Rental Car Days
Available Rental 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.
Total Revenue Per Unit Per Month ("Total RPU", "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.
Transaction Days ("Days"; also referred to as "volume")
Transaction Days represents the total number of 24-hour periods, with any partial period counted as one Transaction Day, that vehicles were on rent (the period between when a rental contract is opened and closed) in a given period. Thus, it is possible for a vehicle to attain more than one Transaction Day in a 24-hour period. This metric is important to management and investors as it represents the number of revenue-generating days.
Vehicle Utilization ("Utilization")
Vehicle Utilization represents the ratio of Transaction Days to Available Rental 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 rentable fleet capacity.
View original content:https://www.prnewswire.com/news-releases/hertz-reports-third-quarter-2024-results-302301717.html
SOURCE Hertz Global Holdings, Inc.
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