ESTERO, Fla., Feb. 23, 2022 /PRNewswire/ -- Hertz Global
Holdings, Inc. (NASDAQ: HTZ) ("Hertz", "Hertz Global" or the
"Company") today reported results for its fourth quarter and full
year 2021.
For the fourth quarter 2021, the Company generated total
revenues of $1.9 billion, which
were 78% higher than the fourth quarter of 2020, and 9% below the
fourth quarter of 2019, excluding Donlen. RPU rose 31% from the
fourth quarter of 2019, due to disciplined fleet management and a
continued recovery in travel demand. These trends, along with
strong cost performance, drove $0.91
of Adjusted earnings per share and $628
million of Adjusted Corporate EBITDA in the quarter, both of
which were fourth quarter records for the Company.
For the full year 2021, the Company generated total revenues of
$7.3 billion and Adjusted earnings
per share of $4.39. Adjusted
Corporate EBITDA was a record $2.1
billion, a margin of 29%. Liquidity at the end of 2021 was
$3.2 billion after giving effect to
the redemption of the Company's preferred shares and the repurchase
of 27.5 million shares of its common stock, both of which occurred
during the fourth quarter.
"2021 was a transformative year for Hertz," said Mark Fields, Hertz Interim Chief Executive
Officer. "Sustained structural improvements and disciplined fleet
management contributed to a strong performance across our top and
bottom line, despite the challenges presented by COVID, supply
chain constraints and labor shortages. We have demonstrated our
resilience and ability to innovate and to make progress on playing
a central role in the modern mobility ecosystem."
SUMMARY RESULTS
|
Three Months
Ended
December
31,
|
|
Percent Inc/
(Dec)
2021 vs
2020
|
|
Percent Inc/
(Dec)
2021 vs
2019
|
($ in millions,
except earnings per share or where noted)
|
2021
|
|
2020
|
|
2019
|
|
|
Hertz Global -
Consolidated
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
1,949
|
|
$
1,235
|
|
$
2,326
|
|
58%
|
|
(16)%
|
Adjusted net income
(loss)(a)
|
$
426
|
|
$
(187)
|
|
$
(34)
|
|
NM
|
|
NM
|
Adjusted diluted
earnings (loss) per share(a)
|
$
0.91
|
|
$
(1.20)
|
|
$
(0.24)
|
|
NM
|
|
NM
|
Adjusted Corporate
EBITDA(a)
|
$
628
|
|
$
(140)
|
|
$
54
|
|
NM
|
|
NM
|
Adjusted Corporate
EBITDA Margin(a)
|
32%
|
|
(11)%
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Vehicles (in
whole units)
|
470,900
|
|
381,927
|
|
686,697
|
|
23%
|
|
(31)%
|
Vehicle
Utilization
|
75%
|
|
73%
|
|
77%
|
|
|
|
|
Transaction Days (in
thousands)
|
32,551
|
|
25,486
|
|
48,961
|
|
28%
|
|
(34)%
|
Total RPD (in
dollars)(b)
|
$
60.29
|
|
$
43.12
|
|
$
44.73
|
|
40%
|
|
35%
|
Total RPU Per Month
(in whole dollars)(b)
|
$
1,389
|
|
$
959
|
|
$
1,063
|
|
45%
|
|
31%
|
Depreciation Per Unit
Per Month (in whole dollars)(b)
|
$
57
|
|
$
276
|
|
$
272
|
|
(79)%
|
|
(79)%
|
|
|
|
|
|
|
|
|
|
|
Americas RAC
Segment
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
1,691
|
|
$
899
|
|
$
1,726
|
|
88%
|
|
(2)%
|
Adjusted
EBITDA
|
$
653
|
|
$
(108)
|
|
$
43
|
|
NM
|
|
NM
|
Adjusted EBITDA
Margin
|
39%
|
|
(12)%
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Vehicles (in
whole units)
|
384,492
|
|
308,107
|
|
536,065
|
|
25%
|
|
(28)%
|
Vehicle
Utilization
|
77%
|
|
73%
|
|
79%
|
|
|
|
|
Transaction Days (in
thousands)
|
27,215
|
|
20,754
|
|
38,851
|
|
31%
|
|
(30)%
|
Total RPD (in
dollars)(b)
|
$
62.10
|
|
$
43.35
|
|
$
44.45
|
|
43%
|
|
40%
|
Total RPU Per Month
(in whole dollars)(b)
|
$
1,465
|
|
$
973
|
|
$
1,074
|
|
51%
|
|
36%
|
Depreciation Per Unit
Per Month (in whole dollars)(b)
|
$
26
|
|
$
294
|
|
$
282
|
|
(91)%
|
|
(91)%
|
|
|
|
|
|
|
|
|
|
|
International RAC
Segment
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
258
|
|
$
194
|
|
$
421
|
|
33%
|
|
(39)%
|
Adjusted
EBITDA
|
$
21
|
|
$
(46)
|
|
$
(5)
|
|
NM
|
|
NM
|
Adjusted EBITDA
Margin
|
8%
|
|
(24)%
|
|
(1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Vehicles (in
whole units)
|
86,408
|
|
73,820
|
|
150,632
|
|
17%
|
|
(43)%
|
Vehicle
Utilization
|
67%
|
|
70%
|
|
73%
|
|
|
|
|
Transaction Days (in
thousands)
|
5,335
|
|
4,732
|
|
10,111
|
|
13%
|
|
(47)%
|
Total RPD (in
dollars)(b)
|
$
51.06
|
|
$
42.11
|
|
$
45.79
|
|
21%
|
|
12%
|
Total RPU Per Month
(in whole dollars)(b)
|
$
1,051
|
|
$
900
|
|
$
1,024
|
|
17%
|
|
3%
|
Depreciation Per Unit
Per Month (in whole dollars)(b)
|
$
197
|
|
$
200
|
|
$
234
|
|
(2)%
|
|
(16)%
|
|
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 for 2021 and 2020 periods. For 2019, see
Supplemental Schedule II as reported in the Company's fourth
quarter and full year 2020 press released dated February
26, 2021 which is available on Hertz' website at ir.hertz.com.
Adjusted Corporate EBITDA Margin is calculated by dividing Adjusted
Corporate EBITDA by Total revenues.
|
|
|
|
|
(b)
|
Based on
December 31, 2020 foreign exchange rates.
|
LIQUIDITY AND CAPITAL RESOURCES
The Company's liquidity position totaled $3.2 billion at December 31, 2021,
comprised of $2.3 billion in
unrestricted cash and $925 million of availability under the
First Lien RCF (as defined below).
During the fourth quarter 2021, the Company repurchased
27.5 million shares of its common stock for an aggregate price
of $708 million. Between January 1, 2022 and
February 17, 2022, the Company repurchased
20,589,620 shares of Hertz Global's common stock for an
aggregate purchase price of $431 million. As of February 17, 2022 $1.2 billion remains available for share
repurchases under the Board-approved plan.
Also during the fourth quarter, the Company repurchased all
1,500,000 outstanding shares of its Series A Preferred
Stock for aggregate cash payments of $1.9 billion. The Company funded the
preferred share repurchases with available cash, including proceeds
from the offering of the Senior Notes Due 2026 and Senior Notes Due
2029.
The Company completed its restructuring in June 2021 with
significantly lower non-vehicle debt levels relative to its
pre-restructuring balance sheet. At December 31, 2021 the
Company had $3.0 billion in
outstanding non-vehicle debt, comprised of a $1.3 billion Term B Loan, a
$245 million Term C Loan that will support the issuance of
letters of credit and $1.5 billion
unsecured Senior Notes Due 2026 and Senior Notes Due 2029 that were
issued to fund the repurchase of Hertz Global's Series A
Preferred Stock. In addition, the Company has a $1.3 billion first lien revolving
credit facility ("First Lien RCF"). At December 31, 2021, the
Company had $330 million of letters of credit outstanding and
no borrowings outstanding under the First Lien RCF. The Company has
no material non-vehicle debt maturities until 2026.
EARNINGS WEBCAST INFORMATION
Hertz Global's live webcast and conference call to discuss its
fourth quarter and full year 2021 results will be held on
February 23, 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 4089409. 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
The unaudited financial data of Hertz is set forth on pages 6-9
of this release. Also included are Supplemental Schedules, which
are provided to present segment results, reconciliations of
non-GAAP measures to their most comparable GAAP measures and other
calculations.
In the second quarter of 2021, the Company revised its
reportable segments to combine its Canada, Latin
America and Caribbean
operations with the U.S. and renamed its U.S. Rental Car segment
Americas Rental Car ("Americas RAC"). As a result, those operations
are no longer be reported in the International RAC segment.
Additionally, in the second quarter of 2021, the Company added a
financial statement line item for non-vehicle depreciation and
amortization to better align with current industry practice. In the
third quarter of 2021, the Company revised its calculation of Total
RPD and Total RPU to include ancillary retail vehicle sales
revenues to better align with current industry practice. For the
revisions noted above, prior periods have been restated to conform
with the revised presentation. Refer also to Supplemental Schedule
VI.
Following the Supplemental Schedules, the Company provides
definitions for terminology used throughout this earnings release
and provides the usefulness of non-GAAP measures to investors and
additional purposes for which management uses such measures.
Financial data included in this release is derived from our
audited consolidated financial statements as of and for the year
ended December 31, 2021, which are included in the Company's
Annual Report on Form 10-K for the year ended
December 31, 2021 filed with the SEC and on the Hertz website,
IR.Hertz.com. The Company's historical results are not necessarily
indicative of the results to be expected for any future period.
Financial data included in this release is qualified by reference
to and should be read in conjunction with the Company's audited
consolidated financial statements and related notes thereto which
are included in its Annual Report on Form 10-K for the year
ended December 31, 2021.
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained or incorporated by reference in
this release, and in related comments by the Company's management,
include "forward-looking statements." Forward-looking statements
include information concerning the Company's liquidity and its
possible or assumed future results of operations, including
descriptions of its business strategies. These statements often
include words such as "believe," "expect," "project," "potential,"
"anticipate," "intend," "plan," "estimate," "seek," "will," "may,"
"would," "should," "could," "forecasts," "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 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 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;
- a 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 possess, 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 our 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 our operations, the
Company's 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 December 31,
|
|
Twelve Months
Ended
December 31,
|
(In millions, except
per share data)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenues
|
$
1,949
|
|
$
1,235
|
|
$
7,336
|
|
$
5,258
|
Expenses:
|
|
|
|
|
|
|
|
Direct vehicle and
operating
|
1,065
|
|
799
|
|
3,920
|
|
3,423
|
Depreciation of
revenue earning vehicles and lease charges
|
78
|
|
397
|
|
497
|
|
2,030
|
Depreciation and
amortization of non-vehicle assets
|
43
|
|
57
|
|
196
|
|
225
|
Selling, general and
administrative
|
188
|
|
139
|
|
688
|
|
645
|
Interest expense,
net:
|
|
|
|
|
|
|
|
Vehicle
|
41
|
|
96
|
|
284
|
|
455
|
Non-vehicle
|
28
|
|
34
|
|
185
|
|
153
|
Total interest
expense, net
|
69
|
|
130
|
|
469
|
|
608
|
Technology-related
intangible and other asset impairments
|
—
|
|
20
|
|
—
|
|
213
|
Other (income)
expense, net
|
(1)
|
|
6
|
|
(21)
|
|
(9)
|
Reorganization items,
net
|
—
|
|
74
|
|
677
|
|
175
|
(Gain) from the sale
of a business
|
—
|
|
—
|
|
(400)
|
|
—
|
Change in fair value
of Public Warrants
|
643
|
|
—
|
|
627
|
|
—
|
Total
expenses
|
2,085
|
|
1,622
|
|
6,653
|
|
7,310
|
Income (loss) before
income taxes
|
(136)
|
|
(387)
|
|
683
|
|
(2,052)
|
Income tax
(provision) benefit
|
(125)
|
|
97
|
|
(318)
|
|
329
|
Net income
(loss)
|
(261)
|
|
(290)
|
|
365
|
|
(1,723)
|
Net (income) loss
attributable to noncontrolling interests
|
1
|
|
1
|
|
1
|
|
9
|
Net income (loss)
attributable to Hertz Global
|
(260)
|
|
(289)
|
|
366
|
|
(1,714)
|
Series A
Preferred Stock deemed dividends
|
(450)
|
|
—
|
|
(450)
|
|
—
|
Net income (loss)
available to Hertz Global common stockholders
|
$
(710)
|
|
$
(289)
|
|
$
(84)
|
|
$
(1,714)
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
468
|
|
156
|
|
315
|
|
150
|
Diluted
|
468
|
|
156
|
|
315
|
|
150
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
(1.52)
|
|
$
(1.85)
|
|
$
(0.27)
|
|
$
(11.44)
|
Diluted
|
$
(1.52)
|
|
$
(1.85)
|
|
$
(0.27)
|
|
$
(11.44)
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
|
(In millions, except
par value and share data)
|
December 31,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
2,258
|
|
$
1,096
|
Restricted cash and
cash equivalents:
|
|
|
|
Vehicle
|
77
|
|
50
|
Non-vehicle
|
316
|
|
361
|
Total restricted cash
and cash equivalents
|
393
|
|
411
|
Total cash, cash
equivalents, restricted cash and restricted cash
equivalents
|
2,651
|
|
1,507
|
Receivables:
|
|
|
|
Vehicle
|
62
|
|
164
|
Non-vehicle, net of
allowance of $48 and $46, respectively
|
696
|
|
613
|
Total receivables,
net
|
758
|
|
777
|
Prepaid expenses and
other assets
|
1,017
|
|
373
|
Revenue earning
vehicles:
|
|
|
|
Vehicles
|
10,836
|
|
7,540
|
Less: accumulated
depreciation
|
(1,610)
|
|
(1,478)
|
Total revenue earning
vehicles, net
|
9,226
|
|
6,062
|
Property and
equipment, net
|
608
|
|
666
|
Operating lease
right-of-use assets
|
1,566
|
|
1,675
|
Intangible assets,
net
|
2,912
|
|
2,992
|
Goodwill
|
1,045
|
|
1,045
|
Assets held for
sale
|
—
|
|
1,811
|
Total
assets
|
$
19,783
|
|
$
16,908
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Accounts
payable:
|
|
|
|
Vehicle
|
$
56
|
|
$
29
|
Non-vehicle
|
516
|
|
389
|
Total accounts
payable
|
572
|
|
418
|
Accrued
liabilities
|
863
|
|
759
|
Accrued taxes,
net
|
157
|
|
121
|
Debt:
|
|
|
|
Vehicle
|
7,921
|
|
6,024
|
Non-vehicle
|
2,986
|
|
243
|
Total debt
|
10,907
|
|
6,267
|
Public
Warrants
|
1,324
|
|
—
|
Operating lease
liabilities
|
1,510
|
|
1,636
|
Self-insured
liabilities
|
463
|
|
488
|
Deferred income
taxes, net
|
1,010
|
|
730
|
Total liabilities not
subject to compromise
|
16,806
|
|
10,419
|
Liabilities subject
to compromise
|
—
|
|
4,965
|
Liabilities held for
sale
|
—
|
|
1,431
|
Total
liabilities
|
16,806
|
|
16,815
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred stock, $0.01
par value, no shares issued and outstanding
|
—
|
|
—
|
Common stock, $0.01 par
value, 477,233,278 and 158,235,410 shares issued,
respectively, and 449,782,424 and 156,206,478 shares
outstanding, respectively
|
5
|
|
2
|
Treasury stock, at
cost, 27,450,854 and 2,028,932 common shares,
respectively
|
(708)
|
|
(100)
|
Additional paid-in
capital
|
6,209
|
|
3,047
|
Retained earnings
(Accumulated deficit)
|
(2,315)
|
|
(2,681)
|
Accumulated other
comprehensive income (loss)
|
(214)
|
|
(212)
|
Stockholders' equity
attributable to Hertz Global
|
2,977
|
|
56
|
Noncontrolling
interests
|
—
|
|
37
|
Total stockholders'
equity
|
2,977
|
|
93
|
Total liabilities and
stockholders' equity
|
$
19,783
|
|
$
16,908
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(In
millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(261)
|
|
$
(290)
|
|
$
365
|
|
$
(1,723)
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
Depreciation and
reserves for revenue earning vehicles
|
94
|
|
450
|
|
600
|
|
2,259
|
Depreciation and
amortization, non-vehicle
|
43
|
|
57
|
|
196
|
|
225
|
Amortization of
deferred financing costs and debt discount (premium)
|
13
|
|
22
|
|
122
|
|
59
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
8
|
|
5
|
Stock-based
compensation charges
|
7
|
|
1
|
|
10
|
|
(2)
|
Provision for
receivables allowance
|
30
|
|
28
|
|
125
|
|
94
|
Deferred income taxes,
net
|
145
|
|
(110)
|
|
270
|
|
(353)
|
Technology-related
intangible and other asset impairments
|
—
|
|
20
|
|
—
|
|
213
|
Reorganization items,
net
|
—
|
|
7
|
|
314
|
|
8
|
(Gain) loss from the
sale of a business
|
—
|
|
—
|
|
(400)
|
|
—
|
(Gain) loss on
marketable securities
|
—
|
|
—
|
|
—
|
|
—
|
(Gain) loss on sale of
non-vehicle capital assets
|
—
|
|
—
|
|
(8)
|
|
(24)
|
Change in fair value
of Public Warrants
|
643
|
|
—
|
|
627
|
|
—
|
Other
|
3
|
|
5
|
|
(5)
|
|
5
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Non-vehicle
receivables
|
13
|
|
(36)
|
|
(210)
|
|
195
|
Prepaid expenses and
other assets
|
33
|
|
59
|
|
(20)
|
|
92
|
Operating lease
right-of-use assets
|
71
|
|
89
|
|
274
|
|
366
|
Non-vehicle accounts
payable
|
(25)
|
|
(126)
|
|
(70)
|
|
98
|
Accrued
liabilities
|
(65)
|
|
(14)
|
|
(108)
|
|
(61)
|
Accrued taxes,
net
|
(65)
|
|
(48)
|
|
24
|
|
(52)
|
Operating lease
liabilities
|
(77)
|
|
(88)
|
|
(291)
|
|
(375)
|
Self-insured
liabilities
|
(4)
|
|
(1)
|
|
(17)
|
|
(76)
|
Net cash provided by
(used in) operating activities
|
598
|
|
25
|
|
1,806
|
|
953
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Revenue earning
vehicles expenditures
|
(1,958)
|
|
(354)
|
|
(7,154)
|
|
(5,542)
|
Proceeds from disposal
of revenue earning vehicles
|
873
|
|
1,328
|
|
2,818
|
|
10,098
|
Non-vehicle capital
asset expenditures
|
(30)
|
|
(9)
|
|
(71)
|
|
(98)
|
Proceeds from
non-vehicle capital assets disposed of or to be disposed
of
|
(1)
|
|
4
|
|
16
|
|
60
|
Sales of marketable
securities
|
—
|
|
—
|
|
—
|
|
74
|
Collateral
payments
|
—
|
|
—
|
|
(303)
|
|
—
|
Collateral returned in
exchange for letters of credit
|
12
|
|
—
|
|
280
|
|
—
|
Proceeds from the sale
of a business, net of cash sold
|
—
|
|
—
|
|
871
|
|
—
|
Other
|
—
|
|
—
|
|
(1)
|
|
(1)
|
Net cash provided by
(used in) investing activities
|
(1,104)
|
|
969
|
|
(3,544)
|
|
4,591
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of vehicle debt
|
3,861
|
|
320
|
|
14,323
|
|
4,546
|
Repayments of vehicle
debt
|
(3,144)
|
|
(1,820)
|
|
(12,607)
|
|
(10,751)
|
Proceeds from issuance
of non-vehicle debt
|
1,505
|
|
259
|
|
4,644
|
|
1,812
|
Repayments of
non-vehicle debt
|
(6)
|
|
(1)
|
|
(6,352)
|
|
(855)
|
Payment of financing
costs
|
(31)
|
|
(64)
|
|
(185)
|
|
(75)
|
Proceeds from Plan
Sponsors
|
—
|
|
—
|
|
2,781
|
|
—
|
Early redemption
premium payment
|
—
|
|
—
|
|
(85)
|
|
—
|
Proceeds from issuance
of stock, net
|
—
|
|
—
|
|
—
|
|
28
|
Proceeds from
exercises of Public Warrants
|
77
|
|
—
|
|
77
|
|
—
|
Proceeds from the
issuance of preferred stock, net
|
—
|
|
—
|
|
1,433
|
|
—
|
Repurchase of
preferred stock
|
(1,883)
|
|
—
|
|
(1,883)
|
|
—
|
Distributions to
common stockholders
|
—
|
|
—
|
|
(239)
|
|
—
|
Contributions from
(distributions to) noncontrolling interests
|
(13)
|
|
(20)
|
|
(38)
|
|
(75)
|
Proceeds from rights
offerings, net
|
—
|
|
—
|
|
1,639
|
|
—
|
Purchase of treasury
shares
|
(654)
|
|
—
|
|
(654)
|
|
—
|
Payments for Nasdaq
listing costs
|
(9)
|
|
—
|
|
(9)
|
|
—
|
Other
|
—
|
|
—
|
|
—
|
|
(2)
|
Net cash provided by
(used in) financing activities
|
(297)
|
|
(1,326)
|
|
2,845
|
|
(5,372)
|
Effect of foreign
currency exchange rate changes on cash, cash equivalents,
restricted cash and restricted cash equivalents
|
(12)
|
|
28
|
|
(34)
|
|
46
|
Net increase
(decrease) in cash, cash equivalents, restricted cash and
restricted cash equivalents during the period
|
(815)
|
|
(304)
|
|
1,073
|
|
218
|
Cash, cash
equivalents, restricted cash and restricted cash equivalents at
beginning of period(a)
|
3,466
|
|
1,882
|
|
1,578
|
|
1,360
|
Cash, cash
equivalents, restricted cash and restricted cash equivalents at end
of period(a)
|
$
2,651
|
|
$
1,578
|
|
$
2,651
|
|
$
1,578
|
|
|
(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
December 31, 2021
|
|
Three Months Ended
December 31, 2020
|
(In
millions)
|
Americas
RAC
|
|
International RAC
|
|
All other
operations
|
|
Corporate
|
|
Hertz
Global
|
|
Americas
RAC
|
|
International
RAC
|
|
All other
operations
|
|
Corporate
|
|
Hertz
Global
|
Revenues
|
$
1,691
|
|
$
258
|
|
$
—
|
|
$
—
|
|
$
1,949
|
|
$
899
|
|
$
194
|
|
$
142
|
|
$
—
|
|
$
1,235
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct vehicle and
operating
|
908
|
|
154
|
|
—
|
|
3
|
|
1,065
|
|
649
|
|
145
|
|
6
|
|
(1)
|
|
799
|
Depreciation of revenue
earning vehicles and lease charges
|
30
|
|
48
|
|
—
|
|
—
|
|
78
|
|
272
|
|
42
|
|
83
|
|
—
|
|
397
|
Depreciation and
amortization of non-vehicle assets
|
36
|
|
4
|
|
—
|
|
3
|
|
43
|
|
46
|
|
5
|
|
2
|
|
4
|
|
57
|
Selling, general and
administrative
|
90
|
|
39
|
|
—
|
|
59
|
|
188
|
|
53
|
|
35
|
|
8
|
|
43
|
|
139
|
Interest expense,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
|
31
|
|
10
|
|
—
|
|
—
|
|
41
|
|
64
|
|
20
|
|
12
|
|
—
|
|
96
|
Non-vehicle
|
(6)
|
|
—
|
|
—
|
|
34
|
|
28
|
|
(1)
|
|
—
|
|
1
|
|
34
|
|
34
|
Total interest
expense, net
|
25
|
|
10
|
|
—
|
|
34
|
|
69
|
|
63
|
|
20
|
|
13
|
|
34
|
|
130
|
Technology-related
intangible and other asset impairments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
20
|
|
—
|
|
—
|
|
20
|
Other (income) expense,
net
|
(2)
|
|
1
|
|
—
|
|
—
|
|
(1)
|
|
1
|
|
3
|
|
—
|
|
2
|
|
6
|
Reorganization items,
net
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
8
|
|
—
|
|
2
|
|
64
|
|
74
|
(Gain) from the sale of
a business
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Change in fair value of
Public Warrants
|
—
|
|
—
|
|
—
|
|
643
|
|
643
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total
expenses
|
1,087
|
|
256
|
|
—
|
|
742
|
|
2,085
|
|
1,092
|
|
270
|
|
114
|
|
146
|
|
1,622
|
Income (loss) before
income taxes
|
$
604
|
|
$
2
|
|
$
—
|
|
$
(742)
|
|
(136)
|
|
$
(193)
|
|
$
(76)
|
|
$
28
|
|
$
(146)
|
|
(387)
|
Income tax
(provision) benefit
|
|
|
|
|
|
|
|
|
(125)
|
|
|
|
|
|
|
|
|
|
97
|
Net income
(loss)
|
|
|
|
|
|
|
|
|
(261)
|
|
|
|
|
|
|
|
|
|
(290)
|
Net (income) loss
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
1
|
Net income (loss)
attributable to Hertz Global
|
|
|
|
|
|
|
|
|
(260)
|
|
|
|
|
|
|
|
|
|
(289)
|
Series A
Preferred Stock deemed dividends
|
|
|
|
|
|
|
|
|
(450)
|
|
|
|
|
|
|
|
|
|
—
|
Net income (loss)
attributable to Hertz Global common stockholders
|
|
|
|
|
|
|
|
|
$
(710)
|
|
|
|
|
|
|
|
|
|
$
(289)
|
|
|
Supplemental
Schedule I (continued)
|
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
CONDENSED
STATEMENT OF OPERATIONS BY SEGMENT
|
Unaudited
|
|
|
Twelve Months
Ended December 31, 2021
|
|
Twelve Months
Ended December 31, 2020
|
(In
millions)
|
Americas
RAC
|
|
International
RAC
|
|
All other
operations
|
|
Corporate
|
|
Hertz
Global
|
|
Americas
RAC
|
|
International
RAC
|
|
All other
operations
|
|
Corporate
|
|
Hertz
Global
|
Revenues
|
$
6,215
|
|
$
985
|
|
$
136
|
|
$
—
|
|
$
7,336
|
|
$
3,756
|
|
$
872
|
|
$
630
|
|
$
—
|
|
$
5,258
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct vehicle and
operating
|
3,302
|
|
606
|
|
5
|
|
7
|
|
3,920
|
|
2,763
|
|
647
|
|
18
|
|
(5)
|
|
3,423
|
Depreciation of revenue
earning vehicles and lease
charges
|
343
|
|
154
|
|
—
|
|
—
|
|
497
|
|
1,352
|
|
243
|
|
435
|
|
—
|
|
2,030
|
Depreciation and
amortization of non-vehicle assets
|
166
|
|
16
|
|
2
|
|
12
|
|
196
|
|
182
|
|
19
|
|
10
|
|
14
|
|
225
|
Selling, general and
administrative
|
282
|
|
136
|
|
10
|
|
260
|
|
688
|
|
283
|
|
164
|
|
19
|
|
179
|
|
645
|
Interest expense,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
|
213
|
|
59
|
|
12
|
|
—
|
|
284
|
|
329
|
|
80
|
|
46
|
|
—
|
|
455
|
Non-vehicle
|
(15)
|
|
3
|
|
1
|
|
196
|
|
185
|
|
(70)
|
|
—
|
|
(6)
|
|
229
|
|
153
|
Total interest
expense, net
|
198
|
|
62
|
|
13
|
|
196
|
|
469
|
|
259
|
|
80
|
|
40
|
|
229
|
|
608
|
Technology-related
intangible and other asset
impairments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
20
|
|
—
|
|
193
|
|
213
|
Other (income) expense,
net
|
(10)
|
|
(1)
|
|
—
|
|
(10)
|
|
(21)
|
|
(21)
|
|
7
|
|
—
|
|
5
|
|
(9)
|
Reorganization items,
net
|
80
|
|
12
|
|
(1)
|
|
586
|
|
677
|
|
8
|
|
—
|
|
2
|
|
165
|
|
175
|
(Gain) from the sale of
a business
|
—
|
|
—
|
|
—
|
|
(400)
|
|
(400)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Change in fair value of
Public Warrants
|
—
|
|
—
|
|
—
|
|
627
|
|
627
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total
expenses
|
4,361
|
|
985
|
|
29
|
|
1,278
|
|
6,653
|
|
4,826
|
|
1,180
|
|
524
|
|
780
|
|
7,310
|
Income (loss) before
income taxes
|
$
1,854
|
|
$
—
|
|
$
107
|
|
$
(1,278)
|
|
683
|
|
$
(1,070)
|
|
$
(308)
|
|
$
106
|
|
$
(780)
|
|
(2,052)
|
Income tax
(provision) benefit
|
|
|
|
|
|
|
|
|
(318)
|
|
|
|
|
|
|
|
|
|
329
|
Net income
(loss)
|
|
|
|
|
|
|
|
|
365
|
|
|
|
|
|
|
|
|
|
(1,723)
|
Net (income) loss
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
9
|
Net income (loss)
attributable to Hertz Global
|
|
|
|
|
|
|
|
|
366
|
|
|
|
|
|
|
|
|
|
(1,714)
|
Series A
Preferred Stock deemed dividends
|
|
|
|
|
|
|
|
|
(450)
|
|
|
|
|
|
|
|
|
|
—
|
Net income (loss)
attributable to Hertz Global common
stockholders
|
|
|
|
|
|
|
|
|
$
(84)
|
|
|
|
|
|
|
|
|
|
$
(1,714)
|
|
|
|
Supplemental
Schedule II
|
|
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
RECONCILIATION OF
GAAP TO NON-GAAP MEASURE - ADJUSTED NET INCOME (LOSS), ADJUSTED
DILUTED EARNINGS (LOSS) PER SHARE AND ADJUSTED CORPORATE
EBITDA
|
Unaudited
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(In millions, except
per share data)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Adjusted Net
Income (Loss) and Adjusted Diluted Earnings (Loss) Per
Share:
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Hertz Global
|
$
(260)
|
|
$
(289)
|
|
$
366
|
|
$
(1,714)
|
Adjustments:
|
|
|
|
|
|
|
|
Income tax
provision (benefit)
|
125
|
|
(97)
|
|
318
|
|
(329)
|
Vehicle and
non-vehicle debt-related charges(a)(n)
|
13
|
|
22
|
|
129
|
|
66
|
Technology-related intangible and other asset
impairments(b)
|
—
|
|
20
|
|
—
|
|
213
|
Restructuring
and restructuring related charges(c)
|
4
|
|
10
|
|
76
|
|
64
|
Information
technology and finance transformation
costs(d)
|
(1)
|
|
8
|
|
12
|
|
42
|
Acquisition
accounting-related depreciation and
amortization(e)
|
7
|
|
13
|
|
43
|
|
54
|
Reorganization
items, net(f)
|
—
|
|
74
|
|
677
|
|
175
|
Pre-reorganization and non-debtor financing
charges(g)
|
—
|
|
20
|
|
42
|
|
109
|
Gain from the
Donlen Sale(h)
|
—
|
|
—
|
|
(400)
|
|
—
|
Change in fair
value of Public Warrants
|
643
|
|
—
|
|
627
|
|
—
|
Other
items(i)(q)
|
37
|
|
3
|
|
(45)
|
|
1
|
Adjusted pre-tax
income (loss)(j)
|
568
|
|
(216)
|
|
1,845
|
|
(1,319)
|
Income tax (provision)
benefit on adjusted pre-tax income (loss)(k)
|
(142)
|
|
29
|
|
(461)
|
|
172
|
Adjusted Net Income
(Loss)
|
$
426
|
|
$
(187)
|
|
$
1,384
|
|
$
(1,147)
|
Weighted-average
number of diluted shares outstanding
|
468
|
|
156
|
|
315
|
|
150
|
Adjusted Diluted
Earnings (Loss) Per Share(l)
|
$
0.91
|
|
$
(1.20)
|
|
$
4.39
|
|
$
(7.66)
|
Adjusted Corporate
EBITDA:
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Hertz Global
|
$
(260)
|
|
$
(289)
|
|
$
366
|
|
$
(1,714)
|
Adjustments:
|
|
|
|
|
|
|
|
Income tax
provision (benefit)
|
125
|
|
(97)
|
|
318
|
|
(329)
|
Non-vehicle
depreciation and amortization(m)
|
43
|
|
57
|
|
196
|
|
225
|
Non-vehicle
debt interest, net of interest income(n)
|
28
|
|
34
|
|
185
|
|
153
|
Vehicle
debt-related charges(a)(o)
|
10
|
|
18
|
|
72
|
|
55
|
Technology-related intangible and other asset
impairments(b)
|
—
|
|
20
|
|
—
|
|
213
|
Restructuring
and restructuring related charges(c)
|
4
|
|
10
|
|
76
|
|
64
|
Information
technology and finance transformation
costs(d)
|
(1)
|
|
8
|
|
12
|
|
42
|
Reorganization
items, net(f)
|
—
|
|
74
|
|
677
|
|
175
|
Pre-reorganization and non-debtor financing
charges(g)
|
—
|
|
20
|
|
42
|
|
109
|
Gain from the
Donlen Sale(h)
|
—
|
|
—
|
|
(400)
|
|
—
|
Change in fair
value of Public Warrants
|
643
|
|
—
|
|
627
|
|
—
|
Other
items(i)(p)
|
36
|
|
5
|
|
(41)
|
|
12
|
Adjusted Corporate
EBITDA
|
$
628
|
|
$
(140)
|
|
$
2,130
|
|
$
(995)
|
|
|
|
Supplemental Schedule
II (continued)
|
|
|
(a)
|
Represents
debt-related charges relating to the amortization of deferred
financing costs and debt discounts and premiums.
|
|
|
(b)
|
In 2020,
represents a $193 million impairment of
technology-related intangible assets and capitalized cloud
computing implementation costs related to the Company's
corporate operations ("Corporate") and a $20 million impairment of
the Hertz tradename in the Company's International RAC
segment.
|
|
|
(c)
|
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 year ended December 31, 2021, charges incurred were $36
million, $32 million and $8 million in Corporate, Americas RAC and
International RAC, respectively. For the year ended December 31,
2020, charges incurred were $39 million, $24 million and $1 million
in Americas RAC, Corporate and International RAC,
respectively.
|
|
|
(d)
|
Represents costs
associated with the Company's information technology and finance
transformation programs, both of which are multi-year initiatives
to upgrade and modernize the Company's systems and processes. These
costs relate primarily to Corporate.
|
|
|
(e)
|
Represents
incremental expense associated with the amortization of other
intangible assets and depreciation of property and equipment
relating to acquisition accounting.
|
|
|
(f)
|
Represents charges
incurred associated with the Reorganization and emergence from
Chapter 11, including professional fees. The charges relate
primarily to Corporate.
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(In
millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Professional fees and
other bankruptcy related costs
|
$
—
|
|
$
74
|
|
$
257
|
|
$
175
|
Loss on
extinguishment of debt
|
—
|
|
—
|
|
191
|
|
—
|
Backstop
fee
|
—
|
|
—
|
|
164
|
|
—
|
Breakup
fee
|
—
|
|
—
|
|
77
|
|
—
|
Contract
settlements
|
—
|
|
—
|
|
25
|
|
—
|
Cancellation of
share-based compensation grants
|
—
|
|
—
|
|
(10)
|
|
—
|
Net gain on
settlement of liabilities subject to compromise
|
—
|
|
—
|
|
(22)
|
|
—
|
Other, net
|
—
|
|
—
|
|
(5)
|
|
—
|
Reorganization items,
net
|
$
—
|
|
$
74
|
|
$
677
|
|
$
175
|
|
|
(g)
|
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 year ended December 31, 2021, charges incurred
were $17 million, $17 million, $6 million and $2 million in
Corporate, Americas RAC, International RAC and all other
operations, respectively. For the three months ended December 31,
2020, charges incurred were $11 million, $10 million, $2 million
and $(3) million in Americas RAC, Corporate, all other operations
and International RAC, respectively, and for the year ended
December 31, 2020 charges incurred were $46 million, $44
million, $13 million and $6 million in Corporate, Americas RAC,
International RAC and all other operations,
respectively.
|
|
|
(h)
|
Represents the gain
from the sale of the Company's Donlen business on March 30, 2021,
primarily associated with Corporate.
|
|
|
(i)
|
Represents
miscellaneous items. For 2021, includes $100 million
associated with the suspension of depreciation during the first
quarter for the Donlen business while classified as held for sale
in all other operations, partially offset by $17 million for
certain professional fees primarily associated with Corporate,
$14 million of charges related to the settlement of bankruptcy
claims primarily associated with Corporate, charges for a
multiemployer pension plan withdrawal liability recorded in
Corporate and letter of credit fees recorded primarily in
Corporate. For 2020, includes a $20 million gain on the sale
of non-vehicle capital assets in Americas RAC, which was recorded
in the first quarter, partially offset by charges of
$18 million for losses associated with certain vehicle damages
which were recorded in the second quarter in Americas
RAC.
|
|
|
|
Supplemental Schedule
II (continued)
|
|
|
(j)
|
Adjustments by
caption on a pre-tax basis were as follows:
|
|
|
Increase
(decrease) to expenses
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(In
millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Direct vehicle and
operating
|
$
(12)
|
|
$
(4)
|
|
$
33
|
|
$
(87)
|
Selling, general and
administrative
|
2
|
|
(25)
|
|
(90)
|
|
(129)
|
Interest expense,
net:
|
|
|
|
|
|
|
|
Vehicle
|
(10)
|
|
(32)
|
|
(91)
|
|
(105)
|
Non-vehicle
|
(3)
|
|
(4)
|
|
(57)
|
|
(11)
|
Total interest
expense, net
|
(13)
|
|
(36)
|
|
(148)
|
|
(116)
|
Intangible and other
asset impairments
|
—
|
|
(20)
|
|
—
|
|
(213)
|
Other income
(expense), net
|
(37)
|
|
(11)
|
|
(52)
|
|
(4)
|
Reorganization items,
net
|
—
|
|
(74)
|
|
(677)
|
|
(175)
|
Gain from the Donlen
Sale
|
—
|
|
—
|
|
400
|
|
—
|
Change in fair value
of Public Warrants
|
(643)
|
|
—
|
|
(627)
|
|
—
|
Total
adjustments
|
$
(703)
|
|
$
(170)
|
|
$
(1,161)
|
|
$
(724)
|
|
|
(k)
|
Derived utilizing a
combined statutory rate of 25% and 13% for the periods ended
December 31, 2021 and 2020, 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,
International RAC and Corporate for the three months ended
December 31, 2021 was $36 million, $4 million and
$3 million, respectively. For the three months ended
December 31, 2020 was $46 million, $5 million,
$2 million and $4 million for Americas RAC, International
RAC, All other operations and Corporate, respectively. Non-vehicle
depreciation and amortization for Americas RAC, International RAC,
All other operations and Corporate for the twelve months ended
December 31, 2021 were $166 million, $16 million,
$2 million and $12 million, respectively, and for the
twelve months ended December 31, 2020 were $182 million,
$19 million, $10 million and $14 million,
respectively.
|
|
|
(n)
|
In 2021, includes
$8 million of loss on extinguishment of debt associated with
the payoff and termination of non-vehicle debt in Corporate in the
second quarter of 2021.
|
|
|
(o)
|
Vehicle debt-related
charges for Americas RAC and International RAC for the three months
ended December 31, 2021 were $6 million and
$4 million, respectively. For the three months ended
December 31, 2020 vehicle debt-related charges for Americas
RAC, International RAC and All other operations were
$12 million, $4 million and $2 million,
respectively. Vehicle debt-related charges for Americas RAC,
International RAC and All other operations for the twelve months
ended December 31, 2021 were $53 million,
$16 million and $2 million, respectively, and for the
twelve months ended December 31, 2020 were $36 million,
$15 million and $4 million, respectively.
|
|
|
(p)
|
Also includes an
adjustment for non-cash stock-based compensation charges in
Corporate.
|
|
|
(q)
|
Also includes letter
of credit fees recorded in the second half of 2021 in
Corporate.
|
|
Supplemental
Schedule III
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
RECONCILIATION OF
GAAP TO NON-GAAP MEASURE - ADJUSTED OPERATING CASH
FLOW
AND ADJUSTED FREE
CASH FLOW
|
Unaudited
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(In
millions)
|
2021
|
|
2021
|
ADJUSTED OPERATING
CASH FLOW AND ADJUSTED FREE CASH FLOW:
|
|
|
|
Net cash provided by
(used in) operating activities
|
$
598
|
|
$
1,806
|
Depreciation and
reserves for revenue earning vehicles
|
(94)
|
|
(600)
|
Bankruptcy related
payments - post emergence
|
69
|
|
257
|
Adjusted operating
cash flow
|
573
|
|
1,463
|
Non-vehicle capital
asset expenditures, net
|
(31)
|
|
(55)
|
Adjusted operating
cash flow before vehicle investment
|
542
|
|
1,408
|
Net fleet growth
after financing
|
(32)
|
|
(1,980)
|
Noncontrolling
interests
|
(1)
|
|
(26)
|
Adjusted free cash
flow
|
$
509
|
|
$
(598)
|
|
|
|
|
CALCULATION OF NET
FLEET GROWTH AFTER FINANCING:
|
|
|
|
Revenue earning
vehicles expenditures
|
$
(1,958)
|
|
$
(7,154)
|
Proceeds from
disposal of revenue earning vehicles
|
873
|
|
2,818
|
Revenue earning
vehicles capital expenditures, net
|
(1,085)
|
|
(4,336)
|
Depreciation and
reserves for revenue earning vehicles
|
94
|
|
600
|
Financing activity
related to vehicles:
|
|
|
|
Borrowings
|
3,861
|
|
14,323
|
Payments
|
(3,144)
|
|
(12,607)
|
Restricted cash
changes, vehicle(a)
|
242
|
|
40
|
Net financing activity
related to vehicles
|
959
|
|
1,756
|
Net fleet growth
after financing
|
$
(32)
|
|
$
(1,980)
|
|
Note: Adjusted
free cash flow for the fourth quarter and full year 2020 are not
shown in the above table because they are not comparable to the
corresponding periods in 2021 due to the Company's
restructuring.
|
|
|
(a)
|
The twelve months
ended December 31, 2021 includes a $68 million impact related to
restricted cash classified as held for sale as of
December 31, 2020.
|
Supplemental
Schedule III (continued)
|
|
HERTZ GLOBAL
HOLDINGS, INC.
RECONCILIATION OF
GAAP TO NON-GAAP MEASURE - ADJUSTED OPERATING CASH
FLOW
AND ADJUSTED FREE
CASH FLOW
|
Unaudited
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(In
millions)
|
2019
|
|
2019
|
ADJUSTED OPERATING
CASH FLOW AND ADJUSTED FREE CASH FLOW:
|
|
|
|
Net cash provided by
(used in) operating activities
|
$
667
|
|
$
2,900
|
Depreciation and
reserves for revenue earning vehicles
|
(735)
|
|
(2,791)
|
Bankruptcy related
payments - post emergence
|
—
|
|
—
|
Adjusted operating
cash flow
|
(68)
|
|
109
|
Non-vehicle capital
asset expenditures, net
|
(48)
|
|
(197)
|
Adjusted operating
cash flow before vehicle investment
|
(116)
|
|
(88)
|
Net fleet growth
after financing
|
564
|
|
(161)
|
Noncontrolling
interests
|
(5)
|
|
47
|
Adjusted free cash
flow
|
$
443
|
|
$
(202)
|
|
|
|
|
CALCULATION OF NET
FLEET GROWTH AFTER FINANCING:
|
|
|
|
Revenue earning
vehicles expenditures
|
$
(2,178)
|
|
$
(13,714)
|
Proceeds from
disposal of revenue earning vehicles
|
3,293
|
|
9,486
|
Revenue earning
vehicles capital expenditures, net
|
1,115
|
|
(4,228)
|
Depreciation and
reserves for revenue earning vehicles
|
735
|
|
2,791
|
Financing activity
related to vehicles:
|
|
|
|
Borrowings
|
1,974
|
|
13,013
|
Payments
|
(2,992)
|
|
(11,530)
|
Restricted cash
changes, vehicle(a)
|
(268)
|
|
(207)
|
Net financing activity
related to vehicles
|
(1,286)
|
|
1,276
|
Net fleet growth
after financing
|
$
564
|
|
$
(161)
|
Supplemental
Schedule IV
|
|
HERTZ GLOBAL
HOLDINGS, INC.
NET DEBT
CALCULATION
|
Unaudited
|
|
|
As of
December 31, 2021
|
(In
millions)
|
Vehicle
|
|
Non-Vehicle
|
|
Total
|
Term loans
|
$
—
|
|
$
1,539
|
|
$
1,539
|
Senior
notes
|
—
|
|
1,500
|
|
1,500
|
U.S. vehicle
financing (HVF III)
|
7,001
|
|
—
|
|
7,001
|
International vehicle
financing (Various)
|
860
|
|
—
|
|
860
|
Other debt
|
93
|
|
16
|
|
109
|
Debt issue costs,
discounts and premiums
|
(33)
|
|
(69)
|
|
(102)
|
Debt as reported in the
balance sheet
|
7,921
|
|
2,986
|
|
10,907
|
Add:
|
|
|
|
|
|
Debt issue costs,
discounts and premiums
|
33
|
|
69
|
|
102
|
Less:
|
|
|
|
|
|
Cash and cash
equivalents
|
—
|
|
2,258
|
|
2,258
|
Restricted
cash
|
77
|
|
—
|
|
77
|
Restricted cash and
restricted cash equivalents associated with Term C Loan
|
—
|
|
245
|
|
245
|
Net Debt
|
$
7,877
|
|
$
552
|
|
$
8,429
|
|
|
|
|
|
|
Corporate leverage
ratio(a)
|
|
|
0.3x
|
|
|
|
|
Note: Net Debt at
December 31, 2020 is not shown in the above table because it
is not comparable to Net Debt at December 31, 2021 due to the
Company's restructuring.
|
|
|
(a)
|
Corporate leverage
ratio is calculated as non-vehicle net debt divided by Adjusted
Corporate EBITDA.
|
Supplemental
Schedule V
|
|
HERTZ GLOBAL
HOLDINGS, INC.
KEY METRICS
CALCULATIONS
REVENUE,
UTILIZATION AND DEPRECIATION
|
Unaudited
|
|
Global
RAC
|
|
|
Three Months
Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
Twelve Months
Ended
December 31,
|
|
Percent
Inc/(Dec)
|
($ in millions,
except where noted)
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
Total
RPD
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
1,949
|
|
$
1,093
|
|
|
|
$
7,200
|
|
$
4,628
|
|
|
Foreign currency
adjustment(a)
|
14
|
|
6
|
|
|
|
22
|
|
70
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
1,963
|
|
$
1,099
|
|
|
|
$
7,222
|
|
$
4,698
|
|
|
Transaction Days (in
thousands)
|
32,551
|
|
25,486
|
|
|
|
120,573
|
|
107,299
|
|
|
Total RPD (in
dollars)(c)
|
$
60.29
|
|
$
43.12
|
|
40%
|
|
$
59.90
|
|
$
43.78
|
|
37%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue Per
Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
1,963
|
|
$
1,099
|
|
|
|
$
7,222
|
|
$
4,698
|
|
|
Average Vehicles (in
whole units)
|
470,900
|
|
381,927
|
|
|
|
433,290
|
|
540,340
|
|
|
Total revenue per
unit (in whole dollars)
|
$
4,168
|
|
$
2,877
|
|
|
|
$
16,668
|
|
$
8,694
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
Total RPU Per Month
(in whole dollars)(c)
|
$
1,389
|
|
$
959
|
|
45%
|
|
$
1,389
|
|
$
724
|
|
92%
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
Utilization
|
|
|
|
|
|
|
|
|
|
|
|
Transaction Days (in
thousands)
|
32,551
|
|
25,486
|
|
|
|
120,573
|
|
107,299
|
|
|
Average Vehicles (in
whole units)
|
470,900
|
|
381,927
|
|
|
|
433,290
|
|
540,340
|
|
|
Number of days in
period (in whole units)
|
92
|
|
92
|
|
|
|
365
|
|
366
|
|
|
Available Car Days
(in thousands)
|
43,327
|
|
35,137
|
|
|
|
158,310
|
|
197,764
|
|
|
Vehicle
Utilization(b)
|
75 %
|
|
73 %
|
|
|
|
76 %
|
|
54 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation Per
Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
revenue earning vehicles and lease charges
|
$
78
|
|
$
315
|
|
|
|
$
497
|
|
$
1,595
|
|
|
Foreign currency
adjustment(a)
|
3
|
|
1
|
|
|
|
5
|
|
22
|
|
|
Adjusted depreciation
of revenue earning vehicles and
lease charges
|
$
81
|
|
$
316
|
|
|
|
$
502
|
|
$
1,617
|
|
|
Average Vehicles (in
whole units)
|
470,900
|
|
381,927
|
|
|
|
433,290
|
|
540,340
|
|
|
Adjusted depreciation
of revenue earning vehicles and
lease charges divided by Average Vehicles (in whole
dollars)
|
$
171
|
|
$
829
|
|
|
|
$
1,159
|
|
$
2,993
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
Depreciation Per Unit
Per Month (in whole dollars)
|
$
57
|
|
$
276
|
|
(79)%
|
|
$
97
|
|
$
249
|
|
(61)%
|
|
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.
|
|
|
(a)
|
Based on
December 31, 2020 foreign exchange rates.
|
|
|
(b)
|
Calculated as
Transaction Days divided by Available Car Days.
|
|
|
(c)
|
Effective during the
third quarter of 2021, the Company revised its calculation of Total
RPD and Total RPU to include ancillary retail vehicle
sales revenues.
|
Supplemental
Schedule V (continued)
|
|
HERTZ GLOBAL
HOLDINGS, INC.
KEY METRICS
CALCULATIONS
REVENUE,
UTILIZATION AND DEPRECIATION
|
Unaudited
|
|
Americas
RAC
|
|
|
Three Months
Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
Twelve Months
Ended
December 31,
|
|
Percent
Inc/(Dec)
|
($ in millions,
except where noted)
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
Total
RPD
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
1,691
|
|
$
899
|
|
|
|
$
6,215
|
|
$
3,756
|
|
|
Foreign currency
adjustment(a)
|
(1)
|
|
1
|
|
|
|
(3)
|
|
3
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
1,690
|
|
$
900
|
|
|
|
$
6,212
|
|
$
3,759
|
|
|
Transaction Days (in
thousands)
|
27,215
|
|
20,754
|
|
|
|
100,085
|
|
85,016
|
|
|
Total RPD (in
dollars)(c)
|
$
62.10
|
|
$
43.35
|
|
43%
|
|
$
62.07
|
|
$
44.22
|
|
40%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue Per
Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
1,690
|
|
$
900
|
|
|
|
$
6,212
|
|
$
3,759
|
|
|
Average Vehicles (in
whole units)
|
384,492
|
|
308,107
|
|
|
|
355,647
|
|
437,547
|
|
|
Total revenue per
unit (in whole dollars)
|
$
4,396
|
|
$
2,920
|
|
|
|
$
17,467
|
|
$
8,591
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
Total RPU Per Month
(in whole dollars)(c)
|
$
1,465
|
|
$
973
|
|
51%
|
|
$
1,456
|
|
$
716
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
Utilization
|
|
|
|
|
|
|
|
|
|
|
|
Transaction Days (in
thousands)
|
27,215
|
|
20,754
|
|
|
|
100,085
|
|
85,016
|
|
|
Average Vehicles (in
whole units)
|
384,492
|
|
308,107
|
|
|
|
355,647
|
|
437,547
|
|
|
Number of days in
period (in whole units)
|
92
|
|
92
|
|
|
|
365
|
|
366
|
|
|
Available Car Days
(in thousands)
|
35,377
|
|
28,347
|
|
|
|
129,944
|
|
160,142
|
|
|
Vehicle
Utilization(b)
|
77%
|
|
73%
|
|
|
|
77%
|
|
53%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation Per
Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
revenue earning vehicles and lease
charges
|
$
30
|
|
$
272
|
|
|
|
$
343
|
|
$
1,352
|
|
|
Foreign currency
adjustment(a)
|
—
|
|
—
|
|
|
|
—
|
|
1
|
|
|
Adjusted depreciation
of revenue earning vehicles and
lease charges
|
$
30
|
|
$
272
|
|
|
|
$
343
|
|
$
1,353
|
|
|
Average Vehicles (in
whole units)
|
384,492
|
|
308,107
|
|
|
|
355,647
|
|
437,547
|
|
|
Adjusted depreciation
of revenue earning vehicles and
lease charges divided by Average Vehicles (in whole
dollars)
|
$
77
|
|
$
883
|
|
|
|
$
964
|
|
$
3,093
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
Depreciation Per Unit
Per Month (in whole dollars)
|
$
26
|
|
$
294
|
|
(91)%
|
|
$
80
|
|
$
258
|
|
(69)%
|
|
|
NM - Not
meaningful
|
|
|
(a)
|
Based on
December 31, 2020 foreign exchange rates.
|
|
|
(b)
|
Calculated as
Transaction Days divided by Available Car Days.
|
|
|
(c)
|
Effective during the
third quarter of 2021, the Company revised its calculation of Total
RPD and Total RPU to include ancillary retail vehicle
sales revenues.
|
Supplemental
Schedule V (continued)
|
|
HERTZ GLOBAL
HOLDINGS, INC.
KEY METRICS
CALCULATIONS
REVENUE,
UTILIZATION AND DEPRECIATION
|
Unaudited
|
|
International
RAC
|
|
|
Three Months
Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
Twelve Months
Ended
December 31,
|
|
Percent
Inc/(Dec)
|
($
in millions, except where noted)
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
Total
RPD
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
258
|
|
$
194
|
|
|
|
$
985
|
|
$
872
|
|
|
Foreign currency
adjustment(a)
|
14
|
|
5
|
|
|
|
25
|
|
66
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
272
|
|
$
199
|
|
|
|
$
1,010
|
|
$
938
|
|
|
Transaction Days (in
thousands)
|
5,335
|
|
4,732
|
|
|
|
20,488
|
|
22,283
|
|
|
Total RPD (in
dollars)(c)
|
$
51.06
|
|
$
42.11
|
|
21%
|
|
$
49.30
|
|
$
42.12
|
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue Per
Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
272
|
|
$
199
|
|
|
|
$
1,010
|
|
$
938
|
|
|
Average Vehicles (in
whole units)
|
86,408
|
|
73,820
|
|
|
|
77,643
|
|
102,793
|
|
|
Total revenue per
unit (in whole dollars)
|
$
3,153
|
|
$
2,699
|
|
|
|
$
13,009
|
|
$
9,130
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
Total RPU Per Month
(in whole dollars)(c)
|
$
1,051
|
|
$
900
|
|
17%
|
|
$
1,084
|
|
$
761
|
|
42%
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
Utilization
|
|
|
|
|
|
|
|
|
|
|
|
Transaction Days (in
thousands)
|
5,335
|
|
4,732
|
|
|
|
20,488
|
|
22,283
|
|
|
Average Vehicles (in
whole units)
|
86,408
|
|
73,820
|
|
|
|
77,643
|
|
102,793
|
|
|
Number of days in
period (in whole units)
|
92
|
|
92
|
|
|
|
365
|
|
366
|
|
|
Available Car Days
(in thousands)
|
7,950
|
|
6,792
|
|
|
|
28,366
|
|
37,622
|
|
|
Vehicle
Utilization(b)
|
67%
|
|
70%
|
|
|
|
72%
|
|
59%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation Per
Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
revenue earning vehicles and lease
charges
|
$
48
|
|
$
43
|
|
|
|
$
154
|
|
$
243
|
|
|
Foreign currency
adjustment(a)
|
3
|
|
1
|
|
|
|
5
|
|
21
|
|
|
Adjusted depreciation
of revenue earning vehicles and
lease charges
|
$
51
|
|
$
44
|
|
|
|
$
159
|
|
$
264
|
|
|
Average Vehicles (in
whole units)
|
86,408
|
|
73,820
|
|
|
|
77,643
|
|
102,793
|
|
|
Adjusted depreciation
of revenue earning vehicles and
lease charges divided by Average Vehicles (in whole
dollars)
|
$
590
|
|
$
600
|
|
|
|
$
2,051
|
|
$
2,567
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
Depreciation Per Unit
Per Month (in whole dollars)
|
$
197
|
|
$
200
|
|
(2)%
|
|
$
171
|
|
$
214
|
|
(20)%
|
|
|
(a)
|
Based on
December 31, 2020 foreign exchange rates.
|
|
(b)
|
Calculated as
Transaction Days divided by Available Car Days.
|
|
(c)
|
Effective during the
third quarter of 2021, the Company revised its calculation of Total
RPD and Total RPU to include ancillary retail vehicle
sales revenues.
|
Supplemental
Schedule VI
|
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
RECAST OF
HISTORICAL SEGMENT FINANCIAL INFORMATION AND KEY
METRICS
Unaudited
|
|
|
|
|
Three Months Ended
December 31, 2020
|
|
(In
millions)
|
U.S.
RAC
|
|
Adjustments(a)
|
|
Americas
RAC
|
|
International
RAC
|
|
Adjustments(a)
|
|
International
RAC
|
|
(historical
segmentation)
|
(new
segmentation)
|
|
Revenues
|
$
876
|
|
$
23
|
|
$
899
|
|
$
217
|
|
$
(23)
|
|
$
194
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct vehicle and
operating
|
680
|
|
-31
|
|
649
|
|
163
|
|
-18
|
|
145
|
|
Depreciation of
revenue earning
vehicles and lease charges
|
269
|
|
3
|
|
272
|
|
46
|
|
-4
|
|
42
|
|
Depreciation and
amortization of non-
vehicle assets
|
—
|
|
46
|
|
46
|
|
—
|
|
5
|
|
5
|
|
Selling, general and
administrative
|
50
|
|
3
|
|
53
|
|
38
|
|
-3
|
|
35
|
|
Interest expense,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
|
63
|
|
1
|
|
64
|
|
21
|
|
-1
|
|
20
|
|
Non-vehicle
|
-1
|
|
—
|
|
-1
|
|
—
|
|
—
|
|
—
|
|
Total interest
expense, net
|
62
|
|
1
|
|
63
|
|
21
|
|
-1
|
|
20
|
|
Technology-related
intangible and
other asset impairments
|
—
|
|
—
|
|
—
|
|
20
|
|
—
|
|
20
|
|
Other (income)
expense, net
|
1
|
|
—
|
|
1
|
|
3
|
|
—
|
|
3
|
|
Reorganization items,
net
|
8
|
|
—
|
|
8
|
|
—
|
|
—
|
;
|
—
|
|
Total
expenses
|
1,070
|
|
22
|
|
1,092
|
|
291
|
|
-21
|
|
270
|
|
Income (loss) before
income taxes
|
$
(194)
|
|
$
1
|
|
$
(193)
|
|
$
(74)
|
|
$
(2)
|
|
$
(76)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
(113)
|
|
$
5
|
|
$
(108)
|
|
$
(41)
|
|
$
(5)
|
|
$
(46)
|
|
Adjusted EBITDA
Margin
|
-13%
|
|
22%
|
|
-12%
|
|
-19%
|
|
22%
|
|
-24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Vehicles (in
whole units)
|
298,183
|
|
9,924
|
|
308,107
|
|
83,744
|
|
-9,924
|
|
73,820
|
|
Vehicle
Utilization
|
74%
|
|
63%
|
|
73%
|
|
69%
|
|
-63%
|
|
70%
|
|
Transaction Days (in
thousands)
|
20,178
|
|
576
|
|
20,754
|
|
5,308
|
|
-576
|
|
4,732
|
|
Total RPD (in
dollars)(b)(c)
|
$
43.10
|
|
$
42.17
|
|
$
43.35
|
|
$
42.09
|
|
$
(41.89)
|
|
$
42.11
|
|
Total RPU Per Month
(in whole
dollars)(b)(c)
|
$
972
|
|
$
817
|
|
$
973
|
|
$
889
|
|
$
(811)
|
|
$
900
|
|
Depreciation Per Unit
Per Month (in
whole dollars)(b)
|
$
301
|
|
$
135
|
|
$
294
|
|
$
189
|
|
$
(135)
|
|
$
200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Reflects the
adjustments related to (i) the revision of the Company's
reportable segments to include Canada, Latin America and the
Caribbean in its Americas RAC segment, (ii) the callout of
non-vehicle depreciation and amortization on a separate line in the
income
statement, and (iii) the inclusion of ancillary retail vehicle
sales revenues as discussed below.
|
|
|
(b)
|
Based on
December 31, 2020 foreign exchange rates.
|
|
|
(c)
|
Effective during the
third quarter of 2021, the Company revised its calculation of Total
RPD and Total RPU to include ancillary retail vehicle sales
revenues primarily impacting the Americas RAC segment.
|
Supplemental
Schedule VI (continued)
|
|
HERTZ GLOBAL
HOLDINGS, INC.
RECAST OF
HISTORICAL SEGMENT FINANCIAL INFORMATION AND KEY
METRICS
Unaudited
|
|
|
Three Months Ended
December 31, 2019
|
(In
millions)
|
U.S.
RAC
|
|
Adjustments(a)
|
|
Americas
RAC
|
|
International
RAC
(historical
segmentation)
|
|
Adjustments(a)
|
|
International
RAC
(new
segmentation)
|
Revenues
|
$
1,673
|
|
$
53
|
|
$
1,726
|
|
$
474
|
|
$
(53)
|
|
$
421
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Direct vehicle and
operating
|
1,019
|
|
1
|
|
1,020
|
|
312
|
|
(44)
|
|
268
|
Depreciation of
revenue earning
vehicles and lease charges
|
439
|
|
15
|
|
454
|
|
111
|
|
(15)
|
|
96
|
Depreciation and
amortization of non-
vehicle assets
|
—
|
|
41
|
|
41
|
|
—
|
|
4
|
|
4
|
Selling, general and
administrative
|
126
|
|
2
|
|
128
|
|
51
|
|
(4)
|
|
47
|
Interest expense,
net:
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
|
85
|
|
2
|
|
87
|
|
23
|
|
(2)
|
|
21
|
Non-vehicle
|
(47)
|
|
—
|
|
(47)
|
|
—
|
|
—
|
|
—
|
Total interest
expense, net
|
38
|
|
2
|
|
40
|
|
23
|
|
(2)
|
|
21
|
Other (income)
expense, net
|
(22)
|
|
—
|
|
(22)
|
|
(1)
|
|
—
|
|
(1)
|
Total
expenses
|
1,600
|
|
61
|
|
1,661
|
|
496
|
|
(61)
|
|
435
|
Income (loss) before
income taxes
|
$
73
|
|
$
(8)
|
|
$
65
|
|
$
(22)
|
|
$
8
|
|
$
(14)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
48
|
|
$
(5)
|
|
$
43
|
|
$
(10)
|
|
$
5
|
|
$
(5)
|
Adjusted EBITDA
Margin
|
3%
|
|
(9)%
|
|
2%
|
|
(2)%
|
|
(9)%
|
|
(1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Vehicles (in
whole units)
|
516,726
|
|
19,339
|
|
536,065
|
|
169,971
|
|
(19,339)
|
|
150,632
|
Vehicle
Utilization
|
79%
|
|
64%
|
|
79%
|
|
72%
|
|
(64)%
|
|
73%
|
Transaction Days (in
thousands)
|
37,706
|
|
1,145
|
|
38,851
|
|
11,256
|
|
(1,145)
|
|
10,111
|
Total RPD (in
dollars)(b)(c)
|
$
43.54
|
|
$
48.15
|
|
$
44.45
|
|
$
45.96
|
|
$
(47.35)
|
|
$
45.79
|
Total RPU Per Month
(in
whole dollars)(b)(c)
|
$
1,059
|
|
$
954
|
|
$
1,074
|
|
$
1,014
|
|
$
(935)
|
|
$
1,024
|
Depreciation Per Unit
Per Month (in
whole dollars)(b)
|
$
283
|
|
$
259
|
|
$
282
|
|
$
237
|
|
$
(259)
|
|
$
234
|
|
|
(a)
|
Reflects the
adjustments related to (i) the revision of the Company's
reportable segments to include Canada, Latin America and the
Caribbean in its Americas RAC segment, (ii) the callout
of non-vehicle depreciation and amortization on a separate
line in the income statement, and (iii) the inclusion of
ancillary retail vehicle sales revenues as discussed
below.
|
(b)
|
Based on
December 31, 2020 foreign exchange rates.
|
(c)
|
Effective during the
third quarter of 2021, the Company revised its calculation of Total
RPD and Total RPU to include ancillary retail vehicle
sales revenues primarily impacting the Americas RAC
segment.
|
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 Diluted EPS")
Adjusted Net Income (Loss) represents income or loss
attributable to the Company as adjusted to eliminate the impact of
GAAP income tax, debt-related charges and losses, restructuring and
restructuring related charges, intangible and tangible asset
impairments and write-downs, information technology and finance
transformation costs, non-cash acquisition accounting charges,
reorganization items, pre-reorganization and non-debtor financing
charges, gain from the sale of a business and certain other
miscellaneous items on a pre-tax basis. Adjusted Net Income (Loss)
includes a provision (benefit) for income taxes derived utilizing a
combined statutory rate. The combined statutory rate is
management's estimate of the Company's long-term tax rate. Its most
comparable GAAP measure is net income (loss) attributable to the
Company.
Adjusted Diluted EPS represents Adjusted Net Income (Loss) on a
per diluted share basis using the weighted-average number of
diluted shares outstanding for the period. Its most comparable GAAP
measure is diluted earnings (loss) per share.
Adjusted Net Income (Loss) and Adjusted Diluted EPS are
important 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, net non-vehicle
debt interest, vehicle debt-related charges and losses,
restructuring and restructuring related charges, goodwill,
intangible and tangible asset impairments and write-downs,
information technology and finance transformation costs,
reorganization items, pre-reorganization and non-debtor financing
charges, gain from the sale of a business and certain other
miscellaneous items.
Adjusted Corporate EBITDA Margin is calculated as the ratio of
Adjusted Corporate EBITDA to total revenues.
Management uses these measures as operating performance metrics
for internal monitoring and planning purposes, including the
preparation of the Company's annual operating budget and monthly
operating reviews, and 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 also excludes
the impact of noncontrolling interests which primarily eliminates
proceeds from vehicle sales upon consolidation of the Company, but
not the associated repayment of vehicle debt. 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 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.
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 during 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 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 fleet
capacity, or asset efficiency.
Historically, the Company excluded revenue generated from
ancillary retail vehicles sales. Effective during 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. 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")
Vehicle Utilization represents the ratio of Transaction Days to
Available Car Days. This metric is important to management and
investors as it measures the proportion of vehicles that are being
used to generate revenues relative to fleet capacity.
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SOURCE Hertz Global Holdings, Inc.