"Our strong results in the fourth
quarter and record performance last year reflect a commitment to
customers - from leisure and corporate travelers to ride share
drivers. With a focus on asset return and risk management, we
showed better operating performance, more disciplined fleet
management and a commitment to financial returns," said
Stephen Scherr, Hertz chair and
chief executive officer. "Our team delivered on renewed demand for
travel, which is continuing. In 2023, we will build on our progress
to grow our business across the Hertz, Dollar, and
Thrifty brands. We look to our investments
in electrification and technology to yield increasing operating
leverage and improved returns and an even better product to our
customers around the world."
ESTERO,
Fla., Feb. 7, 2023 /PRNewswire/ -- Hertz Global
Holdings, Inc. (NASDAQ: HTZ) ("Hertz", "Hertz Global" or the
"Company") today reported results for its fourth quarter and full
year 2022.
For the fourth quarter 2022, the Company generated total
revenues of $2.0 billion, up 4%
from the fourth quarter of 2021, and up 7% on a constant currency
basis. RPD and RPU were at fourth quarter record levels and volume
was up 3% led by post-pandemic demand recovery. Depreciation
continued to normalize during the quarter. Excluding litigation
settlements of $168 million in the
quarter, direct operating expense per transaction day was
$33, down $2 from the third quarter 2022, demonstrating
improved operating leverage. Net income was $116 million and Adjusted Corporate EBITDA was
$309 million, a 15% margin. For the
quarter, loss per share was $0.01 and
adjusted earnings per share was $0.50.
Operating cash flow was $277
million for the quarter. Fleet capex of $312 million was a source of cash in the fourth
quarter, driven by fleet rejuvenation and seasonal defleeting. As a
result, adjusted free cash flow was $424
million, reflecting a 137% conversion from Adjusted
Corporate EBITDA. The Company acquired 19 million shares, or 6% of
its common stock, during the quarter.
HIGHLIGHTS
Q4 2022
- Revenue of $2.0 billion
- GAAP net income of $116 million,
or $(0.01) per diluted share
- Adjusted net income of $173
million, or $0.50 per diluted
share
- Adjusted Corporate EBITDA of $309
million, a 15% margin
- Operating cash flow of $277
million
- Adj. operating cash flow of $156
million; adj. free cash flow of $424
million
FY 2022
- Revenue of $8.7 billion
- Record GAAP net income of $2.1
billion, or $3.36 per diluted
share
- Record adjusted net income of $1.5
billion, or $3.74 per diluted
share
- Record Adjusted Corporate EBITDA of $2.3
billion, a 27% margin
- Operating cash flow of $2.5
billion
- Record adj. operating cash flow of $2.0
billion and adj. free cash flow of $1.5 billion
- Corporate liquidity of $2.5
billion at December 31st,
including $943 million in
unrestricted cash
- Company repurchased 128 million common shares during 2022, a
28.5% reduction of its capital base
SUMMARY RESULTS
|
Three Months Ended
December 31,
|
Percent
Inc/(Dec)
2022 vs 2021
|
|
($ in millions, except earnings per share or where
noted)
|
2022
|
|
2021
|
|
|
Hertz Global - Consolidated
|
|
|
|
|
|
|
Total
revenues
|
$
2,035
|
|
$
1,949
|
|
4 %
|
|
Adjusted net income
(loss)(a)
|
$
173
|
|
$
426
|
|
(59) %
|
|
Adjusted diluted
earnings (loss) per share(a)
|
$
0.50
|
|
$
0.91
|
|
(45) %
|
|
Adjusted Corporate
EBITDA(a)
|
$
309
|
|
$
628
|
|
(51) %
|
|
Adjusted Corporate
EBITDA Margin(a)
|
15 %
|
|
32 %
|
|
|
|
|
|
|
|
|
|
Average Vehicles (in
whole units)
|
496,926
|
|
470,900
|
|
6 %
|
|
Average Rentable
Vehicles (in whole units)
|
465,943
|
|
454,000
|
|
3 %
|
|
Vehicle
Utilization
|
79 %
|
|
78 %
|
|
|
|
Transaction Days (in
thousands)
|
33,673
|
|
32,551
|
|
3 %
|
|
Total RPD (in
dollars)(b)
|
$
61.65
|
|
$
59.80
|
|
3 %
|
|
Total RPU Per Month (in
whole dollars)(b)
|
$
1,485
|
|
$
1,429
|
|
4 %
|
|
Depreciation Per Unit
Per Month (in whole dollars)(b)
|
$
244
|
|
$
55
|
|
NM
|
|
|
|
|
|
|
|
Americas RAC Segment
|
|
|
|
|
|
|
Total
revenues
|
$
1,707
|
|
$
1,691
|
|
1 %
|
|
Adjusted
EBITDA
|
$
318
|
|
$
653
|
|
(51) %
|
|
Adjusted EBITDA
Margin
|
19 %
|
|
39 %
|
|
|
|
|
|
|
|
|
|
Average Vehicles (in
whole units)
|
398,860
|
|
384,492
|
|
4 %
|
|
Average Rentable
Vehicles (in whole units)
|
370,723
|
|
368,434
|
|
1 %
|
|
Vehicle
Utilization
|
80 %
|
|
80 %
|
|
|
|
Transaction Days (in
thousands)
|
27,367
|
|
27,215
|
|
1 %
|
|
Total RPD (in
dollars)(b)
|
$
62.50
|
|
$
62.11
|
|
1 %
|
|
Total RPU Per Month (in
whole dollars)(b)
|
$
1,538
|
|
$
1,529
|
|
1 %
|
|
Depreciation Per Unit
Per Month (in whole dollars)(b)
|
$
278
|
|
$
26
|
|
NM
|
|
|
|
|
|
|
|
International RAC Segment
|
|
|
|
|
|
|
Total
revenues
|
$
328
|
|
$
258
|
|
27 %
|
|
Adjusted
EBITDA
|
$
81
|
|
$
21
|
|
NM
|
|
Adjusted EBITDA
Margin
|
25 %
|
|
8 %
|
|
|
|
|
|
|
|
|
|
Average Vehicles (in
whole units)
|
98,065
|
|
86,408
|
|
13 %
|
|
Average Rentable
Vehicles (in whole units)
|
95,221
|
|
85,565
|
|
11 %
|
|
Vehicle
Utilization
|
72 %
|
|
68 %
|
|
|
|
Transaction Days (in
thousands)
|
6,305
|
|
5,335
|
|
18 %
|
|
Total RPD (in
dollars)(b)
|
$
57.98
|
|
$
48.01
|
|
21 %
|
|
Total RPU Per Month (in
whole dollars)(b)
|
$
1,280
|
|
$
998
|
|
28 %
|
|
Depreciation Per Unit
Per Month (in whole dollars)(b)
|
$
104
|
|
$
184
|
|
(44) %
|
|
|
|
NM - Not
meaningful
|
|
(a)
|
Represents a non-GAAP
measure. See the accompanying reconciliations included in
Supplemental Schedule II for 2022 and 2021.
|
|
(b)
|
Based on December 31,
2021 foreign exchange rates.
|
LIQUIDITY AND CAPITAL RESOURCES
In December 2022, the Company
amended its European ABS facility to add the fleet in Italy, increase aggregate maximum borrowings
to €1.1 billion and extend the maturity from October 2023 to November
2024.
During the fourth quarter 2022, the Company repurchased 19
million shares for $315 million and
has over $1.1 billion remaining under
the Board's authorization.
The Company's liquidity position was $2.5
billion at December 31, 2022,
of which $943 million was
unrestricted cash.
EARNINGS WEBCAST INFORMATION
Hertz Global's live webcast and conference call to discuss its
fourth quarter and full year 2022 results will be held on
February 7, 2023, at 8:30 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
https://register.vevent.com/register/BI78420368890940eab75ec4e147ae0783,
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
Following is selected financial data of Hertz Global. Also
included are Supplemental Schedules, which are provided to present
segment results, and reconciliations of non-GAAP measures to their
most comparable GAAP measure. Following the Supplemental Schedules,
the Company provides definitions for terminology used throughout
the earnings release and its view of the usefulness of non-GAAP
measures to investors and management.
In the first quarter of 2022, the Company began using Average
Rentable Vehicles when calculating Available Car Days, Total RPU
and Utilization instead of Average Vehicles. Average Rentable
Vehicles excludes vehicles for sale on the Company's retail lots or
actively in the process of being sold through other disposition
channels. Prior periods have been restated to conform with the
revisions, as appropriate. The Company has also restated historical
quarterly and annual periods beginning with first quarter 2018 to
reflect this change and has posted this information to its investor
relations website at IR.Hertz.com.
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 Company's ability to purchase adequate supplies of
competitively priced vehicles at a reasonable cost in order to
efficiently service rental demand, including as a result of
disruptions in the global supply chain;
- the Company's ability to attract and retain effective
frontline employees and senior management and other 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 including in critical geographies;
- 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 or
strategic transactions, 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 impacting the mobility industry;
- the mix of program and non-program vehicles in the Company's
fleet can lead to increased exposure to residual risk upon
disposition;
- financial instability of the manufacturers of the Company's
vehicles, which could impact their ability to fulfill obligations
under repurchase or guaranteed depreciation programs;
- an increase in the Company's vehicle costs or disruption to
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 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 effectively manage its union
relations and labor agreement negotiations;
- the Company's ability, and that of its key third-party
partners, to prevent the misuse or theft of information the Company
possesses, including as a result of cyber security breaches and
other security threats, as well as to comply with privacy
regulations across the globe;
- a major disruption in the Company's communication or
centralized information networks or a failure to maintain, upgrade
and consolidate its information technology systems;
- 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;
- changes in laws, regulations, policies or other activities
of governments, agencies and similar organizations, including those
related to accounting principles, that affect the Company's
operations, its costs or applicable tax rates;
- the recoverability of the Company's goodwill and
indefinite-lived intangible assets when performing impairment
analysis;
- costs and risks associated with potential litigation and
investigations, compliance with and changes in laws and regulations
and potential exposures under environmental laws and
regulations;
- the Company's ability to comply with ESG regulations, meet
increasing ESG expectations of stakeholders, and otherwise achieve
its ESG goals;
- the availability of additional or continued sources of
financing at acceptable rates for the Company's revenue earning
vehicles and to refinance its existing indebtedness;
- volatility in the Company's stock price and certain
provisions of its charter documents which could negatively affect
the market price of the Company's common stock;
- the Company's ability to effectively maintain effective
internal controls over financial reporting; and
- the Company's ability to implement an effective business
continuity plan to protect the business in exigent
circumstances.
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)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Revenues
|
$
2,035
|
|
$
1,949
|
|
$
8,685
|
|
$
7,336
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Direct vehicle and
operating
|
1,274
|
|
1,065
|
|
4,808
|
|
3,920
|
|
Depreciation of
revenue earning vehicles and lease charges, net
|
360
|
|
78
|
|
701
|
|
497
|
|
Non-vehicle
depreciation and amortization
|
37
|
|
43
|
|
142
|
|
196
|
|
Selling, general and
administrative
|
221
|
|
188
|
|
959
|
|
688
|
|
Interest expense,
net:
|
|
|
|
|
|
|
|
|
Vehicle
|
82
|
|
41
|
|
159
|
|
284
|
|
Non-vehicle
|
46
|
|
28
|
|
169
|
|
185
|
|
Total interest
expense, net
|
128
|
|
69
|
|
328
|
|
469
|
|
Other (income)
expense, net
|
8
|
|
(1)
|
|
2
|
|
(21)
|
|
Reorganization items,
net
|
—
|
|
—
|
|
—
|
|
677
|
|
(Gain) from the sale
of a business
|
—
|
|
—
|
|
—
|
|
(400)
|
|
Change in fair value
of Public Warrants
|
(120)
|
|
643
|
|
(704)
|
|
627
|
|
Total
expenses
|
1,908
|
|
2,085
|
|
6,236
|
|
6,653
|
|
Income (loss) before
income taxes
|
127
|
|
(136)
|
|
2,449
|
|
683
|
|
Income tax (provision)
benefit
|
(11)
|
|
(125)
|
|
(390)
|
|
(318)
|
|
Net income
(loss)
|
116
|
|
(261)
|
|
2,059
|
|
365
|
|
Net (income) loss
attributable to noncontrolling interests
|
—
|
|
1
|
|
—
|
|
1
|
|
Net income (loss)
attributable to Hertz Global
|
116
|
|
(260)
|
|
2,059
|
|
366
|
|
Series A Preferred
Stock deemed dividends
|
—
|
|
(450)
|
|
—
|
|
(450)
|
|
Net income (loss)
available to Hertz Global common stockholders
|
$
116
|
|
$
(710)
|
|
$
2,059
|
|
$
(84)
|
|
Weighted average number
of shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
332
|
|
468
|
|
379
|
|
315
|
|
Diluted
|
347
|
|
468
|
|
403
|
|
315
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.35
|
|
$
(1.52)
|
|
$
5.43
|
|
$
(0.27)
|
|
Diluted
|
$
(0.01)
|
|
$
(1.52)
|
|
$
3.36
|
|
$
(0.27)
|
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
|
|
(In millions, except par value and share
data)
|
December 31,
2022
|
|
December 31,
2021
|
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
943
|
|
$
2,258
|
|
Restricted cash and
cash equivalents:
|
|
|
|
|
Vehicle
|
180
|
|
77
|
|
Non-vehicle
|
295
|
|
316
|
|
Total restricted cash
and cash equivalents
|
475
|
|
393
|
|
Total cash and cash
equivalents and restricted cash and cash equivalents
|
1,418
|
|
2,651
|
|
Receivables:
|
|
|
|
|
Vehicle
|
111
|
|
62
|
|
Non-vehicle, net of
allowance of $45 and $48, respectively
|
863
|
|
696
|
|
Total receivables,
net
|
974
|
|
758
|
|
Prepaid expenses and
other assets
|
1,155
|
|
1,017
|
|
Revenue earning
vehicles:
|
|
|
|
|
Vehicles
|
14,281
|
|
10,836
|
|
Less: accumulated
depreciation
|
(1,786)
|
|
(1,610)
|
|
Total revenue earning
vehicles, net
|
12,495
|
|
9,226
|
|
Property and equipment,
net
|
637
|
|
608
|
|
Operating lease
right-of-use assets
|
1,887
|
|
1,566
|
|
Intangible assets,
net
|
2,887
|
|
2,912
|
|
Goodwill
|
1,044
|
|
1,045
|
|
Total
assets
|
$
22,497
|
|
$
19,783
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
Accounts
payable:
|
|
|
|
|
Vehicle
|
$
79
|
|
$
56
|
|
Non-vehicle
|
578
|
|
516
|
|
Total accounts
payable
|
657
|
|
572
|
|
Accrued
liabilities
|
911
|
|
863
|
|
Accrued taxes,
net
|
170
|
|
157
|
|
Debt:
|
|
|
|
|
Vehicle
|
10,886
|
|
7,921
|
|
Non-vehicle
|
2,977
|
|
2,986
|
|
Total debt
|
13,863
|
|
10,907
|
|
Public
Warrants
|
617
|
|
1,324
|
|
Operating lease
liabilities
|
1,802
|
|
1,510
|
|
Self-insured
liabilities
|
472
|
|
463
|
|
Deferred income taxes,
net
|
1,360
|
|
1,010
|
|
Total
liabilities
|
19,852
|
|
16,806
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock, $0.01
par value, no shares issued and outstanding
|
—
|
|
—
|
|
Common stock, $0.01 par
value, 478,914,062 and 477,233,278 shares issued,
respectively, and
323,483,178 and 449,782,424 shares outstanding,
respectively
|
5
|
|
5
|
|
Treasury stock, at
cost, 155,430,884 and 27,450,854 common shares,
respectively
|
(3,136)
|
|
(708)
|
|
Additional paid-in
capital
|
6,326
|
|
6,209
|
|
Retained earnings
(Accumulated deficit)
|
(256)
|
|
(2,315)
|
|
Accumulated other
comprehensive income (loss)
|
(294)
|
|
(214)
|
|
Total stockholders'
equity
|
2,645
|
|
2,977
|
|
Total liabilities and
stockholders' equity
|
$
22,497
|
|
$
19,783
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
(In millions)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
116
|
|
$
(261)
|
|
$
2,059
|
|
$
365
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
reserves for revenue earning vehicles, net
|
298
|
|
94
|
|
809
|
|
600
|
|
Depreciation and
amortization, non-vehicle
|
37
|
|
43
|
|
142
|
|
196
|
|
Amortization of
deferred financing costs and debt discount (premium)
|
15
|
|
13
|
|
53
|
|
122
|
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
—
|
|
8
|
|
Stock-based
compensation charges
|
34
|
|
7
|
|
130
|
|
10
|
|
Provision for
receivables allowance
|
15
|
|
30
|
|
57
|
|
125
|
|
Deferred income taxes,
net
|
—
|
|
145
|
|
301
|
|
270
|
|
Reorganization items,
net
|
—
|
|
—
|
|
—
|
|
314
|
|
(Gain) loss from the
sale of a business
|
—
|
|
—
|
|
—
|
|
(400)
|
|
(Gain) loss on sale of
non-vehicle capital assets
|
—
|
|
—
|
|
(5)
|
|
(8)
|
|
Change in fair value
of Public Warrants
|
(120)
|
|
643
|
|
(704)
|
|
627
|
|
(Gain) loss on
financial instruments
|
9
|
|
(3)
|
|
(111)
|
|
(4)
|
|
Other
|
8
|
|
6
|
|
11
|
|
(1)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Non-vehicle
receivables
|
(30)
|
|
13
|
|
(264)
|
|
(210)
|
|
Prepaid expenses and
other assets
|
(46)
|
|
33
|
|
(126)
|
|
(20)
|
|
Operating lease
right-of-use assets
|
78
|
|
71
|
|
280
|
|
274
|
|
Non-vehicle accounts
payable
|
50
|
|
(25)
|
|
43
|
|
(70)
|
|
Accrued
liabilities
|
(103)
|
|
(65)
|
|
80
|
|
(108)
|
|
Accrued taxes,
net
|
21
|
|
(65)
|
|
73
|
|
24
|
|
Operating lease
liabilities
|
(86)
|
|
(77)
|
|
(309)
|
|
(291)
|
|
Self-insured
liabilities
|
(19)
|
|
(4)
|
|
19
|
|
(17)
|
|
Net cash provided by
(used in) operating activities
|
277
|
|
598
|
|
2,538
|
|
1,806
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Revenue earning
vehicles expenditures
|
(2,743)
|
|
(1,958)
|
|
(10,596)
|
|
(7,154)
|
|
Proceeds from disposal
of revenue earning vehicles
|
2,028
|
|
873
|
|
6,498
|
|
2,818
|
|
Non-vehicle capital
asset expenditures
|
(46)
|
|
(30)
|
|
(150)
|
|
(71)
|
|
Proceeds from disposal
of non-vehicle capital assets
|
2
|
|
(1)
|
|
12
|
|
16
|
|
Collateral
payments
|
—
|
|
—
|
|
—
|
|
(303)
|
|
Collateral returned in
exchange for letters of credit
|
—
|
|
12
|
|
19
|
|
280
|
|
Return of (investment
in) equity investments
|
(1)
|
|
—
|
|
(16)
|
|
—
|
|
Proceeds from the sale
of a business, net of cash sold
|
—
|
|
—
|
|
—
|
|
871
|
|
Other
|
—
|
|
—
|
|
—
|
|
(1)
|
|
Net cash provided by
(used in) investing activities
|
(760)
|
|
(1,104)
|
|
(4,233)
|
|
(3,544)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of vehicle debt
|
1,390
|
|
3,861
|
|
9,672
|
|
14,323
|
|
Repayments of vehicle
debt
|
(685)
|
|
(3,144)
|
|
(6,639)
|
|
(12,607)
|
|
Proceeds from issuance
of non-vehicle debt
|
—
|
|
1,505
|
|
—
|
|
4,644
|
|
Repayments of
non-vehicle debt
|
(6)
|
|
(6)
|
|
(20)
|
|
(6,352)
|
|
Payment of financing
costs
|
(6)
|
|
(31)
|
|
(48)
|
|
(185)
|
|
Proceeds from Plan
Sponsors
|
—
|
|
—
|
|
—
|
|
2,781
|
|
Early redemption
premium payment
|
—
|
|
—
|
|
—
|
|
(85)
|
|
Proceeds from
exercises of Public Warrants
|
—
|
|
77
|
|
3
|
|
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)
|
|
—
|
|
(38)
|
|
Proceeds from 2021
Rights Offering, net
|
—
|
|
—
|
|
—
|
|
1,639
|
|
Share
repurchases
|
(309)
|
|
(654)
|
|
(2,461)
|
|
(654)
|
|
Other
|
(16)
|
|
(9)
|
|
(20)
|
|
(9)
|
|
Net cash provided by
(used in) financing activities
|
368
|
|
(297)
|
|
487
|
|
2,845
|
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents and restricted cash and cash
equivalents
|
25
|
|
(12)
|
|
(25)
|
|
(34)
|
|
Net increase (decrease)
in cash and cash equivalents and restricted cash and
cash equivalents during the period
|
(90)
|
|
(815)
|
|
(1,233)
|
|
1,073
|
|
Cash and cash
equivalents and restricted cash and cash equivalents at
beginning of period(a)
|
1,508
|
|
3,466
|
|
2,651
|
|
1,578
|
|
Cash and cash
equivalents and restricted cash and cash equivalents at end of
period
|
$
1,418
|
|
$
2,651
|
|
$
1,418
|
|
$
2,651
|
|
|
|
(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,
2022
|
|
Three Months Ended December 31,
2021
|
|
(In millions)
|
Americas
RAC
|
|
International
RAC
|
|
Corporate
|
|
Hertz
Global
|
|
Americas
RAC
|
|
International
RAC
|
|
Corporate
|
|
Hertz
Global
|
|
Revenues
|
$
1,707
|
|
$
328
|
|
$
—
|
|
$
2,035
|
|
$
1,691
|
|
$
258
|
|
$
—
|
|
$
1,949
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct vehicle and
operating
|
1,098
|
|
174
|
|
2
|
|
1,274
|
|
908
|
|
154
|
|
3
|
|
1,065
|
|
Depreciation of revenue
earning vehicles and lease charges
|
333
|
|
27
|
|
—
|
|
360
|
|
30
|
|
48
|
|
—
|
|
78
|
|
Depreciation and
amortization of non-vehicle assets
|
29
|
|
3
|
|
5
|
|
37
|
|
36
|
|
4
|
|
3
|
|
43
|
|
Selling, general and
administrative
|
81
|
|
38
|
|
102
|
|
221
|
|
90
|
|
39
|
|
59
|
|
188
|
|
Interest expense,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
|
72
|
|
10
|
|
—
|
|
82
|
|
31
|
|
10
|
|
—
|
|
41
|
|
Non-vehicle
|
(36)
|
|
(1)
|
|
83
|
|
46
|
|
(6)
|
|
—
|
|
34
|
|
28
|
|
Total interest
expense, net
|
36
|
|
9
|
|
83
|
|
128
|
|
25
|
|
10
|
|
34
|
|
69
|
|
Other (income) expense,
net
|
(3)
|
|
6
|
|
5
|
|
8
|
|
(2)
|
|
1
|
|
—
|
|
(1)
|
|
Change in fair value of
Public Warrants
|
—
|
|
—
|
|
(120)
|
|
(120)
|
|
—
|
|
—
|
|
643
|
|
643
|
|
Total
expenses
|
1,574
|
|
257
|
|
77
|
|
1,908
|
|
1,087
|
|
256
|
|
742
|
|
2,085
|
|
Income (loss) before
income taxes
|
$
133
|
|
$
71
|
|
$
(77)
|
|
127
|
|
$
604
|
|
$
2
|
|
$
(742)
|
|
(136)
|
|
Income tax (provision)
benefit
|
|
|
|
|
|
|
(11)
|
|
|
|
|
|
|
|
(125)
|
|
Net income
(loss)
|
|
|
|
|
|
|
116
|
|
|
|
|
|
|
|
(261)
|
|
Net (income) loss
attributable to noncontrolling interests
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
1
|
|
Net income (loss)
attributable to Hertz Global
|
|
|
|
|
|
|
116
|
|
|
|
|
|
|
|
(260)
|
|
Series A Preferred
Stock deemed dividends
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
(450)
|
|
Net income (loss)
available to Hertz Global common stockholders
|
|
|
|
|
|
|
$
116
|
|
|
|
|
|
|
|
$
(710)
|
|
Supplemental
Schedule I (continued)
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
|
CONDENSED STATEMENT
OF OPERATIONS BY SEGMENT
|
|
Unaudited
|
|
|
Twelve Months Ended December 31,
2022
|
|
Twelve Months Ended December 31,
2021
|
|
(In millions)
|
Americas
RAC
|
|
International
RAC
|
|
Corporate
|
|
Hertz
Global
|
|
Americas
RAC
|
|
International
RAC
|
|
All other
operations
|
|
Corporate
|
|
Hertz
Global
|
|
Revenues
|
$
7,280
|
|
$
1,405
|
|
$
—
|
|
$
8,685
|
|
$
6,215
|
|
$
985
|
|
$
136
|
|
$
—
|
|
$
7,336
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct vehicle and
operating
|
4,080
|
|
728
|
|
—
|
|
4,808
|
|
3,302
|
|
606
|
|
5
|
|
7
|
|
3,920
|
|
Depreciation of revenue
earning vehicles and lease charges
|
553
|
|
148
|
|
—
|
|
701
|
|
343
|
|
154
|
|
—
|
|
—
|
|
497
|
|
Depreciation and
amortization of non-vehicle assets
|
114
|
|
13
|
|
15
|
|
142
|
|
166
|
|
16
|
|
2
|
|
12
|
|
196
|
|
Selling, general and
administrative
|
351
|
|
180
|
|
428
|
|
959
|
|
282
|
|
136
|
|
10
|
|
260
|
|
688
|
|
Interest expense,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
|
140
|
|
19
|
|
—
|
|
159
|
|
213
|
|
59
|
|
12
|
|
—
|
|
284
|
|
Non-vehicle
|
(80)
|
|
—
|
|
249
|
|
169
|
|
(15)
|
|
3
|
|
1
|
|
196
|
|
185
|
|
Total interest
expense, net
|
60
|
|
19
|
|
249
|
|
328
|
|
198
|
|
62
|
|
13
|
|
196
|
|
469
|
|
Other (income) expense,
net
|
(6)
|
|
3
|
|
5
|
|
2
|
|
(10)
|
|
(1)
|
|
—
|
|
(10)
|
|
(21)
|
|
Reorganization items,
net
|
—
|
|
—
|
|
—
|
|
—
|
|
80
|
|
12
|
|
(1)
|
|
586
|
|
677
|
|
(Gain) from the sale of
a business
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(400)
|
|
(400)
|
|
Change in fair value of
Public Warrants
|
—
|
|
—
|
|
(704)
|
|
(704)
|
|
—
|
|
—
|
|
—
|
|
627
|
|
627
|
|
Total
expenses
|
5,152
|
|
1,091
|
|
(7)
|
|
6,236
|
|
4,361
|
|
985
|
|
29
|
|
1,278
|
|
6,653
|
|
Income (loss) before
income taxes
|
$
2,128
|
|
$
314
|
|
$
7
|
|
2,449
|
|
$
1,854
|
|
$
—
|
|
$
107
|
|
$ (1,278)
|
|
683
|
|
Income tax (provision)
benefit
|
|
|
|
|
|
|
(390)
|
|
|
|
|
|
|
|
|
|
(318)
|
|
Net income
(loss)
|
|
|
|
|
|
|
2,059
|
|
|
|
|
|
|
|
|
|
365
|
|
Net (income) loss
attributable to noncontrolling interests
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
1
|
|
Net income (loss)
attributable to Hertz Global
|
|
|
|
|
|
|
2,059
|
|
|
|
|
|
|
|
|
|
366
|
|
Series A Preferred
Stock deemed dividends
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
(450)
|
|
Net income (loss)
available to Hertz Global common
stockholders
|
|
|
|
|
|
|
$
2,059
|
|
|
|
|
|
|
|
|
|
$
(84)
|
|
|
NOTE: Effective in
the second quarter of 2021, as a result of the sale of the
Company's Donlen fleet management and leasing business on March 30,
2021, the All Other Operations reportable segment, which consisted
primarily of the former Donlen business, was no longer deemed a
reportable segment.
|
|
Supplemental
Schedule II
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
|
RECONCILIATION OF
GAAP TO NON-GAAP MEASURE - ADJUSTED NET INCOME (LOSS), ADJUSTED
DILUTED EARNINGS (LOSS) PER SHARE AND ADJUSTED
CORPORATE EBITDA
|
|
Unaudited
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
(In millions, except per share
data)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Adjusted Net Income (Loss) and Adjusted Diluted
Earnings (Loss) Per Share:
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Hertz Global
|
$
116
|
|
$
(260)
|
|
$
2,059
|
|
$
366
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Income tax provision
(benefit)
|
11
|
|
125
|
|
390
|
|
318
|
|
Vehicle and
non-vehicle debt-related charges(a)(l)
|
14
|
|
13
|
|
53
|
|
129
|
|
Restructuring and
restructuring related charges(b)
|
16
|
|
4
|
|
45
|
|
76
|
|
Acquisition
accounting-related depreciation and
amortization(c)
|
1
|
|
7
|
|
3
|
|
43
|
|
Reorganization items,
net(d)
|
—
|
|
—
|
|
—
|
|
677
|
|
Pre-reorganization and
non-debtor financing charges(e)
|
—
|
|
—
|
|
—
|
|
42
|
|
Gain from the Donlen
Sale(f)
|
—
|
|
—
|
|
—
|
|
(400)
|
|
Change in fair value
of Public Warrants
|
(120)
|
|
643
|
|
(704)
|
|
627
|
|
Unrealized (gains)
losses on financial instruments
|
9
|
|
(3)
|
|
(111)
|
|
(4)
|
|
Litigation
settlements(g)
|
168
|
|
—
|
|
168
|
|
—
|
|
Other
items(h)(p)
|
16
|
|
39
|
|
105
|
|
(29)
|
|
Adjusted pre-tax
income (loss)(i)
|
231
|
|
568
|
|
2,008
|
|
1,845
|
|
Income tax (provision)
benefit on adjusted pre-tax income (loss)(j)
|
(58)
|
|
(142)
|
|
(502)
|
|
(461)
|
|
Adjusted Net Income
(Loss)
|
$
173
|
|
$
426
|
|
$
1,506
|
|
$
1,384
|
|
Weighted-average
number of diluted shares outstanding
|
347
|
|
468
|
|
403
|
|
315
|
|
Adjusted Diluted
Earnings (Loss) Per Share(k)
|
$
0.50
|
|
$
0.91
|
|
$
3.74
|
|
$
4.39
|
|
Adjusted Corporate EBITDA:
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Hertz Global
|
$
116
|
|
$
(260)
|
|
$
2,059
|
|
$
366
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Income tax provision
(benefit)
|
11
|
|
125
|
|
390
|
|
318
|
|
Non-vehicle
depreciation and amortization(l)
|
37
|
|
43
|
|
142
|
|
196
|
|
Non-vehicle debt
interest, net of interest income(m)
|
46
|
|
28
|
|
169
|
|
185
|
|
Vehicle debt-related
charges(a)(n)
|
10
|
|
10
|
|
35
|
|
72
|
|
Restructuring and
restructuring related charges(b)
|
16
|
|
4
|
|
45
|
|
76
|
|
Reorganization items,
net(d)
|
—
|
|
—
|
|
—
|
|
677
|
|
Pre-reorganization and
non-debtor financing charges(e)
|
—
|
|
—
|
|
—
|
|
42
|
|
Gain from the Donlen
Sale(f)
|
—
|
|
—
|
|
—
|
|
(400)
|
|
Change in fair value
of Public Warrants
|
(120)
|
|
643
|
|
(704)
|
|
627
|
|
Unrealized (gains)
losses on financial instruments
|
9
|
|
(3)
|
|
(111)
|
|
(4)
|
|
Litigation
settlements(g)
|
168
|
|
—
|
|
168
|
|
—
|
|
Other
items(h)(o)
|
16
|
|
38
|
|
112
|
|
(25)
|
|
Adjusted Corporate
EBITDA
|
$
309
|
|
$
628
|
|
$
2,305
|
|
$
2,130
|
|
|
|
Supplemental
Schedule II (continued)
|
|
|
|
(a)
|
Represents debt-related
charges relating to the amortization of deferred financing costs
and debt discounts and premiums.
|
|
(b)
|
Represents charges
incurred under restructuring actions as defined in U.S. GAAP. Also
includes restructuring related charges such as incremental costs
incurred directly supporting business transformation initiatives.
For the year ended December 31, 2021, charges incurred were $36
million, $32 million and $8 million in Corporate, Americas RAC and
International RAC, respectively.
|
|
(c)
|
Represents incremental
expense associated with the amortization of other intangible assets
and depreciation of property and equipment relating to acquisition
accounting.
|
|
(d)
|
Represents charges
incurred associated with the Reorganization and emergence from
Chapter 11, including professional fees. The charges relate
primarily to Corporate.
|
|
|
|
|
Twelve Months Ended
December 31,
|
|
(In millions)
|
|
2021
|
|
Professional fees and
other bankruptcy related costs
|
|
$
257
|
|
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
|
|
$
677
|
|
|
|
(e)
|
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.
|
|
(f)
|
Represents the gain
from the sale of the Company's Donlen business on March 30, 2021,
primarily associated with Corporate.
|
|
(g)
|
Represents payments
made for the settlement of certain claims related to alleged false
arrests in our Americas RAC segment.
|
|
(h)
|
Represents
miscellaneous items. For 2022, includes certain bankruptcy claims
and certain professional fees and charges related to the settlement
of bankruptcy claims. 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, letter of credit fees
recorded primarily in Corporate, and $12 million of costs
associated with the Company's information technology and finance
transformation programs, both of which were multi-year initiatives
to upgrade and modernize the Company's systems and processes
primarily in Corporate.
|
|
|
|
Supplemental
Schedule II (continued)
|
|
|
|
(i)
|
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)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Direct vehicle and
operating
|
$
(178)
|
|
$
(12)
|
|
$
(232)
|
|
$
33
|
|
Selling, general and
administrative
|
(17)
|
|
2
|
|
(79)
|
|
(90)
|
|
Interest expense,
net:
|
|
|
|
|
|
|
|
|
Vehicle
|
(16)
|
|
(10)
|
|
76
|
|
(91)
|
|
Non-vehicle
|
(8)
|
|
(3)
|
|
(28)
|
|
(57)
|
|
Total interest
expense, net
|
(24)
|
|
(13)
|
|
58
|
|
(148)
|
|
Intangible and other
asset impairments
|
—
|
|
—
|
|
—
|
|
—
|
|
Other income (expense),
net
|
(5)
|
|
(37)
|
|
—
|
|
(52)
|
|
Reorganization items,
net
|
—
|
|
—
|
|
—
|
|
(677)
|
|
Gain from the Donlen
Sale
|
—
|
|
—
|
|
—
|
|
400
|
|
Change in fair value of
Public Warrants
|
120
|
|
(643)
|
|
704
|
|
(627)
|
|
Total
adjustments
|
$
(104)
|
|
$
(703)
|
|
$
441
|
|
$
(1,161)
|
|
|
|
(j)
|
Derived utilizing a
combined statutory rate of 25% for the periods ended December 31,
2022 and 2021, respectively, applied to the respective Adjusted
Pre-tax Income (Loss).
|
|
(k)
|
Adjustments used to
reconcile diluted earnings (loss) per share on a GAAP basis to
Adjusted Diluted Earnings (Loss) Per Share are comprised of the
same adjustments, inclusive of the tax impact, used to reconcile
net income (loss) to Adjusted Net Income (Loss) divided by the
weighted-average diluted shares outstanding during the
period.
|
|
(l)
|
Non-vehicle
depreciation and amortization expense for Americas RAC,
International RAC and Corporate for the three months ended December
31, 2022 was $29 million, $3 million and $5 million, respectively.
For the three months ended December 31, 2021 was $36 million, $4
million, and $3 million, respectively. Non-vehicle depreciation and
amortization for Americas RAC, International RAC, and Corporate for
the twelve months ended December 31, 2022 were $114 million, $13
million, and $15 million, respectively. For the twelve months ended
December 31, 2021 were $166 million, $16 million, $2 million and
$12 million, for Americas RAC, International RAC, all other
operations, and Corporate, respectively.
|
|
(m)
|
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.
|
|
(n)
|
Vehicle debt-related
charges for Americas RAC and International RAC for the three months
ended December 31, 2022 were $8 million and $2 million,
respectively. For the three months ended December 31, 2021 vehicle
debt-related charges for Americas RAC and International RAC
were $6 million and $4 million, respectively. Vehicle debt-related
charges for Americas RAC and International RAC for the twelve
months ended December 31, 2022 were $25 million and $10 million,
respectively. For the twelve months ended December 31, 2021 were
$53 million, $16 million and $2 million for Americas RAC,
International RAC and all other operations,
respectively.
|
|
(o)
|
Also includes an
adjustment for certain non-cash stock-based compensation charges in
Corporate.
|
|
(p)
|
Also includes letter of
credit fees recorded in 2022 and 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)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH
FLOW:
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
$
277
|
|
$
598
|
|
$
2,538
|
|
$
1,806
|
|
Depreciation and
reserves for revenue earning vehicles
|
(298)
|
|
(94)
|
|
(809)
|
|
(600)
|
|
Bankruptcy related
payments (post emergence) and other
payments(a)
|
177
|
|
69
|
|
261
|
|
257
|
|
Adjusted operating cash
flow
|
156
|
|
573
|
|
1,990
|
|
1,463
|
|
Non-vehicle capital
asset expenditures, net
|
(44)
|
|
(31)
|
|
(138)
|
|
(55)
|
|
Adjusted operating cash
flow before vehicle investment
|
112
|
|
542
|
|
1,852
|
|
1,408
|
|
Net fleet growth after
financing
|
312
|
|
(32)
|
|
(360)
|
|
(1,980)
|
|
Noncontrolling
interests
|
—
|
|
(1)
|
|
—
|
|
(26)
|
|
Adjusted free cash
flow
|
$
424
|
|
$
509
|
|
$
1,492
|
|
$
(598)
|
|
|
|
|
|
|
|
|
|
CALCULATION OF NET FLEET GROWTH AFTER
FINANCING:
|
|
|
|
|
|
|
|
|
Revenue earning
vehicles expenditures
|
$
(2,743)
|
|
$
(1,958)
|
|
$
(10,596)
|
|
$
(7,154)
|
|
Proceeds from disposal
of revenue earning vehicles
|
2,028
|
|
873
|
|
6,498
|
|
2,818
|
|
Revenue earning
vehicles capital expenditures, net
|
(715)
|
|
(1,085)
|
|
(4,098)
|
|
(4,336)
|
|
Depreciation and
reserves for revenue earning vehicles
|
298
|
|
94
|
|
809
|
|
600
|
|
Financing activity
related to vehicles:
|
|
|
|
|
|
|
|
|
Borrowings
|
1,390
|
|
3,861
|
|
9,672
|
|
14,323
|
|
Payments
|
(685)
|
|
(3,144)
|
|
(6,639)
|
|
(12,607)
|
|
Restricted cash
changes, vehicle(b)
|
24
|
|
242
|
|
(104)
|
|
40
|
|
Net financing activity
related to vehicles
|
729
|
|
959
|
|
2,929
|
|
1,756
|
|
Net fleet growth after
financing
|
$
312
|
|
$
(32)
|
|
$
(360)
|
|
$
(1,980)
|
|
|
|
|
|
(a)
|
Also includes payments
made for the settlement of certain claims related to alleged false
arrests in our Americas RAC segment.
|
|
(b)
|
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 IV
|
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
|
NET DEBT
CALCULATION
|
|
Unaudited
|
|
|
(In millions)
|
As of December 31, 2022
|
|
As of December 31, 2021
|
|
Vehicle
|
|
Non-Vehicle
|
|
Total
|
|
Vehicle
|
|
Non-Vehicle
|
|
Total
|
|
Term loans
|
$
—
|
|
$
1,526
|
|
$
1,526
|
|
$
—
|
|
$
1,539
|
|
$
1,539
|
|
Senior notes
|
—
|
|
1,500
|
|
1,500
|
|
—
|
|
1,500
|
|
1,500
|
|
U.S. vehicle financing
(HVF III)
|
9,406
|
|
—
|
|
9,406
|
|
7,001
|
|
—
|
|
7,001
|
|
International vehicle
financing (Various)
|
1,466
|
|
—
|
|
1,466
|
|
860
|
|
—
|
|
860
|
|
Other debt
|
76
|
|
9
|
|
85
|
|
93
|
|
16
|
|
109
|
|
Debt issue costs,
discounts and premiums
|
(62)
|
|
(58)
|
|
(120)
|
|
(33)
|
|
(69)
|
|
(102)
|
|
Debt as reported in the
balance sheet
|
10,886
|
|
2,977
|
|
13,863
|
|
7,921
|
|
2,986
|
|
10,907
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt issue costs,
discounts and premiums
|
62
|
|
58
|
|
120
|
|
33
|
|
69
|
|
102
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
—
|
|
943
|
|
943
|
|
—
|
|
2,258
|
|
2,258
|
|
Restricted
cash
|
180
|
|
—
|
|
180
|
|
77
|
|
—
|
|
77
|
|
Restricted cash and
restricted cash equivalents associated with Term C Loan
|
—
|
|
245
|
|
245
|
|
—
|
|
245
|
|
245
|
|
Net Debt
|
$
10,768
|
|
$
1,847
|
|
$
12,615
|
|
$
7,877
|
|
$
552
|
|
$
8,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate leverage
ratio(a)
|
|
|
0.8x
|
|
|
|
|
|
0.3x
|
|
|
|
|
|
(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)
|
2022
|
|
2021
|
|
|
2022
|
|
2021
|
|
|
Total RPD
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$ 2,035
|
|
$ 1,949
|
|
|
|
$ 8,685
|
|
$ 7,200
|
|
|
|
Foreign currency
adjustment(a)
|
41
|
|
(3)
|
|
|
|
111
|
|
(36)
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$ 2,076
|
|
$ 1,946
|
|
|
|
$ 8,796
|
|
$ 7,164
|
|
|
|
Transaction Days (in
thousands)
|
33,673
|
|
32,551
|
|
|
|
136,860
|
|
120,573
|
|
|
|
Total RPD (in
dollars)(c)
|
$ 61.65
|
|
$ 59.80
|
|
3 %
|
|
$ 64.27
|
|
$ 59.41
|
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue Per Unit Per
Month
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$ 2,076
|
|
$ 1,946
|
|
|
|
$ 8,796
|
|
$ 7,164
|
|
|
|
Average Rentable
Vehicles (in whole units)(d)
|
465,943
|
|
454,000
|
|
|
|
478,798
|
|
421,497
|
|
|
|
Total revenue per unit
(in whole dollars)
|
$ 4,456
|
|
$ 4,287
|
|
|
|
$
18,371
|
|
$
16,996
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
|
Total RPU Per Month (in
whole dollars)(c)(d)
|
$ 1,485
|
|
$ 1,429
|
|
4 %
|
|
$ 1,531
|
|
$ 1,416
|
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle Utilization
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction Days (in
thousands)
|
33,673
|
|
32,551
|
|
|
|
136,860
|
|
120,573
|
|
|
|
Average Rentable
Vehicles (in whole units)(d)
|
465,943
|
|
454,000
|
|
|
|
478,798
|
|
421,497
|
|
|
|
Number of days in
period (in whole units)
|
92
|
|
92
|
|
|
|
365
|
|
365
|
|
|
|
Available Car Days (in
thousands)
|
42,870
|
|
41,770
|
|
|
|
174,826
|
|
153,996
|
|
|
|
Vehicle
Utilization(b)(d)
|
79 %
|
|
78 %
|
|
|
|
78 %
|
|
78 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation Per Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of revenue
earning vehicles and lease charges,
net
|
$
360
|
|
$
78
|
|
|
|
$
701
|
|
$
497
|
|
|
|
Foreign currency
adjustment(a)
|
3
|
|
—
|
|
|
|
12
|
|
(5)
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and lease
charges
|
$
363
|
|
$
78
|
|
|
|
$
713
|
|
$
492
|
|
|
|
Average Vehicles (in
whole units)
|
496,926
|
|
470,900
|
|
|
|
506,046
|
|
433,290
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and lease
charges divided by Average Vehicles (in whole
dollars)
|
$
731
|
|
$
167
|
|
|
|
$ 1,409
|
|
$ 1,136
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
|
Depreciation Per Unit
Per Month (in whole dollars)
|
$
244
|
|
$
55
|
|
NM
|
|
$
117
|
|
$
95
|
|
24 %
|
|
|
|
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,
2021 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.
|
|
(d)
|
Effective in the first
quarter of 2022, the Company revised its calculation of Total RPU
and Vehicle Utilization to use Average Rentable Vehicles in the
denominator which excludes vehicles for sale on the Company's
retail lots or actively in the process of being sold through other
disposition channels.
|
|
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)
|
2022
|
|
2021
|
|
|
2022
|
|
2021
|
|
|
Total RPD
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$ 1,707
|
|
$ 1,691
|
|
|
|
$ 7,280
|
|
$ 6,215
|
|
|
|
Foreign currency
adjustment(a)
|
3
|
|
(1)
|
|
|
|
4
|
|
(3)
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$ 1,710
|
|
$ 1,690
|
|
|
|
$ 7,284
|
|
$ 6,212
|
|
|
|
Transaction Days (in
thousands)
|
27,367
|
|
27,215
|
|
|
|
111,759
|
|
100,085
|
|
|
|
Total RPD (in
dollars)(c)
|
$ 62.50
|
|
$ 62.11
|
|
1 %
|
|
$ 65.18
|
|
$ 62.07
|
|
5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue Per Unit Per
Month
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$ 1,710
|
|
$ 1,690
|
|
|
|
$ 7,284
|
|
$ 6,212
|
|
|
|
Average Rentable
Vehicles (in whole units)(d)
|
370,723
|
|
368,434
|
|
|
|
385,234
|
|
345,306
|
|
|
|
Total revenue per unit
(in whole dollars)
|
$ 4,614
|
|
$ 4,588
|
|
|
|
$
18,909
|
|
$
17,991
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
|
Total RPU Per Month (in
whole dollars)(c)(d)
|
$ 1,538
|
|
$ 1,529
|
|
1 %
|
|
$ 1,576
|
|
$ 1,499
|
|
5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle Utilization
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction Days (in
thousands)
|
27,367
|
|
27,215
|
|
|
|
111,759
|
|
100,085
|
|
|
|
Average Rentable
Vehicles (in whole units)
|
370,723
|
|
368,434
|
|
|
|
385,234
|
|
345,306
|
|
|
|
Number of days in
period (in whole units)
|
92
|
|
92
|
|
|
|
365
|
|
365
|
|
|
|
Available Car Days (in
thousands)
|
34,109
|
|
33,898
|
|
|
|
140,647
|
|
126,159
|
|
|
|
Vehicle
Utilization(b)
|
80 %
|
|
80 %
|
|
|
|
79 %
|
|
79 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation Per Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of revenue
earning vehicles and lease
charges, net
|
$
333
|
|
$
30
|
|
|
|
$
553
|
|
$
343
|
|
|
|
Foreign currency
adjustment(a)
|
—
|
|
—
|
|
|
|
1
|
|
—
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and
lease charges
|
$
333
|
|
$
30
|
|
|
|
$
554
|
|
$
343
|
|
|
|
Average Vehicles (in
whole units)
|
398,860
|
|
384,492
|
|
|
|
411,047
|
|
355,647
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and
lease charges divided by Average Vehicles (in
whole
dollars)
|
$
834
|
|
$
77
|
|
|
|
$ 1,348
|
|
$
964
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
|
Depreciation Per Unit
Per Month (in whole dollars)
|
$
278
|
|
$
26
|
|
NM
|
|
$
112
|
|
$
81
|
|
39 %
|
|
|
|
NM - Not
meaningful
|
|
(a)
|
Based on December 31,
2021 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.
|
|
(d)
|
Effective in the first
quarter of 2022, the Company revised its calculation of Total RPU
and Vehicle Utilization to use Average Rentable Vehicles in the
denominator which excludes vehicles for sale on the Company's
retail lots or actively in the process of being sold through other
disposition channels.
|
|
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)
|
2022
|
|
2021
|
|
|
2022
|
|
2021
|
|
|
Total RPD
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
328
|
|
$
258
|
|
|
|
$ 1,405
|
|
$
985
|
|
|
|
Foreign currency
adjustment(a)
|
38
|
|
(2)
|
|
|
|
107
|
|
(34)
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
366
|
|
$
256
|
|
|
|
$ 1,512
|
|
$
951
|
|
|
|
Transaction Days (in
thousands)
|
6,305
|
|
5,335
|
|
|
|
25,101
|
|
20,488
|
|
|
|
Total RPD (in
dollars)(c)
|
$ 57.98
|
|
$ 48.01
|
|
21 %
|
|
$ 60.23
|
|
$ 46.43
|
|
30 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue Per Unit Per
Month
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues -
adjusted for foreign currency
|
$
366
|
|
$
256
|
|
|
|
$ 1,512
|
|
$
951
|
|
|
|
Average Rentable
Vehicles (in whole units)(d)
|
95,221
|
|
85,565
|
|
|
|
93,564
|
|
76,190
|
|
|
|
Total revenue per unit
(in whole dollars)
|
$ 3,840
|
|
$ 2,994
|
|
|
|
$
16,158
|
|
$
12,485
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
|
Total RPU Per Month (in
whole dollars)(c)(d)
|
$ 1,280
|
|
$
998
|
|
28 %
|
|
$ 1,346
|
|
$ 1,040
|
|
29 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle Utilization
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction Days (in
thousands)
|
6,305
|
|
5,335
|
|
|
|
25,101
|
|
20,488
|
|
|
|
Average Rentable
Vehicles (in whole units)
|
95,221
|
|
85,565
|
|
|
|
93,564
|
|
76,190
|
|
|
|
Number of days in
period (in whole units)
|
92
|
|
92
|
|
|
|
365
|
|
365
|
|
|
|
Available Car Days (in
thousands)
|
8,762
|
|
7,872
|
|
|
|
34,179
|
|
27,837
|
|
|
|
Vehicle
Utilization(b)
|
72 %
|
|
68 %
|
|
|
|
73 %
|
|
74 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation Per Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of revenue
earning vehicles and lease
charges
|
$
27
|
|
$
48
|
|
|
|
$
148
|
|
$
154
|
|
|
|
Foreign currency
adjustment(a)
|
3
|
|
—
|
|
|
|
11
|
|
(5)
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and
lease charges
|
$
30
|
|
$
48
|
|
|
|
$
159
|
|
$
149
|
|
|
|
Average Vehicles (in
whole units)
|
98,065
|
|
86,408
|
|
|
|
94,999
|
|
77,643
|
|
|
|
Adjusted depreciation
of revenue earning vehicles and
lease charges divided by Average Vehicles (in
whole
dollars)
|
$
301
|
|
$
552
|
|
|
|
$ 1,673
|
|
$ 1,915
|
|
|
|
Number of months in
period (in whole units)
|
3
|
|
3
|
|
|
|
12
|
|
12
|
|
|
|
Depreciation Per Unit
Per Month (in whole dollars)
|
$
104
|
|
$
184
|
|
(44) %
|
|
$
139
|
|
$
160
|
|
(13) %
|
|
|
|
(a)
|
Based on December 31,
2021 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.
|
|
(d)
|
Effective in the first
quarter of 2022, the Company revised its calculation of Total RPU
and Vehicle Utilization to use Average Rentable Vehicles in the
denominator which excludes vehicles for sale on the Company's
retail lots or actively in the process of being sold through other
disposition channels.
|
NON-GAAP MEASURES AND KEY METRICS
The term "GAAP" refers to accounting principles generally
accepted in the United States.
Adjusted EBITDA is the Company's segment measure of profitability
and complies with GAAP when used in that context.
NON-GAAP MEASURES
Non-GAAP measures are not recognized measurements under GAAP.
When evaluating the Company's operating performance or liquidity,
investors should not consider non-GAAP measures in isolation of,
superior to, or as a substitute for measures of the Company's
financial performance as determined in accordance with GAAP.
Adjusted Net Income (Loss) and Adjusted Diluted Earnings
(Loss) Per Share ("Adjusted EPS")
Adjusted Net Income (Loss) represents income or loss
attributable to the Company as adjusted to eliminate the impact of
GAAP income tax; vehicle and non-vehicle debt-related charges;
restructuring and restructuring related charges; acquisition
accounting-related depreciation and amortization; reorganization
items, net; pre-reorganization and non-debtor financing charges;
gain from the sale of a business; change in fair value of Public
Warrants; unrealized (gains) losses on financial instruments and
certain other miscellaneous items on a pre-tax basis. Adjusted Net
Income (Loss) includes a provision (benefit) for income taxes
derived utilizing a combined statutory rate. The combined statutory
rate is management's estimate of the Company's long-term tax rate.
Its most comparable GAAP measure is net income (loss) attributable
to the Company.
Adjusted EPS represents Adjusted Net Income (Loss) on a per
diluted share basis using the weighted-average number of diluted
shares outstanding for the period. Its most comparable GAAP measure
is diluted earnings (loss) per share.
Adjusted Net Income (Loss) and Adjusted EPS are important
operating metrics because they allow management and investors to
assess operational performance of the Company's business, exclusive
of the items mentioned above that are not operational in nature or
comparable to those of the Company's competitors.
Adjusted Corporate EBITDA and Adjusted Corporate EBITDA
Margin
Adjusted Corporate EBITDA represents income or loss attributable
to the Company as adjusted to eliminate the impact of GAAP income
tax; non-vehicle depreciation and amortization; non-vehicle debt
interest, net; vehicle debt-related charges; restructuring and
restructuring related charges; reorganization items, net;
pre-reorganization and non-debtor financing charges; gain from the
sale of a business; change in fair value of Public Warrants;
unrealized (gains) losses on financial instruments and certain
other miscellaneous items.
Adjusted Corporate EBITDA Margin is calculated as the ratio of
Adjusted Corporate EBITDA to total revenues.
Management uses these measures as operating performance metrics
for internal monitoring and planning purposes, including the
preparation of the Company's annual operating budget and monthly
operating reviews, and analysis of investment decisions,
profitability and performance trends. These measures enable
management and investors to isolate the effects on profitability of
operating metrics most meaningful to the business of renting and
leasing vehicles. They also allow management and investors to
assess the performance of the entire business on the same basis as
its reportable segments. Adjusted Corporate EBITDA is also utilized
in the determination of certain executive compensation. Its most
comparable GAAP measure is net income (loss) attributable to the
Company.
Adjusted operating cash flow and adjusted free cash
flow
Adjusted operating cash flow represents net cash provided by
operating activities net of the non-cash add back for vehicle
depreciation and reserves, and exclusive of bankruptcy related
payments made post emergence. Adjusted operating cash flow is
important to management and investors as it provides useful
information about the amount of cash generated from operations when
fully burdened by fleet costs.
Adjusted free cash flow represents adjusted operating cash flow
plus the impact of net non-vehicle capital expenditures and net
fleet growth after financing. Adjusted free cash flow is important
to management and investors as it provides useful information about
the amount of cash available for, but not limited to, the reduction
of non-vehicle debt, share repurchase and acquisition.
KEY METRICS
Available Car Days
Available Car Days represents Average Rentable Vehicles
multiplied by the number of days in a given period.
Average Vehicles ("Fleet Capacity" or
"Capacity")
Average Vehicles is determined using a simple average of the
number of vehicles in the fleet whether owned or leased by the
Company at the beginning and end of a given period.
Average Rentable Vehicles
Average Rentable Vehicles reflects Average Vehicles excluding
vehicles for sale on the Company's retail lots or actively in the
process of being sold through other disposition channels.
Depreciation Per Unit Per Month ("Depreciation Per Unit"
or "DPU")
Depreciation Per Unit Per Month represents the amount of average
depreciation expense and lease charges per vehicle per month,
exclusive of the impacts of foreign currency exchange rates so as
not to affect the comparability of underlying trends. This metric
is important to management and investors as it reflects how
effectively the Company is managing the costs of its vehicles and
facilitates comparisons with other participants in the vehicle
rental industry.
Total Revenue Per Transaction Day ("Total RPD"or "RPD";
also referred to as "pricing")
Total RPD represents revenue generated per transaction day,
excluding the impact of foreign currency exchange rates so as not
to affect the comparability of underlying trends. This metric is
important to management and investors as it represents a measure of
changes in the underlying pricing in the vehicle rental business
and encompasses the elements in vehicle rental pricing that
management has the ability to control.
Historically, the Company excluded revenue generated from
ancillary retail vehicles sales. Effective in the third quarter
2021, the Company revised its calculation of Total RPD to include
ancillary retail vehicle sales revenues to better align with
current industry practice. Prior periods shown have been restated
to conform with the revised definition.
Total Revenue Per Unit Per Month ("Total RPU" or "Total
RPU Per Month")
Total RPU Per Month represents the amount of revenue generated
per vehicle in the rental fleet each month, excluding the impact of
foreign currency exchange rates so as not to affect the
comparability of underlying trends. This metric is important to
management and investors as it provides a measure of revenue
productivity relative to the number of vehicles in our rental fleet
whether owned or leased, or asset efficiency.
Historically, the Company excluded revenue generated from
ancillary retail vehicles sales. Effective in the third quarter
2021, the Company revised its calculation of Total RPU to include
ancillary retail vehicle sales revenues to better align with
current industry practice. Also, historically, the company used
Average Vehicles as the denominator to calculate Total RPU and
effective in the first quarter of 2022, the Company revised the
calculation to use Average Rentable Vehicles. Prior periods shown
have been restated to conform with the revised definition.
Transaction Days ("Days"; also referred to as
"volume")
Transaction Days represents the total number of 24-hour periods,
with any partial period counted as one Transaction Day, that
vehicles were on rent (the period between when a rental contract is
opened and closed) in a given period. Thus, it is possible for a
vehicle to attain more than one Transaction Day in a 24-hour
period. This metric is important to management and investors as it
represents the number of revenue-generating days.
Vehicle Utilization ("Utilization")
Effective in the first quarter of 2022, in connection with the
appointment of the new CEO (who serves as our Chief Operating
Decision Maker) and arising from significantly increased activity
in vehicle dispositions, we began using Average Rentable Vehicles
when calculating Available Car Days, Total RPU and Utilization
instead of Average Vehicles. Average Rentable Vehicles excludes
vehicles for sale on the Company's retail lots or actively in the
process of being sold through other disposition channels. We
believe this is a better measure of the productivity of our rental
fleet as it is unaffected by fluctuations in disposition activity.
Prior periods have been restated to conform with the revisions, as
appropriate.
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content:https://www.prnewswire.com/news-releases/hertz-reports-strong-fourth-quarter-and-record-full-year-2022-net-income-and-adjusted-corporate-ebitda-301739893.html
SOURCE Hertz Global Holdings, Inc.