ESTERO, Fla., Feb. 27, 2017 /PRNewswire/ -- Hertz Global
Holdings, Inc. (NYSE: HTZ) ("Hertz Global" or the "Company") today reported a fourth quarter 2016 net loss from continuing
operations of $438 million, or $5.28 per diluted share, including
$254 million of impairment charges, compared with net loss from continuing operations of
$37 million, or $0.43 per diluted share, during the fourth quarter of
2015. On an adjusted basis, the Company reported a net loss for the fourth quarter 2016 of $59
million, or $0.71 per diluted share, compared with adjusted net loss of $25 million, or $0.29 per diluted share, for the same period last year.
Total revenues for the fourth quarter 2016 were $2.0 billion, a 1% decline versus the fourth
quarter 2015. Loss from continuing operations before income taxes for fourth quarter 2016 was $466
million, including $309 million of impairment charges, versus $52
million in the same period last year. Adjusted corporate earnings before interest, taxes, depreciation and amortization
(EBITDA) for the fourth quarter 2016 was $12 million, compared to $94
million in the fourth quarter of 2015, a decline of 87%.
For the full-year 2016, Hertz Global reported net loss from continuing operations of $474
million, or $5.65 per diluted share, including full-year impairment charges of $285 million, versus net income from continuing operations of $115 million, or
$1.26 per diluted share, for 2015. Total revenues for 2016 were $8.8
billion, a decrease of 2% from $9.0 billion for 2015. On an adjusted basis, the Company
reported net income for the full year of $41 million, or $0.49 per
diluted share, compared with adjusted net income of $205 million, or $2.25 per diluted share, for the same period last year. Adjusted corporate EBITDA for 2016 was $553 million, versus $858 million for 2015.
"The company's 2016 performance resulted from issues around fleet and service, which we are addressing," said Kathryn V. Marinello, president and chief executive officer. "In the U.S., we are upgrading the quality and
mix of the fleet and rolling out our more flexible Hertz Ultimate Choice offering, both of which enable customers to get the cars
they want, when they want them.
"In terms of service, we have great employees with the right attitude. We are taking action to ensure that they have the
tools and training to consistently deliver best-in-class service that shows our customers we care. 2017 investments in fleet,
service, marketing and technology will be the catalyst to ultimately generating steady top-line growth."
U.S. RENTAL CAR ("U.S. RAC") SUMMARY
|
U.S. RAC (1)
|
Three Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
|
($ in millions, except where noted)
|
2016
|
|
2015
|
|
|
|
Total Revenues
|
$
|
1,417
|
|
|
$
|
1,413
|
|
|
—
|
%
|
|
|
Depreciation of revenue earning vehicles and lease charges, net
|
$
|
456
|
|
|
$
|
371
|
|
|
23
|
%
|
|
|
Income (loss) from continuing operations before income taxes
|
$
|
(151)
|
|
|
$
|
14
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax income (loss)
|
$
|
(14)
|
|
|
$
|
42
|
|
|
NM
|
|
|
Adjusted pre-tax income (loss) margin
|
(1)
|
%
|
|
3
|
%
|
|
NM
|
|
|
|
|
|
|
|
|
|
Adjusted Corporate EBITDA
|
$
|
8
|
|
|
$
|
72
|
|
|
(89)
|
%
|
|
|
Adjusted Corporate EBITDA margin
|
1
|
%
|
|
5
|
%
|
|
(450)
|
|
bps
|
|
|
|
|
|
|
|
|
Average vehicles
|
473,200
|
|
|
460,400
|
|
|
3
|
%
|
|
|
Transaction days (in thousands)
|
34,056
|
|
|
33,630
|
|
|
1
|
%
|
|
|
Total RPD (in whole dollars)
|
$
|
41.02
|
|
|
$
|
41.54
|
|
|
(1)
|
%
|
|
|
Total RPU (in whole dollars)
|
$
|
984
|
|
|
$
|
1,011
|
|
|
(3)
|
%
|
|
|
Net depreciation per unit per month (in whole dollars)
|
$
|
321
|
|
|
$
|
269
|
|
|
19
|
%
|
|
Total U.S. RAC revenues were $1.4 billion in the fourth quarter 2016, flat versus the same period last year.
Transaction days increased by 1% while pricing, as measured by Total RPD, decreased by 1% year-over-year, which was a 2
percentage point sequential year-over-year improvement from the third quarter 2016.
Fourth quarter U.S. RAC vehicle carrying costs increased $85 million, or 23%. The year-over-year
increase was primarily driven by a decline expected in residual values for current and future sales. As a result, net
vehicle depreciation per unit per month increased 19% versus the same period last year to $321 per
unit per month.
Fourth quarter 2016 adjusted corporate EBITDA for U.S. RAC was $8 million, or a margin of 1%,
which is a $64 million decline versus the same period last year.
INTERNATIONAL RENTAL CAR ("INTERNATIONAL RAC") SUMMARY
|
International RAC (1)
|
Three Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
|
($ in millions, except where noted)
|
2016
|
|
2015
|
|
|
|
Total Revenues
|
$
|
441
|
|
|
$
|
469
|
|
|
(6)
|
%
|
|
|
Depreciation of revenue earning vehicles and lease charges, net
|
$
|
89
|
|
|
$
|
89
|
|
|
—
|
%
|
|
|
Income (loss) from continuing operations before income taxes
|
$
|
(181)
|
|
|
$
|
12
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax income (loss)
|
$
|
15
|
|
|
$
|
11
|
|
|
36
|
%
|
|
|
Adjusted pre-tax income (loss) margin
|
3
|
%
|
|
2
|
%
|
|
110
|
|
bps
|
|
|
|
|
|
|
|
|
Adjusted Corporate EBITDA
|
$
|
23
|
|
|
$
|
23
|
|
|
—
|
%
|
|
|
Adjusted Corporate EBITDA margin
|
5
|
%
|
|
5
|
%
|
|
30
|
|
bps
|
|
|
|
|
|
|
|
|
Average vehicles
|
163,100
|
|
|
159,100
|
|
|
3
|
%
|
|
|
Transaction days (in thousands)
|
10,880
|
|
|
10,748
|
|
|
1
|
%
|
|
|
Total RPD (in whole dollars)
|
$
|
40.99
|
|
|
$
|
43.26
|
|
|
(5)
|
%
|
|
|
Total RPU (in whole dollars)
|
$
|
912
|
|
|
$
|
974
|
|
|
(6)
|
%
|
|
|
Net depreciation per unit per month (in whole dollars)
|
$
|
186
|
|
|
$
|
184
|
|
|
1
|
%
|
|
The Company's International RAC segment revenues were $441 million in the fourth quarter 2016, a
decrease of 6% from the fourth quarter 2015. Excluding an $8 million impact of foreign currency
exchange rates, revenues decreased 4% driven by a 5% decrease in Total RPD, partially offset by a 1% increase in transaction
days. The decline in the International RAC Total RPD reflects, in part, a changing business mix driven by the continued expansion
of our value brands.
Net depreciation per unit per month increased 1% from the prior year, primarily due to a decline in residual values, partially
offset by improved fleet management processes, including strategic procurement and greater use of alternative disposition
channels.
Fourth quarter 2016 adjusted corporate EBITDA for International RAC was $23 million, or a margin
of 5%, which is flat versus fourth quarter last year.
ALL OTHER OPERATIONS
|
All Other Operations (1)
|
Three Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
|
($ in millions)
|
2016
|
|
2015
|
|
|
|
Total Revenues
|
$
|
151
|
|
|
$
|
145
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax income (loss)
|
$
|
19
|
|
|
$
|
18
|
|
|
6
|
%
|
|
|
Adjusted pre-tax income (loss) margin
|
13
|
%
|
|
12
|
%
|
|
20
|
|
bps
|
|
|
|
|
|
|
|
|
Adjusted Corporate EBITDA
|
$
|
18
|
|
|
$
|
18
|
|
|
—
|
%
|
|
|
Adjusted Corporate EBITDA margin
|
12
|
%
|
|
12
|
%
|
|
(50)
|
|
bps
|
|
|
|
|
|
|
|
|
Average vehicles - Donlen
|
197,000
|
|
|
161,600
|
|
|
22
|
%
|
|
All Other Operations, which is primarily comprised of the Company's Donlen leasing operations, reported a 4% increase in total
revenues for the fourth quarter 2016. Adjusted corporate EBITDA for the All Other Operations segment was $18 million in fourth quarter 2016, which was flat year-over-year.
(1) Adjusted pre-tax income (loss), adjusted pre-tax margin, adjusted corporate EBITDA, adjusted corporate EBITDA margin,
adjusted net income (loss), adjusted net income (loss) margin and adjusted diluted earnings per share are non-GAAP
measures. Average vehicles, transaction days, Total RPD, Total RPU and net depreciation per unit per month are key metrics.
See the accompanying Supplemental Schedules and Definitions for the reconciliations and definitions for each of these non-GAAP
measures and key metrics and the reason the Company's management believes that this information is useful to investors.
RESULTS OF THE HERTZ CORPORATION
The GAAP and Non-GAAP profitability metrics for Hertz Global's operating subsidiary, The Hertz Corporation, are materially the
same as those for Hertz Global.
EARNINGS WEBCAST INFORMATION
Hertz Global's fourth-quarter 2016 earnings webcast will be held on February 28, 2017, at
8:30 a.m. U.S. Eastern. The earnings release and related supplemental schedules containing the
reconciliations of non-GAAP measures will be available on our website, IR.Hertz.com.
ANNUAL MEETING OF STOCKHOLDERS
The Company's Board of Directors has set the date of the annual meeting of stockholders for May
31, 2017. Holders of record at the close of business on April 3, 2017, will be
entitled to vote at the meeting. The Annual Meeting will be a completely virtual meeting, which will be conducted via live
audio webcast. Shareholders will be able to attend the Annual Meeting online, vote their shares electronically and submit
questions during the Annual Meeting via a live audio webcast by visiting www.virtualshareholdermeeting.com/hertz . This information will also be announced in the Company's
proxy materials, which it expects to file with the U.S. Securities and Exchange Commission in early April
2017.
SELECTED FINANCIAL AND OPERATING DATA, SUPPLEMENTAL SCHEDULES AND DEFINITIONS
Following are tables that present selected financial and operating data of Hertz Global. Also included are Supplemental
Schedules which are provided to present segment results and reconciliations of non-GAAP measures to their most comparable GAAP
measure. Following the Supplemental Schedules, the Company provides definitions for terminology used throughout this press
release.
ABOUT HERTZ GLOBAL
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental
brands in approximately 9,700 corporate and franchisee locations throughout North America,
Europe, The Caribbean, Latin
America, Africa, the Middle East, Asia, Australia, and New Zealand. The
Hertz Corporation is one of the largest worldwide airport general use vehicle rental companies, and the Hertz brand is one of the
most recognized in the world. Product and service initiatives such as Hertz Gold Plus Rewards, Carfirmations, Mobile Wi-Fi and
unique vehicles offered through the Adrenaline, Dream, Green and Prestige Collections set Hertz apart from the competition.
Additionally, The Hertz Corporation owns the vehicle leasing and fleet management leader Donlen Corporation, operates the Firefly
and Hertz 24/7 car sharing rental business in international markets and sells vehicles through Hertz Car Sales. For more
information about The Hertz Corporation, visit: www.hertz.com .
CAUTIONARY NOTE CONCERNING FORWARD LOOKING STATEMENTS
Certain statements contained in this release, and in related comments by the Company's management, include "forward-looking
statements." Forward-looking statements include information concerning the Company's liquidity and its possible or assumed future
results of operations, including descriptions of its business strategies. These statements often include words such as "believe,"
"expect," "project," "potential," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could,"
"forecasts" or similar expressions. These statements are based on certain assumptions that the Company has made in light of its
experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and
other factors it believes are appropriate in these circumstances. The Company believes these judgments are reasonable, but you
should understand that these statements are not guarantees of performance or results, and the Company's actual results could
differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and
negative, that may be revised or supplemented in subsequent reports on Forms 10-K, 10-Q and 8-K filed or furnished to the
Securities and Exchange Commission ("SEC"). Among other items, such factors could include: any claims, investigations or
proceedings arising as a result of the restatement in 2015 of the Company's previously issued financial results; the Company's
ability to remediate the material weaknesses in its internal controls over financial reporting; levels of travel demand,
particularly with respect to airline passenger traffic in the United States and in global
markets; the effect of the Company's separation of its vehicle and equipment rental businesses, any failure by Herc Holdings Inc.
to comply with the agreements entered into in connection with the separation and the Company's ability to obtain the expected
benefits of the separation; significant changes in the competitive environment, including as a result of industry consolidation,
and the effect of competition in the Company's markets on rental volume and pricing, including on the Company's pricing policies
or use of incentives; increased vehicle costs due to declines in the value of the Company's non-program vehicles; occurrences
that disrupt rental activity during the Company's peak periods; the Company's ability to purchase adequate supplies of
competitively priced vehicles and risks relating to increases in the cost of the vehicles it purchases; the Company's ability to
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 maintain sufficient liquidity and the availability to it of additional or continued sources
of financing for its revenue earning vehicles and to refinance its existing indebtedness; the Company's ability to adequately
respond to changes in technology and customer demands; the Company's ability to maintain access to third-party distribution
channels, including current or favorable prices, commission structures and transaction volumes; an increase in the Company's
vehicle costs or disruption to its rental activity, particularly during its peak periods, due to safety recalls by the
manufacturers of its vehicles; a major disruption in the Company's communication or centralized information networks; financial
instability of the manufacturers of the Company's vehicles; any impact on the Company from the actions of its franchisees,
dealers and independent contractors; the Company's ability to sustain operations during adverse economic cycles and unfavorable
external events (including war, terrorist acts, natural disasters and epidemic disease); shortages of fuel and increases or
volatility in fuel costs; the Company's ability to successfully integrate acquisitions and complete dispositions; the Company's
ability to maintain favorable brand recognition; costs and risks associated with litigation and investigations; risks related to
the Company's indebtedness, including its substantial amount of debt, its ability to incur substantially more debt, the fact that
substantially all of its consolidated assets secure certain of its outstanding indebtedness and increases in interest rates or in
its borrowing margins; the Company's ability to meet the financial and other covenants contained in its Senior Facilities, its
outstanding unsecured Senior Notes and certain asset-backed and asset-based arrangements; changes in accounting principles, or
their application or interpretation, and the Company's ability to make accurate estimates and the assumptions underlying the
estimates, which could have an effect on operating results; risks associated with operating in many different countries,
including the risk of a violation or alleged violation of applicable anticorruption or antibribery laws and our ability to
repatriate cash from non-U.S. affiliates without adverse tax consequences; the Company's ability to successfully outsource a
significant portion of its information technology services or other activities; the Company's ability to successfully implement
its finance and information technology transformation programs; changes in the existing, or the adoption of new laws,
regulations, policies or other activities of governments, agencies and similar organizations where such actions may affect the
Company's operations, the cost thereof or applicable tax rates; changes to the Company's senior management team and the
dependence of its business operations on its senior management team; the effect of tangible and intangible asset impairment
charges; the Company's exposure to uninsured claims in excess of historical levels; fluctuations in interest rates and commodity
prices; the Company's exposure to fluctuations in foreign currency exchange rates and other risks described from time to time in
periodic and current reports that the Company files with the SEC.
Additional information concerning these and other factors can be found in the Company's filings with the SEC, including its
recent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to the Company
or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such
statements speak only as of the date made, and the Company undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information, future events or otherwise.
FINANCIAL INFORMATION AND OPERATING DATA
On June 30, 2016, former Hertz Global Holdings, Inc. (for periods on or prior to June 30, 2016, "Old Hertz Holdings" and for periods after June 30, 2016, "Herc
Holdings") completed the previously announced separation of its existing vehicle rental and equipment rental businesses into two
independent, publicly traded companies (the "Spin-Off"). The separation was structured as a reverse spin-off under which the
vehicle rental business was contributed to the Company, the stock of which was then distributed as a dividend to stockholders of
Old Hertz Holdings. While the Company was the legal spinnee in the separation, the Company is the accounting successor to the
pre-spin-off business. As a result, the former equipment rental business and certain former parent entities of Old Hertz Holdings
are presented as discontinued operations in the Company's financial information. Unless noted otherwise, information presented in
the following tables and supplemental schedules pertain to Hertz Global's continuing operations.
|
SELECTED UNAUDITED CONSOLIDATED INCOME STATEMENT DATA
|
|
|
Three Months Ended
December 31,
|
|
As a Percentage of Total Revenues
|
|
Twelve Months Ended
December 31,
|
|
As a Percentage of Total Revenues
|
|
(In millions, except per share data)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Total revenues
|
$
|
2,009
|
|
|
$
|
2,027
|
|
|
100
|
%
|
|
100
|
%
|
|
$
|
8,803
|
|
|
$
|
9,017
|
|
|
100
|
%
|
|
100
|
%
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct vehicle and operating
|
1,154
|
|
|
1,217
|
|
|
57
|
%
|
|
60
|
%
|
|
4,932
|
|
|
5,055
|
|
|
56
|
%
|
|
56
|
%
|
|
Depreciation of revenue earning vehicles and lease charges, net
|
662
|
|
|
574
|
|
|
33
|
%
|
|
28
|
%
|
|
2,601
|
|
|
2,433
|
|
|
30
|
%
|
|
27
|
%
|
|
Selling, general and administrative
|
213
|
|
|
182
|
|
|
11
|
%
|
|
9
|
%
|
|
899
|
|
|
873
|
|
|
10
|
%
|
|
10
|
%
|
|
Interest expense, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
|
68
|
|
|
65
|
|
|
3
|
%
|
|
3
|
%
|
|
280
|
|
|
253
|
|
|
3
|
%
|
|
3
|
%
|
|
Non-vehicle
|
75
|
|
|
86
|
|
|
4
|
%
|
|
4
|
%
|
|
344
|
|
|
346
|
|
|
4
|
%
|
|
4
|
%
|
|
Total interest expense, net
|
143
|
|
|
151
|
|
|
7
|
%
|
|
7
|
%
|
|
624
|
|
|
599
|
|
|
7
|
%
|
|
7
|
%
|
|
Goodwill and intangible asset impairments
|
292
|
|
|
40
|
|
|
15
|
%
|
|
2
|
%
|
|
292
|
|
|
40
|
|
|
3
|
%
|
|
—
|
%
|
|
Other (income) expense, net
|
11
|
|
|
(85)
|
|
|
1
|
%
|
|
(4)
|
%
|
|
(75)
|
|
|
(115)
|
|
|
(1)
|
%
|
|
(1)
|
%
|
|
Total expenses
|
2,475
|
|
|
2,079
|
|
|
123
|
%
|
|
103
|
%
|
|
9,273
|
|
|
8,885
|
|
|
105
|
%
|
|
99
|
%
|
|
Income (loss) from continuing operations before income taxes
|
(466)
|
|
|
(52)
|
|
|
(23)
|
%
|
|
(3)
|
%
|
|
(470)
|
|
|
132
|
|
|
(5)
|
%
|
|
1
|
%
|
|
Income tax (provision) benefit from continuing operations
|
28
|
|
|
15
|
|
|
1
|
%
|
|
1
|
%
|
|
(4)
|
|
|
(17)
|
|
|
—
|
%
|
|
—
|
%
|
|
Net income (loss) from continuing operations
|
(438)
|
|
|
(37)
|
|
|
(22)
|
%
|
|
(2)
|
%
|
|
(474)
|
|
|
115
|
|
|
(5
|
%
|
|
1
|
%
|
|
Net income (loss) from discontinued operations
|
(2)
|
|
|
107
|
|
|
—
|
%
|
|
5
|
%
|
|
(17)
|
|
|
158
|
|
|
—
|
%
|
|
2
|
%
|
|
Net income (loss)
|
$
|
(440)
|
|
|
$
|
70
|
|
|
(22)
|
%
|
|
3
|
%
|
|
$
|
(491)
|
|
|
$
|
273
|
|
|
(6)
|
%
|
|
3
|
%
|
|
Weighted average number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
83
|
|
|
87
|
|
|
|
|
|
|
84
|
|
|
90
|
|
|
|
|
|
|
Diluted
|
83
|
|
|
87
|
|
|
|
|
|
|
84
|
|
|
91
|
|
|
|
|
|
|
Earnings (loss) per share- basic and diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share from continuing operations
|
$
|
(5.28)
|
|
|
$
|
(0.43)
|
|
|
|
|
|
|
$
|
(5.65)
|
|
|
$
|
1.28
|
|
|
|
|
|
|
Basic earnings (loss) per share from discontinued operations
|
$
|
(0.02)
|
|
|
$
|
1.23
|
|
|
|
|
|
|
$
|
(0.20)
|
|
|
$
|
1.75
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
$
|
(5.30)
|
|
|
$
|
0.80
|
|
|
|
|
|
|
$
|
(5.85)
|
|
|
$
|
3.03
|
|
|
|
|
|
|
Diluted earnings (loss) per share from continuing operations
|
$
|
(5.28)
|
|
|
$
|
(0.43)
|
|
|
|
|
|
|
$
|
(5.65)
|
|
|
$
|
1.26
|
|
|
|
|
|
|
Diluted earnings (loss) per share from discontinued operations
|
$
|
(0.02)
|
|
|
$
|
1.23
|
|
|
|
|
|
|
$
|
(0.20)
|
|
|
$
|
1.74
|
|
|
|
|
|
|
Diluted earnings (loss) per share
|
$
|
(5.30)
|
|
|
$
|
0.80
|
|
|
|
|
|
|
$
|
(5.85)
|
|
|
$
|
3.00
|
|
|
|
|
|
|
Adjusted pre-tax income (loss) (a)
|
$
|
(93)
|
|
|
$
|
(40)
|
|
|
|
|
|
|
$
|
65
|
|
|
$
|
325
|
|
|
|
|
|
|
Adjusted net income (loss)(a)
|
$
|
(59)
|
|
|
$
|
(25)
|
|
|
|
|
|
|
$
|
41
|
|
|
$
|
205
|
|
|
|
|
|
|
Adjusted diluted earnings (loss) per share(a)
|
$
|
(0.71)
|
|
|
$
|
(0.29)
|
|
|
|
|
|
|
$
|
0.49
|
|
|
$
|
2.25
|
|
|
|
|
|
|
Adjusted Corporate EBITDA (a)
|
$
|
12
|
|
|
$
|
94
|
|
|
|
|
|
|
$
|
553
|
|
|
$
|
858
|
|
|
|
|
|
|
(a)
|
Represents a non-GAAP measure, see the accompanying reconciliations
included in Supplemental Schedule II.
|
|
(b)
|
The weighted average number of basic and diluted shares for the three
months and year ended December 31, 2015 is presented as adjusted for the one-to-five distribution ratio as a result
of the Spin-Off.
|
|
SELECTED UNAUDITED CONSOLIDATED BALANCE SHEET DATA
|
|
|
(In millions)
|
December 31, 2016
|
|
December 31, 2015
|
|
Cash and cash equivalents
|
$
|
816
|
|
|
$
|
474
|
|
|
Total restricted cash
|
278
|
|
|
333
|
|
|
Revenue earning vehicles, net:
|
|
|
|
|
U.S. Rental Car
|
7,716
|
|
|
7,600
|
|
|
International Rental Car
|
1,755
|
|
|
1,858
|
|
|
All Other Operations
|
1,347
|
|
|
1,288
|
|
|
Total revenue earning vehicles, net
|
10,818
|
|
|
10,746
|
|
|
Total assets
|
19,155
|
|
|
23,514
|
|
|
Total debt
|
13,541
|
|
|
15,770
|
|
|
Net vehicle debt (a)
|
9,447
|
|
|
9,561
|
|
|
Net non-vehicle debt (a)
|
3,116
|
|
|
5,519
|
|
|
Total equity
|
1,075
|
|
|
2,019
|
|
|
(a)
|
Represents a non-GAAP measure, see the accompanying reconciliation included
in Supplemental Schedule IV.
|
|
SELECTED UNAUDITED CONSOLIDATED CASH FLOW DATA
|
|
|
Twelve Months Ended December 31,
|
|
(In millions)
|
2016
|
|
2015
|
|
Cash from continuing operations provided by (used in):
|
|
|
|
|
Operating activities
|
$
|
2,529
|
|
|
$
|
2,776
|
|
|
Investing activities
|
(1,996)
|
|
|
(2,380)
|
|
|
Financing activities
|
(183)
|
|
|
(368)
|
|
|
Effect of exchange rate changes
|
(8)
|
|
|
(28)
|
|
|
Net change in cash and cash equivalents
|
$
|
342
|
|
|
$
|
—
|
|
|
|
|
|
|
Adjusted free cash flow (a)
|
$
|
258
|
|
|
$
|
713
|
|
|
(a)
|
Represents a non-GAAP measure, see the accompanying reconciliation included
in the Supplemental Schedule III.
|
|
SELECTED UNAUDITED OPERATING DATA BY SEGMENT
|
|
|
Three Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
|
Twelve Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
|
2016
|
|
2015
|
|
|
|
2016
|
|
2015
|
|
|
|
U.S. RAC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction days (in thousands)
|
34,056
|
|
|
33,630
|
|
|
1
|
%
|
|
|
142,268
|
|
|
138,590
|
|
|
3
|
%
|
|
|
Total RPD (a)
|
$
|
41.02
|
|
|
$
|
41.54
|
|
|
(1)
|
%
|
|
|
$
|
42.44
|
|
|
$
|
44.95
|
|
|
(6)
|
%
|
|
|
Total RPU (a)
|
$
|
984
|
|
|
$
|
1,011
|
|
|
(3)
|
%
|
|
|
1,038
|
|
|
1,060
|
|
|
(2)
|
%
|
|
|
Average vehicles
|
473,200
|
|
|
460,400
|
|
|
3
|
%
|
|
|
484,800
|
|
|
489,800
|
|
|
(1)
|
%
|
|
|
Vehicle utilization
|
78
|
%
|
|
79
|
%
|
|
(100)
|
|
bps
|
|
80
|
%
|
|
78
|
%
|
|
200
|
bps
|
|
Net depreciation per unit per month (a)
|
$
|
321
|
|
|
$
|
269
|
|
|
19
|
%
|
|
|
$
|
301
|
|
|
$
|
267
|
|
|
13
|
%
|
|
|
Program vehicles as a percentage of total average vehicles at period
end
|
6
|
%
|
|
17
|
%
|
|
(1,100)
|
|
bps
|
|
6
|
%
|
|
17
|
%
|
|
(1,100)
|
|
bps
|
|
Adjusted pre-tax income (loss)(in millions) (a)
|
$
|
(14)
|
|
|
$
|
42
|
|
|
NM
|
|
|
$
|
298
|
|
|
$
|
551
|
|
|
(46)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International RAC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction days (in thousands)
|
10,880
|
|
|
10,748
|
|
|
1
|
%
|
|
|
48,627
|
|
|
47,860
|
|
|
2
|
%
|
|
|
Total RPD (a)(b)
|
$
|
40.99
|
|
|
$
|
43.26
|
|
|
(5)
|
%
|
|
|
$
|
42.86
|
|
|
$
|
43.54
|
|
|
(2)
|
%
|
|
|
Total RPU (a)(b)
|
$
|
912
|
|
|
$
|
974
|
|
|
(6)
|
%
|
|
|
$
|
1,002
|
|
|
$
|
1,029
|
|
|
(3)
|
%
|
|
|
Average vehicles
|
163,100
|
|
|
159,100
|
|
|
3
|
%
|
|
|
173,400
|
|
|
168,700
|
|
|
3
|
%
|
|
|
Vehicle utilization
|
73
|
%
|
|
73
|
%
|
|
0
|
bps
|
|
77
|
%
|
|
78
|
%
|
|
(100)
|
|
bps
|
|
Net depreciation per unit per month(a) (b)
|
$
|
186
|
|
|
$
|
184
|
|
|
1
|
%
|
|
|
$
|
187
|
|
|
$
|
191
|
|
|
(2)
|
%
|
|
|
Program vehicles as a percentage of total average vehicles at period
end
|
31
|
%
|
|
33
|
%
|
|
(200)
|
|
bps
|
|
31
|
%
|
|
33
|
%
|
|
(200)
|
|
bps
|
|
Adjusted pre-tax income (loss)(in millions) (a)
|
$
|
15
|
|
|
$
|
11
|
|
|
36
|
%
|
|
|
$
|
194
|
|
|
$
|
215
|
|
|
(10)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average vehicles — Donlen
|
197,000
|
|
|
161,600
|
|
|
22
|
%
|
|
|
174,900
|
|
|
164,100
|
|
|
7
|
%
|
|
|
Adjusted pre-tax income (loss) (in millions) (a)
|
$
|
19
|
|
|
$
|
18
|
|
|
6
|
%
|
|
|
$
|
72
|
|
|
$
|
68
|
|
|
6
|
%
|
|
|
(a)
|
Represents a non-GAAP measure or key metric, see the accompanying
reconciliations included in Supplemental Schedules II and V.
|
|
(b)
|
Based on December 31, 2015 foreign currency exchange rates.
|
|
Supplemental Schedule I
|
|
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
|
|
|
Three Months Ended December 31, 2016
|
|
Three Months Ended December 31, 2015
|
|
(In millions)
|
U.S. Rental Car
|
|
Int'l Rental Car
|
|
All Other Operations
|
|
Corporate
|
|
Hertz Global
|
|
U.S. Rental Car
|
|
Int'l Rental Car
|
|
All Other Operations
|
|
Corporate
|
|
Hertz Global
|
|
Total revenues:
|
$
|
1,417
|
|
|
$
|
441
|
|
|
$
|
151
|
|
|
$
|
—
|
|
|
$
|
2,009
|
|
|
$
|
1,413
|
|
|
$
|
469
|
|
|
$
|
145
|
|
|
$
|
—
|
|
|
$
|
2,027
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct vehicle and operating
|
873
|
|
|
277
|
|
|
5
|
|
|
(1)
|
|
|
1,154
|
|
|
904
|
|
|
301
|
|
|
6
|
|
|
6
|
|
|
1,217
|
|
|
Depreciation of revenue earning vehicles and lease charges, net
|
456
|
|
|
89
|
|
|
117
|
|
|
—
|
|
|
662
|
|
|
371
|
|
|
89
|
|
|
114
|
|
|
—
|
|
|
574
|
|
|
Selling, general and administrative
|
90
|
|
|
48
|
|
|
10
|
|
|
65
|
|
|
213
|
|
|
86
|
|
|
53
|
|
|
8
|
|
|
35
|
|
|
182
|
|
|
Interest expense, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
|
46
|
|
|
17
|
|
|
5
|
|
|
—
|
|
|
68
|
|
|
46
|
|
|
15
|
|
|
4
|
|
|
—
|
|
|
65
|
|
|
Non-vehicle
|
(16)
|
|
|
—
|
|
|
(2)
|
|
|
93
|
|
|
75
|
|
|
(6)
|
|
|
2
|
|
|
(1)
|
|
|
91
|
|
|
86
|
|
|
Total interest expense, net
|
30
|
|
|
17
|
|
|
3
|
|
|
93
|
|
|
143
|
|
|
40
|
|
|
17
|
|
|
3
|
|
|
91
|
|
|
151
|
|
|
Goodwill and intangible asset impairments
|
120
|
|
|
172
|
|
|
—
|
|
|
—
|
|
|
292
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|
40
|
|
|
Other (income) expense, net
|
(1)
|
|
|
19
|
|
|
—
|
|
|
(7)
|
|
|
11
|
|
|
(2)
|
|
|
(3)
|
|
|
—
|
|
|
(80)
|
|
|
(85)
|
|
|
Total expenses
|
1,568
|
|
|
622
|
|
|
135
|
|
|
150
|
|
|
2,475
|
|
|
1,399
|
|
|
457
|
|
|
131
|
|
|
92
|
|
|
2,079
|
|
|
Income (loss) from continuing operations before income taxes
|
$
|
(151)
|
|
|
$
|
(181)
|
|
|
$
|
16
|
|
|
$
|
(150)
|
|
|
(466)
|
|
|
$
|
14
|
|
|
$
|
12
|
|
|
$
|
14
|
|
|
$
|
(92)
|
|
|
(52)
|
|
|
Income tax (provision) benefit from continuing operations
|
|
|
|
|
|
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
15
|
|
|
Net income (loss) from continuing operations
|
|
|
|
|
|
|
|
|
(438)
|
|
|
|
|
|
|
|
|
|
|
(37)
|
|
|
Net income (loss) from discontinued operations
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
107
|
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
$
|
(440)
|
|
|
|
|
|
|
|
|
|
|
$
|
70
|
|
|
Supplemental Schedule I (continued)
|
|
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
|
|
|
Twelve Months Ended December 31, 2016
|
|
Twelve Months Ended December 31, 2015
|
|
(In millions)
|
U.S. Rental Car
|
|
Int'l Rental Car
|
|
All Other Operations
|
|
Corporate
|
|
Hertz Global
|
|
U.S. Rental Car
|
|
Int'l Rental Car
|
|
All Other Operations
|
|
Corporate
|
|
Hertz Global
|
|
Total revenues:
|
$
|
6,114
|
|
|
$
|
2,097
|
|
|
$
|
592
|
|
|
$
|
—
|
|
|
$
|
8,803
|
|
|
$
|
6,286
|
|
|
$
|
2,148
|
|
|
$
|
583
|
|
|
$
|
—
|
|
|
$
|
9,017
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct vehicle and operating
|
3,646
|
|
|
1,256
|
|
|
22
|
|
|
8
|
|
|
4,932
|
|
|
3,759
|
|
|
1,251
|
|
|
24
|
|
|
21
|
|
|
5,055
|
|
|
Depreciation of revenue earning vehicles and lease charges, net
|
1,753
|
|
|
389
|
|
|
459
|
|
|
—
|
|
|
2,601
|
|
|
1,572
|
|
|
398
|
|
|
463
|
|
|
—
|
|
|
2,433
|
|
|
Selling, general and administrative
|
397
|
|
|
215
|
|
|
40
|
|
|
247
|
|
|
899
|
|
|
374
|
|
|
237
|
|
|
31
|
|
|
231
|
|
|
873
|
|
|
Interest expense, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
|
199
|
|
|
61
|
|
|
20
|
|
|
—
|
|
|
280
|
|
|
176
|
|
|
63
|
|
|
14
|
|
|
—
|
|
|
253
|
|
|
Non-vehicle
|
(45)
|
|
|
5
|
|
|
(6)
|
|
|
390
|
|
|
344
|
|
|
(11)
|
|
|
7
|
|
|
(4)
|
|
|
354
|
|
|
346
|
|
|
Total interest expense, net
|
154
|
|
|
66
|
|
|
14
|
|
|
390
|
|
|
624
|
|
|
165
|
|
|
70
|
|
|
10
|
|
|
354
|
|
|
599
|
|
|
Goodwill and intangible asset impairments
|
120
|
|
|
172
|
|
|
—
|
|
|
—
|
|
|
292
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|
40
|
|
|
Other (income) expense, net
|
(12)
|
|
|
19
|
|
|
—
|
|
|
(82)
|
|
|
(75)
|
|
|
3
|
|
|
21
|
|
|
—
|
|
|
(139)
|
|
|
(115)
|
|
|
Total expenses
|
6,058
|
|
|
2,117
|
|
|
535
|
|
|
563
|
|
|
9,273
|
|
|
5,873
|
|
|
1,977
|
|
|
528
|
|
|
507
|
|
|
8,885
|
|
|
Income (loss) from continuing operations before income taxes
|
$
|
56
|
|
|
$
|
(20)
|
|
|
$
|
57
|
|
|
$
|
(563)
|
|
|
(470)
|
|
|
$
|
413
|
|
|
$
|
171
|
|
|
$
|
55
|
|
|
$
|
(507)
|
|
|
132
|
|
|
Income tax (provision) benefit from continuing operations
|
|
|
|
|
|
|
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
(17)
|
|
|
Net income (loss) from continuing operations
|
|
|
|
|
|
|
|
|
(474)
|
|
|
|
|
|
|
|
|
|
|
115
|
|
|
Net income (loss) from discontinued operations
|
|
|
|
|
|
|
|
|
(17)
|
|
|
|
|
|
|
|
|
|
|
158
|
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
$
|
(491)
|
|
|
|
|
|
|
|
|
|
|
$
|
273
|
|
|
Supplemental Schedule II
|
|
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME
TAXES
TO GROSS EBITDA, CORPORATE EBITDA, ADJUSTED CORPORATE EBITDA, ADJUSTED
PRE-TAX INCOME (LOSS)
AND ADJUSTED NET INCOME (LOSS)
Unaudited
|
|
|
Three Months Ended December 31, 2016
|
|
Three Months Ended December 31, 2015
|
|
(In millions)
|
U.S. Rental Car
|
|
Int'l Rental car
|
|
All Other Operations
|
|
Corporate
|
|
Hertz Global(a)
|
|
U.S. Rental Car
|
|
Int'l Rental car
|
|
All Other Operations
|
|
Corporate
|
|
Hertz Global(a)
|
|
Income (loss) from continuing operations before income taxes
|
$
|
(151)
|
|
|
$
|
(181)
|
|
|
$
|
16
|
|
|
$
|
(150)
|
|
|
$
|
(466)
|
|
|
$
|
14
|
|
|
$
|
12
|
|
|
$
|
14
|
|
|
$
|
(92)
|
|
|
$
|
(52)
|
|
|
Depreciation and amortization
|
506
|
|
|
98
|
|
|
120
|
|
|
6
|
|
|
730
|
|
|
425
|
|
|
97
|
|
|
117
|
|
|
4
|
|
|
643
|
|
|
Interest, net of interest income
|
30
|
|
|
17
|
|
|
3
|
|
|
93
|
|
|
143
|
|
|
40
|
|
|
17
|
|
|
3
|
|
|
91
|
|
|
151
|
|
|
Gross EBITDA
|
$
|
385
|
|
|
$
|
(66)
|
|
|
$
|
139
|
|
|
$
|
(51)
|
|
|
$
|
407
|
|
|
$
|
479
|
|
|
$
|
126
|
|
|
$
|
134
|
|
|
$
|
3
|
|
|
$
|
742
|
|
|
Revenue earning vehicle depreciation and lease charges, net
|
(456)
|
|
|
(89)
|
|
|
(117)
|
|
|
—
|
|
|
(662)
|
|
|
(371)
|
|
|
(89)
|
|
|
(114)
|
|
|
—
|
|
|
(574)
|
|
|
Vehicle debt interest
|
(46)
|
|
|
(17)
|
|
|
(5)
|
|
|
—
|
|
|
(68)
|
|
|
(46)
|
|
|
(15)
|
|
|
(4)
|
|
|
—
|
|
|
(65)
|
|
|
Vehicle debt-related charges(b)
|
5
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
8
|
|
|
8
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
11
|
|
|
Loss on extinguishment of vehicle-related debt (c)
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Corporate EBITDA
|
$
|
(113)
|
|
|
$
|
(170)
|
|
|
$
|
18
|
|
|
$
|
(51)
|
|
|
$
|
(316)
|
|
|
$
|
70
|
|
|
$
|
23
|
|
|
$
|
18
|
|
|
$
|
3
|
|
|
$
|
114
|
|
|
Non-cash stock-based employee compensation charges
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
(3)
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
Restructuring and restructuring related charges (d)
|
(1)
|
|
|
2
|
|
|
—
|
|
|
11
|
|
|
12
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
13
|
|
|
Sale of CAR, Inc. common stock(e)
|
—
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
|
(9)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(77)
|
|
|
(77)
|
|
|
Impairment charges and write-downs(f)
|
119
|
|
|
190
|
|
|
—
|
|
|
—
|
|
|
309
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|
42
|
|
|
Finance and information technology transformation costs
(g)
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Miscellaneous, unusual or non-recurring items(h)
|
3
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
6
|
|
|
(2)
|
|
|
(3)
|
|
|
—
|
|
|
4
|
|
|
(1)
|
|
|
Adjusted Corporate EBITDA
|
$
|
8
|
|
|
$
|
23
|
|
|
$
|
18
|
|
|
$
|
(37)
|
|
|
$
|
12
|
|
|
$
|
72
|
|
|
$
|
23
|
|
|
$
|
18
|
|
|
$
|
(19)
|
|
|
$
|
94
|
|
|
Non-vehicle depreciation and amortization
|
(50)
|
|
|
(9)
|
|
|
(3)
|
|
|
(6)
|
|
|
(68)
|
|
|
(54)
|
|
|
(8)
|
|
|
(3)
|
|
|
(4)
|
|
|
(69)
|
|
|
Non-vehicle debt interest, net of interest income
|
16
|
|
|
—
|
|
|
2
|
|
|
(93)
|
|
|
(75)
|
|
|
6
|
|
|
(2)
|
|
|
1
|
|
|
(91)
|
|
|
(86)
|
|
|
Non-vehicle debt-related charges (b)
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
3
|
|
|
Loss on extinguishment of non-vehicle-related debt
(c)
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Non-cash stock-based employee compensation charges
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
Acquisition accounting (i)
|
12
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
15
|
|
|
17
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
21
|
|
|
Adjusted pre-tax income (loss)(j)
|
$
|
(14)
|
|
|
$
|
15
|
|
|
$
|
19
|
|
|
$
|
(113)
|
|
|
$
|
(93)
|
|
|
$
|
42
|
|
|
$
|
11
|
|
|
$
|
18
|
|
|
$
|
(111)
|
|
|
$
|
(40)
|
|
|
Income tax (provision) benefit on adjusted pre-tax income
(loss)(k)
|
|
|
|
|
|
|
|
|
34
|
|
|
|
|
|
|
|
|
|
|
15
|
|
|
Adjusted net income (loss)
|
|
|
|
|
|
|
|
|
$
|
(59)
|
|
|
|
|
|
|
|
|
|
|
$
|
(25)
|
|
|
Weighted average number of diluted shares outstanding
|
|
|
|
|
|
|
|
|
83
|
|
|
|
|
|
|
|
|
|
|
87
|
|
|
Adjusted diluted earnings (loss) per share
|
|
|
|
|
|
|
|
|
$
|
(0.71)
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.29)
|
|
|
Supplemental Schedule II (continued)
|
|
HERTZ GLOBAL HOLDINGS, INC
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME
TAXES
TO GROSS EBITDA, CORPORATE EBITDA, ADJUSTED CORPORATE EBITDA, ADJUSTED
PRE-TAX INCOME (LOSS)
AND ADJUSTED NET INCOME (LOSS)
Unaudited
|
|
|
Twelve Months Ended December 31, 2016
|
|
Twelve Months Ended December 31, 2015
|
|
(In millions)
|
U.S. Rental Car
|
|
Int'l Rental car
|
|
All Other Operations
|
|
Corporate
|
|
Hertz Global(a)
|
|
U.S. Rental Car
|
|
Int'l Rental car
|
|
All Other Operations
|
|
Corporate
|
|
Hertz Global(a)
|
|
Income (loss) from continuing operations before income taxes
|
$
|
56
|
|
|
$
|
(20)
|
|
|
$
|
57
|
|
|
$
|
(563)
|
|
|
$
|
(470)
|
|
|
$
|
413
|
|
|
$
|
171
|
|
|
$
|
55
|
|
|
$
|
(507)
|
|
|
$
|
132
|
|
|
Depreciation and amortization
|
1,951
|
|
|
422
|
|
|
470
|
|
|
23
|
|
|
2,866
|
|
|
1,781
|
|
|
435
|
|
|
473
|
|
|
18
|
|
|
2,707
|
|
|
Interest, net of interest income
|
154
|
|
|
66
|
|
|
14
|
|
|
390
|
|
|
624
|
|
|
165
|
|
|
70
|
|
|
10
|
|
|
354
|
|
|
599
|
|
|
Gross EBITDA
|
$
|
2,161
|
|
|
$
|
468
|
|
|
$
|
541
|
|
|
$
|
(150)
|
|
|
$
|
3,020
|
|
|
$
|
2,359
|
|
|
$
|
676
|
|
|
$
|
538
|
|
|
$
|
(135)
|
|
|
$
|
3,438
|
|
|
Revenue earning vehicle depreciation and lease charges, net
|
(1,753)
|
|
|
(389)
|
|
|
(459)
|
|
|
—
|
|
|
(2,601)
|
|
|
(1,572)
|
|
|
(398)
|
|
|
(463)
|
|
|
—
|
|
|
(2,433)
|
|
|
Vehicle debt interest
|
(199)
|
|
|
(61)
|
|
|
(20)
|
|
|
—
|
|
|
(280)
|
|
|
(176)
|
|
|
(63)
|
|
|
(14)
|
|
|
—
|
|
|
(253)
|
|
|
Vehicle debt-related charges(b)
|
17
|
|
|
8
|
|
|
3
|
|
|
—
|
|
|
28
|
|
|
30
|
|
|
7
|
|
|
5
|
|
|
—
|
|
|
42
|
|
|
Loss on extinguishment of vehicle-related debt (c)
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Corporate EBITDA
|
$
|
232
|
|
|
$
|
26
|
|
|
$
|
65
|
|
|
$
|
(150)
|
|
|
$
|
173
|
|
|
$
|
641
|
|
|
$
|
222
|
|
|
$
|
66
|
|
|
$
|
(135)
|
|
|
$
|
794
|
|
|
Non-cash stock-based employee compensation charges
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
13
|
|
|
16
|
|
|
Restructuring and restructuring related charges (d)
|
16
|
|
|
9
|
|
|
3
|
|
|
25
|
|
|
53
|
|
|
16
|
|
|
9
|
|
|
—
|
|
|
59
|
|
|
84
|
|
|
Sale of CAR, Inc. common stock(e)
|
—
|
|
|
—
|
|
|
—
|
|
|
(84)
|
|
|
(84)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(133)
|
|
|
(133)
|
|
|
Impairment charges and write-downs(f)
|
149
|
|
|
190
|
|
|
1
|
|
|
—
|
|
|
340
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|
57
|
|
|
Finance and information technology transformation costs
(g)
|
11
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Miscellaneous, unusual or non-recurring items(h)
|
(8)
|
|
|
3
|
|
|
—
|
|
|
10
|
|
|
5
|
|
|
1
|
|
|
21
|
|
|
—
|
|
|
18
|
|
|
40
|
|
|
Adjusted Corporate EBITDA
|
$
|
400
|
|
|
$
|
228
|
|
|
$
|
69
|
|
|
$
|
(144)
|
|
|
$
|
553
|
|
|
$
|
675
|
|
|
$
|
255
|
|
|
$
|
66
|
|
|
$
|
(138)
|
|
|
$
|
858
|
|
|
Non-vehicle depreciation and amortization
|
(198)
|
|
|
(33)
|
|
|
(11)
|
|
|
(23)
|
|
|
(265)
|
|
|
(209)
|
|
|
(37)
|
|
|
(10)
|
|
|
(18)
|
|
|
(274)
|
|
|
Non-vehicle debt interest, net of interest income
|
45
|
|
|
(5)
|
|
|
6
|
|
|
(390)
|
|
|
(344)
|
|
|
11
|
|
|
(7)
|
|
|
4
|
|
|
(354)
|
|
|
(346)
|
|
|
Non-vehicle debt-related charges (b)
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
20
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
16
|
|
|
Loss on extinguishment of non-vehicle-related debt
(c)
|
—
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Non-cash stock-based employee compensation charges
|
—
|
|
|
—
|
|
|
—
|
|
|
(13)
|
|
|
(13)
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
|
(13)
|
|
|
(16)
|
|
|
Acquisition accounting (i)
|
51
|
|
|
4
|
|
|
8
|
|
|
2
|
|
|
65
|
|
|
72
|
|
|
7
|
|
|
8
|
|
|
—
|
|
|
87
|
|
|
Adjusted pre-tax income (loss)(j)
|
$
|
298
|
|
|
$
|
194
|
|
|
$
|
72
|
|
|
$
|
(499)
|
|
|
$
|
65
|
|
|
$
|
551
|
|
|
$
|
215
|
|
|
$
|
68
|
|
|
$
|
(509)
|
|
|
$
|
325
|
|
|
Income tax (provision) benefit on adjusted pre-tax income
(loss)(k)
|
|
|
|
|
|
|
|
|
(24)
|
|
|
|
|
|
|
|
|
|
|
(120)
|
|
|
Adjusted net income (loss)
|
|
|
|
|
|
|
|
|
$
|
41
|
|
|
|
|
|
|
|
|
|
|
$
|
205
|
|
|
Weighted average number of diluted shares outstanding
|
|
|
|
|
|
|
|
|
84
|
|
|
|
|
|
|
|
|
|
|
91
|
|
|
Adjusted diluted earnings (loss) per share
|
|
|
|
|
|
|
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
$
|
2.25
|
|
|
(a)
|
Excludes discontinued operations.
|
|
(b)
|
Represents debt-related charges relating to the normal amortization of
deferred financing costs and debt discounts and premiums.
|
|
(c)
|
In 2016, primarily represents the second quarter 2016 write-off of deferred
financing costs and debt discount of $20 million as a result of paying off the Senior Term Facility and various vehicle
debt refinancings, an early redemption premium of $13 million and the write off of $7 million in deferred financing costs
associated with the redemption of all of the 7.50% Senior Notes due October 2018 and certain vehicle debt refinancings
during the third quarter 2016 and an early redemption premium of $14 million and the write off of deferred financing
costs of $1 million primarily associated with the redemption of $800 million of the 6.75% Senior Notes due April 2019
during the fourth quarter 2016. There were no early extinguishments of debt in 2015.
|
|
(d)
|
Represents expenses incurred under restructuring actions as defined in U.S.
GAAP. Also represents certain other charges such as incremental costs incurred directly supporting business
transformation initiatives. Such costs include transition costs incurred in connection with business process outsourcing
arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve
significant organization redesign and extensive operational process changes. Also includes consulting costs and legal
fees related to the accounting review and investigation, primarily in 2015.
|
|
(e)
|
Represents the pre-tax gain on the sale of shares of CAR Inc. common
stock.
|
|
(f)
|
In 2016, includes a third quarter impairment of $25 million of certain
tangible assets used in the U.S. RAC segment in conjunction with a restructuring program. Also includes a $120 million
impairment of the Dollar Thrifty tradename, a $172 million impairment of goodwill associated with the Company's vehicle
rental operations in Europe, and a $18 million impairment of certain assets used in the Company's Brazil operations, all
of which were recorded in the fourth quarter 2016. In 2015, includes first quarter impairments of the former Dollar
Thrifty headquarters and a corporate asset, a third quarter impairment of a building in the U.S. RAC segment and a fourth
quarter impairment in the amount of $40 million related to the tradename associated with the Company's former equipment
rental business.
|
|
(g)
|
Represents external costs associated with the Company's finance and
information technology transformation programs, both of which are multi-year initiatives to upgrade and modernize the
Company's systems and processes.
|
|
(h)
|
Includes miscellaneous and non-recurring items including but not limited to
acquisition charges, integration charges, and other non-cash items. For 2016, also includes a first quarter settlement
gain of $9 million related to one of the Company's U.S. airport locations. For 2015, also includes a $23 million
charge recorded in the third quarter in the Company's International RAC segment related to a French road tax
matter.
|
|
(i)
|
Represents incremental expense associated with amortization of other
intangible assets and depreciation of property and other equipment relating to acquisition accounting.
|
|
(j)
|
Adjustments by caption to arrive at adjusted pre-tax income (loss) are as
follows:
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
(In millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Direct vehicle and operating
|
$
|
(15)
|
|
|
$
|
(25)
|
|
|
$
|
(98)
|
|
|
$
|
(112)
|
|
|
Selling, general and administrative
|
(29)
|
|
|
(13)
|
|
|
(115)
|
|
|
(85)
|
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
Vehicle
|
(7)
|
|
|
(11)
|
|
|
(37)
|
|
|
(42)
|
|
|
Non-vehicle
|
(19)
|
|
|
(3)
|
|
|
(65)
|
|
|
(16)
|
|
|
Total interest expense, net
|
(26)
|
|
|
(14)
|
|
|
(102)
|
|
|
(58)
|
|
|
Other (income) expense, net
|
(303)
|
|
|
40
|
|
|
(220)
|
|
|
62
|
|
|
Total adjustments
|
$
|
(373)
|
|
|
$
|
(12)
|
|
|
$
|
(535)
|
|
|
$
|
(193)
|
|
|
(k)
|
Represents an income tax (provision) benefit derived utilizing a combined
statutory rate of 37% applied to the adjusted income (loss) before income taxes to arrive at the adjusted income tax
(provision) benefit.
|
|
Supplemental Schedule III
|
|
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE - ADJUSTED FREE CASH
FLOW
Unaudited
|
|
|
Reconciliation of Cash Flows From Operating Activities to Adjusted Free
Cash Flow
|
Twelve Months Ended
December 31,
|
|
(In millions)
|
2016
|
|
2015
|
|
Net cash provided by operating activities
|
$
|
2,529
|
|
|
$
|
2,776
|
|
|
Net change in restricted cash and cash equivalents, vehicle
|
53
|
|
|
221
|
|
|
Revenue earning vehicles expenditures
|
(10,957)
|
|
|
(11,386)
|
|
|
Proceeds from disposal of revenue earning vehicles
|
8,764
|
|
|
8,796
|
|
|
Capital asset expenditures, non-vehicle
|
(134)
|
|
|
(250)
|
|
|
Proceeds from disposal of property and other equipment
|
59
|
|
|
107
|
|
|
Proceeds from issuance of vehicle debt
|
9,692
|
|
|
7,528
|
|
|
Repayments of vehicle debt
|
(9,748)
|
|
|
(7,079)
|
|
|
Adjusted free cash flow
|
$
|
258
|
|
|
$
|
713
|
|
|
Supplemental Schedule IV
|
|
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE - NET DEBT
Unaudited
|
|
|
As of December 31, 2016
|
|
As of December 31, 2015
|
|
(In millions)
|
Vehicle
|
|
Non-Vehicle
|
|
Total
|
|
Vehicle
|
|
Non-Vehicle
|
|
Total
|
|
Debt as reported in the balance sheet
|
$
|
9,646
|
|
|
$
|
3,895
|
|
|
$
|
13,541
|
|
|
$
|
9,823
|
|
|
$
|
5,947
|
|
|
$
|
15,770
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt issue costs deducted from debt obligations (a)
|
36
|
|
|
37
|
|
|
73
|
|
|
27
|
|
|
46
|
|
|
73
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
—
|
|
|
816
|
|
|
816
|
|
|
—
|
|
|
474
|
|
|
474
|
|
|
Restricted cash
|
235
|
|
|
—
|
|
|
235
|
|
|
289
|
|
|
—
|
|
|
289
|
|
|
Net debt
|
$
|
9,447
|
|
|
$
|
3,116
|
|
|
$
|
12,563
|
|
|
$
|
9,561
|
|
|
$
|
5,519
|
|
|
$
|
15,080
|
|
|
(a)
|
Certain debt issue costs are required to be reported as a deduction from
the carrying amount of the related debt obligation under GAAP. Management believes that eliminating the effects that
these costs have on debt will more accurately reflect the Company's net debt position.
|
|
Supplemental Schedule V
|
|
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF KEY METRICS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
|
|
|
U.S. Rental Car
|
|
|
Three Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
|
Twelve Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
|
($ in millions, except as noted)
|
2016
|
|
2015
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
Total RPD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,417
|
|
|
$
|
1,413
|
|
|
|
|
|
$
|
6,114
|
|
|
$
|
6,286
|
|
|
|
|
|
Ancillary retail vehicle sales revenue
|
(20)
|
|
|
(16)
|
|
|
|
|
|
(76)
|
|
|
(57)
|
|
|
|
|
|
Total rental revenue
|
$
|
1,397
|
|
|
$
|
1,397
|
|
|
|
|
|
$
|
6,038
|
|
|
$
|
6,229
|
|
|
|
|
|
Transaction days (in thousands)
|
34,056
|
|
|
33,630
|
|
|
|
|
|
142,268
|
|
|
138,590
|
|
|
|
|
|
Total RPD (in whole dollars)
|
$
|
41.02
|
|
|
$
|
41.54
|
|
|
(1)%
|
|
|
|
$
|
42.44
|
|
|
$
|
44.95
|
|
|
(6)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue Per Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental revenue
|
$
|
1,397
|
|
|
$
|
1,397
|
|
|
|
|
|
$
|
6,038
|
|
|
$
|
6,229
|
|
|
|
|
|
Average vehicles
|
473,200
|
|
|
460,400
|
|
|
|
|
|
484,800
|
|
|
489,800
|
|
|
|
|
|
Total revenue per unit (in whole dollars)
|
$
|
2,952
|
|
|
$
|
3,034
|
|
|
|
|
|
$
|
12,455
|
|
|
$
|
12,717
|
|
|
|
|
|
Number of months in period
|
3
|
|
|
3
|
|
|
|
|
|
12
|
|
|
12
|
|
|
|
|
|
Total RPU (in whole dollars)
|
$
|
984
|
|
|
$
|
1,011
|
|
|
(3)%
|
|
|
|
$
|
1,038
|
|
|
$
|
1,060
|
|
|
(2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle Utilization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction days (in thousands)
|
34,056
|
|
|
33,630
|
|
|
|
|
|
142,268
|
|
|
138,590
|
|
|
|
|
|
Average vehicles
|
473,200
|
|
|
460,400
|
|
|
|
|
|
484,800
|
|
|
489,800
|
|
|
|
|
|
Number of days in period
|
92
|
|
|
92
|
|
|
|
|
|
366
|
|
|
365
|
|
|
|
|
|
Available car days (in thousands)
|
43,534
|
|
|
42,357
|
|
|
|
|
|
177,437
|
|
|
178,777
|
|
|
|
|
|
Vehicle utilization(a)
|
78
|
%
|
|
79
|
%
|
|
(100)
|
|
bps
|
|
80
|
%
|
|
78
|
%
|
|
200
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Depreciation Per Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of revenue earning vehicles and lease charges, net
|
$
|
456
|
|
|
371
|
|
|
|
|
|
$
|
1,753
|
|
|
$
|
1,572
|
|
|
|
|
|
Average vehicles
|
473,200
|
|
|
460,400
|
|
|
|
|
|
484,800
|
|
|
489,800
|
|
|
|
|
|
Depreciation of revenue earning vehicles and lease charges, net divided by
average vehicles (in whole dollars)
|
$
|
964
|
|
|
$
|
806
|
|
|
|
|
|
$
|
3,616
|
|
|
$
|
3,209
|
|
|
|
|
|
Number of months in period
|
3
|
|
|
3
|
|
|
|
|
|
12
|
|
|
12
|
|
|
|
|
|
Net depreciation per unit per month (in whole dollars)
|
$
|
321
|
|
|
$
|
269
|
|
|
19
|
%
|
|
|
$
|
301
|
|
|
$
|
267
|
|
|
13
|
%
|
|
|
(a)
|
Calculated as transaction days divided by available car days.
|
|
Supplemental Schedule V (continued)
|
|
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF KEY METRICS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
|
|
|
International Rental Car
|
|
|
Three Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
|
Twelve Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
|
($ in millions, except as noted)
|
2016
|
|
2015
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
Total RPD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
441
|
|
|
$
|
469
|
|
|
|
|
|
$
|
2,097
|
|
|
$
|
2,148
|
|
|
|
|
|
Foreign currency adjustment (a)
|
5
|
|
|
(4)
|
|
|
|
|
|
(13)
|
|
|
(64)
|
|
|
|
|
|
Total rental revenue
|
$
|
446
|
|
|
$
|
465
|
|
|
|
|
|
$
|
2,084
|
|
|
$
|
2,084
|
|
|
|
|
|
Transaction days (in thousands)
|
10,880
|
|
|
10,748
|
|
|
|
|
|
48,627
|
|
|
47,860
|
|
|
|
|
|
Total RPD (in whole dollars)
|
$
|
40.99
|
|
|
$
|
43.26
|
|
|
(5)%
|
|
|
|
$
|
42.86
|
|
|
$
|
43.54
|
|
|
(2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue Per Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental revenue
|
$
|
446
|
|
|
$
|
465
|
|
|
|
|
|
$
|
2,084
|
|
|
$
|
2,084
|
|
|
|
|
|
Average vehicles
|
163,100
|
|
|
159,100
|
|
|
|
|
|
173,400
|
|
|
168,700
|
|
|
|
|
|
Total revenue per unit (in whole dollars)
|
$
|
2,735
|
|
|
$
|
2,923
|
|
|
|
|
|
$
|
12,018
|
|
|
$
|
12,353
|
|
|
|
|
|
Number of months in period
|
3
|
|
|
3
|
|
|
|
|
|
12
|
|
|
12
|
|
|
|
|
|
Total RPU (in whole dollars)
|
$
|
912
|
|
|
$
|
974
|
|
|
(6)%
|
|
|
|
$
|
1,002
|
|
|
$
|
1,029
|
|
|
(3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle Utilization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction days (in thousands)
|
10,880
|
|
|
10,748
|
|
|
|
|
|
48,627
|
|
|
47,860
|
|
|
|
|
|
Average vehicles
|
163,100
|
|
|
159,100
|
|
|
|
|
|
173,400
|
|
|
168,700
|
|
|
|
|
|
Number of days in period
|
92
|
|
|
92
|
|
|
|
|
|
366
|
|
|
365
|
|
|
|
|
|
Available car days (in thousands)
|
15,005
|
|
|
14,637
|
|
|
|
|
|
63,464
|
|
|
61,576
|
|
|
|
|
|
Vehicle utilization(b)
|
73
|
%
|
|
73
|
%
|
|
0
|
bps
|
|
77
|
%
|
|
78
|
%
|
|
(100)
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Depreciation Per Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of revenue earning vehicles and lease charges, net
|
$
|
89
|
|
|
$
|
89
|
|
|
|
|
|
$
|
389
|
|
|
$
|
398
|
|
|
|
|
|
Foreign currency adjustment (a)
|
2
|
|
|
(1)
|
|
|
|
|
|
—
|
|
|
(12)
|
|
|
|
|
|
Adjusted depreciation of revenue earning vehicles and lease charges,
net
|
$
|
91
|
|
|
$
|
88
|
|
|
|
|
|
$
|
389
|
|
|
$
|
386
|
|
|
|
|
|
Average vehicles
|
163,100
|
|
|
159,100
|
|
|
|
|
|
173,400
|
|
|
168,700
|
|
|
|
|
|
Adjusted depreciation of revenue earning vehicles and lease charges, net
divided by average vehicles (in whole dollars)
|
$
|
558
|
|
|
$
|
553
|
|
|
|
|
|
$
|
2,243
|
|
|
$
|
2,288
|
|
|
|
|
|
Number of months in period
|
3
|
|
|
3
|
|
|
|
|
|
12
|
|
|
12
|
|
|
|
|
|
Net depreciation per unit per month (in whole dollars)
|
$
|
186
|
|
|
$
|
184
|
|
|
1
|
%
|
|
|
$
|
187
|
|
|
$
|
191
|
|
|
(2)%
|
|
|
|
(a)
|
Based on December 31, 2015 foreign currency exchange rates.
|
|
(b)
|
Calculated as transaction days divided by available car days.
|
|
Supplemental Schedule V (continued)
|
|
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF KEY METRICS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
|
|
|
Worldwide Rental Car
|
|
|
Three Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
Twelve Months Ended
December 31,
|
|
Percent
Inc/(Dec)
|
|
|
($ in millions, except as noted)
|
2016
|
|
2015
|
|
|
|
2016
|
|
2015
|
|
|
|
|
Total RPD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,858
|
|
|
$
|
1,882
|
|
|
|
|
$
|
8,211
|
|
|
$
|
8,434
|
|
|
|
|
|
Ancillary retail vehicle sales revenue
|
(20)
|
|
|
(16)
|
|
|
|
|
(76)
|
|
|
(57)
|
|
|
|
|
|
Foreign currency adjustment (a)
|
5
|
|
|
(4)
|
|
|
|
|
(13)
|
|
|
(64)
|
|
|
|
|
|
Total rental revenue
|
$
|
1,843
|
|
|
$
|
1,862
|
|
|
|
|
$
|
8,122
|
|
|
$
|
8,313
|
|
|
|
|
|
Transaction days (in thousands)
|
44,936
|
|
|
44,378
|
|
|
|
|
190,895
|
|
|
186,450
|
|
|
|
|
|
Total RPD (in whole dollars)
|
$
|
41.01
|
|
|
$
|
41.96
|
|
|
(2)%
|
|
|
$
|
42.55
|
|
|
$
|
44.59
|
|
|
(5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue Per Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental revenue
|
$
|
1,843
|
|
|
$
|
1,862
|
|
|
|
|
$
|
8,122
|
|
|
$
|
8,313
|
|
|
|
|
|
Average vehicles
|
636,300
|
|
|
619,500
|
|
|
|
|
658,200
|
|
|
658,500
|
|
|
|
|
|
Total revenue per unit (in whole dollars)
|
$
|
2,896
|
|
|
$
|
3,006
|
|
|
|
|
$
|
12,340
|
|
|
$
|
12,624
|
|
|
|
|
|
Number of months in period
|
3
|
|
|
3
|
|
|
|
|
12
|
|
|
12
|
|
|
|
|
|
Total RPU (in whole dollars)
|
$
|
965
|
|
|
$
|
1,002
|
|
|
(4)%
|
|
|
$
|
1,028
|
|
|
$
|
1,052
|
|
|
(2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle Utilization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction days (in thousands)
|
44,936
|
|
|
44,378
|
|
|
|
|
190,895
|
|
|
186,450
|
|
|
|
|
|
Average vehicles
|
636,300
|
|
|
619,500
|
|
|
|
|
658,200
|
|
|
658,500
|
|
|
|
|
|
Number of days in period
|
92
|
|
|
92
|
|
|
|
|
366
|
|
|
365
|
|
|
|
|
|
Available car days (in thousands)
|
58,540
|
|
|
56,994
|
|
|
|
|
240,901
|
|
|
240,353
|
|
|
|
|
|
Vehicle utilization(b)
|
77
|
%
|
|
78
|
%
|
|
(100)
|
|
bps
|
79
|
%
|
|
78
|
%
|
|
100
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Depreciation Per Unit Per Month
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of revenue earning vehicles and lease charges, net
|
$
|
545
|
|
|
$
|
460
|
|
|
|
|
$
|
2,142
|
|
|
$
|
1,970
|
|
|
|
|
|
Foreign currency adjustment (a)
|
2
|
|
|
(1)
|
|
|
|
|
—
|
|
|
(12)
|
|
|
|
|
|
Adjusted depreciation of revenue earning vehicles and lease charges,
net
|
$
|
547
|
|
|
$
|
459
|
|
|
|
|
$
|
2,142
|
|
|
$
|
1,958
|
|
|
|
|
|
Average vehicles
|
636,300
|
|
|
619,500
|
|
|
|
|
658,200
|
|
|
658,500
|
|
|
|
|
|
Adjusted depreciation of revenue earning vehicles and lease charges, net
divided by average vehicles (in whole dollars)
|
$
|
860
|
|
|
$
|
741
|
|
|
|
|
$
|
3,254
|
|
|
$
|
2,973
|
|
|
|
|
|
Number of months in period
|
3
|
|
|
3
|
|
|
|
|
12
|
|
|
12
|
|
|
|
|
|
Net depreciation per unit per month (in whole dollars)
|
$
|
287
|
|
|
$
|
247
|
|
|
16
|
%
|
|
$
|
271
|
|
|
$
|
248
|
|
|
9
|
%
|
|
|
Note: Worldwide Rental Car represents U.S. Rental Car and International
Rental Car segment information on a combined basis and excludes the Company's All Other Operations segment, which is
primarily comprised of the Company's Donlen leasing operations, and Corporate.
|
|
|
(a)
|
Based on December 31, 2015 foreign currency exchange rates.
|
|
(b)
|
Calculated as transaction days divided by available car days.
|
NON-GAAP MEASURES AND KEY METRICS - DEFINITIONS AND USE
Hertz Global is the top-level holding company and The Hertz Corporation is Hertz Global's primary operating company. The term
"GAAP" refers to accounting principles generally accepted in the United States of America.
Definitions of non-GAAP measures are set forth below. Also set forth below is a summary of the reasons why management of the
Company believes that the presentation of the non-GAAP financial measures included in the Earnings Release provide useful
information regarding the Company's financial condition and results of operations and additional purposes, if any, for which
management of the Company utilizes the non-GAAP measures.
Adjusted Pre-Tax Income (Loss) and Adjusted Pre-tax Margin
Adjusted pre-tax income (loss) is calculated as income (loss) from continuing operations before income taxes plus non-cash
acquisition accounting charges, debt-related charges relating to the amortization and write-off of debt financing costs and debt
discounts, goodwill, intangible and tangible asset impairments and write-downs and certain one-time charges and non-operational
items. Adjusted pre-tax income (loss) is important because it allows management to assess operational performance of the
Company's business, exclusive of the items mentioned above. It also allows management to assess the performance of the entire
business on the same basis as the segment measure of profitability. Management believes it is important to investors for the same
reasons it is important to management and because it allows them to assess the operational performance of the Company on the same
basis that management uses internally. When evaluating the Company's operating performance, investors should not consider
adjusted pre-tax income (loss) in isolation of, or as a substitute for, measures of the Company's financial performance, such as
net income (loss) from continuing operations or income (loss) from continuing operations before income taxes. Adjusted pre-tax
margin is adjusted pre-tax income (loss) divided by total revenues.
Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Margin
Adjusted net income (loss) is calculated as adjusted pre-tax income (loss) less a provision for income taxes derived utilizing
a combined statutory rate of 37%. The combined statutory rate is management's estimate of the Company's long-term tax rate.
Adjusted net income (loss) is important to management and investors because it represents the Company's operational performance
exclusive of the effects of purchase accounting, debt-related charges, one-time charges and items that are not operational in
nature or comparable to those of the Company's competitors. Adjusted net income (loss) margin is adjusted net income divided by
total revenues.
Adjusted Earnings (Loss) Per Diluted Share ("Adjusted EPS")
Adjusted earnings (loss) per diluted share is calculated as adjusted net income divided by the weighted average number of
diluted shares outstanding for the period. Adjusted earnings (loss) per diluted share is important to management and investors
because it represents a measure of the Company's operational performance exclusive of the effects of purchase accounting
adjustments, debt-related charges, one-time charges and items that are not operational in nature or comparable to those of the
Company's competitors.
Adjusted Free Cash Flow
Adjusted free cash flow is calculated as net cash provided by operating activities from continuing operations, including the
change in restricted cash and cash equivalents related to vehicles, net revenue earning vehicle and capital asset expenditures
and the net impact of vehicle financing activities. Previously, adjusted free cash flow was calculated as net cash provided by
operating activities from continuing operations, excluding depreciation of revenue earning vehicles, net plus the amounts by
segment of revenue earning vehicle expenditures, net of proceeds from disposals, plus vehicle depreciation and net vehicle
financing which includes borrowings, repayments and the change in restricted cash associated with vehicles, and consolidated
property and equipment expenditures, net of disposals. The previous calculation and the current calculation result in the same
amount of adjusted free cash flows in each respective period. Management believes that the current calculation of adjusted
free cash flow is simpler and better aligns to the Company's consolidated statements of cash flows.
Adjusted free cash flow is important to management and investors as it provides useful information about the amount of cash
available for acquisitions and the reduction of non-vehicle debt. When evaluating the Company's liquidity, investors should not
consider Adjusted free cash flow in isolation of, or as a substitute for, a measure of the Company's liquidity as determined in
accordance with GAAP, such as net cash provided by operating activities.
Available Car Days
Available Car Days is calculated as average vehicles multiplied by the number of days in a period.
Average Vehicles
Average Vehicles, also known as "fleet capacity", is determined using a simple average of the number of vehicles in our fleet
whether owned or leased by the Company at the beginning and end of a given period. Among other things, average vehicles is used
to calculate Vehicle Utilization which represents the portion of the Company's vehicles that are being utilized to generate
revenue.
Earnings Before Interest, Taxes, Depreciation and Amortization ("Gross EBITDA"), Corporate EBITDA, Adjusted
Corporate EBITDA and Adjusted Corporate EBITDA Margin
Gross EBITDA is defined as net income from continuing operations before net interest expense, income taxes and depreciation
(which includes lease charges on revenue earning vehicles) and amortization. Corporate EBITDA, as presented herein, represents
Gross EBITDA as adjusted for vehicle debt interest, vehicle depreciation and vehicle debt-related charges. Adjusted Corporate
EBITDA, as presented herein, represents Corporate EBITDA as adjusted for certain other items, as described in more detail in the
accompanying schedules.
Management uses Gross EBITDA, Corporate EBITDA and Adjusted Corporate EBITDA as operating performance metrics for internal
monitoring and planning purposes, including the preparation of the Company's annual operating budget and monthly operating
reviews, as well as to facilitate analysis of investment decisions, profitability and performance trends. Further, Gross EBITDA
enables management and investors to isolate the effects on profitability of operating metrics such as revenue, direct vehicle and
operating expenses and selling, general and administrative expenses, which enables management and investors to evaluate the
Company's business segments that are financed differently and have different depreciation characteristics and compare the
Company's performance against companies with different capital structures and depreciation policies. We also present Adjusted
Corporate EBITDA as a supplemental measure because such information is utilized in the determination of certain executive
compensation.
Gross EBITDA, Corporate EBITDA, Adjusted Corporate EBITDA and Adjusted Corporate EBITDA Margin are not recognized measurements
under U.S. GAAP. When evaluating the Company's operating performance, investors should not consider Gross EBITDA, Corporate
EBITDA and Adjusted Corporate EBITDA in isolation of, or as a substitute for, measures of the Company's financial performance as
determined in accordance with GAAP, such as net income (loss) from continuing operations or income (loss) from continuing
operations before income taxes.
Adjusted Corporate EBITDA Margin is calculated as the ratio of Adjusted Corporate EBITDA to total revenues and is used by the
Compensation Committee to determine certain executive compensation, primarily in the form of PSUs.
Net Non-Vehicle Debt
Net non-vehicle debt is calculated as non-vehicle debt as reported on the Company's balance sheet, excluding the impact of
unamortized debt issue costs associated with non-vehicle debt, less cash and equivalents. Non-vehicle debt consists of the
Company's Senior Term Loan, Senior RCF, Senior Notes, Promissory Notes and certain other non-vehicle indebtedness of its domestic
and foreign subsidiaries. Net non-vehicle debt is important to management and investors as it helps measure the Company's
leverage. Net non-vehicle debt also assists in the evaluation of the Company's ability to service its non-vehicle debt without
reference to the expense associated with the vehicle debt, which is collateralized by assets not available to lenders under the
non-vehicle debt facilities.
Net Vehicle Debt
Net vehicle debt is calculated as vehicle debt as reported on the Company's balance sheet, excluding the impact of unamortized
debt issue costs associated with vehicle debt, less cash and equivalents and restricted cash associated with vehicles. This
measure is important to management, investors and ratings agencies as it helps measure the Company's leverage with respect to its
vehicle debt.
Net Depreciation Per Unit Per Month
Net depreciation per unit per month is calculated by dividing depreciation of revenue earning vehicles and lease charges, net
by the average vehicles in each period and then dividing by the number of months in the period reported with all periods adjusted
to eliminate the effect of fluctuations in foreign currency exchange rates. Management believes eliminating the effect of
fluctuations in foreign currency exchange rates is appropriate so as not to affect the comparability of underlying trends.
Net depreciation per unit per month represents the amount of average depreciation expense and lease charges, net per vehicle per
month.
Restricted Cash Associated with Vehicle Debt (used in the calculation of Net Vehicle Debt)
Restricted cash associated with vehicle debt is restricted for the purchase of revenue earning vehicles and other specified
uses under the Company's vehicle debt facilities and its vehicle rental like-kind exchange program.
Total Net Debt
Total net debt is calculated as total debt less total cash and cash equivalents and restricted cash associated with vehicle
debt. This measure is important to management, investors and ratings agencies as it helps measure the Company's gross
leverage.
Total RPD (also referred to as "pricing")
Total RPD is calculated as total revenue less ancillary revenue associated with retail vehicle sales, divided by the total
number of transaction days, with all periods adjusted to eliminate the effect of fluctuations in foreign currency exchange rates.
The Company's management believes eliminating the effect of fluctuations in foreign currency exchange rates is appropriate so as
not to affect the comparability of underlying trends. This metric is important to the Company's management and investors as it
represents a measurement of the changes in underlying pricing, in the vehicle rental business and encompasses the elements in
vehicle rental pricing that management has the ability to control.
Total Revenue Per Unit Per Month ("Total RPU")
Total revenue per unit per month is calculated as total revenues less ancillary revenue associated with retail vehicle sales
divided by the average vehicles in each period and then dividing by the number of months in the period reported with all periods
adjusted to eliminate the effect of fluctuations in foreign currency exchange rates. Management believes eliminating the effect
of fluctuations in foreign currency exchange rates is appropriate so as not to affect the comparability of underlying
trends. This metric is important to the Company's management and investors as it provides a measure of revenue productivity
relative to fleet capacity.
Transaction Days
Transaction days, also known as volume, represent the total number of 24-hour periods, with any partial period counted as one
transaction day, that vehicles were on rent (the period between when a rental contract is opened and closed) in a given period.
Thus, it is possible for a vehicle to attain more than one transaction day in a 24-hour period. Late in the third quarter of
2015, the Company fully integrated the Dollar Thrifty and Hertz counter systems and as a result aligned the transaction day
calculation in the Hertz system. As a result of this alignment, Hertz determined that there was an impact to the
calculation. The Company estimates that transaction days for the U.S. Rental Car segment were increased by approximately 1%
relative to historical calculations through the third quarter of 2016. This also impacts key metrics calculations that utilize
transaction days, although to a lesser extent.
Vehicle Utilization
Vehicle utilization is calculated by dividing total transaction days by the available car days.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/hertz-global-holdings-reports-fourth-quarter-2016-and-full-year-financial-results-300414267.html
SOURCE Hertz Global Holdings, Inc.