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.