HERC HOLDINGS INC - FORM 8-K - EX-99.2 - July 17, 2015

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EX-99.1 - EX-99.1 - HERC HOLDINGS INCa15-15827_1ex99d1.htm
EX-99.3 - EX-99.3 - HERC HOLDINGS INCa15-15827_1ex99d3.htm

Exhibit 99.2

 

FINANCIAL INFORMATION AND OPERATING DATA

 

SELECTED UNAUDITED CONSOLIDATED INCOME STATEMENT DATA

 

 

 

Three Months Ended
March 31,

 

Three Months Ended
March 31,

 

(In millions, except per share data)

 

2015

 

2014

 

2013
As Restated

 

2013
As Revised

 

2013
As Reported

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

2,454

 

$

2,536

 

$

2,437

 

$

2,437

 

$

2,436

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

Direct operating

 

1,408

 

1,443

 

1,364

 

1,358

 

1,351

 

Depreciation of revenue earning equipment and lease charges

 

707

 

726

 

589

 

580

 

587

 

Selling, general and administrative

 

266

 

276

 

250

 

248

 

252

 

Interest expense, net

 

154

 

156

 

175

 

175

 

175

 

Other income, net

 

5

 

(3

)

—

 

2

 

(1

)

Total expenses

 

2,540

 

2,598

 

2,378

 

2,363

 

2,364

 

Income (loss) before income taxes

 

(86

)

(62

)

59

 

74

 

72

 

(Provision) benefit for taxes on income (loss)

 

16

 

(7

)

(53

)

(58

)

(54

)

Net income (loss)

 

$

(70

)

$

(69

)

$

6

 

$

16

 

$

18

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

459

 

447

 

416

 

416

 

416

 

Diluted

 

459

 

447

 

461

 

461

 

461

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.15

)

$

(0.15

)

$

0.01

 

$

0.04

 

$

0.04

 

Diluted

 

$

(0.15

)

$

(0.15

)

$

0.02

 

$

0.04

 

$

0.04

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense — Fleet

 

$

57

 

$

62

 

$

74

 

NR

 

$

74

 

Interest expense, net — Corporate

 

97

 

94

 

101

 

NR

 

101

 

Corporate EBITDA (a)

 

226

 

255

 

359

 

NR

 

367

 

Adjusted pre-tax Income (loss) (a)

 

3

 

24

 

136

 

NR

 

145

 

 

(a)        Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule II.

 

SELECTED UNAUDITED CONSOLIDATED BALANCE SHEET DATA

 

 

 

As of March 31,

 

As of December
31, 2013

 

(In millions)

 

2015

 

2014

 

As Revised

 

Cash and cash equivalents

 

$

585

 

$

498

 

$

411

 

Restricted cash

 

411

 

453

 

861

 

Revenue earning equipment:

 

 

 

 

 

 

 

U.S. Car Rental

 

8,814

 

8,662

 

8,629

 

International Car Rental

 

2,021

 

2,245

 

2,047

 

Worldwide Equipment Rental

 

2,473

 

2,440

 

2,416

 

All Other Operations

 

1,285

 

1,157

 

1,099

 

Total revenue earning equipment, net

 

14,593

 

14,504

 

14,191

 

Total assets

 

24,602

 

24,470

 

24,423

 

Total debt

 

16,351

 

16,125

 

16,309

 

Net Fleet debt (a)

 

9,548

 

9,148

 

9,034

 

Net Corporate debt (a) (b)

 

5,807

 

6,026

 

6,003

 

Total equity

 

2,349

 

2,491

 

2,567

 

 

(a)        Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule V.

(b)        Fleet related to Hertz Equipment Rental Corporation is funded via Net Corporate Debt.

 

1


 

SELECTED UNAUDITED CONSOLIDATED CASH FLOW DATA

 

 

 

Three Months Ended
March 31,

 

Three Months
Ended
March 31,

 

Three Months
Ended
March 31,

 

(In millions)

 

2015

 

2014

 

2013
As Restated

 

2013
As Revised

 

2013
As Reported

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash provided by (used in):

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

782

 

$

760

 

$

746

 

$

747

 

$

743

 

Investing activities

 

(1,166

)

(372

)

(946

)

(950

)

(932

)

Financing activities

 

499

 

(301

)

317

 

318

 

318

 

Effect of exchange rate changes

 

(20

)

—

 

(8

)

(8

)

(8

)

Net change in cash and cash equivalents

 

$

95

 

$

87

 

$

109

 

$

107

 

$

121

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet growth (a)

 

$

171

 

$

—

 

$

(196

)

NR

 

$

(194

)

Free cash flow (a)

 

$

189

 

$

3

 

$

(76

)

$

(73

)

$

(79

)

 

(a)        Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedules III and IV.

 

SELECTED UNAUDITED OPERATING DATA BY SEGMENT

 

 

 

Three Months Ended March 31,

 

Three Months
Ended March 31,

 

 

 

2015

 

2014

 

2013
As Restated

 

2013
As Reported

 

U.S. Car Rental

 

 

 

 

 

 

 

 

 

Transaction days (in thousands)

 

32,036

 

32,360

 

30,064

 

30,064

 

Total RPD (a)

 

$

47.07

 

$

47.90

 

$

48.63

 

$

49.35

 

Average fleet

 

489,300

 

491,500

 

454,000

 

457,700

 

Fleet efficiency(a)

 

73

%

75

%

77

%

NR

 

Net depreciation per unit per month(a)

 

$

287

 

$

288

 

$

209

 

NR

 

Program cars as a percentage of total average fleet at period end

 

24

%

15

%

4

%

NR

 

Adjusted pre-tax income (loss) (in millions) (a)

 

$

71

 

$

119

 

$

232

 

NR

 

International Car Rental

 

 

 

 

 

 

 

 

 

Transaction days (in thousands)

 

9,775

 

9,395

 

9,006

 

9,006

 

Total RPD (a)(b)

 

$

46.96

 

$

51.41

 

$

51.63

 

$

52.76

 

Average Fleet

 

144,000

 

141,400

 

137,500

 

137,500

 

Fleet efficiency(a)

 

75

%

74

%

73

%

NR

 

Net depreciation per unit per month(a)

 

$

231

 

$

266

 

$

301

 

NR

 

Program cars as a percentage of total average fleet at period end

 

38

%

34

%

28

%

NR

 

Adjusted pre-tax income (loss) (in millions) (a)

 

$

8

 

$

(39

)

$

(47

)

NR

 

Worldwide Equipment Rental

 

 

 

 

 

 

 

 

 

Dollar utilization(a)

 

34

%

34

%

35

%

NR

 

Time utilization(a)

 

61

%

61

%

61

%

NR

 

Rental and rental related revenue (in millions) (a)(b)

 

$

336

 

$

334

 

$

320

 

$

322

 

Same store revenue growth, including growth initiatives (b)

 

1

%

5

%

13

%

13

%

Adjusted pre-tax income (loss) (in millions) (a)

 

$

33

 

$

51

 

$

45

 

$

46

 

All Other Operations

 

 

 

 

 

 

 

 

 

Average fleet — Donlen

 

168,600

 

176,800

 

165,600

 

165,600

 

Adjusted pre-tax income (loss) (in millions) (a)

 

$

16

 

$

16

 

$

13

 

NR

 

 

(a)        Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedules II and V.

(b)     Amounts shown for 2014 and 2013 As Restated are based on December 31, 2013 foreign exchange rates.  Amounts shown for 2013 As Reported are based on December 31, 2012 foreign exchange rates.

 

2


 

SUPPLEMENTAL SCHEDULES AND DEFINITIONS

 

The following Supplemental Schedules and definitions are provided to present segment results and reconciliations of non-GAAP measures to their most comparable GAAP measure. Following the Supplemental Schedules we provide definitions for terminology used throughout this press release.

 

Supplemental Schedule I

 

HERTZ GLOBAL HOLDINGS, INC.

CONDENSED STATEMENT OF OPERATIONS BY SEGMENT

Unaudited

 

 

 

Three Months Ended March 31, 2015

 

Three Months Ended March 31, 2014

 

(In millions)

 

U.S. Car
Rental

 

Int’l Car Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

U.S. Car
Rental

 

Int’l Car Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

Total revenues:

 

$

1,520

 

$

436

 

$

355

 

$

143

 

$

—

 

$

2,454

 

$

1,557

 

$

482

 

$

358

 

$

139

 

$

—

 

$

2,536

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating

 

926

 

267

 

208

 

6

 

1

 

1,408

 

907

 

329

 

200

 

7

 

—

 

1,443

 

Depreciation of revenue earning equipment and lease charges

 

421

 

95

 

76

 

115

 

—

 

707

 

424

 

113

 

78

 

111

 

—

 

726

 

Selling, general and administrative

 

98

 

57

 

46

 

8

 

57

 

266

 

101

 

65

 

32

 

6

 

72

 

276

 

Interest expense, net

 

40

 

15

 

15

 

2

 

82

 

154

 

38

 

20

 

13

 

4

 

81

 

156

 

Other (income) expense, net

 

—

 

—

 

(1

)

—

 

6

 

5

 

(7

)

—

 

(1

)

—

 

5

 

(3

)

Total expenses

 

1,485

 

434

 

344

 

131

 

146

 

2,540

 

1,463

 

527

 

322

 

128

 

158

 

2,598

 

Income (loss) before income taxes

 

$

35

 

$

2

 

$

11

 

$

12

 

$

(146

)

$

(86

)

$

94

 

$

(45

)

$

36

 

$

11

 

$

(158

)

$

(62

)

Provision for taxes on income

 

 

 

 

 

 

 

 

 

 

 

16

 

 

 

 

 

 

 

 

 

 

 

(7

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

$

(70

)

 

 

 

 

 

 

 

 

 

 

$

(69

)

 

 

 

Three Months Ended March 31, 2013
As Restated

 

Three Months
Ended March
31, 2013
As Revised

 

Three Months
Ended March
31, 2013
As Reported

 

(In millions)

 

U.S. Car
Rental

 

Int’l Car Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

Consolidated
HGH

 

Consolidated
HGH

 

Total revenues:

 

$

1,484

 

$

471

 

$

353

 

$

129

 

$

—

 

$

2,437

 

$

2,437

 

$

2,436

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating

 

847

 

313

 

203

 

6

 

(5

)

1,364

 

1,358

 

1,351

 

Depreciation of revenue earning equipment and lease charges

 

285

 

125

 

74

 

105

 

—

 

589

 

580

 

587

 

Selling, general and administrative

 

101

 

65

 

33

 

7

 

44

 

250

 

248

 

252

 

Interest expense, net

 

46

 

26

 

13

 

2

 

88

 

175

 

175

 

175

 

Other (income) expense, net

 

1

 

—

 

(1

)

—

 

—

 

—

 

2

 

(1

)

Total expenses

 

1,280

 

529

 

322

 

120

 

127

 

2,378

 

2,363

 

2,364

 

Income (loss) before income taxes

 

$

204

 

$

(58

)

$

31

 

$

9

 

$

(127

)

$

59

 

$

74

 

$

72

 

Provision for taxes on income

 

 

 

 

 

 

 

 

 

 

 

(53

)

(58

)

(54

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

$

6

 

$

16

 

$

18

 

 

3


 

Supplemental Schedule II

 

HERTZ GLOBAL HOLDINGS, INC.

RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES

TO EBITDA, CORPORATE EBITDA AND ADJUSTED PRE-TAX INCOME BY SEGMENT

Unaudited

 

 

 

Three Months Ended March 31, 2015

 

Three Months Ended March 31, 2014

 

(In millions)

 

U.S. Car Rental

 

Int’l Car Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

U.S. Car Rental

 

Int’l Car Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

Income (loss) before income taxes

 

$

35

 

$

2

 

$

11

 

$

12

 

$

(146

)

$

(86

)

$

94

 

$

(45

)

$

36

 

$

11

 

$

(158

)

$

(62

)

Depreciation and amortization

 

472

 

105

 

95

 

117

 

4

 

793

 

479

 

123

 

96

 

113

 

5

 

816

 

Interest, net of interest income

 

40

 

15

 

15

 

2

 

82

 

154

 

38

 

20

 

13

 

4

 

81

 

156

 

EBITDA

 

$

547

 

$

122

 

$

121

 

$

131

 

$

(60

)

$

861

 

$

611

 

$

98

 

$

145

 

$

128

 

$

(72

)

$

910

 

Car rental fleet depreciation

 

(421

)

(95

)

—

 

(115

)

—

 

(631

)

(424

)

(113

)

—

 

(111

)

1

 

(647

)

Car rental fleet interest

 

(43

)

(15

)

—

 

(3

)

—

 

(61

)

(39

)

(20

)

—

 

(4

)

—

 

(63

)

Car rental fleet debt - related charges

 

8

 

2

 

—

 

1

 

—

 

11

 

1

 

3

 

—

 

2

 

—

 

6

 

Non-cash stock-based employee compensation charges

 

—

 

—

 

—

 

—

 

4

 

4

 

—

 

—

 

—

 

—

 

8

 

8

 

Restructuring and restructuring related charges

 

2

 

2

 

2

 

—

 

14

 

20

 

11

 

5

 

3

 

—

 

20

 

39

 

Acquisition related costs and charges

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

7

 

7

 

Integration expenses

 

(1

)

—

 

—

 

—

 

1

 

—

 

(2

)

—

 

—

 

—

 

2

 

—

 

Equipment Rental spin-off costs

 

—

 

—

 

9

 

—

 

—

 

9

 

—

 

—

 

—

 

—

 

—

 

—

 

Relocation costs

 

(2

)

—

 

—

 

—

 

2

 

—

 

(2

)

—

 

—

 

—

 

2

 

—

 

Premiums paid on debt

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Loss on extinguishment of debt

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Impairment charges and asset write-downs

 

9

 

—

 

—

 

—

 

—

 

9

 

—

 

—

 

—

 

—

 

—

 

—

 

Other extraordinary, unusual or non-recurring items

 

1

 

—

 

—

 

—

 

3

 

4

 

(1

)

(5

)

1

 

—

 

—

 

(5

)

Corporate EBITDA

 

$

100

 

$

16

 

$

132

 

$

14

 

$

(36

)

$

226

 

$

155

 

$

(32

)

$

149

 

$

15

 

$

(32

)

$

255

 

Non-fleet depreciation and amortization

 

(51

)

(10

)

(95

)

(2

)

(4

)

(162

)

(55

)

(10

)

(96

)

(2

)

(6

)

(169

)

Non-fleet interest, net of interest income

 

3

 

—

 

(15

)

1

 

(82

)

(93

)

1

 

—

 

(13

)

—

 

(81

)

(93

)

Non-fleet debt - related charges

 

—

 

—

 

1

 

—

 

4

 

5

 

—

 

—

 

2

 

—

 

4

 

6

 

Non-cash stock-based employee compensation charges

 

—

 

—

 

—

 

—

 

(4

)

(4

)

—

 

—

 

—

 

—

 

(8

)

(8

)

Acquisition accounting

 

19

 

2

 

10

 

3

 

(3

)

31

 

18

 

3

 

10

 

3

 

(1

)

33

 

Adjusted Pre-Tax Income (Loss)

 

$

71

 

$

8

 

$

33

 

$

16

 

$

(125

)

$

3

 

$

119

 

$

(39

)

$

52

 

$

16

 

$

(124

)

$

24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2013
As Restated

 

Three Months
Ended March
31, 2013
As Reported

 

 

 

 

 

 

 

 

 

 

 

(In millions)

 

U.S. Car Rental

 

Int’l Car Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

Consolidated
HGH

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

$

204

 

$

(58

)

$

31

 

$

9

 

$

(127

)

$

59

 

$

72

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

338

 

133

 

93

 

107

 

2

 

673

 

669

 

 

 

 

 

 

 

 

 

 

 

Interest, net of interest income

 

46

 

26

 

13

 

2

 

88

 

175

 

175

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

588

 

$

101

 

$

137

 

$

118

 

$

(37

)

$

907

 

$

916

 

 

 

 

 

 

 

 

 

 

 

Car rental fleet depreciation

 

(285

)

(125

)

—

 

(105

)

—

 

(515

)

(513

)

 

 

 

 

 

 

 

 

 

 

Car rental fleet interest

 

(44

)

(24

)

—

 

(2

)

(1

)

(71

)

(71

)

 

 

 

 

 

 

 

 

 

 

Car rental fleet debt - related charges

 

2

 

3

 

—

 

—

 

—

 

5

 

5

 

 

 

 

 

 

 

 

 

 

 

Non-cash stock-based employee compensation charges

 

—

 

—

 

—

 

—

 

8

 

8

 

8

 

 

 

 

 

 

 

 

 

 

 

Restructuring and restructuring related charges

 

1

 

5

 

—

 

—

 

1

 

7

 

8

 

 

 

 

 

 

 

 

 

 

 

Acquisition related costs and charges

 

—

 

—

 

—

 

—

 

3

 

3

 

3

 

 

 

 

 

 

 

 

 

 

 

Integration expenses

 

5

 

—

 

—

 

—

 

6

 

11

 

11

 

 

 

 

 

 

 

 

 

 

 

Equipment Rental spin-off costs

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Relocation costs

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Premiums paid on debt

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Loss on extinguishment of debt

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Impairment charges and asset write-downs

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Other extraordinary, unusual or non-recurring items

 

2

 

1

 

3

 

—

 

(2

)

4

 

—

 

 

 

 

 

 

 

 

 

 

 

Corporate EBITDA

 

$

269

 

$

(39

)

$

140

 

$

11

 

$

(22

)

$

359

 

$

367

 

 

 

 

 

 

 

 

 

 

 

Non-fleet depreciation and amortization

 

(53

)

(8

)

(93

)

(2

)

(2

)

(158

)

(156

)

 

 

 

 

 

 

 

 

 

 

Non-fleet interest, net of interest income

 

(2

)

(2

)

(13

)

—

 

(87

)

(104

)

(104

)

 

 

 

 

 

 

 

 

 

 

Non-fleet debt - related charges

 

—

 

—

 

1

 

—

 

11

 

12

 

12

 

 

 

 

 

 

 

 

 

 

 

Non-cash stock-based employee compensation charges

 

—

 

—

 

—

 

—

 

(8

)

(8

)

(8

)

 

 

 

 

 

 

 

 

 

 

Acquisition accounting

 

18

 

2

 

10

 

4

 

1

 

35

 

34

 

 

 

 

 

 

 

 

 

 

 

Adjusted Pre-Tax Income (Loss)

 

$

232

 

$

(47

)

$

45

 

$

13

 

$

(107

)

$

136

 

$

145

 

 

 

 

 

 

 

 

 

 

 

 

4


 

Supplemental Schedule III

 

HERTZ GLOBAL HOLDINGS, INC.

FREE CASH FLOW

Unaudited

 

 

 

Three Months Ended

 

Three Months Ended

 

 

 

March 31,

 

March 31,

 

(In millions)

 

2015

 

2014

 

2013
As Restated

 

2013
As Revised

 

2013
As Reported

 

Income before income taxes

 

$

(86

)

$

(62

)

$

59

 

$

74

 

$

72

 

Depreciation and amortization, non-fleet assets

 

86

 

90

 

84

 

81

 

51

 

Amortization of debt discount and related charges

 

16

 

11

 

17

 

17

 

48

 

Cash paid for income taxes

 

(4

)

(14

)

(6

)

(6

)

(6

)

Changes in assets and liabilities, net of effects of acquisitions, and other

 

81

 

28

 

20

 

16

 

6

 

Net cash provided by operating activities excluding depreciation of revenue earning equipment

 

93

 

53

 

174

 

182

 

172

 

U.S. car rental fleet growth (a)

 

(12

)

(71

)

(318

)

NR

 

NR

 

International car rental fleet growth (a)

 

203

 

88

 

168

 

NR

 

NR

 

Equipment rental fleet growth (a)

 

18

 

(10

)

(41

)

NR

 

NR

 

All other operations rental fleet growth (a)

 

(38

)

(7

)

(5

)

NR

 

NR

 

Property and equipment expenditures, net of disposals

 

(75

)

(50

)

(54

)

(57

)

(57

)

Net investment activity

 

96

 

(50

)

(250

)

(255

)

(251

)

Free cash flow

 

$

189

 

$

3

 

$

(76

)

$

(73

)

$

(79

)

 

(a)        Historically, fleet growth has not been reported on a segment basis.

 

5


 

Supplemental Schedule IV

 

HERTZ GLOBAL HOLDINGS, INC.

FLEET GROWTH

Unaudited

 

 

 

Three Months Ended March 31, 2015

 

Three Months Ended March 31, 2014

 

Three Months Ended March 31, 2013
As Restated

 

Three Months
Ended March
31, 2013
As Reported

 

(In millions)

 

U.S. Car Rental

 

Int’l Car Rental

 

Worldwide

Equipment
Rental

 

All Other
Operations

 

Consolidated
HGH

 

U.S. Car Rental

 

Int’l Car Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Consolidated
HGH

 

U.S. Car Rental

 

Int’l Car Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Consolidated
HGH

 

Consolidated
HGH

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue earning equipment expenditures

 

$

(2,444

)

$

(515

)

$

(121

)

$

(358

)

$

(3,438

)

$

(1,589

)

$

(509

)

$

(109

)

$

(375

)

$

(2,582

)

$

(2,385

)

$

(485

)

$

(154

)

$

(230

)

$

(3,254

)

$

(3,253

)

Proceeds from disposal of revenue earning equipment

 

1,368

 

658

 

62

 

201

 

2,289

 

1,018

 

610

 

21

 

211

 

1,860

 

1,447

 

625

 

39

 

125

 

2,236

 

2,238

 

Net revenue earning equipment capital expenditures

 

(1,076

)

143

 

(59

)

(157

)

(1,149

)

(571

)

101

 

(88

)

(164

)

(722

)

(938

)

140

 

(115

)

(105

)

(1,018

)

(1,015

)

Depreciation of revenue earning equipment

 

421

 

77

 

77

 

113

 

688

 

422

 

95

 

78

 

111

 

706

 

285

 

109

 

74

 

104

 

572

 

572

 

Financing activity related to car rental fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

2,516

 

245

 

—

 

83

 

2,844

 

310

 

270

 

—

 

400

 

980

 

1,543

 

245

 

—

 

—

 

1,788

 

NR

 

Payments

 

(2,007

)

(278

)

—

 

(67

)

(2,352

)

(631

)

(354

)

—

 

(350

)

(1,335

)

(1,366

)

(292

)

—

 

(1

)

(1,659

)

NR

 

Restricted cash changes

 

134

 

16

 

—

 

(10

)

140

 

399

 

(24

)

—

 

(4

)

371

 

158

 

(34

)

—

 

(3

)

121

 

NR

 

Net financing activity related to car rental fleet

 

643

 

(17

)

—

 

6

 

632

 

78

 

(108

)

—

 

46

 

16

 

335

 

(81

)

—

 

(4

)

250

 

250

 

Fleet growth

 

$

(12

)

$

203

 

$

18

 

$

(38

)

$

171

 

$

(71

)

$

88

 

$

(10

)

$

(7

)

$

—

 

$

(318

)

$

168

 

$

(41

)

$

(5

)

$

(196

)

$

(194

)

 

6


 

Supplemental Schedule V

 

HERTZ GLOBAL HOLDINGS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES - DEBT, REVENUE, DEPRECIATION AND KEY METRICS

Unaudited

 

NET CORPORATE DEBT, NET FLEET DEBT AND TOTAL NET DEBT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2013

 

As of December 31, 2013

 

 

 

As of March 31, 2015

 

As of March 31, 2014

 

As Restated

 

As Reported

 

(In millions)

 

Fleet

 

Corporate

 

Total

 

Fleet

 

Corporate

 

Total

 

Fleet

 

Corporate

 

Total

 

Fleet

 

Corporate

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

9,917

 

$

6,434

 

$

16,351

 

$

9,548

 

$

6,577

 

$

16,125

 

$

9,806

 

$

6,503

 

$

16,309

 

$

9,806

 

$

6,503

 

$

16,309

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

—

 

585

 

585

 

—

 

498

 

498

 

—

 

411

 

411

 

—

 

423

 

423

 

Restricted cash

 

369

 

42

 

411

 

400

 

53

 

453

 

772

 

89

 

861

 

772

 

88

 

860

 

Net debt

 

$

9,548

 

$

5,807

 

$

15,355

 

$

9,148

 

$

6,026

 

$

15,174

 

$

9,034

 

$

6,003

 

$

15,037

 

$

9,034

 

$

5,992

 

$

15,026

 

 

WORLDWIDE EQUIPMENT RENTAL AND RENTAL RELATED REVENUE

 

 

 

Three Months Ended March 31,

 

(In millions)

 

2015

 

2014

 

2013
As Restated

 

2013
As Reported

 

Equipment rental segment revenues

 

$

355

 

$

358

 

$

353

 

$

351

 

Equipment sales and other revenue

 

(23

)

(26

)

(30

)

(30

)

Rental and rental related revenue at actual rates

 

332

 

332

 

323

 

321

 

Foreign currency adjustment (a)

 

4

 

2

 

(3

)

1

 

Rental and rental related revenue

 

$

336

 

$

334

 

$

320

 

$

322

 

 

(a)       Amounts shown for 2014 and 2013 As Restated are based on December 31, 2013 foreign exchange rates.  Amounts shown for 2013 As Reported are based on December 31, 2012 foreign exchange rates.

 

7


 

Supplemental Schedule V

 

HERTZ GLOBAL HOLDINGS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES - DEBT, REVENUE, DEPRECIATION AND KEY METRICS (CONTINUED)

Unaudited

 

TOTAL RPD, FLEET EFFICIENCY AND NET DEPRECIATION PER UNIT PER MONTH

 

U.S. Car Rental Segment

 

 

 

Three Months Ended March 31,

 

(In millions, except as noted)

 

2015

 

2014

 

2013
As Restated

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,520

 

$

1,557

 

$

1,484

 

Advantage sublease revenue

 

—

 

—

 

(20

)

Ancillary retail car sales revenue

 

(12

)

(7

)

(2

)

Total rental revenue

 

$

1,508

 

$

1,550

 

$

1,462

 

Transaction days (in thousands)

 

32,036

 

32,360

 

30,064

 

Total RPD (in whole dollars)

 

$

47.07

 

$

47.90

 

$

48.63

 

 

 

 

 

 

 

 

 

Transaction days (in thousands)

 

32,036

 

32,360

 

30,064

 

Average Fleet

 

489,300

 

491,500

 

454,000

 

Advantage sublease vehicles

 

—

 

(11,000

)

(21,100

)

Hertz 24/7 vehicles

 

—

 

(1,000

)

(1,000

)

Average Fleet used to calculate fleet efficiency

 

489,300

 

479,500

 

431,900

 

Number of days in period

 

90

 

90

 

90

 

Average fleet multiplied by number of dates in period (in thousands)

 

 

44,037

 

 

43,155

 

 

38,871

 

Fleet efficiency

 

73

%

75

%

77

%

 

 

 

 

 

 

 

 

Depreciation of revenue earning equipment and lease charges, net (in millions)

 

$

421

 

$

424

 

$

285

 

Average fleet

 

489,300

 

491,500

 

454,000

 

Depreciation of revenue earning equipment and lease charges, net divided by average fleet

 

$

860

 

$

863

 

$

628

 

Number of months in period

 

3

 

3

 

3

 

Net depreciation per unit per month

 

$

287

 

$

288

 

$

209

 

 

International Car Rental

 

 

 

Three Months Ended March 31,

 

(in millions, except as noted)

 

2015

 

2014

 

2013
As Restated

 

Revenues

 

$

436

 

$

482

 

$

471

 

Foreign currency adjustment (a)

 

23

 

(45

)

(6

)

Total rental revenue

 

$

459

 

$

437

 

$

465

 

Transaction days (in thousands)

 

9,775

 

9,395

 

9,006

 

Total RPD (in whole dollars)

 

$

46.96

 

$

46.51

 

$

51.63

 

 

 

 

 

 

 

 

 

Transaction days (in thousands)

 

9,775

 

9,395

 

9,006

 

Average Fleet

 

144,000

 

141,400

 

137,500

 

Number of days in period

 

90

 

90

 

90

 

Average fleet multiplied by number of days in period

 

12,960

 

12,726

 

12,375

 

Fleet efficiency

 

75

%

74

%

73

%

 

 

 

 

 

 

 

 

Depreciation of revenue earning equipment and lease charges, net (in millions)

 

$

95

 

$

113

 

$

125

 

Foreign currency adjustment (in millions) (a)

 

5

 

—

 

(1

)

Adjusted depreciation of revenue earning equipment and lease charges, net (in millions)

 

$

100

 

$

113

 

$

124

 

Average fleet

 

144,000

 

141,400

 

137,500

 

Adjusted depreciation of revenue earning equipment and lease charges, net divided by average fleet

 

$

694

 

$

721

 

$

902

 

Number of months in period

 

3

 

3

 

3

 

Net depreciation per unit per month

 

$

231

 

$

240

 

$

301

 

 

All Car Rental

 

 

 

 

 

 

 

Three Months
Ended March
31,

 

 

 

 

 

(In millions, except as noted)

 

2013
As Reported

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

2,085

 

 

 

 

 

Non-rental revenue

 

(128

)

 

 

 

 

Foreign currency adjustment

 

2

 

 

 

 

 

Total rental revenue

 

$

1,959

 

 

 

 

 

Transaction days (in thousands)

 

39,070

 

 

 

 

 

Total RPD (in whole dollars)

 

$

50.14

 

 

 

 

 

 

(a)         Amounts shown for 2014 and 2013 As Restated are based on December 31, 2013 foreign exchange rates.  Amounts shown for 2013 As Reported are based on December 31, 2012 foreign exchange rates.

 

8


 

FINANCIAL INFORMATION AND OPERATING DATA

 

SELECTED UNAUDITED CONSOLIDATED INCOME STATEMENT DATA

 

 

 

Three Months Ended
June 30,

 

Three Months Ended
June 30,

 

(In millions, except per share data)

 

2014

 

2013
As Restated

 

2013
As Revised

 

2013
As Reported

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

2,830

 

$

2,708

 

$

2,709

 

$

2,715

 

Expenses:

 

 

 

 

 

 

 

 

 

Direct operating

 

1,594

 

1,417

 

1,414

 

1,406

 

Depreciation of revenue earning equipment and lease charges

 

708

 

632

 

628

 

641

 

Selling, general and administrative

 

264

 

287

 

280

 

275

 

Interest expense, net

 

164

 

182

 

182

 

182

 

Other income, net

 

(21

)

(2

)

(1

)

(1

)

Total expenses

 

2,709

 

2,516

 

2,503

 

2,503

 

Income (loss) before income taxes

 

121

 

192

 

206

 

212

 

(Provision) benefit for taxes on income (loss)

 

(49

)

(81

)

(85

)

(91

)

Net income (loss)

 

$

72

 

$

111

 

$

121

 

$

121

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

452

 

401

 

401

 

401

 

Diluted

 

465

 

465

 

465

 

465

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.16

 

$

0.28

 

$

0.30

 

$

0.30

 

Diluted

 

$

0.15

 

$

0.25

 

$

0.27

 

$

0.27

 

 

 

 

 

 

 

 

 

 

 

Interest expense — Fleet

 

$

72

 

$

75

 

 

NR

 

$

75

 

Interest expense, net — Corporate

 

92

 

107

 

NR

 

107

 

Corporate EBITDA (a)

 

446

 

524

 

NR

 

541

 

Adjusted pre-tax Income (loss) (a)

 

216

 

296

 

NR

 

314

 

 

(a)         Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule II.

 

SELECTED UNAUDITED CONSOLIDATED BALANCE SHEET DATA

 

(In millions)

 

As of June 30,
2014

 

As of
December 31,
2013
As Restated

 

As of
December 31,
2013
As Revised

 

 

 

Cash and cash equivalents

 

$

540

 

$

411

 

$

423

 

 

 

Restricted cash

 

717

 

861

 

860

 

 

 

Revenue earning equipment:

 

 

 

 

 

 

 

 

 

U.S. Car Rental

 

8,980

 

8,629

 

8,629

 

 

 

International Car Rental

 

3,135

 

2,047

 

2,047

 

 

 

Worldwide Equipment Rental

 

2,520

 

2,416

 

2,416

 

 

 

All Other Operations

 

1,195

 

1,099

 

1,101

 

 

 

Total revenue earning equipment, net

 

15,829

 

14,191

 

14,193

 

 

 

Total assets

 

26,169

 

24,423

 

24,588

 

 

 

Total debt

 

17,310

 

16,309

 

16,309

 

 

 

Net Fleet debt (a)

 

9,429

 

9,034

 

9,034

 

 

 

Net Corporate debt (a) (b)

 

6,624

 

6,003

 

5,992

 

 

 

Total equity

 

2,666

 

2,567

 

2,771

 

 

 

 

(a)         Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule V.

(b)         Fleet related to Hertz Equipment Rental Corporation is funded via Net Corporate Debt

 

1


 

SELECTED UNAUDITED CONSOLIDATED CASH FLOW DATA

 

 

 

Six Months Ended June 30,

 

Six Months Ended June 30,

 

(In millions)

 

2014

 

2013
As Restated

 

2013
As Revised

 

2013
As Reported

 

 

 

 

 

 

 

 

 

 

 

Cash provided by (used in):

 

 

 

 

 

 

 

 

 

Operating activities

 

$

1,402

 

$

1,444

 

$

1,448

 

$

1,459

 

Investing activities

 

(2,248

)

(3,273

)

(3,267

)

(3,264

)

Financing activities

 

977

 

1,764

 

1,763

 

1,763

 

Effect of exchange rate changes

 

(2

)

(9

)

(8

)

(8

)

Net change in cash and cash equivalents

 

$

129

 

$

(74

)

$

(64

)

$

(50

)

 

 

 

 

 

 

 

 

 

 

Fleet growth (a)

 

$

(592

)

$

(545

)

NR

 

$

(543

)

Free cash flow (a)

 

$

(689

)

$

(408

)

$

(397

)

$

(404

)

 

(a)         Represents a non-GAAP measure, see the accompanying reconciliations included in the Supplemental Schedules III and IV.

 

SELECTED UNAUDITED OPERATING DATA BY SEGMENT

 

 

 

Three Months Ended June 30,

 

Three Months
Ended June 30,

 

 

 

 

 

2014

 

2013
As Restated

 

2013
As Reported

 

 

 

U.S. Car Rental

 

 

 

 

 

 

 

 

 

Transaction days (in thousands)

 

35,850

 

34,178

 

34,178

 

 

 

Total RPD (a)

 

$

46.19

 

$

46.11

 

$

46.78

 

 

 

Average fleet

 

502,500

 

499,000

 

498,800

 

 

 

Fleet efficiency(a)

 

79

%

79

%

NR

 

 

 

Net depreciation per unit per month(a)

 

$

259

 

$

216

 

NR

 

 

 

Program cars as a percentage of total average fleet

 

16

%

3

%

NR

 

 

 

Adjusted pre-tax income (in millions) (a)

 

$

184

 

$

289

 

NR

 

 

 

International Car Rental

 

 

 

 

 

 

 

 

 

Transaction days (in thousands)

 

12,096

 

11,261

 

11,261

 

 

 

Total RPD (a)(b)

 

$

52.58

 

$

53.73

 

$

54.05

 

 

 

Average Fleet

 

172,300

 

163,500

 

163,500

 

 

 

Fleet efficiency(a)

 

77

%

76

%

NR

 

 

 

Net depreciation per unit per month(a)

 

$

240

 

$

273

 

NR

 

 

 

Program cars as a percentage of total average fleet

 

42

%

38

%

NR

 

 

 

Adjusted pre-tax income (loss) (in millions) (a)

 

$

57

 

$

35

 

NR

 

 

 

Worldwide Equipment Rental

 

 

 

 

 

 

 

 

 

Dollar utilization

 

35

%

37

%

NR

 

 

 

Time utilization

 

63

%

64

%

NR

 

 

 

Rental and rental related revenue (in millions) (a)(b)

 

$

356

 

$

343

 

$

351

 

 

 

Same store revenue growth, including growth initiatives (a)(b)

 

4

%

11

%

11

%

 

 

Adjusted pre-tax income (in millions) (a)

 

$

67

 

$

73

 

NR

 

 

 

All Other Operations

 

 

 

 

 

 

 

 

 

Average fleet — Donlen

 

177,800

 

168,000

 

168,000

 

 

 

Adjusted pre-tax income (in millions) (a)

 

$

15

 

$

14

 

NR

 

 

 

 

(a)         Represents a non-GAAP measure, see the accompanying reconciliations included in the Supplemental Schedules II and V.

(b)     Amounts shown for 2014 and 2013 As Restated are based on December 31, 2013 foreign exchange rates.  Amounts shown for 2013 As Reported are based on December 31, 2012 foreign exchange rates.

 

2


 

SUPPLEMENTAL SCHEDULES AND DEFINITIONS

 

The following Supplemental Schedules and definitions are provided to present segment results and reconciliations of non-GAAP measures to their most comparable GAAP measure. Following the Supplemental Schedules we provide definitions for terminology used throughout these schedules.

 

 

HERTZ GLOBAL HOLDINGS, INC.

Supplemental Schedule I

CONDENSED STATEMENT OF OPERATIONS BY SEGMENT

Unaudited

 

 

 

Three Months Ended June 30, 2014

 

Three Months Ended June 30, 2013
As Restated

 

Three Months Ended June 30,

 

(In millions)

 

U.S. Car
Rental

 

Int’l Car Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

U.S. Car
Rental

 

Int’l Car Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

2013
As Revised

 

2013
As Reported

 

Total revenues:

 

$

1,663

 

$

641

 

$

384

 

$

142

 

$

—

 

$

2,830

 

$

1,602

 

$

595

 

$

381

 

$

130

 

$

—

 

$

2,708

 

$

2,709

 

$

2,715

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating

 

990

 

394

 

210

 

6

 

(6

)

1,594

 

865

 

347

 

204

 

6

 

(5

)

1,417

 

1,414

 

1,406

 

Depreciation of revenue earning equipment and lease charges

 

391

 

125

 

79

 

113

 

—

 

708

 

323

 

132

 

73

 

104

 

—

 

632

 

628

 

641

 

Selling, general and administrative

 

93

 

63

 

35

 

8

 

65

 

264

 

113

 

69

 

32

 

8

 

65

 

287

 

280

 

275

 

Interest expense, net

 

44

 

25

 

12

 

3

 

80

 

164

 

45

 

28

 

12

 

2

 

95

 

182

 

182

 

182

 

Other (income) expense, net

 

(22

)

3

 

(1

)

—

 

(1

)

(21

)

(1

)

—

 

(2

)

(1

)

2

 

(2

)

(1

)

(1

)

Total expenses

 

1,496

 

610

 

335

 

130

 

138

 

2,709

 

1,345

 

576

 

319

 

119

 

157

 

2,516

 

2,503

 

2,503

 

Income (loss) before income taxes

 

$

167

 

$

31

 

$

49

 

$

11

 

$

(138

)

121

 

$

257

 

$

19

 

$

62

 

$

11

 

$

(157

)

$

192

 

$

206

 

$

212

 

(Provision) benefit for taxes on income

 

 

 

 

 

 

 

 

 

 

 

(49

)

 

 

 

 

 

 

 

 

 

 

(81

)

(85

)

(91

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

$

72

 

 

 

 

 

 

 

 

 

 

 

$

111

 

$

121

 

$

121

 

 

3


 

Supplemental Schedule II

HERTZ GLOBAL HOLDINGS, INC.

RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES

TO EBITDA, CORPORATE EBITDA AND ADJUSTED PRE-TAX INCOME BY SEGMENT

Unaudited

 

 

 

Three Months Ended June 30, 2014

 

Three Months Ended June 30, 2013
As Restated

 

Three Months
Ended June 30,
2013
As Reported

 

(In millions)

 

U.S. Car Rental

 

Int’l Car Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

U.S. Car Rental

 

Int’l Car Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

Consolidated
HGH

 

Income (loss) before income taxes

 

$

167

 

$

32

 

$

49

 

$

11

 

$

(138

)

$

121

 

$

257

 

$

19

 

$

62

 

$

11

 

$

(157

)

$

192

 

$

212

 

Depreciation and amortization

 

447

 

135

 

97

 

116

 

4

 

799

 

374

 

140

 

91

 

107

 

3

 

715

 

722

 

Interest, net of interest income

 

44

 

25

 

12

 

3

 

80

 

164

 

45

 

28

 

12

 

2

 

95

 

182

 

182

 

EBITDA

 

$

658

 

$

192

 

$

158

 

$

130

 

$

(54

)

$

1,084

 

$

676

 

$

187

 

$

165

 

$

120

 

$

(59

)

$

1,089

 

$

1,116

 

Car rental fleet depreciation

 

(391

)

(124

)

—

 

(114

)

(1

)

(630

)

(323

)

(132

)

—

 

(104

)

—

 

(559

)

(568

)

Car rental fleet interest

 

(45

)

(22

)

—

 

(3

)

—

 

(70

)

(45

)

(26

)

—

 

(2

)

1

 

(72

)

(73

)

Car rental fleet debt - related charges

 

1

 

5

 

—

 

1

 

1

 

8

 

1

 

4

 

—

 

—

 

—

 

5

 

5

 

Non-cash stock-based employee compensation charges

 

—

 

—

 

—

 

—

 

5

 

5

 

—

 

—

 

—

 

—

 

11

 

11

 

12

 

Restructuring and restructuring related charges

 

4

 

14

 

2

 

—

 

11

 

31

 

12

 

10

 

1

 

—

 

3

 

26

 

26

 

Acquisition related costs and charges

 

—

 

—

 

—

 

—

 

2

 

2

 

—

 

—

 

—

 

—

 

8

 

8

 

9

 

Integration expenses

 

—

 

—

 

—

 

—

 

3

 

3

 

(1

)

—

 

—

 

—

 

10

 

9

 

9

 

Equipment Rental spin-off costs

 

—

 

—

 

6

 

—

 

6

 

12

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Relocation costs

 

—

 

—

 

—

 

—

 

3

 

3

 

—

 

—

 

—

 

—

 

1

 

1

 

—

 

Premiums paid on debt

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Loss on extinguishment of debt

 

—

 

—

 

—

 

—

 

1

 

1

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Impairment charges and asset write-downs

 

10

 

—

 

—

 

—

 

—

 

10

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Other extraordinary, unusual or non-recurring items

 

(16

)

3

 

—

 

—

 

—

 

(13

)

1

 

—

 

(1

)

(1

)

7

 

6

 

5

 

Corporate EBITDA

 

$

221

 

$

68

 

$

166

 

$

14

 

$

(23

)

$

446

 

$

321

 

$

43

 

$

165

 

$

13

 

$

(18

)

$

524

 

$

541

 

Non-fleet depreciation and amortization

 

(56

)

(11

)

(97

)

(2

)

(3

)

(169

)

(51

)

(8

)

(91

)

(3

)

(3

)

(156

)

(154

)

Non-fleet interest, net of interest income

 

1

 

(3

)

(12

)

—

 

(80

)

(94

)

—

 

(2

)

(12

)

—

 

(96

)

(110

)

(109

)

Non-fleet debt - related charges

 

1

 

—

 

1

 

—

 

3

 

5

 

1

 

—

 

1

 

—

 

12

 

14

 

15

 

Non-cash stock-based employee compensation charges

 

—

 

—

 

—

 

—

 

(5

)

(5

)

—

 

—

 

—

 

—

 

(11

)

(11

)

(12

)

Acquisition accounting

 

17

 

3

 

9

 

3

 

1

 

33

 

18

 

2

 

10

 

4

 

1

 

35

 

33

 

Adjusted Pre-Tax Income (Loss)

 

$

184

 

$

57

 

$

67

 

$

15

 

$

(107

)

$

216

 

$

289

 

$

35

 

$

73

 

$

14

 

$

(115

)

$

296

 

$

314

 

 

4


 

Supplemental Schedule III

 

HERTZ GLOBAL HOLDINGS, INC.

FREE CASH FLOW

Unaudited

 

 

 

 

Six Months Ended
June 30,

 

Six Months Ended
June 30,

 

(In millions)

 

2014

 

2013
As Restated

 

2013
As Revised

 

2013
As Reported

 

Income before income taxes

 

$

58

 

$

252

 

$

280

 

$

284

 

Depreciation and amortization, non-fleet

 

180

 

167

 

163

 

163

 

Amortization of debt discount and related charges

 

25

 

37

 

37

 

37

 

Cash paid for income taxes

 

(33

)

(43

)

(43

)

(43

)

Changes in assets and liabilities, net of effects of acquisitions, and other

 

(221

)

(155

)

(163

)

(177

)

Net cash provided by operating activities excluding depreciation of revenue earning equipment

 

9

 

258

 

274

 

264

 

U.S. car rental fleet growth (a)

 

(321

)

(561

)

NR

 

NR

 

International car rental fleet growth (a)

 

(209

)

150

 

NR

 

NR

 

Equipment rental fleet growth (a)

 

(50

)

(136

)

NR

 

NR

 

All other operations rental fleet growth (a)

 

(12

)

2

 

NR

 

NR

 

Property and equipment expenditures, net of disposals

 

(106

)

(121

)

(125

)

(125

)

Net investment activity

 

(698

)

(666

)

(671

)

(668

)

Free cash flow

 

$

(689

)

$

(408

)

$

(397

)

$

(404

)

 

(a)           Historically, fleet growth has not been reported on a segment basis.

 

5


 

 

HERTZ GLOBAL HOLDINGS, INC.

Supplemental Schedule IV

FLEET GROWTH

Unaudited

 

 

 

Six Months Ended June 30, 2014

 

Six Months Ended June 30, 2013
As Restated

 

Six Months
Ended June
30, 2013
As Reported

 

(In millions)

 

U.S. Car
Rental

 

Int’l Car Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Consolidated
HGH

 

U.S. Car
Rental

 

Int’l Car Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Consolidated
HGH

 

Consolidated
HGH

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue earning equipment expenditures

 

$

(3,260

)

$

(1,673

)

$

(296

)

$

(767

)

$

(5,996

)

$

(4,463

)

$

(1,472

)

$

(365

)

$

(513

)

$

(6,813

)

$

(6,826

)

Proceeds from disposal of revenue earning equipment

 

2,114

 

1,059

 

89

 

455

 

3,717

 

2,396

 

993

 

82

 

266

 

3,737

 

3,743

 

Net revenue earning equipment capital expenditures

 

(1,146

)

(614

)

(207

)

(312

)

(2,279

)

(2,067

)

(479

)

(283

)

(247

)

(3,076

)

(3,083

)

Depreciation of revenue earning equipment

 

813

 

199

 

157

 

224

 

1,393

 

607

 

223

 

147

 

209

 

1,186

 

1,195

 

Financing activity related to car rental fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

619

 

720

 

—

 

420

 

1,759

 

2,470

 

918

 

—

 

47

 

3,435

 

NR

 

Payments

 

(731

)

(491

)

—

 

(350

)

(1,572

)

(1,741

)

(487

)

—

 

(2

)

(2,230

)

NR

 

Restricted cash changes

 

124

 

(23

)

—

 

6

 

107

 

170

 

(25

)

—

 

(5

)

140

 

NR

 

Net financing activity related to car rental fleet

 

12

 

206

 

—

 

76

 

294

 

899

 

406

 

—

 

40

 

1,345

 

1,345

 

Fleet growth

 

$

(321

)

$

(209

)

$

(50

)

$

(12

)

$

(592

)

$

(561

)

$

150

 

$

(136

)

$

2

 

$

(545

)

$

(543

)

 

6


 

 

HERTZ GLOBAL HOLDINGS, INC.

Supplemental Schedule V

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES - DEBT, REVENUE, DEPRECIATION AND KEY METRICS

Unaudited

 

NET CORPORATE DEBT, NET FLEET DEBT AND TOTAL NET DEBT

 

 

 

 

 

 

 

 

 

As of December 31, 2013

 

As of December 31, 2013

 

 

 

As of June 30, 2014

 

As Restated

 

As Revised

 

(In millions)

 

Fleet

 

Corporate

 

Total

 

Fleet

 

Corporate

 

Total

 

Fleet

 

Corporate

 

Total

 

Debt

 

$

10,100

 

$

7,210

 

$

17,310

 

$

9,806

 

$

6,503

 

$

16,309

 

$

9,806

 

$

6,503

 

$

16,309

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

—

 

540

 

540

 

—

 

411

 

411

 

—

 

423

 

423

 

Restricted cash

 

671

 

46

 

717

 

772

 

89

 

861

 

772

 

88

 

860

 

Net debt

 

$

9,429

 

$

6,624

 

$

16,053

 

$

9,034

 

$

6,003

 

$

15,037

 

$

9,034

 

$

5,992

 

$

15,026

 

 

WORLDWIDE EQUIPMENT RENTAL AND RENTAL RELATED REVENUE

 

 

 

Three Months Ended June 30,

 

(In millions)

 

2014

 

2013
As Restated

 

2013
As Reported

 

 

 

 

 

 

 

 

 

Equipment rental segment revenues

 

$

384

 

$

381

 

$

384

 

Equipment sales and other revenue

 

(29

)

(36

)

(35

)

Rental and rental related revenue at actual rates

 

355

 

345

 

349

 

Foreign currency adjustment (a)

 

1

 

(2

)

2

 

Rental and rental related revenue

 

$

356

 

$

343

 

$

351

 

 

(a) Amounts shown for 2014 and 2013 As Restated are based on December 31, 2013 foreign exchange rates.  Amounts shown for 2013 As Reported are based on December 31, 2012 foreign exchange rates.

 

7


 

Supplemental Schedule V

HERTZ GLOBAL HOLDINGS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES - DEBT, REVENUE, DEPRECIATION AND KEY METRICS (CONTINUED)

Unaudited

 

TOTAL RPD, FLEET EFFICIENCY AND NET DEPRECIATION PER UNIT PER MONTH

 

 

 

U.S. Car Rental

 

 

 

Three Months Ended June 30,

 

(In millions, except as noted)

 

2014

 

2013
As Restated

 

Revenues

 

$

1,663

 

$

1,602

 

Advantage sublease revenue

 

—

 

(22

)

Ancillary retail car sales revenue

 

(7

)

(4

)

Total rental revenue

 

$

1,656

 

$

1,576

 

Transaction days (in thousands)

 

35,850

 

34,178

 

Total RPD (in whole dollars)

 

$

46.19

 

$

46.11

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction days (in thousands)

 

35,850

 

34,178

 

Average Fleet

 

502,500

 

499,000

 

Advantage sublease vehicles

 

(4,400

)

(24,000

)

Hertz 24/7 vehicles

 

(1,000

)

(1,000

)

 

 

 

 

 

 

Average Fleet used to calculate fleet efficiency

 

497,100

 

474,000

 

Number of days in period

 

91

 

91

 

 

 

 

 

 

 

Average fleet multiplied by number of dates in period (in thousands)

 

45,236

 

43,134

 

Fleet efficiency

 

79

%

79

%

 

 

 

 

 

 

Depreciation of revenue earning equipment and lease charges, net (in millions)

 

$

391

 

$

323

 

Average fleet

 

502,500

 

499,000

 

Depreciation of revenue earning equipment and lease charges, net divided by average fleet

 

$

778

 

$

647

 

Number of months in period

 

3

 

3

 

Net depreciation per unit per month

 

$

259

 

$

216

 

 

 

 

International Car Rental

 

 

 

Three Months Ended June 30,

 

(in millions, except as noted)

 

2014

 

2013
As Restated

 

 

 

 

 

 

 

Revenues

 

$

641

 

$

595

 

Foreign currency adjustment (a)

 

(5

)

10

 

Total rental revenue

 

$

636

 

$

605

 

Transaction days (in thousands)

 

12,096

 

11,261

 

Total RPD (in whole dollars)

 

$

52.58

 

$

53.73

 

 

 

 

 

 

 

Transaction days (in thousands)

 

12,096

 

11,261

 

Average Fleet

 

172,300

 

163,500

 

Number of days in period

 

91

 

91

 

Average fleet multiplied by number of days in period

 

15,679

 

14,879

 

Fleet efficiency

 

77

%

76

%

 

 

 

 

 

 

Depreciation of revenue earning equipment and lease charges, net (in millions)

 

$

125

 

$

132

 

Foreign currency adjustment (in millions)(a) 

 

(1

)

2

 

Adjusted depreciation of revenue earning equipment and lease charges, net (in millions)

 

$

124

 

$

134

 

Average fleet

 

172,300

 

163,500

 

Adjusted depreciation of revenue earning equipment and lease charges, net divided by average fleet

 

$

720

 

$

820

 

Number of months in period

 

3

 

3

 

Net depreciation per unit per month

 

$

240

 

$

273

 

 

 

 

All Car Rental

 

 

 

Three Months Ended
 June 30,

 

(In millions, except as noted)

 

2013
As Reported

 

Revenues

 

$

2,330

 

Non-rental revenue

 

(134

)

Foreign currency adjustment

 

12

 

Total rental revenue

 

$

2,208

 

Transaction days (in thousands)

 

45,439

 

Total RPD (in whole dollars)

 

$

48.58

 

 

(a)         Amounts shown for 2014 and 2013 As Restated are based on December 31, 2013 foreign exchange rates.  Amounts shown for 2013 As Reported are based on December 31, 2012 foreign exchange rates.

 

8


 

FINANCIAL INFORMATION AND OPERATING DATA

 

SELECTED UNAUDITED CONSOLIDATED INCOME STATEMENT DATA

 

 

 

Three Months Ended September 30,

 

Three Months Ended September 30,

 

(In millions, except per share data)

 

2014

 

2013
As Restated

 

2013
As Revised

 

2013
As Reported

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

3,121

 

$

3,075

 

$

3,070

 

$

3,070

 

Expenses:

 

 

 

 

 

 

 

 

 

Direct operating

 

1,702

 

1,547

 

1,540

 

1,525

 

Depreciation of revenue earning equipment and lease charges

 

746

 

672

 

675

 

677

 

Selling, general and administrative

 

303

 

282

 

272

 

278

 

Interest expense, net

 

164

 

179

 

179

 

179

 

Other income, net

 

3

 

83

 

83

 

83

 

Total expenses

 

2,918

 

2,763

 

2,749

 

2,742

 

Income (loss) before income taxes

 

203

 

312

 

321

 

328

 

(Provision) benefit for taxes on income (loss)

 

(54

)

(110

)

(111

)

(113

)

Net income (loss)

 

$

149

 

$

202

 

$

210

 

$

215

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

459

 

425

 

425

 

425

 

Diluted

 

464

 

465

 

465

 

465

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.32

 

$

0.48

 

$

0.49

 

$

0.51

 

Diluted

 

$

0.32

 

$

0.44

 

$

0.46

 

$

0.47

 

 

 

 

 

 

 

 

 

 

 

Interest expense — Fleet

 

74

 

84

 

NR

 

84

 

Interest expense, net — Corporate

 

90

 

95

 

NR

 

95

 

Corporate EBITDA (a)

 

553

 

731

 

NR

 

741

 

Adjusted pre-tax Income (loss) (a)

 

322

 

507

 

NR

 

520

 

 

(a)         Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule II.

 

SELECTED UNAUDITED CONSOLIDATED BALANCE SHEET DATA

 

(In millions)

 

As of September
30,
2014

 

As of December 31,
2013
As Restated

 

As of December 31,
2013
As Revised

 

Cash and cash equivalents

 

$

629

 

$

411

 

$

423

 

Restricted cash

 

748

 

861

 

860

 

Revenue earning equipment:

 

 

 

 

 

 

 

U.S. Car Rental

 

8,312

 

8,629

 

8,629

 

International Car Rental

 

2,806

 

2,047

 

2,047

 

Worldwide Equipment Rental

 

2,534

 

2,416

 

2,416

 

All Other Operations

 

1,200

 

1,099

 

1,101

 

Total revenue earning equipment, net

 

14,852

 

14,191

 

14,193

 

Total assets

 

25,474

 

24,423

 

24,588

 

Total debt

 

16,986

 

16,309

 

16,309

 

Net Fleet debt (a)

 

9,529

 

9,034

 

9,034

 

Net Corporate debt (a) (b)

 

6,080

 

6,003

 

5,992

 

Total equity

 

2,779

 

2,567

 

2,771

 

 

(a)         Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule V.

 

(b)         Fleet related to Hertz Equipment Rental Corporation is funded via Net Corporate Debt

 

1


 

SELECTED UNAUDITED CONSOLIDATED CASH FLOW DATA

 

 

 

Nine Months Ended
September 30,

 

Nine Months Ended
September 30,

 

(In millions)

 

2014

 

2013
As Restated

 

2013
As Revised

 

2013
As Reported

 

 

 

 

 

 

 

 

 

 

 

Cash provided by (used in):

 

 

 

 

 

 

 

 

 

Operating activities

 

$

2,729

 

$

2,812

 

$

2,837

 

$

2,852

 

Investing activities

 

(3,283

)

(4,046

)

(4,034

)

(4,035

)

Financing activities

 

790

 

1,201

 

1,201

 

1,201

 

Effect of exchange rate changes

 

(18

)

(2

)

(2

)

(2

)

Net change in cash and cash equivalents

 

$

218

 

$

(35

)

$

2

 

$

16

 

 

 

 

 

 

 

 

 

 

 

Fleet growth (a)

 

$

(381

)

$

(798

)

NR

 

$

(806

)

Free cash flow (a)

 

$

64

 

$

(3

)

$

21

 

$

15

 

 

(a)         Represents a non-GAAP measure, see the accompanying reconciliations included in the Supplemental Schedules III and IV.

 

SELECTED UNAUDITED OPERATING DATA BY SEGMENT

 

 

 

Three Months Ended September 30,

 

Three Months 
Ended 
September 30,

 

 

 

2014

 

2013
As Restated

 

2013
As Reported

 

U.S. Car Rental

 

 

 

 

 

 

 

Transaction days (in thousands)

 

37,901

 

36,064

 

36,064

 

Total RPD (a)

 

$

46.41

 

$

48.36

 

$

48.33

 

Average Fleet(a)

 

515,300

 

516,800

 

516,800

 

Fleet efficiency(a)

 

80

%

80

%

NR

 

Net depreciation per unit per month(a)

 

$

265

 

$

217

 

NR

 

Program cars as a percentage of total average fleet

 

15

%

7

%

NR

 

Adjusted pre-tax income (in millions) (a)

 

$

209

 

$

379

 

$

392

 

International Car Rental

 

 

 

 

 

 

 

Transaction days (in thousands)

 

14,695

 

14,278

 

14,278

 

Total RPD (a)(b)

 

$

54.85

 

$

55.12

 

$

55.27

 

Average Fleet(a)

 

196,900

 

188,700

 

188,700

 

Fleet efficiency(a)

 

81

%

82

%

NR

 

Net depreciation per unit per month(a)

 

$

245

 

$

274

 

NR

 

Program cars as a percentage of total average fleet

 

40

%

36

%

NR

 

Adjusted pre-tax income (loss) (in millions) (a)

 

$

136

 

$

126

 

$

129

 

Worldwide Equipment Rental

 

 

 

 

 

 

 

Dollar utilization(a)

 

37

%

38

%

NR

 

Time utilization(a)

 

66

%

67

%

NR

 

Rental and rental related revenue (in millions) (a)(b)

 

$

382

 

$

369

 

$

372

 

Same store revenue growth, including growth initiatives (a)(b)

 

6

%

7

%

7

%

Adjusted pre-tax income (in millions) (a)

 

$

78

 

$

89

 

$

88

 

All Other Operations

 

 

 

 

 

 

 

Average fleet — Donlen

 

169,700

 

170,800

 

170,800

 

Adjusted pre-tax income (in millions) (a)

 

$

17

 

$

14

 

$

14

 

 

(a)     Represents a non-GAAP measure, see the accompanying reconciliations included in the Supplemental Schedules II and V.

 

(b)     Amounts shown for 2014 and 2013 As Restated are based on December 31, 2013 foreign exchange rates.  Amounts shown for 2013 As Reported are based on December 31, 2012 foreign exchange rates.

 

2


 

SUPPLEMENTAL SCHEDULES AND DEFINITIONS

 

The following Supplemental Schedules and definitions are provided to present segment results and reconciliations of non-GAAP measures to their most comparable GAAP measure. Following the Supplemental Schedules we provide definitions for terminology used throughout these schedules.

 

 

HERTZ GLOBAL HOLDINGS, INC.

Supplemental Schedule I

CONDENSED STATEMENT OF OPERATIONS BY SEGMENT

Unaudited

 

 

 

Three Months Ended September 30, 2014

 

Three Months Ended September 30, 2013
As Restated

 

Three Months 
Ended September
30,

 

Three Months 
Ended
September 30,

 

(In millions)

 

U.S. Car Rental

 

Int’l Car Rental

 

Worldwide
Equipment Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

U.S. Car Rental

 

Int’l Car Rental

 

Worldwide
Equipment Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

2013
As Revised

 

2013
As Reported

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues:

 

$

1,768

 

$

795

 

$

413

 

$

145

 

$

—

 

$

3,121

 

$

1,770

 

$

768

 

$

403

 

$

134

 

$

—

 

$

3,075

 

$

3,070

 

$

3,070

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating

 

1,041

 

427

 

221

 

6

 

7

 

1,702

 

933

 

411

 

206

 

6

 

(9

)

1,547

 

1,540

 

1,525

 

Depreciation of revenue earning equipment and lease charges

 

409

 

143

 

78

 

116

 

—

 

746

 

337

 

151

 

76

 

108

 

—

 

672

 

675

 

677

 

Selling, general and administrative

 

116

 

68

 

47

 

7

 

65

 

303

 

113

 

74

 

33

 

7

 

55

 

282

 

272

 

278

 

Interest expense, net

 

44

 

27

 

12

 

3

 

78

 

164

 

47

 

31

 

13

 

6

 

82

 

179

 

179

 

179

 

Other (income) expense, net

 

(2

)

—

 

(1

)

—

 

6

 

3

 

43

 

—

 

(1

)

—

 

41

 

83

 

83

 

83

 

Total expenses

 

1,608

 

665

 

357

 

132

 

156

 

2,918

 

1,473

 

667

 

327

 

127

 

169

 

2,763

 

2,749

 

2,742

 

Income (loss) before income taxes

 

$

160

 

$

130

 

$

56

 

$

13

 

$

(156

)

$

203

 

$

297

 

$

101

 

$

76

 

$

7

 

$

(169

)

$

312

 

$

321

 

$

328

 

Provision for taxes on income

 

 

 

 

 

 

 

 

 

 

 

(54

)

 

 

 

 

 

 

 

 

 

 

(110

)

(111

)

(113

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

$

149

 

 

 

 

 

 

 

 

 

 

 

$

202

 

$

210

 

$

215

 

 

3


 

Supplemental Schedule II

HERTZ GLOBAL HOLDINGS, INC.

RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES

TO EBITDA, CORPORATE EBITDA AND ADJUSTED PRE-TAX INCOME BY SEGMENT

Unaudited

 

 

 

Three Months Ended September 30, 2014

 

Three Months Ended September 30, 2013
As Restated

 

Three Months Ended
September 30, 2013
As Reported

 

(In millions)

 

U.S. Car

Rental

 

Int’l Car

Rental

 

Worldwide

Equipment

Rental

 

All Other

Operations

 

Corporate

 

Consolidated

HGH

 

U.S. Car

Rental

 

Int’l Car

Rental

 

Worldwide

Equipment

Rental

 

All Other

Operations

 

Corporate

 

Consolidated

HGH

 

Consolidated HGH

 

Income (loss) before income taxes

 

$

160

 

$

130

 

$

56

 

$

13

 

$

(156

)

$

203

 

$

297

 

$

101

 

$

76

 

$

7

 

$

(169

)

$

312

 

$

328

 

Depreciation and amortization

 

465

 

152

 

97

 

118

 

5

 

837

 

387

 

159

 

94

 

110

 

4

 

754

 

755

 

Interest, net of interest income

 

44

 

27

 

12

 

3

 

78

 

164

 

47

 

31

 

13

 

6

 

82

 

179

 

179

 

EBITDA

 

$

669

 

$

309

 

$

165

 

$

134

 

$

(73

)

$

1,204

 

$

731

 

$

291

 

$

183

 

$

123

 

$

(83

)

$

1,245

 

$

1,262

 

Car rental fleet depreciation

 

(409

)

(143

)

—

 

(116

)

—

 

(668

)

(337

)

(151

)

—

 

(108

)

—

 

(596

)

(600

)

Car rental fleet interest

 

(45

)

(23

)

1

 

(4

)

(1

)

(72

)

(46

)

(27

)

—

 

(7

)

—

 

(80

)

(80

)

Car rental fleet debt - related charges

 

3

 

4

 

—

 

2

 

(1

)

8

 

2

 

3

 

—

 

4

 

—

 

9

 

9

 

Non-cash stock-based employee compensation charges

 

—

 

—

 

—

 

—

 

7

 

7

 

—

 

—

 

—

 

—

 

11

 

11

 

11

 

Restructuring and restructuring related charges

 

29

 

1

 

1

 

—

 

24

 

55

 

8

 

12

 

1

 

—

 

18

 

39

 

39

 

Acquisition related costs and charges

 

—

 

—

 

—

 

—

 

1

 

1

 

—

 

—

 

—

 

—

 

3

 

3

 

3

 

Integration expenses

 

—

 

—

 

—

 

—

 

1

 

1

 

6

 

—

 

—

 

—

 

2

 

8

 

9

 

Equipment Rental spin-off costs

 

—

 

—

 

12

 

—

 

2

 

14

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Relocation costs

 

—

 

—

 

—

 

—

 

3

 

3

 

4

 

—

 

—

 

—

 

—

 

4

 

4

 

Premiums paid on debt

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Loss on extinguishment of debt

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

28

 

28

 

—

 

Impairment charges and asset write-downs

 

—

 

—

 

—

 

—

 

—

 

—

 

40

 

—

 

—

 

—

 

—

 

40

 

44

 

Other extraordinary, unusual or non-recurring items

 

—

 

(1

)

(1

)

—

 

2

 

—

 

4

 

7

 

(1

)

—

 

10

 

20

 

40

 

Corporate EBITDA

 

$

247

 

$

147

 

$

178

 

$

16

 

$

(35

)

$

553

 

$

412

 

$

135

 

$

183

 

$

12

 

$

(11

)

$

731

 

$

741

 

Non-fleet depreciation and amortization

 

(56

)

(9

)

(97

)

(2

)

(5

)

(169

)

(50

)

(8

)

(94

)

(2

)

(4

)

(158

)

(155

)

Non-fleet interest, net of interest income

 

1

 

(4

)

(13

)

1

 

(77

)

(92

)

(1

)

(4

)

(13

)

1

 

(82

)

(99

)

(99

)

Non-fleet debt - related charges

 

—

 

—

 

1

 

—

 

4

 

5

 

—

 

—

 

1

 

(1

)

8

 

8

 

9

 

Non-cash stock-based employee compensation charges

 

—

 

—

 

—

 

—

 

(7

)

(7

)

—

 

—

 

—

 

—

 

(11

)

(11

)

(11

)

Acquisition accounting

 

17

 

2

 

9

 

2

 

2

 

32

 

18

 

3

 

10

 

4

 

—

 

35

 

35

 

Other accounting

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

1

 

—

 

—

 

1

 

—

 

Adjusted Pre-Tax Income (Loss)

 

$

209

 

$

136

 

$

78

 

$

17

 

$

(118

)

$

322

 

$

379

 

$

126

 

$

88

 

$

14

 

$

(100

)

$

507

 

$

520

 

 

4


 

Supplemental Schedule III

 

HERTZ GLOBAL HOLDINGS, INC.

FREE CASH FLOW

Unaudited

 

 

 

Nine Months Ended
September 30,

 

Nine Months Ended
September 30,

 

(In millions)

 

2014

 

2013
As Restated

 

2013
As Revised

 

2013
As Reported

 

Income before income taxes

 

$

261

 

$

563

 

$

601

 

$

612

 

Depreciation and amortization, non-fleet

 

272

 

249

 

241

 

241

 

Amortization of debt discount and related charges

 

35

 

54

 

54

 

54

 

Cash paid for income taxes

 

(47

)

(56

)

(56

)

(56

)

Changes in assets and liabilities, net of effects of acquisitions, and other

 

89

 

169

 

172

 

154

 

Net cash provided by operating activities excluding depreciation of revenue earning equipment

 

610

 

979

 

1,012

 

1,005

 

U.S. car rental fleet growth (a)

 

134

 

(489

)

NR

 

NR

 

International car rental fleet growth (a)

 

(401

)

(49

)

NR

 

NR

 

Equipment rental fleet growth (a)

 

(105

)

(258

)

NR

 

NR

 

All other operations rental fleet growth (a)

 

(9

)

(2

)

NR

 

NR

 

Property and equipment expenditures, net of disposals

 

(165

)

(184

)

(184

)

(184

)

Net investment activity

 

(546

)

(982

)

(991

)

(990

)

Free cash flow

 

$

64

 

$

(3

)

$

21

 

$

15

 

 

(a)         Historically, fleet growth has not been reported on a segment basis.

 

5


 

Supplemental Schedule IV

HERTZ GLOBAL HOLDINGS, INC.

FLEET GROWTH

Unaudited

 

 

 

Nine Months Ended September 30, 2014

 

Nine Months Ended September 30, 2013
As Restated

 

Nine Months

Ended

September 30,

2013
As Reported

 

(In millions)

 

U.S. Car

Rental

 

Int’l Car Rental

 

Worldwide

Equipment

Rental

 

All Other

Operations

 

Consolidated

HGH

 

U.S. Car

Rental

 

Int’l Car Rental

 

Worldwide

Equipment

Rental

 

All Other

Operations

 

Consolidated

HGH

 

Consolidated

HGH

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue earning equipment expenditures

 

$

(4,128

)

$

(2,694

)

$

(470

)

$

(1,150

)

$

(8,442

)

$

(5,412

)

$

(2,574

)

$

(582

)

$

(750

)

$

(9,318

)

$

(9,677

)

Proceeds from disposal of revenue earning equipment

 

3,019

 

1,456

 

130

 

711

 

5,316

 

3,506

 

1,654

 

101

 

401

 

5,662

 

5,669

 

Net revenue earning equipment capital expenditures

 

(1,109

)

(1,238

)

(340

)

(439

)

(3,126

)

(1,906

)

(920

)

(481

)

(349

)

(3,656

)

(4,008

)

Depreciation of revenue earning equipment

 

1,222

 

321

 

235

 

340

 

2,118

 

943

 

350

 

223

 

316

 

1,832

 

1,847

 

Financing activity related to car rental fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

1,021

 

1,287

 

—

 

438

 

2,746

 

2,694

 

1,234

 

—

 

993

 

4,921

 

NR

 

Payments

 

(1,085

)

(745

)

—

 

(350

)

(2,180

)

(2,303

)

(682

)

—

 

(947

)

(3,932

)

NR

 

Restricted cash changes

 

85

 

(26

)

—

 

2

 

61

 

83

 

(31

)

—

 

(15

)

37

 

NR

 

Net financing activity related to car rental fleet

 

21

 

516

 

—

 

90

 

627

 

474

 

521

 

—

 

31

 

1,026

 

1,354

 

Fleet growth

 

$

134

 

$

(401

)

$

(105

)

$

(9

)

$

(381

)

$

(489

)

$

(49

)

$

(258

)

$

(2

)

$

(798

)

$

(806

)

 

6


 

Supplemental Schedule V

HERTZ GLOBAL HOLDINGS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES - DEBT, REVENUE, DEPRECIATION AND KEY METRICS

Unaudited

 

NET CORPORATE DEBT, NET FLEET DEBT AND TOTAL NET DEBT

 

 

 

 

 

 

 

 

 

As of December 31, 2013

 

As of December 31, 2013

 

 

 

As of September 30, 2014

 

As Restated

 

As Revised

 

(In millions)

 

Fleet

 

Corporate

 

Total

 

Fleet

 

Corporate

 

Total

 

Fleet

 

Corporate

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

10,237

 

$

6,749

 

$

16,986

 

$

9,806

 

$

6,503

 

$

16,309

 

$

9,806

 

$

6,503

 

$

16,309

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

—

 

629

 

629

 

—

 

411

 

411

 

—

 

423

 

423

 

Restricted cash

 

708

 

40

 

748

 

772

 

89

 

861

 

772

 

88

 

860

 

Net debt

 

$

9,529

 

$

6,080

 

$

15,609

 

$

9,034

 

$

6,003

 

$

15,037

 

$

9,034

 

$

5,992

 

$

15,026

 

 

WORLDWIDE EQUIPMENT RENTAL AND RENTAL RELATED REVENUE

 

 

 

Three Months Ended

September 30,

 

Three Months

Ended

September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

 

2014

 

2013
As Restated

 

2013
As Reported

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment rental segment revenues

 

$

413

 

$

403

 

$

402

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment sales and other revenue

 

(33

)

(33

)

(33

)

 

 

 

 

 

 

 

 

 

 

 

 

Rental and rental related revenue at actual rates

 

380

 

370

 

369

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency adjustment (a)

 

2

 

(1

)

3

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental and rental related revenue

 

$

382

 

$

369

 

$

372

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Amounts shown for 2014 and 2013 As Restated are based on December 31, 2013 foreign exchange rates.  Amounts shown for 2013 As Reported are based on December 31, 2012 foreign exchange rates.

 

7


 

Supplemental Schedule V

HERTZ GLOBAL HOLDINGS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES - DEBT, REVENUE, DEPRECIATION AND KEY METRICS (CONTINUED)

Unaudited

 

TOTAL RPD, FLEET EFFICIENCY AND NET DEPRECIATION PER UNIT PER MONTH

 

U.S. Car Rental

 

 

 

Three Months Ended September 30,

 

Three Months Ended

September 30,

 

(In millions, except as noted)

 

2014

 

2013
As Restated

 

2013
As Reported

 

 

 

 

 

 

 

 

 

Car rental segment revenues

 

$

1,768

 

$

1,770

 

$

1,766

 

Advantage sublease revenue

 

—

 

(22

)

(23

)

Ancillary retail car sales revenue

 

(9

)

(4

)

—

 

Total rental revenue

 

$

1,759

 

$

1,744

 

$

1,743

 

Transaction days (in thousands)

 

37,901

 

36,064

 

36,064

 

Total RPD (in whole dollars)

 

$

46.41

 

$

48.36

 

$

48.33

 

 

 

 

 

 

 

 

 

Transaction days (in thousands)

 

37,901

 

36,064

 

 

 

Average Fleet

 

515,300

 

516,800

 

 

 

Advantage sublease vehicles

 

(1,000

)

(23,000

)

 

 

Hertz 24/7 vehicles

 

(1,000

)

(2,000

)

 

 

Average Fleet used to calculate fleet efficiency

 

513,300

 

491,800

 

 

 

Number of days in period

 

92

 

92

 

 

 

Average fleet multiplied by number of dates in period (in thousands)

 

$

47,224

 

$

45,246

 

 

 

Fleet efficiency

 

80

%

80

%

 

 

 

 

 

 

 

 

 

 

Depreciation of revenue earning equipment and lease charges, net (in millions)

 

$

409

 

$

337

 

 

 

Average fleet

 

515,300

 

516,800

 

 

 

Depreciation of revenue earning equipment and lease charges, net divided by average fleet

 

$

794

 

$

652

 

 

 

Number of months in period

 

3

 

3

 

 

 

Net depreciation per unit per month

 

$

265

 

$

217

 

 

 

 

International Car Rental

 

 

 

Three Months Ended September 30,

 

Three Months Ended

September 30,

 

(in millions, except as noted)

 

2014

 

2013
As Restated

 

2013
As Reported

 

 

 

 

 

 

 

 

 

Car rental segment revenues

 

$

795

 

$

768

 

$

768

 

Foreign currency adjustment (a)

 

11

 

19

 

21

 

Total rental revenue

 

$

806

 

$

787

 

$

789

 

Transaction days (in thousands)

 

14,695

 

14,278

 

14,278

 

Total RPD (in whole dollars)

 

$

54.85

 

$

55.12

 

$

55.27

 

 

 

 

 

 

 

 

 

Transaction days (in thousands)

 

14,695

 

14,278

 

 

 

Average Fleet

 

196,900

 

188,700

 

 

 

Number of days in period

 

92

 

92

 

 

 

Average fleet multiplied by number of days in period

 

18,115

 

17,360

 

 

 

Fleet efficiency

 

81

%

82

%

 

 

 

 

 

 

 

 

 

 

Depreciation of revenue earning equipment and lease charges, net (in millions)

 

$

143

 

$

151

 

 

 

Foreign currency adjustment (in millions) (a) 

 

2

 

4

 

 

 

Adjusted depreciation of revenue earning equipment and lease charges, net (in millions)

 

$

145

 

$

155

 

 

 

Average fleet

 

196,900

 

188,700

 

 

 

Adjusted depreciation of revenue earning equipment and lease charges, net divided by average fleet

 

$

736

 

$

821

 

 

 

Number of months in period

 

3

 

3

 

 

 

Net depreciation per unit per month

 

$

245

 

$

274

 

 

 

 

(a)         Amounts shown for 2014 and 2013 As Restated are based on December 31, 2013 foreign exchange rates.  Amounts shown for 2013 As Reported are based on December 31, 2012 foreign exchange rates.

 

8


 

FINANCIAL INFORMATION AND OPERATING DATA

 

SELECTED UNAUDITED CONSOLIDATED INCOME STATEMENT DATA

 

 

 

Three Months Ended
December 31,

 

Three Months Ended December 31,

 

(In millions, except per share data)

 

2014

 

2013
As Restated

 

2013
As Revised

 

2013
As Reported

 

Total revenues

 

$

2,559

 

$

2,555

 

$

2,556

 

$

2,556

 

Expenses:

 

 

 

 

 

 

 

 

 

Direct operating

 

1,575

 

1,449

 

1,439

 

1,439

 

Depreciation of revenue earning equipment and lease charges

 

853

 

641

 

643

 

643

 

Selling, general and administrative

 

245

 

234

 

222

 

222

 

Interest expense, net

 

164

 

171

 

169

 

169

 

Other income, net

 

6

 

21

 

21

 

21

 

Total expenses

 

2,843

 

2,516

 

2,494

 

2,494

 

Income (loss) before income taxes

 

(284

)

39

 

62

 

62

 

(Provision) benefit for taxes on income (loss)

 

50

 

(57

)

(63

)

(63

)

Net income (loss)

 

$

(234

)

$

(18

)

$

(1

)

$

(1

)

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

459

 

447

 

447

 

447

 

Diluted

 

459

 

447

 

464

 

464

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.51

)

$

(0.04

)

$

—

 

$

—

 

Diluted

 

$

(0.51

)

$

(0.04

)

$

—

 

$

—

 

 

 

 

 

 

 

 

 

 

 

Interest expense — Fleet

 

72

 

80

 

NR

 

80

 

Interest expense, net — Corporate

 

92

 

91

 

NR

 

89

 

Corporate EBITDA (a)

 

76

 

388

 

NR

 

406

 

Adjusted pre-tax Income (loss) (a)

 

(161

)

157

 

NR

 

186

 

 

(a)         Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule II.

 

SELECTED UNAUDITED CONSOLIDATED BALANCE SHEET DATA

 

(In millions)

 

As of
December 31,

2014

 

As of
December 31,

2013
As Restated

 

As of
December 31,

2013
As Revised

 

Cash and cash equivalents

 

$

490

 

$

411

 

$

423

 

Restricted cash

 

571

 

861

 

860

 

Revenue earning equipment:

 

 

 

 

 

 

 

U.S. Car Rental

 

8,070

 

8,629

 

8,629

 

International Car Rental

 

1,904

 

2,047

 

2,047

 

Worldwide Equipment Rental

 

2,442

 

2,416

 

2,416

 

All Other Operations

 

1,237

 

1,099

 

1,101

 

Total revenue earning equipment, net

 

13,653

 

14,191

 

14,193

 

Total assets

 

23,985

 

24,423

 

24,588

 

Total debt

 

15,993

 

16,309

 

16,309

 

Net Fleet debt (a)

 

9,047

 

9,034

 

9,034

 

Net Corporate debt (a) (b)

 

5,885

 

6,003

 

5,992

 

Total equity

 

2,464

 

2,567

 

2,771

 

 

(a)         Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule V.

(b)         Fleet related to Hertz Equipment Rental Corporation is funded via Net Corporate Debt.

 

1


 

SELECTED UNAUDITED CONSOLIDATED CASH FLOW DATA

 

 

 

Twelve Months Ended
December 31,

 

Twelve Months

Ended December

31,

 

(In millions)

 

2014

 

2013
As Restated

 

2013
As Revised

 

 

 

 

 

 

 

 

 

Cash provided by (used in):

 

 

 

 

 

 

 

Operating activities

 

$

3,452

 

$

3,593

 

$

3,590

 

Investing activities

 

(3,183

)

(3,850

)

(3,839

)

Financing activities

 

(159

)

127

 

127

 

Effect of exchange rate changes

 

(31

)

—

 

—

 

Net change in cash and cash equivalents

 

$

79

 

$

(130

)

$

(122

)

 

 

 

 

 

 

 

 

Fleet growth (a)

 

$

104

 

$

(449

)

$

(455

)

Free cash flow (a)

 

$

321

 

$

446

 

$

449

 

 

(a)         Represents a non-GAAP measure, see the accompanying reconciliations included in the Supplemental Schedules III and IV.

 

SELECTED UNAUDITED OPERATING DATA BY SEGMENT

 

 

 

Three Months Ended December 31,

 

Three Months

Ended December

31,

 

 

 

2014

 

2013
As Restated

 

2013
As Reported

 

U.S. Car Rental

 

 

 

 

 

 

 

Transaction days (in thousands)

 

33,595

 

32,875

 

32,875

 

Total RPD (a)

 

$

43.85

 

$

44.75

 

$

44.91

 

Average fleet

 

486,900

 

490,200

 

490,200

 

Fleet efficiency(a)

 

75

%

76

%

NR

 

Net depreciation per unit per month(a)

 

$

365

 

$

229

 

NR

 

Program cars as a percentage of total average fleet at period end

 

21

%

9

%

NR

 

Adjusted pre-tax income (loss) (in millions) (a)

 

$

(126

)

$

132

 

$

170

 

International Car Rental

 

 

 

 

 

 

 

Transaction days (in thousands)

 

10,734

 

10,473

 

10,473

 

Total RPD (a)(b)

 

$

51.70

 

$

51.85

 

$

52.49

 

Average Fleet

 

156,700

 

155,700

 

155,700

 

Fleet efficiency(a)

 

74

%

73

%

NR

 

Net depreciation per unit per month(a)

 

$

225

 

$

225

 

NR

 

Program cars as a percentage of total average fleet at period end

 

30

%

24

%

NR

 

Adjusted pre-tax income (loss) (in millions) (a)

 

$

(12

)

$

21

 

$

15

 

Worldwide Equipment Rental

 

 

 

 

 

 

 

Dollar utilization(a)

 

38

%

38

%

NR

 

Time utilization(a)

 

67

%

66

%

NR

 

Rental and rental related revenue (in millions) (a)(b)

 

$

394

 

$

366

 

$

371

 

Same store revenue growth, including growth initiatives (a)(b)

 

5

%

5

%

5

%

Adjusted pre-tax income (loss) (in millions) (a)

 

$

60

 

$

93

 

$

85

 

All Other Operations

 

 

 

 

 

 

 

Average fleet — Donlen

 

166,800

 

173,800

 

173,800

 

Adjusted pre-tax income (loss) (in millions) (a)

 

$

15

 

$

16

 

$

15

 

 

(a)         Represents a non-GAAP measure, see the accompanying reconciliations included in the Supplemental Schedules II and V.

(b)         Amounts shown for 2014 and 2013 As Restated are based on December 31, 2013 foreign exchange rates.  Amounts shown for 2013 As Reported are based on December 31, 2012 foreign exchange rates.

 

2


 

SUPPLEMENTAL SCHEDULES AND DEFINITIONS

 

The following Supplemental Schedules and definitions are provided to present segment results and reconciliations of non-GAAP measures to their most comparable GAAP measure. Following the Supplemental Schedules we provide definitions for terminology used throughout these schedules.

 

 

HERTZ GLOBAL HOLDINGS, INC.

Supplemental Schedule I

 

CONDENSED STATEMENT OF OPERATIONS BY SEGMENT

 

 

Unaudited

 

 

 

 

Three Months Ended December 31, 2014

 

Three Months Ended December 31, 2013
As Restated

 

Three Months Ended December 31,
2013

 

(In millions)

 

U.S. Car
Rental

 

Int’l Car Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

U.S. Car
Rental

 

Int’l Car Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

As Revised
Consolidated
HGH

 

As Reported
Consolidated
HGH

 

Total revenues:

 

$

1,482

 

$

518

 

$

416

 

$

143

 

$

—

 

$

2,559

 

$

1,475

 

$

544

 

$

401

 

$

135

 

$

—

 

$

2,555

 

$

2,556

 

$

2,556

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating

 

982

 

342

 

232

 

6

 

13

 

1,575

 

888

 

337

 

214

 

6

 

4

 

1,449

 

1,439

 

1,439

 

Depreciation of revenue earning equipment and lease charges

 

533

 

112

 

94

 

114

 

—

 

853

 

337

 

119

 

76

 

109

 

—

 

641

 

643

 

643

 

Selling, general and administrative

 

71

 

62

 

47

 

7

 

58

 

245

 

101

 

60

 

33

 

6

 

34

 

234

 

222

 

222

 

Interest expense, net

 

47

 

22

 

15

 

3

 

77

 

164

 

49

 

28

 

9

 

3

 

82

 

171

 

169

 

169

 

Other (income) expense, net

 

13

 

2

 

(2

)

1

 

(8

)

6

 

(12

)

29

 

(1

)

2

 

3

 

21

 

21

 

21

 

Total expenses

 

1,646

 

540

 

386

 

131

 

140

 

2,843

 

1,363

 

573

 

331

 

126

 

123

 

2,516

 

2,494

 

2,494

 

Income (loss)before income taxes

 

$

(164

)

$

(22

)

$

30

 

$

12

 

$

(140

)

$

(284

)

$

112

 

$

(29

)

$

70

 

$

9

 

$

(123

)

$

39

 

$

62

 

$

62

 

Provision for taxes on income

 

 

 

 

 

 

 

 

 

 

 

50

 

 

 

 

 

 

 

 

 

 

 

(57

)

(63

)

(63

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

$

(234

)

 

 

 

 

 

 

 

 

 

 

$

(18

)

$

(1

)

$

(1

)

 

3


 

 

 

Supplemental Schedule II

 

HERTZ GLOBAL HOLDINGS, INC.

 

 

RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES

 

 

TO EBITDA, CORPORATE EBITDA AND ADJUSTED PRE-TAX INCOME BY SEGMENT

 

 

Unaudited

 

 

 

 

 

Three Months Ended December 31, 2014

 

Three Months Ended December 31, 2013
As Restated

 

Three Months
Ended December
31, 2013
As Reported

 

(In millions)

 

U.S. Car
Rental

 

Int’l Car
Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

U.S. Car
Rental

 

Int’l Car
Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

Consolidated
HGH

 

Income (loss) before income taxes

 

$

(164

)

$

(22

)

$

30

 

$

12

 

$

(140

)

$

(284

)

$

112

 

$

(29

)

$

70

 

$

9

 

$

(123

)

$

39

 

$

62

 

Depreciation and amortization

 

588

 

122

 

113

 

117

 

7

 

947

 

392

 

131

 

94

 

111

 

3

 

731

 

729

 

Interest, net of interest income

 

47

 

22

 

15

 

3

 

77

 

164

 

49

 

28

 

9

 

3

 

82

 

171

 

169

 

EBITDA

 

$

471

 

$

122

 

$

158

 

$

132

 

$

(56

)

$

827

 

$

553

 

$

130

 

$

173

 

$

123

 

$

(38

)

$

941

 

$

960

 

Car rental fleet depreciation

 

(533

)

(111

)

—

 

(115

)

—

 

(759

)

(337

)

(119

)

—

 

(109

)

—

 

(565

)

(567

)

Car rental fleet interest

 

(49

)

(20

)

—

 

(3

)

—

 

(72

)

(51

)

(25

)

—

 

(3

)

—

 

(79

)

(79

)

Car rental fleet debt - related charges (a)

 

5

 

3

 

—

 

1

 

—

 

9

 

8

 

4

 

—

 

1

 

—

 

13

 

13

 

Non-cash stock-based employee compensation charges (b)

 

—

 

4

 

—

 

—

 

(14

)

(10

)

—

 

4

 

—

 

—

 

2

 

6

 

4

 

Restructuring and restructuring related charges (c)

 

12

 

3

 

—

 

—

 

24

 

39

 

5

 

9

 

8

 

—

 

4

 

26

 

27

 

Acquisition related costs and charges (d)

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

5

 

5

 

5

 

Integration expenses (d)

 

—

 

—

 

—

 

—

 

1

 

1

 

9

 

—

 

—

 

—

 

5

 

14

 

11

 

Equipment Rental spin-off costs (e)

 

—

 

—

 

11

 

—

 

1

 

12

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Relocation costs (f)

 

—

 

—

 

—

 

—

 

2

 

2

 

(1

)

—

 

—

 

—

 

3

 

2

 

3

 

Premiums paid on debt (g)

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

29

 

—

 

—

 

—

 

29

 

29

 

Loss on extinguishment of debt (h)

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

7

 

7

 

—

 

Impairment charges and asset write-downs (i)

 

—

 

—

 

10

 

—

 

14

 

24

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Other extraordinary, unusual or non-recurring items

 

—

 

1

 

(1

)

—

 

3

 

3

 

(13

)

5

 

—

 

2

 

(5

)

(11

)

—

 

Corporate EBITDA

 

$

(94

)

$

2

 

$

178

 

$

15

 

$

(25

)

$

76

 

$

173

 

$

37

 

$

181

 

$

14

 

$

(17

)

$

388

 

$

406

 

Non-fleet depreciation and amortization

 

(55

)

(11

)

(113

)

(2

)

(7

)

(188

)

(55

)

(12

)

(94

)

(2

)

(3

)

(166

)

(162

)

Non-fleet interest, net of interest income

 

2

 

(2

)

(15

)

—

 

(77

)

(92

)

2

 

(3

)

(9

)

—

 

(82

)

(92

)

(90

)

Non-fleet debt - related charges (a)

 

1

 

—

 

1

 

—

 

3

 

5

 

—

 

—

 

2

 

1

 

(1

)

2

 

1

 

Non-cash stock-based employee compensation charges

 

—

 

(4

)

—

 

—

 

14

 

10

 

—

 

(4

)

—

 

—

 

(2

)

(6

)

(4

)

Acquisition accounting (j)

 

20

 

3

 

9

 

2

 

—

 

34

 

12

 

3

 

10

 

3

 

—

 

28

 

33

 

Other

 

—

 

—

 

—

 

—

 

(6

)

(6

)

—

 

—

 

3

 

—

 

—

 

3

 

2

 

Adjusted Pre-Tax Income (Loss)

 

$

(126

)

$

(12

)

$

60

 

$

15

 

$

(98

)

$

(161

)

$

132

 

$

21

 

$

93

 

$

16

 

$

(105

)

$

157

 

$

186

 

 

4


 

Supplemental Schedule III

 

HERTZ GLOBAL HOLDINGS, INC.

FREE CASH FLOW

Unaudited

 

 

 

Twelve Months Ended

 

Twelve
Months Ended

 

 

 

December 31,

 

December 31,

 

(In millions)

 

2014

 

2013
As Restated

 

2013
As Revised

 

Income before income taxes

 

$

(23

)

$

603

 

$

663

 

Depreciation and amortization, non-fleet assets

 

366

 

339

 

206

 

Amortization of debt discount and related charges

 

46

 

68

 

190

 

Cash paid for income taxes

 

(64

)

(71

)

(71

)

Changes in assets and liabilities, net of effects of acquisitions, and other

 

173

 

202

 

157

 

Net cash provided by operating activities excluding depreciation of revenue earning equipment

 

498

 

1,141

 

1,145

 

U.S. car rental fleet growth (a)

 

260

 

(500

)

(511

)

International car rental fleet growth (a)

 

(61

)

243

 

247

 

Equipment rental fleet growth (a)

 

(103

)

(235

)

(234

)

All other operations rental fleet growth (a)

 

8

 

43

 

43

 

Property and equipment expenditures, net of disposals

 

(281

)

(246

)

(241

)

Net investment activity

 

(177

)

(695

)

(696

)

Free cash flow

 

$

321

 

$

446

 

$

449

 

 

(a)  Historically, fleet growth has not been reported on a segment basis.

 

5


 

Supplemental Schedule IV

HERTZ GLOBAL HOLDINGS, INC.

FLEET GROWTH

Unaudited

 

 

 

Twelve Months Ended December 31, 2014

 

Twelve Months Ended December 31, 2013
As Restated

 

Twelve Months
Ended December
31, 2013
As Reported

 

(In millions)

 

U.S. Car
Rental

 

Int’l Car
Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Consolidated
HGH

 

U.S. Car
Rental

 

Int’l Car
Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Consolidated
HGH

 

Consolidated HGH

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue earning equipment expenditures

 

$

(5,965

)

$

(3,103

)

$

(615

)

$

(1,606

)

$

(11,289

)

$

(6,015

)

$

(2,593

)

$

(672

)

$

(1,009

)

$

(10,289

)

$

(10,298

)

Proceeds from disposal of revenue earning equipment

 

4,507

 

2,510

 

182

 

1,010

 

8,209

 

4,320

 

2,242

 

138

 

556

 

7,256

 

7,264

 

Net revenue earning equipment capital expenditures

 

(1,458

)

(593

)

(433

)

(596

)

(3,080

)

(1,695

)

(351

)

(534

)

(453

)

(3,033

)

(3,034

)

Depreciation of revenue earning equipment

 

1,758

 

412

 

330

 

455

 

2,955

 

1,279

 

447

 

299

 

425

 

2,450

 

2,445

 

Financing activity related to car rental fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

2,702

 

1,181

 

—

 

511

 

4,394

 

5,600

 

2,019

 

—

 

1,531

 

9,150

 

NR

 

Payments

 

(3,012

)

(1,051

)

—

 

(350

)

(4,413

)

(5,432

)

(1,884

)

—

 

(1,444

)

(8,760

)

NR

 

Restricted cash changes

 

270

 

(10

)

—

 

(12

)

248

 

(252

)

12

 

—

 

(16

)

(256

)

NR

 

Net financing activity related to car rental fleet

 

(40

)

120

 

—

 

149

 

229

 

(84

)

147

 

—

 

71

 

134

 

134

 

Fleet growth

 

$

260

 

$

(61

)

$

(103

)

$

8

 

$

104

 

$

(500

)

$

243

 

$

(235

)

$

43

 

$

(449

)

$

(455

)

 

6


 

Supplemental Schedule V

 

HERTZ GLOBAL HOLDINGS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES - DEBT, REVENUE, DEPRECIATION AND KEY METRICS

Unaudited

 

NET CORPORATE DEBT, NET FLEET DEBT AND TOTAL NET DEBT

 

 

 

 

 

 

 

 

 

As of December 31, 2013

 

As of December 31, 2013

 

 

 

As of December 31, 2014

 

As Restated

 

As Revised

 

(In millions)

 

Fleet

 

Corporate

 

Total

 

Fleet

 

Corporate

 

Total

 

Fleet

 

Corporate

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

9,562

 

$

6,431

 

$

15,993

 

$

9,806

 

$

6,503

 

$

16,309

 

$

9,806

 

$

6,503

 

$

16,309

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

—

 

490

 

490

 

—

 

411

 

411

 

—

 

423

 

423

 

Restricted cash

 

515

 

56

 

571

 

772

 

89

 

861

 

772

 

88

 

860

 

Net debt

 

$

9,047

 

$

5,885

 

$

14,932

 

$

9,034

 

$

6,003

 

$

15,037

 

$

9,034

 

$

5,992

 

$

15,026

 

 

WORLDWIDE EQUIPMENT RENTAL AND RENTAL RELATED REVENUE

 

 

 

Three Months
Ended December 31,

 

Three
Months
Ended
December 31,

 

(In millions)

 

2014

 

2013
As Restated

 

2013
As Revised

 

 

 

 

 

 

 

 

 

Equipment rental segment revenues

 

$

416

 

$

401

 

$

401

 

Equipment sales and other revenue

 

(28

)

(34

)

(34

)

Rental and rental related revenue at actual rates

 

388

 

367

 

367

 

Foreign currency adjustment (a)

 

6

 

(1

)

3

 

Rental and rental related revenue

 

$

394

 

$

366

 

$

370

 

 

(a)        Amounts shown for 2014 and 2013 As Restated are based on December 31, 2013 foreign exchange rates.  Amounts shown for 2013 As Reported are based on December 31, 2012 foreign exchange rates.

 

7


 

Supplemental Schedule V

 

HERTZ GLOBAL HOLDINGS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES - DEBT, REVENUE, DEPRECIATION AND KEY METRICS (CONTINUED)

Unaudited

 

TOTAL RPD, FLEET EFFICIENCY AND NET DEPRECIATION PER UNIT PER MONTH

 

U.S. Car Rental Segment

 

 

 

Three Months
Ended December 31,

 

Three Months Ended
December 31,

 

(In millions, except as noted)

 

2014

 

2013
As Restated

 

2013
As Reported

 

Revenues

 

$

1,482

 

$

1,475

 

$

1,476

 

Advantage sublease revenue

 

—

 

—

 

—

 

Ancillary retail car sales revenue

 

(9

)

(4

)

—

 

Total rental revenue

 

$

1,473

 

$

1,471

 

$

1,476

 

Transaction days (in thousands)

 

33,595

 

32,875

 

32,875

 

Total RPD (in whole dollars)

 

$

43.85

 

$

44.75

 

$

44.91

 

 

 

 

 

 

 

 

 

Transaction days (in thousands)

 

33,595

 

32,875

 

 

 

Average Fleet

 

486,900

 

490,200

 

 

 

Advantage sublease vehicles

 

—

 

(18,000

)

 

 

Hertz 24/7 vehicles

 

—

 

(2,000

)

 

 

Average Fleet used to calculate fleet efficiency

 

486,900

 

470,200

 

 

 

Number of days in period

 

92

 

92

 

 

 

Average fleet multiplied by number of days in period (in thousands)

 

$

44,795

 

$

43,258

 

 

 

Fleet efficiency

 

75

%

76

%

 

 

 

 

 

 

 

 

 

 

Depreciation of revenue earning equipment and lease charges, net (in millions)

 

$

533

 

$

337

 

 

 

Average fleet

 

486,900

 

490,200

 

 

 

Adjusted depreciation of revenue earning equipment and lease charges, net divided by average fleet

 

$

1,095

 

$

687

 

 

 

Number of months in period

 

3

 

3

 

 

 

Net depreciation per unit per month

 

$

365

 

$

229

 

 

 

 

International Car Rental

 

 

 

Three Months Ended
December 31,

 

Three Months Ended
December 31,

 

(in millions, except as noted)

 

2014

 

2013
As Restated

 

2013
As Reported

 

Revenues

 

$

518

 

$

544

 

$

544

 

Foreign currency adjustment (a)

 

37

 

(1

)

6

 

Total rental revenue

 

$

555

 

$

543

 

$

550

 

Transaction days (in thousands)

 

10,734

 

10,473

 

10,473

 

Total RPD (in whole dollars)

 

$

51.70

 

$

51.85

 

$

52.49

 

 

 

 

 

 

 

 

 

Transaction days (in thousands)

 

10,734

 

10,473

 

 

 

Average Fleet

 

156,700

 

155,700

 

 

 

Number of days in period

 

92

 

92

 

 

 

Average fleet multiplied by number of days in period

 

14,416

 

14,324

 

 

 

Fleet efficiency

 

74

%

73

%

 

 

 

 

 

 

 

 

 

 

Depreciation of revenue earning equipment and lease charges, net (in millions)

 

$

112

 

$

119

 

 

 

Foreign currency adjustment (in millions) (a) 

 

8

 

—

 

 

 

Adjusted depreciation of revenue earning equipment and lease charges, net (in millions)

 

$

120

 

$

119

 

 

 

Average fleet

 

156,700

 

155,700

 

 

 

Adjusted depreciation of revenue earning equipment and lease charges, net divided by average fleet

 

$

766

 

$

764

 

 

 

Number of months in period

 

3

 

3

 

 

 

Net depreciation per unit per month

 

$

255

 

$

255

 

 

 

 

(a)        Amounts shown for 2014 and 2013 As Restated are based on December 31, 2013 foreign exchange rates.  Amounts shown for 2013 As Reported are based on December 31, 2012 foreign exchange rates.

 

8


 

FINANCIAL INFORMATION AND OPERATING DATA

 

SELECTED UNAUDITED CONSOLIDATED INCOME STATEMENT DATA

 

 

 

Twelve Months Ended
December 31,

 

Twelve Months
Ended December
31,

 

(In millions, except per share data)

 

2014

 

2013
As Restated

 

2013
As Revised

 

Total revenues

 

$

11,046

 

$

10,775

 

$

10,772

 

Expenses:

 

 

 

 

 

 

 

Direct operating

 

6,314

 

5,777

 

5,752

 

Depreciation of revenue earning equipment and lease charges

 

3,034

 

2,533

 

2,526

 

Selling, general and administrative

 

1,088

 

1,053

 

1,022

 

Interest expense, net

 

648

 

707

 

704

 

Other income, net

 

(15

)

102

 

105

 

Total expenses

 

11,069

 

10,172

 

10,109

 

Income (loss) before income taxes

 

(23

)

603

 

663

 

(Provision) benefit for taxes on income (loss)

 

(59

)

(301

)

(317

)

Net income (loss)

 

$

(82

)

$

302

 

$

346

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

Basic

 

454

 

422

 

422

 

Diluted

 

454

 

464

 

464

 

Earnings per share:

 

 

 

 

 

 

 

Basic

 

$

(0.18

)

$

0.72

 

$

0.82

 

Diluted

 

$

(0.18

)

$

0.67

 

$

0.76

 

 

 

 

 

 

 

 

 

Interest expense — Fleet

 

$

279

 

$

314

 

$

312

 

Interest expense, net — Corporate

 

369

 

393

 

392

 

Corporate EBITDA (a)

 

1,331

 

2,001

 

2,044

 

Adjusted pre-tax Income (loss) (a)

 

403

 

1,096

 

1,154

 

 

(a)        Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule II.

 

SELECTED UNAUDITED CONSOLIDATED BALANCE SHEET DATA

 

(In millions)

 

As of
December 31,
2014

 

As of
December 31,
2013
As Restated

 

As of
December 31,
2013
As Revised

 

Cash and cash equivalents

 

$

490

 

$

411

 

$

423

 

Restricted cash

 

571

 

861

 

860

 

Revenue earning equipment:

 

 

 

 

 

 

 

U.S. Car Rental

 

8,070

 

8,629

 

8,629

 

International Car Rental

 

1,904

 

2,047

 

2,047

 

Worldwide Equipment Rental

 

2,442

 

2,416

 

2,416

 

All Other Operations

 

1,237

 

1,099

 

1,101

 

Total revenue earning equipment, net

 

13,653

 

14,191

 

14,193

 

Total assets

 

23,985

 

24,423

 

24,588

 

Total debt

 

15,993

 

16,309

 

16,309

 

Net Fleet debt (a)

 

9,047

 

9,034

 

9,034

 

Net Corporate debt (a) (b)

 

5,885

 

6,003

 

5,992

 

Total equity

 

2,464

 

2,567

 

2,771

 

 

(a)        Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule V.

(b)        Fleet related to Hertz Equipment Rental Corporation is funded via Net Corporate Debt.

 

1


 

SELECTED UNAUDITED CONSOLIDATED CASH FLOW DATA

 

 

 

Twelve Months Ended
December 31,

 

Twelve Months
Ended December
31,

 

(In millions)

 

2014

 

2013
As Restated

 

2013
As Reported

 

 

 

 

 

 

 

 

 

Cash provided by (used in):

 

 

 

 

 

 

 

Operating activities

 

$

3,452

 

$

3,593

 

$

3,590

 

Investing activities

 

(3,183

)

(3,850

)

(3,839

)

Financing activities

 

(159

)

127

 

127

 

Effect of exchange rate changes

 

(31

)

—

 

—

 

Net change in cash and cash equivalents

 

$

79

 

$

(130

)

$

(122

)

 

 

 

 

 

 

 

 

Fleet growth (a)

 

$

104

 

$

(449

)

$

(455

)

Free cash flow (a)

 

$

321

 

$

446

 

$

449

 

 

(a)        Represents a non-GAAP measure, see the accompanying reconciliations included in the Supplemental Schedules III and IV.

 

SELECTED UNAUDITED OPERATING DATA BY SEGMENT

 

 

 

Twelve Months Ended December 31,

 

Twelve Months
Ended December
31,

 

 

 

2014

 

2013
As Restated

 

2013
As Reported

 

U.S. Car Rental

 

 

 

 

 

 

 

Transaction days (in thousands)

 

139,752

 

133,181

 

133,181

 

Total RPD (a)

 

$

46.07

 

$

46.94

 

$

47.00

 

Average fleet

 

499,100

 

490,000

 

490,000

 

Fleet efficiency(a)

 

77

%

78

%

NR

 

Net depreciation per unit per month(a)

 

$

294

 

$

218

 

NR

 

Program cars as a percentage of total average fleet at period end

 

21

%

9

%

NR

 

Adjusted pre-tax income (loss) (in millions) (a)

 

$

387

 

$

1,033

 

$

1,091

 

International Car Rental

 

 

 

 

 

 

 

Transaction days (in thousands)

 

46,917

 

45,019

 

45,019

 

Total RPD (a)(b)

 

$

52.86

 

$

53.31

 

$

53.81

 

Average Fleet

 

166,900

 

161,300

 

161,300

 

Fleet efficiency(a)

 

77

%

76

%

NR

 

Net depreciation per unit per month(a)

 

$

250

 

$

275

 

NR

 

Program cars as a percentage of total average fleet at period end

 

30

%

24

%

NR

 

Adjusted pre-tax income (loss) (in millions) (a)

 

$

144

 

$

134

 

$

141

 

Worldwide Equipment Rental

 

 

 

 

 

 

 

Dollar utilization(a)

 

36

%

37

%

NR

 

Time utilization(a)

 

64

%

65

%

NR

 

Rental and rental related revenue (in millions) (a)(b)

 

$

1,468

 

$

1,400

 

$

1,415

 

Same store revenue growth, including growth initiatives (b)

 

5

%

10

%

10

%

Adjusted pre-tax income (loss) (in millions) (a)

 

$

258

 

$

301

 

$

292

 

All Other Operations

 

 

 

 

 

 

 

Average fleet — Donlen

 

172,800

 

169,600

 

169,600

 

Adjusted pre-tax income (loss) (in millions) (a)

 

$

62

 

$

58

 

$

57

 

 

(a)        Represents a non-GAAP measure, see the accompanying reconciliations included in the Supplemental Schedules II and V.

(b)        Based on December 31, 2013 foreign exchange rates for the periods shown.

 

2


 

SUPPLEMENTAL SCHEDULES AND DEFINITIONS

 

The following Supplemental Schedules and definitions are provided to present segment results and reconciliations of non-GAAP measures to their most comparable GAAP measure. Following the Supplemental Schedules we provide definitions for terminology used throughout these schedules.

 

 

HERTZ GLOBAL HOLDINGS, INC.

Supplemental Schedule I

CONDENSED STATEMENT OF OPERATIONS BY SEGMENT

Unaudited

 

 

 

Twelve Months Ended December 31, 2014

 

Twelve Months Ended December 31, 2013
As Restated

 

Twelve Months
Ended December
31, 2013
As Reported

 

(In millions)

 

U.S. Car
Rental

 

Int’l Car
Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

U.S. Car
Rental

 

Int’l Car
Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

Consolidated
HGH

 

Total revenues:

 

$

6,471

 

$

2,436

 

$

1,571

 

$

568

 

$

—

 

$

11,046

 

$

6,331

 

$

2,378

 

$

1,539

 

$

527

 

$

—

 

$

10,775

 

$

10,772

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating

 

3,921

 

1,491

 

863

 

24

 

15

 

6,314

 

3,531

 

1,407

 

826

 

24

 

(11

)

5,777

 

5,752

 

Depreciation of revenue earning equipment and lease charges

 

1,758

 

492

 

329

 

455

 

—

 

3,034

 

1,281

 

528

 

299

 

425

 

—

 

2,533

 

2,526

 

Selling, general and administrative

 

380

 

259

 

161

 

30

 

258

 

1,088

 

429

 

267

 

131

 

27

 

199

 

1,053

 

1,022

 

Interest expense, net

 

172

 

95

 

53

 

12

 

316

 

648

 

187

 

113

 

46

 

14

 

347

 

707

 

704

 

Other (income) expense, net

 

(18

)

4

 

(5

)

1

 

3

 

(15

)

31

 

29

 

(4

)

1

 

45

 

102

 

105

 

Total expenses

 

6,213

 

2,341

 

1,401

 

522

 

592

 

11,069

 

5,459

 

2,344

 

1,298

 

491

 

580

 

10,172

 

10,109

 

Income (loss)before income taxes

 

$

258

 

$

95

 

$

170

 

$

46

 

$

(592

)

$

(23

)

$

872

 

$

34

 

$

241

 

$

36

 

$

(580

)

$

603

 

$

663

 

Provision for taxes on income

 

 

 

 

 

 

 

 

 

 

 

(59

)

 

 

 

 

 

 

 

 

 

 

(301

)

(317

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

$

(82

)

 

 

 

 

 

 

 

 

 

 

$

302

 

$

346

 

 

3

 


 

Supplemental Schedule II

HERTZ GLOBAL HOLDINGS, INC.

RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES

TO EBITDA, CORPORATE EBITDA AND ADJUSTED PRE-TAX INCOME BY SEGMENT

Unaudited

 

 

 

Twelve Months Ended December 31, 2014

 

Twelve Months Ended December 31, 2013
As Restated

 

Ended
December 31,
2013
As Reported

 

(In millions)

 

U.S. Car
Rental

 

Int’l Car
Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

U.S. Car
Rental

 

Int’l Car
Rental

 

Worldwide
Equipment
Rental

 

All Other
Operations

 

Corporate

 

Consolidated
HGH

 

Consolidated
HGH

 

Income (loss) before income taxes

 

$

258

 

$

95

 

$

170

 

$

46

 

$

(592

)

$

(23

)

$

872

 

$

34

 

$

241

 

$

36

 

$

(580

)

$

603

 

$

663

 

Depreciation and amortization

 

1,976

 

533

 

404

 

465

 

22

 

3,400

 

1,489

 

564

 

373

 

436

 

10

 

2,872

 

2,853

 

Interest, net of interest income

 

172

 

95

 

53

 

12

 

316

 

648

 

187

 

113

 

46

 

14

 

347

 

707

 

704

 

EBITDA

 

$

2,406

 

$

723

 

$

627

 

$

523

 

$

(254

)

$

4,025

 

$

2,548

 

$

711

 

$

660

 

$

486

 

$

(223

)

$

4,182

 

$

4,220

 

Car rental fleet depreciation

 

(1,758

)

(492

)

—

 

(455

)

—

 

(2,705

)

(1,281

)

(528

)

—

 

(425

)

—

 

(2,234

)

(2,227

)

Car rental fleet interest

 

(178

)

(85

)

—

 

(14

)

—

 

(277

)

(186

)

(102

)

—

 

(14

)

—

 

(302

)

(302

)

Car rental fleet debt - related charges (a)

 

10

 

15

 

—

 

6

 

—

 

31

 

13

 

14

 

—

 

6

 

(1

)

32

 

32

 

Non-cash stock-based employee compensation charges (b)

 

—

 

4

 

—

 

—

 

6

 

10

 

—

 

4

 

—

 

—

 

31

 

35

 

35

 

Restructuring and restructuring related charges (c)

 

55

 

25

 

7

 

—

 

78

 

165

 

26

 

35

 

10

 

—

 

28

 

99

 

99

 

Acquisition related costs and charges (d)

 

—

 

—

 

—

 

—

 

10

 

10

 

—

 

—

 

—

 

—

 

19

 

19

 

19

 

Integration expenses (d)

 

1

 

—

 

—

 

—

 

8

 

9

 

21

 

—

 

—

 

—

 

22

 

43

 

40

 

Equipment Rental spin-off costs (e)

 

—

 

—

 

28

 

—

 

11

 

39

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Relocation costs (f)

 

—

 

—

 

—

 

—

 

9

 

9

 

—

 

—

 

—

 

—

 

7

 

7

 

8

 

Premiums paid on debt (g)

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

29

 

—

 

—

 

—

 

29

 

29

 

Loss on extinguishment of debt (h)

 

—

 

—

 

—

 

—

 

1

 

1

 

—

 

—

 

—

 

—

 

35

 

35

 

—

 

Impairment charges and asset write-downs (i)

 

10

 

—

 

10

 

—

 

14

 

34

 

40

 

—

 

—

 

—

 

—

 

40

 

44

 

Other extraordinary, unusual or non-recurring items (j)

 

(21

)

(2

)

—

 

—

 

3

 

(20

)

(5

)

12

 

—

 

1

 

8

 

16

 

47

 

Corporate EBITDA

 

$

525

 

$

188

 

$

672

 

$

60

 

$

(114

)

$

1,331

 

$

1,176

 

$

175

 

$

670

 

$

54

 

$

(74

)

$

2,001

 

$

2,044

 

Non-fleet depreciation and amortization

 

(218

)

(41

)

(404

)

(10

)

(22

)

(695

)

(208

)

(36

)

(373

)

(11

)

(10

)

(638

)

(626

)

Non-fleet interest, net of interest income

 

6

 

(10

)

(53

)

2

 

(316

)

(371

)

(1

)

(11

)

(46

)

—

 

(347

)

(405

)

(402

)

Non-fleet debt - related charges (a)

 

2

 

—

 

5

 

—

 

15

 

22

 

1

 

—

 

5

 

—

 

30

 

36

 

36

 

Non-cash stock-based employee compensation charges

 

—

 

(4

)

—

 

—

 

(6

)

(10

)

—

 

(4

)

—

 

—

 

(31

)

(35

)

(35

)

Acquisition accounting (k)

 

72

 

11

 

38

 

10

 

1

 

132

 

65

 

10

 

40

 

15

 

2

 

132

 

132

 

Other (l)

 

—

 

—

 

—

 

—

 

(6

)

(6

)

—

 

—

 

5

 

—

 

—

 

5

 

5

 

Adjusted Pre-Tax Income (Loss)

 

$

387

 

$

144

 

$

258

 

$

62

 

$

(448

)

$

403

 

$

1,033

 

$

134

 

$

301

 

$

58

 

$

(430

)

$

1,096

 

$

1,154

 

 

(a)             Represents non-cash charges relating to the amortization of deferred debt financing costs and debt discounts.

(b)            For twelve months ended December 31, 2014, excludes $6 million of stock-based compensation forfeitures included in restructuring and restructuring related charges.

(c)             Represents expenses incurred under restructuring actions as defined by U.S. GAAP as well as transition costs incurred in connection with our 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.  Amount in 2014 also includes consulting costs and legal fees related to the accounting review and investigation, one-time costs to terminate certain marketing and co-branding arrangements, and costs associated with the separation of certain executives during the year.

(d)            Primarily represents Dollar Thrifty integration related expenses.

(e)             Represents expense associated with the anticipated HERC spin-off transaction of which $28 million were incurred by HERC and $11 million were incurred by Corporate in 2014.

(f)              Represents non-recurring costs incurred in connection with the relocation of our corporate headquarters to Estero, Florida that were not included in restructuring expenses.  Such expenses primarily include duplicate facility rent, certain moving expenses, and other costs that are direct and incremental due to the relocation.

(g)             In 2013, represents premiums paid to redeem our 8.50% Former European Fleet Notes.

(h)            In 2013, represents extinguishment of debt for Senior Convertible Notes.

(i)              For 2014, primarily comprised of impairments related to our former corporate headquarters building in New Jersey and HERC revenue earning equipment held for sale. Additionally, 2014 includes write-downs of assets associated with a terminated business relationship. In 2013, primarily related to a change in the carrying value of the vehicles subleased to FSNA and its former subsidiary, Simply Wheelz.

(j)              In 2014, primarily comprised of a $19 million litigation settlement received in relation to a class action lawsuit filed against an original equipment manufacturer.  In 2013, primarily represents cash premiums of $12 million associated with the conversion of the Senior Convertible Notes.

(k)            Represents the increase in amortization of other intangible assets, depreciation of property and equipment and accretion of revalued liabilities relating to acquisition accounting.

(l)              In 2014, represents $6 million of stock-based compensation foreitures included in restructuring and restructuring related charges.  In 2013, represents $5 million of depreciation expense related to HERC.

 

4


 

Supplemental Schedule III

HERTZ GLOBAL HOLDINGS, INC.

FREE CASH FLOW

Unaudited

 

 

 

Twelve Months Ended

 

Twelve
Months Ended

 

 

 

December 31,

 

December 31,

 

(In millions)

 

2014

 

2013
As Restated

 

2013
As Revised

 

Income before income taxes

 

$

(23

)

$

603

 

$

663

 

Depreciation and amortization, non-fleet assets

 

366

 

339

 

205

 

Amortization of debt discount and related charges

 

46

 

68

 

190

 

Cash paid for income taxes

 

(64

)

(71

)

(71

)

Changes in assets and liabilities, net of effects of acquisitions, and other

 

173

 

202

 

157

 

Net cash provided by operating activities excluding depreciation of revenue earning equipment

 

498

 

1,141

 

1,144

 

U.S. car rental fleet growth (a)

 

260

 

(500

)

(511

)

International car rental fleet growth (a)

 

(61

)

243

 

247

 

Equipment rental fleet growth (a)

 

(103

)

(235

)

(234

)

All other operations rental fleet growth (a)

 

8

 

43

 

43

 

Property and equipment expenditures, net of disposals

 

(281

)

(246

)

(241

)

Net investment activity

 

(177

)

(695

)

(696

)

Free cash flow

 

$

321

 

$

446

 

$

449

 

 

(a)         Historically, fleet growth has not been reported on a segment basis.

 

5


 

Supplemental Schedule IV

HERTZ GLOBAL HOLDINGS, INC.

FLEET GROWTH

Unaudited

 

 

 

Twelve Months Ended December 31, 2014

 

Twelve Months Ended December 31, 2013
As Restated

 

Twelve Months

Ended December

31, 2013
As Reported

 

(In millions)

 

U.S. Car

Rental

 

Int’l Car

Rental

 

Worldwide

Equipment

Rental

 

All Other

Operations

 

Consolidated

HGH

 

U.S. Car

Rental

 

Int’l Car

Rental

 

Worldwide

Equipment

Rental

 

All Other

Operations

 

Consolidated

HGH

 

Consolidated HGH

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue earning equipment expenditures

 

$

(5,965

)

$

(3,103

)

$

(615

)

$

(1,606

)

$

(11,289

)

$

(6,015

)

$

(2,593

)

$

(672

)

$

(1,009

)

$

(10,289

)

$

(10,298

)

Proceeds from disposal of revenue earning equipment

 

4,507

 

2,510

 

182

 

1,010

 

8,209

 

4,320

 

2,242

 

138

 

556

 

7,256

 

7,264

 

Net revenue earning equipment capital expenditures

 

(1,458

)

(593

)

(433

)

(596

)

(3,080

)

(1,695

)

(351

)

(534

)

(453

)

(3,033

)

(3,034

)

Depreciation of revenue earning equipment

 

1,758

 

412

 

330

 

455

 

2,955

 

1,279

 

447

 

299

 

425

 

2,450

 

2,445

 

Financing activity related to car rental fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

2,702

 

1,181

 

—

 

511

 

4,394

 

5,600

 

2,019

 

—

 

1,531

 

9,150

 

NR

 

Payments

 

(3,012

)

(1,051

)

—

 

(350

)

(4,413

)

(5,432

)

(1,884

)

—

 

(1,444

)

(8,760

)

NR

 

Restricted cash changes

 

270

 

(10

)

—

 

(12

)

248

 

(252

)

12

 

—

 

(16

)

(256

)

NR

 

Net financing activity related to car rental fleet

 

(40

)

120

 

—

 

149

 

229

 

(84

)

147

 

—

 

71

 

134

 

134

 

Fleet growth

 

$

260

 

$

(61

)

$

(103

)

$

8

 

$

104

 

$

(500

)

$

243

 

$

(235

)

$

43

 

$

(449

)

$

(455

)

 

6


 

Supplemental Schedule V

 

HERTZ GLOBAL HOLDINGS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES - DEBT, REVENUE, DEPRECIATION AND KEY METRICS

Unaudited

 

NET CORPORATE DEBT, NET FLEET DEBT AND TOTAL NET DEBT

 

 

 

 

 

 

 

 

 

As of December 31, 2013

 

As of December 31, 2013

 

 

 

As of December 31, 2014

 

As Restated

 

As Reported

 

(In millions)

 

Fleet

 

Corporate

 

Total

 

Fleet

 

Corporate

 

Total

 

Fleet

 

Corporate

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

9,562

 

$

6,431

 

$

15,993

 

$

9,806

 

$

6,503

 

$

16,309

 

$

9,806

 

$

6,503

 

$

16,309

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

—

 

490

 

490

 

—

 

411

 

411

 

—

 

423

 

423

 

Restricted cash

 

515

 

56

 

571

 

772

 

89

 

861

 

772

 

88

 

860

 

Net debt

 

$

9,047

 

$

5,885

 

$

14,932

 

$

9,034

 

$

6,003

 

$

15,037

 

$

9,034

 

$

5,992

 

$

15,026

 

 

WORLDWIDE EQUIPMENT RENTAL AND RENTAL RELATED REVENUE

 

 

 

Twelve Months
Ended December 31,

 

Twelve

Months

Ended

December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

 

2014

 

2013
As Restated

 

2013
As Reported

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment rental segment revenues

 

$

1,571

 

$

1,539

 

$

1,538

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment sales and other revenue

 

(115

)

(132

)

(132

)

 

 

 

 

 

 

 

 

 

 

 

 

Rental and rental related revenue at actual rates

 

1,456

 

1,407

 

1,406

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency adjustment (a)

 

12

 

(7

)

9

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental and rental related revenue

 

$

1,468

 

$

1,400

 

$

1,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)         Amounts shown for 2014 and 2013 As Restated are based on December 31, 2013 foreign exchange rates.  Amounts shown for 2013 As Reported are based on December 31, 2012 foreign exchange rates.

 

7


 

Supplemental Schedule V

 

HERTZ GLOBAL HOLDINGS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES - DEBT, REVENUE, DEPRECIATION AND KEY METRICS (CONTINUED)

Unaudited

 

TOTAL RPD, FLEET EFFICIENCY AND NET DEPRECIATION PER UNIT PER MONTH

 

U.S. Car Rental Segment

 

 

 

Twelve Months
Ended December 31,

 

Twelve

Months Ended

December 31,

 

(In millions, except as noted)

 

2014

 

2013
As Restated

 

2013
As Reported

 

Revenues

 

$

6,471

 

$

6,331

 

$

6,324

 

Advantage sublease revenue

 

—

 

(65

)

(65

)

Ancillary retail car sales revenue

 

(32

)

(14

)

—

 

Total rental revenue

 

$

6,439

 

$

6,252

 

$

6,259

 

Transaction days (in thousands)

 

139,752

 

133,181

 

133,181

 

Total RPD (in whole dollars)

 

$

46.07

 

$

46.94

 

$

47.00

 

 

 

 

 

 

 

 

 

Transaction days (in thousands)

 

139,752

 

133,181

 

 

 

Average Fleet

 

499,100

 

490,000

 

 

 

Advantage sublease vehicles

 

(4,000

)

(21,000

)

 

 

Hertz 24/7 vehicles

 

(1,000

)

(2,000

)

 

 

Average Fleet used to calculate fleet efficiency

 

494,100

 

467,000

 

 

 

Number of days in period

 

365

 

365

 

 

 

Average fleet multiplied by number of days in period (in thousands)

 

 

180,347

 

 

170,455

 

 

 

Fleet efficiency

 

77

%

78

%

 

 

 

 

 

 

 

 

 

 

Depreciation of revenue earning equipment and lease charges, net (in millions)

 

$

1,758

 

$

1,281

 

 

 

Average fleet

 

499,100

 

490,000

 

 

 

Adjusted depreciation of revenue earning equipment and lease charges, net divided by average fleet

 

$

3,522

 

$

2,614

 

 

 

Number of months in period

 

12

 

12

 

 

 

Net depreciation per unit per month

 

$

294

 

$

218

 

 

 

 

International Car Rental

 

 

 

Twelve Months Ended
December 31,

 

Twelve

Months Ended

December 31,

 

(in millions, except as noted)

 

2014

 

2013
As Restated

 

2013
As Reported

 

Revenues

 

$

2,436

 

$

2,378

 

$

2,383

 

Foreign currency adjustment (a)

 

44

 

22

 

40

 

Total rental revenue

 

$

2,480

 

$

2,400

 

$

2,423

 

Transaction days (in thousands)

 

46,917

 

45,019

 

45,019

 

Total RPD (in whole dollars)

 

$

52.86

 

$

53.31

 

$

53.81

 

 

 

 

 

 

 

 

 

Transaction days (in thousands)

 

46,917

 

45,019

 

 

 

Average Fleet

 

166,900

 

161,300

 

 

 

Number of days in period

 

365

 

365

 

 

 

Average fleet multiplied by number of days in period

 

60,919

 

58,875

 

 

 

Fleet efficiency

 

77

%

76

%

 

 

 

 

 

 

 

 

 

 

Depreciation of revenue earning equipment and lease charges, net (in millions)

 

$

492

 

$

528

 

 

 

Foreign currency adjustment (in millions) (a) 

 

9

 

4

 

 

 

Adjusted depreciation of revenue earning equipment and lease charges, net (in millions)

 

$

501

 

$

532

 

 

 

Average fleet

 

166,900

 

161,300

 

 

 

Adjusted depreciation of revenue earning equipment and lease charges, net divided by average fleet

 

$

3,002

 

$

3,298

 

 

 

Number of months in period

 

12

 

12

 

 

 

Net depreciation per unit per month

 

$

250

 

$

275

 

 

 

 

(a)         Amounts shown for 2014 and 2013 As Restated are based on December 31, 2013 foreign exchange rates.  Amounts shown for 2013 As Reported are based on December 31, 2012 foreign exchange rates.

 

8


 

NON-GAAP MEASURES - DEFINITIONS AND USE

 

Hertz Holdings is our top-level holding company. The Hertz Corporation (“Hertz”) is our 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 Hertz Holdings and Hertz believes that the presentation of the non-GAAP financial measures included in the Press Release provide useful information regarding Hertz Holdings’ and Hertz’s financial condition and results of operations and additional purposes, if any, for which management of Hertz Holdings and Hertz utilize the non-GAAP measures.

 

Adjusted Pre-Tax Income

 

Adjusted pre-tax income is calculated as income before income taxes plus certain non-cash acquisition accounting charges, debt-related charges relating to the amortization and write-off of debt financing costs and debt discounts and certain one-time charges and non-operational items. Adjusted pre-tax income is important to management because it allows management to assess operational performance of our 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 that 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.

 

Average Fleet

 

Average Fleet is determined using a simple average of the number of vehicles at the beginning and end of a given period.

 

Corporate Restricted Cash (used in the calculation of Net Corporate Debt)

 

Total restricted cash includes cash and cash equivalents that are not readily available for our normal disbursements. Total restricted cash and equivalents are restricted for the purchase of revenue earning vehicles and other specified uses under our Fleet Debt facilities, our like-kind exchange programs and to satisfy certain of our self-insurance regulatory reserve requirements. Corporate restricted cash is calculated as total restricted cash less restricted cash associated with fleet debt.

 

Dollar Utilization

 

Dollar utilization means revenue derived from the rental of equipment divided by the original cost of the equipment including additional capitalized refurbishment costs (with the basis of refurbished assets at the refurbishment date).

 

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Corporate EBITDA

 

EBITDA is defined as net income before net interest expense, income taxes and depreciation (which includes revenue earning equipment lease charges) and amortization. Corporate EBITDA, as presented herein, represents EBITDA as adjusted for car rental fleet interest, car rental fleet depreciation and certain other items, as described in more detail in the accompanying tables. Each of the measured presented herein reflects the financial results of Hertz Holdings.

 

Management uses EBITDA and Corporate EBITDA as operating performance and liquidity metrics for internal monitoring and planning purposes, including the preparation of our annual operating budget and monthly operating reviews, as well as to facilitate analysis of investment decisions, profitability and performance trends. Further, EBITDA enables management and investors to isolate the effects on profitability of operating metrics such as revenue, operating expenses and selling, general and administrative expenses, which enables management and investors to evaluate our business segments that are financed differently and have different depreciation characteristics and compare our performance against companies with different capital structures and depreciation policies. We also present Corporate EBITDA as a supplemental measure because such information is utilized in the calculation of financial covenants under Hertz’s senior credit facilities and in the determination of certain executive compensation.

 

EBITDA and Corporate EBITDA are not recognized measurements under GAAP. When evaluating our operating performance or liquidity, investors should not consider EBITDA and Corporate EBITDA in isolation of, or as a substitute for, measures of our financial performance and liquidity as determined in accordance with GAAP, such as net income, operating income or net cash provided by operating activities.

 

Equipment Rental and Rental Related Revenue

 

Equipment rental and rental related revenue consists of all revenue, net of discounts, associated with the rental of equipment including charges for delivery, loss damage waivers and fueling, but excluding revenue arising from the sale of equipment, parts and supplies and certain other ancillary revenue. Rental and rental related revenue is adjusted in all periods to eliminate the effect of fluctuations in foreign currency. Our management believes

 

1


 

eliminating the effect of fluctuations in foreign currency is appropriate so as not to affect the comparability of underlying trends. This statistic is important to our management and to investors as it reflects time and mileage and ancillary charges for equipment on rent and is comparable with the reporting of other industry participants.

 

Fleet Efficiency

 

Fleet efficiency is calculated by dividing total transaction days by the average fleet multiplied by the number of days in a period. Average fleet used to calculate fleet efficiency in our U.S. Car Rental segment excludes Advantage sublease and Hertz 24/7 vehicles as these vehicles do not have associated transaction days.

 

Free Cash Flow

 

Free cash flow is calculated as net cash provided by operating activities, excluding depreciation of revenue earning equipment, net of car rental and equipment rental fleet growth and property and equipment net expenditures.  Free cash flow is important to management and investors as it represents the cash available for acquisitions and the reduction of corporate debt.

 

Net Corporate Debt

 

Net corporate debt is calculated as total debt excluding fleet debt less cash and equivalents and corporate restricted cash. Corporate debt consists of our Senior Term Facility; Senior ABL Facility; Senior Notes; Promissory Notes; Convertible Senior Notes; and certain other indebtedness of our domestic and foreign subsidiaries.

 

Net Corporate Debt is important to management and investors as it helps measure our leverage. Net Corporate Debt also assists in the evaluation of our ability to service our non-fleet-related debt without reference to the expense associated with the fleet debt, which is collateralized by assets not available to lenders under the non-fleet debt facilities.

 

Net Depreciation Per Unit Per Month

 

Net depreciation per unit per month is calculated by dividing depreciation of revenue earning equipment and lease charges, net by the average fleet 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. Our management believes eliminating the effect of fluctuations in foreign currency is useful in analyzing underlying trends. Average fleet used to calculate net depreciation per unit per month in our U.S. Car Rental segment includes Advantage sublease and Hertz 24/7 vehicles as these vehicles have associated lease charges.

 

Restricted Cash Associated with Fleet Debt (used in the calculation of Net Fleet Debt and Corporate Restricted Cash)

 

Restricted cash associated with fleet debt is restricted for the purchase of revenue earning, vehicles and other specified uses under our Fleet Debt facilities and our car rental like-kind exchange program.

 

Same Store Revenue Growth/Decline

 

Same store revenue growth is calculated as the year over year change in revenue for locations that are open at the end of the period reported and have been operating under our direction for more than twelve months. The same-store revenue amounts are adjusted in all periods to eliminate the effect of fluctuations in foreign currency.

 

Our management believes eliminating the effect of fluctuations in foreign currency is appropriate so as not to affect the comparability of underlying trends.

 

Time Utilization

 

Time utilization means the percentage of time an equipment unit is on-rent during a given period.

 

Total Net Debt

 

Total net debt is calculated as total debt less total cash and cash equivalents and total restricted cash. This measure is important to management, investors and ratings agencies as it helps measure our gross leverage.

 

Total RPD

 

Total RPD is calculated as total revenue less revenue from fleet subleases and ancillary revenue associated with retail car sales, divided by the total number of transaction days, with all periods adjusted to eliminate the effect of fluctuations in foreign currency. Our management believes eliminating the effect of fluctuations in foreign currency is appropriate so as not to affect the comparability of underlying trends. This statistic is important to our management and investors as it represents the best measurement of the changes in underlying pricing in the car rental business and encompasses the elements in car rental pricing that management has the ability to control.

 

2


 

Transaction Days

 

Transaction days 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.

 

3

HERC HOLDINGS INC Reports