ESTERO, Fla., Nov. 9, 2015 /PRNewswire/ --
Consolidated(1)
|
Three Months
Ended
September 30,
|
|
Percent
Inc/(Dec)
|
|
($ in millions,
except per share data and where noted)
|
2015
|
|
2014
|
|
|
Total
Revenues
|
$
|
2,976
|
|
$
|
3,121
|
|
(5)%
|
|
Net income
(loss)
|
$
|
237
|
|
$
|
149
|
|
59%
|
|
Earnings (loss) per
diluted share
|
$
|
0.52
|
|
$
|
0.32
|
|
63%
|
|
Net income
margin
|
8%
|
|
5%
|
|
319
|
bps
|
|
|
|
|
|
|
|
Adjusted net income
(loss)
|
$
|
226
|
|
$
|
203
|
|
11%
|
|
Adjusted net income
(loss) per diluted share
|
$
|
0.49
|
|
$
|
0.44
|
|
11%
|
|
Adjusted net income
margin
|
8%
|
|
7%
|
|
109
|
bps
|
|
|
|
|
|
|
|
Adjusted Corporate
EBITDA
|
$
|
601
|
|
$
|
553
|
|
9%
|
|
Adjusted Corporate
EBITDA margin
|
20%
|
|
18%
|
|
247
|
bps
|
|
|
|
|
|
|
|
Worldwide Car Rental
average fleet
|
695,900
|
|
712,200
|
|
(2)%
|
|
Worldwide Car Rental
transaction days (in thousands)
|
52,760
|
|
52,596
|
|
—%
|
|
Worldwide Car Rental
Total RPD (in whole dollars)
|
$
|
46.82
|
|
$
|
47.27
|
|
(1)%
|
|
Worldwide Car Rental
Fleet Efficiency
|
82%
|
|
80%
|
|
191
|
bps
|
Worldwide Car Rental
revenue per available car day (in whole dollars)
|
$
|
38.58
|
|
$
|
38.05
|
|
1%
|
|
Worldwide Car Rental
net depreciation per unit per month (in whole dollars)
|
$
|
250
|
|
$
|
252
|
|
(1)%
|
|
|
|
|
|
|
|
|
Worldwide Equipment
Rental dollar utilization
|
36%
|
|
37%
|
|
N/A
|
|
Worldwide Equipment
Rental time utilization
|
66%
|
|
66%
|
|
N/A
|
|
Worldwide Equipment
Rental same store revenue growth
|
—%
|
|
6%
|
|
N/A
|
|
|
|
|
|
|
|
|
Average Fleet -
Donlen
|
160,500
|
|
169,700
|
|
(5)%
|
|
|
Note: Worldwide
Car Rental represents U.S. Car Rental and International Car Rental
segment information on a combined basis and excludes our Donlen
leasing operations.
|
Hertz Global Holdings, Inc. (NYSE: HTZ) ("Hertz Global" or the
"Company") today reported net income of $237
million, or $0.52 per diluted
share, for the third quarter 2015, compared with net income of
$149 million, or $0.32 per diluted share, for the same period last
year. The Company also reported that adjusted net income for the
third quarter 2015 was $226 million,
or $0.49 per diluted share, compared
with $203 million, or $0.44 per diluted share, for the same period last
year. Total revenues for the third quarter 2015 were $3.0 billion versus $3.1
billion for the same period last year. Adjusted
Corporate EBITDA for the third quarter of 2015 was $601 million versus $553
million in the third quarter of 2014.
Foreign currency exchange rates had an unfavorable impact
on Hertz Global's third quarter 2015 results versus the prior year
period. The company estimates that the unfavorable
year-over-year impact to total revenue was approximately
$144 million and that the unfavorable
year-over-year impact to adjusted diluted EPS was approximately
$24 million, or $0.03 per share.
"Our profit improvement in the third quarter is early evidence
of the potential we see in our performance improvement plan," said
John Tague, chief executive officer.
"Our fleet efficiency, which measures our ability to match capacity
with demand, rose to record levels. In addition, we successfully
completed the integration of the Dollar Thrifty operations during a
quarter in which we increased customer satisfaction across all of
our rental car brands around the world. I want to thank our
employees for helping to make this a successful quarter.
"Meanwhile, we remained on track to achieve our cost reduction
goals and made progress on strategic initiatives, including
preparations to separate HERC as a stand-alone company and
returning value to shareholders through the initial steps of our
share repurchase program."
Unrelated to its third quarter 2015 operating results, Hertz
Global today filed a restated Form 10-Q for its second quarter 2015
indicating an increase of $21 million
to pre-tax income and $13 million to
net income (loss) for the three and six months ended June 30, 2015. The restatement results from a
prior period error related to the depreciation of vehicles sold
through the company's retail car sales locations that impacted the
financial statements filed in its Form 10-Q for the second quarter
2015. As a result of this error, depreciation expense during the
three and six months ended June 30,
2015 was overstated by $21
million and $18 million,
respectively. In addition to the depreciation expense error, the
company corrected an error in direct operating expenses that
resulted in a $3 million
overstatement of direct operating expenses for the three and six
months ended June 30, 2015. The
correction of the errors described above increased diluted earnings
per share for the three months ended June
30, 2015, and decreased diluted loss per share for the six
months ended June 30, 2015, by
$0.03.
KEY HIGHLIGHTS FOR THE THIRD QUARTER 2015
- U.S. Car Rental fleet efficiency rose to 83%, an increase of
three percentage points from third quarter 2014 due to improvements
in out-of-service levels and higher rentable utilization.
- Hertz Global has successfully renewed its U.S. Car Rental
fleet, while maintaining fleet cost slightly below 2014 levels
through the first nine months of 2015. Through Sept. 30, 2015,
the company added approximately 335,000 2015 model-year vehicles to
its fleet, approximately 50% more than the comparable number of
2014 model-year vehicles through the same period in 2014. More new
vehicles contributed to lower out-of-service levels and fleet
maintenance costs for the third quarter.
- U.S. Car Rental operations sold approximately 228,000
non-program cars in the first nine months of 2015, compared to
123,000 in the first nine months of 2014. Vehicles sold through
alternative channels increased 68% in the third quarter versus
prior year with approximately 60% of all non-program vehicles sold
through these higher yielding channels.
- Customer satisfaction across all rental car brands worldwide
reached its highest third quarter level in five years, driven by
a more than 5 point improvement versus the prior year
period.
- During the quarter, Hertz Global successfully migrated Dollar
Thrifty operations to the company's common counter and financial
systems, completing integration of the Nov.
2012 acquisition of Dollar Thrifty Automotive Group,
Inc.
- As a result of a 2% improvement in fleet efficiency, worldwide
Revenue per Available Car Day (RACD) increased 1% despite a 1%
decrease in Total Revenue per Transaction Day (RPD).
- International Car Rental Total RPD increased 2%, excluding
foreign currency.
- U.S. Car Rental net depreciation per unit per month increased
1% year-over-year.
- International Car Rental net depreciation per unit per month
decreased 6%.
- Excluding effects of foreign currency, International Car Rental
revenues increased $22 million, or
3%, during the third quarter.
- Excluding foreign currency impact and the effect of lower sales
from stores in upstream oil and gas markets, HERC revenues in North
America increased 14% in the third quarter.
- Sale of Hertz Equipment Rental operations in France and Spain closed Oct.
30.
- Hertz Global received approximately $100
million in proceeds from the sale of a portion of its
holdings in CAR Inc. (China Auto Rental) during the third
quarter.
U.S. CAR RENTAL
TOTAL REVENUE PER AVAILABLE CAR DAY (RACD) INCREASED 1%
YEAR-OVER-YEAR
|
|
U.S. Car
Rental(1)
|
Three Months
Ended
September 30,
|
|
Percent
Inc/(Dec)
|
|
($ in millions,
except where noted)
|
2015
|
|
2014
|
|
|
Total
Revenues
|
$
|
1,739
|
|
|
$
|
1,768
|
|
|
(2)
|
%
|
|
Adjusted pre-tax
income (loss)
|
$
|
246
|
|
|
$
|
209
|
|
|
18
|
%
|
|
Adjusted pre-tax
income margin
|
14
|
%
|
|
12
|
%
|
|
233
|
|
bps
|
|
|
|
|
|
|
|
Adjusted Corporate
EBITDA
|
$
|
284
|
|
|
$
|
247
|
|
|
15
|
%
|
|
Adjusted Corporate
EBITDA margin
|
16
|
%
|
|
14
|
%
|
|
236
|
|
bps
|
|
|
|
|
|
|
|
Average
fleet
|
497,700
|
|
|
515,300
|
|
|
(3)
|
%
|
|
Transaction days (in
thousands)
|
37,946
|
|
|
37,901
|
|
|
—
|
%
|
|
Total RPD (in whole
dollars)
|
$
|
45.41
|
|
|
$
|
46.41
|
|
|
(2)
|
%
|
|
Revenue per available
car day (in whole dollars)
|
$
|
37.63
|
|
|
$
|
37.25
|
|
|
1
|
%
|
|
Net depreciation per
unit per month (in whole dollars)
|
$
|
267
|
|
|
$
|
265
|
|
|
1
|
%
|
|
Total U.S. Car Rental revenues were $1,739 million in
the third quarter of 2015, a decrease of 2% from the
third quarter of 2014 due to flat transaction days and a 2% decline
in Total Revenue per Transaction Day (RPD). As a result of a 3%
improvement in fleet efficiency, Revenue per Available Car Day
(RACD) increased 1% despite a 2% decline in Total RPD. Total RPD
declined year-over-year primarily due to a higher on-airport
competitive published-pricing environment and weaker commercial
demand year-over-year. Ancillary revenue per transaction day,
excluding fuel-related products, increased by 4% relative to the
third quarter of 2014.
U.S. Car Rental adjusted pre-tax income for the third quarter of
2015 was $246 million, an increase
of $37 million versus the prior year period. U.S.
Car Rental achieved an adjusted pre-tax margin of 14% for the
quarter, which was 233 basis points higher than the prior-year
period. Adjusted Corporate EBITDA for the U.S. Car Rental segment
for the third quarter of 2015 was $284
million versus $247 million in
the third quarter of 2014.
INTERNATIONAL CAR
RENTAL TOTAL RPD UP 2%, EXCLUDING FOREIGN CURRENCY; INCOME HIGHER
ON PROFITABLE REVENUE MIX
|
|
International Car
Rental(1)
|
Three Months
Ended
September 30,
|
|
Percent
Inc/(Dec)
|
|
($ in millions,
except where noted)
|
2015
|
|
2014
|
|
|
Total
Revenues
|
$
|
687
|
|
|
$
|
795
|
|
|
(14)
|
%
|
|
Adjusted pre-tax
income (loss)
|
$
|
151
|
|
|
$
|
136
|
|
|
11
|
%
|
|
Adjusted pre-tax
income margin
|
22
|
%
|
|
17
|
%
|
|
487
|
|
bps
|
|
|
|
|
|
|
|
Adjusted Corporate
EBITDA
|
$
|
162
|
|
|
$
|
147
|
|
|
10
|
%
|
|
Adjusted Corporate
EBITDA margin
|
24
|
%
|
|
18
|
%
|
|
509
|
|
bps
|
|
|
|
|
|
|
|
Average
fleet
|
198,200
|
|
|
196,900
|
|
|
1
|
%
|
|
Transaction days (in
thousands)
|
14,814
|
|
|
14,695
|
|
|
1
|
%
|
|
Total RPD (in whole
dollars)
|
$
|
50.43
|
|
|
$
|
49.47
|
|
|
2
|
%
|
|
Revenue per available
car day (in whole dollars)
|
$
|
40.97
|
|
|
$
|
40.13
|
|
|
2
|
%
|
|
Net depreciation per
unit per month (in whole dollars)
|
$
|
207
|
|
|
$
|
220
|
|
|
(6)
|
%
|
|
Total International Car Rental revenues were $687 million in the third quarter of 2015, a
decrease of 14% from the third quarter of 2014. Excluding foreign
currency impact of $130 million,
revenues increased $22 million, or
3%. Revenue growth was driven by a 1% increase in transaction days
resulting from improved business mix from U.S.-inbound rentals,
primarily in our European market. Total RPD for the segment
increased 2%, excluding currency effects.
International Car Rental adjusted pre-tax income for the third
quarter of 2015 was $151 million, an
increase of $15 million versus the prior year period.
Adjusted Corporate EBITDA for the International Car Rental segment
for the third quarter of 2015 was $162
million, an increase of 10% versus $147 million in the third quarter of 2014.
WORLDWIDE
EQUIPMENT RENTAL IMPACTED BY FOREIGN CURRENCY RATES AND
WEAKNESS IN STORES SERVING UPSTREAM OIL AND GAS
MARKETS
|
|
Worldwide
Equipment Rental(1)
|
Three Months
Ended
September 30,
|
|
Percent
Inc/(Dec)
|
|
($ in
millions)
|
2015
|
|
2014
|
|
|
Total
Revenues
|
$
|
401
|
|
|
$
|
413
|
|
|
(3)
|
%
|
|
Adjusted pre-tax
income (loss)
|
$
|
54
|
|
|
$
|
79
|
|
|
(32)
|
%
|
|
Adjusted pre-tax
income margin
|
13
|
%
|
|
19
|
%
|
|
(566)
|
|
bps
|
|
|
|
|
|
|
|
Adjusted Corporate
EBITDA
|
$
|
164
|
|
|
$
|
178
|
|
|
(8)
|
%
|
|
Adjusted Corporate
EBITDA margin
|
41
|
%
|
|
43
|
%
|
|
(220)
|
|
bps
|
|
|
|
|
|
|
|
|
Dollar
utilization
|
36
|
%
|
|
37
|
%
|
|
N/A
|
|
|
Time
utilization
|
66
|
%
|
|
66
|
%
|
|
N/A
|
|
|
Same store revenue
growth
|
—
|
%
|
|
6
|
%
|
|
N/A
|
|
|
|
N/A Not
applicable
|
Total Worldwide Equipment Rental revenues were $401 million for the third quarter of 2015, a
decrease of 3% compared with the prior-year period. Excluding
the impact of foreign currency, revenue increased $2 million, or 1%.
Worldwide revenues for the third quarter were favorably impacted
by a 3% increase in worldwide equipment rental volumes. The
increase in volume was driven by new account growth, which is
predominantly derived from small local contractors and specialty
segments as HERC diversifies its business. Pricing for the third
quarter was flat year-over-year.
Worldwide revenues were negatively affected by continuing weak
performance in stores serving upstream oil and gas markets during
the quarter. In North America, for example, revenue in these
upstream oil and gas markets year-over-year on a constant currency
basis decreased 26%, while non-oil and gas markets revenue
increased 14%. In response to the continued weakness in oil and gas
markets, HERC reduced its equipment fleet in this segment by 16% in
the third quarter year-over-year.
Worldwide Equipment Rental adjusted pre-tax income for the third
quarter of 2015 was $54 million, a
decrease from $79 million in the prior year
period. Adjusted Corporate EBITDA for the Worldwide Equipment
Rental segment for the third quarter of 2015 was $164 million versus $178
million in the third quarter of 2014.
TOTAL REVENUES AND
PRE-TAX NET INCOME HIGHER FOR ALL OTHER OPERATIONS
|
|
All Other
Operations(1)
|
Three Months
Ended
September 30,
|
|
Percent
Inc/(Dec)
|
|
($ in
millions)
|
2015
|
|
2014
|
|
|
Total
Revenues
|
$
|
149
|
|
|
$
|
145
|
|
|
3
|
%
|
|
Adjusted pre-tax
income (loss)
|
$
|
18
|
|
|
$
|
17
|
|
|
6
|
%
|
|
Adjusted pre-tax
income margin
|
12
|
%
|
|
12
|
%
|
|
36
|
|
bps
|
|
|
|
|
|
|
|
Adjusted Corporate
EBITDA
|
$
|
18
|
|
|
$
|
15
|
|
|
20
|
%
|
|
Adjusted Corporate
EBITDA margin
|
12
|
%
|
|
10
|
%
|
|
174
|
|
bps
|
|
|
|
|
|
|
|
Average Fleet -
Donlen
|
160,500
|
|
|
169,700
|
|
|
(5)
|
%
|
|
All Other Operations segment revenues were $149
million for the third quarter of 2015. All Other Operations
adjusted pre-tax income for the third quarter of 2015 was
$18 million, an increase of $1
million versus the prior year period. Adjusted Corporate
EBITDA for the All Other Operations segment for the third quarter
of 2015 was $18 million versus
$15 million in the prior-year
period.
HERTZ GLOBAL REPURCHASES $262
MILLION OF ITS AUTHORIZED $1
BILLION SHARE REPURCHASE PROGRAM IN THE QUARTER
Hertz Global began buying back HTZ shares in the third quarter
as part of its previously announced $1
billion share repurchase program. During the quarter,
the company repurchased 14.8 million shares at an average price of
$17.69 per share for a total of
$262 million. The company funded the
share repurchase through cash flow from operations and the sale of
a portion of its ownership position in CAR Inc. (China Auto Rental)
resulting in proceeds of approximately $100
million. The company will continue to
opportunistically buy back shares consistent with its previously
announced year-end 2016 leverage targets and will fund the share
repurchase through cash from operations and other actions,
including its recently completed sale of HERC's operations in
France and Spain to LOXAM Group.
HERTZ GLOBAL GUIDANCE
For the full year 2015, the Company forecasts the following:
|
Full Year 2015
Forecast
|
Adjusted Corporate
EBITDA - Consolidated HGH(2)
|
$1,450M
|
to
|
$1,550M
|
Adjusted Corporate
EBITDA - Worldwide Equipment Rental
segment(2)
|
$575M
|
to
|
$625M
|
U.S. RAC net
depreciation per unit per month
|
$270
|
to
|
$280
|
U.S. RAC fleet
capacity growth*
|
(1.0)%
|
to
|
0%
|
Net non-fleet
capex
|
$220M
|
to
|
$240M
|
* Excludes
Advantage sublease and Hertz 24/7 vehicles
|
|
|
|
|
|
For the full year 2015, the company has maintained its expected
adjusted corporate EBITDA guidance for Consolidated Hertz Global
Holdings and the Worldwide Equipment Rental segment. The company
has lowered U.S. RAC net depreciation per unit per month, U.S. RAC
fleet capacity growth and Net non-fleet capex guidance for the full
year.
RESULTS OF THE HERTZ CORPORATION
Hertz Global's operating subsidiary, The Hertz Corporation,
posted the same revenues and GAAP pre-tax income for the third
quarter of 2015 as the Company.
(1) Adjusted pre-tax income, adjusted pre-tax margin, Adjusted
Corporate EBITDA, Adjusted Corporate EBITDA margin, adjusted net
income, adjusted net income margin, adjusted diluted earnings per
share, total revenue per transaction day, revenue per available car
day and net depreciation per unit per month are non-GAAP
measures. See the accompanying Supplemental Schedules and
Definitions for the reconciliations and definitions for each of
these non-GAAP measures and the reason the Company's management
believes that these measures provide useful information to
investors.
(2) Because of the forward-looking nature of the Company's
Adjusted Corporate EBITDA forecast, specific quantifications of the
amounts that would be required to reconcile a pre-tax income
forecast are not available. The Company believes that there is
a degree of volatility with respect to certain of the Company's
GAAP measures, primarily related to fair value accounting for its
financial assets (which includes the Company's derivative financial
instruments), its income tax reporting and certain adjustments made
to arrive at the relevant non-GAAP measures, which preclude the
Company from providing accurate forecast of GAAP to non-GAAP
reconciliations. Based on the above, the Company believes that
providing estimates of the amounts that would be required to
reconcile the range of the non-GAAP Adjusted Corporate EBITDA would
imply a degree of precision that would be confusing or misleading
to investors for the reasons identified above.
EARNINGS WEBCAST INFORMATION
Hertz Global's third quarter 2015 earnings webcast will be held
on November 9, 2015, at 8:00 a.m. U.S. Eastern. The press release and
related supplemental schedules containing the reconciliations of
non-GAAP measures will be available on our website,
IR.Hertz.com.
SELECTED FINANCIAL AND OPERATING DATA, SUPPLEMENTAL SCHEDULES
AND DEFINITIONS
Following are tables that present selected financial and
operating data of Hertz Global. Also included are
Supplemental Schedules which are provided to present segment
results and reconciliations of non-GAAP measures to their most
comparable GAAP measure. Following the Supplemental Schedules the
Company provides definitions for terminology used throughout this
press release.
ABOUT HERTZ GLOBAL
Hertz Global operates the Hertz, Dollar, Thrifty and Firefly car
rental brands in more than 10,000 corporate and licensee locations
throughout approximately 150 countries in North America, Europe, Latin
America, Asia, Australia, Africa, the Middle
East and New Zealand. Hertz
Global is the largest worldwide airport general use car rental
company with more than 1,600 airport locations in the U.S. and more
than 1,400 airport locations internationally. Product and service
initiatives such as Hertz Gold Plus Rewards, NeverLost®,
Carfirmations, Mobile Wi-Fi and unique vehicles offered
through the Adrenaline, Dream, Green and Prestige Collections set
Hertz Global apart from the competition. Additionally, Hertz
Global owns the vehicle leasing and fleet management leader Donlen
Corporation, operates the Hertz 24/7 hourly car rental business in
international markets and sells vehicles through its Rent2Buy
program. The Company also owns Hertz Equipment Rental Corporation
("HERC"), one of the largest equipment rental businesses with more
than 350 locations worldwide offering a diverse line of equipment
and tools for rent and sale. HERC primarily serves the
construction, industrial, oil, gas, entertainment and government
sectors. For more information about Hertz Global, visit:
www.hertz.com.
CAUTIONARY NOTE CONCERNING FORWARD LOOKING STATEMENTS
Certain statements contained in this release, and in related
comments by the Company's management, include "forward-looking
statements." Forward-looking statements include information
concerning the Company's liquidity and its possible or assumed
future results of operations, including descriptions of its
business strategies. These statements often include words such as
"believe," "expect," "project," "potential," "anticipate,"
"intend," "plan," "estimate," "seek," "will," "may," "would,"
"should," "could," "forecasts" or similar expressions. These
statements are based on certain assumptions that the Company has
made in light of its experience in the industry as well as its
perceptions of historical trends, current conditions, expected
future developments and other factors it believes are appropriate
in these circumstances. The Company believes these judgments are
reasonable, but you should understand that these statements are not
guarantees of performance or results, and the Company's actual
results could differ materially from those expressed in the
forward-looking statements due to a variety of important factors,
both positive and negative, that may be revised or supplemented in
subsequent reports on Forms 10-K, 10-Q and 8-K. Among other items,
such factors could include: any claims, investigations or
proceedings arising as a result of the restatement of our
previously issued financial results; our ability to remediate the
material weaknesses in our internal controls over financial
reporting; levels of travel demand, particularly with respect to
airline passenger traffic in the United
States and in global markets; the effect of our proposed
separation of our equipment rental business and ability to obtain
the expected benefits of any related transaction; significant
changes in the competitive environment, including as a result of
industry consolidation, and the effect of competition in our
markets on rental volume and pricing, including on our pricing
policies or use of incentives; occurrences that disrupt rental
activity during our peak periods; our ability to achieve and
maintain cost savings and efficiencies and realize opportunities to
increase productivity and profitability; an increase in our fleet
costs as a result of an increase in the cost of new vehicles and/or
a decrease in the price at which we dispose of used vehicles either
in the used vehicle market or under repurchase or guaranteed
depreciation programs; our ability to accurately estimate future
levels of rental activity and adjust the size and mix of our fleet
accordingly; our ability to maintain sufficient liquidity and the
availability to us of additional or continued sources of financing
for our revenue earning equipment and to refinance our existing
indebtedness; our ability to integrate the car rental operations of
Dollar Thrifty and realize operational efficiencies from the
acquisition; our ability to maintain access to third-party
distribution channels, including current or favorable prices,
commission structures and transaction volumes; the operational and
profitability impact of the divestitures that we agreed to
undertake in order to secure regulatory approval for the
acquisition of Dollar Thrifty; an increase in our fleet costs or
disruption to our rental activity, particularly during our peak
periods, due to safety recalls by the manufacturers of our vehicles
and equipment; a major disruption in our communication or
centralized information networks; financial instability of the
manufacturers of our vehicles and equipment, which could impact
their ability to perform under agreements with us and/or their
willingness or ability to make cars available to us or the car
rental industry on commercially reasonable terms; any impact on us
from the actions of our franchisees, dealers and independent
contractors; our ability to maintain profitability during adverse
economic cycles and unfavorable external events (including war,
terrorist acts, natural disasters and epidemic disease); shortages
of fuel and increases or volatility in fuel costs; our ability to
successfully integrate acquisitions and complete dispositions; our
ability to maintain favorable brand recognition; costs and risks
associated with litigation and investigations; risks related to our
indebtedness, including our substantial amount of debt, our ability
to incur substantially more debt and increases in interest rates or
in our borrowing margins; our ability to meet the financial and
other covenants contained in our Senior Credit Facilities, our
outstanding unsecured Senior Notes and certain asset-backed and
asset-based arrangements; changes in accounting principles, or
their application or interpretation, and our ability to make
accurate estimates and the assumptions underlying the estimates,
which could have an effect on earnings; changes in the existing, or
the adoption of new laws, regulations, policies or other activities
of governments, agencies and similar organizations where such
actions may affect our operations, the cost thereof or applicable
tax rates; changes to our senior management team; the effect of
tangible and intangible asset impairment charges; our exposure to
uninsured claims in excess of historical levels; fluctuations in
interest rates and commodity prices; and our exposure to
fluctuations in foreign exchange rates.
Additional information concerning these and other factors can be
found in our filings with the Securities and Exchange Commission,
including our most recent Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K.
You should not place undue reliance on forward-looking
statements. All forward-looking statements attributable to the
Company or persons acting on its behalf are expressly qualified in
their entirety by the foregoing cautionary statements. All such
statements speak only as of the date made, and the Company
undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
FINANCIAL
INFORMATION AND OPERATING DATA
|
|
SELECTED UNAUDITED
CONSOLIDATED INCOME STATEMENT DATA
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
(In millions, except
per share data)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Total
revenues
|
$
|
2,976
|
|
|
$
|
3,121
|
|
|
$
|
8,122
|
|
|
$
|
8,487
|
|
Expenses:
|
|
|
|
|
|
|
|
Direct
operating
|
1,564
|
|
|
1,702
|
|
|
4,475
|
|
|
4,738
|
|
Depreciation of
revenue earning equipment and lease charges, net
|
717
|
|
|
746
|
|
|
2,102
|
|
|
2,180
|
|
Selling, general and
administrative
|
259
|
|
|
303
|
|
|
821
|
|
|
845
|
|
Interest expense,
net
|
158
|
|
|
164
|
|
|
467
|
|
|
484
|
|
Other (income)
expense, net
|
(29)
|
|
|
3
|
|
|
(34)
|
|
|
(21)
|
|
Total
expenses
|
2,669
|
|
|
2,918
|
|
|
7,831
|
|
|
8,226
|
|
Income (loss) before
income taxes
|
307
|
|
|
203
|
|
|
291
|
|
|
261
|
|
(Provision) benefit
for taxes on income (loss)
|
(70)
|
|
|
(54)
|
|
|
(88)
|
|
|
(109)
|
|
Net income
(loss)
|
$
|
237
|
|
|
$
|
149
|
|
|
$
|
203
|
|
|
$
|
152
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
454
|
|
|
459
|
|
|
457
|
|
|
453
|
|
Diluted
|
457
|
|
|
464
|
|
|
460
|
|
|
465
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.52
|
|
|
$
|
0.32
|
|
|
$
|
0.44
|
|
|
$
|
0.34
|
|
Diluted
|
$
|
0.52
|
|
|
$
|
0.32
|
|
|
$
|
0.44
|
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
Adjusted Corporate
EBITDA (a)
|
$
|
601
|
|
|
$
|
553
|
|
|
$
|
1,228
|
|
|
$
|
1,254
|
|
Adjusted pre-tax
Income (loss) (a)
|
359
|
|
|
322
|
|
|
537
|
|
|
562
|
|
|
(a)
Represents a non-GAAP measure, see the accompanying reconciliations
included in Supplemental Schedule III.
|
SELECTED UNAUDITED
CONSOLIDATED BALANCE SHEET DATA
|
|
(In
millions)
|
September 30,
2015
|
|
December 31,
2014
|
Cash and cash
equivalents
|
$
|
509
|
|
|
$
|
490
|
|
Restricted
cash
|
280
|
|
|
571
|
|
Revenue earning
equipment:
|
|
|
|
U.S. Car
Rental
|
8,324
|
|
|
8,070
|
|
International Car
Rental
|
2,542
|
|
|
1,904
|
|
Worldwide Equipment
Rental
|
2,476
|
|
|
2,442
|
|
All Other
Operations
|
1,284
|
|
|
1,237
|
|
Total revenue earning
equipment, net
|
14,626
|
|
|
13,653
|
|
Total
assets
|
24,569
|
|
|
23,985
|
|
Total debt
|
16,609
|
|
|
15,993
|
|
Net Fleet debt
(a)
|
10,068
|
|
|
9,047
|
|
Net Corporate debt
(a) (b)
|
5,752
|
|
|
5,885
|
|
Total
equity
|
2,338
|
|
|
2,464
|
|
|
(a)
Represents a non-GAAP measure, see the accompanying reconciliations
included in Supplemental Schedule VI.
|
|
(b) Fleet
related to Hertz Equipment Rental Corporation is funded via Net
Corporate Debt.
|
SELECTED UNAUDITED
CONSOLIDATED CASH FLOW DATA
|
|
|
Nine Months
Ended
September 30,
|
(In
millions)
|
2015
|
|
2014
|
Cash provided by
(used in):
|
|
|
|
Operating
activities
|
$
|
2,683
|
|
|
$
|
2,729
|
|
Investing
activities
|
(3,114)
|
|
|
(3,283)
|
|
Financing
activities
|
471
|
|
|
790
|
|
Effect of exchange
rate changes
|
(21)
|
|
|
(18)
|
|
Net change in cash
and cash equivalents
|
$
|
19
|
|
|
$
|
218
|
|
|
|
|
|
Fleet growth
(a)
|
$
|
(41)
|
|
|
$
|
(381)
|
|
Free cash flow
(a)
|
414
|
|
|
78
|
|
|
|
|
|
|
|
(a) Represents a
non-GAAP measure, see the accompanying reconciliations included in
Supplemental Schedules IV and V.
|
SELECTED UNAUDITED
OPERATING DATA BY SEGMENT
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
U.S. Car
Rental
|
|
|
|
|
|
|
|
Transaction days (in
thousands)
|
37,946
|
|
|
37,901
|
|
|
104,960
|
|
|
106,111
|
|
Total RPD
(a)
|
$
|
45.41
|
|
|
$
|
46.41
|
|
|
$
|
46.04
|
|
|
$
|
46.80
|
|
Revenue per available
car day (in whole dollars)
|
$
|
37.63
|
|
|
$
|
37.25
|
|
|
$
|
35.43
|
|
|
$
|
36.62
|
|
Average
fleet
|
497,700
|
|
|
515,300
|
|
|
499,600
|
|
|
503,300
|
|
Fleet
efficiency(a)
|
83
|
%
|
|
80
|
%
|
|
77
|
%
|
|
78
|
%
|
Net depreciation per
unit per month(a)
|
$
|
267
|
|
|
$
|
265
|
|
|
$
|
267
|
|
|
$
|
270
|
|
Program cars as a
percentage of total average fleet at period end
|
28
|
%
|
|
15
|
%
|
|
28
|
%
|
|
15
|
%
|
Adjusted pre-tax
income (loss)(in millions) (a)
|
$
|
246
|
|
|
$
|
209
|
|
|
$
|
509
|
|
|
$
|
515
|
|
International Car
Rental
|
|
|
|
|
|
|
|
Transaction days (in
thousands)
|
14,814
|
|
|
14,695
|
|
|
37,112
|
|
|
36,186
|
|
Total RPD
(a)(b)
|
$
|
50.43
|
|
|
$
|
49.47
|
|
|
$
|
48.53
|
|
|
$
|
48.03
|
|
Revenue per available
car day (in whole dollars)(b)
|
$
|
40.97
|
|
|
$
|
40.13
|
|
|
$
|
38.38
|
|
|
$
|
37.38
|
|
Average
Fleet
|
198,200
|
|
|
196,900
|
|
|
171,900
|
|
|
170,300
|
|
Fleet
efficiency(a)
|
81
|
%
|
|
81
|
%
|
|
79
|
%
|
|
78
|
%
|
Net depreciation per
unit per month(a)(b)
|
$
|
207
|
|
|
$
|
220
|
|
|
$
|
214
|
|
|
$
|
224
|
|
Program cars as a
percentage of total average fleet at period end
|
44
|
%
|
|
40
|
%
|
|
44
|
%
|
|
40
|
%
|
Adjusted pre-tax
income (loss)(in millions) (a)
|
$
|
151
|
|
|
$
|
136
|
|
|
$
|
203
|
|
|
$
|
154
|
|
Worldwide
Equipment Rental
|
|
|
|
|
|
|
|
Dollar
utilization
|
36
|
%
|
|
37
|
%
|
|
35
|
%
|
|
36
|
%
|
Time
utilization
|
66
|
%
|
|
66
|
%
|
|
63
|
%
|
|
64
|
%
|
Rental and rental
related revenue (in millions) (a)(b)
|
$
|
380
|
|
|
$
|
374
|
|
|
$
|
1,069
|
|
|
$
|
1,049
|
|
Same store revenue
growth, including growth initiatives (b)
|
—
|
%
|
|
6
|
%
|
|
—
|
%
|
|
6
|
%
|
Adjusted pre-tax
income (loss) (in millions) (a)
|
$
|
54
|
|
|
$
|
79
|
|
|
$
|
130
|
|
|
$
|
197
|
|
All Other
Operations
|
|
|
|
|
|
|
|
Average fleet —
Donlen
|
160,500
|
|
|
169,700
|
|
|
164,900
|
|
|
174,800
|
|
Adjusted pre-tax
income (loss) (in millions) (a)
|
$
|
18
|
|
|
$
|
17
|
|
|
$
|
52
|
|
|
$
|
47
|
|
|
(a) Represents a
non-GAAP measure, see the accompanying reconciliations included in
Supplemental Schedules III and VI.
|
|
(b) Based on December
31, 2014 foreign exchange rates.
|
Supplemental
Schedule I
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
CONDENSED
STATEMENT OF OPERATIONS BY SEGMENT
|
Unaudited
|
|
|
Three Months Ended
September 30, 2015
|
|
Three Months Ended
September 30, 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:
|
$
|
1,739
|
|
|
$
|
687
|
|
|
$
|
401
|
|
|
$
|
149
|
|
|
$
|
—
|
|
|
$
|
2,976
|
|
|
$
|
1,768
|
|
|
$
|
795
|
|
|
$
|
413
|
|
|
$
|
145
|
|
|
$
|
—
|
|
|
$
|
3,121
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
988
|
|
|
351
|
|
|
221
|
|
|
6
|
|
|
(2)
|
|
|
1,564
|
|
|
1,041
|
|
|
427
|
|
|
221
|
|
|
6
|
|
|
7
|
|
|
1,702
|
|
Depreciation of
revenue earning equipment and lease charges, net
|
399
|
|
|
114
|
|
|
86
|
|
|
118
|
|
|
—
|
|
|
717
|
|
|
409
|
|
|
143
|
|
|
78
|
|
|
116
|
|
|
—
|
|
|
746
|
|
Selling, general and
administrative
|
92
|
|
|
57
|
|
|
44
|
|
|
8
|
|
|
58
|
|
|
259
|
|
|
116
|
|
|
68
|
|
|
47
|
|
|
7
|
|
|
65
|
|
|
303
|
|
Interest expense,
net
|
43
|
|
|
20
|
|
|
14
|
|
|
3
|
|
|
78
|
|
|
158
|
|
|
44
|
|
|
27
|
|
|
12
|
|
|
3
|
|
|
78
|
|
|
164
|
|
Other (income)
expense, net
|
5
|
|
|
24
|
|
|
(1)
|
|
|
—
|
|
|
(57)
|
|
|
(29)
|
|
|
(2)
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
6
|
|
|
3
|
|
Total
expenses
|
1,527
|
|
|
566
|
|
|
364
|
|
|
135
|
|
|
77
|
|
|
2,669
|
|
|
1,608
|
|
|
665
|
|
|
357
|
|
|
132
|
|
|
156
|
|
|
2,918
|
|
Income (loss)before
income taxes
|
$
|
212
|
|
|
$
|
121
|
|
|
$
|
37
|
|
|
$
|
14
|
|
|
$
|
(77)
|
|
|
307
|
|
|
$
|
160
|
|
|
$
|
130
|
|
|
$
|
56
|
|
|
$
|
13
|
|
|
$
|
(156)
|
|
|
203
|
|
(Provision) benefit
for taxes on income (loss)
|
|
|
|
|
|
|
|
|
|
|
(70)
|
|
|
|
|
|
|
|
|
|
|
|
|
(54)
|
|
Net income
(loss)
|
|
|
|
|
|
|
|
|
|
|
$
|
237
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
149
|
|
Supplemental
Schedule I (continued)
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
CONDENSED
STATEMENT OF OPERATIONS BY SEGMENT
|
Unaudited
|
|
|
Nine Months Ended
September 30, 2015
|
|
Nine Months Ended
September 30, 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:
|
$
|
4,873
|
|
|
$
|
1,679
|
|
|
$
|
1,131
|
|
|
$
|
439
|
|
|
$
|
—
|
|
|
$
|
8,122
|
|
|
$
|
4,989
|
|
|
$
|
1,918
|
|
|
$
|
1,155
|
|
|
$
|
425
|
|
|
$
|
—
|
|
|
$
|
8,487
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
2,856
|
|
|
950
|
|
|
643
|
|
|
17
|
|
|
9
|
|
|
4,475
|
|
|
2,939
|
|
|
1,150
|
|
|
631
|
|
|
18
|
|
|
—
|
|
|
4,738
|
|
Depreciation of
revenue earning equipment and lease charges, net
|
1,200
|
|
|
310
|
|
|
243
|
|
|
349
|
|
|
—
|
|
|
2,102
|
|
|
1,224
|
|
|
381
|
|
|
235
|
|
|
340
|
|
|
—
|
|
|
2,180
|
|
Selling, general and
administrative
|
289
|
|
|
182
|
|
|
136
|
|
|
23
|
|
|
191
|
|
|
821
|
|
|
310
|
|
|
195
|
|
|
114
|
|
|
23
|
|
|
203
|
|
|
845
|
|
Interest expense,
net
|
124
|
|
|
54
|
|
|
44
|
|
|
8
|
|
|
237
|
|
|
467
|
|
|
125
|
|
|
73
|
|
|
38
|
|
|
10
|
|
|
238
|
|
|
484
|
|
Other (income)
expense, net
|
5
|
|
|
24
|
|
|
(4)
|
|
|
—
|
|
|
(59)
|
|
|
(34)
|
|
|
(31)
|
|
|
2
|
|
|
(3)
|
|
|
—
|
|
|
11
|
|
|
(21)
|
|
Total
expenses
|
4,474
|
|
|
1,520
|
|
|
1,062
|
|
|
397
|
|
|
378
|
|
|
7,831
|
|
|
4,567
|
|
|
1,801
|
|
|
1,015
|
|
|
391
|
|
|
452
|
|
|
8,226
|
|
Income (loss) before
income taxes
|
$
|
399
|
|
|
$
|
159
|
|
|
$
|
69
|
|
|
$
|
42
|
|
|
$
|
(378)
|
|
|
291
|
|
|
$
|
422
|
|
|
$
|
117
|
|
|
$
|
140
|
|
|
$
|
34
|
|
|
$
|
(452)
|
|
|
261
|
|
(Provision) benefit
for taxes on income (loss)
|
|
|
|
|
|
|
|
|
|
|
(88)
|
|
|
|
|
|
|
|
|
|
|
|
|
(109)
|
|
Net income
(loss)
|
|
|
|
|
|
|
|
|
|
|
$
|
203
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
152
|
|
Supplemental
Schedule II
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
RECONCILIATION OF
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
TO ADJUSTED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
Unaudited
|
|
|
Three Months Ended
September 30, 2015
|
|
Three Months Ended
September 30, 2014
|
|
(In millions, except
per share data)
|
GAAP
|
|
Adjustments
|
|
Adjusted
(Non-GAAP)
|
|
GAAP
|
|
Adjustments
|
|
Adjusted
(Non-GAAP)
|
|
Total
revenues
|
$
|
2,976
|
|
|
$
|
—
|
|
|
$
|
2,976
|
|
|
$
|
3,121
|
|
|
$
|
—
|
|
|
$
|
3,121
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
1,564
|
|
|
(34)
|
|
(a)
|
1,530
|
|
|
1,702
|
|
|
(61)
|
|
(a)
|
1,641
|
|
|
Depreciation of
revenue earning equipment and lease charges, net
|
717
|
|
|
—
|
|
|
717
|
|
|
746
|
|
|
—
|
|
|
746
|
|
|
Selling, general and
administrative
|
259
|
|
|
(24)
|
|
(c)
|
235
|
|
|
303
|
|
|
(43)
|
|
(c)
|
260
|
|
|
Interest expense,
net
|
158
|
|
|
(15)
|
|
(d)
|
143
|
|
|
164
|
|
|
(13)
|
|
(d)
|
151
|
|
|
Other (income)
expense, net
|
(29)
|
|
|
21
|
|
(e)
|
(8)
|
|
|
3
|
|
|
(2)
|
|
(e)
|
1
|
|
|
Total
expenses
|
2,669
|
|
|
(52)
|
|
|
2,617
|
|
|
2,918
|
|
|
(119)
|
|
|
2,799
|
|
|
Income (loss) before
income taxes
|
307
|
|
|
52
|
|
|
359
|
|
|
203
|
|
|
119
|
|
|
322
|
|
|
(Provision) benefit
for taxes on income (loss)
|
(70)
|
|
|
(63)
|
|
(f)
|
(133)
|
|
(f)
|
(54)
|
|
|
(65)
|
|
(f)
|
(119)
|
|
(f)
|
Net income
(loss)
|
$
|
237
|
|
|
$
|
(11)
|
|
|
$
|
226
|
|
|
$
|
149
|
|
|
$
|
54
|
|
|
$
|
203
|
|
|
Weighted average
number of diluted shares outstanding
|
457
|
|
|
457
|
|
|
457
|
|
|
464
|
|
|
464
|
|
|
464
|
|
|
Diluted earnings
(loss) per share
|
$
|
0.52
|
|
|
$
|
(0.02)
|
|
|
$
|
0.49
|
|
|
$
|
0.32
|
|
|
$
|
0.12
|
|
|
$
|
0.44
|
|
|
|
|
|
Nine Months Ended
September 30, 2015
|
|
Nine Months Ended
September 30, 2014
|
|
(In millions, except
per share data)
|
GAAP
|
|
Adjustments
|
|
Adjusted
(Non-GAAP)
|
|
GAAP
|
|
Adjustments
|
|
Adjusted
(Non-GAAP)
|
|
Total
revenues
|
$
|
8,122
|
|
|
$
|
—
|
|
|
$
|
8,122
|
|
|
$
|
8,487
|
|
|
$
|
—
|
|
|
$
|
8,487
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
4,475
|
|
|
(117)
|
|
(a)
|
4,358
|
|
|
4,738
|
|
|
(165)
|
|
(a)
|
4,573
|
|
|
Depreciation of
revenue earning equipment and lease charges, net
|
2,102
|
|
|
—
|
|
|
2,102
|
|
|
2,180
|
|
|
(2)
|
|
(b)
|
2,178
|
|
|
Selling, general and
administrative
|
821
|
|
|
(106)
|
|
(c)
|
715
|
|
|
845
|
|
|
(116)
|
|
(c)
|
729
|
|
|
Interest expense,
net
|
467
|
|
|
(47)
|
|
(d)
|
420
|
|
|
484
|
|
|
(39)
|
|
(d)
|
445
|
|
|
Other (income)
expense, net
|
(34)
|
|
|
24
|
|
(e)
|
(10)
|
|
|
(21)
|
|
|
21
|
|
(e)
|
—
|
|
|
Total
expenses
|
7,831
|
|
|
(246)
|
|
|
7,585
|
|
|
8,226
|
|
|
(301)
|
|
|
7,925
|
|
|
Income (loss) before
income taxes
|
291
|
|
|
246
|
|
|
537
|
|
|
261
|
|
|
301
|
|
|
562
|
|
|
(Provision) benefit
for taxes on income (loss)
|
(88)
|
|
|
(111)
|
|
(f)
|
(199)
|
|
(f)
|
(109)
|
|
|
(99)
|
|
(f)
|
(208)
|
|
(f)
|
Net income
(loss)
|
$
|
203
|
|
|
$
|
135
|
|
|
$
|
338
|
|
|
$
|
152
|
|
|
$
|
202
|
|
|
$
|
354
|
|
|
Weighted average
number of diluted shares outstanding
|
460
|
|
|
460
|
|
|
460
|
|
|
465
|
|
|
465
|
|
|
465
|
|
|
Diluted earnings
(loss) per share
|
$
|
0.44
|
|
|
$
|
0.29
|
|
|
$
|
0.73
|
|
|
$
|
0.33
|
|
(g)
|
$
|
0.43
|
|
|
$
|
0.76
|
|
(g)
|
|
|
|
a.
|
Represents the
increase in amortization of other intangible assets, depreciation
of property and equipment and accretion of certain revalued
liabilities relating to purchase accounting. Also includes
restructuring and restructuring related charges, impairments and
asset write-downs.
|
|
|
b.
|
In 2014, represents
the increase in depreciation of equipment rental revenue earning
equipment based upon its revaluation relating to purchase
accounting.
|
|
|
c.
|
In 2014 and 2015,
primarily comprised of restructuring and restructuring related
charges and impairment charges, expenses associated with the
anticipated HERC spin-off transaction announced in March 2014,
consulting costs and legal fees related to the accounting review
and investigation, expenses associated with acquisitions,
integration charges and relocation expenses associated with the
Company's relocation of its headquarters to Estero, Florida. In
2015, also includes costs associated with the separation of certain
executives.
|
|
|
d.
|
Represents
debt-related charges relating to the amortization of deferred debt
financing costs and debt discounts.
|
|
|
e.
|
Includes
miscellaneous non-recurring or non-cash items. For 2015, primarily
represents the gain on the sale of common stock of CAR Inc, offset
by a legal reserve in the International Rental Car segment. For
2014, primarily represents a litigation settlement received in
relation to a class action lawsuit filed against an original
equipment manufacturer stemming from recalls of their vehicles in
previous years.
|
|
|
f.
|
Represents a
(provision) benefit for income taxes derived utilizing a combined
statutory rate of 37% for all periods shown. The combined statutory
rate is applied to the adjusted income (loss) before income taxes
to arrive at the adjusted (provision) benefit for taxes. The
(provision) benefit for taxes related to the adjustments is
calculated as the difference between the adjusted (provision)
benefit for taxes and the GAAP (provision) benefit for taxes.
Previously, we applied the combined statutory rate to our
adjustments. Management believes the current approach results
in a better indicator of our core earnings.
|
|
|
g.
|
GAAP net income
(loss) and adjusted net income (loss) used in GAAP diluted earnings
per share and adjusted diluted earnings per share calculations,
respectively, includes interest income on convertible senior notes,
net of tax of $1 million for the nine months ended September 30,
2014.
|
Supplemental
Schedule III
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
RECONCILIATION OF
INCOME (LOSS) BEFORE INCOME TAXES
|
TO GROSS EBITDA,
CORPORATE EBITDA, ADJUSTED CORPORATE EBITDA AND ADJUSTED PRE-TAX
INCOME (LOSS) BY SEGMENT
|
Unaudited
|
|
|
Three Months Ended
September 30, 2015
|
|
Three Months Ended September 30,
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
|
$
|
212
|
|
|
$
|
121
|
|
|
$
|
37
|
|
|
$
|
14
|
|
|
$
|
(77)
|
|
|
$
|
307
|
|
|
$
|
160
|
|
|
$
|
130
|
|
|
$
|
56
|
|
|
$
|
13
|
|
|
$
|
(156)
|
|
|
$
|
203
|
|
Depreciation and
amortization
|
458
|
|
|
123
|
|
|
106
|
|
|
121
|
|
|
4
|
|
|
812
|
|
|
465
|
|
|
152
|
|
|
97
|
|
|
118
|
|
|
5
|
|
|
837
|
|
Interest, net of
interest income
|
43
|
|
|
20
|
|
|
14
|
|
|
3
|
|
|
78
|
|
|
158
|
|
|
44
|
|
|
27
|
|
|
12
|
|
|
3
|
|
|
78
|
|
|
164
|
|
Gross
EBITDA
|
$
|
713
|
|
|
$
|
264
|
|
|
$
|
157
|
|
|
$
|
138
|
|
|
$
|
5
|
|
|
$
|
1,277
|
|
|
$
|
669
|
|
|
$
|
309
|
|
|
$
|
165
|
|
|
$
|
134
|
|
|
$
|
(73)
|
|
|
$
|
1,204
|
|
Car rental fleet
depreciation and lease charges, net
|
(399)
|
|
|
(114)
|
|
|
—
|
|
|
(118)
|
|
|
—
|
|
|
(631)
|
|
|
(409)
|
|
|
(143)
|
|
|
—
|
|
|
(116)
|
|
|
—
|
|
|
(668)
|
|
Car rental fleet
interest
|
(46)
|
|
|
(16)
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
|
(65)
|
|
|
(45)
|
|
|
(23)
|
|
|
—
|
|
|
(4)
|
|
|
—
|
|
|
(72)
|
|
Car rental fleet debt
related charges (a)
|
8
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
10
|
|
|
3
|
|
|
4
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
8
|
|
Corporate
EBITDA
|
$
|
276
|
|
|
$
|
135
|
|
|
$
|
157
|
|
|
$
|
18
|
|
|
$
|
5
|
|
|
$
|
591
|
|
|
$
|
218
|
|
|
$
|
147
|
|
|
$
|
165
|
|
|
$
|
15
|
|
|
$
|
(73)
|
|
|
$
|
472
|
|
Non-cash stock-based
employee compensation charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
Restructuring and
restructuring related charges (b)
|
1
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
11
|
|
|
18
|
|
|
29
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
24
|
|
|
55
|
|
Acquisition related
costs and charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
Equipment
rental spin-off costs
(c)
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
2
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
2
|
|
|
14
|
|
Impairment charges
and write-downs (d)
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Integration expenses
(e)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
Relocation costs
(f)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
Other extraordinary,
unusual or non-recurring items(g)
|
1
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
(51)
|
|
|
(26)
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Adjusted Corporate
EBITDA
|
$
|
284
|
|
|
$
|
162
|
|
|
$
|
164
|
|
|
$
|
18
|
|
|
$
|
(27)
|
|
|
$
|
601
|
|
|
$
|
247
|
|
|
$
|
147
|
|
|
$
|
178
|
|
|
$
|
15
|
|
|
$
|
(34)
|
|
|
$
|
553
|
|
Non-fleet
depreciation and amortization(h)
|
(59)
|
|
|
(9)
|
|
|
(106)
|
|
|
(3)
|
|
|
(4)
|
|
|
(181)
|
|
|
(56)
|
|
|
(9)
|
|
|
(97)
|
|
|
(2)
|
|
|
(5)
|
|
|
(169)
|
|
Non-fleet interest,
net of interest income
|
3
|
|
|
(4)
|
|
|
(14)
|
|
|
—
|
|
|
(78)
|
|
|
(93)
|
|
|
1
|
|
|
(4)
|
|
|
(12)
|
|
|
1
|
|
|
(78)
|
|
|
(92)
|
|
Non-fleet debt
related charges
(a)
|
(1)
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
4
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
3
|
|
|
5
|
|
Non-cash stock-based
employee compensation charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5)
|
|
|
(5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7)
|
|
|
(7)
|
|
Acquisition
accounting (i)
|
19
|
|
|
2
|
|
|
9
|
|
|
2
|
|
|
—
|
|
|
32
|
|
|
17
|
|
|
2
|
|
|
9
|
|
|
2
|
|
|
2
|
|
|
32
|
|
Adjusted pre-tax
income (loss)
|
$
|
246
|
|
|
$
|
151
|
|
|
$
|
54
|
|
|
$
|
18
|
|
|
$
|
(110)
|
|
|
$
|
359
|
|
|
$
|
209
|
|
|
$
|
136
|
|
|
$
|
79
|
|
|
$
|
17
|
|
|
$
|
(119)
|
|
|
$
|
322
|
|
Supplemental
Schedule III (continued)
|
|
HERTZ GLOBAL
HOLDINGS, INCRECONCILIATION OF INCOME (LOSS) BEFORE INCOME
TAXES
|
TO GROSS EBITDA,
CORPORATE EBITDA, ADJUSTED CORPORATE EBITDA AND ADJUSTED PRE-TAX
INCOME (LOSS) BY SEGMENT
|
Unaudited
|
|
|
Nine Months Ended
September 30, 2015
|
|
Nine Months Ended
September 30, 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
|
$
|
399
|
|
|
$
|
159
|
|
|
$
|
69
|
|
|
$
|
42
|
|
|
$
|
(378)
|
|
|
$
|
291
|
|
|
$
|
422
|
|
|
$
|
117
|
|
|
$
|
140
|
|
|
$
|
34
|
|
|
$
|
(452)
|
|
|
$
|
261
|
|
Depreciation and
amortization
|
1,356
|
|
|
338
|
|
|
301
|
|
|
356
|
|
|
15
|
|
|
2,366
|
|
|
1,391
|
|
|
411
|
|
|
291
|
|
|
348
|
|
|
11
|
|
|
2,452
|
|
Interest, net of
interest income
|
124
|
|
|
54
|
|
|
44
|
|
|
8
|
|
|
237
|
|
|
467
|
|
|
125
|
|
|
73
|
|
|
38
|
|
|
10
|
|
|
238
|
|
|
484
|
|
Gross
EBITDA
|
$
|
1,879
|
|
|
$
|
551
|
|
|
$
|
414
|
|
|
$
|
406
|
|
|
$
|
(126)
|
|
|
$
|
3,124
|
|
|
$
|
1,938
|
|
|
$
|
601
|
|
|
$
|
469
|
|
|
$
|
392
|
|
|
$
|
(203)
|
|
|
$
|
3,197
|
|
Car rental fleet
depreciation and lease charges, net
|
(1,200)
|
|
|
(310)
|
|
|
—
|
|
|
(349)
|
|
|
—
|
|
|
(1,859)
|
|
|
(1,224)
|
|
|
(381)
|
|
|
—
|
|
|
(340)
|
|
|
—
|
|
|
(1,945)
|
|
Car rental fleet
interest
|
(131)
|
|
|
(48)
|
|
|
—
|
|
|
(10)
|
|
|
—
|
|
|
(189)
|
|
|
(129)
|
|
|
(65)
|
|
|
—
|
|
|
(11)
|
|
|
—
|
|
|
(205)
|
|
Car rental fleet
debt-related charges (a)
|
23
|
|
|
6
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
33
|
|
|
5
|
|
|
12
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
22
|
|
Corporate
EBITDA
|
$
|
571
|
|
|
$
|
199
|
|
|
$
|
414
|
|
|
$
|
51
|
|
|
$
|
(126)
|
|
|
$
|
1,109
|
|
|
$
|
590
|
|
|
$
|
167
|
|
|
$
|
469
|
|
|
$
|
46
|
|
|
$
|
(203)
|
|
|
$
|
1,069
|
|
Non-cash stock-based
employee compensation charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
20
|
|
Restructuring and
restructuring related charges (b)
|
19
|
|
|
10
|
|
|
10
|
|
|
—
|
|
|
48
|
|
|
87
|
|
|
44
|
|
|
21
|
|
|
7
|
|
|
—
|
|
|
54
|
|
|
126
|
|
Acquisition related
costs and charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
10
|
|
Equipment
rental spin-off costs
(c)
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
3
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
9
|
|
|
27
|
|
Impairment charges
and write-downs (d)
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
Integration expenses
(e)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
7
|
|
Relocation costs
(f)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
Other extraordinary,
unusual or non-recurring items (g)
|
(2)
|
|
|
24
|
|
|
(1)
|
|
|
—
|
|
|
(50)
|
|
|
(29)
|
|
|
(21)
|
|
|
(4)
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
(22)
|
|
Adjusted Corporate
EBITDA
|
$
|
603
|
|
|
$
|
233
|
|
|
$
|
443
|
|
|
$
|
51
|
|
|
$
|
(102)
|
|
|
$
|
1,228
|
|
|
$
|
624
|
|
|
$
|
184
|
|
|
$
|
494
|
|
|
$
|
46
|
|
|
$
|
(94)
|
|
|
$
|
1,254
|
|
Non-fleet
depreciation and amortization(h)
|
(156)
|
|
|
(28)
|
|
|
(301)
|
|
|
(7)
|
|
|
(15)
|
|
|
(507)
|
|
|
(167)
|
|
|
(30)
|
|
|
(291)
|
|
|
(8)
|
|
|
(11)
|
|
|
(507)
|
|
Non-fleet interest,
net of interest income
|
7
|
|
|
(6)
|
|
|
(44)
|
|
|
2
|
|
|
(237)
|
|
|
(278)
|
|
|
4
|
|
|
(8)
|
|
|
(38)
|
|
|
1
|
|
|
(238)
|
|
|
(279)
|
|
Non-fleet
debt-related charges (a)
|
—
|
|
|
(1)
|
|
|
4
|
|
|
—
|
|
|
11
|
|
|
14
|
|
|
1
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
11
|
|
|
16
|
|
Non-cash stock-based
employee compensation charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14)
|
|
|
(14)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20)
|
|
|
(20)
|
|
Acquisition
accounting (i)
|
55
|
|
|
5
|
|
|
28
|
|
|
6
|
|
|
—
|
|
|
94
|
|
|
53
|
|
|
8
|
|
|
28
|
|
|
8
|
|
|
1
|
|
|
98
|
|
Adjusted pre-tax
income (loss)
|
$
|
509
|
|
|
$
|
203
|
|
|
$
|
130
|
|
|
$
|
52
|
|
|
$
|
(357)
|
|
|
$
|
537
|
|
|
$
|
515
|
|
|
$
|
154
|
|
|
$
|
197
|
|
|
$
|
47
|
|
|
$
|
(351)
|
|
|
$
|
562
|
|
|
|
(a)
|
Represents non-cash
charges relating to the amortization of deferred debt financing
costs and debt discounts and premiums.
|
|
|
(b)
|
Represents expenses
incurred under restructuring actions as defined in U.S. GAAP. For
further information on restructuring costs, see Note 8,
"Restructuring." Also represents incremental costs incurred
directly supporting business transformation initiatives. Such costs
include transition costs incurred in connection with business
process outsourcing arrangements and incremental costs incurred to
facilitate business process re-engineering initiatives that involve
significant organization redesign and extensive operational process
changes, consulting costs and legal fees related to the accounting
review and investigation and costs associated with the separation
of certain executives.
|
|
|
(c)
|
Represents expense
associated with the anticipated HERC spin-off transaction announced
in March 2014.
|
|
|
(d)
|
In 2015, primarily
represents first quarter impairments of the former Dollar Thrifty
headquarters and a corporate asset and a third quarter impairment
of a building in the U.S. Car Rental segment. In 2014, primarily
represents a second quarter write-down of assets associated with a
terminated business relationship.
|
|
|
(e)
|
Primarily represents
Dollar Thrifty integration related expenses.
|
|
|
(f)
|
Represents
non-recurring costs incurred in connection with the relocation of
the Company's 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)
|
Includes
miscellaneous non-recurring or non-cash items. For 2015, primarily
represents the gain on the sale of common stock of CAR Inc, offset
by a legal reserve in the International Rental Car segment. For
2014, primarily represents a litigation settlement received in
relation to a class action lawsuit filed against an original
equipment manufacturer stemming from recalls of their vehicles in
previous years.
|
|
|
(h)
|
Amounts related to
the Worldwide Equipment Rental segment include depreciation of
revenue earning equipment.
|
|
|
(i)
|
Represents the
increase in amortization of other intangible assets, depreciation
of property and equipment and accretion of revalued liabilities
relating to purchase accounting.
|
Supplemental
Schedule IV
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
RECONCILIATION OF
GAAP TO NON-GAAP MEASURE - FLEET GROWTH
|
Unaudited
|
|
|
Nine Months Ended
September 30, 2015
|
|
Nine Months Ended
September 30, 2014
|
(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
|
Revenue earning
equipment expenditures
|
$
|
(5,966)
|
|
|
$
|
(2,499)
|
|
|
$
|
(532)
|
|
|
$
|
(1,013)
|
|
|
$
|
(10,010)
|
|
|
$
|
(4,128)
|
|
|
$
|
(2,694)
|
|
|
$
|
(470)
|
|
|
$
|
(1,150)
|
|
|
$
|
(8,442)
|
|
Proceeds from
disposal of revenue earning equipment
|
4,576
|
|
|
1,504
|
|
|
122
|
|
|
586
|
|
|
6,788
|
|
|
3,019
|
|
|
1,456
|
|
|
130
|
|
|
711
|
|
|
5,316
|
|
Net revenue earning
equipment capital expenditures
|
(1,390)
|
|
|
(995)
|
|
|
(410)
|
|
|
(427)
|
|
|
(3,222)
|
|
|
(1,109)
|
|
|
(1,238)
|
|
|
(340)
|
|
|
(439)
|
|
|
(3,126)
|
|
Depreciation of
revenue earning equipment, net
|
1,200
|
|
|
255
|
|
|
244
|
|
|
348
|
|
|
2,047
|
|
|
1,222
|
|
|
321
|
|
|
235
|
|
|
340
|
|
|
2,118
|
|
Financing activity
related to car rental fleet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
4,186
|
|
|
1,291
|
|
|
—
|
|
|
592
|
|
|
6,069
|
|
|
1,021
|
|
|
1,287
|
|
|
—
|
|
|
438
|
|
|
2,746
|
|
Payments
|
(3,824)
|
|
|
(850)
|
|
|
—
|
|
|
(549)
|
|
|
(5,223)
|
|
|
(1,085)
|
|
|
(745)
|
|
|
—
|
|
|
(350)
|
|
|
(2,180)
|
|
Restricted cash
changes
|
262
|
|
|
24
|
|
|
—
|
|
|
2
|
|
|
288
|
|
|
85
|
|
|
(26)
|
|
|
—
|
|
|
2
|
|
|
61
|
|
Net financing activity
related to car rental fleet
|
624
|
|
|
465
|
|
|
—
|
|
|
45
|
|
|
1,134
|
|
|
21
|
|
|
516
|
|
|
—
|
|
|
90
|
|
|
627
|
|
Fleet
growth
|
$
|
434
|
|
|
$
|
(275)
|
|
|
$
|
(166)
|
|
|
$
|
(34)
|
|
|
$
|
(41)
|
|
|
$
|
134
|
|
|
$
|
(401)
|
|
|
$
|
(105)
|
|
|
$
|
(9)
|
|
|
$
|
(381)
|
|
Supplemental
Schedule V
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
RECONCILIATION OF
GAAP TO NON-GAAP MEASURE - FREE CASH FLOW
|
Unaudited
|
|
|
Nine Months Ended
September 30,
|
(In
millions)
|
2015
|
|
2014
|
Income (loss) before
income taxes
|
$
|
291
|
|
|
$
|
261
|
|
Depreciation and
amortization, non-fleet, net
|
265
|
|
|
272
|
|
Amortization of debt
discount and related charges
|
43
|
|
|
35
|
|
Cash paid for income
taxes
|
(31)
|
|
|
(47)
|
|
Changes in assets and
liabilities, net of effects of acquisitions, and other
|
68
|
|
|
89
|
|
Net cash provided by
operating activities excluding depreciation of revenue earning
equipment
|
636
|
|
|
610
|
|
U.S. car rental fleet
growth
|
434
|
|
|
134
|
|
International car
rental fleet growth
|
(275)
|
|
|
(401)
|
|
Equipment rental
fleet growth
|
(166)
|
|
|
(105)
|
|
All other operations
rental fleet growth
|
(34)
|
|
|
(9)
|
|
Property and
equipment expenditures, net of disposals
|
(181)
|
|
|
(151)
|
|
Net investment
activity
|
(222)
|
|
|
(532)
|
|
Free cash
flow
|
$
|
414
|
|
|
$
|
78
|
|
Supplemental
Schedule VI
|
|
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 September
30, 2015
|
|
As of December 31,
2014
|
(In
millions)
|
Fleet........
|
|
Corporate
|
|
Total........
|
|
Fleet........
|
|
Corporate
|
|
Total........
|
Debt
|
$
|
10,291
|
|
|
$
|
6,318
|
|
|
$
|
16,609
|
|
|
$
|
9,562
|
|
|
$
|
6,431
|
|
|
$
|
15,993
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
—
|
|
|
509
|
|
|
509
|
|
|
—
|
|
|
490
|
|
|
490
|
|
Restricted
cash
|
223
|
|
|
57
|
|
|
280
|
|
|
515
|
|
|
56
|
|
|
571
|
|
Net debt
|
$
|
10,068
|
|
|
$
|
5,752
|
|
|
$
|
15,820
|
|
|
$
|
9,047
|
|
|
$
|
5,885
|
|
|
$
|
14,932
|
|
Supplemental
Schedule VI (continued)
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
RECONCILIATIONS OF
GAAP TO NON-GAAP MEASURES - DEBT, REVENUE,
|
DEPRECIATION AND
KEY METRICS
|
Unaudited
|
|
TOTAL RPD, FLEET
EFFICIENCY, REVENUE PER AVAILABLE CAR DAY AND NET DEPRECIATION PER
UNIT PER MONTH
|
|
U.S. Car Rental
Segment
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
($In millions, except
as noted)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Total
RPD
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,739
|
|
|
$
|
1,768
|
|
|
$
|
4,873
|
|
|
$
|
4,989
|
|
Ancillary retail car
sales revenue
|
$
|
(16)
|
|
|
$
|
(9)
|
|
|
$
|
(41)
|
|
|
$
|
(23)
|
|
Total rental
revenue
|
$
|
1,723
|
|
|
$
|
1,759
|
|
|
$
|
4,832
|
|
|
$
|
4,966
|
|
Transaction days (in
thousands)
|
37,946
|
|
|
37,901
|
|
|
104,960
|
|
|
106,111
|
|
Total RPD (in whole
dollars)
|
$
|
45.41
|
|
|
$
|
46.41
|
|
|
$
|
46.04
|
|
|
$
|
46.80
|
|
|
|
|
|
|
|
|
|
Fleet
Efficiency
|
|
|
|
|
|
|
|
Transaction days (in
thousands)
|
37,946
|
|
|
37,901
|
|
|
104,960
|
|
|
106,111
|
|
Average
Fleet
|
497,700
|
|
|
515,300
|
|
|
499,600
|
|
|
503,300
|
|
Advantage sublease
vehicles
|
—
|
|
|
(1,000)
|
|
|
—
|
|
|
(5,500)
|
|
Hertz 24/7
vehicles
|
—
|
|
|
(1,000)
|
|
|
—
|
|
|
(1,000)
|
|
Average Fleet used to
calculate fleet efficiency
|
497,700
|
|
|
513,300
|
|
|
499,600
|
|
|
496,800
|
|
Number of days in
period
|
92
|
|
|
92
|
|
|
273
|
|
|
273
|
|
Available car days
(in thousands)
|
45,788
|
|
|
47,224
|
|
|
136,391
|
|
|
135,626
|
|
Fleet efficiency
(a)
|
83
|
%
|
|
80
|
%
|
|
77
|
%
|
|
78
|
%
|
|
|
|
|
|
|
|
|
Revenue Per
Available Car Day
|
|
|
|
|
|
|
|
Total rental
revenue
|
$
|
1,723
|
|
|
$
|
1,759
|
|
|
$
|
4,832
|
|
|
$
|
4,966
|
|
Available car days
(in thousands)
|
45,788
|
|
|
47,224
|
|
|
136,391
|
|
|
135,626
|
|
Revenue per available
car day (in whole dollars)
|
$
|
37.63
|
|
|
$
|
37.25
|
|
|
$
|
35.43
|
|
|
$
|
36.62
|
|
|
|
|
|
|
|
|
|
Net Depreciation
Per Unit Per Month
|
|
|
|
|
|
|
|
Depreciation of
revenue earning equipment and lease charges, net
|
$
|
399
|
|
|
$
|
409
|
|
|
$
|
1,200
|
|
|
$
|
1,224
|
|
Average
fleet
|
497,700
|
|
|
515,300
|
|
|
499,600
|
|
|
503,300
|
|
Depreciation of
revenue earning equipment and lease charges, net divided by average
fleet (in whole dollars)
|
$
|
802
|
|
|
$
|
794
|
|
|
$
|
2,402
|
|
|
$
|
2,432
|
|
Number of months in
period
|
3
|
|
|
3
|
|
|
9
|
|
|
9
|
|
Net depreciation per
unit per month (in whole dollars)
|
$
|
267
|
|
|
$
|
265
|
|
|
$
|
267
|
|
|
$
|
270
|
|
|
(a)
Calculated as transaction days divided by available car
days.
|
Supplemental
Schedule VI (continued)
|
|
HERTZ GLOBAL
HOLDINGS, INC.
|
RECONCILIATIONS OF
GAAP TO NON-GAAP MEASURES - DEBT, REVENUE,
|
DEPRECIATION AND
KEY METRICS
|
Unaudited
|
|
TOTAL RPD, FLEET
EFFICIENCY, REVENUE PER AVAILABLE CAR DAY AND NET DEPRECIATION PER
UNIT PER MONTH (continued)
|
|
International Car
Rental
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
(in millions, except
as noted)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Total
RPD
|
|
|
|
|
|
|
|
Revenues
|
$
|
687
|
|
|
$
|
795
|
|
|
$
|
1,679
|
|
|
$
|
1,918
|
|
Foreign currency
adjustment (a)
|
60
|
|
|
(68)
|
|
|
122
|
|
|
(180)
|
|
Total rental
revenue
|
$
|
747
|
|
|
$
|
727
|
|
|
$
|
1,801
|
|
|
$
|
1,738
|
|
Transaction days (in
thousands)
|
14,814
|
|
|
14,695
|
|
|
37,112
|
|
|
36,186
|
|
Total RPD (in whole
dollars)
|
$
|
50.43
|
|
|
$
|
49.47
|
|
|
$
|
48.53
|
|
|
$
|
48.03
|
|
|
|
|
|
|
|
|
|
Fleet
Efficiency
|
|
|
|
|
|
|
|
Transaction days (in
thousands)
|
14,814
|
|
|
14,695
|
|
|
37,112
|
|
|
36,186
|
|
Average
Fleet
|
198,200
|
|
|
196,900
|
|
|
171,900
|
|
|
170,300
|
|
Number of days in
period
|
92
|
|
|
92
|
|
|
273
|
|
|
273
|
|
Available car days
(in thousands)
|
18,234
|
|
|
18,115
|
|
|
46,929
|
|
|
46,492
|
|
Fleet efficiency
(b)
|
81
|
%
|
|
81
|
%
|
|
79
|
%
|
|
78
|
%
|
|
|
|
|
|
|
|
|
Revenue Per
Available Car Day
|
|
|
|
|
|
|
|
Total rental
revenue
|
$
|
747
|
|
|
$
|
727
|
|
|
$
|
1,801
|
|
|
$
|
1,738
|
|
Available car days
(in thousands)
|
18,234
|
|
|
18,115
|
|
|
46,929
|
|
|
46,492
|
|
Revenue per available
car day (in whole dollars)
|
$
|
40.97
|
|
|
$
|
40.13
|
|
|
$
|
38.38
|
|
|
$
|
37.38
|
|
|
|
|
|
|
|
|
|
Net Depreciation
Per Unit Per Month
|
|
|
|
|
|
|
|
Depreciation of
revenue earning equipment and lease charges, net
|
$
|
114
|
|
|
$
|
143
|
|
|
$
|
310
|
|
|
$
|
381
|
|
Foreign currency
adjustment (a)
|
9
|
|
|
(13)
|
|
|
21
|
|
|
(37)
|
|
Adjusted depreciation
of revenue earning equipment and lease charges, net
|
$
|
123
|
|
|
$
|
130
|
|
|
$
|
331
|
|
|
$
|
344
|
|
Average
fleet
|
198,200
|
|
|
196,900
|
|
|
171,900
|
|
|
170,300
|
|
Adjusted depreciation
of revenue earning equipment and lease charges, net divided by
average fleet (in whole dollars)
|
$
|
621
|
|
|
$
|
660
|
|
|
$
|
1,926
|
|
|
$
|
2,020
|
|
Number of months in
period
|
3
|
|
|
3
|
|
|
9
|
|
|
$
|
9
|
|
Net depreciation per
unit per month (in whole dollars)
|
$
|
207
|
|
|
$
|
220
|
|
|
$
|
214
|
|
|
$
|
224
|
|
|
(a)
Based on December 31, 2014 foreign exchange rates.
|
(b)
Calculated as transaction days divided by available car
days.
|
TOTAL RPD, FLEET
EFFICIENCY, REVENUE PER AVAILABLE CAR DAY AND NET DEPRECIATION PER
UNIT PER MONTH (continued)
|
|
Worldwide Car
Rental
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
(in millions, except
as noted)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Total
RPD
|
|
|
|
|
|
|
|
Revenues
|
$
|
2,426
|
|
|
$
|
2,563
|
|
|
$
|
6,552
|
|
|
$
|
6,907
|
|
Ancillary retail car
sales revenue
|
(16)
|
|
|
(9)
|
|
|
(41)
|
|
|
(23)
|
|
Foreign currency
adjustment (a)
|
60
|
|
|
(68)
|
|
|
122
|
|
|
(180)
|
|
Total rental
revenue
|
$
|
2,470
|
|
|
$
|
2,486
|
|
|
$
|
6,633
|
|
|
$
|
6,704
|
|
Transaction days (in
thousands)
|
52,760
|
|
|
52,596
|
|
|
142,072
|
|
|
142,297
|
|
Total RPD (in whole
dollars)
|
$
|
46.82
|
|
|
$
|
47.27
|
|
|
$
|
46.69
|
|
|
$
|
47.11
|
|
|
|
|
|
|
|
|
|
Fleet
Efficiency
|
|
|
|
|
|
|
|
Transaction days (in
thousands)
|
52,760
|
|
|
52,596
|
|
|
142,072
|
|
|
142,297
|
|
Average
Fleet
|
695,900
|
|
|
712,200
|
|
|
671,500
|
|
|
673,600
|
|
Advantage sublease
vehicles
|
—
|
|
|
(1,000)
|
|
|
—
|
|
|
(5,500)
|
|
Hertz 24/7
vehicles
|
—
|
|
|
(1,000)
|
|
|
—
|
|
|
(1,000)
|
|
Average Fleet used to
calculate fleet efficiency
|
695,900
|
|
|
710,200
|
|
|
671,500
|
|
|
667,100
|
|
Number of days in
period
|
92
|
|
|
92
|
|
|
273
|
|
|
273
|
|
Available car days
(in thousands)
|
64,023
|
|
|
65,338
|
|
|
183,320
|
|
|
182,118
|
|
Fleet efficiency
(b)
|
82
|
%
|
|
80
|
%
|
|
77
|
%
|
|
78
|
%
|
|
|
|
|
|
|
|
|
Revenue Per
Available Car Day
|
|
|
|
|
|
|
|
Total rental
revenue
|
$
|
2,470
|
|
|
$
|
2,486
|
|
|
$
|
6,633
|
|
|
$
|
6,704
|
|
Available car days
(in thousands)
|
64,023
|
|
|
65,338
|
|
|
183,320
|
|
|
182,118
|
|
Revenue per available
car day (in whole dollars)
|
$
|
38.58
|
|
|
$
|
38.05
|
|
|
$
|
36.18
|
|
|
$
|
36.81
|
|
|
|
|
|
|
|
|
|
Net Depreciation
Per Unit Per Month
|
|
|
|
|
|
|
|
Depreciation of
revenue earning equipment and lease charges, net
|
$
|
513
|
|
|
$
|
552
|
|
|
$
|
1,510
|
|
|
$
|
1,605
|
|
Foreign currency
adjustment (a)
|
9
|
|
|
(13)
|
|
|
21
|
|
|
(37)
|
|
Adjusted depreciation
of revenue earning equipment and lease charges, net
|
$
|
522
|
|
|
$
|
539
|
|
|
$
|
1,531
|
|
|
$
|
1,568
|
|
Average
fleet
|
695,900
|
|
|
712,200
|
|
|
671,500
|
|
|
673,600
|
|
Adjusted depreciation
of revenue earning equipment and lease charges, net divided by
average fleet (in whole dollars)
|
$
|
750
|
|
|
$
|
757
|
|
|
$
|
2,280
|
|
|
$
|
2,328
|
|
Number of months in
period
|
3
|
|
|
3
|
|
|
9
|
|
|
$
|
9
|
|
Net depreciation per
unit per month (in whole dollars)
|
$
|
250
|
|
|
$
|
252
|
|
|
$
|
253
|
|
|
$
|
259
|
|
|
Note: Worldwide
Car Rental represents U.S. Car Rental and International Car Rental
segment information on a combined basis and excludes our Donlen
leasing operations.
|
|
|
(a)
Based on December 31, 2014 foreign exchange rates.
|
(b)
Calculated as transaction days divided by available car
days.
|
WORLDWIDE
EQUIPMENT RENTAL AND RENTAL RELATED REVENUE
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
(in
millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Worldwide equipment
rental segment revenues
|
$
|
401
|
|
|
$
|
413
|
|
|
$
|
1,131
|
|
|
$
|
1,155
|
|
Worldwide equipment
sales and other revenue
|
(28)
|
|
|
(33)
|
|
|
(79)
|
|
|
(87)
|
|
Rental and rental
related revenue at actual rates
|
373
|
|
|
380
|
|
|
1,052
|
|
|
1,068
|
|
Foreign currency
adjustment (a)
|
7
|
|
|
(6)
|
|
|
17
|
|
|
(19)
|
|
Rental and rental
related revenue
|
$
|
380
|
|
|
$
|
374
|
|
|
$
|
1,069
|
|
|
$
|
1,049
|
|
|
(a)
Based on December 31, 2014 foreign exchange rates.
|
NON-GAAP MEASURES AND KEY METRICS - DEFINITIONS AND
USE
Hertz Global is the top-level holding company and The Hertz
Corporation is Hertz Global's primary operating company (together,
the Company). The term "GAAP" refers to accounting principles
generally accepted in the United States
of America.
Definitions of non-GAAP measures are set forth below. Also set
forth below is a summary of the reasons why management of the
Company believes that the presentation of the non-GAAP financial
measures included in the Press Release provide useful information
regarding the Company's financial condition and results of
operations and additional purposes, if any, for which management of
the Company utilizes the non-GAAP measures.
Adjusted Pre-Tax Income (Loss) and Adjusted Pre-tax
Margin
Adjusted pre-tax income 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. Adjusted
pre-tax margin is adjusted pre-tax income divided by total
revenues.
Adjusted Net Income and Adjusted Net Income
Margin
Adjusted net income is calculated as adjusted pre-tax income
less a provision for income taxes derived utilizing a combined
statutory rate of 37%. The combined statutory rate is management's
estimate of our long-term tax rate. Adjusted net income is
important to management and investors because it represents our
operational performance exclusive of the effects of purchase
accounting, debt-related charges, one-time charges and items that
are not operational in nature or comparable to those of our
competitors. Adjusted net income margin is adjusted net income
divided by total revenues.
Adjusted Net Income Per Diluted Share
Adjusted net income per diluted share is calculated as adjusted
net income divided by the weighted average number of diluted shares
outstanding for the period. Adjusted net income per diluted
share is important to management and investors because it
represents a measure of our operational performance exclusive of
the effects of purchase accounting adjustments, debt-related
charges, one-time charges and items that are not operational in
nature or comparable to those of our competitors.
Available Car Days
Available Car Days is calculated as average fleet multiplied by
the number of days in a period. Average fleet used to calculate
available car days in our U.S. Car Rental segment excludes
Advantage sublease and Hertz 24/7 vehicles as these vehicles do not
have associated transaction days.
Average Fleet
Average Fleet is determined using a simple average of the number
of vehicles owned by the company at the beginning and end of a
given period. Among other things, average fleet is used to
calculate our fleet efficiency which represents the portion of the
Company's fleet that is being utilized to generate revenue.
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 ("Gross EBITDA"), Corporate EBITDA, Adjusted Corporate
EBITDA and Adjusted Corporate EBITDA Margin
Gross 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 Gross EBITDA as
adjusted for car rental fleet interest, car rental fleet
depreciation and car rental debt-related charges. Adjusted
Corporate EBITDA, as presented herein, represents Corporate EBITDA
as adjusted for certain other items, as described in more detail in
the accompanying schedules.
Management uses Gross EBITDA, Corporate EBITDA and Adjusted
Corporate EBITDA as operating performance 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, Gross 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 Adjusted Corporate EBITDA as a supplemental measure because
such information is utilized in the calculation of financial
covenants under the Company's senior credit facilities and in the
determination of certain executive compensation.
Adjusted Corporate EBITDA Margin is calculated as the ratio of
Adjusted Corporate EBITDA to total revenues and is used by the
Compensation Committee to determine certain executive compensation,
primarily in the form of PSUs.
Gross EBITDA, Corporate EBITDA, Adjusted Corporate EBITDA and
Adjusted Corporate EBITDA Margin are not recognized measurements
under U.S. GAAP. When evaluating our operating performance or
liquidity, investors should not consider Gross EBITDA, Corporate
EBITDA and Adjusted 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
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 available car days. 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.
Fleet Growth
U.S. and International car rental fleet growth is defined as car
rental fleet capital expenditures, net of proceeds from disposals,
plus car rental fleet depreciation and net car rental fleet
financing which includes borrowings, repayments and the change in
fleet restricted cash. Worldwide equipment rental fleet
growth is defined as worldwide equipment rental fleet expenditures,
net of proceeds from disposals, plus depreciation.
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. Net
depreciation per unit per month represents the amount of average
depreciation expense and lease charges, net per vehicle per
month.
Restricted Cash Associated with 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.
Revenue Per Available Car Day ("RACD")
Revenue per available car day is calculated as total revenues
less revenue from fleet subleases and ancillary revenue associated
with retail car sales divided by available car 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 metric is important to
our management and investors as it represents a 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 and provides a measure of revenue production
relative to overall capacity.
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 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 metric is important to our management and investors as
it represents a 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.
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. Late in the third quarter of 2015 the Company fully
integrated the Dollar Thrifty and Hertz counter systems and as a
result aligned the transaction day calculation in the Hertz system.
As a result of this alignment, Hertz determined that there
was an impact to the calculation. The impact to the third
quarter of 2015 is negligible, however Hertz expects that
transaction days for the US RAC segment will increase by
approximately 1% prospectively relative to the historic
calculation.
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SOURCE Hertz Global Holdings, Inc.