Exhibit 99.2
FINANCIAL INFORMATION AND OPERATING DATA
SELECTED UNAUDITED CONSOLIDATED INCOME STATEMENT DATA
|
| Three Months Ended |
| Three Months Ended |
| |||||||||||
(In millions, except per share data) |
| 2015 |
| 2014 |
| 2013 |
| 2013 |
| 2013 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
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 |
| |||||
(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.
SELECTED UNAUDITED CONSOLIDATED CASH FLOW DATA
|
| Three Months Ended |
| Three Months |
| Three Months |
| |||||||||
(In millions) |
| 2015 |
| 2014 |
| 2013 |
| 2013 |
| 2013 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
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 |
| ||||||||
|
| 2015 |
| 2014 |
| 2013 |
| 2013 |
| ||||
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.
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 |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| U.S. Car |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| ||||||||||||
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 |
| Three Months |
| Three Months |
| ||||||||||||||||||
(In millions) |
| U.S. Car |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| Consolidated |
| Consolidated |
| ||||||||
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 |
|
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 |
| All Other |
| Corporate |
| Consolidated |
| U.S. Car Rental |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| ||||||||||||
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 |
| Three Months |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||
(In millions) |
| U.S. Car Rental |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| Consolidated |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
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 |
|
|
|
|
|
|
|
|
|
|
|
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 |
| 2013 |
| 2013 |
| |||||
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.
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 |
| Three Months |
| ||||||||||||||||||||||||||||||||||||||||
(In millions) |
| U.S. Car Rental |
| Int’l Car Rental |
| Worldwide Equipment |
| All Other |
| Consolidated |
| U.S. Car Rental |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Consolidated |
| U.S. Car Rental |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Consolidated |
| Consolidated |
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
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 | ) |
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 |
| 2013 |
| ||||
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.
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 |
| |||
|
|
|
|
|
|
|
| |||
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 |
| |||
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 |
|
|
|
|
| |
(In millions, except as noted) |
| 2013 |
|
|
|
|
| |
|
|
|
|
|
|
|
| |
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.
FINANCIAL INFORMATION AND OPERATING DATA
SELECTED UNAUDITED CONSOLIDATED INCOME STATEMENT DATA
|
| Three Months Ended |
| Three Months Ended |
| ||||||||
(In millions, except per share data) |
| 2014 |
| 2013 |
| 2013 |
| 2013 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
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, |
| As of |
| As of |
|
|
| |||
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
SELECTED UNAUDITED CONSOLIDATED CASH FLOW DATA
|
| Six Months Ended June 30, |
| Six Months Ended June 30, |
| ||||||||
(In millions) |
| 2014 |
| 2013 |
| 2013 |
| 2013 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
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 |
|
|
| |||||
|
| 2014 |
| 2013 |
| 2013 |
|
|
| |||
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.
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 |
| Three Months Ended June 30, |
| ||||||||||||||||||||||||||||||||||||
(In millions) |
| U.S. Car |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| U.S. Car |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| 2013 |
| 2013 |
| ||||||||||||||
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 |
|
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 |
| Three Months |
| |||||||||||||||||||||||||||||||||
(In millions) |
| U.S. Car Rental |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| U.S. Car Rental |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| Consolidated |
| |||||||||||||
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 |
|
Supplemental Schedule III
HERTZ GLOBAL HOLDINGS, INC.
FREE CASH FLOW
Unaudited
|
| Six Months Ended |
| Six Months Ended |
| ||||||||
(In millions) |
| 2014 |
| 2013 |
| 2013 |
| 2013 |
| ||||
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.
| HERTZ GLOBAL HOLDINGS, INC. | Supplemental Schedule IV |
FLEET GROWTH
Unaudited
|
| Six Months Ended June 30, 2014 |
| Six Months Ended June 30, 2013 |
| Six Months |
| |||||||||||||||||||||||||||
(In millions) |
| U.S. Car |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Consolidated |
| U.S. Car |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Consolidated |
| Consolidated |
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
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 | ) |
| 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 |
| 2013 |
| |||
|
|
|
|
|
|
|
| |||
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.
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 |
| ||
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 |
| ||
|
|
|
|
|
| ||
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 |
| |
(In millions, except as noted) |
| 2013 |
| |
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.
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 |
| 2013 |
| 2013 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
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 |
| As of December 31, |
| As of December 31, |
| |||
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
SELECTED UNAUDITED CONSOLIDATED CASH FLOW DATA
|
| Nine Months Ended |
| Nine Months Ended |
| ||||||||
(In millions) |
| 2014 |
| 2013 |
| 2013 |
| 2013 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
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 |
| |||||
|
| 2014 |
| 2013 |
| 2013 |
| |||
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.
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 |
| Three Months |
| Three Months |
| ||||||||||||||||||||||||||||||||||
(In millions) |
| U.S. Car Rental |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| U.S. Car Rental |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| 2013 |
| 2013 |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
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 |
| Three Months Ended |
| |||||||||||||||||||||||||||||||||
(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 |
|
Supplemental Schedule III
HERTZ GLOBAL HOLDINGS, INC.
FREE CASH FLOW
Unaudited
|
| Nine Months Ended |
| Nine Months Ended |
| ||||||||
(In millions) |
| 2014 |
| 2013 |
| 2013 |
| 2013 |
| ||||
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.
Supplemental Schedule IV
HERTZ GLOBAL HOLDINGS, INC.
FLEET GROWTH
Unaudited
|
| Nine Months Ended September 30, 2014 |
| Nine Months Ended September 30, 2013 |
| Nine Months Ended September 30, 2013 |
| |||||||||||||||||||||||||||
(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 | ) |
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 |
| 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
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.
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 |
| 2013 |
| |||
|
|
|
|
|
|
|
| |||
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 |
| 2013 |
| |||
|
|
|
|
|
|
|
| |||
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.
FINANCIAL INFORMATION AND OPERATING DATA
SELECTED UNAUDITED CONSOLIDATED INCOME STATEMENT DATA
|
| Three Months Ended |
| Three Months Ended December 31, |
| ||||||||
(In millions, except per share data) |
| 2014 |
| 2013 |
| 2013 |
| 2013 |
| ||||
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 2014 |
| As of 2013 |
| As of 2013 |
| |||
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.
SELECTED UNAUDITED CONSOLIDATED CASH FLOW DATA
|
| Twelve Months Ended |
| Twelve Months Ended December 31, |
| |||||
(In millions) |
| 2014 |
| 2013 |
| 2013 |
| |||
|
|
|
|
|
|
|
| |||
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 |
| 2013 |
| |||
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.
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 |
| Three Months Ended December 31, |
| ||||||||||||||||||||||||||||||||||||
(In millions) |
| U.S. Car |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| U.S. Car |
| Int’l Car Rental |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| As Revised |
| As Reported |
| ||||||||||||||
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 | ) |
|
| 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 |
| Three Months |
| |||||||||||||||||||||||||||||||||
(In millions) |
| U.S. Car |
| Int’l Car |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| U.S. Car |
| Int’l Car |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| Consolidated |
| |||||||||||||
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 |
|
Supplemental Schedule III
HERTZ GLOBAL HOLDINGS, INC.
FREE CASH FLOW
Unaudited
|
| Twelve Months Ended |
| Twelve |
| |||||
|
| December 31, |
| December 31, |
| |||||
(In millions) |
| 2014 |
| 2013 |
| 2013 |
| |||
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.
Supplemental Schedule IV
HERTZ GLOBAL HOLDINGS, INC.
FLEET GROWTH
Unaudited
|
| Twelve Months Ended December 31, 2014 |
| Twelve Months Ended December 31, 2013 |
| Twelve Months |
| |||||||||||||||||||||||||||
(In millions) |
| U.S. Car |
| Int’l Car |
| Worldwide |
| All Other |
| Consolidated |
| U.S. Car |
| Int’l Car |
| Worldwide |
| All Other |
| Consolidated |
| 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 | ) |
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 |
| Three |
| |||||
(In millions) |
| 2014 |
| 2013 |
| 2013 |
| |||
|
|
|
|
|
|
|
| |||
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.
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 |
| Three Months Ended |
| |||||
(In millions, except as noted) |
| 2014 |
| 2013 |
| 2013 |
| |||
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 |
| Three Months Ended |
| |||||
(in millions, except as noted) |
| 2014 |
| 2013 |
| 2013 |
| |||
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.
FINANCIAL INFORMATION AND OPERATING DATA
SELECTED UNAUDITED CONSOLIDATED INCOME STATEMENT DATA
|
| Twelve Months Ended |
| Twelve Months |
| |||||
(In millions, except per share data) |
| 2014 |
| 2013 |
| 2013 |
| |||
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 |
| As of |
| As of |
| |||
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.
SELECTED UNAUDITED CONSOLIDATED CASH FLOW DATA
|
| Twelve Months Ended |
| Twelve Months |
| |||||
(In millions) |
| 2014 |
| 2013 |
| 2013 |
| |||
|
|
|
|
|
|
|
| |||
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 |
| |||||
|
| 2014 |
| 2013 |
| 2013 |
| |||
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.
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 |
| Twelve Months |
| |||||||||||||||||||||||||||||||||
(In millions) |
| U.S. Car |
| Int’l Car |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| U.S. Car |
| Int’l Car |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| Consolidated |
| |||||||||||||
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 |
|
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 |
| Ended |
| |||||||||||||||||||||||||||||||||
(In millions) |
| U.S. Car |
| Int’l Car |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| U.S. Car |
| Int’l Car |
| Worldwide |
| All Other |
| Corporate |
| Consolidated |
| Consolidated |
| |||||||||||||
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.
Supplemental Schedule III
HERTZ GLOBAL HOLDINGS, INC.
FREE CASH FLOW
Unaudited
|
| Twelve Months Ended |
| Twelve |
| |||||
|
| December 31, |
| December 31, |
| |||||
(In millions) |
| 2014 |
| 2013 |
| 2013 |
| |||
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.
Supplemental Schedule IV
HERTZ GLOBAL HOLDINGS, INC.
FLEET GROWTH
Unaudited
|
| Twelve Months Ended December 31, 2014 |
| Twelve Months Ended December 31, 2013 |
| Twelve Months Ended December 31, 2013 |
| |||||||||||||||||||||||||||
(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 | ) |
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 |
| Twelve Months Ended December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
(In millions) |
| 2014 |
| 2013 |
| 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
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.
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 |
| Twelve Months Ended December 31, |
| |||||
(In millions, except as noted) |
| 2014 |
| 2013 |
| 2013 |
| |||
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 |
| Twelve Months Ended December 31, |
| |||||
(in millions, except as noted) |
| 2014 |
| 2013 |
| 2013 |
| |||
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.
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
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.
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.