Hertz Global Holdings, Inc · NASDAQ:HTZ
Hertz Global — Q4 2019 Earnings Presentation
16 slides from Hertz Global's earnings presentation, Feb 25, 2020
Slide 1: Hertz Global Holdings 4Q 2019 Earnings Call
HERTZ GLOBAL HOLDINGS, INC. 4Q 2019 Earnings Call | February 25, 2020 | 8:30 am ET
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements made within this presentation contain forward-looking statements. Forward-looking statements are not guarantees of performance and by their nature are subject to inherent uncertainties. Actual results may differ materially. Any forward- looking informati
Slide 3: Non-GAAP Measures and Key Metrics
Non-GAAP Measures and Key Metrics The following non-GAAP measures1 and key metrics1 will be used in the presentation: ▪ Adjusted Corporate EBITDA ▪ Total RPD ▪ Adjusted Corporate EBITDA Margin ▪ Total RPU ▪ Adjusted Net Income (Loss) ▪ T&M Rate ▪ Adjusted Diluted EPS ▪ Depreciation Per Unit Per Mont
Slide 4: Agenda
Agenda BUSINESS FINANCIAL RESULTS OVERVIEW OVERVIEW Kathryn Marinello Jamere Jackson President & Chief Executive Officer Chief Financial Officer Hertz Global Holdings, Inc. Hertz Global Holdings, Inc. 4
Slide 5: 2019 Initiatives Delivered
2019 Initiatives Delivered Topline Growth Margin Expansion Long Term Growth Focus ▪ U.S. RAC revenue +7% ▪ 2019 Adj. Corp EBITDA +50% ▪ Brand segmentation ▪ Price and volume growth, all brands ▪ DOE/SG&A margin (100) bps ▪ Customer service excellence ▪ Ranked #1 by JD Power ▪ Disciplined fleet manag
Slide 6: Quarterly Overview
QUARTERLY OVERVIEW Jamere Jackson - Chief Financial Officer
Slide 7: 4Q:19 and FY:19 Consolidated Results
4Q:19 and FY:19 Consolidated Results $ in millions, except per share data 4Q:19 4Q:18 YoY FY:19 FY:18 YoY GAAP Results Results Better/(Worse) Results Results Better/(Worse) Total revenues $2,326 $2,294 1% $9,779 $9,504 3% Income (loss) before income taxes ($130) ($120) (8%) $13 ($257) NM Net loss at
Slide 8: 4Q:19 and FY:19 Operating Results Summary
4Q:19 and FY:19 Operating Results Summary $ in millions Total Revenues Adjusted Corporate EBITDA DOE/SG&A Expenses (Ex. Donlen Adjustments) +5% +11% +1% $2,241 $2,344 $54 $1,564 $1,587 $49 4Q:19 Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q4 2018 Q4 2019 Total Revenues Adjusted Corporate EBITDA DOE/SG&A Expense
Slide 9: 4Q:19 U.S. RAC
4Q:19 U.S. RAC U.S. RAC (YoY quarterly results) Performance Overview: Total Revenue Transaction Days ▪ Revenue up on both pricing and volume growth • All brands • Business and leisure • Airport and off-airport 4Q:18 1Q:19 2Q:19 3Q:19 4Q:19 4Q:18 1Q:19 2Q:19 3Q:19 4Q:19 • Value-added services Total R
Slide 10: 4Q:19 U.S. RAC Fleet
4Q:19 U.S. RAC Fleet U.S. RAC Fleet Fleet Management: Depreciation Per Unit Per Month YoY ▪ FY:19 unit depreciation (7%), 4Q:19 +11% • 4Q impacted by residuals on certain makes/models ▪ Maximizing depreciation outcomes through the cycles (15%) • Disciplined fleet acquisitions 4Q:18 1Q:19 2Q:19 3Q:19
Slide 11: 4Q:19 U.S. RAC Retail Vehicle Sales Initiative
4Q:19 U.S. RAC Retail Vehicle Sales Initiative U.S. RAC Vehicle Disposition Channel Top 10 Used-Vehicle Retailer Nationally1 4Q:19 Dispositions by Channel ▪ Retail unit sales vol. +11%, same-store unit sales +4% Dealer Direct Auction ▪ High-margin ancillary retail sales revenue +28% ▪ 87 Retail loca
Slide 12: 4Q:19 International RAC
4Q:19 International RAC International RAC (YoY quarterly results)1 Performance Overview: Revenue Transaction Days ▪ Revenue flat on a constant currency basis 4% 4% 2% • RPD +1%, Days (1%) • Improved pricing in APAC and Europe (1%) 0% 0% 0% 0% • Europe volume softness 4Q:18 1Q:19 2Q:19 3Q:19 4Q:19 4Q
Slide 13: Debt, Liquidity & Cash Flow Overview
DEBT, LIQUIDITY & CASH FLOW OVERVIEW Jamere Jackson - Chief Financial Officer
Slide 14: YE:19 Debt, Liquidity and Cash Flow
YE:19 Debt, Liquidity and Cash Flow Hertz Global Consolidated Overview: $ in millions Non-Vehicle Debt Maturity Profile1 ▪ Liquidity of $1.4B at December 31, 2019 ▪ November 2019 refinance of $900M of 2nd Lien Notes ▪ Net Corporate Leverage 4.5x vs. 7.7x at YE:18 ▪ FY:19 Adjusted Free Cash Flow refl
Slide 15: 2020 Outlook
2020 Outlook ▪ Revenue Expectations • U.S. – Industry grows low to mid single-digits • International – Industry remains flat to up slightly • Hertz tailwinds: ➢ Revenue management ➢ Marketing ➢ Customer service ➢ Growth initiatives…TNC and delivery rentals ▪ Depreciation – Residual values projected
Slide 16: Hertz gellar Theitly fH DONLEN -
—— Hertz gellar Theitly fH DONLEN - CAR RENTAL
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