Hertz Global Holdings, Inc · NASDAQ:HTZ
Hertz Global — Q4 2023 Earnings Presentation
21 slides from Hertz Global's earnings presentation, Feb 6, 2024
Slide 1: Hertz Global Holdings Inc. Q4 2023 Earnings Presentation
HERTZ GLOBAL HOLDINGS INC. Q4 2023 EARNINGS PRESENTATION February 6, 2024
Slide 2: Important Disclosures
IMPORTANT DISCLOSURES FORWARD-LOOKING STATEMENTS NON-GAAP MEASURES AND KEY METRICS Certain statements made within this presentation contain The following non-GAAP measures and key metrics are used in the forward-looking statements. Forward-looking statements are presentation: not guarantees of futur
Slide 3: Hertz – A Global Leader in Car Rental
HERTZ – A GLOBAL LEADER IN CAR RENTAL 105 years of operations 11,400 $9.4B 550K locations annual revenue vehicles 160 27,000 25M countries employees annual rentals INVESTOR PRESENTATION | Q4 2023 Note: Data For Full Year 2023 3
Slide 4: Global Q4 Results – Year Over Year
GLOBAL Q4 RESULTS – YEAR OVER YEAR Q4 2022 Q4 2023 DRIVERS REVENUE . . . . . . . . . . . . . . . . . $2.0B $2.2B 7% Continued strong overall demand environment TRANSACTION DAYS . . . . . . 33.7M 37.6M 12% Sustained volume growth across leisure, corporate and rideshare RPD . . . . . . . . . . . . . .
Slide 5: Global Q4 Results – Sequential
GLOBAL Q4 RESULTS – SEQUENTIAL Q3 2023 Q4 2023 DRIVERS REVENUE . . . . . . . . . . . . . . . . . $2.7B $2.2B (19)% In-line with normal seasonality of the business Decline is greater than typical seasonality driven by the decision to TRANSACTION DAYS . . . . . . 43.1M 37.6M (13)% prioritize rate RPD
Slide 6: Global FY Results – Year Over Year
GLOBAL FY RESULTS – YEAR OVER YEAR FY 2022 FY 2023 DRIVERS REVENUE . . . . . . . . . . . . . . . . . $8.7B $9.4B 8% Continued strong overall demand environment TRANSACTION DAYS . . . . . . 136.9M 154.2M 13% Sustained volume growth across leisure, corporate and rideshare 2022 reflected acute supply/d
Slide 7: Under the Hood – Rate and Volume
UNDER THE HOOD – RATE AND VOLUME GLOBAL RPD ~35% RATE PER DAY DYNAMICS $65.79 $61.14 $67.48 $58.54 $60.48 $62.46 $60.82 $58.09 • Key components impacting RPD: $46.25 $43.50 $42.16 $42.68 • Demand • Seasonality • Customer channel mix • Length of rental Q1 Q2 Q3 Q4 • Brand 2019 2022 2023 • Insurance r
Slide 8: EV Reduction
EV REDUCTION EV WRITE DOWN: Q4 2023 RATIONALE FOR DECISION • Strategic decision to sell one-third of the EV fleet based on ROA • Align EVs to existing fleet optimization strategy of mindset and tenet of fleeting within profitable demand “supply inside profitable demand” • US GAAP accounting requires
Slide 9: EV Sale Benefits
EV SALE BENEFITS SOURCES OF SOURCES OF ADJUSTED CORPORATE EBITDA BENEFIT FREE CASH FLOW BENEFIT • Fleet carrying costs • Free Cash Flow through increased EBITDA • Depreciation and vehicle interest expense • Increased financial flexibility • Direct operating expense • Reduced net fleet funding requir
Slide 10: Value Brands and Rideshare
VALUE BRANDS AND RIDESHARE • Driving increased revenue per visitor, ancillary revenue and conversion through new Dollar and Thrifty websites • Rolling out self service kiosks to enable more efficient check-in process and improve customer experience • Strategically allocating fleet among brands • Foc
Slide 11: Path to Incremental $500M of Adjusted Corporate EBITDA
PATH TO INCREMENTAL $500M OF ADJUSTED CORPORATE EBITDA Project-Driven Core Focus Areas Profitable Revenue Staffing and Footprint third party Direct operating Procurement and Yield spend control expense Improvement on Assets Technology Productivity ~$250M of productivity and cost benefit in 2024 and
Slide 12: Corporate Debt and Liquidity
CORPORATE DEBT AND LIQUIDITY NON-VEHICLE DEBT MATURITY PROFILE SOLID LIQUIDITY POSITION AT DECEMBER 31, 2023* AT DECEMBER 31, 2023 $1,696 • Liquidity of $2.0B • $764M of unrestricted cash • $1,266M available under First Lien RCF $1,000 • Net Non-vehicle Debt of $2.5B • No material non-fleet debt mat
Slide 13: Contact Us
CONTACT US Hertz Global Holdings, Inc. Johann Rawlinson Investor Relations Vice President Investor Relations 8501 Williams Rd, Estero, FL 33928 Krista Carey Senior Director Investor Relations Investorrelations@hertz.com INVESTOR PRESENTATION | Q4 2023 13
Slide 14: Appendix
APPENDIX Hertz dollar. Thriffy CAR RENTAL CAR RENTAL o
Slide 15: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION (In Millions) Q4 2023 Q3 2023 Q4 2022 FY 2023 FY 2022 HERTZ GLOBAL HOLDINGS, INC. RECONCILIATION OF GAAP TO NON-GAAP Adjusted Corporate EBITDA: MEASURE – ADJUSTED CORPORATE EBITDA Net Income (Loss) $(348) $629 $116 $616 $2,059 UNAUDITED Adjustments: Adjusted Corporate EBITDA
Slide 16: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION (In Millions) Q4 2023 Q3 2023 Q4 2022 FY 2023 FY2022 HERTZ GLOBAL HOLDINGS, INC. RECONCILIATION OF GAAP TO NON-GAAP Adjusted Operating Cash Flow And Adjusted Free Cash Flow: MEASURES – ADJUSTED OPERATING CASH FLOW Net cash provided by (used in) operating activities $564 $851
Slide 17: Global Key Metrics
GLOBAL KEY METRICS Transaction Days ("Days"; also referred to as "volume") ($ In Millions, Except Where Noted) Q4 2023 Q3 2023 Q4 2022 FY 2023 FY 2022 Transaction Days represents the total number of 24-hour periods, with any partial period counted as one Transaction Day, that vehicles were on rent (
Slide 18: Global Key Metrics
GLOBAL KEY METRICS ($ In Millions, Except Where Noted) Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Q1 2022 Q2 2022 Q3 2022 Q1 2023 Q2 2023 Total RPD Revenues $1,953 $2,344 $2,664 $2,147 $9,107 $1,810 $2,344 $2,495 $2,047 $2,436 Foreign Currency Adjustment(A) (26) (27) (27) (17) (95) (18) (12) 10 (3) (8)
Slide 19: Global Key Metrics
GLOBAL KEY METRICS ($ In Millions, Except Where Noted) Q4 2023 Q3 2023 Q4 2022 FY 2023 FY 2022 Available Rental Car Days Vehicle Utilization Available Rental Car Days represents Average Rentable Vehicles multiplied by the number of days in a given period. Transaction Days (In Thousands) 37,602 43,09
Slide 20: DOE per Day
DOE PER DAY Direct Operating Expense per Transaction Day (“DOE per Day”) ($ In Millions, Except Where Noted) Q4 2023 Q3 2023 Q4 2022 FY 2023 FY 2022 DOE per Day is calculated as Direct Operating Expenses divided by the number of Transaction Days during the period. DOE per Day is important DOE per Tr
Slide 21: Net Corporate Leverage
NET CORPORATE LEVERAGE Net Corporate Leverage Non-Vehicle Debt as of (In Millions) December 31, 2023 Net Corporate Leverage is calculated as non-vehicle net debt divided by Term Loans $2,013 Adjusted Corporate EBITDA for the last twelve months. Net Corporate Leverage is important to management and i
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