Hertz Global Holdings, Inc · NASDAQ:HTZ
Hertz Global — Q1 2024 Earnings Presentation
18 slides from Hertz Global's earnings presentation, Apr 25, 2024
Slide 1: Hertz Global Holdings Inc. Q1 2024 Earnings Presentation
HERTZ GLOBAL HOLDINGS INC. Q1 2024 EARNINGS PRESENTATION April 25, 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 106 years of operations 11,400 $9.4B 550K locations annual revenue vehicles 160 27,000 25M countries employees annual rentals INVESTOR PRESENTATION | Q1 2024 Note: Data For Full Year 2023 3
Slide 4: Global Q1 Results – Year over Year
GLOBAL Q1 RESULTS – YEAR OVER YEAR Q1 2023 Q1 2024 DRIVERS REVENUE . . . . . . . . . . . . . . . . . $2.0B $2.1B 2% Continued strong overall demand environment TRANSACTION DAYS . . . . . . 33.8M 36.9M 9% Sustained volume growth across leisure and rideshare RPD . . . . . . . . . . . . . . . . . . . .
Slide 5: Global Q1 Results – Sequential
GLOBAL Q1 RESULTS – SEQUENTIAL Q4 2023 Q1 2024 DRIVERS REVENUE . . . . . . . . . . . . . . . . . $2.2B $2.1B (5)% In-line with normal seasonality of the business TRANSACTION DAYS . . . . . . 37.6M 36.9M (2)% In-line with normal seasonality of the business RPD . . . . . . . . . . . . . . . . . . . .
Slide 6: Revenue – Rate and Volume
REVENUE – RATE AND VOLUME ~35% GLOBAL RPD Revenue Dynamics $60.85 $61.62 $63.04 $56.68 $58.15 • Q1'24 revenue of $2.1B comparable to Q1'2019; +2% YoY $43.07 $46.73 $43.86 $42.50 • RPD +35% versus Q1'19 • March '24 RPD 12% higher than January '24 • Days (20%) versus Q1'19 Q1 Q2 Q3 Q4 2019 2023 2024 R
Slide 7: Fleet - New Car Prices / DPU
FLEET - NEW CAR PRICES / DPU New Vehicle Supply Index1 vs. New Vehicle Price Index Values Indexed to 2019 Depreciation Per Unit Per Month* 2019 2021 2023 +63% 2020 2022 (18)% 100 100 U.S. New Vehicle Hertz New Vehicle FY FY Q1 2024 Supply Price (by Model Year) 2022 2023 • Supply reduction drove high
Slide 8: EV Update
EV UPDATE Q1 2024 Update Benefits from downsizing EV fleet • Eliminates oversupply of EVs Q1 2024 • Improves RPD and utilization of EVs EVs Held for Sale Qty Impact • Reduces vehicle carrying costs and DOE First EV Disposal Group 20K • Increases field team productivity $154M Second EV Disposal Group
Slide 9: Path to Incremental $500M of Adjusted Corporate EBITDA
PATH TO INCREMENTAL $500M OF ADJUSTED CORPORATE EBITDA Profitable Core Focus Areas Revenue Growth 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 Cost (se
Slide 10: Corporate Debt and Liquidity
CORPORATE DEBT AND LIQUIDITY NON-VEHICLE DEBT MATURITY PROFILE SOLID LIQUIDITY POSITION AT MARCH 31, 2024* AT MARCH 31, 2024 • Liquidity of $1.3B $1,696 • $465M of unrestricted cash • $866M available under First Lien RCF $968 $1,000 • Net Non-vehicle Debt of $3.3B • Vehicle debt facilities carry ble
Slide 11: 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 | Q1 2024 11
Slide 12: Appendix
Hertz dollar: Thrifty ——
Slide 13: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION (In Millions) Q1 2024 Q4 2023 Q1 2023 HERTZ GLOBAL HOLDINGS, INC. RECONCILIATION OF GAAP TO NON-GAAP Adjusted Corporate EBITDA: MEASURE – ADJUSTED CORPORATE EBITDA Net Income (Loss) $(186) $(348) $196 UNAUDITED Adjustments: Adjusted Corporate EBITDA represents income or loss
Slide 14: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION (In Millions) Q1 2024 Q4 2023 Q1 2023 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 $370 $564 $562 AND ADJUST
Slide 15: Global Key Metrics
GLOBAL KEY METRICS Transaction Days ("Days"; also referred to as ($ In Millions, Except Where Noted) Q1 2024 Q4 2023 Q1 2023 "volume") Transaction Days represents the total number of 24-hour periods, with any partial period counted as one Total RPD Transaction Day, that vehicles were on rent (the pe
Slide 16: Global Key Metrics
GLOBAL KEY METRICS ($ In Millions, Except Where Noted) Q1 2024 Q4 2023 Q1 2023 Available Rental Car Days Available Rental Car Days represents Average Rentable Vehicles multiplied Vehicle Utilization by the number of days in a given period. Transaction Days (In Thousands) 36,854 37,602 33,787 Average
Slide 17: DOE per Day
DOE PER DAY Direct Operating Expense per Transaction Day (“DOE per Day”) ($ In Millions, Except Where Noted) Q1 2024 Q4 2023 Q1 2023 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 Transaction Day –
Slide 18: Net Corporate Leverage
NET CORPORATE LEVERAGE Net Corporate Leverage Non-Vehicle Debt as of (In Millions) March 31, 2024 Net Corporate Leverage is calculated as non-vehicle net debt divided by First Lien RCF $450 Adjusted Corporate EBITDA for the last twelve months. Net Corporate Leverage is important to management and in
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