Hertz Global Holdings, Inc · NASDAQ:HTZ
Hertz Global — Q3 2018 Earnings Presentation
16 slides from Hertz Global's earnings presentation, Nov 9, 2018
Slide 1: 3Q 2018 Earnings Call
HERTZ GLOBAL HOLDINGS, INC. 3Q 2018 Earnings Call November 9, 2018 8:30 am ET
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements made within this presentation contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of performance and by their nature are subject to inherent uncertaintie
Slide 3: Non-GAAP Measures and Key Metrics
Non-GAAP Measures and Key Metrics THE FOLLOWING NON-GAAP MEASURES1 AND KEY METRICS WILL BE USED IN THE PRESENTATION: Adjusted Corporate EBITDA Total RPD Adjusted Corporate EBITDA Margin Total RPU Adjusted Pre-tax Income (Loss) T&M rate Adjusted Net Income (Loss) Net Depreciation Per Unit Per Month A
Slide 4: Agenda
Agenda Kathryn Marinello BUSINESS President & Chief Executive Officer OVERVIEW Hertz Global Holdings, Inc. FINANCIAL RESULTS Jamere Jackson Chief Financial Officer OVERVIEW Hertz Global Holdings, Inc. 3
Slide 5: U.S. Operational Turnaround: Gaining Traction
U.S. Operational Turnaround: Gaining Traction Executing Strategically • Managing fleet mix based on the highest rental and residual returns • Planning fleet capacity at the local level using advanced demand-forecasting tools • Driving service and operational excellence through training and process i
Slide 6: Quarterly Overview
QUARTERLY OVERVIEW Jamere Jackson CHIEF FINANCIAL OFFICER Hertz Global Holdings, Inc.
Slide 7: 3Q:18 Consolidated Results
3Q:18 Consolidated Results $ in millions, except per share data 3Q:18 3Q:17 YoY GAAP Results Results Inc/(Dec) Total revenues $2,758 $2,572 7% Income before income taxes $181 $143 27% Net income attributable to Hertz Global $141 $93 52% Diluted earnings per share $1.68 $1.12 50% Weighted average sha
Slide 8: 3Q:18 U.S. RAC
3Q:18 U.S. RAC U.S. RAC (YoY quarterly results) Performance Overview Revenue1 Transaction Days Total RPD • Revenue +10%, +8% ex-TNC2 ◦ Days +7%, +4% ex-TNC ◦ RPD +3%, +3% ex-TNC ◦ T&M rate +5% • Growth initiatives are delivering T&M rate Total RPU ◦ Disciplined fleet management ◦ Exceptional service
Slide 9: 3Q:18 U.S. RAC Fleet
3Q:18 U.S. RAC Fleet U.S. RAC (YoY quarterly results) Continued Focus on Optimizing Fleet Vehicle Utilization (bps) Capacity1 • Capacity increased + 7%, + 4% ex-TNC ◦ Solid market growth ◦ Supporting our growth initiatives • 81% Utilization, +30 basis points ◦ Rigorous local demand forecasting ◦ Dis
Slide 10: 3Q:18 U.S. RAC Net Depreciation Per Unit Per Month
3Q:18 U.S. RAC Net Depreciation Per Unit Per Month +1% (6)% (13)% (19)% (15)% Year-Over-Year Trend Continues to Improve • Solid execution and disciplined fleet acquisitions • Residual value market strength continued into the 3rd Quarter • Increased unit sales through high-return retail channel • Opp
Slide 11: 3Q:18 U.S. RAC Fleet Sales Initiative
3Q:18 U.S. RAC Fleet Sales Initiative Non-Program Vehicle Disposition Channel Mix Focused on Driving More Sales Through Alternative Channels +15% 64.6K • Strong residual market 56.0K • Units sold through retail channel grew 7.5% YoY 37% • World-class sales-team and capability Retail 40% • Top ten us
Slide 12: 3Q:18 International RAC
3Q:18 International RAC International RAC (YoY quarterly results)1 Performance Overview1 Revenue Transaction Days Total RPD • Revenue +2%, +4% ex-Brazil ◦ Brazil operations divested August 2017 ◦ Results ex-Brazil - Days +2% T&M rate Total RPU - RPD +1% ◦ Softer leisure demand in Europe ◦ APAC growt
Slide 13: Debt, Liquidity and Cash Flow Overview
DEBT, LIQUIDITY AND CASH FLOW OVERVIEW Jamere Jackson CHIEF FINANCIAL OFFICER Hertz Global Holdings, Inc.
Slide 14: 3Q:18 Debt and Liquidity
3Q:18 Debt and Liquidity September 30, 2018 Hertz Global Non-vehicle Debt Maturity Profile1 $14 • No material non-vehicle debt maturities until October 2020 ◦ Will be opportunistic on go-to-market timing $1,167 $1,250 $14 • Liquidity of $1.3B, YTD Adjusted Free Cash Flow +$159M YoY $14 $800 ◦ Contin
Slide 15: Key Areas of Focus
Key Areas of Focus • Sustain top line momentum…growth initiatives ◦ Disciplined fleet management ◦ Service excellence ◦ Innovation ◦ Brand-building marketing • Execute technology transformation • Drive productivity Revenue Growth .... Asset Efficiency .... Productivity .... Innovation 14
Slide 16: Hertz brands closing slide
Hertz 1H DONLEN CCAR RENTAL A Hertz Company
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