Hertz Global Holdings, Inc · NASDAQ:HTZ
Hertz Global — Q2 2024 Earnings Presentation
18 slides from Hertz Global's earnings presentation, Aug 1, 2024
Slide 1: Hertz Global Holdings Inc. Q2 2024 Earnings Presentation
HERTZ GLOBAL HOLDINGS INC. Q2 2024 EARNINGS PRESENTATION August 1, 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 | Q2 2024 Note: Data For Full Year 2023 3
Slide 4: Global Q2 Results – Year Over Year
GLOBAL Q2 RESULTS – YEAR OVER YEAR Q2 2023 Q2 2024 COMMENTARY Demand was healthy. The Company remained disciplined on capacity REVENUE . . . . . . . . . . . . . . . . . $2.4B $2.4B (3)% and prioritized rate. Volume was flat YoY driven by the decision to remain disciplined on TRANSACTION DAYS . . . .
Slide 5: Global Q2 Results – Sequential
GLOBAL Q2 RESULTS – SEQUENTIAL Q1 2024 Q2 2024 COMMENTARY REVENUE . . . . . . . . . . . . . . . . . $2.1B $2.4B 13% Both RPD and volume increased. TRANSACTION DAYS . . . . . . 36.9M 39.7M 8% Growth was led by higher-margin leisure demand. Increase was across all leisure segments; supported by revenu
Slide 6: Building Blocks of Our Strategy
BUILDING BLOCKS OF OUR STRATEGY METRIC TARGET COMMENTARY • Fleet refresh / rotate out of high priced vehicles in FY24/25 Depreciation per • Vehicle prices coming down via increased OEM incentives / FLEET unit per month Low $300s availability of desired fleet mix (DPU) • Current deals support target;
Slide 7: Refreshed Fleet Drives Improved Results
REFRESHED FLEET DRIVES IMPROVED RESULTS Over 30% of the fleet at or below • Refresh is well underway, with a third of the DPU target as of June 30, 2024 fleet now model year '24 or '25 • Fleet cost composition indicates more than 30% of vehicles are at or below our DPU target • Average DPU for remai
Slide 8: Capacity Discipline Improves Rate
CAPACITY DISCIPLINE IMPROVES RATE GLOBAL RPD - YOY Rate per Day Dynamics (10%) (7%) (3%) (5%) (2%) (2%) • The Company's revenue management and capacity discipline is $60.03 $60.26 $62.07 $60.12 $62.29 $58.90 $59.72 $58.29 $62.83 $61.68 $53.74 $55.88 narrowing year-over-year RPD declines • The Compan
Slide 9: Significant Runway to Drive RPD Higher
SIGNIFICANT RUNWAY TO DRIVE RPD HIGHER RPD TARGET OF LOW $60s Low $60s • Operationalize dynamic • Realize full effect pricing tools of current systems • Additional $58.22 to improve products and recovery of bundling incidental • Updates to • Highly actionable damage / collision systems opportunity t
Slide 10: Cost Management Initiatives Are Underway
COST MANAGEMENT INITIATIVES ARE UNDERWAY DOE/DAY TARGET OF LOW $30s >$36/day • New vehicles require less maintenance Low $30s • Minimal difference between a • Improved • Insurance costs vehicle's FMV procurement • Labor rates and GAAP and contract NBV reduces management our exposure • Footprint to l
Slide 11: Corporate Debt and Liquidity
CORPORATE DEBT AND LIQUIDITY NON-VEHICLE DEBT MATURITY PROFILE SOLID LIQUIDITY POSITION AT JUNE 30, 2024* AT JUNE 30, 2024 • Liquidity of $1.8B $2,000 • $568M of unrestricted cash $1,696 • $1.3B available under First Lien RCF • Non-vehicle Debt of $4.6B • Issued $750M of 1L notes due 2029 $678 • Iss
Slide 12: 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 | Q2 2024 12
Slide 13: Appendix
Hertz dollar: Thrifty ——
Slide 14: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION (In Millions) Q2 2024 Q1 2024 Q2 2023 HERTZ GLOBAL HOLDINGS, INC. RECONCILIATION OF GAAP TO NON-GAAP Adjusted Corporate EBITDA: MEASURE – ADJUSTED CORPORATE EBITDA Net Income (Loss) $(865) $(186) $139 Adjusted Corporate EBITDA represents income or loss attributable to the Adj
Slide 15: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION (In Millions) Q2 2024 Q1 2024 Q2 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 $546 $370 $497 AND ADJUST
Slide 16: Global Key Metrics
GLOBAL KEY METRICS Transaction Days ("Days"; also referred to as ($ In Millions, Except Where Noted) Q2 2024 Q1 2024 Q2 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 17: Global Key Metrics
GLOBAL KEY METRICS ($ In Millions, Except Where Noted) Q2 2024 Q1 2024 Q2 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) 39,721 36,854 39,705 Average
Slide 18: DOE per Day
DOE PER DAY Direct Operating Expense per Transaction Day (“DOE per Day”) ($ In Millions, Except Where Noted) Q2 2024 Q1 2024 Q2 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 to management and investor
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