Hertz Global Holdings, Inc · NASDAQ:HTZ
Hertz Global — Q3 2019 Earnings Presentation
16 slides from Hertz Global's earnings presentation, Nov 5, 2019
Slide 1: Hertz Global Holdings 3Q 2019 Earnings Call
HERTZ GLOBAL 3Q 2019 Earnings Call November 5, 2019 HOLDINGS, INC. 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. 3
Slide 5: Driving Sustainable Revenue and Earnings Growth
Driving Sustainable Revenue and Earnings Growth Execution Excellence Driving Productivity and Operating Efficiency ▪ Customer Experience Sustaining Top Line Momentum; Executing Growth Initiatives ▪ Disciplined Fleet Management ▪ Leveraging Scale ▪ Investing in Brand, Product, Service ▪ Streamlining
Slide 6: Quarterly Overview
QUARTERLY Jamere Jackson Chief Financial Officer OVERVIEW Hertz Global Holdings, Inc.
Slide 7: 3Q:19 Consolidated Results
3Q:19 Consolidated Results $ in millions, except per share data 3Q:19 3Q:18 YoY Results Results Inc/(Dec) GAAP Total revenues $2,836 $2,758 3% Net income attributable to Hertz Global $169 $141 20% Diluted earnings per share $1.26 $1.47 (14%) Weighted-average shares outstanding: diluted1 134M 96M Non
Slide 8: 3Q:19 U.S. RAC
3Q:19 U.S. RAC U.S. RAC (YoY quarterly results) Performance Overview: Total Revenue Transaction Days ▪ Revenue +6%, +5% ex-TNC1 10% 10% 7% • Days +5%, +3% ex-TNC 9% 7% 6% 6% 4% 6% 5% • Strong demand: ✓ All brands 3Q:18 4Q:18 1Q:19 2Q:19 3Q:19 3Q:18 4Q:18 1Q:19 2Q:19 3Q:19 ✓ Business and leisure ✓ Ai
Slide 9: 3Q:19 U.S. RAC Fleet
3Q:19 U.S. RAC Fleet U.S. RAC Fleet Fleet Management Execution: Depreciation Per Unit Per Month YoY 3Q:18 4Q:18 1Q:19 2Q:19 3Q:19 ▪ Depreciation Per Unit Per Month (5%) YoY (5%) • Fleet procurement strategy (13%) • Retail car sales channel unit growth (15%) (15%) (15%) • Residual value market streng
Slide 10: 3Q:19 U.S. RAC Retail Vehicle Sales Initiative
3Q:19 U.S. RAC Retail Vehicle Sales Initiative U.S. RAC Vehicle Disposition Channel Top 10 Used-Vehicle Retailer Nationally1 Auction 29% Dealer Direct 36% ▪ Retail sales volume 3Q +9%; same-store sales +2% ▪ High-margin ancillary retail sales revenue +11% 35% ▪ 86 Retail locations in the U.S. Retail
Slide 11: 3Q:19 International RAC
3Q:19 International RAC International RAC (YoY quarterly results)1 Performance Overview: Revenue Transaction Days 4% 4% 2% 0% 2% ▪ Revenue flat on a constant currency basis 0% 0% 0% (1%) • RPD +1%, Days (2%) (2%) 3Q:18 4Q:18 1Q:19 2Q:19 3Q:19 3Q:18 4Q:18 1Q:19 2Q:19 3Q:19 • Improved pricing in APAC
Slide 12: Debt, Liquidity & Cash Flow Overview
DEBT, LIQUIDITY & Jamere Jackson Chief Financial Officer CASH FLOW OVERVIEW Hertz Global Holdings, Inc.
Slide 13: 3Q:19 Debt, Liquidity and Cash Flow
3Q:19 Debt, Liquidity and Cash Flow Hertz Global Consolidated $ in millions Overview: Pro Forma Non-Vehicle Debt Maturity Profile1 ▪ Liquidity of $860M at September 30, 2019 ▪ De-levered balance sheet by $700M in Q3:19: $1,250 • $750M equity rights offering • Paid off 2020 senior notes; $700M • Refi
Slide 14: Heading Into 2020
Heading Into 2020 Sustaining Top Line Momentum ▪ Investing in Brand, Product, Service Expanding Margins & ▪ Customer Experience Operational Efficiency Innovating For The Future ▪ Value-Added Services ▪ Productivity / Cost Out ▪ Connected Cars ▪ TNC Growth ▪ SG&A ▪ Digital Customer Experience ▪ Deliv
Slide 15: Hertz Dollar Firefly Donlen
Hertz dollar. Firifhy DONLEN CAR RENTAL CAR RENTAL . A Hertz Company
Slide 16: Appendix
Appendix Shares in millions Weighted-Average Shares Outstanding 3Q:19 3Q:18 Basic weighted-average shares outstanding (excluding the impact of the equity rights offering) 84 84 Equity rights offering adjustment(1) 2 12 New shares issued under the equity rights offering(2) 47 - Basic weighted-average
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