Hertz Global Holdings, Inc · NASDAQ:HTZ

Hertz Global — Q2 2016 Earnings Presentation

17 slides from Hertz Global's earnings presentation, Aug 9, 2016

  1. Slide 1: 2Q 2016 Earnings Call

    1 2Q 2016 Earnings Call August 9, 2016 8:30am ET

  2. Slide 2: Safe Harbor Statement

    2 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 uncertaint

  3. Slide 3: Non-GAAP Measures

    3 Non-GAAP Measures THE FOLLOWING NON-GAAP* MEASURES WILL BE USED IN THE PRESENTATION: Adjusted corporate EBITDA Adjusted corporate EBITDA margin Adjusted pre-tax income (loss) Adjusted net income (loss) Adjusted earnings (loss) per share (Adjusted EPS) Revenue per available car day (RACD) Total RPD

  4. Slide 4: Agenda

    4 Agenda BUSINESS OVERVIEW John Tague President & Chief Executive Officer Hertz Global Holdings, Inc. FINANCIAL RESULTS OVERVIEW Tom Kennedy Chief Financial Officer Hertz Global Holdings, Inc. 2Q

  5. Slide 5: Quarterly Overview

    5 TOM KENNEDY CHIEF FINANCIAL OFFICER Hertz Global Holdings, Inc. Quarterly Overview

  6. Slide 6: 2Q:16 Consolidated Results

    6 2Q:16 Consolidated Results *Definitions and reconciliations of these non-GAAP measures are provided in the Company’s second quarter 2016 press release. NM – Not Meaningful 2Q GAAP 2Q:16 Results 2Q:15 Results YoY Change Revenue $2,270M $2,317M (2)% Income (loss) from continuing operations before in

  7. Slide 7: Consolidated Cost Initiatives Tangible Progress

    7 Consolidated Cost Initiatives Tangible Progress Consolidated Cost Savings • FY:16 Target $350M realized savings – 2Q:16 realized savings of ~$100M – 1H:16 realized savings of ~$170M • FY:15 realized $230M of savings IT Platform / Cost of Delivery Back Office Optimization and General Overhead US RA

  8. Slide 8: 2Q:16 U.S. RAC Performance

    8 2Q:16 U.S. RAC Performance Revenue Days Rate Vehicle Utilization (pts) Capacity RACD -2% -8% -5% -2% 2% 0% 0% 6% -10% -5% -2% -8% 500 400 300 700 -5% -5% -3% -2% -3% 0% 1% 0% U.S. RAC (YOY quarterly results) Q3’15 Q4’15 Q1’16 Q2’16 Revenue is defined as total revenue excluding ancillary retail car

  9. Slide 9: 2Q:16 International Rental Car

    9 2Q:16 International Rental Car 2Q • 2Q:16 Revenue decreased 2% YoY, excluding FX - Volume flat primarily due to decline in inbound business following terrorist attacks, offsetting growth in commercial and other leisure - Total RPD 2% lower, in constant currency, due to impact of reduced high yield

  10. Slide 10: Cash Flow / Balance Sheet Overview

    10 CASH FLOW / BALANCE SHEET OVERVIEW TOM KENNEDY CHIEF FINANCIAL OFFICER Hertz Global Holdings, Inc.

  11. Slide 11: Liquidity and Debt Overview

    11 Liquidity and Debt Overview 6/30/16 PF for 7.5% Note Redemption RCF Availability $1,094M $1,094M Unrestricted Cash 1,285M 572M Corporate Liquidity $2,379M $1,666M • Improved Hertz Non-Vehicle Debt Structure – Used $2 billion in proceeds to reduce debt – Significantly extended maturity schedule –

  12. Slide 12: Improved Debt Maturity Profile

    12 Improved Debt Maturity Profile HGH 3/31/2016 Non-Vehicle Debt Maturity Stack 1 ($ in millions) $1,250 $700 $500 $500 $950 $2,056 $1,903 2017 2018 2019 2020 2021 2022 2023 Senior Notes Term Loans Undrawn ABL Pro Forma 6/30/2016 Hertz Global Non-Vehicle Debt Maturity Stack 2 ($ in millions) $1,250

  13. Slide 13: Outlook

    13 OUTLOOK

  14. Slide 14: FY:2016 Financial Guidance

    14 FY:2016 Financial Guidance FY:2016 assumptions include: • U.S. RAC residual decline of ~2.5% • $350M incremental consolidated cost savings • Consolidated 37% effective tax rate • 85M weighted average shares outstanding FY:2016 Guidance Adjusted Corporate EBITDA $850M - $950M Non-vehicle capital e

  15. Slide 15: FY:2016 Adjusted Corporate EBITDA Guidance Walk

    15 Reconciling Items 1st Half Items = ~$70 million ($20)M Unanticipated International insurance charge (25)M Stranded costs that are no longer allocated (10)M Strategic Investments (10)M 2Q U.S. RAC vehicle recall (~1% to June capacity) and storm damage (5)M FX 2nd Half Risks - International RAC slo

  16. Slide 16: FY:2016 Free Cash Flow Guidance Walk

    16 Reconciling Items Cash Flow Guidance Increase = $100 million $45M Corporate cash interest expense 25M Non-vehicle capital expenditures 25M Cash taxes 5M Other working capital and financing initiatives FY:2016 Free Cash Flow Guidance Walk

  17. Slide 17: Q&A

    17 Q&A

Hertz Global Holdings — Q2 2016 Earnings Presentation on 6ix