Hertz Global Holdings, Inc · NASDAQ:HTZ
Hertz Global — Q4 2018 Earnings Presentation
16 slides from Hertz Global's earnings presentation, Feb 26, 2019
Slide 1: Hertz Global Holdings 4Q 2018 Earnings Call
HERTZ GLOBAL 4Q 2018 Earnings Call February 26, 2019 HOLDINGS, INC. 8:30 am ET
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 information re
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
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: Growth-led Operational Turnaround Delivering
Growth-led Operational Turnaround Delivering 2018 Delivers Higher Rate, Volume and Utilization on Lower Depreciation Expense Broad-based Momentum in U.S. Revenue Growth Fleet Management Excellence ▪ 4Q:18 +10%, FY:18 +8% ▪ Monthly net depreciation per unit • 4Q:18 RPD +3%, +4% ex-TNC • (15)% 4Q:18 •
Slide 6: Leveraging Momentum into 2019
Leveraging Momentum into 2019 ▪ Growth • RPD, volume and utilization ▪ Productivity • Drive operational efficiency • Centralize maintenance • Optimize procurement • Achieve benchmark SG&A ▪ Technology Transformation • CRM, mobile apps, reservation, rental, fleet management, back-office systems • Str
Slide 7: Quarterly Overview
QUARTERLY Jamere Jackson Chief Financial Officer OVERVIEW Hertz Global Holdings, Inc.
Slide 8: 4Q:18 and FY:18 Consolidated Results
4Q:18 and FY:18 Consolidated Results $ in millions, except per share data 4Q:18 4Q:17 YoY FY:18 FY:17 YoY GAAP Results Results Inc/(Dec) Results Results Inc/(Dec) Total revenues $2,294 $2,091 10% $9,504 $8,803 8% Loss before income taxes $(120) $(179) (33)% $(257) $(575) (55)% Net income (loss) attr
Slide 9: 4Q:18 U.S. RAC
4Q:18 U.S. RAC U.S. RAC (YoY quarterly results) Performance Overview: ▪ Revenue1 +9%, +7% ex-TNC2 Revenue1 Transaction Days • Days +6%, +2% ex-TNC 7% 10% 9% 6% 7% 7% 6% • RPD +3%, +4% ex-TNC 1% 5% 3% • Strong pricing across all leisure segments • Stable commercial pricing 4Q:17 1Q:18 2Q:18 3Q:18 4Q:
Slide 10: 4Q:18 U.S. RAC Fleet
4Q:18 U.S. RAC Fleet U.S. RAC Fleet Continued Focus on Optimizing Fleet: Net Depreciation Per Unit Per Month YoY ▪ Net Depreciation Per Unit Per Month (15)% YoY FY:18 $276, (16)% YoY • Strategic fleet acquisitions, diverse supply base (13)% (19)% • Residual value market strength • Growth in TNC exte
Slide 11: 4Q:18 U.S. RAC Retail Sales Initiative
4Q:18 U.S. RAC Retail Sales Initiative U.S. RAC Retail Sales Disposition Channel Focused on Highest-Return Sales Channel: ▪ World-class sales team and capability +14% ▪ Top 10 used-vehicle retailer nationally ▪ Retail sales volume 4Q +16%, FY +14% ▪ Hertz’s preferred fleet mix drives higher residual
Slide 12: 4Q:18 International RAC
4Q:18 International RAC International RAC (YoY quarterly results)1 Performance Overview1: ▪ Revenue +4% Revenue Transaction Days • Strong volume and value added services revenue 4% 3% 4% 4% • T&M leisure positive, offset by corporate 2% 2% 1% 0% 0% ▪ Net Depreciation Per Unit Per Month (1)% (2)% 4Q:
Slide 13: Debt, Liquidity & Cash Flow Overview
DEBT, LIQUIDITY & Jamere Jackson Chief Financial Officer CASH FLOW OVERVIEW Hertz Global Holdings, Inc.
Slide 14: YE:18 Debt, Liquidity and Cash Flow
YE:18 Debt, Liquidity and Cash Flow Hertz Global Consolidated Overview: $ in millions, as of December 31, 2018 ▪ Liquidity of $1.6B at December 31, 2018 Adjusted Free Cash Flow ▪ Full-Year Adj. Free Cash Flow $99M, +$435M YoY $99 • Earnings improvement $(336) • Increase in global vehicle debt advanc
Slide 15: Key Areas of Focus
Key Areas of Focus Revenue Growth ▪ Sustain top line momentum…growth initiatives: • Right cars, right place, right time, right price • Disciplined fleet management Asset Efficiency • Service excellence • Innovation and brand-building marketing ▪ Drive productivity Productivity ▪ Execute technology t
Slide 16: Q&A
Hertz Fier Bie its DONLEN CAR RENTAL CAR RENTAL o. A Hertz Company Q&A
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