Hertz Global Holdings, Inc · NASDAQ:HTZ
Hertz Global — Q1 2018 Earnings Presentation
19 slides from Hertz Global's earnings presentation, May 8, 2018
Slide 1: 1Q 2018 Earnings Call
1Q 2018 Earnings Call May 8, 2018 8:00 am ET 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 1Q 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 uncertain
Slide 3: Key Metrics and Non-GAAP Measures
Key Metrics and Non-GAAP Measures 1Q THE FOLLOWING KEY METRICS AND NON-GAAP1 MEASURES WILL BE USED IN THE PRESENTATION: Adjusted corporate EBITDA Total RPD Adjusted corporate EBITDA margin Total RPU Adjusted pre-tax income (loss) Net depreciation per unit per month Adjusted net income (loss) Vehicle
Slide 4: Agenda
Agenda 1Q BUSINESS Kathryn Marinello President & Chief Executive Officer OVERVIEW Hertz Global Holdings, Inc. FINANCIAL RESULTS Tom Kennedy Chief Financial Officer OVERVIEW Hertz Global Holdings, Inc. 4
Slide 5: U.S. Turnaround Gains Traction; Validates Strategy
U.S. Turnaround Gains Traction; Validates Strategy 1Q Driving Positive Operating Momentum Improving Financial Performance • Model year 2017/2018 ~80% of operating fleet; • 3rd consecutive quarter of YoY worldwide revenue growth reflecting customer-preferred mix of vehicles • U.S. RAC 1Q:18 YoY growt
Slide 6: Quarterly Overview
1Q Quarterly Overview Tom Kennedy CHIEF FINANCIAL OFFICER Hertz Global Holdings, Inc. 6
Slide 7: Consolidated Results
1Q:18 Consolidated Results 1Q (in $M USD, except per share data) 1Q:18 1Q:17 YoY GAAP Results Results Inc/(Dec) Total revenues $2,063 $1,916 8% Income (loss) before income taxes $(231) $(294) (21)% Net income (loss) $(202) $(223) (9)% Diluted earnings (loss) per share $(2.43) $(2.69) (10)% Weighted
Slide 8: U.S. RAC Revenue Performance
1Q:18 U.S. RAC Revenue Performance 1Q U.S. RAC (YoY quarterly results1) 1Q:18 Performance Drivers Revenue Days Total RPD • Total RPD decreased 1% YoY, but increased 3% 5% 6% excluding value-added service revenues and 3% 2% 1% ride-hailing, reflecting strong leisure demand (1)% (1)% (1)% (4)% (5)% (2
Slide 9: U.S. RAC Fleet
1Q:18 U.S. RAC Fleet 1Q U.S. RAC (YoY quarterly results1) Vehicle Utilization (bps) Capacity Continued Focus on Optimizing Fleet 430 250 4% • Vehicle utilization was 79%, versus 75% in 1Q:17 —% • Capacity was neutral YoY, representing growth in (1)% (2)% (1)% ride-hailing fleet offset by tightening
Slide 10: U.S. RAC Monthly Depreciation Per Unit
1Q:18 U.S. RAC Monthly Depreciation Per Unit 1Q Current Year Prior Year +15% +27% $353 $348 $348 +1% (6)% $321 (13)% $303 $306 $304 $302 $302 $278 1Q:17 2Q:17 3Q:17 4Q:17 1Q:18 Year-Over-Year Trend Continues to Improve • Stabilizing residual values – still expecting 2% YoY decline in FY:18 • Increme
Slide 11: U.S. RAC Fleet Sales Initiative
1Q:18 U.S. RAC Fleet Sales Initiative 1Q Non-Program Vehicle Disposition Channel Mix Focused on Driving More Sales Through Alternative Channels • Unit sales through highest-return retail channel grew 24% in 1Q:18 22% 39% 35% 41% • 78% of the units disposed of in 1Q:18 were re- marketed through highe
Slide 12: International RAC
1Q:18 International RAC 1Q Performance Overview Key Metrics 1Q:18 YoY • Revenue increased 3% YoY excluding foreign exchange ◦ Revenue increased 6% YoY excluding Brazil1 and foreign exchange – Transaction days increased 4% 5% – Total RPD increased 2%, driven by strong seasonal 4% peak in APAC and bet
Slide 13: Liquidity / Balance Sheet Overview
1Q LIQUIDITY / BALANCE SHEET OVERVIEW Tom Kennedy CHIEF FINANCIAL OFFICER Hertz Global Holdings, Inc. 13
Slide 14: Consolidated Debt Mix Excluding Donlen
1Q:18 Consolidated Debt Mix Excluding Donlen 1Q Fixed Rate Debt Floating Rate Debt 15% 35% 30% 65% 85% 70% Vehicle Debt Non-Vehicle Debt Total Debt 1Q:18 vehicle interest expense increased primarily due to higher rates and a shift towards fixed rate debt relative to prior year Excludes Donlen debt b
Slide 15: Liquidity Overview and Financing Activities
1Q:18 Liquidity Overview and Financing Activities 1Q Corporate Liquidity at March 31, 2018 • Quarter-end Corporate liquidity was relatively in-line with year- in $M USD end 2017 position of $1.6 billion Senior RCF Facility Size $1,167 • Issued $1.0 billion of 5 year term ABS in January 2018 less Out
Slide 16: Corporate Debt Maturity Profile
Corporate Debt Maturity Profile 1Q March 31, 2018 Hertz Global Non-Vehicle Debt Maturity Profile1 Senior Notes Senior Second Priority Secured Notes Term Loan Senior RCF $14 in $M USD $1,167 $ (Millions) $1,250 $14 $14 $700 $800 $618 $500 $500 $10 $14 2018 2019 2020 2021 2022 2023 2024 No material ne
Slide 17: First Lien Financial Maintenance Covenant
First Lien Financial Maintenance Covenant 1Q Consolidated First Lien Leverage Ratio as of March 31, 2018 was 1.76x in $M USD Senior RCF Facility Size $1,167 Outstanding Letters of Credit - 648 Term Loan Outstanding + 684 Unrestricted Cash1 - 500 First Lien Secured Net Debt $703 TTM Adjusted Corporat
Slide 18: Investments Impacting Adjusted Corporate EBITDA
Investments Impacting Adjusted Corporate EBITDA 1Q FY:18 Investments Impacting Consolidated Adjusted Corporate EBITDA U.S. RAC DOE & SG&A as a % of Revenue 72% in $M USD 2018 2017 YoY $ 70% Estimate Actual Inc/(Dec) 71% 67% Total Investments $300 $260 $40 Major Categories 63% Fleet 100 130 (30) IT/O
Slide 19: Q&A
Q&A NYSE: HTZ 19
Hertz Global Holdings — Q1 2018 Earnings Presentation on 6ix