Hertz Global Holdings, Inc · NASDAQ:HTZ
Hertz Global — Q1 2017 Earnings Presentation
18 slides from Hertz Global's earnings presentation, May 9, 2017
Slide 1: 1Q 2017 Earnings Call May 9, 2017 8:30am ET
1 1Q 2017 Earnings Call May 9, 2017 8:30am ET
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
Slide 3: Non-GAAP Measures
3 Non-GAAP Measures THE FOLLOWING KEY METRICS AND 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 diluted earnings (loss) per share (Adjusted diluted EPS) Total RPD Tota
Slide 4: Agenda
4 Agenda BUSINESS OVERVIEW Kathryn Marinello President & Chief Executive Officer Hertz Global Holdings, Inc. FINANCIAL RESULTS OVERVIEW Tom Kennedy Chief Financial Officer Hertz Global Holdings, Inc. 1Q
Slide 5: Drivers of US RAC Long-Term Growth
5 Drivers of US RAC Long-Term Growth 1Q • FLEET………………. Upgrade vehicle mix and optimize capacity • SERVICE…………… Improve processes, restructure incentives, roll out Ultimate Choice platform • MARKETING……….. Enhance digital applications • TECHNOLOGY…….. Update suite of systems for greater flexibility,
Slide 6: 1Q:17 Adjusted Corporate EBITDA Bridge
6 1Q:17 Adjusted Corporate EBITDA Bridge 1Q Transformation Predicated on Optimizing Fleet Mix and Capacity $27 ($110) 60% of 1Q:17 year-over-year adjusted corporate EBITDA decline All Other U.S. RAC Revenue Contribution U.S. RAC Vehicle Carrying Costs Contribution Adjusted Corporate EBITDA $ in mill
Slide 7: Long-term Outperformance Opportunity
7 Long-term Outperformance Opportunity: • Hertz brand strength • Industry-leading loyalty programs • Strong partnerships • Ultimate Choice offering • Mature, robust retail car-sales network • Leading-edge systems platform Execution is Key Company is Structurally Capable of Achieving Historic Margins
Slide 8: Quarterly Overview
8 TOM KENNEDY CHIEF FINANCIAL OFFICER Hertz Global Holdings, Inc. Quarterly Overview
Slide 9: 1Q:17 Consolidated Results
9 1Q:17 Consolidated Results GAAP 1Q:17 Results 1Q:16 Results YoY Change Revenue $1,916M $1,983M (3)% Income (loss) from continuing operations before income taxes $(294)M $(76)M (287)% Net Income (loss) from continuing operations $(223)M $(52)M (329)% Diluted earnings (loss) per share from continuin
Slide 10: 1Q:17 U.S. RAC Revenue Performance
10 1Q:17 U.S. RAC Revenue Performance Revenue Days Total RPD Vehicle Utilization (bps) Capacity Total RPU (2%)(2%) (8%) 0% 6% 2% 1%1% (8%) (10%) (3%) 660540 (60) (2%) (5%) 2% 0% (2%) (4%) U.S. RAC (YoY quarterly results) Revenue is defined as total revenue excluding ancillary retail car sales. Capac
Slide 11: 1Q:17 U.S. RAC Vehicle Utilization
11 1Q:17 U.S. RAC Vehicle Utilization Vehicle Utilization YoY bps Inc/(Dec) Capacity level is timing related 1Q Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 • Rentable utilization 170 basis points lower 1Q:17 vs 1Q:16, as mild weather impacted demand in certain segments such as Insurance Replacement and certain su
Slide 12: 1Q:17 U.S. RAC Monthly Depreciation Per Unit
12 1Q:17 U.S. RAC Monthly Depreciation Per Unit 34% 24% 42% 35% 24% 41% Auction Retail Dealer Direct 1Q:17 1Q:16 Non-Program Vehicle Disposition Channel Mix Monthly Depreciation Per Unit YoY % $303 $278 $304 $321 $287 $248 $267 $269 $303 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Current Year Prior Year $348 +19
Slide 13: 1Q:17 International RAC
13 1Q:17 International RAC • 1Q:17 revenue decreased 5%, or 4% YoY when you exclude FX - Transaction days increased 1% despite the impact of leap year, and exiting certain underperforming accounts in the UK in 2H:16 - Total RPD declined 4% due primarily to the impact of the Easter holiday falling in
Slide 14: Liquidity / Balance Sheet Overview
14 LIQUIDITY / BALANCE SHEET OVERVIEW TOM KENNEDY CHIEF FINANCIAL OFFICER Hertz Global Holdings, Inc.
Slide 15: Liquidity and Debt Overview
15 3/31/17 Senior RCF Availability $939M Unrestricted Cash 785M Corporate Liquidity $1,724M Liquidity and Debt Overview • Since our Q4 2016 earnings call, we have: –Added $750M of U.S. RAC incremental VFN capacity committed through at least October 2018 –Completed a $500M Donlen-sponsored term ABS t
Slide 16: Limited Near-Term Non-Vehicle Debt Maturities
16 Limited Near-Term Non-Vehicle Debt Maturities 03/31/17 Hertz Global Non-Vehicle Debt Maturity Stack (1) (2) ($ in millions) $250 $450 $700 $500 $500 $800 $5 $7 $7 $7 $7 $7 $655 $1,700 2017 2018 2019 2020 2021 2022 2023 2024 Senior Notes Term Loan Undrawn Senior RCF 1 Excludes $28 million of Promi
Slide 17: First Lien Financial Maintenance Covenant
17 First Lien Financial Maintenance Covenant Consolidated First Lien Leverage Ratio as of 3/31/17 was 2.4x and was calculated as follows: – Unrestricted cash is capped at $500M; cap falls away post once Consolidated Gross Total Corporate Leverage Ratio is equal to or less than 6.0x for two consecuti
Slide 18: Q&A
Q&A NYSE: HTZ 18
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