htz-20220728
00016578530000047129false00016578532022-07-282022-07-280001657853htz:TheHertzCorporationMember2022-07-282022-07-280001657853us-gaap:CommonStockMember2022-07-282022-07-280001657853us-gaap:WarrantMember2022-07-282022-07-28




UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 28, 2022

HERTZ GLOBAL HOLDINGS, INC.
THE HERTZ CORPORATION
(Exact name of registrant as specified in its charter)
Delaware001-3766561-1770902
Delaware001-0754113-1938568
(State or other jurisdiction of
incorporation)
(Commission File Number)(I.R.S. Employer Identification No.)
8501 Williams Road
Estero,Florida33928
239301-7000
(Address, including Zip Code, and
telephone number, including area code,
of registrant's principal executive offices)
Not Applicable
Not Applicable
(Former name, former address and
former fiscal year, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on which Registered
Hertz Global Holdings, Inc.Common StockPar value $0.01 per shareHTZNasdaq Global Select
Hertz Global Holdings, Inc.Warrants to purchase common stockHTZWWNasdaq Global Select
The Hertz CorporationNoneNone None

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


  





 ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 28, 2022, Hertz Global Holdings, Inc. issued a press release announcing its second quarter 2022 financial results. A copy of the press release is attached as Exhibit 99.1 hereto.


ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits.

Exhibit 99.1 - Press Release of Hertz Global Holdings, Inc. dated July 28, 2022.

Exhibit 104.1 - Cover Page Interactive Data File (Embedded within the Inline XBRL document)

Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
 
























 SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HERTZ GLOBAL HOLDINGS, INC.
THE HERTZ CORPORATION
(each, a Registrant)
By:/s/ KENNY CHEUNG
Name:Kenny Cheung
Title:Executive Vice President and Chief Financial Officer
Date:  July 28, 2022



Document


Exhibit 99.1


HERTZ REPORTS SECOND QUARTER RESULTS:
REVENUE OF $2.3 BILLION, NET INCOME OF $940 MILLION, ADJUSTED CORPORATE EBITDA OF $764 MILLION, OPERATING CASH FLOW OF $708 MILLION AND ADJUSTED FREE CASH FLOW OF $484 MILLION
____________________________________________________________________________

“Our second quarter results were impressive and position us well for the peak summer season,” said Stephen Scherr, Hertz chief executive officer. “We produced record Adjusted Corporate EBITDA and adjusted free cash flow, taking advantage of positive market conditions. The hard work of our team and the resulting financial performance provided us with the opportunity to pursue investments in technology and a younger fleet, while returning capital to shareholders.”


ESTERO, Fla, July 28, 2022 - Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz", "Hertz Global" or the "Company") today reported results for its second quarter 2022.

HIGHLIGHTS

Total revenues of $2.3 billion
GAAP net income of $940 million, or $1.13 per diluted share
Adjusted Net Income of $520 million, or $1.22 per adjusted diluted share (reflects adjustments for fair value remeasurements to outstanding public warrants and certain derivative contracts, among other items)
Adjusted Corporate EBITDA of $764 million, a 33% margin
Operating cash flow of $708 million, adjusted operating cash flow of $585 million
Adjusted free cash flow of $484 million
Corporate liquidity of $2.5 billion at June 30, including $1.0 billion in unrestricted cash
Company repurchased 46.9 million common shares during the quarter

Revenue was $2.3 billion, up 25% year over year and 30% quarter over quarter, and Adjusted Corporate EBITDA was a second quarter record of $764 million. Adjusted free cash flow was a second quarter record of $484 million, reflecting increased free cash flow conversion. Our financial results for the second quarter reflect the continued strength of our underlying business, positive market forces and high demand for our services, as well as our team’s continued dedication to the customer. Results in the quarter further demonstrated the Company’s ability to deliver increased earnings and free cash flow, through efficient capital deployment, while still investing in our fleet and non-fleet capital assets.



1


SUMMARY RESULTS
_________________________________

Three Months Ended
June 30,
Percent Inc/(Dec)
2022 vs 2021
($ in millions, except earnings per share or where noted)20222021
Hertz Global - Consolidated
Total revenues$2,344 $1,873 25%
Adjusted net income (loss)(a)
$520 $408 27%
Adjusted diluted earnings (loss) per share(a)
$1.22 $2.55 (52)%
Adjusted Corporate EBITDA(a)
$764 $639 20%
Adjusted Corporate EBITDA Margin(a)
33 %34 %
Average Vehicles (in whole units)513,307 421,166 22%
Average Rentable Vehicles (in whole units)490,236 413,957 18%
Vehicle Utilization79 %79 %
Transaction Days (in thousands)35,444 29,885 19%
Total RPD (in dollars)(b)
$66.66 $62.22 7%
Total RPU Per Month (in whole dollars)(b)
$1,606 $1,497 7%
Depreciation Per Unit Per Month (in whole dollars)(b)
$71 $91 (22)%
Americas RAC Segment
Total revenues$1,973 $1,643 20%
Adjusted EBITDA$770 $664 16%
Adjusted EBITDA Margin39 %40 %
Average Vehicles (in whole units)422,113 350,122 21%
Average Rentable Vehicles (in whole units)399,588 344,150 16%
Vehicle Utilization80 %80 %
Transaction Days (in thousands)29,160 24,992 17%
Total RPD (in dollars)(b)
$67.67 $65.70 3%
Total RPU Per Month (in whole dollars)(b)
$1,646 $1,590 4%
Depreciation Per Unit Per Month (in whole dollars)(b)
$49 $77 (36)%
International RAC Segment
Total revenues$371 $230 61%
Adjusted EBITDA$92 $(1)NM
Adjusted EBITDA Margin25 %— %
Average Vehicles (in whole units)91,194 71,044 28%
Average Rentable Vehicles (in whole units)90,648 69,807 30%
Vehicle Utilization76 %77 %
Transaction Days (in thousands)6,284 4,893 28%
Total RPD (in dollars)(b)
$61.96 $44.45 39%
Total RPU Per Month (in whole dollars)(b)
$1,432 $1,039 38%
Depreciation Per Unit Per Month (in whole dollars)(b)
$172 $160 7%
NM - Not meaningful
NOTE: Hertz Global - consolidated key metrics reflect global rental car operations only and exclude Donlen fleet management and leasing
(a)    Represents a non-GAAP measure. See the accompanying reconciliations included in Supplemental Schedule II.
(b)    Based on December 31, 2021 foreign exchange rates.

2



LIQUIDITY AND CAPITAL RESOURCES
___________________________________________________________

During the second quarter 2022, the Company completed the $2 billion share repurchase program announced in November 2021, having repurchased 97.8 million cumulative shares. The Company also announced the authorization of a new $2 billion program and have repurchased approximately 9.3 million shares with $1.8 billion remaining under the new plan as of July 21, 2022.

During the second quarter 2022, the Company also took a series of actions to enhance its liquidity and capital allocation flexibility:

The Company successfully increased the aggregate committed amount of its first lien revolving credit facility ("First Lien RCF") from $1.5 billion to $1.9 billion and the sublimit for letters of credit from $1.4 billion to $1.8 billion.

The Company successfully increased the maximum principal amount that may be outstanding under its Series 2021-A Notes from $3.2 billion to $3.8 billion and extended the maturity date of the Class A tranche to June 2024.

The Company entered into the Repurchase Facility, under which the Company may execute repurchase transactions for its retained HVF III Series 2022 Class D Notes. As of June 30, 2022, $236 million was outstanding under this facility at a rate of SOFR plus 150 basis points.

And, the Company amended its Canadian Securitization to provide for aggregate maximum borrowings of CAD$450 million, for a seasonal commitment period through November 2022. Following the expiration of the seasonal commitment period, aggregate maximum borrowings will revert to CAD$350 million. The Canadian Securitization was also amended to extend the maturity to June 2024.

The Company's liquidity position was $2.5 billion at June 30, 2022, of which $1.0 billion was unrestricted cash.

In July 2022, Hertz increased the aggregate committed amount of the First Lien RCF by $55 million where the aggregate committed amount remains at $1.9 billion and the sublimit for letters of credit by $55 million where the aggregate sublimit remains at $1.8 billion.

Also in July 2022, an increase to the commitments for the Series 2021-A Notes was made, increasing the maximum principal amount that may be outstanding from $3.8 billion to $3.9 billion.


EARNINGS WEBCAST INFORMATION
__________________________________________________________

Hertz Global's live webcast and conference call to discuss its second quarter 2022 results will be held on July 28, 2022, at 8:30 a.m. Eastern Time. The conference call will be broadcast live in listen-only mode on the company’s investor relations website at IR.Hertz.com. If you would like to access the call by phone and ask a question, please go to https://register.vevent.com/register/BI2433af661d3d4b639a2e3512a894d4d6, and you will be provided with dial in details. Investors are encouraged to dial-in approximately 15 minutes prior to the call. A web replay will remain available on the website for approximately one year. The earnings release and related supplemental schedules containing the reconciliations of non-GAAP measures will be available on the Hertz website, IR.Hertz.com.


3


UNAUDITED FINANCIAL DATA, SUPPLEMENTAL SCHEDULES, NON-GAAP MEASURES AND DEFINITIONS
_________________________________________________________________________________________________________________________________________________________

Following is selected financial data of Hertz Global. Also included are Supplemental Schedules, which are provided to present segment results, and reconciliations of non-GAAP measures to their most comparable GAAP measure. Following the Supplemental Schedules, the Company provides definitions for terminology used throughout the earnings release and its view of the usefulness of non-GAAP measures to investors and management.

In the first quarter of 2022, the Company began using Average Rentable Vehicles when calculating Available Car Days, Total RPU and Utilization instead of Average Vehicles. Average Rentable Vehicles excludes vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels. Prior periods have been restated to conform with the revisions, as appropriate. The Company has also restated historical quarterly and annual periods beginning with first quarter 2019 to reflect this change and has posted this information to its investor relations website at IR.Hertz.com.


ABOUT HERTZ
________________________

The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. Additionally, The Hertz Corporation owns and operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit www.hertz.com.


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
________________________________________________________________________________________________________

Certain statements contained or incorporated by reference in this release, and in related comments by the Company’s management, include “forward-looking statements.” Forward-looking statements include information concerning the Company’s liquidity and its possible or assumed future results of operations, including descriptions of its business strategies. These statements often include words such as “believe,” “expect,” “project,” “potential,” “anticipate,” “intend,” “plan,” “estimate,” “seek,” “will,” “may,” “would,” “should,” “could,” “forecasts,” "guidance" or similar expressions. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate in these circumstances. The Company believes these judgments are reasonable, but you should understand that these statements are not guarantees of performance or results, and that the Company’s actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative, that may be revised or supplemented in subsequent reports on Form 10-K, 10-Q and 8-K filed or furnished to the SEC.

Important factors that could affect the Company's actual results and cause them to differ materially from those expressed in forward-looking statements include, among other things:
the length and severity of COVID-19 and the impact on the Company's vehicle rental business as a result of travel restrictions and business closures or disruptions, as well as the impact on its employee retention and talent management strategies;
the impact of macroeconomic conditions resulting in inflationary cost pressures resulting in labor and supply chain constraints, increased vehicle acquisition costs, and reductions in travel demand, among others;
the Company's ability to purchase adequate supplies of competitively priced vehicles at a reasonable cost as a result of the continuing global semiconductor microchip manufacturing shortage (the "Chip Shortage") and other raw material supply constraints;
the impact of the conflict between Russia and Ukraine on supply chains and raw materials for the automotive industry and uncertainty on overall consumer sentiment and travel demand, especially in Europe;
4


the impact on the value of the Company's non-program vehicles upon disposition when the Chip Shortage and other raw material supply constraints are alleviated;
the Company's ability to attract and retain key employees;
levels of travel demand, particularly business and leisure travel in the U.S. and in global markets;
significant changes in the competitive environment and the effect of competition in the Company's markets on rental volume and pricing;
occurrences that disrupt rental activity during the Company's peak periods;
the Company's ability to accurately estimate future levels of rental activity and adjust the number and mix of vehicles used in its rental operations accordingly;
the Company's ability to implement its business strategy, including its ability to implement plans to support a large scale electric vehicle fleet and to play a central role in the modern mobility ecosystem;
the Company's ability to adequately respond to changes in technology, customer demands and market competition;
the mix of program and non-program vehicles in the Company's fleet can lead to increased exposure to residual risk;
the Company's ability to dispose of vehicles in the used-vehicle market and use the proceeds of such sales to acquire replacement vehicles;
financial instability of the manufacturers of the Company's vehicles, which could impact its ability to fulfill obligations under repurchase or guaranteed depreciation programs;
an increase in the Company's vehicle costs or disruption to its rental activity due to safety recalls by the manufacturers of its vehicles;
the Company's access to third-party distribution channels and related prices, commission structures and transaction volumes;
the Company's ability to offer an excellent customer experience, and retain and increase customer loyalty and market share;
the Company's ability to maintain its network of leases and vehicle rental concessions at airports in the U.S. and internationally;
the Company's ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy;
major disruption in the Company's communication or centralized information networks or a failure to maintain, upgrade and consolidate its information technology systems;
the Company's ability to prevent the misuse or theft of information it possesses, including as a result of cyber security breaches and other security threats, as well as its ability to comply with privacy regulations;
risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anti-corruption or anti-bribery laws and the Company's ability to repatriate cash from non-U.S. affiliates without adverse tax consequences;
the Company's ability to utilize its net operating loss carryforwards;
risks relating to tax laws, including those that affect the Company's ability to deduct certain business interest expenses and offset previously-deferred tax gains, as well as any adverse determinations or rulings by tax authorities;
changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, including those related to accounting principles, that affect the Company's operations, its costs or applicable tax rates;
the recoverability of the Company's goodwill and indefinite-lived intangible assets when performing impairment analysis;
5


costs and risks associated with potential litigation and investigations, compliance with and changes in laws and regulations and potential exposures under environmental laws and regulations; and
the availability of additional or continued sources of financing for the Company's revenue earning vehicles and to refinance its existing indebtedness.

Additional information concerning these and other factors can be found in the Company's filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date of this release, and, except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
________________________________________________________________________________________________________________________________________________________
CONTACTS:
Hertz Investor Relations:Hertz Media Relations:
investorrelations@hertz.commediarelations@hertz.com
6



UNAUDITED FINANCIAL INFORMATION
____________________________________________________________

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions, except per share data)
2022202120222021
Revenues$2,344 $1,873 $4,154 $3,161 
Expenses:
Direct vehicle and operating1,199 946 2,252 1,724 
Depreciation of revenue earning vehicles and lease charges, net106 116 47 359 
Depreciation and amortization of non-vehicle assets36 50 69 104 
Selling, general and administrative257 172 492 321 
Interest expense, net:
Vehicle45 98 50 202 
Non-vehicle41 91 80 135 
Total interest expense, net86 189 130 337 
Other (income) expense, net(10)— (13)
Reorganization items, net— 633 — 677 
(Gain) from the sale of a business— (8)— (400)
Change in fair value of Public Warrants(461)— (511)— 
Total expenses1,225 2,088 2,479 3,109 
Income (loss) before income taxes1,119 (215)1,675 52 
Income tax (provision) benefit
(179)46 (309)(33)
Net income (loss)940 (169)1,366 19 
Net (income) loss attributable to noncontrolling interests— — 
Net income (loss) attributable to Hertz Global$940 $(168)$1,366 $21 
Weighted average number of shares outstanding:
Basic398 160 415 158 
Diluted424 160 443 158 
Earnings (loss) per share:
Basic$2.36 $(1.05)$3.29 $0.13 
Diluted$1.13 $(1.05)$1.93 $0.13 


7


UNAUDITED CONSOLIDATED BALANCE SHEETS
(In millions, except par value and share data)June 30, 2022December 31, 2021
ASSETS
Cash and cash equivalents$1,041 $2,258 
Restricted cash and cash equivalents:
Vehicle221 77 
Non-vehicle301 316 
Total restricted cash and cash equivalents522 393 
Total cash and cash equivalents and restricted cash and cash equivalents1,563 2,651 
Receivables:
Vehicle136 62 
Non-vehicle, net of allowance of $42 and $48, respectively
839 696 
Total receivables, net975 758 
Prepaid expenses and other assets1,094 1,017 
Revenue earning vehicles:
Vehicles13,962 10,836 
Less: accumulated depreciation(1,632)(1,610)
Total revenue earning vehicles, net12,330 9,226 
Property and equipment, net605 608 
Operating lease right-of-use assets1,562 1,566 
Intangible assets, net2,893 2,912 
Goodwill1,044 1,045 
Total assets$22,066 $19,783 
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable:
Vehicle$182 $56 
Non-vehicle477 516 
Total accounts payable659 572 
Accrued liabilities1,048 863 
Accrued taxes, net206 157 
Debt:
Vehicle10,411 7,921 
Non-vehicle2,981 2,986 
Total debt13,392 10,907 
Public Warrants811 1,324 
Operating lease liabilities1,493 1,510 
Self-insured liabilities470 463 
Deferred income taxes, net1,258 1,010 
Total liabilities19,337 16,806 
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value, no shares issued and outstanding
— — 
Common stock, $0.01 par value, 477,722,177 and 477,233,278 shares issued, respectively, and 368,386,372 and 449,782,424 shares outstanding, respectively
Treasury stock, at cost, 109,335,805 and 27,450,854 common shares, respectively
(2,321)(708)
Additional paid-in capital6,274 6,209 
Retained earnings (Accumulated deficit)(949)(2,315)
Accumulated other comprehensive income (loss)(280)(214)
Total stockholders' equity2,729 2,977 
Total liabilities and stockholders' equity$22,066 $19,783 

8


UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)2022202120222021
Cash flows from operating activities:
Net income (loss)$940 $(170)$1,366 $19 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and reserves for revenue earning vehicles165 145 145 420 
Depreciation and amortization, non-vehicle36 50 69 104 
Amortization of deferred financing costs and debt discount (premium)14 64 25 98 
Loss on extinguishment of debt— — 
Stock-based compensation charges36 — 64 
Provision for receivables allowance10 35 23 64 
Deferred income taxes, net146 (78)249 (16)
Reorganization items, net— 329 — 314 
(Gain) loss from the sale of a business— (8)— (400)
Change in fair value of Public Warrants(461)— (511)— 
(Gain) loss on financial instruments(21)(65)
Other(2)(8)(3)(10)
Changes in assets and liabilities:
Non-vehicle receivables(157)(141)(200)(214)
Prepaid expenses and other assets(47)20 (87)(67)
Operating lease right-of-use assets76 79 154 
Non-vehicle accounts payable(83)54 (32)94 
Accrued liabilities109 (73)233 (11)
Accrued taxes, net22 55 52 91 
Operating lease liabilities(13)(82)(93)(160)
Self-insured liabilities(12)15 (27)
Net cash provided by (used in) operating activities708 265 1,329 465 
Cash flows from investing activities:
Revenue earning vehicles expenditures(3,104)(2,619)(6,089)(4,136)
Proceeds from disposal of revenue earning vehicles1,416 513 2,887 1,199 
Non-vehicle capital asset expenditures(29)(8)(59)(17)
Proceeds from non-vehicle capital assets disposed of or to be disposed of10 
Collateral payments— (303)— (303)
Collateral returned in exchange for letters of credit114 19 114 
Return of (investment in) equity investments— — (15)— 
Proceeds from the sale of a business, net of cash sold— — — 818 
Other— (1)— (1)
Net cash provided by (used in) investing activities(1,710)(2,298)(3,251)(2,316)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt2,699 7,843 7,379 8,939 
Repayments of vehicle debt(1,332)(7,174)(4,824)(8,120)
Proceeds from issuance of non-vehicle debt— 2,579 — 3,139 
Repayments of non-vehicle debt(5)(6,340)(10)(6,341)
Payment of financing costs(14)(144)(38)(151)
Proceeds from Plan Sponsors— 2,781 — 2,781 
Proceeds from Rights Offering, net— 1,635 — 1,635 
Proceeds from the issuance of preferred stock, net— 1,433 — 1,433 
Distributions to common stockholders— (239)— (239)
Proceeds from exercises of Public Warrants— — — 
Share repurchases(881)— (1,647)— 
Early redemption payments— (85)— (85)
Contributions from (distributions to) noncontrolling interests— (5)— (15)
Other— — (4)— 
Net cash provided by (used in) financing activities467 2,284 859 2,976 
9


Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)2022202120222021
Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents(24)(25)(8)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents during the period(559)255 (1,088)1,117 
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period(a)
2,122 2,440 2,651 1,578 
Cash and cash equivalents and restricted cash and cash equivalents at end of period$1,563 $2,695 $1,563 $2,695 
(a)    Amounts include cash and cash equivalents and restricted cash and cash equivalents of Donlen which were held for sale as of December 31, 2020.

10


Supplemental Schedule I
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
______________________________________________________________________________________________________________________________________________________________________________________________________________

Three Months Ended June 30, 2022Three Months Ended June 30, 2021
(In millions)
Americas RACInternational
RAC
CorporateHertz GlobalAmericas RACInternational
RAC
All other operationsCorporateHertz Global
Revenues$1,973 $371 $— $2,344 $1,643 $230 $— $— $1,873 
Expenses:
Direct vehicle and operating1,002 197 — 1,199 793 154 — (1)946 
Depreciation of revenue earning vehicles and lease charges, net61 45 — 106 80 36 — — 116 
Depreciation and amortization of non-vehicle assets30 36 43 — 50 
Selling, general and administrative99 47 111 257 69 40 — 63 172 
Interest expense, net:
Vehicle35 10 — 45 77 21 — — 98 
Non-vehicle(13)— 54 41 (3)— — 94 91 
Total interest expense, net22 10 54 86 74 21 — 94 189 
Other (income) expense, net(1)(4)(6)(1)— (3)(10)
Reorganization items, net— — — — 94 12 — 527 633 
(Gain) from the sale of a business— — — — — — — (8)(8)
Change in fair value of Public Warrants— — (461)(461)— — — — — 
Total expenses1,213 299 (287)1,225 1,147 266 — 675 2,088 
Income (loss) before income taxes$760 $72 $287 1,119 $496 $(36)$— $(675)(215)
Income tax (provision) benefit(179)46 
Net income (loss)940 (169)
Net (income) loss attributable to noncontrolling interests— 
Net income (loss) attributable to Hertz Global$940 $(168)
NOTE: Effective in the second quarter of 2021, as a result of the sale of the Company's Donlen fleet management and leasing business on March 30, 2021, the All Other Operations reportable segment, which consisted primarily of the former Donlen business, was no longer deemed a reportable segment.

11


Supplemental Schedule I (continued)
HERTZ GLOBAL HOLDINGS, INC.
CONDENSED STATEMENT OF OPERATIONS BY SEGMENT
Unaudited
______________________________________________________________________________________________________________________________________________________________________________________________________________

Six Months Ended June 30, 2022Six Months Ended June 30, 2021
(In millions)
Americas RACInternational
RAC
CorporateHertz GlobalAmericas RACInternational
RAC
All other operationsCorporateHertz Global
Revenues$3,531 $623 $— $4,154 $2,610 $415 $136 $— $3,161 
Expenses:
Direct vehicle and operating 1,905 348 (1)2,252 1,434 279 1,724 
Depreciation of revenue earning vehicles and lease charges(32)79 — 47 290 69 — — 359 
Depreciation and amortization of non-vehicle assets56 69 87 104 
Selling, general and administrative185 89 218 492 121 70 10 120 321 
Interest expense, net:
Vehicle37 13 — 50 149 41 12 — 202 
Non-vehicle(21)— 101 80 (5)138 135 
Total interest expense, net16 13 101 130 144 42 13 138 337 
Other (income) expense, net(2)(7)— (7)(1)— (5)(13)
Reorganization items, net— — — — 80 12 (1)586 677 
(Gain) from the sale of a business— — — — — — — (400)(400)
Change in fair value of Public Warrants— — (511)(511)— — — — — 
Total expenses2,128 529 (178)2,479 2,149 480 29 451 3,109 
Income (loss) before income taxes$1,403 $94 $178 1,675 $461 $(65)$107 $(451)52 
Income tax (provision) benefit(309)(33)
Net income (loss)1,366 19 
Net (income) loss attributable to noncontrolling interests— 
Net income (loss) attributable to Hertz Global$1,366 $21 
NOTE: Effective in the second quarter of 2021, as a result of the sale of the Company's Donlen fleet management and leasing business on March 30, 2021, the All Other Operations reportable segment, which consisted primarily of the former Donlen business, was no longer deemed a reportable segment.


12


Supplemental Schedule II
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE - ADJUSTED NET INCOME (LOSS), ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE AND ADJUSTED CORPORATE EBITDA
Unaudited
______________________________________________________________________________________________________________________________________________________________________________________________________________
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions, except per share data)2022202120222021
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share:
Net income (loss) attributable to Hertz Global$940 $(168)$1,366 $21 
Adjustments:
Income tax provision (benefit)179 (46)309 33 
Vehicle and non-vehicle debt-related charges(a)(m)
14 68 26 104 
Restructuring and restructuring related charges(b)
15 37 21 50 
Acquisition accounting-related depreciation and amortization(c)
— 12 25 
Reorganization items, net(d)
— 633 — 677 
Pre-reorganization and non-debtor financing charges(e)
— 17 — 40 
Gain from the Donlen Sale(f)
— (8)— (400)
Unrealized (gains) losses on financial instruments(g)
(21)— (65)— 
Change in fair value of Public Warrants(461)— (511)— 
Other items(h)(n)
27 83 (78)
Adjusted pre-tax income (loss)(i)
693 551 1,230 472 
Income tax (provision) benefit on adjusted pre-tax income (loss)(j)
(173)(143)(307)(123)
Adjusted Net Income (Loss)$520 $408 $923 $349 
Weighted-average number of diluted shares outstanding424 160 443 158 
Adjusted Diluted Earnings (Loss) Per Share(k)
$1.22 $2.55 $2.08 $2.20 
Adjusted Corporate EBITDA:
Net income (loss) attributable to Hertz Global$940 $(168)$1,366 $21 
Adjustments:
Income tax provision (benefit)179 (46)309 33 
Non-vehicle depreciation and amortization(l)
36 50 69 104 
Non-vehicle debt interest, net41 91 80 135 
Vehicle debt-related charges(a)(m)
26 16 54 
Restructuring and restructuring related charges(b)
15 37 21 50 
Reorganization items, net(d)
— 633 — 677 
Pre-reorganization and non-debtor financing charges(e)
— 17 — 40 
Gain from the Donlen Sale(f)
— (8)— (400)
Unrealized (gains) losses on financial instruments(g)
(21)— (65)— 
Change in fair value of Public Warrants(461)— (511)— 
Other items(h)(o)
26 93 (72)
Adjusted Corporate EBITDA$764 $639 $1,378 $642 
,
13


Supplemental Schedule II (continued)

(a)Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.
(b)Represents charges incurred under restructuring actions as defined in U.S. GAAP, excluding impairments and asset write-downs. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. For the three and six months ended June 30, 2022, charges incurred related primarily to International RAC. For the three months ended June 30, 2021, charges incurred were $19 million, $10 million and $8 million for Corporate, International RAC and Americas RAC, respectively. For the six months ended June 30, 2021, charges incurred were $25 million, $17 million and $8 million for Corporate, International RAC and Americas RAC, respectively.
(c)Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.
(d)Represents charges incurred associated with the Reorganization and emergence from Chapter 11. The charges relate primarily to Corporate.
(in millions)Three Months Ended June 30, 2021Six Months Ended June 30, 2021
Professional fees and other bankruptcy related costs$199 $257 
Loss on extinguishment of debt191 191 
Backstop fee164 164 
Breakup fee77 77 
Contract settlements25 25 
Cancellation of share-based compensation grants(10)(10)
Net gain on settlement of liabilities subject to compromise(11)(22)
Other, net(2)(5)
Reorganization items, net$633 $677 
(e)    Represents charges incurred prior to the filing of the Chapter 11 Cases comprised of preparation charges for the Reorganization, such as professional fees. Also includes, certain non-debtor financing and professional fee charges. The amounts incurred for Americas RAC, International RAC and Corporate were $8 million, $2 million, and $7 million for the three months ended June 30, 2021, respectively. For Americas RAC, International RAC, All other operations and Corporate were $17 million, $5 million, $2 million and $17 million for the six months ended June 30, 2021, respectively.
(f)    Represents the gain from the sale of the Company's Donlen business on March 30, 2021, primarily associated with Corporate.
(g)    Represents unrealized gains (losses) on derivative financial instruments, primarily associated with Americas RAC.
(h)    Represents miscellaneous items. For 2022, primarily includes bankruptcy claims, certain professional fees and charges related to the settlement of bankruptcy claims. For 2021, includes $100 million due to the suspension of depreciation in the first half of the year for the Donlen leasing and fleet management operations while classified as held for sale in all other operations, partially offset by letter of credit fees recorded in the first half of the year in Corporate and charges for a multiemployer pension plan withdrawal liability recorded in the first quarter in Corporate.
14


(i)    Adjustments by caption on a pre-tax basis were as follows:
Increase (decrease) to expensesThree Months Ended June 30,Six Months Ended June 30,
(In millions)2022202120222021
Direct vehicle and operating$(19)$(28)$(21)$59 
Selling, general and administrative(6)(36)(11)(67)
Interest expense, net:
Vehicle(9)(34)(16)(73)
Non-vehicle(8)(44)(14)(50)
Total interest expense, net(17)(78)(30)(123)
Other income (expense), net(4)(10)
Reorganization items, net— (633)— (677)
Gain from the Donlen Sale— — 400 
Change in fair value of Public Warrants461 — 511 — 
Total adjustments$426 $(765)$445 $(418)
(j)    Derived utilizing a combined statutory rate of 25% and 26% for the three and six months ended June 30, 2022 and 2021, respectively, applied to the respective Adjusted Pre-tax Income (Loss).
(k)    Adjustments used to reconcile diluted earnings (loss) per share on a GAAP basis to Adjusted Diluted Earnings (Loss) Per Share are comprised of the same adjustments, inclusive of the tax impact, used to reconcile net income (loss) to Adjusted Net Income (Loss) divided by the weighted-average diluted shares outstanding during the period.
(l)    Non-vehicle depreciation and amortization expense for Americas RAC, International RAC and Corporate for the three months ended June 30, 2022 was $30 million, $4 million and $2 million, respectively. For the three months ended June 30, 2021 was $43 million, $4 million, and $3 million for Americas RAC, International RAC and Corporate, respectively. Non-vehicle depreciation and amortization for Americas RAC, International RAC and Corporate for the six months ended June 30, 2022 were $56 million, $7 million and $6 million, respectively. For the six months ended June 30, 2021 were $87 million, $9 million, $2 million and $6 million, respectively, for Americas RAC, International RAC, All other operations and Corporate.
(m)    Vehicle debt-related charges for Americas RAC and International RAC for the three months ended June 30, 2022 were $3 million and $6 million, respectively, and were $21 million and $5 million, respectively, for the three months ended June 30, 2021. Vehicle debt-related charges for Americas RAC and International RAC for the six months ended June 30, 2022 were $9 million and $7 million, respectively. For the six months ended June 30, 2021, vehicle debt-related charges for Americas RAC, International RAC and All other operations were $42 million, $10 million and $2 million, respectively.
(n)    In 2022, includes letter of credit fees recorded in Corporate.
(o)    In 2022, includes an adjustment for certain non-cash stock-based compensation charges recorded in Corporate.
15


Supplemental Schedule III
HERTZ GLOBAL HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURE - ADJUSTED OPERATING CASH FLOW
AND ADJUSTED FREE CASH FLOW
Unaudited
________________________________________________________________________________________________________________________________________________________

Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)2022202120222021
ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW:
Net cash provided by (used in) operating activities$708 $265 $1,329 $465 
Depreciation and reserves for revenue earning vehicles(165)(145)(145)(420)
Bankruptcy related payments - post emergence42 — 78 — 
Adjusted operating cash flow585 120 1,262 45 
Non-vehicle capital asset expenditures, net(24)(2)(53)(7)
Adjusted operating cash flow before vehicle investment561 118 1,209 38 
Net fleet growth after financing(77)(1,420)(646)(1,827)
Noncontrolling interests— (4)— (7)
Adjusted free cash flow$484 $(1,306)$563 $(1,796)
CALCULATION OF NET FLEET GROWTH AFTER FINANCING:
Revenue earning vehicles expenditures
$(3,104)$(2,619)$(6,089)$(4,136)
Proceeds from disposal of revenue earning vehicles
1,416 513 2,887 1,199 
Revenue earning vehicles capital expenditures, net(1,688)(2,106)(3,202)(2,937)
Depreciation and reserves for revenue earning vehicles
165 145 145 420 
Financing activity related to vehicles:
Borrowings2,699 7,843 7,379 $8,939 
Payments(1,332)(7,174)(4,824)$(8,120)
Restricted cash changes, vehicle79 (128)(144)$(129)
Net financing activity related to vehicles1,446 541 2,411 690 
Net fleet growth after financing$(77)$(1,420)$(646)$(1,827)



16


Supplemental Schedule IV
HERTZ GLOBAL HOLDINGS, INC.
NET DEBT CALCULATION
Unaudited
______________________________________________________________________________________________________________________________________________________________________________________________________________

As of June 30, 2022As of December 31, 2021
(In millions)VehicleNon-VehicleTotalVehicleNon-VehicleTotal
Term loans$— $1,532 $1,532 $— $1,539 $1,539 
Senior notes— 1,500 1,500 — 1,500 1,500 
U.S. vehicle financing (HVF III)9,233 — 9,233 7,001 — 7,001 
International vehicle financing (Various)1,147 — 1,147 860 — 860 
Other debt82 13 95 93 16 109 
Debt issue costs, discounts and premiums(51)(64)(115)(33)(69)(102)
Debt as reported in the balance sheet10,411 2,981 13,392 7,921 2,986 10,907 
Add:
Debt issue costs, discounts and premiums51 64 115 33 69 102 
Less:
Cash and cash equivalents— 1,041 1,041 — 2,258 2,258 
Restricted cash221 — 221 77 — 77 
Restricted cash and restricted cash equivalents associated with Term C Loan— 245 245 — 245 245 
Net Debt$10,241 $1,759 $12,000 $7,877 $552 $8,429 
Corporate leverage ratio(a)
0.6x0.3x
(a)    Corporate leverage ratio is calculated as non-vehicle net debt divided by LTM Adjusted Corporate EBITDA.
17



Supplemental Schedule V
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
________________________________________________________________________________________________________________________________________________________

Global RAC
Three Months Ended
June 30,
Percent Inc/(Dec)Six Months Ended June 30,Percent Inc/(Dec)
($ in millions, except where noted)2022202120222021
Total RPD
Revenues$2,344$1,873$4,154$3,025
Foreign currency adjustment(a)
19(14)21(23)
Total Revenues - adjusted for foreign currency$2,363$1,859$4,175$3,002
Transaction Days (in thousands)35,44429,88566,06554,534
Total RPD (in dollars)(b)
$66.66$62.22%$63.19$55.0515 %
Total Revenue Per Unit Per Month
Total Revenues - adjusted for foreign currency$2,363$1,859$4,175$3,002
Average Rentable Vehicles (in whole units)(c)
490,236413,957472,871387,710
Total revenue per unit (in whole dollars)$4,819$4,492$8,828$7,743
Number of months in period (in whole units)3366
Total RPU Per Month (in whole dollars)(b)(c)
$1,606$1,497%$1,471$1,29014 %
Vehicle Utilization
Transaction Days (in thousands)35,44429,88566,06554,534
Average Rentable Vehicles (in whole units)(c)
490,236413,957472,871387,710
Number of days in period (in whole units)9191181181
Available Car Days (in thousands)44,61537,67185,61670,216
Vehicle Utilization(c)(d)
79%79%77%78%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net$106$116$47$359
Foreign currency adjustment(a) 
3(1)3(3)
Adjusted depreciation of revenue earning vehicles and lease charges
$109$115$50$356
Average Vehicles (in whole units)513,307421,166497,259394,383
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$213$273$100$903
Number of months in period (in whole units)3366
Depreciation Per Unit Per Month (in whole dollars)
$71$91(22)%$17$151(89)%
Note: Global RAC represents Americas RAC and International RAC segment information on a combined basis and excludes Corporate and the Company's former Donlen leasing operations which were sold on March 30, 2021.

(a)Based on December 31, 2021 foreign exchange rates.
(b)Effective in the third quarter of 2021, the Company revised its calculation of Total RPD and Total RPU to include ancillary retail vehicle sales revenues.
(c)Effective in the first quarter of 2022, the Company revised its calculation of Total RPU and Vehicle Utilization to use Average Rentable Vehicles in the denominator which excludes vehicles for sale on the Company's retail lots or actively in the process of being sold through other disposition channels.
(d)Calculated as Transaction Days divided by Available Car Days.

18


Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
________________________________________________________________________________________________________________________________________________________

Americas RAC
Three Months Ended
June 30,
Percent Inc/(Dec)Six Months Ended June 30,Percent Inc/(Dec)
($ in millions, except where noted)2022202120222021
Total RPD
Revenues$1,973$1,643$3,531$2,610
Foreign currency adjustment(a)
(1)(1)
Total Revenues - adjusted for foreign currency$1,973$1,642$3,531$2,609
Transaction Days (in thousands)29,16024,99254,73945,243
Total RPD (in dollars)(b)
$67.67$65.70%$64.50$57.6712 %
Total Revenue Per Unit Per Month
Total Revenues - adjusted for foreign currency$1,973$1,642$3,531$2,609
Average Rentable Vehicles (in whole units)(c)
399,588344,150386,363320,232
Total revenue per unit (in whole dollars)$4,938$4,771$9,139$8,147
Number of months in period (in whole units)3366
Total RPU Per Month (in whole dollars)(b)(c)
$1,646$1,590%$1,523$1,35812 %
Vehicle Utilization
Transaction Days (in thousands)29,16024,99254,73945,243
Average Rentable Vehicles (in whole units)(c)
399,588344,150386,363320,232
Number of days in period (in whole units)9191181181
Available Car Days (in thousands)36,36631,31969,95258,000
Vehicle Utilization(c)(d)
80%80 %78 %78 %
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net$61$80$(32)$290
Foreign currency adjustment(a) 
11
Adjusted depreciation of revenue earning vehicles and lease charges
$61$81$(32)$291
Average Vehicles (in whole units)422,113350,122409,867325,364
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$145$231$(78)$894
Number of months in period (in whole units)3366
Depreciation Per Unit Per Month (in whole dollars)
$49$77(36)%$(13)$149NM
NM - Not meaningful
(a)Based on December 31, 2021 foreign exchange rates.
(b)Effective in the third quarter of 2021, the Company revised its calculation of Total RPD and Total RPU to include ancillary retail vehicle sales revenues.
(c)Effective in the first quarter of 2022, the Company revised its calculation of Total RPU and Vehicle Utilization to use Average Rentable Vehicles in the denominator which excludes vehicles for sale on the Company's retail lots or actively in the process of being sold through other disposition channels.
(d)Calculated as Transaction Days divided by Available Car Days.

19


Supplemental Schedule V (continued)
HERTZ GLOBAL HOLDINGS, INC.
KEY METRICS CALCULATIONS
REVENUE, UTILIZATION AND DEPRECIATION
Unaudited
________________________________________________________________________________________________________________________________________________________

International RAC
Three Months Ended June 30,Percent Inc/(Dec)Six Months Ended June 30,Percent Inc/(Dec)
($ in millions, except where noted)2022202120222021
Total RPD
Revenues$371$230$623$415
Foreign currency adjustment(a)
18(12)21(22)
Total Revenues - adjusted for foreign currency$389$218$644$393
Transaction Days (in thousands)6,2844,89311,3269,291
Total RPD (in dollars)(b)
$61.96$44.4539 %$56.82$42.3134 %
Total Revenue Per Unit Per Month
Total Revenues - adjusted for foreign currency$389$218$644$393
Average Rentable Vehicles (in whole units)(c)
90,64869,80786,50867,478
Total revenue per unit (in whole dollars)$4,295$3,116$7,440$5,825
Number of months in period (in whole units)3366
Total RPU Per Month (in whole dollars)(b)(c)
$1,432$1,03938 %$1,240$97128 %
Vehicle Utilization
Transaction Days (in thousands)6,2844,89311,3269,291
Average Rentable Vehicles (in whole units)(c)
90,64869,80786,50867,478
Number of days in period (in whole units)9191181181
Available Car Days (in thousands)8,2486,35215,66412,216
Vehicle Utilization(c)(d)
76%77%72%76%
Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net$45$36$79$69
Foreign currency adjustment(a) 
3(2)3(4)
Adjusted depreciation of revenue earning vehicles and lease charges
$48$34$82$65
Average Vehicles (in whole units)91,19471,04487,39269,019
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)
$526$480$934$948
Number of months in period (in whole units)3366
Depreciation Per Unit Per Month (in whole dollars)
$172$160%$156$158(2)%
(a)Based on December 31, 2021 foreign exchange rates.
(b)Effective in the third quarter of 2021, the Company revised its calculation of Total RPD and Total RPU to include ancillary retail vehicle sales revenues.
(c)Effective in the first quarter of 2022, the Company revised its calculation of Total RPU and Vehicle Utilization to use Average Rentable Vehicles in the denominator which excludes vehicles for sale on the Company's retail lots or actively in the process of being sold through other disposition channels.
(d)Calculated as Transaction Days divided by Available Car Days.



20


NON-GAAP MEASURES AND KEY METRICS
___________________________________________________________________

The term “GAAP” refers to accounting principles generally accepted in the United States. Adjusted EBITDA is the Company's segment measure of profitability and complies with GAAP when used in that context.

NON-GAAP MEASURES

Non-GAAP m