DELAWARE | 001-37665 | 61-1770902 | ||
DELAWARE | 001-07541 | 13-1938568 | ||
(State of incorporation) | (Commission File Number) | (I.R.S Employer Identification No.) | ||
8501 Williams Road | ||||
Estero, Florida 33928 | ||||
8501 Williams Road | ||||
Estero, Florida 33928 | ||||
(Address of principal executive offices, including zip code) | ||||
(239) 301-7000 | ||||
(239) 301-7000 | ||||
(Registrant’s telephone number, including area code) |
HERTZ GLOBAL HOLDINGS, INC. THE HERTZ CORPORATION | ||
(Registrant) | ||
By: | /s/ Thomas C. Kennedy | |
Name: | Thomas C. Kennedy | |
Title: | Senior Executive Vice President and Chief Financial Officer |
• | Year-over-year worldwide customer satisfaction improved for the Hertz, Dollar and Thrifty brands by more than 4 points for the second quarter 2016 and nearly 5 points for the first half 2016, continuing a trend from 2015. Customer satisfaction for the Hertz brand reached a record-level score on a worldwide basis for both the second quarter and year-to-date. |
• | The Company achieved cost savings of approximately $100 million during the second quarter 2016 and is on pace to achieve its previously announced target of $350 million of full year 2016 cost savings. In addition |
• | Total average vehicles for the quarter, including Donlen leased vehicles, totaled 845,500, a 1% decline versus the second quarter 2015. |
• | U.S. RAC vehicle utilization rose 700 basis points to 82%, driven primarily by a 6% increase in transaction days coupled with a 2% decline in average vehicles due to disciplined capacity and vehicle management. |
• | U.S. RAC unit revenues, which is defined as total revenue per available car day, improved by 10 basis points year-over-year, driven primarily by the 700 basis point improvement in vehicle utilization compared to the same period last year. |
• | The Company achieved a net non-vehicle debt to adjusted corporate EBITDA leverage ratio of 4.5 times at June 30, 2016. The Company noted that it remains on track to achieve its previously disclosed 2016 year-end leverage target of at or below 3.5 times. |
• | The Company successfully completed the separation of its equipment rental business resulting in the receipt of approximately $2.0 billion of cash payments that were used to pay down a $2.1 billion term loan that was scheduled to mature in 2018. |
• | The Company further strengthened its capital structure by successfully completing approximately $4.4 billion in financings during the quarter. There are no significant maturities of non-vehicle debt until 2019. |
• | Non-vehicle cash interest expense is expected to decline by approximately $90 million on an annual basis, of which $45 million will be realized in the second half of 2016, related to the spin and refinancing activity. |
• | The Company substantially transitioned its Firefly operations in the U.S. to its Thrifty brand as part of a U.S. market focus on its Hertz, Dollar and Thrifty brands. |
• | During the second quarter, the Company made a strategic investment in Luxe, an app-based valet parking company. |
• | At the end of the second quarter, the Company reached and launched one-year vehicle rental supply agreements with ride-sharing companies Uber and Lyft. |
U.S. RAC(1) | Three Months Ended June 30, | Percent Inc/(Dec) | |||||||||
($ in millions, except where noted) | 2016 | 2015 | |||||||||
Total Revenues | $ | 1,584 | $ | 1,615 | (2 | )% | |||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 417 | $ | 380 | 10 | % | |||||
Income (loss) from continuing operations before income taxes | $ | 104 | $ | 153 | (32 | )% | |||||
Adjusted pre-tax income (loss) | $ | 143 | $ | 195 | (27 | )% | |||||
Adjusted pre-tax income margin | 9 | % | 12 | % | (304 | ) | bps | ||||
Adjusted Corporate EBITDA | $ | 168 | $ | 224 | (25 | )% | |||||
Adjusted Corporate EBITDA margin | 11 | % | 14 | % | (326 | ) | bps | ||||
Average vehicles | 500,000 | 511,700 | (2 | )% | |||||||
Transaction days (in thousands) | 37,190 | 34,977 | 6 | % | |||||||
Total RPD (in whole dollars) | $ | 42.11 | $ | 45.80 | (8 | )% | |||||
Revenue per available car day (in whole dollars) | $ | 34.42 | $ | 34.40 | — | % | |||||
Net depreciation per unit per month (in whole dollars) | $ | 278 | $ | 248 | 12 | % |
International RAC(1) | Three Months Ended June 30, | Percent Inc/(Dec) | |||||||||
($ in millions, except where noted) | 2016 | 2015 | |||||||||
Total Revenues | $ | 540 | $ | 556 | (3 | )% | |||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 98 | $ | 101 | (3 | )% | |||||
Income (loss) from continuing operations before income taxes | $ | 29 | $ | 36 | (19 | )% | |||||
Adjusted pre-tax income (loss) | $ | 34 | $ | 45 | (24 | )% | |||||
Adjusted pre-tax income margin | 6 | % | 8 | % | (179 | ) | bps | ||||
Adjusted Corporate EBITDA | $ | 42 | $ | 54 | (22 | )% | |||||
Adjusted Corporate EBITDA margin | 8 | % | 10 | % | (193 | ) | bps | ||||
Average vehicles | 178,600 | 173,700 | 3 | % | |||||||
Transaction days (in thousands) | 12,511 | 12,523 | — | % | |||||||
Total RPD (in whole dollars) | $ | 42.04 | $ | 42.72 | (2 | )% | |||||
Revenue per available car day (in whole dollars) | $ | 32.36 | $ | 33.85 | (4 | )% | |||||
Net depreciation per unit per month (in whole dollars) | $ | 179 | $ | 186 | (4 | )% |
All Other Operations(1) | Three Months Ended June 30, | Percent Inc/(Dec) | |||||||||
($ in millions) | 2016 | 2015 | |||||||||
Total Revenues | $ | 146 | $ | 146 | — | % | |||||
Adjusted pre-tax income (loss) | $ | 17 | $ | 17 | — | % | |||||
Adjusted pre-tax income margin | 12 | % | 12 | % | — | bps | |||||
Adjusted Corporate EBITDA | $ | 16 | $ | 15 | 7 | % | |||||
Adjusted Corporate EBITDA margin | 11 | % | 10 | % | 69 | bps | |||||
Average vehicles - Donlen | 166,900 | 165,600 | 1 | % |
Full Year 2016 Forecast | |||
Adjusted Corporate EBITDA(2) | $850M | to | $950M |
Non-vehicle capital expenditures, net | $125M | to | $150M |
Non-vehicle cash interest expense | $280M | to | $290M |
Cash income taxes | $100M | to | $125M |
Free cash flow(2) | $500M | to | $600M |
U.S. RAC net depreciation per unit per month(2) | $290 | to | $300 |
U.S. RAC fleet capacity growth | (2.0)% | to | (3.0)% |
U.S. RAC revenue growth | —% | to | (1.5)% |
Adjusted earnings per share**(2) | $2.75 | to | $3.50 |
CONTACTS: | |
Investor Relations: | Media: |
Leslie Hunziker | Hertz Media Relations |
(239) 301-6800 | (844) 845-2180 (toll free) |
investorrelations@hertz.com | mediarelations@hertz.com |
Three Months Ended June 30, | As a Percentage of Total Revenues | Six Months Ended June 30, | As a Percentage of Total Revenues | ||||||||||||||||||||||||
(In millions, except per share data) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Total revenues | $ | 2,270 | $ | 2,317 | 100 | % | 100 | % | $ | 4,253 | $ | 4,415 | 100 | % | 100 | % | |||||||||||
Expenses: | |||||||||||||||||||||||||||
Direct vehicle and operating | 1,267 | 1,290 | 56 | % | 56 | % | 2,425 | 2,492 | 57 | % | 56 | % | |||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | 629 | 597 | 28 | % | 26 | % | 1,245 | 1,228 | 29 | % | 28 | % | |||||||||||||||
Selling, general and administrative | 234 | 251 | 10 | % | 11 | % | 459 | 471 | 11 | % | 11 | % | |||||||||||||||
Interest expense, net: | |||||||||||||||||||||||||||
Vehicle | 72 | 62 | 3 | % | 3 | % | 140 | 123 | 3 | % | 3 | % | |||||||||||||||
Non-vehicle | 102 | 87 | 4 | % | 4 | % | 185 | 173 | 4 | % | 4 | % | |||||||||||||||
Total interest expense, net | 174 | 149 | 8 | % | 6 | % | 325 | 296 | 8 | % | 7 | % | |||||||||||||||
Other (income) expense, net | 1 | (8 | ) | — | % | — | % | (89 | ) | (1 | ) | (2 | )% | — | % | ||||||||||||
Total expenses | 2,305 | 2,279 | 102 | % | 98 | % | 4,365 | 4,486 | 103 | % | 102 | % | |||||||||||||||
Income (loss) from continuing operations before income taxes | (35 | ) | 38 | (2 | )% | 2 | % | (112 | ) | (71 | ) | (3 | )% | (2 | )% | ||||||||||||
(Provision) benefit for taxes on income (loss) of continuing operations | 7 | (25 | ) | — | % | (1 | )% | 32 | 6 | 1 | % | — | % | ||||||||||||||
Net income (loss) from continuing operations | (28 | ) | 13 | (1 | )% | 1 | % | (80 | ) | (65 | ) | (2 | )% | (1 | )% | ||||||||||||
Net income (loss) from discontinued operations | (15 | ) | 23 | (1 | )% | 1 | % | (13 | ) | 31 | — | % | 1 | % | |||||||||||||
Net Income (loss) | $ | (43 | ) | $ | 36 | (2 | )% | 2 | % | $ | (93 | ) | $ | (34 | ) | (2 | )% | (1 | )% | ||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||
Basic | 85 | 92 | (b) | 85 | 92 | (b) | |||||||||||||||||||||
Diluted | 85 | 92 | (b) | 85 | 92 | (b) | |||||||||||||||||||||
Earnings (loss) per share - basic and diluted: | |||||||||||||||||||||||||||
Basic earnings (loss) per share from continuing operations | $ | (0.33 | ) | $ | 0.14 | $ | (0.94 | ) | $ | (0.71 | ) | ||||||||||||||||
Basic earnings (loss) per share from discontinued operations | (0.18 | ) | 0.25 | (0.15 | ) | 0.34 | |||||||||||||||||||||
Basic earnings (loss) per share | $ | (0.51 | ) | $ | 0.39 | $ | (1.09 | ) | $ | (0.37 | ) | ||||||||||||||||
Diluted earnings (loss) per share from continuing operations | $ | (0.33 | ) | $ | 0.14 | $ | (0.94 | ) | $ | (0.71 | ) | ||||||||||||||||
Diluted earnings (loss) per share from discontinued operations | (0.18 | ) | 0.25 | (0.15 | ) | 0.34 | |||||||||||||||||||||
Diluted earnings (loss) per share | $ | (0.51 | ) | $ | 0.39 | $ | (1.09 | ) | $ | (0.37 | ) | ||||||||||||||||
Adjusted pre-tax income (loss) (a) | $ | 55 | $ | 118 | 2 | % | 5 | % | $ | (53 | ) | $ | 77 | (1 | )% | 2 | % | ||||||||||
Adjusted net income (loss)(a) | $ | 35 | $ | 74 | 2 | % | 3 | % | $ | (33 | ) | $ | 49 | (1 | )% | 1 | % | ||||||||||
Adjusted earnings (loss) per share(a) | $ | 0.41 | $ | 0.80 | — | % | — | % | $ | (0.39 | ) | $ | 0.53 | — | % | — | % | ||||||||||
Adjusted Corporate EBITDA (a) | $ | 184 | $ | 246 | 8 | % | 11 | % | $ | 212 | $ | 337 | 5 | % | 8 | % |
(a) | Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedules II and III. |
(b) | The weighted average number of basic and diluted shares for the three and six months ended June 30, 2015 is presented as adjusted for the one-to-five distribution ratio as a result of the Spin-Off. |
(In millions) | June 30, 2016 | December 31, 2015 | |||||
Cash and cash equivalents | $ | 1,285 | $ | 474 | |||
Total restricted cash | 318 | 333 | |||||
Revenue earning vehicles: | |||||||
U.S. Rental Car | 8,685 | 7,600 | |||||
International Rental Car | 2,798 | 1,858 | |||||
All Other Operations | 1,326 | 1,288 | |||||
Total revenue earning vehicles, net | 12,809 | 10,746 | |||||
Total assets | 22,020 | 23,514 | |||||
Total debt | 15,392 | 15,770 | |||||
Net vehicle debt (a) | 10,568 | 9,561 | |||||
Net non-vehicle debt (a) | 3,346 | 5,519 | |||||
Total equity | 1,609 | 2,019 |
(a) | Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule VI. |
Six Months Ended June 30, | |||||||
(In millions) | 2016 | 2015 | |||||
Cash from continuing operations provided by (used in): | |||||||
Operating activities | $ | 1,014 | $ | 1,161 | |||
Investing activities | (1,929 | ) | (2,862 | ) | |||
Financing activities | 1,718 | 1,771 | |||||
Effect of exchange rate changes | 8 | (16 | ) | ||||
Net change in cash and cash equivalents | $ | 811 | $ | 54 | |||
Fleet growth (a) | $ | 130 | $ | 92 | |||
Free cash flow (a) | (101 | ) | (15 | ) |
(a) | Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedules IV and V. |
Three Months Ended June 30, | Percent Inc/(Dec) | Six Months Ended June 30, | Percent Inc/(Dec) | ||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||
U.S. RAC | |||||||||||||||||||||||
Transaction days (in thousands) | 37,190 | 34,977 | 6 | % | 69,932 | 67,014 | 4 | % | |||||||||||||||
Total RPD(a) | $ | 42.11 | $ | 45.80 | (8 | )% | $ | 42.23 | $ | 46.41 | (9 | )% | |||||||||||
Revenue per available car day(a) | $ | 34.42 | $ | 34.40 | — | % | $ | 33.80 | $ | 34.33 | (2 | )% | |||||||||||
Average vehicles | 500,000 | 511,700 | (2 | )% | 480,100 | 500,500 | (4 | )% | |||||||||||||||
Vehicle utilization | 82 | % | 75 | % | 700 | bps | 80 | % | 74 | % | 600 | bps | |||||||||||
Net depreciation per unit per month(a) | $ | 278 | $ | 248 | 12 | % | $ | 290 | $ | 267 | 9 | % | |||||||||||
Program vehicles as a percentage of total average vehicles at period end | 12 | % | 29 | % | (1,700 | ) | bps | 12 | % | 29 | % | (1,700 | ) | bps | |||||||||
Adjusted pre-tax income (loss)(in millions)(a) | $ | 143 | $ | 195 | (27 | )% | $ | 138 | $ | 265 | (48 | )% | |||||||||||
International RAC | |||||||||||||||||||||||
Transaction days (in thousands) | 12,511 | 12,523 | — | % | 22,613 | 22,298 | 1 | % | |||||||||||||||
Total RPD(a)(b) | $ | 42.04 | $ | 42.72 | (2 | )% | $ | 42.45 | $ | 42.56 | — | % | |||||||||||
Revenue per available car day(a)(b) | $ | 32.36 | $ | 33.85 | (4 | )% | $ | 32.30 | $ | 33.02 | (2 | )% | |||||||||||
Average vehicles | 178,600 | 173,700 | 3 | % | 163,300 | 158,800 | 3 | % | |||||||||||||||
Vehicle utilization | 77 | % | 79 | % | (200 | ) | bps | 76 | % | 78 | % | (200 | ) | bps | |||||||||
Net depreciation per unit per month(a)(b) | $ | 179 | $ | 186 | (4 | )% | $ | 186 | $ | 197 | (6 | )% | |||||||||||
Program vehicles as a percentage of total average vehicles at period end | 45 | % | 46 | % | (100 | ) | bps | 45 | % | 46 | % | (100 | ) | bps | |||||||||
Adjusted pre-tax income (loss)(in millions)(a) | $ | 34 | $ | 45 | (24 | )% | $ | 36 | $ | 52 | (31 | )% | |||||||||||
All Other Operations | |||||||||||||||||||||||
Average vehicles — Donlen | 166,900 | 165,600 | 1 | % | 166,900 | 167,100 | — | % | |||||||||||||||
Adjusted pre-tax income (loss) (in millions)(a) | $ | 17 | $ | 17 | — | % | $ | 35 | $ | 31 | 13 | % |
(a) | Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedules III and VI. |
(b) | Based on December 31, 2015 foreign exchange rates. |
Three Months Ended June 30, 2016 | Three Months Ended June 30, 2015 | ||||||||||||||||||||||||||||||||||||||
(In millions) | U.S. Rental Car | Int'l Rental Car | All Other Operations | Corporate | Hertz Global | U.S. Rental Car | Int'l Rental Car | All Other Operations | Corporate | Hertz Global | |||||||||||||||||||||||||||||
Total revenues: | $ | 1,584 | $ | 540 | $ | 146 | $ | — | $ | 2,270 | $ | 1,615 | $ | 556 | $ | 146 | $ | — | $ | 2,317 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||||||
Direct vehicle and operating | 916 | 341 | 6 | 4 | 1,267 | 942 | 332 | 6 | 10 | 1,290 | |||||||||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | 417 | 98 | 114 | — | 629 | 380 | 101 | 116 | — | 597 | |||||||||||||||||||||||||||||
Selling, general and administrative | 103 | 57 | 8 | 66 | 234 | 100 | 69 | 8 | 74 | 251 | |||||||||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||||||||||||||||||
Vehicle | 53 | 14 | 5 | — | 72 | 43 | 16 | 3 | — | 62 | |||||||||||||||||||||||||||||
Non-vehicle | (8 | ) | 1 | (1 | ) | 110 | 102 | (2 | ) | 2 | (1 | ) | 88 | 87 | |||||||||||||||||||||||||
Total interest expense, net | 45 | 15 | 4 | 110 | 174 | 41 | 18 | 2 | 88 | 149 | |||||||||||||||||||||||||||||
Other (income) expense, net | (1 | ) | — | — | 2 | 1 | (1 | ) | — | — | (7 | ) | (8 | ) | |||||||||||||||||||||||||
Total expenses | 1,480 | 511 | 132 | 182 | 2,305 | 1,462 | 520 | 132 | 165 | 2,279 | |||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 104 | $ | 29 | $ | 14 | $ | (182 | ) | (35 | ) | $ | 153 | $ | 36 | $ | 14 | $ | (165 | ) | 38 | ||||||||||||||||||
(Provision) benefit for taxes on income (loss) from continuing operations | 7 | (25 | ) | ||||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | (28 | ) | 13 | ||||||||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations | (15 | ) | 23 | ||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (43 | ) | $ | 36 |
Six Months Ended June 30, 2016 | Six Months Ended June 30, 2015 | ||||||||||||||||||||||||||||||||||||||
(In millions) | U.S. Rental Car | Int'l Rental Car | All Other Operations | Corporate | Hertz Global | U.S. Rental Car | Int'l Rental Car | All Other Operations | Corporate | Hertz Global | |||||||||||||||||||||||||||||
Total revenues: | $ | 2,990 | $ | 973 | $ | 290 | $ | — | $ | 4,253 | $ | 3,135 | $ | 992 | $ | 288 | $ | — | $ | 4,415 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||||||
Direct vehicle and operating | 1,786 | 620 | 11 | 8 | 2,425 | 1,868 | 599 | 11 | 14 | 2,492 | |||||||||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | 836 | 184 | 225 | — | 1,245 | 801 | 196 | 231 | — | 1,228 | |||||||||||||||||||||||||||||
Selling, general and administrative | 208 | 112 | 17 | 122 | 459 | 197 | 125 | 16 | 133 | 471 | |||||||||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||||||||||||||||||
Vehicle | 104 | 27 | 9 | — | 140 | 86 | 31 | 6 | — | 123 | |||||||||||||||||||||||||||||
Non-vehicle | (15 | ) | 3 | (2 | ) | 199 | 185 | (4 | ) | 3 | (1 | ) | 175 | 173 | |||||||||||||||||||||||||
Interest expense, net | 89 | 30 | 7 | 199 | 325 | 82 | 34 | 5 | 175 | 296 | |||||||||||||||||||||||||||||
Other (income) expense, net | (11 | ) | — | — | (78 | ) | (89 | ) | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||||||||||
Total expenses | 2,908 | 946 | 260 | 251 | 4,365 | 2,947 | 954 | 263 | 322 | 4,486 | |||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 82 | $ | 27 | $ | 30 | $ | (251 | ) | (112 | ) | $ | 188 | $ | 38 | $ | 25 | $ | (322 | ) | (71 | ) | |||||||||||||||||
(Provision) benefit for taxes on income (loss) from continuing operations | 32 | 6 | |||||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | (80 | ) | (65 | ) | |||||||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations | (13 | ) | 31 | ||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (93 | ) | $ | (34 | ) |
Three Months Ended June 30, 2016 | Three Months Ended June 30, 2015 | |||||||||||||||||||||||
(In millions, except per share data) | GAAP | Adjustments | Adjusted (Non-GAAP) | GAAP | Adjustments | Adjusted (Non-GAAP) | ||||||||||||||||||
Total revenues | $ | 2,270 | $ | — | $ | 2,270 | $ | 2,317 | $ | — | $ | 2,317 | ||||||||||||
Expenses: | ||||||||||||||||||||||||
Direct vehicle and operating | 1,267 | (25 | ) | (a) | 1,242 | 1,290 | (39 | ) | (a) | 1,251 | ||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | 629 | — | 629 | 597 | — | 597 | ||||||||||||||||||
Selling, general and administrative | 234 | (32 | ) | (b) | 202 | 251 | (29 | ) | (b) | 222 | ||||||||||||||
Interest expense, net | ||||||||||||||||||||||||
Vehicle | 72 | (9 | ) | (c) | 63 | 62 | (11 | ) | (c) | 51 | ||||||||||||||
Non-vehicle | 102 | (23 | ) | (c) | 79 | 87 | (4 | ) | (c) | 83 | ||||||||||||||
Total interest expense, net | 174 | (32 | ) | (c) | 142 | 149 | (15 | ) | (c) | 134 | ||||||||||||||
Other (income) expense, net | 1 | (1 | ) | (d) | — | (8 | ) | 3 | (d) | (5 | ) | |||||||||||||
Total expenses | 2,305 | (90 | ) | 2,215 | 2,279 | (80 | ) | 2,199 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | (35 | ) | 90 | 55 | 38 | 80 | 118 | |||||||||||||||||
(Provision) benefit for taxes on income (loss) of continuing operations | 7 | (27 | ) | (e) | (20 | ) | (e) | (25 | ) | (19 | ) | (e) | (44 | ) | (e) | |||||||||
Net income (loss) from continuing operations | (28 | ) | 63 | 35 | 13 | 61 | 74 | |||||||||||||||||
Net income (loss) from discontinued operations | (15 | ) | 39 | 24 | 23 | 13 | 36 | |||||||||||||||||
Net income (loss) | $ | (43 | ) | $ | 102 | $ | 59 | $ | 36 | $ | 74 | $ | 110 | |||||||||||
Weighted average number of diluted shares outstanding(f) | 85 | 85 | 85 | 92 | 92 | 92 | ||||||||||||||||||
Diluted earnings (loss) per share from continuing operations | $ | (0.33 | ) | $ | 0.74 | $ | 0.41 | $ | 0.14 | $ | 0.66 | $ | 0.80 | |||||||||||
Diluted earnings (loss) per share from discontinued operations | (0.18 | ) | 0.46 | 0.28 | 0.25 | 0.14 | 0.39 | |||||||||||||||||
Diluted earnings (loss) per share | $ | (0.51 | ) | $ | 1.20 | $ | 0.69 | $ | 0.39 | $ | 0.80 | $ | 1.19 |
Six Months Ended June 30, 2016 | Six Months Ended June 30, 2015 | |||||||||||||||||||||||
(In millions, except per share data) | GAAP | Adjustments | Adjusted (Non-GAAP) | GAAP | Adjustments | Adjusted (Non-GAAP) | ||||||||||||||||||
Total revenues | $ | 4,253 | $ | — | $ | 4,253 | $ | 4,415 | $ | — | $ | 4,415 | ||||||||||||
Expenses: | ||||||||||||||||||||||||
Direct vehicle and operating | 2,425 | (38 | ) | (a) | 2,387 | 2,492 | (63 | ) | (a) | 2,429 | ||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | 1,245 | — | 1,245 | 1,228 | — | 1,228 | ||||||||||||||||||
Selling, general and administrative | 459 | (59 | ) | (b) | 400 | 471 | (56 | ) | (b) | 415 | ||||||||||||||
Interest expense, net | ||||||||||||||||||||||||
Vehicle | 140 | (19 | ) | (c) | 121 | 123 | (21 | ) | (c) | 102 | ||||||||||||||
Non-vehicle | 185 | (26 | ) | (c) | 159 | 173 | (8 | ) | (c) | 165 | ||||||||||||||
Total interest expense, net | 325 | (45 | ) | (c) | 280 | 296 | (29 | ) | (c) | 267 | ||||||||||||||
Other (income) expense, net | (89 | ) | 83 | (d) | (6 | ) | (1 | ) | — | (d) | (1 | ) | ||||||||||||
Total expenses | 4,365 | (59 | ) | 4,306 | 4,486 | (148 | ) | 4,338 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | (112 | ) | 59 | (53 | ) | (71 | ) | 148 | 77 | |||||||||||||||
(Provision) benefit for taxes on income (loss) of continuing operations | 32 | (12 | ) | (e) | 20 | (e) | 6 | (34 | ) | (e) | (28 | ) | (e) | |||||||||||
Net income (loss) from continuing operations | (80 | ) | 47 | (33 | ) | (65 | ) | 114 | 49 | |||||||||||||||
Net income (loss) from discontinued operations, net of tax | (13 | ) | 52 | 39 | 31 | 32 | 63 | |||||||||||||||||
Net income (loss) | $ | (93 | ) | $ | 99 | $ | 6 | $ | (34 | ) | $ | 146 | $ | 112 | ||||||||||
Weighted average number of diluted shares outstanding | 85 | 85 | 85 | 92 | 92 | 92 | ||||||||||||||||||
Diluted earnings (loss) per share from continuing operations | $ | (0.94 | ) | $ | 0.55 | $ | (0.39 | ) | $ | (0.71 | ) | $ | 1.24 | $ | 0.53 | |||||||||
DIluted earnings (loss) per share from discontinued operations | (0.15 | ) | 0.62 | 0.46 | 0.34 | 0.35 | 0.69 | |||||||||||||||||
Diluted earnings (loss) per share | $ | (1.09 | ) | $ | 1.17 | $ | 0.07 | $ | (0.37 | ) | $ | 1.59 | $ | 1.22 |
(a) | Represents the increase in amortization of other intangible assets, depreciation of property and equipment and accretion of certain revalued liabilities relating to purchase accounting. Also includes restructuring and restructuring related charges, impairments and asset write-downs, when applicable. |
(b) | Primarily comprised of restructuring and restructuring related charges, impairments and asset write-downs, Corporate expenses associated with the Spin-Off transaction, consulting costs and legal fees related to the accounting review and investigation, expenses associated with acquisitions, integration charges, external costs associated with the Company’s finance and information technology transformation programs and relocation expenses associated with the Company's relocation of its headquarters to Estero, Florida, when applicable. |
(c) | Represents debt-related charges relating to the amortization of deferred debt financing costs and debt discounts and premiums and the loss on extinguishment of debt. |
(d) | Includes miscellaneous and non-recurring items including but not limited to acquisition charges, integration charges, and other non-cash items. For the six months ended June 30, 2016, also includes the gain on the sale of common stock of CAR Inc. and a settlement gain related to one of our U.S. airport locations. In the 2015 periods, includes charges incurred in connection with relocating the Company's corporate headquarters to Estero, Florida. |
(e) | Represents a (provision) benefit for income taxes derived utilizing a combined statutory rate of 37% for all periods shown. The combined statutory rate is applied to the adjusted income (loss) before income taxes to arrive at the adjusted (provision) benefit for taxes. The (provision) benefit for taxes related to the adjustments is calculated as the difference between the adjusted (provision) benefit for taxes and the GAAP (provision) benefit for taxes. |
(f) | Diluted earnings (loss) per share for the three and six months ended June 30, 2015 is calculated using the weighted average number of dilutive common shares outstanding during the periods, as adjusted for the one-to-five distribution ratio of the Spin-Off. |
Three Months Ended June 30, 2016 | Three Months Ended June 30, 2015 | ||||||||||||||||||||||||||||||||||||||
(In millions) | U.S. Rental Car | Int'l Rental Car | All Other Operations | Corporate | Hertz Global(a) | U.S. Rental Car | Int'l Rental Car | All Other Operations | Corporate | Hertz Global(a) | |||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 104 | $ | 29 | $ | 14 | $ | (182 | ) | $ | (35 | ) | $ | 153 | $ | 36 | $ | 14 | $ | (165 | ) | $ | 38 | ||||||||||||||||
Depreciation and amortization | 462 | 106 | 116 | 7 | 691 | 429 | 110 | 117 | 5 | 661 | |||||||||||||||||||||||||||||
Interest, net of interest income | 45 | 15 | 4 | 110 | 174 | 41 | 18 | 2 | 88 | 149 | |||||||||||||||||||||||||||||
Gross EBITDA | $ | 611 | $ | 150 | $ | 134 | $ | (65 | ) | $ | 830 | $ | 623 | $ | 164 | $ | 133 | $ | (72 | ) | $ | 848 | |||||||||||||||||
Revenue earning vehicle depreciation and lease charges, net | (417 | ) | (98 | ) | (114 | ) | — | (629 | ) | (380 | ) | (101 | ) | (116 | ) | — | (597 | ) | |||||||||||||||||||||
Vehicle debt interest | (53 | ) | (14 | ) | (5 | ) | — | (72 | ) | (43 | ) | (16 | ) | (3 | ) | — | (62 | ) | |||||||||||||||||||||
Vehicle debt-related charges (b) | 1 | 1 | 1 | — | 3 | 8 | 2 | 1 | — | 11 | |||||||||||||||||||||||||||||
Loss on extinguishment of vehicle-related debt(c) | 6 | — | — | — | 6 | — | — | — | — | — | |||||||||||||||||||||||||||||
Corporate EBITDA | $ | 148 | $ | 39 | $ | 16 | $ | (65 | ) | $ | 138 | $ | 208 | $ | 49 | $ | 15 | $ | (72 | ) | $ | 200 | |||||||||||||||||
Non-cash stock-based employee compensation charges | — | — | — | 6 | 6 | — | — | — | 4 | 4 | |||||||||||||||||||||||||||||
Restructuring and restructuring related charges (d) | 13 | 3 | — | 2 | 18 | 16 | 5 | — | 20 | 41 | |||||||||||||||||||||||||||||
Sale of CAR Inc. common stock(e) | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Impairment charges and write-downs (f) | 3 | — | — | — | 3 | — | — | — | — | — | |||||||||||||||||||||||||||||
Finance and information technology transformation costs(g) | 5 | — | — | 14 | 19 | — | — | — | — | — | |||||||||||||||||||||||||||||
Other extraordinary, unusual or non-recurring items(h) | (1 | ) | — | — | 1 | — | — | — | — | 1 | 1 | ||||||||||||||||||||||||||||
Adjusted Corporate EBITDA | $ | 168 | $ | 42 | $ | 16 | $ | (42 | ) | $ | 184 | $ | 224 | $ | 54 | $ | 15 | $ | (47 | ) | $ | 246 | |||||||||||||||||
Non-vehicle depreciation and amortization | (45 | ) | (8 | ) | (2 | ) | (7 | ) | (62 | ) | (49 | ) | (9 | ) | (1 | ) | (5 | ) | (64 | ) | |||||||||||||||||||
Non-vehicle debt interest, net of interest income | 8 | (1 | ) | 1 | (110 | ) | (102 | ) | 2 | (2 | ) | 1 | (88 | ) | (87 | ) | |||||||||||||||||||||||
Non-vehicle debt-related charges (b) | — | — | — | 9 | 9 | — | — | — | 4 | 4 | |||||||||||||||||||||||||||||
Loss on extinguishment of non-vehicle-related debt(c) | — | — | — | 14 | 14 | — | — | — | — | — | |||||||||||||||||||||||||||||
Non-cash stock-based employee compensation charges | — | — | — | (6 | ) | (6 | ) | — | — | — | (4 | ) | (4 | ) | |||||||||||||||||||||||||
Acquisition accounting (i) | 12 | 1 | 2 | 3 | 18 | 18 | 2 | 2 | 1 | 23 | |||||||||||||||||||||||||||||
Adjusted pre-tax income (loss) | $ | 143 | $ | 34 | $ | 17 | $ | (139 | ) | $ | 55 | $ | 195 | $ | 45 | $ | 17 | $ | (139 | ) | $ | 118 |
Six Months Ended June 30, 2016 | Six Months Ended June 30, 2015 | ||||||||||||||||||||||||||||||||||||||
(In millions) | U.S. Rental Car | Int'l Rental Car | All Other Operations | Corporate | Hertz Global(a) | U.S. Rental Car | Int'l Rental Car | All Other Operations | Corporate | Hertz Global(a) | |||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 82 | $ | 27 | $ | 30 | $ | (251 | ) | $ | (112 | ) | $ | 188 | $ | 38 | $ | 25 | $ | (322 | ) | $ | (71 | ) | |||||||||||||||
Depreciation and amortization | 931 | 201 | 230 | 12 | 1,374 | 901 | 214 | 235 | 9 | 1,359 | |||||||||||||||||||||||||||||
Interest, net of interest income | 89 | 30 | 7 | 199 | 325 | 82 | 34 | 5 | 175 | 296 | |||||||||||||||||||||||||||||
Gross EBITDA | $ | 1,102 | $ | 258 | $ | 267 | $ | (40 | ) | $ | 1,587 | $ | 1,171 | $ | 286 | $ | 265 | $ | (138 | ) | $ | 1,584 | |||||||||||||||||
Revenue earning vehicle depreciation and lease charges, net | (836 | ) | (184 | ) | (225 | ) | — | (1,245 | ) | (801 | ) | (196 | ) | (231 | ) | — | (1,228 | ) | |||||||||||||||||||||
Vehicle debt interest | (104 | ) | (27 | ) | (9 | ) | — | (140 | ) | (86 | ) | (31 | ) | (6 | ) | — | (123 | ) | |||||||||||||||||||||
Vehicle debt-related charges(b) | 8 | 3 | 2 | — | 13 | 15 | 4 | 2 | — | 21 | |||||||||||||||||||||||||||||
Loss on extinguishment of vehicle-related debt(c) | 6 | — | — | — | 6 | — | — | — | — | — | |||||||||||||||||||||||||||||
Corporate EBITDA | $ | 176 | $ | 50 | $ | 35 | $ | (40 | ) | $ | 221 | $ | 299 | $ | 63 | $ | 30 | $ | (138 | ) | $ | 254 | |||||||||||||||||
Non-cash stock-based employee compensation charges | — | — | — | 11 | 11 | — | — | — | 9 | 9 | |||||||||||||||||||||||||||||
Restructuring and restructuring related charges(d) | 14 | 3 | — | 12 | 29 | 18 | 6 | — | 35 | 59 | |||||||||||||||||||||||||||||
Sale of CAR Inc. common stock(e) | — | — | — | (75 | ) | (75 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Impairment charges and write-downs(f) | 3 | — | — | — | 3 | 9 | — | — | — | 9 | |||||||||||||||||||||||||||||
Finance and information technology transformation costs(g) | 9 | — | — | 17 | 26 | — | — | — | — | — | |||||||||||||||||||||||||||||
Other extraordinary, unusual or non-recurring items(h) | (9 | ) | — | — | 6 | (3 | ) | (2 | ) | — | — | 8 | 6 | ||||||||||||||||||||||||||
Adjusted Corporate EBITDA | $ | 193 | $ | 53 | $ | 35 | $ | (69 | ) | $ | 212 | $ | 324 | $ | 69 | $ | 30 | $ | (86 | ) | $ | 337 | |||||||||||||||||
Non-vehicle depreciation and amortization | (95 | ) | (17 | ) | (5 | ) | (12 | ) | (129 | ) | (100 | ) | (18 | ) | (4 | ) | (9 | ) | (131 | ) | |||||||||||||||||||
Non-vehicle debt interest, net of interest income | 15 | (3 | ) | 2 | (199 | ) | (185 | ) | 4 | (3 | ) | 1 | (175 | ) | (173 | ) | |||||||||||||||||||||||
Non-vehicle debt-related charges(b) | — | — | — | 12 | 12 | 1 | — | — | 7 | 8 | |||||||||||||||||||||||||||||
Loss on extinguishment of non-vehicle-related debt(c) | — | — | — | 14 | 14 | — | — | — | — | — | |||||||||||||||||||||||||||||
Non-cash stock-based employee compensation charges | — | — | — | (11 | ) | (11 | ) | — | — | — | (9 | ) | (9 | ) | |||||||||||||||||||||||||
Acquisition accounting (i) | 25 | 3 | 3 | 3 | 34 | 36 | 4 | 4 | 1 | 45 | |||||||||||||||||||||||||||||
Adjusted pre-tax income (loss) | $ | 138 | $ | 36 | $ | 35 | $ | (262 | ) | $ | (53 | ) | $ | 265 | $ | 52 | $ | 31 | $ | (271 | ) | $ | 77 |
(a) | Excludes discontinued operations. |
(b) | Represents debt-related charges relating to the amortization of deferred debt financing costs and debt discounts and premiums. |
(c) | Represents the write-off of deferred debt financing costs in the second quarter of 2016 as a result of paying off the Senior Term Facility and various vehicle debt refinancings. |
(d) | Represents expenses incurred under restructuring actions as defined in U.S. GAAP. Also represents incremental costs incurred directly supporting business transformation initiatives. Such costs include transition costs incurred in connection with business process outsourcing arrangements and incremental costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process changes. Also includes consulting costs and legal fees related to the accounting review and investigation. |
(e) | In 2016, represents the pre-tax gain on the sale of shares of CAR Inc. common stock. |
(f) | In 2015, primarily represents a $6 million impairment on the former Dollar Thrifty headquarters in Tulsa, Oklahoma. |
(g) | Represents external costs associated with the Company’s finance and information technology transformation programs, both of which are multi-year initiatives to upgrade and modernize the Company’s systems and processes. In the three months ended June 30, 2016, $5 million was incurred by U.S. RAC and $14 million was incurred by Corporate and in the six months ended June 30, 2016, $9 million was incurred by U.S. RAC and $17 million was incurred by Corporate. |
(h) | Includes miscellaneous and non-recurring items including but not limited to acquisition charges, integration charges, and other non-cash items. For the six months ended June 30, 2016, also includes a settlement gain related to one of our U.S. airport locations. In the 2015 periods, includes charges incurred in connection with relocating the Company's corporate headquarters to Estero, Florida. |
(i) | Represents incremental expense associated with amortization of other intangible assets, depreciation of property and other equipment and accretion of revalued liabilities relating to acquisition accounting. |
Six Months Ended June 30, 2016 | Six Months Ended June 30, 2015 | ||||||||||||||||||||||||||||||
(In millions) | U.S. Rental Car | Int'l Rental Car | All Other Operations | Hertz Global(a) | U.S. Rental Car | Int'l Rental Car | All Other Operations | Hertz Global(a) | |||||||||||||||||||||||
Revenue earning vehicles expenditures | $ | (4,854 | ) | $ | (1,691 | ) | $ | (723 | ) | $ | (7,268 | ) | $ | (5,190 | ) | $ | (1,732 | ) | $ | (717 | ) | $ | (7,639 | ) | |||||||
Proceeds from disposal of revenue earning vehicles | 3,545 | 1,148 | 475 | 5,168 | 3,279 | 1,111 | 426 | 4,816 | |||||||||||||||||||||||
Net revenue earning vehicles capital expenditures | (1,309 | ) | (543 | ) | (248 | ) | (2,100 | ) | (1,911 | ) | (621 | ) | (291 | ) | (2,823 | ) | |||||||||||||||
Depreciation of revenue earning vehicles, net | 837 | 150 | 225 | 1,212 | 801 | 159 | 231 | 1,191 | |||||||||||||||||||||||
Financing activity related to vehicles: | |||||||||||||||||||||||||||||||
Borrowings | 4,221 | 1,267 | 591 | 6,079 | 4,146 | 831 | 602 | 5,579 | |||||||||||||||||||||||
Payments | (3,614 | ) | (886 | ) | (578 | ) | (5,078 | ) | (2,986 | ) | (444 | ) | (562 | ) | (3,992 | ) | |||||||||||||||
Restricted cash changes | 18 | 1 | (2 | ) | 17 | 150 | 12 | (25 | ) | 137 | |||||||||||||||||||||
Net financing activity related to vehicles | 625 | 382 | 11 | 1,018 | 1,310 | 399 | 15 | 1,724 | |||||||||||||||||||||||
Fleet growth | $ | 153 | $ | (11 | ) | $ | (12 | ) | $ | 130 | $ | 200 | $ | (63 | ) | $ | (45 | ) | $ | 92 |
Reconciliation of Income (Loss) From Continuing Operations Before Income Taxes to Free Cash Flow | Six Months Ended June 30, | ||||||
(In millions) | 2016 | 2015 | |||||
Income (loss) from continuing operations before income taxes | $ | (112 | ) | $ | (71 | ) | |
Depreciation and amortization, non-vehicle, net | 128 | 131 | |||||
Amortization of debt discount and related charges | 25 | 27 | |||||
Loss on extinguishment of debt | 20 | — | |||||
Cash paid for income taxes, net of refunds | (25 | ) | (12 | ) | |||
Changes in assets and liabilities, net of effects of acquisitions, and other | (234 | ) | (105 | ) | |||
Net cash provided by operating activities excluding depreciation of revenue earning vehicles, net | (198 | ) | (30 | ) | |||
Investment activity: | |||||||
U.S. Rental Car fleet growth | 153 | 200 | |||||
International Rental Car fleet growth | (11 | ) | (63 | ) | |||
All Other Operations fleet growth | (12 | ) | (45 | ) | |||
Property and equipment expenditures, net of disposals | (33 | ) | (77 | ) | |||
Net investment activity | 97 | 15 | |||||
Free cash flow | $ | (101 | ) | $ | (15 | ) |
Reconciliation of Cash Flows From Operating Activities to Free Cash Flow | Six Months Ended June 30, | ||||||
(In millions) | 2016 | 2015 | |||||
Net cash provided by operating activities | $ | 1,014 | $ | 1,161 | |||
Depreciation of revenue earning vehicles, net | (1,212 | ) | (1,191 | ) | |||
Investment activity: | |||||||
U.S. Rental Car fleet growth | 153 | 200 | |||||
International Rental Car fleet growth | (11 | ) | (63 | ) | |||
All Other Operations fleet growth | (12 | ) | (45 | ) | |||
Property and equipment expenditures, net of disposals | (33 | ) | (77 | ) | |||
Net investment activity | 97 | 15 | |||||
Free cash flow | $ | (101 | ) | $ | (15 | ) |
As of June 30, 2016 | As of December 31, 2015 | ||||||||||||||||||||||
(In millions) | Vehicle | Non-Vehicle | Total | Vehicle | Non-Vehicle | Total | |||||||||||||||||
Debt as reported in the balance sheet | $ | 10,801 | $ | 4,591 | $ | 15,392 | $ | 9,823 | $ | 5,947 | $ | 15,770 | |||||||||||
Add: | |||||||||||||||||||||||
Debt issue costs deducted from debt obligations(a) | 39 | 40 | 79 | 27 | 46 | 73 | |||||||||||||||||
Less: | |||||||||||||||||||||||
Cash and cash equivalents | — | 1,285 | 1,285 | — | 474 | 474 | |||||||||||||||||
Restricted cash | 272 | — | 272 | 289 | — | 289 | |||||||||||||||||
Net debt | $ | 10,568 | $ | 3,346 | $ | 13,914 | $ | 9,561 | $ | 5,519 | $ | 15,080 |
(a) | Under recent accounting guidance issued by the Financial Accounting Standards Board, effective January 1, 2016 and applied retrospectively, certain debt issue costs are required to be reported as a deduction from the carrying amount of the related debt obligation. Previously these costs were reported as an asset. Management believes that eliminating the effects that these costs have on debt will more accurately reflect our net debt position. |
Three Months Ended June 30, | Percent Inc/(Dec) | Six Months Ended June 30, | Percent Inc/(Dec) | ||||||||||||||||||||
($In millions, except as noted) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Total RPD | |||||||||||||||||||||||
Revenues | $ | 1,584 | $ | 1,615 | $ | 2,990 | $ | 3,135 | |||||||||||||||
Ancillary retail vehicle sales revenue | (18 | ) | (13 | ) | $ | (37 | ) | $ | (25 | ) | |||||||||||||
Total rental revenue | $ | 1,566 | $ | 1,602 | $ | 2,953 | $ | 3,110 | |||||||||||||||
Transaction days (in thousands) | 37,190 | 34,977 | 69,932 | 67,014 | |||||||||||||||||||
Total RPD (in whole dollars) | $ | 42.11 | $ | 45.80 | (8 | )% | $ | 42.23 | $ | 46.41 | (9 | )% | |||||||||||
Vehicle Utilization | |||||||||||||||||||||||
Transaction days (in thousands) | 37,190 | 34,977 | 69,932 | 67,014 | |||||||||||||||||||
Average vehicles | 500,000 | 511,700 | 480,100 | 500,500 | |||||||||||||||||||
Number of days in period | 91 | 91 | 182 | 181 | |||||||||||||||||||
Available vehicle days (in thousands) | 45,500 | 46,565 | 87,378 | 90,591 | |||||||||||||||||||
Vehicle utilization(a) | 82 | % | 75 | % | 700 | bps | 80 | % | 74 | % | 600 | bps | |||||||||||
Revenue Per Available Car Day | |||||||||||||||||||||||
Total rental revenue | $ | 1,566 | $ | 1,602 | $ | 2,953 | $ | 3,110 | |||||||||||||||
Available car days (in thousands) | 45,500 | 46,565 | 87,378 | 90,591 | |||||||||||||||||||
Revenue per available car day (in whole dollars) | $ | 34.42 | $ | 34.40 | — | % | $ | 33.80 | $ | 34.33 | (2 | )% | |||||||||||
Net Depreciation Per Unit Per Month | |||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 417 | $ | 380 | $ | 836 | $ | 801 | |||||||||||||||
Average vehicles | 500,000 | 511,700 | 480,100 | 500,500 | |||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net divided by average vehicles (in whole dollars) | $ | 834 | $ | 743 | $ | 1,741 | $ | 1,600 | |||||||||||||||
Number of months in period | 3 | 3 | 6 | 6 | |||||||||||||||||||
Net depreciation per unit per month (in whole dollars) | $ | 278 | $ | 248 | 12 | % | $ | 290 | $ | 267 | 9 | % |
Three Months Ended June 30, | Percent Inc/(Dec) | Six Months Ended June 30, | Percent Inc/(Dec) | ||||||||||||||||||||
(in millions, except as noted) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Total RPD | |||||||||||||||||||||||
Revenues | $ | 540 | $ | 556 | $ | 973 | $ | 992 | |||||||||||||||
Foreign currency adjustment(a) | (14 | ) | (21 | ) | (13 | ) | (43 | ) | |||||||||||||||
Total rental revenue | $ | 526 | $ | 535 | $ | 960 | $ | 949 | |||||||||||||||
Transaction days (in thousands) | 12,511 | 12,523 | 22,613 | 22,298 | |||||||||||||||||||
Total RPD (in whole dollars) | $ | 42.04 | $ | 42.72 | (2 | )% | $ | 42.45 | $ | 42.56 | — | % | |||||||||||
Vehicle Utilization | |||||||||||||||||||||||
Transaction days (in thousands) | 12,511 | 12,523 | 22,613 | 22,298 | |||||||||||||||||||
Average vehicles | 178,600 | 173,700 | 163,300 | 158,800 | |||||||||||||||||||
Number of days in period | 91 | 91 | 182 | 181 | |||||||||||||||||||
Available car days (in thousands) | 16,253 | 15,807 | 29,721 | 28,743 | |||||||||||||||||||
Vehicle utilization(b) | 77 | % | 79 | % | (200 | ) | bps | 76 | % | 78 | % | (200 | ) | bps | |||||||||
Revenue Per Available Car Day | |||||||||||||||||||||||
Total rental revenue | $ | 526 | $ | 535 | $ | 960 | $ | 949 | |||||||||||||||
Available car days (in thousands) | 16,253 | 15,807 | 29,721 | 28,743 | |||||||||||||||||||
Revenue per available car day (in whole dollars) | $ | 32.36 | $ | 33.85 | (4 | )% | $ | 32.30 | $ | 33.02 | (2 | )% | |||||||||||
Net Depreciation Per Unit Per Month | |||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 98 | $ | 101 | $ | 184 | $ | 196 | |||||||||||||||
Foreign currency adjustment (a) | (2 | ) | (4 | ) | (2 | ) | (8 | ) | |||||||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges, net | $ | 96 | $ | 97 | $ | 182 | $ | 188 | |||||||||||||||
Average vehicles | 178,600 | 173,700 | 163,300 | 158,800 | |||||||||||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges, net divided by average vehicles (in whole dollars) | $ | 538 | $ | 558 | $ | 1,115 | $ | 1,184 | |||||||||||||||
Number of months in period | 3 | 3 | 6 | $ | 6 | ||||||||||||||||||
Net depreciation per unit per month (in whole dollars) | $ | 179 | $ | 186 | (4 | )% | $ | 186 | $ | 197 | (6 | )% |
Three Months Ended June 30, | Percent Inc/(Dec) | Six Months Ended June 30, | Percent Inc/(Dec) | ||||||||||||||||||||
(in millions, except as noted) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Total RPD | |||||||||||||||||||||||
Revenues | $ | 2,124 | $ | 2,171 | $ | 3,963 | $ | 4,127 | |||||||||||||||
Ancillary retail vehicle sales revenue | (18 | ) | (13 | ) | (37 | ) | (25 | ) | |||||||||||||||
Foreign currency adjustment(a) | (14 | ) | (21 | ) | (13 | ) | (43 | ) | |||||||||||||||
Total rental revenue | $ | 2,092 | $ | 2,137 | $ | 3,913 | $ | 4,059 | |||||||||||||||
Transaction days (in thousands) | 49,701 | 47,500 | 92,545 | 89,312 | |||||||||||||||||||
Total RPD (in whole dollars) | $ | 42.09 | $ | 44.99 | (6 | )% | $ | 42.28 | $ | 45.45 | (7 | )% | |||||||||||
Vehicle Utilization | |||||||||||||||||||||||
Transaction days (in thousands) | 49,701 | 47,500 | 92,545 | 89,312 | |||||||||||||||||||
Average vehicles | 678,600 | 685,400 | 643,400 | 659,300 | |||||||||||||||||||
Number of days in period | 91 | 91 | 182 | 181 | |||||||||||||||||||
Available car days (in thousands) | 61,753 | 62,371 | 117,099 | 119,333 | |||||||||||||||||||
Vehicle utilization(b) | 80 | % | 76 | % | 400 | bps | 79 | % | 75 | % | 400 | bps | |||||||||||
Revenue Per Available Car Day | |||||||||||||||||||||||
Total rental revenue | $ | 2,092 | $ | 2,137 | $ | 3,913 | $ | 4,059 | |||||||||||||||
Available car days (in thousands) | 61,753 | 62,371 | 117,099 | 119,333 | |||||||||||||||||||
Revenue per available car day (in whole dollars) | $ | 33.88 | $ | 34.26 | (1 | )% | $ | 33.42 | $ | 34.01 | (2 | )% | |||||||||||
Net Depreciation Per Unit Per Month | |||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 515 | $ | 481 | $ | 1,020 | $ | 997 | |||||||||||||||
Foreign currency adjustment (a) | (2 | ) | (4 | ) | (2 | ) | (8 | ) | |||||||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges, net | $ | 513 | $ | 477 | $ | 1,018 | $ | 989 | |||||||||||||||
Average vehicles | 678,600 | 685,400 | 643,400 | 659,300 | |||||||||||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges, net divided by average vehicles (in whole dollars) | $ | 756 | $ | 696 | $ | 1,582 | $ | 1,500 | |||||||||||||||
Number of months in period | 3 | 3 | 6 | $ | 6 | ||||||||||||||||||
Net depreciation per unit per month (in whole dollars) | $ | 252 | $ | 232 | 9 | % | $ | 264 | $ | 250 | 6 | % |
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