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 |
• | Worldwide revenue increased 4% in the fourth quarter |
• | Net income in the fourth quarter was $616 million, including a one-time benefit of $679 million related to U.S. tax reform |
• | Adjusted Corporate EBITDA increased to $21 million from $12 million in the prior-year quarter |
• | The Company’s U.S. operational improvement initiatives drove year-over-year progress in the second half of the year compared with the first half of 2017 as reflected in increased revenue expansion, improved fleet utilization and reduced vehicle depreciation expense |
U.S. RAC(1) | Three Months Ended December 31, | Percent Inc/(Dec) | |||||||||
($ in millions, except where noted) | 2017 | 2016 | |||||||||
Total Revenues | $ | 1,437 | $ | 1,417 | 1 | % | |||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 426 | $ | 456 | (7 | )% | |||||
Income (loss) from continuing operations before income taxes | $ | (24 | ) | $ | (151 | ) | (84 | )% | |||
Adjusted pre-tax income (loss) | $ | 7 | $ | (14 | ) | NM | |||||
Adjusted pre-tax margin | — | % | (1 | )% | 150 | bps | |||||
Adjusted Corporate EBITDA | $ | 10 | $ | 8 | 25 | % | |||||
Adjusted Corporate EBITDA margin | 1 | % | 1 | % | 10 | bps | |||||
Average vehicles | 470,800 | 473,200 | (1 | )% | |||||||
Transaction days (in thousands) | 34,958 | 34,056 | 3 | % | |||||||
Total RPD (in whole dollars) | $ | 40.53 | $ | 41.02 | (1 | )% | |||||
Total RPU (in whole dollars) | $ | 1,003 | $ | 984 | 2 | % | |||||
Net depreciation per unit per month (in whole dollars) | $ | 302 | $ | 321 | (6 | )% |
International RAC(1) | Three Months Ended December 31, | Percent Inc/(Dec) | |||||||||
($ in millions, except where noted) | 2017 | 2016 | |||||||||
Total Revenues | $ | 487 | $ | 441 | 10 | % | |||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 105 | $ | 89 | 18 | % | |||||
Income (loss) from continuing operations before income taxes | $ | (4 | ) | $ | (181 | ) | (98 | )% | |||
Adjusted pre-tax income (loss) | $ | 4 | $ | 15 | (73 | )% | |||||
Adjusted pre-tax margin | 1 | % | 3 | % | (260 | ) | bps | ||||
Adjusted Corporate EBITDA | $ | 11 | $ | 23 | (52 | )% | |||||
Adjusted Corporate EBITDA margin | 2 | % | 5 | % | (300 | ) | bps | ||||
Average vehicles | 163,100 | 163,100 | — | % | |||||||
Transaction days (in thousands) | 10,935 | 10,880 | 1 | % | |||||||
Total RPD (in whole dollars) | $ | 40.42 | $ | 39.15 | 3 | % | |||||
Total RPU (in whole dollars) | $ | 903 | $ | 871 | 4 | % | |||||
Net depreciation per unit per month (in whole dollars) | $ | 194 | $ | 178 | 9 | % |
All Other Operations(1) | Three Months Ended December 31, | Percent Inc/(Dec) | |||||||||
($ in millions) | 2017 | 2016 | |||||||||
Total Revenues | $ | 167 | $ | 151 | 11 | % | |||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 123 | $ | 117 | 5 | % | |||||
Income (loss) from continuing operations before income taxes | $ | 16 | $ | 16 | — | % | |||||
Adjusted pre-tax income (loss) | $ | 21 | $ | 19 | 11 | % | |||||
Adjusted pre-tax margin | 13 | % | 13 | % | — | bps | |||||
Adjusted Corporate EBITDA | $ | 20 | $ | 18 | 11 | % | |||||
Adjusted Corporate EBITDA margin | 12 | % | 12 | % | 10 | bps | |||||
Average vehicles - Donlen | 197,800 | 197,000 | — | % |
(1) | Adjusted pre-tax income (loss), adjusted pre-tax margin, Adjusted Corporate EBITDA, Adjusted Corporate EBITDA margin, adjusted net income (loss) and adjusted diluted earnings (loss) per share are non-GAAP measures. Average vehicles, transaction days, Total RPD, Total RPU and net depreciation per unit per |
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 December 31, | As a Percentage of Total Revenues | Twelve Months Ended December 31, | As a Percentage of Total Revenues | ||||||||||||||||||||||||
(In millions, except per share data) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Total revenues | $ | 2,091 | $ | 2,009 | 100 | % | 100 | % | $ | 8,803 | $ | 8,803 | 100 | % | 100 | % | |||||||||||
Expenses: | |||||||||||||||||||||||||||
Direct vehicle and operating | 1,223 | 1,154 | 58 | % | 57 | % | 4,958 | 4,932 | 56 | % | 56 | % | |||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | 654 | 662 | 31 | % | 33 | % | 2,798 | 2,601 | 32 | % | 30 | % | |||||||||||||||
Selling, general and administrative | 221 | 213 | 11 | % | 11 | % | 880 | 899 | 10 | % | 10 | % | |||||||||||||||
Interest expense, net: | |||||||||||||||||||||||||||
Vehicle | 88 | 68 | 4 | % | 3 | % | 331 | 280 | 4 | % | 3 | % | |||||||||||||||
Non-vehicle | 84 | 75 | 4 | % | 4 | % | 306 | 344 | 3 | % | 4 | % | |||||||||||||||
Total interest expense, net | 172 | 143 | 8 | % | 7 | % | 637 | 624 | 7 | % | 7 | % | |||||||||||||||
Goodwill and intangible asset impairments | — | 292 | — | % | 15 | % | 86 | 292 | 1 | % | 3 | % | |||||||||||||||
Other (income) expense, net | — | 11 | — | % | 1 | % | 19 | (75 | ) | — | % | (1 | )% | ||||||||||||||
Total expenses | 2,270 | 2,475 | 109 | % | 123 | % | 9,378 | 9,273 | 107 | % | 105 | % | |||||||||||||||
Income (loss) from continuing operations before income taxes | (179 | ) | (466 | ) | (9 | )% | (23 | )% | (575 | ) | (470 | ) | (7 | )% | (5 | )% | |||||||||||
Income tax (provision) benefit from continuing operations | 795 | 28 | 38 | % | 1 | % | 902 | (4 | ) | 10 | % | — | % | ||||||||||||||
Net income (loss) from continuing operations | 616 | (438 | ) | 29 | % | (22 | )% | 327 | (474 | ) | 4 | % | (5 | )% | |||||||||||||
Net income (loss) from discontinued operations | — | (2 | ) | — | % | — | % | — | (17 | ) | — | % | — | % | |||||||||||||
Net income (loss) | $ | 616 | $ | (440 | ) | 29 | % | (22 | )% | $ | 327 | $ | (491 | ) | 4 | % | (6 | )% | |||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||
Basic | 83 | 83 | 83 | 84 | |||||||||||||||||||||||
Diluted | 83 | 83 | 83 | 84 | |||||||||||||||||||||||
Earnings (loss) per share- basic and diluted: | |||||||||||||||||||||||||||
Basic earnings (loss) per share from continuing operations | $ | 7.42 | $ | (5.28 | ) | $ | 3.94 | $ | (5.65 | ) | |||||||||||||||||
Basic earnings (loss) per share from discontinued operations | — | (0.02 | ) | — | (0.20 | ) | |||||||||||||||||||||
Basic earnings (loss) per share | $ | 7.42 | $ | (5.30 | ) | $ | 3.94 | $ | (5.85 | ) | |||||||||||||||||
Diluted earnings (loss) per share from continuing operations | $ | 7.42 | $ | (5.28 | ) | $ | 3.94 | $ | (5.65 | ) | |||||||||||||||||
Diluted earnings (loss) per share from discontinued operations | — | (0.02 | ) | — | (0.20 | ) | |||||||||||||||||||||
Diluted earnings (loss) per share | $ | 7.42 | $ | (5.30 | ) | $ | 3.94 | $ | (5.85 | ) | |||||||||||||||||
Adjusted pre-tax income (loss)(a) | $ | (102 | ) | $ | (93 | ) | $ | (210 | ) | $ | 65 | ||||||||||||||||
Adjusted net income (loss)(a) | $ | (64 | ) | $ | (59 | ) | $ | (132 | ) | $ | 41 | ||||||||||||||||
Adjusted diluted earnings (loss) per share(a) | $ | (0.77 | ) | $ | (0.71 | ) | $ | (1.59 | ) | $ | 0.49 | ||||||||||||||||
Adjusted Corporate EBITDA(a) | $ | 21 | $ | 12 | $ | 267 | $ | 553 |
(a) | Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule II. |
(In millions) | As of December 31, 2017 | As of December 31, 2016 | |||||
Cash and cash equivalents | $ | 1,072 | $ | 816 | |||
Total restricted cash | 432 | 278 | |||||
Revenue earning vehicles, net: | |||||||
U.S. Rental Car | 7,761 | 7,716 | |||||
International Rental Car | 2,153 | 1,755 | |||||
All Other Operations | 1,422 | 1,347 | |||||
Total revenue earning vehicles, net | 11,336 | 10,818 | |||||
Total assets | 20,058 | 19,155 | |||||
Total debt | 14,865 | 13,541 | |||||
Net vehicle debt(a) | 10,079 | 9,447 | |||||
Net non-vehicle debt(a) | 3,402 | 3,116 | |||||
Total equity | 1,520 | 1,075 |
(a) | Represents a non-GAAP measure, see the accompanying reconciliation included in Supplemental Schedule V. |
Twelve Months Ended December 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Cash from continuing operations provided by (used in): | |||||||
Operating activities | $ | 2,394 | $ | 2,529 | |||
Investing activities | (3,147 | ) | (1,996 | ) | |||
Financing activities | 988 | (183 | ) | ||||
Effect of exchange rate changes | 21 | (8 | ) | ||||
Net change in cash and cash equivalents | $ | 256 | $ | 342 | |||
Fleet growth(a) | $ | 144 | $ | 335 | |||
Adjusted free cash flow(a) | $ | (336 | ) | $ | 258 |
(a) | Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedules III and IV. |
Three Months Ended December 31, | Percent Inc/(Dec) | Twelve Months Ended December 31, | Percent Inc/(Dec) | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||
U.S. RAC | |||||||||||||||||||||||
Transaction days (in thousands) | 34,958 | 34,056 | 3 | % | 140,382 | 142,268 | (1 | )% | |||||||||||||||
Total RPD(a) | $ | 40.53 | $ | 41.02 | (1 | )% | $ | 42.06 | $ | 42.44 | (1 | )% | |||||||||||
Total RPU(a) | $ | 1,003 | $ | 984 | 2 | % | $ | 1,015 | $ | 1,038 | (2 | )% | |||||||||||
Average vehicles | 470,800 | 473,200 | (1 | )% | 484,700 | 484,800 | — | % | |||||||||||||||
Vehicle utilization(a) | 81 | % | 78 | % | 250 | bps | 79 | % | 80 | % | (80 | ) | bps | ||||||||||
Net depreciation per unit per month(a) | $ | 302 | $ | 321 | (6 | )% | $ | 327 | $ | 301 | 9 | % | |||||||||||
Percentage of program vehicles at period end | 7 | % | 6 | % | 10 | bps | 7 | % | 6 | % | 10 | bps | |||||||||||
Adjusted pre-tax income (loss) (in millions)(b) | $ | 7 | $ | (14 | ) | NM | $ | 13 | $ | 298 | (96 | )% | |||||||||||
International RAC | |||||||||||||||||||||||
Transaction days (in thousands) | 10,935 | 10,880 | 1 | % | 50,301 | 48,627 | 3 | % | |||||||||||||||
Total RPD(a) | $ | 40.42 | $ | 39.15 | 3 | % | $ | 40.18 | $ | 40.74 | (1 | )% | |||||||||||
Total RPU(a) | $ | 903 | $ | 871 | 4 | % | $ | 946 | $ | 952 | (1 | )% | |||||||||||
Average vehicles | 163,100 | 163,100 | — | % | 178,100 | 173,400 | 3 | % | |||||||||||||||
Vehicle utilization(a) | 73 | % | 73 | % | 40 | bps | 77 | % | 77 | % | 80 | bps | |||||||||||
Net depreciation per unit per month(a)(c) | $ | 194 | $ | 178 | 9 | % | $ | 181 | $ | 176 | 3 | % | |||||||||||
Percentage of program vehicles at period end | 34 | % | 31 | % | 310 | bps | 34 | % | 31 | % | 310 | bps | |||||||||||
Adjusted pre-tax income (loss) (in millions)(b) | $ | 4 | $ | 15 | (73 | )% | $ | 203 | $ | 194 | 5 | % | |||||||||||
All Other Operations | |||||||||||||||||||||||
Average vehicles — Donlen | 197,800 | 197,000 | — | % | 204,300 | 174,900 | 17 | % | |||||||||||||||
Adjusted pre-tax income (loss) (in millions)(b) | $ | 21 | $ | 19 | 11 | % | $ | 80 | $ | 72 | 11 | % |
(a) | Represents a key metric, see the accompanying calculations included in Supplemental Schedule VI. |
(b) | Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule II. |
Three Months Ended December 31, 2017 | Three Months Ended December 31, 2016 | ||||||||||||||||||||||||||||||||||||||
(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: | $ | 1,437 | $ | 487 | $ | 167 | $ | — | $ | 2,091 | $ | 1,417 | $ | 441 | $ | 151 | $ | — | $ | 2,009 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||||||
Direct vehicle and operating | 901 | 311 | 12 | (1 | ) | 1,223 | 873 | 277 | 5 | (1 | ) | 1,154 | |||||||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | 426 | 105 | 123 | — | 654 | 456 | 89 | 117 | — | 662 | |||||||||||||||||||||||||||||
Selling, general and administrative | 102 | 54 | 11 | 54 | 221 | 90 | 48 | 10 | 65 | 213 | |||||||||||||||||||||||||||||
Interest expense, net: | |||||||||||||||||||||||||||||||||||||||
Vehicle | 60 | 20 | 8 | — | 88 | 46 | 17 | 5 | — | 68 | |||||||||||||||||||||||||||||
Non-vehicle | (28 | ) | 1 | (3 | ) | 114 | 84 | (16 | ) | — | (2 | ) | 93 | 75 | |||||||||||||||||||||||||
Total interest expense, net | 32 | 21 | 5 | 114 | 172 | 30 | 17 | 3 | 93 | 143 | |||||||||||||||||||||||||||||
Goodwill and intangible asset impairments | — | — | — | — | — | 120 | 172 | — | — | 292 | |||||||||||||||||||||||||||||
Other (income) expense, net | — | — | — | — | — | (1 | ) | 19 | — | (7 | ) | 11 | |||||||||||||||||||||||||||
Total expenses | 1,461 | 491 | 151 | 167 | 2,270 | 1,568 | 622 | 135 | 150 | 2,475 | |||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (24 | ) | $ | (4 | ) | $ | 16 | $ | (167 | ) | (179 | ) | $ | (151 | ) | $ | (181 | ) | $ | 16 | $ | (150 | ) | (466 | ) | |||||||||||||
Income tax (provision) benefit from continuing operations | 795 | 28 | |||||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | 616 | (438 | ) | ||||||||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations | — | (2 | ) | ||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 616 | $ | (440 | ) |
Twelve Months Ended December 31, 2017 | Twelve Months Ended December 31, 2016 | ||||||||||||||||||||||||||||||||||||||
(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: | $ | 5,994 | $ | 2,169 | $ | 640 | $ | — | $ | 8,803 | $ | 6,114 | $ | 2,097 | $ | 592 | $ | — | $ | 8,803 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||||||
Direct vehicle and operating | 3,651 | 1,273 | 40 | (6 | ) | 4,958 | 3,646 | 1,256 | 22 | 8 | 4,932 | ||||||||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | 1,904 | 416 | 478 | — | 2,798 | 1,753 | 389 | 459 | — | 2,601 | |||||||||||||||||||||||||||||
Selling, general and administrative | 392 | 223 | 35 | 230 | 880 | 397 | 215 | 40 | 247 | 899 | |||||||||||||||||||||||||||||
Interest expense, net: | |||||||||||||||||||||||||||||||||||||||
Vehicle | 226 | 75 | 30 | — | 331 | 199 | 61 | 20 | — | 280 | |||||||||||||||||||||||||||||
Non-vehicle | (94 | ) | 5 | (11 | ) | 406 | 306 | (45 | ) | 5 | (6 | ) | 390 | 344 | |||||||||||||||||||||||||
Total interest expense, net | 132 | 80 | 19 | 406 | 637 | 154 | 66 | 14 | 390 | 624 | |||||||||||||||||||||||||||||
Goodwill and intangible asset impairments | 86 | — | — | — | 86 | 120 | 172 | — | — | 292 | |||||||||||||||||||||||||||||
Other (income) expense, net | — | (8 | ) | — | 27 | 19 | (12 | ) | 19 | — | (82 | ) | (75 | ) | |||||||||||||||||||||||||
Total expenses | 6,165 | 1,984 | 572 | 657 | 9,378 | 6,058 | 2,117 | 535 | 563 | 9,273 | |||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (171 | ) | $ | 185 | $ | 68 | $ | (657 | ) | (575 | ) | $ | 56 | $ | (20 | ) | $ | 57 | $ | (563 | ) | (470 | ) | |||||||||||||||
Income tax (provision) benefit from continuing operations | 902 | (4 | ) | ||||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | 327 | (474 | ) | ||||||||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations | — | (17 | ) | ||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 327 | $ | (491 | ) |
Three Months Ended December 31, 2017 | Three Months Ended December 31, 2016 | ||||||||||||||||||||||||||||||||||||||
(In millions, except per share data) | 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 | |||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (24 | ) | $ | (4 | ) | $ | 16 | $ | (167 | ) | $ | (179 | ) | $ | (151 | ) | $ | (181 | ) | $ | 16 | $ | (150 | ) | $ | (466 | ) | |||||||||||
Depreciation and amortization | 468 | 114 | 126 | 3 | 711 | 506 | 98 | 120 | 6 | 730 | |||||||||||||||||||||||||||||
Interest, net of interest income | 32 | 21 | 5 | 114 | 172 | 30 | 17 | 3 | 93 | 143 | |||||||||||||||||||||||||||||
Gross EBITDA | $ | 476 | $ | 131 | $ | 147 | $ | (50 | ) | $ | 704 | $ | 385 | $ | (66 | ) | $ | 139 | $ | (51 | ) | $ | 407 | ||||||||||||||||
Revenue earning vehicle depreciation and lease charges, net | (426 | ) | (105 | ) | (123 | ) | — | (654 | ) | (456 | ) | (89 | ) | (117 | ) | — | (662 | ) | |||||||||||||||||||||
Vehicle debt interest | (60 | ) | (20 | ) | (8 | ) | — | (88 | ) | (46 | ) | (17 | ) | (5 | ) | — | (68 | ) | |||||||||||||||||||||
Vehicle debt-related charges(a) | 6 | 2 | 1 | — | 9 | 5 | 2 | 1 | — | 8 | |||||||||||||||||||||||||||||
Loss on extinguishment of vehicle-related debt(b) | — | — | — | — | — | (1 | ) | — | — | — | (1 | ) | |||||||||||||||||||||||||||
Corporate EBITDA | $ | (4 | ) | $ | 8 | $ | 17 | $ | (50 | ) | $ | (29 | ) | $ | (113 | ) | $ | (170 | ) | $ | 18 | $ | (51 | ) | $ | (316 | ) | ||||||||||||
Non-cash stock-based employee compensation charges | — | — | — | 4 | 4 | — | — | — | (3 | ) | (3 | ) | |||||||||||||||||||||||||||
Restructuring and restructuring related charges(c) | 1 | 4 | — | 2 | 7 | (1 | ) | 2 | — | 11 | 12 | ||||||||||||||||||||||||||||
Sale of CAR, Inc. common stock(k) | — | — | — | — | — | — | — | — | (9 | ) | (9 | ) | |||||||||||||||||||||||||||
Impairment charges and asset write-downs(e) | — | — | — | 2 | 2 | 119 | 190 | — | — | 309 | |||||||||||||||||||||||||||||
Information technology and finance transformation costs(f) | 1 | — | — | 13 | 14 | — | — | — | 13 | 13 | |||||||||||||||||||||||||||||
Other items(g) | 12 | (1 | ) | 3 | 9 | 23 | 3 | 1 | — | 2 | 6 | ||||||||||||||||||||||||||||
Adjusted Corporate EBITDA | $ | 10 | $ | 11 | $ | 20 | $ | (20 | ) | $ | 21 | $ | 8 | $ | 23 | $ | 18 | $ | (37 | ) | $ | 12 | |||||||||||||||||
Non-vehicle depreciation and amortization | (42 | ) | (9 | ) | (3 | ) | (3 | ) | (57 | ) | (50 | ) | (9 | ) | (3 | ) | (6 | ) | (68 | ) | |||||||||||||||||||
Non-vehicle debt interest, net of interest income | 28 | (1 | ) | 3 | (114 | ) | (84 | ) | 16 | — | 2 | (93 | ) | (75 | ) | ||||||||||||||||||||||||
Non-vehicle debt-related charges(a) | — | — | — | 4 | 4 | — | — | — | 4 | 4 | |||||||||||||||||||||||||||||
Loss on extinguishment of non-vehicle-related debt(b) | — | — | — | 5 | 5 | — | — | — | 16 | 16 | |||||||||||||||||||||||||||||
Non-cash stock-based employee compensation charges | — | — | — | (4 | ) | (4 | ) | — | — | — | 3 | 3 | |||||||||||||||||||||||||||
Acquisition accounting(h) | 11 | 3 | 1 | 2 | 17 | 12 | 1 | 2 | — | 15 | |||||||||||||||||||||||||||||
Other | — | — | — | (4 | ) | (4 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Adjusted pre-tax income (loss)(i) | $ | 7 | $ | 4 | $ | 21 | $ | (134 | ) | $ | (102 | ) | $ | (14 | ) | $ | 15 | $ | 19 | $ | (113 | ) | $ | (93 | ) | ||||||||||||||
Income tax (provision) benefit on adjusted pre-tax income (loss)(j) | 38 | 34 | |||||||||||||||||||||||||||||||||||||
Adjusted net income (loss) | $ | (64 | ) | $ | (59 | ) | |||||||||||||||||||||||||||||||||
Weighted average number of diluted shares outstanding | 83 | 83 | |||||||||||||||||||||||||||||||||||||
Adjusted diluted earnings (loss) per share | $ | (0.77 | ) | $ | (0.71 | ) |
Twelve Months Ended December 31, 2017 | Twelve Months Ended December 31, 2016 | ||||||||||||||||||||||||||||||||||||||
(In millions, except per share data) | 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 | |||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (171 | ) | $ | 185 | $ | 68 | $ | (657 | ) | $ | (575 | ) | $ | 56 | $ | (20 | ) | $ | 57 | $ | (563 | ) | $ | (470 | ) | |||||||||||||
Depreciation and amortization | 2,085 | 449 | 489 | 15 | 3,038 | 1,951 | 422 | 470 | 23 | 2,866 | |||||||||||||||||||||||||||||
Interest, net of interest income | 132 | 80 | 19 | 406 | 637 | 154 | 66 | 14 | 390 | 624 | |||||||||||||||||||||||||||||
Gross EBITDA | $ | 2,046 | $ | 714 | $ | 576 | $ | (236 | ) | $ | 3,100 | $ | 2,161 | $ | 468 | $ | 541 | $ | (150 | ) | $ | 3,020 | |||||||||||||||||
Revenue earning vehicle depreciation and lease charges, net | (1,904 | ) | (416 | ) | (478 | ) | — | (2,798 | ) | (1,753 | ) | (389 | ) | (459 | ) | — | (2,601 | ) | |||||||||||||||||||||
Vehicle debt interest | (226 | ) | (75 | ) | (30 | ) | — | (331 | ) | (199 | ) | (61 | ) | (20 | ) | — | (280 | ) | |||||||||||||||||||||
Vehicle debt-related charges(a) | 20 | 8 | 4 | — | 32 | 17 | 8 | 3 | — | 28 | |||||||||||||||||||||||||||||
Loss on extinguishment of vehicle-related debt(b) | — | — | — | — | — | 6 | — | — | — | 6 | |||||||||||||||||||||||||||||
Corporate EBITDA | $ | (64 | ) | $ | 231 | $ | 72 | $ | (236 | ) | $ | 3 | $ | 232 | $ | 26 | $ | 65 | $ | (150 | ) | $ | 173 | ||||||||||||||||
Non-cash stock-based employee compensation charges(d) | — | — | — | 19 | 19 | — | — | — | 13 | 13 | |||||||||||||||||||||||||||||
Restructuring and restructuring related charges(c)(d) | 3 | 5 | — | 12 | 20 | 16 | 9 | 3 | 25 | 53 | |||||||||||||||||||||||||||||
Sale of CAR, Inc. common stock(k) | — | — | — | (3 | ) | (3 | ) | — | — | — | (84 | ) | (84 | ) | |||||||||||||||||||||||||
Impairment charges and asset write-downs(e) | 86 | — | — | 32 | 118 | 149 | 190 | 1 | — | 340 | |||||||||||||||||||||||||||||
Information technology and finance transformation costs(f) | 1 | — | — | 67 | 68 | 11 | — | — | 42 | 53 | |||||||||||||||||||||||||||||
Other items(g) | 24 | (1 | ) | 2 | 17 | 42 | (8 | ) | 3 | — | 10 | 5 | |||||||||||||||||||||||||||
Adjusted Corporate EBITDA | $ | 50 | $ | 235 | $ | 74 | $ | (92 | ) | $ | 267 | $ | 400 | $ | 228 | $ | 69 | $ | (144 | ) | $ | 553 | |||||||||||||||||
Non-vehicle depreciation and amortization | (181 | ) | (33 | ) | (11 | ) | (15 | ) | (240 | ) | (198 | ) | (33 | ) | (11 | ) | (23 | ) | (265 | ) | |||||||||||||||||||
Non-vehicle debt interest, net of interest income | 94 | (5 | ) | 11 | (406 | ) | (306 | ) | 45 | (5 | ) | 6 | (390 | ) | (344 | ) | |||||||||||||||||||||||
Non-vehicle debt-related charges(a) | — | — | — | 15 | 15 | — | — | — | 20 | 20 | |||||||||||||||||||||||||||||
Loss on extinguishment of non-vehicle-related debt(b) | — | — | — | 13 | 13 | — | — | — | 49 | 49 | |||||||||||||||||||||||||||||
Non-cash stock-based employee compensation charges(d) | — | — | — | (19 | ) | (19 | ) | — | — | — | (13 | ) | (13 | ) | |||||||||||||||||||||||||
Acquisition accounting(h) | 50 | 6 | 6 | — | 62 | 51 | 4 | 8 | 2 | 65 | |||||||||||||||||||||||||||||
Other(d) | — | — | — | (2 | ) | (2 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Adjusted pre-tax income (loss)(i) | $ | 13 | $ | 203 | $ | 80 | $ | (506 | ) | $ | (210 | ) | $ | 298 | $ | 194 | $ | 72 | $ | (499 | ) | $ | 65 | ||||||||||||||||
Income tax (provision) benefit on adjusted pre-tax income (loss)(j) | 78 | (24 | ) | ||||||||||||||||||||||||||||||||||||
Adjusted net income (loss) | $ | (132 | ) | $ | 41 | ||||||||||||||||||||||||||||||||||
Weighted average number of diluted shares outstanding | 83 | 84 | |||||||||||||||||||||||||||||||||||||
Adjusted diluted earnings (loss) per share | $ | (1.59 | ) | $ | 0.49 |
(a) | Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums. |
(b) | In 2017, primarily comprised of $6 million of early redemption premium and write-off of deferred financing costs associated with the redemption of the outstanding 4.25% Senior Notes due April 2018 during the second quarter and the fourth quarter write-off of approximately $7 million in deferred financing costs associated with the termination of commitments under the Senior RCF. In 2016, primarily comprised of the second quarter 2016 write‑off of deferred financing costs and debt discount of $20 million as a result of paying off the Senior Term Facility and various vehicle debt refinancings, an early redemption premium of $13 million and the write‑off of |
(c) | Represents charges incurred under restructuring actions as defined in U.S. GAAP, excluding impairments and asset write-downs, which are shown separately in the table. Also includes restructuring related charges such as 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 $5 million and $8 million of consulting costs and legal fees related to the previously disclosed accounting review and investigation in 2017 and 2016, respectively. |
(d) | For purposes of this reconciliation, due to the nature of certain costs, $2 million of restructuring and restructuring related costs have been reclassed to non-cash stock-based compensation charges for the twelve months ended December 31, 2017. |
(e) | In 2017, primarily represents a second quarter $86 million impairment of the Dollar Thrifty tradenames and a first quarter impairment of $30 million related to an equity method investment. In 2016, includes a third quarter impairment of $25 million of certain tangible assets used in the U.S. RAC segment in conjunction with a restructuring program. Also includes a $120 million impairment of the Dollar Thrifty tradenames, a $172 million impairment of goodwill associated with the Company's vehicle rental operations in Europe, and a $18 million impairment of certain assets used in the Company's Brazil operations, all of which were recorded in the fourth quarter 2016. |
(f) | Represents costs associated with the Company’s information technology and finance transformation programs, both of which are multi-year initiatives that commenced in 2016 to upgrade and modernize the Company’s systems and processes. |
(g) | Represents miscellaneous and non-recurring items. In 2017, includes second quarter charges of $5 million relating to PLPD as a result of a terrorist event. Also includes net expenses of $16 million primarily due to charges in the third quarter 2017 related to the hurricanes, offset by $6 million gain on the sale of the Company's Brazil Operations and a return of capital from an equity method investment resulting in a $4 million gain. Additionally, includes fourth quarter charges of $5 million associated with strategic financings. For 2016, includes a $9 million settlement gain recorded in the first quarter from an eminent domain case related to one of the Company's airport locations. |
(h) | Represents incremental expense associated with amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting. |
(i) | Adjustments by caption to arrive at adjusted pre-tax income (loss) are as follows: |
Increase (decrease) to expenses | Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Direct vehicle and operating | $ | (27 | ) | $ | (15 | ) | $ | (93 | ) | $ | (98 | ) | |||
Selling, general and administrative | (26 | ) | (29 | ) | (99 | ) | (115 | ) | |||||||
Interest expense, net: | |||||||||||||||
Vehicle | (9 | ) | (7 | ) | (32 | ) | (37 | ) | |||||||
Non-vehicle | (9 | ) | (19 | ) | (28 | ) | (65 | ) | |||||||
Total interest expense, net | (18 | ) | (26 | ) | (60 | ) | (102 | ) | |||||||
Goodwill and intangible asset impairments | — | (292 | ) | (86 | ) | (292 | ) | ||||||||
Other income (expense), net | (6 | ) | (11 | ) | (27 | ) | 72 | ||||||||
Total adjustments | $ | (77 | ) | $ | (373 | ) | $ | (365 | ) | $ | (535 | ) |
(j) | Derived utilizing a combined statutory rate of 37% applied to the adjusted income (loss) before income taxes. |
(k) | Represents the pre-tax gain on the sale of CAR Inc. common stock. |
Twelve Months Ended December 31, 2017 | Twelve Months Ended December 31, 2016 | ||||||||||||||||||||||||||||||
(In millions) | U.S. Rental Car | Int'l Rental Car | All Other Operations | Hertz Global | U.S. Rental Car | Int'l Rental Car | All Other Operations | Hertz Global | |||||||||||||||||||||||
Revenue earning vehicles expenditures(a) | $ | (6,747 | ) | $ | (3,118 | ) | $ | (731 | ) | $ | (10,596 | ) | $ | (7,311 | ) | $ | (2,840 | ) | $ | (721 | ) | $ | (10,872 | ) | |||||||
Proceeds from disposal of revenue earning vehicles(a) | 4,870 | 2,600 | 183 | 7,653 | 5,976 | 2,494 | 209 | 8,679 | |||||||||||||||||||||||
Net revenue earning vehicles capital expenditures | (1,877 | ) | (518 | ) | (548 | ) | (2,943 | ) | (1,335 | ) | (346 | ) | (512 | ) | (2,193 | ) | |||||||||||||||
Depreciation of revenue earning vehicles, net | 1,903 | 341 | 478 | 2,722 | 1,753 | 319 | 459 | 2,531 | |||||||||||||||||||||||
Financing activity related to vehicles: | |||||||||||||||||||||||||||||||
Borrowings | 8,316 | 1,455 | 985 | 10,756 | 6,410 | 2,456 | 826 | 9,692 | |||||||||||||||||||||||
Payments | (7,952 | ) | (1,363 | ) | (929 | ) | (10,244 | ) | (6,722 | ) | (2,265 | ) | (761 | ) | (9,748 | ) | |||||||||||||||
Restricted cash changes | (181 | ) | 32 | 2 | (147 | ) | 112 | (61 | ) | 2 | 53 | ||||||||||||||||||||
Net financing activity related to vehicles | 183 | 124 | 58 | 365 | (200 | ) | 130 | 67 | (3 | ) | |||||||||||||||||||||
Fleet growth | $ | 209 | $ | (53 | ) | $ | (12 | ) | $ | 144 | $ | 218 | $ | 103 | $ | 14 | $ | 335 |
(a) | In 2016, includes an $85 million classification correction in the International RAC segment which decreased both revenue earning vehicles expenditures and proceeds from disposal of revenue earning vehicles and did not impact net revenue earning vehicles capital expenditures. |
Twelve Months Ended December 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Net cash provided by operating activities | $ | 2,394 | $ | 2,529 | |||
Net change in restricted cash and cash equivalents, vehicle | (147 | ) | 53 | ||||
Revenue earning vehicles expenditures | (10,596 | ) | (10,872 | ) | |||
Proceeds from disposal of revenue earning vehicles | 7,653 | 8,679 | |||||
Capital asset expenditures, non-vehicle | (173 | ) | (134 | ) | |||
Proceeds from disposal of property and other equipment | 21 | 59 | |||||
Proceeds from issuance of vehicle debt | 10,756 | 9,692 | |||||
Repayments of vehicle debt | (10,244 | ) | (9,748 | ) | |||
Adjusted free cash flow | $ | (336 | ) | $ | 258 |
As of December 31, 2017 | As of December 31, 2016 | ||||||||||||||||||||||
(In millions) | Vehicle | Non-Vehicle | Total | Vehicle | Non-Vehicle | Total | |||||||||||||||||
Debt as reported in the balance sheet | $ | 10,431 | $ | 4,434 | $ | 14,865 | $ | 9,646 | $ | 3,895 | $ | 13,541 | |||||||||||
Add: | |||||||||||||||||||||||
Debt issue costs deducted from debt obligations | 34 | 40 | 74 | 36 | 37 | 73 | |||||||||||||||||
Less: | |||||||||||||||||||||||
Cash and cash equivalents | — | 1,072 | 1,072 | — | 816 | 816 | |||||||||||||||||
Restricted cash | 386 | — | 386 | 235 | — | 235 | |||||||||||||||||
Net debt | $ | 10,079 | $ | 3,402 | $ | 13,481 | $ | 9,447 | $ | 3,116 | $ | 12,563 |
Three Months Ended December 31, | Percent Inc/(Dec) | Twelve Months Ended December 31, | Percent Inc/(Dec) | ||||||||||||||||||||
($ in millions, except where noted) | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Total RPD | |||||||||||||||||||||||
Revenues | $ | 1,437 | $ | 1,417 | $ | 5,994 | $ | 6,114 | |||||||||||||||
Ancillary retail vehicle sales revenue | (20 | ) | (20 | ) | (90 | ) | (76 | ) | |||||||||||||||
Total rental revenue | $ | 1,417 | $ | 1,397 | $ | 5,904 | $ | 6,038 | |||||||||||||||
Transaction days (in thousands) | 34,958 | 34,056 | 140,382 | 142,268 | |||||||||||||||||||
Total RPD (in whole dollars) | $ | 40.53 | $ | 41.02 | (1 | )% | $ | 42.06 | $ | 42.44 | (1 | )% | |||||||||||
Total Revenue Per Unit Per Month | |||||||||||||||||||||||
Total rental revenue | $ | 1,417 | $ | 1,397 | $ | 5,904 | $ | 6,038 | |||||||||||||||
Average vehicles | 470,800 | 473,200 | 484,700 | 484,800 | |||||||||||||||||||
Total revenue per unit (in whole dollars) | $ | 3,010 | $ | 2,952 | $ | 12,181 | $ | 12,455 | |||||||||||||||
Number of months in period | 3 | 3 | 12 | 12 | |||||||||||||||||||
Total RPU (in whole dollars) | $ | 1,003 | $ | 984 | 2 | % | $ | 1,015 | $ | 1,038 | (2 | )% | |||||||||||
Vehicle Utilization | |||||||||||||||||||||||
Transaction days (in thousands) | 34,958 | 34,056 | 140,382 | 142,268 | |||||||||||||||||||
Average vehicles | 470,800 | 473,200 | 484,700 | 484,800 | |||||||||||||||||||
Number of days in period | 92 | 92 | 365 | 366 | |||||||||||||||||||
Available car days (in thousands) | 43,314 | 43,534 | 176,916 | 177,437 | |||||||||||||||||||
Vehicle utilization(a) | 81 | % | 78 | % | 250 | bps | 79 | % | 80 | % | (80 | ) | bps | ||||||||||
Net Depreciation Per Unit Per Month | |||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 426 | $ | 456 | $ | 1,904 | $ | 1,753 | |||||||||||||||
Average vehicles | 470,800 | 473,200 | 484,700 | 484,800 | |||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net divided by average vehicles (in whole dollars) | $ | 905 | $ | 964 | $ | 3,928 | $ | 3,616 | |||||||||||||||
Number of months in period | 3 | 3 | 12 | 12 | |||||||||||||||||||
Net depreciation per unit per month (in whole dollars) | $ | 302 | $ | 321 | (6 | )% | $ | 327 | $ | 301 | 9 | % |
(a) | Calculated as transaction days divided by available car days. |
Three Months Ended December 31, | Percent Inc/(Dec) | Twelve Months Ended December 31, | Percent Inc/(Dec) | ||||||||||||||||||||
($ in millions, except where noted) | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Total RPD | |||||||||||||||||||||||
Revenues | $ | 487 | $ | 441 | $ | 2,169 | $ | 2,097 | |||||||||||||||
Foreign currency adjustment(a) | (45 | ) | (15 | ) | (148 | ) | (116 | ) | |||||||||||||||
Total rental revenue | $ | 442 | $ | 426 | $ | 2,021 | $ | 1,981 | |||||||||||||||
Transaction days (in thousands) | 10,935 | 10,880 | 50,301 | 48,627 | |||||||||||||||||||
Total RPD (in whole dollars) | $ | 40.42 | $ | 39.15 | 3 | % | $ | 40.18 | $ | 40.74 | (1 | )% | |||||||||||
Total Revenue Per Unit Per Month | |||||||||||||||||||||||
Total rental revenue | $ | 442 | $ | 426 | $ | 2,021 | $ | 1,981 | |||||||||||||||
Average vehicles | 163,100 | 163,100 | 178,100 | 173,400 | |||||||||||||||||||
Total revenue per unit (in whole dollars) | $ | 2,710 | $ | 2,612 | $ | 11,348 | $ | 11,424 | |||||||||||||||
Number of months in period | 3 | 3 | 12 | 12 | |||||||||||||||||||
Total RPU (in whole dollars) | $ | 903 | $ | 871 | 4 | % | $ | 946 | $ | 952 | (1 | )% | |||||||||||
Vehicle Utilization | |||||||||||||||||||||||
Transaction days (in thousands) | 10,935 | 10,880 | 50,301 | 48,627 | |||||||||||||||||||
Average vehicles | 163,100 | 163,100 | 178,100 | 173,400 | |||||||||||||||||||
Number of days in period | 92 | 92 | 365 | 366 | |||||||||||||||||||
Available car days (in thousands) | 15,005 | 15,005 | 65,007 | 63,464 | |||||||||||||||||||
Vehicle utilization(b) | 73 | % | 73 | % | 40 | bps | 77 | % | 77 | % | 80 | bps | |||||||||||
Net Depreciation Per Unit Per Month | |||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 105 | $ | 89 | $ | 416 | $ | 389 | |||||||||||||||
Foreign currency adjustment(a) | (10 | ) | (2 | ) | (29 | ) | (22 | ) | |||||||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges, net | $ | 95 | $ | 87 | $ | 387 | $ | 367 | |||||||||||||||
Average vehicles | 163,100 | 163,100 | 178,100 | 173,400 | |||||||||||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges, net divided by average vehicles (in whole dollars) | $ | 582 | $ | 533 | $ | 2,173 | $ | 2,116 | |||||||||||||||
Number of months in period | 3 | 3 | 12 | 12 | |||||||||||||||||||
Net depreciation per unit per month (in whole dollars) | $ | 194 | $ | 178 | 9 | % | $ | 181 | $ | 176 | 3 | % |
(a) | Based on December 31, 2016 foreign exchange rates. |
(b) | Calculated as transaction days divided by available car days. |
Three Months Ended December 31, | Percent Inc/(Dec) | Twelve Months Ended December 31, | Percent Inc/(Dec) | |||||||||||||||||||
($ in millions, except where noted) | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Total RPD | ||||||||||||||||||||||
Revenues | $ | 1,924 | $ | 1,858 | $ | 8,163 | $ | 8,211 | ||||||||||||||
Ancillary retail vehicle sales revenue | (20 | ) | (20 | ) | (90 | ) | (76 | ) | ||||||||||||||
Foreign currency adjustment(a) | (45 | ) | (15 | ) | (148 | ) | (116 | ) | ||||||||||||||
Total rental revenue | $ | 1,859 | $ | 1,823 | $ | 7,925 | $ | 8,019 | ||||||||||||||
Transaction days (in thousands) | 45,893 | 44,936 | 190,683 | 190,895 | ||||||||||||||||||
Total RPD (in whole dollars) | $ | 40.51 | $ | 40.57 | — | % | $ | 41.56 | $ | 42.01 | (1 | )% | ||||||||||
Total Revenue Per Unit Per Month | ||||||||||||||||||||||
Total rental revenue | $ | 1,859 | $ | 1,823 | $ | 7,925 | $ | 8,019 | ||||||||||||||
Average vehicles | 633,900 | 636,300 | 662,800 | 658,200 | ||||||||||||||||||
Total revenue per unit (in whole dollars) | $ | 2,933 | $ | 2,865 | $ | 11,957 | $ | 12,183 | ||||||||||||||
Number of months in period | 3 | 3 | 12 | 12 | ||||||||||||||||||
Total RPU (in whole dollars) | $ | 978 | $ | 955 | 2 | % | $ | 996 | $ | 1,015 | (2 | )% | ||||||||||
Vehicle Utilization | ||||||||||||||||||||||
Transaction days (in thousands) | 45,893 | 44,936 | 190,683 | 190,895 | ||||||||||||||||||
Average vehicles | 633,900 | 636,300 | 662,800 | 658,200 | ||||||||||||||||||
Number of days in period | 92 | 92 | 365 | 366 | ||||||||||||||||||
Available car days (in thousands) | 58,319 | 58,540 | 241,922 | 240,901 | ||||||||||||||||||
Vehicle utilization(b) | 79 | % | 77 | % | 190 | bps | 79 | % | 79 | % | (40 | ) | bps | |||||||||
Net Depreciation Per Unit Per Month | ||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 531 | $ | 545 | $ | 2,320 | $ | 2,142 | ||||||||||||||
Foreign currency adjustment(a) | (10 | ) | (2 | ) | (29 | ) | (22 | ) | ||||||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges, net | $ | 521 | $ | 543 | $ | 2,291 | $ | 2,120 | ||||||||||||||
Average vehicles | 633,900 | 636,300 | 662,800 | 658,200 | ||||||||||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges, net divided by average vehicles (in whole dollars) | $ | 822 | $ | 853 | $ | 3,457 | $ | 3,221 | ||||||||||||||
Number of months in period | 3 | 3 | 12 | 12 | ||||||||||||||||||
Net depreciation per unit per month (in whole dollars) | $ | 274 | $ | 284 | (4 | )% | $ | 288 | $ | 268 | 7 | % |
(a) | Based on December 31, 2016 foreign exchange rates. |
(b) | Calculated as transaction days divided by available car days. |
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