DELAWARE | 001-37665 | 61-1770902 | ||
DELAWARE | 001-07541 | 13-1938568 | ||
(State, or jurisdiction 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/ JAMERE JACKSON | |
Name: | Jamere Jackson | |
Title: | Executive Vice President and Chief Financial Officer |
• | Total revenues increased 7%; U.S. RAC total revenues up 10% |
• | Net income attributable to Hertz Global improved 52% to $141 million |
• | Adjusted Corporate EBITDA improved 9% to $351 million |
• | U.S. RAC Total RPD up 3% |
• | U.S. RAC Net Depreciation Per Unit Per Month decreased 15% |
U.S. RAC(1) | Three Months Ended September 30, | Percent Inc/(Dec) | |||||||||
($ in millions, except where noted) | 2018 | 2017 | |||||||||
Total revenues | $ | 1,852 | $ | 1,685 | 10 | % | |||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 414 | $ | 455 | (9 | )% | |||||
Direct vehicle operating ("DOE") and selling, general & administrative ("SG&A") expenses | $ | 1,196 | $ | 1,064 | 12 | % | |||||
DOE and SG&A as a percentage of total revenues | 65 | % | 63 | % | 140 | bps | |||||
Income (loss) before income taxes | $ | 203 | $ | 131 | 55 | % | |||||
Adjusted Pre-tax Income (Loss) | $ | 222 | $ | 158 | 41 | % | |||||
Adjusted Pre-tax Margin | 12 | % | 9 | % | 260 | bps | |||||
Adjusted Corporate EBITDA | $ | 208 | $ | 166 | 25 | % | |||||
Adjusted Corporate EBITDA Margin | 11 | % | 10 | % | 140 | bps | |||||
Average Vehicles (in whole units) | 527,900 | 495,000 | 7 | % | |||||||
Vehicle Utilization | 81 | % | 81 | % | 30 | bps | |||||
Transaction Days (in thousands) | 39,478 | 36,879 | 7 | % | |||||||
Total RPD (in whole dollars) | $ | 46.23 | $ | 45.04 | 3 | % | |||||
Total RPU Per Month (in whole dollars) | $ | 1,152 | $ | 1,119 | 3 | % | |||||
Net Depreciation Per Unit Per Month (in whole dollars) | $ | 261 | $ | 306 | (15 | )% |
International RAC(1) | Three Months Ended September 30, | Percent Inc/(Dec) | |||||||||
($ in millions, except where noted) | 2018 | 2017 | |||||||||
Total revenues | $ | 732 | $ | 728 | 1 | % | |||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 128 | $ | 126 | 2 | % | |||||
Direct vehicle operating ("DOE") and selling, general & administrative ("SG&A") expenses | $ | 449 | $ | 435 | 3 | % | |||||
DOE and SG&A as a percentage of total revenues | 61 | % | 60 | % | 160 | bps | |||||
Income (loss) before income taxes | $ | 131 | $ | 152 | (14 | )% | |||||
Adjusted Pre-tax Income (Loss) | $ | 133 | $ | 147 | (10 | )% | |||||
Adjusted Pre-tax Margin | 18 | % | 20 | % | (200 | ) | bps | ||||
Adjusted Corporate EBITDA | $ | 140 | $ | 158 | (11 | )% | |||||
Adjusted Corporate EBITDA Margin | 19 | % | 22 | % | (260 | ) | bps | ||||
Average Vehicles (in whole units) | 214,900 | 212,600 | 1 | % | |||||||
Vehicle Utilization | 80 | % | 82 | % | (120 | ) | bps | ||||
Transaction Days (in thousands) | 15,876 | 15,947 | — | % | |||||||
Total RPD (in whole dollars) | $ | 47.37 | $ | 46.03 | 3 | % | |||||
Total RPU Per Month (in whole dollars) | $ | 1,166 | $ | 1,151 | 1 | % | |||||
Net Depreciation Per Unit Per Month (in whole dollars) | $ | 205 | $ | 199 | 3 | % |
All Other Operations(1) | Three Months Ended September 30, | Percent Inc/(Dec) | |||||||||
($ in millions) | 2018 | 2017 | |||||||||
Total revenues | $ | 174 | $ | 159 | 9 | % | |||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 130 | $ | 119 | 9 | % | |||||
Direct vehicle operating ("DOE") and selling, general & administrative ("SG&A") expenses | $ | 18 | $ | 17 | 6 | % | |||||
DOE and SG&A as a percentage of total revenues | 10 | % | 11 | % | (40 | ) | bps | ||||
Income (loss) before income taxes | $ | 19 | $ | 17 | 12 | % | |||||
Adjusted Pre-tax Income (Loss) | $ | 22 | $ | 20 | 10 | % | |||||
Adjusted Pre-tax Margin | 13 | % | 13 | % | 10 | bps | |||||
Adjusted Corporate EBITDA | $ | 19 | $ | 18 | 6 | % | |||||
Adjusted Corporate EBITDA Margin | 11 | % | 11 | % | (40 | ) | bps | ||||
Average Vehicles - Donlen | 185,300 | 205,600 | (10 | )% |
(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 Per Month and Net Depreciation Per Unit Per Month are key metrics. See the accompanying Supplemental Schedules and Definitions for the reconciliations and definitions for each of these non-GAAP measures and key metrics and the reason the Company's management believes that this information is useful to investors. |
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 September 30, | As a Percentage of Total Revenues | Nine Months Ended September 30, | As a Percentage of Total Revenues | ||||||||||||||||||||||||
(In millions, except per share data) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Total revenues | $ | 2,758 | $ | 2,572 | 100 | % | 100 | % | $ | 7,209 | $ | 6,713 | 100 | % | 100 | % | |||||||||||
Expenses: | |||||||||||||||||||||||||||
Direct vehicle and operating | 1,459 | 1,348 | 53 | % | 52 | % | 4,043 | 3,735 | 56 | % | 56 | % | |||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | 672 | 700 | 24 | % | 27 | % | 2,020 | 2,144 | 28 | % | 32 | % | |||||||||||||||
Selling, general and administrative | 265 | 217 | 10 | % | 8 | % | 765 | 661 | 11 | % | 10 | % | |||||||||||||||
Interest expense, net: | |||||||||||||||||||||||||||
Vehicle | 115 | 90 | 4 | % | 3 | % | 336 | 242 | 5 | % | 4 | % | |||||||||||||||
Non-vehicle | 73 | 86 | 3 | % | 3 | % | 218 | 223 | 3 | % | 3 | % | |||||||||||||||
Total interest expense, net | 188 | 176 | 7 | % | 7 | % | 554 | 465 | 8 | % | 7 | % | |||||||||||||||
Intangible asset impairments | — | — | — | % | — | % | — | 86 | — | % | 1 | % | |||||||||||||||
Other (income) expense, net | (7 | ) | (12 | ) | — | % | — | % | (36 | ) | 19 | — | % | — | % | ||||||||||||
Total expenses | 2,577 | 2,429 | 93 | % | 94 | % | 7,346 | 7,110 | 102 | % | 106 | % | |||||||||||||||
Income (loss) before income taxes | 181 | 143 | 7 | % | 6 | % | (137 | ) | (397 | ) | (2 | )% | (6 | )% | |||||||||||||
Income tax (provision) benefit | (41 | ) | (50 | ) | (1 | )% | (2 | )% | 12 | 108 | — | % | 2 | % | |||||||||||||
Net Income (loss) | $ | 140 | $ | 93 | 5 | % | 4 | % | (125 | ) | (289 | ) | (2 | )% | (4 | )% | |||||||||||
Net (income) loss attributable to noncontrolling interests | 1 | — | — | % | — | % | 1 | — | — | % | — | % | |||||||||||||||
Net income (loss) attributable to Hertz Global | 141 | 93 | 5 | % | 4 | % | (124 | ) | (289 | ) | (2 | )% | (4 | )% | |||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||||||
Basic | 84 | 83 | 83 | 83 | |||||||||||||||||||||||
Diluted | 84 | 83 | 83 | 83 | |||||||||||||||||||||||
Earnings (loss) per share - basic and diluted: | |||||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 1.68 | $ | 1.12 | $ | (1.49 | ) | $ | (3.48 | ) | |||||||||||||||||
Diluted earnings (loss) per share | $ | 1.68 | $ | 1.12 | $ | (1.49 | ) | $ | (3.48 | ) | |||||||||||||||||
Adjusted Pre-tax Income (Loss)(a) | $ | 240 | $ | 188 | $ | 44 | $ | (107 | ) | ||||||||||||||||||
Adjusted Net Income (Loss)(a) | $ | 180 | $ | 118 | $ | 33 | $ | (67 | ) | ||||||||||||||||||
Adjusted Diluted Earnings (Loss) Per Share(a) | $ | 2.14 | $ | 1.42 | $ | 0.40 | $ | (0.81 | ) | ||||||||||||||||||
Adjusted Corporate EBITDA(a) | $ | 351 | $ | 321 | $ | 384 | $ | 246 |
(a) | Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule II. |
(In millions) | September 30, 2018 | December 31, 2017 | |||||
Cash and cash equivalents | $ | 761 | $ | 1,072 | |||
Total restricted cash | 265 | 432 | |||||
Revenue earning vehicles, net: | |||||||
U.S. Rental Car | 9,189 | 7,761 | |||||
International Rental Car | 2,929 | 2,153 | |||||
All Other Operations | 1,459 | 1,422 | |||||
Total revenue earning vehicles, net | 13,577 | 11,336 | |||||
Total assets | 22,460 | 20,058 | |||||
Total debt | 17,158 | 14,865 | |||||
Net Vehicle Debt(a) | 12,544 | 10,079 | |||||
Net Non-vehicle Debt(a) | 3,693 | 3,402 | |||||
Total stockholders' equity | 1,227 | 1,520 |
(a) | Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule V. |
Nine Months Ended September 30, | |||||||
(In millions) | 2018 | 2017 | |||||
Cash flows provided by (used in): | |||||||
Operating activities | $ | 2,017 | $ | 1,977 | |||
Investing activities | (4,799 | ) | (3,405 | ) | |||
Financing activities | 2,308 | 2,085 | |||||
Effect of exchange rate changes | (4 | ) | 26 | ||||
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents(a) | $ | (478 | ) | $ | 683 | ||
Fleet Growth(b) | $ | (252 | ) | $ | (200 | ) | |
Adjusted Free Cash Flow(b) | $ | (259 | ) | $ | (418 | ) |
(a) | Under recent accounting guidance issued by the Financial Accounting Standards Board, effective January 1, 2018 and applied retrospectively, the changes in total cash, cash equivalents, restricted cash and restricted cash equivalents are required to be presented in the statement of cash flows. Previously only changes in total cash and cash equivalents were presented in the statement of cash flows. As a result, for the nine months ended September 30, 2017, the net change in cash, cash equivalents, restricted cash and restricted cash equivalents increased by $751 million compared to the amount previously reported. |
(b) | Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedules III and IV. |
Three Months Ended September 30, | Percent Inc/(Dec) | Nine Months Ended September 30, | Percent Inc/(Dec) | ||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
U.S. RAC | |||||||||||||||||||||||
Transaction Days (in thousands) | 39,478 | 36,879 | 7 | % | 112,427 | 105,424 | 7 | % | |||||||||||||||
Total RPD(a) | $ | 46.23 | $ | 45.04 | 3 | % | $ | 42.93 | $ | 42.56 | 1 | % | |||||||||||
Total RPU Per Month(a) | $ | 1,152 | $ | 1,119 | 3 | % | $ | 1,052 | $ | 1,019 | 3 | % | |||||||||||
Average Vehicles (in whole units) | 527,900 | 495,000 | 7 | % | 509,800 | 489,300 | 4 | % | |||||||||||||||
Vehicle Utilization(a) | 81 | % | 81 | % | 30 | bps | 81 | % | 79 | % | 190 | bps | |||||||||||
Net Depreciation Per Unit Per Month(a) | $ | 261 | $ | 306 | (15 | )% | $ | 282 | $ | 336 | (16 | )% | |||||||||||
Percentage of program vehicles at period end | 12 | % | 9 | % | 290 | bps | 12 | % | 9 | % | 290 | bps | |||||||||||
Adjusted Pre-tax Income (Loss) (in millions)(b) | $ | 222 | $ | 158 | 41 | % | $ | 200 | $ | 5 | NM | ||||||||||||
International RAC | |||||||||||||||||||||||
Transaction Days (in thousands) | 15,876 | 15,947 | — | % | 39,075 | 39,366 | (1 | )% | |||||||||||||||
Total RPD(a) | $ | 47.37 | $ | 46.03 | 3 | % | $ | 46.01 | $ | 44.56 | 3 | % | |||||||||||
Total RPU Per Month(a) | $ | 1,166 | $ | 1,151 | 1 | % | $ | 1,088 | $ | 1,064 | 2 | % | |||||||||||
Average Vehicles (in whole units) | 214,900 | 212,600 | 1 | % | 183,600 | 183,100 | — | % | |||||||||||||||
Vehicle Utilization(a) | 80 | % | 82 | % | (120 | ) | bps | 78 | % | 79 | % | (80 | ) | bps | |||||||||
Net Depreciation Per Unit Per Month(a) | $ | 205 | $ | 199 | 3 | % | $ | 208 | $ | 197 | 6 | % | |||||||||||
Percentage of program vehicles at period end | 45 | % | 45 | % | 20 | bps | 45 | % | 45 | % | 20 | bps | |||||||||||
Adjusted Pre-tax Income (Loss) (in millions)(b) | $ | 133 | $ | 147 | (10 | )% | $ | 201 | $ | 200 | 1 | % | |||||||||||
All Other Operations | |||||||||||||||||||||||
Average Vehicles — Donlen | 185,300 | 205,600 | (10 | )% | 188,200 | 206,500 | (9 | )% | |||||||||||||||
Adjusted Pre-tax Income (Loss) (in millions)(b) | $ | 22 | $ | 20 | 10 | % | $ | 68 | $ | 59 | 15 | % |
(a) | See the accompanying calculations of this key metric in Supplemental Schedule VI. |
(b) | Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule II. |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | ||||||||||||||||||||||||||||||||||||||
(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: | $ | 1,852 | $ | 732 | $ | 174 | $ | — | $ | 2,758 | $ | 1,685 | $ | 728 | $ | 159 | $ | — | $ | 2,572 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||||||
Direct vehicle and operating | 1,068 | 384 | 8 | (1 | ) | 1,459 | 970 | 372 | 9 | (3 | ) | 1,348 | |||||||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | 414 | 128 | 130 | — | 672 | 455 | 126 | 119 | — | 700 | |||||||||||||||||||||||||||||
Selling, general and administrative | 128 | 65 | 10 | 62 | 265 | 94 | 63 | 8 | 52 | 217 | |||||||||||||||||||||||||||||
Interest expense, net: | |||||||||||||||||||||||||||||||||||||||
Vehicle | 79 | 25 | 11 | — | 115 | 61 | 20 | 9 | — | 90 | |||||||||||||||||||||||||||||
Non-vehicle | (40 | ) | — | (4 | ) | 117 | 73 | (26 | ) | 4 | (3 | ) | 111 | 86 | |||||||||||||||||||||||||
Total interest expense, net | 39 | 25 | 7 | 117 | 188 | 35 | 24 | 6 | 111 | 176 | |||||||||||||||||||||||||||||
Other (income) expense, net | — | (1 | ) | — | (6 | ) | (7 | ) | — | (9 | ) | — | (3 | ) | (12 | ) | |||||||||||||||||||||||
Total expenses | 1,649 | 601 | 155 | 172 | 2,577 | 1,554 | 576 | 142 | 157 | 2,429 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 203 | $ | 131 | $ | 19 | $ | (172 | ) | 181 | $ | 131 | $ | 152 | $ | 17 | $ | (157 | ) | 143 | |||||||||||||||||||
Income tax (provision) benefit | (41 | ) | (50 | ) | |||||||||||||||||||||||||||||||||||
Net income (loss) | 140 | 93 | |||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | 1 | — | |||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Hertz Global | $ | 141 | $ | 93 |
Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||||||||||||||||||||||||||||||||||
(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: | $ | 4,905 | $ | 1,789 | $ | 515 | $ | — | $ | 7,209 | $ | 4,557 | $ | 1,683 | $ | 473 | $ | — | $ | 6,713 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||||||
Direct vehicle and operating | 3,016 | 1,006 | 25 | (4 | ) | 4,043 | 2,750 | 962 | 28 | (5 | ) | 3,735 | |||||||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | 1,295 | 342 | 383 | — | 2,020 | 1,478 | 311 | 355 | — | 2,144 | |||||||||||||||||||||||||||||
Selling, general and administrative | 345 | 186 | 28 | 206 | 765 | 290 | 170 | 25 | 176 | 661 | |||||||||||||||||||||||||||||
Interest expense, net: | |||||||||||||||||||||||||||||||||||||||
Vehicle | 216 | 88 | 32 | — | 336 | 166 | 55 | 21 | — | 242 | |||||||||||||||||||||||||||||
Non-vehicle | (105 | ) | — | (12 | ) | 335 | 218 | (66 | ) | 4 | (7 | ) | 292 | 223 | |||||||||||||||||||||||||
Total interest expense, net | 111 | 88 | 20 | 335 | 554 | 100 | 59 | 14 | 292 | 465 | |||||||||||||||||||||||||||||
Intangible asset impairments | — | — | — | — | — | 86 | — | — | — | 86 | |||||||||||||||||||||||||||||
Other (income) expense, net | (7 | ) | (2 | ) | — | (27 | ) | (36 | ) | — | (8 | ) | — | 27 | 19 | ||||||||||||||||||||||||
Total expenses | 4,760 | 1,620 | 456 | 510 | 7,346 | 4,704 | 1,494 | 422 | 490 | 7,110 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 145 | $ | 169 | $ | 59 | $ | (510 | ) | (137 | ) | $ | (147 | ) | $ | 189 | $ | 51 | $ | (490 | ) | (397 | ) | ||||||||||||||||
Income tax (provision) benefit | 12 | 108 | |||||||||||||||||||||||||||||||||||||
Net income (loss) | (125 | ) | (289 | ) | |||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | 1 | — | |||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Hertz Global | $ | (124 | ) | $ | (289 | ) |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | ||||||||||||||||||||||||||||||||||||||
(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 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 140 | $ | 93 | |||||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 41 | 50 | |||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 203 | $ | 131 | $ | 19 | $ | (172 | ) | 181 | $ | 131 | $ | 152 | $ | 17 | $ | (157 | ) | 143 | |||||||||||||||||||
Depreciation and amortization | 452 | 136 | 132 | 4 | 724 | 501 | 134 | 122 | 5 | 762 | |||||||||||||||||||||||||||||
Interest, net of interest income | 39 | 25 | 7 | 117 | 188 | 35 | 24 | 6 | 111 | 176 | |||||||||||||||||||||||||||||
Gross EBITDA | $ | 694 | $ | 292 | $ | 158 | $ | (51 | ) | $ | 1,093 | $ | 667 | $ | 310 | $ | 145 | $ | (41 | ) | $ | 1,081 | |||||||||||||||||
Revenue earning vehicle depreciation and lease charges, net | (414 | ) | (128 | ) | (130 | ) | — | (672 | ) | (455 | ) | (126 | ) | (119 | ) | — | (700 | ) | |||||||||||||||||||||
Vehicle debt interest | (79 | ) | (25 | ) | (11 | ) | — | (115 | ) | (61 | ) | (20 | ) | (9 | ) | — | (90 | ) | |||||||||||||||||||||
Vehicle debt-related charges(a) | 5 | 1 | 1 | — | 7 | 5 | 2 | 1 | — | 8 | |||||||||||||||||||||||||||||
Corporate EBITDA | $ | 206 | $ | 140 | $ | 18 | $ | (51 | ) | $ | 313 | $ | 156 | $ | 166 | $ | 18 | $ | (41 | ) | $ | 299 | |||||||||||||||||
Non-cash stock-based employee compensation charges(c) | — | — | — | 3 | 3 | — | — | — | 4 | 4 | |||||||||||||||||||||||||||||
Restructuring and restructuring related charges(d)(e) | — | — | — | 12 | 12 | 1 | — | — | 1 | 2 | |||||||||||||||||||||||||||||
Information technology and finance transformation costs(g) | — | — | — | 24 | 24 | — | — | — | 15 | 15 | |||||||||||||||||||||||||||||
Other items(h) | 2 | — | 1 | (4 | ) | (1 | ) | 9 | (8 | ) | — | — | 1 | ||||||||||||||||||||||||||
Adjusted Corporate EBITDA | $ | 208 | $ | 140 | $ | 19 | $ | (16 | ) | $ | 351 | $ | 166 | $ | 158 | $ | 18 | $ | (21 | ) | $ | 321 | |||||||||||||||||
Non-vehicle depreciation and amortization | (38 | ) | (8 | ) | (2 | ) | (4 | ) | (52 | ) | (46 | ) | (8 | ) | (3 | ) | (5 | ) | (62 | ) | |||||||||||||||||||
Non-vehicle debt interest, net of interest income | 40 | — | 4 | (117 | ) | (73 | ) | 26 | (4 | ) | 3 | (111 | ) | (86 | ) | ||||||||||||||||||||||||
Non-vehicle debt-related charges(a) | — | — | — | 4 | 4 | — | — | — | 4 | 4 | |||||||||||||||||||||||||||||
Non-cash stock-based employee compensation charges(c) | — | — | — | (3 | ) | (3 | ) | — | — | — | (4 | ) | (4 | ) | |||||||||||||||||||||||||
Acquisition accounting(i) | 12 | 1 | 1 | 1 | 15 | 12 | 1 | 2 | — | 15 | |||||||||||||||||||||||||||||
Other(j) | — | — | — | (2 | ) | (2 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Adjusted Pre-tax Income (Loss)(k) | $ | 222 | $ | 133 | $ | 22 | $ | (137 | ) | $ | 240 | $ | 158 | $ | 147 | $ | 20 | $ | (137 | ) | $ | 188 | |||||||||||||||||
Income tax (provision) benefit on adjusted pre-tax income (loss)(l) | (60 | ) | (70 | ) | |||||||||||||||||||||||||||||||||||
Adjusted Net Income (Loss) | $ | 180 | $ | 118 | |||||||||||||||||||||||||||||||||||
Weighted average number of diluted shares outstanding | 84 | 83 | |||||||||||||||||||||||||||||||||||||
Adjusted Diluted Earnings (Loss) Per Share | $ | 2.14 | $ | 1.42 |
Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||||||||||||||||||||||||||||||||||
(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 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (125 | ) | $ | (289 | ) | |||||||||||||||||||||||||||||||||
Income tax provision (benefit) | (12 | ) | (108 | ) | |||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 145 | $ | 169 | $ | 59 | $ | (510 | ) | $ | (137 | ) | $ | (147 | ) | $ | 189 | $ | 51 | $ | (490 | ) | $ | (397 | ) | ||||||||||||||
Depreciation and amortization | 1,416 | 367 | 390 | 13 | 2,186 | 1,616 | 336 | 364 | 10 | 2,326 | |||||||||||||||||||||||||||||
Interest, net of interest income | 111 | 88 | 20 | 335 | 554 | 100 | 59 | 14 | 292 | 465 | |||||||||||||||||||||||||||||
Gross EBITDA | $ | 1,672 | $ | 624 | $ | 469 | $ | (162 | ) | $ | 2,603 | $ | 1,569 | $ | 584 | $ | 429 | $ | (188 | ) | $ | 2,394 | |||||||||||||||||
Revenue earning vehicle depreciation and lease charges, net | (1,295 | ) | (342 | ) | (383 | ) | — | (2,020 | ) | (1,478 | ) | (311 | ) | (355 | ) | — | (2,144 | ) | |||||||||||||||||||||
Vehicle debt interest | (216 | ) | (88 | ) | (32 | ) | — | (336 | ) | (166 | ) | (55 | ) | (21 | ) | — | (242 | ) | |||||||||||||||||||||
Vehicle debt-related charges(a) | 17 | 5 | 3 | — | 25 | 13 | 6 | 3 | — | 22 | |||||||||||||||||||||||||||||
Loss on extinguishment of vehicle related debt(b) | 2 | 20 | — | — | 22 | — | — | — | — | — | |||||||||||||||||||||||||||||
Corporate EBITDA | $ | 180 | $ | 219 | $ | 57 | $ | (162 | ) | $ | 294 | $ | (62 | ) | $ | 224 | $ | 56 | $ | (188 | ) | $ | 30 | ||||||||||||||||
Non-cash stock-based employee compensation charges(c) | — | — | — | 10 | 10 | — | — | — | 16 | 16 | |||||||||||||||||||||||||||||
Restructuring and restructuring related charges(d)(e) | 2 | 3 | — | 21 | 26 | 1 | 2 | — | 9 | 12 | |||||||||||||||||||||||||||||
Impairment charges and asset write-downs(f) | — | — | — | — | — | 86 | — | — | 30 | 116 | |||||||||||||||||||||||||||||
Finance and information technology transformation costs(g) | — | — | — | 75 | 75 | — | — | — | 55 | 55 | |||||||||||||||||||||||||||||
Other items(h) | (3 | ) | — | 2 | (20 | ) | (21 | ) | 15 | (2 | ) | — | 4 | 17 | |||||||||||||||||||||||||
Adjusted Corporate EBITDA | $ | 179 | $ | 222 | $ | 59 | $ | (76 | ) | $ | 384 | $ | 40 | $ | 224 | $ | 56 | $ | (74 | ) | $ | 246 | |||||||||||||||||
Non-vehicle depreciation and amortization | (121 | ) | (25 | ) | (7 | ) | (13 | ) | (166 | ) | (138 | ) | (25 | ) | (9 | ) | (10 | ) | (182 | ) | |||||||||||||||||||
Non-vehicle debt interest, net of interest income | 105 | — | 12 | (335 | ) | (218 | ) | 66 | (4 | ) | 7 | (292 | ) | (223 | ) | ||||||||||||||||||||||||
Non-vehicle debt-related charges(a) | — | — | — | 11 | 11 | — | — | — | 11 | 11 | |||||||||||||||||||||||||||||
Loss on extinguishment of non-vehicle related debt(b) | — | — | — | — | — | — | — | — | 8 | 8 | |||||||||||||||||||||||||||||
Non-cash stock-based employee compensation charges(c) | — | — | — | (10 | ) | (10 | ) | — | — | — | (16 | ) | (16 | ) | |||||||||||||||||||||||||
Acquisition accounting(i) | 37 | 4 | 4 | 1 | 46 | 37 | 5 | 5 | — | 47 | |||||||||||||||||||||||||||||
Other(j) | — | — | — | (3 | ) | (3 | ) | — | — | — | 2 | 2 | |||||||||||||||||||||||||||
Adjusted Pre-tax Income (Loss)(e)(k) | $ | 200 | $ | 201 | $ | 68 | $ | (425 | ) | $ | 44 | $ | 5 | $ | 200 | $ | 59 | $ | (371 | ) | $ | (107 | ) | ||||||||||||||||
Income tax (provision) benefit on adjusted pre-tax income (loss)(l) | (11 | ) | 40 | ||||||||||||||||||||||||||||||||||||
Adjusted Net Income (Loss) | $ | 33 | $ | (67 | ) | ||||||||||||||||||||||||||||||||||
Weighted average number of diluted shares outstanding | 83 | 83 | |||||||||||||||||||||||||||||||||||||
Adjusted Diluted Earnings (Loss) Per Share | $ | 0.40 | $ | (0.81 | ) |
(a) | Primarily represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums. |
(b) | In 2018, primarily represents $20 million of early redemption premium and write-off of deferred financing costs associated with the full redemption of the 4.375% European Vehicle Senior Notes due January 2019 in April 2018. In 2017, represents $6 million of early redemption premium and write-off of deferred financing costs associated with the redemption of certain notes and a $2 million write-off of deferred financing costs associated with the termination of commitments under the Senior RCF incurred during the second quarter. |
(c) | Stock-based compensation expense is an adjustment for purposes of calculating Adjusted Corporate EBITDA but not for calculating Adjusted Pre-tax Income (Loss). |
(d) | 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 consulting costs, legal fees, the loss contingency, which totals $13.6 million for the nine months of 2018, and other expenses related to the previously disclosed accounting review and investigation. |
(e) | For the nine months ended September 30, 2017, excludes $2 million of stock-based compensation expenditures included in restructuring and restructuring related charges. |
(f) | In 2017, represents a second quarter $86 million impairment of the Dollar Thrifty tradename and a first quarter impairment of $30 million related to an equity method investment. |
(g) | Represents costs associated with the Company’s information technology and finance transformation programs, both of which are multi-year initiatives to upgrade and modernize the Company’s systems and processes. |
(h) | Represents miscellaneous or non-recurring items. In 2018, includes net loss attributable to noncontrolling interests, a $4 million and $21 million pre-tax gain on marketable securities during the third quarter and nine months, respectively, and a $6 million legal settlement received in the second quarter related to an oil spill in the Gulf of Mexico in 2010. In 2017, includes net expenses of $13 million resulting from hurricanes, partially offset by a $6 million pre-tax gain on the sale of the Company's Brazil Operations in the third quarter. Also, includes second quarter charges of $6 million for labor-related matters and $5 million relating to PLPD as a result of a terrorist event. |
(i) | Represents incremental expense associated with amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting. |
(j) | Comprised of items that are adjustments for purposes of calculating Adjusted Corporate EBITDA but not for calculating adjusted pre-tax income (loss) and rounding items. |
(k) | Adjustments by caption to arrive at Adjusted Pre-tax Income (Loss) are as follows: |
Increase (decrease) to expenses | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(In millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Direct vehicle and operating | $ | (15 | ) | $ | (28 | ) | $ | (48 | ) | $ | (65 | ) | |||
Selling, general and administrative | (36 | ) | (14 | ) | (99 | ) | (76 | ) | |||||||
Interest expense, net: | |||||||||||||||
Vehicle | (7 | ) | (8 | ) | (47 | ) | (22 | ) | |||||||
Non-vehicle | (4 | ) | (4 | ) | (11 | ) | (19 | ) | |||||||
Total interest expense, net | (11 | ) | (12 | ) | (58 | ) | (41 | ) | |||||||
Intangible asset impairments | — | — | — | (86 | ) | ||||||||||
Other income (expense), net | 4 | 9 | 25 | (22 | ) | ||||||||||
Noncontrolling interests | (1 | ) | — | (1 | ) | — | |||||||||
Total adjustments | $ | (59 | ) | $ | (45 | ) | $ | (181 | ) | $ | (290 | ) |
(l) | Derived utilizing a combined statutory rate of 25% and 37% for the periods ending September 30, 2018 and 2017, respectively, applied to the respective Adjusted Pre-tax Income (Loss). |
Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||||||||||||||||||||||||||
(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 | $ | (6,644 | ) | $ | (2,876 | ) | $ | (556 | ) | $ | (10,076 | ) | $ | (5,416 | ) | $ | (2,771 | ) | $ | (496 | ) | $ | (8,683 | ) | |||||||
Proceeds from disposal of revenue earning vehicles | 3,568 | 1,675 | 135 | 5,378 | 3,668 | 1,477 | 140 | 5,285 | |||||||||||||||||||||||
Net revenue earning vehicles capital expenditures | (3,076 | ) | (1,201 | ) | (421 | ) | (4,698 | ) | (1,748 | ) | (1,294 | ) | (356 | ) | (3,398 | ) | |||||||||||||||
Depreciation of revenue earning vehicles, net | 1,295 | 275 | 382 | 1,952 | 1,478 | 256 | 355 | 2,089 | |||||||||||||||||||||||
Financing activity related to vehicles: | |||||||||||||||||||||||||||||||
Borrowings | 8,503 | 2,554 | 814 | 11,871 | 4,807 | 1,276 | 824 | 6,907 | |||||||||||||||||||||||
Payments | (6,993 | ) | (1,794 | ) | (738 | ) | (9,525 | ) | (4,256 | ) | (815 | ) | (816 | ) | (5,887 | ) | |||||||||||||||
Restricted cash changes | 138 | 24 | (14 | ) | 148 | 19 | 74 | (4 | ) | 89 | |||||||||||||||||||||
Net financing activity related to vehicles | 1,648 | 784 | 62 | 2,494 | 570 | 535 | 4 | 1,109 | |||||||||||||||||||||||
Fleet Growth | $ | (133 | ) | $ | (142 | ) | $ | 23 | $ | (252 | ) | $ | 300 | $ | (503 | ) | $ | 3 | $ | (200 | ) |
Nine Months Ended September 30, | |||||||
(In millions) | 2018 | 2017 | |||||
Net cash provided by operating activities | $ | 2,017 | $ | 1,977 | |||
Net change in restricted cash and cash equivalents, vehicle(a) | 148 | 89 | |||||
Revenue earning vehicles expenditures | (10,076 | ) | (8,683 | ) | |||
Proceeds from disposal of revenue earning vehicles | 5,378 | 5,285 | |||||
Capital asset expenditures, non-vehicle | (119 | ) | (124 | ) | |||
Proceeds from disposal of property and other equipment | 47 | 18 | |||||
Proceeds from issuance of vehicle debt | 11,871 | 6,907 | |||||
Repayments of vehicle debt | (9,525 | ) | (5,887 | ) | |||
Adjusted Free Cash Flow | $ | (259 | ) | $ | (418 | ) |
(a) | Amounts presented for the nine months ended September 30, 2018 and 2017 exclude a $2 million and $3 million non-cash impact of foreign currency exchange rates, respectively. |
As of September 30, 2018 | As of December 31, 2017 | ||||||||||||||||||||||
(In millions) | Vehicle | Non-Vehicle | Total | Vehicle | Non-Vehicle | Total | |||||||||||||||||
Debt as reported in the balance sheet | $ | 12,737 | $ | 4,421 | $ | 17,158 | $ | 10,431 | $ | 4,434 | $ | 14,865 | |||||||||||
Add: | |||||||||||||||||||||||
Debt issue costs deducted from debt obligations | 43 | 33 | 76 | 34 | 40 | 74 | |||||||||||||||||
Less: | |||||||||||||||||||||||
Cash and cash equivalents | — | 761 | 761 | — | 1,072 | 1,072 | |||||||||||||||||
Restricted cash | 236 | — | 236 | 386 | — | 386 | |||||||||||||||||
Net Debt | $ | 12,544 | $ | 3,693 | $ | 16,237 | $ | 10,079 | $ | 3,402 | $ | 13,481 |
Three Months Ended September 30, | Percent Inc/(Dec) | Nine Months Ended September 30, | Percent Inc/(Dec) | ||||||||||||||||||||
($ in millions, except where noted) | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Total RPD | |||||||||||||||||||||||
Revenues | $ | 1,852 | $ | 1,685 | $ | 4,905 | $ | 4,557 | |||||||||||||||
Ancillary retail vehicle sales revenue | (27 | ) | (24 | ) | (78 | ) | (70 | ) | |||||||||||||||
Total Rental Revenue | $ | 1,825 | $ | 1,661 | $ | 4,827 | $ | 4,487 | |||||||||||||||
Transaction Days (in thousands) | 39,478 | 36,879 | 112,427 | 105,424 | |||||||||||||||||||
Total RPD (in whole dollars) | $ | 46.23 | $ | 45.04 | 3 | % | $ | 42.93 | $ | 42.56 | 1 | % | |||||||||||
Total Revenue Per Unit Per Month | |||||||||||||||||||||||
Total Rental Revenue | $ | 1,825 | $ | 1,661 | $ | 4,827 | $ | 4,487 | |||||||||||||||
Average Vehicles (in whole units) | 527,900 | 495,000 | 509,800 | 489,300 | |||||||||||||||||||
Total revenue per unit (in whole dollars) | $ | 3,457 | $ | 3,356 | $ | 9,468 | $ | 9,170 | |||||||||||||||
Number of months in period | 3 | 3 | 9 | 9 | |||||||||||||||||||
Total RPU Per Month (in whole dollars) | $ | 1,152 | $ | 1,119 | 3 | % | $ | 1,052 | $ | 1,019 | 3 | % | |||||||||||
Vehicle Utilization | |||||||||||||||||||||||
Transaction Days (in thousands) | 39,478 | 36,879 | 112,427 | 105,424 | |||||||||||||||||||
Average Vehicles (in whole units) | 527,900 | 495,000 | 509,800 | 489,300 | |||||||||||||||||||
Number of days in period | 92 | 92 | 273 | 273 | |||||||||||||||||||
Available Car Days (in thousands) | 48,567 | 45,540 | 139,175 | 133,579 | |||||||||||||||||||
Vehicle Utilization(a) | 81 | % | 81 | % | 30 | bps | 81 | % | 79 | % | 190 | bps | |||||||||||
Net Depreciation Per Unit Per Month | |||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 414 | $ | 455 | $ | 1,295 | $ | 1,478 | |||||||||||||||
Average Vehicles (in whole units) | 527,900 | 495,000 | 509,800 | 489,300 | |||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net divided by Average Vehicles (in whole dollars) | $ | 784 | $ | 919 | $ | 2,540 | $ | 3,021 | |||||||||||||||
Number of months in period | 3 | 3 | 9 | 9 | |||||||||||||||||||
Net Depreciation Per Unit Per Month (in whole dollars) | $ | 261 | $ | 306 | (15 | )% | $ | 282 | $ | 336 | (16 | )% |
(a) | Calculated as Transaction Days divided by Available Car Days. |
Three Months Ended September 30, | Percent Inc/(Dec) | Nine Months Ended September 30, | Percent Inc/(Dec) | ||||||||||||||||||||
($ in millions, except where noted) | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Total RPD | |||||||||||||||||||||||
Revenues | $ | 732 | $ | 728 | $ | 1,789 | $ | 1,683 | |||||||||||||||
Foreign currency adjustment(a) | 20 | 6 | 9 | 71 | |||||||||||||||||||
Total Rental Revenue | $ | 752 | $ | 734 | $ | 1,798 | $ | 1,754 | |||||||||||||||
Transaction Days (in thousands) | 15,876 | 15,947 | 39,075 | 39,366 | |||||||||||||||||||
Total RPD (in whole dollars) | $ | 47.37 | $ | 46.03 | 3 | % | $ | 46.01 | $ | 44.56 | 3 | % | |||||||||||
Total Revenue Per Unit Per Month | |||||||||||||||||||||||
Total Rental Revenue | $ | 752 | $ | 734 | $ | 1,798 | $ | 1,754 | |||||||||||||||
Average Vehicles (in whole units) | 214,900 | 212,600 | 183,600 | 183,100 | |||||||||||||||||||
Total revenue per unit (in whole dollars) | $ | 3,499 | $ | 3,452 | $ | 9,793 | $ | 9,579 | |||||||||||||||
Number of months in period | 3 | 3 | 9 | 9 | |||||||||||||||||||
Total RPU Per Month (in whole dollars) | $ | 1,166 | $ | 1,151 | 1 | % | $ | 1,088 | $ | 1,064 | 2 | % | |||||||||||
Vehicle Utilization | |||||||||||||||||||||||
Transaction Days (in thousands) | 15,876 | 15,947 | 39,075 | 39,366 | |||||||||||||||||||
Average Vehicles (in whole units) | 214,900 | 212,600 | 183,600 | 183,100 | |||||||||||||||||||
Number of days in period | 92 | 92 | 273 | 273 | |||||||||||||||||||
Available Car Days (in thousands) | 19,771 | 19,559 | 50,123 | 49,986 | |||||||||||||||||||
Vehicle Utilization(b) | 80 | % | 82 | % | (120 | ) | bps | 78 | % | 79 | % | (80 | ) | bps | |||||||||
Net Depreciation Per Unit Per Month | |||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 128 | $ | 126 | $ | 342 | $ | 311 | |||||||||||||||
Foreign currency adjustment(a) | 4 | 1 | 1 | 14 | |||||||||||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges, net | $ | 132 | $ | 127 | $ | 343 | $ | 325 | |||||||||||||||
Average Vehicles (in whole units) | 214,900 | 212,600 | 183,600 | 183,100 | |||||||||||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges, net divided by Average Vehicles (in whole dollars) | $ | 614 | $ | 597 | $ | 1,868 | $ | 1,775 | |||||||||||||||
Number of months in period | 3 | 3 | 9 | 9 | |||||||||||||||||||
Net Depreciation Per Unit Per Month (in whole dollars) | $ | 205 | $ | 199 | 3 | % | $ | 208 | $ | 197 | 6 | % |
(a) | Based on December 31, 2017 foreign exchange rates. |
(b) | Calculated as Transaction Days divided by Available Car Days. |
Three Months Ended September 30, | Percent Inc/(Dec) | Nine Months Ended September 30, | Percent Inc/(Dec) | ||||||||||||||||||||
($ in millions, except where noted) | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Total RPD | |||||||||||||||||||||||
Revenues | $ | 2,584 | $ | 2,413 | $ | 6,694 | $ | 6,240 | |||||||||||||||
Ancillary retail vehicle sales revenue | (27 | ) | (24 | ) | (78 | ) | (70 | ) | |||||||||||||||
Foreign currency adjustment(a) | 20 | 6 | 9 | 71 | |||||||||||||||||||
Total Rental Revenue | $ | 2,577 | $ | 2,395 | $ | 6,625 | $ | 6,241 | |||||||||||||||
Transaction Days (in thousands) | 55,354 | 52,826 | 151,502 | 144,790 | |||||||||||||||||||
Total RPD (in whole dollars) | $ | 46.55 | $ | 45.34 | 3 | % | $ | 43.73 | $ | 43.10 | 1 | % | |||||||||||
Total Revenue Per Unit Per Month | |||||||||||||||||||||||
Total Rental Revenue | $ | 2,577 | $ | 2,395 | $ | 6,625 | $ | 6,241 | |||||||||||||||
Average Vehicles (in whole units) | 742,800 | 707,600 | 693,400 | 672,400 | |||||||||||||||||||
Total revenue per unit (in whole dollars) | $ | 3,469 | $ | 3,385 | $ | 9,554 | $ | 9,282 | |||||||||||||||
Number of months in period | 3 | 3 | 9 | 9 | |||||||||||||||||||
Total RPU Per Month (in whole dollars) | $ | 1,156 | $ | 1,128 | 2 | % | $ | 1,062 | $ | 1,031 | 3 | % | |||||||||||
Vehicle Utilization | |||||||||||||||||||||||
Transaction Days (in thousands) | 55,354 | 52,826 | 151,502 | 144,790 | |||||||||||||||||||
Average Vehicles (in whole units) | 742,800 | 707,600 | 693,400 | 672,400 | |||||||||||||||||||
Number of days in period | 92 | 92 | 273 | 273 | |||||||||||||||||||
Available Car Days (in thousands) | 68,338 | 65,099 | 189,298 | 183,565 | |||||||||||||||||||
Vehicle Utilization(b) | 81 | % | 81 | % | (20 | ) | bps | 80 | % | 79 | % | 120 | bps | ||||||||||
Net Depreciation Per Unit Per Month | |||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges, net | $ | 542 | $ | 581 | $ | 1,637 | $ | 1,789 | |||||||||||||||
Foreign currency adjustment(a) | 4 | 1 | 1 | 14 | |||||||||||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges, net | $ | 546 | $ | 582 | $ | 1,638 | $ | 1,803 | |||||||||||||||
Average Vehicles (in whole units) | 742,800 | 707,600 | 693,400 | 672,400 | |||||||||||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges, net divided by Average Vehicles (in whole dollars) | $ | 735 | $ | 822 | $ | 2,362 | $ | 2,681 | |||||||||||||||
Number of months in period | 3 | 3 | 9 | 9 | |||||||||||||||||||
Net Depreciation Per Unit Per Month (in whole dollars) | $ | 245 | $ | 274 | (11 | )% | $ | 262 | $ | 298 | (12 | )% |
(a) | Based on December 31, 2017 foreign exchange rates. |
(b) | Calculated as Transaction Days divided by Available Car Days. |
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