Hertz Global 8K Hertz Reports Second Quarter 2024 Results | HTZ 1 Aug 24

Exhibit 99.1

HERTZ REPORTS SECOND QUARTER 2024 RESULTS

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“We’re moving quickly with a best-in-class leadership team, a strategy laser-focused on delivering sustainable returns and elevating our operational performance across the business,” said Gil West, Hertz CEO. “During the second quarter, we bolstered our liquidity to expedite our cost and revenue improvement initiatives and accelerate our fleet refresh to provide vehicles aligned with customer needs. We are at an exciting inflection point in our path to generate greater value for our customers, employees and shareholders – and I am more confident than ever in our plan, our team and the road ahead.”

ESTERO, Fla, August 1, 2024 - Hertz Global Holdings, Inc. (NASDAQ: HTZ) ("Hertz", "Hertz Global" or the "Company") today reported results for its second quarter 2024.

OVERVIEW

•Revenue of $2.4 billion

•GAAP net loss of $865 million, a negative 37% margin, or $2.82 loss per diluted share

•Adjusted net loss of $440 million, or $1.44 loss per diluted share

•Adjusted Corporate EBITDA of negative $460 million, a negative 20% margin, due mainly to an increase in vehicle depreciation of $706 million largely driven by acceleration of the Company's fleet refresh

•GAAP operating cash flow of $546 million; Adjusted operating cash outflow of $576 million and adjusted free cash outflow of $553 million

•The Company raised $1 billion during the quarter to bolster liquidity and de-risk its fleet refresh

•Corporate liquidity of $1.8 billion at June 30, 2024

SECOND QUARTER RESULTS

Second quarter revenue was $2.4 billion. Demand was healthy yet the Company remained disciplined on capacity and prioritized rate. Execution of the Company's revenue strategy continued to narrow its year-over-year RPD decline, which was 3% for the quarter and moderated to 2% in June.

Vehicle depreciation increased $706 million compared to the prior year quarter due mainly to a decline in future and current residual values. As previously announced, acceleration of the Company's fleet refresh shortened the hold period on a substantial portion of its fleet, which resulted in DPU of $600 for the quarter, up sequentially from Q1 2024. The Company expects to substantially complete the refresh by the end of 2025, at which time it expects DPU to normalize in the low $300s.

Direct operating expense on a per transaction day basis in the second quarter of 2024 increased by 7% year over year. Approximately 30% of the increase was driven by non-recurring charges in both periods. The remaining increase was driven by insurance, personnel, and collision and damage costs, as well as general inflationary pressure. The Company has cost management actions in place to reduce expenses and increase productivity.

Consistent with previous guidance, Adjusted Corporate EBITDA was negative $460 million in the quarter compared with positive Adjusted Corporate EBITDA of $347 million in the prior year quarter. The decrease was due mainly to increased vehicle depreciation.

Recently, the Company announced critical executive management appointments to strengthen its leadership team and sharpen the Company's focus on driving enhanced profitability through operational excellence, superior customer service, strategic fleet management, cost control, and premium revenue.

SUMMARY RESULTS

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	Three Months Ended June 30,						Percent Inc/(Dec) 2024 vs 2023
($ in millions, except earnings per share or where noted)	2024			2023
Hertz Global - Consolidated
Total revenues	$	2,353		$	2,437		(3)%
Net income (loss)	$	(865)		$	139		NM
Net income (loss) margin	(37)		%	6		%
Adjusted net income (loss)(a)	$	(440)		$	227		NM
Adjusted diluted earnings (loss) per share(a)	$	(1.44)		$	0.72		NM
Adjusted Corporate EBITDA(a)	$	(460)		$	347		NM
Adjusted Corporate EBITDA Margin(a)	(20)		%	14		%

Average Vehicles (in whole units)	577,224			561,277			3%
Average Rentable Vehicles (in whole units)	546,187			533,813			2%
Vehicle Utilization	80		%	82		%
Transaction Days (in thousands)	39,721			39,705			—%
Total RPD (in dollars)(b)	$	59.65		$	61.62		(3)%
Total RPU Per Month (in whole dollars)(b)	$	1,446		$	1,527		(5)%
Depreciation Per Unit Per Month (in whole dollars)(b)	$	600		$	197		NM

Americas RAC Segment
Total revenues	$	1,928		$	2,015		(4)%
Adjusted EBITDA	$	(403)		$	331		NM
Adjusted EBITDA Margin	(21)		%	16		%

Average Vehicles (in whole units)	467,863			457,405			2%
Average Rentable Vehicles (in whole units)	439,284			431,921			2%
Vehicle Utilization	81		%	83		%
Transaction Days (in thousands)	32,216			32,469			(1)%
Total RPD (in dollars)(b)	$	59.94		$	62.11		(3)%
Total RPU Per Month (in whole dollars)(b)	$	1,465		$	1,556		(6)%
Depreciation Per Unit Per Month (in whole dollars)(b)	$	645		$	198		NM

International RAC Segment
Total revenues	$	425		$	422		1%
Adjusted EBITDA	$	(6)		$	96		NM
Adjusted EBITDA Margin	(1)		%	23		%

Average Vehicles (in whole units)	109,361			103,872			5%
Average Rentable Vehicles (in whole units)	106,903			101,892			5%
Vehicle Utilization	77		%	78		%
Transaction Days (in thousands)	7,505			7,237			4%
Total RPD (in dollars)(b)	$	58.38		$	59.41		(2)%
Total RPU Per Month (in whole dollars)(b)	$	1,366		$	1,406		(3)%
Depreciation Per Unit Per Month (in whole dollars)(b)	$	409		$	188		NM

NM - Not meaningful

(a) Represents a non-GAAP measure. See the accompanying reconciliations included in Supplemental Schedule II for 2024 and 2023.

(b) Based on December 31, 2023 foreign exchange rates.

EARNINGS WEBCAST INFORMATION

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Hertz Global's live webcast and conference call to discuss its second quarter 2024 results will be held on August 1, 2024, at 9:00 a.m. Eastern Time. The conference call will be broadcast live in listen-only mode on the Company’s investor relations website at IR.Hertz.com. If you would like to access the call by phone and ask a question, please go to Hertz Q2 earnings participant call link, and you will be provided with dial in details. Investors are encouraged to dial-in approximately 15 minutes prior to the call. A web replay will remain available on the website for approximately one year. The earnings release and related supplemental schedules containing the reconciliations of non-GAAP measures will be available on the Hertz website, IR.Hertz.com.

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

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In this earnings release, we include select unaudited financial data of Hertz Global, Supplemental Schedules, which are provided to present segment results, and reconciliations of non-GAAP measures to their most comparable GAAP measures. Following the Supplemental Schedules, the Company provides definitions for terminology used throughout the earnings release and its rationale on the importance and usefulness of non-GAAP measures for investors and management.

ABOUT HERTZ

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

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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

Important factors that could affect the Company's actual results and cause them to differ materially from those expressed in forward-looking statements include, among other things:

•mix of program and non-program vehicles in the Company's fleet, which can lead to increased exposure to residual value risk upon disposition;

•the potential for residual values associated with non-program vehicles in the Company's fleet to decline, including suddenly or unexpectedly, or fail to follow historical seasonal patterns;

•the Company's ability to purchase adequate supplies of competitively priced vehicles at a reasonable cost in order to efficiently service rental demand, including upon any disruptions in the global supply chain;

•the Company's ability to effectively dispose of vehicles, at the times and through the channels, that maximize the Company's returns;

•the age of the Company's fleet, and its impact on vehicle carrying costs, customer service scores, as well as on the Company's ability to sell vehicles at acceptable prices and times;

•whether a manufacturer of the Company's program vehicle fulfills its repurchase obligations;

•the frequency or extent of manufacturer safety recalls;

•levels of travel demand, particularly business and leisure travel in the U.S. and in global markets;

•seasonality and other occurrences that disrupt rental activity during the Company's peak periods, including in critical geographies;

•the Company's ability to accurately estimate future levels of rental activity and adjust the number, location and mix of vehicles used in the Company's rental operations accordingly;

•the Company's ability to implement its business strategy or strategic transactions, including the Company's ability to implement plans to support an electric vehicle fleet and to play a central role in the modern mobility ecosystem;

•the Company's ability to achieve cost savings and normalized depreciation levels, as well as revenue enhancements from its profitability initiatives and other operational programs;

•the Company's ability to adequately respond to changes in technology impacting the mobility industry;

•significant changes in the competitive environment and the effect of competition in the Company's markets on rental volume and pricing;

•the Company's reliance on third-party distribution channels and related prices, commission structures and transaction volumes;

•the Company's ability to offer services for a favorable customer experience, and to retain and develop customer loyalty and market share;

•the Company's ability to maintain its network of leases and vehicle rental concessions at airports and other key locations in the U.S. and internationally;

•the Company's ability to maintain favorable brand recognition and a coordinated branding and portfolio strategy;

•the Company's ability to attract and retain effective frontline employees, senior management and other key employees;

•the Company's ability to effectively manage its union relations and labor agreement negotiations;

•the Company's ability to manage and respond to cybersecurity threats and cyber attacks on the Company's information technology systems, or those of the Company's third-party providers;

•the Company's ability, and that of the Company's key third-party partners, to prevent the misuse or theft of information the Company possesses, including as a result of cyber attacks and other security threats;

•the Company's ability to maintain, upgrade and consolidate its information technology systems;

•the Company's ability to comply with current and future laws and regulations in the U.S. and internationally regarding data protection, data security and privacy risks;

•risks associated with operating in many different countries, including the risk of a violation or alleged violation of applicable anti-corruption or anti-bribery laws and the Company's ability to repatriate cash from non-U.S. affiliates without adverse tax consequences;

•risks relating to tax laws, including those that affect the Company's ability to recapture accelerated tax depreciation and expensing, as well as any adverse determinations or rulings by tax authorities;

•the Company's ability to utilize its net operating loss carryforwards;

•the Company's exposure to uninsured liabilities relating to personal injury, death and property damage, or otherwise, including material litigation;

•the potential for adverse changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, including those related to environmental matters, optional insurance products or policies, franchising and licensing matters, the ability to pass-through rental car related expenses, or taxes, among others, that affect the Company's operations, the Company's costs or applicable tax rates;

•the Company's ability to recover its goodwill and indefinite-lived intangible assets when performing impairment analysis;

•the potential for changes in management's best estimates and assessments;

•the Company's ability to maintain an effective compliance program;

•the availability of earnings and funds from the Company's subsidiaries;

•the Company's ability to comply, and the cost and burden of complying, with environmental, social and governance, or ESG, regulations or expectations of stakeholders, and otherwise achieve the Company's corporate responsibility goals;

•the availability of additional or continued sources of financing at acceptable rates for the Company's revenue earning vehicles and to refinance the Company's existing indebtedness, and the Company's ability to comply with the covenants in the agreements governing its indebtedness;

•the extent to which the Company's consolidated assets secure its outstanding indebtedness;

•volatility in the Company's share price, the Company's ownership structure and certain provisions of the Company's charter documents, which could negatively affect the market price of the Company's common stock;

•the Company's ability to implement an effective business continuity plan to protect the business in exigent circumstances;

•the Company's ability to effectively maintain effective internal control over financial reporting; and

•the Company's ability to execute strategic transactions.

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

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

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CONTACTS:

Hertz Investor Relations:			Hertz Media Relations:
investorrelations@hertz.com			mediarelations@hertz.com

UNAUDITED FINANCIAL INFORMATION

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UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions, except per share data)	2024		2023		2024		2023
Revenues	$	2,353	$	2,437	$	4,433	$	4,484
Expenses:
Direct vehicle and operating	1,440		1,347		2,806		2,568
Depreciation of revenue earning vehicles and lease charges, net	1,035		329		2,004		710
Depreciation and amortization of non-vehicle assets	41		32		73		67
Selling, general and administrative	243		285		405		506
Interest expense, net:
Vehicle	149		132		290		243
Non-vehicle	88		56		163		107
Total interest expense, net	237		188		453		350

Other (income) expense, net	(5)		(2)		(3)		7
(Gain) on sale of non-vehicle capital assets	—		—		—		(162)


Change in fair value of Public Warrants	(165)		100		(251)		218
Total expenses	2,826		2,279		5,487		4,264
Income (loss) before income taxes	(473)		158		(1,054)		220
Income tax (provision) benefit	(392)		(19)		3		115
Net income (loss)	$	(865)	$	139	$	(1,051)	$	335





Weighted average number of shares outstanding:
Basic	306		314		306		318
Diluted	306		315		306		319
Earnings (loss) per share:
Basic	$	(2.82)	$	0.44	$	(3.44)	$	1.06
Diluted	$	(2.82)	$	0.44	$	(3.44)	$	1.05

UNAUDITED CONSOLIDATED BALANCE SHEETS


(In millions, except par value and share data)	June 30, 2024		December 31, 2023
ASSETS
Cash and cash equivalents	$	568	$	764
Restricted cash and cash equivalents:
Vehicle	137		152
Non-vehicle	289		290
Total restricted cash and cash equivalents	426		442
Total cash and cash equivalents and restricted cash and cash equivalents	994		1,206
Receivables:
Vehicle	164		211
Non-vehicle, net of allowance of $53 and $47, respectively	1,103		980
Total receivables, net	1,267		1,191
Prepaid expenses and other assets	754		726
Revenue earning vehicles:
Vehicles	18,122		16,806
Less: accumulated depreciation	(2,753)		(2,155)
Total revenue earning vehicles, net	15,369		14,651
Property and equipment, net	670		671
Operating lease right-of-use assets	2,229		2,253
Intangible assets, net	2,858		2,863
Goodwill	1,044		1,044

Total assets	$	25,185	$	24,605
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable:
Vehicle	$	429	$	191
Non-vehicle	566		510
Total accounts payable	995		701
Accrued liabilities	931		860
Accrued taxes, net	208		157
Debt:
Vehicle	12,774		12,242
Non-vehicle	4,595		3,449
Total debt	17,369		15,691
Public Warrants	203		453
Operating lease liabilities	2,108		2,142
Self-insured liabilities	501		471
Deferred income taxes, net	912		1,038



Total liabilities	23,227		21,513
Commitments and contingencies



Stockholders' equity:
Preferred stock, $0.01 par value, no shares issued and outstanding	—		—
Common stock, $0.01 par value, 481,250,923 and 479,990,286 shares issued, respectively, and 306,438,879 and 305,178,242 shares outstanding, respectively	5		5
Treasury stock, at cost, 174,812,044 and 174,812,044 common shares, respectively	(3,430)		(3,430)
Additional paid-in capital	6,365		6,405
Retained earnings (Accumulated deficit)	(691)		360
Accumulated other comprehensive income (loss)	(291)		(248)


Total stockholders' equity	1,958		3,092
Total liabilities and stockholders' equity	$	25,185	$	24,605

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2024		2023		2024		2023
Cash flows from operating activities:
Net income (loss)	$	(865)	$	139	$	(1,051)	$	335
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and reserves for revenue earning vehicles, net	1,124		418		2,194		884
Depreciation and amortization, non-vehicle	41		32		73		67
Amortization of deferred financing costs and debt discount (premium)	15		15		33		29

Stock-based compensation charges	16		22		32		43
Stock-based compensation forfeitures	—		—		(68)		—
Provision for receivables allowance	32		20		63		40
Deferred income taxes, net	349		(28)		(65)		(163)




(Gain) loss on sale of non-vehicle capital assets	2		(3)		3		(165)
Change in fair value of Public Warrants	(165)		100		(251)		218
Changes in financial instruments	2		(2)		8		106

Other	6		5		(4)		5
Changes in assets and liabilities:
Non-vehicle receivables	(165)		(284)		(201)		(334)
Prepaid expenses and other assets	(3)		(50)		(59)		(98)
Operating lease right-of-use assets	90		87		190		165
Non-vehicle accounts payable	67		33		63		6
Accrued liabilities	40		39		71		68
Accrued taxes, net	31		55		52		56
Operating lease liabilities	(100)		(94)		(200)		(178)
Self-insured liabilities	29		(7)		33		(25)
Net cash provided by (used in) operating activities	546		497		916		1,059
Cash flows from investing activities:
Revenue earning vehicles expenditures	(3,723)		(3,719)		(5,627)		(6,543)
Proceeds from disposal of revenue earning vehicles	1,669		1,560		2,902		2,766
Non-vehicle capital asset expenditures	(26)		(78)		(59)		(123)
Proceeds from non-vehicle capital assets disposed of	4		1		7		176



Return of (investment in) equity investments	(1)		(1)		(3)		(1)


Net cash provided by (used in) investing activities	(2,077)		(2,237)		(2,780)		(3,725)
Cash flows from financing activities:
Proceeds from issuance of vehicle debt	1,149		1,960		1,683		4,021
Repayments of vehicle debt	(229)		(682)		(1,121)		(1,872)
Proceeds from issuance of non-vehicle debt	1,950		825		2,885		1,250
Repayments of non-vehicle debt	(1,245)		(329)		(1,735)		(759)
Payment of financing costs	(42)		(9)		(42)		(17)






Share repurchases	—		(104)		—		(222)


Other	(1)		1		(3)		—
Net cash provided by (used in) financing activities	1,582		1,662		1,667		2,401
Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents	(2)		2		(15)		13
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents during the period	49		(76)		(212)		(252)
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period	945		1,242		1,206		1,418
Cash and cash equivalents and restricted cash and cash equivalents at end of period	$	994	$	1,166	$	994	$	1,166

Supplemental Schedule I

HERTZ GLOBAL HOLDINGS, INC.

CONDENSED STATEMENT OF OPERATIONS BY SEGMENT

Unaudited

______________________________________________________________________________________________________________________________________________________________________________________________________________


	Three Months Ended June 30, 2024								Three Months Ended June 30, 2023
(In millions)	Americas RAC		International RAC		Corporate		Hertz Global		Americas RAC		International RAC		Corporate		Hertz Global
Revenues	$	1,928	$	425	$	—	$	2,353	$	2,015	$	422	$	—	$	2,437
Expenses:
Direct vehicle and operating	1,199		244		(3)		1,440		1,139		211		(3)		1,347
Depreciation of revenue earning vehicles and lease charges, net	905		130		—		1,035		272		57		—		329
Depreciation and amortization of non-vehicle assets	28		3		10		41		27		3		2		32
Selling, general and administrative	137		46		60		243		148		45		92		285
Interest expense, net:
Vehicle	123		26		—		149		113		19		—		132
Non-vehicle	—		(6)		94		88		(4)		(5)		65		56
Total interest expense, net	123		20		94		237		109		14		65		188

Other (income) expense, net	1		—		(6)		(5)		—		(4)		2		(2)

Change in fair value of Public Warrants	—		—		(165)		(165)		—		—		100		100
Total expenses	2,393		443		(10)		2,826		1,695		326		258		2,279
Income (loss) before income taxes	$	(465)	$	(18)	$	10	(473)		$	320	$	96	$	(258)	158
Income tax (provision) benefit							(392)								(19)
Net income (loss)							$	(865)							$	139

Supplemental Schedule I (continued)

HERTZ GLOBAL HOLDINGS, INC.

CONDENSED STATEMENT OF OPERATIONS BY SEGMENT

Unaudited


	Six Months Ended June 30, 2024								Six Months Ended June 30, 2023
(In millions)	Americas RAC		International RAC		Corporate		Hertz Global		Americas RAC		International RAC		Corporate		Hertz Global
Revenues	$	3,667	$	766	$	—	$	4,433	$	3,745	$	739	$	—	$	4,484
Expenses:
Direct vehicle and operating	2,351		460		(5)		2,806		2,178		393		(3)		2,568
Depreciation of revenue earning vehicles and lease charges, net	1,781		223		—		2,004		621		89		—		710
Depreciation and amortization of non-vehicle assets	53		7		13		73		55		5		7		67
Selling, general and administrative	261		103		41		405		253		82		171		506
Interest expense, net:
Vehicle	239		51		—		290		206		37		—		243
Non-vehicle	(2)		(10)		175		163		(22)		(7)		136		107
Total interest expense, net	237		41		175		453		184		30		136		350

Other (income) expense, net	—		1		(4)		(3)		(1)		2		6		7
(Gain) on sale of non-vehicle capital assets	—		—		—		—		(162)		—		—		(162)
Change in fair value of Public Warrants	—		—		(251)		(251)		—		—		218		218
Total expenses	4,683		835		(31)		5,487		3,128		601		535		4,264
Income (loss) before income taxes	$	(1,016)	$	(69)	$	31	(1,054)		$	617	$	138	$	(535)	220
Income tax (provision) benefit							3								115
Net income (loss)							$	(1,051)							$	335

Supplemental Schedule II

HERTZ GLOBAL HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURE - ADJUSTED NET INCOME (LOSS), ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE AND ADJUSTED CORPORATE EBITDA

Unaudited


	Three Months Ended June 30,						Six Months Ended June 30,
(In millions, except per share data)	2024			2023			2024			2023
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share:
Net income (loss)(a)	$	(865)		$	139		$	(1,051)		$	335


Adjustments:
Income tax provision (benefit)	392			19			(3)			(115)
Vehicle and non-vehicle debt-related charges(b)	16			15			34			29

Restructuring and restructuring related charges(c)	12			5			44			8

Acquisition accounting-related depreciation and amortization(d)	1			1			1			1



Unrealized (gains) losses on financial instruments(e)	2			(2)			8			106
(Gain) on sale of non-vehicle capital assets(f)	—			—			—			(162)
Change in fair value of Public Warrants	(165)			100			(251)			218

Other items(g)(k)	20			(10)			28			4
Adjusted pre-tax income (loss)(h)	(587)			267			(1,190)			424
Income tax (provision) benefit on adjusted pre-tax income (loss)(i)	147			(40)			298			(64)
Adjusted Net Income (Loss)	$	(440)		$	227		$	(892)		$	360
Weighted-average number of diluted shares outstanding	306			315			306			319
Adjusted Diluted Earnings (Loss) Per Share(j)	$	(1.44)		$	0.72		$	(2.92)		$	1.13
Adjusted Corporate EBITDA:
Net income (loss)	$	(865)		$	139		$	(1,051)		$	335
Adjustments:
Income tax provision (benefit)	392			19			(3)			(115)
Non-vehicle depreciation and amortization	41			32			73			67
Non-vehicle debt interest, net of interest income	88			56			163			107
Vehicle debt-related charges(b)	10			10			22			20

Restructuring and restructuring related charges(c)	12			5			44			8




Unrealized (gains) losses on financial instruments(e)	2			(2)			8			106
(Gain) on sale of non-vehicle capital assets(f)	—			—			—			(162)
Non-cash stock-based compensation forfeitures(l)	—			—			(64)			—
Change in fair value of Public Warrants	(165)			100			(251)			218

Other items(g)	25			(12)			32			—
Adjusted Corporate EBITDA(l)	$	(460)		$	347		$	(1,027)		$	584
Adjusted Corporate EBITDA margin	(20)		%	14		%	(23)		%	13		%

(a)Net income (loss) margin for the three and six months ended June 30, 2024 was (37)% and (24)%, respectively. Net income (loss) margin for the three and six months ended June 30, 2023 was 6% and 7%, respectively.

(b)Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums.

Supplemental Schedule II (continued)

(c)Represents charges incurred under restructuring actions as defined in U.S. GAAP. Also includes restructuring related charges such as incremental costs incurred related to personnel reductions and closure of underperforming locations.

(d)Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting.

(e)Represents unrealized gains (losses) on derivative financial instruments. In 2023, also includes the realization of $88 million of previously unrealized gains resulting from the unwind of certain interest rate caps in the first quarter of 2023.

(f)Represents gain on the sale of certain non-vehicle capital assets sold in March 2023.

(g) Represents miscellaneous items. For the three and six months ended June 30, 2024, primarily includes certain IT-related charges and certain storm-related damages, partially offset by certain litigation settlements. For the three and six months ended June 30, 2023, primarily includes a loss recovery settlement, partially offset by certain IT-related charges.

(h) The table below reconciles expenses as reported in the condensed consolidated unaudited statement of operations to adjusted expenses utilized in calculating Adjusted Pretax Income (Loss) and Adjusted Net Income (Loss), all of which are deemed non-GAAP measures:


(in millions)	Three Months Ended June 30, 2024						Three Months Ended June 30, 2023
Expenses:	As Reported		Adjustment		As Adjusted		As Reported		Adjustment		As Adjusted
Direct vehicle and operating	1,440		$	(10)	$	1,430	1,347		$	17	$	1,364
Depreciation of revenue earning vehicles and lease charges, net	1,035		—		1,035		329		—		329
Depreciation and amortization of non-vehicle assets	41		—		41		32		—		32
Selling, general and administrative	243		(16)		227		285		(13)		272
Interest expense, net:
Vehicle	149		(13)		136		132		(3)		129
Non-vehicle	88		(10)		78		56		(9)		47
Total interest expense, net	237		(23)		214		188		(12)		176
Other income (expense), net	(5)		(2)		(7)		(2)		(1)		(3)

Change in fair value of Public Warrants	(165)		165		—		100		(100)		—
Total	$	2,826	$	114	$	2,940	$	2,279	$	(109)	$	2,170


(in millions)	Six Months Ended June 30, 2024						Six Months Ended June 30, 2023
Expenses:	As Reported		Adjustment		As Adjusted		As Reported		Adjustment		As Adjusted
Direct vehicle and operating	2,806		$	(16)	$	2,790	2,568		$	17	$	2,585
Depreciation of revenue earning vehicles and lease charges, net	2,004		5		2,009		710		2		712
Depreciation and amortization of non-vehicle assets	73		—		73		67		—		67
Selling, general and administrative	405		(55)		350		506		(27)		479
Interest expense, net:
Vehicle	290		(26)		264		243		(122)		121
Non-vehicle	163		(20)		143		107		(17)		90
Total interest expense, net	453		(46)		407		350		(139)		211
Other income (expense), net	(3)		(3)		(6)		7		(1)		6
Gain on sale non-vehicle capital assets	—		—		—		(162)		162		—
Change in fair value of Public Warrants	(251)		251		—		218		(218)		—
Total	$	5,487	$	136	$	5,623	$	4,264	$	(204)	$	4,060

Supplemental Schedule II (continued)

(i) Derived utilizing a combined statutory rate of 25% and 15% for the three and six months ended June 30, 2024 and 2023, respectively, applied to the respective Adjusted Pre-tax Income (Loss). The increase in rate is primarily resulting from reduced EV-related tax credits anticipated to be used to decrease the Company's U.S. federal tax provision throughout 2024 based on the Company's expected purchases of electric vehicles.

(j) Adjustments used to reconcile diluted earnings (loss) per share on a GAAP basis to Adjusted Diluted Earnings (Loss) Per Share are comprised of the same adjustments, inclusive of the tax impact, used to reconcile net income (loss) to Adjusted Net Income (Loss) divided by the weighted-average diluted shares outstanding during the period.

(k) Also includes letter of credit fees.

(l) Represents former CEO awards forfeited in March 2024.

(m) The table below reconciles expenses as reported in the condensed consolidated unaudited statement of operations to adjusted expenses utilized in calculating Adjusted Corporate EBITDA, both of which are deemed non-GAAP measures:


(in millions)	Three Months Ended June 30, 2024						Three Months Ended June 30, 2023
Expenses:	As Reported		Adjustment		As Adjusted		As Reported		Adjustment		As Adjusted
Direct vehicle and operating	1,440		$	(10)	$	1,430	1,347		$	17	$	1,364
Depreciation of revenue earning vehicles and lease charges, net	1,035		—		1,035		329		—		329
Depreciation and amortization of non-vehicle assets	41		(41)		—		32		(32)		—
Selling, general and administrative	243		(17)		226		285		(13)		272
Interest expense, net:
Vehicle	149		(13)		136		132		(3)		129
Non-vehicle	88		(88)		—		56		(56)		—
Total interest expense, net	237		(101)		136		188		(59)		129
Other income (expense), net	(5)		(9)		(14)		(2)		(2)		(4)

Change in fair value of Public Warrants	(165)		165		—		100		(100)		—
Total	$	2,826	$	(13)	$	2,813	$	2,279	$	(189)	$	2,090


(in millions)	Six Months Ended June 30, 2024						Six Months Ended June 30, 2023
Expenses:	As Reported		Adjustment		As Adjusted		As Reported		Adjustment		As Adjusted
Direct vehicle and operating	2,806		$	(16)	$	2,790	2,568		$	17	$	2,585
Depreciation of revenue earning vehicles and lease charges, net	2,004		5		2,009		710		2		712
Depreciation and amortization of non-vehicle assets	73		(73)		—		67		(67)		—
Selling, general and administrative	405		8		413		506		(27)		479
Interest expense, net:
Vehicle	290		(26)		264		243		(122)		121
Non-vehicle	163		(163)		—		107		(107)		—
Total interest expense, net	453		(189)		264		350		(229)		121
Other income (expense), net	(3)		(13)		(16)		7		(4)		3
Gain on sale non-vehicle capital assets	—		—		—		(162)		162		—
Change in fair value of Public Warrants	(251)		251		—		218		(218)		—
Total	$	5,487	$	(27)	$	5,460	$	4,264	$	(364)	$	3,900

Supplemental Schedule III

HERTZ GLOBAL HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURE - ADJUSTED OPERATING CASH FLOW

AND ADJUSTED FREE CASH FLOW

Unaudited

________________________________________________________________________________________________________________________________________________________


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2024		2023		2024		2023
ADJUSTED OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW:
Net cash provided by (used in) operating activities	$	546	$	497	$	916	$	1,059
Depreciation and reserves for revenue earning vehicles, net	(1,124)		(418)		(2,194)		(884)
Bankruptcy related payments (post emergence) and other payments	2		12		5		20
Adjusted operating cash flow	(576)		91		(1,273)		195
Non-vehicle capital asset proceeds (expenditures), net	(22)		(77)		(52)		53
Adjusted operating cash flow before vehicle investment	(598)		14		(1,325)		248
Net fleet growth after financing	45		(437)		43		(754)
Adjusted free cash flow	$	(553)	$	(423)	$	(1,282)	$	(506)

CALCULATION OF NET FLEET GROWTH AFTER FINANCING:
Revenue earning vehicles expenditures	$	(3,723)	$	(3,719)	$	(5,627)	$	(6,543)
Proceeds from disposal of revenue earning vehicles	1,669		1,560		2,902		2,766
Revenue earning vehicles capital expenditures, net	(2,054)		(2,159)		(2,725)		(3,777)
Depreciation and reserves for revenue earning vehicles, net	1,124		418		2,194		884
Financing activity related to vehicles:
Borrowings	1,149		1,960		1,683		4,021
Payments	(229)		(682)		(1,121)		(1,872)
Restricted cash changes, vehicle	55		26		12		(10)
Net financing activity related to vehicles	975		1,304		574		2,139
Net fleet growth after financing	$	45	$	(437)	$	43	$	(754)

Supplemental Schedule IV

HERTZ GLOBAL HOLDINGS, INC.

NET DEBT CALCULATION

Unaudited

________________________________________________________________________________________________________________________________________________________


	As of June 30, 2024						As of December 31, 2023
(In millions)	Vehicle		Non-Vehicle		Total		Vehicle		Non-Vehicle		Total
First Lien RCF	$	—	$	160	$	160	$	—	$	—	$	—
Term loans	—		2,004		2,004		—		2,013		2,013
First lien senior notes	—		750		750		—		—		—
Exchangeable notes	—		250		250		—		—		—
Senior unsecured notes	—		1,500		1,500		—		1,500		1,500
U.S. vehicle financing (HVF III)	10,471		—		10,471		10,203		—		10,203
International vehicle financing (Various)	2,216		—		2,216		2,001		—		2,001
Other debt	144		21		165		110		2		112
Debt issue costs, discounts and premiums	(57)		(90)		(147)		(72)		(66)		(138)
Debt as reported in the balance sheet	12,774		4,595		17,369		12,242		3,449		15,691
Add:
Debt issue costs, discounts and premiums	57		90		147		72		66		138
Less:
Cash and cash equivalents	—		568		568		—		764		764
Restricted cash	137		—		137		152		—		152
Restricted cash and restricted cash equivalents associated with Term C Loan	—		245		245		—		245		245
Net Debt	$	12,694	$	3,872	$	16,566	$	12,162	$	2,506	$	14,668

LTM Adjusted Corporate EBITDA(a)			(1,050)						561

Net Corporate Leverage			NM						4.5x

NM - Not meaningful

(a) Reconciliation of LTM Adjusted Corporate EBITDA for the six months ended June 30, 2024 and twelve months ended December 31, 2023 are as follows:


(in millions)	Six Months Ended June 30, 2024		Twelve Months Ended December 31, 2023
Net income (loss) three months ended:
September 30, 2023	$	629	n/a
December 31, 2023	(348)		n/a
March 31, 2024	(186)		n/a
June 30, 2024	(865)		n/a
LTM net income (loss)	(770)		$	616
Adjustments:
Income tax provision (benefit)	(218)		(330)
Non-vehicle depreciation and amortization	155		149
Non-vehicle debt interest, net of interest income	294		238
Vehicle debt-related charges	44		42
Restructuring and restructuring related charge	59		17
Unrealized (gains) losses on financial instruments	19		117
(Gain) on sale of non-vehicle capital assets	—		(162)
Non-cash stock-based compensation forfeitures	(64)		—
Change in fair value of Public Warrants	(632)		(163)
Other items	69		37
LTM Adjusted Corporate EBITDA	$	(1,044)	$	561

Supplemental Schedule V

HERTZ GLOBAL HOLDINGS, INC.

KEY METRICS CALCULATIONS

REVENUE, UTILIZATION AND DEPRECIATION

Unaudited

________________________________________________________________________________________________________________________________________________________

Global RAC


	Three Months Ended June 30,				Percent Inc/(Dec)		Six Months Ended June 30,				Percent Inc/(Dec)
($ in millions, except where noted)	2024		2023				2024		2023
Total RPD
Revenues	$	2,353	$	2,437			$	4,433	$	4,484
Foreign currency adjustment(a)	16		9				25		18
Total Revenues - adjusted for foreign currency	$	2,369	$	2,446			$	4,458	$	4,502
Transaction Days (in thousands)	39,721		39,705				76,575		73,493
Total RPD (in dollars)	$	59.65	$	61.62	(3)	%	$	58.22	$	61.27	(5)	%

Total Revenue Per Unit Per Month
Total Revenues - adjusted for foreign currency	$	2,369	$	2,446			$	4,458	$	4,502
Average Rentable Vehicles (in whole units)	546,187		533,813				537,710		508,550
Total revenue per unit (in whole dollars)	$	4,338	$	4,582			$	8,291	$	8,853
Number of months in period (in whole units)	3		3				6		6
Total RPU Per Month (in whole dollars)	$	1,446	$	1,527	(5)	%	$	1,382	$	1,476	(6)	%

Vehicle Utilization
Transaction Days (in thousands)	39,721		39,705				76,575		73,493
Average Rentable Vehicles (in whole units)	546,187		533,813				537,710		508,550
Number of days in period (in whole units)	91		91				182		181
Available Car Days (in thousands)	49,701		48,576				97,882		92,079
Vehicle Utilization(b)	80%		82%				78%		80%

Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net	$	1,035	$	329			$	2,004	$	710
Foreign currency adjustment(a)	5		2				8		4
Adjusted depreciation of revenue earning vehicles and lease charges	$	1,040	$	331			$	2,012	$	714
Average Vehicles (in whole units)	577,224		561,277				562,358		532,903
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$	1,801	$	590			$	3,577	$	1,339
Number of months in period (in whole units)	3		3				6		6
Depreciation Per Unit Per Month (in whole dollars)	$	600	$	197	NM		$	596	$	223	NM

Note: Global RAC represents Americas RAC and International RAC segment information on a combined basis and excludes Corporate

NM - Not meaningful

(a)Based on December 31, 2023 foreign exchange rates.

(b)Calculated as Transaction Days divided by Available Car Days.

Supplemental Schedule V (continued)

HERTZ GLOBAL HOLDINGS, INC.

KEY METRICS CALCULATIONS

REVENUE, UTILIZATION AND DEPRECIATION

Unaudited

________________________________________________________________________________________________________________________________________________________

Americas RAC


	Three Months Ended June 30,					Percent Inc/(Dec)		Six Months Ended June 30,						Percent Inc/(Dec)
($ in millions, except where noted)	2024		2023					2024			2023
Total RPD
Revenues	$	1,928	$	2,015				$	3,667		$	3,745
Foreign currency adjustment(a)	3		1					4			2
Total Revenues - adjusted for foreign currency	$	1,931	$	2,016				$	3,671		$	3,747
Transaction Days (in thousands)	32,216		32,469					62,776			60,348
Total RPD (in dollars)	$	59.94	$	62.11		(3)	%	$	58.47		$	62.10		(6)	%

Total Revenue Per Unit Per Month
Total Revenues - adjusted for foreign currency	$	1,931	$	2,016				$	3,671		$	3,747
Average Rentable Vehicles (in whole units)	439,284		431,921					436,553			412,717
Total revenue per unit (in whole dollars)	$	4,396	$	4,668				$	8,408		$	9,079
Number of months in period (in whole units)	3		3					6			6
Total RPU Per Month (in whole dollars)	$	1,465	$	1,556		(6)	%	$	1,401		$	1,513		(7)	%

Vehicle Utilization
Transaction Days (in thousands)	32,216		32,469					62,776			60,348
Average Rentable Vehicles (in whole units)	439,284		431,921					436,553			412,717
Number of days in period (in whole units)	91		91					182			181
Available Car Days (in thousands)	39,974		39,304					79,470			74,725
Vehicle Utilization(b)	81%		83		%			79		%	81		%

Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net	$	905	$	272				$	1,781		$	621
Foreign currency adjustment(a)	1		—					2			1
Adjusted depreciation of revenue earning vehicles and lease charges	$	906	$	272				$	1,783		$	622
Average Vehicles (in whole units)	467,863		457,405					459,224			435,194
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$	1,936	$	595				$	3,882		$	1,430
Number of months in period (in whole units)	3		3					6			6
Depreciation Per Unit Per Month (in whole dollars)	$	645	$	198		NM		$	647		$	238		NM

NM - Not meaningful

(a)Based on December 31, 2023 foreign exchange rates.

(b)Calculated as Transaction Days divided by Available Car Days.

Supplemental Schedule V (continued)

HERTZ GLOBAL HOLDINGS, INC.

KEY METRICS CALCULATIONS

REVENUE, UTILIZATION AND DEPRECIATION

Unaudited

________________________________________________________________________________________________________________________________________________________

International RAC


	Three Months Ended June 30,				Percent Inc/(Dec)		Six Months Ended June 30,				Percent Inc/(Dec)
($ in millions, except where noted)	2024		2023				2024		2023
Total RPD
Revenues	$	425	$	422			$	766	$	739
Foreign currency adjustment(a)	13		8				22		16
Total Revenues - adjusted for foreign currency	$	438	$	430			$	788	$	755
Transaction Days (in thousands)	7,505		7,237				13,799		13,145
Total RPD (in dollars)	$	58.38	$	59.41	(2)	%	$	57.07	$	57.45	(1)	%

Total Revenue Per Unit Per Month
Total Revenues - adjusted for foreign currency	$	438	$	430			$	788	$	755
Average Rentable Vehicles (in whole units)	106,903		101,892				101,156		95,834
Total revenue per unit (in whole dollars)	$	4,098	$	4,219			$	7,785	$	7,880
Number of months in period (in whole units)	3		3				6		6
Total RPU Per Month (in whole dollars)	$	1,366	$	1,406	(3)	%	$	1,298	$	1,313	(1)	%

Vehicle Utilization
Transaction Days (in thousands)	7,505		7,237				13,799		13,145
Average Rentable Vehicles (in whole units)	106,903		101,892				101,156		95,834
Number of days in period (in whole units)	91		91				182		181
Available Car Days (in thousands)	9,727		9,271				18,413		17,354
Vehicle Utilization (b)	77%		78%				75%		76%

Depreciation Per Unit Per Month
Depreciation of revenue earning vehicles and lease charges, net	$	130	$	57			$	223	$	89
Foreign currency adjustment(a)	4		2				6		3
Adjusted depreciation of revenue earning vehicles and lease charges	$	134	$	59			$	229	$	92
Average Vehicles (in whole units)	109,361		103,872				103,134		97,709
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars)	$	1,226	$	564			$	2,220	$	937
Number of months in period (in whole units)	3		3				6		6
Depreciation Per Unit Per Month (in whole dollars)	$	409	$	188	NM		$	370	$	156	NM

NM - Not meaningful

(a)Based on December 31, 2023 foreign exchange rates.

(b)Calculated as Transaction Days divided by Available Car Days.

NON-GAAP MEASURES AND KEY METRICS

___________________________________________________________________

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

NON-GAAP MEASURES

Non-GAAP measures are not recognized measurements under GAAP. When evaluating the Company's operating performance or liquidity, investors should not consider non-GAAP measures in isolation of, superior to, or as a substitute for measures of the Company's financial performance as determined in accordance with GAAP.

Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share ("Adjusted EPS")

Adjusted Net Income (Loss) represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; vehicle and non-vehicle debt-related charges; restructuring and restructuring related charges; acquisition accounting-related depreciation and amortization; unrealized (gains) losses on financial instruments, gain on sale of non-vehicle capital assets; change in fair value of Public Warrants and certain other miscellaneous items on a pre-tax basis. Adjusted Net Income (Loss) includes a provision (benefit) for income taxes derived utilizing a combined statutory rate. The combined statutory rate is management's estimate of the Company's long-term tax rate. Its most comparable GAAP measure is net income (loss) attributable to the Company.

Adjusted EPS represents Adjusted Net Income (Loss) on a per diluted share basis using the weighted-average number of diluted shares outstanding for the period. Its most comparable GAAP measure is diluted earnings (loss) per share.

Adjusted Net Income (Loss) and Adjusted EPS are important operating metrics because they allow management and investors to assess operational performance of the Company's business, exclusive of the items mentioned above that are not operational in nature or comparable to those of the Company's competitors.

Adjusted Corporate EBITDA and Adjusted Corporate EBITDA Margin

Adjusted Corporate EBITDA represents income or loss attributable to the Company as adjusted to eliminate the impact of GAAP income tax; non-vehicle depreciation and amortization; non-vehicle debt interest, net; vehicle debt-related charges; restructuring and restructuring related charges; unrealized (gains) losses on financial instruments; gain on sale of non-vehicle capital assets; former CEO stock-based compensation award forfeitures; change in fair value of Public Warrants and certain other miscellaneous items.

Adjusted Corporate EBITDA Margin is calculated as the ratio of Adjusted Corporate EBITDA to total revenues.

Management uses these measures as operating performance metrics for internal monitoring and planning purposes, including the preparation of the Company's annual operating budget and monthly operating reviews, and analysis of investment decisions, profitability and performance trends. These measures enable management and investors to isolate the effects on profitability of operating metrics most meaningful to the business of renting and leasing vehicles. They also allow management and investors to assess the performance of the entire business on the same basis as its reportable segments. Adjusted Corporate EBITDA is also utilized in the determination of certain executive compensation. Its most comparable GAAP measure is net income (loss) attributable to the Company.

Adjusted operating cash flow and adjusted free cash flow

Adjusted operating cash flow represents net cash provided by operating activities net of the non-cash add back for vehicle depreciation and reserves, and exclusive of bankruptcy related payments made post emergence. Adjusted operating cash flow is an important performance measure to management and investors as it provides useful information about the amount of cash generated from operations when fully burdened by fleet costs.

Adjusted free cash flow represents adjusted operating cash flow plus the impact of net non-vehicle capital expenditures and net fleet growth after financing. Adjusted free cash flow is an important performance measure to

management and investors as it provides useful information about the amount of cash available for, but not limited to, the reduction of non-vehicle debt, share repurchase and acquisition.

The most comparable GAAP measure for adjusted operating cash flow and adjusted free cash flow is net cash provided by (used in) operating activities.

Net Fleet Growth After Financing

U.S. and International Rental Car segments Fleet Growth is defined as revenue earning vehicles expenditures, net of proceeds from disposals, plus vehicle depreciation and net vehicle financing, which includes borrowings, repayments and the change in restricted cash associated with vehicles. Fleet Growth is important as it allows the Company to assess the cash flow required to support its investment in revenue earning vehicles.

Net Non-vehicle Debt

Net Non-vehicle Debt is calculated as non-vehicle debt as reported on the Company's balance sheet, excluding the impact of unamortized debt issuance costs associated with non-vehicle debt, less cash and cash equivalents. Non-vehicle debt consists of the Company's Senior Term Loan, Senior RCF, First Lien Senior Notes, Second Lien Exchangeable Notes, Senior Second Priority Secured Notes, Senior Unsecured Notes, Promissory Notes and certain other non-vehicle indebtedness of its domestic and foreign subsidiaries. Net Non-vehicle Debt is important to management and investors as it helps measure the Company's corporate leverage. Net Non-vehicle Debt also assists in the evaluation of the Company's ability to service its non-vehicle debt without reference to the expense associated with the vehicle debt, which is collateralized by assets not available to lenders under the non-vehicle debt facilities.

Net Vehicle Debt

Net Vehicle Debt is calculated as vehicle debt as reported on the Company's balance sheet, excluding the impact of unamortized debt issue costs associated with vehicle debt, less restricted cash associated with vehicles. Restricted cash associated with vehicle debt is restricted for the purchase of revenue earning vehicles and other specified uses under the Company's vehicle debt facilities. Net Vehicle Debt is important to management, investors and ratings agencies as it helps measure the Company's leverage with respect to its vehicle assets.

Total Net Debt

Total Net Debt is calculated as total debt, excluding the impact of unamortized debt issuance costs, less total cash and cash equivalents and restricted cash associated with vehicle debt. Unamortized debt issuance costs are required to be reported as a deduction from the carrying amount of the related debt obligation under GAAP. Management believes that eliminating the effects that these costs have on debt will more accurately reflect the Company's net debt position. Total Net Debt is important to management, investors and ratings agencies as it helps measure the Company's gross leverage.

Net Corporate Leverage

Net Corporate Leverage is calculated as non-vehicle net debt divided by Adjusted Corporate EBITDA for the last twelve months. Net Corporate Leverage is important to management and investors as it measures the Company's corporate leverage net of unrestricted cash. Net Corporate Leverage also assists in the evaluation of the Company's ability to service its non-vehicle debt with reference to the generation of Adjusted Corporate EBITDA.

KEY METRICS

Available Rental Car Days

Available Rental Car Days represents Average Rentable Vehicles multiplied by the number of days in a given period.

Average Vehicles ("Fleet Capacity" or "Capacity")

Average Vehicles is determined using a simple average of the number of vehicles in the fleet whether owned or leased by the Company at the beginning and end of a given period.

Average Rentable Vehicles

Average Rentable Vehicles reflects Average Vehicles excluding vehicles for sale on the Company’s retail lots or actively in the process of being sold through other disposition channels.

Depreciation Per Unit Per Month ("Depreciation Per Unit" or "DPU")

Depreciation Per Unit Per Month represents the amount of average depreciation expense and lease charges per vehicle per month, exclusive of the impacts of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it reflects how effectively the Company is managing the costs of its vehicles and facilitates comparisons with other participants in the vehicle rental industry.

Total Revenue Per Transaction Day ("Total RPD"or "RPD"; also referred to as "pricing")

Total RPD represents revenue generated per transaction day, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it represents a measure of changes in the underlying pricing in the vehicle rental business and encompasses the elements in vehicle rental pricing that management has the ability to control.

Total Revenue Per Unit Per Month ("Total RPU", "RPU" or "Total RPU Per Month")

Total RPU Per Month represents the amount of revenue generated per vehicle in the rental fleet each month, excluding the impact of foreign currency exchange rates so as not to affect the comparability of underlying trends. This metric is important to management and investors as it provides a measure of revenue productivity relative to the number of vehicles in our rental fleet whether owned or leased, or asset efficiency.

Transaction Days ("Days"; also referred to as "volume")

Transaction Days represents the total number of 24-hour periods, with any partial period counted as one Transaction Day, that vehicles were on rent (the period between when a rental contract is opened and closed) in a given period. Thus, it is possible for a vehicle to attain more than one Transaction Day in a 24-hour period. This metric is important to management and investors as it represents the number of revenue-generating days.

Vehicle Utilization ("Utilization")

Vehicle Utilization represents the ratio of Transaction Days to Available Rental Car Days. This metric is important to management and investors as it is the measurement of the proportion of vehicles that are being used to generate revenues relative to rentable fleet capacity.

Hertz Global (HTZ) 8-KHertz Reports Second Quarter 2024 Results