Hertz Global (HTZ) 7 Aug 192019 Q2 Earnings call transcript

Welcome to the Hertz Global Holdings Second Quarter 2019 Earnings Conference Call. [Operator Instructions] I would like to remind you that today's call is being recorded by the company.

I would now like to turn the call over to your host, Leslie Hunziker.

Good morning, everyone. By now you should have our press release and associated financial information. to our conference website. slides be that provided on accessed also accompany call our can We've

I statements call made to on want remind this contain you forward-looking that certain information.

nature, guarantees may company results materially. undertakes and update only Any on to and are as uncertainty. relayed differ of that information no reflect call statements to inherent obligation not by Forward-looking changed information the their this are forward-looking of subject Actual date, circumstances. performance to speaks this

our in of contained press is XX-K the statements of these concerning are will and Form section information the these and Statements and XXXX or on factors Hertz Copies available our earnings website. risk when quarter Additional release Form filed. from XX-Q filings and our the Forward-Looking second XXXX SEC

measures, that which posted non-GAAP performance profitability reconciled press Today, are our in believe certain is is release, demonstrated GAAP these which we'll We our use all website. of non-GAAP numbers metrics. our using and better our financial on with

call same Our the materially Hertz are a Inc., Holdings. Corporation Hertz Results Holdings, the traded Global company. Hertz publicly for Global focuses as today on

On Officer. and Chief this Hertz's Jamere our Financial the Marinello, CEO; Jackson, morning we have call Kathy

Now call Kathy. over I'll turn to the

volume, couple good and It's quarter. morning, car Thank and you, Leslie, utilization and since second been of a again the we progress on pricing everyone. improved all rental delivered U.S. busy continues months in good spoke last fronts. We

made key programs put offering market all training trending enhanced across scores processes vehicle positive and in sales is we place to a And new categories, driving to revenue products. higher. leading after major addition service In NPS service enhancements are value-added and prove year-over-year

brands, forward, single initiatives visibility high help management growth extends and each tools tougher improvement, RPD comps in of quarterly of growth. strategic price raising remains Admittedly, volume period. generated year-over-year balance major but digit three commitment a growth continued U.S. resulted the and the a learning, XX% are top string find and digits, This of to opportunities U.S. us and we our low latest revenue our higher get in move all revenue which priority. which double Machine X% a as line to pricing value marketing

Our the fleet mix across U.S. configuration better revenue on a turnaround launching brands, year quality from for premium page higher and regions. pricing a tools with demand AI To international and currency richer a momentum our in taking customer line country-specific generate reflect and segment reported to forecasting last team X% and prioritizing constant sustainable in Europe, pricing. is basis preferences while the

time same the At that second we're focused quarter revenues, cost optimization. also record delivering we're on

have leverage a our identified year now streamline company-wide paid smarter, initiative make a next early the work exceeding savings second these but of investments, that's plan to are a opportunities internal we've dividends to portion scale quarter these and productivity processes. notable underway in will margin and result confidence used more the contribution. We technology being Right giving offset with increased us our efficiencies

in the significant depreciation was quarter. it you saw, expense, to the As relates as reduction

channel. effective are values and growth expected through the life residual factors multiple than sales including fleets, While extended favorability, retail into stronger TNC vehicle efficiency transaction strategy, that highest contributing remain and year, asset the of acquisition going our the a return to use

car used we softening So haven't far market. much seen in the

making controls. cost management planning disciplined through However, and prudent fleet with and we're decision being internal

through outcomes on earning focus that depreciation drive dispositions Our all higher our on the cycles. through procurement and rotations, the of better opportunistic fleet capabilities channels

is app. through fast rolled We’re the first now program, North last CRM just functions the America our of in and our systems features month our couple of core this flexible our of year. completed fall. new also and rental we're made advanced how in we testing markets plan a we've cloud-based acceptance week significant launch already the reservation of our thoughtful launch mobile We've and of and systems. our launched started managing grounded financial in and the to transformation cloud-based user technology This out progress half integrated and our And platform more

the have We partners to help world-class in leadership exceptional and of cut-over ensure the launch success activities.

plan. incremental will second the Offering of in the around debt, top we in expense markets retire we're our our to growth path we confident reduces faster on flexibility. execute Rights in In which And launched And million improving the and The a quarter, the transformation financial delivering technology world, corporate our us interest strengthen presence to fully $XXX productivity structure come. and mind. put to to years capital growth our ability is also leadership our as increases to support of and

demand We made think to I and same a in successful the at the participate consistent transactions rate revenue and bonds value line opportunities refinanced the completed our both the expansion the progress last transaction highly overwhelming accelerated lower was and in debt greater recent that earnings at there we've the potential month XXXX and creates. productivity will optimization the our growth of new seven maturity, and time top to reflects year with technology the deliver margin repayment profit delivering that upgrade future quality growth, shareholders. from The combination

sales that competencies, strategically in Hertz seen be the turn to rental give smart Hertz by it execution and strong management of revenue reiterate disciplined just great the growth a expertise, balance measure. hard services capabilities and transcends day exciting was any of working second level. in that ourselves anything our We've opportunities, AI delivery initiative, It's I'll to car. pipeline The telematics large infrastructure, ride new got by to we've very us for investments for the dedicated and quarter future significant an in revenue place, I a customers to and our with Before past. in fleet are through every program we future positioned working elevate core employees combination and By over next growth. Jamere, car rental aligning our sharing team time

Jamere? Now more you I’ll second walk the quarter. on let Jamere through details

we Kathy, estimates. morning, had fleet and on good Overall momentum quarter results value significant the focus second and our everyone. EBITDA and corporate our quarter. and management, our great discipline laser The initiatives, Thank drove residual productivity, you, growth improvements for from strength previous adjusted our exceeded revenue a in

provide In to and improve business have with balance steps the free sheet, opportunities the addition, profitability cash grow which the flows. we necessary and and taken us delever to tremendous derisk will

and there the XXXX second that Topic the both the adjusted Offering to Rights and Before I give EPS quarter details, ASC is get effect one the into share diluted company XXXX for item. launched of in XXX, June. has use accordance for basic with the In we housekeeping to counts

an reported X% currency segment. the Total our of on billion consolidated basis partially RAC XX% quarter of X XXXX, total provide RAC me measures offset basis by in and second and X% results Now up revenue U.S. a U.S. due GAAP a by non-GAAP a our segment, versus our of a driven company constant Slide growth $X.X to foreign was let shows quarter. currency our international results. drag second on X-point for basis overview on our up and

and million eight for of share compared diluted the Global business. quarters of $X.XX. to marked net the Net consecutive million XXXX income during $XX $X.XX Hertz share for was in of of income compared second Our loss a was revenue quarterly a quarter to quarter per $XX results growth our loss per

basis, EBITDA points. XXX by On XXX% non-GAAP adjusted $XXX basis our to adjusted a EBITDA and corporate corporate improved million margin expanded

impact and to pricing, $X.XX increased were volume quarter for driven from our net higher or of our of in million Adjusted expense the share depreciation quarter. combined compared and initiatives. million loss prior revenue adjusted the by in $XX year net was results business the $XX an share, productivity per Our vehicle lower or per with $X.XX income RAC

starting on with with provide I'll some segment, U.S. let our and color revenue. Now start additional RAC me quarter the

U.S. a up year. business second Our quarter versus $X.X prior XX% with revenues record total billion RAC of set

business The with volume the and driven revenue and grew growth driven up and saw three X% contributed growth X%. RAC robust by segments strong retail XX% Mileage of rate points transaction and a days Our and in leisure demand. pricing U.S. TNC percentage for increase segment, by Time TNC

was and and ex by on year TNC, growth up both business quarter versus total X% grew leisure fueled in prior both Total RPD RPD the and X% off-airport.

to In year $XXX a growth addition, contributor high the positive U.S. value quarter. top million, margin prior adjusted RAC services added line were versus revenue from the quarter. $XXX in was million EBITDA improvement

XX% top Our driven decrease in vehicle the solid by results unit a per monthly depreciation productivity. growth, line and were tremendous

to segment. in service fleet disciplined initiatives, productivity, building our solid growth on brand continue teams RAC in Our marketing our excellence, growth and and profitability improvements execute resulting U.S. management,

Now turning to fleet.

as was profitability. capacity fleet. manage up utilization ex and our we tight Vehicle capacity fleet to and continue rose fleet and to rigor manage up segment with drive Fleet discipline. XX% a X% TNC X% We

vehicle $XXX depreciation. and prior Monthly Moving depreciation value of the execution. of decreased XX% acquisitions, strength year The solid disciplined result was decrease to fleet a quarter. versus per expense residual unit

to drive our unit in through retail we increase continue solid sales outcome returning In addition, to higher channel depreciation.

compared our fleet X% channel our XX% sales our to vehicle unit initiative, the quarter into sales quarter. while X%. same-store up Disposition grew group the second XXXX, Moving retail of in through non-program were dispositions

core with come. We the continue represents and capability had and profitability. Retail of sales retail we an to component of growth car is XX end and stores car through Hertz sales our a our footprint the to expand quarter at important second more future

or segment, RAC just and offset were constant million, transaction currency points were on volume over RPD total basis, X%, international just up X% $XXX as grew revenues down declines a basis under higher X%. pricing. our Moving XX days down

solid in our saw partially see while some by to business Asia offset Pacific weaker improvements pricing business volume. continues growth, Our European volume

a international of segment second in revenue that adjusted management $XX million, repeat on initiatives, what to deliver segment the EBITDA RAC our down benefits the reported launched we of growth in in item of $XX we constant did expanded service a million U.S. have basis which currency The and to through quarter have to capabilities for second We've fleet expense not similar quarter and primarily our the XXXX the favorable seen segment new XXXX. expect we and international will

the And activities and some Now free to flow. financing an on of sheet balance flow. move to our and update I provide cash cash like

$XXX basic million equity in of raised over As announced the which validly with requests. XX% This Kathy substantial and the oversubscription mentioned, stock efficient subscribed rights Rights we for concluded offering Offering, July.

us $XXX of $XXX unsecured from notes million in this issuance combined transaction the the maturities proceeds million allow $XXX corporate refinance XXXX The million completed debt August maturities. with of and the will to redeem senior XXXX

provide increased cash free improve flexibility flow. More accelerate of and to us importantly, this our business to the delevering and balance our us enables with sheet grow

cash. to Turning

the Our cash fleet ramp the usage in quarter driven that by seasonal summer meet is up demand.

and the year. up flow has and values residual outlook were The back values cash and residual our improvements in for flow XXXX. However, free the to as the anticipated the operating half strength of the expect cash generate cash positive improved hold we year in over

So tougher solid XXXX. still corporate expect and our a the to seasons to half third quarter strong second and drive of fourth we vehicle in wrap the in results improvement the in on position summer revenue early peaks growth quarter depreciation, EBITDA momentum back for in the in us adjusted and up Despite year. comparisons the and revenue

drive in our contribute along confidence the margin focus productivity These with line efficiency objectives. our expansion term balance initiatives solid ability while dynamics deliver a growth Longer will to will and stronger results, term, give to shareholder continue our value. top sheet, us long to on

Operator? turn I'll back that, for questions. to over With the operators it

Instructions] Thank Chris Please comes [Operator Woronka line Bank. the from of Your Deutsche question ahead. go you. first from

where when started, and share be going, you trajectory think clear share go on of that of gains market you're quarter. pretty where what inning to of if you're about in, Good really to business. terrific morning, might it's it you a were kind on gaining the think Wanted market you that And to what kind back to is everyone, congratulations the just and and the you possible this possible? core turnaround talk is ask,

Hertz pace, of for business a not around. look, at a more lot there to to anything still is really There's Well, fairly room share go I significant. think steady gain

you of look services the and the than If out and ride and also efforts. you out vehicles there sharing opportunities and ton demand Hertz. financing The with managing And wherever, no to far support last-mile them at provide is those delivery, outweighs capacity is to a vehicles environment opportunity macroeconomic better into the the marketplace at delivering the whenever fleets one need there. there

and enormous of I growth to every those so more I and have And addition sharing think brand seen reasons potential just this we we're to in share. a our share in fair in think, space. probably ride a we more reputation business off-airport We've our building day. And gain for that have

As over share And based on think share you're just aware, taking eye-off back. years our fair several the price. our we kind the dropped our last winning I of we're frankly,

And up Donlen. they thousands. two our is was driver Chicago fleets So plenty of – just have and of for what fleets. all matter were sizes I a capabilities a tens gems it these right in we right you we and and ago And think one there growth have taking it's have we there. looking manage do one or and point whole up to is of Fleets up well of week – gifts of if team ramping of have everybody and at now putting then to we the up out

been and Europe over developed. with ability that cars, offer place our we're the the we've been limitless and they've capabilities what what of point. putting telematics connected on in in And wider is work we've at technology, doing variety so services and we this to consistently doing, work have And then doing a

focused and intently getting foundations So laser our on yes, we're focused solid.

face a position to gotten productivity we're in of end leverage expense world-class in on where by the and by getting very balance and way the marketing year, our we'll working incredibly place, delivering think But group we've that our temperatures to there pricing addition make you world-class world-class degree people there's think room space, for their with plenty So there. I our come. if But team it, road, add a watching value in plenty and in we're be of difference has a is I utilization magic smile of we're here, to the price well hard. slowly good not, and the but that then and sheet management and out that on place to think the of XX%. a if customers. the I into our efforts incredible. It's Coast add in at doing and entire our then was And you service to think surely I I to grow XXX on at could on things in you capabilities. the I we cars get are really there's not And I at of progressing And put look in the this rate mean, results. there's no and room be West prouder I'm dedicated and there's employees Cleaning wand growth. more

Okay, was there question of great. this spending a I quarter incremental growth step partially that Kathy. really Follow-up these said initiatives of kind appreciate of it all revenue a is would on like of you've kind come past there. always were when inflect the because a feels color, big that and lot time

of expansion. kind this was would about big there productivity some the way? I be you think margin talked year. back has only the come? Do go the inflected and points, payoff there's next And is going few that that other OpEx I make direct think percentage something think that time you a were you quarter up a of or that you you was where do mean, to in initiatives

look, and what And sauce there being technology. really Well, have world-class the, I operations. clearly diligent our is do in think is to secret real we be

the taken flawlessly. enterprise has with works doing work our systems, that so that coming But time, all just doing right. And we're some it is backbone what's the but systems fixing important add-on We're up work more of core nice. stuff we're not

service our the car seamlessly connected as enable that to have to capabilities. hands the well customers with in need they technology the us We right as our deliver employees

So huge something make that difference. will a this is

road, there So brought investment works be if and we're technology that to honest, down continue to still some has well will the probably to done XXXX through completion. get

have balance growth, driven used an the space rational intent I now mentioned, growing I really them is that But of did growth The much I to population you're producing being But get how And $XX cycle the OEMs car. around them allowed down. by and are consistent thing share starts States. a sheets. residual a cost costs they're are testing cost cars. The high the the the a looking are in The it think, more in think, as on good acceptance on, it. different but capacity to what But producing. very is they're the going lower around, beautiful get of user million out at, cars was macroeconomic we market we the $XX in see demands lion's population think that population conditions given for we of bankruptcy refinance to I at with and and million, $XX million United all-time a

be through we're and and I So we're XX that, or residual of at succeed come managing operations through us to not at. don't, $XXX years. a an our and weather values given profitable cycle be that for business out can next We're all however, whatever capability to residual I'm investments and sitting that continue going assuming the $XXX values, right? building down

long managing residual process rate. do But So of everybody have question. productivity to we that think our manage more have short work around I But our and business is to a here a a technology. to and on to knows lot we're much we and answers higher

– drive that so think will overall will And margin time. higher a I discipline that over

achieved slower X%. the margin SG&A a DOE X% focusing that, which do and to that grew on currency thing add growing quarter. a so, been coming than the higher only at SG&A growing both constant second were on we is we've a Revenue focused I'll and under we And year Yes. our just into revenue business. a faster grew direct we The said X%, and operating basis, becoming our expenses rate and in over our growth, on

really leaner those line So opportunities, things item way. as going the in them the flow to our of to you're see starting P&L. a discipline in we're and efficiency get after every sustainable benefits there are and P&L. And drive across Kathy mentioned, And through

And I'd along the table in company on we in we and brand all is also the think really way. for investing our technology heavily results add quarter. the results put that, the what were people I the really the But and about the love and marketing strong the I

ago future able is The be if So – we've accretion single we month. very employee greatest motivation is had look, for out in dollar, opportunities. have employee the got two is it think than I less and future the years invest it to we $XXX a you of the general out the motivated quality a pay unit per base less vehicle run was to the how operations our to have And at, by, really our how positive. $X that fleet that's significantly look is, value at opportunities think the deliver and world-class back base, we business. if leadership motivation future that's I we higher per invest at was than can there, Even in waste in the per you

question the of your Brian ahead. next Barclays. Johnson go Johnson, is Your from open. line Brian Please comes from line

you. Thank

just enabled one as earlier, would as the management better mute. as percent off it improved saves? and it describe technology you're the revenue Jamere expense two grow? cost questions, you, took then you second Just the of around sales, while mentioned in some Around reduction growing, for OpEx, cost OpEx initiatives of that strategy. you Or broader Kathy, around well,

It's both.

is to top the for earnings way business So in the efficient most grow us line. through our

laser But our I across mean, true I productivity that's on and think we company. I as are mentioned driving focused before, most efficiency businesses. for

place getting sort business, and isn't function productivity acceleration So we're I every are goal, our to And has of leverage hit we literally this is operating initiatives where in And every a these that we're we driving the and see. contributing rigor and the think hundreds wonder. The area And business put have a productivity productivity productivity, growing one has those goal. with what's discipline. every that around capabilities EBITDA a of area you things. of combined of discipline sustained that with operations

So in chase making It's it's structural and not discipline going business improvements that a our program. putting forward. in business sustained the cut and

technology is early innings. The really

financial rental in opportunity the think we it's us. margin. benefits us we're our for service so or or from customer our of the are yet the systems, technology, front And fleet reservation or improvement systems those management all to that to that see incremental we that an going add will grow in through things And systems systems think backend whether are

again, focused higher building growing we're faster So business. margin on a

really You intensity running then in the top we're do that and you with both direct volume play operating discipline And and company. it with growth a price inside getting expenses on that do the your your line, managing SG&A. with

Okay.

Second question, two the kind same but of parts, it's topic. got

company car. announced you rental as acquiring Fox is that So small Europcar the

of kind and as happen questions, about, the out… the of be to renting two more settled say to are much your one other at one So would week, rental which at cars just which common won't one, comment as your but probably have before the are of to facilities cars move merger airports on car O'Hare exit more we you itself, go

it? sight, Beautiful isn't

What's that?

site, we just week. last It's were a beautiful

give off-airport next sent question kind minor to know. on you think – I'm But is, I at I I of a is facility like a know, brands Leslie that, footing. the the time how struck I and same by there my as look it's used now are always me right Yes, the call. what

Thrifty Fox Dollar major Sixt and I think was or Hertz literally brands. with the between

I more, actually that day. that Fox Europcar, Dollar know in you I what comment don't bad of news good lengthy or So in saw seeing those before if that's share line. terms wind up market are Do you trends facilities? you Thrifty a on leading news,

facility? that about Fox kind brand when So you do combination? do premium And that do then you second, move airports share type market what of Europcar to think see any of you and erosion when to

we've actually back the Dollar elevated done with in brands, what those invested Hertz it's brand. we've as actually Thrifty Well,

down brands, the clientele. So is not when the a And brand somebody on the more Fox. whereas and is bargain, go to with for Thrifty value looking would dollar, which with looking brand compete competes those focused budget who's speed, Hertz Hertz who's reliability, to say brand more is brands. more Dollar and I into with Thrifty and get the The for going service Fox we

And so have our that. fleet, And Hertz as seen our what our be reflect grow and we've stronger brands service price and to elevated. Dollar Thrifty continues gotten actually our

So over with the gotten we've we through have since and half, it capability place. artificial intelligence and machine a had learning, that in year last we've the

We we in to price down continue And cars as with the cost, environment an not I the think you X% saw, in the going do got the second competition. quarter. easy that it's

far ago. traction earlier, I few as have we some rental And acquisitions space we lost Europcar we about to the grow have. with acquisition, talked years our we share as and think a doing within three Fox the brands had think competencies As we the

those Now capacity we're brands do back we with like and the acquisitions companies and it they getting to grow Fox. we think can having without have

I before, and capabilities. well last-mile lot think and ride locations expand and we as other and opportunities off-airport look our growth as I at grow as delivery When have of to sharing a services mentioned

at don't great more demand – that profits. I meet see you where think I back, you So when ankle-biters made there's brands providing brands. services it We investments we a the to the see the of great step well those there and and maximize business. profit. capacity there's and demand, value We have have our down is leveraging we've If future that's into technology in competing in kind the

go line Please from from Research. Your Healy John next comes question of Northcoast ahead. the

about in to bit hoping a the business? any can ultimately airport the you normal exciting profitability the this of to growth bit on and what's there. was terms up step year Where give indications business compare I talk the the a get Can the on rental how us business to there? business you. think or more little Thank TNC early of little two you color in over next might size this driving

they want. area. for had all one meet demand companies you best metropolitan consumers drivers of CEOs In what the the licensed to it and really meet consistently all with of The Chicago demand, would The up a to I explain to way of to rides. order the one is, of the the have in sign the of there rides in of ride metropolitan sharing the that is that conversation area demands that explained

So a bit expensive. exaggeration, you enormous for drivers. it's probably greatest are an car. just that do there's of the frankly, And have And cars in is, but obviously a demand challenge space an

like win for where really when for you ride it our margins. It's been them at instead a great so And at the these car into residual value used depreciation the the peak from to solution, find do sharing companies, best and space perspective, of I'm their not putting them to the and a leveraging, curve cars ourselves. not time rent selling the at out drivers a and drivers able being double-digit they're

the expand. that distribution and business going it's sensibly growth with grow demand the find and rationally. going solution you not wins, need whenever frankly, this going We're to We're leverage over is – we profitability And a and everybody network to the we're we and have. to where

we're to ability what well these north have year buy we been Our add. I and to – the to be of our assets able growth and them XX%, projections, obviously. And a has continue XX% the far projections grow our huge as, as over mean, XX%, continue sell – to

the billion to the close by of a will end come We $X.X year.

other though The these we're fleets, is doing thing we we, have connected them.

that driver driver. to a those really and learnings. just and renting So with capabilities Donlen And from then we building points, been to business to are logistics manage leveraging fleet to have management and learn we're for car go have well beyond, able we and services now a the our putting platform

the So DSPs companies a platform on deliveries I backup service expanding and some is it think we're signing these last-mile heading. into delivery of service where and the providers real offering that expanding the services then larger to do

was we've success. before this going end So providers, the we're focus to space on in growth, going – where question we've we're no, probably had the buy low got

We anybody brand this than around go there's space. have to more for a great and and everybody enough in business

profitability, profitability just And both was pleased contributor were we're vehicles I growth with And our of a Pricing of up the XX%. terms Yes. in RAC of in second the U.S. it's quarter, business. mean, TNC strong the business, profitability better. and our to

actually operating we're of costs are from Our older obviously the when an lower look higher totality, cars. offsetting, vehicle and costs business the And the improving the keep lower on to it's costs benefits cost EBITDA fleet. in we length at and somewhat benefiting factoring accretive maintenance of when

with the grow for robust far this see double marketplace. has we just as profitability the on demand expect as And been as pleased demand we're based really Kathy the digits and to I there. can in said, So the business

are our partners And we in process launching that the over have with well. Europe in started discussions services as of these

So with But just opportunity. we business. to have, in this have the started We we partner and Localiza. our enormous grow there already is global expand footprint on worked with Brazil

a little this my just last-mile immediately around I think to feel vans in And six that's just dropping those follow Amazon delivery or five things different the then past. guys mentioned call. And bit And off. driving like of I you up, blue Great. have feel than times neighborhood, like in I

the the to offering that's maybe an And partners think trying space by like market like opportunity. or for Amazon type last-mile of Hertz? brought the Are companies those business? I'm in to would potential So Donlen look what about that

support have contracts deliveries. hundreds with already – Well, to of DSPs we literally Amazon for

companies maintenance So locations Amazon to has in to every needs. management support of positioned vans our platform we deliveries. driver our off-airport up services, Donlen point signing contracts mile our loading fleet we're And dozens support then, month with are make to our include literally cars been and locations, these which to sure that and delivery business last provide off-airport well

have and needs. employment network types running And XX% offering. on to off-airport all out our we the services that a with distribution to our the addition We're great these around vans leveraging meet get that. out of you business that with we We've DSPs signed drivers supporting locations that management again, leveraging rental to of to sense been see can't those distribution and of supporting north enough certified are our our driving of vans. in car obviously drivers Donlen are Amazon, trucks in directly in those we're find who our to in the of out do seeking up deliveries Amazon We're But fleet that regard, and of trucks.

Your line Millman ahead. next from go from Millman Michael Research. comes of question Please the

that go pricing. is OTAs percentage you talk and the the have deals that and such. keep? and of in the I Can stand where noted you. you meant that going? of revenues changes that AAA you've end you your it's and to And with amounts growth in with about press which sure not I think could Where corporate Thank you about By I'm release mean, talk the business, strong, secondly, the but

corporate So the happening what's question with about is pricing?

that as highly as you seeing a far a have corporate do in the are we group partners. best-in-class value talked just see trend. partners – firming we up We that's favorable world-class, – of And We about, pricing. a

travel in number United their one space. from We and have Marriott perspective, a

in clearly great have highly a AAA, partner valuable there. a We partnership

a growing. State cetera. of replacement was the and saw, is first volumes et price, volumes the – fairly picking it partnership July, but bit hailstorms, were in Our and Farm there stable fairly half, up flat solid saw We we space, little in

the we've replacement growth So transaction seen in business.

and us. we think to you those value and brands picked the at growth partners work we for those the I partners the when those and with – those the successfully very drive look right price and maximize partnerships that

I leisure. the one first the business and as seeing where And things on that I volume drive been within as volume we're yield on segments. really question I said, in individual prices, seeing to we're would in mean, opportunities finding of we've growth. of part say, focused your is, the we

of we've the get our through we've year. growth in segments. while outstanding The had performance half and has to seen been the all in across the of retail, So, first price that ability retail

for in get important. looking are our Kathy to mentioned, enabling business we're made service drive important us always individual priced we've that segment as opportunities the opportunities made in our business. the within And And really that really segments, that's us competitive investments investments price corporate within I has in to fleet, been think really, marketplace. across at buckets. drive as capabilities And the we're the So pricing we've a And finding that's those to there. our the

supported there like State I by we're think years talk Yes. of business. like replacements. And doing we a point, network great and and the sharing a Michael Farm look, last mile lot that Marriott, goodness. that distribution the But is to United, around massive partners over all has ride delivery and What corporate been that with have

our but is this part our million we get grow revenue eyes off-airport leisure record business, grow demands of somewhat sharing. ride – not the and going and of adjacency the delivery. a travel, the the about our And of hailing purely meet a rational what dominate mile ride last all mile can is in of soul that's this lot and That's growth last Part about our and business we're not not heart to and is, corporate off help and and a see deliveries business. we has been clearly which needs heart from travel, so that is of It price been to of $XXX to there's EBITDA businesses take it, overall and need and it. core a somewhat leveraging and ability going

third-parties much the talked corporate you on those you're just how Could much in and some that how pricing, what on of numbers about. others some you you've numbers to put revenue keep, saying

the there. a to on competitively Kathy have that and had we the enable service, – beautiful that fleet, based we've and team of on. pretty improvements sensitive fleet the that, focused that as directionally Stuart says, that's in is the to But made things sales Bob we've win on Obviously what based in been terms business Those are we have information. our what the tell can and made you out I win you that's price, improvements

have people coming stronger, our more our direct to brand gets And we as websites and apps. our

comes line go Edge the Your from next Research. Glynn from of Derek Please Consumer question ahead.

you There's still And my consolidation over there's questions. of think the U.S. of has Thanks Good on as the for those been market but big proposition a Yes. each multiple to each do a across brands the comments three on distinct rental years, many just space. the the competitive history I follow-up in for brands had in under M&A too previous you the some umbrella. landscape, morning. you marketplace? in taking look of the value consumer brands? Do its feel a there's

distinct of for I those and revenue mentioned, as brands. very of each those value We do have propositions And brands grow three all price.

elevated upside as I So to and being think, in able and opportunity a And we propositions of will drive better very and more specific our those brands, see we price, as from and growing value proposition brand a And maintaining and differentiate more more in all and we specific there's clearly with the target fact, that. do markets are services potentially Hertz value at three get has for three volume brands. price.

perspective, From and has multiple cleaned the over our times been expanded up competitive years. the landscape

needs the the and on as that Kathy about making segments the you marketplace. the the focusing of sure perspective, and service I it's meets brand the said, customer of that sort our have think product and

that on figuring through the opportunities we're so not as there are to consolidation industry. that more or equation up And and whether opposed driving in out or value roll focused

about the Got your order how notes you does priorities? you're you're – capital about rise then further allocation thinking Can reducing it. how expand the leverage even upon And and the where in rank offering. of thinking following just in expand

improvements, hell-bent. It do from that, priority, cash I the joined and the pleased an And very pretty we put – I the the in XXXX, that instance three company company clear think have a I've And I'm where been has a on think in productivity see zone has the to well amazing creating getting our I’m been top you leverage The say, job. I day should to by team much and guiding better quickly. done is productivity place.

of being We to to great at employees and down time the be. sweet group of the We growing Rights same great financial leaders the then our getting to place working costs able be that company have with engaged we where on professionals down needs with and pay group a here our debt a and very leverage only to – did in us have puts spot Offering. our a

spot de-leveraging we Rights this as inside point XXXX. trajectory accelerate enter in pretty talked obviously from good enable the I the mean, And really the operating Kathy this a built We're in delever. exit And that activities. gave And sweet Offering about. the forward, we'll naturally to that comfortable the running opportunity business to us the capabilities will us business and into be we

be, can debt. assessment the it where down that around that the and capital the get from debt we the perspective, As high more of around as is to a company this Having shareholders. EBITDA also very that return leverage up we the take needs to we and our is risk obviously, costly around passion cost to and out,

key to into think been that through hits future has us. And contributor down leverage cycle have our as back value well as well. We company we manage invest as a the more I to create getting ensuring any that

next from Brinkman Please JPMorgan. from go the comes Your ahead. Ryan question of line

my in taking just XQ. rate I This into question. had on XQ a the question for and Ryan. for then on exit Thanks is Rajat

can with that the July? international the clarify U.S. better month guidance you your help or there raised you the to You what materially that. U.S. twice half. June? end particular Was Anything metric or into how Just understand really the within flow exceeded over got or and point want pricing a that Could and any point could last that you did then Whether transaction? of got much too? us to towards better expectations through

gave to the June purpose. mess, we weren't had Rights going before, And a – with originally, we closed. give I had we think we to it range was on And to did that conservative, that with have guidance guidance. so obviously for surety Offering, the have somewhat we

issue. better didn't volume price a depreciation from issue really have June and that a cost we As a had than of came costs price, and didn't – see we our closed a and volume as perspective actually, we a held or a in expected. result Depreciation and and we

better through than came we expected. things So

expectations, we better. volume better. came were residual And and came price going $XXX we at productivity result, were that to, So in say had and before values at a in be and held our as somewhat we to we million

were be, we in going had we to knew guide to direction. we As that

capabilities systems And the that the As fleet comp. with tough the associated But to company. place, volume on managing really fleet price with fourth and with management our we've we the along management place we the value as far our revenue quarters, discipline, capabilities that diligent have put our our been to and and progressed put third in we've fleet, in and maximize our we've business.

to going the to but But second will past. continue we in comps be the are tough half, in have progress the as we again,

have half. So we we're and we working delivered in second the tougher same they But will the to systems that do have comps. deliver assume continue

tougher And just comps to it. on the expand comment. Got

seen meant half little or in give had you're far? You I based we bit what see on still getting July U.S., in in especially Can here pricing that flattish. X% a with – kind to seeing, can as comps of don't that pricing if be the to indicate the so bit bracket the more you little second that tougher, a pricing what that could to – growth know or you've

XX% through the just the strong U.S. and volume a X% and So, half year. back of price, you, and both I'll rent and volume in back the last price both half in combination remind grew of year, of our were revenues

comps, year-over-year we're are So as the that at referring we look those the things to.

most us capabilities we management, the place, systems, that service management doing I the have focus around thing things that fleet the we're in initiatives important capabilities. for the on to built, that marketing think we've revenue is

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those extent dynamics different, can but to market competitive you strategy, changed. are that always get continue to quarters the price enabled cycle. where There dynamics the could not that be on strategy be we execute So over the has the through the things time, to different, are

focused are our growth and really business. volume growth We pricing on driving both in

Sachs. David go comes the Please line ahead. Your Goldman Tamberrino from of next question from

to Jamere your positive possibly year. comments this about free Great. the I flow follow-up cash wanted getting on

you we need positive see or more much order earlier What were do that's thinking think for you was values to assumptions do are what need that? back residual in in than from it where year be half I achieve to the we going to negative? in you the

to that saying values the were seen came sort single first year of expecting obviously that residual year. We low haven't half we We in the the digits. decline into of

free the improving. cash along not on, big sort flows our So whether was flow. in the if are in get operating we of trajectory that positive or that we cash factor operating we're continue determining deciding – From standpoint, swing an

very of flow in for Our marketplace positive the trends we're have these strong. if kinds and the get seeing, swing is been execution Residuals continue what the on we'll the factor end the cash free based of year.

much values we're the year track? used so it any with And of within half have able for to in the line seen that, is yourself in cadence of the public first that Okay. throughout you or the tracked indices vehicle change just

markets the the based our of associated that the on time just it in you're speaking, little numbers us direction. that line those fleet, been you with we outperform. in from to mix are year. we've we’d the in, of gives what of in the But are of where nuances from line There indices. the in times to Obviously that directionally individual an right own half of experience, public speaking, those tracking the seen time been with seeing. outperform there the generally and public vary first generally are bit pockets our see sort business, a opportunity and demand But in sometimes marketplaces, the we've with the indices sort we're No, directionally

being a into Okay. fleets And player bit up seeing about perspective in they're looser? what then comps. What peak your shipping the understanding, about number conversation seeing on from they're competitor two U.S.? Are seeing comments getting season the guys are early the now yesterday, you July a tight far, tougher some you period, so August market little the made and being

are that, there's from we they're underperformance about pricing through to you're most I discipline pricing, you'll and – markets had of of good in about that's are in place. sizes the generally Generally And business. you've what's right. or But our fleet that think fleets fleet say, have they're important capacity saw necessarily us the the around super the I speaking, I operating environments. an half about speaking, And for right. industry that industry dynamic right fleets are in And loose. say the the able pockets wouldn't tight, a when year certain speaking, fleets then is time. and would to those But again, time seen generally about speaking, right. and they're this overly capacity generally first be get

And you volume our and ensures we've of gotten then discipline I think Yes. at over price more you that have And we've added fleet, fleet. if kind don't in that look more capacity.

I what playing ourselves, does. everybody are in out with volume. right quarter. for control pricing having the else methodologies, the But We've now the And X% million the more we've can't So $XXX increase fleet by disciplined that efforts seen a and EBITDA in price. seen utilization than for

continue do because will to to we so work. been seems what it doing And we've

are no time, this further at And there questions.

you. Thank

using gentlemen, Executive and AT&T TeleConference. your Thank for that for does participation conference for your and conclude Ladies you today.

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