"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., Aug. 1, 2024 /PRNewswire/ -- 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 $347 million in the prior year quarter. The decrease was due mainly to increased vehicle depreciation. Recently, the Company announced critical executive management appointments to strengthen its leadership team and sharpen the Company's focus on driving enhanced profitability through operational excellence, superior customer service, strategic fleet management, cost control, and premium revenue. SUMMARY RESULTS Three Months Ended June 30, Percent Inc/(Dec) 2024 vs 2023 ($ 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 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 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 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  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. UNAUDITED FINANCIAL INFORMATION  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 InternationalRAC Corporate Hertz Global Americas RAC InternationalRAC 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