Hertz Issues Correction to Q2:2013 Press Release

PARK RIDGE, N.J., July 29, 2013 /PRNewswire/ -- Hertz Global Holdings, Inc. (NYSE: HTZ) (with its subsidiaries, the "Company" or "we") today issued a correction to its previously released second quarter earnings announcement.

(Logo:  http://photos.prnewswire.com/prnh/20110810/NY50373LOGO)

Worldwide revenue per day (RPD) for the six months ended June 30, 2013, was incorrectly reported as $48.55 in Table 4 accompanying the press release.  The calculated RPD, using the correct number of transactions days of 84,510 for the first half of the year, was $49.30 up 1.9% compared with the first six months of 2012. 

U.S. revenue per day (RPD) for the six months ended June 30, 2013, was incorrectly reported as $47.03.  The calculated RPD, using the correct number of transactions days of 64,242 for the first half of the year, was $47.99 up 3.9% compared with the first six months of 2012. 

We have included all tables, including a revised table 4 reflecting these corrections, with this press release.

Using the corrected RPD does not change the previously reported GAAP EPS of $0.31 and Adjusted EPS of $0.65 for the six months ended June 30, 2013 both on a fully diluted basis.

ABOUT THE COMPANY
Hertz is the largest worldwide airport general use car rental brand, operating from approximately 10,900 corporate and licensee locations in approximately 150 countries in North America, Europe, Latin America, Asia, Australia, Africa, the Middle East and New Zealand.  Hertz is the largest airport general use car rental brand, operating from approximately 9,300 corporate and licensee locations in approximately 150 countries. Our Dollar and Thrifty brands have approximately 1,600 corporate and franchise locations in approximately 90 countries. Hertz is the number one airport car rental brand in the U.S. and at 120 major airports in Europe.  Hertz is an inaugural member of Travel + Leisure's World's Best Awards Hall of Fame and was recently named, for the thirteenth time, by the magazine's readers as the Best Car Rental Agency. Hertz was also voted the Best Overall Car Rental Company in Zagat's 2012/13 U.S. Car Rental Survey, earning top honors in 14 additional categories, and the Company swept the global awards for Best Rewards Program and Best Overall Benefits from FlyerTalk.com. Product and service initiatives such as Hertz Gold Plus Rewards, NeverLost®, and unique cars and SUVs offered through the Company's Adrenaline, Prestige and Green Traveler Collections, also set Hertz apart from the competition. Additionally, Hertz owns the vehicle leasing and fleet management leader Donlen Corporation and operates the Hertz On Demand car sharing business. The Company also owns a leading North American equipment rental business, Hertz Equipment Rental Corporation, which includes Hertz Entertainment Services.

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release and in related comments by our management include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include information concerning the Company's outlook, anticipated revenues and results of operations, as well as any other statement that does not directly relate to any historical or current fact. These forward-looking statements often include words such as "believe," "expect," "project," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "would," "should," "could," "forecasts" or similar expressions. These 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 that the Company believes are appropriate in these circumstances. We believe these judgments are reasonable, but you should understand that these statements are not guarantees of performance or results, and our actual results could differ materially from those expressed in the forward-looking statements due to a variety of important factors, both positive and negative.

 







Table 1

HERTZ GLOBAL HOLDINGS, INC.


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


(In millions, except per share amounts)


Unaudited





Three Months Ended


As a Percentage



June 30,


of Total Revenues



2013


2012


2013


2012


Total revenues

$   2,714.6


$   2,225.1


100.0

%


100.0

%













Expenses:











Direct operating

1,405.9


1,188.9


51.8

%


53.4

%


Depreciation of revenue earning











equipment and lease charges

641.1


519.8


23.6

%


23.4

%


Selling, general and administrative

275.0


206.6


10.1

%


9.3

%


Interest expense

183.8


152.2


6.8

%


6.8

%


Interest income

(2.0)


(0.5)


(0.1)

%


0.0

%


Other income, net

(1.1)


(0.6)


-

%


0.0

%


Total expenses

2,502.7


2,066.4


92.2

%


92.9

%


Income before income taxes

211.9


158.7


7.8

%


7.1

%


Provision for taxes on income

(90.5)


(65.8)


(3.3)

%


(2.9)

%


Net income attributable to Hertz Global Holdings,











Inc. and Subsidiaries' common stockholders

$      121.4


$        92.9


4.5

%


4.2

%













Weighted average number of











shares outstanding:











        Basic

400.8


420.0








        Diluted

465.1


447.4



















Earnings per share attributable to Hertz Global











Holdings, Inc. and Subsidiaries' common stockholders:











        Basic

$        0.30


$        0.22








        Diluted (a)

$        0.27


$        0.21































Six Months Ended


As a Percentage



June 30,


of Total Revenues



2013


2012


2013


2012


Total revenues

$   5,151.2


$   4,186.1


100.0

%


100.0

%













Expenses:











Direct operating

2,757.1


2,303.1


53.5

%


55.0

%


Depreciation of revenue earning











equipment and lease charges

1,228.1


1,034.9


23.9

%


24.7

%


Selling, general and administrative

526.7


414.3


10.2

%


9.9

%


Interest expense

360.6


314.5


7.0

%


7.5

%


Interest income

(3.8)


(1.6)


(0.1)

%


0.0

%


Other income, net

(1.7)


(1.0)


0.0

%


0.0

%


Total expenses

4,867.0


4,064.2


94.5

%


97.1

%


Income before income taxes

284.2


121.9


5.5

%


2.9

%


Provision for taxes on income

(144.8)


(85.3)


(2.8)

%


(2.0)

%


Net income attributable to Hertz Global Holdings,











Inc. and Subsidiaries' common stockholders

$      139.4


$       36.6


2.7

%


0.9

%













Weighted average number of











shares outstanding:











        Basic

408.3


419.1








        Diluted

463.0


447.9



















Earnings per share attributable to Hertz Global











Holdings, Inc. and Subsidiaries' common stockholders:











        Basic

$       0.34


$       0.09








        Diluted (a)

$       0.31


$       0.08



















(a) We had a change in policy in Q1 2013 with respect to settling the conversion of our 5.25% Convertible Senior Notes

due June 2014. For 2013, this policy change results in an adjustment to the numerator (net income) of our earnings

per share computation. The numerator is adjusted to add back the after-tax amount of interest recognized in the period

associated with the Convertible Senior Notes on the same pro rata basis.












 











Table 2

HERTZ GLOBAL HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions)

Unaudited
















Three Months Ended June 30, 2013


Three Months Ended June 30, 2012



As




As


As




As



Reported


Adjustments


Adjusted


Reported


Adjustments


Adjusted

Total revenues


$   2,714.6


$                   -


$   2,714.6


$   2,225.1


$ -


$ 2,225.1














Expenses:













Direct operating


1,405.9


(45.4)

(a)

1,360.5


1,188.9


(34.6)

(a)

1,154.3

Depreciation of revenue earning













equipment and lease charges


641.1


(1.8)

(b)

639.3


519.8


(2.7)

(b)

517.1

Selling, general and administrative


275.0


(35.4)

(c)

239.6


206.6


(17.3)

(c)

189.3

Interest expense


183.8


(18.5)

(d)

165.3


152.2


(20.6)

(d)

131.6

Interest income


(2.0)


-


(2.0)


(0.5)


-


(0.5)

Other income, net


(1.1)


(1.5)


(2.6)


(0.6)


-


(0.6)

Total expenses


2,502.7


(102.6)


2,400.1


2,066.4


(75.2)


1,991.2

Income before income taxes


211.9


102.6


314.5


158.7


75.2


233.9

Provision for taxes on income


(90.5)


(19.6)

(e)

(110.1)


(65.8)


(13.7)

(e)

(79.5)

Net income attributable to Hertz Global Holdings,













Inc. and Subsidiaries' common stockholders


$      121.4


$             83.0


$      204.4


$        92.9


$ 61.5


$ 154.4
















Six Months Ended June 30, 2013


Six Months Ended June 30, 2012



As




As


As




As



Reported


Adjustments


Adjusted


Reported


Adjustments


Adjusted

Total revenues


$   5,151.2


$                  -


$   5,151.2


$   4,186.1


$ -


$ 4,186.1














Expenses:













Direct operating


2,757.1


(86.9)

(a)

2,670.2


2,303.1


(63.4)

(a)

2,239.7

Depreciation of revenue earning













equipment and lease charges


1,228.1


(2.5)

(b)

1,225.6


1,034.9


(5.5)

(b)

1,029.4

Selling, general and administrative


526.7


(48.1)

(c)

478.6


414.3


(26.7)

(c)

387.6

Interest expense


360.6


(35.9)

(d)

324.7


314.5


(45.7)

(d)

268.8

Interest income


(3.8)


-


(3.8)


(1.6)


-


(1.6)

Other income, net


(1.7)


(1.4)


(3.1)


(1.0)


-


(1.0)

Total expenses


4,867.0


(174.8)


4,692.2


4,064.2


(141.3)


3,922.9

Income before income taxes


284.2


174.8


459.0


121.9


141.3


263.2

Provision for taxes on income


(144.8)


(15.9)

(e)

(160.7)


(85.3)


(4.2)

(e)

(89.5)

Net income attributable to Hertz Global Holdings,













Inc. and Subsidiaries' common stockholders


$      139.4


$          158.9


$      298.3


$        36.6


$ 137.1


$ 173.7














(a) Represents the increase in amortization of other intangible assets, depreciation of property and equipment and accretion of certain revalued liabilities relating to purchase

accounting. For the three months ended June 30, 2013 and 2012, also includes restructuring and restructuring related charges of $8.5 million and $9.0 million,

respectively. For the six months ended June 30, 2013 and 2012, also includes restructuring and restructuring related charges of $11.0 million and $17.0 million,

respectively.

(b) Represents the increase in depreciation of equipment rental revenue earning equipment based upon its revaluation relating to purchase accounting.

(c) Represents an increase in depreciation of property and equipment relating to purchase accounting. For the three months ended June 30, 2013 and 2012, also includes

restructuring and restructuring related charges of $10.8 million and $12.2 million, respectively. For the six months ended June 30, 2013 and 2012, also includes

restructuring and restructuring related charges of $14.7 million and $14.1 million, respectively. For all periods presented, also includes other adjustments which are

detailed in Table 5.

(d) Represents non-cash debt charges relating to the amortization of deferred debt financing costs and debt discounts.

(e) Represents a provision for income taxes derived utilizing a normalized income tax rate (35% for 2013 and 34% for 2012).






Table 3


HERTZ GLOBAL HOLDINGS, INC.


SEGMENT AND OTHER INFORMATION


(In millions, except per share amounts)


Unaudited





















Three Months Ended


Six Months Ended



June 30,


June 30,



2013


2012


2013


2012


Revenues:









Car Rental

$    2,329.5


$   1,889.6


$   4,414.3


$   3,547.9


Equipment Rental

384.3


335.0


735.4


637.1


Other reconciling items

0.8


0.5


1.5


1.1



$    2,714.6


$   2,225.1


$   5,151.2


$   4,186.1











Depreciation of property and equipment:









Car Rental

$         39.5


$       29.9


$       79.8


$       60.8


Equipment Rental

8.5


8.3


17.0


16.6


Other reconciling items

2.5


3.3


5.0


6.4



$         50.5


$       41.5


$      101.8


$      83.8











Amortization of other intangible assets:









Car Rental

$         19.3


$         9.2


$        38.9


$        18.4


Equipment Rental

10.3


10.3


20.8


19.8


Other reconciling items

0.5


0.4


1.0


0.8



$        30.1


$       19.9


$        60.7


$        39.0











Income (loss) before income taxes:









Car Rental

$      307.0


$     234.8


$       476.6


$       296.4


Equipment Rental

62.8


28.1


95.0


38.2


Other reconciling items

(157.9)


(104.2)


(287.4)


(212.7)



$      211.9


$     158.7


$      284.2


$      121.9











Corporate EBITDA (a):









Car Rental

$     394.3


$     302.7


$       641.9


$        425.1


Equipment Rental

165.7


126.4


304.7


233.7


Other reconciling items

(19.6)


(21.4)


(41.8)


(43.1)



$    540.4


$     407.7


$      904.8


$       615.7











Adjusted pre-tax income (loss) (a):






Car Rental

$    363.0


$    277.4


$       571.4


$       369.0


Equipment Rental

74.1


42.5


119.9


68.4


Other reconciling items

(122.6)


(86.0)


(232.3)


(174.2)



$    314.5


$    233.9


$      459.0


$      263.2











Adjusted net income (loss) (a):






Car Rental

$    235.9


$    183.1


$       371.4


$        243.6


Equipment Rental

48.2


28.1


77.9


45.1


Other reconciling items

(79.7)


(56.8)


(151.0)


(115.0)



$    204.4


$    154.4


$      298.3


$       173.7











Adjusted diluted number of shares outstanding (a)

465.1


447.4


463.0


447.9











Adjusted diluted earnings per share (a)(b)

$    0.45


$     0.35


$       0.65


$         0.39











(a) Represents a non-GAAP measure, see the accompanying reconciliations and definitions.

(b) See footnote explanation in Table 1.

Note: "Other Reconciling Items" includes general corporate expenses, certain interest expense (including net interest on corporate debt),

as well as other business activities such as our third-party claim management services. See Tables 5 and 6.

















Table 4


HERTZ GLOBAL HOLDINGS, INC.





SELECTED OPERATING AND FINANCIAL DATA





Unaudited
























Three


Percent


Six


Percent



Months


change


Months


change



Ended, or as


from


Ended, or as


from



of Jun. 30,


prior year


of Jun. 30,


prior year



2013


period


2013


period




















Selected Car Rental Operating Data














Worldwide number of transactions (in thousands)

9,208


22.5

%

16,902


21.6

%

Domestic (Hertz, Dollar and Thrifty)

7,208


28.3

%

13,308


27.3

%

International (Hertz, Dollar and Thrifty)

2,000


5.4

%

3,594


4.2

%










Worldwide transaction days (in thousands)

45,439


22.0

%

84,510


22.6

%

Domestic (Hertz, Dollar and Thrifty)

34,178


29.9

%

64,242


30.7

%

International (Hertz, Dollar and Thrifty)

11,261


2.9

%

20,268


2.4

%










Worldwide Total RPD (a)

$         48.58


1.2

%

$           49.30


1.9

%

Domestic (Hertz, Dollar and Thrifty)

$         46.78


3.1

%

$           47.99


3.9

%

International (Hertz, Dollar and Thrifty) (b)

$         54.05


(0.5)

%

$           53.48


(0.8)

%










Worldwide average number of cars during period

830,300


26.5

%

816,100


30.5

%

Domestic (Hertz company-operated)

470,400


33.2

%

472,200


40.2

%

Domestic (Leased)

28,400


N/A


26,600


N/A


International (Hertz company-operated)

163,500


4.1

%

150,500


3.9

%

Donlen (under lease and maintenance)

168,000


15.0

%

166,800


16.0

%










Worldwide revenue earning equipment, net (in millions)

$    13,320.7


28.0

%

$      13,320.7


28.0

%










Selected Worldwide Equipment Rental Operating Data














Rental and rental related revenue (in millions) (a) (b)

$         351.0


15.8

%

$           673.1


16.6

%

Same store revenue growth , including initiatives (a) (b)

11.4

%

56.2

%

12.4

%

53.1

%

Average acquisition cost of revenue earning equipment operated









during period (in millions)

$      3,373.1


12.3

%

$        3,324.7


12.6

%

Worldwide revenue earning equipment, net (in millions)

$      2,385.3


17.5

%

$        2,385.3


17.5

%










Other Financial Data (in millions)














Cash flows provided by operating activities

$        715.1


5.4

%

$        1,458.6


24.6

%

Free cash flow (a)

(327.0)


144.8

%

(404.8)


(2.2)

%

EBITDA (a)

1,115.8


25.1

%

2,032.2


27.7

%

Corporate EBITDA (a)

540.4


32.5

%

904.8


47.0

%










Selected Balance Sheet Data (in millions)






June 30,




December 31,





2013




2012




Cash and cash equivalents

$         483.1




$          533.3




Total revenue earning equipment, net

15,706.0




12,908.3




Total assets

25,932.3




23,286.0




Total debt

17,842.0




15,448.6




Net corporate debt (a)

7,054.1




5,934.4




Net fleet debt (a)

9,911.6




8,409.3




Total net debt (a)

16,965.7




14,343.7




Total equity

2,164.2




2,507.3













(a) Represents a non-GAAP measure, see the accompanying reconciliations and definitions.

(b) Based on 12/31/12 foreign exchange rates.

N/M Percentage change not meaningful.

























Table 5


HERTZ GLOBAL HOLDINGS, INC.


RECONCILIATION OF GAAP TO NON-GAAP EARNINGS MEASURES


(In millions, except per share amounts)


Unaudited



















ADJUSTED PRE-TAX INCOME (LOSS), ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS PER SHARE























Three Months Ended June 30, 2013


Three Months Ended June 30, 2012







Other








Other





Car


Equipment


Reconciling




Car


Equipment


Reconciling





Rental


Rental


Items


Total


Rental


Rental


Items


Total


Total revenues:

$   2,329.5


$       384.3


$            0.8


$   2,714.6


$   1,889.6


$       335.0


$            0.5


$   2,225.1


Expenses:

















   Direct operating and selling, general and administrative

1,380.3


239.1


61.5


1,680.9


1,123.8


230.4


41.3


1,395.5


   Depreciation of revenue earning equipment and lease charges

568.4


72.7


0.0


641.1


454.1


65.7


0.0


519.8


   Interest expense

76.7


11.7


95.4


183.8


77.2


11.5


63.5


152.2


   Interest income

(1.9)


(0.1)


0.0


(2.0)


(0.3)


(0.1)


(0.1)


(0.5)


   Other income, net

(1.0)


(1.9)


1.8


(1.1)


0.0


(0.6)


0.0


(0.6)


Total expenses

2,022.5


321.5


158.7


2,502.7


1,654.8


306.9


104.7


2,066.4


Income (loss) before income taxes

307.0


62.8


(157.9)


211.9


234.8


28.1


(104.2)


158.7


Adjustments:

















   Purchase accounting (a):

















   Direct operating and selling, general and administrative

20.4


10.3


0.5


31.2


14.5


10.8


1.0


26.3


   Depreciation of revenue earning equipment

1.9


-


-


1.9


2.7


-


-


2.7


   Non-cash debt charges (b)

5.4


1.1


13.0


19.5


10.6


1.1


8.9


20.6


   Restructuring charges (c)

15.7


0.9


1.0


17.6


11.8


2.5


1.8


16.1


   Restructuring related charges (c)

6.7


-


1.9


8.6


3.1


-


1.9


5.0


   Derivative (gains) losses (c)

0.1


-


-


0.1


(0.1)


-


0.1


-


   Acquisition related costs (d)

-


-


9.1


9.1


-


-


-


-


   Integration expenses (d)

(0.6)


-


9.8


9.2


-


-


4.5


4.5


   Management transition costs (d)

-


-


-


-


-


-


-


-


   Other unusual/non-recurring (c)

6.4


(1.0)


-


5.4


-


-


-


-


Adjusted pre-tax income (loss)

363.0


74.1


(122.6)


314.5


277.4


42.5


(86.0)


233.9


Assumed (provision) benefit for income taxes (e)

(127.1)


(25.9)


42.9


(110.1)


(94.3)


(14.4)


29.2


(79.5)


Adjusted net income (loss)

$      235.9


$        48.2


$         (79.7)


$       204.4


$      183.1


$         28.1


$         (56.8)


$      154.4


Adjusted diluted number of shares outstanding







465.1








447.4



















Adjusted diluted earnings per share (f)







$        0.45








$       0.35




















Six Months Ended June 30, 2013


Six Months Ended June 30, 2012







Other








Other





Car


Equipment


Reconciling




Car


Equipment


Reconciling





Rental


Rental


Items


Total


Rental


Rental


Items


Total


Total revenues:

$   4,414.3


$       735.4


$            1.5


$    5,151.2


$   3,547.9


$       637.1


$            1.1


$ 4,186.1


Expenses:

















   Direct operating and selling, general and administrative

2,708.5


471.1


104.2


3,283.8


2,189.2


446.7


81.5


2,717.4


   Depreciation of revenue earning equipment and lease charges

1,081.4


146.7


0.0


1,228.1


905.8


129.1


0.0


1,034.9


   Interest expense

152.5


25.1


183.0


360.6


157.8


24.3


132.4


314.5


   Interest income

(3.6)


(0.1)


(0.1)


(3.8)


(1.3)


(0.2)


(0.1)


(1.6)


   Other income, net

(1.1)


(2.4)


1.8


(1.7)


0.0


(1.0)


0.0


(1.0)


Total expenses

3,937.7


640.4


288.9


4,867.0


3,251.5


598.9


213.8


4,064.2


Income (loss) before income taxes

476.6


95.0


(287.4)


284.2


296.4


38.2


(212.7)


121.9


Adjustments:

















   Purchase accounting (a):

















   Direct operating and selling, general and administrative

40.9


20.8


1.1


62.8


24.7


20.8


2.0


47.5


   Depreciation of revenue earning equipment

4.0


-


-


4.0


5.5


-


-


5.5


   Non-cash debt charges (b)

11.1


2.3


23.4


36.8


21.7