Hertz Global Holdings, Inc. (NYSE: HTZ) (“Hertz Global” or the “Company”) today reported a first quarter 2017 net loss from continuing operations of $223 million, or $2.69 per diluted share, including $30 million of impairment charges, compared with net loss from continuing operations of $52 million, or $0.61 per diluted share, during the first quarter of 2016. On an adjusted basis, the Company reported a net loss for the first quarter 2017 of $134 million, or $1.61 per diluted share, compared with an adjusted net loss of $67 million, or $0.79 per diluted share, for the same period last year.

Total revenues for the first quarter 2017 were $1.9 billion, a 3% decline versus the first quarter 2016. Loss from continuing operations before income taxes for first quarter 2017 was $294 million versus $76 million in the same period last year. Adjusted Corporate EBITDA for the first quarter 2017 was a negative $110 million, compared to positive $27 million in the same period last year.

“As previously outlined, we are executing on a turnaround plan that puts our customers at the center of everything we do,” said Kathryn V. Marinello, president and chief executive officer. “Our goal is to strengthen the business to drive predictable, sustainable growth over the long term. While we are mindful of today’s headwinds related to used car residual values, our commitment to investing in the business remains steadfast. In particular, we are placing significant emphasis on fleet quality, the customer experience, brand development and systems transformation. These investments are critical to rebuilding our position as a leader in the global rental car market. While our performance doesn’t yet reflect our investments and may continue to be uneven, we are seeing signs of progress.”

U.S. RENTAL CAR (“U.S. RAC”) SUMMARY

U.S. RAC⁽¹⁾	Three Months Ended March 31,				Percent Inc/(Dec)
($ in millions, except where noted)	2017		2016		Percent Inc/(Dec)
Total Revenues	$	1,353	$	1,406	(4)%
Depreciation of revenue earning vehicles and lease charges, net	$	499	$	419	19%
Income (loss) from continuing operations before income taxes	$	(132)	$	(22)	500%

Adjusted pre-tax income (loss)	$	(116)	$	(4)	NM
Adjusted pre-tax margin	(9)%		—%		(830)	bps

Adjusted Corporate EBITDA	$	(104)	$	26	NM
Adjusted Corporate EBITDA margin	(8)%		2%		(950)	bps

Average vehicles	478,000		460,200		4%
Transaction days (in thousands)	32,312		32,742		(1)%
Total RPD (in whole dollars)	$	41.19	$	42.36	(3)%
Total RPU (in whole dollars)	$	928	$	1,005	(8)%
Net depreciation per unit per month (in whole dollars)	$	348	$	303	15%

NM – Not Meaningful

Total U.S. RAC revenues were $1.4 billion in the first quarter 2017, a decrease of 4%, versus the same period last year. Transaction days decreased by 1% year-over-year, primarily driven by one less rental day when you factor in 2016’s Leap day. Pricing, as measured by Total RPD, decreased by 3% in the quarter, impacted by an unfavorable customer mix, which the Company is currently addressing as part of its long-term improvement plan. Revenues were also impacted by the shift of the Easter holiday into the second quarter this year.

First quarter U.S. RAC net vehicle depreciation per unit per month increased 15% versus the same period last year to $348, primarily driven by seasonally weak residual trends. Despite the lower used-car values, the Company stayed on course with its fleet optimization plan, selling 21% more vehicles year over year and onboarding a richer mix of model year 2017 vehicles. While utilization was lower by 3 percentage points in the quarter, the Company’s fleet realignment is critical to driving customer preference and improving profitability longer term.

First quarter 2017 Adjusted Corporate EBITDA for U.S. RAC was a negative $104 million, a $130 million decline versus the same period last year. In addition to fleet investments and vehicle realignment initiatives, the reduction was impacted by incremental spending on IT systems, service improvements and brand development.

INTERNATIONAL RENTAL CAR (“INTERNATIONAL RAC”) SUMMARY

International RAC⁽¹⁾	Three Months Ended March 31,				Percent Inc/(Dec)
($ in millions, except where noted)	2017		2016		Percent Inc/(Dec)
Total Revenues	$	411	$	433	(5)%
Depreciation of revenue earning vehicles and lease charges, net	$	85	$	86	(1)%
Income (loss) from continuing operations before income taxes	$	(5)	$	(1)	400%

Adjusted pre-tax income (loss)	$	(4)	$	3	NM
Adjusted pre-tax margin	(1)%		1%		(170)	bps

Adjusted Corporate EBITDA	$	3	$	11	(73)%
Adjusted Corporate EBITDA margin	1%		3%		(180)	bps

Average vehicles	150,400		148,100		2%
Transaction days (in thousands)	10,184		10,104		1%
Total RPD (in whole dollars)	$	39.38	$	40.97	(4)%
Total RPU (in whole dollars)	$	889	$	932	(5)%
Net depreciation per unit per month (in whole dollars)	$	184	$	185	(1)%

NM – Not Meaningful

The Company’s International RAC segment revenues were $411 million in first quarter 2017, a decrease of 5% from the first quarter 2016. Excluding a $6 million unfavorable impact of foreign currency exchange rates, revenues decreased 4% driven by a 4% decrease in Total RPD, partially offset by a 1% increase in transaction days. The decline in the International RAC revenues reflect a tougher year-over-year comparison due to the additional Leap day in 2016, the Easter shift to second quarter in 2017, as well as the termination of certain contracts in the third quarter of 2016.

First quarter 2017 Adjusted Corporate EBITDA for International RAC was $3 million.

ALL OTHER OPERATIONS

All Other Operations⁽¹⁾	Three Months Ended March 31,						Percent Inc/(Dec)
($ in millions)	2017			2016			Percent Inc/(Dec)
Total Revenues	$	152		$	144		6	%

Adjusted pre-tax income (loss)	$	21		$	18		17	%
Adjusted pre-tax margin	14		%	13		%	130		bps

Adjusted Corporate EBITDA	$	20		$	17		18	%
Adjusted Corporate EBITDA margin	13		%	12		%	140		bps

Average vehicles – Donlen	207,500			162,300			28	%

All Other Operations, which is primarily comprised of the Company’s Donlen leasing operations, reported a 6% increase in total revenues for the first quarter 2017. Adjusted Corporate EBITDA for the All Other Operations segment was $20 million for the first quarter 2017, which is an increase of 18% versus first quarter last year.

(1) Adjusted pre-tax income (loss), adjusted pre-tax margin, Adjusted Corporate EBITDA, Adjusted Corporate EBITDA margin, adjusted net income (loss) and adjusted diluted earnings per share are non-GAAP measures. Average vehicles, transaction days, Total RPD, Total RPU and net depreciation per unit per month are key metrics. See the accompanying Supplemental Schedules and Definitions for the reconciliations and definitions for each of these non-GAAP measures and key metrics and the reason the Company’s management believes that this information is useful to investors.

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