Welcome to Hertz Global Holdings Second Quarter 2021 Earnings Commentary. I would now like to turn it over to our host, Tressie Rose.

Hi, everyone, and thank you for tuning in. I'm Tressie Rose, Vice President of Communications for Hertz. And I'm joined by Paul Stone, our President and CEO; and Kenny Cheung, CFO. We hope you had an opportunity to review the press release we issued that contains our second quarter 2021 earnings results, which can be found on our Investor Relations website on hertz.com. On this call, Paul will share some highlights of our results and an update on our strategic progress. Kenny will then take you through the financial details, including key operational metrics for the quarter. Our remarks will focus on Hertz Global Holdings, Inc., which we refer to as HERC, our publicly traded company. Differences in the financial results for the Hertz Corporation are disclosed in our press release. In the second quarter and in connection with Hertz's Chapter 11 emergence, the company revised its reportable segments to include Canada, Latin America and the Caribbean and its Americas rental car reportable segment, which were previously included in its international rental car reportable segment. Accordingly, prior periods have been restated to conform with the revised presentation. Our reconciliation is included in our press release. I want to remind you that some of the matters we will discuss contain forward-looking information, including potential future financial performance, which is subject to risks, uncertainties and assumptions that could cause actual results to materially differ from such forward-looking statements and information. These risks and assumptions, uncertainties and other factors are identified in our press release and our second quarter 2021 Form 10-Q as well as in other periodic filings with the SEC and on our Investor Relations section on hertz.com. We undertake no obligation to update or revise forward-looking statements. During this recording, we'll use non-GAAP financial measures, all of which are reconciled with GAAP numbers in our press release. We believe that our profitability and performance is better demonstrated using these non-GAAP measures. All comparisons will be against 2019, unless otherwise stated. With that, I'd like to hand it over to Paul Stone.

Thanks, Tressie, and thank you, everyone, for listening in. Today's remarks are a first as we concluded our Chapter 11 restructuring and emerged from bankruptcy on June 30, a significant achievement and milestone for our company. Effective July 1, our new Hertz common stock began trading under the symbol HTZZ and our warrants under HTZZW. I would like to welcome all of our new shareholders. Hertz had an outstanding second quarter, reflecting signs of strong consumer confidence and the continued rebound of travel. With the resurgence in rental demand and limited vehicle supply due to the chip shortage, we remained agile in managing our fleet to meet our customers' needs. In addition, our performance was underpinned by our more efficient operating model and leaner cost structure. We delivered total revenues of $1.9 billion, a 62% sequential improvement excluding the revenues of the Donlen fleet leasing business, which we sold in March 2021. We also delivered strong global adjusted EBITDA of $639 million, a more than threefold increase versus 2019. The improvement resulted from strong revenues, efficient fleet management and over $400 million of structural and recurring cost reduction. While a full demand recovery is still further off, we are closely monitoring trends and are confident that we are well positioned to continue our accelerating momentum in the quarters ahead. As we operate through this demand recovery, we are focused on optimizing profitability while remaining aware of industry supply-demand dynamics. The meaningful operational and financial improvements we made throughout the Chapter 11 process set us up for long-term growth and success. We took a hard look at our business and made necessary and significant changes. This included launching a cost-reduction program, rightsizing our fleet across both our U.S. and international businesses, optimizing our location footprint, negotiating cost reductions with vendors and…

Thank you, Paul. I'll start by adding my thanks to our fantastic team around the world for all their hard work to revitalize Hertz and set us up for continued success. Before I begin, my comments will focus on our adjusted results, which are reconciled from our GAAP numbers in our press release. Throughout my comments, I will be comparing to the second quarter of 2019 as a more relevant benchmark. For comparisons to our 2020 results, please refer to our 10-Q. Now turning over to our financial results. First, let me provide an overview of our total company. I'm excited to share that we delivered $639 million of adjusted corporate EBITDA, which is a quarterly record for our company. During the quarter, we saw a month-over-month sequential growth across both revenues and adjusted corporate EBITDA. In the second quarter, we generated total revenue of $1.9 billion, down 25% compared to 2019. Pricing in the quarter reflected the strong upward trend in leisure travel demand coupled with tighter fleet inventory, which mitigated the impact of fewer rental days. As I mentioned, our adjusted corporate EBITDA increased to $639 million compared to $207 million in the second quarter of 2019. And our margins expanded meaningfully to 34% from 8%, as strong consumer demand, our leaner operating structure, coupled with disciplined cost management all contributed to our increased profitability. We have continued to manage our fleet capacity with rigor and discipline to align with market demand. Our fleet capacity was down 43% versus 2019, which was in line with our transaction days. As for depreciation, monthly vehicle depreciation expense was $93 per unit, driven by continued strength and residual values and disciplined fleet management. Now let me provide some additional color on Americas RAC and International RAC segments. Within Americas RAC, revenue…

Thank you, Kenny. I hope that our discussion has provided a good update and sense of our momentum. I'm confident that Hertz has outstanding potential to drive long-term profitable growth. We've made great progress transforming the company and continue to focus on innovating our customers' experience. As people get back on the road, we are ready. This is only the beginning in our delivering even greater long-term value to our stakeholders. We are moving forward in an incredibly strong position with an exciting road ahead. Thank you for your interest in Hertz.

This concludes the prerecorded Hertz Global Holdings Second Quarter 2021 Earnings Commentary.