Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 27500 Riverview Center Blvd. Bonita Springs, Florida 34134 (239) 301-1000 (Address, including Zip ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-33139 HERC HOLDINGS INC. (Exact name of registrant as specified in its chart ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-33139 HERC HOLDINGS INC. (Exact name of registrant as specified in its char ...

Revenue Dependence and Market Conditions - The company's revenues are significantly dependent on the rental of equipment to contractors and industrial customers, particularly in the non-residential construction market[64] - A decline in construction or industrial activity could lead to decreased demand for rental equipment and intensified price competition, negatively impacting financial results[64] - Economic conditions, including oil and gas prices, can significantly impact capital investments and maintenance expenditures of industrial customers, affecting rental demand[64] - Government regulations and policies, including those related to infrastructure improvements, can influence market conditions and demand for rental equipment[65] - The company’s financial performance is subject to general economic conditions and fluctuations in the markets served by its customers, particularly in construction and industrial sectors[135] Competition and Industry Risks - The equipment rental industry is highly competitive and fragmented, with price being a primary competitive factor, which could adversely affect revenues if not managed properly[76][77] - Seasonal fluctuations in rental activity, particularly in the construction industry, can lead to lower profitability during off-peak periods[82] Operational and Management Risks - Attracting and retaining key management and skilled labor is critical for executing the business strategy, especially in a competitive labor market[80][81] - The company may experience inefficiencies due to employee turnover and the ramp-up period for new hires, impacting overall business performance[80] - The reliance on centralized IT systems poses risks, including potential disruptions that could adversely affect operations and financial reporting[69][73] - The company faces risks related to cybersecurity breaches, which could harm its brand and lead to material liabilities[69][71] Financial Position and Debt Management - As of December 31, 2019, the company had total outstanding debt of approximately $2.1 billion, which significantly impacts cash flows and profitability[122] - The company has limited operating history as a stand-alone public entity, and historical financial information may not reliably indicate future results[117] - The company may need to finance substantial acquisitions through additional bank financing, public offerings, or private placements, which could be challenging due to its substantial indebtedness[106] - Substantially all of the company's consolidated assets secure certain indebtedness, which could adversely affect financial flexibility and liquidity[123] - The company is vulnerable to interest rate fluctuations, as a significant portion of its debt bears interest at floating rates, potentially increasing servicing costs and reducing profitability[126] Revenue and Income Performance - Total revenues for the year ended December 31, 2019, were $1,999.0 million, an increase from $1,976.7 million in 2018, representing a growth of 1.2%[162] - Net income for 2019 was $47.5 million, compared to $69.1 million in 2018, indicating a decrease of 31.1%[162] - Basic earnings per share for 2019 were $1.66, down from $2.43 in 2018, reflecting a decline of 31.8%[162] - Equipment rental revenue increased by $43.5 million, or 2.6%, in 2019 compared to 2018, driven by a 4.0% pricing increase and higher delivery and freight revenue[173] Asset Management and Impairment Risks - Goodwill and indefinite-lived intangible assets comprised approximately 9.5% of total assets as of December 31, 2019, posing a risk of impairment[91] - The company has experienced long-lived asset impairments of $5.1 million in 2019, affecting total expenses[162] - The company’s goodwill is tested for recoverability annually, with impairment deemed to exist if the carrying value exceeds fair value[226] - The company conducted an impairment analysis for goodwill and indefinite-lived intangible assets as of October 1, 2019, concluding no impairment was necessary[231] Strategic Transactions and Spin-Off Risks - The company may pursue strategic transactions, including acquisitions or divestitures, which could significantly alter its business profile[104] - The company relies on a favorable IRS ruling for the Spin-Off to be tax-free, but any inaccuracies in representations could lead to significant tax liabilities[112] - If the Spin-Off is deemed taxable, the company could incur substantial tax liabilities, affecting its financial resources[114] - The Spin-Off may be challenged as a fraudulent transfer, which could result in rescission or liability funding for New Hertz[119] Legal and Regulatory Risks - Changes in the legal and regulatory environment could disrupt the company's business and increase expenses, impacting financial results[89] - Economic sanctions and anti-corruption laws increase the risk of compliance violations, which could adversely affect the company's operations and reputation[86] - The company operates in several foreign countries, including Canada and China, exposing it to various regulatory and compliance risks[85] Cash Flow and Liquidity Management - Cash provided by operating activities increased by $76.5 million in 2019, totaling $635.6 million compared to $559.1 million in 2018[188] - Total contractual cash obligations as of December 31, 2019, amounted to $3,129.6 million, including $2,030.2 million in debt principal and $613.5 million in interest on debt[207] - The company maintains a fixed charge coverage ratio of not less than 1:1 under the New ABL Credit Facility, contingent on maintaining certain levels of liquidity[202] Stock and Shareholder Considerations - The company has a remaining share repurchase program value of approximately $395.9 million as of December 31, 2019[154] - The company did not pay any cash dividends in 2019 and does not expect to pay dividends for the foreseeable future due to debt agreements[155] - The market price of the company's common stock could decline due to large sales or distributions of shares, particularly from significant shareholders[129] - The company may issue additional common stock to finance operations or acquisitions, which could negatively impact the market price of its common stock[130]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-33139 HERC HOLDINGS INC. (Exact name of registrant as specified in its ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-33139 HERC HOLDINGS INC. (Exact name of registrant as specified in its chart ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________________________ FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-33139 HERC HOLDINGS INC. (Exact name of registrant as specified in its char ...

Table of Contents For the fiscal year ended December 31, 2018 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-33139 HERC HOLDINGS INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________________________ FORM 10-K x ANNUAL REPORT ...