As of January 1, 2024, how many shares were outstanding for Dollar Rent A Car?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
common stock and cash having an aggregate fair market value equal to such stated number of shares of common stock, which right is forfeitable until the achievement of predetermined performance conditions. PUs represent the right to receive a cash denominated award, payable in cash or shares of common stock or a combination thereof, and are forfeitable until the achievement of predetermined performance conditions.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
A summary of the PSU activity as of December 31, 2024 under the 2021 Omnibus Plan is presented below:
| Shares | Weighted Average Fair Value | Aggregate Intrinsic Value (In millions) | |
|---|---|---|---|
| Outstanding as of January 1, 2024 | 9,102,738 | $ 17.52 | $ 95 |
| Granted(1) | 5,446,562 | 4.55 | — |
| Vested | — | — | — |
| Forfeited or Expired(2) | (9,351,387) | 17.11 | — |
| Outstanding as of December 31, 2024 | 5,197,913 | 4.67 | 19 |
(1) Presented assuming the issuance at the original target award amount (100%).
Compensation expense for PSUs is based on the grant date fair value of Hertz Global common stock. For grants issued in 2024, vesting eligibility is based on market, performance and service conditions of primarily two to five years. Accordingly, the number of shares issued at the end of the performance period could range between 0% and 200% of the original target award amount (100%) disclosed in the table above. Certain of these PSUs, which were granted during the months of April and June in the second quarter of 2024 and during the month of July in the third quarter of 2024, were valued on the respective grant date using a Monte Carlo simulation model that incorporates the assumptions noted in the following table:
| Assumption | April 2024 | June 2024 | July 2024 | |----------------------------------------|------------------|-----------|------------| | Expected volatility | 60 % | 65 % | 70 % | | Expected dividend yield | — % | — % | — % | | Expected term (years) | 5 | 5 | 5 | | Risk-free interest rate | 4.34 % | 4.30 % | 4.17 % | | Weighted-average grant date fair value | $ 5.92 $ | 1.71 | $ 2.51 | As of December 31, 2024, there were no issued or outstanding grants of PSAs or PUs under the 2021 Omnibus Plan.
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, as of January 1, 2024, there were 9,102,738 shares outstanding. The weighted average fair value was $17.52, resulting in an aggregate intrinsic value of $95 million.
Additionally, the document provides information on outstanding options as of the same date. There were 2,431,503 options outstanding with a weighted average exercise price of $26.17 and a weighted average remaining contractual term of 6.7 years. The aggregate intrinsic value of these options was listed as zero.
It is important to note that these figures pertain to shares and options, which are components of the overall equity structure of Dollar Rent A Car. Understanding these numbers can help a prospective franchisee assess the financial structure and potential value associated with the franchise.