SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 15, 1997
THE HERTZ CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-7541 13-1938568
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
225 Brae Boulevard, Park Ridge, New Jersey 07656-0713
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (201) 307-2000
Not Applicable
(Former name or former address, if changed since last report)
Page 1 of 7 pages.
The Exhibit Index is on page 3 .
Item 5. Other Events.
On July 15, 1997, The Hertz Corporation issued a press release
with respect to its second quarter 1997 earnings and changes in
officers and the election of new directors.
A copy of such press release is attached as Exhibit 99 hereto
and incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(c) EXHIBITS.
The following Exhibit is filed as part of this Report.
99 Press release relating to second quarter 1997
earnings and changes in officers and the election
of new directors.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
THE HERTZ CORPORATION
(Registrant)
By: /s/ Richard J. Foti
Richard J. Foti
Staff Vice President
and Controller
(Principal Accounting Officer)
Dated: July 16, 1997
Exhibit Index
Exhibit No. Description Page
99 Press release relating to second 4 - 7
quarter 1997 earnings and changes
in officers and the election of new
directors
FOR IMMEDIATE RELEASE CONTACT: Joe Russo
(201) 307-2486
HERTZ EARNS RECORD $53.9 MILLION FOR SECOND QUARTER;
NAMES NEW CFO AND NEW EQUIPMENT RENTAL PRESIDENT;
ELECTS TWO NEW BOARD MEMBERS
PARK RIDGE, NJ, July 15, 1997 -- The Hertz Corporation, the world's largest
car rental company and the largest domestic industrial and construction
equipment rental business, reported record earnings of $53.9 million for the
second quarter of 1997 or $0.50 per share, up 36.3 percent from the $39.5
million or $0.36 per share earned in the same period last year. The increase
for the second quarter of 1997 reflected continued strong performance in the
domestic car rental market.
Net income for the first half of 1997 was $73.6 million, up 52 percent
from $48.3 million earned in the first half of 1996.
Hertz Chairman and Chief Executive Officer Frank A. Olson said, "We
continue to be encouraged by the ownership changes in the domestic car rental
industry that have focused attention on the fundamentals of the business and
created an atmosphere conducive to profitable growth."
HERTZ SECOND QUARTER RESULTS - Page 2
Hertz, which underwent an initial public offering of just under 20
percent of the company's common stock on April 25, 1997, achieved record
revenues of $976.3 million in the second quarter of 1997, up $64.9 million
from the same period last year. Before accounting for the effect of foreign
exchange, the revenue increase was $81 million or 9 percent.
Revenues from worldwide car rental operations were $864.5 million in the
second quarter of 1997, up $49.1 million from the second quarter of 1996, or
before foreign exchange impact, $881.9 million, up $64.8 million.
Contributing to this performance were increased domestic car rental
transaction volume and continued upward movement in domestic car rental
pricing.
Revenues from industrial and construction equipment rental of $105.0
million in the second quarter of 1997 increased $12.7 million over the second
quarter last year, primarily as a result of increased volume attributable to
the opening of 13 new domestic equipment rental locations during the first
half of 1997 and increased penetration of the industrial equipment
rental market.
NEW OFFICERS ANNOUNCED
At the same time, it was announced that Hertz Executive Vice President
and Chief Financial Officer William Sider will retire in 1998 and that Paul J.
Siracusa, Vice President, Finance and Chief Financial Officer, Hertz
International, Ltd., has been elected Executive Vice President and named
Chief Financial Officer for the Corporation, effective August 1, 1997.
Mr. Siracusa has been with Hertz since 1969.
HERTZ SECOND QUARTER RESULTS - Page 3
Gerald A. Plescia, Division Vice President, Field Operations for Hertz
Equipment Rental Corporation, has been named President of the equipment rental
unit. With HERC since 1991, Mr. Plescia was previously with Hertz' Rent A Car
operations for 11 years. Daniel I. Kaplan, President of HERC, will continue
as an Executive Vice President of The Hertz Corporation, reporting to the
Chairman and Chief Executive Officer.
"These management changes capitalize on the depth of our management
strength and position us well for the future," said Mr. Olson.
TWO NEW DIRECTORS ELECTED
Hertz also announced the election of two new members to its Board of
Directors. Louis C. Burnett, Co-founder and Managing Partner of
Secura/Burnett Partners, an executive search consulting firm, and Joseph A.
Walker, Managing Director and Co-head of the Advisory/Mergers and Acquisitions
Department at J.P. Morgan & Co. Incorporated were elected Directors of The
Hertz Corporation.
The Hertz Corporation, headquartered in Park Ridge, N.J., operates from
approximately 5,500 locations throughout the U.S. and in approximately 140
foreign countries with a global fleet of 500,000 cars.
THE HERTZ CORPORATION
CONDENSED STATEMENT OF INCOME
(In Thousands of Dollars)
Unaudited
Three Months As % of
Ended June 30, Total Revenue
1997 1996 1997 1996
Revenue $976,316 $911,401 100.0% 100.0%
Expenses:
Direct Operating 452,759 437,214 46.4% 48.0%
Depreciation of revenue
earning equipment 245,292 221,539 25.1% 24.3%
Selling, General and
Administrative 106,876 108,388 10.9% 11.9%
Interest - net 78,284 74,976 8.0% 8.2%
Total expenses 883,211 842,117 90.5% 92.4%
Income before income taxes 93,105 69,284 9.5% 7.6%
Income taxes 39,204 29,739 4.0% 3.3%
Net income $ 53,901 $ 39,545 5.5% 4.3%
Net income per share $ 0.50 $ 0.36