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) October 14, 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 6 pages.
The Exhibit Index is on page 3.
Item 5. Other Events.
On October 14, 1997, The Hertz Corporation issued a press release
with respect to its third quarter 1997 earnings.
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 third quarter 1997 earnings.
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: October 15, 1997
Exhibit Index
Exhibit No. Description Page
99 Press release relating to third 4 - 6
quarter 1997 earnings
FOR IMMEDIATE RELEASE CONTACT: Financial: Lauren S. Babus
(201) 307-2337
Media: Joe Russo
(201) 307-2486
HERTZ REPORTS RECORD EARNINGS FOR THIRD QUARTER
PARK RIDGE, NJ, October 14, 1997 - The Hertz Corporation (NYSE:HRZ), the world's
largest car rental company and the largest domestic industrial and construction
equipment rental business, reported record pretax earnings of $161.7 million
and after tax earnings of $93.4 million for the third quarter of 1997 or $0.86
per share, up 25.9 percent from the $74.2 million or $0.69 per share earned in
the same period last year. The increase for the third quarter of 1997
reflected continued strong performance in the domestic car rental market both
in terms of increased transaction volume and upward movement in pricing.
Net income for the first nine months of 1997 was $167.1 million, up 36.3
percent from the $122.5 million earned in the same period in 1996.
-MORE-
HERTZ THIRD QUARTER RESULTS - Page 2
Hertz achieved record revenues of $1.1 billion in the third quarter of 1997,
up $42.1 million from the same period last year. Before the impact of changes
in foreign exchange rates, the revenue increase would have been an estimated
$70 million, reflecting an increase of 6.6 percent compared with last year.
Record revenue, for the third quarter, 1997, from domestic car rental and
franchise operations was $709.4 million, up 9.1 percent from the same period,
1996.
International operations generated revenue of $263 million for the third
quarter, 1997, a 9.7 percent decline compared with the same period last year.
Before the impact of changes in foreign exchange rates, and adjusted for the
franchising of Denmark and Norway, which had been corporately owned, revenue
would have been 3.6 percent higher than the third quarter, 1996.
Revenues from industrial and construction equipment rental operations of
$122.8 million in the third quarter of 1997 increased $13.1 million or
approximately 12 percent over the third quarter last year, primarily as a
result of increased volume attributable to the opening of 19 new domestic
equipment rental locations during the first nine months of 1997 and increased
penetration of the industrial equipment rental market.
The Hertz Corporation, headquartered in Park Ridge, N.J., operates
approximately 5,500 rent-a-car locations throughout the U.S. and in
approximately 140 foreign countries and 139 equipment rental locations in the
U.S., France and Spain.
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THE HERTZ CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(In Thousands of Dollars)
Unaudited
Three Months As % of
Ended September 30, Total Revenue
1997 1996 1997 1996
Revenue $1,102,142 $1,060,028 100.0% 100.0%
Expenses:
Direct Operating 479,426 485,968 43.5% 45.8%
Depreciation of revenue earning
equipment 266,947 246,006 24.2% 23.2%
Selling, General and Administrative 113,244 108,111 10.3% 10.3%
Interest - net 80,829 81,694 7.3% 7.7%
Total expenses 940,446 921,779 85.3% 87.0%
Income before income taxes 161,696 138,249 14.7% 13.0%
Income taxes 68,262 64,041 6.2% 6.0%
Net income $ 93,434 $ 74,208 8.5% 7.0%
Net income per share $ 0.86 $ 0.69