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FOR IMMEDIATE RELEASE CONTACT: Financial--Lauren S. Babus
201-307-2337
Media--Lauren E. Garvey
201-307-2448
HERTZ REPORTS RECORD SECOND QUARTER EARNINGS OF
$103.7 MILLION, UP 18%
PARK RIDGE, NJ, JULY 14, 2000--The Hertz Corporation (NYSE:HRZ), the world's
largest car rental company and a leading industrial and construction equipment
rental business, reported record second quarter, 2000, earnings of $103.7
million, up 18% from the $87.9 million generated for the same period last year.
Earnings per share on a diluted basis for the quarter were 96 cents, compared to
81 cents for the second quarter, 1999.Hertz' second quarter net income includes
a $5.4 million net gain relating to the disposal of real property.
Hertz achieved record revenues for the quarter of $1.289 billion, an
increase of 10.4% from $1.167 billion last year.
The increase for the second quarter of 2000 reflected continued pricing
pressure in Hertz' equipment rental unit and a strong volume performance in the
worldwide car rental market. However, price increases are required to offset
increasing inflation relating to vehicles, wages and interest rates.
Effective immediately, nationwide, Hertz has raised non-contract daily
and weekend rates by $3 per day. For weekly rentals, those with advance
reservations of 21 days or more have been raised $10 per week and those of less
than 21 days advance reservations were raised $20 per week. The rate increases
apply to compact through full-size class vehicles nationwide.
Hertz President and Chief Executive Officer, Craig R. Koch stated, "We
are on track to produce our seventh consecutive year of record earnings."
Headquartered in Park Ridge, NJ, Hertz operates from approximately
6,500 locations in the U.S. and over 140 foreign countries.
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THE HERTZ CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(In Thousands of Dollars)
UNAUDITED
---------
Three Months As % of
ENDED JUNE 30, TOTAL REVENUE
---------------------------- -----------------------
2000 1999 2000 1999
----------- ---------- ------- --------
Revenue $1,289,327 $1,167,389 100.0% 100.0%
---------- ---------- ------ ------
Expenses:
Direct operating 569,495 518,246 44.2% 44.4%
Depreciation of revenue earning equipment 336,068 308,136 26.0% 26.4%
Selling, general and administrative 115,730 114,731 9.0% 9.8%
Interest - net 99,014 79,347 7.7% 6.8%
---------- ---------- ----- -----
Total expenses 1,120,307 1,020,460 86.9% 87.4%
---------- ---------- ----- -----
Income before income taxes 169,020 146,929 13.1% 12.6%
Income taxes 65,289 59,026 5.1% 5.1%
---------- ---------- ----- -----
Net income $ 103,731 $ 87,903 8.0% 7.5%
========== ========== ===== =====
Earnings per share:
Basic $0.96 $0.81
Diluted $0.96 $0.81
Weighted average number of shares outstanding:
Basic 107,574,249 108,089,721
Diluted 107,718,604 109,054,545
Six Months As % of
ENDED JUNE 30, TOTAL REVENUE
--------------------------- ----------------------
2000 1999 2000 1999
---------- ---------- ------- -------
Revenue $2,424,532 $2,200,344 100.0% 100.0%
---------- --------- ------ ------
Expenses:
Direct operating 1,108,496 1,006,534 45.7% 45.7%
Depreciation of revenue earning equipment 640,098 584,861 26.4% 26.6%
Selling, general and administrative 225,343 223,484 9.3% 10.2%
Interest - net 188,289 156,497 7.8% 7.1%
---------- --------- ----- -----
Total expenses 2,162,226 1,971,376 89.2% 89.6%
---------- --------- ----- -----
Income before income taxes 262,306 228,968 10.8% 10.4%
Income taxes 102,275 92,304 4.2% 4.2%
---------- ----------- ----- -----
Net income $ 160,031 $ 136,664 6.6% 6.2%
========== ========== ===== =====
Earnings per share
Basic $1.49 $1.27
Diluted $1.48 $1.26
Weighted average number of shares outstanding:
Basic 107,711,182 107,987,221
Diluted 107,910,240 108,731,620
BALANCE SHEET DATA
(In Thousands of Dollars)
UNAUDITED
---------
JUNE 30,
-------------------------------
2000 1999
----------- -----------
Revenue earning equipment:
Cars $ 6,372,583 $ 5,567,731
Other equipment 1,721,880 1,527,938
Total assets 11,450,770 10,123,285
Total debt 7,616,626 6,700,837
Stockholders' equity 1,790,609 1,502,781
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