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FOR IMMEDIATE RELEASE CONTACT: FINANCIAL - LAUREN S. BABUS
(201) 307-2100
MEDIA - JOE RUSSO
(201) 307-2486
HERTZ REPORTS RECORD THIRD QUARTER EARNINGS
OF $118.7 MILLION, UP 27%
PARK RIDGE, NJ, OCTOBER 13, 1998 -- The Hertz Corporation (NYSE:HRZ), the
world's largest car rental company and a leading industrial and construction
equipment rental business, reported record earnings of $118.7 million for the
third quarter of 1998, up 27 percent from the $93.4 million reported for the
same period last year. Earnings per share on a diluted basis were $1.09 per
share for third quarter, 1998, up from 86 cents in the third quarter of the
prior year.
Net income for the first nine months of 1998 was $229.1 million, up 37
percent from $167.1 million earned in the same period, 1997.
Hertz also achieved record third quarter revenues of $1.225 billion, up
11.2 percent or $123 million from the $1.102 billion reported for the same
period, 1997. Before the impact of changes in foreign exchange rates, the
revenue increase would have been $129 million or 11.7 percent growth over the
prior year.
Revenues for the first nine months were up 7.3 percent from $2.957
billion in 1997 to $3.172 billion in 1998. Before the impact of changes in
foreign exchange rates, the increase would have been 8.5 percent or $252 million
over the prior year.
Frank A. Olson, Chairman and Chief Executive Officer of Hertz, said,
"We are very pleased with our trends on volume and pricing recovery, and are
comfortable that we will produce our fifth consecutive record profit year."
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HERTZ THIRD QUARTER EARNINGS - PAGE 2
Domestic car rental operations reported revenues of $756.7 million for
the quarter, up 6.7 percent from $709.4 million in the same quarter last year.
International car rental and leasing reported a 2.6 percent increase in
revenues for the third quarter from $263.0 million in 1997 to $270.0 million in
1998. Before the impact of changes in foreign exchange rates and adjustments for
the franchising of previously owned locations, revenue for the quarter would
have been 7.6 percent higher than 1997.
Hertz' worldwide industrial and construction equipment rental
operations, including acquisitions, generated revenues of $189.5 million for the
third quarter, 1998, up 54.3 percent from the $122.8 million in the third
quarter last year.
Headquartered in Park Ridge, New Jersey, Hertz operates from over 5,500
locations throughout the U.S. and in 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 September 30, Total Revenue
------------------- -------------
1998 1997 1998 1997
---- ---- ---- ----
Revenue $ 1,225,145 $ 1,102,142 100.0% 100.0%
Expenses:
Direct operating 514,718 479,426 42.0% 43.5%
Depreciation of revenue
earning equipment 304,453 266,947 24.8% 24.2%
Selling, general and
administrative 119,762 113,244 9.8% 10.3%
Interest - net 85,894 80,829 7.0% 7.3%
------------ ------------ ------- -------
Total expenses 1,024,827 940,446 83.6% 85.3%
------------ ------------ ------- -------
Income before income taxes 200,318 161,696 16.4% 14.7%
Income taxes 81,640 68,262 6.7% 6.2%
------------ ------------ ------- -------
Net income $ 118,678 $ 93,434 9.7% 8.5%
============ ============ ======= =======
Earnings per share
Basic $ 1.10 $ 0.86
Diluted $ 1.09 $ 0.86
Weighted average number of shares outstanding:
Basic 108,070,628 108,230,984
Diluted 108,557,208 108,631,839
BALANCE SHEET DATA
(In Thousands of Dollars)
Unaudited
September 30,
-------------
1998 1997
---- ----
Revenue earning equipment:
Cars $4,809,553 $4,518,696
Other equipment 1,307,052 876,614
Total assets 8,950,650 7,788,362
Total debt 5,820,956 5,103,762
Stockholders' equity 1,352,646 1,116,096
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