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FOR IMMEDIATE RELEASE CONTACT: FINANCIAL - LAUREN S. BABUS
(201) 307-2100
MEDIA - JOE RUSSO
(201) 307-2486
HERTZ REPORTS RECORD FOURTH QUARTER EARNINGS, UP 37%;
FIFTH CONSECUTIVE YEAR OF RECORD PROFITS
PARK RIDGE, NJ, JANUARY 20, 1999 -- The Hertz Corporation (NYSE:HRZ), the
world's largest car rental company and a leading industrial and construction
equipment rental business, reported record earnings for 1998 of $277.0 million,
up 37 percent from 1997 earnings of $201.6 million. Earnings per share on a
diluted basis for the year were $2.55, up from $1.86 for the previous year.
It was the company's fifth consecutive year of record earnings and
seventh consecutive year of increased earnings.
Net income for the fourth quarter 1998 was $47.9 million or 44 cents
per share on a diluted basis, up 38 percent from the $34.6 million or 32 cents
per share on a diluted basis reported for the same period in 1997, making it a
record fourth quarter for the company.
Hertz achieved record revenues of $4.238 billion in 1998, up 8.9
percent from $3.891 billion in 1997.
Fourth quarter 1998 revenue was a record $1.066 billion, up 14 percent
from the $934.5 million generated for the same period, the prior year.
Headquartered in Park Ridge, New Jersey, Hertz operates from over 5,500
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 December 31, Total Revenue
--------------------------- ------------------
1998 1997 1998 1997
------------ ------------ ----- -----
Revenue $ 1,066,035 $ 934,510 100.0% 100.0%
------------ ------------ ----- -----
Expenses:
Direct operating 510,504 450,572 47.9% 48.2%
Depreciation of revenue earning equipment 281,421 248,821 26.4% 26.6%
Selling, general and administrative 118,689 110,871 11.1% 11.9%
Interest - net 78,364 69,788 7.4% 7.5%
------------ ------------ ----- -----
Total expenses 988,978 879,952 92.8% 94.2%
------------ ------------ ----- -----
Income before income taxes 77,057 54,558 7.2% 5.8%
Income taxes 29,190 19,994 2.7% 2.1%
------------ ------------ ----- -----
Net income $ 47,867 $ 34,564 4.5% 3.7%
============ ============ ===== =====
Earnings per share
Basic $ 0.44 $ 0.32
Diluted $ 0.44 $ 0.32
Weighted average number of shares outstanding:
Basic 107,920,692 108,206,160
Diluted 108,314,527 108,671,831
Twelve Months As % of
Ended December 31, Total Revenue
--------------------------- ------------------
1998 1997 1998 1997
------------ ------------ ----- -----
Revenue $ 4,238,333 $ 3,891,320 100.0% 100.0%
------------ ------------ ----- -----
Expenses:
Direct operating 1,925,737 1,826,720 45.5% 46.9%
Depreciation of revenue earning equipment 1,078,009 979,560 25.4% 25.2%
Selling, general and administrative 462,921 439,558 10.9% 11.3%
Interest - net 306,274 302,212 7.2% 7.8%
------------ ------------ ----- -----
Total expenses 3,772,941 3,548,050 89.0% 91.2%
------------ ------------ ----- -----
Income before income taxes 465,392 343,270 11.0% 8.8%
Income taxes 188,383 141,652 4.5% 3.6%
------------ ------------ ----- -----
Net income $ 277,009 $ 201,618 6.5% 5.2%
============ ============ ===== =====
Earnings per share
Basic $ 2.56 $ 1.86
Diluted $ 2.55 $ 1.86
Weighted average number of shares outstanding:
Basic 108,067,850 108,227,916
Diluted 108,561,352 108,630,236
BALANCE SHEET DATA
(In Thousands of Dollars)
Unaudited
December 31,
-----------------------
1998 1997
---------- ----------
Revenue earning equipment:
Cars $4,472,508 $4,039,818
Other equipment 1,309,525 852,048
Total assets 8,872,558 7,435,521
Total debt 5,759,783 4,715,668
Stockholders' equity 1,393,823 1,136,197
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