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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): April 10, 1997
THE HERTZ CORPORATION
(Exact name of registrant as specified in its charter)
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DELAWARE 1-7541 13-1938568
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation) Identification No.)
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225 BRAE BOULEVARD 07656-0713
PARK RIDGE, NEW JERSEY (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code (201) 307-2000
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ITEM 5. OTHER EVENTS
On April 10, 1997, The Hertz Corporation issued a press release with respect
to its first 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 First Quarter 1997 Earnings
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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 hereto duly authorized.
THE HERTZ CORPORATION
By: /s/ Leo A. Massad, Jr.
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Leo A. Massad, Jr.
Staff Vice President and Controller
(Principal Accounting Officer)
Date: April 10, 1997
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INDEX TO EXHIBITS
EXHIBIT
NUMBER
99 Press Release Relating to First Quarter 1997 Earnings
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FOR IMMEDIATE RELEASE CONTACT: JOE RUSSO
(201) 307-2486
THE HERTZ CORPORATION EARNS $19.7 MILLION IN FIRST QUARTER;
STRONG PERFORMANCE BY DOMESTIC RENT A CAR A FACTOR
PARK RIDGE, NJ, April 10, 1997 -- The Hertz Corporation, the world's
largest car rental company and the largest domestic industrial and construction
equipment rental business, achieved record earnings of $19.7 million in the
first quarter of 1997, which more than doubled the $8.8 million earned in the
same period last year. This increase was primarily due to higher revenues in
the U.S. car rental operations.
Commenting on the first quarter, Hertz Chairman and Chief Executive Officer
Frank A. Olson said, "We are encouraged especially by the results for our
domestic car rental operation, and we regard favorably the recent changes in
ownership that have helped refocus the industry on the fundamentals of the
business."
Hertz, a wholly-owned subsidiary of Ford Motor Company, achieved record
revenues of $878.4 million in the first quarter of 1997, up $75.3 million from
the same period last year.
Revenues from car rental operations of $758.5 million in the first
quarter of 1997 increased by $67.8 million from the first quarter of 1996.
This increase resulted primarily from an increase in the number of transactions
and revenue per transaction principally in the United States.
Revenues from industrial and construction equipment rental of $90.4 million
in the first quarter of 1997 increased by $13.3 million from the first quarter
of 1996, primarily due to an increase in volume resulting from the opening of
new locations and increased activity in industrial related markets.
Revenues from all other sources of $29.5 million in the first quarter of 1997
decreased by $5.8 million from the first quarter of 1996, primarily due to lower
revenues in claim administration service operations, a large part of which was
sold as of February 29, 1996. This decrease was partly offset by increased
revenues from car leasing operations primarily due to an acquisition made in
June 1996 of a foreign licensee operation.
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In addition to higher revenues in the Company's U.S. car rental
operations, also contributing to the increase in net earnings was a $1.5 million
decrease in depreciation expense, net of tax, for the industrial
and construction equipment rental business for changes made effective January
1, 1997 to the estimated useful lives being used to compute depreciation of
revenue earning equipment. The increase in net earnings was partly offset
by (i) a charge of $0.8 million for the interest expense incurred, net of
taxes, relating to funding a $460 million dividend paid by the Company on
its common stock to Ford in the first quarter of 1997 and other items relating
to the Company's potential initial public offering, (ii) increased costs in
the industrial and construction equipment rental business relating to the
additional depreciation for equipment purchased and other expenses incurred to
service new industrial customers and (iii) losses incurred in a foreign car
rental and leasing operation which was acquired from a licensee in June 1996.
