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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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) JULY 14, 1998
THE HERTZ CORPORATION
(Exact Name of Registrant as Specified in Charter)
Delaware 1-7541 13-1938568
(State or Other Jurisdiction of (Commission (I.R.S. Employer
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.
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Item 5. Other Events
On July 14, 1998, The Hertz Corporation issued a press release with
respect to its second quarter 1998 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 The Hertz Corporation's second
quarter 1998 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: July 20, 1998
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Exhibit Index
Exhibit No. Description Page
(99) Press release relating to The Hertz 4-5
Corporation's second quarter 1998
earnings
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FOR IMMEDIATE RELEASE CONTACT: FINANCIAL - LAUREN S. BABUS
(201) 307-2100
MEDIA - JOE RUSSO
(201) 307-2486
HERTZ REPORTS RECORD SECOND QUARTER EARNINGS
OF $75.1 MILLION, UP 39.2%
PARK RIDGE, NJ, JULY 14, 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 $75.1 million for the second
quarter of 1998, up 39.2 percent from the $53.9 million reported for the same
period last year. Earnings per share on a diluted basis were 69 cents per share
for second quarter 1998, up from 50 cents in the second quarter of the prior
year.
Net income for the first half of 1998 was $110.5 million, up 50 percent
from $73.6 million earned in the same period 1997.
Hertz also achieved record second quarter revenues of $1.048 billion,
up 7.4 percent or $72 million from the $976 million reported for the same period
1997. Before the impact of changes in foreign exchange rates, the revenue
increase would have been $85 million or 8.8 percent growth over the prior year.
Revenues for the first half were up 5.0% from $1.855 billion in 1997 to
$1.947 billion in 1998. Before the impact of changes in foreign exchange rates,
the increase would have been 6.6 percent or $122 million over the prior year.
Domestic car rental operations reported revenues for the quarter up 6.2
percent to $676.4 million versus $636.9 million in the same quarter last year.
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HERTZ SECOND QUARTER EARNINGS - PAGE 2
International car rental and leasing reported a 1.3 percent increase in
revenues for the second quarter from $227.6 million in 1997 to $230.5 million in
1998. Before the impact of changes in foreign exchange rates and adjusted for
the franchising of previously owned locations, revenue for the quarter would
have been 11.7 percent higher than 1997.
Hertz's worldwide industrial and construction equipment rental
operations generated revenues of $134.3 million for the second quarter, 1998, up
27.9 percent from the $105.0 million in the second quarter last year.
Headquartered in Park Ridge, New Jersey, Hertz operates from over 5,500
locations throughout the U.S. and in approximately 140 foreign countries.
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THE HERTZ CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(In Thousands of Dollars)
Unaudited
<TABLE>
<CAPTION>
Three Months As % of
Ended June 30, Total Revenue
------------------------------- ------------------------
1998 1997 1998 1997
------------ ------------ -------- --------
<S> <C> <C> <C> <C>
Revenue $ 1,048,357 $ 976,316 100.0% 100.0%
------------ ------------ -------- --------
Expenses:
Direct operating 465,314 452,759 44.4% 46.4%
Depreciation of revenue
earning equipment 266,835 245,292 25.5% 25.1%
Selling, general and
administrative 115,533 106,876 11.0% 11.0%
Interest - net 73,384 78,284 7.0% 8.0%
------------ ------------ -------- --------
Total expenses 921,066 883,211 87.9% 90.5%
------------ ------------ -------- --------
Income before income taxes 127,291 93,105 12.1% 9.5%
Income taxes 52,234 39,204 5.0% 4.0%
------------ ------------ -------- --------
Net income $ 75,057 $ 53,901 7.1% 5.5%
============ ============ ======== ========
Earnings per share
Basic $ 0.69 $ 0.50
Diluted $ 0.69 $ 0.50
Weighted average number of shares outstanding:
Basic 108,119,099 108,267,000
Diluted 108,655,488 108,615,520
</TABLE>
BALANCE SHEET DATA
(In Thousands of Dollars)
Unaudited
<TABLE>
<CAPTION>
June 30,
------------------------------
1998 1997
---------- ----------
Revenue earning equipment:
<S> <C> <C>
Cars $5,302,612 $4,988,726
Other equipment 992,198 833,760
Total assets 8,740,742 8,200,147
Total debt 5,699,928 5,535,861
Stockholders' equity 1,226,906 1,032,976
</TABLE>
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