<PAGE> 1
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) JANUARY 20, 1999
THE HERTZ CORPORATION
(Exact name of registrant as specified in its 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 5 pages.
The Exhibit Index is on page 3.
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Item 5. Other Events.
On January 20, 1999, The Hertz Corporation issued a press release with
respect to its fourth quarter and full year 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 fourth
quarter and full year 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)
Date: January 21, 1999
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Exhibit Index
Exhibit No. Description Page
(99) Press release relating to The Hertz 4-5
Corporation's fourth quarter and full
year 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 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
<TABLE>
<CAPTION>
Three Months As % of
Ended December 31, Total Revenue
--------------------------- ------------------
1998 1997 1998 1997
------------ ------------ ----- -----
<S> <C> <C> <C> <C>
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
</TABLE>
<TABLE>
<CAPTION>
Twelve Months As % of
Ended December 31, Total Revenue
--------------------------- ------------------
1998 1997 1998 1997
------------ ------------ ----- -----
<S> <C> <C> <C> <C>
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
</TABLE>
BALANCE SHEET DATA
(In Thousands of Dollars)
Unaudited
<TABLE>
<CAPTION>
December 31,
-----------------------
1998 1997
---------- ----------
<S> <C> <C>
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
</TABLE>
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