<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) JULY 13, 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.
<PAGE> 2
ITEM 5. OTHER EVENTS.
On July 13, 1999, The Hertz Corporation issued a press release with
respect to its second quarter 1999 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 1999 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: July 16, 1999
2
<PAGE> 3
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Description Page
- - ----------- ----------- ----
<S> <C> <C>
(99) Press release relating to The Hertz Corporation's 4
second quarter 1999 earnings.
</TABLE>
3
<PAGE> 1
FOR IMMEDIATE RELEASE CONTACT: FINANCIAL - LAUREN S. BABUS
(201) 307-2100
MEDIA - JOE RUSSO
(201) 307-2486
HERTZ REPORTS RECORD SECOND QUARTER EARNINGS
OF $87.9 MILLION, UP 17%
PARK RIDGE, NJ, JULY 13, 1999 -- The Hertz Corporation (NYSE:HRZ), the world's
largest car rental company and a leading industrial and construction equipment
rental business, reported record second quarter, 1999, earnings of $87.9
million, up 17 percent from the $75.1 million generated for the same period last
year. Earnings per share on a diluted basis for the quarter were 81 cents, up
from 69 cents for the second quarter, 1998.
Net income for the first half of 1999 was $136.7 million, an increase
of nearly 24 percent over the $110.5 million reported for the first half of
1998.
Hertz achieved record revenues for the quarter of $1.167 billion, up
more than 11 percent from $1.048 billion for the same period last year.
Revenues for the first half were up 13 percent from $1.947 billion in
1998 to $2.200 billion in 1999.
"We continue our optimism that we will record our sixth consecutive
year of record earnings and our eighth consecutive year of earnings
improvement," said Frank A. Olson, Chairman and Chief Executive Officer of
Hertz.
Headquartered in Park Ridge, NJ, Hertz operates from 6,100 locations in
the U.S. and over 140 foreign countries.
4
<PAGE> 2
THE HERTZ CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(In Thousands of Dollars)
Unaudited
<TABLE>
<CAPTION>
Three Months As % of
Ended June 30, Total Revenue
------------------------------- --------------------
1999 1998 1999 1998
------------ ------------ ------ ------
<S> <C> <C> <C> <C>
Revenue $ 1,167,389 $ 1,048,357 100.0% 100.0%
------------ ------------ ------ ------
Expenses:
Direct operating 518,246 470,914 44.4% 44.9%
Depreciation of revenue earning equipment 308,136 266,835 26.4% 25.5%
Selling, general and administrative 114,731 109,933 9.8% 10.5%
Interest - net 79,347 73,384 6.8% 7.0%
------------ ------------ ------ ------
Total expenses 1,020,460 921,066 87.4% 87.9%
------------ ------------ ------ ------
Income before income taxes 146,929 127,291 12.6% 12.1%
Income taxes 59,026 52,234 5.1% 5.0%
------------ ------------ ------ ------
Net income $ 87,903 $ 75,057 7.5% 7.1%
============ ============ ====== ======
Earnings per share
Basic $ 0.81 $ 0.69
Diluted $ 0.81 $ 0.69
Weighted average number of shares outstanding:
Basic 108,089,721 108,119,099
Diluted 109,054,545 108,655,488
</TABLE>
<TABLE>
<CAPTION>
Six Months As % of
Ended June 30, Total Revenue
------------------------------- --------------------
1999 1998 1999 1998
------------ ------------ ------ ------
<S> <C> <C> <C> <C>
Revenue $ 2,200,344 $ 1,947,153 100.0% 100.0%
------------ ------------ ------ ------
Expenses:
Direct operating 1,006,534 912,215 45.7% 46.8%
Depreciation of revenue earning equipment 584,861 492,135 26.6% 25.3%
Selling, general and administrative 223,484 212,770 10.2% 10.9%
Interest - net 156,497 142,016 7.1% 7.3%
------------ ------------ ------ ------
Total expenses 1,971,376 1,759,136 89.6% 90.3%
------------ ------------ ------ ------
Income before income taxes 228,968 188,017 10.4% 9.7%
Income taxes 92,304 77,553 4.2% 4.0%
------------ ------------ ------ ------
Net income $ 136,664 $ 110,464 6.2% 5.7%
============ ============ ====== ======
Earnings per share
Basic $ 1.27 $ 1.02
Diluted $ 1.26 $ 1.02
Weighted average number of shares outstanding:
Basic 107,987,221 108,144,808
Diluted 108,731,620 108,667,464
</TABLE>
BALANCE SHEET DATA
(In Thousands of Dollars)
Unaudited
<TABLE>
<CAPTION>
June 30,
---------------------------------
1999 1998
----------- -----------
<S> <C> <C>
Revenue earning equipment:
Cars $ 5,567,731 $ 5,302,612
Other equipment 1,527,938 992,198
Total assets 10,123,285 8,740,742
Total debt 6,700,837 5,699,928
Stockholders' equity 1,502,781 1,226,906
</TABLE>
Note: Certain prior year amounts have been reclassified to conform to current
year presentation.
5
