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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) January 19, 2000
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THE HERTZ CORPORATION
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(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
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (201) 307-2000
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Not Applicable
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(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 19, 2000, The Hertz Corporation issued a press release with
respect to its fourth quarter and full year 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 fourth
quarter and full year 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
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Richard J. Foti
Staff Vice President and Controller
(Principal Accounting Officer)
Date: January 20, 2000
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EXHIBIT INDEX
Exhibit No. Description Page
- - ----------- ------------------------------------------------- -----
(99) Press release relating to The Hertz Corporation's 4 - 5
fourth quarter and full year 1999 earnings.
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FOR IMMEDIATE RELEASE CONTACT: Media - Joe Russo
(201) 307-2486
Financial - Lauren S. Babus
(201) 307-2100
HERTZ REPORTS RECORD FOURTH QUARTER EARNINGS, UP 26%; FULL YEAR `99 EARNINGS, UP
OVER 21%, SET ANOTHER RECORD
PARK RIDGE, NJ, January 19, 2000 -- The Hertz Corporation (NYSE:HRZ), the
world's largest car rental company and a leading industrial and construction
equipment rental business, reported record fourth quarter 1999 earnings of $60.3
million, up 26 percent from the $47.9 million generated for the same period last
year. Earnings per share for the quarter, on a diluted basis, were 56 cents per
share, up from 44 cents for the fourth quarter, 1998.
It was also Hertz' sixth consecutive year of record earnings, with the
company reporting net income of $336 million for the full year 1999, up more
than 21 percent over the $277 million for full year 1998. Earnings per share on
a diluted basis for the full year 1999 were $3.10, up from $2.55 for the
previous year.
Also a record quarter for revenue, Hertz reported fourth quarter 1999
revenue of $1.2 billion, a nearly 10 percent increase over the $1.1 billion
reported for the same period last year.
For the full year 1999, Hertz reported record revenue of $4.7 billion, an
increase of more than 11 percent over the $4.2 billion in revenue generated in
1998.
Craig R. Koch, President and Chief Executive Officer, attributed the record
performance to strong demand, improved car rental pricing and continuing cost
efficiency improvements. Hertz also announced that it will not acquire Axus
International, Inc., a car leasing company, owned by Ford Motor Credit. Instead,
Hertz will license its name and provide management services to Axus under a
five-year contract, covering select international markets. Axus is headquartered
in London with operations in 15 countries in Europe and Asia Pacific.
Headquartered in Park Ridge, NJ, Hertz operates from 6,300 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
------------------------ --------------------
1999 1998 1999 1998
---------- --------- ------ ------
<S> <C> <C> <C> <C>
Revenue $1,170,514 $1,066,035 100.0% 100.0%
---------- ---------- ----- -----
Expenses:
Direct operating 549,178 516,204 46.9% 48.4%
Depreciation of revenue earning equipment 319,184 281,421 27.3% 26.4%
Selling, general and administrative 112,274 112,989 9.6% 10.6%
Interest - net 91,148 78,364 7.8% 7.4%
----------- ---------- ------- -------
Total expenses 1,071,784 988,978 91.6% 92.8%
--------- --------- ------- -------
Income before income taxes 98,730 77,057 8.4% 7.2%
Income taxes 38,429 29,190 3.2% 2.7%
----------- ---------- ------- -------
Net income $ 60,301 $ 47,867 5.2% 4.5%
=========== ========== ======= =======
Earnings per share
Basic $0.56 $0.44
Diluted $0.56 $0.44
Weighted average number of shares outstanding:
Basic 107,860,277 107,920,692
Diluted 108,225,547 108,314,527
</TABLE>
<TABLE>
<CAPTION>
Year Ended As % of
December 31, Total Revenue
---------------------------- ----------------------------
1999 1998 1999 1998
---------- ------------ ------------- --------------
<S> <C> <C> <C> <C>
Revenue $4,715,666 $4,238,333 100.0% 100.0%
---------- ---------- -----
Expenses:
Direct operating 2,120,688 1,948,837 45.0% 46.0%
Depreciation of revenue earning equipment 1,240,818 1,078,009 26.3% 25.4%
Selling, general and administrative 452,408 439,821 9.6% 10.4%
Interest - net 341,359 306,274 7.2% 7.2%
---------- ---------- ------- -------
Total expenses 4,155,273 3,772,941 88.1% 89.0%
---------- --------- ------ ------
Income before income taxes 560,393 465,392 11.9% 11.0%
Income taxes 224,392 188,383 4.8% 4.5%
---------- ---------- ------- -------
Net income $ 336,001 $ 277,009 7.1% 6.5%
========== ========== ======= =======
Earnings per share
Basic $3.11 $2.56
Diluted $3.10 $2.55
Weighted average number of shares outstanding:
Basic 107,968,511 108,067,850
Diluted 108,558,038 108,561,352
</TABLE>
BALANCE SHEET DATA
(In Thousands of Dollars)
Unaudited
<TABLE>
<CAPTION>
December 31,
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1999 1998
---------- ---------
<S> <C> <C>
Revenue earning equipment:
Cars $4,762,344 $4,472,508
Other equipment 1,501,434 1,309,525
Total assets 10,136,707 8,872,558
Total debt 6,602,220 5,759,783
Stockholders' equity 1,673,991 1,393,823
</TABLE>
Note: Certain prior year amounts have been reclassified to conform to current
year presentation.
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