Hertz Reports Record Q2 Earnings
14 July 1998
Hertz Reports Record Second Quarter Earnings of $75.1 Million, Up 39.2%
PARK RIDGE, N.J., July 14 -- The Hertz Corporation
, 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.
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' 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.
THE HERTZ CORPORATION
Consolidated Statement of Income
(In Thousands of Dollars)
Unaudited
Three Months As % of
Ended June 30, Total Revenue
1998 1997 1998 1997
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
THE HERTZ CORPORATION
BALANCE SHEET DATA
(In Thousands of Dollars)
Unaudited
Three Months
Ended June 30,
1998 1997
Revenue earning equipment:
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