Hertz Reports Record Second Quarter Earnings of $87.9 Million, Up 17%
13 July 1999
Hertz Reports Record Second Quarter Earnings of $87.9 Million, Up 17%
PARK RIDGE, N.J., July 13 -- The Hertz Corporation
, 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.
THE HERTZ CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(In Thousands of Dollars)
Unaudited
Three Months As % of
Ended June 30, Total Revenue
1999 1998 1999 1998
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
Six Months As % of
Ended June 30, Total Revenue
1999 1998 1999 1998
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
BALANCE SHEET DATA
(in Thousands of Dollars)
Unaudited
June 30,
1999 1998
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
Note: Certain prior year amounts have been reclassified to conform to
current year presentation.