Hertz CEO Frank A. Olson Announces Year-End Retirement
12 October 1999
Hertz CEO Frank A. Olson Announces Year-End Retirement; \F HERTZ CORPORATION FRANK A. OLSON HERTZ CORPORATION FRANK A. OLSON Frank A. Olson, Chairman of the Board and Chief Executive Officer, The Hertz Corporation. (PRNewsFoto)[DM] PARK RIDGE, NJ USA 10/12/1999 HERTZ CORPORATION CRAIG R. KOCH Craig R. Koch, President and Chief Operating Officer, The Hertz Corporation. (PRNewsFoto)[DM] PARK RIDGE, NJ USA 10/12/1999
COO Craig R. Koch To Succeed.
Company Reports Record Third Quarter Earnings of $139 Million, Up 17%.
PARK RIDGE, N.J., Oct. 12 -- Frank A. Olson, Chairman and
Chief Executive Officer of The Hertz Corporation , the world's
largest car rental company and a leading industrial and construction equipment
rental business, announced he will retire as Chief Executive, effective
December 31, 1999. Olson has held the position for the past 23 years.
(Photo: http://www.newscom.com/cgi-bin/prnh/19991012/NYTU020-a
http://www.newscom.com/cgi-bin/prnh/19991012/NYTU020-b )
28-Year Hertz Veteran Koch Will Succeed Olson on January 1, 2000
Succeeding Olson as Chief Executive will be Craig R. Koch, 52, currently
President and Chief Operating Officer.
Olson will continue with Hertz as non-executive Chairman of the Board.
With Hertz more than 35 years, Olson also held senior positions with two of
its former parent companies while maintaining his role at Hertz. From 1980 to
1985, he was a Group Executive Vice President with RCA Corporation, and in
1987, he was Chairman and Chief Executive Officer of Allegis Corporation, and
President and Chief Executive of its United Airlines unit.
Koch, who joined Hertz in the U.S. in 1971, has held a variety of
management positions with the company. In 1977, he became Vice President,
Operations for Hertz Europe, Ltd., based in London. In 1980, he returned to
the U.S. to become Vice President and General Manager of the Rent A Car
Division. In 1983, he was elected Executive Vice President and, in 1988,
President of the North American Rent A Car Division. He was elected President
and Chief Operating Officer in 1993.
Koch holds a Bachelor of Science in Finance and a MBA from Lehigh
University in Pennsylvania.
"Hertz is fortunate to have an executive with Craig's depth of experience
and the management acumen to maintain Hertz' market leadership and guide its
continued profitable growth," said Olson.
Koch remarked, "I am confident the Hertz brand has significant growth
opportunities in the future. Along with the most experienced management team
in our various businesses, I look forward to the challenge of globally
developing those opportunities.
"All of us at Hertz and scores of others in the business and civic
communities express our gratitude for Frank's personal dedication and
contribution to our company and to the industry. We are pleased that Frank
has agreed to continue to contribute."
Record Results for the Quarter
At the same time, Hertz reported record third quarter, 1999, earnings of
$139.0 million, up 17.1 percent from the $118.7 million generated for the same
period last year. Earnings per share on a diluted basis for the quarter were
$1.28, up from $1.09 for the third quarter, 1998.
Net income for the first nine months of 1999 was $275.7 million, an
increase of 20.3 percent over the $229.1 million reported for the first nine
months of 1998.
Hertz achieved record revenues for the quarter of $1.345 billion, up 9.8
percent from $1.225 billion for the same period last year.
Revenues for the first nine months were up 11.8 percent from $3.172
billion in 1998 to $3.545 billion in 1999.
Headquartered in Park Ridge, NJ, Hertz operates from 6,300 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 September 30, Total Revenue
1999 1998 1999 1998
Revenue $1,344,808 $1,225,145 100.0% 100.0%
Expenses:
Direct operating 564,976 520,418 42.0% 42.5%
Depreciation of revenue
earning equipment 336,773 304,453 25.0% 24.8%
Selling, general and
administrative 116,650 114,062 8.7% 9.3%
Interest - net 93,714 85,894 7.0% 7.0%
Total expenses 1,112,113 1,024,827 82.7% 83.6%
Income before income taxes 232,695 200,318 17.3% 16.4%
Income taxes 93,659 81,640 7.0% 6.7%
Net income $139,036 $118,678 10.3% 9.7%
Earnings per share
Basic $1.29 $1.10 -- --
Diluted $1.28 $1.09 -- --
Weighted average number
of shares outstanding:
Basic 108,032,375 108,070,628 -- --
Diluted 109,551,164 108,557,209 -- --
Nine Months As % of
Ended September 30, Total Revenue
1999 1998 1999 1998
Revenue $3,545,152 $3,172,298 100.0% 100.0%
Expenses:
Direct operating 1,571,510 1,432,633 44.3% 45.2%
Depreciation of revenue
earning equipment 921,634 796,588 26.0% 25.1%
Selling, general and
administrative 340,134 326,832 9.6% 10.3%
Interest - net 250,211 227,910 7.1% 7.2%
Total expenses 3,083,489 2,783,963 87.0% 87.8%
Income before income taxes 461,663 388,335 13.0% 12.2%
Income taxes 185,963 159,193 5.2% 5.0%
Net income $275,700 $229,412 7.8% 7.2%
Earnings per share
Basic $2.55 $2.12 -- --
Diluted $2.54 $2.11 -- --
Weighted average number
of shares outstanding:
Basic 108,005,161 108,119,193 -- --
Diluted 108,685,605 108,597,258 -- --
BALANCE SHEET DATA
(In Thousands of Dollars)
Unaudited
September 30,
1999 1998
Revenue earning equipment:
Cars $5,344,510 $4,809,553
Other equipment 1,572,890 1,307,052
Total assets 10,159,373 8,950,650
Total debt 6,566,201 5,820,956
Stockholders' equity 1,636,705 1,352,646
Note: Certain prior year amounts have been reclassified to conform to
current year presentation.