Hertz Reports Record Fourth Quarter Earnings, Up 26%
19 January 2000
Hertz Reports Record Fourth Quarter Earnings, Up 26%; Full Year '99 Earnings, Up Over 21%, Set Another Record
PARK RIDGE, N.J., Jan. 19 -- The Hertz Corporation
, 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.
THE HERTZ CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(In Thousands of Dollars)
Unaudited
Three Months As % of
Ended December 31, Total Revenue
1999 1998 1999 1998
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
Year Ended As % of
December 31, Total Revenue
1999 1998 1999 1998
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
BALANCE SHEET DATA
(In Thousands of Dollars)
Unaudited
December 31,
1999 1998
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
Note: Certain prior year amounts have been reclassified to conform to
current year presentation.