Hertz Reports Record Q2 Earnings of $103.7 Million, Up 18%
14 July 2000
PARK RIDGE, N.J. - The Hertz Corporation, the world's largest car rental
company and a leading industrial and construction equipment rental business,
reported record second quarter, 2000, earnings of $103.7 million, up 18% from
the $87.9 million generated for the same period last year. Earnings per share
on a diluted basis for the quarter were 96 cents, compared to 81 cents for the
second quarter, 1999. Hertz' second quarter net income includes a $5.4 million
net gain relating to the disposal of real property.
Hertz achieved record revenues for the quarter of $1.289 billion, an
increase of 10.4% from $1.167 billion last year.
The increase for the second quarter of 2000 reflected continued pricing
pressure in Hertz' equipment rental unit and a strong volume performance in
the worldwide car rental market. However, price increases are required to
offset increasing inflation relating to vehicles, wages and interest rates.
Effective immediately, nationwide, Hertz has raised non-contract daily and
weekend rates by $3 per day. For weekly rentals, those with advance
reservations of 21 days or more have been raised $10 per week and those of
less than 21 days advance reservations were raised $20 per week. The rate
increases apply to compact through full-size class vehicles nationwide.
Hertz President and Chief Executive Officer, Craig R. Koch stated, "We are
on track to produce our seventh consecutive year of record earnings."
Headquartered in Park Ridge, NJ, Hertz operates from approximately 6,500
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
2000 1999 2000 1999
Revenue $1,289,327 $1,167,389 100.0% 100.0%
Expenses:
Direct operating 569,495 518,246 44.2% 44.4%
Depreciation of
revenue earning
equipment 336,068 308,136 26.0% 26.4%
Selling, general
and administrative 115,730 114,731 9.0% 9.8%
Interest - net 99,014 79,347 7.7% 6.8%
Total expenses 1,120,307 1,020,460 86.9% 87.4%
Income before
income taxes 169,020 146,929 13.1% 12.6%
Income taxes 65,289 59,026 5.1% 5.1%
Net income $103,731 $87,903 8.0% 7.5%
Earnings per share:
Basic $0.96 $0.81
Diluted $0.96 $0.81
Weighted average
number of shares
outstanding:
Basic 107,574,249 108,089,721
Diluted 107,724,814 109,054,545
Six Months As % of
Ended June 30, Total Revenue
2000 1999 2000 1999
Revenue $2,424,532 $2,200,344 100.0% 100.0%
Expenses:
Direct operating 1,108,496 1,006,534 45.7% 45.7%
Depreciation of
revenue earning
equipment 640,098 584,861 26.4% 26.6%
Selling, general
and administrative 225,343 223,484 9.3% 10.2%
Interest - net 188,289 156,497 7.8% 7.1%
Total expenses 2,162,226 1,971,376 89.2% 89.6%
Income before
income taxes 262,306 228,968 10.8% 10.4%
Income taxes 102,275 92,304 4.2% 4.2%
Net income $160,031 $136,664 6.6% 6.2%
Earnings per share
Basic $1.49 $1.27
Diluted $1.48 $1.26
Weighted average
number of shares
outstanding:
Basic 107,711,182 107,987,221
Diluted 107,913,346 108,731,620
BALANCE SHEET DATA
(In Thousands of Dollars)
Unaudited
June 30,
2000 1999
Revenue earning equipment:
Cars $6,372,583 $5,567,731
Other equipment 1,721,880 1,527,938
Total assets 11,450,770 10,123,285
Total debt 7,616,626 6,700,837
Stockholders' equity 1,790,609 1,502,781