Hertz Reports 4th Quarter Results & 7th Consecutive Year of Record Earnings
16 January 2001
Hertz Reports 4th Quarter Results & 7th Consecutive Year of Record Earnings
PARK RIDGE, N.J., Jan. 16 The Hertz Corporation
reported record Fourth Quarter 2000 revenue of $1.2 billion, up
3.5%, or about $41 million over the same period in 1999, and a 6.8% increase
before the effects of foreign exchange translation. The Company also reported
net income for the quarter of $55.6 million or $0.52 per share, diluted,
compared with $60.3 million or $0.56 per share for the same period in 1999.
For the full year 2000, the Company reported its seventh consecutive year
of record net income, $358 million, a 6.7% increase over 1999, or $3.33 per
share, diluted, up from $3.10 in 1999. Revenue for 2000 of $5.1 billion, a
7.6% increase over 1999, was a record for the ninth consecutive year.
Craig R. Koch, President and Chief Executive Officer, said, "we are
pleased to have achieved another year of record revenues and earnings.
However, a weakening economy, continued price competition and inflation in
certain key cost areas will adversely impact first half and, consequently,
full year 2001 results."
Hertz also announced today, in a separate, joint press release with Ford
Motor Company, that a formal agreement had been reached on Ford's proposal to
acquire all the shares of Hertz stock it doesn't currently own.
This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are based on current expectations, forecasts and
assumptions and involve risks and uncertainties, some of which are outside of
the Company's control, that could cause actual outcomes and results to differ
materially from current expectations. These risks and uncertainties include,
among other things, price and product competition, changes in general economic
conditions in markets and countries where the Company's customers reside and
where the Company and its licensees operate, changes in capital availability
or cost, costs and other terms related to the acquisition and disposition of
automobiles and equipment, and certain regulatory and environmental matters.
These forward-looking statements represent the Company's judgments as of the
date of this release. The Company disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result of new
information, future events or otherwise.
Headquartered in Park Ridge, NJ, Hertz operates from approximately 6,500
locations in the US and over 140 other countries.
Investors and security holders are strongly advised to read the tender
offer statement and recommendation/solicitation statement regarding the tender
offer referred to in this press release when they become available because
they will contain important information. These statements will be filed by
Ford and Hertz with the Securities and Exchange Commission (SEC). Investors
and security holders may obtain a free copy of the statements (when available)
at http://www.sec.gov. The statements and related materials may be obtained
for free by directing such requests to Ford's Shareholder Relations Department
at 1-800-279-1237 or Hertz' Investor Relations Department at 201-307-2337.
THE HERTZ CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(In Thousands of Dollars)
Unaudited
Three Months As % of
Ended December 31, Total Revenue
2000 1999 2000 1999
Revenue $1,211,230 $1,170,514 100.0% 100.0%
Expenses:
Direct operating 582,098 549,178 48.1% 46.9%
Depreciation of revenue
earning equipment 328,732 319,184 27.1% 27.3%
Selling, general and
administrative 109,902 112,274 9.1% 9.6%
Interest - net 107,532 91,148 8.9% 7.8%
Total expenses 1,128,264 1,071,784 93.2% 91.6%
Income before income taxes 82,966 98,730 6.8% 8.4%
Income taxes 27,352 38,429 2.2% 3.2%
Net income $55,614 $60,301 4.6% 5.2%
Earnings per share:
Basic $0.52 $0.56
Diluted $0.52 $0.56
Weighted average number
of shares outstanding:
Basic 107,441,421 107,860,277
Diluted 107,600,423 108,225,547
Year Ended As % of
December 31, Total Revenue
2000 1999 2000 1999
Revenue $5,073,518 $4,715,666 100.0% 100.0%
Expenses:
Direct operating 2,290,594 2,120,688 45.2% 45.0%
Depreciation of revenue
earning equipment 1,336,223 1,240,818 26.3% 26.3%
Selling, general and
administrative 450,970 452,408 8.9% 9.6%
Interest - net 414,867 341,359 8.2% 7.2%
Total expenses 4,492,654 4,155,273 88.6% 88.1%
Income before income taxes 580,864 560,393 11.4% 11.9%
Income taxes 222,456 224,392 4.3% 4.8%
Net income $358,408 $336,001 7.1% 7.1%
Earnings per share
Basic $3.33 $3.11
Diluted $3.33 $3.10
Weighted average number of
shares outstanding:
Basic 107,573,184 107,968,511
Diluted 107,743,281 108,558,038
BALANCE SHEET DATA
(In Thousands of Dollars)
Unaudited
December 31,
2000 1999
Revenue earning equipment:
Cars $5,186,235 $4,762,344
Other equipment 1,736,281 1,501,434
Total assets 10,619,981 10,136,707
Total debt 6,675,988 6,602,220
Stockholders' equity 1,984,069 1,673,991