Hertz Reports 4th Quarter Results & 7th Consecutive Year of Record Earnings
The Hertz Corporation
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
SOURCE: The Hertz Corporation
Contact: Richard Broome, Media Relations, 201-307-2486, or Lauren S.
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