Hertz 2013 Annual Report Download - page 17

Table of Contents
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Germany, France, Spain, the United Kingdom, Switzerland, Belgium, Netherlands and Luxembourg; and Enterprise (operating the
Enterprise brand) in the United Kingdom, Ireland and Germany. Apart from Enterprise-branded operations, all of which Enterprise owns, the
other major car rental brands are present in European car rental markets through a combination of company-operated and franchisee-
operated locations.
Competition among car rental industry participants is intense and is primarily based on price, vehicle availability and quality, service,
reliability, rental locations and product innovation. We believe, however, that the prominence and service reputation of the Hertz brand, our
extensive worldwide ownership of car rental operations and our commitment to innovation and service provide us with a competitive
advantage. Our acquisition of Dollar and Thrifty brands adds two popular value leisure brands enabling us to compete across multiple market
segments.
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Our worldwide equipment rental segment generated $1,538.0 million in revenues during the year ended December 31, 2013.
Operations
Product Offerings
We, through HERC, operate an equipment rental business in the United States, Canada, France, Spain, China and Saudi Arabia. On the
basis of total revenues, we believe HERC is one of the largest equipment rental companies in the United States and Canada combined.
HERC has operated in the United States since 1965.
HERC's principal business is the rental of equipment. HERC offers a broad range of equipment for rental; major categories include
earthmoving equipment, material handling equipment, aerial and electrical equipment, lighting, air compressors, pumps, generators, small
tools, compaction equipment and construction-related trucks.
Ancillary to its rental business, HERC is also a dealer of certain brands of new equipment in the United States, and sells consumables such
as gloves and hardhats at many of its rental locations globally.
HERC's comprehensive line of equipment enables it to supply equipment to a wide variety of customers from local contractors to large
industrial plants. The fact that many larger companies, particularly those with industrial plant operations, now require single source vendors,
not only for equipment rental, but also for management of their total equipment needs fits well with HERC's core competencies.
Arrangements with such companies may include maintenance of the tools and equipment they own, supplies and rental tools for their labor
force and custom management reports. HERC supports this through its dedicated in-plant operations, tool trailers and plant management
systems.
Locations
As of December 31, 2013, 2012 and 2011, HERC had a total of approximately 335, 340 and 320 branches, respectively, in the U.S.,
Canada, France, Spain, China and Saudi Arabia. HERC's rental locations generally are located in industrial or commercial zones.
HERC's broad equipment line in the United States and Canada also includes, equipment with an acquisition cost of under $10,000 per unit,
ranging from air compressors and generators to small tools and accessories, in order to supply customers who are local contractors with a
greater proportion of their overall equipment rental needs. As of December 31, 2013, these activities, referred to as “general rental activities,”
were conducted at approximately 32% of HERC's U.S. and Canadian rental locations.
Business Initiatives
In early 2010, Hertz launched Hertz Entertainment Services, a division which provides single-source car and equipment rental solutions to
the entertainment and special events industries. Hertz Entertainment Services provides customized vehicle and equipment rental solutions
to movie, film and television productions, live sports and entertainment events, and all-occasion special events, such as conventions, and
fairs. Hertz Entertainment Services are tailored to fit the needs of large and small productions alike with competitive pricing and customized,
monthly billing. Hertz delivers vehicles and equipment to production locations and a dedicated staff is available 24/7 to address specific client
needs. Productions can also rent equipment for use at special events such as lighting, generators and other machinery.
In February 2010, HERC entered into a joint venture with Saudi Arabia based Dayim Holdings Company, Ltd. to set up equipment rental
operations in the Kingdom of Saudi Arabia. The joint venture entity rents and sells equipment and tools to construction and industrial
markets throughout the Kingdom of Saudi Arabia.
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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