Hertz 2013 Annual Report Download - page 6

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Our Company
Hertz operates its car rental business through the Hertz, Dollar, Thrifty and Firefly brands from approximately 11,555 corporate and franchisee
locations in North America, Europe, Latin and South America, Asia, Australia, Africa, the Middle East and New Zealand. Hertz is the largest
worldwide airport general use car rental brand, operating from approximately 10,090 corporate and franchisee locations in approximately 145
countries. Our Dollar and Thrifty brands have approximately 1,400 corporate and franchisee locations in approximately 75 countries and our
Firefly brand has approximately 65 corporate and franchisee locations in seven countries. Our Hertz brand name is one of the most
recognized in the world, signifying leadership in quality rental services and products. We are one of the only car rental companies that has an
extensive network of company-operated rental locations both in the United States and in all major European markets. We believe that we
maintain the leading airport car rental brand market share, by overall reported revenues, in the United States and at approximately 130 major
airports in Europe where we have company-operated locations and where data regarding car rental concessionaire activity is available. We
believe that we also maintain the second largest market share, by overall reported revenues, in the off-airport car rental market in the United
States. In our equipment rental business segment, we rent equipment through approximately 335 branches in the United States, Canada,
France, Spain, China and Saudi Arabia, as well as through our international franchisees. We and our predecessors have been in the car
rental business since 1918 and in the equipment rental business since 1965. We also own Donlen Corporation, or "Donlen," based in
Northbrook, Illinois, which is a leader in providing fleet leasing and management services. We have a diversified revenue base and a highly
variable cost structure and are able to dynamically manage fleet capacity, the most significant determinant of our costs. Our revenues have
grown at a compound annual growth rate of 6.9% over the last 20 years, with year-over-year growth in 17 of those 20 years.
Corporate History
Hertz Holdings was incorporated in Delaware in 2005 to serve as the top-level holding company for the consolidated Hertz business. Hertz
was incorporated in Delaware in 1967. Hertz is a successor to corporations that have been engaged in the car and truck rental and leasing
business since 1918 and the equipment rental business since 1965. Ford Motor Company acquired an ownership interest in Hertz in 1987.
Prior to this, Hertz was a subsidiary of United Continental Holdings, Inc. (formerly Allegis Corporation), which acquired Hertz's outstanding
capital stock from RCA Corporation in 1985.
On December 21, 2005, investment funds associated with or designated by:
•Clayton, Dubilier & Rice, Inc., which was succeeded by Clayton, Dubilier & Rice, LLC, or “CD&R,”
•The Carlyle Group, or “Carlyle,” and
•Merrill Lynch & Co., Inc., or "Merrill Lynch,"
or collectively the “Sponsors,” acquired all of Hertz's common stock from Ford Holdings LLC. We refer to the acquisition of all of Hertz's
common stock by the Sponsors as the “Acquisition.”
On September 1, 2011, Hertz completed the acquisition of Donlen Corporation, or "Donlen," a leading provider of fleet leasing and
management services. See Note 4 to the Notes to our audited annual consolidated financial statements included in this Annual Report under
the caption "Item 8—Financial Statements and Supplementary Data."
In December 2011, Hertz purchased the noncontrolling interest of Navigation Solutions, L.L.C., thereby increasing its ownership interest
from 65% to 100%.
On November 19, 2012, Hertz completed the acquisition of Dollar Thrifty, a car rental business. See Note 4 to the Notes to our audited
annual consolidated financial statements included in this Annual Report under the caption "Item 8—Financial Statements and
Supplementary Data."
On December 12, 2012, Hertz completed the sale of Simply Wheelz LLC, a wholly-owned subsidiary of Hertz that operated our Advantage
Rent A Car business. See Note 4 to the Notes to our audited annual consolidated financial statements included in this Annual Report under
the caption "Item 8—Financial Statements and Supplementary Data."
In December 2012, the Sponsors sold 50,000,000 shares of their Hertz Holdings common stock to J.P. Morgan as the sole underwriter in the
registered public offering of those shares.
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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