Hertz 2014 Annual Report Download - page 22

Table of Contents
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Our worldwide equipment rental segment generated $1,571 million in revenues during the year ended December 31, 2014.
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Through HERC, we operate the Hertz Equipment Rental brand business in the U.S., Canada, France, Spain, China and Saudi Arabia and have a
branch of our entertainment services business in the United Kingdom. We estimate the size of the North American portion of the rental industry
dealing with equipment of the type HERC rents, which is highly fragmented with few national competitors and many regional and local operators,
increased to approximately $38 billion in annual revenues for 2014 from $36 billion in annual revenues for 2013. On the basis of total revenues, we
believe HERC is one of the largest equipment rental companies in the U.S. and Canada combined. Other market data indicates that the equipment
rental industries in China, France and Spain generate approximately $5 billion, $2.5 billion and $1 billion in annual revenues, respectively, although
the portions of those markets in which HERC competes are smaller.
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HERC offers a broad range of equipment for rental including earthmoving, material handling, aerial and electrical equipment, air compressors,
pumps, power generators, small tools, compaction equipment, studio and production equipment, construction-related trucks and other commercial
vehicles.
HERC's comprehensive fleet 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 to manage their total
equipment needs fits well with HERC's core competencies. Arrangements with these large national companies 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.
Ancillary to its rental business, HERC is a retailer of certain brands of new equipment in North America, and sells contractor supplies such as
construction consumables, tools, small equipment and safety supplies at many of its rental locations globally. The type of new equipment that
HERC sells varies by location.
Hertz Entertainment Services, or "HESC" is a division of HERC that provides single-source car and equipment rental solutions to the
entertainment and special events industries by offering customized vehicle and equipment rental solutions for motion picture and television
productions, as well as turn-key solutions for live sports, corporate events and festivals. Specialized equipment available to this industry includes
grip and lighting equipment, quiet power generation, boomlifts, forklifts and platform lifts, all of which can be delivered to production locations.
HESC's services are tailored to fit the needs of large and small productions alike with competitive pricing and customized, monthly billing.
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As of December 31, 2014, HERC had more than 350 branches throughout the U.S., Canada, France, Spain, China and Saudi Arabia. HERC's
rental locations generally are situated in industrial or commercial zones. Additionally, HESC has operations in the United Kingdom.
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Over the last five years, HERC has completed 11 acquisitions to strengthen its position in a variety of specialty rental markets, including the
broader industrial market, the oil and gas submarket of the industrial market and the motion picture and television production industries.
In February 2010, HERC entered into a joint venture with Saudi Arabia based Dayim Holdings Company, Ltd. to establish equipment rental
operations in the Kingdom of Saudi Arabia. The joint venture was extended into Qatar in 2014;
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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