Profile: Hertz Global Holdings Inc (HTZ)
24 May 2013
Hertz Global Holdings, Inc. (Hertz Holdings), incorporated on July 15, 2005, is a holding company. The Hertz Corporation (Hertz) is its operating company and a direct wholly owned subsidiary of Hertz Investors, Inc., which is wholly owned by Hertz Holdings. The Company owns airport general use car rental brand. Its Dollar and Thrifty brands have approximately 1,410 corporate and franchisee locations in 83 countries. Its business operates in two segments: rental and leasing of cars, crossovers and light trucks (car rental), and rental of industrial, construction and material handling equipment (equipment rental). In its equipment rental business segment, it rents equipment through approximately 340 branches in the United States, Canada, France, Spain, Italy, China and Saudi Arabia, as well as through its international licensees. In September 2012, it acquired Pioneer Equipment Rental and Sales, through Hertz Equipment Rental Corporation. On November 19, 2012, the Company acquired Dollar Thrifty Automotive Group, Inc.
In January 2012, the Company acquired DW Pumps. In January 2012, the Company acquired the remaining 35% stake in Navigation Solutions, from Thales Navigation. In March 2012, the Company announced that Hertz Equipment Rental Corporation (HERC) acquired Arpielle Equipment Co., Inc.
The Company’s licensees and associates also operate rental locations in approximately 145 countries and jurisdictions, including countries, in which it has Company-operated rental locations. Hertz Equipment Rental Corporation (HERC) is an equipment rental companies in the United States and Canada combined. HERC rents a range of earthmoving equipment, material handling equipment, aerial and electrical equipment, air compressors, generators, pumps, small tools, compaction equipment and construction-related trucks. HERC also derives revenues from the sale of new equipment and consumables, as well as through its Hertz Entertainment Services division which rents lighting and related aerial products used primarily in the United States entertainment industry.
Worldwide Car Rental
The Company rents a range of makes and models of cars. It accepts reservations only for a class of vehicles, although it accepts reservations for specific makes and models of vehicles in its Prestige Collection national-scale luxury rental program, its Adrenaline Collection sports car rentals, its Green Traveler Collection environmentally friendly rental program and a range of models in leisure-oriented destinations. It rents cars on an hourly (in select markets), daily, weekend, weekly, monthly or multi-month basis, with rental charges computed on a limited or unlimited mileage rate, or on a time rate plus a mileage charge. Its rates vary at different locations depending on local market conditions and other competitive and cost factors. It also allows one-way rentals from and to certain locations. In addition to car rentals and licensee fees, it generates revenues from reimbursements by customers of airport concession fees and vehicle licensing costs, fueling charges, and charges for ancillary customer products and services, such as supplemental equipment (child seats and ski racks), loss or collision damage waiver, theft protection, liability and personal accident/effects insurance coverage, Hertz NeverLost navigation systems and satellite radio services.
The Company’s international car rental operations have Company-operated locations in France, Australia, Italy, the United Kingdom, Germany, Spain, Canada, Brazil, The Netherlands, Switzerland, New Zealand, Belgium, Puerto Rico, the Czech Republic, China, Luxembourg, the Slovak Republic and the United States Virgin Islands. As of December 31, 2012, the Company had approximately 3,210 staffed rental locations in the United States, of which approximately one-fifth were airport locations and four-fifths were off-airport locations, and the Company regularly rent cars from approximately 1,360 other locations that are not staffed. As of December 31, 2012, the Company had approximately 1,215 staffed rental locations internationally, of which approximately one-fourth were airport locations and three-fourths were off-airport locations, and the Company regularly rent cars from approximately 150 other locations that are not staffed. At its airport rental locations, as well as at smaller airport and off-airport locations, customers participating in its Hertz #1 Club Gold program are able to rent vehicles in an expedited manner. During the year ended December 31, 2012, rentals by Hertz #1 Club Gold members accounted for approximately 37% of its global rental transactions. Hertz Gold Choice offers its customers an option to choose the car they drive.
The Company operates off-airport locations offering car rental services to a range of customers. Its off-airport rental customers include people wishing to rent cars closer to home for business or leisure purposes, as well as those needing to travel to or from airports. Its off-airport customers also include people who have been referred by, or whose rental costs are being wholly or partially reimbursed by, insurance companies following accidents, in which their cars were damaged, those expecting to lease cars, which are not available from their leasing companies and those needing cars while their vehicle is being repaired or is temporarily unavailable for other reasons; it calls these customers replacement renters.
Customers who rent from the Company for business purposes include those who require cars in connection with commercial activities, the activities of governments and other organizations or for temporary vehicle replacement purposes. Customers who rent from it for leisure purposes include not only individual travelers booking vacation travel rentals with it but also people renting to meet other personal needs.
When customers reserve cars for rental from the Company and its licensees, they seek to do so through travel agents or third-party travel Websites. In countries, including the United States and all other countries with Company-operated locations, customers may also reserve cars for rental from it and its licensees globally through local, national or toll-free telephone calls to its reservations center, directly through its rental locations or, in the case of replacement rentals, through automated systems serving the insurance industry. In addition, it accepts reservations for rentals from it and its licensees globally through its Websites. During the year ended December 31, 2012, it operated a peak rental fleet in the United States of approximately 490700 cars and a combined peak rental fleet in its international operations of approximately 177,900 cars, and in each case exclusive of its licensees' fleet and Donlen's leasing fleet. During 2012, its approximate average holding period for a rental car was eight months in the United States and 14 months in its international operations.
The Company competes with Avis Budget Group, Inc. (ABG), Enterprise Rent-A-Car Company (Enterprise), Dollar Thrifty Automotive Group, Inc. (Dollar Thrifty), Europcar and Sixt AG.
Worldwide Equipment Rental
The Company, through HERC, operates an equipment rental business in the United States, Canada, France, Spain, Italy, the People’s Republic of China and Saudi Arabia. HERC's business is the rental of equipment. HERC offers a range of equipment for rental, which include earthmoving equipment, material handling equipment, aerial and electrical equipment, air compressors, pumps, generators, small tools, compaction equipment and construction-related trucks. Ancillary to its rental business, HERC is also a dealer of brands of new equipment in the United States and Canada, and sells consumables, such as gloves and hardhats at its rental locations. HERC's line of equipment enables it to supply equipment to a range of customers from local contractors to industrial plants. The Company’s arrangements with 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 in-plant operations, tool trailers and plant management systems.
HERC's rental locations are situated in industrial or commercial zones. The typical location includes a customer service center, an equipment service area and storage facilities for equipment. HERC's equipment line in the United States and Canada includes equipment ranging from air compressors and generators to small tools and accessories, in order to supply customers who are local contractors. As of December 31, 2012, these activities, referred to as general rental activities, were conducted at approximately 28% of HERC's the United States and Canadian rental locations.
The Company’s Hertz Entertainment Services 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 weddings, conventions, and fairs. Hertz delivers vehicles and equipment to production locations. Productions can also rent equipment for use at special events, such as lighting, generators and other machinery. HERC's customers consist of commercial accounts and represent a range of industries, such as construction, petrochemical, automobile manufacturing, railroad, power generation, shipbuilding and entertainment and special events.
HERC acquires its equipment from a variety of manufacturers. HERC disposes of its used equipment through a range of channels, including private sales to customers and other third parties, sales to wholesalers, brokered sales and auctions. HERC licenses the Hertz name to equipment rental businesses in six countries in Europe, in Afghanistan and Chile.
The Company competes with United Rentals, Inc., Sunbelt Rentals, Aggreko North America, Caterpillar, Inc., Loxam, Kiloutou, Laho, Zicheng Corporation, Aggreko, Jin He Yuan, Lei Shing Hong, Far East Rental, Bin Quraya, Al Zahid Tractors, Rapid Access, Eastern Arabia and Rental Solutions & Services (RSS) Saudi Ltd.
Hertz Global Holdings Inc
225 Brae Boulevard
PARK RIDGE NJ 07656-0713