Hertz Corporation won the Digital Screenmedia Association's Industry
Excellence Award for “Best Travel Deployment” for their ExpressRent
virtual agent kiosks, designed and deployed with the help of NCR. Hertz
ExpressRent kiosks combine the flexibility and speed of self-service
with the option of a personal touch by enabling live video chat with a
Hertz agent who walks customers through the entire transaction. The car
rental kiosks accept debit and credit card payments, validate drivers'
licenses and print out the car rental agreement. The kiosks speed up the
car rental process and optimize staffing during peak times. It also
allows Hertz to expand its reach to non-traditional locations where
people may want to rent a car, like auto body shops or car dealerships,
but which do not generate the volume to support a full-service location.
In the Telecom and Technology segment, NCR and North American
Communications Resource, a leading communications system integrator and
service provider, entered into a master services agreement to provide
complementary support, maintenance and managed services when
implementing unified communications solutions throughout North America.
This agreement enables both companies to expand their respective
portfolios of services offerings, drive growth and deliver exceptional
Second Quarter 2013 Financial Highlights
Income from operations was $139 million in the second quarter of 2013,
which included $9 million of pension expense, $17 million of
acquisition-related amortization of intangibles, $14 million of
acquisition-related costs, and $3 million of acquisition-related
purchase price adjustments. This compares to $130 million of income from
operations in the second quarter of 2012, which included $10 million of
pension expense, $10 million of acquisition-related amortization of
intangible assets, and $4 million of acquisition-related costs.
Excluding these items, non-GAAP income from operations(2) was
$182 million in the second quarter of 2013 compared to $154 million in
the second quarter of 2012.
Net cash used in operating activities was $32 million during the second
quarter of 2013 compared to net cash provided by operating activities of
$31 million in the year-ago period. Capital expenditures of $44 million
in the second quarter of 2013 increased from $37 million in the second
quarter of 2012. Free cash flow (net cash from operations and
discontinued operations, less capital expenditures for property, plant
and equipment, and additions to capitalized software)(3) was
a cash outflow of $101 million in the second quarter of 2013, compared
to a cash outflow of $41 million in the second quarter of 2012. Both net
cash used in operating activities and free cash used in the second
quarter of 2013 were negatively impacted by an $80 million settlement of
the U.S. non-qualified pension plans. Excluding the settlement, free
cash used was $21 million in the second quarter of 2013 compared to free
cash used of $41 million in the second quarter of 2012. The decrease in
free cash used, excluding the pension plan settlement, was positively
impacted by an improvement in operating results period over period.