ANC Rental Corporation Reports Meeting Revised Expectations
Business EditorsFORT LAUDERDALE, Fla.--Jan. 31, 2001--ANC Rental Corporation today announced a net loss for the fourth quarter 2000 of $44.0 million or $.98 per diluted share, slightly better than revised expectations, on revenue of $805.1 million. This compares to a net loss of $95.5 million or $2.12 per diluted share on revenue of $835.3 million for 1999. The fourth quarter 1999 results include a non-recurring restructuring charge of $40.5 million. Excluding the effects of the 1999 fourth quarter restructuring charge, the 2000 net loss reflects an improvement of 32.0% over the comparable period in the prior year. The operating loss for the fourth quarter of 2000 was $50.0 million or a 40.0% improvement from the $82.8 operating loss for the fourth quarter of 1999, before restructuring. Fourth quarter results were unfavorably impacted by weaker North American airport revenue per day and higher fleet inventories.
Commenting on ANC Rental Corporation's fourth quarter performance, Chairman and Chief Executive Officer Michael S. Egan said, "We are disappointed with our fourth quarter results. We are operating in a difficult pricing environment in the North American airport markets. In order to improve our future operating performance, we are taking advantage of opportunities to increase revenue per day and we are accelerating our plans to reduce costs."
For the twelve months ended December 31, 2000 the Company announced a net loss of $2.0 million or $.04 per diluted share, on revenue of $3,532.0 million as compared to a net loss of $71.0 million or $1.57 per diluted share on revenue of $3,542.3 million for the comparable period in 1999. Excluding effects of the restructuring charge taken in the fourth quarter of 1999, the 2000 net results reflect an improvement of 95.0%. Operating income before transition costs, for the year 2000 was $60.5 million, a $96.3 million improvement over the $35.8 million operating loss, before restructuring in 1999.
Looking ahead for the first quarter, the Company expects year-over-year improvement in operating income on a flat revenue base. The net loss for the first quarter, however, will be more than the same period last year due to increased interest expense. This is a result of a change in the Company's financing structure at the time of the June 30, 2000 separation from its former parent.
For 2001, the Company remains comfortable with current analysts' estimates of $.42 to $.50 per fully diluted share. Consolidated revenue per day for the full year is expected to be flat to up 1% over 2000 levels and volume is expected to grow 4% to 5%. Given the current competitive pricing environment, revenue per day growth in 2001 is more likely to occur in the second half of the year.
The Company's earnings estimate contemplates the conversion of its current $200 million interim financing into a six-year term loan, pursuant to the terms previously described. In addition, the estimates assume the Company can obtain additional financing needed to meet its peak borrowing requirements in its second and third quarters. The Company is currently evaluating a variety of methods to raise the necessary liquidity from its current portfolio of owned assets. The Company believes these efforts will yield adequate capital to meet its business needs.
ANC Rental Corporation, headquartered in Fort Lauderdale, is one of the world's largest car rental companies with annual revenue of approximately $3.5 billion in 2000. ANC Rental Corporation, the parent company of Alamo and National, has more than 3,000 locations in 69 countries and employs approximately 22,000 associates worldwide.
Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. Additional discussion of factors that could cause the actual results to differ materially from management's projection, forecasts, estimates and expectations is contained in the Company's Registration Statement on Form 10 and other SEC filings.
ANC Rental Corporation
Consolidated Statements of Income (Unaudited)
($ in millions except per share and statistical amounts)
Three Months As % of
Ended December 31, Total Revenue
----------------------- -----------------
2000 1999 2000 1999
----------------------- -----------------
Revenue:
Alamo $ 311.4 $ 316.3 38.7% 37.9%
National 345.2 352.5 42.9 42.2
--------- --------- -------- --------
North America 656.6 668.8 81.6 80.1
Alamo Local Market 67.5 74.5 8.4 8.9
International 81.0 92.0 10.0 11.0
--------- --------- -------- --------
Total Revenue: 805.1 835.3 100.0 100.0
Operating expenses 682.4 701.7 84.8 84.0
--------- --------- -------- --------
Gross margin 122.7 133.6 15.2 16.0
SG & A 170.2 213.9 21.1 25.6
Amortization of
intangibles 2.5 2.5 0.3 0.3
--------- --------- -------- --------
Operating loss before
restructuring costs (50.0) (82.8) (6.2) (9.9)
Restructuring costs - 40.5 - 4.8
--------- --------- -------- --------
Operating loss (50.0) (123.3) (6.2) (14.7)
Interest expense, net (16.8) (3.2) (2.1) (0.4)
Other income / (expense) (0.2) - - -
--------- --------- -------- --------
Net loss before
income taxes (67.0) (126.5) (8.3) (15.1)
Income tax benefit (23.0) (32.6) (2.8) (3.9)
--------- --------- -------- --------
Net loss before
extraordinary charges (44.0) (93.9) (5.5) (11.2)
--------- --------- -------- --------
Extraordinary charges,
net of tax - (1.6) - (0.2)
--------- --------- -------- --------
Net loss $ (44.0) $ (95.5) (5.5)% (11.4)%
========= ========= ======== ========
Loss per share:
Basic and diluted $ (.98) $ (2.12)
Weighted average shares:
Basic and diluted 45.2 45.1
Three months ended December 31,
--------------------------------------------
2000 1999 % Change
--------------------------------------------
Key Operating
Statistics:
Revenue per day $ 34.73 $ 36.09 -3.8%
Revenue per day, net
of foreign exchange
translation 35.20 36.09 -2.6%
Charge days 22.8 22.8 0.4%
Utilization 76.6% 76.4% 0.2%
Other Data:
Vehicle net depreciation,
interest and other $ 336.6 $ 329.4 2.2%
Non-vehicle depreciation
and amortization 32.0 29.4 8.8%
Capital expenditures 10.8 42.4 -74.5%
ANC Rental Corporation
Consolidated Statements of Income (Unaudited)
($ in millions except per share and statistical amounts)
Twelve Months As % of
Ended December 31, Total Revenue
---------------------- -----------------
2000 1999 2000 1999
---------------------- -----------------
Revenue:
Alamo $ 1,416.1 $ 1,383.3 40.1% 39.1%
National 1,492.3 1,505.9 42.2 42.5
----------- ----------- -------- --------
North America 2,908.4 2,889.2 82.3 81.6
Alamo Local Market 274.6 282.7 7.8 8.0
International 349.0 370.4 9.9 10.4
----------- ----------- -------- --------
Total Revenue 3,532.0 3,542.3 100.0 100.0
Operating expenses 2,755.5 2,775.4 78.0 78.3
----------- ----------- -------- --------
Gross margin 776.5 766.9 22.0 21.7
SG & A 706.0 792.8 20.0 22.4
Amortization of
intangibles 10.0 9.9 0.3 0.3
----------- ----------- -------- --------
Operating income
before non-recurring
transition/restructuring
costs 60.5 (35.8) 1.7 (1.0)
Non-recurring
transition/restructuring
costs 17.7 40.5 0.5 1.1
----------- ----------- -------- --------
Operating income/
(loss) 42.8 (76.3) 1.2 (2.1)
Interest expense, net (37.7) (13.0) (1.1) (0.4)
Other income / (expense) (3.3) 1.1 (0.1) 0.0
----------- ----------- -------- --------
Net Income / (loss)
before taxes 1.8 (88.2) - (2.5)
Income tax provision /
(benefit) 3.8 (18.8) 0.1 (0.5)
----------- ----------- -------- --------
Net loss before
extraordinary
charges (2.0) (69.4) (0.1) (2.0)
----------- ----------- -------- --------
Extraordinary charges,
net of tax - (1.6) - -
----------- ----------- -------- --------
Net loss $ (2.0) $ (71.0) (0.1)% (2.0)%
=========== =========== ======== ========
Loss per share:
Basic $ (0.04) $ (1.57)
Diluted $ (0.04) $ (1.57)
Weighted average shares:
Basic 45.1 45.1
Diluted 45.4 45.1
Twelve months ended December 31,
-----------------------------------------
2000 1999 % Change
-----------------------------------------
Other Data:
Vehicle net
depreciation, interest
and other $ 1,346.5 $ 1,345.3 0.1%
Non-vehicle depreciation
and amortization 112.8 91.0 24.0%
Capital Expenditures 79.4 192.7 -58.8%
Balance Sheet Data:
Cash $ 21.4 $ 17.4
Restricted cash 321.9 155.3
Vehicles, net 4,451.4 4,501.3
Vehicle debt 4,228.9 4,531.6
Other debt 276.7 107.4
Shareholders' equity 892.6 726.6
ANC Rental Corporation
Divisional Information - Supplemental Data (Unaudited)
For the three months ended December 31,
-------------------------------------------
2000 1999 % Change
-------------------------------------------
NORTH AMERICA:
Revenue
Alamo $ 311.4 $ 316.3 -1.5%
National 345.2 352.5 -2.1%
--------- --------- ---------
Total Revenue(1) $ 656.6 $ 668.8 -1.8%
Key Operating Statistics-
North America
Alamo revenue per day $ 34.79 $ 36.12 -3.7%
National revenue per day 37.37 39.44 -5.2%
--------- --------- ---------
Total North American
revenue per day $ 36.09 $ 37.77 -4.4%
Alamo charge days (1) 8.9 8.8 2.2%
National charge days (1) 9.0 8.6 4.0%
--------- --------- ---------
Total North American
charge days (1) 17.9 17.4 3.1%
North American
utilization 77.2% 76.8% 0.4%
ALAMO LOCAL MARKET 2000 1999 % Change
----------------------------------------
Revenue (1) $ 67.5 $ 74.5 -9.4%
Key Operating
Statistics-Alamo
Local Market:
Revenue per day $ 26.54 $ 24.98 6.2%
Charge days (1) 2.5 3.0 -14.7%
Utilization 76.5% 79.8% -3.3%
INTERNATIONAL 2000 1999 % Change
----------------------------------------
Revenue (1) $ 81.0 $ 92.0 -12.0%
Key Operating
Statistics-International:
Revenue per day $ 33.30 $ 37.73 -11.7%
Revenue per day, net
of foreign exchange
translation $ 37.76 $ 37.73 0.1%
Charge days (1) 2.4 2.4 -1.2%
Utilization 72.9% 69.5% 3.4%
Notes:
(1) amounts reflected in millions