Avis Rent A Car, Inc. Reports Q1 1998 Operating Results
22 April 1998
Avis Rent A Car, Inc. Reports First Quarter 1998 Operating Results; Earnings per share up 64.3%
GARDEN CITY, N.Y., April 22 -- Avis Rent A Car, Inc.
, the second largest general use car rental business in the world,
reported results for the quarter ended March 31, 1998.
On a historical basis, revenue for the quarter ended March 31, 1998 was
$511.4 million, up 12.1 percent over the comparable period in 1997. Net
income and diluted earnings per share were $7.4 million and 23 cents,
respectively, representing increases of 76.2 percent and 64.3 percent from net
income and diluted earnings per share of $4.2 million and 14 cents,
respectively, for the comparable period in 1997.
On a pro forma basis, revenue for the quarter ended March 31, 1998 was up
1.0 percent over the comparable period in 1997. Net income and diluted
earnings per share increased 30.4 percent and 27.8 percent, respectively, from
net income and diluted earnings per share of $5.7 million and 18 cents,
respectively, for the comparable period in 1997.
The aforementioned results are presented on a pro forma basis to give
effect to the following transactions as if they had occurred on January 1,
1997: the acquisition of The First Gray Line Corporation and the repayment of
debt with the net proceeds (after the purchase of The First Gray Line
Corporation) from the AVI initial public offering on September 24, 1997.
Commenting on first quarter results, R. Craig Hoenshell, chairman and
chief executive officer of Avis Rent A Car, Inc. stated, "Our results reflect
an improved profit margin as a result of the continued positive pricing trends
within the industry." He continued, "Consistent with our stated strategy of
pursuing strategic acquisitions, the Company recently announced an agreement
to purchase the Avis System franchises of Hayes Leasing Company, Inc.,
scheduled to close in May 1998. This acquisition will add Dallas/Fort Worth
Airport, one of the largest in the United States, to our operations, and will
be immediately accretive to earnings."
Avis Rent A Car, Inc., operates the second largest general use car rental
business in the world, based on total revenue and volume of rental
transactions. The Company rents vehicles to business and leisure travelers
through over 600 locations in the United States, Canada, Puerto Rico, the U.S.
Virgin Islands, Argentina, Australia and New Zealand. Annually, the Company
completes approximately 15 million rental transactions with a fleet that
averages approximately 200,000 vehicles, generating over $2.0 billion in total
revenue, of which approximately 89% is derived from its operations in the
United States.
For corporate background information and recent news releases, please log
on the Avis Galaxy Web site at http://www.avis.com or call Company News on Call at
1-800-758-5804, access code #078975.
AVIS RENT A CAR, INC.
FIRST QUARTER OPERATING RESULTS
(In thousands, except share and per share amounts)
(Unaudited)
ACTUAL PRO FORMA
1998 1997 1997 (a)
Revenue $511,390 $456,014 $506,417
Costs and expenses:
Direct operating 209,815 198,286 220,499
Vehicle depreciation and lease
charges, net 133,362 120,609 128,040
Selling, general and
administrative 104,764 94,913 100,488
Interest, net 47,668 34,247 44,984
Amortization of cost in excess
of net assets acquired 2,552 976 2,064
498,161 449,031 496,075
Income before income taxes 13,229 6,983 10,342
Provision for income taxes 5,821 2,778 4,661
Net income $7,408 $4,205 $5,681
Earnings per share:
Basic $0.24 $0.14 $0.18
Diluted (b) $0.23 $0.14 $0.18
Weighted average number of
shares outstanding:
Basic 31,425,000 30,925,000 30,925,000
Diluted (b) 32,564,416 30,925,000 30,925,000
(a) Includes the effects of each of the following transactions as if they
had occurred on January 1, 1997: (a) the acquisition of The First Gray Line
Corporation and (b) the repayment of debt with the net proceeds (after the
purchase of The First Gray Line Corporation) from the initial public offering.
(b) Includes dilutive effect of the assumed excerise of stock options.
SOURCE Avis Rent A Car, Inc.