Avis Rent A Car Reports Record First Quarter 1999 Operating Results
20 April 1999
Avis Rent A Car, Inc. Reports Record First Quarter 1999 Operating Results; E.P.S. Up 48%, Excluding One Time Gain
GARDEN CITY, N.Y., April 19 -- Avis Rent A Car, Inc.
today reported record results for the quarter ended March 31,
1999.
Revenue for the quarter ended March 31, 1999 was $566.9 million, up
11 percent over the comparable period in 1998. Net income and diluted
earnings per share were $15.2 million and 47 cents per share, respectively,
representing increases of 105 percent and 104 percent over the comparable
period in 1998. The reported results include a non-recurring $7.5 million
pre-tax gain or 13 cents per share on a diluted earnings per share basis,
resulting from the curtailment of the Company's defined benefit plans. Net
income and diluted earnings per share both increased 48 percent excluding the
non-recurring gain.
"Avis is off to a fine start in 1999," noted Executive Vice President and
CFO, Kevin Sheehan. "While we saw some competitive challenges in the quarter,
we were able to achieve margin improvement through solid transaction growth,
an enhanced customer mix and successful marketing initiatives."
"Looking out to the remainder of the year, Avis is on track for another
excellent year of growth. Our strategy of achieving more attractive price
levels is viable, and given the current favorable economic conditions coupled
with rising airline capacity trends, we anticipate solid rental demand through
the remainder of 1999."
Avis Rent A Car, Inc., with locations in the United States, Canada,
Australia, New Zealand, Argentina, Puerto Rico and the U.S. Virgin Islands, is
one of the leading car rental companies in the world. Annually, the Company
completes over 15 million rental transactions.
This press release contains statements related to future results, which
are forward-looking statements that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve risks and uncertainties, including the
impact of competitive products and pricing, changing market conditions, the
ability of the Company and its vendors to complete the necessary actions to
achieve a Year 2000 conversion for its computer systems and applications: and
other risks which are detailed from time to time in the Company's
publicly-filed documents, including its Annual Report on Form 10-K for the
period ended December 31, 1998. Actual results may differ materially from
those projected. These forward-looking statements represent the Company's
judgments as of the date of this release.
For additional quotes and news, please log onto the Avis Web Site
(http://www.avis.com) or call Company News on Call (800-758-5804,
access code #078975).
AVIS RENT A CAR, INC.
FINANCIAL RESULTS
(In thousands, except share and per share amounts)
THREE MONTHS ENDED MARCH 31,
(UNAUDITED)
1999 1998 (2)
Revenue $566,917 $511,390
Costs and expenses:
Direct operating, net 226,165 210,431
Vehicle depreciation and
lease charges, net 149,402 133,362
Selling, general and administrative 110,801 104,148
Interest, net 50,545 47,668
Amortization of cost in excess of
net assets acquired 3,174 2,552
540,087 498,161
Income before provision for income taxes 26,830 13,229
Provision for income taxes 11,644 5,821
Net income $15,186 $7,408
Earnings per share:
Basic $0.48 $0.24
Diluted (1) $0.47 $0.23
Weighted average number of
shares outstanding:
Basic 31,873,031 31,425,000
Diluted (1) 32,517,570 32,561,483
(1) Includes dilutive effect of the assumed exercise of stock options.
(2) Certain amounts have been reclassified to conform to current year
presentation.