Avis Rent A Car, Inc. Reports Record Second Quarter 1999 Operating Results
15 July 1999
Avis Rent A Car, Inc. Reports Record Second Quarter 1999 Operating Results Earnings Per Share up 39%
Garden City, N.Y., July 14 -- Avis Rent A Car, Inc.
today reported record results for the quarter ended June 30, 1999.
Revenue for the three months ended June 30, 1999 was $637.5 million, up
11 percent over the comparable period in 1998. Net income and diluted earnings
per share were $27.3 million and 85 cents per share, respectively,
representing increases of 22 percent and 39 percent, respectively, over the
comparable period in 1998.
Revenue for the six months ended June 30, 1999 was $1,204.4 million, up
11 percent over the comparable period in 1998. Net income and diluted
earnings per share were $42.5 million and $1.31 per share, respectively,
representing increases of 43 percent and 52 percent, respectively, over the
comparable period in 1998. The year to date results include a previously
reported first quarter non-recurring $7.5 million pre-tax gain representing
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 increased 28 percent and 37 percent, respectively,
excluding the non-recurring gain.
"The solid earnings growth in the second quarter marks Avis' eighth
consecutive quarter of record performance" said Kevin Sheehan, Executive Vice
President and CFO. "During the quarter, we successfully completed our
franchise acquisition program and aligned our company for the long-term by
completing the acquisition of the vehicle management and fuel card businesses
of PHH and Wright Express."
"We now have a significant presence in car rental, vehicle leasing and
vehicle 0management services and we will continue to effectively manage our
assets, operations and capital structure for the long-term benefit of our
shareholders."
Avis is one of the world's leading providers of comprehensive automotive
transportation and vehicle management solutions, with strengths in car rental,
vehicle leasing, and vehicle management services. Avis operates the second
largest general-use car rental business in the world, with locations in the
United States, Canada, Australia, New Zealand and the Latin American Caribbean
region. Avis operates the vehicle management and fuel card businesses through
three separate units: PHH North America, PHH Europe and Wright Express. The
services of these units consist of vehicle leasing and a broad range of
vehicle related fee based services. The Company manages a fleet of
approximately 1 million vehicles and has over 3.6 million fuel and maintenance
cards outstanding. Annually, on a pro forma basis, the Company generates
approximately $4.0 billion in total revenue.
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 involves 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
judgements as of the date of this release.
For additional information 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 JUNE 30,
(UNAUDITED)
1999 1998(2)
Revenue $637,457 $575,280
Costs and expenses:
Direct operating, net 250,773 230,253
Vehicle depreciation and lease charges, net161,765 144,032
Selling, general and administrative 120,381 108,966
Interest, net 53,817 49,150
Amortization of cost in excess of net
assets acquired 3,177 2,969
589,913 535,370
Income before provision for income taxes 47,544 39,910
Provision for income taxes 20,262 17,560
Net income $27,282 $22,350
Earnings per share:
Basic $0.87 $0.62
Diluted (1) $0.85 $0.61
Weighted average number of shares outstanding:
Basic 31,188,977 35,925,000
Diluted (1) 32,237,810 36,730,233
SIX MONTHS ENDED JUNE 30,
(UNAUDITED)
1999 1998(2)
Revenue $1,204,374 $1,086,670
Costs and expenses:
Direct operating, net 476,938 440,684
Vehicle depreciation and lease charges, net311,167 277,394
Selling, general and administrative 231,182 213,114
Interest, net 104,362 96,818
Amortization of cost in excess of net
assets acquired 6,351 5,521
1,130,000 1,033,531
Income before provision for income taxes 74,374 53,139
Provision for income taxes 31,906 23,381
Net income $42,468 $29,758
Earnings per share:
Basic $1.35 $0.88
Diluted (1) $1.31 $0.86
Weighted average number of shares outstanding:
Basic 31,529,114 33,687,431
Diluted (1) 32,380,499 34,680,670
(1) Includes dilutive effect of the assumed exercise of stock options.
(2) Certain amounts have been reclassified to conform to current year
presentation.
(3) The above results do not include the results of operations of PHH
Europe, PHH North America and Wright Express purchased on June 30,
1999.