Rent-a-Wreck of America Reports Record Nine-Month Earnings
16 February 2000
Rent-a-Wreck of America Reports Record Nine-Month Earnings
OWINGS MILLS, Md--Feb. 15, 2000--Rent-A-Wreck of America, Inc. announced results for the third quarter and nine-month period ended December 31, 1999.For the nine months ended December 31, 1999, net income increased 21% to $820,993 on a 9% increase in net revenues. Basic earnings per share were $.20 versus $.15 in the prior year, and diluted earnings per share were $.14 versus $.12 in the same period last year.
For the three-month period, net income was $155,495, a decrease of approximately 12% over net income of $176,009 in the same period last year. The decrease was primarily attributable to the Company's non-recurring moving expenses ($41,000) for its move in November, 1999, to its new corporate headquarters. Despite the decrease in net income, earnings per share remained $.04 per common share (basic), and diluted earnings per share stayed $.03 because of a significant reduction in the number of outstanding shares of common stock due to the Company's repurchase and retirement of 400,000 shares (10.1%) of its common stock during the third quarter.
CONDENSED CONSOLIDATED FINANCIAL STATEMENT
Three Months Nine Months
Ended Dec. 31, Ended Dec. 31,
1998 1999 1998 1999
------ ------- ------ ------
(in thousands except per share
amounts and number of franchises)
(Unaudited)
Franchisees' Results (Unaudited)
--------------------------------
Franchisees' Revenue (1) $10,797 $11,709 $33,698 $38,528
Number of Franchises 623 667 623 667
Results of Operations
---------------------
Total Revenue $ 1,344 $ 1,355 $ 4,296 $ 4,701
Costs and expenses 1,115 1,163 3,369 3,545
Income before income taxes 249 212 980 1,214
Net income 176 155 678 821
Earnings per share
Basic (2) $ .04 $ .04 $ .15 $ .20
Weighted average common shares 4,079 3,784 4,107 3,889
Diluted (2) $ .03 $ .03 $ .12 $ .14
Weighted average common shares 5,738 5,962 5,597 5,987
(1) The franchisees' revenue data have been derived from
unaudited reports provided by franchisees submitted when
paying license fees and advertising fees to the Company.
(2) Basic earnings per share are after deducting a provision for
preferred dividends of $27,320 and $81,960, for the three and
nine-month periods ended December 31, 1998. For the three and
nine-month periods ended December 31, 1999, basic earnings
per share are after deducting a provision for preferred
dividends of $22,400 and $67,400. Diluted earnings per
share assumes a conversion of cumulative preferred stock into
common shares and, accordingly, no deduction from earnings
is made for preferred dividends.