Avis Group Holdings, Inc. Reports Second Quarter 2000 Operating Results
25 July 2000
Earnings Per Share Up 24%
GARDEN CITY, N.Y. - Avis today reported its results for the quarter ended
June 30, 2000. On a historical basis, net income and diluted earnings per share
for the three months ended June 30, 2000 were $37.4 million and $1.05,
respectively, compared to $27.3 million and 85 cents, respectively, for the same
period in 1999. Revenue for the quarter ended June 30, 2000 was $1.1 billion.
On a historical basis, net income and diluted earnings per share for the
six months ended June 30, 2000 were $57.0 million and $1.52, respectively,
compared to $42.5 million and $1.31, respectively, for the same period in
1999. The 1999 period included a previously reported non-recurring
$7.5 million pre-tax gain representing 13 cents diluted earnings per share,
resulting from the curtailment of the Company's defined benefit plans.
Revenue for the six months ended June 30, 2000 was $2.1 billion.
On a pro forma basis, net income and diluted earnings per share for the
three months ended June 30, 2000 increased to $37.4 million and $1.05,
respectively, from $18.4 million and 43 cents, respectively, for the same
period in 1999. Revenue for the quarter ended June 30, 2000 increased
4.7 percent over the comparable period in 1999.
On a pro forma basis, net income and diluted earnings per share for the
six months ended June 30, 2000 increased to $57.0 million and $1.52,
respectively, from $23.0 million and 43 cents, respectively, for the same
period in 1999. Revenue for the six months ended June 30, 2000 increased
4.6 percent over the comparable period in 1999. The pro forma operating
results give effect to the acquisition of PHH North America, PHH Europe and
Wright Express ("Vehicle Management Services or VMS") as if they had occurred
on January 1, 1999.
"During the quarter, we continued to leverage our assets, technology and
people to deliver measurable financial results to our shareholders," said A.
Barry Rand, Avis Group's Chairman and CEO. "Our completed definitive Joint
Venture agreement with BNP Paribas is a significant milestone for Avis which
will strengthen our financial position, broaden our global reach and reaffirm
our commitment to enhance the value of Avis Group. Overall, we had a solid
quarter and remain on track to meet our full year targets."
Avis Group Holdings, Inc. is one of the world's leading service and
information providers of comprehensive automotive transportation and vehicle
management solutions. Avis Group 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. In 1999, the
Company acquired PHH Vehicle Management Services, the world's second largest
fleet management and leasing company, together with Wright Express, the
world's largest fleet card provider.
AVIS GROUP HOLDINGS, INC.
FINANCIAL RESULTS
(In thousands, except share and per share amounts)
(Unaudited)
THREE MONTHS ENDED JUNE 30,
ACTUAL PRO FORMA (1)
2000 1999 1999
Revenue:
Vehicle rental $666,597 $637,457 $637,457
Vehicle management services:
Vehicle leasing 356,050 -- 346,411
Other fee based revenue 73,821 -- 63,626
1,096,468 637,457 1,047,494
Costs and expenses:
Direct operating, net 229,314 242,886 242,886
Vehicle depreciation
and lease charges, net 426,505 165,417 424,858
Interest 125,199 51,483 99,337
Selling, general
and administrative 186,192 120,381 185,329
967,210 580,167 952,410
EBITDA 129,258 57,290 95,084
Interest - acquisition debt 35,998 -- 34,297
Amortization of cost in excess
of net assets acquired 11,762 3,177 11,762
Non-vehicle depreciation
and amortization 13,440 6,569 12,280
Income before provision
for income taxes 68,058 47,544 36,745
Provision for income taxes 30,626 20,262 18,296
Net income 37,432 27,282 18,449
Preferred stock dividends 4,667 -- 4,555
Earnings applicable to
common stockholders $32,765 $27,282 $13,894
Earnings Per Share:
Basic $1.05 $0.87 $0.45
Diluted (2) $1.05 $0.85 $0.43
Cash earnings per share (3) $1.41 $0.94 $0.78
Weighted average shares
outstanding:
Basic 31,131,712 31,188,977 31,188,977
Diluted (2) 31,336,088 32,237,810 32,237,810
SIX MONTHS ENDED JUNE 30,
ACTUAL PRO FORMA (1)
2000 1999 1999
Revenue:
Vehicle rental $1,255,473 $1,204,374 $1,204,374
Vehicle management services:
Vehicle leasing 707,158 -- 687,931
Other fee based revenue 146,870 -- 124,012
2,109,501 1,204,374 2,016,317
Costs and expenses:
Direct operating, net 456,008 461,720 461,720
Vehicle depreciation
and lease charges, net 827,502 318,471 833,308
Interest 234,163 99,925 195,375
Selling, general
and administrative 366,275 231,182 359,701
1,883,948 1,111,298 1,850,104
EBITDA 225,553 93,076 166,213
Interest - acquisition debt 71,831 -- 68,758
Amortization of cost in
excess of net assets acquired 23,594 6,351 23,594
Non-vehicle depreciation
and amortization 26,459 12,351 24,018
Income before provision
for income taxes 103,669 74,374 49,843
Provision for income taxes 46,651 31,906 26,804
Net income 57,018 42,468 23,039
Preferred stock dividends 9,335 -- 9,110
Earnings applicable
to common stockholders $47,683 $42,468 $13,929
Earnings Per Share:
Basic $1.53 $1.35 $0.44
Diluted (2) $1.52 $1.31 $0.43
Cash earnings per share (3) $2.25 $1.49 $1.13
Weighted average
shares outstanding:
Basic 31,131,712 31,529,114 31,529,114
Diluted (2) 31,339,247 32,380,499 32,380,499
(1) Presents the results of operations of the Company as if the
acquisition of PHH North America, PHH Europe and Wright Express
had occurred on January 1, 1999.
(2) Includes dilutive effect of the assumed exercise of stock options.
(3) Cash earnings per share equals earnings applicable to common
stockholders plus amortization of cost in excess of net assets
acquired (net of income tax benefit) divided by the weighted average
diluted shares outstanding.