ANC Rental Reports Improvement In Q3 Operating Income
25 October 2000
ANC Rental Corporation Reports A 229% Improvement In Third Quarter Operating Income Before Non-Recurring Transition Costs
Business EditorsFORT LAUDERDALE, Fla.--Oct. 25, 2000--ANC Rental Corporation today reported operating income, before non-recurring transition costs, of $100.3 million for the three months ended September 30, 2000 compared to $30.5 million last year, an increase of 229%. The reported results include $2.0 million of non-recurring transition costs associated with ANC Rental Corporation's previously announced consolidation plan. Operating income for the three-month period including these charges was $98.3 million, an increase of 222% when compared to last year.
Revenue for the three months ended September 30, 2000 was $1,005.7 million compared to $1,023.3 million last year, a decrease of 1.7%. Net income for the three months ended September 30, 2000 was $51.0 million compared to $18.4 million in the prior year, an increase of 177%. Diluted earnings per share for the three months ended September 30, 2000 was $1.10 versus $.41 per share in the prior year, an increase of $.69 per share or 168%.
Commenting on ANC Rental Corporation's third quarter performance, President and Chief Executive Officer Michael S. Karsner said, "In less than two quarters as an independent company, we have made significant strides in the financial performance of our Company. Our focus on cost reductions and improved efficiency enabled us to achieve this operating performance. These results reflect continued progress toward the long-term business strategies we established for ourselves when we became independent earlier this year."
For the nine months ended September 30, 2000, the Company reported operating income, before non-recurring transition costs, of $110.5 million compared to $47.0 million last year, an increase of 135%. The reported results include $17.7 million of non-recurring transition costs associated with ANC Rental Corporation's previously announced consolidation plan. Operating income for the nine-month period including these charges was $92.8 million, an increase of 97% when compared to last year. Revenue for the nine months ended September 30, 2000 was $2,726.9 million, compared to $2,707.1 million last year, an increase of .7%. Net income for the nine months ended September 30, 2000 was $42.0 million compared to $24.5 million in the prior year, an increase of 71%. Diluted earnings per share for the nine months ended September 30, 2000 was $.92 versus $.54 per share in the prior year, an increase of $.38 per share or 70%.
The Company expects that pricing in the U.S. airport markets will remain competitive in the fourth quarter with revenue per day expected to be 2% to 3% below last year. Volume in the U.S. airport market during the same period is expected to increase 2% to 3%. The Company anticipates its operating income for the fourth quarter to be between breakeven and a loss of $10 million. Diluted earnings per share for the full year is expected to range between $.59 and $.72 per share or when adjusted to exclude the after-tax effect of non-recurring transition expenses, between $.83 and $.96 per share. In the outlook for 2001, consolidated revenue per day is expected to be flat to up 1% over 2000 levels and volume is expected to grow 3% to 4%. Revenue per day growth in 2001 is more likely to occur in the second half of the year. These assumptions yield diluted earnings per share for the full year of between $1.00 and $1.15 per share.
ANC Rental Corporation
Consolidated Statements of Income (Unaudited)
($ in millions except per share amounts)
------------------------------------------
Three months ended September 30,
------------------------------------------
2000 % 1999 %
---- - ---- -
Revenue:
Alamo $ 419.5 41.7 $ 414.4 40.5
National 425.7 42.3 433.4 42.4
----- ---- ----- ----
North America 845.2 84.0 847.8 82.9
CarTemps USA 69.1 6.9 75.1 7.3
International 91.4 9.1 100.4 9.8
----- ---- ----- ----
1,005.7 100.0 1,023.3 100.0
----- ---- ----- ----
Operating expenses 737.1 73.3 761.3 74.4
----- ---- ----- -----
Gross margin 268.6 26.7 262.0 25.6
SG & A 165.8 16.5 229.0 22.4
Amortization of intangibles 2.5 0.2 2.5 0.2
----- ---- ----- -----
Operating income before
non-recurring transition
costs 100.3 10.0 30.5 3.0
Non-recurring transition
costs 2.0 0.2 - -
----- ---- ----- -----
Operating income 98.3 9.8 30.5 3.0
Interest expense, net (14.5) (1.5) (2.7) (0.3)
Other income / (expense) (0.1) - 1.0 0.1
----- ---- ----- -----
Income before tax 83.7 8.3 28.8 2.8
Taxes 32.7 3.2 10.4 1.0
----- ---- ----- -----
Net income $ 51.0 5.1 $ 18.4 1.8
===== ==== ===== =====
Earnings per share:
Basic $ 1.13 $ 0.41
Fully Diluted $ 1.10 $ 0.41
Weighted average shares:
Basic 45.1 45.1
Fully Diluted 46.3 45.1
ANC Rental Corporation
Consolidated Statements of Income (Unaudited)
($ in millions except per share amounts)
------------------------------------------------------
Nine months ended September 30,
------------------------------------------------------
2000 % 1999 %
---- - ---- -
Revenue:
Alamo $ 1,104.7 40.5 $ 1,067.0 39.4
National 1,147.1 42.1 1,153.5 42.6
------- ---- ------- ----
North America 2,251.8 82.6 2,220.5 82.0
CarTemps USA 207.0 7.6 208.2 7.7
International 268.1 9.8 278.4 10.3
------- ---- ------- ----
2,726.9 100.0 2,707.1 100.0
------- ---- ------- ----
Operating expenses 2,073.1 76.0 2,073.7 76.6
------- ---- ------- ----
Gross margin 653.8 24.0 633.4 23.4
SG & A 535.8 19.6 579.0 21.4
Amortization of intangibles 7.5 0.3 7.4 0.3
------- ---- ------- ----
Operating income before
non-recurring transition
costs 110.5 4.1 47.0 1.7
Non-recurring transition
costs 17.7 0.7 - -
------- ---- ------- ----
Operating income 92.8 3.4 47.0 1.7
Interest expense, net (20.9) (0.8) (9.8) (0.3)
Other income / (expense) (3.0) (0.1) 1.1 -
------- ---- ------- ----
Income before tax 68.9 2.5 38.3 1.4
Taxes 26.9 1.0 13.8 0.5
------- ---- ------- ----
Net income $ 42.0 1.5 $ 24.5 0.9
======= ==== ======= ====
Earnings per share:
Basic $ 0.93 $ 0.54
Fully Diluted $ 0.92 $ 0.54
Weighted average shares:
Basic 45.1 45.1
Fully Diluted 45.5 45.1
ANC Rental Corporation - Supplemental Data (Unaudited)
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For the three months ended September 30,
----------------------------------------------------
2000 1999 % change
---- ---- --------
Revenue (1) $ 1,005.7 $ 1,023.3 -1.7%
Key Operating Statistics
2000 1999 % change
---- ---- --------
Revenue per day $ 36.42 $ 36.31 0.3%
Revenue per day, net of
foreign exchange
translation $ 36.73 $ 36.31 1.2%
Charge days (1) 27.2 27.7 -1.8%
Utilization 81.6% 82.3% -0.7%
September 30, December 30, September 30,
Balance Sheet Data (1) 2000 1999 1999
---- ---- ----
Cash $ 42.3 $ 17.4 $ 62.3
Revenue earning vehicles $ 5,232.8 $ 4,501.3 $ 5,221.6
Revenue earning vehicle
debt $ 4,668.2 $ 4,531.6 $ 5,169.5
Other debt $ 258.0 $ 107.4 $ 106.1
Shareholders' equity $ 934.2 $ 726.6 $ 800.7
-----------------------------------------
Other Data (1) For the three months ended September 30,
-----------------------------------------
2000 1999
---- ----
Revenue earning vehicle net
depreciation, interest and
other $ 376.6 $ 381.4
Non-vehicle depreciation
and amortization $ 32.2 $ 23.6
Capital expenditures $ 27.2 $ 47.3
-----------------------------------------
For the nine months ended September 30,
-----------------------------------------
2000 1999
---- ----
Revenue earning vehicle net
depreciation, interest
and other $ 1,011.5 $ 1,024.4
Non-vehicle depreciation
and amortization $ 80.8 $ 61.6
Capital expenditures $ 68.6 $ 150.3
Notes:
(1) amounts reflected in millions
Divisional Information- Supplemental Data (Unaudited)
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NORTH AMERICA
--------------------------------------------------
For the three months ended September 30,
--------------------------------------------------
2000 1999 % change
---- ---- --------
Revenue (1)
Alamo $ 419.5 $ 414.4 1.2%
National 425.7 433.4 -1.8%
----- ----- -----
Total $ 845.2 $ 847.8 -0.3%
===== ===== =====
Key Operating Statistics-North America
Alamo revenue per
day $ 37.07 $ 37.12 -0.1%
National revenue per
day $ 38.85 $ 38.38 1.2%
North America revenue
per day $ 37.93 $ 37.74 0.5%
Alamo charge days (1) 11.3 11.1 1.6%
National charge days (1) 10.6 10.9 -2.4%
----- -----
North America charge
days (1) 21.9 22.0 -0.5%
===== =====
North American
Utilization 83.7% 83.7% --
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CARTEMPS USA
---------------------------------------------
For the three months ended September 30,
---------------------------------------------
2000 1999 % change
---- ---- --------
Revenue (1) $ 69.1 $ 75.1 -8.0%
Key Operating
Statistics-CarTemps USA
Revenue per day $ 26.36 $ 25.03 5.3%
Charge days (1) 2.6 3.0 -12.6%
Utilization 75.0% 82.0% -7.0%
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INTERNATIONAL
-----------------------------------------
For the three months ended September 30,
-----------------------------------------
2000 1999 % change
---- ---- --------
Revenue (1) $ 91.4 $ 100.4 -9.0%
Key Operating Statistics-International
Revenue per day $ 33.79 $ 37.17 -9.1%
Revenue per day, net
of foreign exchange
translation $ 36.72 $ 37.17 -1.2%
Charge days (1) 2.6 2.7 -1.5%
Utilization 73.1% 72.6% 0.5%
----------------------------------------------------------------------
Notes:
(1) amounts reflected in millions