ANC Rental Corporation Reports a 54% Increase In 2nd Quarter Operating Earnings
26 July 2000
This is Before Non-Recurring Transition Costs
FORT LAUDERDALE, Fla. - In its first quarterly earnings report as a public company, ANC Rental Corporation today reported operating income, before non-recurring transition costs, of $39.3 million for the three months ended June 30, 2000, compared to $25.5 million last year, an increase of 54.1%. The reported results include non-recurring transition costs associated with ANC Rental Corporation's previously announced consolidation of its headquarters in Ft. Lauderdale, FL. Including these charges of $8.3 million, operating earnings for the three-month period were $31.0 million, a 21.8% increase compared to last year.Revenue for the three months ended June 30, 2000 was $910.6 million, compared to $892.7 million last year, an increase of 2.0%. Earnings per share for the three months ended June 30, 2000 were $.34 versus $.31 per share in the prior year, an increase of 9.7%.
Commenting on ANC Rental Corporation's second quarter performance, President and Chief Executive Officer Michael S. Karsner said, "We are pleased with our performance in this, our first quarter reporting as a public company. Results are in line with our expectations and we continue to achieve the goals we have set for ourselves in our business plan. Our pricing, cost reduction and fleet management initiatives have helped us achieve a significant year to year improvement in second quarter operating profit."
For the six months ended June 30, 2000, ANC Rental Corporation reported operating income, before non-recurring transition costs, of $10.2 million, compared to $16.5 million last year. Including these charges of $15.7 million, the Company incurred an operating loss of $5.5 million. Revenue for the six months ended June 30, 2000 was $1,721.2 million, compared to $1,683.8 million last year, an increase of 2.2%. For the six months ended June 30, 2000, loss per share was $.20, compared to earnings per share of $.14 for the same period in 1999.
ANC Rental Corporation, headquartered in Fort Lauderdale, is one of the world's largest car rental companies with annual revenue of approximately $3.5 billion in 1999. ANC Rental Corporation, the parent company of Alamo, National, and CarTemps, is the only company in the car rental industry that operates three distinct brands. ANC Rental Corporation has more than 3,000 locations in 69 countries and employs approximately 22,000 associates worldwide.
Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. Additional discussion of factors that could cause the actual results to differ materially from management's projection, forecasts, estimates and expectations is contained in the Company's SEC filings.
ANC Rental Corporation
Consolidated Statements of Income and Other Selected Financial Data
(in millions except per share amounts)
Unaudited
Three months ended June 30,
2000 % 1999 %
Revenue:
Alamo/National North America $751.6 82.6 $731.2 81.9
CarTemps USA 67.7 7.4 67.9 7.6
International 91.3 10.0 93.6 10.5
910.6 100.0 892.7 100.0
Operating expenses 686.1 75.4 684.0 76.6
Gross margin 224.5 24.6 208.7 23.4
SG & A 185.2 20.3 183.2 20.5
Operating income before
non-recurring transition costs 39.3 4.3 25.5 2.9
Non-recurring transition costs 8.3 0.9 - -
Operating income 31.0 3.4 25.5 2.9
Interest expense, net (3.0) (0.3) (3.9) (0.5)
Other income / (expense) (2.6) (0.3) (0.1) -
Income before tax 25.4 2.8 21.5 2.4
Taxes 9.9 1.1 7.7 0.9
Net Income $15.5 1.7 $13.8 1.5
Earnings per share $0.34 $0.31
Weighted average shares 45.1 45.1
Capital expenditures $21.6 $51.6
Non-vehicle depreciation and
amortization $25.4 $21.9
ANC Rental Corporation
Consolidated Statements of Income and Other Selected Financial Data
(in millions except per share amounts)
Unaudited
Six months ended June 30,
2000 % 1999 %
Revenue
Alamo/National
North America $1,406.6 81.7 $1,372.7 81.5
CarTemps USA 137.9 8.0 133.1 7.9
International 176.7 10.3 178.0 10.6
1,721.2 100.0 1,683.8 100.0
Operating expenses 1,341.0 77.9 1,317.3 78.2
Gross Margin 380.2 22.1 366.5 21.8
SG & A 370.0 21.5 350.0 20.8
Operating income before
non-recurring transition
costs 10.2 0.6 16.5 1.0
Non-recurring transition
costs 15.7 0.9 - -
Operating income/ (loss) (5.5) (0.3) 16.5 1.0
Interest expense, net (6.4) (0.4) (7.2) (0.4)
Other income/ (expense) (2.9) (0.2) 0.2 -
Income/ (loss) before tax (14.8) (0.9) 9.5 0.6
Taxes (5.8) (0.4) 3.4 0.2
Net income/ (loss) $(9.0) (0.5) $6.1 0.4
Earnings/ (loss) per share $(0.20) $0.14
Weighted average shares 45.1 45.1
Capital expenditures $41.4 $103.0
Non-vehicle depreciation
and amortization $48.6 $38.0
ANC Rental Corporation
Selected Balance Sheet Data
(in millions)
Unaudited
June 30, 2000 December 31, 1999
Revenue earning vehicles $5,583.2 $4,501.3
Total assets $7,445.5 $6,349.5
Vehicle debt $4,939.0 $4,531.6
Non-vehicle debt $332.8 $107.4
Shareholders' equity $894.3 $726.6
