ANC Rental Completes Spin-off; Begins Trading on NASDAQ.Business Editors
FORT LAUDERDALE Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. , Fla.--(BUSINESS WIRE)--July 6, 2000
-Company's Three Major Brands Alamo Alamo
Eighteenth-century mission in San Antonio, Texas, site of a historic siege of a small group of Texans by a Mexican army (1836) during the Texas war for independence from Mexico. , National, CarTemps
Rank No. 1 in Top 50 U.S. Markets-
African National Congress
ANC African National Congress: South African political movement instrumental in bringing an end to apartheid
ANC n abbr (= Rental Corporation (NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ANCX), the parent company of the Alamo, National and CarTemps rental car brands, began trading on July 3, 2000, as an independent company following the completion of its spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. from AutoNation (NYSE NYSE
See: New York Stock Exchange : AN).
ANC Rental derives its name from its three distinct brands--Alamo, National and CarTemps--which, combined, make it the No. 1 auto rental company in the top 50 U.S. markets, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. Auto Rental News.
ANC Rental Corporation is the only company among the industry's largest competitors that has a major brand in each of the three core markets: leisure, business and insurance replacement.
The ANC senior management team includes:
-- ANC President and CEO Michael Karsner - former chief financial officer of AutoNation; senior vice president and chief financial officer of Dole Food Company, Inc.; and a senior manager at Black and Decker Corp. -- Karen Beard, president of North American operations - former Alamo U.S. president and a 19-year company veteran. -- Kathleen Hyle, CFO - former vice president and treasurer of AutoNation.
ANC Rental will compete in a large and growing industry. The auto rental industry has increased revenue volume for 15 consecutive years, exceeding $25 billion in 1999. The U.S. market was approximately $18.3 billion and the international market was approximately $7 billion in 1999. Revenue for ANC Rental was approximately $3.5 billion in 1999.
ANC maintains one of the largest rental fleets in the world, with more than 340,000 automobiles available at 3,000 on-airport and near-airport locations in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and throughout the world. Industry analysts estimate that there are only seven major competitors in the U.S. market and a similar number internationally.
Approximately 45.1 million shares of ANC Rental were distributed to AutoNation shareholders at a ratio of one share of ANCX for each eight shares of AN. The tax-free distribution was made to shareholders of the record date of June 16, 2000, after the market closed June 30, 2000. Opening price for the stock was 5 3/8. The stock ended the day at $5 with a volume of 281,800 shares traded.
"Becoming a stand-alone company stand-alone company
An independent operating firm. For example, a large diversified firm may consider spinning off a subsidiary because, as a stand-alone company, the subsidiary would command a higher price-earnings ratio than the parent. provides us with major opportunities," said ANC President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Mike Karsner.
"For the first time we will be able to leverage our size and capabilities to take full advantage of efficiencies. For instance, we now consolidate our advertising and marketing expenditures to gain media buying efficiencies. In anticipation of the spin-off, we were able to close our Minneapolis, National Car Rental headquarters and consolidate those operations with ANCs existing Fort Lauderdale headquarters, a move which will provide immediate cost benefits.
"The strength of our brands allows us to target markets in a way that no other competitor can," Karsner continued. "The value of that is clearly evident. For instance, our market share in Orlando, Fla., the nation's largest auto rental market, exceeds that of our two largest competitors combined. And we are the No. 1 company in eight of the nation's Top 15 markets."
By maintaining three distinct brands, ANC Rental can better design facilities and systems to meet targeted customer requirements and provide pricing/feature options based on customer preferences.
"The opportunities provided by having three individually-focused brands are enormous," Karsner said. "We can target promotional offers and advertising; we can design facilities to meet the needs of target customers, and we can build our fleets around their preferences."
Alamo, founded in 1974, has more than 100 locations in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and serves approximately 15 million customers annually. Focusing in the leisure market segment, the brand is currently rolling out a facilities redesign re·de·sign
tr.v. re·de·signed, re·de·sign·ing, re·de·signs
To make a revision in the appearance or function of.
re to take advantage of its ability to serve this market. By year's end, 31 locations, representing 50 percent of the total Alamo customer base, will be served by facilities with enhanced luggage handling, a travel kiosk center and children's play areas.
The first brand to provide an on-line reservations Web site, Alamo (www.alamo.com) was recently cited by Forrester Research Forrester Research is an independent technology and market research company that provides its clients with advice about technology's impact on business and consumers. Corporate facts
National, founded in 1951, has 742 locations in North America and serves customers in more than 60 countries outside the United States. Focusing on the corporate market segment of the industry, National caters to the needs of travel-savvy business renters. Its frequent user program, Emerald Club, has 3.5 million members, thousands of whom rent with National more than 25 times a year.
In April, National became the first car rental company to allow customers to make reservations online with only "One-click." This process, exclusive to Emerald Club members, can be completed in less than 60 seconds at www.nationalcar.com.
With 400 locations currently, CarTemps will add 30 sites annually during the next three years. Utilizing storefront facilities allows CarTemps, which competes primarily in the insurance replacement segment, to expand with low capital requirements Capital requirements
Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. (approximately $10,000) per location.
ANC Rental Corporation is one of the world's largest car rental companies with annual revenue of approximately $3.5 billion. ANC, the holding company for Alamo, National, and CarTemps, is the only company in the car rental industry that operates three distinct brands. Headquartered in Fort Lauderdale, Fla., ANC companies have more than 3,000 locations in 69 countries and employ approximately 22,000 associates worldwide.
Forward-looking Statement forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 projections, forecasts, estimates and expectations is contained in the SEC filings.