ANC Rental Corporation Reports Meeting Revised Expectations.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)--Jan. 31, 2001 ANC ANC abbr. African National Congress ANC African National Congress: South African political movement instrumental in bringing an end to apartheid ANC n abbr (= Rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. Corporation (Nasdaq:ANCX) today announced a net loss for the fourth quarter 2000 of $44.0 million or $.98 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, slightly better than revised expectations, on revenue of $805.1 million. This compares to a net loss of $95.5 million or $2.12 per diluted share on revenue of $835.3 million for 1999. The fourth quarter 1999 results include a non-recurring restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $40.5 million. Excluding the effects of the 1999 fourth quarter restructuring charge, the 2000 net loss reflects an improvement of 32.0% over the comparable period in the prior year. The operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the fourth quarter of 2000 was $50.0 million or a 40.0% improvement from the $82.8 operating loss for the fourth quarter of 1999, before restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). . Fourth quarter results were unfavorably impacted by weaker North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. airport revenue per day and higher fleet inventories. Commenting on ANC Rental Corporation's fourth quarter performance, Chairman and Chief Executive Officer Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. S. Egan said, "We are disappointed with our fourth quarter results. We are operating in a difficult pricing environment in the North American airport markets. In order to improve our future operating performance, we are taking advantage of opportunities to increase revenue per day and we are accelerating our plans to reduce costs." For the twelve months ended December December: see month. 31, 2000 the Company announced a net loss of $2.0 million or $.04 per diluted share, on revenue of $3,532.0 million as compared to a net loss of $71.0 million or $1.57 per diluted share on revenue of $3,542.3 million for the comparable period in 1999. Excluding effects of the restructuring charge taken in the fourth quarter of 1999, the 2000 net results reflect an improvement of 95.0%. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before transition costs, for the year 2000 was $60.5 million, a $96.3 million improvement over the $35.8 million operating loss, before restructuring in 1999. Looking ahead for the first quarter, the Company expects year-over-year improvement in operating income on a flat revenue base. The net loss for the first quarter, however, will be more than the same period last year due to increased interest expense. This is a result of a change in the Company's financing structure at the time of the June June: see month. 30, 2000 separation from its former parent. For 2001, the Company remains comfortable with current analysts' estimates of $.42 to $.50 per fully diluted share. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenue per day for the full year is expected to be flat to up 1% over 2000 levels and volume is expected to grow 4% to 5%. Given the current competitive pricing environment, revenue per day growth in 2001 is more likely to occur in the second half of the year. The Company's earnings estimate contemplates the conversion of its current $200 million interim financing Interim financing A short-term loan made to a company on the condition that a takeout will follow with long-term or intermediate financing. interim financing The financing that supports a transaction until permanent financing can be arranged. into a six-year term loan, pursuant to the terms previously described. In addition, the estimates assume the Company can obtain additional financing needed to meet its peak borrowing requirements in its second and third quarters. The Company is currently evaluating a variety of methods to raise the necessary liquidity from its current portfolio of owned assets. The Company believes these efforts will yield adequate capital to meet its business needs. ANC Rental Corporation, headquartered in Fort Lauderdale, is one of the world's largest car rental companies with annual revenue of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3.5 billion in 2000. ANC Rental Corporation, the parent company of 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. and National, 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 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. " 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in such forward-looking statements. Additional discussion of factors that could cause the actual results to differ materially from management's projection projection, in psychology: see defense mechanism. See rear-projection TV, front-projection TV and LCD panel. (theory) projection - In domain theory, a function, f, which is (a) idempotent, i.e. , forecasts, estimates and expectations is contained in the Company's Registration Statement on Form 10 and other SEC filings.
ANC Rental Corporation
Consolidated Statements of Income (Unaudited)
($ in millions except per share and statistical amounts)
Three Months As % of
Ended December 31, Total Revenue
----------------------- -----------------
2000 1999 2000 1999
----------------------- -----------------
Revenue:
Alamo $ 311.4 $ 316.3 38.7% 37.9%
National 345.2 352.5 42.9 42.2
--------- --------- -------- --------
North America 656.6 668.8 81.6 80.1
Alamo Local Market 67.5 74.5 8.4 8.9
International 81.0 92.0 10.0 11.0
--------- --------- -------- --------
Total Revenue: 805.1 835.3 100.0 100.0
Operating expenses 682.4 701.7 84.8 84.0
--------- --------- -------- --------
Gross margin 122.7 133.6 15.2 16.0
SG & A 170.2 213.9 21.1 25.6
Amortization of
intangibles 2.5 2.5 0.3 0.3
--------- --------- -------- --------
Operating loss before
restructuring costs (50.0) (82.8) (6.2) (9.9)
Restructuring costs - 40.5 - 4.8
--------- --------- -------- --------
Operating loss (50.0) (123.3) (6.2) (14.7)
Interest expense, net (16.8) (3.2) (2.1) (0.4)
Other income / (expense) (0.2) - - -
--------- --------- -------- --------
Net loss before
income taxes (67.0) (126.5) (8.3) (15.1)
Income tax benefit (23.0) (32.6) (2.8) (3.9)
--------- --------- -------- --------
Net loss before
extraordinary charges (44.0) (93.9) (5.5) (11.2)
--------- --------- -------- --------
Extraordinary charges,
net of tax - (1.6) - (0.2)
--------- --------- -------- --------
Net loss $ (44.0) $ (95.5) (5.5)% (11.4)%
========= ========= ======== ========
Loss per share:
Basic and diluted $ (.98) $ (2.12)
Weighted average shares:
Basic and diluted 45.2 45.1
Three months ended December 31,
--------------------------------------------
2000 1999 % Change
--------------------------------------------
Key Operating
Statistics:
Revenue per day $ 34.73 $ 36.09 -3.8%
Revenue per day, net
of foreign exchange
translation 35.20 36.09 -2.6%
Charge days 22.8 22.8 0.4%
Utilization 76.6% 76.4% 0.2%
Other Data:
Vehicle net depreciation,
interest and other $ 336.6 $ 329.4 2.2%
Non-vehicle depreciation
and amortization 32.0 29.4 8.8%
Capital expenditures 10.8 42.4 -74.5%
ANC Rental Corporation
Consolidated Statements of Income (Unaudited)
($ in millions except per share and statistical amounts)
Twelve Months As % of
Ended December 31, Total Revenue
---------------------- -----------------
2000 1999 2000 1999
---------------------- -----------------
Revenue:
Alamo $ 1,416.1 $ 1,383.3 40.1% 39.1%
National 1,492.3 1,505.9 42.2 42.5
----------- ----------- -------- --------
North America 2,908.4 2,889.2 82.3 81.6
Alamo Local Market 274.6 282.7 7.8 8.0
International 349.0 370.4 9.9 10.4
----------- ----------- -------- --------
Total Revenue 3,532.0 3,542.3 100.0 100.0
Operating expenses 2,755.5 2,775.4 78.0 78.3
----------- ----------- -------- --------
Gross margin 776.5 766.9 22.0 21.7
SG & A 706.0 792.8 20.0 22.4
Amortization of
intangibles 10.0 9.9 0.3 0.3
----------- ----------- -------- --------
Operating income
before non-recurring
transition/restructuring
costs 60.5 (35.8) 1.7 (1.0)
Non-recurring
transition/restructuring
costs 17.7 40.5 0.5 1.1
----------- ----------- -------- --------
Operating income/
(loss) 42.8 (76.3) 1.2 (2.1)
Interest expense, net (37.7) (13.0) (1.1) (0.4)
Other income / (expense) (3.3) 1.1 (0.1) 0.0
----------- ----------- -------- --------
Net Income / (loss)
before taxes 1.8 (88.2) - (2.5)
Income tax provision /
(benefit) 3.8 (18.8) 0.1 (0.5)
----------- ----------- -------- --------
Net loss before
extraordinary
charges (2.0) (69.4) (0.1) (2.0)
----------- ----------- -------- --------
Extraordinary charges,
net of tax - (1.6) - -
----------- ----------- -------- --------
Net loss $ (2.0) $ (71.0) (0.1)% (2.0)%
=========== =========== ======== ========
Loss per share:
Basic $ (0.04) $ (1.57)
Diluted $ (0.04) $ (1.57)
Weighted average shares:
Basic 45.1 45.1
Diluted 45.4 45.1
Twelve months ended December 31,
-----------------------------------------
2000 1999 % Change
-----------------------------------------
Other Data:
Vehicle net
depreciation, interest
and other $ 1,346.5 $ 1,345.3 0.1%
Non-vehicle depreciation
and amortization 112.8 91.0 24.0%
Capital Expenditures 79.4 192.7 -58.8%
Balance Sheet Data:
Cash $ 21.4 $ 17.4
Restricted cash 321.9 155.3
Vehicles, net 4,451.4 4,501.3
Vehicle debt 4,228.9 4,531.6
Other debt 276.7 107.4
Shareholders' equity 892.6 726.6
ANC Rental Corporation
Divisional Information - Supplemental Data (Unaudited)
For the three months ended December 31,
-------------------------------------------
2000 1999 % Change
-------------------------------------------
NORTH AMERICA:
Revenue
Alamo $ 311.4 $ 316.3 -1.5%
National 345.2 352.5 -2.1%
--------- --------- ---------
Total Revenue(1) $ 656.6 $ 668.8 -1.8%
Key Operating Statistics-
North America
Alamo revenue per day $ 34.79 $ 36.12 -3.7%
National revenue per day 37.37 39.44 -5.2%
--------- --------- ---------
Total North American
revenue per day $ 36.09 $ 37.77 -4.4%
Alamo charge days (1) 8.9 8.8 2.2%
National charge days (1) 9.0 8.6 4.0%
--------- --------- ---------
Total North American
charge days (1) 17.9 17.4 3.1%
North American
utilization 77.2% 76.8% 0.4%
ALAMO LOCAL MARKET 2000 1999 % Change
----------------------------------------
Revenue (1) $ 67.5 $ 74.5 -9.4%
Key Operating
Statistics-Alamo
Local Market:
Revenue per day $ 26.54 $ 24.98 6.2%
Charge days (1) 2.5 3.0 -14.7%
Utilization 76.5% 79.8% -3.3%
INTERNATIONAL 2000 1999 % Change
----------------------------------------
Revenue (1) $ 81.0 $ 92.0 -12.0%
Key Operating
Statistics-International:
Revenue per day $ 33.30 $ 37.73 -11.7%
Revenue per day, net
of foreign exchange
translation $ 37.76 $ 37.73 0.1%
Charge days (1) 2.4 2.4 -1.2%
Utilization 72.9% 69.5% 3.4%
Notes:
(1) amounts reflected in millions
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