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AGENCY RENT-A-CAR REPORTS YEAR END EARNINGS

 CLEVELAND, April 15 /PRNewswire/ -- Agency Rent-A-Car, Inc. (NASDAQ: AGNC), the nation's leading automobile insurance replacement company, today reported earnings of $19,080,000, or $.75 per share on revenues of $331,712,000 for the fiscal year ended Jan. 31, 1993, prior to a special charge of $2,274,000 after tax or $.09 per share as a result of ceasing operations in certain markets. This compared with net income of $17,184,000 or $.68 per share on revenues of $278,232,000 for the prior year.
 The special charge reflects a one-time decision to cease operations in New York state and certain metropolitan markets in the states of California and Maryland due to the adverse liability trends in those markets. The special charge reduced reported net income to $16,806,000 or $.66 per share.
 Partially due to the decision to withdraw from selected markets and reassessment of adverse liability experiences, the company adjusted its claims liability reserving practices to a more conservative actuarially determined method versus its previous practice of reserving claims based on a case-by-case review method.
 The change to an actuarial method of calculating claims liability combined with a change in recording claims related and certain other expenses resulted in a restatement. Reported earnings of $17,184,000 or $.68 per share for fiscal 1992 were unaffected by the restatement. Fiscal year 1991 earnings were restated to $6,480,000 or $.25 per share from a reported $13,726,000 or $.53 per share. In addition, a cumulative adjustment to retained earnings of $19,849,000 for these changes was recorded at Feb. 1, 1990, for all prior periods. The company also elected to accelerate adoption of SFAS No. 109 "Accounting for Income Taxes" which resulted in a $2,100,000 cumulative charge to retained earnings for all years prior to fiscal 1991. This change had no affect on reported earnings for fiscal 1993, 1992 and 1991.
 The company achieved record revenues of $331,712,000 in fiscal year 1993. Rental operations accounted for $282,421,000 with the remainder of revenue being generated from the sale of used cars through the company's retail sales division Agency Auto Sales. Agency Auto Sales' revenue growth was due to expansion of the number of used car operations.
 Terry W. Holt, president and chief executive officer of the company, said, "Fiscal 1993 was encouraging, as fleet utilization once again exceeded 90 percent on average for the year." He added that "Rental rates have strengthened throughout the first quarter of fiscal 1994 and prospects for continued rental rate increases look promising."
 Earnings before the special charge for the fourth quarter of fiscal 1993 were $4,246,000 or $.17 per share vs. $.17 per share on net income of $4,239,000 for fiscal year 1992. The special charge of $.09 per share or $2,274,000 recorded in the fourth quarter of fiscal 1993 lowered reported net income to $1,972,000 or $.08 per share. Revenues for the period increased from $72,178,000 to $79,278,000.
 Primarily as a result of the change in the method of calculating claims liability and a change in recording other claims-related expenses, quarterly earnings previously reported in fiscal 1993 were restated to $3,664,000, $6,310,000 and $4,860,000 from $3,219,000, $5,819,000 and $4,341,000 for the first, second and third quarters, respectively. This resulted in earnings per share of $.14, $.25 and $.19 vs. previously reported earnings per share of $.13, $.23 and $.17 for the first, second and third quarters, respectively.
 Sam J. Frankino, founder and chairman of the company, said, "Our risk management initiatives have been tremendously successful with first quarter claim reports down significantly from previous years." He added, "The company will continue to utilize actuarially determined claims reserves in the future enabling management to more rapidly monitor emerging liability trends."
 Frankino continued, "Our strong balance sheet and excellent cash position will enable the company to accommodate these changes and allow management to focus with more confidence on our primary goal of increasing profitability."
 Agency Rent-A-Car, founded in 1969, is entering its 24th successful year of providing temporary replacement vehicles to the motoring public whose own personal vehicle is out of service as a result of theft, damage or mechanical failure. With operations throughout the continental United States and selected Canadian provinces, the company's office network is serviced by the dedicated efforts of some 2,900 employees.
 AGENCY RENT-A-CAR, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (Thousands of Dollars, Except Per Share Amounts)
 THREE MONTHS ENDED TWELVE MONTHS ENDED
 JANUARY 31, JANUARY 31,
 1993 1992 1993 1992
 REVENUE
 Automobile rentals $71,957 $68,325 $282,421 $269,003
 Dealership and related 7,321 3,853 49,291 9,229
 Total 79,278 72,178 331,712 278,232
 COSTS AND EXPENSES
 Cost of goods sold and
 operating expenses:
 Rental operations 29,718 28,784 116,512 116,927
 D0 80,195 73,229
 Selling, general and
 administrative 13,569 11,432 48,715 42,713
 Interest 1,580 2,072 7,051 7,642
 Special charge 3,610 -- 3,610 --
 Total 76,130 65,230 304,888 250,062
 INCOME BEFORE INCOME TAXES 3,148 6,948 26,824 28,170
 PROVISION FOR INCOME TAXES 1,176 2,709 10,018 10,986
 NET INCOME $ 1,972 $ 4,239 $ 16,806 $ 17,184
 EARNINGS PER SHARE $ .08 $ .17 $ .66 $ .68
 WEIGHTED AVERAGE NUMBER OF
 OF SHARES OUTSTANDING
 (000's) 25,389 25,401 25,443 25,401
 -0- 4/15/93
 /CONTACT: Peter T. Zackaroff, executive vice president/corporate secretary of Agency Rent-A-Car, Inc., 216-349-1000/
 (AGNC)


CO: Agency Rent-A-Car, Inc. ST: Ohio IN: SU: ERN

DA -- CL007 -- 6012 04/15/93 08:10 EDT
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Date:Apr 15, 1993
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