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Car/Limo Rentals

 October 19, 1999
AVIS RENT A CAR REPORTS RECORD THIRD QUARTER

 Avis Rent A Car has reported record results for the quarter ended September 30, 1999.
On a historical basis, net income and diluted earnings per share for the three months ended September 30, 1999 were $39.4 million and $1.10 per share, respectively, representing increases of 31 percent and 33 percent, respectively, over the comparable period in 1998. EBITDA was $130.3 million, representing an increase of 111 percent over the comparable period in 1998. Revenue was $1,120.6 million, up 72 percent over the comparable period in 1998. The 1999 period includes the results of operations of PHH North America, PHH Europe and Wright Express ("Vehicle Management Services or VMS") which were acquired on June 30, 1999.
On a historical basis, net income and diluted earnings per share for the nine months ended September 30, 1999 were $81.8 million and $2.40 per share, respectively, representing increases of 37 percent and 41 percent, respectively, over the comparable period in 1998. The year to date results include a previously reported first quarter non-recurring $7.5 million pre-tax gain representing 13 cents per share on a diluted earnings per share basis, resulting from the curtailment of the Company's defined benefit plans. Net income and diluted earnings per share increased 30 percent and 34 percent, respectively, excluding the non-recurring gain. EBITDA was $223.4 million, representing an increase of 70 percent over the comparable period in 1998. Revenue was $2,325.0 million, an increase of 34 percent over the comparable period in 1998.
On a pro forma basis, revenue for the third quarter increased 6 percent and net income and diluted earnings per share increased 84 percent and 134 percent, respectively, over the comparable period in 1998. EBITDA increased 31 percent over the comparable period in 1998.
On a pro forma basis, revenue for the nine months ended September 30, 1999 increased 7 percent and net income and diluted earnings per share increased 75 percent and 103 percent, respectively, over the comparable period in 1998 excluding the aforementioned non-recurring gain. EBITDA increased 20 percent over the comparable period in 1998.
The operating results are presented on a pro forma basis to give effect to the acquisition of VMS as if it had occurred on January 1, 1998.
"Our third quarter results reflect the significant strength of the New Avis," said Kevin Sheehan, President of Corporate and Business Affairs. "The combination of VMS with Avis provides us with a steady base of predictable earnings. For the third quarter, we are pleased to have achieved a 33% increase in diluted earnings per share".
"We are excited about the progress made to date in exploiting the many growth opportunities amongst our businesses and will continue to push hard to optimize results for our shareholders for the remainder of 1999 and 2000".
Avis is one of the world's leading providers of comprehensive automotive transportation and vehicle management solutions, with strengths in car rental, vehicle leasing, and vehicle management services. Avis operates the second largest general-use car rental business in the world, with locations in the United States, Canada, Australia, New Zealand and the Latin American Caribbean region. Avis operates the vehicle management and fuel card businesses through three separate units: PHH North America, PHH Europe and Wright Express. The services of these units consist of vehicle leasing and a broad range of vehicle related fee based services. The Company manages a fleet of approximately 1 million vehicles and has over 4 million fuel and maintenance cards outstanding. Annually, the Company generates over $4 billion in total revenue.
Visit: http://www.avis.com