EXHIBIT 99.1
[LOGO ANC RENTAL CORPORATION]
FINANCIAL CONTACT: KATHI HYLE
SENIOR VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER
954-320-6267
ANCINVESTORRELATIONS@ANCRENTAL.COM
MEDIA CONTACT: CHERYL BUDD
SENIOR VICE PRESIDENT
CORPORATE COMMUNICATIONS
954-320-4025
BUDDC@ANCRENTAL.COM
FOR IMMEDIATE RELEASE
- ---------------------
ANC RENTAL CORPORATION REPORTS A 229% IMPROVEMENT IN THIRD QUARTER
OPERATING INCOME BEFORE NON-RECURRING TRANSITION COSTS
FORT LAUDERDALE, FLORIDA (OCTOBER 25, 2000) - ANC Rental
Corporation (Nasdaq: ANCX) today reported operating income, before
non-recurring transition costs, of $100.3 million for the three months
ended September 30, 2000 compared to $30.5 million last year, an increase
of 229%. The reported results include $2.0 million of non-recurring
transition costs associated with ANC Rental Corporation's previously
announced consolidation plan. Operating income for the three-month period
including these charges was $98.3 million, an increase of 222% when
compared to last year.
Revenue for the three months ended September 30, 2000 was
$1,005.7 million compared to $1,023.3 million last year, a decrease of
1.7%. Net income for the three months ended September 30, 2000 was $51.0
million compared to $18.4 million in the prior year, an increase of 177%.
Diluted earnings per share for the three months ended September 30, 2000
was $1.10 versus $.41 per share in the prior year, an increase of $.69 per
share or 168%.
Commenting on ANC Rental Corporation's third quarter performance,
President and Chief Executive Officer Michael S. Karsner said, "In less
than two quarters as an independent company, we have made significant
strides in the financial performance of our Company. Our focus on cost
reductions and improved efficiency enabled us to achieve this operating
performance. These results reflect continued progress toward the long-term
business strategies we established for ourselves when we became independent
earlier this year."
For the nine months ended September 30, 2000, the Company
reported operating income, before non-recurring transition costs, of $110.5
million compared to $47.0 million last year, an increase of 135%. The
reported results include $17.7 million of non-recurring transition costs
associated with ANC Rental Corporation's previously announced consolidation
plan. Operating income for the nine-month period including these charges
was $92.8 million, an increase of 97% when compared to last year. Revenue
for the nine months ended September 30, 2000 was $2,726.9 million, compared
to $2,707.1 million last year, an increase of .7%. Net income for the nine
months ended September 30, 2000 was $42.0 million compared to $24.5 million
in the prior year, an increase of 71%. Diluted earnings per share for the
nine months ended September 30, 2000 was $.92 versus $.54 per share in the
prior year, an increase of $.38 per share or 70%.
The Company expects that pricing in the U.S. airport markets will
remain competitive in the fourth quarter with revenue per day expected to
be 2% to 3% below last year. Volume in the U.S. airport market during the
same period is expected to increase 2% to 3%. The Company anticipates its
operating income for the fourth quarter to be between breakeven and a loss
of $10 million. Diluted earnings per share for the full year is expected to
range between $.59 and $.72 per share or when adjusted to exclude the
after-tax effect of non-recurring transition expenses, between $.83 and
$.96 per share. In the outlook for 2001, consolidated revenue per day is
expected to be flat to up 1% over 2000 levels and volume is expected to
grow 3% to 4%. Revenue per day growth in 2001 is more likely to occur in
the second half of the year. These assumptions yield diluted earnings per
share for the full year of between $1.00 and $1.15 per share.
ANC Rental Corporation, headquartered in Fort Lauderdale, is one
of the world's largest car rental companies with annual revenue of
approximately $3.5 billion in 1999. ANC Rental Corporation, the parent
company of Alamo, National, and CarTemps has more than 3,000 locations in
69 countries and employs approximately 22,000 associates worldwide.
Certain statements and information included in this press release
constitute "forward-looking statements" within the meaning of the Federal
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the
Company to be materially different from any future results, performance or
achievements expressed or implied in such forward-looking statements.
Additional discussion of factors that could cause the actual results to
differ materially from management's projection, forecasts, estimates and
expectations is contained in the Company's Registration Statement on Form
10 and other SEC filings.
ANC RENTAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
($ in millions except per share amounts)
------------------------------------------
Three months ended September 30,
------------------------------------------
2000 % 1999 %
---- - ---- -
Revenue:
Alamo $ 419.5 41.7 $ 414.4 40.5
National 425.7 42.3 433.4 42.4
------- ----- ------- -----
North America 845.2 84.0 847.8 82.9
Cartemps USA 69.1 6.9 75.1 7.3
International 91.4 9.1 100.4 9.8
------- ----- ------- -----
1,005.7 100.0 1,023.3 100.0
------- ----- ------- -----
Operating Expenses 737.1 73.3 761.3 74.4
------- ----- ------- -----
Gross margin 268.6 26.7 262.0 25.6
SG & A 165.8 16.5 229.0 22.4
Amortization of intangibles 2.5 0.2 2.5 0.2
------- ----- ------- -----
Operating income before
non-recurring transition costs 100.3 10.0 30.5 3.0
Non-recurring transition costs 2.0 0.2 - -
------- ----- ------- -----
Operating income 98.3 9.8 30.5 3.0
Interest expense, net (14.5) (1.5) (2.7) (0.3)
Other income / (expense) (0.1) - 1.0 0.1
------- ----- ------- -----
Income before tax 83.7 8.3 28.8 2.8
Taxes 32.7 3.2 10.4 1.0
------- ----- ------- -----
Net income $ 51.0 5.1 $ 18.4 1.8
======= ===== ======= =====
Earnings per share:
Basic $ 1.13 $ 0.41
Fully Diluted $ 1.10 $ 0.41
WEIGHTED AVERAGE SHARES:
BASIC 45.1 45.1
FULLY DILUTED 46.3 45.1
ANC RENTAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
($ In millions except per share amounts)
------------------------------------------------------
Nine months ended September 30,
------------------------------------------------------
2000 % 1999 %
---- - ---- -
Revenue:
Alamo $ 1,104.7 40.5 $ 1,067.0 39.4
National 1,147.1 42.1 1,153.5 42.6
--------- ----- --------- -----
North America 2,251.8 82.6 2,220.5 82.0
Cartemps USA 207.0 7.6 208.2 7.7
International 268.1 9.8 278.4 10.3
--------- ----- --------- -----
2,726.9 100.0 2,707.1 100.0
--------- ----- --------- -----
Operating expenses 2,073.1 76.0 2,073.7 76.6
--------- ----- --------- -----
Gross margin 653.8 24.0 633.4 23.4
SG & A 535.8 19.6 579.0 21.4
Amortization of intangibles 7.5 0.3 7.4 0.3
--------- ----- --------- -----
Operating income before
Non-recurring transition costs 110.5 4.1 47.0 1.7
Non-recurring transition costs 17.7 0.7 - -
--------- ----- --------- -----
Operating income 92.8 3.4 47.0 1.7
Interest expense, net (20.9) (0.8) (9.8) (0.3)
Other income / (expense) (3.0) (0.1) 1.1 -
--------- ----- --------- -----
Income before tax 68.9 2.5 38.3 1.4
Taxes 26.9 1.0 13.8 0.5
--------- ----- --------- -----
Net income $ 42.0 1.5 $ 24.5 0.9
========= ===== ========= =====
Earnings per share:
Basic $ 0.93 $ 0.54
Fully Diluted $ 0.92 $ 0.54
WEIGHTED AVERAGE SHARES:
Basic 45.1 45.1
Fully Diluted 45.5 45.1
ANC RENTAL CORPORATION - SUPPLEMENTAL DATA (UNAUDITED)
----------------------------------------------------
For the three months ended September 30,
----------------------------------------------------
2000 1999 % CHANGE
---- ---- --------
Revenue (1) $ 1,005.7 $ 1,023.3 -1.7%
KEY OPERATING STATISTICS
------------------------
2000 1999 % CHANGE
---- ---- --------
Revenue per day $ 36.42 $ 36.31 0.3%
Revenue per day, net of
Foreign exchange translation $ 36.73 $ 36.31 1.2%
Charge days (1) 27.2 27.7 -1.8%
Utilization 81.6% 82.3% -0.7%
SEPTEMBER 30, DECEMBER 30, SEPTEMBER 30,
BALANCE SHEET DATA (1) 2000 1999 1999
----------------------- ---- ---- ----
Cash $ 42.3 $ 17.4 $ 62.3
Revenue earning vehicles $ 5,232.8 $ 4,501.3 $ 5,221.6
Revenue earning vehicle
Debt $ 4,668.2 $ 4,531.6 $ 5,169.5
Other debt $ 258.0 $ 107.4 $ 106.1
Shareholders' equity $ 934.2 $ 726.6 $ 800.7
-----------------------------------------
OTHER DATA (1) For the three months ended September 30,
- -------------- -----------------------------------------
2000 1999
---- ----
Revenue earning vehicle net
Depreciation, interest
and other $ 376.6 $ 381.4
Non-vehicle depreciation
and amortization $ 32.2 $ 23.6
Capital expenditures $ 27.2 $ 47.3
-----------------------------------------
For the nine months ended September 30,
-----------------------------------------
2000 1999
---- ----
Revenue earning vehicle net
Depreciation, interest
and other $ 1,011.5 $ 1,024.4
Non-vehicle depreciation
and amortization $ 80.8 $ 61.6
Capital expenditures $ 68.6 $ 150.3
NOTES:
- -----
(1) amounts reflected in millions
DIVISIONAL INFORMATION- SUPPLEMENTAL DATA (UNAUDITED)
-----------------------------------------------------
NORTH AMERICA
- -------------
--------------------------------------------------
For the three months ended September 30,
--------------------------------------------------
2000 1999 % CHANGE
---- ---- --------
REVENUE (1)
ALAMO $ 419.5 $ 414.4 1.2%
NATIONAL 425.7 433.4 -1.8%
------- ------- -----
TOTAL $ 845.2 $ 847.8 -0.3%
======= ======= =====
Key Operating Statistics-North America
--------------------------------------
Alamo revenue per day $ 37.07 $ 37.12 -0.1%
National revenue per day $ 38.85 $ 38.38 1.2%
North America revenue
per day $ 37.93 $ 37.74 0.5%
Alamo charge days (1) 11.3 11.1 1.6%
National charge days (1) 10.6 10.9 -2.4%
------- -------
North America charge
days (1) 21.9 22.0 -0.5%
======= =======
North American
Utilization 83.7% 83.7% --
CARTEMPS USA
- ------------
---------------------------------------------
For the three months ended September 30,
---------------------------------------------
2000 1999 % CHANGE
---- ---- --------
Revenue (1) $ 69.1 $ 75.1 -8.0%
Key Operating Statistics-Cartemps USA
-------------------------------------
Revenue per day $ 26.36 $ 25.03 5.3%
Charge days (1) 2.6 3.0 -12.6%
Utilization 75.0% 82.0% -7.0%
INTERNATIONAL
- -------------
-----------------------------------------
For the three months ended September 30,
-----------------------------------------
2000 1999 % CHANGE
---- ---- --------
Revenue (1) $ 91.4 $ 100.4 -9.0%
Key Operating Statistics-International
--------------------------------------
Revenue per day $ 33.79 $ 37.17 -9.1%
Revenue per day, net
of foreign exchange
translation $ 36.72 $ 37.17 -1.2%
Charge days (1) 2.6 2.7 -1.5%
Utilization 73.1% 72.6% 0.5%
NOTES:
- -----
(1) amounts reflected in millions