CENDANT CORPORATION
SEGMENT SUMMARY
($ in millions)
- ----------------------------------------------------------------------------------------------------------------------------------
1st Quarter 2nd Quarter
--------------------------------------- ---------------------------------------
1997 1998(2) % 1997 1998(2) %
--------- --------- -- --------- --------- --
Revenue
Travel $ 327.0 $ 361.5 11% $ 333.1 $ 489.4 47%
Real Estate 191.1 279.1 46% 246.0 354.9 44%
Alliance Marketing 353.9 372.0 5% 332.3 377.2 14%
Other 81.7 116.8 43% 88.2 56.4 -36%
--------- --------- -- --------- --------- --
Total Continuing Ops 953.7 1,129.4 18% 999.6 1,277.9 28%
Discontinued Ops 137.3 158.7 16% 127.9 204.8 60%
--------- --------- -- --------- --------- --
Total Cendant $ 1,091.0 $ 1,288.1 18% $ 1,127.5 $ 1,482.7 32%
========= ========= == ========= ========= ==
EBITDA(1)
Travel $ 134.4 $ 179.2 33% $ 143.6 $ 200.2 39%
Real Estate 60.9 123.1 102% 100.6 176.7 76%
Alliance Marketing 47.1 4.6 -90% 25.2 (16.0) -163%
Other 15.6 77.3 396% 35.6 15.5 -56%
--------- --------- -- --------- --------- --
Total Continuing Ops 258.0 384.2 49% 305.0 376.4 23%
Discontinued Ops 17.5 (3.0) -117% 6.2 28.1 353%
--------- --------- -- --------- --------- --
Total Cendant $ 275.5 $ 381.2 38% $ 311.2 $ 404.5 30%
========= ========= == ========= ========= ==
3rd Quarter 4th Quarter Total
--------------------------------------- --------- ---------
1997 1998(2) % 1997 1997
--------- --------- -- --------- ---------
Revenue
Travel $ 354.9 $ 564.4 59% $ 322.2 $ 1,337.2
Real Estate 281.3 360.0 28% 268.6 987.0
Alliance Marketing 437.6 499.1 14% 446.5 1,570.3
Other 112.7 34.3 -70% 62.9 345.5
--------- --------- -- --------- ---------
Total Continuing Ops 1,186.5 1,457.8 23% 1,100.2 4,240.0
Discontinued Ops 142.0 184.6 30% 235.0 642.2
--------- --------- -- --------- ---------
Total Cendant $ 1,328.5 $ 1,642.4 24% $ 1,335.2 $ 4,882.2
========= ========= == ========= =========
EBITDA(1)
Travel $ 150.5 $ 209.1 39% $ 132.7 $ 561.2
Real Estate 130.8 197.0 51% 112.1 404.4
Alliance Marketing 73.8 29.7 -60% 33.5 179.6
Other 57.9 (28.7) -150% (5.0) 104.1
--------- --------- -- --------- ---------
Total Continuing Ops 413.0 407.1 -1% 273.3 1,249.3
Discontinued Ops 11.4 (2.8) -125% 53.2 88.3
--------- --------- -- --------- ---------
Total Cendant $ 424.4 $ 404.3 -5% $ 326.5 $ 1,337.6
========= ========= == ========= =========
- --------------
(1) Earnings before interest, taxes, depreciation and amortization. Excludes
merger related costs and other unusual charges in 1997 and 1998, and
investigation related costs in 1998.
(2) The 1998 financial information is derived from unaudited financial
information. 1998 quarterly results are not necessarily indicative of
the financial results that may be expected for the year ending
December 31, 1998.
CENDANT CORPORATION
INCOME STATEMENT SUMMARY
($ in millions)
- ------------------------------------------------------------------------------------------------------------------------------
1st Quarter 2nd Quarter
------------------------------------- -------------------------------------
1997 1998(1) % 1997 1998(1) %
------- ------- -- ------- ------- --
Travel Segment
Lodging $ 89.8 $ 94.7 5% $ 108.1 $ 117.2 8%
Timeshare 93.8 106.3 13% 85.3 94.0 10%
Car Rental 34.5 45.1 31% 38.6 48.2 25%
Fleet Management 91.5 96.6 6% 79.2 96.0 21%
Other (NPC and Global Refund) 17.4 18.8 8% 21.9 134.0 509%
------- ------- -- ------- ------- --
Total revenue 327.0 361.5 11% 333.1 489.4 47%
======= ======= == ======= ======= ==
Real Estate Segment
Real Estate Franchise 55.4 84.3 52% 83.7 131.5 57%
Relocation Services 85.2 99.7 17% 102.7 110.2 7%
Mortgage Services 33.6 78.0 132% 42.5 94.0 121%
New Mover 16.8 17.1 2% 17.1 19.2 12%
------- ------- -- ------- ------- --
Total revenue 191.1 279.1 46% 246.0 354.9 44%
======= ======= == ======= ======= ==
Alliance Marketing Segment
Individual 167.7 171.9 2% 154.9 175.0 13%
Insurance/Wholesale 111.9 134.0 20% 118.7 136.8 15%
Lifestyle 74.3 66.1 -11% 58.7 65.4 11%
------- ------- -- ------- ------- --
Total revenue 353.9 372.0 5% 332.3 377.2 14%
======= ======= == ======= ======= ==
Other Segment 81.7 116.8 43% 88.2 56.4 -36%
======= ======= == ======= ======= ==
Discontinued Operations
Hebdo Mag 45.6 62.8 38% 48.9 74.4 52%
Software 91.7 95.9 5% 79.0 130.4 65%
------- ------- -- ------- ------- --
Total revenue $ 137.3 $ 158.7 16% $ 127.9 $ 204.8 60%
======= ======= == ======= ======= ==
(1) The 1998 financial information is derived from unaudited financial
information. 1998 quarterly results are not necessarily indicative of the
financial results that may be expected for the year ending December 31,
1998.
3rd Quarter 4th Quarter Total
--------------------------------------- ----------- -------
1997 1998(1) % 1997 1997
------- ------- -- ------- -------
Travel Segment
Lodging $ 124.5 $ 137.5 10% $ 101.5 $ 424.0
Timeshare 86.9 106.7 23% 80.3 346.3
Car Rental 41.4 47.0 14% 35.7 150.2
Fleet Management 73.9 94.8 28% 79.6 324.2
Other (NPC and Global Refund) 28.2 178.5 533% 25.1 92.6
------- ------- -- ------- -------
Total revenue 354.9 564.4 59% 322.2 1,337.2
======= ======= == ======= =======
Real Estate Segment
Real Estate Franchise 98.3 126.7 29% 97.2 334.6
Relocation Services 112.0 130.8 17% 101.6 401.5
Mortgage Services 51.6 79.9 55% 51.5 179.2
New Mover 19.4 22.6 17% 18.3 71.6
------- ------- -- ------- -------
Total revenue 281.3 360.0 28% 268.6 987.0
======= ======= == ======= =======
Alliance Marketing Segment
Individual 171.0 201.6 18% 178.6 672.2
Insurance/Wholesale 118.5 135.5 14% 133.5 482.6
Lifestyle 148.1 162.0 9% 134.4 415.5
------- ------- -- ------- -------
Total revenue 437.6 499.1 14% 446.5 1,570.3
======= ======= == ======= =======
Other Segment 112.7 34.3 -70% 62.9 345.5
======= ======= == ======= =======
Discontinued Operations
Hebdo Mag 51.3 65.2 27% 62.7 208.5
Software 90.7 119.4 32% 172.3 433.7
------- ------- -- ------- -------
Total revenue $ 142.0 $ 184.6 30% $ 235.0 $ 642.2
======= ======= == ======= =======
- --------------
(1) The 1998 financial information is derived from unaudited financial
information. 1998 quarterly results are not necessarily indicative of
the financial results that may be expected for the year ending
December 31, 1998.
CENDANT CORPORATION
TRAVEL SEGMENT REVENUE DRIVER ANALYSIS
(Revenue $ in millions)
- ---------------------------------------------------------------------------------------------------------------------------------
1st Quarter 2nd Quarter
------------------------------------- --------------------------------------
1997 1998(1) % 1997 1998(1) %
--------- --------- -- --------- --------- --
Lodging
Rooms 480,599 488,206 2% 488,145 496,706 2%
Royalty per Available Room $ 76.46 $ 79.70 4% $ 97.78 $ 101.27 4%
--------- --------- -- --------- --------- --
Total Royalty 36.7 38.9 6% 47.7 50.3 5%
Other 53.1 55.8 5% 60.4 66.9 11%
--------- --------- -- --------- --------- --
Total Revenue $ 89.8 $ 94.7 5% $ 108.1 $ 117.2 8%
========= ========= == ========= ========= ==
Timeshare
Number of Exchanges 475,086 492,436 4% 405,120 411,711 2%
Annual Number of Exchanges 1,900,344 1,969,744 4% 1,620,480 1,646,844 2%
Average Members 2,039,811 2,177,050 7% 2,049,972 2,186,424 7%
--------- --------- -- --------- --------- --
Total Units 3,940,155 4,146,794 5% 3,670,452 3,833,268 4%
Average Fee $ 20.47 $ 21.01 3% $ 20.11 $ 20.87 4%
--------- --------- -- --------- --------- --
Total Member/Exchange Fees 80.7 87.1 8% 73.8 80.0 8%
Other 13.1 19.2 47% 11.5 14.0 22%
--------- --------- -- --------- --------- --
Total Revenue $ 93.8 $ 106.3 13% $ 85.3 $ 94.0 10%
========= ========= == ========= ========= ==
Car Rental
Rental days 12,821,008 12,464,857 -3% 13,340,886 13,867,489 4%
Royalty per Rental day $ 1.79 $ 1.90 6% $ 1.84 $ 1.85 1%
--------- --------- -- --------- --------- --
Total Royalty 23.0 23.7 3% 24.5 25.7 5%
Other 11.5 21.4 86% 14.1 22.5 60%
--------- --------- -- --------- --------- --
Total Revenue $ 34.5 $ 45.1 31% $ 38.6 $ 48.2 25%
========= ========= == ========= ========= ==
Fleet Management
Number of Cars/Cards 2,660,407 3,877,657 46% 2,804,170 4,054,128 45%
Revenue per Car/Card $ 34.39 $ 24.91 -28% $ 28.24 $ 23.68 -16%
--------- --------- -- --------- --------- --
Total Revenue $ 91.5 $ 96.6 6% $ 79.2 $ 96.0 21%
========= ========= == ========= ========= ==
(1) The 1998 financial information is derived from unaudited financial
information. 1998 quarterly results are not necessarily indicative of the
financial results that may be expected for the year ending December 31,
1998.
3rd Quarter 4th Quarter Total
--------------------------------------- --------- ---------
1997 1998(1) % 1997 1997
--------- --------- -- --------- ---------
Lodging
Rooms 497,020 499,740 1% 503,183 492,254
Royalty per Available Room $ 115.09 $ 119.46 4% $ 79.45 $ 369.03
--------- --------- -- --------- ---------
Total Royalty 57.2 59.7 4% 40.0 181.7
Other 67.3 77.8 16% 61.5 242.3
--------- --------- -- --------- ---------
Total Revenue $ 124.5 $ 137.5 10% $ 101.5 $ 424.0
========= ========= == ========= =========
Timeshare
Number of Exchanges 406,936 419,725 3% 360,825 1,647,967
Annual Number of Exchanges 1,627,744 1,678,900 3% 1,443,300 1,647,967
Average Members 2,074,412 2,207,678 6% 2,089,700 2,155,795
--------- --------- -- --------- ---------
Total Units 3,702,156 3,886,578 5% 3,533,000 3,803,762
Average Fee $ 20.83 $ 21.64 4% $ 20.44 $ 79.86
--------- --------- -- --------- ---------
Total Member/Exchange Fees 77.1 84.1 9% 72.2 303.8
Other 9.8 22.6 131% 8.1 42.5
--------- --------- -- --------- ---------
Total Revenue $ 86.9 $ 106.7 23% $ 80.3 $ 346.3
========= ========= == ========= =========
Car Rental
Rental days 15,021,195 15,996,768 6% 12,506,732 53,689,821
Royalty per Rental day $ 1.82 $ 1.84 1% $ 1.89 $ 1.84
--------- --------- -- --------- ---------
Total Royalty 27.4 29.4 7% 23.7 98.6
Other 14.0 17.6 26% 12.0 51.6
--------- --------- -- --------- ---------
Total Revenue $ 41.4 $ 47.0 14% $ 35.7 $ 150.2
========= ========= == ========= =========
Fleet Management
Number of Cars/Cards 3,162,740 4,134,422 31% 3,215,953 2,960,817
Revenue per Car/Card $ 23.37 $ 22.93 -2% $ 24.75 $ 109.50
--------- --------- -- --------- ---------
Total Revenue $ 73.9 $ 94.8 28% $ 79.6 $ 324.2
========= ========= == ========= =========
- --------------
(1) The 1998 financial information is derived from unaudited financial
information. 1998 quarterly results are not necessarily indicative of
the financial results that may be expected for the year ending
December 31, 1998.
CENDANT CORPORATION
REAL ESTATE SEGMENT REVENUE DRIVER ANALYSIS
(Revenue $ in millions)
- -----------------------------------------------------------------------------------------------------------------------------------
1st Quarter 2nd Quarter
------------------------------------- -----------------------------------------
1997 1998(1) % 1997 1998(1) %
-------- -------- -- -------- -------- --
Real Estate Franchise
Closed sides Domestic 265,896 322,995 21% 402,386 498,893 24%
Average Price 118,362 135,445 14% 122,285 142,735 17%
Adj Royalty Rate (roy x comm) 0.15% 0.16% 0.01 0.15% 0.15% 0.00
-------- -------- -- -------- -------- --
Total Royalties 48.3 71.1 47% 74.6 108.7 46%
Other 7.1 13.2 86% 9.1 22.8 151%
-------- -------- -- -------- -------- --
Total Revenue $ 55.4 $ 84.3 52% $ 83.7 $ 131.5 57%
======== ======== == ======== ======== ==
Mortgage Services
Production Loan Closings (000's) $ 1,783 $ 4,615 159% $ 2,480 $ 6,576 165%
Avg Fee - Basis Points 107.6 116.4 8% 124.1 122.2 -2%
-------- -------- -- -------- -------- --
Production Fees 19.2 53.7 180% 30.8 80.4 161%
Avg Servicing Loan Portfolio $ 25,103 $ 30,908 23% $ 25,636 $ 34,004 33%
Avg Fee - Basis Points 5.8 7.6 31% 4.6 4.0 -13%
-------- -------- -- -------- -------- --
Service Fees 14.4 24.3 68% 11.7 13.6 16%
Total Revenue $ 33.6 $ 78.0 132% $ 42.5 $ 94.0 121%
======== ======== == ======== ======== ==
3rd Quarter 4th Quarter Total
-------------------------------------- -------- --------
1997 1998(1) % 1997 1997
-------- -------- -- -------- --------
Real Estate Franchise
Closed sides Domestic 438,120 540,981 23% 431,423 1,537,825
Average Price 131,285 146,366 11% 130,909 126,590
Adj Royalty Rate (roy x comm) 0.15% 0.15% (0.00) 0.15% 0.15%
-------- -------- -- -------- --------
Total Royalties 85.8 116.8 36% 85.2 293.9
Other 12.5 9.9 -21% 12.0 40.7
-------- -------- -- -------- --------
Total Revenue $ 98.3 $ 126.7 29% $ 97.2 $ 334.6
======== ======== == ======== ========
Mortgage Services
Production Loan Closings (000's) $ 3,547 $ 6,936 96% $ 3,907 $ 11,717
Avg Fee - Basis Points 98.7 111.9 13% 84.9 100.8
-------- -------- -- -------- --------
Production Fees 35.0 77.6 122% 33.2 118.2
Avg Servicing Loan Portfolio $ 27,074 $ 38,398 42% $ 28,999 $ 26,703
Avg Fee - Basis Points 6.1 0.5 -92% 6.3 22.9
-------- -------- -- -------- --------
Service Fees 16.6 2.3 -86% 18.3 61.0
Total Revenue $ 51.6 $ 79.9 55% $ 51.5 $ 179.2
======== ======== == ======== ========
- --------------
(1) The 1998 financial information is derived from unaudited financial
information. 1998 quarterly results are not necessarily indicative of
the financial results that may be expected for the year ending
December 31, 1998.