FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
November 12, 2004
For the nine months period ended September 30, 2004
LOCALIZA RENT A CAR S.A.
TOTAL FLEET S.A.
LOCALIZA FRANCHISING S.A.
PRIME PRESTADORA DE SERVICOS S.A.
LOCALIZA MASTER FRANCHISEE ARGENTINA S.A.
(Translation of registrant's name into English)
Avenida Bernardo Monteiro, 1563
Funcionarios 30150-902
Belo Horizonte, Minas Gerais, Brazil
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
Form 20-F __X__ Form 40-F ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1):
Yes ____ No __X__
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):
Yes ____ No __X__
Indicate by check mark whether by furnishing the information contained in this
Form, the Registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934:
Yes ____ No __X__
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): N/A
The information contained in this current report on Form 6-K is incorporated by
reference into the registration statement on Form F-3 filed with the Securities
and Exchange Commission by Localiza Rent a Car S.A. and its co-registrants,
File No.333-13852.
<page>
TABLE OF CONTENTS
Item
Localiza Rent a Car S.A . and subsidiaries
1. Consolidated Balance Sheets - September 30, 2003 and 2004
2. Consolidated Statements of Income for the nine months ended September 30,
2003 and 2004
3. Summary Financial Data by Business Segment for the nine months ended
September 30, 2003 and 2004
4. Selected Historical Financial and Other Data - 3Q2003, 3Q2004, nine months
ended September 30, 2003 and 2004
5. Signatures
LOCALIZA RENT A CAR S.A. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - SEPTEMBER 30, 2003 AND 2004
( Stated in thousands of Brazilian Reais )
ASSETS
( Unaudited )
September 30,
-------------------
2003 2004
------- -------
CURRENT ASSETS:
Cash and cash equivalents 200,369 181,018
Accounts receivable, net 42,466 49,594
Revenue-earning vehicles, net 209,725 372,030
Deferred income tax and social contribution 1,619 1,859
Other 21,855 7,041
------- -------
476,034 611,542
------- -------
NONCURRENT ASSETS:
Revenue-earning vehicles, net 91,630 120,930
Escrow deposits 22,413 22,272
Deferred income tax and social contribution 13,741 13,609
Other 1,658 461
------- -------
129,442 157,272
------- -------
PROPERTY AND EQUIPMENT, NET 16,768 22,789
------- -------
GOODWILL 4,704 4,704
------- -------
Total assets 626,948 796,307
======= =======
LOCALIZA RENT A CAR S.A. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - SEPTEMBER 30, 2003 AND 2004
( Stated in thousands of Brazilian Reais )
LIABILITIES AND SHAREHOLDERS' EQUITY
( Unaudited )
September 30,
--------------------
2003 2004
------- -------
CURRENT LIABILITIES:
Loans and financing 7,169 38,455
Interest payable on long-term debt 11,010 10,766
Accounts payable 12,551 93,143
Payroll and related charges 9,593 11,519
Income tax and social contribution 21,561 1,961
Taxes, other than on income 1,449 2,231
Deferred income tax and social contribution 7,423 10,906
Advances from customers 1,482 1,166
Other 865 1,590
------ -------
73,103 171,737
------ -------
NONCURRENT LIABILITIES:
Long-term debt 216,039 211,251
Unrealized loss on derivatives 15,731 38,304
Reserve for contingencies 44,285 54,861
Deferred income tax and social contribution 11,677 10,080
Other 1,795 1,921
------- -------
289,527 316,417
------- -------
MINORITY INTEREST: 54 129
------- -------
SHAREHOLDERS' EQUITY:
Capital Stock 135,723 165,723
Accumulated earnings 128,541 142,301
------- -------
264,264 308,024
------- -------
Total liabilities and shareholders' equity 626,948 796,307
======= =======
LOCALIZA RENT A CAR S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2004
( Stated in thousands of Brazilian Reais )
( Unaudited )
Nine months ended
September 30,
-------------------------
2003 2004
-------- -------
NET REVENUES:
Car rental 113,685 140,045
Fleet management 90,556 95,752
Franchising 4,015 4,872
Used car sales 181,635 202,621
------- -------
Total net revenues 389,891 443,290
------- -------
EXPENSES AND COSTS:
Direct operating (67,502) (68,841)
Cost of used car sales (148,548) (161,395)
Taxes on revenues (13,486) (13,147)
Selling, general, administrative and other (45,841) (49,195)
Depreciation of vehicles (29,766) (12,940)
Other depreciation and amortization (2,822) (3,474)
-------- --------
Total operating expenses and costs (307,965) (308,992)
-------- --------
Operating income 81,926 134,298
FINANCIAL (EXPENSE) INCOME, NET 43,343 (26,243)
OTHER NONOPERATING INCOME, NET 84 160
------- -------
Income before taxes and minority interest 125,353 108,215
------- -------
INCOME TAX AND SOCIAL CONTRIBUTION:
Current (21,560) (31,146)
Deferred (21,272) (25)
------- -------
(42,832) (31,171)
------- -------
Income before minority interest 82,521 77,044
MINORITY INTEREST (104) (113)
------ ------
Net income 82,417 76,931
====== ======
OTHER COMPREHENSIVE INCOME:
Total change in market value of marketable securities 257 -
Reclassification adjustment of realized (gains) losses 463 -
------ ------
Unrealized gains (losses) on marketable securities 720 -
------ ------
Deferred income tax and social contribution
on unrealized gains (losses) (245) -
------ ------
Other comprehensive income 475 -
------ ------
Comprehensive income 82,892 76,931
====== ======
LOCALIZA RENT A CAR S.A. AND SUBSIDIARIES
SUMMARY FINANCIAL DATA BY BUSINESS SEGMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2004
( Stated in thousands of Brazilian Reais )
( Unaudited )
Nine months ended September 30,
-------------------------------
2003 2004
------- -------
NET REVENUES:
Car rental 113,685 140,045
Fleet management 90,556 95,752
Franchising 4,015 4,872
Used car sales 181,635 202,621
------- -------
389,891 443,290
------- -------
DEPRECIATION AND AMORTIZATION:
Car rental (10,033) (851)
Fleet management (19,733) (12,089)
Other (2,822) (3,474)
------ ------
(32,588) (16,414)
------ ------
OPERATING INCOME:
Car rental 34,345 67,583
Fleet management 38,108 53,477
Franchising 2,040 2,200
Used car sales 19,161 26,252
Corporate expenses (8,906) (11,740)
Other depreciation and amortization (2,822) (3,474)
------ -------
81,926 134,298
------ -------
OPERATING MARGIN:
Car rental 30.2% 48.3%
Fleet management 42.1% 55.8%
Franchising 50.8% 45.2%
Used car sales 10.5% 13.0%
Total 21.0% 30.3%
<table>
LOCALIZA RENT A CAR S A AND SUBSIDIARIES
SELECTED HISTORICAL FINANCIAL AND OTHER DATA
( Stated in thousands of Brazilian Reais unless otherwise indicated )
( Unaudited )
<s> <c> <c> <c> <c>
Nine months Nine months
ended ended
September September
3 Q 2003 3 Q 2004 2003 2004
-------- -------- ------------ ------------
STATEMENT OF OPERATIONS DATA:
Net revenues:
Car rental 35,564 51,650 113,685 140,045
Fleet management 32,885 31,043 90,556 95,752
------- ------- ------- -------
Total vehicle rental 68,449 82,693 204,241 235,797
Used car sales 63,914 68,612 181,635 202,621
Franchising 1,316 1,644 4,015 4,872
------- ------- ------- -------
Total net revenues 133,679 152,949 389,891 443,290
------- ------- ------- -------
Direct operating costs and expenses:
Car rental (14,656) (16,275) (44,100) (44,898)
Fleet management (7,232) (5,371) (21,628) (21,550)
------- ------- ------- -------
Total vehicle rental (21,888) (21,646) (65,728) (66,448)
Cost of used car sales (52,518) (53,939) (148,548) (161,395)
Franchising (748) (765) (1,774) (2,393)
Taxes on revenues (3,689) (5,034) (13,486) (13,147)
------- ------- ------- -------
Total direct operating costs and expenses (78,843) (81,384) (229,536) (243,383)
------- ------- ------- -------
Gross profit 54,836 71,565 160,355 199,907
Selling, general, administrative expenses and other:
Advertising, promotion and selling:
Car rental (5,159) (6,814) (16,548) (18,381)
Fleet management (2,235) (1,515) (6,840) (4,787)
Used car sales (4,635) (5,017) (13,512) (14,286)
Franchising (15) 3 (35) (1)
------ ------- ------- -------
Total adverstising, promotion and selling (12,044) (13,343) (36,935) (37,455)
General and administrative expenses (2,942) (3,764) (8,837) (10,372)
Other (25) (436) (69) (1,368)
------ ------- ------- ------
Total selling, general, administrative and other expenses (15,011) (17,543) (45,841) (49,195)
------ ------- ------- ------
Depreciation expenses:
Vehicle depreciation expenses:
Car rental (1,385) (3,231) (10,033) (851)
Fleet management (8,374) (8,259) (19,733) (12,089)
------ ------ ------ ------
Total vehicle depreciation expenses (9,759) (11,490) (29,766) (12,940)
Non-Vehicle depreciation and amortization expenses (962) (1,244) (2,822) (3,474)
------ ------ ------ ------
Total depreciation and amortization expenses (10,721) (12,734) (32,588) (16,414)
------ ------ ------ -------
Operating income 29,104 41,288 81,926 134,298
------ ------ ------ -------
Financial Interest:
Expense (7,328) (8,534) (22,586) (28,298)
Income 11,174 6,997 27,281 23,746
Taxes on financial revenues (519) (227) (1,421) (1,324)
Monetary variation and exchange loss (3,840) 19,021 44,715 2,943
Monetary variation and exchange gain (3) (46) (483) (19)
Realized losses on sale of marketable securities - - (463) -
Unrealized gains (losses) on derivatives 4,622 (22,559) (3,700) (23,291)
------ ------ ------- ------
Financial interest (expense) income, net 4,106 (5,348) 43,343 (26,243)
------ ------ ------- -------
Nonoperating income, net 62 147 84 160
------ ------ ------- -------
Income before taxes and minority interest 33,272 36,087 125,353 108,215
Income tax and social contribution (11,286) (7,173) (42,832) (31,171)
Minority interest (27) (43) (104) (113)
------ ------ ------ ------
Net income 21,959 28,871 82,417 76,931
====== ====== ====== ======
OTHER COMPREHENSIVE INCOME - - 475 -
------ ------ ------ ------
Comprehensive income 21,959 28,871 82,892 76,931
====== ====== ====== ======
</table>
<table>
LOCALIZA RENT A CAR S.A.AND SUBSIDIARIES
SELECTED HISTORICAL FINANCIAL AND OTHER DATA
( Stated in thousands of Brazilian Reais unless otherwise indicated )
( Unaudited )
<s> <c> <c> <c> <c>
Nine months Nine months
ended ended
September September
STATEMENT OF OPERATIONS DATA 3 Q 2003 3 Q 2004 2003 2004
-------- -------- ----------- -----------
OTHER DATA :
EBITDA 39,825 54,022 114,514 150,712
Vehicle Depreciation Expense (9,759) (11,490) (29,766) (12,940)
------ ------- ------- -------
Adjusted EBITDA 30,066 42,532 84,748 137,772
====== ======= ======= =======
</table>
<table>
LOCALIZA RENT A CAR S.A. AND SUBSIDIARIES
SELECTED HISTORICAL FINANCIAL AND OTHER DATA
( Stated in thousands of Brazilian Reais unless otherwise indicated )
( Unaudited )
<s> <c> <c> <c> <c>
Nine months Nine months
ended ended
September September
SELECTED OPERATING DATA: 3 Q 2003 3 Q 2004 2003 2004
-------- -------- ----------- -----------
Fleet at the end of period:
Car Rental 7,981 16,015 7,981 16,015
Fleet Management 9,321 8,233 9,321 8,233
------ ------ ------ ------
Total 17,302 24,248 17,302 24,248
------ ------ ------ ------
Average Operating Fleet Age (months)
Car Rental 6.4 5.2 6.5 5.7
Fleet Management 21.8 15.5 21.8 17.1
Average Operating Fleet Age (months) 15.0 9.2 14.9 10.8
Number of Rental Days:
Car Rental 418,835 646,627 1,369,144 1,717,645
(-)Rental Days to Total Fleet's replacement service (5,868) (3,590) (20,255) (18,699)
-------- ------- --------- ---------
Total 412,967 643,037 1,348,889 1,698,946
Fleet Management 761,370 659,790 2,375,880 2,100,510
Utilization Rates:
Car Rental 65.10% 66.61% 62.10% 65.56%
Fleet Management 96.07% 95.39% 95.05% 95.99%
Numbers of Cars Purchased:
Car Rental 1,040 7,206 3,948 10,353
Fleet Management 845 1,205 1,935 2,684
----- ----- ----- ------
Total 1,885 8,411 5,883 13,037
----- ----- ----- ------
Average Purchase Price 27.99 21.11 22.30 21.79
Total Investment in Fleet 52,759.1 177,517.2 131,164.5 284,052.2
Numbers of Cars Sold:
Car Rental 2,747 2,551 8,349 6,888
Fleet Management 1,058 932 3,032 4,166
----- ----- ------ ------
Total 3,805 3,483 11,381 11,054
----- ----- ------ ------
Average Car Price 16.39 19.20 15.57 17.84
Depreciation per operating car...(R$) 2,470.9 2,520.2 2,289.6 976.7
Average Annual Revenue per operating car....(R$)
Car Rental 20,177.1 19,421.2 19,030.2 19,565.1
Fleet Management 14,874.6 16,062.6 12,958.7 15,639.5
Average Rental Revenue per Rental
Car per Day...........(R$)
Car Rental(deducted Total Fleet's replacement service) 86.12 80.32 84.28 82.43
Fleet Management 43.01 46.78 37.87 45.26
</table>
<page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
LOCALIZA RENT A CAR S.A.
By: /S/ Jose Salim Mattar Junior
Name:Jose Salim Mattar Junior
Title:President
By: /s/ Antonio Claudio Brandao Resende
Name:Antonio Claudio Brandao Resende
Title:Vice President
TOTAL FLEET S.A.
By: /S/ Jose Salim Mattar Junior
Name:Jose Salim Mattar Junior
Title:President
By: /s/ Antonio Claudio Brandao Resende
Name:Antonio Claudio Brandao Resende
Title:Vice President
LOCALIZA FRANCHISING S.A.
By: /S/ Jose Salim Mattar Junior
Name:Jose Salim Mattar Junior
Title:President
By: /s/ Antonio Claudio Brandao Resende
Name:Antonio Claudio Brandao Resende
Title:Vice President
PRIME PRESTADORA DE SERVICOS S.A.
By: /S/ Jose Salim Mattar Junior
Name:Jose Salim Mattar Junior
Title:President
By: /s/ Antonio Claudio Brandao Resende
Name:Antonio Claudio Brandao Resende
Title:Vice President
LOCALIZA MASTER FRANCHISEE ARGENTINA S.A.
By: /S/ Leonardo Federici Guedes
Name:Leonardo Federici Guedes
Title:President
By: /s/ Arisitides Luciano de Azevedo Newton
Name:Arisitides Luciano de Azevedo Newton
Title:Substitute Officer
Dated: November 12, 2004