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
April 13, 2005
For the fiscal year ended December 31, 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 - December 31, 2003 and 2004
2. Consolidated Statements of Income for the years ended December 31,
2003 and 2004
3. Summary Financial Data by Business Segment for the years ended
December 31, 2003 and 2004
4. Selected Historical Financial and Other Data - 4Q2003, 4Q2004, years
ended December 31, 2003 and 2004
5. Reclassification of Certain Financial Statement Itens and Other Information
6. Signatures page
LOCALIZA RENT A CAR S.A. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - DECEMBER 31, 2003 AND 2004
( Stated in thousands of Brazilian Reais )
ASSETS
( Unaudited )
December 31,
-------------------
2003 2004
------- -------
CURRENT ASSETS:
Cash and cash equivalents 159,264 129,345
Accounts receivable, net 46,899 54,821
Revenue-earning vehicles, net 278,409 467,753
Deferred income tax and social contribution 2,909 2,043
Other 8,974 3,363
------- -------
496,455 657,325
------- -------
NONCURRENT ASSETS:
Revenue-earning vehicles, net 110,452 144,397
Escrow deposits 19,235 18,949
Deferred income tax and social contribution 12,486 13,865
Other 490 337
------- -------
142,663 177,548
------- -------
PROPERTY AND EQUIPMENT, NET 18,581 23,997
------- -------
GOODWILL 4,704 4,704
------- -------
Total assets 662,403 863,574
======= =======
LOCALIZA RENT A CAR S.A. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - DECEMBER 31, 2003 AND 2004
( Stated in thousands of Brazilian Reais )
LIABILITIES AND SHAREHOLDERS' EQUITY
( Unaudited )
December 31,
--------------------
2003 2004
-------- --------
CURRENT LIABILITIES:
Loans and financing 8,309 142,397
Short term debt - Senior Notes - 196,160
Interest payable - Senior Notes 5,410 4,971
Unrealized gain (loss) on derivatives - 64,068
Accounts payable 81,670 58,753
Payroll and related charges 11,562 13,315
Income tax and social contribution 954 1,793
Taxes, other than on income 4,576 2,380
Deferred income tax and social contribution 6,356 15,396
Advances from customers 4,847 5,579
Other 1,118 1,511
------- -------
124,802 506,323
------- -------
NONCURRENT LIABILITIES:
Loans and financing - 2,954
Long-term debt 213,512 -
Unrealized loss on derivatives 19,072 -
Reserve for contingencies 45,727 52,371
Deferred income and social contribution taxes 14,440 5,734
Other 1,617 2,680
------- -------
294,368 63,739
------- -------
MINORITY INTEREST: 17 153
------- -------
SHAREHOLDERS' EQUITY:
Capital Stock 153,693 169,723
Accumulated earnings 89,523 111,232
Cumulative other comprehensive income (loss) - 12,404
------- -------
243,216 293,359
------- -------
Total liabilities and shareholders' equity 662,403 863,574
======= =======
LOCALIZA RENT A CAR S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2004
( Stated in thousands of Brazilian Reais )
( Unaudited )
Year ended December 31,
-------------------------
2003 2004
-------- -------
NET REVENUES:
Car rental 155,291 197,098
Fleet management 120,309 127,822
Franchising 5,456 6,526
Used car sales 250,978 303,010
------- -------
Total net revenues 532,034 634,456
------- -------
EXPENSES AND COSTS:
Direct operating (97,924) (107,156)
Cost of used car sales (206,579) (238,807)
Taxes on revenues (16,337) (18,058)
Selling, general, administrative and other (58,963) (72,833)
Depreciation of vehicles (37,222) (18,557)
Other depreciation and amortization (3,841) (4,796)
-------- --------
Total operating expenses and costs (420,866) (460,207)
-------- --------
Operating income 111,168 174,249
FINANCIAL (EXPENSE) INCOME, NET 40,677 (43,016)
OTHER NONOPERATING (EXPENSE) INCOME, NET 97 207
------- -------
Income before taxes and minority interest 151,942 131,440
------- -------
INCOME TAX AND SOCIAL CONTRIBUTION:
Current (23,259) (40,943)
Deferred (22,937) 207
------- -------
(46,196) (40,736)
------- -------
Income before minority interest 105,746 90,704
MINORITY INTEREST (106) (136)
------- -------
Net income 105,640 90,568
======= =======
OTHER COMPREHENSIVE INCOME (LOSS):
Total change in market value of marketable securities 501 -
Reclassification adjustment of realized gains(losses) 219 -
----- ------
Unrealized gains(losses)on marketable securities 720 -
----- ------
Deferred income tax and social contribution
on unrealized gains (losses) (245) -
------- ------
Other comprehensive income (loss) 475 -
------- ------
Comprehensive income 106,115 90,568
======= ======
LOCALIZA RENT A CAR S.A. AND SUBSIDIARIES
SUMMARY FINANCIAL DATA BY BUSINESS SEGMENT
FOR YEARS ENDED DECEMBER 31, 2003 AND 2004
( Stated in thousands of Brazilian Reais )
( Unaudited )
Year ended December 31,
-------------------------------
2003 2004
------ ------
NET REVENUES:
Car rental 155,291 197,098
Fleet management 120,309 127,822
Franchising 5,456 6,526
Used car sales 250,978 303,010
------- -------
532,034 634,456
------- -------
DEPRECIATION AND AMORTIZATION:
Car rental (14,225) (3,545)
Fleet management (22,997) (15,012)
Other (3,841) (4,796)
-------- --------
(41,063) (23,353)
-------- --------
OPERATING INCOME:
Car rental 50,173 87,125
Fleet management 54,078 71,278
Franchising 2,483 1,282
Used car sales 25,012 39,533
Corporate expenses (16,737) (20,173)
Other depreciation and amortization (3,841) (4,796)
------- -------
111,168 174,249
------- -------
OPERATING MARGIN:
Car rental 32.3% 44.2%
Fleet management 44.9% 55.8%
Franchising 45.5% 19.6%
Used car sales 10.0% 13.0%
Total 20.9% 27.5%
<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>
Year ended Year ended
December December
4 Q 2003 4 Q 2004 2003 2004
-------- -------- ----------- -----------
STATEMENT OF OPERATIONS DATA:
Net revenues:
Car rental 41,606 57,053 155,291 197,098
Fleet management 29,753 32,070 120,309 127,822
------ ------ ------- -------
Total vehicle rental 71,359 89,123 275,600 324,920
Used car sales 69,343 100,389 250,978 303,010
Franchising 1,441 1,654 5,456 6,526
------- ------- ------- -------
Total net revenues 142,143 191,166 532,034 634,456
------- ------- ------- -------
Direct operating costs and expenses:
Car rental (17,655) (26,246) (61,755) (71,144)
Fleet management (11,860) (9,610) (33,488) (31,160)
------- ------- ------- --------
Total vehicle rental (29,515) (35,856) (95,243) (102,304)
Cost of used car sales (58,031) (77,412) (206,579) (238,807)
Franchising (907) (2,459) (2,681) (4,852)
Taxes on revenues (2,850) (4,911) (16,337) (18,058)
------- -------- -------- --------
Total direct operating costs and expenses (91,303) (120,638) (320,840) (364,021)
------- -------- -------- --------
Gross profit 50,840 70,528 211,194 270,435
Selling, general, administrative expenses and other:
Advertising, promotion and selling:
Car rental (2,516) (5,728) (19,064) (24,109)
Fleet management 2,473 (203) (4,367) (4,990)
Used car sales (5,215) (9,263) (18,727) (23,549)
Franchising (1) (11) (36) (12)
------ ------- ------- -------
Total adverstising, promotion and selling (5,259) (15,205) (42,194) (52,660)
General and administrative expenses (4,836) (7,929) (13,673) (18,301)
Other (3,027) (504) (3,096) (1,872)
------ ------ ------ -------
Total selling, general, administrative and other expense (13,122) (23,638) (58,963) (72,833)
------ ------ ------ -------
Depreciation expenses:
Vehicle depreciation expenses:
Car rental (4,192) (2,694) (14,225) (3,545)
Fleet management (3,264) (2,923) (22,997) (15,012)
------ ------ ------- -------
Total vehicle depreciation expenses (7,456) (5,617) (37,222) (18,557)
Non-Vehicle depreciation and amortization expenses (1,019) (1,322) (3,841) (4,796)
------ ------ ------- -------
Total depreciation and amortization expenses (8,475) (6,939) (41,063) (23,353)
------ ------ ------- -------
Operating income 29,243 39,951 111,168 174,249
------ ------ ------- -------
Financial Interest:
Expense (10,199) (8,466) (32,785) (36,764)
Income 8,192 2,954 35,473 26,700
Taxes on financial revenues (251) (1) (1,672) (1,325)
Monetary variation and exchange loss 2,669 14,531 47,384 17,474
Monetary variation and exchange gain (5) (27) (488) (46)
Realized gains (losses)on sale of marketable securiti 244 - (219) -
Unrealized gains (losses) on derivatives (3,316) (25,739) (7,016) (49,030)
Realized gains (losses) on derivatives - (25) - (25)
------ ------- ------ -------
Financial interest (expense) income, net (2,666) (16,773) 40,677 (43,016)
------ ------- ------ -------
Nonoperating (expense) income, net 13 47 97 207
------ ------- ------- -------
Income before taxes and minority interest 26,590 23,225 151,942 131,440
Income tax and social contribution (3,365) (9,565) (46,196) (40,736)
Minority interest (2) (23) (106) (136)
------ ------ ------- -------
Net income 23,223 13,637 105,640 90,568
====== ====== ======= =======
OTHER COMPREHENSIVE INCOME (LOSS) - - 475 -
------ ------ ------- -------
Comprehensive income 23,223 13,637 106,115 90,568
====== ====== ======= =======
</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>
Year ended Year ended
December December
STATEMENT OF OPERATIONS DATA 4 Q 2003 4 Q 2004 2003 2004
-------- -------- ----------- -----------
OTHER DATA :
EBITDA 37,718 59,294 152,229 210,006
Vehicle Depreciation Expense (7,456) (5,617) (37,222) (18,557)
------ ------ ------- -------
Adjusted EBITDA 30,262 53,677 115,007 191,449
====== ====== ======= =======
</table>
Reclassification of Certain Financial Statement Items
In order to conform with the presentation in the 2003 and in the 2004 financial
statements, certain amounts in Localiza's results of operations for 2003 have
been reclassified.
1 - Reclassification of 4Q2003 and year 2003 amount of R$7,240 related to
expenses from Selling, general and administrative expenses to: (i) Direct
operating costs and expenses, in the amount of R$6,439 (R$3,438 for car rental
and R$3,001 for fleet management); (ii) General and administrative expenses, in
the amount of R$801.
<table>
LOCALIZA RENT A CAR S.A. AND SUBSIDIARIES
SELECTED HISTORICAL FINANCIAL AND OTHER DATA
( Stated in thousands of Brazilian Reais unless otherwise indicated )
( Unaudited )
<s> <c> <c> <c> <c>
Year ended Year ended
December December
SELECTED OPERATING DATA: 4 Q 2003 4 Q 2004 2003 2004
-------- -------- ----------- -----------
Fleet at the end of period:
Car Rental 12,590 19,531 12,590 19,531
Fleet Management 9,765 9,168 9,765 9,168
------ ------ ------ ------
Total 22,355 28,699 22,355 28,699
------ ------ ------ ------
Average Operating Fleet Age (months)
Car Rental 4.8 4.1 6.1 5.3
Fleet Management 19.9 14.5 21.4 16.4
Average Operating Fleet Age (months) 11.8 7.5 14.1 10.0
Number of Rental Days:
Car Rental 495,530 717,694 1,864,674 2,435,339
(-)Rental Days to Total Fleet's replacement service (5,031) (3,584) (25,286) (22,283)
------- ------- --------- ---------
Total 490,499 714,110 1,839,388 2,413,056
Fleet Management 743,580 705,930 3,119,460 2,806,440
Utilization Rates:
Car Rental 65.34% 51.22% 62.93% 60.61%
Fleet Management 93.70% 95.37% 94.72% 95.84%
Numbers of Cars Purchased:
Car Rental 7,484 7,541 11,432 17,894
Fleet Management 1,695 1,604 3,630 4,288
----- ----- ------ ------
Total 9,179 9,145 15,062 22,182
----- ----- ------ ------
Average Purchase Price 16,41 22,15 18,71 21,94
Total Investment in Fleet 150,638.8 202,550.7 281,803.3 486,602.9
Numbers of Cars Sold:
Car Rental 2,856 3,756 11,205 10,644
Fleet Management 1,231 905 4,263 5,071
----- ----- ------ ------
Total 4,087 4,661 15,468 15,715
----- ----- ------ ------
Average Car Price 16.36 21.08 15.78 18.80
Depreciation per operating car...(R$) 1,748.1 957.9 2,155.9 970.9
Average Annual Revenue per operating car....(R$)
Car Rental 20,024.3 14,901.7 19,129.9 17,953.0
Fleet Management 13,506.6 15,527.1 13,090.8 15,611.1
Average Rental Revenue per Rental
Car per Day...........(R$)
Car Rental(deducted Total Fleet's replacement service) 84.82 79.89 84.43 81.68
Fleet Management 40.04 45.22 38.39 45.25
</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: April 13, 2005.