Exhibit 99.1 - Press Release
AVIS GROUP HOLDINGS, INC. ANNOUNCES EARNINGS; FOURTH QUARTER EPS UP 60%; FULL
YEAR UP 22%
CENDANT ACQUISITION EXPECTED TO CLOSE MARCH 1, 2001
GARDEN CITY, N.Y., Jan. 30 /PRNewswire/ -- Avis Group Holdings, Inc. (NYSE:
AVI-news) today reported results for the fourth quarter and full year 2000 and
stated that it expects the Cendant acquisition to close March 1, 2001. Avis
Group's consolidated net income and diluted earnings per share for the three
months ended December 31, 2000 were $15.3 million and 32 cents, respectively,
compared to $10.7 million and 20 cents, respectively, for the same period in
1999. The fourth quarter 2000 diluted earnings per share represents a 60%
increase over the same period in 1999.
Avis Group's consolidated net income and diluted earnings per share for the year
ended December 31, 2000 were $120.7 million and $3.19, respectively, compared to
$92.6 million and $2.61, respectively, for the same period in 1999. Revenue for
the year was $4.2 billion.
On November 13, 2000 Cendant Corporation (NYSE: CD-news) and Avis Group
announced that they had entered into a definitive agreement for Cendant to
acquire all of the outstanding shares of Avis Group that are not currently owned
by Cendant at a price of $33.00 per share in cash. The transaction is
conditioned upon, among other things, customary regulatory approvals and the
approval by both the holders of a majority of all outstanding shares of common
stock as of the record date and a majority of the votes cast at the special
meeting by stockholders other than Cendant and its subsidiaries.
Avis Group announced that the waiting period under the Hart-Scott-Rodino Act was
terminated and that it had mailed a definitive proxy to its shareholders on
January 29, 2001. Avis Group has scheduled a shareholder meeting for February
28, 2001. Upon completion of the transaction, which is expected to close March
1, 2001, Avis Group will become a subsidiary of Cendant.
Avis Group Holdings, Inc. is one of the world's leading service and information
providers for comprehensive automotive transportation and vehicle management
solutions. The Company operates Avis Rent A Car, the world's second largest
general-use car rental business, with locations in the United States, Canada,
Australia, New Zealand and the Latin American Caribbean Region; PHH Arval, the
second largest fleet management and leasing company in North America; and Wright
Express, the world's largest fleet card provider.
Avis Group's shareholders should carefully review Avis Group's proxy statement
with respect to the proposed acquisition by Cendant Corporation, which has been
filed with the Securities and Exchange Commission, before making any decision
concerning the acquisition. The proxy statement contains important information.
Avis Group shareholders can obtain a copy of the proxy statement for free from
Morrow & Co., Inc., the proxy solicitor, by calling 1-800-654-2468. Copies may
also be obtained at no cost from the website of the Securities and Exchange
Commission at http://www.sec.gov. Read the proxy statement carefully before
making a decision concerning the acquisition.
For additional information and news, please log onto the Avis Web Site
(http://www.avis.com) or call Company News on Call (1-800-758-5804, access code
#078975).
AVIS GROUP HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share amounts)
(Unaudited)
THREE MONTHS ENDED DECEMBER 31,
2000 (4) 1999 (3)
Revenue:
Vehicle rental $624,309 $586,817
Vehicle management services:
Vehicle leasing 337,518 346,871
Other fee based revenue 42,081 71,847
1,003,908 1,005,535
Costs and expenses:
Direct operating, net 250,245 232,428
Vehicle depreciation and lease
charges, net 421,227 413,578
Interest 118,713 106,504
Selling, general and
administrative 155,186 173,756
945,371 926,266
EBITDA (5) 58,537 79,269
Interest - acquisition debt 13,000 36,416
Amortization of cost in excess of net
assets acquired 8,289 11,854
Non-vehicle depreciation and
amortization 9,947 11,230
Income before provision for income
taxes 27,301 19,769
Provision for income taxes 12,040 9,027
Net income 15,261 10,742
Preferred stock dividends 4,786 4,555
Earnings applicable to common
stockholders $10,475 $6,187
Earnings Per Share:
Basic $0.34 $0.20
Diluted (1) $0.32 $0.20
Cash earnings per share (2) $0.56 $0.56
Weighted average shares outstanding:
Basic 31,216,290 31,130,973
Diluted (1) 32,652,178 31,426,681
TWELVE MONTHS ENDED DECEMBER 31,
2000 (4) 1999 (3)
Revenue:
Vehicle rental $2,613,476 $2,500,746
Vehicle management services:
Vehicle leasing 1,389,312 692,935
Other fee based revenue 240,896 139,046
4,243,684 3,332,727
Costs and expenses:
Direct operating, net 965,826 957,270
Vehicle depreciation and lease
charges, net 1,695,193 1,174,509
Interest 478,611 316,232
Selling, general and
administrative 692,939 582,056
3,832,569 3,030,067
EBITDA (5) 411,115 302,660
Interest - acquisition debt 105,872 71,961
Amortization of cost in excess of net
assets acquired 42,086 30,182
Non-vehicle depreciation and
amortization 47,279 34,600
Income before provision for income
taxes 215,878 165,917
Provision for income taxes 95,202 73,332
Net income 120,676 92,585
Preferred stock dividends 18,906 9,110
Earnings applicable to common
stockholders $101,770 $83,475
Earnings Per Share:
Basic $3.27 $2.66
Diluted (1) $3.19 $2.61
Cash earnings per share (2) $4.46 $3.51
Weighted average shares outstanding:
Basic 31,154,448 31,330,536
Diluted (1) 31,870,001 31,985,569
(1) Includes dilutive effect of the assumed exercise of stock options.
(2) Cash earnings per share equals earnings applicable to common
stockholders plus amortization of cost in excess of net assets
acquired (net of income tax benefit) divided by the weighted average
diluted shares outstanding.
(3) Includes the operations of PHH North America, PHH Europe and Wright
Express from July 1, 1999 (Date of Acquisition).
(4) In August 2000, the Company completed its joint venture agreement with
BNP Paribas and began accounting for its remaining 20% investment in
PHH Europe on the equity method. In addition, the Company repaid $1.0
billion of acquisition debt.
(5) Represents earnings before income taxes, non-vehicle depreciation and
amortization, amortization of cost in excess of net assets acquired
and acquisition interest.
SELECTED BALANCE SHEET DATA
(In Thousands)
December 31,
2000 1999
Vehicles, net $6,972,310 $6,501,371
Total assets $ 10,391,755 $ 11,078,258
Vehicle related debt and
preferred membership interest $7,121,545 $6,969,805
Acquisition debt $500,000 $1,500,000
Preferred stock $389,686 $371,000
Common stockholders' equity $755,114 $661,684
Acquisition debt and preferred stock to
common stockholders' equity 1.2X 2.8X