This document provides the consolidated financial statements and management's discussion and analysis of Avis Budget Car Rental, LLC for the three months ended March 31, 2007. It includes the consolidated condensed statements of income, balance sheets, cash flows, and stockholder's equity. Key highlights include net income of $4 million on revenues of $1.358 billion for the quarter. Total assets were $13.097 billion, including $8.143 billion in vehicles, net.
This document provides condensed financial statements and management discussion and analysis for Avis Budget Car Rental for the third quarter of 2007. It includes statements of income, balance sheets, cash flows, and stockholders' equity. Key highlights include total revenues of $1.7 billion for the quarter and $4.6 billion for the nine months. Net income was $65 million for the quarter and $94 million for the nine months. Total assets were $13.8 billion as of September 30, 2007, with $4.7 billion in assets excluding vehicle programs and $9.2 billion in assets for vehicle programs.
This document provides condensed financial statements and management discussion and analysis for Avis Budget Car Rental for the three and six months ended June 30, 2007. It includes an unaudited balance sheet, statement of income, statement of cash flows, and notes. The financial statements show total revenues of $1.5 billion for Q2 2007 and $2.9 billion for the first half of 2007. Net income was $24 million for Q2 and $28 million for the first six months. Cash flows from operations were positive, with $793 million provided in the first half of 2007. Management discussion and analysis provides commentary on results and risks including competition in the vehicle rental industry.
- Ameriprise Financial reported increased earnings for the second quarter of 2007, with net income per share up 42% and adjusted earnings per share up 24%.
- Revenues grew 6% to $2.2 billion, driven by strong growth in fee-based businesses. Expenses rose 5% while income before taxes grew 14%.
- Net income was $196 million, up 39% from the prior year, while adjusted earnings rose 22% to $237 million, reflecting expense controls.
FBR Capital Markets reported a net loss of $16.2 million for Q1 2009, compared to a net loss of $10.2 million in Q1 2008. Revenue was $49.7 million for Q1 2009. Institutional brokerage revenue increased to $39.7 million due to adding a convertible securities business in late 2008. Non-compensation expenses decreased 19% to $28.2 million from cost cutting. The company eliminated all debt and reduced balance sheet risk by selling its remaining mortgage backed securities holdings of $454.3 million.
The document provides a reconciliation of Aramark's non-GAAP financial measures for its fourth quarter and full year 2003 operating results, excluding certain unusual income and expense items. Specifically, it excludes $32 million in business interruption proceeds, a $10.7 million investment write-down, $7.7 million in debt extinguishment costs, and prior year gains of $43.7 million. The reconciliation shows income from continuing operations and earnings per share on both an as reported basis and excluding these unusual items, showing an increase of 18% and 15% respectively for the quarter and year on the adjusted basis. It also shows operating income for the food and support services segment on both bases, with an increase of 11%
- Ameriprise Financial reported a net loss of $70 million for Q3 2008 compared to net income of $198 million in Q3 2007, driven by $301 million in after-tax losses from credit market dislocations.
- Excluding credit market losses, core operating earnings were $231 million after-tax for Q3 2008 compared to $237 million after-tax for Q3 2007.
- The company maintained a strong balance sheet with over $4 billion in cash and cash equivalents and expects to have $1 billion in excess capital at the end of 2008 after allocating capital to acquisitions.
- Southwestern Public Service Company filed a Form 10-Q for the quarterly period ended March 31, 2005.
- The filing includes the company's consolidated statements of income and cash flows, which show that net income for the quarter was $14.1 million and net cash provided by operating activities was $49.5 million.
- It also includes notes and disclosures regarding the company's business, accounting policies, and other required regulatory information.
The document provides financial highlights and statistical data for UnumProvident Corporation for the fourth quarter and full year of 2005. Some key details include:
- Total revenue for 2005 was $10.4 billion compared to $10.5 billion in 2004.
- Net income for 2005 was $513.6 million compared to a net loss of $253 million in 2004.
- Total assets increased to $51.9 billion in 2005 from $50.8 billion in 2004, with most of the increase occurring in fixed maturity securities.
- Premium income for 2005 was $7.8 billion, consistent with the prior year.
This document provides condensed financial statements and management discussion and analysis for Avis Budget Car Rental for the third quarter of 2007. It includes statements of income, balance sheets, cash flows, and stockholders' equity. Key highlights include total revenues of $1.7 billion for the quarter and $4.6 billion for the nine months. Net income was $65 million for the quarter and $94 million for the nine months. Total assets were $13.8 billion as of September 30, 2007, with $4.7 billion in assets excluding vehicle programs and $9.2 billion in assets for vehicle programs.
This document provides condensed financial statements and management discussion and analysis for Avis Budget Car Rental for the three and six months ended June 30, 2007. It includes an unaudited balance sheet, statement of income, statement of cash flows, and notes. The financial statements show total revenues of $1.5 billion for Q2 2007 and $2.9 billion for the first half of 2007. Net income was $24 million for Q2 and $28 million for the first six months. Cash flows from operations were positive, with $793 million provided in the first half of 2007. Management discussion and analysis provides commentary on results and risks including competition in the vehicle rental industry.
- Ameriprise Financial reported increased earnings for the second quarter of 2007, with net income per share up 42% and adjusted earnings per share up 24%.
- Revenues grew 6% to $2.2 billion, driven by strong growth in fee-based businesses. Expenses rose 5% while income before taxes grew 14%.
- Net income was $196 million, up 39% from the prior year, while adjusted earnings rose 22% to $237 million, reflecting expense controls.
FBR Capital Markets reported a net loss of $16.2 million for Q1 2009, compared to a net loss of $10.2 million in Q1 2008. Revenue was $49.7 million for Q1 2009. Institutional brokerage revenue increased to $39.7 million due to adding a convertible securities business in late 2008. Non-compensation expenses decreased 19% to $28.2 million from cost cutting. The company eliminated all debt and reduced balance sheet risk by selling its remaining mortgage backed securities holdings of $454.3 million.
The document provides a reconciliation of Aramark's non-GAAP financial measures for its fourth quarter and full year 2003 operating results, excluding certain unusual income and expense items. Specifically, it excludes $32 million in business interruption proceeds, a $10.7 million investment write-down, $7.7 million in debt extinguishment costs, and prior year gains of $43.7 million. The reconciliation shows income from continuing operations and earnings per share on both an as reported basis and excluding these unusual items, showing an increase of 18% and 15% respectively for the quarter and year on the adjusted basis. It also shows operating income for the food and support services segment on both bases, with an increase of 11%
- Ameriprise Financial reported a net loss of $70 million for Q3 2008 compared to net income of $198 million in Q3 2007, driven by $301 million in after-tax losses from credit market dislocations.
- Excluding credit market losses, core operating earnings were $231 million after-tax for Q3 2008 compared to $237 million after-tax for Q3 2007.
- The company maintained a strong balance sheet with over $4 billion in cash and cash equivalents and expects to have $1 billion in excess capital at the end of 2008 after allocating capital to acquisitions.
- Southwestern Public Service Company filed a Form 10-Q for the quarterly period ended March 31, 2005.
- The filing includes the company's consolidated statements of income and cash flows, which show that net income for the quarter was $14.1 million and net cash provided by operating activities was $49.5 million.
- It also includes notes and disclosures regarding the company's business, accounting policies, and other required regulatory information.
The document provides financial highlights and statistical data for UnumProvident Corporation for the fourth quarter and full year of 2005. Some key details include:
- Total revenue for 2005 was $10.4 billion compared to $10.5 billion in 2004.
- Net income for 2005 was $513.6 million compared to a net loss of $253 million in 2004.
- Total assets increased to $51.9 billion in 2005 from $50.8 billion in 2004, with most of the increase occurring in fixed maturity securities.
- Premium income for 2005 was $7.8 billion, consistent with the prior year.
The document is a statistical supplement from UnumProvident providing financial highlights and results for the first quarter of 2006. Some key details include:
- Premium income for the quarter was $1.97 billion, up slightly from $1.935 billion in the first quarter of 2005.
- Net income for the quarter was $73.4 million, down from $152.2 million in the first quarter of 2005, due to a $86 million claim reassessment charge.
- Total assets as of March 31, 2006 were $50.471 billion, down slightly from $50.836 billion at March 31, 2005.
This document is Aetna Inc.'s quarterly report filed with the SEC for the quarter ended March 31, 2005. It provides financial statements and disclosures for the period. Specifically, it includes the consolidated statements of income, balance sheets, shareholders' equity, and cash flows for the quarters ended March 31, 2005 and 2004. It also provides notes to the financial statements and disclosures on the company's business segments, accounting policies, and recent acquisitions. The financial statements show increased revenues and net income compared to the prior year period.
The document is a statistical supplement from UnumProvident for the first quarter of 2005. It provides financial highlights and statistics for UnumProvident for the quarters and years ending March 31, 2005, March 31, 2004 and December 31, 2004 and 2003. Some key figures include total revenue of $2.6 billion for the quarter, net income of $152 million compared to a net loss of $562 million in the prior year quarter, and total assets of $50.8 billion and stockholders' equity of $7.1 billion as of March 31, 2005.
This document provides a reconciliation of non-GAAP financial measures for Unum Group for various periods. It includes:
1) A reconciliation of after-tax operating income excluding various one-time charges to net income for the third quarters of 2006 and 2005.
2) An adjustment of operating income by segment for the third quarter of 2006 to exclude regulatory reassessment charges and broker compensation settlements.
3) Information on premium income, benefits and reserves, and adjusted benefit ratios for US Brokerage Group Income Protection.
4) Outlook ranges for after-tax operating income and net income for 2006, excluding various one-time charges.
This document provides Bank of America's financial results for the full year and fourth quarter of 2007. Some key points:
- Net income for 2007 was $15 billion, down 29% from 2006, driven by higher credit costs and losses from subprime exposures.
- Revenue declined 8% for the year due to lower noninterest income. Credit costs rose significantly.
- In the fourth quarter, the company reported a net profit of $268 million compared to a $5.3 billion profit in 2006, with losses from subprime exposures weighing heavily.
- Global Consumer & Small Business Banking saw lower profits for the year and quarter due to rising credit costs, particularly in credit cards.
aetna Download Documentation Form 10-Q2008 1stfinance9
This document is Aetna Inc.'s Form 10-Q quarterly report filed with the SEC for the quarter ended March 31, 2008. It includes Aetna's consolidated financial statements and notes for the quarter. Some key details include:
- Total revenue for the quarter was $7.7 billion, with net income of $431.6 million.
- The Health Care segment had revenue of $6.3 billion from medical, pharmacy benefits management, dental and vision plans.
- Assets totaled $39.2 billion as of March 31, 2008, with liabilities of $29.3 billion resulting in total shareholders' equity of $9.9 billion.
- Bank of America reported $4.2 billion in net income for Q1 2009, down from the previous quarter but up from the same period last year. Revenue was $36.1 billion, a record high.
- Results included Merrill Lynch revenues and expenses following the acquisition. Global Markets reported record results despite $1.7 billion in capital markets disruption charges.
- Mortgage banking income was $3.3 billion, up significantly year-over-year, driven by higher home loan production volumes from Countrywide and low interest rates.
Citigroup reported quarterly financial results, with net income of $3.92 billion for 3Q 2002, a 23% increase over 3Q 2001. Core income, which excludes certain items, was $3.79 billion for 3Q 2002, up 17% from the prior year. Diluted earnings per share on net income were $0.76 for the quarter, rising 25% year-over-year, while diluted EPS on core income increased 19% to $0.74. Citigroup operates as a global financial services company with over 200 million customer accounts in more than 100 countries.
United Health Group [PDF Document] Form 8-K Related to Earnings Releasefinance3
This document is a Form 8-K filed by UnitedHealth Group with the Securities and Exchange Commission announcing their fourth quarter and full year 2005 financial results. Some key highlights include:
- Fourth quarter earnings per share of $0.65, up 20% year-over-year. Full year earnings per share of $2.48, up 26% year-over-year.
- Fourth quarter revenues of $12.05 billion, up 15% year-over-year. Full year revenues of $45.37 billion, up 22% year-over-year.
- Operating margin for the fourth quarter was 11.9% and 11.8% for the full year.
- On December 20
This document provides quarterly financial data for Citigroup, including:
1) Income statements for Citigroup's major business segments broken down by product and region, showing revenues, expenses, profits.
2) Key metrics for Citigroup as a whole, including revenues, income, earnings per share, assets, equity.
3) Specific data on performance of Citigroup's Global Consumer credit card business, including revenues, expenses, profits, and effects of securitization activities.
This document is BB&T Corporation's 2005 annual report. It provides financial highlights for 2005, noting that net income increased 6.1% to $1.654 billion and diluted earnings per share grew 7.1% to $3.00. Operating earnings rose 7.2% to $1.674 billion. Cash basis operating earnings, which exclude intangible assets and purchase accounting adjustments, increased 7.1% to $1.763 billion. The report discusses BB&T's strong loan, deposit and balance sheet growth in 2005 and notes the bank hired additional revenue producers and implemented strategies to boost organic account growth.
- Ameriprise Financial reported a 14% increase in net income for Q3 2007 to $198 million compared to Q3 2006. Adjusted earnings increased 3% to $237 million, excluding separation costs.
- Earnings per share increased 17% to $0.83 for Q3 2007 compared to Q3 2006, while adjusted earnings per share increased 5% to $0.99.
- Revenues grew 11% to $2.2 billion in Q3 2007 driven by strong growth in management fees, distribution fees, and net investment income from hedges.
Computer Sciences Corporation (CSC) reported its second quarter fiscal 2006 results including: revenue of $3.57 billion, up 5.3% from the previous year; net income of $99.5 million including a $33.1 million non-cash impairment charge; and new contract awards of $2.5 billion. Revenue growth was driven by increased commercial and U.S. federal government business. Significant new contracts were won with Banca Intesa, Centers for Medicare and Medicaid Services, and General Dynamics. CSC's pipeline for U.S. federal opportunities over the next 17 months is approximately $30 billion.
This document provides a statistical supplement for UnumProvident Corporation's second quarter 2005 financial results, adjusted to reflect new segment reporting implemented in the third quarter of 2005. It includes key financial highlights such as total premium income of $1.94 billion for the quarter. The supplement presents financial data and statistics for the quarter and year to date by business segment, including income statements, balance sheets, investment portfolios, and statutory capital. Notes are provided to give additional context to the financial information presented.
A law firm representing some of Realogy Corporation's noteholders and lenders sent a letter alleging that Realogy's invitation for existing noteholders to participate as lenders in new second lien term loans is not authorized and constitutes various breaches. The letter asserts the company will pursue legal challenges and seek to subordinate the new loans. Realogy believes the assertions are without merit and intends to proceed with the invitation as planned, vigorously defending any legal actions.
Realogy reported first quarter 2008 results with net revenue of $1.05 billion and EBITDA of $4 million. Home sale transactions declined 25% at Realogy Franchise Group and 27% at NRT. The senior secured leverage ratio was 4.2x, within the allowable ratio of 5.6x. Strategic accomplishments included franchise sales growth of 13% and retaining over 92% of top sales associates.
Realogy announced the appointment of V. Ann Hailey to its Board of Directors and as the future Chairman of its Audit Committee. Ms. Hailey is a retired executive from Limited Brands with over 20 years of experience as a chief financial officer. As a new independent director, Ms. Hailey will receive an annual stipend of $150,000 paid in both restricted stock and cash, as well as additional compensation for serving as Audit Committee Chair. She was also issued a welcome grant of stock options in the company.
This document is Realogy Corporation's quarterly report on Form 10-Q for the quarter ended March 31, 2008 filed with the SEC. It includes Realogy's condensed consolidated financial statements for the first quarter of 2008, compared to the same period in 2007. It also includes management's discussion and analysis of the financial results and condition of the company. Realogy discloses that it has significant debt from its leveraged buyout in 2007, and that a continued downturn in the housing market could negatively impact its business and financial results. The report was filed to comply with SEC reporting requirements for public companies.
The document summarizes the company's financial results for the second quarter of fiscal year 2007 compared to the same period in 2006. Net income increased 20% to $106.5 million, driven by a 21% rise in utility throughput from colder weather. Earnings per share increased 9% to $1.10. While utility profits grew due to higher volumes, natural gas marketing profits declined because of unrealized losses from changes in storage and contract values.
In 3 sentences:
Realogy Corporation held a quarterly earnings call on March 24, 2008 to discuss financial results for Q4 and full year 2007. Realogy reported revenue of $6 billion for 2007 but a net loss of $605 million due to housing market challenges and a non-cash impairment charge. The company took actions in 2007-2008 to reduce costs by $220 million and positioned its franchise and brokerage businesses to withstand the difficult market conditions.
This document provides condensed financial statements and management discussion and analysis for Avis Budget Car Rental for the third quarter of 2007. It includes statements of income, balance sheets, cash flows, and stockholders' equity. Key highlights include total revenues of $1.7 billion for the quarter and $4.6 billion for the nine months. Net income was $65 million for the quarter and $94 million for the nine months. Total assets were $13.8 billion as of September 30, 2007, with $4.7 billion in assets excluding vehicle programs and $9.2 billion in assets for vehicle programs.
This document provides condensed financial statements and management discussion and analysis for Avis Budget Car Rental for the three and six months ended June 30, 2007. It includes an unaudited balance sheet, statement of income, statement of cash flows, and notes. The financial statements show total revenues of $1.5 billion for Q2 2007 and $2.9 billion for the first half of 2007. Net income was $24 million for Q2 and $28 million for the first six months. Management discussion and analysis provides commentary on results and identifies various risks and uncertainties that could impact future financial performance.
The document is a statistical supplement from UnumProvident providing financial highlights and results for the first quarter of 2006. Some key details include:
- Premium income for the quarter was $1.97 billion, up slightly from $1.935 billion in the first quarter of 2005.
- Net income for the quarter was $73.4 million, down from $152.2 million in the first quarter of 2005, due to a $86 million claim reassessment charge.
- Total assets as of March 31, 2006 were $50.471 billion, down slightly from $50.836 billion at March 31, 2005.
This document is Aetna Inc.'s quarterly report filed with the SEC for the quarter ended March 31, 2005. It provides financial statements and disclosures for the period. Specifically, it includes the consolidated statements of income, balance sheets, shareholders' equity, and cash flows for the quarters ended March 31, 2005 and 2004. It also provides notes to the financial statements and disclosures on the company's business segments, accounting policies, and recent acquisitions. The financial statements show increased revenues and net income compared to the prior year period.
The document is a statistical supplement from UnumProvident for the first quarter of 2005. It provides financial highlights and statistics for UnumProvident for the quarters and years ending March 31, 2005, March 31, 2004 and December 31, 2004 and 2003. Some key figures include total revenue of $2.6 billion for the quarter, net income of $152 million compared to a net loss of $562 million in the prior year quarter, and total assets of $50.8 billion and stockholders' equity of $7.1 billion as of March 31, 2005.
This document provides a reconciliation of non-GAAP financial measures for Unum Group for various periods. It includes:
1) A reconciliation of after-tax operating income excluding various one-time charges to net income for the third quarters of 2006 and 2005.
2) An adjustment of operating income by segment for the third quarter of 2006 to exclude regulatory reassessment charges and broker compensation settlements.
3) Information on premium income, benefits and reserves, and adjusted benefit ratios for US Brokerage Group Income Protection.
4) Outlook ranges for after-tax operating income and net income for 2006, excluding various one-time charges.
This document provides Bank of America's financial results for the full year and fourth quarter of 2007. Some key points:
- Net income for 2007 was $15 billion, down 29% from 2006, driven by higher credit costs and losses from subprime exposures.
- Revenue declined 8% for the year due to lower noninterest income. Credit costs rose significantly.
- In the fourth quarter, the company reported a net profit of $268 million compared to a $5.3 billion profit in 2006, with losses from subprime exposures weighing heavily.
- Global Consumer & Small Business Banking saw lower profits for the year and quarter due to rising credit costs, particularly in credit cards.
aetna Download Documentation Form 10-Q2008 1stfinance9
This document is Aetna Inc.'s Form 10-Q quarterly report filed with the SEC for the quarter ended March 31, 2008. It includes Aetna's consolidated financial statements and notes for the quarter. Some key details include:
- Total revenue for the quarter was $7.7 billion, with net income of $431.6 million.
- The Health Care segment had revenue of $6.3 billion from medical, pharmacy benefits management, dental and vision plans.
- Assets totaled $39.2 billion as of March 31, 2008, with liabilities of $29.3 billion resulting in total shareholders' equity of $9.9 billion.
- Bank of America reported $4.2 billion in net income for Q1 2009, down from the previous quarter but up from the same period last year. Revenue was $36.1 billion, a record high.
- Results included Merrill Lynch revenues and expenses following the acquisition. Global Markets reported record results despite $1.7 billion in capital markets disruption charges.
- Mortgage banking income was $3.3 billion, up significantly year-over-year, driven by higher home loan production volumes from Countrywide and low interest rates.
Citigroup reported quarterly financial results, with net income of $3.92 billion for 3Q 2002, a 23% increase over 3Q 2001. Core income, which excludes certain items, was $3.79 billion for 3Q 2002, up 17% from the prior year. Diluted earnings per share on net income were $0.76 for the quarter, rising 25% year-over-year, while diluted EPS on core income increased 19% to $0.74. Citigroup operates as a global financial services company with over 200 million customer accounts in more than 100 countries.
United Health Group [PDF Document] Form 8-K Related to Earnings Releasefinance3
This document is a Form 8-K filed by UnitedHealth Group with the Securities and Exchange Commission announcing their fourth quarter and full year 2005 financial results. Some key highlights include:
- Fourth quarter earnings per share of $0.65, up 20% year-over-year. Full year earnings per share of $2.48, up 26% year-over-year.
- Fourth quarter revenues of $12.05 billion, up 15% year-over-year. Full year revenues of $45.37 billion, up 22% year-over-year.
- Operating margin for the fourth quarter was 11.9% and 11.8% for the full year.
- On December 20
This document provides quarterly financial data for Citigroup, including:
1) Income statements for Citigroup's major business segments broken down by product and region, showing revenues, expenses, profits.
2) Key metrics for Citigroup as a whole, including revenues, income, earnings per share, assets, equity.
3) Specific data on performance of Citigroup's Global Consumer credit card business, including revenues, expenses, profits, and effects of securitization activities.
This document is BB&T Corporation's 2005 annual report. It provides financial highlights for 2005, noting that net income increased 6.1% to $1.654 billion and diluted earnings per share grew 7.1% to $3.00. Operating earnings rose 7.2% to $1.674 billion. Cash basis operating earnings, which exclude intangible assets and purchase accounting adjustments, increased 7.1% to $1.763 billion. The report discusses BB&T's strong loan, deposit and balance sheet growth in 2005 and notes the bank hired additional revenue producers and implemented strategies to boost organic account growth.
- Ameriprise Financial reported a 14% increase in net income for Q3 2007 to $198 million compared to Q3 2006. Adjusted earnings increased 3% to $237 million, excluding separation costs.
- Earnings per share increased 17% to $0.83 for Q3 2007 compared to Q3 2006, while adjusted earnings per share increased 5% to $0.99.
- Revenues grew 11% to $2.2 billion in Q3 2007 driven by strong growth in management fees, distribution fees, and net investment income from hedges.
Computer Sciences Corporation (CSC) reported its second quarter fiscal 2006 results including: revenue of $3.57 billion, up 5.3% from the previous year; net income of $99.5 million including a $33.1 million non-cash impairment charge; and new contract awards of $2.5 billion. Revenue growth was driven by increased commercial and U.S. federal government business. Significant new contracts were won with Banca Intesa, Centers for Medicare and Medicaid Services, and General Dynamics. CSC's pipeline for U.S. federal opportunities over the next 17 months is approximately $30 billion.
This document provides a statistical supplement for UnumProvident Corporation's second quarter 2005 financial results, adjusted to reflect new segment reporting implemented in the third quarter of 2005. It includes key financial highlights such as total premium income of $1.94 billion for the quarter. The supplement presents financial data and statistics for the quarter and year to date by business segment, including income statements, balance sheets, investment portfolios, and statutory capital. Notes are provided to give additional context to the financial information presented.
A law firm representing some of Realogy Corporation's noteholders and lenders sent a letter alleging that Realogy's invitation for existing noteholders to participate as lenders in new second lien term loans is not authorized and constitutes various breaches. The letter asserts the company will pursue legal challenges and seek to subordinate the new loans. Realogy believes the assertions are without merit and intends to proceed with the invitation as planned, vigorously defending any legal actions.
Realogy reported first quarter 2008 results with net revenue of $1.05 billion and EBITDA of $4 million. Home sale transactions declined 25% at Realogy Franchise Group and 27% at NRT. The senior secured leverage ratio was 4.2x, within the allowable ratio of 5.6x. Strategic accomplishments included franchise sales growth of 13% and retaining over 92% of top sales associates.
Realogy announced the appointment of V. Ann Hailey to its Board of Directors and as the future Chairman of its Audit Committee. Ms. Hailey is a retired executive from Limited Brands with over 20 years of experience as a chief financial officer. As a new independent director, Ms. Hailey will receive an annual stipend of $150,000 paid in both restricted stock and cash, as well as additional compensation for serving as Audit Committee Chair. She was also issued a welcome grant of stock options in the company.
This document is Realogy Corporation's quarterly report on Form 10-Q for the quarter ended March 31, 2008 filed with the SEC. It includes Realogy's condensed consolidated financial statements for the first quarter of 2008, compared to the same period in 2007. It also includes management's discussion and analysis of the financial results and condition of the company. Realogy discloses that it has significant debt from its leveraged buyout in 2007, and that a continued downturn in the housing market could negatively impact its business and financial results. The report was filed to comply with SEC reporting requirements for public companies.
The document summarizes the company's financial results for the second quarter of fiscal year 2007 compared to the same period in 2006. Net income increased 20% to $106.5 million, driven by a 21% rise in utility throughput from colder weather. Earnings per share increased 9% to $1.10. While utility profits grew due to higher volumes, natural gas marketing profits declined because of unrealized losses from changes in storage and contract values.
In 3 sentences:
Realogy Corporation held a quarterly earnings call on March 24, 2008 to discuss financial results for Q4 and full year 2007. Realogy reported revenue of $6 billion for 2007 but a net loss of $605 million due to housing market challenges and a non-cash impairment charge. The company took actions in 2007-2008 to reduce costs by $220 million and positioned its franchise and brokerage businesses to withstand the difficult market conditions.
This document provides condensed financial statements and management discussion and analysis for Avis Budget Car Rental for the third quarter of 2007. It includes statements of income, balance sheets, cash flows, and stockholders' equity. Key highlights include total revenues of $1.7 billion for the quarter and $4.6 billion for the nine months. Net income was $65 million for the quarter and $94 million for the nine months. Total assets were $13.8 billion as of September 30, 2007, with $4.7 billion in assets excluding vehicle programs and $9.2 billion in assets for vehicle programs.
This document provides condensed financial statements and management discussion and analysis for Avis Budget Car Rental for the three and six months ended June 30, 2007. It includes an unaudited balance sheet, statement of income, statement of cash flows, and notes. The financial statements show total revenues of $1.5 billion for Q2 2007 and $2.9 billion for the first half of 2007. Net income was $24 million for Q2 and $28 million for the first six months. Management discussion and analysis provides commentary on results and identifies various risks and uncertainties that could impact future financial performance.
- Avis Budget Car Rental, LLC provides financial statements and management discussion for Q3 2006. It operates Avis and Budget vehicle rental brands in domestic and international markets.
- For Q3 2006, revenues increased slightly to $1.55 billion while net income decreased to $12 million compared to $93 million in Q3 2005. Expenses also increased for vehicle depreciation and interest costs.
- The balance sheet as of September 30, 2006 shows total assets of $13.44 billion including $8.34 billion in assets under vehicle programs, and total liabilities of $10.34 billion including $7.36 billion in liabilities under vehicle programs.
- Avis Budget Car Rental, LLC provides financial statements and management discussion for Q3 2006. It operates Avis and Budget vehicle rental brands in domestic and international markets.
- For Q3 2006, revenues increased slightly to $1.55 billion while net income decreased to $12 million compared to $93 million in Q3 2005. Expenses also increased for vehicle depreciation and interest costs.
- The balance sheet as of September 30, 2006 shows total assets of $13.44 billion including $8.34 billion in assets under vehicle programs, and total liabilities of $10.34 billion including $7.36 billion in liabilities under vehicle programs.
- Third quarter earnings per share were $1.11, up 5% from prior year. Comparable earnings per share were $1.14, up 2%.
- Fleet Management Solutions revenue was down 1% due to lower fuel and commercial rental revenue, but contractual revenue increased. Earnings were down 10% due to commercial rental declines.
- Supply Chain Solutions revenue was up 8% on new business, but earnings grew 6% due to lower incentive compensation.
- Year-to-date cash flow from operations was $837 million. Capital expenditures were $1.093 billion, focused on fleet investments.
- The company reported earnings per share of $1.11 for the third quarter of 2007, up from $1.06 in the third quarter of 2006. Operating revenue increased 3% year-over-year.
- Fleet Management Solutions revenue was down 1% due to lower fuel and commercial rental revenue, but contractual revenue increased. Supply Chain Solutions revenue grew 8% due to new business.
- For the year-to-date period, earnings per share were $3.01 compared to $2.97 in 2006. Operating revenue increased 4% year-over-year for the first nine months of 2007.
- Third quarter earnings per share were $1.11, up 5% from prior year. Comparable earnings per share were $1.14, up 2%.
- Fleet Management Solutions revenue was down 1% due to lower fuel and commercial rental revenue, but contractual revenue increased. Earnings were down 10% due to commercial rental declines.
- Supply Chain Solutions revenue was up 8% on new business, but earnings grew 6% due to lower incentive compensation offsetting an automotive plant closure.
- Cash flow from operations was $837 million year-to-date, up from $612 million prior year. Net capital expenditures were $535 million year-to-date, down from $1.
- Third quarter earnings per share were $1.11, up 5% from prior year. Comparable earnings per share were $1.14, up 2%.
- Fleet Management Solutions revenue was down 1% due to lower fuel and commercial rental revenue, but contractual revenue increased. Earnings were down 10% due to commercial rental declines.
- Supply Chain Solutions revenue was up 8% on new business, but earnings grew 6% due to lower incentive compensation offsetting an automotive plant closure.
- Cash flow from operations was $837 million year-to-date, up from $612 million prior year. Net capital expenditures were $535 million year-to-date, down from $1.
- The company reported earnings per share of $1.11 for the third quarter of 2007, up from $1.06 in the third quarter of 2006. Operating revenue increased 3% year-over-year.
- Fleet Management Solutions revenue was down 1% due to lower fuel and commercial rental revenue, but contractual revenue increased. Earnings were down 10% due to commercial rental and used vehicle sales.
- Supply Chain Solutions revenue increased 8% on new business, but earnings grew only 6% due to an automotive plant closure offsetting the new business.
- Third quarter earnings per share were $1.11, up 5% from prior year. Comparable earnings per share were $1.14, up 2%.
- Fleet Management Solutions revenue was down 1% due to lower fuel and commercial rental revenue, but contractual revenue increased. Earnings were down 10% due to commercial rental declines.
- Supply Chain Solutions revenue was up 8% on new business, but earnings grew 6% due to lower incentive compensation partially offsetting an automotive plant closure.
- Total year-to-date revenue grew 4% while earnings were comparable to prior year. Net cash from operations was $837 million.
- Third quarter earnings per share were $1.11, up 5% from prior year. Comparable earnings per share were $1.14, up 2%.
- Fleet Management Solutions revenue was down 1% due to lower fuel and commercial rental revenue, offset by growth in contractual business. Earnings were down 10% due to commercial rental declines.
- Supply Chain Solutions revenue grew 8% on new business, while earnings grew 6%.
- Cash flow from operations was $837 million year-to-date, up from $612 million prior year. Net capital expenditures were $535 million year-to-date, down from $1.006 billion.
- The company reported earnings per share of $1.11 for the third quarter of 2007, up from $1.06 in the third quarter of 2006. Operating revenue increased 3% year-over-year.
- Fleet Management Solutions revenue was down 1% due to lower fuel and commercial rental revenue, but contractual revenue increased. Supply Chain Solutions revenue grew 8% due to new business.
- For the year-to-date period, earnings per share were $3.01 compared to $2.97 in 2006. Operating revenue increased 4% year-over-year for the first nine months of 2007.
- Third quarter earnings per share were $1.11, up 5% from prior year. Comparable earnings per share were $1.14, up 2%.
- Fleet Management Solutions revenue was down 1% due to lower fuel and commercial rental revenue, but contractual revenue increased. Earnings were down 10% due to commercial rental declines.
- Supply Chain Solutions revenue was up 8% on new business, but earnings grew 6% due to lower incentive compensation offsetting an automotive plant closure.
- Total year-to-date revenue grew 4% while earnings were comparable to prior year. Net cash from operations was $837 million.
Capital Product Partners Fourth Quarter 2008 Earningsearningsreport
Capital Product Partners L.P. reported strong fourth quarter 2008 results with net income of $14.3 million and operating surplus of $17.4 million. They announced a non-recurring exceptional cash distribution of $1.05 per unit, returning profit sharing revenues earned in 2008. Despite a weak shipping market outlook, the company has long-term contracts with reputable counterparties and adequate financial reserves to weather uncertain market conditions.
allstate Quarterly Investor Information Earnings Press Release 2003 3rd finance7
Allstate reported strong financial results for the third quarter of 2003, with net income increasing 177% compared to the third quarter of 2002. Operating income also increased, driven by higher underwriting income in Property-Liability from increased premiums earned and favorable loss trends, partially offset by higher catastrophe losses. Premiums and deposits for Allstate Financial reached a record level. The company increased its guidance for full-year 2003 operating income per share.
This document is Visteon Corporation's quarterly report filed with the SEC for the quarter ended March 31, 2006. It includes Visteon's unaudited consolidated financial statements for the first quarter of 2006, showing net sales of $2.961 billion, cost of sales of $2.745 billion, and a net loss of $88 million. It also includes management's discussion of the company's financial condition and operating results, and certifications that the report does not contain any false or misleading statements.
YRC Worldwide reported a loss for 2008 due to the economic recession. While losses were larger than expected, cash flow was positive. The company aims to improve performance through integrating Yellow Transportation and Roadway networks, and reducing wages. An amendment to credit facilities is expected to finalize in February to improve the company's financial position.
YRC Worldwide reported a loss for 2008 due to the economic recession. While losses were larger than expected, cash flow was positive. The company aims to improve performance through integrating Yellow Transportation and Roadway networks, and reducing wages. An amendment to credit facilities is expected to finalize in February to improve the company's financial position.
- Revenue for the second quarter was up 4% to $1.658 billion driven by contractual revenue growth in supply chain and fleet management solutions. Earnings per share were $1.07.
- Fleet management solutions revenue was down 1% but operating revenue was up 2% due to increases in full service lease and contract maintenance revenue. Earnings were up 3%.
- Supply chain solutions revenue was up 16% and operating revenue up 13% from new business, but earnings were down 14% due to an automotive plant closure.
- Dedicated contract carriage revenue was down 2% but operating revenue was down 1%, while earnings were up 12% from lower costs.
Avis Budget Car Rental provides an overview of its consolidated financial statements and management discussion and analysis for 2006, 2005 and 2004. Key points include:
- Revenues increased 7% in 2006 driven by a 1% increase in rental days and 6% increase in rental rates. However, EBITDA declined 5% due to higher fleet costs.
- International car rental revenues grew 15% in 2006 while EBITDA was flat.
- Truck rental revenues declined 14% and EBITDA declined 56% in 2006 compared to 2005.
- The company incurred $23 million in separation related charges in 2006 associated with its spin-off from Cendant Corporation.
Similar to avis budget group ABCR_1Q07_Financials (20)
This financial review provides operating and financial information for Northeast Utilities (NU) and its subsidiaries through June 30, 2008. Key information includes:
- NU's consolidated revenues for 2007 were $5.822 billion and operating income was $539 million.
- The largest subsidiary, The Connecticut Light and Power Company (CL&P), had revenues of $3.682 billion in 2007 and operating income of $285 million.
- Financial information such as sales, revenues, income, capitalization, debt ratings and dividend payments are presented for NU, CL&P and other subsidiaries from 2007 back to 2003.
1. The 2008 Annual Meeting of Shareholders of Northeast Utilities will be held on May 13, 2008 at 10:30am at the offices of Public Service Company of New Hampshire.
2. Matters to be voted on include electing 12 trustee nominees and ratifying the selection of Deloitte & Touche LLP as the independent auditors for 2008.
3. Directions to the meeting location in Manchester, NH are provided. Shareholders are urged to vote their shares whether attending the meeting or not.
- Net sales increased significantly from $4.74 billion in 1999 to $7.13 billion in 2000. Net income increased slightly from $515.8 million in 1999 to $422 million in 2000.
- The Telecommunications segment saw the largest increase in revenues from $2.96 billion in 1999 to $5.12 billion in 2000, driving the overall revenue growth.
- Pro forma diluted earnings per share, which excludes certain one-time items, increased from $0.67 in 1999 to $1.23 in 2000 despite a smaller increase in net income, reflecting share repurchases.
This annual report summarizes Corning Inc.'s financial performance in 2001, which saw a significant downturn from 2000 due to challenging conditions in the telecommunications sector and global economic weakness. Net sales fell 12% to $6.3 billion and the company reported a net loss of $5.5 billion compared to net income of $409 million in 2000. Corning took actions to reduce costs, including eliminating 12,000 jobs and closing plants. However, the company ended 2001 with $2.2 billion in cash and believes it is well positioned financially and strategically for long-term growth opportunities in key markets like optical fiber and displays.
The annual report summarizes Corning's financial performance in 2002, a challenging year due to the downturn in the telecommunications industry. Corning reported a net loss of $1.3 billion on sales of $3.2 billion, down significantly from 2001. In response, Corning restructured operations, cutting costs and jobs to preserve its financial position. It aims to return to profitability in 2003 by focusing on growing its display glass, environmental, and semiconductor businesses within Corning Technologies. While telecommunications remains weak, Corning maintains its leadership in optical fiber and intends to benefit when the market rebounds.
Corning Inc. is a 152-year-old diversified technology company that focuses on high-impact growth opportunities through specialty glass, ceramics, polymers, and light manipulation. It develops innovative products for telecommunications, displays, environmental, life sciences, semiconductors, and other materials markets. The 2003 annual report discusses priorities of protecting financial health, returning to profitability, and continuing to invest in the future. It emphasizes growth through global innovation, achieving balance and stability, and preserving trust through living the company's values.
The document is Corning's 2006 Annual Report and 2007 Proxy Statement. It provides an overview of Corning's financial performance and highlights in 2006, including record net income and earnings per share. It discusses Corning's strategies of protecting financial health, improving profitability, and investing in the future. It also outlines Corning's leadership transition with Wendell Weeks becoming Chairman and CEO and Peter Volanakis becoming President. Key financial figures for 2006 show net sales of $5.17 billion and net income of $1.85 billion, up significantly from 2005.
Corning Inc. reported strong financial performance in its 2007 Annual Report. Net income reached an all-time high of $2.15 billion, up 16% from 2006. Sales increased 13% to $5.86 billion, driven by high demand for LCD glass and new diesel filtration products. Corning also achieved records for earnings per share at $1.34 and operating cash flow at $2.1 billion. The report discusses Corning's strategy of focusing on innovation to drive growth, maintaining financial stability, and improving business portfolio balance. Key accomplishments in 2007 included expanding LCD glass capacity and developing innovations in optical fiber and life sciences technologies.
Corning posted record performance in the first half of 2008 but experienced weak performance in the second half due to the global recession. While sales were up 21% in the first half, they declined 30% in the fourth quarter compared to the third quarter and previous year. Corning implemented cost-cutting measures like job cuts and spending reductions to prepare for a weak 2009. However, Corning remains confident in its long-term strategies and innovative products to drive future growth once the economy recovers.
Atmos Energy Corporation is a natural gas distribution and pipeline company headquartered in Dallas, Texas. In fiscal year 2008, the company reported $180.3 million in net income on $7.2 billion in operating revenues. Atmos Energy distributes natural gas to 3.2 million customers across 12 states and owns one of the largest intrastate pipeline systems in Texas. The company has grown through acquisitions, adding over 2.9 million customers since 1983, and pursues a strategy of growing its regulated and complementary nonregulated natural gas businesses.
Atmos Energy Corporation will host a conference call on February 4, 2009 at 8:00 am ET to discuss its fiscal 2009 first quarter financial results. Atmos Energy, headquartered in Dallas, is the largest natural gas-only distributor in the US, serving about 3.2 million customers across 12 states. Interested parties can access the conference call by dialing 800-218-0204 or listening online at Atmos Energy's website, where an archive of the call will also be made available until April 30, 2009.
Atmos Energy Corporation reported earnings for the first quarter of fiscal year 2009. Net income was $76.0 million, up slightly from $73.8 million in the prior year. Regulated gas distribution operations contributed $57.8 million in net income, up 25% from the prior year. The company affirmed its fiscal year 2009 earnings guidance of $2.05 to $2.15 per share, excluding mark-to-market impacts. Capital expenditures for the year are expected to be $500-$515 million.
Atmos Energy Corporation declared a quarterly dividend of 33 cents per share to shareholders of record on February 25, 2009. This marks the company's 101st consecutive quarterly dividend. Atmos Energy is the country's largest natural-gas-only distributor, serving about 3.2 million customers across 12 states. It also provides natural gas marketing and pipeline management services.
Fred Meisenheimer was promoted to senior vice president and chief financial officer of Atmos Energy Corporation. Meisenheimer has been acting as interim CFO since January 1, 2009. He joined Atmos Energy in 2000 as vice president and controller and has made valuable contributions to the company's success over eight years. Prior to joining Atmos Energy, Meisenheimer held financial and accounting roles at other energy companies.
Atmos Energy Corporation is a natural gas distribution and pipeline company headquartered in Dallas, Texas. In fiscal year 2008, the company reported $180.3 million in net income on $7.2 billion in operating revenues. Atmos Energy distributes natural gas to 3.2 million customers in 1,600 communities across 8 states. The company has grown significantly through acquisitions, adding over 2.7 million customers since 1983. Atmos Energy aims to continue growing its regulated natural gas distribution operations and complementary nonregulated energy businesses.
This document provides an overview of the nonutility operations of Atmos Energy Corporation. It discusses the corporate structure and business segments, including gas marketing, pipeline and storage, and other nonutility operations. It then provides more detailed descriptions of the storage business models, including proprietary storage, full requirements storage, billable plan storage, and parking and loaning transactions. The storage business models are explained in terms of associated risks, risk management strategies, and impact on margins.
The document discusses forward-looking statements and risks associated with them. It provides an overview of Atmos Energy, including its scope of operations across 12 states in the utility segment and 22 states in the nonutility segment. It also summarizes Atmos Energy's financial and operational performance over time, including earnings growth, dividend increases, and acquisition history such as the purchase of TXU Gas.
A conference call was scheduled for February 8, 2006 at 8:00 am EST to review the company's fiscal 2006 first quarter financial results. The company reported a net income of $100 million, up 19% from the prior year quarter. Earnings per share were $0.88, up 11% from the previous year. Key drivers included a contribution from acquisitions and weather that was colder than the prior year. The utility segment saw higher throughput and gross profit.
The document summarizes a conference call to review the company's fiscal 2006 second quarter financial results. Key points from the quarter include a 1.3% increase in net income compared to the prior year quarter, driven by higher contributions from the natural gas marketing segment due to favorable storage and marketing positions. Earnings per share increased 1.3% while operating expenses rose due to higher employee, bad debt, and regulatory costs. Weather during the quarter was warmer than normal, negatively impacting utility throughput.
The document discusses a conference call to review the company's fiscal 2006 third quarter financial results. It provides details on the company's net income, earnings per share, capital expenditures, and performance by business segment for the quarter. The company reported a net loss for the quarter, driven by unrealized mark-to-market losses in natural gas marketing and warmer than normal weather across many utility divisions.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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The Universal Account Number (UAN) by EPFO centralizes multiple PF accounts, simplifying management for Indian employees. It streamlines PF transfers, withdrawals, and KYC updates, providing transparency and reducing employer dependency. Despite challenges like digital literacy and internet access, UAN is vital for financial empowerment and efficient provident fund management in today's digital age.
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Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
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Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
1. Avis Budget Car Rental, LLC
Consolidated Financial Statements and Management’s
Discussion and Analysis of Financial Condition
And Results of Operations for the
Three Months Ended March 31, 2007
2. TABLE OF CONTENTS
Page
Forward-looking Statements 1
Financial Statements:
Consolidated Condensed Statements of Income for the Three Months Ended March 31, 2007 and 2006 3
Consolidated Condensed Balance Sheets as of March 31, 2007 and December 31, 2006 4
Consolidated Condensed Statements of Cash Flows for the Three Months Ended March 31, 2007 and 2006 5
Consolidated Condensed Statement of Stockholder’s Equity for the Three Months Ended March 31, 2007 7
Notes to Consolidated Condensed Financial Statements 8
Management’s Discussion and Analysis of Financial Condition and Results of Operations 19
Exhibit Index 25
3. FORWARD-LOOKING STATEMENTS
The forward-looking statements contained herein are subject to known and unknown risks, uncertainties and other factors
which may cause our actual results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements
are based on various facts and were derived utilizing numerous important assumptions and other important factors that could
cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements include the
information concerning our future financial performance, business strategy, projected plans and objectives. Statements
preceded by, followed by or that otherwise include the words “believes”, “expects”, “anticipates”, “intends”, “projects”,
“estimates”, “plans”, “may increase”, “may fluctuate” and similar expressions or future or conditional verbs such as “will”,
“should”, “would”, “may” and “could” are generally forward-looking in nature and not historical facts. You should
understand that the following important factors and assumptions could affect our future results and could cause actual results
to differ materially from those expressed in such forward-looking statements:
• the high level of competition in the vehicle rental industry and the impact such competition may have on
pricing and rental volume;
• an increase in the cost of new vehicles;
• a decrease in our ability to acquire or dispose of cars generally through repurchase or guaranteed depreciation
programs and/or dispose of vehicles through sales of vehicles in the used car market;
• a decline in the results of operations or financial condition of the manufacturers of our cars;
• a downturn in airline passenger traffic in the United States or in the other international locations in which we
operate;
• an occurrence or threat of terrorism, pandemic disease, natural disasters or military conflict in the markets in
which we operate;
• our dependence on third-party distribution channels;
• a disruption or decline in rental activity, particularly during our peak season or in key market segments;
• a disruption in our ability to obtain financing for our operations, including the funding of our vehicle fleet via
the asset-backed securities and lending market;
• a significant increase in interest rates or in borrowing costs;
• our failure to increase or decrease appropriately the size of our fleet due to the seasonal nature of our business;
• our ability to accurately estimate our future results;
• our ability to implement our strategy for growth;
• a major disruption in our communication or centralized information networks;
• our failure or inability to comply with regulations or any changes in regulations;
• our failure or inability to make the changes necessary to operate effectively now that we operate independently
from the former real estate, hospitality and travel distribution businesses following the separation of those
businesses from our parent company during third quarter 2006;
• other business, economic, competitive, governmental, regulatory, political or technological factors affecting
our operations, pricing or services;
• risks inherent in the restructuring of the operations of Budget Truck Rental;
1
4. • risks inherent in the separation and related transactions, including risks related to our new borrowings, and
costs of the separation; and
• the terms of agreements among the separated companies, including the allocations of assets and liabilities,
including contingent liabilities and guarantees, commercial arrangements and the performance of each of the
separated companies’ obligations under these agreements;
Other factors and assumptions not identified above were also involved in the derivation of these forward-looking statements,
and the failure of such other assumptions to be realized as well as other factors may also cause actual results to differ
materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond our control.
You should consider the areas of risk described above in connection with any forward-looking statements that may be made
by us and our businesses generally. Except for our ongoing obligations to disclose material information under the federal
securities laws, we undertake no obligation to release any revisions to any forward-looking statements, to report events or to
report the occurrence of unanticipated events unless required by law.
2
5. Avis Budget Car Rental, LLC
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
Unaudited
(In millions)
Three Months Ended
March 31,
2007 2006
Revenues
Vehicle rental $ 1,077 $ 1,065
Other 281 254
Net revenues 1,358 1,319
Expenses
Operating, net 711 699
Vehicle depreciation and lease charges, net 362 330
Selling, general and administrative 148 158
Vehicle interest, net 71 91
Non-vehicle related depreciation and amortization 23 18
Interest expense related to corporate debt, net 34 (14)
Separation costs 2 -
Total expenses 1,351 1,282
Income before income taxes 7 37
Provision for income taxes 3 14
Net income $ 4$ 23
See Notes to Consolidated Condensed Financial Statements.
3
6. Avis Budget Car Rental, LLC
CONSOLIDATED CONDENSED BALANCE SHEETS
Unaudited
(In millions)
March 31, December 31,
2007 2006
Assets
Current assets:
Cash and cash equivalents $ 201 $ 130
Receivables, net 419 367
Other current assets 190 181
Due from Avis Budget Group, Inc. and affiliates, net 33 -
Total current assets 843 678
Property and equipment, net 481 486
Deferred income taxes 86 173
Goodwill 2,193 2,193
Other intangibles, net 738 738
Other non-current assets 69 61
Total assets exclusive of assets under vehicle programs 4,410 4,329
Assets under vehicle programs:
Program cash 19 14
Vehicles, net 8,143 7,049
Receivables from vehicle manufacturers and other 178 276
Investment in Avis Budget Rental Car Funding (AESOP) LLC – related party 347 361
8,687 7,700
Total assets $ 13,097 $ 12,029
Liabilities and stockholder’s equity
Current liabilities:
Accounts payable and other current liabilities $ 732 $ 655
Current portion of long-term debt 25 25
Deferred income taxes 2 2
Due to Avis Budget Group, Inc. and affiliates, net - 154
Total current liabilities 759 836
Long-term debt 1,794 1,813
Income tax payable 9 -
Other non-current liabilities 395 390
Total liabilities exclusive of liabilities under vehicle programs 2,957 3,039
Liabilities under vehicle programs:
Debt 844 759
Debt due to Avis Budget Rental Car Funding (AESOP) LLC—related party 5,554 4,511
Deferred income taxes 1,255 1,206
Other 178 203
7,831 6,679
Commitments and contingencies (Note 11)
Stockholder’s equity:
Common stock, $.01 par value—authorized 1,000 shares; issued
and outstanding 100 shares - -
Additional paid-in capital 1,170 1,170
Retained earnings 1,071 1,071
Accumulated other comprehensive income 68 70
Total stockholder’s equity 2,309 2,311
Total liabilities and stockholder’s equity $ 13,097 $ 12,029
See Notes to Consolidated Condensed Financial Statements.
4
7. Avis Budget Car Rental, LLC
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Unaudited
(In millions)
Three Months Ended
March 31,
2007 2006
Operating Activities
Net income $ 4 $ 23
Adjustments to reconcile income to net cash provided by operating activities exclusive of
vehicle programs:
Non-vehicle related depreciation and amortization 23 18
Deferred income taxes (5) 7
Net change in assets and liabilities, excluding the impact of acquisitions and
dispositions:
Receivables 1 6
Accounts payable and other current liabilities 32 (78)
Other, net (26) (17)
Net cash provided by (used in) operating activities exclusive of vehicle programs 29 (41)
Vehicle programs:
Vehicle depreciation 352 317
Net cash provided by operating activities 381 276
Investing activities
Property and equipment additions (20) (13)
Net assets acquired (net of cash acquired) and acquisition-related payments - (13)
Proceeds received on asset sales 4 4
Other, net (4) 1
Net cash used in investing activities exclusive of
vehicle programs (20) (21)
Vehicle programs:
Increase in program cash (5) (15)
Investment in vehicles (3,476) (3,932)
Payments received on investment in vehicles 2,067 3,091
Other, net - (7)
(1,414) (863)
Net cash used in investing activities (1,434) (884)
Financing activities
Principal payments on borrowings (19) -
Decrease in due from Avis Budget Group, Inc. and affiliates, net 18 43
Net cash provided by financing activities exclusive of vehicle programs (1) 43
Vehicle programs:
Proceeds from borrowings 3,368 3,562
Principal payments on long term borrowings (2,297) (3,026)
Net change in short term borrowings 54 43
Other, net - (5)
1,125 574
Net cash provided by financing activities 1,124 617
5
8. Avis Budget Car Rental, LLC
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Continued)
Unaudited
(In millions)
Three Months Ended
March 31,
2007 2006
Effect of changes in exchange rates on cash and cash equivalents - (1)
Net increase in cash and cash equivalents 71 8
Cash and cash equivalents, beginning of period 130 58
Cash and cash equivalents, end of period $ 201 $ 66
See Notes to Consolidated Condensed Financial Statements.
6
9. Avis Budget Car Rental, LLC
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDER’S EQUITY
Unaudited
(In millions)
Accumulated
Additional Other
Paid-in Retained Comprehensive
Capital Earnings Income Total
Balance at December 31, 2006 $ 1,170 $ 1,071 $ 70 $ 2,311
Cumulative effect of the adoption of FIN 48 - (4) - (4)
Balance at January 1, 2007 1,170 1,067 70 2,307
Comprehensive income:
Net income - 4 -
Currency translation adjustment - - 9
Unrealized gains on cash flow
hedges, net of tax of $(7) - - (11)
Total comprehensive income 2
Balance at March 31, 2007 $ 1,170 $ 1,071 $ 68 $ 2,309
See Notes to Consolidated Condensed Financial Statements.
7
10. Avis Budget Car Rental, LLC
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unless otherwise noted, all amounts are in millions)
Unaudited
1. Basis of Presentation and Recently Issued Accounting Pronouncements
Basis of Presentation.
Avis Budget Car Rental, LLC (the “Company”), a wholly-owned subsidiary of Avis Budget Group, Inc. (formerly
Cendant Corporation) (“ABGI”), provides car and truck rentals and ancillary services to businesses and consumers in the
United States and internationally.
The Company operates in the following business segments:
• Domestic Car Rental—provides car rentals and ancillary products and services in the United States.
• International Car Rental—provides car rentals and ancillary products and services primarily in Canada,
Argentina, Australia, New Zealand, Puerto Rico, and the U.S. Virgin Islands.
• Truck Rental—provides truck rentals and related services to consumers and light commercial users in the
United States.
The accompanying Consolidated Financial Statements include the accounts and transactions of Avis Rent A Car System,
LLC (“Avis”) and Budget Rent A Car System, Inc. (“Budget”), both of which are wholly-owned subsidiaries of the
Company.
In presenting the Consolidated Financial Statements, management makes estimates and assumptions that affect the
amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information.
Accordingly, actual results could differ from those estimates. In management’s opinion, the Consolidated Condensed
Financial Statements contain all normal recurring adjustments necessary for a fair presentation of interim results
reported. The results of operations reported for interim periods are not necessarily indicative of the results of operations
for the entire year or any subsequent interim period. The accompanying unaudited Consolidated Condensed Financial
Statements of the Company have been prepared in accordance with Accounting Principles Board Opinion No. 28
“Interim Financial Reporting” and the rules and regulations of the Securities Exchange Commission applicable to interim
financial reporting. As the accompanying interim financial statements present summarized financial information, they
should be read in conjunction with the Company’s 2006 Consolidated Financial Statements.
Prior to 2007, certain corporate and general and administrative expenses (including those related to executive
management, tax, insurance, accounting, legal and treasury services, purchasing, facilities, human resources, certain
employee benefits, information technology, telecommunications, call centers, marketing and real estate usage) have been
.allocated by ABGI to the Company based on forecasted revenues, headcount or actual utilization of the services, as
applicable. Beginning January 2007, the Company discontinued the general corporate overhead expense allocation from
ABGI. Instead the Company allocates to ABGI a percentage of the Company’s general and administrative overhead
expenses that are related to publicly-traded company functions. Management believes such allocations are reasonable.
However, the associated expenses recorded by the Company in the accompanying Consolidated Statements of Income
may not be indicative of the actual expenses that might have been incurred had the Company performed these functions
using internal resources or purchased services. Refer to Note 12—Related Party Transactions, for a detailed description
of the Company’s transactions with ABGI.
Vehicle Programs. The Company presents separately the financial data of its vehicle programs. These programs are
distinct from the Company’s other activities since the assets are generally funded through the issuance of debt that is
collateralized by such assets. Assets under vehicle programs are funded through borrowings under asset-backed funding
or other similar arrangements. The income generated by these assets is used, in part, to repay the principal and interest
associated with the debt. Cash inflows and outflows relating to the generation or acquisition of such assets and the
principal debt repayment or financing of such assets are classified as activities of the Company’s vehicle programs. The
Company believes it is appropriate to segregate the financial data of its vehicle programs because, ultimately, the source
of repayment of such debt is the realization of such assets.
8
11. Acquisitions. Assets acquired and liabilities assumed in business combinations were recorded on the Company’s
Consolidated Condensed Balance Sheets as of the respective acquisition dates based upon their estimated fair values at
such dates. The results of operations of businesses acquired by the Company have been included in the Company’s
Consolidated Condensed Statements of Income since their respective dates of acquisition. The excess of the purchase
price over the estimated fair values of the underlying assets acquired and liabilities assumed was allocated to goodwill.
In certain circumstances, the allocations of the excess purchase price are based upon preliminary estimates and
assumptions. Accordingly, the allocations may be subject to revision when the Company receives final information,
including appraisals and other analyses. Any revisions to the fair values will be recorded by the Company as further
adjustments to the purchase price allocations.
Separation. During first quarter 2007, the Company incurred separation related charges of $2 million in connection with
this plan, consisting primarily of employee stock-based compensation charges and other employee costs.
In connection with the separation plan, during April 2006, the Company issued $1.0 billion of fixed and floating rate
senior unsecured notes and borrowed $875 million under a new $2.4 billion secured facility consisting of a $1.5 billion
revolving credit facility with a five-year maturity and a term loan of $875 million with a six-year maturity (see Note 7 –
Long-term Debt and Borrowing Arrangements for further information).
Changes in Accounting Policies during 2007
Accounting for Uncertainty in Income Taxes. In June 2006, the Financial Accounting Standards Board (“FASB”) issued
FIN 48, which is an interpretation of SFAS No. 109, “Accounting for Income Taxes.” FIN 48 prescribes a recognition
threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or
expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to
be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit
that is greater than 50 percent likely of being realized upon ultimate settlement. The Company adopted the provisions of
FIN 48 effective January 1, 2007, as required, and recorded an after tax charge to stockholder’s equity of $4 million,
which represents the recognition of $3 million of accrued interest and an increase of $1 million in the liability for
unrecognized tax benefits.
Including the impact of the adoption of FIN 48 discussed above, the Company’s unrecognized tax benefits totaled $9
million as of January 1, 2007, $5 million of which would affect the annual effective income tax rate, if recognized. In
connection with ABGI’s adoption of FIN 48, the Company reduced alternative minimum tax credit and net operating
loss carryforwards in the amount of $94 million and $60 million, respectively.
ABGI and the Internal Revenue Service (“IRS”) have settled the IRS examination for the federal consolidated income
tax group’s taxable years 1998 through 2002. The IRS has begun to examine ABGI and the Company’s taxable years
2003 through 2006. In addition, the IRS has begun to examine Avis Group Holdings, LLC and its consolidated
subsidiaries for the taxable years 1998 through 2002.
During the three months ended March 31, 2007, the Company’s unrecognized tax benefits did not significantly change.
As of March 31, 2007, the unrecognized tax benefits in the long-term income taxes payable were $9 million. The
Company does not anticipate that total unrecognized tax benefits will significantly change due to the settlement of audits
or the expiration of statute of limitations within twelve months.
Including the impact of the adoption of FIN 48 discussed above, the Company’s accrual for the payment of potential
interest associated with uncertain tax positions was $3 million as of January 1, 2007. During the three months ended
March 31, 2007, the Company recorded minimal additional liabilities for the payment of interest. The Company
recognizes potential interest related to unrecognized tax benefits within interest expense related to corporate debt, net on
the accompanying Consolidated Condensed Statement of Income. Penalties, if incurred, would be recognized as a
component of income taxes.
Changes in Accounting Policies during 2006
During 2006, the Company revised how it records the utilization of its net operating loss carryforwards by other entities
within the ownership structure of the Company’s parent, ABGI. The Company determined it would be preferable to
record the utilization of its net operating loss carryforwards as a transfer of assets among related parties reflected in the
Company’s intercompany balance with ABGI. Previously, the Company reflected such utilization as a charge to its
deferred income tax provision with a corresponding benefit recorded within its current income tax provision.
9
12. The adoption of this change in accounting policy resulted in an approximately $33 million decrease to the Company’s
deferred income tax provision with a corresponding increase to the Company’s current income tax provision for the three
months ended March 31, 2006. Such adoption did not affect the Company’s reported earnings or financial position. The
following schedule presents the effect by financial statement line item of this change on prior years:
As Originally Change in As
Reported Policy Adjusted
Consolidated Statement of Cash Flows for the Three Months Ended
March 31, 2006
Deferred income tax $ 40 $ (33) $ 7
Income taxes due from ABGI (31) 31 -
Decrease (increase) in due from Avis Budget Group, Inc. and affiliates, net 41 2 43
Recently Issued Accounting Pronouncements
In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities
— Including an amendment of FASB Statement No. 115,” (“SFAS No. 159”). SFAS No. 159 permits a company to
irrevocably elect fair value as the initial and subsequent measurement attribute for certain financial assets and financial
liabilities on a contract-by-contract basis, with changes in fair value recognized in earnings. The Company will adopt
SFAS No. 159 on January 1, 2008, as required, and is currently evaluating the impact of such adoption on its financial
statements.
In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements” (“SFAS No. 157”) which defines fair
value, establishes a framework for measuring fair value and expands disclosure about fair value measurements.
SFAS No. 157 is effective for fiscal years beginning after November 15, 2007. The Company will adopt SFAS No. 157
on January 1, 2008, as required, and is currently evaluating the impact of such adoption on its financial statements.
2. Intangible Assets
As of March 31, 2007 and December 31, 2006, intangible assets consisted of:
Gross Net
Carrying Accumulated Carrying
Amount Amortization Amount
Amortized Intangible Assets
Franchise agreements (a) $ 75 $ 16 $ 59
Customer lists (b) 19 6 13
$ 94 $ 22 $ 72
Unamortized Intangible Assets
Goodwill $ 2,193
Trademarks (c) $ 666
____________
(a)
Primarily amortized over a period ranging from 2 to 40 years.
(b)
Primarily amortized over 20 years.
(c)
Comprised of various tradenames (including the Avis and Budget tradenames) that the Company has acquired and which
distinguish the Company’s consumer services. These tradenames are expected to generate future cash flows for an indefinite
period of time.
Amortization expense relating to all intangible assets was less than $1 million during both first quarter 2007 and 2006.
Based on the Company’s amortizable intangible assets at March 31, 2007, the Company expects amortization expense of
approximately $2 million for the remainder of 2007 and $3 million for each of the five succeeding fiscal years therafter.
As of March 31, 2007 and December 31, 2006, the carrying amount of goodwill consisted of:
Domestic Car Rental $ 1,355
International Car Rental 595
Truck Rental 243
Total Company $ 2,193
10
13. 3. Restructuring Charges
During fourth quarter 2006, the Company committed to various strategic initiatives targeted principally at reducing costs,
enhancing organizational efficiency and consolidating and rationalizing existing processes and facilities within its
Budget Truck Rental and Domestic Car Rental operations. The more significant areas of cost reduction include the
closure of the Budget Truck Rental headquarters and other facilities and reductions in staff. In connection with these
initiatives, the Company recorded a restructuring charge of $8 million in 2006, substantially all of which is anticipated to
be paid in cash.
The initial recognition of the restructuring charge and the corresponding utilization from inception are summarized by
category as follows:
Personnel Facility
Related (a) Related (b) Total
Initial charge $ 4$ 4$ 8
Cash payments - (1) (1)
Balance at December 31, 2006 4 3 7
Cash payments (2) - (2)
Balance at March 31, 2007 $ 2$ 3$ 5
____________
(a)
The initial charge primarily represents severance benefits resulting from reductions in staff. The Company formally
communicated the termination of employment to approximately 180 employees, representing a wide range of employee groups.
As of March 31, 2007, the Company had terminated approximately 160 of these employees.
(b)
The initial charge principally represents costs incurred in connection with facility closures and lease obligations resulting from
the closure of the Truck Rental headquarters, consolidation of Truck Rental operations and the closure of other facilities within
the Company’s Domestic Car Rental operations.
4. Vehicle Rental Activities
The components of the Company’s vehicles, net within assets under vehicle programs are as follows:
As of As of
March 31, December 31,
2007 2006
Rental vehicles $ 9,023 $ 7,738
Vehicles held for sale 158 304
9,181 8,042
Less: Accumulated depreciation (1,038) (993)
$ 8,143 $ 7,049
The components of vehicle depreciation and lease charges, net are summarized below:
Three Months Ended
March 31,
2007 2006
Depreciation expense $ 352 $ 317
Lease charges 14 16
Gain on sales of vehicles, net (4) (3)
$ 362 $ 330
During the three months ended March 31, 2007, vehicle interest, net on the accompanying Consolidated Condensed
Statements of Income excludes $35 million of interest expense related to the fixed and floating rate borrowings of the
Company. Such interest is recorded within interest expense related to corporate debt, net on the accompanying
Consolidated Condensed Statements of Income.
5. Income Taxes
The Company’s effective tax rate for the three months ended March 31, 2007 is 42.9%. Such rate differs from the
Federal statutory rate of 35.0% primarily due to state and local income taxes. In addition, the Company established a
valuation allowance related to state deferred tax assets.
11
14. 6. Accounts Payable and Other Current Liabilities
Accounts payable and other current liabilities consisted of:
As of As of
March 31, December 31,
2007 2006
Accounts payable $ 203 $ 208
Accrued payroll and related 127 86
Public liability and property damage insurance liabilities (a) 116 116
Other 286 245
$ 732 $ 655
____________
(a)
The non-current liability related to public liability and property damage insurance was $263 million and $260 million at March
31, 2007 and December 31, 2006, respectively.
7. Long-term Debt and Borrowing Arrangements
Long-term debt consisted of:
As of As of
Date 2007 2006
Floating rate term loan April 2012 $ 819 $ 838
Floating rate notes May 2014 250 250
7⅝% notes May 2014 375 375
7¾% notes May 2016 375 375
Total long-term debt 1,819 1,838
Less: Current portion 25 25
Long-term debt $ 1,794 $ 1,813
At March 31, 2007, the committed credit facilities available to the Company were as follows:
Total Outstanding Letters of Available
Capacity Borrowings Credit Issued Capacity
$1.5 billion revolving credit facility (a) $ 1,500 $ -$ 343 $ 1,157
____________
(a) This secured revolving credit facility was entered into by the Company in April 2006, has a five year term and currently bears
interest at one month LIBOR plus 125 basis points.
The Company’s debt agreements contain restrictive covenants, including restrictions on dividends, the incurrence of
indebtedness by the Company and certain of its subsidiaries, mergers, liquidations, and sale and leaseback transactions.
The credit facility also requires the maintenance of certain financial ratios. As of March 31, 2007, the Company is not
aware of any instances of non-compliance with such financial or restrictive covenants.
12
15. 8. Debt Under Vehicle Programs and Borrowing Arrangements
Debt under vehicle programs (including related party debt due to Avis Budget Rental Car Funding (AESOP), LLC
(“Avis Budget Rental Car Funding”)) consisted of:
As of As of
March 31, December 31,
2007 2006
Debt due to Avis Budget Rental Car Funding (a) $ 5,554 $ 4,511
Budget Truck Financing:
Budget Truck Funding program 154 135
Capital leases 244 257
Other (b) 446 367
$ 6,398 $ 5,270
__________
(a)
The change in the balance at March 31, 2007 principally reflects increased borrowings under the Company’s extendible
commercial paper program and conduit facility during first quarter 2007 to support the acquisition of rental vehicles within the
Company’s domestic car rental operations.
(b)
The change in the balance at March 31, 2007 primarily reflects incremental borrowings under the Company’s bank loan and
commercial paper conduit facilities to support the acquisition of vehicles in its international operations.
Avis Budget Rental Car Funding. Avis Budget Rental Car Funding, an unconsolidated bankruptcy remote qualifying
special purpose limited liability company, issues private placement notes that are typically “AAA” rated, and has its
principal and interest payments guaranteed by independent insurance companies. Avis Budget Rental Car Funding then
uses the proceeds from such issuances to make loans to a wholly-owned subsidiary of the Company, AESOP Leasing LP
(“AESOP Leasing”) on a continuing basis. By issuing debt through the AESOP program, Avis Budget pays a lower rate
of interest than if the Company had issued debt directly to third parties. AESOP Leasing is then required to use these
proceeds to acquire or finance the acquisition of vehicles used in the Company’s rental car operations. As a result,
AESOP Leasing’s obligation to Avis Budget Rental Car Funding is reflected as related party debt on the Company’s
Consolidated Condensed Balance Sheet as of March 31, 2007 and December 31, 2006. The Company also recorded an
asset within assets under vehicle programs on its Consolidated Condensed Balance Sheets at March 31, 2007 and
December 31, 2006, which represented the equity issued to the Company by Avis Budget Rental Car Funding. The
vehicles purchased by AESOP Leasing remain on the Company’s Consolidated Condensed Balance Sheet as AESOP
Leasing is consolidated by the Company. Such vehicles and related assets, which approximate $7.5 billion, (the majority
of which are subject to manufacturer repurchase and guaranteed depreciation agreements) collateralize the debt issued by
Avis Budget Rental Car Funding, and are not available to pay the obligations of the Company.
The business activities of Avis Budget Rental Car Funding are limited primarily to issuing indebtedness and using the
proceeds thereof to make loans to AESOP Leasing for the purpose of acquiring or financing the acquisition of vehicles to
be leased to the Company’s rental car subsidiary and pledging its assets to secure the indebtedness. Because Avis Budget
Rental Car Funding is not consolidated by the Company, its results of operations and cash flows are not reflected with
the Company’s Consolidated Condensed Financial Statements. Borrowings under the Avis Budget Rental Car Funding
program primarily represent floating rate term notes with a weighted average interest rate of 5% as of both March 31,
2007 and December 31, 2006.
Truck financing. Budget Truck financing consists of debt outstanding under the Budget Truck Funding program and
capital leases. The Budget Truck Funding program constitues debt facilities established by the Company to finance the
acquisition of the Budget truck rental fleet. The borrowings under the Budget Truck Funding program are collateralized
by $164 million of corresponding assets and are floating rate term loans with a weighted average interest rate of 5% as of
March 31, 2007 and December 31, 2006. The Company has also obtained a portion of its truck rental fleet under capital
lease arrangements for which there are corresponding net assets of $258 million and $252 million classified within
vehicles, net on the Company’s Consolidated Condensed Balance Sheets as of March 31, 2007 and December 31, 2006,
respectively.
Other. Borrowings under the Company’s other vehicle rental programs represent amounts issued under financing
facilities that provide for the issuance of notes to support the acquisition of vehicles used in the Company’s international
vehicle rental operations. The debt issued is collateralized by $838 million of vehicles and related assets and primarily
represents floating rate bank loans and commercial paper for which the weighted average interest rate was 5% as of
March 31, 2007 and December 31, 2006.
13
16. The following table provides the contractual maturities of the Company’s debt under vehicle programs (including related
party debt due to Avis Budget Rental Car Funding) at March 31, 2007:
Vehicle-Backed Capital
Debt Leases Total
Within 1 year $ 1,432 $ 92 $ 1,524
Between 1 and 2 years 1,725 115 1,840
Between 2 and 3 years 803 37 840
Between 3 and 4 years 1,508 - 1,508
Between 4 and 5 years - - -
Thereafter 686 - 686
$ 6,154 $ 244 $ 6,398
As of March 31, 2007, available funding under the Company’s vehicle programs (including related party debt due to
Avis Budget Rental Car Funding) consisted of:
Total Outstanding Available
Capacity (a) Borrowings Capacity
Debt due to Avis Budget Rental Car Funding $ 6,519 $ 5,554 $ 965
Budget Truck financing:
Budget Truck Funding program 200 154 46
Capital leases 244 244 -
Other 1,113 446 667
$ 8,076 $ 6,398 $ 1,678
____________
(a) Capacity is subject to maintaining sufficient assets to collateralize debt.
Debt agreements under the Company’s vehicle-backed funding programs contain restrictive covenants, including
restrictions on dividends paid to the Company by certain of its subsidiaries and indebtedness of material subsidiaries,
mergers, limitations on liens, liquidators, and sale and leaseback transactions, and also require the maintenance or certain
financial ratios. As of March 31, 2007, the Company is not aware of any instances of non-compliance with such
financial or restrictive covenants.
9. Accumulated Other Comprehensive Income
The after-tax components of accumulated other comprehensive income are as follows:
Unrealized Minimum Accumulated
Currency Gains(Losses) Pension Other
Translation on Cash Flow Liability Comprehensive
Adjustments Hedges Adjustment Income(Loss)
Balance, January 1, 2007 $ 70 $ 30 $ (30) $ 70
Current period change 9 (11) 0 (2)
Balance, March 31, 2007 $ 79 $ 19 $ (30) $ 68
All components of accumulated other comprehensive income are net of tax except currency translation adjustments,
which exclude income taxes related to indefinite investments in foreign subsidiaries.
10. Stock-Based Compensation
The Company records compensation expense for all outstanding employee stock awards. The Company recorded pretax
stock-based compensation expense of $4 million and $2 million ($2 million and $1 million, after tax) during first quarter
2007 and 2006, respectively, related to employee stock awards that were granted or modified by the Company.
14
17. The activity related to the Company’s restricted stock units (RSUs) and stock option plans consisted of (in thousands of
shares):
Three Months Ended March 31, 2007
RSUs Options
Weighted
Weighted Average
Number Average Number Exercise
Grant Price of Options (c)
of RSUs Price
Balance at January 1, 2007 1,774 $ 24.33 697 $ 24.43
Granted at fair market value 1,138 25.85 - -
Vested/exercised (a) - - (8) 26.16
Cancelled (52) 24.42 - -
Balance at March 31, 2007 (b) 2,860 24.96 ______ 689 24.49
__________
(a)
Stock options exercised during first quarter 2007 had insignificant intrinsic value.
(b)
As of March 31, 2007, the Company’s outstanding “in-the-money” stock options and RSUs had aggregate intrinsic value of
$2 million and $78 million, respectively. Aggregate unrecognized compensation expense related to outstanding stock options and
RSUs amounted to $62 million as of March 31, 2007.
(c)
All options outstanding as of March 31, 2007 are exercisable and have a weighted average remaining contractual life of 3.7 years.
The table below summarizes information regarding the Company’s outstanding and exercisable stock options as of
March 31, 2007 (in thousands of shares):
Range of Number of
Options (*)
Exercise Prices
Less than $20.00 168
$20.01 to $25.00 99
$25.01 to $30.00 335
$30.01 to $35.00 87
$35.01 and above -
689
__________
(*)
All outstanding stock options vested in connection with the completion of the separation.
As of March 31, 2007, the Company also had approximately 0.5 million outstanding stock appreciation rights with a
weighted average exercise price of $24.40, a weighted average remaining contractual life of 6.3 years and unrecognized
compensation expense of $4 million.
11. Commitments and Contingencies
Commitments to Purchase Vehicles
The Company maintains agreements with vehicle manufacturers, which require the Company to purchase approximately
$5.4 billion of vehicles from these manufacturers over the next two years. These commitments are subject to the vehicle
manufacturers’ satisfying their obligations under the repurchase and guaranteed depreciation agreements. The Company
featured suppliers for the Avis and Budget brands are General Motors Corporation and Ford Motor Company,
respectively. The purchase of such vehicles is financed through the issuance of vehicle-backed debt in addition to cash
received upon the sale of vehicles under repurchase and guaranteed depreciation programs.
Contingencies
The Company is also involved in claims, legal proceedings and governmental inquiries related to its vehicle rental
operations, including contract disputes, business practices, intellectual property, environmental issues and other
commercial, employment and tax matters, including breach of contract claims by licensees. The Company believes that it
has adequately accrued for such matters as appropriate or, for matters not requiring accrual, believes that they will not
have a material adverse effect on its results of operations, financial position or cash flows based on information currently
available. However, litigation is inherently unpredictable and, although the Company believes that its accruals are
adequate and/or that it has valid defenses in these matters, unfavorable resolutions could occur, which could have a
material adverse effect on the Company’s results of operations or cash flows in a particular reporting period.
15
18. Concentrations
Concentrations of credit risk at March 31, 2007 include risks related to the Company’s repurchase and guaranteed
depreciation agreements with General Motors Corporation and Ford Motor Company with respect to program cars that
were sold and returned to the car manufacturers but for which the Company has not yet received payment.
12. Related Party Transactions
As a subsidiary of ABGI, the Company is involved in various relationships with ABGI and its other former subsidiaries.
Following is a description of the Company’s transactions with ABGI and other related parties.
Transactions with ABGI and affiliates
Prior to 2007, the Company was allocated general corporate overhead expenses from ABGI for corporate-related
functions based on a percentage of the Company’s forecasted revenues. General corporate overhead expense allocations
included executive management, tax, insurance, accounting, legal and treasury services, purchasing, facilities, human
resources, certain employee benefits, information technology, telecommunications, call centers and real estate usage. For
the three months ended March 31, 2006, the Company was allocated $16 million of general corporate overhead expenses
from ABGI, which were included within the general and administrative expenses line item on the accompanying
Consolidated Condensed Statements of Income. Beginning January 2007, the Company discontinued the general
corporate overhead expense allocation from ABGI. Instead the Company allocates to ABGI a percentage of the
Company’s general and administrative overhead expenses that are related to publicly-traded company functions. The
general and administrative expense allocations include executive management and benefits, legal, external reporting,
financial planning, investor relations and audit and are based on a percentage of time devoted to ABGI public company
functions. For the three months ended March 31, 2007, the Company allocated $2.2 million of general and administrative
expenses to ABGI, which is reflected as a reduction of the selling, general and administrative expenses line item on the
accompanying Consolidated Condensed Statement of Income.
ABGI also incurs certain expenses which directly benefit the Company and are allocated to the Company in accordance
with various intercompany agreements, which are based upon factors such as square footage, headcount and actual
utilization of the services. Direct allocations include costs associated with human resources, insurance, facilities, finance,
treasury, marketing, purchasing and corporate real estate. For the three months ended March 31, 2007 and 2006, the
Company was allocated $0.4 million and $10 million, respectively, of expenses directly benefiting the Company, which
are included in the general and administrative expenses line item on the accompanying Consolidated Condensed
Statements of Income. In 2007 the allocation reflects only human resource services.
The Company believes the assumptions and methodologies underlying the allocations of general corporate overhead and
direct expenses are reasonable. However, such expenses are not indicative of, nor is it practical or meaningful for the
Company to estimate for all historical periods presented, the actual level of expenses that might have been incurred had
the Company been operating as an independent company.
In addition to allocations received from ABGI, the Company earns revenue and incurs expenses in connection with the
following business activities conducted with ABGI and its other former subsidiaries: (i) maintained marketing
agreements with ABGI’s former timeshare resorts business whereby the Company permits ABGI’s timeshare resorts
business to market its products to callers of the Company’s customer service line; (ii) maintained marketing agreements
with ABGI’s former lodging business whereby ABGI’s lodging business permits the Company to market its products to
customers calling into the lodging reservation system; (iii) utilized ABGI’s former relocation services business for
employee relocation services, including relocation policy management, household goods moving services and departure
and destination real estate related services; (iv) utilized corporate travel management services of ABGI’s former travel
distribution business; and (v) through its Avis and Budget brands, functions as the exclusive primary and secondary
supplier, respectively, of car rental services for all of ABGI’s employees. In connection with these activities, the
Company incurred net expenses of $3 million during the three months ended March 31, 2006, which approximates the
net fair value of the services provided by or to the Company. Upon the completion of the spin-offs of Realogy,
Wyndham, and the sale of Travelport in the third quarter 2006, these relationships were no longer considered related
party transactions.
Prior to 2007, ABGI provided the Company with certain information technology support, software, hardware and
telecommunications services, primarily from ABGI’s data center in Denver, Colorado and through contracts with third
party licensors and hardware and service providers. ABGI allocated the costs for these services to the Company based on
the actual usage and the level of support the Company receives from ABGI and its service providers using pre-
16
19. determined rates. The Company incurred information technology expenses of $2 million and $13 million during the
three months ended March 31, 2007 and 2006, respectively. The Company incurred telecommunications expenses of
$0.1 million and $7 million during the three months ended March 31, 2007 and 2006, respectively. For 2007, the
majority of these costs now reside within the Company. All such expenses approximate the net fair value of the goods
and services provided to the Company.
The Company has entered into a global distribution system agreement with ABGI’s former travel distribution business in
which the Company provides car rental rates for distribution through its global distribution system and tour package
programs. Under this agreement, the Company pays a negotiated fee to Galileo, a former subsidiary of ABGI’s travel
distribution business, for each car rental reservation booked through its global distribution system. In connection with
this agreement, the Company incurred expenses of approximately $2 million during the three months ended March 31,
2006. Upon the completion of the sale of Travelport in the third quarter 2006, this relationship was no longer considered
a related party transaction.
During February 2006, the Company settled a litigation matter with respect to claims made by a purchaser of a business
sold by the Company prior to ABGI’s acquisition of the Company in 2001. The amount awarded for the settlement was
fully reserved for in connection with the acquisition. The settlement was paid by ABGI in May 2006.
Included within total expenses on the Company’s Consolidated Condensed Statements of Income are the following items
charged by ABGI and its affiliates:
Three Months Ended
March 31,
2007 2006
Rent, corporate overhead allocations and other $ - $ 29
Information technology and telecommunications (a) 2 20
Reservations (b) - 2
Interest (income) expense on amounts due to/(from) ABGI
and affiliates, net (c) - (14)
Total $ 2 $ 37
____________
(a)
Included within operating expenses, net on the Company’s Consolidated Condensed Statements of Income.
(b)
Included within selling, general and administration expenses on the Company’s Consolidated Condensed Statements of Income.
(c)
Included within non-vehicle interest expense (income), net on the Company’s Consolidated Condensed Statements of Income.
Includes $14 million of intercompany interest income related to tax benefits and working capital advances during the three
months ended March 31, 2006. The remaining balances relate to other intercompany activity with ABGI.
Due from (to) ABGI and affiliates, consisted of:
As of As of
March 31, December 31,
2007 2006
Due from (to) ABGI-income taxes (a) $ 120 $ (39)
Due to ABGI-working capital and trading, net (b) (87) (115)
Total due from (to) ABGI and affiliates, net $ 33 $ (154)
____________
(a)
Represents primarily amount due from (to) ABGI for income taxes as a result of the Company’s inclusion in ABGI’s
consolidated federal tax return.
(b)
Represents net advances of excess working capital between the Company and ABGI.
13. Segment Information
The reportable segments presented below represent the Company’s operating segments for which separate financial
information is available and is utilized on a regular basis by its chief operating decision maker to assess performance and
to allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided
by its operating segments. Management evaluates the operating results of each of its reportable segments based upon
revenue and “EBITDA,” which is defined as income from continuing operations before non-vehicle related depreciation
17
20. and amortization, non-vehicle related interest and income taxes. The Company’s presentation of EBITDA may not be
comparable to similarly-titled measures used by other companies.
Three Months Ended March 31,
2007 2006
Revenues (a) Revenues (a)
EBITDA EBITDA
Domestic Car Rental $ 1,084 $ 50 $ 1,044 $ 31
International Car Rental 191 24 174 23
Truck Rental 83 (10) 101 1
Total Company $ 1,358 64 $ 1,319 55
Less: Non-vehicle related depreciation and amortization 23 18
Interest expense related to corporate debt, net (b) 34 -
Income before income taxes $ 7 $ 37
__________
(a)
Inter-segment total revenues were not significant to the revenue of any one segment.
(b)
Does not reflect intercompany interest income of $14 million in first quarter 2006 related to
tax benefits and working capital advances, which are included within EBITDA.
Since December 31, 2006, there have been no significant changes in segment assets with the exception of the Company’s
Domestic Car Rental segment, for which assets under vehicle programs amounted to approximately $8.7 billion and
approximately $7.7 billion at March 31, 2007 and December 31, 2006, respectively.
14. Subsequent Event
On April 3, 2007, ABGI filed a registration statement with the Securities and Exchange Commission to enable holders of
the Company’s Floating Rate Senior Notes due 2014, 7⅝% Senior Notes due 2014 and 7¾% Senior Notes due 2016 to
exchange those notes for registered notes under the Securities Act.
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21. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following discussion should be read in conjunction with our Consolidated Condensed Financial Statements and
accompanying notes thereto and our 2006 Consolidated Financial Statements and accompanying notes thereto included
elsewhere herein. Unless otherwise noted, all dollar amounts are in millions and those relating to our results of operations
are presented before taxes.
We operate two of the most recognized brands in the global vehicle rental industry through Avis Rent A Car System, LLC
and Budget Rent A Car System, Inc. We provide car and truck rentals and ancillary services to businesses and consumers in
the United States and internationally.
We operate in the following business segments:
• Domestic Car Rental—provides car rentals and ancillary products and services in the United States.
• International Car Rental—provides car rentals and ancillary products and services primarily in Canada, Argentina,
Australia, New Zealand, Puerto Rico, and the U.S. Virgin Islands.
• Truck Rental—provides truck rentals and related services to consumers and light commercial users in the United
States.
Our revenues are derived principally from car and truck rentals in our Company-owned operations and include (i) time
and mileage (“T&M”) fees charged to our customers for vehicle rentals, (ii) reimbursement from our customers for certain
operating expenses we incur, including gasoline and vehicle licensing fees, as well as airport concession fees, which we pay
in exchange for the right to operate at airports and other locations, and (iii) sales of loss damage waivers and insurance, and
rentals of navigation units and other items in conjunction with vehicle rentals. We also earn royalty revenue from our
franchisees in conjunction with their vehicle rental transactions.
Car rental volumes are closely associated with the travel industry, particularly airline passenger volumes, or enplanements.
Because we operate primarily in the United States and generate a significant portion of our revenue from our on-airport
operations, we expect that our ability to generate revenue growth will be somewhat dependent on increases in domestic
enplanements. We have also experienced significant per-unit fleet cost increases on model-year 2006 and 2007 vehicles,
which have negatively impacted our margins. Accordingly, our ability to achieve profit margins consistent with prior periods
remains dependent on our ability to successfully reflect corresponding changes in our pricing programs.
Our vehicle rental operations are seasonal. Historically, the third quarter of the year has been our strongest quarter due to the
increased level of leisure travel and household moving activity. Any occurrence that disrupts rental activity during the third
quarter could have a disproportionately material adverse effect on our results of operations. We have a predominantly
variable cost structure and routinely adjust the size and, therefore, the cost of our rental fleet in response to fluctuations in
demand. However, certain expenses, such as rent, are fixed and cannot be reduced in response to seasonal fluctuations in our
operations.
We believe that the following trends, among others, may affect and/or have impacted our financial condition and results of
operations:
• Domestic enplanements, which remained relatively flat compared to first quarter 2006, but are expected to
increase modestly in 2007, assuming there are no major disruptions in travel;
• Rising per-unit car fleet costs, which we began to experience in 2005 and anticipate will continue with model-year
2008 vehicles;
• Pricing increases, which we instituted throughout 2006 in response to rising fleet costs and intend to continue to
pursue, where appropriate;
• Our continued expansion in off-airport, or local market segments, including insurance replacement rentals;
• Legislative changes in certain states that enable us to recover a greater percentage of airport concession and vehicle
licensing fees, which will continue to favorably impact our year-over-year results throughout 2007; and
• Demands for truck rentals, which can be impacted by household moving activity.
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22. RESULTS OF OPERATIONS
Discussed below are the results of operations for each of our reportable segments. The reportable segments presented below
represent our operating segments for which separate financial information is available and utilized on a regular basis by our
chief operating decision maker to assess performance and to allocate resources. In identifying our reportable segments, we
also consider the nature of services provided by our operating segments. Management evaluates the operating results of each
of our reportable segments based upon revenue and “EBITDA”, which we define as income before income taxes, non-vehicle
depreciation and amortization and interest on corporate debt, net (other than intercompany interest related to tax benefits and
working capital advances). Our presentation of EBITDA may not be comparable to similarly titled measures used by other
companies.
We measure performance using the following key operating statistics: (i) rental days, which represent the total number of
days (or portion thereof) a vehicle was rented, and (ii) T&M revenue per rental day, which represents the average daily
revenue we earned from rental and mileage fees charged to our customers. Our car rental operating statistics (rental days and
T&M revenue per rental day) are all calculated based on the actual usage of the vehicle during a 24-hour period. We believe
that this methodology, while conservative, provides our management with the most relevant statistics in order to manage the
businesses. Our calculation may not be comparable to other companies’ calculation of similarly titled statistics.
Three Months Ended March 31, 2007 vs. Three Months Ended March 31, 2006
Revenues EBITDA
% %
2007 2006 Change 2007 2006 Change
Domestic Car Rental $ 1,084 $ 1,044 4% $ 50 $ 31 61 %
International Car Rental 191 174 10 24 23 4
Truck Rental 83 101 (18) (10) 1 *
Total Company $ 1,358 $ 1,319 3 64 55 16
Less: Non-vehicle related depreciation and amortization 23 18
Interest expense related to corporate debt, net (a) 34 -
Income before income taxes $ 7$ 37
____________
(*)
Not meaningful.
(a)
Does not include intercompany interest income of $14 million in 2006 related to tax benefits
and working capital advances, which are included within EBITDA.
Domestic Car Rental
Revenues and EBITDA increased $40 million (4%) and $19 million (61%), respectively, in first quarter 2007 compared with
first quarter 2006. We achieved higher EBITDA margins principally due to higher ancillary revenues and lower expenses in
certain categories in 2007 compared to 2006.
The revenue increase of $40 million was comprised of a $17 million (2%) increase in T&M revenue and a $23 million (12%)
increase in ancillary revenues. The increase in T&M revenue includes a $12 million (8%) increase in off airport revenue and
was principally driven by a 2% increase in T&M revenue per day, while there was no change in rental days. The favorable
effect of incremental T&M revenues was offset in EBITDA by $27 million (10%) of increased fleet depreciation and lease
charges primarily resulting from increased per-unit fleet costs in 2007 for model-year 2007 vehicles compared to model-year
2006 vehicles. The average size of our domestic rental fleet decreased by 1%. The increase in per-unit fleet costs was
mitigated by an increase in the portion of our car rental fleet that is not subject to manufacturer repurchase and guaranteed
depreciation agreements. We incurred $7 million less vehicle-related interest expense during first quarter 2007 compared to
first quarter 2006, primarily due to a reduction in outstanding vehicle related debt, partially offset by increased interest rates
and the absence in 2007 of $13 million of intercompany interest income earned in 2006. The quarter-over-quarter reduction
in outstanding vehicle related debt resulted from the repayment of such debt with the proceeds from our corporate borrowings
in April 2006. Interest expense related to corporate debt is not included in EBITDA, whereas interest related to vehicle-
backed debt is included in EBITDA.
The $23 million increase in ancillary revenues was due primarily to (i) a $13 million increase in counter sales of insurance,
rentals of GPS navigation units and other items and (ii) a $10 million increase in airport concession and vehicle licensing
revenues, $2 million of which was offset in EBITDA by higher airport concession and vehicle licensing expenses remitted to
airport and other regulatory authorities. EBITDA also reflects (i) $7 million of lower gasoline expenses due to both lower
20
23. gasoline costs and a $4 million benefit from gasoline hedges we entered in late 2006 and (ii) a $6 million decrease in certain
administrative expenses, consisting primarily of corporate allocations. These cost decreases were partially offset by (i) an
$8 million increase in incentive compensation expenses and (ii) $2 million of separation related charges we incurred during
2007 primarily related to professional and consulting fees.
International Car Rental
Revenues and EBITDA increased $17 million (10%) and $1 million (4%), respectively, in first quarter 2007 compared with
first quarter 2006, primarily due to increased car rental pricing and higher demand for car rentals.
The revenue increase of $17 million was comprised of a $12 million (9%) increase in car rental T&M revenue and a $5
million (11%) increase in ancillary revenues. The increase in T&M revenue was principally driven by a 6% increase in T&M
revenue per day and a 3% increase in the number of days a car was rented. The favorable effect of incremental T&M
revenues was partially offset in EBITDA by $2 million (5%) of increased fleet depreciation and lease charges principally
resulting from an increase of 5% in the average size of our international rental fleet.
The $5 million increase in ancillary revenues was due primarily to a $3 million increase in counter sales of insurance and
other items and (ii) a $2 million increase in airport concession and vehicle licensing revenues, all of which was offset in
EBITDA by higher airport concession and vehicle licensing expenses remitted to airport and other regulatory authorities.
EBITDA also reflects (i) $5 million of incremental expenses primarily representing inflationary increases in rent, salaries and
wages and other costs, (ii) $2 million of higher operating expenses primarily due to increased car rental volume and fleet size,
including vehicle maintenance and damage costs and (iii) $2 million of increased gasoline expenses. The increases discussed
above also include a $6 million increase in revenue related to favorable foreign currency exchange rate fluctuations, which
was substantially offset in EBITDA by the opposite impact of foreign currency exchange rate fluctuations on expenses.
Truck Rental
Revenues and EBITDA declined $18 million (18%) and $11 million, respectively, for first quarter 2007 compared with first
quarter 2006, primarily reflecting decreases in rental day volume and T&M revenue per day. EBITDA was also impacted by
increased fleet costs.
Substantially all of the revenue decrease of $18 million was due to a decrease in T&M revenue, which reflected a 17%
reduction in rental days and a 5% decrease in T&M per day. The 17% reduction in rental days resulted primarily from
declines in commercial volumes and a 7% reduction in the average size of our rental fleet. We believe these decreases reflect
a soft housing market, increased gasoline prices and growing competition in the commercial segment. Despite the reduction
in the average size of our truck rental fleet, we incurred $2 million (7%) of incremental fleet depreciation, interest and lease
charges primarily due to higher per-unit fleet costs. These items were offset by (i) a decrease of $4 million in credit card and
other commission expense partially associated with the decrease in T&M revenue, (ii) a $2 million reduction in operating
expenses primarily due to operating a smaller and more efficient fleet and reduced rental volumes and (iii) a $2 million
decrease in our public liability and property damage costs as a result of more favorable claims experience and a reduction in
rental days.
LIQUIDITY AND CAPITAL RESOURCES
We present separately the financial data of our vehicle programs. These programs are distinct from our other activities as the
assets are generally funded through the issuance of debt that is collateralized by such assets. Assets under vehicle programs
are funded through borrowings under asset-backed funding or other similar arrangements. The income generated by these
assets is used, in part, to repay the principal and interest associated with the debt. Cash inflows and outflows relating to the
generation or acquisition of such assets and the principal debt repayment or financing of such assets are classified as
activities of our vehicle programs. We believe it is appropriate to segregate the financial data of our vehicle programs
because, ultimately, the source of repayment of such debt is the realization of such assets.
Liquidity and Capital Resources
Our principal sources of liquidity are cash on hand and our ability to generate cash through operations and financing
activities, including available funding arrangements and committed credit facilities, each of which is discussed below.
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24. Cash Flows
At March 31, 2007, we had $201 million of cash on hand, an increase of $71 million from $130 million at December 31,
2006. The following table summarizes such increase:
Three Months Ended March 31,
2007 2006 Change
Cash provided by (used in):
Operating activities $ 381 $ 276 $ 105
Investing activities (1,434) (884) (550)
Financing activities 1,124 617 507
Effects of exchange rate changes - (1) 1
Net change in cash and cash equivalents $ 71 $ 8$ 63
During first quarter 2007, we generated $105 million more cash from operating activities in comparison to first quarter 2006,
primarily as a reduction in working capital requirements.
We used $550 million more cash in investing activities during first quarter 2007 compared with first quarter 2006. This
change primarily reflects the activities of our vehicle programs, which use $551 million more cash in first quarter 2007 due to
timing of vehicle purchases within our Domestic Car Rental Car Rental operations and due to current and projected increases
in demand. Our capital expenditures in first quarter 2007 were relatively consistent with first quarter 2006, and are
anticipated to approximate $75 million to $85 million in 2007.
We generated $507 million more cash from financing activities during first quarter 2007 in comparison with first quarter
2006. This change primarily reflects a $551 million increase in net borrowings under our vehicle programs to fund the
acquisition of vehicles discussed above. These incremental cash inflows were partially offset by the utilization of $19
million to repay corporate debt during first quarter 2007.
Debt and Financing Arrangements
At March 31, 2007, we had approximately $8.2 billion of indebtedness (including corporate indebtedness of approximately
$1.8 billion and debt under vehicle programs of approximately $6.4 billion).
Corporate indebtedness consisted of:
As of As of
Maturity March 31, December 31,
Date 2007 2006 Change
Floating rate term loan April 2012 $ 819 $ 838 $ (19)
Floating rate notes May 2014 250 250 -
7⅝ % notes May 2014 375 375 -
7¾ % notes May 2016 375 375 -
$ 1,819 $ 1,838 $ (19)
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25. The following table summarizes the components of our debt under vehicle programs (including related party debt due to Avis
Budget Rental Car Funding (AESOP), LLC):
As of As of
March 31, December 31,
2007 2006 Change
Avis Budget Rental Car Funding (a) $ 5,554 $ 4,511 $ 1,043
Budget Truck financing:
Budget Truck Funding program 154 135 19
Capital leases 244 257 (13)
Other (b) 446 367 79
$ 6,398 $ 5,270 $ 1,128
____________
(a)
The change in the balance at March 31, 2007 principally reflects increased borrowings under our extendible commercial paper
program and conduit facility during first quarter 2007 to support the acquisition of rental vehicles within our domestic car rental
operations.
(b )
The change in the balance at March 31, 2007 primarily reflects incremental borrowings under our bank loan and commercial paper
conduit facilities to support the acquisition of vehicles in our international operations.
As of March 31, 2007, the committed credit facility available to the Company were as follows:
Total Outstanding Letters of Available
Capacity Borrowings Credit Issued Capacity
$1.5 billion revolving credit facility (a) $ 1,500 $ -$ 343 $ 1,157
____________
(a)
This secured revolving credit facility was entered into in April 2006, has a five year term and currently bears interest at one month
LIBOR plus 125 basis points.
The following table presents available funding under our debt arrangements related to our vehicle programs at March 31,
2007:
Total Outstanding Available
Capacity (a) Borrowings Capacity
Debt due to Avis Budget Rental Car Funding (b) $ 6,519 $ 5,554 $ 965
Budget Truck Financing:
Budget Truck Funding program (c) 200 154 46
Capital leases (d) 244 244 -
Other (e) 1,113 446 667
$ 8,076 $ 6,398 $ 1,678
____________
(a)
Capacity is subject to maintaining sufficient assets to collateralize debt.
(b)
The outstanding debt is collateralized by approximately $7.5 billion of underlying vehicles (the majority of which are subject to
manufacturer repurchase or guaranteed depreciation agreements) and related assets.
(c)
The outstanding debt is collateralized by approximately $164 million of underlying vehicles and related assets.
(d)
In connection with these capital leases, there are corresponding unamortized assets of $258 million classified within vehicles, net on
our Consolidated Condensed Balance Sheet as of March 31, 2007.
(e)
The outstanding debt is collateralized by $838 million of vehicles and related assets.
LIQUIDITY RISK
We believe that access to our existing financing arrangements is sufficient to meet liquidity requirements for the foreseeable
future. Our primary liquidity needs include the payment of operating expenses, corporate and vehicle related debt and the
procurement of rental vehicles to be used in our operations. Our primary sources of funding are operating revenue, cash
received upon the sale of vehicles under repurchase and guaranteed depreciation programs, borrowings under our vehicle-
backed borrowing arrangements, and revolving credit and other corporate borrowing programs.
Our liquidity position may be negatively affected by unfavorable conditions in the vehicle rental industry. Additionally, our
liquidity as it relates to vehicle programs could be adversely affected by (i) the deterioration in the performance of the
underlying assets of such programs or (ii) increased costs associated with the principal financing program for our vehicle
rental subsidiaries if General Motors Corporation or Ford Motor Company is not able to honor its obligations to repurchase
or guarantee the depreciation on the related vehicles. Access to our credit facilities may be limited if we were to fail to meet
certain financial ratios or other requirements.
23