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.
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.
- 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.
This document provides the consolidated financial statements and management discussion and analysis for Avis Budget Car Rental for the first quarter of 2007. It includes the consolidated statements of income, balance sheets, cash flows, and stockholder's equity for the periods ended March 31, 2007 and 2006. The financial statements show that Avis Budget's net revenues increased slightly while net income decreased compared to the same period in 2006, as expenses also increased. The document also identifies several risks and uncertainties that could impact the company's future financial performance.
- 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.
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.
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.
- BB&T Corporation reported lower operating earnings for the fourth quarter of 2008 compared to the same period in 2007. Operating earnings available to common shareholders decreased 41.4% to $243 million.
- Net interest income increased 14.2% to $1,132 million due to higher interest income, but this was more than offset by a large increase in the provision for credit losses of $344 million.
- Returns and profitability ratios declined from the prior year, with the return on average common equity decreasing to 7.26% and the efficiency ratio worsening to 51.9%.
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 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.
- 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.
This document provides the consolidated financial statements and management discussion and analysis for Avis Budget Car Rental for the first quarter of 2007. It includes the consolidated statements of income, balance sheets, cash flows, and stockholder's equity for the periods ended March 31, 2007 and 2006. The financial statements show that Avis Budget's net revenues increased slightly while net income decreased compared to the same period in 2006, as expenses also increased. The document also identifies several risks and uncertainties that could impact the company's future financial performance.
- 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.
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.
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.
- BB&T Corporation reported lower operating earnings for the fourth quarter of 2008 compared to the same period in 2007. Operating earnings available to common shareholders decreased 41.4% to $243 million.
- Net interest income increased 14.2% to $1,132 million due to higher interest income, but this was more than offset by a large increase in the provision for credit losses of $344 million.
- Returns and profitability ratios declined from the prior year, with the return on average common equity decreasing to 7.26% and the efficiency ratio worsening to 51.9%.
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.
allstate Quarterly Investor Information 2003 2nd finance7
Allstate reported strong financial results for the second quarter of 2003, with net income increasing 70.9% compared to the second quarter of 2002. Operating income increased 32.2% driven by an improvement in Property-Liability Underwriting income. However, catastrophe losses also increased significantly. Overall results were positively impacted by higher premiums, continued improvement in auto and homeowners claim frequencies, and lower prior year reserve strengthening, despite higher catastrophes. Allstate increased its full year 2003 operating income guidance.
Bank Of America Fourth Quarter 2008 Resultsearningsreport
Bank of America reported a loss of $1.8 billion for the fourth quarter of 2008. The results were negatively impacted by $4.6 billion in capital markets dislocation charges and a $8.5 billion provision for credit losses, which included a $3 billion increase in loan loss reserves. Despite the loss, pre-provision profits were up in most primary businesses from the third quarter of 2008. Total average deposits grew by $34.3 billion since the prior quarter. The company also raised capital through a common equity offering and funds from the Troubled Asset Relief Program.
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.
This annual report summarizes the financial statements and performance of China Youth Media, Inc. for the years ending December 31, 2008 and December 31, 2007. Some key details:
- Total assets increased from $911,444 in 2007 to $8,961,778 in 2008 primarily due to an increase in intangible assets.
- Total liabilities increased from $2,496,206 to $3,421,146 over the same period mainly due to increases in convertible notes payable and accrued liabilities.
- Revenue decreased from $592,365 in 2007 to $106,898 in 2008 while total operating expenses declined slightly. This resulted in an operating loss of $2,
allstate Quarterly Investor Information 2003 1st finance7
Allstate reported strong financial results for the first quarter of 2003, with net income increasing 40% over the prior year to $665 million. Operating income per share increased 39.7% to $0.95, beating analyst estimates. This was driven by improved performance in Property-Liability, with underwriting income up significantly due to higher premiums earned and a lower combined ratio. Results were also boosted by lower realized capital losses. Allstate increased guidance for full-year operating income per share. While Allstate Financial results declined from lower annuity sales and an accounting adjustment, overall performance was solid given economic conditions.
This document provides historical financial and metric information for Ameriprise Financial, Inc. for full years 2005 and 2006, and quarterly results through third quarter 2007. It includes consolidated income statements, per share summaries, segment income statements and metrics for the Advice & Wealth Management, Asset Management, Annuities, Protection, and Corporate & Other segments. Additional sections provide balance sheet information, capital and ratings details, owned/managed/administered assets, and non-GAAP reconciliations. Key financial metrics such as pretax income margin, net income margin, return on equity, and earnings growth targets are also presented.
- KeyCorp reported a net loss of $488 million or $1.09 per share for Q1 2009, compared to net income of $218 million or $0.54 per share for Q1 2008. The loss was primarily due to an increase in loan loss provisions and an impairment charge for intangible assets.
- The loan loss provision increased to $875 million for Q1 2009, exceeding net charge-offs by $383 million. The allowance for loan losses increased to $2.186 billion or 2.97% of total loans.
- A non-cash impairment charge of $187 million was recorded for the National Banking reporting unit due to continued weakness in financial markets. This did not
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 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.
First Financial Bankshares reported higher first quarter earnings compared to the same period last year. Net interest income increased 7% and the net interest margin rose to 4.76% from 4.58% a year ago. Noninterest income declined due to lower trust and service charge fees, partly offset by higher gains on the sale of student loans. Nonperforming assets increased to 95 basis points of loans and foreclosed assets but remain below peer banks.
Citigroup reported record net income of $15.28 billion for 2002, an 8% increase over 2001. Net income per share also rose 8% to $2.94. Core income for the year was a record $13.65 billion, or $2.63 per share. However, fourth quarter net income declined 37% to $2.43 billion due to a $1.55 billion legal settlement charge. Core income fell 32% to $2.44 billion. Revenue grew 7% for the full year to $75.76 billion but was flat in the fourth quarter at $18.93 billion.
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 summarizes Viacom's financial results for the second quarter and first half of 2008. Key highlights include:
- Revenues for Q2 2008 increased 21% to $3.9 billion and increased 18% to $7 billion for the first half.
- Operating income for Q2 2008 increased 13% to $792 million and increased 19% to $1.4 billion for the first half.
- Earnings per share from continuing operations for Q2 2008 increased 2% to $0.64 and increased 15% to $1.06 for the first half.
- Media Networks revenues increased 11% in Q2 2008 and 14% for the first half, driven by increases in affiliate fees
- Bank of America reported third quarter 2008 results, with earnings impacted by the challenging economic environment and market disruptions.
- Net income was $1.2 billion, down from the prior year due to higher credit costs from housing price declines and rising unemployment.
- Results also reflected charges related to financial institution failures, cash fund support, and losses on trading positions.
- Countrywide results were included for the first time, adding $259 million to earnings. Integration is proceeding as planned.
- 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.
The document summarizes the company's fiscal year 2007 financial results including:
- Net income increased 14% to $168.5 million primarily due to higher contribution from regulated gas distribution and transmission segments from increased throughput and rates.
- Earnings per share increased 5.5% to $1.92 per share.
- Operating expenses increased due to higher labor costs and benefits while impairment charges decreased.
- Capital expenditures totaled $327.4 million focused on regulated gas distribution and transmission systems.
The document summarizes a conference call to review the company's fiscal 2008 first quarter financial results. Key points from the first quarter include a decrease in net income due to lower margins in natural gas marketing, offset by rate increases. Earnings per share also decreased compared to the prior year. Capital expenditures increased compared to the prior year. The document also provides highlights and financial projections for fiscal year 2008.
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.
Atmos Energy reported financial results for fiscal year 2008, with net income of $180.3 million compared to $168.5 million the prior year. Regulated operations contributed $134.1 million of net income compared to $107.9 million the previous year. For the fourth quarter, net income was $1.6 million compared to a net loss of $5.9 million in the prior year fourth quarter, with regulated operations reporting a seasonal net loss of $14.7 million. Atmos Energy affirmed its fiscal year 2009 earnings guidance of $2.05 to $2.15 per diluted share.
Atmos Energy Corporation reported higher earnings for the second quarter and first six months of fiscal year 2007 compared to the same periods in the previous fiscal year. Net income increased 20% for the quarter and 17% for the six months due primarily to improved performance across its utility, pipeline and storage, and natural gas marketing business segments. The company affirmed its fiscal year 2007 earnings guidance range of $1.90 to $2.00 per diluted share and expects capital expenditures for the year to be between $365 to $385 million.
Realogy Corporation reported its second quarter 2008 results. Net revenue totaled $1.4 billion, EBITDA was $161 million, and net loss was $27 million. Transaction volume declined 21% at Realogy Franchise Group and 19% at NRT compared to the prior year. Average home sale prices decreased 5% at RFG and 8% at NRT. Realogy remains focused on reducing costs and implementing strategic growth initiatives to manage through the challenging housing market.
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.
allstate Quarterly Investor Information 2003 2nd finance7
Allstate reported strong financial results for the second quarter of 2003, with net income increasing 70.9% compared to the second quarter of 2002. Operating income increased 32.2% driven by an improvement in Property-Liability Underwriting income. However, catastrophe losses also increased significantly. Overall results were positively impacted by higher premiums, continued improvement in auto and homeowners claim frequencies, and lower prior year reserve strengthening, despite higher catastrophes. Allstate increased its full year 2003 operating income guidance.
Bank Of America Fourth Quarter 2008 Resultsearningsreport
Bank of America reported a loss of $1.8 billion for the fourth quarter of 2008. The results were negatively impacted by $4.6 billion in capital markets dislocation charges and a $8.5 billion provision for credit losses, which included a $3 billion increase in loan loss reserves. Despite the loss, pre-provision profits were up in most primary businesses from the third quarter of 2008. Total average deposits grew by $34.3 billion since the prior quarter. The company also raised capital through a common equity offering and funds from the Troubled Asset Relief Program.
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.
This annual report summarizes the financial statements and performance of China Youth Media, Inc. for the years ending December 31, 2008 and December 31, 2007. Some key details:
- Total assets increased from $911,444 in 2007 to $8,961,778 in 2008 primarily due to an increase in intangible assets.
- Total liabilities increased from $2,496,206 to $3,421,146 over the same period mainly due to increases in convertible notes payable and accrued liabilities.
- Revenue decreased from $592,365 in 2007 to $106,898 in 2008 while total operating expenses declined slightly. This resulted in an operating loss of $2,
allstate Quarterly Investor Information 2003 1st finance7
Allstate reported strong financial results for the first quarter of 2003, with net income increasing 40% over the prior year to $665 million. Operating income per share increased 39.7% to $0.95, beating analyst estimates. This was driven by improved performance in Property-Liability, with underwriting income up significantly due to higher premiums earned and a lower combined ratio. Results were also boosted by lower realized capital losses. Allstate increased guidance for full-year operating income per share. While Allstate Financial results declined from lower annuity sales and an accounting adjustment, overall performance was solid given economic conditions.
This document provides historical financial and metric information for Ameriprise Financial, Inc. for full years 2005 and 2006, and quarterly results through third quarter 2007. It includes consolidated income statements, per share summaries, segment income statements and metrics for the Advice & Wealth Management, Asset Management, Annuities, Protection, and Corporate & Other segments. Additional sections provide balance sheet information, capital and ratings details, owned/managed/administered assets, and non-GAAP reconciliations. Key financial metrics such as pretax income margin, net income margin, return on equity, and earnings growth targets are also presented.
- KeyCorp reported a net loss of $488 million or $1.09 per share for Q1 2009, compared to net income of $218 million or $0.54 per share for Q1 2008. The loss was primarily due to an increase in loan loss provisions and an impairment charge for intangible assets.
- The loan loss provision increased to $875 million for Q1 2009, exceeding net charge-offs by $383 million. The allowance for loan losses increased to $2.186 billion or 2.97% of total loans.
- A non-cash impairment charge of $187 million was recorded for the National Banking reporting unit due to continued weakness in financial markets. This did not
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 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.
First Financial Bankshares reported higher first quarter earnings compared to the same period last year. Net interest income increased 7% and the net interest margin rose to 4.76% from 4.58% a year ago. Noninterest income declined due to lower trust and service charge fees, partly offset by higher gains on the sale of student loans. Nonperforming assets increased to 95 basis points of loans and foreclosed assets but remain below peer banks.
Citigroup reported record net income of $15.28 billion for 2002, an 8% increase over 2001. Net income per share also rose 8% to $2.94. Core income for the year was a record $13.65 billion, or $2.63 per share. However, fourth quarter net income declined 37% to $2.43 billion due to a $1.55 billion legal settlement charge. Core income fell 32% to $2.44 billion. Revenue grew 7% for the full year to $75.76 billion but was flat in the fourth quarter at $18.93 billion.
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 summarizes Viacom's financial results for the second quarter and first half of 2008. Key highlights include:
- Revenues for Q2 2008 increased 21% to $3.9 billion and increased 18% to $7 billion for the first half.
- Operating income for Q2 2008 increased 13% to $792 million and increased 19% to $1.4 billion for the first half.
- Earnings per share from continuing operations for Q2 2008 increased 2% to $0.64 and increased 15% to $1.06 for the first half.
- Media Networks revenues increased 11% in Q2 2008 and 14% for the first half, driven by increases in affiliate fees
- Bank of America reported third quarter 2008 results, with earnings impacted by the challenging economic environment and market disruptions.
- Net income was $1.2 billion, down from the prior year due to higher credit costs from housing price declines and rising unemployment.
- Results also reflected charges related to financial institution failures, cash fund support, and losses on trading positions.
- Countrywide results were included for the first time, adding $259 million to earnings. Integration is proceeding as planned.
- 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.
The document summarizes the company's fiscal year 2007 financial results including:
- Net income increased 14% to $168.5 million primarily due to higher contribution from regulated gas distribution and transmission segments from increased throughput and rates.
- Earnings per share increased 5.5% to $1.92 per share.
- Operating expenses increased due to higher labor costs and benefits while impairment charges decreased.
- Capital expenditures totaled $327.4 million focused on regulated gas distribution and transmission systems.
The document summarizes a conference call to review the company's fiscal 2008 first quarter financial results. Key points from the first quarter include a decrease in net income due to lower margins in natural gas marketing, offset by rate increases. Earnings per share also decreased compared to the prior year. Capital expenditures increased compared to the prior year. The document also provides highlights and financial projections for fiscal year 2008.
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.
Atmos Energy reported financial results for fiscal year 2008, with net income of $180.3 million compared to $168.5 million the prior year. Regulated operations contributed $134.1 million of net income compared to $107.9 million the previous year. For the fourth quarter, net income was $1.6 million compared to a net loss of $5.9 million in the prior year fourth quarter, with regulated operations reporting a seasonal net loss of $14.7 million. Atmos Energy affirmed its fiscal year 2009 earnings guidance of $2.05 to $2.15 per diluted share.
Atmos Energy Corporation reported higher earnings for the second quarter and first six months of fiscal year 2007 compared to the same periods in the previous fiscal year. Net income increased 20% for the quarter and 17% for the six months due primarily to improved performance across its utility, pipeline and storage, and natural gas marketing business segments. The company affirmed its fiscal year 2007 earnings guidance range of $1.90 to $2.00 per diluted share and expects capital expenditures for the year to be between $365 to $385 million.
Realogy Corporation reported its second quarter 2008 results. Net revenue totaled $1.4 billion, EBITDA was $161 million, and net loss was $27 million. Transaction volume declined 21% at Realogy Franchise Group and 19% at NRT compared to the prior year. Average home sale prices decreased 5% at RFG and 8% at NRT. Realogy remains focused on reducing costs and implementing strategic growth initiatives to manage through the challenging housing market.
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.
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 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.
- 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.
YRC Worldwide Inc. announced its second quarter 2007 earnings. Reported EPS was $0.95 compared to $1.58 in 2006. Revenue was $2.5 billion compared to $2.6 billion last year. National Transportation performed strongly with an operating ratio of 94.6%. However, overall results were impacted by a weak shipping market. For the full year, the company expects interest expense of $90 million, a tax rate of 36.9%, and free cash flow over $200 million.
YRC Worldwide Inc. announced its second quarter 2007 earnings. Reported EPS was $0.95 compared to $1.58 in 2006. Revenue was $2.5 billion compared to $2.6 billion last year. National Transportation performed strongly with an operating ratio of 94.6%. However, overall results were impacted by a weak shipping market. For the full year, the company expects interest expense of $90 million, a tax rate of 36.9%, and free cash flow over $200 million.
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.
Avis Budget Car Rental provides an overview of its consolidated financial statements and management's discussion and analysis for 2006, 2005 and 2004. Key points include:
- Revenues increased 6% in 2006 driven by a 7% increase in domestic car rental revenues. However, EBITDA declined 16% 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.
- Higher per-unit fleet costs negatively impacted margins as the company pursued price increases to offset rising costs.
bank of new york mellon corp 3q 07 earningsfinance18
The Bank of New York Mellon reported its 3Q07 quarterly earnings. Key highlights include:
- GAAP income after-tax from continuing operations was $642 million, up 37% from 3Q06. GAAP EPS was $0.56.
- Non-GAAP income after-tax from continuing operations excluding merger/integration costs and non-operating items was $754 million, up 32% from 3Q06. Non-GAAP EPS was $0.66.
- Non-GAAP income after-tax from continuing operations excluding merger/integration costs, non-operating items, and intangible amortization was $838 million, up 43% from 3Q06. Non-
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.
- Ameriprise Financial reported a 14% increase in net income for Q1 2007 to $165 million compared to Q1 2006. Adjusted earnings, which exclude non-recurring separation costs, increased 16% to $220 million.
- Revenues grew 6% to $2.1 billion, driven by 11% growth in management fees and 14% growth in distribution fees. However, net investment income declined 10% due to lower balances in annuity fixed accounts and certificates.
- Earnings growth was achieved through a strategic shift toward fee-based products and greater advisor productivity, though this was partially offset by declines in spread income from annuity and certificate businesses.
The document provides financial results for Ameriprise Financial for Q3 2006. Key points:
- Net income was $174M, up 39% from prior year. Adjusted earnings excluding one-time costs were $231M, up 29%.
- Revenues grew 6% to $2B driven by higher fees from increased assets in wrap accounts and variable annuities.
- Expenses grew slower than revenues. Compensation increased due to business growth and incentives. Interest expenses fell due to lower fixed annuity balances.
- Assets under management grew 5% to $440B despite selling its recordkeeping business. Strong flows continued in wrap accounts and variable annuities.
Sanjiv Khattri, Executive Vice President and CFO of GMAC Financial Services 2...finance8
- GMAC reported a preliminary Q3 2007 loss of $1.6 billion compared to a loss of $173 million in Q3 2006. The loss was driven by disappointing results at ResCap including a $455 million goodwill impairment.
- Excluding ResCap, GMAC's Q3 operating income was $665 million, 51% above Q3 2006. However, ResCap reported a loss of $1.806 billion for the quarter.
- Results at ResCap reflect unprecedented disruptions in global capital markets, leading ResCap to implement a significant restructuring of its mortgage operations.
Ameriprise Financial reported first quarter 2006 results with the following highlights:
- Net income was $145 million compared to $175 million in the prior year quarter. Adjusted earnings, which exclude certain one-time items, increased 17% to $189 million.
- Revenues grew 6% to $1.9 billion. Adjusted revenues grew 10%, driven by 17% growth in management, financial advice, and service fees.
- Adjusted return on equity increased to 10.4% from 10.2% in the previous quarter.
- The company repurchased $275 million of its shares during the quarter and authorized up to $750 million additional in share repurchases
The document discusses forward-looking statements made in Credco's Annual Report on Form 10-K regarding risks and uncertainties that could cause actual results to differ from expectations. It identifies key risk factors such as credit trends affecting spending and debt payments, ability to accurately estimate losses, and fluctuations in foreign currency exchange rates and interest rates. The document also provides selected financial data for Credco from 2007 to 2003 and discusses critical accounting policies around reserves for losses and income taxes that require management estimates and judgments.
El Paso Corporation reported financial and operational results for the third quarter of 2007. Earnings per share from continuing operations increased 33% compared to the third quarter of 2006. The company completed its acquisition of Peoples Energy and exploration success in Brazil. Several pipeline expansion projects remain on track to increase the company's natural gas transportation capacity going forward. Overall, the company delivered solid financial results and continues to execute on its strategic growth initiatives.
The document provides a financial and operational update for El Paso Corporation for the third quarter of 2007. Some key points include:
- EPS from continuing operations was up 33% compared to the same period last year.
- Operational results were ahead of target for the quarter.
- The company completed its acquisition of Peoples and had significant exploration success in Brazil.
- The company remains on track for an IPO of El Paso Pipeline Partners, a master limited partnership, in the fourth quarter.
PACCAR is a diversified, multinational company that manufactures heavy-duty trucks under brands like Kenworth, Peterbilt, DAF, and Foden. In 2004, PACCAR achieved record revenues and net income, delivering over 124,000 trucks globally. PACCAR increased its market share in both North America and Europe through superior vehicle quality and ongoing investments in technology. The company's aftermarket parts and financial services businesses also had strong growth. PACCAR is recognized as an industry leader in quality, technology, and financial performance.
- The company reported financial and operational results for the first quarter of 2007, with pipeline and E&P results on target.
- Pipeline throughput was up 9% from the first quarter of 2006 due to new supply, expansions, power loads, and colder weather. Several pipeline expansion projects were completed or underway.
- E&P production was on target and a South Texas acquisition was completed for $254 million. Exploration continued in Brazil and the organization's capabilities were increased.
- The company reported financial and operational results for the first quarter of 2007, with pipeline and E&P results on target.
- Pipeline throughput was up 9% from the first quarter of 2006 due to new supply, expansions, power loads, and colder weather. Several pipeline expansion projects were underway.
- E&P production was on target and a South Texas acquisition was completed for $254 million. Exploration continued in Brazil and the production program was on budget.
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.
- 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.
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.
The document summarizes the company's financial results for fiscal year 2006. Key points include:
- Net income increased 20% to $170 million due to higher contributions from nonutility businesses and rate increases.
- Earnings per share increased 16% to $2.00, despite warmer than normal weather reducing utility revenues.
- Gross profit increased $98.9 million primarily from higher natural gas marketing margins and increased pipeline volumes.
- Higher O&M and interest expenses partially offset revenue gains. Overall the company delivered results within its guidance range for the year.
The document summarizes a conference call to review the company's financial results for the first quarter of fiscal year 2007. Key highlights included a 14.5% increase in net income compared to the same period last year, driven by increased contributions from nonutility businesses. Earnings per share were up 10% year-over-year. Capital expenditures totaled $65.2 million for maintenance and $21.8 million for growth. The company also completed a common stock offering in December, raising $192 million in net proceeds.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
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Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
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avis budget group Q2Car
1. Avis Budget Car Rental, LLC
Consolidated Condensed Financial Statements and Management’s
Discussion and Analysis of Financial Condition
and Results of Operations for the
Three and Six Months Ended June 30, 2007
2. TABLE OF CONTENTS
Page
Forward-looking Statements 1
Financial Statements (Unaudited):
Consolidated Condensed Statements of Income for the Three and Six Months Ended June 30, 2007 and 2006 3
Consolidated Condensed Balance Sheets as of June 30, 2007 and December 31, 2006 4
Consolidated Condensed Statements of Cash Flows for the Six Months Ended June 30, 2007 and 2006 5
Consolidated Condensed Statements of Stockholder’s Equity for the Six Months Ended June 30, 2007 7
Notes to Consolidated Condensed Financial Statements 8
Management’s Discussion and Analysis of Financial Condition and Results of Operations 19
Exhibit Index 26
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;
• risks inherent in the separation and related transactions, including risks related to our April 2006 borrowings,
and costs of the separation; and
1
4. • 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 Six Months Ended
June 30, June 30,
2007 2006 2007 2006
Revenues
Vehicle rental $ 1,175 $ 1,150 $ 2,252 $ 2,215
Other 336 289 617 543
Net revenues 1,511 1,439 2,869 2,758
Expenses
Operating 782 730 1,493 1,429
Vehicle depreciation and lease charges, net 402 364 764 694
Selling, general and administrative 164 165 313 323
Vehicle interest, net 71 75 142 166
Non-vehicle related depreciation and amortization 20 22 43 40
Interest expense related to corporate debt, net 33 21 67 7
Separation costs 2 2 3 2
Total expenses 1,474 1,379 2,825 2,661
37 60 44 97
Income before income taxes
Provision for income taxes 13 23 16 37
$ 24 $ 37 $ 28 $ 60
Net income
See Notes to Consolidated Condensed Financial Statements.
3
6. Avis Budget Car Rental, LLC
CONSOLIDATED CONDENSED BALANCE SHEETS
Unaudited
(In millions)
June 30, December 31,
2007 2006
Assets
Current assets:
Cash and cash equivalents $ 139 $ 130
Receivables, net 439 367
Other current assets 232 181
Due from Avis Budget Group, Inc. and affiliates, net 94 -
Total current assets 904 678
Property and equipment, net 492 486
Deferred income taxes 124 173
Goodwill 2,194 2,193
Other intangibles, net 745 738
Other non-current assets 71 61
Total assets exclusive of assets under vehicle programs 4,530 4,329
Assets under vehicle programs:
Program cash 18 14
Vehicles, net 9,299 7,049
Receivables from vehicle manufacturers and other 142 276
Investment in Avis Budget Rental Car Funding (AESOP) LLC - related party 375 361
9,834 7,700
$ 14,364 $ 12,029
Total assets
Liabilities and stockholder’s equity
Current liabilities:
Accounts payable and other current liabilities $ 785 $ 655
Current portion of long-term debt 8 25
Deferred income taxes 2 2
Due to Avis Budget Group, Inc. and affiliates, net - 154
Total current liabilities 795 836
Long-term debt 1,792 1,813
Income tax payable 9 -
Other non-current liabilities 410 390
Total liabilities exclusive of liabilities under vehicle programs 3,006 3,039
Liabilities under vehicle programs:
Debt 1,043 759
Debt due to Avis Budget Rental Car Funding (AESOP) LLC - related party 6,321 4,511
Deferred income taxes 1,311 1,206
Other 299 203
8,974 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 1,095 1,071
Accumulated other comprehensive income 119 70
Total stockholder’s equity 2,384 2,311
$ 14,364 $ 12,029
Total liabilities and stockholder’s equity
See Notes to Consolidated Condensed Financial Statements.
4
7. Avis Budget Car Rental, LLC
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Unaudited
(In millions)
Six Months Ended
June 30,
2007 2006
Operating Activities
Net income $ 28 $ 60
Adjustments to reconcile income to net cash provided by operating activities exclusive of
vehicle programs:
Non-vehicle related depreciation and amortization 43 40
Deferred income taxes (3) 27
Net change in assets and liabilities, excluding the impact of acquisitions and dispositions:
Receivables (11) (3)
Accounts payable and other current liabilities 20 (39)
Other, net (43) -
34 85
Net cash provided by operating activities exclusive of vehicle programs
Vehicle programs:
Vehicle depreciation 759 663
793 748
Net cash provided by operating activities
Investing Activities
Property and equipment additions (51) (33)
Net assets acquired (net of cash acquired) and acquisition-related payments (1) (113)
Proceeds received on asset sales 8 10
Other, net (8) -
(52) (136)
Net cash used in investing activities exclusive of vehicle programs
Vehicle programs:
Increase in program cash (4) (50)
Investment in vehicles (6,480) (6,936)
Payments received on investment in vehicles 3,752 5,404
Other, net - (5)
(2,732) (1,587)
(2,784) (1,723)
Net cash used in investing activities
5
8. Avis Budget Car Rental, LLC
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Continued)
Unaudited
(In millions)
Six Months Ended
June 30,
2007 2006
Financing Activities
Proceeds from borrowings - 1,875
Payments on debt issuance costs - (35)
Principal payments on borrowings (38) -
Capital contributions - 15
Decrease in due from Avis Budget Group, Inc. and affiliates, net (14) 66
Other, net - (1)
(52) 1,920
Net cash (used in) provided by financing activities exclusive of vehicle programs
Vehicle programs:
Proceeds from borrowings 6,287 6,441
Principal payments on long term borrowings (4,362) (7,322)
Net change in short-term borrowings 129 104
Other, net (5) (8)
2,049 (785)
1,997 1,135
Net cash provided by financing activities
Effect of changes in exchange rates on cash and cash equivalents 3 (1)
Net increase in cash and cash equivalents 9 159
Cash and cash equivalents, beginning of period 130 58
$ 139 $ 217
Cash and cash equivalents, end of period
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
$ 1,170 $ 1,071 $ 70 $ 2,311
Balance at December 31, 2006
Cumulative effect of the adoption of FIN 48 - (4) - (4)
1,170 1,067 70 2,307
Balance at January 1, 2007
Comprehensive income:
Net income - 28 -
Currency translation adjustment - - 34
Unrealized gains on cash flow
hedges, net of tax of $(10) - - 15
77
Total comprehensive income
$ 1,170 $ 1,095 $ 119 $ 2,384
Balance at June 30, 2007
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)
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. (“ABGI”)
(formerly Cendant Corporation), 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 Condensed 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 Condensed Financial Statements in accordance with accounting principles generally
accepted in the United States (U.S. GAAP), 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 and 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 in 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 Condensed
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 under vehicle programs are generally funded through the
issuance of debt, asset-backed funding or other similar arrangements which are collateralized by such assets. 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.
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
8
11. 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. In connection with the separation of Cendant into four independent companies, ABGI completed the spin-
offs of Realogy Corporation and Wyndham Worldwide Corporation and completed the sale of Travelport, Inc. in 2006.
During the three and six months ended June 30, 2007, the Company incurred separation related charges of $2 million and
$3 million, respectively, 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
In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 48, “Accounting for
Uncertainty in Income Taxes” (“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.
During the six months ended June 30, 2007, the Company’s unrecognized tax benefits did not significantly change. As
of June 30, 2007, the unrecognized tax benefits in 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 six months ended June
30, 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 Statements of Income. Penalties incurred during the six months ended June 30,
2007, were not significant and 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.
The adoption of this change in accounting policy resulted in an approximately $43 million decrease to the Company’s
deferred income tax provision with a corresponding increase to the Company’s current income tax provision for the six
9
12. months ended June 30, 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
Policy Adjusted
Reported
Consolidated Condensed Statements of Cash Flows for the Six Months
Ended June 30, 2006
Deferred income tax $ 70 $ (43) $ 27
Income taxes due from ABGI (50) 50 -
Decrease (increase) in due from Avis Budget Group, Inc. and affiliates, net 73 (7) 66
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 June 30, 2007 and December 31, 2006, intangible assets consisted of:
As of June 30, 2007 As of December 31, 2006
Gross Net Gross Net
Carrying Accumulated Carrying Carrying Accumulated Carrying
Amount Amortization Amount Amount Amortization Amount
Amortized Intangible Assets
Franchise agreements (a) $ 75 $ 17 $ 58 $ 75 $ 16 $ 59
Customer lists (b) 19 6 13 19 6 13
Other intangibles (c) 2 1 1 - - -
$ 96 $ 24 $ 72 $ 94 $ 22 $ 72
Unamortized Intangible Assets
Goodwill $ 2,194 $ 2,193
Trademarks (d) $ 673 $ 666
____________
(a)
Primarily amortized over a period ranging from 2 to 40 years.
(b)
Primarily amortized over 20 years.
(c)
Amortized over 17 years.
(d)
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 second quarter 2007 and 2006.
For the six month periods ended June 30, 2007 and 2006, amortization expense was less than $2 million.
Based on the Company’s amortizable intangible assets at June 30, 2007, the Company expects amortization expense of
approximately $1 million for the remainder of 2007 and $3 million for each of the five succeeding fiscal years therafter.
10
13. As of June 30, 2007 the carrying amount of goodwill consisted of:
Domestic Car Rental $ 1,355
International Car Rental 596
Truck Rental 243
$ 2,194
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 has been paid in
cash during 2007.
The initial recognition of the restructuring charge and the corresponding utilization for the 2006 Truck Rental and
Domestic Car Rental operations restructuring initiative are summarized by category from inception as follows:
Facility
Personnel
Related (a) Related (b) Total
Initial charge $ 4 $ 4 $ 8
Cash payments - (1) (1)
Balance at December 31, 2006 4 3 7
Cash payments (4) (2) (6)
Balance at June 30, 2007 $ - $ 1 $ 1
____________
(a)
The initial charge primarily represents severance costs resulting from reductions in staff. Prior to December 31, 2006, the
Company formally communicated the termination of employment to approximately 180 employees, representing a wide range of
employee groups. As of June 30, 2007, the Company had terminated substantially all 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
June 30, December 31,
2007 2006
Rental vehicles $ 10,305 $ 7,738
Less: Accumulated depreciation (1,124) (993)
9,181 6,745
Vehicles held for sale 118 304
$ 9,299 $ 7,049
The components of vehicle depreciation and lease charges, net are summarized below:
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
Depreciation expense $ 407 $ 346 $ 759 $ 663
Lease charges 12 12 26 29
(Gain) loss on sales of vehicles, net (17) 6 (21) 2
$ 402 $ 364 $ 764 $ 694
During the three and six months ended June 30, 2007, vehicle interest, net on the accompanying Consolidated
Condensed Statements of Income excludes $35 million and $71 million, respectively, of interest expense related to the
11
14. 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 six months ended June 30, 2007 is 36.4%. Such rate differs from the Federal
statutory rate of 35.0% primarily due to state and local income taxes.
6. Accounts Payable and Other Current Liabilities
Accounts payable and other current liabilities consisted of:
As of As of
June 30, December 31,
2007 2006
Accounts payable $ 197 $ 208
Accrued payroll and related 148 86
Public liability and property damage insurance liabilities (a) 117 116
Other 323 245
$ 785 $ 655
____________
(a)
The non-current liability related to public liability and property damage insurance was $266 million and $260 million at June 30,
2007 and December 31, 2006, respectively.
7. Long-term Debt and Borrowing Arrangements
Long-term debt consisted of:
As of As of
Maturity June 30, December 31,
Date 2007 2006
Floating rate term loan April 2012 $ 800 $ 838
Floating rate notes May 2014 250 250
7⅝% notes May 2014 375 375
7¾% notes May 2016 375 375
Total long-term debt 1,800 1,838
Less: Current portion 8 25
$ 1,792 $ 1,813
Long-term debt
At June 30, 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 - $ 441 $ 1,059
____________
(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 June 30, 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
June 30, December 31,
2007 2006
Debt due to Avis Budget Rental Car Funding (a) $ 6,321 $ 4,511
Budget Truck financing:
Budget Truck Funding program (b) 247 135
Capital leases 231 257
Other (c) 565 367
$ 7,364 $ 5,270
__________
(a)
The change in the balance at June 30, 2007 principally reflects (i) increased borrowings under the Company’s extendible
commercial paper program and conduit facility during the six months ended June 30, 2007 and (ii) the issuance of vehicle-backed
floating rate notes at various interest rates during second quarter 2007 to support the acquisition of rental vehicles within the
Company’s domestic car rental operations.
(b)
The change in the balance at June 30, 2007 primarily reflects incremental borrowings during second quarter 2007 to support the
acquisition of rental vehicles within the Budget Truck rental fleet.
(c)
The change in the balance at June 30, 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 (AESOP) LLC. Avis Budget Rental Car Funding, an unconsolidated bankruptcy remote
qualifying special purpose limited liability company, issues private placement notes that are typically “AAA” rated
generally with 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 Sheets as of June 30, 2007 and December 31, 2006. The Company
also recorded an asset within assets under vehicle programs on its Consolidated Condensed Balance Sheets at June 30,
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 $8.3 billion and
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 subsidiaries 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
within the Company’s Consolidated Condensed Financial Statements. Borrowings under the Avis Budget Rental Car
Funding program primarily represent floating rate term notes.
Truck financing. Budget Truck financing consists of debt outstanding under the Budget Truck Funding program and
capital leases. The Budget Truck Funding program constitutes debt facilities established by the Company to finance the
acquisition of the Budget truck rental fleet. The borrowings under the Budget Truck Funding program floating rate term
loans are collateralized by $275 million of corresponding assets. The Company has also obtained a portion of its truck
rental fleet under capital lease arrangements for which there are corresponding gross assets of $385 million and $381
million with accumulated amortization of $144 million and $129 million classified within vehicles, net on the
Company’s Consolidated Condensed Balance Sheets as of June 30, 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 $1.1 billion of vehicles and related assets and primarily
represents floating rate bank loans and commercial paper.
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 June 30, 2007:
Vehicle-
Backed Capital
Debt Leases Total
Within 1 year $ 2,469 $ 89 $ 2,558
Between 1 and 2 years 1,422 116 1,538
Between 2 and 3 years 400 26 426
Between 3 and 4 years 1,468 - 1,468
Between 4 and 5 years 250 - 250
Thereafter 1,124 - 1,124
Total $ 7,133 $ 231 $ 7,364
As of June 30, 2007, available funding under the Company’s vehicle programs (including related party debt due to Avis
Budget Rental Car Funding) consisted of:
Outstanding Available
Total
Capacity (a) Borrowings Capacity
Debt due to Avis Budget Rental Car Funding $ 7,266 $ 6,321 $ 945
Budget Truck financing:
Budget Truck Funding program 400 247 153
Capital leases 231 231 -
Other 1,203 565 638
$ 9,100 $ 7,364 $ 1,736
____________
(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, liens, liquidators, and sale and leaseback transactions, and also require the maintenance of certain financial
ratios. As of June 30, 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:
Minimum Accumulated
Currency Unrealized Pension Other
Translation Gains on Cash Liability Comprehensive
Adjustments Flow Hedges Adjustment Income
$ 70 $ 30 $ (30) $ 70
Balance, January 1, 2007
Current period change 34 15 - 49
Balance, June 30, 2007 $ 104 $ 45 $ (30) $ 119
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
As of June 30, 2007, all employee stock awards (stock options, stock appreciation rights, restricted shares and restricted
stock units (“RSUs”)) were granted by ABGI. Beginning in 2003, ABGI changed the method by which it provides stock-
based compensation to its employees by significantly reducing the number of stock options granted and instead, issuing
RSUs as a form of compensation. In 2006 ABGI issued stock appreciation rights (“SARs”) to certain executives which
are settled in ABGI stock.
The Company recorded pretax stock-based compensation expense of $4 million and $3 million ($3 million and
$2 million, after tax) during second quarter 2007 and 2006, respectively, and $8 million and $5 million ($5 million after
tax and $3 million, after tax) during the six months ended June 30, 2007 and 2006, respectively, related to employee
stock awards that were granted or modified by the Company.
14
17. The Company applies the direct method and tax law ordering approach to calculate the tax effects of stock-based
compensation. In jurisdictions with net operating loss carryforwards, tax deductions for 2007 exercises of stock-based
awards did not generate a cash benefit. Approximately $28 million of tax benefits will be recorded in additional paid-in
capital when realized in these jurisdictions.
The Company’s employees were granted stock-based compensation consisting of options under ABGI’s common stock
option plans and restricted stock units (RSUs). These consisted of (in thousands of shares):
Six Months Ended June 30, 2007
RSUs Options
Weighted
Weighted Average
Number Average Exercise
Number
of Options (c)
of RSUs Grant Price Price
Balance at January 1, 2007 1,774 24.33 697 24.43
Granted at fair market value 1,149 25.88 - -
Vested/exercised (a) (398) 24.54 (84) 29.31
Cancelled (71) 24.53 (19) 32.83
Balance at June 30, 2007 (b) 2,454 25.04 594 24.36
__________
(a)
Stock options exercised during the six months ended June 30, 2007 had insignificant intrinsic value.
(b)
As of June 30, 2007, the Company’s outstanding “in-the-money” stock options and RSUs had aggregate intrinsic value of $3
million and $70 million, respectively. Aggregate unrecognized compensation expense related to outstanding stock options and
RSUs amounted to $56 million as of June 30, 2007.
(c)
All options outstanding as of June 30, 2007 are exercisable and have a weighted average remaining contractual life of 3.8 years.
The table below summarizes information regarding the Company’s outstanding and exercisable stock options as of June
30, 2007 (in thousands of shares):
Range of Number of
Options (*)
Exercise Prices
Less than $20.00 163
$20.01 to $25.00 65
$25.01 to $30.00 298
$30.01 to $35.00 68
$35.01 and above -
594
__________
(*)
All outstanding stock options vested in connection with the completion of the separation.
As of June 30, 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 years and unrecognized
compensation expense of $3 million.
11. Commitments and Contingencies
Commitments to Purchase Vehicles
The Company maintains agreements with vehicle manufacturers, which require the Company to purchase approximately
$7.1 billion of vehicles from these manufacturers over the next year. These commitments are subject to the vehicle
manufacturers’ satisfying their obligations under the repurchase and guaranteed depreciation agreements. The
Company’s featured suppliers for the Avis and Budget brands are General Motors Corporation and Ford Motor
Company, respectively, although the Company purchases vehicles produced by numerous other manufacturers. 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
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 (the former parent company
15
18. of our principal operations) and its consolidated subsidiaries for the period in which such companies were not members
of the consolidated tax group.
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 patent claims, wage and hour claims and 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.
Concentrations
Concentrations of credit risk at June 30, 2007 include risks related to the Company’s repurchase and guaranteed
depreciation agreements with General Motors Corporation and Ford Motor Company with respect to receivables for
program cars that have been returned to the car manufacturers.
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 and six months ended June 30, 2006, the Company was allocated $16 million and $32 million, respectively, 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 in 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 and six months ended June 30, 2007, the Company allocated $2 million
and $5 million, respectively, 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 Statements of
Income.
ABGI has incurred 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. The Company was allocated $10 million and $20 million for
the three and six months ended June 30, 2006, 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. For both the three and six month periods ended June 30, 2007, the Company was allocated less than $1
million, which reflects only human resources services, as all other costs now directly reside in the Company.
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) maintaining marketing
agreements with ABGI’s former timeshare resorts business whereby the Company permits ABGI’s former timeshare
resorts business to market its products to callers of the Company’s customer service line; (ii) maintaining marketing
agreements with ABGI’s former lodging business whereby ABGI’s former lodging business permits the Company to
market its products to customers calling into the lodging reservation system; (iii) utilizing ABGI’s former relocation
16
19. services business for employee relocation services, including relocation policy management, household goods moving
services and departure and destination real estate related services; (iv) utilizing corporate travel management services of
ABGI’s former travel distribution business; and (v) through its Avis and Budget brands, functioning as the exclusive
primary and secondary supplier, respectively, of car rental services for employees of ABGI and many of its former
subsidiaries. In connection with these activities, the Company incurred net expenses of $3 million and $6 million during
the three and six months ended June 30, 2006, respectively, 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 Worldwide, and the sale of
Travelport in the third quarter 2006, substantially all of 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 received from ABGI and its service providers using pre-
determined rates. The Company incurred information technology expenses of $2 million and $13 million during the
three months ended June 30, 2007 and 2006, respectively, and $4 million and $26 million during the six months ended
June 30, 2007 and 2006, respectively. The Company incurred telecommunications expenses of $7 million during the
three months ended June 30, 2006, and $13 million during the six months ended June 30, 2006. 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 and $5 million during the three and six
months ended June 30, 2006, respectively. 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 Six Months Ended
June 30, June 30,
2007 2006 2007 2006
Rent, corporate overhead allocations and other $ - $ 29 $ 1 $ 58
Information technology and telecommunications (a) 2 20 4 39
Reservations (b) - 2 - 5
Interest income on amounts due from
- (8) - (22)
ABGI and affiliates, net (c)
Total $ 2 $ 43 $ 5 $ 80
____________
(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 $8 million and $21 million of intercompany interest income related to tax benefits and working capital advances during
the three and six months ended June 30, 2006, respectively. The remaining balances relate to other intercompany activity with
ABGI.
17
20. Due from (to) ABGI and affiliates, consisted of:
As of As of
June 30, December 31,
2007 2006
Due from (to) ABGI-income taxes (a) $ 115 $ (39)
Due to ABGI-working capital and other (b) (21) (115)
Total due from (to) ABGI and affiliates, net $ 94 $ (154)
____________
(a)
Primarily represents 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 transfer of working capital and other items 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 before income taxes, non-vehicle related depreciation
and amortization and interest on corporate debt, net (other than intercompany interest related to tax benefits and working
capital advances). The Company’s presentation of EBITDA may not be comparable to similarly-titled measures used by
other companies.
Three Months Ended June 30,
2007 2006
Revenues(a) Revenues(a)
EBITDA EBITDA
Domestic Car Rental $ 1,195 $ 59 $ 1,132 $ 74
International Car Rental 202 21 178 19
Truck Rental 114 10 129 18
Total Company $ 1,511 90 $ 1,439 111
Less: Non-vehicle related depreciation and amortization 20 22
Interest expense related to corporate debt, net(b) 33 29
Income before income taxes $ 37 $ 60
__________
(a)
Inter-segment total revenues were not significant to the revenue of any one segment.
(b)
Does not reflect intercompany interest income of $8 million in second quarter 2006 related to tax benefits and working capital
advances, which are included within EBITDA.
Six Months Ended June 30,
2007 2006
Revenues(a) Revenues(a)
EBITDA EBITDA
Domestic Car Rental $ 2,279 110 2,176 105
International Car Rental 393 45 352 42
Truck Rental 197 (1) 230 19
Total Company $ 2,869 154 $ 2,758 166
Less: Non-vehicle related depreciation and amortization 43 40
Interest expense related to corporate debt, net(b) 67 29
Income before income taxes $ 44 $ 97
__________
(a)
Inter-segment total revenues were not significant to the revenue of any one segment.
(b)
Does not reflect intercompany interest income of $22 million in first six months 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 $8.2 billion and
approximately $6.4 billion at June 30, 2007 and December 31, 2006, respectively.
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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 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
• Demand for truck rentals, which can be impacted by household moving activity.
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
19
22. 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
related 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 June 30, 2007 vs. Three Months Ended June 30, 2006
Revenues EBITDA
% %
Change 2006 Change
2007 2006 2007
Domestic Car Rental $ 1,195 $ 1,132 6% $ 59 $ 74 (20)%
International Car Rental 202 178 13 21 19 11
Truck Rental 114 129 (12) 10 18 (44)
Total Company $ 1,511 $ 1,439 5 90 111 (19)
Less: Non-vehicle related depreciation and amortization 20 22
Interest expense related to corporate debt, net(a) 33 29
Income before income taxes $ 37 $ 60
____________
(a)
Does not include intercompany interest income of $8 million in 2006 related to tax benefits and working capital advances, which are
included within EBITDA.
Domestic Car Rental
Revenues increased $63 million (6%) and EBITDA decreased $15 million (20%), respectively, in second quarter 2007
compared with second quarter 2006. EBITDA margins were negatively impacted year-over-year by lower car rental time &
mileage (“T&M”) revenue rates and increased fleet costs due to higher per unit fleet costs in 2007 as well as lower insurance
costs in second quarter 2006 as favorable loss experience necessitated a reduction in insurance reserves.
The revenue increase of $63 million was comprised of a $24 million (3%) increase in T&M revenue and a $39 million (18%)
increase in ancillary revenues. The increase in T&M revenue was principally driven by a 6% increase in rental days, partially
offset by a 3% decrease in T&M revenue rates. The favorable effect of incremental T&M revenues was offset in EBITDA by
$30 million (10%) of increased fleet depreciation and lease charges primarily resulting from increased per-unit fleet costs in
2007 and a 5% increase in average fleet size. The increase in per-unit fleet costs was limited to approximately 5% through a
series of mitigating actions which included an increase in the portion of our car rental fleet that is not subject to manufacturer
repurchase agreements and increasing our average hold periods. The $39 million increase in ancillary revenues was due
primarily to (i) a $19 million increase in sales of loss damage waivers and insurance products, rentals of GPS navigation units
and other items and (ii) an $18 million increase in airport concession and vehicle licensing revenues, $7 million of which was
offset in EBITDA by higher airport concession and vehicle licensing expenses remitted to airport and other regulatory
authorities.
EBITDA also reflected a $45 million increase in operating expenses including (i) $29 million of additional expenses
primarily associated with increased car rental volume and fleet size, including maintenance and damage costs, operating
commissions and other items, (ii) a $12 million increase in insurance costs primarily due to the lower expense in 2006 as a
result of favorable claims experience and of hurricane related insurance recoveries and (iii) $8 million of incremental
expenses primarily representing inflationary increases in rent, salaries and wages and other costs. These operating increases
were partially offset by a $4 million gain on our gasoline hedges.
International Car Rental
Revenues and EBITDA increased $24 million (13%) and $2 million (11%), respectively, in second quarter 2007 compared
with second quarter 2006, primarily due to increased car rental pricing and higher demand for car rentals.
20
23. The revenue increase of $24 million was comprised of a $16 million (12%) increase in car rental T&M revenue and an $8
million (16%) increase in ancillary revenues. The increase in T&M revenue was principally driven by a 9% increase in
T&M revenue per day and a 3% increase in the number of days a car was rented. The total growth in revenue includes a
$13 million increase in revenue related to favorable foreign currency exchange rate fluctuations, which increased T&M
revenue per day by 7% and was substantially offset in EBITDA by the opposite impact of foreign currency exchange rate
fluctuations on expenses. The favorable effect of incremental T&M revenues was also offset in EBITDA by an increase
of $8 million (19%) in fleet depreciation and lease charges amid a 6% increase in the average size of our international
rental fleet.
The $8 million increase in ancillary revenues was due primarily to an increase in counter sales of insurance and an
increase in airport concession and vehicle licensing revenues, partially offset in EBITDA by higher airport concession
and vehicle licensing expenses remitted to airport and other regulatory authorities. EBITDA also reflects higher
operating expenses primarily due to increased car rental volume and fleet size, including vehicle maintenance and
damage costs and, to a lesser extent, higher insurance expenses and higher incremental expenses primarily representing
inflationary increases in rent, salaries and wages and other costs.
Truck Rental
Revenues and EBITDA declined $15 million (12%) and $8 million (44%), respectively, for second quarter 2007 compared
with second 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 $15 million was due to a decrease in T&M revenue, which reflected a 9%
reduction in rental days and a 4% decrease in T&M revenue per day. The 9% reduction in rental days resulted primarily from
declines in commercial volumes and a 9% reduction in the average size of our rental fleet. We believe these decreases reflect
a soft housing market, historically high gasoline prices and growing competition in the commercial segment. Despite the
reduction in the average size of our truck rental fleet, we incurred $1 million (2%) of incremental fleet depreciation, interest
and lease charges primarily due to higher per-unit fleet costs. These items were offset by a $6 million decrease in our public
liability and property damage costs as a result of more favorable claims experience and a reduction in rental days and other
reductions in operating and commission expenses primarily due to reduced rental volumes.
Six Months Ended June 30, 2007 vs. Six Months Ended June 30, 2006
Revenues EBITDA
% %
Change 2006 Change
2007 2006 2007
Domestic Car Rental $ 2,279 $ 2,176 5% $ 110 $ 105 5%
International Car Rental 393 352 12 45 42 7
Truck Rental 197 230 (14) (1) 19 *
Total Company $ 2,869 $ 2,758 4 154 166 (7)
Less: Non-vehicle related depreciation and amortization 43 40
Interest expense related to corporate debt, net(a) 67 29
Income before income taxes $ 44 $ 97
____________
(*)
Not meaningful.
(a)
Does not include intercompany interest income of $22 million in 2006 related to tax benefits and working capital advances, which are
included within EBITDA.
Domestic Car Rental
Revenues increased $103 million (5%) while EBITDA increased $5 million (5%) in the six months ended June 30, 2007
compared with the same period in 2006. We experienced increased demand for car rentals throughout the period; however
EBITDA margin comparisons were negatively impacted by increased fleet costs.
The revenue increase of $103 million was comprised of a $41 million (2%) increase in T&M revenue and a $62 million
(15%) increase in ancillary revenues. The increase in T&M revenue was principally driven by a 3% increase in rental days
while T&M revenue per day was constant year over year. The favorable effect of incremental T&M revenues was offset in
EBITDA by $57 million (10%) of increased fleet depreciation and lease charges primarily resulting from increased per-unit
fleet costs in 2007 and a 2% increase in average fleet size. The increase in per-unit fleet costs was partially mitigated by an
increase in the portion of our car rental fleet that is not subject to manufacturer repurchase agreements. The $62 million
increase in ancillary revenues was due primarily to (i) a $32 million increase in sales of loss damage waivers and insurance
21