SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
For the quarterly period ended March 31, 1999
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 1-13315
AVIS RENT A CAR, INC.
(Exact name of registrant as specified in its charter)
Delaware 11-3347585
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
900 Old Country Road, Garden City, New York 11530
(Address of principal executive offices)
(Zip Code)
(516)222-3000
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report.)
Indicate by checkmark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [_]
Indicate the number of shares outstanding of each of the registrant's classes of
common stock as of May 5, 1999: Common Stock, $.01 par value - Class A
31,127,892 shares.
<PAGE>
AVIS RENT A CAR, INC.
INDEX
PART I. Financial Information
ITEM 1. FINANCIAL STATEMENTS
Page
Condensed Consolidated Statements of
Operations for the Three months ended
March 31, 1999 and 1998....................................2
Condensed Consolidated Statements of Financial
Position as of March 31, 1999
and December 31, 1998......................................3
Condensed Consolidated Statements of Cash
Flows for the Three months ended
March 31, 1999 and 1998....................................4
Notes to the Condensed Consolidated
Financial State........................................5 - 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF
OPERATIONS...............................................7 - 10
1
<PAGE>
AVIS RENT A CAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three months ended
March 31,
1999 1998
-------------- ----------
Revenue...................................... $ 566,917 $ 511,390
-------------- ----------
Costs and Expenses:
Direct operating............................. 226,165 210,431
Vehicle depreciation and lease charges,
net....................................... 149,402 133,362
Selling, general and administrative.......... 110,801 104,148
Interest, net................................ 50,545 47,668
Amortization of cost in excess of
net assets acquired ...................... 3,174 2,552
-------------- -------
540,087 $498,161
-------------- --------
Income before provision for income taxes .... 26,830 13,229
Provision for income taxes................... 11,644 5,821
-------------- --------
Net income .................................. $ 15,186 $ 7,408
============== ========
Earnings per share:
Basic ..................................... $ 0.48 0.24
============== =========
Diluted ..................................... $ 0.47 $ 0.23
============== =========
See accompanying notes to the condensed consolidated financial statements.
2
<PAGE>
AVIS RENT A CAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In thousands)
March 31, December 31,
1999 1998
-------------- --------------
(Unaudited)
ASSETS
Cash and cash equivalents.................... $ 41,071 $ 29,751
Restricted cash.............................. 137,414 133,284
Accounts receivable, net..................... 271,372 360,574
Prepaid expenses............................. 43,828 42,083
Vehicles, net ............................... 3,558,957 3,164,816
Property and equipment, net.................. 147,707 145,045
Deferred income tax assets................... 105,633 120,779
Cost in excess of net assets acquired,net.... 465,565 468,140
Other assets ................................ 49,189 40,590
-------------- --------------
Total assets................................. $ 4,820,736 $ 4,505,062
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable............................ $ 193,234 $ 198,481
Accrued liabilities ......................... 308,360 326,204
Due to affiliates, net....................... 27,496 22,293
Current income tax liabilities............... 25,660 23,045
Deferred income tax liabilities.............. 29,479 28,504
Public liability, property damage and
other insurance liabilities............... 274,243 269,209
Debt ........................................ 3,369,713 3,014,712
-------------- --------------
Total liabilities ........................ 4,228,185 3,882,448
-------------- --------------
Commitments and contingencies
Stockholders' equity:
Class A Common stock ........................ 359 359
Additional paid-in capital................... 591,723 591,651
Retained earnings............................ 107,401 92,215
Accumulated other comprehensive loss......... (10,251) (10,651)
Treasury stock .............................. (96,681) (50,960)
-------------- --------------
Total stockholders' equity................ 592,551 622,614
-------------- --------------
Total liabilities and stockholders' equity .. $ 4,820,736 $ 4,505,062
============== ==============
See accompanying notes to the condensed consolidated financial statements.
3
<PAGE>
AVIS RENT A CAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three months ended
March 31,
1999 1998
---------- ----------
Cash flows from operating activities:
Net income ........................................... $ 15,186 $ 7,408
Adjustments to reconcile net income to cash provided
by (used in) operating activities ............... 155,264 (63,334)
---------- ----------
Net cash provided by (used in) operating
activities ....................................... 170,450 (55,926)
---------- ----------
Cash flows from investing activities:
Vehicle additions .................................... (1,227,481) (749,583)
Vehicle deletions .................................... 789,697 684,449
Additions to property and equipment................... (5,630) (8,956)
Retirements of property and equipment ................ 241 366
Payment for purchase of licensee, net of
cash acquired of $8,011 .......................... (1,879)
---------- ----------
Net cash used in investing activities ............ (445,052) (73,724)
---------- ----------
Cash flows from financing activities:
Changes in debt:
Issuance of medium term notes..................... 600,000
Net increase (decrease) in commercial paper....... 320,829 (607,200)
Other increases (decreases) in debt, net ......... 11,163 (39,459)
---------- ----------
Net increase (decrease) in debt .................. 331,992 (46,659)
Payments for debt issuance costs ................... (3,301)
Proceeds from public offering ...................... 161,194
Purchases of treasury stock.......................... (47,768)
Other................................................ 1,679
---------- ----------
Net cash provided by financing activities........ 285,903 111,234
---------- ----------
Effect of exchange rate changes on cash ................ 19 8
---------- ---------
Net increase (decrease) in cash and cash equivalents.... 11,320 (18,408)
Cash and cash equivalents at beginning of period ....... 29,751 44,899
---------- ----------
Cash and cash equivalents at end of period ............. $ 41,071 $ 26,491
========== ==========
Supplemental disclosure of cash flow information
Cash paid during the period for:
Interest.............................................. $ 51,728 $ 46,714
========== ==========
Income taxes ........................................... $ 2,238 $ 3,935
========== ==========
See accompanying notes to the condensed consolidated financial statements.
4
<PAGE>
AVIS RENT A CAR, INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1- Basis of Presentation
The accompanying unaudited condensed consolidated financial statements include
Avis Rent A Car, Inc. and its subsidiaries (the "Company"). These consolidated
financial statements reflect, in the opinion of management, all material
adjustments (which include normal recurring adjustments only) necessary to
fairly state the financial position, the results of operations and cash flows
for the periods presented. Operating results for interim periods are not
indicative of the results that can be expected for a full year. These
consolidated financial statements should be read in conjunction with the
Company's audited annual consolidated financial statements and notes thereto,
included in the Company's annual report on Form 10-K filed with the Securities
and Exchange Commission. Certain amounts in the prior period have been
reclassified to conform to current period presentation.
Note 2- Earnings Per Share
Basic earnings per share is computed by dividing net income for the three month
periods ended March 31, 1999 and 1998 by 31,873,031 and 31,425,000 weighted
average shares outstanding, respectively. Diluted earnings per share is computed
by dividing net income for the three month periods ended March 31, 1999 and 1998
by 32,517,570 and 32,561,483 weighted average shares outstanding, respectively.
Shares used in calculating diluted earnings per share include the effects of the
assumed exercise of dilutive stock options.
Note 3 - Treasury Stock
At March 31, 1999 treasury stock is comprised of the following:
Treasury
Stock, Treasury
(in thousands) Shares
Balance, December 31, 1998.......................... $ 50,960 2,672,700
Treasury stock repurchased from
January 1, 1999 to March 31, 1999.............. 47,768 2,004,575
Treasury stock issued under the
Company's stock option plan................... (2,047) (98,767)
---------- ------------
$ 96,681 4,578,508
========== ============
Included in treasury stock repurchased from January 1, 1999 to March 31, 1999
are 1.3 million shares, repurchased from Cendant Corporation at a cost of $31.5
million.
Note 4 - Acquisition
On March 19, 1999, the Company purchased the common stock and franchise rights
of Rent A Car Company, Incorporated, of Richmond, Virginia.
The following is the preliminary purchase cost allocation for this acquisition
(in thousands):
Purchase cost....................................... $10,090
Fair value of:
Assets acquired................................ 30,424
Liabilities assumed............................ 28,017
--------
Net assets.......................................... 2,407
--------
Cost in excess of net assets acquired............... $ 7,683
========
5
<PAGE>
The preliminary purchase cost allocation for this acquisition is subject to
adjustment when additional information concerning asset and liability valuations
are obtained. The final asset and liability fair values may differ from those
set forth in the accompanying statement of financial position at March 31, 1999.
However, the changes are not expected to have a material effect on the financial
position of the Company. This acquisition has been accounted for by the purchase
method. These consolidated financial statements include the operating results of
this acquisition subsequent to the date of acquisition. If the foregoing
acquisition had occurred on January 1, 1998, it would not have had a material
impact on the results of operations for the three-month periods ended March 31,
1999 and 1998. During 1999, adjustments were made to asset and liability
valuations relating to former acquisitions resulting in a reduction of the
excess purchase price over net assets acquired.
Note 5 - Comprehensive Income
Comprehensive income is comprised of the following (in thousands):
Three months ended
March 31,
1999 1998
Net income............................................. $15,186 $7,408
Foreign currency translation adjustment.............. 400 388
-------- -------
Comprehensive income.................................. $15,586 $7,796
======= =======
Note 6- Retirement Benefits
Effective January 1, 1999 the Company curtailed its defined benefit plans to its
eligible salaried and hourly employees as of June 30, 1985. The Company
recognized a non-recurring $7.5 million pre-tax gain as a result of the
curtailment which was recorded in January 1999 and is included in Direct
Operating expense on the accompanying Statement of Operations.
6
<PAGE>
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
(Unaudited)
General Overview
The Company conducts vehicle rental operations through wholly-owned subsidiaries
in the United States, Canada, Puerto Rico, the U.S. Virgin Islands, Argentina,
Australia and New Zealand. Revenue is derived principally from charges for
vehicle rentals and, to a lesser extent, the sale of loss damage waivers,
liability insurance and other products and services.
Three Months Ended March 31, 1999 Compared to Three Months Ended March 31, 1998
The following table sets forth for the periods indicated, certain items in the
Company's unaudited condensed consolidated statements of operations (dollars in
thousands):
Three Months ended Three Months ended
March 31, 1999 March 31, 1998
---------------------- ---------------------
Percentage Percentage
of Revenue of Revenue
--------- ----------- --------- ----------
Revenue.......................... $566,917 100.0% $511,390 100.0%
--------- ----------- --------- ----------
Costs and expenses:
Direct operating ............. 226,165 39.9 210,431 41.1
Vehicle depreciation and
lease charges, net........... 149,402 26.4 133,362 26.1
Selling, general and
administrative............... 110,801 19.5 104,148 20.4
Interest, net................. 50,545 8.9 47,668 9.3
Amortization of cost in excess
of net assets acquired....... 3,174 0.6 2,552 0.5
--------- ----------- --------- ---------
540,087 95.3 498,161 97.4
--------- ----------- --------- - -------
Income before provision for
income taxes ................. 26,830 4.7 13,229 2.6
Provision for income taxes....... 11,644 2.0 5,821 1.1
========= =========== ========= ==========
Net income....................... $ 15,186 2.7% $7,408 1.5%
========= =========== ========= ==========
Revenue
Revenue for the current quarter increased 10.9%, from $511.4 million to $566.9
million, compared to the same period in 1998, due primarily to overall market
demand (6.7%) and the acquisition of certain car rental assets of the Hayes
Leasing Company, Inc. on May 1, 1998, (4.2%). The revenue increase reflected an
11 % increase in the number of rental transactions and a 0.1% decrease in
revenue per rental transaction.
Costs and Expenses
Total costs and expenses for the current quarter increased 8.4%, from $498.2
million to $540.1 million, compared to the same period in 1998. Direct operating
expenses increased 7.5%, from $210.4 million to $226.2 million, compared to the
same period in 1998. As a percentage of revenue, direct operating expenses
declined to 39.9%, from 41.1% for the corresponding period in 1998. Direct
Operating expenses included a non-recurring $7.5 million gain (1.3% of revenue),
resulting from the curtailment of the Company's defined benefit plans. Operating
efficiencies were derived primarily from lower vehicle damage expense (0.4% of
revenue) and lower airport commissions (1.0% of revenue). These efficiencies
were offset by higher compensation costs (0.8% of revenue) and higher facility
costs (0.5% of revenue).
7
<PAGE>
Vehicle depreciation and lease charges for the current quarter increased 12.0%,
from $133.4 million to $149.4 million, compared to the same period in 1998. As a
percentage of revenue, vehicle depreciation and lease charges were 26.4% of
revenue, as compared to 26.1% of revenue for the corresponding period in 1998.
The change reflected a 9.8% increase in the average rental fleet combined with a
higher monthly cost per vehicle. Selling, general and administrative expenses
for the current quarter increased 6.4%, from $104.1 million to $110.8 million,
compared to the same period in 1998. The increase was due to higher reservation
costs, higher royalty fees, and higher general and administrative expenses.
Interest expense for the current quarter increased 6.0%, from $47.7 million to
$50.5 million, compared to the same period in 1998, due to higher borrowings
required to finance the growth of the rental fleet, partially offset by lower
average interest rates.
The provision for income taxes for the current quarter increased to $11.6
million, from $5.8 million for the same period in 1998. The effective income tax
rate was 43.4%, down from 44.0% for the corresponding period in 1998. The
effective tax rate reflects differences between foreign income tax rates and the
U.S. federal statutory income tax rate, taxes on the repatriation of foreign
earnings, and foreign withholding taxes on dividends paid to the Company.
Net income for the current quarter increased 105%, from $7.4 million to $15.2
million, compared to the same period in 1998. The increase reflects higher
revenue, decreased costs and expenses as a percentage of revenue and a lower
effective income tax rate.
Liquidity and Capital Resources
The Company's operations are funded by cash provided by operating activities and
by financing arrangements maintained by the Company in the markets in which it
operates. The Company's primary use of funds is for the acquisition of new
vehicles. For the current quarter, the Company's expenditures for new vehicles
were approximately $1.2 billion and proceeds from the disposition of used
vehicles were approximately $790 million. In 1999, the Company expects its
expenditures for new vehicles (net of proceeds from the disposition of used
vehicles) to be higher than in 1998. The financing requirements for vehicles
typically reaches an annual peak in the third calendar quarter, as fleet levels
build up in response to increased rental demand during that period. The typical
low point for cash requirements occurs during the end of the fourth quarter and
the beginning of the first quarter, coinciding with lower levels of fleet and
rental demand. The Company has established methods for disposition of its used
vehicles. The Company's customer receivables also provide liquidity with
approximately 11 days of daily sales outstanding.
The Company made capital investments for property improvements totaling $5.6
million for the current quarter, compared to $9.0 million for the same period in
1998.
The Company's fleet financing program provides for borrowings up to $ 3.75
billion, comprised of $2.25 billion of asset-backed medium term notes (the
"Medium Term Notes") and the issuance of up to $1.5 billion of asset-backed
variable funding notes (the "Commercial Paper Notes"). The Medium Term Notes and
the Commercial Paper Notes are backed by, among other things, a first priority
security interest in the vehicles.
Avis Rent A Car System, Inc. ("ARACS"), a wholly-owned subsidiary of the
Company, is party to a $350 million secured credit agreement that provides for
(i) a revolving credit facility of up to $125 million which is available until
December 31, 2001 to finance the general corporate needs of ARACS in the
ordinary course of business with up to $75 million of such amount available for
the issuance of standby letters of credit to support workers' compensation and
other insurance and bond requirements of ARACS, the Company and their
subsidiaries, in the ordinary course of business and (ii) a $225 million standby
letter of credit facility available on a revolving basis until April 15, 2000 to
fund (a) any shortfall in certain payments owing AESOP Leasing L.P., a
subsidiary of ARACS, pursuant to fleet agreements and (b) maturing Commercial
Paper Notes, if such Commercial Paper Notes cannot be repaid through the
issuance of additional Commercial Paper Notes, or draws under the liquidity
facility supporting the Commercial Paper Notes. At March 31, 1999, the Company
had approximately $168 million of additional credit available under the secured
credit agreement.
8
<PAGE>
The Company expects that cash flows from operations and funds from available
credit facilities will be sufficient to enable the Company to meet its
anticipated operating cash requirements for the next twelve months. Based on
current market conditions and the Company's current banking relationships, the
Company expects to fund maturities of the Medium Term Notes by the issuance of
either new medium term notes or commercial paper depending on market conditions
at the time the Medium Term Notes mature. However, the Company can give no
assurance that will occur.
Borrowings for the Company's international operations consist mainly of loans
obtained from local and international banks. All borrowings for international
operations are in the local currencies of the countries in which those
operations are conducted. At March 31, 1999, the total debt for the Company's
international operations was $119.1 million, of which $112.2 million is due in
less than 12 months. At March 31, 1999, the impact on the Company's liquidity
and financial condition due to exchange rate fluctuations of its foreign
operations is not material.
Seasonality
Car rental is a seasonal business, with decreased travel in winter months and
heightened activity in spring and summer. To accommodate increased demand, the
Company increases its available fleet during the second and third quarters.
Certain of the Company's operating expenses are fixed and cannot be reduced
during periods of decreased rental demand. In certain geographic markets, the
impact of seasonality has been reduced by emphasizing leisure or business travel
in the off-peak season.
Recent Accounting Standards
Recent pronouncements of the Financial Accounting Standards Board which are not
required to be adopted at this date, include Statement of Financial Accounting
Standards ("SFAS") No. 133 - "Accounting for Derivative Instruments and Hedging
Activities, ("SFAS 133"), which is effective for the Company's consolidated
financial statements for the year ending December 31, 2000. SFAS 133 establishes
accounting and reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts and for hedging activities.
It requires that an entity recognize all derivatives as either assets or
liabilities in the statement of financial position at fair value. The adoption
of SFAS 133 will not have a material effect on the Company's consolidated
financial statements.
Quantitative and Qualitative Disclosures About Market Risk
The Company has derivative financial instruments at March 31, 1999 that are
sensitive to changes in interest rates on its debt obligations and on its
interest rate swap agreements. There have been no material changes to the
Company's derivative financial instruments for the quarter ended March 31, 1999.
Year 2000 Compliance
Many currently installed computer systems and software products are coded to
accept only two-digit entries in the date code field and cannot distinguish 21st
century dates from 20th century dates. Consequently, these software and computer
systems need to be either reprogrammed, upgraded or replaced in order to
properly function when Year 2000 arrives.
The Company's state of readiness, contingency plans, Year 2000 costs and
possible consequences from Year 2000 problems are as follows:
(i) State of Readiness
The Company has implemented a comprehensive plan to address the Year 2000
requirements in its mission critical systems. Mission critical systems are
those whose failure poses a risk of disruption to the Company's ability to
provide vehicle reservation and rental services. The Company's
comprehensive plan includes (i) the identification of all mission critical
systems and the inventory of all hardware and software affected by the Year
2000; (ii) assessment of these systems including prioritization; (iii)
modification, upgrading and replacement of the affected systems; and (iv)
testing of the systems. The Company is using both internal and external
sources to implement its plan. The Company has completed the remediation of
its mission critical systems including the modification,
9
<PAGE>
upgrading and replacement of the affected systems. The Company has
completed the testing of approximately 70% of these mission critical
systems. The Company currently believes its mission critical systems
will be Year 2000 compliant in the summer of 1999.
Much of the Company's technology, including technology associated with its
mission critical systems, is purchased from third parties. The Company is
dependent on those third parties to assess the impact of Year 2000 on the
technology they have supplied and to take any necessary corrective action.
The Company is monitoring the progress of these third parties and
conducting tests to determine whether they have accurately assessed the
problem and taken corrective action.
(ii) Contingency Plans
Based upon the progress of its comprehensive plan, the Company expects that
it will not experience a disruption of its operations as a result of the
change to the Year 2000. However, there can be no assurance that the third
parties who have supplied technology used in the Company's mission critical
systems will be successful in taking corrective action in a timely manner.
The Company is developing contingency plans with respect to certain key
technology used in its mission critical systems, which are intended to
enable the Company to continue to operate. The contingency plans include
performing certain processes manually; repairing systems and changing
suppliers if necessary, although there can be no assurance that these
contingency plans will successfully avoid service disruption in the
reservation and rental of vehicles. The Company believes, that due to the
widespread nature of potential Year 2000 issues, the contingency planning
process is ongoing, which will require further modifications as the Company
obtains additional information regarding (1) the Company's internal systems
and equipment during the remediation and testing phases of its Year 2000
comprehensive plan; and (2) the status of third parties Year 2000
readiness.
(iii) Year 2000 Costs
Total costs of hardware and software remediation are expected to be $22.3
million. Costs of hardware and software remediation were approximately $3.0
million in 1997, $8.4 million in 1998 and are estimated to be approximately
$10.5 million in 1999 and $400,000 in 2000. Costs of hardware and software
remediation were approximately $2.5 million for the three months ended
March 31, 1999. These estimates include the costs of certain equipment and
software for which planned replacement was accelerated due to Year 2000
requirements. In addition, they reflected the cost of redeploying certain
internal resources to address the Year 2000 requirements. This estimate
assumes that third party suppliers have accurately assessed the compliance
of their products and that they will successfully correct the issue in
non-compliant products. Because of the complexity of correcting the Year
2000 issue, actual costs may vary from these estimates. The Company expects
to finance these costs through internally generated cash flow and existing
credit facilities.
(iv) Possible Consequences from Year 2000 Problems
The Company believes that completed and planned modifications and
conversions of its internal systems and equipment will allow it to be Year
2000 compliant in a timely manner. There can be no assurance, however, that
the Company's internal systems or equipment or those of third parties on
which the Company relies will be Year 2000 compliant in a timely manner or
that the Company's or third parties' contingency plans will mitigate the
effects of any non-compliance. The failure of the systems or equipment of
the Company or third parties (which the Company believes is the most
reasonably likely worst case scenario) could effect vehicle reservation and
rental operations and could have a material adverse effect on the Company's
business or consolidated financial statements.
Forward Looking Information
Certain matters discussed in this report that are not historical facts are
forward-looking statements that are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements involve risks and uncertainties including the impact of competitive
products and pricing, changing market conditions, the ability of the Company and
its vendors to complete the necessary actions to achieve a Year 2000 conversion
for its computer systems and applications, and other risks which were detailed
from time to time in the Company's publicly-filed documents, including its
Annual Report on Form 10-K for the period ended December 31, 1998. Actual
results may differ materially from those projected. These forward-looking
statements represent the Company's judgement as of the date of this report.
10
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
Avis Rent A Car, Inc.
--------------------------
(Registrant)
Dated: May 12, 1999 By: /s/ Kevin M. Sheehan
--------------------------
Name: Kevin M. Sheehan
Title: Executive Vice President
and Chief Financial Officer
(principal financial officer)
Dated: May 12, 1999 By: /s/ Timothy M. Shanley
----------------------------
Name: Timothy M. Shanley
Title:Vice President and Controller
(principal accounting officer)
11
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Exhibits filed with Form 10-Q for the quarter ended March 31, 1999 under the
Securities Exchange Act of 1934.
AVIS RENT A CAR, INC.
Commission file number 1-13315
EXHIBIT INDEX
Exhibit
No. Description Page No.
27 Financial Data Schedule for 13
the Three months ended March 31, 1999
12
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 41,071
<SECURITIES> 0
<RECEIVABLES> 274,815
<ALLOWANCES> (3,443)
<INVENTORY> 3,558,957
<CURRENT-ASSETS> 0
<PP&E> 175,187
<DEPRECIATION> (27,480)
<TOTAL-ASSETS> 4,820,736
<CURRENT-LIABILITIES> 0
<BONDS> 3,369,713
0
0
<COMMON> 359
<OTHER-SE> 592,192
<TOTAL-LIABILITY-AND-EQUITY> 4,820,736
<SALES> 566,917
<TOTAL-REVENUES> 566,917
<CGS> 0
<TOTAL-COSTS> 485,635
<OTHER-EXPENSES> 3,174
<LOSS-PROVISION> 733
<INTEREST-EXPENSE> 50,545
<INCOME-PRETAX> 26,830
<INCOME-TAX> 11,644
<INCOME-CONTINUING> 15,186
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 15,186
<EPS-PRIMARY> .48
<EPS-DILUTED> .47
</TABLE>
