EXHIBIT 99.1
FINANCIAL CONTACT: KATHI HYLE
SENIOR VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER
954-320-6267
[email protected]
MEDIA CONTACT: CHERYL BUDD
SENIOR VICE PRESIDENT
CORPORATE COMMUNICATIONS
954-320-4025
[email protected]
FOR IMMEDIATE RELEASE
ANC RENTAL CORPORATION REVISES FOURTH QUARTER EXPECTATIONS
AND ANNOUNCES SENIOR MANAGEMENT CHANGE
FORT LAUDERDALE, FLORIDA (JANUARY 2, 2001) - ANC Rental
Corporation (Nasdaq: ANCX), the parent company of Alamo Rent A Car and
National Car Rental, today revised its earnings expectations for the
quarter and year ending December 31, 2000. ANC also announced a senior
management change.
Revised Expectations
Fourth quarter consolidated revenue for the period ending
December 31, 2000 is expected to be approximately $800 million with a net
loss in the range of $45 to $50 million. Prior projections for the fourth
quarter anticipated a net loss of up to $15 million. For calendar year
2000, the company expects to report consolidated revenue of approximately
$3.5 billion and a net loss between $3 and $8 million. Before non-recurring
transition costs, the company expects to post net income of between $2 and
$7 million for full year 2000. Actual quarterly and full year 2000 results,
together with 2001 guidance, will be addressed during the company's fourth
quarter conference call on January 25, 2001.
The company's revised expectations are due principally to a
weaker-than-expected price environment in the North American airport market
and higher-than-anticipated average North American fleet during the fourth
quarter. Preliminary results show that revenue per day for the North
American airport market was approximately 5% below the same period last
year as compared to the company's previous projection of between 2% - 3%
below the same period last year. Although the company met its volume
expectations in North America, its higher average fleet for the fourth
quarter caused utilization to be significantly below forecast levels.
Factors contributing to the company's higher-than-expected
average fleet are confined to the fourth quarter 2000 and the company
expects its 2001 fleet to be in line with forecasted demand levels. To
mitigate the impact of weaker-than-planned pricing in the North American
airport markets, the company has implemented a number of measures to
further reduce costs and will continue to identify and pursue additional
measures going forward.
Both the Alamo Local Market division of ANC (previously CarTemps
USA) and the International division are performing as planned.
Management Change
ANC also announced that Michael S. Karsner has stepped down as
president and CEO of ANC Rental Corporation, a position he held since
November 1999. Michael S. Egan, currently the company's chairman and one of
its largest shareholders, has been named ANC's new chief executive officer.
Mr. Egan will also continue to serve as chairman of ANC's board of
directors. Michael Egan began his career with Alamo in 1976 and was Alamo's
majority owner and chairman from 1986 to 1996, when Alamo was acquired by
AutoNation, Inc.
ANC Rental Corporation is one of the world's largest car rental
companies with annual revenue of approximately $3.5 billion in 2000. ANC
Rental Corporation, the parent company of Alamo and National has more than
4,000 locations in 69 countries and employs approximately 22,000 associates
worldwide.
Certain statements and information included in this press release
constitute "forward-looking statements" within the meaning of the Federal
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertaintainities and other
factors which may cause the actual results, performance or achievements of
the company to be materially different from any future results, performance
or achievements expressed or implied in such forward looking statements.
Additional discussion of factors that could cause the actual results to
differ materially from management's projection, forecasts, estimates and
expectations is contained in the company's Registration Statement on Form
10 and other SEC filings.
