Avis Budget Group Inc. has a market cap of $1.36 billion; its shares were traded at around $13.35 with and P/S ratio of 0.3. CAR is in the portfolios of Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, Jeremy Grantham of GMO LLC.
This is the annual revenues and earnings per share of CAR over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of CAR.
Highlight of Business Operations:Total expenses decreased $45 million (4%) principally due to (i) a $58 million (16%) decrease in vehicle depreciation and lease charges resulting from an 11% decline in our average car rental fleet and a reduction in per-unit depreciation costs, (ii) a $28 million (4%) decrease in direct operating expenses largely resulting from the 12% decrease in car rental days, reduced staffing levels and other cost-saving actions and (iii) a $5 million decrease in restructuring charges. These year-over-year decreases were partially offset by (i) a $40 million expense related to the extinguishment of a portion of our corporate debt and associated interest rate swaps and (ii) a $36 million adverse impact from foreign currency exchange rates. As a result of these items, our net loss decreased $11 million.
The revenue decrease of $80 million was comprised of a $79 million (11%) decrease in T&M revenue and a $1 million (0%) decrease in ancillary revenues. The decrease in T&M revenue was principally the result of a 13% decrease in rental days partially offset by a 3% increase in T&M revenue per day. The $1 million decrease in ancillary revenues reflects the reduced rental days offset by a 12% increase in ancillary revenues per rental day from GPS rentals, sales of insurance products and other items.
We continued to achieve significant benefits from our cost-saving initiatives. EBITDA reflected a $44 million (8%) decrease in operating expenses, including a $31 million decrease in maintenance and damage, agency operator commissions, shuttling, credit card fees, and other costs amid lower rental volumes and a $7 million decrease in employee costs, rents and other expenses related primarily to reduced staffing levels and the closure of unprofitable locations. EBITDA also benefited from $59 million (20%) of decreased fleet depreciation and lease charges, reflecting an 11% decrease in the average size of our domestic rental fleet and a 10% decrease in per-unit fleet costs.
The revenue increase of $37 million was comprised of a $26 million (23%) increase in T&M revenue and an $11 million (22%) increase in ancillary revenues. The total increase in revenue includes a $43 million increase related to foreign currency exchange rates, impacting T&M revenue by $29 million and ancillary revenues by $14 million, and was largely offset in EBITDA by the opposite impact on expenses of $36 million. The increase in T&M revenue was principally driven by a 36% increase in T&M revenue per rental day (8% excluding exchange-rate effects), offset by a 10% decrease in rental days.
Assets under vehicle programs increased $170 million primarily due to a $373 million increase in our net vehicles, related mainly to the increase in our Domestic vehicle rental fleet from December 31, 2009, offset by (i) a $154 million decrease in our program cash mainly due to the repayment of certain term notes that reached maturity and (ii) a $62 million decrease in receivables from vehicle manufacturers.
Stockholders equity increased $4 million principally due to a $40 million increase in accumulated other comprehensive income, primarily resulting from the reclassification of $36 million of unrealized losses on our interest rate swaps to earnings in connection with the extinguishment of a portion of our floating rate term loan, offset by an increase in our accumulated deficit due to a $38 million net loss for the period.
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