Tuesday March 13
Budget Group Reports Fourth Quarter and Year-End Results and Completes Reshaping of Its North American Car and Truck Rental Business
LISLE, Ill. -- Budget Group, Inc. released its fourth quarter and year-end 2000 results, outlined its multi-step financing plan and provided guidance for 2001.
"Our announcement reflects the full and complete reshaping of the company to a singular $2.4 billion core car and truck rental business. Over the last 12 months we consolidated and realigned our North American Vehicle Rental Operations and have transformed the company from seven independent operating units into two segments operating under a single management structure. In Europe, we are executing our franchising and scale-back strategy to substantially reduce our financial and operating risk, while maintaining a strong franchising network representing Budget in every strategic market in Europe. As a result, during the fourth quarter 2000, we took a number of charges, most of which were non-cash. We recognize the magnitude of these charges, however, they are a necessary step to strengthen the Company's future earnings potential. All of these initiatives will result in an estimated $125 million improvement in earnings for 2001 over 2000. Earlier this year our banks approved our business plan, and in February, they granted an amendment to our revolving credit facility allowing us to put in motion the remaining fleet financings for 2001 and beyond," stated Sandy Miller, chairman and chief executive officer for Budget Group, Inc.
For the fourth quarter 2000, Budget reported revenue of $538.0 million and a pre-tax loss from continuing operations of $149.4 million before charges.
During the quarter, the company took charges totaling $399.0 million. Eighty-four percent of the charges were non-cash items. The cash impact of the charges attributable to U.S. operations is approximately $23 million, and approximately $41 million for Europe.
After the charges, Budget posted a fourth quarter pre-tax loss from continuing operations of $548.4 million. This compares to a pre-tax loss of $128.5 million for the prior year fourth quarter, which included charges of $105.4 million largely related to work-force reductions, the integration of Premier Car Rental into Budget and systems-related issues in the U.S. and Europe.
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