Zipcar, Inc. the world's largest car sharing network, reported results this week for the first quarter ended March 31, 2011.
"We are delighted to report strong financial results in our first quarter as a public company," said Scott Griffith, Chairman and CEO. "During the first quarter, we continued to generate significant financial momentum organically, highlighted by gains in our membership base, which contributed to solid revenue growth and enhanced profitability in our Established Markets. At the same time, we began the integration of Streetcar in the U.K. after receiving final regulatory approval in December. With our improved financial position following the IPO, we are excited to lead the growth of the global car sharing market on the strength of our brand, network of cities and vehicles, proprietary technology and expertise based on more than 10 million reservations."
For the first quarter of 2011, revenue increased 48 percent to $49.1 million compared to $33.2 million in the prior year period. Excluding Streetcar, revenue increased 24 percent compared to the prior year period. Usage revenue represented $41.9 million in the first quarter of 2011, compared to $29.3 million in the prior year period with fee revenue representing the balance of total revenue for the period. Revenue growth in the first quarter of 2011 compared to the prior year period was attributable principally to increased membership as well as the acquisition of Streetcar. Total membership during the quarter increased 57 percent from the prior year period to a total of approximately 577,000 at quarter end. Excluding the Streetcar operations, which were acquired in April 2010, members grew 31 percent compared to the prior year period. Revenue for Zipcar's Established Markets - Boston, New York, Washington, D.C. and San Francisco - grew 20 percent to $27.1 million compared to $22.6 million in the prior year period, with a 45 percent improvement in income before tax to $4.6 million from $3.2 million in the prior year period.
US GAAP net loss in the first quarter of 2011 was $6.1 million, or $(0.95) per basic and diluted share, compared to a loss of $5.3 million, or $(2.37) per basic and diluted share, in the prior year period.
Adjusted EBITDA for the first quarter of 2011 was a loss of $1.9 million compared to a loss of $2.6 million in the prior year period. The improvement in Adjusted EBITDA is primarily due to increased revenues and improved operating leverage, offset in part by losses in the Streetcar operation. See the reconciliation between US GAAP net loss and Adjusted EBITDA loss provided below.
Commenting on Zipcar's financial performance, Ed Goldfinger, Chief Financial Officer, said, "The combination of strong top line growth along with leverage in our fleet operations drove solid progress in our core business. In particular, we saw a significant uptick in usage revenue per vehicle per day, which we consider as one of our most important performance metrics."
For the 2011 second quarter, the Company expects revenue in the range of $59 million to $60 million. Adjusted EBITDA for the period is expected to range from $0.5 million to $1.0 million. US GAAP net loss is expected to range from $7 million to $8 million. Full year 2011 revenue is expected in the range of $235 million to $240 million with full year 2011 Adjusted EBITDA expected to range from $6 million to $8 million and US GAAP net loss to range from $13 million to $17 million. Average share counts are expected to be between 32 million and 33 million for the second quarter and between 39 million and 40 million for the third and fourth quarters. Common stock equivalents, using the treasury stock method, would add approximately 3 million to 4 million shares, which would be included in the average share count in any period during which the Company records positive US GAAP net income.