Zipcar Stays in Black, though UK Slows Gains

Zipcar Inc. reported on Feb. 14 the results for the fourth quarter and full year ended Dec. 31, 2011. Fourth quarter revenue increased 21% to $62.9 million compared to $52.1 million in the prior year period, and full-year revenue increased by 30% to $241.6 million from $186.1 million in 2010.

The company reported a fourth quarter U.S. net income of $3.9 million, compared to a loss of $1.1 million in the prior year period, and a full year 2011 U.S. net loss of $7.2 million versus a loss of $14.1 million in 2010.

"Our fourth quarter results capped off a record year of revenue and profitability gains," said Scott Griffith, chairman and CEO. "We reported our second consecutive quarter of profitability and posted accelerated growth in our established markets while expanding our global network of cities, both domestically and abroad.”

Zipcar reported that revenue growth in the 2011 fourth quarter resulted primarily from a 25% increase in membership to more than 673,000 members at quarter end.

In Zipcar's “established markets” — Boston, New York, Washington, D.C. and San Francisco — 2011 fourth quarter revenue grew 22% to $35.6 million compared to $29.1 million in the prior year period, due primarily to new member additions. The company launched in Los Angeles in the fourth quarter.

The fourth quarter of 2011 benefited from a gain on the sale of Zero Emission Vehicle (ZEV) credits of $2.5 million compared to a gain of $1.2 million on the sale of ZEV credits in the prior year period.

"During the 2011 fourth quarter we continued to see strong year-on-year growth in our North American markets offset in part by slower growth in our U.K. operation as we completed the integration of the acquired operations,” said Ed Goldfinger, chief financial officer.

For the 2012 first quarter, which Zipcar calls its seasonally slowest period, the company expects revenue in the range of $58 million to $60 million. U.S. GAAP net income is expected to range from a net loss of $4.0 million to a net loss of $5.0 million.

Zipcar expects 2012 full-year revenue in the range of $290 million to $296 million, with U.S. net income expected to range from $2 million to $6 million.

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