Avis Reports $461-Million 3Q Loss Due to Cendant Breakup

On November 8, Avis Budget Group Inc. reported a third-quarter pre-tax loss of $461 million due to expenses associated with the breakup of Cendant Corp.

Avis, formerly Cendant, claimed it had to spent $480 million to facilitate the separation of the company into four independent entities. Expenses included early repayment of debt, transaction costs and stock-based compensation. The company reported a $19 million pre-tax profit, excluding those expenses.

Third quarter revenue increased 1.2 percent to a record $1.57 million, compared to 2005 figures.

Shares of Avis jumped 39 cents to $20 in after-hours trading, and closed at $19.61, up 40 cents, in New York Stock Exchange composite trading.

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