Zipcar Reports Net Income for 2012

Zipcar Inc. reported Feb. 15 results for the fourth quarter and full year that ended Dec. 31, 2012.

Full-Year Results

For the full-year 2012, revenue grew 15% to $278.9 million compared to 2011 revenue of $241.6 million with usage revenue representing $235.1 million in 2012 compared to $207.2 million in 2011. Fee revenue represented substantially all the remaining revenue in both years at 16% of total revenue in 2012 and 14% of total revenue in 2011.

For the full-year 2012, Zipcar reported a net income of nearly $14.7 million, compared to a net loss of $7.15 million in 2011.

Fourth Quarter Results

For the 2012 fourth quarter, revenue increased 12% to $70.7 million compared to $62.9 million in the prior-year period despite the previously anticipated negative impact from Hurricane Sandy, which reduced revenue by just over $1 million.

Usage revenue represented $58.6 million in the fourth quarter of 2012 compared to $53.3 million in the prior-year period with fee revenue representing substantially all of the remaining revenue in both periods. Fee revenue represented 17% of total revenue in the 2012 fourth quarter compared to 15% in the prior-year period.

Fourth quarter US GAAP net income increased to $13.8 million, or $0.34 per diluted share, versus net income of $3.9 million, or $0.09 per diluted share, in the prior-year period.

Pending Acquisition

On Dec. 31, 2012, Zipcar and Avis Budget Group Inc. entered into an agreement and plan of merger. More on the merger can be read here.

The closing of the transaction remains subject to other customary conditions, including approval by Zipcar shareholders, of which a vote is expected March 7, and review by UK competition authorities. The deal is expected to close in March or April 2013.

Prior to the closing of the merger, Avis Budget and Zipcar will continue to operate as separate companies.

Zipcar did not host a conference call in conjunction with the release of its fourth quarter and full-year results and will not be updating prior financial guidance or providing financial guidance for future periods.