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Zipcar Expects Full-Year Profits for 2012 after Strong Third Quarter

In releasing results for the third quarter, which saw a revenue increase of 15% compared to the same time last year, Zipcar said it expects its 2012 full-year U.S. GAAP net income to range from $1 million to $4 million.

by Staff
November 9, 2012
3 min to read


Zipcar Inc. reported Nov. 8 results for the third quarter that ended Sept. 30, 2012. The company’s revenue increased by 15% to $78.2 million compared to $68.1 million in the prior-year period.

Third quarter U.S. GAAP net income increased to $4.3 million for the quarter, which includes the positive impact of $1.7 million from the sale of Zero Emission Vehicle (ZEV) credits, compared to a net income of $651,000 in the prior-year period.

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According to Zipcar, the growth resulted primarily from an 18% increase in membership to more than 767,000 members at the quarter’s end.

Adjusted EBITDA for the 2012 third quarter increased to $6.5 million, which excludes the aforementioned $1.7 million in ZEV credits, compared to $4.6 million in the prior-year period as a result of revenue growth and operating leverage.

In Zipcar's Established Markets — Boston, New York, Washington, D.C. and San Francisco — 2012 third quarter revenue grew 15% to $45 million, compared to $39.3 million in the prior-year period. Income before tax for those markets increased to 29% of revenue in the third quarter of 2012 compared to 23% in the same quarter last year.

Usage revenue per vehicle, per day was unchanged at $65. Usage revenue increased to $66.9 million in the third quarter of 2012, compared to $58.8 million during the same time last year, with fee revenue representing substantially all the remaining revenue in both periods.

Fee revenue represented 14.3% of total revenue in the 2012 third quarter compared to 13.6% in the prior-year period.

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"With our strong results in the quarter, we have raised our full-year guidance and we are on track to deliver 2012 as Zipcar's first full year of profitability on a U.S. GAAP basis,” said Scott Griffith, Zipcar chairman and CEO. “This is an exciting milestone for our company. We expanded our global leadership position by integrating our operations in Barcelona and by acquiring a leading car sharing provider in Austria.

“Additionally, we have strengthened our technology edge with the successful launch of a new platform and have enhanced both our membership marketing programs and offerings, including a further rollout of our Zipvan cargo van service that is expected to be available in all of our major North American markets in 2013.”

Outlook

As a result of the increase, Zipcar said it expects revenue for the fourth quarter to be in the range of $67 million and $71 million. U.S. GAAP net income for the last quarter of the year is expected to range from break-even to $3 million.

For the full-year 2012 results, revenue is expected in the range of $275 million to $279 million and U.S. GAAP net income is expected to range from $1 million to $4 million. According to Zipcar, this guidance incorporates the estimated impact from Hurricane Sandy with respect to lost revenue, vehicle damage and increased operating costs.



See financial results from other public car rental companies here.

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