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Zipcar Reports Fourth Quarter And Full Year 2012 Results

CAMBRIDGE, Mass., Feb. 15, 2013 (GLOBE NEWSWIRE) -- Zipcar, Inc. (Nasdaq:ZIP) ("Zipcar" or the "Company") , the world's leading car sharing network, today reported results for the fourth quarter and year ended December 31, 2012. On December 31, 2012, Zipcar and Avis Budget Group, Inc., a Delaware corporation ("Avis Budget"), and Millennium Acquisition Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of Avis Budget ("Merger Sub"), entered into an Agreement and Plan of Merger (the "Merger Agreement"), pursuant to which, on the terms and subject to the conditions set forth in the Merger Agreement, Avis Budget has agreed to acquire all of the outstanding shares of Zipcar for $12.25 per share in cash, without interest, and pursuant to which Merger Sub will be merged with and into Zipcar with Zipcar continuing as the surviving corporation and a wholly-owned subsidiary of Avis Budget (the "Merger"). The Merger Agreement was approved by the board of directors of both companies. As previously announced, the waiting period related to the Merger under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, expired on February 11, 2013. The closing of the transaction remains subject to other customary conditions, including approval by Zipcar shareholders and review by UK competition authorities, and 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.

Financial Highlights
  • Fourth quarter revenue increased 12% to $70.7 million compared to $62.9 million in the prior year period, despite the loss of potential revenue due to Hurricane Sandy of just over $1 million; full year revenue increased 15% to $278.9 million from $241.6 million in 2011
  • Total members grew 16% from the prior year period to over 777,000 at year end
  • Fourth quarter Adjusted EBITDA of $7.3 million compared to $5.9 million last year; full year Adjusted EBITDA of $17.2 million compared to $10.9 million in 2011
  • Fourth quarter US GAAP net income of $13.8 million, or $0.34 per diluted share, compared to $3.9 million, or $0.09 per diluted share in the prior year period; full year 2012 US GAAP net income of $14.7 million, or $0.35 per diluted share, versus a loss of $7.2 million, or ($0.24) per share, in 2011. Fourth quarter and full year 2012 net income include a non-cash net tax benefit of $10.9 million, or $0.27 per diluted share for the fourth quarter and $0.26 per diluted share for the full year 2012, primarily related to the release of valuation allowance against U.S. net deferred tax assets. Also included in the 2012 periods are costs related to the Merger Agreement of $0.8 million and costs associated with Hurricane Sandy of $1.0 million, partially offset by the positive impact from the sale of Zero Emission Vehicle (ZEV) Credits of $1.3 million for the fourth quarter, which had not been previously anticipated, and $3.0 million for the full year 2012.

Summary 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.  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 of the remaining revenue in both years at 16% of total revenue in 2012 and 14% of total revenue in 2011. 

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