home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Cendant Reports Better Than Expected First Quarter 2001 Results
1Q Adjusted EPS of $0.19 Exceeds Projection by $0.03
Company Increases Full Year Projected 2001 Adjusted EPS to $1.00 Compared with


 $0.91 in 2000 and Increases 2001 Second Quarter Outlook to $0.27 from $0.26





               1Q Adjusted EPS $0.19 in 2001 vs. $0.22 in 2000


  1Q Reported EPS from Continuing Operations $0.28 in 2001 vs. $0.15 in 2000





    NEW YORK, April 18 /PRNewswire/ -- Cendant Corporation (NYSE: CD) today


reported better than expected first quarter 2001 results and increased its


outlook for second quarter and full year 2001.  The Company's four reportable


segments -- Real Estate Services, Hospitality, Vehicle Services and Financial


Services -- all exceeded or met forecasts for first quarter 2001, and each


exceeded last year's results.


    "We are pleased that we have exceeded our projections in the quarter and


are once again raising our projected results for the full year 2001.  Strong


contributions from many of our businesses and the addition of the operations


of Avis to our Vehicle Services segment drove the increase in our first


quarter EBITDA over prior projections and last year," said Cendant Chairman,


President and Chief Executive Officer, Henry R. Silverman.  "Despite a


challenging economic environment, we believe that the diversity of our


portfolio of companies, which is hedged against economic cycles, coupled with


our fee-for-services business model will continue to drive growth in revenue


and earnings in 2001."


    The Company announced that first quarter 2001 Adjusted earnings per share


from continuing operations (adjusted to remove non-recurring or unusual


items), excluding move.com operating results and the effect of an equity


ownership of Homestore.com ("Adjusted EPS") of $0.19 exceeded prior first


quarter 2001 projections of $0.16.  The Company also announced that based on


the leading indicators from its business units, the impact of lower interest


rates and using cash instead of shares to acquire Fairfield Resorts, it has


increased its second quarter 2001 Adjusted EPS projection to $0.27 from the


prior projection of $0.26 and its full year 2001 projection to $1.00 from the


prior projection of $0.95.  This compares with 2000 actual Adjusted EPS of


$0.91.  The Company anticipates that further improvements in existing


operations, benefits from recent acquisitions and other strategic activity may


result in further increases in projected earnings for 2001.


    The Company noted that 2001 Adjusted EPS is now projected to be 10% ahead


of last year, despite 2001 being burdened by an estimated $0.07 per share of


additional interest ($0.03 in the first quarter) resulting from the settlement


of the Company's principal class action litigation.  In addition, the prior


year's first quarter benefited from a previously disclosed $0.03 per share of


financial income derived from certain of the Company's investments.





    Recent Activities


    Consistent with its new growth agenda, the Company has completed several


strategic transactions:


    * Acquired the remaining shares of Avis Group Holdings not already owned


      for approximately $937 million in March 2001.  This transaction was


      immediately accretive to earnings.


    * Acquired Fairfield, the largest independent vacation ownership company


      in the United States, in April 2001 for approximately $690 million.


      This transaction is expected to be immediately accretive to earnings.


    * Acquired Holiday Cottages, a leading provider of holiday cottage rentals


      in Europe, in January 2001 and RCI Southern Africa, a timeshare exchange


      business, in March 2001.


    * Sold its full service real estate Internet portal, move.com, along with


      certain ancillary businesses, to Homestore.com for more than


      $700 million in February 2001.  The transaction resulted in an


      approximately 10 times return on Cendant's investment.  Cendant


      currently owns approximately 19% of the outstanding shares of


      Homestore.com.


    * Completed an agreement whereby Merrill Lynch outsourced its mortgage


      origination and servicing operations to Cendant Mortgage, effective


      January 2001.


    * Raised $1.5 billion through a common stock and senior zero coupon


      convertible notes offering in February 2001.





    First Quarter Segment Results


    The underlying discussion of results from continuing operations focuses on


Adjusted EBITDA, which is defined as earnings before non-operating interest,


income taxes, depreciation, amortization, minority interest and equity in


Homestore.com, adjusted to exclude certain items which are of a non-recurring


or unusual nature and are not measured in assessing segment performance or are


not segment specific.  Such discussion is the most informative representation


of how management evaluates performance and allocates resources.


    In connection with the significant acquisitions and dispositions of


businesses completed during 2001, we have realigned the operations and


management of our businesses.  Accordingly, we have changed our reportable


segments to coincide with this realignment.  Beginning with first quarter


2001, we have the following reportable operating segments:  Real Estate


Services (consisting of the Company's three real estate brands, mortgage and


relocation services); Hospitality (consisting of the Company's nine lodging


brands, timeshare, travel agency and cottage rental); Vehicle Services


(consisting of car rental, vehicle management services and National Car


Parks); and Financial Services (consisting of insurance related services,


financial services enhancement products and tax preparation services).


Additionally, Corporate and Other includes unallocated corporate overhead and


the operating results of certain other non-material business units, some of


which have been disposed.  All prior periods have been restated to reflect the


change in segments. (See Table 3 for first quarter 2001 and 2000 Revenues and


Adjusted EBITDA by Segment; Table 4 for Revenues and Adjusted EBITDA by


Segment for the quarters and full year of 2000; Table 5 for expanded first


quarter 2001 and 2000 Segment Revenue Driver Analysis and Table 6 for Segment


Revenue Driver Analysis for the quarters of 2000.)





    Real Estate Services


                                       2001            2000         % change


    Revenues                           $339            $289            17%


    Adjusted EBITDA                    $132            $114            16%


    Adjusted EBITDA Margin               39%             39%





    The increase in operating results was principally driven by a significant


increase in mortgage loan production, growth in our mortgage servicing


portfolio and increased relocation service based fees.  Recurring royalties


from real estate franchising were essentially unchanged despite soft


industry-wide conditions, particularly in California, due to growth in our


franchise systems as a result of franchise sales and NRT acquisitions.





    Hospitality


                                       2001            2000         % change


    Revenues                           $264            $242             9%


    Adjusted EBITDA                    $104             $91            14%


    Adjusted EBITDA Margin               39%             38%





    Revenues and Adjusted EBITDA increased primarily from our timeshare


operations and the January 2001 acquisition of Holiday Cottages.  Timeshare


revenues grew due to an increase in members and the number of exchange


transactions.





    Vehicle Services


                                       2001            2000        % change


    Revenues                           $454            $137          231%


    Adjusted EBITDA                     $93             $72           29%





    In March 2001, we acquired the remaining 82% of outstanding common shares


of Avis Group Holdings that we did not already own.  The acquisition was


accounted for as a purchase and, accordingly, its operating results are


included since the acquisition date.  Prior to the acquisition, revenue and


Adjusted EBITDA principally consisted of Avis royalties, earnings from our


equity investment in Avis and the operations of National Car Parks.





    Financial  Services


                                       2001            2000        % change


    Revenues                           $203            $194             5%


    Adjusted EBITDA                     $84             $82             2%


    Adjusted EBITDA Margin               41%             42%





    Revenue and Adjusted EBITDA reflect strong tax return volume growth at


Jackson Hewitt partially offset by modest declines at FISI/BCI due to reduced


direct mail offerings in prior periods and reduced billings and collections of


insurance premiums.





    2001 Outlook


    The Company raised full year 2001 projected Adjusted EPS to $1.00 compared


with most recent 2001 projections of $0.95 (and original 2001 projections of


$0.91) and compared with $0.91 for full year 2000. The raised outlook for 2001


reflects strong operating performance across our comparable business units, an


increased contribution from Avis in first quarter 2001, reduced interest


expense and lower projected weighted average shares outstanding. The Company


also raised second quarter 2001 projected Adjusted EPS to $0.27 compared with


$0.23 in second quarter 2000, and reiterated that Adjusted EPS in the third


and fourth quarters of 2001 are also projected to be higher than the


corresponding quarters in 2000.


    The Company revised its 2001 financial projections from continuing


operations, excluding the results of move.com/Homestore.com and including the


results of Avis and Fairfield, as follows:





    ($ in millions)


                                Current 2001        Prior 2001     2000 Annual


                                 Projection         Projection


    Adjusted EBITDA:


      Real Estate Services      $825 - $845              N/A          $752


      Hospitality               $535 - $550              N/A          $394


      Vehicle Services          $530 - $545              N/A          $306


      Financial Services        $210 - $220              N/A          $200


      Corporate and Other        ($45 - $55)             N/A          ($15)


    Total Adjusted EBITDA   $2,060 - $2,100  $2,015 - $2,060        $1,637


    Depreciation and


     Amortization               $450 - $460      $425 - $435          $324


    Interest Expense, net       $255 - $270      $335 - $350          $146


    Effective Tax Rate


     on Adjusted Results               35.2%            35.2%         34.0%


    Minority Interest                  $29               $31           $84


    Weighted Average Shares


    Outstanding (millions)       875 - 895         900 - 925           762


    Capital Expenditures       $275 - $325               N/A          $199





    The increase in net interest expense in 2001 compared with 2000 is


principally due to the Company's principal class action litigation settlement


obligation.  The Company expects year-over-year interest expense comparisons


to improve by fourth quarter 2001 as it discharges the liability and


anniversaries the expense recorded in the prior year.  The decrease in


projected interest expense compared with the prior projection is due to lower


corporate borrowing costs, including the February 2001 issuance of zero coupon


convertible notes.  The higher 2001 tax rate is principally a result of the


acquisition of Avis; however, the Company continues to examine ways to reduce


its 2001 effective tax rate.  Reduced minority interest in 2001 is primarily a


result of the retirement of the Feline PRIDES in February 2001.  The increase


in projected weighted average shares outstanding in 2001 compared with 2000 is


primarily the result of the issuance of 61 million shares of common stock in


connection with the retirement of Feline PRIDES and the issuance of 46 million


shares in February 2001. The increased projected capital spending and


depreciation and amortization in 2001 is primarily related to the acquisitions


of Avis and Fairfield, as well as Holiday Cottages and RCI Southern Africa.





    First Quarter Balance Sheet


    * As of March 31, 2001, we had approximately $2.2 billion of cash and cash


      equivalents and $4.7 billion of debt and minority interest. In


      February 2001, we issued zero coupon convertible senior notes for gross


      proceeds of $900 million.


    * As of March 31, 2001 the net debt to total capital ratio was 32%.  The


      ratio of Adjusted EBITDA, excluding move.com/Homestore.com, to net


      interest expense was 7.1 in first quarter 2001.


    * In first quarter 2001 we paid $250 million to a settlement trust,


      reducing the net outstanding obligation associated with the principal


      class action litigation settlement at March 31, 2001 to $2.25 billion.


    * Common shares outstanding increased in first quarter 2001 primarily from


      the issuance of 61 million shares in connection with the retirement of


      $1.7 billion of Feline PRIDES and the sale of 46 million shares in


      February 2001.





    First Quarter EPS Items


    Reported EPS for CD common stock includes Cendant Group operations and a


retained interest in Move.com Group. (See Table 2 for calculation of


earnings.) Reported EPS from continuing operations for Cendant Group was


$0.28 in first quarter 2001 and $0.15 in first quarter 2000. The following are


the significant items reflected in reported results from continuing operations


that are considered to be of an unusual or non-recurring nature for purposes


of deriving Adjusted EBITDA and Adjusted EPS:





    First Quarter 2001


    * A net gain of $435 million ($261 million after tax) on the disposition


      of businesses, primarily related to the sale of move.com.  Cendant


      Group's retained interest in the move.com after tax gain was


      $234 million or $0.28 per share.


    * A charge totaling $95 million ($62 million or $0.07 per share after tax)


      to fund a contribution to an independent technology trust responsible


      for providing technology initiatives for the benefit of current and


      future franchisees at Century 21, Coldwell Banker and ERA.


    * A charge totaling $85 million ($56 million or $0.07 per share after tax)


      incurred in conjunction with the development and launch of an Internet


      travel portal.  The Company's financial contribution to the independent


      entity developing the portal, which is required to be expensed


      immediately, is expected to provide attractive financial returns to


      Cendant and its franchisees with limited risk and to significantly


      expand the Internet presence of the Company's travel brands.


    * A net loss of $18 million after tax or $0.02 per share related to


      Cendant's proportionate ownership in Homestore.com.


    * A charge of $11 million ($7 million or $0.01 per share after tax) for


      litigation settlement and investigation costs, net of a credit for


      distributed Feline PRIDES Rights that expired unexercised.


    * Merger related charges totaling $8 million ($5 million or $0.01 per


      share after tax) related to the acquisition and integration of Avis.


    * A charge of $7 million ($5 million or $0.01 per share after tax) related


      to a special contribution made to a newly formed Cendant Charitable


      Foundation.





    First quarter 2000


    * A net credit of $38 million ($25 million or $0.03 per share after tax)


      for disallowed claims in connection with the Feline PRIDES class action


      litigation, net of investigation related costs.


    * Restructuring and other unusual charges totaling $86 million


      ($56 million or $0.07 per share after tax).


    * Charges totaling $13 million ($9 million or $0.01 per share after tax)


      for losses on the disposition of businesses.





    Investor Conference Call


    Cendant will host a conference call to discuss first quarter results on


Thursday, April 19, 2001 at 1:00 p.m. Eastern Time.  Investors may access this


call live at http://www.Cendant.com or dial in to 913-981-5571.  A web replay


will be available beginning at 4:00 p.m. Eastern Time on April 19, 2001 at


http://www.Cendant.com.  A telephone replay will be available from 4:00 p.m.


Eastern Time on April 19, 2001 until 8:00 p.m. on April 23 at 719-457-0820,


access code: 461306.





    Statements about future results made in this release constitute


forward-looking statements within the meaning of the Private Securities


Litigation Reform Act of 1995. These statements are based on current


expectations and the current economic environment. The Company cautions that


these statements are not guarantees of future performance. Actual results may


differ materially from those expressed or implied in the forward-looking


statements. Important assumptions and other important factors that could cause


actual results to differ materially from those in the forward-looking


statements are specified in the Company's Form 10-K for the year ended


December 31, 2000.


    Such forward-looking statements include projections.  Such projections


were not prepared in accordance with published guidelines of the American


Institute of Certified Public Accountants or the SEC regarding projections and


forecasts, nor have such projections been audited, examined or otherwise


reviewed by independent auditors of Cendant or its affiliates.  In addition,


such projections are based upon many estimates and are inherently subject to


significant economic and competitive uncertainties and contingencies, many of


which are beyond the control of management of Cendant and its affiliates.


Certain of such uncertainties and contingencies are specified in Cendant's


Form 10-K for the year ended December 31, 2000.  Accordingly, actual results


may be materially higher or lower than those projected.  The inclusion of such


projections herein should not be regarded as a representation by Cendant or


its affiliates that the projections will prove to be correct.





    Cendant Corporation is a diversified global provider of business and


consumer services primarily within the real estate and travel sectors. The


Company's fee-for-service businesses include hotel, real estate and tax


preparation franchising; rental cars, fleet leasing and fuel cards; mortgage


origination and employee relocation; customer loyalty programs; vacation


exchange and rental services and vacation interval sales.  Other business


units include the UK's largest private car park operator and electronic


reservations processing for the travel industry.  With headquarters in New


York City, the Company has approximately 60,000 employees and operates in over


100 countries.


    More information about Cendant, its companies, brands and current SEC


filings may be obtained by visiting the Company's Web site at


http://www.Cendant.com or by calling 877-4INFO-CD (877-446-3623).





    Table 1


                       Cendant Corporation and Subsidiaries


                        CONSOLIDATED STATEMENTS OF INCOME


                       (In millions, except per share data)








                                                        Three Months Ended


                                                              March 31,


                                                       2001              2000


    Revenues


      Service fees, net                                $893              $812


      Vehicle-related                                   398                70


      Other                                              12                63


    Net revenues                                      1,303               945





    Expenses


      Operating                                         433               338


      Marketing and reservation                         158               140


      Vehicle depreciation, lease charges


       and interest, net *                              181                --


      General and administrative                        135               107


      Non-vehicle depreciation and


       amortization                                      95                81


      Other charges (credits):


        Restructuring and other unusual


         charges                                        186                86


        Merger-related costs                              8                --


        Litigation settlement and related


         costs                                           11               (38)


      Non-vehicle interest, net                          57                25


    Total expenses                                    1,264               739





    Net gain (loss) on dispositions of


     businesses                                         435               (13)





    Income before income taxes, minority


     interest and equity in Homestore.com               474               193


    Provision for income taxes                          189                66


    Minority interest, net of tax                        13                16


    Equity in Homestore.com, net of tax                  18                --


    Income from continuing operations                   254               111


    Discontinued operations:


      Income from discontinued


       operations, net of tax                            --                16


      Gain on disposal of discontinued


       operations, net of tax                            23                --


    Income before extraordinary loss and


     cumulative effect of accounting change             277               127


    Extraordinary loss, net of tax                       --                (2)


    Income before cumulative effect of


     accounting change                                  277               125


    Cumulative effect of accounting


     change, net of tax                                 (38)              (56)


    Net income                                         $239               $69





    CD common stock income per share


      Basic


        Income from continuing operations             $0.29             $0.15


        Net income                                    $0.28             $0.10





      Diluted


        Income from continuing operations             $0.28             $0.15


        Net income                                    $0.26             $0.09





      Weighted average shares


        Basic                                           790               717


        Diluted                                         830               751





    Move.com common stock income per share


      Basic


        Income from continuing operations            $10.41


        Net income                                   $10.34





      Diluted


        Income from continuing operations            $10.13


        Net income                                   $10.07





      Weighted average shares


        Basic                                             2


        Diluted                                           3





    * Includes interest charges of $39 million for the three months ended


      March 31, 2001.





    Table 2


                     Cendant Corporation and Subsidiaries


    Supplemental Income (Loss) Per Share Data - Calculation of Earnings by


                            Class of Common Stock


                     (In millions, except per share data)





                                                     Three Months Ended


                                                        March 31, 2001


                                                     As                As


                                                  Reported          Adjusted





    CD common stock income per share


    Income from continuing operations:


      Income from continuing operations, including


       Cendant Group's retained interest


       in Move.com Group                             $233              $146


      Convertible debt interest, net of tax             3                 3


      Adjustment to Cendant Group's retained interest


       in Move.com Group (A)                           (6)               --


      Income from continuing operations


       - Diluted                                     $230              $149





    Net income:


      Net income, including Cendant Group's


       retained interest in Move.com Group           $218              $146


      Convertible debt interest, net of tax             3                 3


      Adjustment to Cendant Group's retained


       interest in Move.com Group (A)                  (6)               --


      Net income - Diluted                           $215              $149





    Weighted average shares outstanding:


      Basic                                           790               790


      Diluted                                         830               830





    Income per share:


      Basic


        Income from continuing operations           $0.29             $0.18 *


        Net income                                   0.28              0.18 *





      Diluted


        Income from continuing operations           $0.28             $0.18 *


        Net income                                   0.26              0.18 *





    Move.com common stock income (loss) per share


    Income (loss) from continuing operations (B):


      Income (loss) from continuing operations,


       excluding Cendant Group's retained


       interest in Move.com Group                     $21               $(1)


      Adjustment to Cendant Group's retained


       interest in Move.com Group (A)                   6                --


      Income from continuing operations - Diluted     $27               $(1)





    Net income (loss) (C):


      Net income (loss), excluding Cendant


       Group's retained interestin Move.com Group     $21               $(1)


      Adjustment to Cendant Group's retained


       interest in Move.com Group (A)                   6                --


      Net income - Diluted                            $27               $(1)





    Weighted average shares outstanding (D):


      Basic                                             2                 2


      Diluted                                           3                 3





    Income (loss) per share:


      Basic


        Income (loss) from continuing operations   $10.41            $(0.26)


        Net income (loss)                           10.34             (0.26)





      Diluted


        Income (loss) from continuing


         operations                                $10.13            $(0.25)


        Net income (loss)                           10.07             (0.25)





    *    Includes Cendant Group's retained interest in the adjusted results of


         operations of Move.com Group.


    (A)  Amount represents the differential between Cendant Group's retained


         interest in Move.com Group for its basic and diluted income (loss)


         per share calculations.


    (B)  In thousands, the As Reported and As Adjusted basic income (loss)


         from continuing operations attributable to Move.com common stock was


         $20,983 and ($525), respectively, and the As Reported and As Adjusted


         diluted income (loss) from continuing operations attributable to


         Move.com common stock was $27,086 and ($678), respectively.


    (C)  In thousands, the As Reported and As Adjusted basic net income (loss)


         attributable to Move.com common stock was $20,847 and ($525),


         respectively, and the As Reported and As Adjusted diluted net income


         (loss) attributable to Move.com common stock was $26,911 and ($678),


         respectively.


    (D)  In thousands, the As Reported and As Adjusted basic and diluted


         weighted average shares outstanding were 2,016 and 2,673,


         respectively.





    Table 3


                     Cendant Corporation and Subsidiaries


                  Revenues and Adjusted EBITDA by Segment *


                            (Dollars in millions)





                                       Three Months Ended March 31,





                                   Revenues          Adjusted EBITDA (A)


                                             %                           %


                                2001  2000 Change    2001     2000 (B)  Change


    Real Estate Services        $339  $289   17%     $132 (C)  $114      16%


    Hospitality                  264   242    9%      104       91 (F)   14%


    Vehicle Services             454   137  231%       93 (D)   72       29%


    Financial Services           203   194    5%       84       82        2%


    Total Reportable Segments  1,260   862            413      359


    Corporate and Other           43    83     **     (17)(E)    1 (G)    **


    Total Company             $1,303  $945           $396     $360





    *   In connection with significant acquisitions and dispositions of


        businesses completed in 2001, the Company realigned the operations and


        management of certain of its businesses.  Accordingly, the Company's


        segment reporting structure now encompasses the following four


        reportable segments:  Real Estate Services, Hospitality, Vehicle


        Services and Financial Services.





    **  Not meaningful.


    (A) Defined as earnings before non-operating interest, income taxes,


        depreciation and amortization, minority interest and equity in


        Homestore.com, adjusted to exclude certain items which are of a


        non-recurring or unusual nature and not measured in assessing segment


        performance or are not segment specific.


    (B) Excludes a charge of $86 million in connection with restructuring and


        other initiatives  ($63 million, $11 million and $2 million of


        charges were recorded within the Real Estate Services, Hospitality


        and Financial Services segments, respectively.  Charges of


        $10 million were recorded within businesses not classified by the


        Company as reportable operating segments).


    (C) Excludes a charge of $95 million to fund an irrevocable contribution


        to an independent technology trust responsible for providing


        technology initiatives for the benefit of current and future


        franchisees at Century 21, Coldwell Banker and ERA.


    (D) Excludes a charge of $4 million related to the acquisition and


        integration of Avis Group Holdings, Inc. ("Avis") and includes


        $5 million of interest expense related to debt used in the acquisition


        of Avis.


    (E) Excludes (i) a net gain of $435 million related to the dispositions


        of businesses and (ii) a credit of $14 million to reflect an


        adjustment to the settlement charge recorded in the fourth quarter of


        1998 for the PRIDES class action litigation primarily related to


        Rights that expired unexercised.  Such amounts were partially offset


        by charges of (i) $85 million incurred in connection with the


        creation of Travel Portal, Inc., a company that was created to pursue


        the development of an online travel business, (ii) $25 million for


        investigation-related costs, (iii) $7 million related to a


        contribution to the Cendant Charitable Foundation and (iv) $4 million


        related to the acquisition and integration of Avis.


    (F) Excludes $4 million of losses related to the dispositions of


        businesses.


    (G) Excludes a non-cash credit of $41 million in connection with a change


        to the original estimate of the number of Rights to be issued in


        connection with the PRIDES settlement resulting from unclaimed and


        uncontested Rights.  Such credit was partially offset by (i) $9


        million of losses related to the dispositions of businesses and (ii)


        $3 million of investigation-related costs.





    Table 4


                     Cendant Corporation and Subsidiaries


                2000 Revenues and Adjusted EBITDA by Segment *


                            (Dollars in millions)





                                            Year Ended December 31, 2000





                                                      Revenues


                                           1st   2nd     3rd  4th     Full


                                           Qtr   Qtr     Qtr  Qtr     Year


    Real Estate Services                  $289  $377    $419  $376  $1,461


    Hospitality                            242   257     278   236   1,013


    Vehicle Services                       137   135     146   150     568


    Financial Services                     194   153     148   143     638


    Total Reportable Segments              862   922     991   905   3,680


    Corporate and Other                     83    51      53    63     250


    Total Company                         $945  $973  $1,044  $968  $3,930





                     Cendant Corporation and Subsidiaries


                2000 Revenues and Adjusted EBITDA by Segment *


                            (Dollars in millions)





                                               Year Ended December 31, 2000





                                                     Adjusted EBITDA(A)


                                            1st    2nd    3rd    4th     Full


                                            Qtr    Qtr    Qtr    Qtr     Year


    Real Estate Services                   $114   $193   $242   $203     $752


    Hospitality                              91    103    115     85      394


    Vehicle Services                         72     67     81     86      306


    Financial Services                       82     42     42     34      200


    Total Reportable Segments               359    405    480    408    1,652


    Corporate and Other                       1    (45)   (36)   (29)    (109)


    Total Company                          $360   $360   $444   $379   $1,543





    (A) In connection with significant acquisitions and dispositions of


        businesses completed during 2001, the Company realigned the


        operations and management of certain of its businesses.


        Accordingly, the Company's segment reporting structure now


        encompasses the following four reportable segments:  Real Estate


        Services, Hospitality, Vehicle Services and Financial Services.


        Amounts are presented herein as if the 2001 segment reporting


        structure was applicable to 2000.





    Table 5


                     Cendant Corporation and Subsidiaries


                       Segment Revenue Driver Analysis


                        (Revenue dollars in thousands)





                                                 Three Months Ended March 31,


                                                2001          2000    % Change


    REAL ESTATE SERVICES SEGMENT





      Real Estate


        Closed Sides - Domestic (000's )       359,561       372,403      (3%)


        Average Price                         $171,865      $162,908       5%


        Royalty and Marketing Revenue         $103,370      $103,843       --


        Total Revenue                         $117,849      $120,744      (2%)





      Relocation


        Service Based Revenue (Referrals,


          Outsourcing, etc.)                   $61,174       $53,606      14%


        Asset Based Revenue (Corporate


         and Government Home Sale Closings


         and Financial Income)                 $41,916       $37,626      11%


         Total Revenue                        $103,090       $91,232      13%





      Mortgage


        Production Loans Sold (millions)        $5,916        $3,713      59%


        Production Revenue                     $87,153       $53,279      64%


        Average Servicing Loan Portfolio


         (millions)                            $83,275       $51,955      56%


        Servicing Revenue                      $31,403       $23,444      34%


        Total Revenue                         $118,823       $76,903      55%





    HOSPITALITY SEGMENT





      Lodging


        RevPar ($)                              $24.17        $24.12       --


        Weighted Average Rooms Available       508,685       501,160       2%


        Royalty, Marketing and


        Reservation Revenue                    $84,484       $83,494       1%


        Total Revenue                         $106,809      $105,643       1%





      RCI


        Average Subscriptions                2,562,682     2,336,574      10%


        Number of Timeshare Exchanges          506,590       468,692       8%


        Total Revenue                         $127,005      $115,516      10%





    VEHICLE SERVICES SEGMENT (A)





      Car Rental


        Rental Days (000's)                      5,395           n/a      n/a


        Time and Mileage Revenue per Day        $39.36           n/a      n/a


        Total Revenue                         $251,028           n/a      n/a





      Fleet


        Average Fleet (Leased)                 311,907           n/a      n/a


        Average Number of Cards (000's)          3,554           n/a      n/a


        Total Revenue                         $128,377           n/a      n/a





    FINANCIAL SERVICES SEGMENT





        Insurance/Wholesale-related


         Revenue                              $143,313      $144,551      (1%)


        Other Revenue                          $59,959       $49,538      21%


        Total Revenue                         $203,272      $194,089       5%





      (A)  On March 1, 2001 the Company acquired the remaining shares of Avis


           that were not owned by the Company.





    Table 6


                     Cendant Corporation and Subsidiaries


                     2000 Segment Revenue Driver Analysis


                        (Revenue dollars in thousands)





                                                Three Months Ended


                                    March 31,  June 30,   Sept. 30,  Dec. 31,


                                      2000       2000       2000       2000


    REAL ESTATE SERVICES SEGMENT





      Real Estate


        Closed Sides - Domestic


         (000's)                     372,403    503,921    518,652    465,072


        Average Price               $162,908   $172,594   $171,856   $172,061


        Royalty and Marketing


         Revenue                    $103,843   $144,092   $145,838   $129,682


        Total Revenue               $120,744   $165,683   $161,945   $144,306





      Relocation


        Service Based Revenue


         (Referrals, Outsourcing,


         etc.)                       $53,606    $66,803    $77,085    $70,046


        Asset Based Revenue


         (Corporate and


         Government Home Sale


         Closings and Financial


         Income)                     $37,626    $47,631    $49,583    $45,756


        Total Revenue                $91,232   $114,434   $126,668   $115,802





      Mortgage


        Production Loans Sold


         (millions)                   $3,713     $4,746     $6,754     $5,883


        Production Revenue           $53,279    $73,714   $107,798    $78,014


        Average Servicing Loan


         Portfolio (millions)        $51,955    $58,264    $64,298    $69,052


        Servicing Revenue            $23,444    $23,347    $24,355    $38,558


        Total Revenue                $76,903    $97,241   $132,330   $116,749





    HOSPITALITY SEGMENT





      Lodging


        RevPar ($)                    $24.12     $30.33     $35.17     $25.33


        Weighted Average Rooms


         Available                   501,160    501,929    504,648    506,240


        Royalty, Marketing and


         Reservation Revenue         $83,494   $106,397   $123,738    $89,240


        Total Revenue               $105,643   $129,899   $147,113   $110,659





      RCI


        Average Subscriptions      2,336,574  2,341,576  2,362,479  2,377,862


        Number of Timeshare


         Exchanges                   468,692    360,968    386,451    355,537


        Total Revenue               $115,516   $103,311   $107,697   $106,410





    FINANCIAL SERVICES SEGMENT





        Insurance/Wholesale-


         related Revenue            $144,551   $145,386   $144,921   $139,609


        Other Revenue                $49,538     $7,335     $3,040     $3,141


        Total Revenue               $194,089   $152,721   $147,961   $142,750





    Table 7


                     Cendant Corporation and Subsidiaries


                    CONSOLIDATED CONDENSED BALANCE SHEETS


                                (In billions)





                                                    March 31,     December 31,


                                                      2001              2000


    Assets


    Current assets


       Cash and cash equivalents                      $2.2              $1.0


       Other current assets                            2.4               1.4


    Total current assets                               4.6               2.4





    Property and equipment, net                        1.4               1.3


    Goodwill, net                                      4.8               3.0


    Other assets*                                      6.0               4.9


    Total assets exclusive of assets


     under programs                                   16.8              11.6





    Assets under management and mortgage programs     10.2               2.9


    Total assets                                     $27.0             $14.5





    Liabilities and stockholders' equity


    Current liabilities


      Current liabilities                             $2.7              $1.6


      Net liabilities of


       discontinued operations                         0.4               0.3


    Total current liabilities                          3.1               1.9





    Long-term debt                                     4.2               1.9


    Stockholder litigation settlement                  2.9               2.9


    Other noncurrent liabilities                       0.6               0.5


    Total liabilities exclusive of


     liabilities under programs                       10.8               7.2





    Liabilities under management and


     mortgage programs                                10.5               2.5


    Mandatorily redeemable preferred


     securities issued by subsidiaries                 0.4               2.1


    Total stockholders' equity                         5.3               2.7


    Total liabilities and stockholders' equity       $27.0             $14.5





    *  Includes stockholder litigation settlement trust of $607 million.
SOURCE Cendant Corporation
Web Site: http://www.cendant.com
hosted by USANow.net

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders