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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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FEBRUARY 25, 2003 (FEBRUARY 24, 2003)
(Date of Report (date of earliest event reported))
CENDANT CORPORATION
(Exact Name Of Registrant As Specified In Its Charter)
DELAWARE 1-10308 06-0918165
(State or other jurisdiction of (Commission File No.) (I.R.S. Employer
incorporation or organization) Identification No.)
9 West 57th Street 10019
New York, NY (Zip Code)
(Address of Principal Executive Offices)
(212) 413-1800
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
EXCEPT AS EXRESSLY INDICATED OR UNLESS THE CONTEXT OTHERWISE REQUIRES,
"CENDANT", "WE", "OUR", OR "US" MEANS CENDANT CORPORATION, A DELAWARE
CORPORATION, AND ITS SUBSIDIARIES.
On February 25, 2003, our Avis Group Holdings, Inc. subsidiary publicly
disclosed selected historical consolidated financial data.
A copy of such information is attached as Exhibit 99.1 to this Current
Report on Form 8-K and is incorporated by reference herein.
Additionally, on February 24, 2003, we announced several management
changes, effective March 1, 2003. John W. Chidsey, Chairman and CEO of our
Vehicle and Financial Services Divisions, has resigned to pursue
opportunities outside of Cendant. Mr. Chidsey will remain as a consultant to
Cendant through the second quarter of this year. Kevin M. Sheehan, our Chief
Financial Officer, will assume additional responsibility for our Vehicle
Services Division, which includes the Cendant Car Rental Group (Avis and
Budget), PHH Arval and Wright Express. Samuel L. Katz, our Chief Strategic
Officer and Chairman and CEO of our Travel Distribution Services Division
will assume additional responsibility for our Financial Services Division,
which includes Jackson Hewitt, Progeny and our relationship with Trilegiant.
A copy of our press release announcing such management changes is
attached as Exhibit 99.2 to this Current Report on Form 8-K and is
incorporated by reference herein.
Statements about future results made in this current report on Form 8-K,
including any projections, and the statements attached hereto 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. We caution 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 our Form 10-Q/A for the quarterly period ended September 30, 2002.
ITEM 7. EXHIBITS
See Exhibit Index.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CENDANT CORPORATION
By: /s/ TOBIA IPPOLITO
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Tobia Ippolito
Executive Vice President and
Chief Accounting Officer
Date: February 25, 2003
CENDANT CORPORATION
CURRENT REPORT ON FORM 8-K
REPORT DATED FEBRUARY 25, 2003 (FEBRUARY 24, 2003)
EXHIBIT INDEX
EXHIBIT
NO. DESCRIPTION
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99.1 Selected Historical Consolidated Financial Data of Avis Group
Holdings, Inc.
99.2 Press Release issued by Cendant Corporation dated
February 24, 2003
EXHIBIT 99.1
SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA OF AVIS GROUP HOLDINGS, INC.
The selected historical consolidated financial data for the year ended
December 31, 2002 has been derived from unaudited consolidated financial
information. The selected historical consolidated financial data for the
ten-month period ended December 31, 2001, the two-month period ended February
28, 2001 and each of the years ended December 31, 2001, 2000 and 1999 have
been derived from Avis' audited consolidated financial statements. You should
read this table in conjunction with Avis's Annual Report on Form 10-K for the
year ended December 31, 2001 and Quarterly Reports on Form 10-Q for the
quarterly periods ended March 31, June 30 and September 30, 2002. All dollar
amounts are in thousands.
AVIS GROUP HOLDINGS, INC.
SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA
(DOLLARS IN THOUSANDS)
PREDECESSOR COMPANIES (a)
----------------------------------------
MARCH 1, 2001 YEARS ENDED
(DATE OF -------------------------
YEAR COMBINED YEAR ACQUISITION) TWO MONTHS
ENDED ENDED TO ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, FEBRUARY 28, DECEMBER 31, DECEMBER 31,
2002 2001 (b) 2001 2001 2000 1999
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STATEMENTS OF OPERATIONS DATA:
Revenues $ 2,512,198 $ 2,387,780 $ 2,001,959 $ 385,821 $ 2,613,476 $ 2,500,746
Expenses 2,429,579 2,499,867 2,071,809 428,058 2,514,372 2,409,198
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Income (loss) before income taxes 82,619 (112,087) (69,850) (42,237) 99,104 91,548
Provision (benefit) for income taxes 30,982 (29,868) (14,085) (15,783) 42,740 40,345
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Income (loss) from continuing operations 51,637 (82,219) (55,765) (26,454) 56,364 51,203
Income from discontinued operations,
net of tax (c) -- 4,947 -- 4,947 64,312 41,382
Extraordinary gains, net of tax
809 -- -- -- -- --
Cumulative effect of accounting
change, net of tax -- (7,612) -- (7,612) -- --
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Net income (loss) $ 52,446 $ (84,884) $ (55,765) $ (29,119) $ 120,676 $ 92,585
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SELECTED OPERATING DATA:
Monthly average peak number of rental
vehicles during period 248,045 243,731 243,731 222,532 253,503 248,016
Number of rental transactions
during period (in thousands) 15,760 15,679 13,186 2,493 17,150 16,491
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2002 2001 2000 1999
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BALANCE SHEET DATA:
Vehicles, net (d) $ 4,173,847 $ 3,428,893 $ 3,717,530 $ 3,317,513
Total assets (e) (f) 6,797,643 6,538,083 6,520,006 6,446,668
Vehicle debt 4,245,703 3,771,341 3,816,682 3,387,520
Non-vehicle debt 534,231 588,259 730,333 1,567,902
Stockholders' equity 345,373 321,086 755,114 661,684
NOTES TO SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA
(a) On March 1, 2001 (Date of Acquisition) all the common stock of Avis not
then owned by Cendant was acquired by a wholly-owned subsidiary of
Cendant. The periods prior to the acquisition have been designated
"Predecessor Companies".
(b) Presented on a combined twelve-month basis and includes the results of
Avis and its consolidated subsidiaries for the period March 1, 2001 (Date
of Acquisition) to December 31, 2001 and the results of the Predecessor
Companies for the two months ended February 28, 2001.
(c) Represents the results of operations of the Avis former fleet management
and fuel card businesses.
(d) Includes rental vehicles and vehicles held for sale. Buses and support
vehicles were reclassified from this line item to the Property, Plant and
Equipment line item (not shown on the table) on the Consolidated Balance
Sheets during 2002 for all periods presented.
(e) Includes net deferred tax assets as of December 31, 2002, 2001 and 2000
of $481,335, $548,087 and $379,138, respectively.
(f) Includes net assets of discontinued operations as of December 31, 2000
and 1999 of $778,644 and $1,552,189, respectively.
EXHIBIT 99.2
CENDANT ANNOUNCES MANAGEMENT CHANGES
John W. Chidsey, Chairman & CEO Vehicle and Financial Services Divisions
Resigns to Pursue Opportunities Outside of Cendant
Kevin M. Sheehan, Chief Financial Officer to Assume Additional
Responsibility for Vehicle Services Division
Samuel L. Katz, Chief Strategic Officer, Chairman & CEO Travel Distribution
Services Division to Assume Additional Responsibility for
Financial Services Division
NEW YORK, NY, FEBRUARY 24, 2003 - Cendant Corporation (NYSE: CD)
today announced several management changes, effective March 1, 2003.
John W. Chidsey, chairman and CEO Vehicle and Financial Services
Divisions, has resigned to pursue opportunities outside of
Cendant. Mr. Chidsey will remain as a consultant to the
Company through the second quarter of this year.
Kevin M. Sheehan, chief financial officer, will assume additional
responsibility for the Vehicle Services Division, which includes the
Cendant Car Rental Group (Avis and Budget), PHH Arval and Wright
Express.
Samuel L. Katz, chief strategic officer; chairman and CEO Travel
Distribution Services Division, will take on additional
responsibility for the Financial Services Division, which includes
Jackson Hewitt, Progeny and our relationship with Trilegiant.
Cendant's Chairman, President and CEO, Henry R. Silverman, stated:
"Given our previously announced shift in strategic focus from
acquisitions to operations, Kevin Sheehan and Sam Katz are now able
to reallocate their time. Considering Kevin's previous role as
president of Avis, he is the perfect choice to manage Cendant's
Vehicle Services Division and spearhead the integration of Budget
within the Company's newly formed Car Rental Group. Freeing Sam up
from M&A will allow him to take on more operational responsibility
for our Financial Services Division."
CENDANT CORPORATION IS PRIMARILY A PROVIDER OF TRAVEL AND RESIDENTIAL
REAL ESTATE SERVICES. WITH APPROXIMATELY 90,000 EMPLOYEES, NEW YORK
CITY-BASED CENDANT PROVIDES THESE SERVICES TO BUSINESS AND CONSUMERS
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
877-4-INFOCD (877-446-3623).
CENDANT MEDIA CONTACT:
Elliot Bloom
212-413-1832
CENDANT INVESTOR CONTACTS:
Sam Levenson
212-413-1834
Henry A. Diamond
212-413-1920