Enterprise Says It Achieved Record Profit Gains, Strong Revenue Uptick
Though details regarding net income are not made available by the private company, Enterprise Holdings said late last week that the profit improvement it made in fiscal 2010 was an all-time high.
And with the smooth transition the Alamo Rent A Car and National Rental brands have made as well as the anchor Enterprise Rent-A-Car brand still enjoying healthy results, the parent company increased its global revenues by 4 percent year-over-year.
Looking at the 2010 fiscal term — which ended July 31 — Enterprises’ leadership credited “disciplined management and consistent focus on customer service and costs" for pushing healthy results.
Specifically, global revenues for the year came in at $12.6 billion, compared to $12.1 billion in fiscal 2009. Officials said they saw improvement in all areas.
“Like many other companies, we have fought through difficult economic conditions during the past several years,” shared Andrew Taylor, the company’s chairman and chief executive officer
“But thanks to our disciplined management and consistent focus on customer service and costs, we delivered strong results in fiscal 2010,” he added.
Enterprise also said that its balance sheet has been bolstered from its latest fiscal gains.
In fact, the long-term rating Enterprise was receiving from Standard & Poor’s Ratings Services was lifted from BBB to BBB+ in February. The company noted that S&P said this move “reflects Enterprise’s improved financial profile, with stronger credit ratios due to continued strong cash flow … and substantial debt reduction.”
Continuing on, the company noted how it has benefited from the Alamo and National brands smoothly integrating into the regional subsidiaries of Enterprise, as well as the how flagship Enterprise Rent-A-Car’s robust results have served it well, too.
The Alamo and National brands were bought in 2007.
“Our 2007 acquisition continues to pay off long-term, and the seamless integration of all three car rental brands is providing positive momentum as we move into fiscal 2011,” Taylor commented.
Among other details the company shared, Enterprise enjoyed a $1.88 billion uptick in the net book value of revenue equipment (vehicles).
Moreover, it slashed debt by $305 million and total expenses fell 6.8 percent from the previous year. Fleet growth averaged 3 percent. When the year drew to a close, rental fleet had made an 11-percent improvement, which marked the greatest growth ever. Furthermore, Enterprise’s referral car division moved over 61,000 used units in fiscal 2010.
Additionally, global assets jumped $800 million year-over-year to $19.8 billion.