Dollar Rent A Car 2011 Annual Report Download - page 50

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o Gains on sales of vehicles in 2012 are expected to moderate significantly on both an aggregate dollar and per unit basis compared to vehicle
gains recorded in 2011. This decrease is the result of continued refinements of residual value assumptions to more closely align with
market conditions at the time of sale.
· Interest expense is expected to decline significantly on a year-over-year basis, primarily as a result of lower overall interest rates on the Company’s fleet
financing facilities as compared to the fixed rates on matured and maturing financing facilities, and the repayment of all of the Company’s corporate debt
in 2011. These decreases will be partially offset by higher rates on the New Revolving Credit Facility and the expected re-leveraging of the Canadian fleet.
Based on the above expectations, for the full year of 2012, the Company is targeting earnings per share (“EPS”) to be within a range of $4.60 to $5.20 per
diluted share, and Corporate Adjusted EBITDA to be within a range of $275 million to $300 million.
See below for the reconciliation of the Corporate Adjusted EBITDA:
Full Year
2012 2011 2010
(in millions)
Reconciliation of Pretax income to (forecasted) (actual) (actual)
Corporate Adjusted EBITDA
Pretax income $231 - $256 $ 261 $ 221
(Increase) decrease in fair value of derivatives (a) - (3) (29)
Non-vehicle interest expense 10 11 10
Non-vehicle depreciation 19 19 20
Amortization 7 7 7
Non-cash stock incentives 8 3 5
Long-lived asset impairment - - 1
Merger-related expenses (b) - 5 23
Corporate Adjusted EBITDA, excluding merger-related expenses $275 - $300 $ 303 $ 258
(a) No amounts were forecasted for 2012.
(b) Merger-related expenses include legal, litigation, advisory and other fees related to a potential merger transaction.
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