New York, NY, February 5, 2003 - Cendant Corporation (NYSE: CD) today
reported record fourth quarter 2002 Adjusted EPS from continuing operations of
$0.29, an increase of 38% year over year, in line with the Company’s projection.
Reported EPS from continuing operations was $0.24, up from a loss of ($0.33) last
year. Reported EPS from continuing operations in fourth quarter 2002 includes a
$0.06 per share non-cash charge to reserve for the Company’s estimated liability for
all remaining CUC-related securities litigation. As previously disclosed, the Company
also recognized a $0.03 per share D&O insurance recovery benefit in connection with
the settlement of CUC-related shareholder derivative actions. The Company also
affirmed that it expects reported EPS from continuing operations of $1.46 in 2003, an
increase of 40% over 2002.
Cendant’s Chairman, President and CEO, Henry R. Silverman, stated: “The diversity
and scale of our business model, which we use to manage risk, proved successful
again in the fourth quarter. Despite the continued challenging environment for travel
and corporate spending, the majority of our businesses performed at or ahead of plan,
enabling us to achieve record results.
“During the fourth quarter, we continued to deploy our free cash flow primarily to
strengthen our balance sheet. Exclusive of the approximately $600 million we
temporarily drew on our revolving credit facility to complete the Budget transaction,
we retired approximately $240 million in long-term debt and repurchased $79 million
in stock. We also renewed and upsized our revolving credit facility and, in January, we issued $2 billion in medium-term notes, which, along with our expected 2003 free
cash flow of approximately $2 billion, should give us significant financial flexibility to
continue to repay debt and repurchase stock. (Net cash provided by operating
activities exclusive of management and mortgage programs is projected to be at least
$2 billion.)
“I am also pleased to report that, for the full year 2002, we generated revenue growth
of 64%, including 3% organic growth, and Adjusted EBITDA growth of 32%,
including 11% organic growth. During the fourth quarter, our revenue growth was
54%, including 5% organic growth, and our Adjusted EBITDA growth was 22%,
including 16% organic growth.” See Table 10 for more information regarding our
organic growth.
For full details visit http://annualreport.cendant.com/quarterlyreports/2002q4/2002q4.pdf
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