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Avis
Budget Group, Inc.
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Full
name of Registrant
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Cendant
Corporation
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Former
Name if Applicable
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6
Sylvan Way
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Address
of Principal Executive Office (Street and
Number)
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Parsippany,
New Jersey 07054
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City,
State, Zip Code
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[
]
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(a)
The reasons described in reasonable detail in Part III of this
form could
not be eliminated without unreasonable effort or expense;
(b)
The subject annual report, semi-annual report, transition report
on Form
10-K, Form 20-F, 11-K, N-SAR, or portion thereof, will be filed
on or
before the 15th
calendar day following the prescribed due date; or the subject
quarterly
report or transition report on Form 10-Q, or portion thereof,
will be
filed on or before the 5th
calendar day following the prescribed due date; and
(c)
The accountant’s statement or other exhibit required by Rule 12b-25(c) has
been attached, if applicable.
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(1)
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Name
and telephone number of person to contact in regard to
this
notification:
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(2)
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Have
all periodic reports required under section 13 or 15(d)
of the Securities
Exchange Act of 1934 or Section 30 of the Investment
Company Act of 1940
during the preceding 12 months (or for such shorter)
period that the
registrant was required to file such reports) been filed? [
X
]
Yes [ ]
No
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(3)
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Is
it anticipated that any significant change in results
of operations from
the corresponding period for the last fiscal year will
be reflected by the
earnings statements to be included in the subject report
or portion
thereof?
[
X]
Yes [ ]
No
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▪
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The
results of Realogy, Wyndham Worldwide and Travelport
will now be presented
as discontinued operations and only the results for periods
(or portions
thereof) in which such companies were still a part of
Avis Budget Group
will be reflected in our financial statements as discontinued
operations.
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▪
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We
incurred separation costs in the third quarter of 2006
of $480 million,
which include debt restructuring costs, costs related
to incentive plan
adjustments and transaction costs.
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▪
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We
expect a loss from continuing operations of approximately
$461 million
before taxes.
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▪
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We
expect to record an after-tax loss of approximately $950
million related
to the sale of Travelport in the third
quarter.
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▪
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We
expect revenue and EBITDA for our Domestic Car Rental
segment to be $1,190
million and $57 million, respectively, versus revenue
and EBITDA of $1,169
million and $ 91 million, respectively, for third quarter
2005.
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▪
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We
expect revenue and EBITDA for our International Car Rental
segment to be
$222 million and $44 million, respectively, versus revenue
and EBITDA of
$192 million and $ 41 million, respectively, for third
quarter
2005.
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▪
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We
expect revenue and EBITDA for our Truck Rental segment
to be $141 million
and $20 million, respectively, versus revenue and EBITDA
of $169 million
and $ 41 million, respectively, for third quarter
2005.
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We
have completed our review of the PHH Accounting Matters
and are in the
process of finalizing the allocations, adjustments
and disclosures that
will be required to be reflected in the Form 10-Q.
We expect that such
matters will require a re-allocation among current
and former reporting
units of the goodwill associated with our 2001 acquisition
of Avis Group
Holdings (then parent of PHH’s fleet management and Wright Express fuel
card businesses) and a change to disaggregate two of the
businesses acquired for purposes of testing goodwill
impairment. Such
re-allocation and change in aggregation are expected
to result in a
restatement of the gain recorded upon the initial
public offering of
Wright Express and is also expected to result in
a prior period impairment
charge, which in turn is expected to result in a
restatement of the
impairment charge recorded upon the spin-off of PHH
in first quarter 2005.
In either case, any such changes will be reflected
principally in the
discontinued operations of Avis Budget and, with
respect to continuing
operations, are expected to decrease our aggregate
net income over the
period of 2001-2004 by an immaterial amount.
In
addition, we expect to record additional adjustments
to discontinued
operations over the period of 2001-2005 which are
expected to increase our
aggregate net income over that period (with a corresponding
offsetting
decrease to net income for periods prior to 2001).
Since
PHH has neither re-filed its prior financial statements
nor, to our
knowledge, completed its evaluation of all of the
PHH Accounting Matters,
there can be no assurance that we will not receive
additional information
from PHH that is inconsistent with the information
received to date, which
could cause the description of the items referred
to above to change.
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Avis
Budget Group, Inc.
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(Name
of Registrant as Specified in
Charter)
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By:
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/s/
John T. McClain
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John
T. McClain
Senior
Vice President and Chief Accounting Officer
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