Enterprise Holdings Announces Fiscal 2011 Highlights and Inaugural Sustainability Report
CEO Andy Taylor: “Conservative and disciplined financial management is the key to Enterprise’s approach to corporate sustainability, which fully integrates our efforts to be responsible stewards from an economic, social and environmental perspective”
ST. LOUIS – Oct. 26, 2011 – Enterprise Holdings – which owns and operates the Alamo Rent A Car, Enterprise Rent-A-Car and National Car Rental brands – today provided highlights of its 2011 fiscal year, including its first-ever Corporate Sustainability Report.
Enterprise Holdings is the world’s largest and most comprehensive service provider, and the only investment-grade company in the U.S. car rental industry. For its fiscal year ended July 31, 2011, Enterprise Holdings posted a record $14.1 billion in worldwide revenues, up more than 12 percent from $12.6 billion in 2010, which likewise represented a 4 percent increase over fiscal 2009.
“Our strong balance sheet is a testament to our continued focus on customer service and costs, especially during tough economic times like these,” stated Chairman and Chief Executive Officer Andrew C. Taylor, whose family owns and operates Enterprise Holdings.
“Conservative and disciplined financial management is the key to Enterprise’s approach to corporate sustainability, which fully integrates our efforts to be responsible stewards from an economic, social and environmental perspective,” Taylor explained. “Our team works hard every day to manage our company for the long term, and we are very proud of our continued growth across all lines of business in both the home-city market and at the airport. And our customer service scores have never been higher.”
Financial and Operational Strengths
For more than 50 years, the Taylor family has put a significant portion of the company's cumulative earnings back into its privately held business – into building operations, serving customers and expanding the fleet. As a result of this ongoing reinvestment, the company by far has the lowest debt-to-equity ratio in the car rental industry. Such financial strength not only fosters new opportunities, but also offers Enterprise Holdings’ three-brand portfolio a distinct competitive advantage in the car rental and travel industries. For example, the company operates, through its regional subsidiaries, an extensive and one-of-a-kind network of more than 6,000 neighborhood and airport branch offices located within 15 miles of 90 percent of the U.S. population.
“Because we operate more than twice as many locations as our nearest competitor in the United States, we are ideally positioned to efficiently move vehicles from city to city, as well as back and forth between airports and nearby local offices,” Taylor noted. “As a result, our ability to quickly respond to demand fluctuations is unique and directly mitigates the historical volatility of airport car rental.”
Enterprise Holdings owns and operates more than 1.2 million cars and trucks, the largest fleet of rental and leased passenger vehicles in the world. “For the first time, our rental vehicles alone exceeded the one-million mark,” stated Taylor. “That kind of economy of scale – combined with our unparalleled network of branch offices – enables us to offer a ‘total transportation solution’ in thousands of communities from coast to coast.”
Enterprise Holdings’ “total transportation solution” includes local and airport car rental, WeCar by Enterprise programs, Enterprise Rideshare vanpooling programs, and affiliated business lines Enterprise Fleet Management, Enterprise Car Sales and Enterprise Commercial Truck rental.
Enterprise Holdings does not disclose specifics on its net income, but the company achieved record growth in profitability for the second fiscal year in a row. For instance, the company realized:
- Year-over-year revenue growth of 12.3 percent.
- End-of-fiscal-year rental fleet up nearly 10 percent – resulting in the daily rental fleet exceeding one million vehicles – and representing the second year in a row of double-digit fleet growth.
- Sales of more than 65,000 used vehicles directly to consumers through the company’s referral car sales division, now operating more than 135 car sales locations across the country.
- More than $2 billion in corporate travel revenues.
- Growth in total worldwide assets to $23.4 billion, an increase of $3.6 billion from a year ago.
Enterprise Holdings’ revenues for fiscal 2011 place it 15th among the largest private companies in the United States. The company’s annual revenues also place it near the top of the travel industry, exceeding many airlines and most cruise lines, hotels, tour operators and online travel agencies. Furthermore, if Enterprise Holdings were publicly traded, it would rank at number 174 on Fortune’s list of the 500 largest public companies in the U.S. In comparison, the next largest rental car company is ranked 315th on the Fortune list.
During fiscal 2011, Standard & Poor’s (S&P) Ratings Services maintained its “BBB+” long-term ratings for Enterprise Holdings. In addition, Moody's Investors Service raised the long-term rating of Enterprise Holdings to “Baa1.” In making the announcement, Moody’s recognized the company’s “formidable competitive and operating strengths,” and cited its “highly prudent and disciplined financial strategy.” In addition, Moody’s noted that Enterprise Holdings “is the strongest player in the off-airport market and holds the leading share position in the on-airport market. Moreover, its competitive position within the on-airport sector has strengthened with the successful integration of the National/Alamo brands following the 2007 acquisition.”
Other fiscal 2011 highlights include:
- 2010 North American airport car rental survey: For the second year in a row, three of the top four rankings went to the Enterprise Holdings portfolio of brands – Enterprise Rent-A-Car (ranking highest), National Car Rental (ranking second) and Alamo Rent A Car (ranking fourth). This marked the seventh year in a row that the Enterprise Rent-A-Car brand has led the car rental industry in the annual survey, which includes both leisure and business travelers in North America.
- Enterprise Rent-A-Car brand: A new marketing campaign – entitled “The Enterprise Way” – was launched, featuring Enterprise employees expressing the brand’s customer service focus, culture and heritage in their own words. BusinessWeek magazine again named Enterprise to its annual list of “Customer Service Champs.” Likewise, Market Metrix, LLC, a leading provider of customer and employee feedback and performance tools for the hospitality industry, continued to recognize the Enterprise brand as the leader in customer satisfaction in the car rental industry. Further, Enterprise won Budget Travel magazine’s 2011 Readers’ Choice Award as their favorite rental car brand for customer service around the globe.
- National Car Rental brand: Executive Travel magazine recognized National as the top rental car service in the travel industry, honoring the brand with its “Leading Edge Awards.” In addition, the Smarter Travel Editors’ Choice Award went to the Emerald Club again as the “Best Rental Car Loyalty Program.”
- Alamo Rent A Car brand: Alamo continued to operate as the largest car rental provider to international travelers visiting North America. A multi-year alliance with Walt Disney Parks and Resorts also was renewed, extending Alamo’s designation as the official rental car brand of the Walt Disney World® Resort in Orlando and Disneyland® Resort in California.
- Car-sharing and vanpooling programs: The WeCar by Enterprise program’s growth continued in municipalities and on corporate and college campuses in more than 26 states, with a diverse fleet including alternative-fuel vehicles such as the Toyota plug-in Prius. Enterprise Rideshare was expanded into a nationwide program, and is now offered throughout the country.
“The Business of Sustainability”
Enterprise Holdings’ public commitment to economic, social and environmental sustainability – already outlined on its www.DrivingFutures.com website – likewise has been documented in the company’s inaugural Corporate Sustainability Report covering fiscal 2011. Highlights include:
- 20/20 Vision Program: Hit the 4-percent target for energy usage reduction as part of the company’s five-year program, designed to reduce overall energy consumption by 20 percent in its network of branches.
- Enterprise Sustainable Construction Protocol (ESCP): Launched a new industry-leading effort to make all newly constructed and retrofitted rental locations sustainable during the next five years. Enterprise began investing more than $150 million in sustainable construction through the use of these new guidelines.
- Electric Vehicles: Took delivery of more than 150 full EVs, including more Nissan Leafs than any other rental operator. In addition, Enterprise was the first company to rent the plug-in hybrid electric Chevy Volt.
- 50 Million Tree Pledge: Funded the addition of one million trees to national forests in countries where Enterprise operates as part of its private/public/nonprofit partnership with the Arbor Day Foundation and the U.S. Forest Service.
- Electrification Coalition: Joined this nonpartisan, not-for-profit group of business leaders representing the entire value chain of the growing electric-vehicle industry.
- National Clean Fleets Partnership: Became a corporate member of this public-private partnership, which was established to help large companies reduce diesel and gasoline use in their fleets by incorporating electric vehicles, alternative fuels, and fuel-saving measures into their daily operations.
“We joined the Electrification Coalition and the National Clean Fleets Partnership because we offer affordable, accessible and flexible local car rental service in more towns and cities than anyone else,” Taylor stated. “That means we play an integral role in facilitating sustainable local transportation options, regardless of whether customers are looking to rent for an hour, a day, a week or longer. We also represent a hugely significant part of the value chain for bringing alternative-fueled vehicles to the mass market.”
Taylor noted the growing importance of these and other sustainability-related initiatives. “Many of our employees are interested in how our business touches the world,” he concluded. “And more and more of our customers, especially some of our biggest corporate clients, expect us to document and articulate our leadership role and commitment to delivering ‘shared value.’ So this is a responsibility we take seriously in every community and company we serve.”