Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from John Healy – North Coast Research.
John Healy – North Coast Research
I wanted to ask a little about fleet heading into 2010. It seems that demand remains low and I was hoping you could provide a little bit of color regarding how you’re thinking about increasing the fleet and maybe your negotiations for buys going into 2010 and if we were to assume that volumes could grow 2% to 3% next year how you would move the fleet accordingly.
Ronald Nelson
I think our strategy for managing the fleet will continue to be what we’ve done throughout 2009 and by that I mean, keeping the fleet very much in line with demand levels and in the process continuing to have utilization relatively constant on a year over year basis.
John Healy – North Coast Research
So you do negotiate with the OEM’s, do you have more or less flexibility compared to 2009 to kind of change your fleet levels as you see demand come on?
Robert Salerno
We actually have quite a bit of flexibility going across next year. We’ve been very pleased with the negotiations we had with the OEM’s and we think there’s a potential for more cars if we want them and we think there’s a potential to move the fleet around as we need to across the year. So as I said, we feel very good about it.
John Healy – North Coast Research
I might have missed this when you went through the prepared remarks, but did you mention what the gain on position of vehicles was during the quarter?
David Wysher
We didn’t but I can give that to you. In total our gains and losses on vehicles dispositions net of any disposition costs was a gain of $29 million and about 80% of that was in domestic car rental. The remainder was in international.
John Healy – North Coast Research
A big picture question, I know you did the convert transaction, but as you look at having enough enhancement for 2010 time frame, as you elect 2011 and 2012 maturities, how do you feel about the liquidity that you have at the corporate level today? Do you think we’re in a scenario now where enhancement to fund growth in the fleet, is that cash or is that equity comes from what you’re able to generate in terms of the core business or do you see yourself maybe tapping the capital markets again in the future for any other types of transactions. I’m just trying to get your thoughts around how we should think about funding enhancements going forward.
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