Avis Budget Reports Record Q1 Results

Avis Budget Group Inc. today reported first-quarter revenue of $1.6 billion — a 31% increase compared with the prior-year first quarter. The company reported net income of $14 million, excluding certain items, and a GAAP net loss of $23 million due to debt extinguishment costs and acquisition-related charges. Results were consistent with preliminary estimates that Avis Budget published on May 1, the company reported.

For the quarter, the acquisition of Avis Europe contributed revenue of $327 million and an Adjusted EBITDA loss of $7 million, excluding certain items. Excluding Avis Europe, the company's revenue grew 5% in the first quarter and Adjusted EBITDA increased 52%, excluding certain items.

"We are pleased with our first quarter results, with organic revenue growth ahead of enplanement growth and Adjusted EBITDA reaching record levels, excluding certain items," said Ronald L. Nelson, Avis Budget Group chairman and CEO. "Travel demand across the majority of our markets remains healthy, and residual values of our vehicles in North America have proven to be significantly stronger than our original expectations.”

The first quarter revenue increase is primarily due to a 31% increase in rental days, a 3% decrease in pricing and a 43% increase in ancillary revenues, Avis Budget reported. Excluding Avis Europe, rental volume increased 6% and pricing declined 2%.


The company expects its full-year 2012 revenue to be approximately $7.3 billion to $7.6 billion, a 24% to 29% increase compared to 2011, its Adjusted EBITDA to be approximately $825 million to $875 million, excluding certain items, an increase of 35% to 43%, and that its pretax income will be approximately $460 million to $510 million, excluding certain items.

The company now expects that its North American fleet costs will decrease 3% to 8% on a per-unit basis in 2012 compared to the prior year. Consistent with its long-standing policy, the company has prospectively revised the depreciation rates on many of the vehicles in its North American car rental fleet to reflect the significantly stronger residual values it currently foresees.

The company continues to expect to reach a run-rate of more than $35 million of annual synergies from the acquisition of Avis Europe within the first twelve months following the acquisition.

Comment On This Story

Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.


Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Trends Moving the Truck Market

Storylines that emerged from the 2018 Work Truck Show include the increasing need for on-site productivity, inclusion of active safety systems in trucks, DPF frustrations affecting product decisions, data management, and the growing link between fleet management and company revenue.

MIT Study Reinforces the Newfound Importance of Fleet

Uber and Lyft drivers make far less when factoring vehicle expenses, though the actual numbers are now in dispute. A proper lifecycle cost analysis would’ve helped, and shows the benefit of collaboration with fleet professionals.

What a Connected Fleet Means to Avis (and Car Rental)

Counter bypass is just the beginning. The promise of a “data-driven ecosystem” that connects renters with the rental agency, retail services, and even the city is a better managed fleet, an improved user experience, and new revenue opportunities during the rental itself.

Job Finder: Access Top Talent. Fill Key Positions.