Avis Budget Group Profits Up in Q3 2013

Avis Budget Group Inc. reported its third quarter 2013 worldwide revenue of $2.4 billion, a 10% increase compared to last year’s third quarter. This was primarily due to a 6% increase in rental days and the acquisition of Zipcar.

Excluding certain items, adjusted EBITDA increased 2% to $383 million, the highest quarterly total in the company's history. This was mainly due to increased earnings in Europe, which were partially offset by higher fleet prices in the U.S, says Avis.

Avis reported a net income of $171 million, excluding certain items, and a GAAP net income of $118 million.

"Our third quarter results reflect a combination of volume growth and solid pricing in North America, along with the strongest results in recent history in EMEA," said Ronald L. Nelson, Avis Budget Group chairman and chief executive officer. "In addition, vehicle residual values in North America remained stable throughout the third quarter, and we continued to make good progress in growing and delivering synergies in our Zipcar business."

Acquired by Avis in March, Zipcar contributed approximately $82 million to revenues and $8 million to Adjusted EBITDA in the third quarter, says Avis. As anticipated, per-unit fleet costs increased 15% year-over-year in North America due to a difficult comparison to third quarter 2012.

For its full-year 2013 revenue, the company expects to generate worldwide revenues of approximately $7.90 billion to $7.95 billion, a 7% to 8% increase compared to 2012. When it comes to adjusted EBITDA, Avis anticipates about $760 million to $780 million, excluding certain items.

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