Avis Budget Group Inc. has reported its fourth quarter 2013 revenue of $1.8 billion, a 9% increase compared to the fourth quarter in 2012. This was primarily due to a 6% increase in rental days and the acquisition of Zipcar.
Excluding certain items, Adjusted EBITDA increased 46% to $114 million — with increased earnings in the North American segment. Primarily due to restructuring costs in Europe, Avis reported a GAAP net loss of $28 million in the traditionally slower fourth quarter.
For the year, Avis reported revenue of $7.9 billion, an increase of 8% compared with 2012. Excluding certain items, Adjusted EBITDA decreased 8% to $769 million — the second-highest total in the company’s history. In addition, Avis reported a net income of $256 million and a GAAP net income of $16 million.
"We had a strong year as we continued to realize the benefits of our long-term strategic plan,” said Ronald L. Nelson, Avis Budget Group chairman and chief executive officer. “Our initiatives to accelerate growth in higher-profit customer segments and channels drove both strong volume and positive pricing. We also made a number of investments that not only expanded our global footprint, but also positioned us to benefit from faster-growing markets, highlighted by our acquisition of Zipcar."
"We capped the year by delivering a 46% increase in Adjusted EBITDA in the fourth quarter, reflecting strong revenue growth and margin expansion, while continuing to return cash to shareholders through share repurchases," adds Nelson.
Acquired by Avis in March 2013, Zipcar contributed approximately $74 million to revenue and $11 million to Adjusted EBITDA in the fourth quarter. For the full year, Zipcar contributed approximately $246 million to revenue and $25 million to Adjusted EBITDA, excluding certain items, according to Avis. Zipcar entered six new metropolitan markets in 2013.
Payless Car Rental, acquired by Avis in July 2013, contributed $21 million to revenue in the fourth quarter and $44 million to revenue for the full year, says Avis.
For its full-year 2014 revenue, Avis expects to generate worldwide revenue of approximately $8.3 billion to $8.5 billion, a 5% to 7% increase compared to 2013. When it comes to adjusted EBITDA, Avis anticipates about $825 million to $900 million, excluding certain ítems.