Avis Adds 10 Percent Revenue in Q1

Avis Budget Group Inc. has reported its first quarter 2014 revenue of $1.9 billion, a 10% increase compared to first quarter in 2013. This is primarily due to a 6% increase in rental days and the acquisitions of Payless and Zipcar, says the company.

Excluding certain items, Adjusted EBITDA increased 26% to $117 million — mainly due to higher rental volumes and increased year-over-year pricing in North America. And Avis Budget reported net income of $18 million and GAAP net income of $4 million, according to the company.

For the first quarter 2014, Zipcar contributed about $68 million in revenue and $5 million to Adjusted EBITDA, while Payless contributed $30 million to revenue and $6 million to Adjusted EBITDA, says Avis.

"Our strong first quarter results were driven by volume growth and increases in both leisure and commercial pricing in North America," said Ronald L. Nelson, Avis Budget Group chairman and chief executive officer. "Our continued focus on growing in more profitable customer segments and channels continues to pay benefits; we completed two tuck-in acquisitions during the quarter that expand our global footprint; our acquisitions of Avis Europe, Zipcar, Apex and Payless all contributed to our improvement in earnings; and we returned $75 million in cash to shareholders through share repurchases."

For its full-year 2014 revenue, Avis expects to generate worldwide revenue of approximately $8.4 billion to $8.6 billion, a 6% to 8% increase compared to 2013.

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

Why Do We Visit Capitol Hill?

Members of the American Car Rental Association met with U.S. senators, representatives, and their aides last week. Here’s why bringing the message to this forum matters.

The Customer Isn’t Always Right

Not caving to a customer with a blatant agenda may have consequences, especially for a small rental company that relies on stellar Yelp ratings to advertise. But business integrity must prevail.

The Truth Behind Compact Van Depreciation

Why are large van values holding up better than their compact counterparts, and will it last?

Job Finder: Access Top Talent. Fill Key Positions.