Avis Budget Expects Increased Revenues in Third Quarter

Avis Budget Group Inc. announced Oct. 7 that, based on preliminary data, it estimates that, for the third quarter ended Sept. 30, 2010, revenues increased year-over-year to approximately $1.5 billion; adjusted EBITDA excluding certain items increased to $210 to $220 million; pretax income excluding certain items increased to $145 to $155 million; and pretax income increased to $135 to $145 million.

The company also expects all three of its operating segments to report increases in revenue and adjusted EBITDA in the third quarter. The increase in revenue in the domestic car rental segment resulted, as expected, from an increase in rental days offset by a decline in time and mileage revenue per day, Avis Budget said.

"We expect that our third quarter results will show that vehicle rental demand has begun to strengthen, that our cost-saving initiatives have continued to produce meaningful benefits, and that those two trends have had a significant positive effect on our earnings," said Ronald L. Nelson, Avis Budget Group chairman and chief executive officer. "We are encouraged by recent trends in our business and by the substantial year-over-year increase in pretax income we expect to report in the third quarter."

The company, based on preliminary data, estimates that its cash balance as of Sept. 30, 2010 will be more than $600 million and that its corporate (non-vehicle-related) debt balance as of Sept. 30, 2010 will be approximately $2.1 billion.

Avis Budget Group plans to announce its third quarter results and host a conference call to discuss such results in early November.

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