Avis Budget Group 2017 Results: Revenues Up, Adjusted Income Down

Avis Budget Group Inc. today reported results for its fourth quarter and year ended December 31, 2017. Revenue increased 7% in the fourth quarter to $2 billion and was $8.8 billion for the full year.

Photo via Raysonho/Wikimedia.
Photo via Raysonho/Wikimedia.

Net income for the fourth quarter came in at $220 million, including a one-time benefit of $213 million related to U.S. tax reform. Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) increased 16% to $140 million in the quarter.

Revenue growth of 7% in the fourth quarter was driven by a 7% increase in overall rental days and higher year-over-year local currency time and mileage revenue per day, the company reported.

Full-year net income increased to $361 million compared to $163 in 2016. However full-year net income adjusted to reflect the benefit from the Tax Act fell to $242 million compared to $273 million in 2016. Adjusted EBITDA of $735 million in 2017 was 12% lower than 2016’s $838 million.

Revenue growth for the full year was driven by a 5% increase in rental days, partially offset by a 2% reduction in local currency time and mileage revenue per day and lower ancillary revenue per day.

"Our fourth quarter results reflect the achievement of strong global volume growth, positive pricing in the Americas and the benefits from our relentless focus on costs," said Larry De Shon, Avis Budget Group president and CEO. "Looking forward, I believe we have substantial opportunities to leverage technology to both improve our customers' experience and drive efficiencies throughout our organization, and will continue to position ourselves to benefit from the evolving mobility landscape."

For 2018, the company expects revenues of $9.2 billion to $9.45 billion and adjusted net income between $240 million and $310 million. In late trading, shares of Avis Budget Group jumped 7.8% on a strong outlook, Seeking Alpha reported.

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

Market Forces Driving Car Rental in 2018

An analysis of the conference calls of Avis Budget Group and Hertz Global Holdings reveal trends and initiatives involving fleet right sizing, pricing, ancillary revenue opportunities, and renting to ride-hailing drivers.

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.

Job Finder: Access Top Talent. Fill Key Positions.