Avis Budget Group Inc. has reported revenue of $1.9 billion for its first quarter 2015, a 1% decline compared first quarter 2014. This is primarily due to a 5% increase in rental days in the Americas, offset by an approximately $85 million negative impact from movements in currency exchange rates, says the company.
Excluding certain items, adjusted earnings (EBITDA) remained unchanged at $117 million, while net income was reported at $19 million or $0.17 per share.
For the Americas (North America, South America, Central America and the Caribbean), revenue increased 3% due to a 4% increase in ancillary revenue per rental day, according to Avis. Adjusted earnings remained unchanged — mainly due to increased volumes and a 1% decline in per-unit fleet costs, offset by a 2% decline in utilization (due to weather and increased legal costs).
"Our first quarter results were in line with our expectations, despite uneven economic conditions internationally as well as what we believe was industry-wide over-fleeting in North America," said Ronald L. Nelson, Avis Budget Group CEO and chairman. "Used-vehicle prices have been constructive, and we have right-sized our fleet and taken steps to reduce costs. Looking forward, as we move into the peak travel months, we expect travel demand and pricing to firm, and our full-year earnings projections remain unchanged."
For the full-year 2015, Avis expects to produce worldwide revenue of $8.8 billion, about a 4% increase compared to 2014, says the company. For 2015, Avis continues to target $1 billion, including an approximately $40 million negative impact from currency exchange rates.
In the Americas segment, Avis expects rental days to increase 5% to 7% and pricing to increase 1% to 2%, says the company. Per-unit fleet costs are expected to be $290 to $300 per month in 2015, compared to $305 in 2014.