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.
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.