Avis Budget Group today reported results for its fourth quarter and full year ended Dec. 31, 2018. Revenues grew 2% to $2.1 billion in the fourth quarter and 3% for the full year to $9.1 billion.
Americas per-unit fleet costs were 7% lower for both the quarter and the year excluding exchange rate effects.
Net income was $13 million ($0.16 diluted earnings per share) in the quarter and $165 million ($2.06 diluted earnings per share) for the year. Adjusted EBITDA was $142 million in the fourth quarter and $781 million in the full year.
Adjusted diluted earnings per share increased 18% to $0.53 in the quarter and 28% to $3.65 for the year.
“The company had a very successful 2018, expanding margin and reporting our ninth consecutive year of revenue growth,” Larry De Shon, Avis Budget Group President and CEO, said in a statement. "We ended the year strong, reporting record fourth quarter adjusted EBITDA and adjusted earnings per share, driven by a more than 2% increase in Americas pricing and substantially lower overall per-unit fleet costs.”
“Looking forward, we are investing in our future and leveraging innovation to build on our position as a leading global provider of mobility solutions, while also focusing on improving our profitability today,” said De Shon.
Revenue grew 2% in the quarter, driven by a 3% increase in volume, partially offset by $32 million (2%) effect from currency exchange movements. A strong increase in Americas pricing was offset by a lower International performance.
The Company delivered a 6% improvement in overall per-unit fleet costs in the quarter.
For the quarter, net income was $13 million, the prior year benefiting from the 2017 Tax Act. Adjusted EBITDA increased 1% to a record $142 million and increased 4% excluding exchange rate effects. Adjusted net income grew 8% to $41 million, or $0.53 per diluted share, an 18% increase.
Revenue in the Americas reached $1.4 billion by year's end. Revenues in the quarter improved 2% over the prior year with both higher commercial and leisure pricing.
Per-unit fleet costs were 7% lower driven by a strong used car market and a fourth quarter record number of cars sold through alternative disposition channels. Adjusted EBITDA increased 15% to a fourth quarter record $123 million and margin expanded by 100 basis points.
Revenue growth in the quarter was driven by higher volume, partially offset by pressure on pricing and a $28 million (4%) impact from currency exchange. Per-unit fleet costs were unchanged in the quarter and utilization improved by 40 basis points.
Adjusted EBITDA was $35 million for the quarter, with increased volume, strong cost controls, and the increased utilization offset by lower pricing and $3 million impact from currency exchange movements.
The company today provided its 2019 guidance ($ millions):
- Revenues: $9,200 - $9,500
- Adjusted EBITDA: $750 - $850
- Adjusted pretax income: $350 - $450
- Adjusted net income: $260 - $320
- Adjusted diluted earnings per share: $3.35 - $4.20
- Adjusted free cash flow: $250 - $300