Avis Adds 10 Percent Revenue in Q1
Avis Budget Group Inc. has reported its first quarter 2014 revenue of $1.9 billion, a 10% increase compared to first quarter in 2013. This is primarily due to a 6% increase in rental days and the acquisitions of Payless and Zipcar.
Avis Budget Group Inc. has reported its first quarter 2014 revenue of $1.9 billion, a 10% increase compared to first quarter in 2013. This is primarily due to a 6% increase in rental days and the acquisitions of Payless and Zipcar, says the company.
Excluding certain items, Adjusted EBITDA increased 26% to $117 million — mainly due to higher rental volumes and increased year-over-year pricing in North America. And Avis Budget reported net income of $18 million and GAAP net income of $4 million, according to the company.
For the first quarter 2014, Zipcar contributed about $68 million in revenue and $5 million to Adjusted EBITDA, while Payless contributed $30 million to revenue and $6 million to Adjusted EBITDA, says Avis.
"Our strong first quarter results were driven by volume growth and increases in both leisure and commercial pricing in North America," said Ronald L. Nelson, Avis Budget Group chairman and chief executive officer. "Our continued focus on growing in more profitable customer segments and channels continues to pay benefits; we completed two tuck-in acquisitions during the quarter that expand our global footprint; our acquisitions of Avis Europe, Zipcar, Apex and Payless all contributed to our improvement in earnings; and we returned $75 million in cash to shareholders through share repurchases."
For its full-year 2014 revenue, Avis expects to generate worldwide revenue of approximately $8.4 billion to $8.6 billion, a 6% to 8% increase compared to 2013.
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