Avis Budget Group 2009 Revenues Decrease, Yet Profit Loss Narrows
The company expects challenging macroeconomic climate in first half of 2010, will continue to experience lower volumes.
Avis Budget Group Inc. reported results for its fourth quarter and full year, which ended December 31, 2009. Avis reported full-year revenue of $5.1 billion and a pretax loss of $77 million, including $20 million of restructuring charges and $33 million of non-cash impairment charges.
For the fourth quarter, Avis reported revenue of $1.2 billion and a pretax loss of $88 million, including $5 million of restructuring charges and a $32 million non-cash impairment charge.
Excluding unusual items, Avis generated full-year EBITDA of $243 million and a pretax loss of $6 million, and fourth quarter EBITDA of $14 million and a pretax loss of $51 million.
"In the fourth quarter, we saw a continuation of trends from the third quarter, specifically, strong pricing, tepid demand, a healthy used-car market and rigorous cost control throughout our operations. This enabled us to post significant year-over-year improvement in earnings," said Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer. "Our decisions to remain tight-fleeted and further reduce unprofitable transactions helped us increase our Domestic Car Rental EBITDA by more than $80 million versus the prior-year quarter, despite lower revenues and lower rental volumes. Our ongoing cost reductions were also critical to our improved results.
"As we look into 2010, we expect year-over-year rental volume comparisons to improve over the course of the year, cost-saving initiatives to provide incremental benefits and the used car market to remain healthy. We also expect our per-unit fleet costs to decline year-over-year as we add more model-year 2010 vehicles to our fleet," Nelson said.
To read complete fourth quarter 2009 and full-year report, click here.
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