Avis Budget Hits $8.5B for Full-Year 2014 Revenue
Avis Budget Group has reported an increase in revenue year-over-year for both fourth quarter 2014 as well as the full-year 2014: $1.9 billion and $8.5 billion, respectively. In 2014, Avis had its highest total adjusted EBITA in company history at $876 million.

Photo via Atomic Taco/Flickr.

Photo via Atomic Taco/Flickr.
Avis Budget Group Inc. has reported revenue of $8.5 billion for full-year 2014, an increase of 7% compared to 2013, according to the company. The increase was driven by adjusted EBITA for 2014, which was the highest total in Avis Budget’s history: it rose 14% to $876 million. Net income had a 35% year-over-year increase and hit $327 million, or $2.96 per diluted share, says the company.
For its fourth quarter 2014, Avis reported revenue of $1.9 billion, a 2% increase compared to fourth quarter 2013. This is primarily due to a 6% increase in rental days and strong pricing in North America, says the company.
Excluding certain items, net income increased 53% to $25 million or $0.23 per share while adjusted EBITA increased 13% to $129 million in Q4 2014.
"We had a record year in 2014 as we saw incremental benefits from our key strategic initiatives and reported our second consecutive year of increased pricing in North America," said Ronald L. Nelson, Avis Budget Group chairman and chief executive officer. "We returned $300 million of cash to shareholders through share repurchases, reducing our diluted share count by 5%, while also making a number of strategic investments, including our purchase of our Budget licensee for Southern California and Las Vegas in the fourth quarter."
For North America, revenue increased 7% due to a 6% increase in volume, 1% higher pricing and a 5% increase in ancillary revenue per rental day in Q4, says the company. Primarily due to higher volume and pricing — and partially offset by a 4% increase in per-unit fleet costs — adjusted earnings in Q4 for North America increased 9%.
For 2015, Avis expects to reach worldwide revenue of $8.8 billion, approximately 4% higher compared to 2014, according to the company.
In North America, rental days are predicted to increase 5% to 7% in 2015. Per-unit fleet costs are expected to be approximately $320 to $330 per month in 2015, an increase of 2% to 5% from $313 in 2014, says the company. For total company fleet costs, Avis expects $305 to $315 per unit per month in 2015 — up 3% from 2014.
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