Feed: Actual Travel News
Posted on: Thursday, May 02, 2013 00:53
Author: Actual Travel News
Subject: Avis Budget Reports Slightly Higher First Quarter Revenues, Lower EBITDA
Avis Budget Group, Inc., just two days after Hertz Corporation reported its first quarter results, revealed first quarter revenue of $1.7 billion, a 4 percent increase compared with the same period last year. Excluding certain items, however, adjusted EBITDA declined 22 percent to $93 million. Avis Budget reported net income of $9 million, excluding certain items, and a GAAP net loss of $46 million due to debt-extinguishment expenses, transaction-related charges and restructuring costs. Avis Budget earlier this year completed its acquisition of Zipcar, Inc., a leading car sharing network, on March 14, 2013. For the quarter ended March 31, 2013, the acquisition was immaterial to Avis Budget's results of operations, contributing approximately $14 million to revenues and $1 million to Adjusted EBITDA. "The first quarter progressed largely as we had anticipated, highlighted by strong year-over-year pricing trends in North America, which helped offset expected increases in fleet costs, and marked by challenging economic conditions in Europe," said Ronald Nelson, Avis Budget chairman and CEO. "Our acquisition of Zipcar is progressing as planned, and we are already implementing actions to capture the benefits we expect to realize from this transaction." Avis Budget total revenue increased 4 percent in first quarter 2013 compared to first quarter 2012 primarily due to a 2 percent increase in rental days and a 2 percent increase in pricing. First quarter adjusted EBITDA decreased 22 percent to $93 million, excluding certain items, primarily due to increased costs incurred in the company's international, truck rental and corporate and other operations. Higher pricing and reduced vehicle-related interest expense largely offset increased fleet costs in North America. Hertz had earlier reported first quarter 2013 worldwide revenues of $2.4 billion, an increase of 24.3 percent year-over-year. First quarter 2013 adjusted pre-tax income was $144.5 million, versus adjusted pre-tax income of $29.4 million in the same period in 2012. |
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