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Avis Budget Group Reports First Quarter 2013 Results

  • Revenue increased 4% to $1.7 billion.
  • Pricing in North America increased 4% year-over-year.
  • Adjusted EBITDA declined 22% to $93 million, excluding certain items.
  • Company reported net income, excluding certain items, of $9 million in the seasonally slower first quarter, and a GAAP net loss of $46 million.
  • Company completed acquisition of Zipcar, the world's leading car sharing network.

PARSIPPANY, N.J., May 1, 2013 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (Nasdaq:CAR) today reported results for its first quarter ended March 31, 2013. For the quarter, the Company reported revenue of $1.7 billion, a 4% increase compared with the prior-year first quarter. Excluding certain items, Adjusted EBITDA declined 22% to $93 million. The Company 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.

As previously announced, the Company completed its acquisition of Zipcar, Inc., the world's leading car sharing network, on March 14, 2013. For the quarter ended March 31, 2013, the acquisition was immaterial to the Company'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 L. Nelson, Avis Budget Group Chairman and Chief Executive Officer. "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."

Executive Summary

Total Company revenue increased 4% in first quarter 2013 compared to first quarter 2012 primarily due to a 2% increase in rental days and a 2% increase in pricing. First quarter Adjusted EBITDA decreased 22% to $93 million, excluding certain items, primarily due to increased costs incurred in the Company's International, Truck Rental and Corporate & Other operations. Higher pricing and reduced vehicle-related interest expense largely offset increased fleet costs in North America.

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