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Avis Budget Group Reports First Quarter 2013 Results

The Company continues to expect to achieve annual synergies of $50 million to $70 million within the first two years of the acquisition.

Other Items

  • Convertible Debt Repurchases During the first quarter, the Company repurchased approximately $50 million principal amount of its outstanding 3.5% convertible senior notes due 2014, at a net cash cost of approximately $80 million. The repurchases reduced the Company's diluted shares outstanding by approximately 3 million shares.  
  • Debt Refinancing – In April, the Company completed an offering of $500 million of 5.5% senior notes due 2023. The Company used proceeds from the offering to purchase, at a premium, $325 million principal amount of its outstanding 9.625% senior notes due 2018 and $25 million principal amount of its outstanding 9.75% notes due 2020.   
  • European Vehicle-Backed Securitization In March, the Company entered into a three-year, €500 million (approximately $640 million) European rental fleet securitization program, providing the Company's subsidiaries in Germany, Italy and Spain increased capacity to finance its fleet. This program, which matures in March 2016, replaced the Company's previous €350 million European variable fleet financing facility at more attractive terms.   
  • Annual Stockholders Meeting The Company has scheduled its 2013 Annual Meeting of Stockholders for May 22, 2013 in Wilmington, Del. Stockholders of record as of the close of business on March 25, 2013 will be entitled to vote at the annual meeting.

Outlook

The Company today updated its estimates of its full-year 2013 results to include the acquisition of Zipcar.

The Company expects its full-year 2013 revenue to be approximately $7.8 billion to $8.0 billion, a 6% to 9% increase compared to 2012. The Company expects its Adjusted EBITDA to be approximately $750 million to $855 million, excluding certain items. The changes in the Company's expected 2013 revenue and Adjusted EBITDA are entirely due to the acquisition of Zipcar. 

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