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Diluted earnings per share were $0.16, excluding certain items, on GAAP net income of $4 million.
Company reaffirms its 2014 Adjusted EBITDA projections and raises its earnings per share estimate.
PARSIPPANY, N.J., May 7, 2014 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (Nasdaq:CAR) today reported results for its first quarter ended March 31, 2014. For the quarter, the Company reported revenue of $1.9 billion, a 10% increase compared with the prior-year first quarter. Adjusted EBITDA increased 26% to $117 million. The Company reported net income of $18 million, or $0.16 per share, excluding certain items, and GAAP net income of $4 million, or $0.03 per share.
"Our strong first quarter results were driven by volume growth and increases in both leisure and commercial pricing in North America," said Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer. "Our continued focus on growing in more profitable customer segments and channels continues to pay benefits; we completed two tuck-in acquisitions during the quarter that expand our global footprint; our acquisitions of Avis Europe, Zipcar, Apex and Payless all contributed to our improvement in earnings; and we returned $75 million in cash to shareholders through share repurchases."
The Company previously announced that it has expanded its share repurchase authorization by $235 million. This amount is in addition to the existing $200 million share repurchase program that the Company announced in August 2013, under which it has repurchased $125 million of stock through first quarter 2014.
Revenue increased 10% in first quarter 2014 compared to first quarter 2013 primarily due to a 6% increase in rental days and the acquisitions of Payless and Zipcar. Excluding those acquisitions and the effect of currency movements, revenue grew 7% and pricing in North America increased 2% year-over-year. First quarter Adjusted EBITDA increased 26% to $117 million, primarily due to higher rental volumes and increased year-over-year pricing in North America and despite a $9 million negative impact from movements in currency exchange rates.