Avis Budget Group Reports Third Quarter Results

  • Revenue increased 3% in the third quarter to $2.7 billion.
  • Net income was $209 million, and Adjusted EBITDA was $469 million.
  • Diluted earnings per share were $2.28, and adjusted diluted earnings per share were $2.47.
  • Company estimates that its 2016 Adjusted EBITDA and adjusted earnings per share will be at approximately the lower end of its prior projection.

PARSIPPANY, N.J., Nov. 02, 2016 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ:CAR) today reported results for its third quarter ended September 30, 2016.  For the quarter, the Company reported revenue of $2.7 billion, a Company record, and net income of $209 million, or $2.28 per share.  The Company reported record Adjusted EBITDA of $469 million and adjusted net income of $227 million, or $2.47 per share.  Earnings per share increased 29% year-over-year, and adjusted earnings per share increased 25% year-over-year.

"Our record third quarter results reflect continued strength in our pricing in the Americas and benefits from our initiatives to drive profitability, resulting in the highest quarterly Adjusted EBITDA margin in our Company's history," said Larry De Shon, Avis Budget Group Chief Executive Officer.  "Looking forward, pricing continues to be positive in the Americas, although demand is softer than expected both in the Americas and in Europe.  We have moved quickly to right-size our fleet to mitigate the impact and have revised our full-year 2016 outlook as a result."

Executive Summary Revenue increased 3% in the third quarter primarily due to a 2% increase in pricing in the Americas, as well as a 4% increase in International rental days.  Third quarter net income was $209 million, a 14% increase from a year earlier, and Adjusted EBITDA was $469 million, a 9% increase from a year earlier.  Results benefited from increased rental volumes Company-wide and increased pricing in the Americas, partially offset by higher per-unit fleet costs.

Business Segment Discussion The following discussion of third quarter operating results focuses on revenue and Adjusted EBITDA for each of our segments. Revenue and Adjusted EBITDA are expressed in millions.

Americas
    2016   2015 % change
Revenue   $ 1,821     $ 1,776   3 %
Adjusted EBITDA   $ 306     $ 279   10 %
                     

Revenue grew 3% primarily due to a 2% increase in pricing.  Rental days increased 2% in the quarter while average available fleet increased 1%, resulting in higher utilization.  Per-unit fleet costs increased 2%, to $310 per month.  Adjusted EBITDA increased 10% in the quarter to $306 million, due to higher pricing, higher volumes and efficiency initiatives, partially offset by higher per-unit fleet costs.

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