Avis Budget Group closes strong year with fourth quarter growth

Avis Budget Group closes strong year with fourth quarter growth

Avis Budget Group has reported revenue of $1.9 billion for the fourth quarter, a two per cent increase compared with the prior-year fourth quarter.

Adjusted EBITDA increased 13 per cent to $129 million.

The company reported net income of $25 million for the period, or $0.23 per share, an increase of 53 per cent, excluding certain items, and GAAP net income of $23 million, or $0.21 per share.

For the year, the company reported revenue of $8.5 billion, an increase of seven per cent compared with 2013.

Adjusted EBITDA increased 14 per cent to $876 million, the highest total in the company’s history.

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Net income was $327 million, or $2.96 per diluted share, representing a 35 per cent year-over-year increase, excluding certain items.

The company reported GAAP net income of $245 million.

“We had a record year in 2014 as we saw incremental benefits from our key strategic initiatives, and reported our second consecutive year of increased pricing in North America,” said Ronald Nelson, Avis Budget Group chairman.

“We returned $300 million of cash to shareholders through share repurchases, reducing our diluted share count by five per cent, while also making a number of strategic investments, including our purchase of our Budget licensee for Southern California and Las Vegas in the fourth quarter.”

Revenue increased two per cent in fourth quarter 2014 compared to fourth quarter 2013 primarily due to a six per cent increase in rental days and increased pricing in North America, partially offset by movements in currency exchange rates.

Fourth quarter Adjusted EBITDA increased 13 per cent to $129 million, primarily due to higher rental volumes and increased year-over-year pricing in North America, partially offset by higher fleet costs.