Avis Budget Group, Inc.
(Avis Budget) provides car and truck rentals and ancillary services to
businesses and consumers in the United States and internationally. The
Company operates two of the brands in the global vehicle rental
through Avis and Budget. Avis is a rental car supplier to the
and leisure segments of the travel industry and Budget is a rental car
supplier to the price-conscious segments of the industry. The Company
in three business segments: Domestic Car Rental, consisting of its Avis
and Budget United States car rental operations; International Car
consisting of its international Avis and Budget car rental operations,
and truck rental, consisting of its Budget truck rental
Avis Budget Group Reports Fourth Quarter and Full-Year
Revenue declined 1% in the fourth quarter, to $1.9 billion.
Net loss was $31 million, and Adjusted EBITDA was $121 million in the
Diluted loss per share was $0.35, and adjusted diluted earnings per
share were $0.15 in the fourth quarter.
Full-year diluted earnings per share were $1.75, and adjusted diluted
earnings per share were $2.93.
Company repurchased $390 million of outstanding shares in 2016.
Company announces projected 2017 revenues and adjusted earnings.
PARSIPPANY, N.J., Feb. 15, 2017 (GLOBE NEWSWIRE) -- Avis Budget Group,
Inc. (NASDAQ:CAR) today reported results for its fourth quarter and
year ended December 31, 2016. For the quarter, the Company
reported revenue of $1.9 billion and a net loss of $31 million, or
$0.35 per share. The Company reported Adjusted EBITDA of $121
million and adjusted net income of $13 million, or $0.15 per diluted
share, in the quarter.
For the year, the Company reported revenue of $8.7 billion, an increase
of 2% compared with 2015. Net income was $163 million, or $1.75
per diluted share. The Company reported full-year Adjusted EBITDA
of $838 million and adjusted net income of $273 million, or $2.93 per
diluted share. The Company reported net cash provided by
operating activities of $2.6 billion and free cash flow of $472 million
As discussed further below, the Company's fourth quarter and full-year
Adjusted EBITDA exclude, among other adjustments, a charge of $26
million ($16 million, net of tax) related to a recent judgment against
the Company in a personal-injury trial.
"While our fourth quarter results reflect softer-than-expected volume
and pricing, as well as currency movements having a $7 million adverse
impact on Adjusted EBITDA compared to what we had anticipated, we are
enthusiastic about our prospects for 2017 and beyond," said Larry De
Shon, Avis Budget Group Chief Executive Officer. "Our strategic
initiatives are already beginning to deliver meaningful benefits, and
we continue to expect that our efforts will drive substantial long-term
Revenue declined 1% in fourth quarter 2016 primarily due to 1%
decreases in rental days and pricing in the Americas, as well as a 5%
decrease in International pricing. Our fourth quarter net loss
was $31 million, and Adjusted EBITDA was $121 million. Results
were impacted by lower pricing and higher per-unit fleet costs
Company-wide, partially offset by increased International volumes.
Full-year revenues totaled $8.7 billion, an increase of 2% compared to
the prior year. The increase was driven by a 3% increase in
rental days, partially offset by a 2% decline in pricing (comprised of
unchanged pricing in the Americas and a 5% decrease in
International). Full-year net income was $163 million, and
Adjusted EBITDA was $838 million. Results were impacted by higher
per-unit fleet costs, lower International pricing and a $28 million
negative impact from currency movements, partially offset by increased
Business Segment Discussion
The following discussion of fourth quarter operating results focuses on
revenue and Adjusted EBITDA for each of our segments. Revenue and
Adjusted EBITDA are expressed in millions.