Avis Budget Group, Inc. reported results for its first quarter ended March 31, 2014, including revenue of $1.9 billion, a 10 percent increase compared with the prior-year first quarter. Adjusted EBITDA increased 26 percent to $117 million. The company reported net income of $18 million and GAAP net income of $4 million.
"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 CEO.
"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, Nelson said.
Revenue increased 10 percent in first quarter 2014 compared to first quarter 2013 primarily due to a 6 percent increase in rental days and the acquisitions of Payless and Zipcar. Excluding those acquisitions and the effect of currency movements, revenue grew 7 percent and pricing in North America increased 2 percent year-over-year. First quarter Adjusted EBITDA increased 26 percent 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.
Zipcar, acquired in March 2013, contributed approximately $68 million to revenue and $5 million to Adjusted EBITDA in the first quarter. Payless Car Rental, acquired by the company in July 2013, contributed $30 million to revenue and $6 million to Adjusted EBITDA in the first quarter.