Avis Budget Group Reports Record Results

Avis Budget Group, Inc. reported results for its second quarter ended June 30, 2012 including revenue of $1.9 billion, a 32 percent increase compared with the prior-year second quarter. Excluding certain items, adjusted EBITDA increased 39 percent to $266 million. The company reported net income of $112 million. GAAP net income of $79 million was impacted by debt extinguishment costs and acquisition-related charges, the group said.

The group also said it completed its acquisition of Avis Europe plc on October 3, 2011. For the quarter ended June 30, 2012, the acquisition of Avis Europe contributed revenue of $417 million and adjusted EBITDA of $46 million, excluding certain items. Excluding Avis Europe, the company's revenue grew 3 percent in the second quarter and Adjusted EBITDA increased 15 percent, excluding certain items.

"Our second quarter results reflected rental volume increases across all regions, organic earnings growth, a significant contribution from the Avis Europe acquisition and continued margin expansion," said Ronald L. Nelson, Avis Budget Group chairman and chief executive officer.

"Looking ahead, our summer reservation trends have been positive throughout the world, the effects of a weak economy in Europe appear manageable thus far, and the integration of Avis Europe is progressing as expected, giving us added confidence in our ability to achieve a run-rate of more than $35 million in annual synergy benefits by the fourth quarter," Nelson said.

Revenue increased 32 percent in the second quarter 2012 compared to second quarter 2011 primarily due to a 34 percent increase in rental days, a 3 percent decrease in average daily rate and a 43 percent increase in ancillary revenues. Excluding Avis Europe, volume increased 5 percent and pricing declined 3 percent.

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