Record second quarter revenues of $2.3 billion, including the negative impact of $46 million, or 2%, from currency exchange rate movements.
Net income increased to $62 million, a $36 million increase from prior year, for diluted earnings of $0.81 per share
Avis Budget Group, Inc. (NASDAQ: CAR) today reported results for its second quarter ended June 30, 2019.
Second Quarter Highlights:
Record second quarter revenues of $2.3 billion, including the negative impact of $46 million, or 2%, from currency exchange rate movements
Net income increased to $62 million, a $36 million increase from prior year, for diluted earnings of $0.81 per share
Adjusted EBITDA increased to $175 million, up 9% from prior year
Adjusted diluted earnings of $0.79 per share increased by 39%
Reaffirm projected full-year 2019 guidance
Increased share repurchase authorization by $100 million to a total of $250 million, or 9% of shares outstanding
“In the second quarter, we achieved record revenues and improved our Adjusted EBITDA margin by 90 basis points in constant currency. We also achieved record Net Promoter Scores in both the Americas and International regions,” said Larry De Shon, Avis Budget Group President and Chief Executive Officer. “Our earnings were driven by a continued focus on more profitable rentals as evidenced by our eighth consecutive quarter of increased leisure pricing in the Americas, and our ability to capitalize on a strong residual fleet environment.”
“We are executing on our strategic initiatives and are seeing meaningful benefits from our partnerships with Lyft, Via, Fetch, Waymo, and Otonomo. We are also pleased to announce our new partnership with Uber to expand our ride-hail fleet initiative. These initiatives continue to provide opportunities within the mobility industry for our customers while improving profitability and maintaining our position as a global leader in mobility solution.
Americas
Revenues in the quarter were up 2% compared to the prior year due to a 2% increase in Rental Days and a 1% increase in Revenue per Day. Per-Unit Fleet Costs decreased by 10% as we continue to utilize alternative disposition channels to take advantage of strong residual values. Adjusted EBITDA increased to $152 million and margin expanded to 9.3%.
Joe Ferraro, President, Americas commented, “Our record revenues along with our growing alternative channel dispositions expanded our Adjusted EBITDA margins over 250 basis points from the prior year.”
International
Revenues in the quarter were 4% lower driven by a 6% impact from currency exchange movements. Rental Days increased 3%, partially offset by a 1% decrease in Revenue per Day, excluding exchange rate effects. Per-Unit Fleet Costs were flat in the quarter, excluding exchange rate effects, while utilization improved 60 basis points. This resulted in Adjusted EBITDA of $39 million for the quarter.
“Our customer approval rating hit record highs, increasing by 650 basis points over the prior year,” said Keith Rankin, President, International.