Avis Budget Group (CAR) saw its loss widen to $107 million, or $1.25 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $51 million, or $0.53 a share. On the other hand, adjusted net loss for the quarter widened to $81 million, or $1.25 a share from a loss of $27 million or $0.53 a share, a year ago.
Revenue during the quarter went down marginally by 2.23 percent to $1,839 million from $1,881 million in the previous year period. Gross margin for the quarter contracted 279 basis points over the previous year period to 72.59 percent. Operating margin for the quarter stood at negative 2.66 percent as compared to a positive 1.54 percent for the previous year period.
Operating loss for the quarter was $49 million, compared with an operating income of $29 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $27 million compared with $44 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 1.47 percent for the quarter compared to 2.34 percent in the last year period.
"Our first quarter results reflect higher-than-expected fleet costs, continued pricing pressures and a shift of Easter traffic to the second quarter," said Larry De Shon, Avis Budget Group chief executive officer. "We have taken meaningful actions to reduce costs by more than $50 million to mitigate the effects of weak vehicle residual values. We are optimistic that our results will be stronger over the balance of the year as used-car values began to improve near the end of the quarter and our strategic initiatives continue to gain momentum."
Avis Budget Group expects revenue to be in the range of $8,800 million to $8,900 million for financial year 2017.
Operating cash flow falls marginallyAvis Budget Group has generated cash of $447 million from operating activities during the quarter, down 3.46 percent or $ 16 million, when compared with the last year period. The company has spent $972 million cash to meet investing activities during the quarter as against cash outgo of $1,204 million in the last year period.
Cash flow from financing activities was $950 million for the quarter, down 17.18 percent or $197 million, when compared with the last year period.
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