Avis Budget Group, Inc. (CAR) has reported a 13.59 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $209 million, or $2.28 a share in the quarter, compared with $184 million, or $1.77 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $227 million, or $2.47 a share compared with $206 million or $1.98 a share, a year ago.
Revenue during the quarter grew 3.07 percent to $2,656 million from $2,577 million in the previous year period. Gross margin for the quarter expanded 1 basis points over the previous year period to 78.16 percent. Total expenses were 85.09 percent of quarterly revenues, down from 85.99 percent for the same period last year. This has led to an improvement of 90 basis points in operating margin to 14.91 percent.
Operating income for the quarter was $396 million, compared with $361 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $469 million compared with $431 million in the prior year period. At the same time, adjusted EBITDA margin improved 93 basis points in the quarter to 17.66 percent from 16.72 percent in the last year period.
"Our record third quarter results reflect continued strength in our pricing in the Americas and benefits from our initiatives to drive profitability, resulting in the highest quarterly Adjusted EBITDA margin in our Company's history," said Larry De Shon, Avis Budget Group chief executive officer. "Looking forward, pricing continues to be positive in the Americas, although demand is softer than expected both in the Americas and in Europe. We have moved quickly to right-size our fleet to mitigate the impact and have revised our full-year 2016 outlook as a result."
For financial year 2016, Avis Budget Group, Inc. projects revenue to be $8,750 million.
Operating cash flow improves marginally
Avis Budget Group, Inc. has generated cash of $2,101 million from operating activities during the nine month period, up 3.09 percent or $63 million, when compared with the last year period.
The company has spent $2,755 million cash to meet investing activities during the nine month period as against cash outgo of $3,417 million in the last year period.
Cash flow from financing activities was $1,173 million for the nine month period, down 14.32 percent or $196 million, when compared with the last year period.
Cash and cash equivalents stood at $985 million as on Sep. 30, 2016, up 68.38 percent or $400 million from $585 million on Sep. 30, 2015.
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