Avis 2013 Annual Report Download - page 5

March 28, 2014
Dear fellow shareholders:
I’m pleased to report that Avis Budget Group enjoyed another very successful year. We continued to
strengthen our world-renowned Avis and Budget vehicle rental brands. We achieved outstanding financial
results once again. We maintained our focus on cost containment and expanding efficiency initiatives
around the world. We used our capital resources in a number of strategic ways, funding organic growth
initiatives as well as acquisitions that provide us with new profitable growth opportunities, most notably
Zipcar, the world leader in car sharing. And we continued to enhance our customer experience around the
world, launching innovative technology solutions and customer-focused products that are enthusiastically
supported by our highly engaged and service-focused global workforce.
These efforts contributed to revenue of $7.9 billion, an 8% increase from 2012; Adjusted EBITDA of
$769 million, excluding certain items, down 8% but still the second-highest total in the Company’s history
(but second only because of the below-trend fleet costs in 2012 that normalized in 2013); and net income,
excluding certain items, of $256 million, or $2.20 per diluted share1. We saw top-line revenue growth in our
North America and International segments, which represent 97% of our global revenue; reduced operating
expenses as a percentage of revenue; and we enjoyed a 104% year-over-year increase in our stock price. Over
the last two years our stock price has increased 250%, making us one of the top-performing U.S. stocks over
that period. Our results over that time represent a remarkable achievement for a company that just five
years ago faced unprecedented challenges associated with the 2008-09 recession. The steps we took then,
and since, have allowed us to strengthen our operations and to implement our ongoing global strategic plan,
which has proven to be on-target in virtually every aspect. Our strategy and focus have helped make us a
strong, global company operating a compelling portfolio of brands competing in numerous segments in
today’s evolving world of travel and technology. The following are just a few highlights from the past year:
• We achieved profitable organic growth from a variety of sources, including:
OOur successful efforts to increase our realized pricing in North America;
OContinued focus on cross-border travel;
OSigning and renewing partnerships with leading travel and affinity brands;
OCapitalizing on under-served demand for premium and specialty vehicles;
OWinning and retaining new commercial accounts, with a renewed emphasis on
profitability;
ONew marketing initiatives that attract new customers and help enhance loyalty among
existing customers.
• We completed targeted acquisitions and investments that helped us expand our global
presence and offer a more consistent brand experience around the world. In addition to
Zipcar, we entered the deep-value segment in North America by adding Payless Car Rental
to our portfolio. We strengthened our presence in South America’s leading economy through
a 50% investment in our Avis and Budget licensee for Brazil; and we acquired our Budget
licensee in Belgium, the Netherlands and Luxembourg. We also launched our brands in a
number of small, but growing travel destinations including Cambodia, Colombia and Laos
while expanding our Avis presence in Taiwan.
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