PARSIPPANY, N.J. -

Thanks to the higher-than-projected residual values of its vehicles, Avis Budget Group’s adjusted EBITDA has hit “record levels,” the company said Tuesday as it reported preliminary first-quarter earnings results.

More specifically, Avis Budget said — based on preliminary findings — that it pulled in about $119 million in adjusted EBITDA for the first quarter, a sum that excludes certain items. This is up more than 40 percent year-over-year, officials noted.

“We are pleased with our preliminary first quarter results, with our vehicle rental operations performing modestly better than we had projected and adjusted EBITDA reaching record levels due to the residual values of our vehicles being significantly stronger than our original expectations,” explained Ronald Nelson, Avis Budget Group chairman and chief executive officer. “Travel demand across the majority of our markets remains healthy, and our integration of Avis Europe is progressing as expected.”

Stronger residuals will also likely mean a 3- to 8-percent year-over-year decrease in per-unit North American fleet costs for 2012, Avis Budget projects.

Explaining this in more detail, officials noted: “Consistent with its long-standing policy, the company has prospectively revised the depreciation rates on many of the vehicles in its North American car rental fleet to reflect the significantly stronger residual values it currently foresees.”

David Wyshner, Avis Budget Group senior executive vice president and chief financial officer, added: “When we put our 2012 business plan together, our assumption was that used-car values would continue to moderate following the spike in residual values that we observed after the earthquake in Japan in 2011.

“That moderation has not occurred, as residual values have remained at historically high levels,” he continued. “Our recent experience in selling used vehicles in North America has been outstanding, and we have revised our outlook for fleet costs accordingly.”

Sharing more overall results, officials noted that revenue is projected at $1.6 billion for the first quarter, up roughly 30 percent year-over-year. With certain items taken out of consideration, net income is likely to come in around $14 million.

Avis Budget is projecting GAAP net loss of roughly $23 million for the first quarter, stemming from debt extinguishment costs and acquisition-related charges.