Avis Budget Group Reports Fourth Quarter and Full Year Results
Avis Budget Group (NASDAQ: CAR) reported Q4 2024 revenues of $2.7 billion and full-year revenues of $11.8 billion. The company posted a Q4 net loss of nearly $2 billion and an Adjusted EBITDA loss of $101 million. The full-year results showed a net loss of $1.8 billion with Adjusted EBITDA of $628 million.
The significant losses reflect a strategic decision to accelerate fleet rotations, resulting in a one-time non-cash impairment of $2.3 billion and additional non-cash charges of $180 million. The company's liquidity position stood at $1.1 billion, with an additional $2.8 billion in fleet funding capacity.
The company announced a leadership transition, with CEO Joe Ferraro stepping down on June 30, 2025, to be succeeded by Brian Choi, the current Chief Transformation Officer. The company projects Adjusted EBITDA of no less than $1 billion for 2025.
Avis Budget Group (NASDAQ: CAR) ha riportato ricavi per il quarto trimestre 2024 pari a 2,7 miliardi di dollari e ricavi totali per l'anno di 11,8 miliardi di dollari. La società ha registrato una perdita netta nel Q4 di quasi 2 miliardi di dollari e una perdita di EBITDA rettificato di 101 milioni di dollari. I risultati annuali hanno mostrato una perdita netta di 1,8 miliardi di dollari con un EBITDA rettificato di 628 milioni di dollari.
Le perdite significative riflettono una decisione strategica di accelerare il ricambio della flotta, comportando una svalutazione non monetaria una tantum di 2,3 miliardi di dollari e ulteriori oneri non monetari di 180 milioni di dollari. La posizione di liquidità della società era di 1,1 miliardi di dollari, con ulteriori 2,8 miliardi di dollari di capacità di finanziamento della flotta.
La società ha annunciato una transizione nella leadership, con il CEO Joe Ferraro che si dimetterà il 30 giugno 2025, per essere sostituito da Brian Choi, attuale Chief Transformation Officer. L'azienda prevede un EBITDA rettificato di non meno di 1 miliardo di dollari per il 2025.
Avis Budget Group (NASDAQ: CAR) reportó ingresos de 2.7 mil millones de dólares en el cuarto trimestre de 2024 y un total de 11.8 mil millones de dólares en ingresos anuales. La compañía registró una pérdida neta en el Q4 de casi 2 mil millones de dólares y una pérdida de EBITDA ajustado de 101 millones de dólares. Los resultados del año mostraron una pérdida neta de 1.8 mil millones de dólares con un EBITDA ajustado de 628 millones de dólares.
Las pérdidas significativas reflejan una decisión estratégica de acelerar las rotaciones de la flota, resultando en una debilitación no monetaria de 2.3 mil millones de dólares y cargos no monetarios adicionales de 180 millones de dólares. La posición de liquidez de la compañía se situó en 1.1 mil millones de dólares, con una capacidad adicional de financiación de la flota de 2.8 mil millones de dólares.
La empresa anunció una transición de liderazgo, con el CEO Joe Ferraro renunciando el 30 de junio de 2025, siendo sucedido por Brian Choi, el actual Director de Transformación. La compañía proyecta un EBITDA ajustado de no menos de 1 mil millones de dólares para 2025.
아비스 예산 그룹 (NASDAQ: CAR)는 2024년 4분기 매출이 27억 달러, 연간 매출이 118억 달러라고 보고했습니다. 회사는 4분기 순손실이 거의 20억 달러에 이르고, 조정 EBITDA 손실이 1억 1000만 달러를 기록했다고 발표했습니다. 연간 결과는 순손실이 18억 달러이고 조정 EBITDA가 6억 2800만 달러로 나타났습니다.
상당한 손실은 전략적 결정으로 인해 차고 회전 속도를 높인 결과이며, 이는 23억 달러의 비현금 자산손상과 추가 비현금 비용 1억 8000만 달러가 발생했습니다. 회사의 유동성 위치는 11억 달러였으며, 추가로 28억 달러의 플릿 자금 조달 용량이 있습니다.
회사는 리더십 전환을 발표했으며, CEO인 Joe Ferraro는 2025년 6월 30일자로 사임하고 현재의 Chief Transformation Officer인 Brian Choi가 그의 후임이 됩니다. 회사는 2025년 조정 EBITDA가 10억 달러 이상일 것으로 예측하고 있습니다.
Avis Budget Group (NASDAQ: CAR) a annoncé des revenus de 2,7 milliards de dollars pour le quatrième trimestre 2024 et des revenus totaux de 11,8 milliards de dollars pour l'année. L'entreprise a affiché une perte nette de près de 2 milliards de dollars au Q4 et une perte d'EBITDA ajusté de 101 millions de dollars. Les résultats annuels montrent une perte nette de 1,8 milliard de dollars avec un EBITDA ajusté de 628 millions de dollars.
Les pertes importantes reflètent une décision stratégique d'accélérer les rotations de la flotte, entraînant une dépréciation non monétaire unique de 2,3 milliards de dollars et des charges non monétaires supplémentaires de 180 millions de dollars. La position de liquidité de l'entreprise s'élevait à 1,1 milliard de dollars, avec une capacité de financement de flotte supplémentaire de 2,8 milliards de dollars.
L'entreprise a annoncé une transition de leadership, avec le PDG Joe Ferraro qui se retirera le 30 juin 2025, pour être remplacé par Brian Choi, l'actuel Chief Transformation Officer. L'entreprise projette un EBITDA ajusté d'au moins 1 milliard de dollars pour 2025.
Avis Budget Group (NASDAQ: CAR) berichtete für das vierte Quartal 2024 von Einnahmen in Höhe von 2,7 Milliarden Dollar und einem Gesamtjahreseinkommen von 11,8 Milliarden Dollar. Das Unternehmen verzeichnete im 4. Quartal einen Nettoverlust von fast 2 Milliarden Dollar sowie einen Adjusted EBITDA-Verlust von 101 Millionen Dollar. Die Jahresergebnisse wiesen einen Nettoverlust von 1,8 Milliarden Dollar bei einem Adjusted EBITDA von 628 Millionen Dollar aus.
Die erheblichen Verluste spiegeln eine strategische Entscheidung wider, die Flottenrotation zu beschleunigen, was zu einer einmaligen, nicht liquiden Wertminderung von 2,3 Milliarden Dollar und zusätzlichen nicht liquiden Belastungen von 180 Millionen Dollar führte. Die Liquiditätsposition des Unternehmens betrug 1,1 Milliarden Dollar, mit zusätzlicher Flottierungsfinanzierungskapazität von 2,8 Milliarden Dollar.
Das Unternehmen kündigte einen Führungswechsel an, wobei CEO Joe Ferraro am 30. Juni 2025 zurücktritt und Brian Choi, der derzeitige Chief Transformation Officer, ihm nachfolgt. Das Unternehmen rechnet für 2025 mit einem Adjusted EBITDA von nicht weniger als 1 Milliarde Dollar.
- Strong leisure holiday travel with record December performance
- Vehicle utilization increased by over 2 points in both Americas and International segments
- International rental days increased 4% compared to 2023
- Robust liquidity position of $1.1 billion plus $2.8 billion fleet funding capacity
- Projected Adjusted EBITDA of at least $1 billion for 2025
- Q4 net loss of nearly $2 billion
- Q4 Adjusted EBITDA loss of $101 million
- Full-year net loss of $1.8 billion
- One-time non-cash impairment charge of $2.3 billion
- Additional non-cash related charges of $180 million
Insights
Avis Budget Group's Q4 and FY2024 results present a complex picture of strategic transformation amid strong market fundamentals. The headline
Operational metrics paint an encouraging picture: improved vehicle utilization rates in both Americas and International segments (up by more than two percentage points), alongside rental day growth of
The announced leadership transition from Joe Ferraro to Brian Choi comes at a pivotal moment. Choi's background as Chief Transformation Officer suggests a continued focus on operational evolution and technological innovation. The guidance for
Record holiday performance and robust Martin Luther King Jr. Day bookings indicate sustained strength in leisure travel demand, a important driver for rental car companies. The strategic fleet rotation, while costly in the short term, positions Avis to better capitalize on this demand through improved fleet flexibility and cost predictability.
PARSIPPANY, N.J., Feb. 11, 2025 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) announced financial results for the fourth quarter and full year ended December 31, 2024 today.
We ended 2024 with fourth quarter revenues of
Our net loss and Adjusted EBITDA results reflect a change in strategy to significantly accelerate fleet rotations, which resulted in shortening the useful life of the majority of our vehicles in the Americas segment. The financial impact of this decision was a one-time non-cash impairment of
“We took the necessary actions to accelerate our fleet rotation in the Americas segment, which will create more certainty in our fleet costs and better position us for sustainable growth for 2025 and beyond. Travel demand is strong, and our brands are well-positioned to take advantage of this activity,” said Joe Ferraro, Avis Budget Group Chief Executive Officer. “In the United States, the December holidays were a record and Martin Luther King Jr. Day was robust, denoting the strength of leisure activity, which we believe will continue throughout this year. For these reasons, I am confident in our ability to generate no less than
Our liquidity position at the end of the quarter, including committed and uncommitted facilities, was approximately
Financial Highlights
- In the Americas, fourth quarter vehicle utilization increased by more than two points compared to 2023. For the full year, rental days increased
1% compared to 2023. - In International, fourth quarter vehicle utilization was up by more than two points compared to 2023. For the full year, rental days were
4% higher compared to 2023. - In 2024, we repurchased approximately 550,000 shares of common stock for a total of
$45 million under the share repurchase program.
_________________________
1 Adjusted EBITDA and certain other measures in this release are non-GAAP financial measures. See "Non-GAAP Financial Measures and Key Metrics" and the tables that accompany this release for definitions and reconciliations of these non-GAAP measures to the most comparable GAAP measures.
CEO TRANSITION
Avis Budget Group today announced that after an exceptional 45-year career with the Company, Joe Ferraro will transition from CEO to Board Advisor, effective June 30, 2025. Brian Choi, the Company’s Chief Transformation Officer, will take over as CEO, effective July 1, 2025. Additionally, Jagdeep Pahwa, who has served as a Board member since 2018 and as Chairman of the Board since May 2024, has been named Executive Chairman.
“We are grateful to Joe for his strong leadership and invaluable contributions to Avis Budget Group, particularly during the challenges of the COVID-19 pandemic, which helped us emerge as a stronger company. I am also excited to continue working with him in his role as Board Advisor,” said Pahwa. “We are confident that Brian is well-positioned to lead the Company going forward. I wish him the best in his new role and look forward to working closely with him.”
Reflecting on his tenure, Ferraro stated, “It has been an honor to serve as CEO and to work alongside the outstanding team at Avis Budget Group, where I have spent my entire career. Together, we have worked tirelessly to achieve record results and position the Company for future success. I look forward to seeing the Company continue a strong trajectory in the years ahead.”
Incoming CEO Brian Choi stated, “I am honored to step into the role of CEO and lead this incredible organization into its next chapter. I want to thank Joe for his leadership, operational expertise, and invaluable insights. I look forward to working with my colleagues and Jagdeep to continue innovating our business, enhancing our customer value proposition, and creating long-term value for all stakeholders.”
INVESTOR CONFERENCE CALL
We will host a conference call to discuss our fourth quarter results on February 12, 2025, at 8:30 a.m. (ET). Investors may access the call on our investor relations website at ir.avisbudgetgroup.com or by dialing (877) 407-2991. A replay of the call will be available on our website and at (877) 660-6853 using conference code 13751081.
ABOUT AVIS BUDGET GROUP
We are a leading global provider of mobility solutions, both through our Avis and Budget brands, which have approximately 10,250 rental locations in approximately 180 countries around the world, and through our Zipcar brand, which is the world's leading car sharing network. We operate most of our car rental locations in North America, Europe and Australasia directly, and operate primarily through licensees in other parts of the world. We are headquartered in Parsippany, N.J. More information is available at avisbudgetgroup.com.
NON-GAAP FINANCIAL MEASURES AND KEY METRICS
This release includes financial measures such as Adjusted EBITDA and Adjusted Free Cash Flow, as well as other financial measures, that are not considered generally accepted accounting principle (“GAAP”) measures as defined under SEC rules. Important information regarding such non-GAAP measures is contained in the tables within this release and in Appendix I, including the definitions of these measures and reconciliations to the most comparable U.S. GAAP measures.
We measure performance principally using the following key metrics: (i) rental days, (ii) revenue per day, (iii) vehicle utilization, and (iv) per-unit fleet costs. Our rental days, revenue per day and vehicle utilization metrics are all calculated based on the actual rental of the vehicle during a 24-hour period. We believe that this methodology provides management with the most relevant metrics in order to effectively manage the performance of our business. Our calculations may not be comparable to the calculations of similarly-titled metrics by other companies. We present currency exchange rate effects on our key metrics to provide a method of assessing how our business performed excluding the effects of foreign currency rate fluctuations. Currency exchange rate effects are calculated by translating the current-period's results at the prior-period average exchange rates plus any related gains and losses on currency hedges.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release constitute “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained herein are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by any such forward-looking statements. Forward-looking statements include information concerning our future financial performance, business strategy, projected plans and objectives. These statements may be identified by the fact that they do not relate to historical or current facts and may use words such as “believes,” “expects,” “anticipates,” “will,” “should,” “could,” “may,” “would,” “intends,” “projects,” “estimates,” “plans,” “forecasts,” “guidance,” and similar words, expressions or phrases. The following important factors and assumptions could affect our future results and could cause actual results to differ materially from those expressed in such forward-looking statements. These factors include, but are not limited to:
- the high level of competition in the mobility industry, including from new companies or technology, and the impact such competition may have on pricing and rental volume;
- a change in our fleet costs, including as a result of a change in the cost of new vehicles, resulting from inflation, tariffs or otherwise, manufacturer recalls, disruption in the supply of new vehicles, including due to labor actions, tariffs or otherwise, shortages in semiconductors used in new vehicle production, and/or a change in the price at which we dispose of used vehicles either in the used vehicle market or under repurchase or guaranteed depreciation programs;
- the results of operations or financial condition of the manufacturers of our vehicles, which could impact their ability to perform their payment obligations under our agreements with them, including repurchase and/or guaranteed depreciation arrangements, and/or their willingness or ability to make vehicles available to us or the mobility industry as a whole on commercially reasonable terms or at all;
- levels of and volatility in travel demand, including future volatility in airline passenger traffic;
- a deterioration in economic conditions, resulting in a recession or otherwise, particularly during our peak season or in key market segments;
- an occurrence or threat of terrorism, pandemics, severe weather events or natural disasters, military conflicts, including the ongoing military conflict in Eastern Europe, or civil unrest in the locations in which we operate, and the potential effects of sanctions on the world economy and markets and/or international trade;
- any substantial changes in the cost or supply of fuel, vehicle parts, energy, labor or other resources on which we depend to operate our business, including as a result of pandemics, inflation, tariffs, the ongoing military conflict in Eastern Europe, and any embargoes on oil sales imposed on or by the Russian government;
- our ability to successfully implement or achieve our business plans and strategies, achieve and maintain cost savings and adapt our business to changes in mobility;
- political, economic, or commercial instability and/or political, regulatory, or legal changes in the countries in which we operate, and our ability to conform to multiple and conflicting laws or regulations in those countries;
- the performance of the used vehicle market from time to time, including our ability to dispose of vehicles in the used vehicle market on attractive terms;
- our dependence on third-party distribution channels, third-party suppliers of other services and co-marketing arrangements with third parties;
- risks related to completed or future acquisitions or investments that we may pursue, including the incurrence of incremental indebtedness to help fund such transactions and our ability to promptly and effectively integrate any acquired businesses or capitalize on joint ventures, partnerships and other investments;
- our ability to utilize derivative instruments, and the impact of derivative instruments we utilize, which can be affected by fluctuations in interest rates, fuel prices and exchange rates, changes in government regulations and other factors;
- our exposure to uninsured or unpaid claims in excess of historical levels or changes in the number of incidents or cost per incident, and our ability to obtain insurance at desired levels and the cost of that insurance;
- risks associated with litigation or governmental or regulatory inquiries, or any failure or inability to comply with laws, regulations or contractual obligations or any changes in laws, regulations or contractual obligations, including with respect to personally identifiable information and consumer privacy, labor and employment, and tax;
- risks related to protecting the integrity of, and preventing unauthorized access to, our information technology systems or those of our third-party vendors, licensees, dealers, independent operators and independent contractors, and protecting the confidential information of our employees and customers against security breaches, including physical or cybersecurity breaches, attacks, or other disruptions, compliance with privacy and data protection regulation, and the effects of any potential increase in cyberattacks on the world economy and markets and/or international trade;
- any impact on us from the actions of our third-party vendors, licensees, dealers, independent operators and independent contractors and/or disputes that may arise out of our agreements with such parties;
- any major disruptions in our communication networks or information systems;
- risks related to tax obligations and the effect of future changes in tax laws and accounting standards;
- risks related to our indebtedness, including our substantial outstanding debt obligations, recent and future interest rate increases, which increase our financing costs, downgrades by rating agencies and our ability to incur substantially more debt;
- our ability to obtain financing for our global operations, including the funding of our vehicle fleet through the issuance of asset-backed securities and use of the global lending markets;
- our ability to meet the financial and other covenants contained in the agreements governing our indebtedness, or to obtain a waiver or amendment of such covenants should we be unable to meet such covenants;
- significant changes in the timing of our fleet rotation, carrying value of goodwill, or long-lived assets, including when there are events or changes in circumstances that indicate the carrying value may exceed the current fair value, which could result in a significant impairment charge; and
- other business, economic, competitive, governmental, regulatory, political or technological factors affecting our operations, pricing or services.
We operate in a continuously changing business environment and new risk factors emerge from time to time. New risk factors, factors beyond our control, or changes in the impact of identified risk factors may cause actual results to differ materially from those set forth in any forward-looking statements. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. Moreover, we do not assume responsibility if future results are materially different from those forecasted or anticipated. Other factors and assumptions not identified above, including those discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth in Item 2 and "Risk Factors" set forth in Item 1A in our quarterly reports and in similarly titled sections set forth in Item 7 and in Item 1A and in other portions of our 2023 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 16, 2024 (the “2023 Form 10-K”), may cause actual results to differ materially from those projected in any forward-looking statements.
Although we believe that our assumptions are reasonable, any or all of our forward-looking statements may prove to be inaccurate and we can make no guarantees about our future performance. Should unknown risks or uncertainties materialize or underlying assumptions prove inaccurate, actual results could differ materially from past results and/or those anticipated, estimated or projected. We undertake no obligation to release any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events. For any forward-looking statements contained in any document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. For additional information concerning forward-looking statements and other important factors, refer to our 2023 Form 10-K, Quarterly Reports on Form 10-Q and other filings with the SEC.
| Investor Relations Contact: | Media Relations Contact: |
| David Calabria, IR@avisbudget.com | Media Relations Team, ABGPress@edelman.com |
| *** Tables 1 - 6 and Appendix I attached *** | |
| Table 1 | ||||||||||||||||||||
| Avis Budget Group, Inc. SUMMARY DATA SHEET (Unaudited) (In millions) | ||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||
| Income Statement and Other Items | ||||||||||||||||||||
| Revenues | $ | 2,710 | $ | 2,764 | (2)% | $ | 11,789 | $ | 12,008 | (2)% | ||||||||||
| Income (loss) before income taxes | (2,841 | ) | 162 | n/m | (2,627 | ) | 1,914 | n/m | ||||||||||||
| Net income (loss) attributable to Avis Budget Group, Inc. | (1,958 | ) | 259 | n/m | (1,821 | ) | 1,632 | n/m | ||||||||||||
| Adjusted EBITDA(a) | $ | (101 | ) | $ | 311 | n/m | $ | 628 | $ | 2,490 | n/m | |||||||||
| As of December 31, | ||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||
| Balance Sheet Items | ||||||||||||||||||||
| Cash and cash equivalents | $ | 534 | $ | 555 | ||||||||||||||||
| Program cash and restricted cash | 63 | 89 | ||||||||||||||||||
| Vehicles, net | 17,619 | 21,240 | ||||||||||||||||||
| Debt under vehicle programs(b) | 17,536 | 18,937 | ||||||||||||||||||
| Corporate debt | 5,393 | 4,823 | ||||||||||||||||||
| Stockholders' equity attributable to Avis Budget Group, Inc. | (2,327 | ) | (349 | ) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||
| Segment Results | ||||||||||||||||||||
| Revenues | ||||||||||||||||||||
| Americas | $ | 2,117 | $ | 2,167 | (2)% | $ | 9,111 | $ | 9,347 | (3)% | ||||||||||
| International | 593 | 597 | (1)% | 2,678 | 2,661 | |||||||||||||||
| Total company | $ | 2,710 | $ | 2,764 | (2)% | $ | 11,789 | $ | 12,008 | (2)% | ||||||||||
| Adjusted EBITDA(a) | ||||||||||||||||||||
| Americas | $ | (63 | ) | $ | 309 | n/m | $ | 551 | $ | 2,196 | n/m | |||||||||
| International | (11 | ) | 28 | n/m | 161 | 400 | n/m | |||||||||||||
| Corporate and other(c) | (27 | ) | (26 | ) | n/m | (84 | ) | (106 | ) | n/m | ||||||||||
| Total company | $ | (101 | ) | $ | 311 | n/m | $ | 628 | $ | 2,490 | n/m | |||||||||
__________
| n/m Not meaningful. | |
| (a) | Refer to Table 5 for the reconciliation of net income to Adjusted EBITDA and Appendix I for the related definition of the non-GAAP financial measure. |
| (b) | Includes |
| (c) | Includes unallocated corporate expenses which are not attributable to a particular segment. |
| Table 2 | ||||||||||||||
| Avis Budget Group, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except per share data) | ||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenues | $ | 2,710 | $ | 2,764 | $ | 11,789 | $ | 12,008 | ||||||
| Expenses | ||||||||||||||
| Operating | 1,563 | 1,350 | 6,014 | 5,675 | ||||||||||
| Vehicle depreciation and lease charges, net | 801 | 582 | 2,976 | 1,739 | ||||||||||
| Selling, general and administrative | 312 | 309 | 1,352 | 1,408 | ||||||||||
| Vehicle interest, net | 217 | 223 | 941 | 736 | ||||||||||
| Non-vehicle related depreciation and amortization | 60 | 53 | 237 | 216 | ||||||||||
| Interest expense related to corporate debt, net: | ||||||||||||||
| Interest expense | 92 | 75 | 358 | 296 | ||||||||||
| Early extinguishment of debt | 18 | 4 | 19 | 5 | ||||||||||
| Long-lived asset impairment and other related charges | 2,470 | — | 2,470 | — | ||||||||||
| Restructuring and other related charges | 14 | 4 | 37 | 11 | ||||||||||
| Transaction-related costs, net | 1 | 2 | 3 | 5 | ||||||||||
| Other (income) expense, net | 3 | — | 9 | 3 | ||||||||||
| Total expenses | 5,551 | 2,602 | 14,416 | 10,094 | ||||||||||
| Income (loss) before income taxes | (2,841 | ) | 162 | (2,627 | ) | 1,914 | ||||||||
| Provision for (benefit from) income taxes | (884 | ) | (98 | ) | (810 | ) | 279 | |||||||
| Net income (loss) | (1,957 | ) | 260 | (1,817 | ) | 1,635 | ||||||||
| Less: Net income attributable to non-controlling interests | 1 | 1 | 4 | 3 | ||||||||||
| Net income (loss) attributable to Avis Budget Group, Inc. | $ | (1,958 | ) | $ | 259 | $ | (1,821 | ) | $ | 1,632 | ||||
| Earnings (loss) per share | ||||||||||||||
| Basic | $ | (55.66 | ) | $ | 7.18 | $ | (51.23 | ) | $ | 42.57 | ||||
| Diluted | $ | (55.66 | ) | $ | 7.10 | $ | (51.23 | ) | $ | 42.08 | ||||
| Weighted average shares outstanding | ||||||||||||||
| Basic | 35.2 | 36.0 | 35.5 | 38.3 | ||||||||||
| Diluted | 35.2 | 36.4 | 35.5 | 38.8 | ||||||||||
| Table 3 | |||||||||||||||||||||
| Avis Budget Group, Inc. KEY METRICS SUMMARY (Unaudited) | |||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||
| Americas | |||||||||||||||||||||
| Rental Days (000’s) | 30,877 | 31,009 | — | % | 128,431 | 127,661 | 1 | % | |||||||||||||
| Revenue per Day | $ | 68.57 | $ | 69.89 | (2 | )% | $ | 70.94 | $ | 73.22 | (3 | )% | |||||||||
| Revenue per Day, excluding exchange rate effects | $ | 68.64 | $ | 69.89 | (2 | )% | $ | 71.01 | $ | 73.22 | (3 | )% | |||||||||
| Average Rental Fleet | 497,713 | 518,928 | (4 | )% | 510,535 | 507,358 | 1 | % | |||||||||||||
| Vehicle Utilization | 67.4 | % | 65.0 | % | 2.4pps | 68.7 | % | 68.9 | % | (0.2)pps | |||||||||||
| Per-Unit Fleet Costs per Month | $ | 430 | $ | 272 | 58 | % | $ | 376 | $ | 200 | 88 | % | |||||||||
| Per-Unit Fleet Costs per Month, excluding exchange rate effects | $ | 431 | $ | 272 | 58 | % | $ | 376 | $ | 200 | 88 | % | |||||||||
| International | |||||||||||||||||||||
| Rental Days (000’s) | 10,956 | 11,018 | (1 | )% | 47,274 | 45,644 | 4 | % | |||||||||||||
| Revenue per Day | $ | 54.15 | $ | 54.22 | — | % | $ | 56.65 | $ | 58.30 | (3 | )% | |||||||||
| Revenue per Day, excluding exchange rate effects | $ | 54.32 | $ | 54.22 | — | % | $ | 56.66 | $ | 58.30 | (3 | )% | |||||||||
| Average Rental Fleet | 174,253 | 182,337 | (4 | )% | 184,549 | 184,147 | — | % | |||||||||||||
| Vehicle Utilization | 68.3 | % | 65.7 | % | 2.6pps | 70.0 | % | 67.9 | % | 2.1pps | |||||||||||
| Per-Unit Fleet Costs per Month | $ | 304 | $ | 291 | 4 | % | $ | 305 | $ | 237 | 29 | % | |||||||||
| Per-Unit Fleet Costs per Month, excluding exchange rate effects | $ | 305 | $ | 291 | 5 | % | $ | 304 | $ | 237 | 28 | % | |||||||||
| Total | |||||||||||||||||||||
| Rental Days (000’s) | 41,833 | 42,027 | — | % | 175,705 | 173,305 | 1 | % | |||||||||||||
| Revenue per Day | $ | 64.79 | $ | 65.78 | (2 | )% | $ | 67.10 | $ | 69.29 | (3 | )% | |||||||||
| Revenue per Day, excluding exchange rate effects | $ | 64.89 | $ | 65.78 | (1 | )% | $ | 67.15 | $ | 69.29 | (3 | )% | |||||||||
| Average Rental Fleet | 671,966 | 701,265 | (4 | )% | 695,084 | 691,505 | 1 | % | |||||||||||||
| Vehicle Utilization | 67.7 | % | 65.1 | % | 2.6pps | 69.1 | % | 68.7 | % | 0.4pps | |||||||||||
| Per-Unit Fleet Costs per Month | $ | 397 | $ | 277 | 43 | % | $ | 357 | $ | 210 | 70 | % | |||||||||
| Per-Unit Fleet Costs per Month, excluding exchange rate effects | $ | 398 | $ | 277 | 44 | % | $ | 357 | $ | 210 | 70 | % | |||||||||
__________
Refer to Table 6 for key metrics calculations and Appendix I for key metrics definitions.
| Table 4 | |||
| Avis Budget Group, Inc. CONSOLIDATED CONDENSED SCHEDULE OF CASH FLOW AND ADJUSTED FREE CASH FLOW (Unaudited) (In millions) | |||
| CONSOLIDATED CONDENSED SCHEDULE OF CASH FLOW | Year Ended December 31, 2024 | ||
| Operating Activities | |||
| Net cash provided by operating activities | $ | 3,518 | |
| Investing Activities | |||
| Net cash used in investing activities exclusive of vehicle programs | (190 | ) | |
| Net cash used in investing activities of vehicle programs | (2,563 | ) | |
| Net cash used in investing activities | (2,753 | ) | |
| Financing Activities | |||
| Net cash provided by financing activities exclusive of vehicle programs | 532 | ||
| Net cash used in financing activities of vehicle programs | (1,313 | ) | |
| Net cash used in financing activities | (781 | ) | |
| Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | (31 | ) | |
| Net change in cash and cash equivalents, program and restricted cash | (47 | ) | |
| Cash and cash equivalents, program and restricted cash, beginning of period | 644 | ||
| Cash and cash equivalents, program and restricted cash, end of period | $ | 597 | |
| ADJUSTED FREE CASH FLOW(a) | Year Ended December 31, 2024 | ||
| Adjusted EBITDA(b) | $ | 628 | |
| Interest expense related to corporate debt, net (excluding early extinguishment of debt) | (358 | ) | |
| Working capital and other | (27 | ) | |
| Capital expenditures(c) | (219 | ) | |
| Tax payments, net of refunds | (50 | ) | |
| Vehicle programs and related(d) | (488 | ) | |
| Adjusted Free Cash Flow(b) | $ | (514 | ) |
| Acquisition and related payments, net of acquired cash | (2 | ) | |
| Borrowings, net of debt repayments | 630 | ||
| Repurchases of common stock | (70 | ) | |
| Change in program and restricted cash | (23 | ) | |
| Other receipts (payments), net | (15 | ) | |
| Foreign exchange effects, financing costs and other | (53 | ) | |
| Net change in cash and cash equivalents, program and restricted cash (per above) | $ | (47 | ) |
__________
| Refer to Appendix I for the definitions of non-GAAP financial measures Adjusted EBITDA and Adjusted Free Cash Flow. | |
| (a) | This presentation demonstrates the relationship between Adjusted EBITDA and Adjusted Free Cash Flow. We believe it is useful to understand this relationship because it demonstrates how cash generated by our operations is used. This presentation is not intended to be reconciliations of these non-GAAP measures, which are provided on Table 5. |
| (b) | Refer to Table 5 for the reconciliations of net income to Adjusted EBITDA and net cash provided by operating activities to Adjusted Free Cash Flow. |
| (c) | Includes |
| (d) | Includes vehicle-backed borrowings (repayments) that are incremental to amounts required to fund vehicle and vehicle-related assets. |
| Table 5 | ||||||||||||||
| Avis Budget Group, Inc. RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (In millions) | ||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| Reconciliation of Net income to Adjusted EBITDA: | 2024 | 2023 | 2024 | 2023 | ||||||||||
| Net income (loss) | $ | (1,957 | ) | $ | 260 | $ | (1,817 | ) | $ | 1,635 | ||||
| Provision for (benefit from) income taxes | (884 | ) | (98 | ) | (810 | ) | 279 | |||||||
| Income (loss) before income taxes | (2,841 | ) | 162 | (2,627 | ) | 1,914 | ||||||||
| Non-vehicle related depreciation and amortization | 60 | 53 | 237 | 216 | ||||||||||
| Interest expense related to corporate debt, net: | ||||||||||||||
| Interest expense | 92 | 75 | 358 | 296 | ||||||||||
| Early extinguishment of debt | 18 | 4 | 19 | 5 | ||||||||||
| Long-lived asset impairment and other related charges(a) | 2,470 | — | 2,470 | — | ||||||||||
| Restructuring and other related charges | 14 | 4 | 37 | 11 | ||||||||||
| Transaction-related costs, net | 1 | 2 | 3 | 5 | ||||||||||
| Other (income) expense, net | 3 | — | 9 | 3 | ||||||||||
| Legal matters, net(b) | 57 | — | 64 | 5 | ||||||||||
| Cloud computing costs(c) | 12 | 11 | 45 | 35 | ||||||||||
| Severe weather-related damages, net(c) | 13 | — | 13 | — | ||||||||||
| Adjusted EBITDA(d) | $ | (101 | ) | $ | 311 | $ | 628 | $ | 2,490 | |||||
| Reconciliation of Net cash provided by operating activities to Adjusted Free Cash Flow: | ||||||||||||||
| Net cash provided by operating activities | $ | 3,518 | ||||||||||||
| Net cash used in investing activities of vehicle programs | (2,563 | ) | ||||||||||||
| Net cash used in financing activities of vehicle programs | (1,313 | ) | ||||||||||||
| Capital expenditures | (202 | ) | ||||||||||||
| Proceeds received on sale of assets and nonmarketable equity securities | 3 | |||||||||||||
| Acquisition and disposition-related payments | (2 | ) | ||||||||||||
| Change in program and restricted cash | 23 | |||||||||||||
| Dividends from equity method investments | 7 | |||||||||||||
| Other receipts (payments), net | 15 | |||||||||||||
| Adjusted Free Cash Flow | $ | (514 | ) | |||||||||||
__________
| Refer to Appendix I for the definitions of Adjusted EBITDA and Adjusted Free Cash Flow, non-GAAP financial measures. | |
| (a) | Includes an impairment charge of approximately |
| (b) | Includes |
| (c) | Reported within operating expenses. |
| (d) | Includes stock-based compensation expense and vehicle related deferred financing fee amortization in the aggregate totaling |
| Table 6 | |||||||||||||||||||||||
| Avis Budget Group, Inc. KEY METRICS CALCULATIONS (Unaudited) ($ in millions, except as noted) | |||||||||||||||||||||||
| Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | ||||||||||||||||||||||
| Americas | International | Total | Americas | International | Total | ||||||||||||||||||
| Revenue per Day (RPD) | |||||||||||||||||||||||
| Revenue | $ | 2,117 | $ | 593 | $ | 2,710 | $ | 2,167 | $ | 597 | $ | 2,764 | |||||||||||
| Currency exchange rate effects | 2 | 3 | 5 | — | — | — | |||||||||||||||||
| Revenue excluding exchange rate effects | 2,119 | 596 | 2,715 | 2,167 | 597 | 2,764 | |||||||||||||||||
| Rental days (000's) | 30,877 | 10,956 | 41,833 | 31,009 | 11,018 | 42,027 | |||||||||||||||||
| RPD excluding exchange rate effects (in $'s) | $ | 68.64 | $ | 54.32 | $ | 64.89 | $ | 69.89 | $ | 54.22 | $ | 65.78 | |||||||||||
| Vehicle Utilization | |||||||||||||||||||||||
| Rental days (000's) | 30,877 | 10,956 | 41,833 | 31,009 | 11,018 | 42,027 | |||||||||||||||||
| Average rental fleet | 497,713 | 174,253 | 671,966 | 518,928 | 182,337 | 701,265 | |||||||||||||||||
| Number of days in period | 92 | 92 | 92 | 92 | 92 | 92 | |||||||||||||||||
| Available rental days (000's) | 45,790 | 16,031 | 61,821 | 47,741 | 16,775 | 64,516 | |||||||||||||||||
| Vehicle utilization | 67.4 | % | 68.3 | % | 67.7 | % | 65.0 | % | 65.7 | % | 65.1 | % | |||||||||||
| Per-Unit Fleet Costs | |||||||||||||||||||||||
| Vehicle depreciation and lease charges, net | $ | 642 | $ | 159 | $ | 801 | $ | 424 | $ | 158 | $ | 582 | |||||||||||
| Currency exchange rate effects | 1 | — | 1 | — | — | — | |||||||||||||||||
| Vehicle depreciation excluding exchange rate effects | $ | 643 | $ | 159 | $ | 802 | $ | 424 | $ | 158 | $ | 582 | |||||||||||
| Average rental fleet | 497,713 | 174,253 | 671,966 | 518,928 | 182,337 | 701,265 | |||||||||||||||||
| Per-unit fleet costs (in $'s) | $ | 1,293 | $ | 914 | $ | 1,195 | $ | 816 | $ | 872 | $ | 831 | |||||||||||
| Number of months in period | 3 | 3 | 3 | 3 | 3 | 3 | |||||||||||||||||
| Per-unit fleet costs per month excluding exchange rate effects (in $'s) | $ | 431 | $ | 305 | $ | 398 | $ | 272 | $ | 291 | $ | 277 | |||||||||||
| Year Ended December 31, 2024 | Year Ended December 31, 2023 | ||||||||||||||||||||||
| Americas | International | Total | Americas | International | Total | ||||||||||||||||||
| Revenue per Day (RPD) | |||||||||||||||||||||||
| Revenue | $ | 9,111 | $ | 2,678 | $ | 11,789 | $ | 9,347 | $ | 2,661 | $ | 12,008 | |||||||||||
| Currency exchange rate effects | 8 | 1 | 9 | — | — | — | |||||||||||||||||
| Revenue excluding exchange rate effects | 9,119 | 2,679 | 11,798 | 9,347 | 2,661 | 12,008 | |||||||||||||||||
| Rental days (000's) | 128,431 | 47,274 | 175,705 | 127,661 | 45,644 | 173,305 | |||||||||||||||||
| RPD excluding exchange rate effects (in $'s) | $ | 71.01 | $ | 56.66 | $ | 67.15 | $ | 73.22 | $ | 58.30 | $ | 69.29 | |||||||||||
| Vehicle Utilization | |||||||||||||||||||||||
| Rental days (000's) | 128,431 | 47,274 | 175,705 | 127,661 | 45,644 | 173,305 | |||||||||||||||||
| Average rental fleet | 510,535 | 184,549 | 695,084 | 507,358 | 184,147 | 691,505 | |||||||||||||||||
| Number of days in period | 366 | 366 | 366 | 365 | 365 | 365 | |||||||||||||||||
| Available rental days (000's) | 186,856 | 67,545 | 254,401 | 185,186 | 67,213 | 252,399 | |||||||||||||||||
| Vehicle utilization | 68.7 | % | 70.0 | % | 69.1 | % | 68.9 | % | 67.9 | % | 68.7 | % | |||||||||||
| Per-Unit Fleet Costs | |||||||||||||||||||||||
| Vehicle depreciation and lease charges, net | $ | 2,301 | $ | 675 | $ | 2,976 | $ | 1,215 | $ | 524 | $ | 1,739 | |||||||||||
| Currency exchange rate effects | 2 | (2 | ) | — | — | — | — | ||||||||||||||||
| Vehicle depreciation excluding exchange rate effects | $ | 2,303 | $ | 673 | $ | 2,976 | $ | 1,215 | $ | 524 | $ | 1,739 | |||||||||||
| Average rental fleet | 510,535 | 184,549 | 695,084 | 507,358 | 184,147 | 691,505 | |||||||||||||||||
| Per-unit fleet costs (in $'s) | $ | 4,512 | $ | 3,649 | $ | 4,282 | $ | 2,395 | $ | 2,847 | $ | 2,515 | |||||||||||
| Number of months in period | 12 | 12 | 12 | 12 | 12 | 12 | |||||||||||||||||
| Per-unit fleet costs per month excluding exchange rate effects (in $'s) | $ | 376 | $ | 304 | $ | 357 | $ | 200 | $ | 237 | $ | 210 | |||||||||||
__________
Our calculation of rental days and revenue per day may not be comparable to the calculation of similarly-titled metrics by other companies. Currency exchange rate effects are calculated by translating the current-period's results at the prior-period average exchange rates plus any related gains and losses on currency hedges.
| Appendix I |
| Avis Budget Group, Inc. |
| DEFINITIONS OF NON-GAAP MEASURES AND KEY METRICS |
Adjusted EBITDA
The accompanying press release presents Adjusted EBITDA, which is a non-GAAP measure most directly comparable to net income (loss). Adjusted EBITDA is defined as income (loss) from continuing operations before non-vehicle related depreciation and amortization; long-lived asset impairment and other related charges; restructuring and other related charges; early extinguishment of debt costs; non-vehicle related interest; transaction-related costs, net; legal matters, net, which includes amounts recorded in excess of
We believe Adjusted EBITDA is useful as a supplemental measure in evaluating the performance of our operating businesses and in comparing our results from period to period. We also believe that Adjusted EBITDA is useful to investors because it allows them to assess our results of operations and financial condition on the same basis that management uses internally. Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with U.S. GAAP. Our presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies. A reconciliation of Adjusted EBITDA from net income (loss) recognized under U.S. GAAP is provided on Table 5.
Adjusted Free Cash Flow
Represents net cash provided by operating activities adjusted to reflect the cash inflows and outflows relating to capital expenditures, the investing and financing activities of our vehicle programs, asset sales, if any, and to exclude restructuring and other related charges; early extinguishment of debt costs; transaction-related costs; legal matters; non-operational charges related to shareholder activist activity; COVID-19 charges; other (income) expense; and severe weather-related damages. We have revised our definition of Adjusted Free Cash Flow to exclude severe weather-related damages. We did not revise prior years' Adjusted Free Cash Flow amounts because there were no other charges similar in nature to these.
We believe that Adjusted Free Cash Flow is useful in measuring the cash generated that is available to be used to repay debt obligations, repurchase stock, pay dividends and invest in future growth through new business development activities or acquisitions. Adjusted Free Cash Flow should not be construed as a substitute in measuring operating results or liquidity, and our presentation of Adjusted Free Cash Flow may not be comparable to similarly-titled measures used by other companies. A reconciliation of Adjusted Free Cash Flow from net cash provided by operating activities recognized under U.S. GAAP is provided on Table 5.
Adjusted EBITDA Margin
Represents Adjusted EBITDA as a percentage of revenues.
Available Rental Days
Defined as Average Rental Fleet times the numbers of days in a given period.
Average Rental Fleet
Represents the average number of vehicles in our fleet during a given period of time.
Currency Exchange Rate Effects
Represents the difference between current-period results as reported and current-period results translated at the prior-period average exchange rates plus any related currency hedges.
Gross Adjusted EBITDA
Represents Adjusted EBITDA with the add-back of vehicle depreciation and vehicle interest.
Net Corporate Debt
Represents corporate debt minus cash and cash equivalents.
Net Corporate Leverage
Represents Net Corporate Debt divided by Adjusted EBITDA for the twelve months prior to the date of calculation.
Total Net Debt Ratio
Represents total debt less cash and cash equivalents divided by Gross Adjusted EBITDA for the twelve months prior to the date of calculation.
Per-Unit Fleet Costs
Represents vehicle depreciation, lease charges and gain or loss on vehicles sales, divided by Average Rental Fleet.
Rental Days
Represents the total number of days (or portion thereof) a vehicle was rented during a 24-hour period.
Revenue per Day
Represents revenues divided by Rental Days.
Vehicle Utilization
Represents Rental Days divided by Available Rental Days.
FAQ
What were Avis Budget Group's (CAR) Q4 2024 financial results?
Why did Avis Budget Group (CAR) report significant losses in 2024?
Who will be the new CEO of Avis Budget Group (CAR) after Joe Ferraro?
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