Avis Budget Group Reports Second Quarter Results
Avis Budget Group (NASDAQ: CAR) reported its Q2 2024 financial results, with revenues exceeding $3.0 billion. The company saw a 2% increase in rental days compared to Q2 2023, with sequential improvements in revenue per day. Net income stood at $15 million, while Adjusted EBITDA reached $214 million. The Americas segment reported Adjusted EBITDA of $186 million, with a 1% increase in rental days. International operations contributed $48 million in Adjusted EBITDA, driven by improved vehicle utilization and a 5% increase in rental days. Vehicle utilization for the quarter was 70.2%, with June showing a one-point improvement compared to June 2023. The company's liquidity position at quarter-end was $822 million, with an additional $2.9 billion in fleet funding capacity.
Avis Budget Group (NASDAQ: CAR) ha riportato i risultati finanziari per il secondo trimestre del 2024, con ricavi superiori a 3,0 miliardi di dollari. L'azienda ha registrato un incremento del 2% nei giorni di noleggio rispetto al secondo trimestre del 2023, con miglioramenti sequenziali nei ricavi per giorno. Il reddito netto è stato di 15 milioni di dollari, mentre l'EBITDA rettificato ha raggiunto 214 milioni di dollari. Il segmento Americhe ha riportato un EBITDA rettificato di 186 milioni di dollari, con un aumento dell'1% nei giorni di noleggio. Le operazioni internazionali hanno contribuito con 48 milioni di dollari in EBITDA rettificato, grazie a una migliore utilizzo dei veicoli e un aumento del 5% nei giorni di noleggio. L'utilizzo dei veicoli per il trimestre è stato del 70,2%, con giugno che ha mostrato un miglioramento di un punto rispetto a giugno 2023. La posizione di liquidità dell'azienda alla fine del trimestre era di 822 milioni di dollari, con ulteriori 2,9 miliardi di dollari in capacità di finanziamento della flotta.
Avis Budget Group (NASDAQ: CAR) informó sus resultados financieros del segundo trimestre de 2024, con ingresos que superan los 3.0 mil millones de dólares. La compañía vio un aumento del 2% en los días de alquiler en comparación con el segundo trimestre de 2023, con mejoras secuenciales en los ingresos por día. La ganancia neta se situó en 15 millones de dólares, mientras que el EBITDA ajustado alcanzó los 214 millones de dólares. El segmento de las Américas reportó un EBITDA ajustado de 186 millones de dólares, con un incremento del 1% en los días de alquiler. Las operaciones internacionales contribuyeron con 48 millones de dólares en EBITDA ajustado, impulsadas por una mejor utilización de vehículos y un aumento del 5% en los días de alquiler. La utilización de vehículos para el trimestre fue del 70.2%, con junio mostrando una mejora de un punto en comparación con junio de 2023. La posición de liquidez de la compañía al final del trimestre era de 822 millones de dólares, con un adicional de 2.9 mil millones de dólares en capacidad de financiamiento de flota.
Avis Budget Group (NASDAQ: CAR)는 2024년 2분기 재무 결과를 보고했으며, 수익은 30억 달러를 초과했습니다. 회사는 2023년 2분기에 비해 2%의 렌탈 날짜 증가를 보였으며, 하루당 수익이 순차적으로 개선되었습니다. 순이익은 1500만 달러였고, 조정 EBITDA는 2억 1400만 달러에 도달했습니다. 미주 부문은 1억 8600만 달러의 조정 EBITDA를 보고했으며, 렌탈 날짜가 1% 증가했습니다. 국제 운영은 4800만 달러의 조정 EBITDA에 기여했으며, 차량 이용률 개선과 함께 렌탈 날짜가 5% 증가했습니다. 해당 분기의 차량 이용률은 70.2%였으며, 2023년 6월에 비해 1포인트 개선되었습니다. 분기 말 시점의 회사 유동성은 8억 2200만 달러였으며, 추가로 29억 달러의 차량 자금 조달 능력이 있었습니다.
Avis Budget Group (NASDAQ: CAR) a publié ses résultats financiers du deuxième trimestre 2024, avec des revenus dépassant 3,0 milliards de dollars. L'entreprise a enregistré une augmentation de 2% des jours de location par rapport au deuxième trimestre 2023, avec des améliorations séquentielles des revenus par jour. Le bénéfice net s'est établi à 15 millions de dollars, tandis que l'EBITDA ajusté a atteint 214 millions de dollars. Le segment Amériques a rapporté un EBITDA ajusté de 186 millions de dollars, avec une augmentation de 1% des jours de location. Les opérations internationales ont contribué à hauteur de 48 millions de dollars en EBITDA ajusté, soutenues par une meilleure utilisation des véhicules et une hausse de 5% des jours de location. Le taux d'utilisation des véhicules pour le trimestre était de 70,2%, le mois de juin affichant une amélioration d'un point par rapport à juin 2023. La position de liquidité de l'entreprise à la fin du trimestre était de 822 millions de dollars, avec un financement additionnel de 2,9 milliards de dollars pour la flotte.
Avis Budget Group (NASDAQ: CAR) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht, mit einem Umsatz von über 3,0 Milliarden Dollar. Das Unternehmen verzeichnete im Vergleich zum zweiten Quartal 2023 einen anstieg von 2% bei den Miettagen und verbesserte sich sequenziell im Umsatz pro Tag. Der Nettogewinn beläuft sich auf 15 Millionen Dollar, während das bereinigte EBITDA bei 214 Millionen Dollar liegt. Der amerikanische Markt meldete ein bereinigtes EBITDA von 186 Millionen Dollar mit einem Anstieg von 1% bei den Miettagen. Die internationalen Geschäfte trugen 48 Millionen Dollar zum bereinigten EBITDA bei, unterstützt durch eine verbesserte Fahrzeugnutzung und einen Anstieg von 5% bei den Miettagen. Die Fahrzeugnutzungsrate für das Quartal betrug 70,2%, wobei der Juni eine Verbesserung um einen Punkt im Vergleich zum Juni 2023 zeigte. Die Liquiditätsposition des Unternehmens zum Quartalsende betrug 822 Millionen Dollar, mit weiteren 2,9 Milliarden Dollar an Finanzierungsfähigkeit für die Flotte.
- Revenues exceeded $3.0 billion in Q2 2024
- Rental days increased by 2% compared to Q2 2023
- Vehicle utilization improved to 70.2%, with June showing a one-point increase year-over-year
- International segment saw a 5% increase in rental days
- Strong liquidity position of $822 million, with additional $2.9 billion in fleet funding capacity
- Net income of $15 million, potentially lower than previous periods
- June pricing finished slightly down compared to June 2023
- Revenue per day in the Americas was down 2% in June compared to June 2023
Insights
Avis Budget Group's Q2 2024 results show a mixed performance. While revenues exceeded
The sequential improvement in revenue per day and vehicle utilization is positive, but year-over-year comparisons remain challenging. The
Investors should monitor the company's ability to balance pricing and utilization in the competitive car rental market, as well as its success in aligning fleet size with demand to improve profitability.
The car rental market is showing signs of recovery, with Avis reporting improved demand and sequential pricing improvements. The
The company's strategy to align fleet size with demand appears to be paying off, as evidenced by the strong pricing around the Fourth of July holiday. This suggests a potential shift in market dynamics, with rental companies gaining more pricing power as travel demand recovers.
However, the slight decline in June pricing compared to June 2023 highlights ongoing competitive pressures. Investors should watch for trends in business vs. leisure travel, as well as the impact of electric vehicle adoption on fleet composition and costs.
PARSIPPANY, N.J., Aug. 05, 2024 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) announced financial results for second quarter 2024 today.
We ended the quarter with revenues of more than
“As the second quarter progressed, demand elevated with pricing and vehicle utilization sequentially improving. June pricing finished down slightly and vehicle utilization up a point in the Americas compared to June 2023,” said Joe Ferraro, Avis Budget Group Chief Executive Officer. “Our actions to get our fleet size in-line with demand enabled us to start the third quarter with strong pricing around the Fourth of July holiday, setting us up well to take advantage of the summer peak.”
Q2 HIGHLIGHTS
- Revenues of more than
$3.0 billion with rental days up2% compared to second quarter 2023, and revenue per day sequentially improved throughout the quarter. - Adjusted EBITDA in the Americas was
$186 million , with rental days up1% compared to the second quarter 2023, and revenue per day improving month to month with June revenue per day finishing down2% compared to June 2023. - Adjusted EBITDA in International was
$48 million , driven by improved vehicle utilization while rental days increased by5% compared to second quarter 2023. - Vehicle utilization was
70.2% in the quarter, with June improving by approximately one point compared to June 2023.
Our liquidity position, including committed and uncommitted facilities, at the end of the quarter was
____________________
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 the definitions and reconciliations of these non-GAAP measures to the most comparable GAAP measures.
INVESTOR CONFERENCE CALL
We will host a conference call to discuss our second quarter results on August 6, 2024, 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 13743682.
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 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 or otherwise, manufacturer recalls, disruption in the supply of new vehicles, including due to labor actions 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, pandemic diseases such as COVID-19, natural disasters, military conflicts, including the ongoing military conflicts in the Middle East and 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 a global pandemic such as COVID-19, inflation, the ongoing military conflicts in the Middle East and 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 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 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 assumptions and estimates that are used in our impairment testing for goodwill or intangible assets, which could result in a significant impairment of our goodwill or intangible assets; 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 Part II, Item 7, in "Risk Factors," set forth in Part I, 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”), as well as in similarly titled sections set forth in Part I, Item 2 and Part II, Item 1A of our subsequently filed quarterly reports, 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 | James Tomlinson, ABGPress@edelman.com |
| *** Tables 1 - 6 and Appendix I attached *** | |
| Table 1 | |||||||||||||||||||
| Avis Budget Group, Inc. SUMMARY DATA SHEET (Unaudited) (In millions, except per share data) | |||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||
| Income Statement and Other Items | |||||||||||||||||||
| Revenues | $ | 3,048 | $ | 3,123 | (2 | )% | $ | 5,599 | $ | 5,680 | (1 | )% | |||||||
| Income (loss) before income taxes | 27 | 598 | (95 | )% | (115 | ) | 995 | (112 | )% | ||||||||||
| Net income (loss) | 15 | 436 | (97 | )% | (98 | ) | 748 | (113 | )% | ||||||||||
| Earnings (loss) per share - diluted | 0.41 | 11.01 | (96 | )% | (2.80 | ) | 18.93 | (115 | )% | ||||||||||
| Adjusted EBITDA(a) | 214 | 737 | (71 | )% | 226 | 1,272 | (82 | )% | |||||||||||
| As of | |||||||||||||||||||
| June 30, 2024 | December 31, 2023 | ||||||||||||||||||
| Balance Sheet Items | |||||||||||||||||||
| Cash and Cash Equivalents | $ | 511 | $ | 555 | |||||||||||||||
| Program cash and restricted cash | 72 | 89 | |||||||||||||||||
| Vehicles, net | 22,474 | 21,240 | |||||||||||||||||
| Debt under vehicle programs | 19,534 | 18,937 | |||||||||||||||||
| Corporate debt | 5,261 | 4,823 | |||||||||||||||||
| Stockholders' equity attributable to Avis Budget Group, Inc. | (490 | ) | (349 | ) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||
| Segment Results | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Americas | $ | 2,361 | $ | 2,428 | (3 | )% | $ | 4,354 | $ | 4,444 | (2 | )% | |||||||||
| International | 687 | 695 | (1 | )% | 1,245 | 1,236 | 1 | % | |||||||||||||
| Corporate and Other | - | - | n/m | - | - | n/m | |||||||||||||||
| Total Company | $ | 3,048 | $ | 3,123 | (2 | )% | $ | 5,599 | $ | 5,680 | (1 | )% | |||||||||
| Adjusted EBITDA(a) | |||||||||||||||||||||
| Americas | $ | 186 | $ | 631 | (71 | )% | $ | 230 | $ | 1,147 | (80 | )% | |||||||||
| International | 48 | 126 | (62 | )% | 33 | 176 | (81 | )% | |||||||||||||
| Corporate and Other | (20 | ) | (20 | ) | - | % | (37 | ) | (51 | ) | 27 | % | |||||||||
| Total Company | $ | 214 | $ | 737 | (71 | )% | $ | 226 | $ | 1,272 | (82 | )% | |||||||||
| _______ | |
| 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. |
| Table 2 | ||||||||||||
Avis Budget Group, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except per share data) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenues | $ | 3,048 | $ | 3,123 | $ | 5,599 | $ | 5,680 | ||||
| Expenses | ||||||||||||
| Operating | 1,532 | 1,475 | 2,876 | 2,782 | ||||||||
| Vehicle depreciation and lease charges, net | 733 | 375 | 1,369 | 640 | ||||||||
| Selling, general and administrative | 348 | 378 | 673 | 702 | ||||||||
| Vehicle interest, net | 244 | 172 | 483 | 305 | ||||||||
| Non-vehicle related depreciation and amortization | 58 | 52 | 119 | 108 | ||||||||
| Interest expense related to corporate debt, net: | ||||||||||||
| Interest expense | 88 | 68 | 171 | 141 | ||||||||
| Early extinguishment of debt | 1 | - | 1 | - | ||||||||
| Restructuring and other related charges | 14 | 1 | 17 | 5 | ||||||||
| Transaction-related costs, net | 1 | - | 2 | - | ||||||||
| Other (income) expense, net | 2 | 4 | 3 | 2 | ||||||||
| Total expenses | 3,021 | 2,525 | 5,714 | 4,685 | ||||||||
| Income (loss) before income taxes | 27 | 598 | (115 | ) | 995 | |||||||
| Provision for (benefit from) income taxes | 12 | 162 | (17 | ) | 247 | |||||||
| Net income (loss) | 15 | 436 | (98 | ) | 748 | |||||||
| Less: net income attributable to non-controlling interests | 1 | 1 | 2 | 1 | ||||||||
| Net income (loss) attributable to Avis Budget Group, Inc. | $ | 14 | $ | 435 | $ | (100 | ) | $ | 747 | |||
| Earnings (loss) per share | ||||||||||||
| Basic | $ | 0.41 | $ | 11.13 | $ | (2.80 | ) | $ | 19.16 | |||
| Diluted | $ | 0.41 | $ | 11.01 | $ | (2.80 | ) | $ | 18.93 | |||
| Weighted average shares outstanding | ||||||||||||
| Basic | 35.6 | 39.1 | 35.6 | 39.0 | ||||||||
| Diluted | 35.7 | 39.5 | 35.6 | 39.5 | ||||||||
| Table 3 | |||||||||||||||||||||
Avis Budget Group, Inc. KEY METRICS SUMMARY (Unaudited) | |||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||
| Americas | |||||||||||||||||||||
| Rental Days (000’s) | 32,940 | 32,708 | 1 | % | 62,632 | 60,982 | 3 | % | |||||||||||||
| Revenue per Day | $ | 71.67 | $ | 74.23 | (3 | )% | $ | 69.51 | $ | 72.87 | (5 | )% | |||||||||
| Revenue per Day, excluding exchange rate effects | $ | 71.74 | $ | 74.23 | (3 | )% | $ | 69.55 | $ | 72.87 | (5 | )% | |||||||||
| Average Rental Fleet | 515,852 | 506,232 | 2 | % | 506,583 | 479,383 | 6 | % | |||||||||||||
| Vehicle Utilization | 70.2 | % | 71.0 | % | (0.8) pps | 67.9 | % | 70.3 | % | (2.4) pps | |||||||||||
| Per-Unit Fleet Costs per Month | $ | 361 | $ | 168 | 115 | % | $ | 344 | $ | 149 | 131 | % | |||||||||
| Per-Unit Fleet Costs per Month, excluding exchange rate effects | $ | 362 | $ | 168 | 115 | % | $ | 344 | $ | 149 | 131 | % | |||||||||
| International | |||||||||||||||||||||
| Rental Days (000’s) | 12,094 | 11,504 | 5 | % | 22,454 | 21,466 | 5 | % | |||||||||||||
| Revenue per Day | $ | 56.85 | $ | 60.47 | (6 | )% | $ | 55.47 | $ | 57.60 | (4 | )% | |||||||||
| Revenue per Day, excluding exchange rate effects | $ | 57.47 | $ | 60.47 | (5 | )% | $ | 55.82 | $ | 57.60 | (3 | )% | |||||||||
| Average Rental Fleet | 189,293 | 183,251 | 3 | % | 179,682 | 175,774 | 2 | % | |||||||||||||
| Vehicle Utilization | 70.2 | % | 69.0 | % | 1.2 pps | 68.7 | % | 67.5 | % | 1.2 pps | |||||||||||
| Per-Unit Fleet Costs per Month | $ | 305 | $ | 219 | 39 | % | $ | 299 | $ | 200 | 50 | % | |||||||||
| Per-Unit Fleet Costs per Month, excluding exchange rate effects | $ | 308 | $ | 219 | 41 | % | $ | 299 | $ | 200 | 50 | % | |||||||||
| Total | |||||||||||||||||||||
| Rental Days (000’s) | 45,034 | 44,212 | 2 | % | 85,086 | 82,448 | 3 | % | |||||||||||||
| Revenue per Day | $ | 67.69 | $ | 70.65 | (4 | )% | $ | 65.81 | $ | 68.90 | (4 | )% | |||||||||
| Revenue per Day, excluding exchange rate effects | $ | 67.91 | $ | 70.65 | (4 | )% | $ | 65.93 | $ | 68.90 | (4 | )% | |||||||||
| Average Rental Fleet | 705,145 | 689,483 | 2 | % | 686,265 | 655,157 | 5 | % | |||||||||||||
| Vehicle Utilization | 70.2 | % | 70.5 | % | (0.3) pps | 68.1 | % | 69.5 | % | (1.4) pps | |||||||||||
| Per-Unit Fleet Costs per Month | $ | 346 | $ | 182 | 90 | % | $ | 332 | $ | 163 | 104 | % | |||||||||
| Per-Unit Fleet Costs per Month, excluding exchange rate effects | $ | 347 | $ | 182 | 91 | % | $ | 333 | $ | 163 | 104 | % | |||||||||
| _______ | |||||||||||||||||||||
| 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 | Six Months Ended June 30, 2024 | ||
| Operating Activities | |||
| Net cash provided by operating activities | $ | 1,473 | |
| Investing Activities | |||
| Net cash used in investing activities exclusive of vehicle programs | (99 | ) | |
| Net cash used in investing activities of vehicle programs | (2,456 | ) | |
| Net cash used in investing activities | (2,555 | ) | |
| Financing Activities | |||
| Net cash provided by financing activities exclusive of vehicle programs | 447 | ||
| Net cash provided by financing activities of vehicle programs | 589 | ||
| Net cash provided by financing activities | 1,036 | ||
| Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | (15 | ) | |
| Net change in cash and cash equivalents, program and restricted cash | (61 | ) | |
| Cash and cash equivalents, program and restricted cash, beginning of period | 644 | ||
| Cash and cash equivalents, program and restricted cash, end of period | $ | 583 | |
| ADJUSTED FREE CASH FLOW(a) | |||
| Adjusted EBITDA(b) | $ | 226 | |
| Interest expense related to corporate debt, net (excluding early extinguishment of debt) | (171 | ) | |
| Working capital and other | 88 | ||
| Capital expenditures(c) | (108 | ) | |
| Tax payments, net of refunds | (23 | ) | |
| Vehicle programs and related(d) | (480 | ) | |
| Adjusted Free Cash Flow(b) | $ | (468 | ) |
| Acquisition and related payments, net of acquired cash | (1 | ) | |
| Borrowings, net of debt repayments | 479 | ||
| Repurchases of common stock | (16 | ) | |
| Change in program and restricted cash | (15 | ) | |
| Other receipts (payments), net | (10 | ) | |
| Foreign exchange effects, financing costs and other | (30 | ) | |
| Net change in cash and cash equivalents, program and restricted cash (per above) | $ | (61 | ) |
| _______ | |
| 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 (loss) 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 June 30, | Six Months Ended June 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Reconciliation of Net income (loss) to Adjusted EBITDA: | ||||||||||||
| Net income (loss) | $ | 15 | $ | 436 | $ | (98 | ) | $ | 748 | |||
| Provision for (benefit from) income taxes | 12 | 162 | (17 | ) | 247 | |||||||
| Income (loss) before income taxes | 27 | 598 | (115 | ) | 995 | |||||||
| Non-vehicle related depreciation and amortization | 58 | 52 | 119 | 108 | ||||||||
| Interest expense related to corporate debt, net: | ||||||||||||
| Interest expense | 88 | 68 | 171 | 141 | ||||||||
| Early extinguishment of debt | 1 | - | 1 | - | ||||||||
| Restructuring and other related charges | 14 | 1 | 17 | 5 | ||||||||
| Transaction-related costs, net | 1 | - | 2 | - | ||||||||
| Other (income) expense, net | 2 | 4 | 3 | 2 | ||||||||
| Reported within operating expenses: | ||||||||||||
| Cloud computing costs | 11 | 9 | 21 | 16 | ||||||||
| Legal matters, net | 12 | 5 | 7 | 5 | ||||||||
| Adjusted EBITDA | $ | 214 | $ | 737 | $ | 226 | $ | 1,272 | ||||
| Reconciliation of Net cash provided by operating activities to Adjusted Free Cash Flow: | ||||||||||||
| Net cash provided by operating activities | $ | 1,473 | ||||||||||
| Net cash used in investing activities of vehicle programs | (2,456 | ) | ||||||||||
| Net cash provided by financing activities of vehicle programs | 589 | |||||||||||
| Capital expenditures | (98 | ) | ||||||||||
| Proceeds received on sale of assets and nonmarketable equity securities | 1 | |||||||||||
| Acquisition and disposition-related payments | (2 | ) | ||||||||||
| Change in program and restricted cash | 15 | |||||||||||
| Other receipts (payments), net | 10 | |||||||||||
| Adjusted Free Cash Flow | $ | (468 | ) | |||||||||
| _______ |
| Refer to Appendix I for the definitions of Adjusted EBITDA and Adjusted Free Cash Flow, non-GAAP financial measures. Adjusted EBITDA 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 June 30, 2024 | Three Months Ended June 30, 2023 | ||||||||||||||||||||||
| Americas | International | Total | Americas | International | Total | ||||||||||||||||||
| Revenue per Day (RPD) | |||||||||||||||||||||||
| Revenue | $ | 2,361 | $ | 687 | $ | 3,048 | $ | 2,428 | $ | 695 | $ | 3,123 | |||||||||||
| Currency exchange rate effects | 2 | 8 | 10 | - | - | - | |||||||||||||||||
| Revenue excluding exchange rate effects | $ | 2,363 | $ | 695 | $ | 3,058 | $ | 2,428 | $ | 695 | $ | 3,123 | |||||||||||
| Rental days (000's) | 32,940 | 12,094 | 45,034 | 32,708 | 11,504 | 44,212 | |||||||||||||||||
| RPD excluding exchange rate effects (in $'s) | $ | 71.74 | $ | 57.47 | $ | 67.91 | $ | 74.23 | $ | 60.47 | $ | 70.65 | |||||||||||
| Vehicle Utilization | |||||||||||||||||||||||
| Rental days (000's) | 32,940 | 12,094 | 45,034 | 32,708 | 11,504 | 44,212 | |||||||||||||||||
| Average rental fleet | 515,852 | 189,293 | 705,145 | 506,232 | 183,251 | 689,483 | |||||||||||||||||
| Number of days in period | 91 | 91 | 91 | 91 | 91 | 91 | |||||||||||||||||
| Available rental days (000's) | 46,943 | 17,226 | 64,169 | 46,067 | 16,676 | 62,743 | |||||||||||||||||
| Vehicle utilization | 70.2 | % | 70.2 | % | 70.2 | % | 71.0 | % | 69.0 | % | 70.5 | % | |||||||||||
| Per-Unit Fleet Costs | |||||||||||||||||||||||
| Vehicle depreciation and lease charges, net | $ | 559 | $ | 174 | $ | 733 | $ | 255 | $ | 120 | $ | 375 | |||||||||||
| Currency exchange rate effects | 1 | 1 | 2 | - | - | - | |||||||||||||||||
| Vehicle depreciation excluding exchange rate effects | $ | 560 | $ | 175 | $ | 735 | $ | 255 | $ | 120 | $ | 375 | |||||||||||
| Average rental fleet | 515,852 | 189,293 | 705,145 | 506,232 | 183,251 | 689,483 | |||||||||||||||||
| Per-unit fleet costs (in $'s) | $ | 1,085 | $ | 924 | $ | 1,042 | $ | 504 | $ | 657 | $ | 545 | |||||||||||
| Number of months in period | 3 | 3 | 3 | 3 | 3 | 3 | |||||||||||||||||
| Per-unit fleet costs per month excluding exchange rate effects (in $'s) | $ | 362 | $ | 308 | $ | 347 | $ | 168 | $ | 219 | $ | 182 | |||||||||||
| Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | ||||||||||||||||||||||
| Americas | International | Total | Americas | International | Total | ||||||||||||||||||
| Revenue per Day (RPD) | |||||||||||||||||||||||
| Revenue | $ | 4,354 | $ | 1,245 | $ | 5,599 | $ | 4,444 | $ | 1,236 | $ | 5,680 | |||||||||||
| Currency exchange rate effects | 2 | 8 | 10 | - | - | - | |||||||||||||||||
| Revenue excluding exchange rate effects | $ | 4,356 | $ | 1,253 | $ | 5,609 | $ | 4,444 | $ | 1,236 | $ | 5,680 | |||||||||||
| Rental days (000's) | 62,632 | 22,454 | 85,086 | 60,982 | 21,466 | 82,448 | |||||||||||||||||
| RPD excluding exchange rate effects (in $'s) | $ | 69.55 | $ | 55.82 | $ | 65.93 | $ | 72.87 | $ | 57.60 | $ | 68.90 | |||||||||||
| Vehicle Utilization | |||||||||||||||||||||||
| Rental days (000's) | 62,632 | 22,454 | 85,086 | 60,982 | 21,466 | 82,448 | |||||||||||||||||
| Average rental fleet | 506,583 | 179,682 | 686,265 | 479,383 | 175,774 | 655,157 | |||||||||||||||||
| Number of days in period | 182 | 182 | 182 | 181 | 181 | 181 | |||||||||||||||||
| Available rental days (000's) | 92,198 | 32,702 | 124,900 | 86,768 | 31,815 | 118,583 | |||||||||||||||||
| Vehicle utilization | 67.9 | % | 68.7 | % | 68.1 | % | 70.3 | % | 67.5 | % | 69.5 | % | |||||||||||
| Per-Unit Fleet Costs | |||||||||||||||||||||||
| Vehicle depreciation and lease charges, net | $ | 1,046 | $ | 323 | $ | 1,369 | $ | 429 | $ | 211 | $ | 640 | |||||||||||
| Currency exchange rate effects | 1 | - | 1 | - | - | - | |||||||||||||||||
| Vehicle depreciation excluding exchange rate effects | $ | 1,047 | $ | 323 | $ | 1,370 | $ | 429 | $ | 211 | $ | 640 | |||||||||||
| Average rental fleet | 506,583 | 179,682 | 686,265 | 479,383 | 175,774 | 655,157 | |||||||||||||||||
| Per-unit fleet costs (in $'s) | $ | 2,066 | $ | 1,796 | $ | 1,995 | $ | 895 | $ | 1,199 | $ | 977 | |||||||||||
| Number of months in period | 6 | 6 | 6 | 6 | 6 | 6 | |||||||||||||||||
| Per-unit fleet costs per month excluding exchange rate effects (in $'s) | $ | 344 | $ | 299 | $ | 333 | $ | 149 | $ | 200 | $ | 163 | |||||||||||
| 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; any impairment charges; restructuring and other related charges; early extinguishment of debt costs; non-vehicle related interest; transaction-related costs, net; legal matters, which includes amounts recorded in excess of
We believe Adjusted EBITDA is useful to investors 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 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 debt extinguishment costs, transaction-related costs, restructuring and other related charges, charges for legal matters, net, which includes amounts recorded in excess of
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.
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.
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) Q2 2024 revenue and net income?
How did Avis Budget Group's (CAR) rental days perform in Q2 2024 compared to Q2 2023?
What was Avis Budget Group's (CAR) vehicle utilization rate in Q2 2024?
How much liquidity did Avis Budget Group (CAR) have at the end of Q2 2024?
