Avis Budget Group Reports Third Quarter Results
Avis Budget Group reported Q3 2024 financial results with revenues of $3.5 billion, net income of $238 million, and Adjusted EBITDA of $503 million. The company maintained stable pricing with Americas nearly flat, while improving vehicle utilization by approximately 2 points. Adjusted EBITDA reached $384 million in Americas and $139 million in International, with the latter showing a 5% increase in rental days. The company issued $700 million in unsecured Senior Notes and repurchased about 526,000 shares for nearly $43 million. Quarter-end liquidity exceeded $1.2 billion, with an additional $3.2 billion in fleet funding capacity.
Avis Budget Group ha riportato i risultati finanziari del terzo trimestre del 2024, con ricavi di 3,5 miliardi di dollari, un reddito netto di 238 milioni di dollari e un EBITDA aggiustato di 503 milioni di dollari. L'azienda ha mantenuto prezzi stabili con le Americhe quasi invariate, migliorando al contempo l'utilizzo dei veicoli di circa 2 punti. L'EBITDA aggiustato ha raggiunto 384 milioni di dollari nelle Americhe e 139 milioni di dollari nell'Internazionale, con quest'ultima che ha registrato un aumento del 5% nei giorni di noleggio. L'azienda ha emesso 700 milioni di dollari in obbligazioni Senior non garantite e ha riacquistato circa 526.000 azioni per quasi 43 milioni di dollari. La liquidità a fine trimestre ha superato 1,2 miliardi di dollari, con ulteriori 3,2 miliardi di dollari in capacità di finanziamento per la flotta.
Avis Budget Group informó los resultados financieros del tercer trimestre de 2024, con ingresos de 3.5 mil millones de dólares, un ingreso neto de 238 millones de dólares, y un EBITDA ajustado de 503 millones de dólares. La empresa mantuvo precios estables con las Américas prácticamente sin cambios, mientras mejoraba la utilización de vehículos en aproximadamente 2 puntos. El EBITDA ajustado alcanzó 384 millones de dólares en las Américas y 139 millones de dólares en Internacional, siendo este último con un aumento del 5% en los días de alquiler. La compañía emitió 700 millones de dólares en Notas Séniores no garantizadas y recompró alrededor de 526,000 acciones por casi 43 millones de dólares. La liquidez al final del trimestre superó 1.2 mil millones de dólares, con 3.2 mil millones de dólares adicionales en capacidad de financiación de flota.
아비스 예산 그룹은 2024년 3분기 재무 결과를 보고하며, 수익이 35억 달러, 순이익이 2억 3800만 달러, 조정된 EBITDA가 5억 300만 달러라고 밝혔습니다. 이 회사는 미주 지역에서 가격을 거의 유지하면서 차량 활용도를 약 2포인트 향상시켰습니다. 조정된 EBITDA는 미주에서 3억 8400만 달러, 해외에서 1억 3900만 달러에 도달하며, 후자는 렌탈 일수에서 5% 증가를 보였습니다. 회사는 비보장 선순위 채권 7억 달러를 발행하고 약 4300만 달러에 526,000주를 재매입했습니다. 분기 종료 시 유동성은 12억 달러를 초과하며, 함대 자금 조달 능력으로 추가 32억 달러를 보유하고 있습니다.
Avis Budget Group a publié les résultats financiers du troisième trimestre 2024 avec des revenus de 3,5 milliards de dollars, un bénéfice net de 238 millions de dollars et un EBITDA ajusté de 503 millions de dollars. L'entreprise a maintenu des prix stables avec les Amériques quasiment inchangées, tout en améliorant l'utilisation des véhicules d'environ 2 points. L'EBITDA ajusté a atteint 384 millions de dollars en Amériques et 139 millions de dollars à l'international, ce dernier affichant une augmentation de 5% des jours de location. L'entreprise a émis 700 millions de dollars en obligations Senior non sécurisées et a racheté environ 526 000 actions pour près de 43 millions de dollars. La liquidité à la fin du trimestre a dépassé 1,2 milliard de dollars, avec une capacité de financement de flotte supplémentaire de 3,2 milliards de dollars.
Avis Budget Group berichtete über die Finanzzahlen für das dritte Quartal 2024 mit Einnahmen von 3,5 Milliarden Dollar, einem Nettogewinn von 238 Millionen Dollar und einem angepassten EBITDA von 503 Millionen Dollar. Das Unternehmen hielt die Preise stabil, wobei die Einnahmen in den Amerikas nahezu konstant blieben, während die Fahrzeugnutzung um etwa 2 Punkte verbessert wurde. Das angepasste EBITDA erreichte 384 Millionen Dollar in den Amerikas und 139 Millionen Dollar im Internationalen, wobei letzterer einen Anstieg der Miettage um 5% verzeichnete. Das Unternehmen gab 700 Millionen Dollar in unbesicherten Senior Notes aus und kaufte etwa 526.000 Aktien für nahezu 43 Millionen Dollar zurück. Die Liquidität zum Ende des Quartals überstieg 1,2 Milliarden Dollar, mit zusätzlichem 3,2 Milliarden Dollar an Finanzierungskapazität für die Flotte.
- Strong liquidity position of over $1.2 billion with additional $3.2 billion fleet funding capacity
- Vehicle utilization improved by 2 points company-wide
- International segment showed 5% increase in rental days
- Successful $700 million Senior Notes issuance
- Overall pricing down 2% compared to Q3 2023
- Higher fleet costs in Americas segment compared to Q3 2023
Insights
Avis Budget Group's Q3 results show a mixed performance with some concerning trends.
The debt refinancing through
Regional performance diverged, with International showing growth in rental days while Americas focused on pricing discipline. The strategic emphasis on fleet efficiency and utilization improvements across both segments partially offset cost pressures.
PARSIPPANY, N.J., Oct. 31, 2024 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) announced financial results for third quarter 2024 today.
We ended the quarter with revenues of nearly
“We maintained a strong focus on pricing throughout the quarter, prioritizing higher margin business which allowed us to keep our revenue per day stable with the Americas nearly flat,” said Joe Ferraro, Avis Budget Group Chief Executive Officer. “Vehicle utilization improved by approximately 2 points throughout the Company as we exercised strong fleet discipline. Our U.S. model year 2025 buy is well underway and expected to drive significant savings as these vehicles are rotated into our fleet. Lastly, the holidays look strong, and we believe we are well positioned to capitalize on this demand.”
Q3 HIGHLIGHTS
- Revenues of nearly
$3.5 billion with pricing down2% and rental days in line with third quarter 2023. - Adjusted EBITDA in the Americas was
$384 million , driven by an improvement of vehicle utilization of more than one point and strong summer pricing, offset by higher fleet costs as compared to third quarter 2023. - Adjusted EBITDA in International was
$139 million , driven by a5% increase in rental days as well as vehicle utilization improvement of more than three points as compared to third quarter 2023. - Issued
$700 million of unsecured Senior Notes and used the proceeds to repay outstanding borrowings under our secured floating rate term loan due 2029 in October with the additional proceeds invested in our fleet. - We repurchased approximately 526,000 shares of common stock for a total of nearly
$43 million through October 30th.
Our liquidity position, including committed and uncommitted facilities, at the end of the quarter was over
______________________
1Adjusted 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 third quarter results on November 1, 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 13743687.
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, pandemics, severe weather events or 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 pandemics, 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 | 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, except per share data) | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||
Income Statement and Other Items | ||||||||||||||||||
Revenues | $ | 3,480 | $ | 3,564 | (2)% | $ | 9,079 | $ | 9,244 | (2)% | ||||||||
Income before income taxes | 329 | 757 | (57)% | 214 | 1,752 | (88)% | ||||||||||||
Net income | 238 | 627 | (62)% | 140 | 1,375 | (90)% | ||||||||||||
Adjusted EBITDA (a) | 503 | 907 | (45)% | 729 | 2,179 | (67)% | ||||||||||||
As of | ||||||||||||||||||
September 30, 2024 | December 31, 2023 | |||||||||||||||||
Balance Sheet Items | ||||||||||||||||||
Cash and cash equivalents | $ | 602 | $ | 555 | ||||||||||||||
Program cash and restricted cash | 47 | 89 | ||||||||||||||||
Vehicles, net | 21,352 | 21,240 | ||||||||||||||||
Debt under vehicle programs | 17,893 | 18,937 | ||||||||||||||||
Corporate debt | 6,005 | 4,823 | ||||||||||||||||
Stockholders' equity attributable to Avis Budget Group, Inc. | (238 | ) | (349 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||
Segment Results | |||||||||||||||||||
Revenues | |||||||||||||||||||
Americas | $ | 2,640 | $ | 2,736 | (4)% | $ | 6,994 | $ | 7,180 | (3)% | |||||||||
International | 840 | 828 | 2,085 | 2,064 | |||||||||||||||
Corporate and Other | — | — | n/m | — | — | n/m | |||||||||||||
Total Company | $ | 3,480 | $ | 3,564 | (2)% | $ | 9,079 | $ | 9,244 | (2)% | |||||||||
Adjusted EBITDA (a) | |||||||||||||||||||
Americas | $ | 384 | $ | 740 | (48)% | $ | 614 | $ | 1,887 | (67)% | |||||||||
International | 139 | 196 | (29)% | 172 | 372 | (54)% | |||||||||||||
Corporate and Other | (20 | ) | (29 | ) | (57 | ) | (80 | ) | |||||||||||
Total Company | $ | 503 | $ | 907 | (45)% | $ | 729 | $ | 2,179 | (67)% |
_______ | |
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 September 30, | Nine Months Ended September 30, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Revenues | $ | 3,480 | $ | 3,564 | $ | 9,079 | $ | 9,244 | |||
Expenses | |||||||||||
Operating | 1,575 | 1,543 | 4,451 | 4,325 | |||||||
Vehicle depreciation and lease charges, net | 806 | 517 | 2,175 | 1,157 | |||||||
Selling, general and administrative | 367 | 397 | 1,040 | 1,099 | |||||||
Vehicle interest, net | 241 | 208 | 724 | 513 | |||||||
Non-vehicle related depreciation and amortization | 58 | 55 | 177 | 163 | |||||||
Interest expense related to corporate debt, net: | |||||||||||
Interest expense | 95 | 80 | 266 | 221 | |||||||
Early extinguishment of debt | — | 1 | 1 | 1 | |||||||
Restructuring and other related charges | 6 | 2 | 23 | 7 | |||||||
Transaction-related costs, net | — | 3 | 2 | 3 | |||||||
Other (income) expense, net | 3 | 1 | 6 | 3 | |||||||
Total expenses | 3,151 | 2,807 | 8,865 | 7,492 | |||||||
Income before income taxes | 329 | 757 | 214 | 1,752 | |||||||
Provision for income taxes | 91 | 130 | 74 | 377 | |||||||
Net income | 238 | 627 | 140 | 1,375 | |||||||
Less: net income attributable to non-controlling interests | 1 | 1 | 3 | 2 | |||||||
Net income attributable to Avis Budget Group, Inc. | $ | 237 | $ | 626 | $ | 137 | $ | 1,373 | |||
Earnings per share | |||||||||||
Basic | $ | 6.67 | $ | 16.96 | $ | 3.86 | $ | 35.11 | |||
Diluted | $ | 6.65 | $ | 16.78 | $ | 3.84 | $ | 34.71 | |||
Weighted average shares outstanding | |||||||||||
Basic | 35.5 | 36.9 | 35.6 | 39.1 | |||||||
Diluted | 35.7 | 37.3 | 35.8 | 39.5 | |||||||
Table 3
Avis Budget Group, Inc. KEY METRICS SUMMARY (Unaudited) | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||
Americas | |||||||||||||||||||||
Rental Days (000’s) | 34,922 | 35,670 | (2 | )% | 97,554 | 96,652 | 1 | % | |||||||||||||
Revenue per Day | $ | 75.61 | $ | 76.70 | (1 | )% | $ | 71.70 | $ | 74.29 | (3 | )% | |||||||||
Revenue per Day, excluding exchange rate effects | $ | 75.71 | $ | 76.70 | (1 | )% | $ | 71.75 | $ | 74.29 | (3 | )% | |||||||||
Average Rental Fleet | 531,261 | 551,739 | (4 | )% | 514,809 | 503,502 | 2 | % | |||||||||||||
Vehicle Utilization | 71.5 | % | 70.3 | % | 1.2 pps | 69.2 | % | 70.3 | % | (1.1) pps | |||||||||||
Per-Unit Fleet Costs per Month | $ | 384 | $ | 219 | 75 | % | $ | 358 | $ | 175 | 105 | % | |||||||||
Per-Unit Fleet Costs per Month, excluding exchange rate effects | $ | 385 | $ | 219 | 76 | % | $ | 358 | $ | 175 | 105 | % | |||||||||
International | |||||||||||||||||||||
Rental Days (000’s) | 13,864 | 13,160 | 5 | % | 36,318 | 34,626 | 5 | % | |||||||||||||
Revenue per Day | $ | 60.52 | $ | 62.86 | (4 | )% | $ | 57.40 | $ | 59.60 | (4 | )% | |||||||||
Revenue per Day, excluding exchange rate effects | $ | 59.86 | $ | 62.86 | (5 | )% | $ | 57.36 | $ | 59.60 | (4 | )% | |||||||||
Average Rental Fleet | 204,580 | 202,700 | 1 | % | 187,981 | 184,750 | 2 | % | |||||||||||||
Vehicle Utilization | 73.7 | % | 70.6 | % | 3.1 pps | 70.5 | % | 68.7 | % | 1.8 pps | |||||||||||
Per-Unit Fleet Costs per Month | $ | 316 | $ | 254 | 24 | % | $ | 305 | $ | 220 | 39 | % | |||||||||
Per-Unit Fleet Costs per Month, excluding exchange rate effects | $ | 312 | $ | 254 | 23 | % | $ | 304 | $ | 220 | 38 | % | |||||||||
Total | |||||||||||||||||||||
Rental Days (000’s) | 48,786 | 48,830 | — | % | 133,872 | 131,278 | 2 | % | |||||||||||||
Revenue per Day | $ | 71.32 | $ | 72.97 | (2 | )% | $ | 67.82 | $ | 70.41 | (4 | )% | |||||||||
Revenue per Day, excluding exchange rate effects | $ | 71.21 | $ | 72.97 | (2 | )% | $ | 67.85 | $ | 70.41 | (4 | )% | |||||||||
Average Rental Fleet | 735,841 | 754,439 | (2 | )% | 702,790 | 688,252 | 2 | % | |||||||||||||
Vehicle Utilization | 72.1 | % | 70.4 | % | 1.7 pps | 69.5 | % | 69.9 | % | (0.4) pps | |||||||||||
Per-Unit Fleet Costs per Month | $ | 365 | $ | 228 | 60 | % | $ | 344 | $ | 187 | 84 | % | |||||||||
Per-Unit Fleet Costs per Month, excluding exchange rate effects | $ | 364 | $ | 228 | 60 | % | $ | 344 | $ | 187 | 84 | % | |||||||||
_______ | |||||||||||||||||||||
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 | Nine Months Ended September 30, 2024 | ||
Operating Activities | |||
Net cash provided by operating activities | $ | 2,746 | |
Investing Activities | |||
Net cash used in investing activities exclusive of vehicle programs | (124 | ) | |
Net cash used in investing activities of vehicle programs | (2,572 | ) | |
Net cash used in investing activities | (2,696 | ) | |
Financing Activities | |||
Net cash provided by financing activities exclusive of vehicle programs | 1,121 | ||
Net cash used in financing activities of vehicle programs | (1,164 | ) | |
Net cash used in financing activities | (43 | ) | |
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | (2 | ) | |
Net change in cash and cash equivalents, program and restricted cash | 5 | ||
Cash and cash equivalents, program and restricted cash, beginning of period | 644 | ||
Cash and cash equivalents, program and restricted cash, end of period | $ | 649 |
ADJUSTED FREE CASH FLOW (a) | Nine Months Ended September 30, 2024 | ||
Adjusted EBITDA (b) | $ | 729 | |
Interest expense related to corporate debt, net (excluding early extinguishment of debt) | (266 | ) | |
Working capital and other | (51 | ) | |
Capital expenditures (c) | (148 | ) | |
Tax payments, net of refunds | (36 | ) | |
Vehicle programs and related (d) | (1,296 | ) | |
Adjusted Free Cash Flow (b) | $ | (1,068 | ) |
Acquisition and related payments, net of acquired cash | (2 | ) | |
Borrowings, net of debt repayments | 1,173 | ||
Repurchases of common stock | (25 | ) | |
Change in program and restricted cash | (42 | ) | |
Other receipts (payments), net | (8 | ) | |
Foreign exchange effects, financing costs and other | (23 | ) | |
Net change in cash and cash equivalents, program and restricted cash (per above) | $ | 5 |
_______ | |
(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 September 30, | Nine Months Ended September 30, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Reconciliation of Net income to Adjusted EBITDA: | |||||||||||
Net income | $ | 238 | $ | 627 | $ | 140 | $ | 1,375 | |||
Provision for income taxes | 91 | 130 | 74 | 377 | |||||||
Income before income taxes | 329 | 757 | 214 | 1,752 | |||||||
Non-vehicle related depreciation and amortization | 58 | 55 | 177 | 163 | |||||||
Interest expense related to corporate debt, net: | |||||||||||
Interest expense | 95 | 80 | 266 | 221 | |||||||
Early extinguishment of debt | — | 1 | 1 | 1 | |||||||
Restructuring and other related charges | 6 | 2 | 23 | 7 | |||||||
Transaction-related costs, net | — | 3 | 2 | 3 | |||||||
Other (income) expense, net | 3 | 1 | 6 | 3 | |||||||
Reported within operating expenses: | |||||||||||
Cloud computing costs | 12 | 8 | 33 | 24 | |||||||
Legal matters, net | — | — | 7 | 5 | |||||||
Adjusted EBITDA | $ | 503 | $ | 907 | $ | 729 | $ | 2,179 |
Reconciliation of Net cash provided by operating activities to Adjusted Free Cash Flow: | ||||
Net cash provided by operating activities | $ | 2,746 | ||
Net cash used in investing activities of vehicle programs | (2,572 | ) | ||
Net cash used in financing activities of vehicle programs | (1,164 | ) | ||
Capital expenditures | (135 | ) | ||
Proceeds received on sale of assets and nonmarketable equity securities | 2 | |||
Acquisition and disposition-related payments | (2 | ) | ||
Change in program and restricted cash | 42 | |||
Dividends from equity method investments | 7 | |||
Other receipts (payments), net | 8 | |||
Adjusted Free Cash Flow | $ | (1,068 | ) |
_______ |
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 September 30, 2024 | Three Months Ended September 30, 2023 | ||||||||||||||||||||||
Americas | International | Total | Americas | International | Total | ||||||||||||||||||
Revenue per Day (RPD) | |||||||||||||||||||||||
Revenue | $ | 2,640 | $ | 840 | $ | 3,480 | $ | 2,736 | $ | 828 | $ | 3,564 | |||||||||||
Currency exchange rate effects | 4 | (10 | ) | (6 | ) | — | — | — | |||||||||||||||
Revenue excluding exchange rate effects | $ | 2,644 | $ | 830 | $ | 3,474 | $ | 2,736 | $ | 828 | $ | 3,564 | |||||||||||
Rental days (000's) | 34,922 | 13,864 | 48,786 | 35,670 | 13,160 | 48,830 | |||||||||||||||||
RPD excluding exchange rate effects (in $'s) | $ | 75.71 | $ | 59.86 | $ | 71.21 | $ | 76.70 | $ | 62.86 | $ | 72.97 | |||||||||||
Vehicle Utilization | |||||||||||||||||||||||
Rental days (000's) | 34,922 | 13,864 | 48,786 | 35,670 | 13,160 | 48,830 | |||||||||||||||||
Average rental fleet | 531,261 | 204,580 | 735,841 | 551,739 | 202,700 | 754,439 | |||||||||||||||||
Number of days in period | 92 | 92 | 92 | 92 | 92 | 92 | |||||||||||||||||
Available rental days (000's) | 48,876 | 18,821 | 67,697 | 50,760 | 18,648 | 69,408 | |||||||||||||||||
Vehicle utilization | 71.5 | % | 73.7 | % | 72.1 | % | 70.3 | % | 70.6 | % | 70.4 | % | |||||||||||
Per-Unit Fleet Costs | |||||||||||||||||||||||
Vehicle depreciation and lease charges, net | $ | 613 | $ | 193 | $ | 806 | $ | 362 | $ | 155 | $ | 517 | |||||||||||
Currency exchange rate effects | — | (2 | ) | (2 | ) | — | — | — | |||||||||||||||
Vehicle depreciation excluding exchange rate effects | $ | 613 | $ | 191 | $ | 804 | $ | 362 | $ | 155 | $ | 517 | |||||||||||
Average rental fleet | 531,261 | 204,580 | 735,841 | 551,739 | 202,700 | 754,439 | |||||||||||||||||
Per-unit fleet costs (in $'s) | $ | 1,154 | $ | 935 | $ | 1,093 | $ | 657 | $ | 763 | $ | 685 | |||||||||||
Number of months in period | 3 | 3 | 3 | 3 | 3 | 3 | |||||||||||||||||
Per-unit fleet costs per month excluding exchange rate effects (in $'s) | $ | 385 | $ | 312 | $ | 364 | $ | 219 | $ | 254 | $ | 228 |
Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | ||||||||||||||||||||||
Americas | International | Total | Americas | International | Total | ||||||||||||||||||
Revenue per Day (RPD) | |||||||||||||||||||||||
Revenue | $ | 6,994 | $ | 2,085 | $ | 9,079 | $ | 7,180 | $ | 2,064 | $ | 9,244 | |||||||||||
Currency exchange rate effects | 6 | (2 | ) | 4 | — | — | — | ||||||||||||||||
Revenue excluding exchange rate effects | $ | 7,000 | $ | 2,083 | $ | 9,083 | $ | 7,180 | $ | 2,064 | $ | 9,244 | |||||||||||
Rental days (000's) | 97,554 | 36,318 | 133,872 | 96,652 | 34,626 | 131,278 | |||||||||||||||||
RPD excluding exchange rate effects (in $'s) | $ | 71.75 | $ | 57.36 | $ | 67.85 | $ | 74.29 | $ | 59.60 | $ | 70.41 | |||||||||||
Vehicle Utilization | |||||||||||||||||||||||
Rental days (000's) | 97,554 | 36,318 | 133,872 | 96,652 | 34,626 | 131,278 | |||||||||||||||||
Average rental fleet | 514,809 | 187,981 | 702,790 | 503,502 | 184,750 | 688,252 | |||||||||||||||||
Number of days in period | 274 | 274 | 274 | 273 | 273 | 273 | |||||||||||||||||
Available rental days (000's) | 141,058 | 51,507 | 192,565 | 137,456 | 50,437 | 187,893 | |||||||||||||||||
Vehicle utilization | 69.2 | % | 70.5 | % | 69.5 | % | 70.3 | % | 68.7 | % | 69.9 | % | |||||||||||
Per-Unit Fleet Costs | |||||||||||||||||||||||
Vehicle depreciation and lease charges, net | $ | 1,659 | $ | 516 | $ | 2,175 | $ | 791 | $ | 366 | $ | 1,157 | |||||||||||
Currency exchange rate effects | 1 | (2 | ) | (1 | ) | — | — | — | |||||||||||||||
Vehicle depreciation excluding exchange rate effects | $ | 1,660 | $ | 514 | $ | 2,174 | $ | 791 | $ | 366 | $ | 1,157 | |||||||||||
Average rental fleet | 514,809 | 187,981 | 702,790 | 503,502 | 184,750 | 688,252 | |||||||||||||||||
Per-unit fleet costs (in $'s) | $ | 3,224 | $ | 2,734 | $ | 3,093 | $ | 1,574 | $ | 1,977 | $ | 1,681 | |||||||||||
Number of months in period | 9 | 9 | 9 | 9 | 9 | 9 | |||||||||||||||||
Per-unit fleet costs per month excluding exchange rate effects (in $'s) | $ | 358 | $ | 304 | $ | 344 | $ | 175 | $ | 220 | $ | 187 |
_______ | |||
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
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