Avis Budget - CAR STOCK NEWS

Avis Budget Group (NASDAQ: CAR) announced a private offering of $600 million in senior notes due 2029. The offering is contingent on market conditions and will be guaranteed by the company and select subsidiaries. Proceeds will be used to redeem outstanding 10.500% senior secured notes due 2025, along with related fees. The offering complies with Rule 144A and is not open to U.S. residents except under specific exemptions. The press release serves informational purposes and does not represent a solicitation for securities.

Avis Budget Group (NASDAQ: CAR) reported a 37% revenue decline in Q4 2020, resulting in a net loss of $90 million. Despite challenges from the COVID-19 pandemic, the company achieved a positive Adjusted EBITDA of $74 million through cost reductions exceeding $500 million.

For the full year, revenue dropped 41%, with a net loss of $684 million. The company maintained a liquidity position of $1.3 billion, enabling continued fleet investment for 2021. Leadership emphasized the strong performance in the Americas' Adjusted EBITDA margins, noting that effective cost management remains a key focus moving forward.

Avis Budget Group (NASDAQ: CAR) will announce its Q4 2020 and full year results on February 16, 2021, after market close. A conference call for institutional investors is scheduled for February 17, 2021, at 8:30 a.m. Eastern, where results will be discussed. The call can be accessed via ir.avisbudgetgroup.com or by calling (877)-407-2991. A web replay will be available afterward. Avis Budget operates over 11,000 rental locations across approximately 180 countries and is headquartered in Parsippany, N.J.

Avis Budget Group reported third quarter 2020 results with a net income of $45 million and adjusted net income of $79 million despite a 44% drop in revenue year-over-year. Positive adjusted EBITDA reached $220 million through aggressive cost-cutting, removing approximately $1 billion in costs during the quarter and $2 billion year-to-date. The company's liquidity position improved to $2.4 billion, enabling plans to reinvest in its 2021 fleet. Though the fourth quarter is expected to experience normal seasonal declines, Avis anticipates remaining positive in adjusted EBITDA and adjusted free cash flow.

Avis Budget Group (NASDAQ: CAR) will release its third quarter 2020 results on October 29, 2020, after market close. A conference call for institutional investors is scheduled for October 30, 2020, at 8:30 a.m. Eastern time. Investors can access the details through their website or by phone, with a replay available after the call. Avis Budget Group, a global mobility solutions provider with over 11,000 rental locations, operates under the Avis and Budget brands and manages Zipcar, the leading car-sharing network.

Zipcar has released its second annual Impact Report, highlighting the crucial role of car-sharing services amidst the COVID-19 pandemic. The findings indicate that 80% of urban residents view car access as essential, with many contemplating vehicle purchases due to the pandemic. The report emphasizes the environmental benefits of car sharing, noting that each Zipcar can replace 13 personally owned vehicles, thus reducing congestion and pollution. Moreover, Zipcar members save an average of $633 monthly compared to car owners, demonstrating a strong financial incentive for urban dwellers.

Avis Budget Group (NASDAQ: CAR) announced a leadership transition as John F. North III steps down as Chief Financial Officer, effective August 24, 2020. Brian Choi will take over the CFO role, resigning from the Board. North will remain as an advisor until year-end. CEO Joe Ferraro acknowledged North's contributions during challenging times, expressing confidence in the company's financial position. Choi, experienced in the car rental sector, is expected to help reshape the company post-pandemic. The Board will decrease from seven to six members following Choi’s resignation.

Avis Budget Group (NASDAQ: CAR) announced a private offering of $350 million in 5.75% senior notes due 2027, priced at 92% of their face value. The offering is an addition to previously issued senior notes from July 2019, totaling $400 million. Proceeds will be used to redeem $100 million of existing 5.50% senior notes due 2023, with the remainder allocated for corporate purposes. The offering is intended for qualified institutional buyers and will close on August 6, 2020, subject to conditions.

Avis Budget Group (NASDAQ: CAR) announced plans to offer $350 million in 5.75% senior notes due 2027. This move follows a previous issuance of $400 million in similar notes. The proceeds will primarily be used to redeem $100 million of existing 5.50% senior notes due 2023, with remaining funds allocated for general corporate purposes. The offering is targeted at qualified institutional buyers under Rule 144A, and the notes will not be registered under the Securities Act. Risks related to market conditions, including those stemming from the COVID-19 pandemic, may affect the offering.