Avis Budget Group Reports Third Quarter Results

Avis Budget Group, Inc.
Avis Budget Group, Inc.

In This Article:

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 $3.5 billion, net income of $238 million, and Adjusted EBITDA1 of $503 million.

“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 down 2% 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 a 5% 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 $1.2 billion, with an additional $3.2 billion of fleet funding capacity after giving effect to a reduction in our asset-backed variable-funding financing facilities effective November 1. We have well-laddered corporate debt and have no meaningful maturities until 2027.

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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.