CAR Q2 2024 Earnings

Call Details

• Call Title: Avis Budget Group Q2 2024 Earnings Call
• Date: August 6, 2024 at 12:30 PM UTC
• Management Team:
  • David Calabria (Senior Vice President of Corporate Finance)
  • Joe Ferraro (Chief Executive Officer)
  • Izzy Martins (Chief Financial Officer)

Call Summary

Financial Performance

• The company reported quarterly revenue of more than $3 billion and adjusted EBITDA of $214 million for Q2 2024.
• The Americas generated nearly $2.4 billion of revenue and $186 million of adjusted EBITDA in the quarter.
• International generated nearly $700 million of revenue and $48 million of adjusted EBITDA in the quarter.
• Rental days in the Americas were up 1% compared to Q2 2023, and international rental days were up 5% year over year on a constant currency basis.
• Company-wide utilization was 70.2% in Q2 2024, which was 1.2 points higher than Q2 2023.
• Revenue per day was down 4% in the quarter, which drove a $75 million reduction year over year in revenue contribution.
• Fleet holding costs, inclusive of interest expense, accounted for $430 million of the year-over-year decrease in adjusted EBITDA.

Guidance

• The company does not provide formal full-year guidance but provided directional third quarter commentary and a Q3 adjusted EBITDA range of $500 to $600 million.
• The company expects pricing for the company to be about flat for Q3 2024 with pricing improving sequentially exiting June and July showing gains for the Fourth of July holiday.
• The company expects utilization to be above prior year throughout Q3 2024.
• Vehicle interest is expected to remain similar per unit in the second half of 2024.
• Net depreciation per unit per month is expected to approximate $350 for the remainder of 2024.
• The company stated it is unable to reconcile forward-looking adjusted EBITDA to net income without unreasonable efforts.