CAR Q3 2024 Earnings

Call Details

• Call Title: Avis Budget Group Q3 2024 Earnings Call
• Date: November 1, 2024 at 12:30 PM UTC
• Management Team:
  • David Calabria (Treasurer and Senior Vice President, Corporate Finance)
  • Joe Ferraro (Chief Executive Officer)
  • Izzy Martins (Chief Financial Officer)

Call Summary

Financial Performance

• The company reported quarterly revenue of nearly $3.5B and adjusted EBITDA of $503M for Q3 2024.
• The Americas generated more than $2.6B of revenue and $384M of adjusted EBITDA in the quarter.
• Global rental volume for Q3 2024 was in line with Q3 2023 on a global basis.
• Revenue per day was down 2% for the quarter, resulting in an approximate $85M year-over-year reduction in revenue for the quarter.
• International revenue was $840M with adjusted EBITDA of $139M, and international rental days increased 5% year over year.
• Reported year-to-date adjusted EBITDA was nearly $730M, or nearly $850M excluding approximately $120M of uncharacteristic fleet losses.

Guidance

• The company reiterated a target of being a sustainable $1.0B (or higher) adjusted EBITDA business, excluding fleet losses, as an internal floor.
• The company expects gross depreciation per unit per month to approximate $350 for Q4 2024 subject to opportunistic buy/sell activity.
• Vehicle interest was a $72M headwind last quarter versus a $33M headwind in the comparable period, and interest per unit per month is expected to be similar in Q4 2024 compared to Q4 2023.
• The model year 2025 fleet buy is described as largely complete and is expected to result in substantially lower holding costs as the new vehicles enter the fleet.
• The company expects historically high utilizations in the Americas in Q4 2024 and anticipates that price will transition seasonally in the Americas and be nearly flat internationally in Q4 2024 versus Q4 2023.
• Management intends to maintain flexibility to acquire or dispose of vehicles in Q4 2024 based on market opportunities and to keep fleet inside demand.