Avis Budget Group, Inc. (
NASDAQ: CAR) today
announced first quarter 2021 financial results.
Despite revenue being down 22% for the first
quarter compared to prior year, and net loss of $170 million, we
achieved Adjusted EBITDA of $47 million in the first quarter
through cost discipline and double digit growth in revenue per day
in the Americas. This is our best first quarter Adjusted EBITDA
since 2015 and is now our third consecutive quarter of positive
Adjusted EBITDA since the start of the pandemic.
As demand started to recover in the Americas in the
back half of the quarter, we optimized our fleet, resulting in
higher utilization, and took advantage of pricing opportunities. We
finished the quarter with Revenue per Day increasing 12% from prior
year in the Americas. A strengthening Revenue per Day environment
combined with our continued cost mitigating actions resulted in the
Americas achieving a record first quarter Adjusted EBITDA
margin.
Our liquidity position at the end of the quarter
was approximately $1.2 billion with an additional $4.8 billion of
fleet funding capacity. We have well-laddered corporate debt
maturities with no meaningful maturities until 2023.
“Our first quarter results show our continued
recovery through cost discipline and fleet optimization driving
higher utilization, while reducing global per unit fleet costs,”
said Joe Ferraro, Avis Budget Group Chief Executive Officer. “The
Americas achieved its best first quarter Adjusted EBITDA margin on
one of its lowest first quarter revenue bases and continues to
prove that our cost saving initiatives are expected to continue to
deliver strong results. These accomplishments are a great way to
kick off the 75th anniversary of our Avis brand.”
Q1 Highlights
- Revenues recovered
sequentially in the quarter with Revenue per Day increasing 12% in
the Americas driven by improving demand.
- Due to our cost
discipline and the improving demand environment, the Americas
generated record first quarter Adjusted EBITDA margins.
- Our Adjusted EBITDA in
International was nearly flat compared to first quarter 2020,
excluding a $9 million negative currency exchange rate movement,
from strong cost mitigating actions to match demand as
international recovery continues.
- We completed senior
notes offering of $600 million at 5⅜% and $500 million at 4¾%, and
used the proceeds to redeem our 10½% senior secured notes and 6⅜%
senior notes, and pay off a portion of the 5¼% senior notes. Our
interest rate of 4¾% is the lowest rate achieved on an unsecured
notes offering in our Company's history.
- Our contactless rental
experience, Avis Quickpass, is now offered at 20 of our top airport
locations across the U.S., for our Avis Preferred customers.
Outlook
The global semiconductor shortage is causing
uncertainty in fleet supply and resulting in tighter fleets
throughout the industry. We have historically navigated through
significant vehicle recalls, and believe we have the logistics in
place to effectively manage our fleet during this disruption in
supply. We continue to get new car deliveries every day and believe
we can increase our fleet utilization efficiency to capture
increased demand. We look forward to helping people experience
their mobility needs in a safe and efficient way.
While we continue to monitor vehicle availability
and the roll out of the vaccine and its impact on the demand for
the travel industry, we cannot currently predict the volatility
associated with the industry. Due to these continued macro
uncertainties, we are not providing guidance at this time.
Investor Conference Call
We will host a conference call to discuss first
quarter results on May 4, 2021, at 8:30 a.m. (ET). Investors may
access the call at ir.avisbudgetgroup.com or by dialing (877)
407-2991 and a replay will available on our website and at (877)
660-6853 using conference code 13717958.
About Avis Budget Group
Avis Budget Group, Inc. is a leading global
provider of mobility solutions, both through its Avis and Budget
brands, which have more than 10,000 rental locations in
approximately 180 countries around the world, and through its
Zipcar brand, which is the world's leading car sharing network with
more than one million members. Avis Budget Group operates most of
its car rental offices in North America, Europe and Australasia
directly, and operates primarily through licensees in other parts
of the world. Avis Budget Group is headquartered in Parsippany,
N.J. More information is available at avisbudgetgroup.com.
Forward-Looking Statements
Certain statements in this press release constitute
“forward-looking statements.” Any statements that refer to outlook,
expectations or other characterizations of future events,
circumstances or results, including all statements related to our
future results, impact from the COVID-19 outbreak, cost-saving
actions, the global semiconductor shortage and cash flows are
forward-looking statements. Various risks that could cause future
results to differ from those expressed by the forward-looking
statements included in this press release include, but are not
limited to, the severity and duration of the COVID-19 outbreak,
which is expected to continue to have a significant impact on our
operations, and resulting economic conditions and related
restrictions, the high level of competition in the mobility
industry, changes in our fleet costs, including as a result of a
change in the cost of new vehicles, manufacturer recalls and/or the
value of used vehicles, disruption in the supply of new vehicles,
disposition of vehicles not covered by manufacturer repurchase
programs, our ability to realize our estimated cost savings on a
timely basis, or at all, the financial condition of the
manufacturers that supply our rental vehicles, including as a
result of the global semiconductor shortage, which could affect
their ability to perform their obligations under our repurchase
and/or guaranteed depreciation arrangements, the significant
decline in travel demand as a result of COVID-19, including the
current and any further disruptions in airline passenger traffic,
the absence of an improvement in or any further deterioration in
economic conditions generally, particularly during our peak season
and/or in key market segments, any occurrence or threat of
terrorism, the current and any future pandemic diseases or other
natural disasters, any changes to the cost or supply of fuel, risks
related to acquisitions or integration of acquired businesses,
risks associated with litigation, governmental or regulatory
inquiries or investigations, risks related to the security of our
information technology systems, disruptions in our communication
networks, changes in tax or other regulations, a significant
increase in interest rates or borrowing costs, our ability to
obtain financing for our global operations, including the funding
of our vehicle fleet via asset-backed securities markets, any
fluctuations related to the mark-to-market of derivatives which
hedge our exposure to exchange rates, interest rates and fuel
costs, our ability to meet the covenants contained in the
agreements governing our indebtedness, and our ability to
accurately estimate our future results and implement our cost
savings actions. Other unknown or unpredictable factors could also
have material adverse effects on the Company’s performance or
achievements. Important assumptions and other important factors
that could cause actual results to differ materially from those in
the forward-looking statements are specified in Avis Budget Group’s
Annual Report on Form 10-K for the year ended December 31, 2020 and
in other filings and furnishings made by the Company with the
Securities and Exchange Commission (the "SEC") from time to time.
The Company undertakes no obligation to publicly update any
forward-looking statements to reflect subsequent events or
circumstances.
Non-GAAP Financial Measures and Key
Metrics
This release, including the Outlook section,
includes financial measures such as Adjusted EBITDA, Adjusted Net
Income and Adjusted Free Cash Flow, as well as other financial
measures that are not considered generally accepted accounting
principles (“GAAP”) measures as defined under SEC rules. Important
information regarding such measures is contained in the financial
tables to this release and in Appendix I, including the definitions
of these measures and reconciliations to the closest comparable
GAAP measures. The Company and its management believe that these
non-GAAP measures are useful to investors in measuring the
comparable results of the Company period-over-period. The GAAP
measures most directly comparable to Adjusted EBITDA, Adjusted Free
Cash Flow, Adjusted pretax income (loss), Adjusted net income
(loss) and Adjusted diluted earnings (loss) per share are net
income (loss), net cash provided by operating activities, income
(loss) before income taxes, net income (loss) and diluted earnings
(loss) per share, respectively. Foreign currency translation
effects on the Company’s results are quantified by translating the
current period’s non-U.S. dollar-denominated results using the
currency exchange rates of the prior period of comparison including
any related gains and losses on currency hedges. Per-unit fleet
costs, which represent vehicle depreciation, lease charges and gain
or loss on vehicle sales, divided by average rental fleet, are
calculated on a per-month basis.
Contact |
David Calabria |
IR@avisbudget.com |
PR@avisbudget.com |
|
Tables Follow
Table 1
Avis Budget Group,
Inc.SUMMARY DATA SHEET(In
millions, except per share data)
|
|
Three Months Ended March 31, |
|
|
2021 |
|
2020 |
|
% Change |
Income Statement and Other Items |
|
|
|
|
|
|
Revenues |
$ |
1,372 |
|
|
$ |
1,753 |
|
|
(22 |
)% |
|
Loss before income taxes |
(250 |
) |
|
(265 |
) |
|
6 |
% |
|
Net loss |
(170 |
) |
|
(158 |
) |
|
(8 |
)% |
|
Loss per share - diluted |
(2.43 |
) |
|
(2.16 |
) |
|
(13 |
)% |
|
|
|
|
|
|
|
|
Adjusted Earnings Measures (non-GAAP) (A) |
|
|
|
|
|
|
Adjusted EBITDA |
47 |
|
|
(87 |
) |
|
n/m |
|
|
Adjusted pretax loss |
(64 |
) |
|
(191 |
) |
|
66 |
% |
|
Adjusted net loss |
(32 |
) |
|
(103 |
) |
|
69 |
% |
|
Adjusted loss per share - diluted |
(0.46 |
) |
|
(1.40 |
) |
|
67 |
% |
|
|
|
|
|
|
|
|
|
As of |
|
|
|
|
March 31, 2021 |
|
December 31, 2020 |
|
|
Balance Sheet Items |
|
|
|
|
|
|
Cash and Cash Equivalents |
$ |
576 |
|
|
$ |
692 |
|
|
|
|
Vehicles, net |
9,101 |
|
|
8,153 |
|
|
|
|
Debt under vehicle programs |
7,801 |
|
|
6,857 |
|
|
|
|
Corporate debt |
4,283 |
|
|
4,210 |
|
|
|
|
Stockholders' equity |
(316 |
) |
|
(155 |
) |
|
|
Segment Results |
|
|
|
|
|
|
Three Months Ended March 31, |
|
2021 |
|
2020 |
|
% Change |
Revenues |
|
|
|
|
|
Americas |
$ |
1,080 |
|
|
$ |
1,257 |
|
|
(14 |
)% |
International |
292 |
|
|
496 |
|
|
(41 |
)% |
Corporate and Other |
— |
|
|
— |
|
|
n/m |
|
Total Company |
$ |
1,372 |
|
|
$ |
1,753 |
|
|
(22 |
)% |
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
Americas |
$ |
108 |
|
|
$ |
(30 |
) |
|
n/m |
|
International |
(50 |
) |
|
(40 |
) |
|
(25 |
) |
Corporate and Other |
(11 |
) |
|
(17 |
) |
|
n/m |
|
Total Company |
$ |
47 |
|
|
$ |
(87 |
) |
|
n/m |
|
|
|
|
|
|
|
________
n/m |
Not meaningful. |
(A) |
See Table 5 for reconciliations of non-GAAP measures and Appendix I
for definitions. |
Table 2
Avis Budget Group,
Inc.CONSOLIDATED STATEMENTS OF
OPERATIONS(In millions, except per share
data)
|
|
Three Months Ended March 31, |
|
|
2021 |
|
2020 |
Revenues |
$ |
1,372 |
|
|
$ |
1,753 |
|
|
|
|
|
|
Expenses |
|
|
|
|
Operating |
832 |
|
|
1,058 |
|
|
Vehicle depreciation and lease charges, net |
254 |
|
|
459 |
|
|
Selling, general and administrative |
182 |
|
|
251 |
|
|
Vehicle interest, net |
75 |
|
|
83 |
|
|
Non-vehicle related depreciation and amortization |
68 |
|
|
69 |
|
|
Interest expense related to corporate debt, net: |
|
|
|
|
Interest expense |
61 |
|
|
48 |
|
|
Early extinguishment of debt |
129 |
|
|
4 |
|
|
Restructuring and other related charges |
20 |
|
|
44 |
|
|
Transaction-related costs, net |
1 |
|
|
2 |
|
Total expenses |
1,622 |
|
|
2,018 |
|
|
|
|
|
|
Loss before income taxes |
(250 |
) |
|
(265 |
) |
Benefit from income taxes |
(80 |
) |
|
(107 |
) |
Net loss |
$ |
(170 |
) |
|
$ |
(158 |
) |
|
|
|
|
|
Earnings (loss) per share - diluted |
|
|
|
|
Basic |
$ |
(2.43 |
) |
|
$ |
(2.16 |
) |
|
Diluted |
$ |
(2.43 |
) |
|
$ |
(2.16 |
) |
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
Basic |
69.9 |
|
|
72.9 |
|
|
Diluted |
69.9 |
|
|
72.9 |
|
|
|
|
|
|
|
|
Table 3
Avis Budget Group,
Inc.KEY METRICS SUMMARY
|
|
Three Months Ended March 31, |
|
|
2021 |
|
2020 |
|
% Change |
|
|
|
|
|
|
|
Americas |
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental Days (000’s) |
18,021 |
|
|
23,458 |
|
|
(23 |
)% |
|
Revenue per Day, excluding exchange rate effects
(A) |
$ |
59.82 |
|
|
$ |
53.59 |
|
|
12 |
% |
|
Average Rental Fleet |
294,634 |
|
|
416,937 |
|
|
(29 |
)% |
|
Vehicle Utilization |
68.0 |
% |
|
61.8 |
% |
|
6.2 pps |
|
|
Per-Unit Fleet Costs per Month, excluding exchange rate effects
(A) |
$ |
207 |
|
|
$ |
265 |
|
|
(22 |
)% |
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental Days (000’s) |
6,825 |
|
|
11,067 |
|
|
(38 |
)% |
|
Revenue per Day, excluding exchange rate effects
(A) |
$ |
38.74 |
|
|
$ |
44.77 |
|
|
(13 |
)% |
|
Average Rental Fleet |
117,470 |
|
|
192,755 |
|
|
(39 |
)% |
|
Vehicle Utilization |
64.6 |
% |
|
63.1 |
% |
|
1.5 pps |
|
|
Per-Unit Fleet Costs per Month, excluding exchange rate effects
(A) |
$ |
183 |
|
|
$ |
219 |
|
|
(16 |
)% |
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental Days (000’s) |
24,846 |
|
|
34,525 |
|
|
(28 |
)% |
|
Revenue per Day, excluding exchange rate effects
(A) |
$ |
54.03 |
|
|
$ |
50.76 |
|
|
6 |
% |
|
Average Rental Fleet |
412,104 |
|
|
609,692 |
|
|
(32 |
)% |
|
Vehicle Utilization |
67.0 |
% |
|
62.2 |
% |
|
4.8 pps |
|
|
Per-Unit Fleet Costs per Month, excluding exchange rate effects
(A) |
$ |
200 |
|
|
$ |
251 |
|
|
(20 |
)% |
_______ |
Refer to Table 6 for key metrics calculations and Appendix I for
key metrics definitions. |
(A) |
The following metrics include changes in currency exchange
rates: |
|
|
Three Months Ended March 31, |
|
|
2021 |
|
2020 |
|
% Change |
|
|
|
|
|
|
|
Americas |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per Day |
$ |
59.92 |
|
|
$ |
53.59 |
|
|
12 |
% |
|
Per-Unit Fleet Costs per Month |
$ |
208 |
|
|
$ |
265 |
|
|
(22 |
)% |
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per Day |
$ |
42.88 |
|
|
$ |
44.77 |
|
|
(4 |
)% |
|
Per-Unit Fleet Costs per Month |
$ |
199 |
|
|
$ |
219 |
|
|
(9 |
)% |
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per Day |
$ |
55.24 |
|
|
$ |
50.76 |
|
|
9 |
% |
|
Per-Unit Fleet Costs per Month |
$ |
205 |
|
|
$ |
251 |
|
|
(18 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Table 4 (page 1 of 2)
Avis Budget Group,
Inc.CONSOLIDATED CONDENSED SCHEDULES OF CASH FLOWS
AND ADJUSTED FREE CASH FLOWS(In
millions)
CONSOLIDATED CONDENSED SCHEDULE OF CASH
FLOWS
|
Three Months Ended March 31, 2021 |
Operating Activities |
|
Net cash provided by operating activities |
$ |
336 |
|
|
|
Investing Activities |
|
Net cash used in investing activities exclusive of vehicle
programs |
$ |
(14 |
) |
Net cash provided by investing activities of vehicle programs |
(1,352 |
) |
Net cash provided by investing activities |
$ |
(1,366 |
) |
|
|
Financing Activities |
|
Net cash provided by financing activities exclusive of vehicle
programs |
$ |
(32 |
) |
Net cash used in financing activities of vehicle programs |
946 |
|
Net cash used in financing activities |
$ |
914 |
|
|
|
Effect of changes in exchange rates on cash and cash equivalents,
program and restricted cash |
(10 |
) |
Net change in cash and cash equivalents, program and restricted
cash |
(126 |
) |
Cash and cash equivalents, program and restricted cash,
beginning of period (A) |
765 |
|
Cash and cash equivalents, program and restricted cash, end
of period (B) |
$ |
639 |
|
|
|
|
|
CONSOLIDATED SCHEDULE OF ADJUSTED FREE
CASH FLOWS (C)
|
Three Months Ended March 31, 2021 |
Loss before income taxes |
$ |
(250 |
) |
Add-back of non-vehicle related depreciation and amortization |
68 |
|
Add-back of debt extinguishment costs |
129 |
|
Add-back of restructuring and other related costs |
20 |
|
Add-back of transaction-related costs |
1 |
|
Add-back of COVID-19 charges |
18 |
|
Working capital and other |
144 |
|
Capital expenditures (D) |
(28 |
) |
Vehicle programs and related (E) |
(131 |
) |
Adjusted free cash flow |
$ |
(29 |
) |
|
|
Acquisition and related payments, net of acquired cash |
$ |
(4 |
) |
Borrowings, net of debt repayments |
(1 |
) |
Restructuring and other related payments |
(12 |
) |
Transaction-related payments |
(1 |
) |
COVID-19 payments, net |
(29 |
) |
Repurchases of common stock |
(19 |
) |
Change in program cash |
(9 |
) |
Foreign exchange effects, financing costs and other |
(22 |
) |
Net change in cash and cash equivalents, program and
restricted cash (per above) |
$ |
(126 |
) |
|
|
|
|
Table 4 (page 2 of 2)
RECONCILIATION OF NET CASH PROVIDED BY
OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW
|
Three Months Ended March 31, 2021 |
Net cash provided by operating activities (per
above) |
$ |
336 |
|
Investing activities of vehicle programs |
(1,352 |
) |
Financing activities of vehicle programs |
946 |
|
Capital expenditures |
(12 |
) |
Proceeds received on sale of assets and nonmarketable equity
securities |
2 |
|
Change in program cash |
9 |
|
COVID-19 payments, net |
29 |
|
Restructuring and other related payments |
12 |
|
Transaction-related payments |
1 |
|
Adjusted free cash flow (per above) |
$ |
(29 |
) |
|
_______ |
(A) |
Consists of cash and cash equivalents of $692 million, program cash
of $72 million and restricted cash of $1 million. |
(B) |
Consists of cash and cash equivalents of $576 million, program cash
of $61 million and restricted cash of $2 million. |
(C) |
See Appendix I for the definition of Adjusted free cash flow. |
(D) |
Includes $16 million of cloud computing implementation costs. |
(E) |
Includes vehicle-backed borrowings (repayments) that are
incremental to amounts required to fund incremental (reduced)
vehicle and vehicle-related assets. |
|
|
Table 5
Avis Budget Group,
Inc.DEFINITIONS AND RECONCILIATIONS OF NON-GAAP
MEASURES(In millions, except per share
data)
The accompanying press release includes certain
non-GAAP (generally accepted accounting principles) financial
measures as defined under SEC rules. To the extent not provided in
the press release or accompanying tables, we have provided the
reasons we present these non-GAAP financial measures and a
description of what they represent in Appendix I. For each non-GAAP
financial measure a reconciliation to the most comparable GAAP
financial measure is calculated and presented below with
reconciliations of net income (loss), income (loss) before income
taxes and diluted earnings (loss) per share to Adjusted EBITDA and
our Adjusted earnings measures.
|
Three Months Ended March 31, |
Reconciliation of net loss to Adjusted
EBITDA: |
2021 |
|
2020 |
|
|
|
|
Net loss |
$ |
(170 |
) |
|
$ |
(158 |
) |
Benefit from income taxes |
(80 |
) |
|
(107 |
) |
Loss before income taxes |
(250 |
) |
|
(265 |
) |
|
|
|
|
Add certain items: |
|
|
|
Early extinguishment of debt |
129 |
|
|
4 |
|
Restructuring and other related charges |
20 |
|
|
44 |
|
Acquisition-related amortization expense |
18 |
|
|
13 |
|
COVID-19 charges (A) |
18 |
|
|
7 |
|
Transaction-related costs, net |
1 |
|
|
2 |
|
Non-operational charges related to shareholder activist activity
(B) |
— |
|
|
4 |
|
Adjusted pretax loss |
(64 |
) |
|
(191 |
) |
|
|
|
|
Add: Non-vehicle related depreciation and amortization
(excluding acquisition-related amortization expense) |
50 |
|
|
56 |
|
Interest expense related to corporate debt, net
(excluding early extinguishment of debt) |
61 |
|
|
48 |
|
Adjusted EBITDA |
$ |
47 |
|
|
$ |
(87 |
) |
|
|
|
|
Reconciliation of net loss to adjusted net
loss: |
|
|
|
|
|
|
|
Net loss |
(170 |
) |
|
(158 |
) |
Add certain items, net of tax: |
|
|
|
Early extinguishment of debt |
96 |
|
|
3 |
|
Restructuring and other related charges |
15 |
|
|
33 |
|
Acquisition-related amortization expense |
13 |
|
|
10 |
|
COVID-19 charges |
13 |
|
|
5 |
|
Transaction-related costs, net |
1 |
|
|
1 |
|
Non-operational charges related to shareholder activist
activity |
— |
|
|
3 |
|
Adjusted net loss |
$ |
(32 |
) |
|
$ |
(103 |
) |
|
|
|
|
Loss per share - Diluted |
$ |
(2.43 |
) |
|
$ |
(2.16 |
) |
|
|
|
|
Adjusted diluted loss per share |
$ |
(0.46 |
) |
|
$ |
(1.40 |
) |
|
|
|
|
Shares used to calculate Adjusted diluted loss per
share |
69.9 |
|
|
72.9 |
|
_______ |
(A) |
For the three months ended March 31, 2021 consists of $17
million within operating expenses and $1 million within selling,
general and administrative expenses in our Consolidated Statements
of Operations, primarily consisting of $19 million of minimum
annual guaranteed rent in excess of concession fees, $(6) million
associated with vehicles damaged in overflow parking lots, net of
insurance proceeds and $5 million of other charges. For the three
months ended March 31, 2020 consists of $7 million within operating
expenses, primarily consisting of $5 million associated with
vehicles damaged in overflow parking lots, net of insurance
proceeds and $2 million of incremental cleaning supplies to
sanitize vehicles and facilities, and overflow parking. |
|
|
(B) |
Reported within selling, general and administrative expenses in our
Consolidated Statements of Operations. |
|
|
Table 6
Avis Budget Group,
Inc.KEY METRICS CALCULATIONS($ in
millions, except as noted)
|
Three Months Ended March 31, 2021 |
|
Three Months Ended March 31, 2020 |
|
Americas |
|
International |
|
Total |
|
Americas |
|
International |
|
Total |
Revenue per Day (RPD) |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
1,080 |
|
|
$ |
292 |
|
|
$ |
1,372 |
|
|
$ |
1,257 |
|
|
$ |
496 |
|
|
$ |
1,753 |
|
Currency exchange rate effects |
(2 |
) |
|
(28 |
) |
|
(30 |
) |
|
— |
|
|
— |
|
|
— |
|
Revenue excluding exchange rate effects |
1,078 |
|
|
264 |
|
|
1,342 |
|
|
1,257 |
|
|
496 |
|
|
1,753 |
|
Rental days (000's) |
18,021 |
|
|
6,825 |
|
|
24,846 |
|
|
23,458 |
|
|
11,067 |
|
|
34,525 |
|
RPD excluding exchange rate effects (in $'s) |
$ |
59.82 |
|
|
$ |
38.74 |
|
|
$ |
54.03 |
|
|
$ |
53.59 |
|
|
$ |
44.77 |
|
|
$ |
50.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle Utilization |
|
|
|
|
|
|
|
|
|
|
|
Rental days (000's) |
18,021 |
|
|
6,825 |
|
|
24,846 |
|
|
23,458 |
|
|
11,067 |
|
|
34,525 |
|
Average rental fleet |
294,634 |
|
|
117,470 |
|
|
412,104 |
|
|
416,937 |
|
|
192,755 |
|
|
609,692 |
|
Number of days in period |
90 |
|
|
90 |
|
|
90 |
|
|
91 |
|
|
91 |
|
|
91 |
|
Available rental days (000's) |
26,517 |
|
|
10,572 |
|
|
37,089 |
|
|
37,941 |
|
|
17,541 |
|
|
55,482 |
|
Vehicle utilization |
68.0 |
% |
|
64.6 |
% |
|
67.0 |
% |
|
61.8 |
% |
|
63.1 |
% |
|
62.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Per-Unit Fleet Costs |
|
|
|
|
|
|
|
|
|
|
|
Vehicle depreciation and lease charges, net |
$ |
184 |
|
|
$ |
70 |
|
|
$ |
254 |
|
|
$ |
332 |
|
|
$ |
127 |
|
|
$ |
459 |
|
Currency exchange rate effects |
(1 |
) |
|
(5 |
) |
|
(6 |
) |
|
— |
|
|
— |
|
|
— |
|
|
$ |
183 |
|
|
$ |
65 |
|
|
$ |
248 |
|
|
$ |
332 |
|
|
$ |
127 |
|
|
$ |
459 |
|
Average rental fleet |
294,634 |
|
|
117,470 |
|
|
412,104 |
|
|
416,937 |
|
|
192,755 |
|
|
609,692 |
|
Per-unit fleet costs (in $'s) |
$ |
621 |
|
|
$ |
549 |
|
|
$ |
601 |
|
|
$ |
796 |
|
|
$ |
658 |
|
|
$ |
753 |
|
Number of months in period |
3 |
|
|
3 |
|
|
3 |
|
|
3 |
|
|
3 |
|
|
3 |
|
Per-unit fleet costs per month excluding exchange rate effects (in
$'s) |
$ |
207 |
|
|
$ |
183 |
|
|
$ |
200 |
|
|
$ |
265 |
|
|
$ |
219 |
|
|
$ |
251 |
|
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-year 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 EBITDAThe accompanying
press release presents Adjusted EBITDA, which represents 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, charges for unprecedented personal-injury and other
legal matters, non-operational charges related to shareholder
activist activity, which include third party advisory, legal and
other professional service fees, gain on sale of equity method
investment in China, COVID-19 charges and income taxes. COVID-19
charges include unusual, direct and incremental costs due to the
COVID-19 global pandemic such as minimum annual guaranteed rent in
excess of concession fees for the period, overflow parking for idle
vehicles and related shuttling costs, incremental cleaning supplies
to sanitize vehicles and facilities, and losses associated with
vehicles damaged in overflow parking lots, net of insurance
proceeds. Adjusted EBITDA includes stock-based compensation expense
and deferred financing fee amortization totaling $9 million and $4
million in first quarter 2021 and 2020, respectively.
We believe that Adjusted EBITDA is useful to
investors as a supplemental measure in evaluating the aggregate
performance of our operating businesses and in comparing our
results from period to period. Adjusted EBITDA is the measure that
is used by our management, including our chief operating decision
maker, to perform such evaluation. Adjusted EBITDA is also a
component in the determination of management's compensation.
Adjusted EBITDA should not be considered in isolation or as a
substitute for net income or other income statement data prepared
in accordance with GAAP and 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 Earnings Non-GAAP
MeasuresThe accompanying press release and tables present
Adjusted pretax income (loss), Adjusted net income (loss) and
Adjusted diluted earnings (loss) per share, which exclude certain
items. We believe that these measures referred to above are useful
to investors as supplemental measures in evaluating the aggregate
performance of the Company. We exclude restructuring and other
related charges, transaction-related costs, costs related to early
extinguishment of debt and certain other items as such items are
not representative of the results of operations of our business
less a provision for income taxes derived utilizing applicable
statutory tax rates for each item. A reconciliation of our Adjusted
earnings Non-GAAP measures from the appropriate measures recognized
under GAAP is provided on Table 5.
Adjusted Free Cash FlowRepresents
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,
COVID-19 charges and non-operational charges related to shareholder
activist activity. We have revised our definition of Adjusted Free
Cash Flow to exclude COVID-19 charges and have not revised prior
years' Adjusted Free Cash Flow amounts as there were no other
charges similar in nature to these. We believe this change is
meaningful to investors as it brings the measurement in line with
our other non-GAAP measures. We believe that Adjusted Free Cash
Flow is useful to management and investors in measuring the cash
generated that is available to be used to repay debt obligations,
repurchase stock, pay dividends and invest in future growth through
new business development activities or acquisitions. Adjusted Free
Cash Flow should not be construed as a substitute in measuring
operating results or liquidity, and our presentation of Adjusted
Free Cash Flow may not be comparable to similarly-titled measures
used by other companies. A reconciliation of Adjusted Free Cash
Flow to the appropriate measure recognized under GAAP is provided
on Table 4.
Adjusted EBITDA MarginRepresents
Adjusted EBITDA as a percentage of revenues.
Available Rental DaysDefined as
Average Rental Fleet times the numbers of days in a given
period.
Average Rental FleetRepresents the
average number of vehicles in our fleet during a given period of
time.
Currency Exchange Rate
EffectsRepresents 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 DebtRepresents
corporate debt minus cash and cash equivalents.
Net Corporate LeverageRepresents
Net Corporate Debt divided by Adjusted EBITDA for the twelve months
prior to the date of calculation.
Per-Unit Fleet CostsRepresents
vehicle depreciation, lease charges and gain or loss on vehicles
sales, divided by Average Rental Fleet.
Rental DaysRepresents the total
number of days (or portion thereof) a vehicle was rented during a
24-hour period.
Revenue per DayRepresents revenues
divided by Rental Days.
Vehicle UtilizationRepresents
Rental Days divided by Available Rental Days.
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