Loading...
•
Jun 30, 2020
Avis Q2 2020 Earnings Report
Avis Budget Group mitigated the impacts of COVID-19 by removing over $1 billion in expenses during the second quarter.
Key Takeaways
Avis Budget Group announced Q2 2020 financial results, reporting a net loss of $481 million and an adjusted net loss of $388 million. Total revenues decreased by 67% year-over-year. The company focused on cost removal actions, targeting over $2.5 billion on an annualized basis, and improved cash burn by 36% compared to prior estimates.
Reduced cost base by removing more than $2.5 billion of annualized costs.
Disposed of more than 100,000 vehicles and cancelled over 185,000 incoming vehicle orders.
Amended credit agreement and completed an offering of $500 million of senior secured notes to provide additional liquidity.
Reduced workforce by offering separation packages and furloughing employees.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Avis Budget Group anticipates both positive cash flow and Adjusted EBITDA for the remainder of 2020.
Positive Outlook
- Consistent sequential week-over-week increases in rental volume since the beginning of April.
- Both the Americas and International having their best volume to date last week due to increased leisure activity.
- Significant reduction of vehicles as we right size our fleet to current demand.
- Revenue improvement has been more robust in our off-airport locations and is close to pre-pandemic levels.
- Anticipate utilization will continue to improve as we further match fleet with demand.
Challenges Ahead
- Second quarter revenues showed sequential improvement, down 78% in April and finished June down 59% from prior year.
- Expect the velocity of improvement to moderate in the third quarter.
- High level of competition in the mobility industry.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...