Sep 30, 2020

Avis Q3 2020 Earnings Report

Avis Budget Group reported positive earnings and removed an additional $1 billion of expenses.

Key Takeaways

Avis Budget Group announced third quarter 2020 financial results, with a net income of $45 million and adjusted net income of $79 million. The company achieved positive Adjusted EBITDA of $220 million through cost removal actions and fleet adjustments, removing approximately $1 billion of costs during the quarter.

Continued to reduce cost base, removing another $1 billion of costs.

Profitably disposed of 75,000 vehicles in the U.S., including 49,000 vehicles sold through alternative channels.

Completed a senior notes offering of $350 million to pay off existing notes and provide additional liquidity.

Expanded partnerships to enhance the cleanliness and disinfection of rental facilities and vehicles.

Total Revenue
$1.53B
Previous year: $2.75B
-44.3%
EPS
$1.13
Previous year: $2.96
-61.8%
Total Vehicle Utilization
60.6%
Previous year: 73.3%
-17.3%
Americas Vehicle Utilization
57.9%
Previous year: 72.6%
-20.2%
International Vehicle Utilization
67%
Previous year: 74.5%
-10.1%
Gross Profit
$1.2B
Previous year: $2.11B
-43.1%
Cash and Equivalents
$1.56B
Previous year: $615M
+154.3%
Total Assets
$19.6B
Previous year: $23.1B
-15.2%

Avis

Avis

Avis Revenue by Segment

Avis Revenue by Geographic Location

Forward Guidance

Although we believe the travel environment will remain challenged, we still expect to be Adjusted EBITDA and Adjusted Free Cash Flow positive excluding the return of vehicle equity for the fourth quarter.

Revenue & Expenses

Visualization of income flow from segment revenue to net income