Loading...
•
Dec 31, 2020
Avis Q4 2020 Earnings Report
Avis Budget Group's Q4 2020 earnings were impacted by the pandemic, but the company achieved positive Adjusted EBITDA through cost reductions.
Key Takeaways
Avis Budget Group announced Q4 2020 financial results with revenue down 37% compared to the prior year. Despite a net loss of $90 million, the company generated positive Adjusted EBITDA of $74 million through cost removal of more than $500 million. The Americas achieved their highest fourth quarter Adjusted EBITDA margins in the company's history.
Avis Safety Pledge and Budget Worry-Free Promise were created to enhance customer and employee safety.
Contactless rentals were expanded for Avis Preferred customers through the app.
More than $500 million of costs were removed for the quarter.
Approximately 40,000 vehicles were profitably disposed of globally.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Avis Budget Group is not providing guidance at this time due to macro uncertainties related to the vaccine rollout and its impact on the travel industry. However, they remain optimistic about controlling costs and believe these actions will position them to be structurally more profitable when travel demand normalizes.
Positive Outlook
- Ability to minimize cost accretion as revenues return.
- Positioned to be a structurally more profitable company when travel demand normalizes.
- Focus on cost savings will continue to deliver results.
- Strong liquidity position to fund the purchase of 2021 fleet.
- Adapting throughout the pandemic.
Challenges Ahead
- Uncertainty related to the vaccine rollout and its impact on the demand for the travel industry.
- Inability to predict when increases in the travel industry will occur.
- Significant impact from the COVID-19 outbreak.
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...