Q1 2024 Avis Budget Group Inc Earnings Call Transcript
Key Points
- Avis Budget Group Inc (CAR) reported a strong first quarter with record rental volume, demonstrating robust demand.
- The company successfully rightsized its fleet by selling a record number of vehicles, which improved utilization and flexibility.
- Sequential improvements in Revenue Per Day (RPD) were observed, with March showing stronger exit trends, indicating potential future pricing stability.
- The Americas segment generated nearly $2 billion in revenue with strong demand, contributing significantly to the overall performance.
- Avis Budget Group Inc (CAR) is leveraging technology to enhance operational efficiencies and cost management, which has led to significant savings and improved productivity.
- Adjusted EBITDA for the first quarter was $12 million, a substantial decline from the $535 million reported in the first quarter of 2023.
- Pricing was down 6% compared to the first quarter of 2023, although it showed some improvement from the previous quarter.
- The company faced increased vehicle interest expenses due to higher rates, impacting overall financial performance.
- There was a small loss of approximately $40 million from fleet dispositions in the quarter compared to a $250 million gain in the same period last year.
- Residual values of vehicles are expected to potentially decline as the year progresses, which could impact profitability from fleet sales.
Greetings. Welcome to the Avis Budget Group First Quarter Earnings Release Conference Call. (Operator Instructions) As a reminder, today's conference is being recorded.
At this time, I'll turn the conference over to David Calabria, Treasurer and Senior Vice President of Corporate Finance. Mr. Calabria, you may begin your presentation.
Good morning, everyone, and thank you for joining us. On the call with me are Joe Ferraro, our Chief Executive Officer; and Izzy Martins, our Chief Financial Officer.
Before we begin, I would like to remind everyone that we will be discussing forward-looking information, including potential future financial performance, which is subject to risks, uncertainties and assumptions that could cause actual results to differ materially from such forward-looking statements and information.
Such risks and assumptions, uncertainties and other factors are identified in our earnings release and other periodic filings with
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