Q2 2024 Avis Budget Group Inc Earnings Call Transcript
Key Points
- Avis Budget Group Inc (CAR) reported quarterly revenue of over $3 billion and adjusted EBITDA of $214 million.
- The company achieved record-setting second quarter volume in the Americas, with rental days up 1% compared to the same quarter in 2023.
- Sequential pricing improvement was noted, with a 7% quarter-over-quarter increase in the Americas.
- The company successfully sold a record number of vehicles in the first half of the year, improving fleet utilization.
- International operations showed strong performance with nearly $700 million in revenue and $48 million in adjusted EBITDA, driven by a 5% increase in rental days.
- Pricing was down 3% compared to the second quarter of 2023, despite sequential improvements.
- The company experienced a $40 million loss from vehicle sales in the quarter, compared to over $200 million in gains last year.
- Straight-line depreciation increased significantly, resulting in a $115 million incremental expense year-over-year.
- Vehicle interest expenses rose by $72 million in the second quarter compared to the same period in 2023.
- Operating and SG&A expenses as a percentage of revenue grew by less than two points in the quarter compared to the prior year.
Greetings. Welcome to the Avis Budget Group second quarter 2024 earnings conference call. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to David Calabria, Treasurer and Senior Vice President of Corporate Finance. Thank you, you may begin.
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 the SEC as well as the Investor Relations section of our website
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