Avis Budget Group, Inc. Q3 FY2024 earnings call

• Focus on fleet discipline to align with demand and improve utilization. - Americas focused on higher margin business, with pricing nearly flat y-o-y but up 28% vs Q3 2019. - International saw robust inbound and intra-European cross-border travel, with revenue up 1% y-o-y. - Launched new customer app with enhanced features. - Focus on operational efficiencies through data analytics and labor initiatives, maintaining SG&A expenses per rental day consistent with last year.

Americas: Generated over $2.6 billion in revenue and $384 million in adjusted EBITDA in Q3. Rental days down 2% y-o-y. Utilization was nearly 72%, more than 1 point higher than Q3 2023. International: Generated $840 million in revenue and $139 million in adjusted EBITDA in Q3. Revenue up 1% y-o-y driven by 5% increase in rental days. Utilization 73.7%, up over 3 points y-o-y.

• Anticipate historically high utilizations in Q4 Americas. - Model year 2025 fleet buy largely complete, positioning for lower holding costs. - Prioritize high-margin business while balancing scale. - Holiday demand strong, with price expected to transition seasonally in Americas and flatten internationally.

• Fleet costs and vehicle interest at historic highs. - Impact of hurricanes on operations. - Competition and potential fleet imbalances in the industry.

Q: Chris Woronka asked about fleet cost trends and participation in autonomous/ride share.

A: Izzy Martins discussed fleet cost normalization towards historic levels, and Joe Ferraro mentioned active participation in ride share and monitoring autonomous developments.

Q: John Babcock asked about hurricane impact and pricing in lower cost environment.

A: Joe Ferraro talked about hurricane impacts on rentals and subsequent benefits, and about cost management initiatives affecting pricing.

Q: Elizabeth Dove asked about competition and normalized EBITDA outlook.

A: Joe Ferraro discussed competitive positioning and Izzy Martins reaffirmed the outlook for $1 billion+ adjusted EBITDA.

Q: Ryan Brinkman asked about capital allocation.

A: Izzy Martins emphasized flexibility in capital allocation, focusing on fleet investment and operational efficiencies.

Q: Christopher Stathoulopoulos asked about fleet buy dynamics and transformation initiatives.

A: Joe Ferraro discussed fleet buy progress and focus on fleet, operational efficiency, and revenue generation through initiatives.

Q: John Healy asked about fleet cost impact and business metrics.

A: Izzy Martins discussed how fleet costs and metrics contribute to overall business margin.

Q: Dan Levy asked about fleet buy OEM dynamics and industry fleet tightness.

A: Joe Ferraro talked about OEM discipline and industry fleet rationalization trends.