NASDAQ$CAR

Avis Budget Group Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Avis Budget Group's Q4 2020 earnings were impacted by the pandemic, but the company achieved positive Adjusted EBITDA through cost reductions.

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.

Headline financials

Total Revenue

$1.36B

Previous: $2.16B-37.3%
EPS (adj)

-$0.36

Previous: $0.73-149.3%
Total vehicle utilization

61.9%

Previous: 69.4%-10.8%
Americas utilization

60.6%

Previous: 69.1%-12.3%
International utilization

65.0%

Previous: 70.0%-7.1%
Total per-unit fleet costs

$207.00

Previous: $258.00-19.8%
Americas per-unit fleet costs

$216.00

Previous: $271.00-20.3%
International per-unit fleet costs

$188.00

Previous: $232.00-19.0%
Total revenue per day

$53.23

Previous: $54.13-1.7%
Americas revenue per day

$59.38

Previous: $57.70+2.9%
International revenue per day

$39.50

Previous: $45.86-13.9%
Free Cash Flow

-$405M

No prior period
Net Income

-$90M

Previous: $142M-163.4%
Operating Income

-$179M

Previous: $14M-1378.6%
Gross Profit

$1.01B

Previous: $1.6B-37.0%
Cash & Equivalents

$692M

Previous: $686M+0.9%
Total Assets

$8.85B

Previous: $23.1B-61.8%
Stock-Based Comp

$3M

Previous: $4M-25.0%

Revenue & EPS history

Avis · Revenue · Quarterly

$1.36B

Q4 2020-37.3%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Avis · $1.36B total across 2 segments · Q4 2020

  • Americas
    $1.03B-32.7%
  • International
    $326M-48.4%

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • High level of competition in the mobility industry.
  • Potential disruption in the supply of new vehicles.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.8%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+1.0%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+106.1%

Q3 2021

Best reaction

-25.8%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-6.1%-11.6%-3.1%
Q4 2025-21.7%-23.8%-19.0%
Q3 2025-6.1%-12.3%-13.7%
Q1 2025+0.6%+5.8%+22.4%
Q4 2024-6.8%+1.2%-30.9%
Q3 2024+7.1%+3.0%+26.9%
Q2 2024+2.2%+3.0%-11.7%
Q1 2024+19.2%+27.3%+19.2%
Q4 2023-23.1%-33.5%-33.0%
Q3 2023+14.9%+23.1%+20.2%
Q2 2023+1.9%+1.3%-1.1%
Q1 2023-2.8%-5.2%-5.0%
Q4 2022+13.6%+12.1%-12.9%
Q3 2022-9.4%-4.7%-8.1%
Q2 2022-5.2%+1.1%-8.0%
Q1 2022+6.6%-4.4%-30.0%
Q4 2021-5.5%-11.5%+55.3%
Q3 2021+106.1%+71.6%+46.1%
Q2 2021-12.8%-2.7%+10.5%
Q1 2021-7.0%-8.2%-3.3%
Q4 2020-4.2%+9.0%+50.6%
Q3 2020-4.2%-13.1%+5.3%
Q2 2020-4.1%-9.5%+19.3%
Q1 2020-0.1%+6.0%+95.7%
Q4 2019+21.8%+6.8%-73.4%
Q3 2019-8.0%-1.1%-1.4%
Q2 2019-3.0%-9.6%-29.8%
Q1 2019+1.6%+3.3%-20.2%
Q4 2018+16.5%+19.3%+12.3%
Q3 2018-2.1%+6.8%-7.7%
Q2 2018-8.2%-5.8%-12.4%
Q1 2018-9.6%-7.2%-19.8%
Q4 2017+10.7%+15.9%+15.2%
Q3 2017-14.2%-18.3%-3.6%
Q2 2017-6.6%+8.0%+11.7%
Q1 2017-5.5%-13.0%-27.3%
Q4 2016-6.9%-12.1%-14.9%
Q3 2016+12.3%+20.0%+18.4%
Q2 2016+2.5%+6.6%+0.2%
Q1 2016+1.5%
Q4 2015-25.8%
Q3 2015-7.2%
Q2 2015+3.8%
Q1 2015-2.9%
Q4 2014+2.9%
Q3 2014-1.5%
Q2 2014+4.6%
Q1 2014-3.9%
Q4 2013+12.1%
Q3 2013+8.0%
Q2 2013-6.7%
Q1 2013-0.2%
Q4 2012+4.6%
Q3 2012-0.4%
Q2 2012+7.7%
Q1 2012+3.9%
Q2 2011+1.0%
Q4 2011+1.0%
Q3 2011-5.8%
Q4 2010-5.3%
Q1 2010+1.2%
Q1 2011-1.5%
Q3 2010+5.2%
Q2 2010-0.5%
Q4 2009-0.5%

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