Avis Budget Group, Inc. (NASDAQ:CAR) Q2 2021 Earnings Conference Call August 4, 2021 8:30 AM ET Company Participants David Calabria - Treasurer & Senior Vice President of Corporate Finance Joe Ferraro - Chief Executive Officer Brian Choi - Chief Financial Officer Conference Call Participants Chris Woronka - Deutsche Bank John Healy - Northcoast Research Jason Stuhldreher - Barclays Bill Kovanis - Morgan Stanley Michael Millman - Millman Research Associates Mario Cortellacci - Jefferies Aileen Smith - Bank o ...

Financial Data and Key Metrics Changes - In Q1 2021, the Americas segment achieved a higher adjusted EBITDA than in Q1 2019, marking the best first quarter adjusted EBITDA margin in the company's history despite rental days being down nearly 20% compared to 2019 [10][13] - The company reported available liquidity of $1.2 billion as of March 31, 2021, which includes approximately $600 million in cash and cash equivalents and $600 million available on the revolving credit facility [27][28] - Adjusted EBITDA for the International segment was down less than $10 million year-over-year despite a revenue decline of over 40% [15] Business Line Data and Key Metrics Changes - In the Americas, rental days were down 23% year-over-year and down 27% compared to 2019, yet the adjusted EBITDA was triple that of Q1 2019 [9][13] - The International segment faced significant challenges with revenues down over 40% year-over-year, primarily due to ongoing COVID restrictions [15] - The company emphasized stringent cost control measures that allowed it to maintain adjusted EBITDA margins despite revenue declines [15][22] Market Data and Key Metrics Changes - The company noted a significant increase in rental car prices, with RPD in the Americas segment up 12% in Q1 2021 compared to the previous quarter [40][41] - The average transaction price of new cars has increased over 20% from approximately $29,000 to over $35,000 from 2010 to 2019, highlighting the value proposition of rental cars [25][26] Company Strategy and Development Direction - The company is focused on cost discipline and operational efficiency as key strategies for recovery, emphasizing that these practices will continue post-pandemic [22][29] - The management highlighted the importance of fleet optimization and maintaining strong relationships with OEM partners to navigate supply chain challenges [18][19] - The company is committed to enhancing customer safety through contactless services and partnerships aimed at protecting employees and customers [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in demand, particularly in the Americas, with expectations that the momentum from Q1 would carry into Q2 [14][29] - The company acknowledged ongoing uncertainties related to vaccine rollouts and semiconductor shortages, which may impact future guidance [29] - Management indicated that the lessons learned during the pandemic regarding cost control will be integrated into the company's operations moving forward [22][43] Other Important Information - The company has been actively managing its fleet in response to semiconductor shortages, ensuring that it maintains a well-utilized fleet [16][19] - The company has a history of purchasing used vehicles to manage fleet levels, although this is not a primary strategy [62] Q&A Session Summary Question: What are the realistic scenarios for fleet capacity and utilization levels? - Management indicated that the fleet situation is fluid, with more cars available than at the end of the previous quarter, and they are working closely with OEMs to manage deliveries [31][33] Question: How should cash flow usage be earmarked moving forward? - Management stated that they are comfortable with a leverage ratio of 3 to 4 times and will use free cash flow to pay down debt and potentially resume share buybacks when permitted [35][36] Question: How sustainable are the current pricing dynamics in the industry? - Management noted that while pricing is currently strong, they focus on cost discipline and operational efficiency rather than short-term pricing fluctuations [40][41] Question: What is the outlook for commercial demand post-summer? - Management expressed uncertainty about commercial demand but noted improvements in their commercial business as more people return to offices [70][72] Question: How are labor costs impacting margins? - Management acknowledged the potential impact of rising labor costs but emphasized their ongoing efforts to improve productivity and efficiency [75][76]

Avis Budget Group, Inc. (NASDAQ:CAR) Q4 2020 Earnings Conference Call February 17, 2021 8:30 AM ET Company Participants David Calabria - Treasurer and Senior Vice President-Corporate Finance Joe Ferraro - Chief Executive Officer Brian Choi - Chief Financial Officer Conference Call Participants Chris Woronka - Deutsche Bank Jason Stuhldreher - Barclays Billy Kovanis - Morgan Stanley Hamzah Mazari - Jefferies Michael Millman - Millman Research Associates Aileen Smith - BofA John Healy - Northcoast Operator ...