Avis Budget Group(US:CAR)2024-11-01 13:37Financial Performance - Revenues for the three months ended September 30, 2024, were $3,480 million, a decrease of 2.4% compared to $3,564 million for the same period in 2023[9]. - Net income for the nine months ended September 30, 2024, was $140 million, significantly down from $1,375 million in the same period of 2023[14]. - The net income for the third quarter of 2024 was $237 million, compared to $626 million for the same period in 2023, reflecting a significant decline[18]. - Total comprehensive income for the third quarter of 2024 was $260 million, down from $586 million in the same quarter of 2023[18]. - For the nine months ended September 30, 2024, total revenues were $9,079 million, compared to $9,244 million for the same period in 2023, reflecting a decrease of about 1.8%[35]. - The net income attributable to Avis Budget Group, Inc. for the three months ended September 30, 2024, was $237 million, compared to $626 million for the same period in 2023, indicating a decrease of approximately 62%[52]. - Basic earnings per share (EPS) for the three months ended September 30, 2024, was $6.67, down from $16.96 in the same period of 2023, representing a decline of about 60%[52]. - Adjusted EBITDA for the total company was $503 million for the three months ended September 30, 2024, compared to $907 million in 2023[122]. - The company reported an income before income taxes of $214 million for the nine months ended September 30, 2024, compared to $1,752 million in the previous year[124]. Expenses and Costs - Total expenses for the three months ended September 30, 2024, increased to $3,151 million from $2,807 million in 2023, representing a 12.3% rise[9]. - Vehicle depreciation and lease charges for the nine months ended September 30, 2024, were $2,175 million, up from $1,157 million in 2023, indicating an increase of 88%[9]. - The company reported a non-vehicle related depreciation and amortization expense of $58 million for the three months ended September 30, 2024[122]. - The restructuring expense for the company was $22 million for the three months ended September 30, 2024, compared to $1 million for the same period in 2023, reflecting a significant increase[50]. - Amortization expense related to amortizable intangible assets for the nine months ended September 30, 2024, was approximately $22 million, compared to $20 million for the same period in 2023, indicating an increase of about 10%[56]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $649 million, a decrease from $721 million at the end of the same period in 2023[16]. - The company reported a net cash provided by operating activities of $2,746 million for the nine months ended September 30, 2024, compared to $3,035 million in 2023, reflecting a decline of 9.5%[14]. - The company experienced a net cash used in investing activities of $(2,696) million for the nine months ended September 30, 2024, compared to $(6,930) million in 2023, indicating a reduction in cash outflow[16]. - As of September 30, 2024, total cash and cash equivalents, program cash, and restricted cash amounted to $649 million, a decrease from $721 million as of September 30, 2023[26]. Assets and Equity - Total assets as of September 30, 2024, were $32,749 million, slightly up from $32,569 million at the end of 2023[12]. - The company’s stockholders' equity attributable to Avis Budget Group, Inc. was $(238) million as of September 30, 2024, compared to $(349) million at the end of 2023[12]. - As of September 30, 2024, Avis Budget Group, Inc. reported total stockholders' equity of $10,730 million, a decrease from $10,742 million at December 31, 2023[19]. - Retained earnings increased to $3,988 million as of September 30, 2024, up from $3,854 million at December 31, 2023[19]. - The total current assets increased to $800 million from $684 million as of December 31, 2023, reflecting a growth of approximately 17%[53]. Debt and Financing - Proceeds from long-term borrowings for the nine months ended September 30, 2024, were $1,569 million, compared to $439 million in 2023, showing a significant increase[16]. - As of September 30, 2024, the total long-term debt amounted to $5,465 million, an increase from $4,791 million as of December 31, 2023[64]. - The company issued €600 million of 7.000% euro-denominated Senior Notes due February 2029 in February 2024, and used the proceeds to redeem outstanding 4.750% euro-denominated Senior Notes due January 2026[66]. - In September 2024, the company issued $700 million of 8.250% Senior Notes due January 2030, with proceeds intended to repay outstanding borrowings under the floating rate term loan due 2029[67]. - The senior revolving credit facility has a total capacity of $2,000 million, with outstanding borrowings of $1,464 million and available capacity of $536 million as of September 30, 2024[69]. - The company has a total debt under vehicle programs of $17,893 million as of September 30, 2024, down from $18,937 million as of December 31, 2023[72]. - The company is in compliance with all financial covenants governing its indebtedness as of September 30, 2024[70]. Legal and Regulatory Matters - The company has been named in litigation related to its former subsidiaries, with indemnification rights for any resulting liabilities[81]. - The company is involved in legal proceedings with potential exposure estimated at up to approximately $40 million as of September 30, 2024[86]. Stock and Shareholder Activities - The company repurchased common stock amounting to $8 million during the third quarter of 2024[19]. - As of September 30, 2024, the company has approximately $794 million remaining available for stock repurchases under the Stock Repurchase Program[89]. - The company repurchased approximately 0.1 million shares of common stock at a cost of approximately $8 million during the nine months ended September 30, 2024[89]. - The company repurchased approximately 422 thousand shares of common stock at a cost of approximately $34.5 million under the Stock Repurchase Program in October 2024[125]. Segment Performance - Avis Budget Group operates in two reportable segments: Americas and International, focusing on vehicle rental and car sharing operations[22]. - The Americas region generated revenues of $2,640 million for the three months ended September 30, 2024, down from $2,736 million in 2023, a decrease of approximately 3.5%[35]. - International segment revenues were $2,085 million, with adjusted EBITDA of $172 million for the same period[124]. - As of September 30, 2024, International's segment assets under vehicle programs increased to approximately $4.1 billion from $3.7 billion as of December 31, 2023[124]. Market Risks and Sensitivities - A sensitivity analysis indicated that a hypothetical 10% change in interest or currency exchange rates would not have a material impact on the company's results of operations, balance sheet, and cash flows[184]. - The company anticipates that commodity price exposure related to fluctuations in unleaded fuel prices will remain a market risk exposure for the foreseeable future[184]. - A 10% change in the price of unleaded fuel is not expected to have a material impact on the company's earnings for the period ended September 30, 2024[184].