Avis Budget Group Removes over $1 Billion in Expenses in Second Quarter to Mitigate Impacts of COVID-19

About this update from Avis Budget Group, Inc.

[{"type":"text","content":"PARSIPPANY, N.J., July 28, 2020 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) today announced second quarter 2020 financial results, with a Net loss of $481 million and an Adjusted net loss of $388 million. Total Revenues were down 67% year-over-year.\n Throughout the quarter, we increased the magnitude of our cost removal actions, and currently are targeting over $2.5 billion on an annualized basis. Adjusted EBITDA for the second quarter was a loss of $382 million, but sequentially improved each month as we adjusted to market dynamics and right sized our fleet. The quarter culminated with an Adjusted EBITDA loss of $28 million for June, highlighted by positive Adjusted EBITDA of $3 million in the Americas segment. Our liquidity at the end of the quarter was $1.5 billion. We estimated cash burn would be approximately $900 million, including $100 million in previously scheduled debt retirements. Our second quarter cash burn was $580 million, an improvement of $320 million, or 36%, to our prior estimates, due to continued vigilance around expense control and stronger than anticipated vehicle fleet disposals. We capitalized on a rapidly recovering used car market and sold nearly double the number of vehicles targeted in our second quarter operational plan. In the U.S., vehicle sold in the month of June exceeded the prior year by 30%. Ending fleet for the quarter was down 26% year-over-year. We finished June with global utilization in the 50% range and maintain the ability to flex our fleet size up or down allowing us to react to increased demand or further travel disruptions. Per-unit fleet costs were $221 per month, a 17% reduction year-over-year. “I am grateful for the professionalism and dedication of our team members who persevered through a historic and challenging period to deliver for our company,” said Joe Ferraro, Avis Budget Group Chief Executive Officer. “We accomplished this by quickly identifying the impact that COVID-19 would have on our business, taking immediate actions to shrink our fleet to match demand, executing a debt financing transaction to build additional liquidity, cutting over $1 billion in expenses across our business and launching a campaign to address the safety of our employees and customers. We believe our quick and targeted action has positioned us to both navigate the pandemic and capit...

More updates from Avis Budget Group, Inc.