Avis Budget Group, Inc. · NASDAQ:CAR
Avis Budget — Q1 2019 Earnings Presentation
18 slides from Avis Budget's earnings presentation, May 2, 2019
Slide 1: First Quarter 2019 Earnings Call
2019 FIRST QUARTER EARNINGS CALL May 2, 2019 Webcast: ir.avisbudgetgroup.com Dial-in: (773) 756-0108 Replay: (203) 369-3335 Passcode: 9806274
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Statements about future results made in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include projections. These statements are based on current expectatio
Slide 3: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS Revenue $1,968 $1,920 • Rental Days increased 2% driven by strong International volume • Revenue and Revenue per Day were 2% lower First Quarter First Quarter Pricing flat in the Americas and down in International 2018 2019 Revenue had a $56 million impact from currency
Slide 4: Enhancing the Customer Experience
ENHANCING THE CUSTOMER EXPERIENCE Enhancing The Avis App • Split-bill functionality Beginning this month customers will be able to purchase ancillaries or car upgrades with their personal card • Partnership with Arrive Added nationwide off-street parking reservations to the Avis App Enhancing Th
Slide 5: Digitizing Our Business
DIGITIZING OUR BUSINESS Driving Efficiencies Through Connected Car Connected Fleet • Plan to more than double the amount of connected cars over last year • Standalone devices from I.D. Systems and Continental • OEM-enabled connected cars from Ford, Peugeot, and Toyota Improving Margins Operationaliz
Slide 6: Mobility
MOBILITY Zipcar Flex • Spontaneous one-way mobility • 10 boroughs of London and the Heathrow airport • Partnered with Volkswagen to bring over 300 electric e-golfs to our fleet Via Van • Launched fleet management services in Seattle Lyft • Initial partnership in 3 cities • Expanding to more cities i
Slide 7: Americas First Quarter Results
AMERICAS FIRST QUARTER RESULTS Revenue $1,348 $1,327 • Flat Revenue per Day despite Easter shift Underlying leisure pricing growth for seven quarters Direct website sales up 7% First Quarter First Quarter • 1% lower volume 2018 2019 • Revenue 2% lower in the quarter Adjusted EBITDA $35 • Per-Uni
Slide 8: International First Quarter Results
INTERNATIONAL FIRST QUARTER RESULTS Revenue • Revenue increased 4% excluding exchange rate effects $620 $593 Revenue per Day decreased 4% Volume grew 8% First Quarter First Quarter • Revenue decreased 4% after a $50 million impact from 2018 2019 currency exchange rates Adjusted EBITDA • Per-Unit
Slide 9: Strong Cash Flow and Funding Position
STRONG CASH FLOW AND FUNDING POSITION Net Corporate Leverage • Adjusted Free Cash Flow was an outflow of $46 million 4.0x • Net Corporate Leverage within our targeted range of 3-4x 3.8x • $3.3 billion of liquidity • No corporate debt maturities until 2023 March 31 March 31 2018 2019 Net cash provide
Slide 10: 2019 Outlook
2019 OUTLOOK Year-over-Year ($’s in millions, except EPS) Full-Year Growth Revenues 9,200 – 9,500 [3-6%] 2% Adjusted EBITDA 750 – 850 [1-10%] 2% Non-vehicle D&A 215 [4%] 10% Non-vehicle Interest expense 185 (2%) [6%] Adjusted pretax income 350 – 450 1% [(5%)-16%] Adjusted diluted EPS 3.35 – 4.20 3%
Slide 11: 2019 Adjusted Free Cash Flow Outlook
2019 ADJUSTED FREE CASH FLOW OUTLOOK ($’s in millions) Full-Year Adjusted pretax income 350 – 450 Plus: Non-vehicle D&A 215 Less: Capex (235) Less: Cash taxes (55) – (65) Plus: Vehicle programs, (25) – (65) Working capital and other Adjusted Free Cash Flow 250 – 300 See appendix for definitions of f
Slide 12: Summary
SUMMARY • 2019 Adjusted EBITDA guidance remains unchanged • Strong first quarter driven largely by a stable Americas pricing environment and significantly lower Per-Unit Fleet Costs • Leisure pricing in the Americas continues to grow Underlying leisure pricing has increased year-over-year for seve
Slide 13: Avis Budget Group
avis budget group
Slide 14: Appendix
APPENDIX
Slide 15: 2019 Currency Outlook
2019 CURRENCY OUTLOOK First Second Third Fourth Full Year ($’s in millions) Quarter Quarter Quarter Quarter Revenue (56) (44)-(37) (26)-(19) (4)-2 (130)-(110) Adjusted EBITDA (1) (15)-(10) (8)-(5) (1)-1 (25)-(15) (net of hedging) A-1
Slide 16: Definitions
DEFINITIONS This presentation includes certain non-GAAP (generally accepted accounting principles) financial measures as defined under SEC rules. We have provided below reasons why we present these non- GAAP financial measures, a description of what they represent and a reconciliation to the most co
Slide 17: Reconciliations of Non-GAAP Measures
RECONCILIATIONS OF NON-GAAP MEASURES Reconciliation of net loss to Adjusted net loss (in millions, except per-share amounts): Three Months Ended March 31, 2019 2018 Net loss $ (91) $ (87) Add certain items, net of tax: Restructuring and other related charges 16 4 Acquisition-related amortization exp
Slide 18: Reconciliations of Non-GAAP Measures
RECONCILIATIONS OF NON-GAAP MEASURES Reconciliation of Net Corporate Debt (in millions): March 31, March 31, 2019 2018 Corporate debt $ 3,524 $ 3,607 Less: Cash and cash equivalents 540 544 Net Corporate Debt $ 2,984 $ 3,063 Last 12 Months Ended Last 12 Months Ended Reconciliation of net income to A