Avis Budget Group, Inc. · NASDAQ:CAR
Avis Budget — Q4 2018 Earnings Presentation
18 slides from Avis Budget's earnings presentation, Feb 21, 2019
Slide 1: Fourth Quarter 2018 Earnings Call
2018 FOURTH QUARTER EARNINGS CALL February 21, 2019 Webcast: ir.avisbudgetgroup.com Dial-in: (630) 395.0021 Replay: (402) 220-6430 Passcode: 2995545
Slide 2: Forward-Looking Statements
FORWARD- 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 e
Slide 3: Highlights
HIGHLIGHTS Adjusted Diluted EPS Full- Full-Year $3.65 • Ninth consecutive year of revenue growth $2.85 28% • Adjusted EBITDA increased 6% Margin expanded 30 basis points Full-Year Full-Year • Record Adjusted diluted earnings per share 2017 2018 Fourth Quarter $0.53 • Americas Revenue per Day increas
Slide 4: Profitable Revenue Growth
PROFITABLE REVENUE GROWTH Enhanced Avis Mobile App • Greater vehicle selection • Lock and unlock connected vehicles • Real-time airport shuttle bus tracking Optimized Our Global Network • Acquired Morini, Turiscar and 40% interest in Greece licensee • Licensed Avis in Japan and Budget in Taiwan Laun
Slide 5: Expanding Margins
EXPANDING MARGINS Driving Efficiencies Through Connected Car Fully Connected • New agreements with Toyota, Peugeot and Ford to add more than Fleet by 2020 50,000 new OEM-enabled connected vehicles • Expanded existing agreements with Continental and I.D. Systems enabling us to connect additional 125,
Slide 6: Mobility
MOBILITY Fetch • On-demand Budget Truck rentals in Florida • Enabling our customers to control entire process through their smart device Fleet Management as a Service • Providing fleet management services for Waymo’s autonomous fleet • Partnered with ViaVan to provide on-demand van- pooling services
Slide 7: Americas Fourth Quarter Results
AMERICAS FOURTH QUARTER RESULTS Revenue $1,404 $1,382 • Increased revenue 2% • Revenue per Day increased 2.5% Sixth consecutive quarter of higher underlying pricing Fourth Quarter Fourth Quarter • New revenue management system now live across the 2017 2018 United States Adjusted EBITDA $123 $107 • P
Slide 8: International Fourth Quarter Results
INTERNATIONAL FOURTH QUARTER RESULTS Revenue $637 $646 • Revenue 6% higher excluding exchange rate effects • Strong volume growth including benefit of acquisitions Organic volume increased 6% Fourth Quarter Fourth Quarter • Revenue per Day 5% lower 2017 2018 Continued difficult market conditions and
Slide 9: Strong Cash Flow and Funding Position
STRONG CASH FLOW AND FUNDING POSITION Net Corporate Leverage • Generated $430 million of Adjusted Free Cash Flow for the year 4.1x Acquisitions and investments of $124 million 3.8x Repurchased 5.9 million shares in the year for $200 million • Invested $231 million in capex • $4.1 billion of availabl
Slide 10: 2019 Outlook
2019 OUTLOOK Year- Year-over- over-Year ($’s in millions, except EPS) Full- Full-Year Growth Revenues 9,200 – 9,500 [3--6%] [32% Adjusted EBITDA 750 – 850 [1- -10%] [12% Non-vehicle D&A 210 [4%] 8% Non-vehicle Interest expense 190 1% [6%] Adjusted pretax income 350 – 450 1% [(5%)- [(5%)-16%] Adjuste
Slide 11: 2019 Adjusted Free Cash Flow Outlook
2019 ADJUSTED FREE CASH FLOW OUTLOOK ($’s in millions) Full- Full-Year Adjusted pretax income 350 – 450 Plus: Non-vehicle D&A 210 Less: Capex (235) Less: Cash taxes (55) – (65) Plus: Vehicle programs, (20) – (60) Working capital and other Adjusted Free Cash Flow 250 – 300 See appendix for definition
Slide 12: Summary
SUMMARY • Ninth consecutive year of revenue growth • Americas EBITDA increased 15% for the fourth quarter • Strong growth from Amazon customers • Global connected fleet by 2020 • Investing for growth through both strategic capex investments and acquisitions • Strong funding position with no corporat
Slide 13: Avis Budget Group
avis budget group
Slide 14: Appendix
APPENDIX
Slide 15: 2019 Currency Outlook
2019 CURRENCY OUTLOOK First Second Third Fourth Full Year ($’s in millions) Quarter Quarter Quarter Quarter Revenue (50)-(45) (29)-(24) (7)-(2) 6-11 (80)-(60) Adjusted EBITDA (7)-(4) (12)-(9) (2)-0 1-3 (20)-(10) (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- NON-GAAP MEASURES Reconciliation of net income to Adjusted net income (in millions, except per-share amounts): Three Months Ended December 31, 2018 2017 Net Income $ 13 $ 220 Add certain items, net of tax: Acquisition-related amortization expense 10 9 Early extinguishment of
Slide 18: Reconciliations of Non-GAAP Measures
RECONCILIATIONS OF NON- NON-GAAP MEASURES Reconciliation of Net Corporate Debt (in millions): December 31, December 31, 2018 2017 Corporate debt $ 3,551 $ 3,599 Less: Cash and cash equivalents 615 611 Net Corporate Debt $ 2,936 $ 2,988 Reconciliation of net income to Adjusted EBITDA (in millions): Y