Avis Budget Group, Inc. · NASDAQ:CAR
Avis Budget — Q1 2021 Earnings Presentation
18 slides from Avis Budget's earnings presentation, May 4, 2021
Slide 1: Avis Investor Presentation
Avis Investor Presentation May 4, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Non-GAAP Financial Measures Avis Budget Group (“Avis” or ”the Company”) emphasizes that 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-
Slide 3: Agenda
Agenda • Company Overview • Financial Results & Update • Liquidity and Leverage Summary • Safety & Strategy 3
Slide 4: Overview and Brands
Overview and Brands • We are a leading global provider of mobility solutions with a portfolio of premium and leisure car rental and sharing brands: - Approximately 10,600 rental locations in ~180 countries around the world. - Zipcar is the world's leading car sharing network with more than one milli
Slide 5: Diversified Revenue Stream
Diversified Revenue Stream 35% 50% Budget Off-Airport Brand 55% Airport Avis 50% 10% On-Airport Other 40% Commercial 27% International Customer Segment 60% Leisure 73% Americas All numbers are approximate as of year ended December 31, 2020 Budget brand includes Budget Truck. Other brands include Zip
Slide 6: Agenda
Agenda • Company Overview • Financial Results & Update • Liquidity and Leverage Summary • Safety & Strategy 6
Slide 7: Q1 2021 Results
Q1 2021 Results Revenue & Other Metrics • Revenue declined 22% to $1,372m in the quarter. $ Millions Revenue Adjusted EBITDA Reported We capitalized on pent up demand from customers that couldn’t travel during the fourth quarter $47 $1,753 holidays. (22%) – Americas Revenue decreased 14% to $1,080m.
Slide 8: Semiconductor Shortage
Semiconductor Shortage The semiconductor shortage has impacted our industry, however… • In the first quarter, we purchased more than $3 billion of fleet and added $900 million of new fleet commitments. • We have long standing relationships with our key manufacturers that have been built over decades
Slide 9: Agenda
Agenda • Company Overview • Financial Results & Update • Liquidity and Leverage Summary • Safety & Strategy 9
Slide 10: Corporate Debt Overview
Corporate Debt Overview Covenant Relief and Financial Management • In March 2021, we issued $600 million of 5.375% Senior Unsecured Notes due 2029 to redeem all of the $500 million Senior Secured Notes due 2025. • In March 2021 we issued $500 million of 4.75% Senior Unsecured Notes due 2028, with pr
Slide 11: Fleet Debt Overview
Fleet Debt Overview Structural Highlights • We have $5.4 billion in cash and capacity at March 31 ensuring we can fund beyond 2019 levels. • Our vehicle securitization debt is comprised of ABS term debt and bank conduit facilities around the world. • We were in compliance with all requirements as of
Slide 12: Agenda
Agenda • Company Overview • Financial Results & Update • Liquidity and Leverage Summary • Safety & Strategy 12
Slide 13: Our Unwavering Commitment to Safety
Our Unwavering Commitment to Safety The Avis Safety Pledge is our commitment to keep you safe. We’ve built strategic partnerships with RB, the maker of Lysol, and health experts to provide the latest guidance and best practices for disinfecting vehicles, training our employees and helping to protect
Slide 14: Longer Term: Six Areas of Strategic Focus
Longer Term: Six Areas of Strategic Focus • Our strategic priorities remain unchanged despite the pandemic. Local Market, Ride-hail, and Alternative Disposition Customer Experience Package delivery Channels Connected Cars and International Integration Organizational Efficiencies Technology 14
Slide 15: Appendix
Appendix
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 and a description of what they represent. The GAAP measures most directly
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Reconciliation of net income to Adjusted EBITDA (in millions): Three Months Ended March 31, 2021 2020 Net loss $ (170) $ (158) Benefit from income taxes (80) (107) Loss before income taxes (250) (265) Add certain items: Early extinguishment of debt 129 4 Restructu
Slide 18: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Reconciliation of net loss to adjusted net loss (in millions, except per share data): Three Months Ended March 31, 2021 2020 Net loss $ (170) $ (158) Add certain items, net of tax: Early extinguishment of debt 96 3 Restructuring and other related charges 15 33 Acq