Avis Budget Group, Inc. · NASDAQ:CAR
Avis Budget — Q4 2020 Earnings Presentation
23 slides from Avis Budget's earnings presentation, Feb 17, 2021
Slide 1: Avis Investor Presentation
Avis Investor Presentation February 17, 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: Q4 2020 Results
Q4 2020 Results Revenue & Other Metrics • Revenue declined 37% to $1,355m in the quarter. $ Millions Revenue Adjusted EBITDA Reported – Americas Revenue decreased 33% to $143 $1,029m. Utilization peaked in the $2,162 $16 quarter at approximately 70% range. $74 (37%) $632 – International Revenue decl
Slide 8: FY 2020 Results
FY 2020 Results Revenue & Other Metrics $ Millions Revenue Adjusted EBITDA Reported $788 • Full year Revenue decreased 41% to $5.4b. $9,172 – Americas Revenue decreased 38% to $203 $4.0b, with Rental Days down 36% and $2,820 Revenue per Day down 3%. (41%) $5,402 $652 – International Revenue decrease
Slide 9: Significant Cost Removal Efforts & Dramatic Fleet Actions
Significant Cost Removal Efforts & Dramatic Fleet Actions Fourth Quarter • Expenses finished 31% lower in the quarter than the prior year, as we removed more than $500 million of costs in the last three months. • We capitalized on a robust used car market to shrink the fleet, selling more than 40,00
Slide 10: Ability to Match Fleet to Demand
Ability to Match Fleet to Demand • Unlike other travel-related industries, we have repeatedly demonstrated our ability to rapidly scale fleet to match demand. Total Company – Average Fleet vs. Rental Days 20% 0% % Change YoY (20%) (40%) (60%) (80%) Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 De
Slide 11: Agenda
Agenda • Company Overview • Financial Results & Update • Liquidity and Leverage Summary • Safety & Strategy 11
Slide 12: Liquidity and Cash Burn
Liquidity and Cash Burn • Adjusted Free Cash Flow for the year was negative $405 million, which was offset by our corporate debt issuances. • We ended the quarter with $1.3 billion in liquidity, after returning more than $600 million back into our vehicle programs. • With $6.8 billion of funding cap
Slide 13: Corporate Debt Overview
Corporate Debt Overview Covenant Relief and Financial Management • On April 27th, we amended our Credit Agreement providing for the suspension of their leverage maintenance covenant through June 2021 and allowing additional first lien indebtedness of $750 million. • On May 12th, we issued $500 milli
Slide 14: Fleet Debt Overview
Fleet Debt Overview Structural Highlights • We have $6.8 billion in cash and capacity at December 31 ensuring we can fund beyond 2021 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
Slide 15: Agenda
Agenda • Company Overview • Financial Results & Update • Liquidity and Leverage Summary • Safety & Strategy 15
Slide 16: 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 17: 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 17
Slide 18: Appendix
Appendix
Slide 19: 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 20: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Reconciliation of net income to Adjusted EBITDA (in millions): Three Months Ended December 31, 2020 2019 Net income (loss) $ (90) $ 142 Benefit from income taxes (45) (128) Income (loss) before income taxes (135) 14 Add certain items: COVID-19 charges (A) 32 - Res
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Reconciliation of net income (loss) to adjusted net income (loss) (in millions, except per share data): Three Months Ended December 31, 2020 2019 Net income (loss) $ (90) $ 142 Add certain items, net of tax: COVID-19 charges 23 - Restructuring and other related ch
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Reconciliation of net income (loss) to Adjusted EBITDA (in millions): Twelve Months Ended December 31, 2020 2019 Net income (loss) $ (684) $ 302 Benefit from income taxes (272) (15) Income (loss) before income taxes (956) 287 Add certain items: COVID-19 charges (A
Slide 23: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Reconcillia tion of income (loss) before income ta xes to A djusted Free ca sh Flow: Yea r E nded Yea r E nded (in millions) December 31, 2020 December 31, 2019 Income (loss) before income ta xes $ (956) $ 287 Add-back of non-vehicle related depreciation and amort