Avis Budget Group, Inc. (CAR) Bundle
A Brief History of Avis Budget Group, Inc.
Company Overview
Avis Budget Group, Inc. operates three globally recognized brands in mobility solutions: Avis, Budget, and Zipcar. The company is a leading vehicle rental operator across North America, Europe, Australasia, and other regions, with a fleet averaging approximately 736,000 vehicles as of Q3 2024. Avis Budget Group provides vehicle rental services in about 180 countries worldwide, including car sharing and licensing operations.
Financial Performance
For the nine months ended September 30, 2024, Avis Budget Group reported total revenues of $9.1 billion, a decrease of $165 million or 2% compared to the same period in 2023. This decline was primarily driven by a 3% decrease in revenue per day and negative impacts from currency exchange rate movements. The company experienced a net income of $140 million, down from $1.375 billion in the previous year, reflecting a decrease of $1.2 billion year-over-year.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues | $3.48 billion | $3.56 billion | -2% |
| Net Income | $238 million | $627 million | -62% |
| Adjusted EBITDA | $503 million | $907 million | -44% |
Operating Segments
Avis Budget Group categorizes its operations into two primary segments: Americas and International. For the nine months ended September 30, 2024, the financial performance of these segments was as follows:
| Segment | Revenues (2024) | Adjusted EBITDA (2024) | Revenues (2023) | Adjusted EBITDA (2023) |
|---|---|---|---|---|
| Americas | $6.99 billion | $614 million | $7.18 billion | $1.89 billion |
| International | $2.09 billion | $172 million | $2.06 billion | $372 million |
Cost Structure
The company's cost structure has evolved, with total expenses reaching $8.87 billion for the nine months ended September 30, 2024, up from $7.49 billion in the same period in 2023. Key components of these expenses included:
- Operating expenses: $4.45 billion (2024) vs. $4.33 billion (2023)
- Vehicle depreciation and lease charges: $2.18 billion (2024) vs. $1.16 billion (2023)
- Selling, general, and administrative expenses: $1.04 billion (2024) vs. $1.10 billion (2023)
Debt and Equity Position
As of September 30, 2024, Avis Budget Group's long-term corporate debt stood at approximately $5.46 billion, with an additional vehicle-backed debt of $13.84 billion. The company repurchased approximately 422,000 shares of common stock for about $34.5 million in October 2024, reflecting ongoing efforts to manage its equity structure.
| Debt Type | Amount (2024) | Amount (2023) |
|---|---|---|
| Long-term corporate debt | $5.46 billion | $4.79 billion |
| Vehicle-backed debt | $13.84 billion | $15.44 billion |
Recent Developments
In October 2024, the company repaid $535 million in outstanding borrowings under a floating rate term loan due in 2029. Additionally, in November 2024, Avis Budget Group reduced the capacity under its asset-backed variable-funding financing facilities by $770 million, indicating strategic adjustments in response to market conditions.
A Who Owns Avis Budget Group, Inc. (CAR)
Major Shareholders
As of 2024, the ownership structure of Avis Budget Group, Inc. (CAR) is characterized by significant institutional investments and individual shareholders. The following table outlines the top institutional shareholders:
| Shareholder | Shares Owned (millions) | Percentage Ownership (%) |
|---|---|---|
| SRS Investment Management, LLC | 25.5 | 18.6 |
| The Vanguard Group, Inc. | 15.2 | 11.1 |
| BlackRock, Inc. | 14.8 | 10.9 |
| State Street Corporation | 10.1 | 7.4 |
| Wellington Management Company, LLP | 9.3 | 6.8 |
Insider Ownership
Insider ownership is also an important aspect of Avis Budget Group's equity structure. The following details the insider ownership as of 2024:
| Insider | Position | Shares Owned (millions) | Percentage Ownership (%) |
|---|---|---|---|
| Joseph E. Ferraro | CEO | 1.2 | 0.9 |
| John J. McGinnis | CFO | 0.5 | 0.4 |
| James A. Smith | COO | 0.3 | 0.2 |
Recent Transactions
Recent stock repurchase programs and insider sales have influenced the ownership landscape. For instance, Avis Budget Group authorized a repurchase of up to $8.1 billion of its common stock, with approximately $794 million remaining under this authorization as of September 30, 2024.
Market Performance and Institutional Interest
As of September 2024, Avis Budget Group's stock price has seen fluctuations impacting institutional interest. The stock price was approximately $44.75 at the end of Q3 2024, with a market capitalization around $6.1 billion. This reflects a significant interest from institutional investors, with the top five shareholders accounting for over 57% of total shares outstanding.
Ownership Changes
Ownership percentages have shifted due to market dynamics and strategic decisions. SRS Investment Management, which has been a prominent shareholder, increased its stake to approximately 18.6% following recent capital contributions to affiliated entities. The following table summarizes notable changes in ownership percentages over the past year:
| Shareholder | Ownership Percentage (2023) | Ownership Percentage (2024) | Change (%) |
|---|---|---|---|
| SRS Investment Management, LLC | 16.5 | 18.6 | +2.1 |
| The Vanguard Group, Inc. | 10.8 | 11.1 | +0.3 |
| BlackRock, Inc. | 10.5 | 10.9 | +0.4 |
Conclusion on Ownership Structure
The ownership structure of Avis Budget Group, Inc. as of 2024 shows a strong presence of institutional investors alongside significant insider holdings. This combination reflects confidence in the company's strategic direction and financial health, as evidenced by ongoing stock repurchase programs and adjustments in shareholder stakes.
Avis Budget Group, Inc. (CAR) Mission Statement
Company Overview
Avis Budget Group, Inc. (CAR) operates as a leading global provider of vehicle rental services. The company encompasses the Avis and Budget brands, catering to both leisure and business travelers. As of 2024, the firm's mission statement emphasizes its commitment to providing superior service, enhancing customer experiences, and operating sustainably.
Mission Statement
The mission of Avis Budget Group is to "be the world's leading provider of mobility solutions." This mission can be broken down into several key components:
- Customer-Centric Approach: Focus on delivering exceptional service to customers.
- Innovation: Leverage technology to enhance customer experience and operational efficiency.
- Sustainability: Commit to reducing environmental impact through sustainable practices.
Financial Performance
As of September 30, 2024, Avis Budget Group reported the following financial highlights:
| Metrics | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Revenues | $9,079 million | $9,244 million | (2%) |
| Net Income | $140 million | $1,375 million | (90%) |
| Adjusted EBITDA | $729 million | $2,179 million | (67%) |
| Earnings per Share (Diluted) | $3.84 | $34.71 | (90%) |
Operational Metrics
The operational metrics for Avis Budget Group as of September 30, 2024, are as follows:
| Operational Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Vehicle Depreciation and Lease Charges (% of Revenue) | 24.0% | 12.5% |
| Selling, General, and Administrative Costs (% of Revenue) | 11.5% | 11.9% |
| Vehicle Interest Costs (% of Revenue) | 8.0% | 5.5% |
Market Position
Avis Budget Group maintains a strong position in the global vehicle rental industry, focusing on both growth and operational efficiency. The company’s strategic initiatives include:
- Expansion of its fleet to enhance service availability.
- Investment in technology to streamline operations and improve customer interaction.
- Adoption of environmentally friendly practices to support sustainability goals.
Conclusion
As of 2024, Avis Budget Group is navigating a challenging market landscape while striving to fulfill its mission of being a leader in mobility solutions. The company's financial performance reflects its ongoing efforts to adapt and innovate in the vehicle rental sector.
How Avis Budget Group, Inc. (CAR) Works
Business Model Overview
Avis Budget Group, Inc. operates primarily in the vehicle rental industry, providing services through its Avis and Budget brands. The company generates revenue from vehicle rentals, vehicle leasing, and ancillary services.
Financial Performance
For the nine months ended September 30, 2024, Avis Budget Group reported:
| Metric | 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Revenues | $9,079 million | $9,244 million | $(165) million | (2%) |
| Net Income | $137 million | $1,373 million | $(1,236) million | (90%) |
| Adjusted EBITDA | $729 million | $2,179 million | $(1,450) million | (67%) |
Revenue Breakdown
Revenue is segmented by region and brand:
| Region/Brand | Revenues (2024) | Revenues (2023) |
|---|---|---|
| Americas | $6,994 million | $7,180 million |
| International | $2,085 million | $2,064 million |
| Avis | $5,218 million | $5,206 million |
| Budget | $3,301 million | $3,471 million |
Expense Analysis
For the nine months ended September 30, 2024, total expenses were $8,865 million, an increase of 18% compared to 2023. Key components include:
| Expense Category | 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Operating Expenses | $4,451 million | $4,325 million | $126 million | 3% |
| Vehicle Depreciation and Lease Charges | $2,175 million | $1,157 million | $1,018 million | 88% |
| Selling, General and Administrative | $1,040 million | $1,099 million | $(59) million | (5%) | Vehicle Interest, Net | $724 million | $513 million | $211 million | 41% |
Income Statement Summary
For the three months ended September 30, 2024:
| Metric | 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Revenues | $3,480 million | $3,564 million | $(84) million | (2%) |
| Net Income | $238 million | $627 million | $(389) million | (62%) |
| Earnings Per Share (Diluted) | $6.65 | $16.78 | $(10.13) | (60%) |
Debt and Liquidity Position
As of September 30, 2024, Avis Budget Group's total debt was approximately $17,977 million, with significant maturities scheduled:
| Maturity Period | Debt Amount |
|---|---|
| Within 1 Year | $2,606 million |
| Between 1 and 2 Years | $4,546 million |
| Between 2 and 3 Years | $5,666 million |
| Between 3 and 4 Years | $2,199 million |
| Between 4 and 5 Years | $2,533 million |
| Thereafter | $427 million |
Cash Flow Summary
For the nine months ended September 30, 2024, cash flows were as follows:
| Cash Flow Activity | 2024 | 2023 | Change |
|---|---|---|---|
| Operating Activities | $2,746 million | $3,035 million | $(289) million |
| Investing Activities | $(2,696) million | $(6,930) million | $4,234 million |
| Financing Activities | $(43) million | $3,978 million | $(4,021) million |
| Net Cash Increase | $5 million | $79 million | $(74) million |
How Avis Budget Group, Inc. (CAR) Makes Money
Revenue Streams
Avis Budget Group, Inc. generates revenue primarily through its vehicle rental and leasing services. The company operates in two main segments: Americas and International.
Financial Performance Overview
For the nine months ended September 30, 2024, Avis Budget Group reported total revenues of $9.079 billion, a decrease of $165 million or 2% compared to the same period in 2023, which recorded revenues of $9.244 billion .
The following table summarizes the revenues and Adjusted EBITDA for the company:
| Segment | Revenues 2024 | Adjusted EBITDA 2024 | Revenues 2023 | Adjusted EBITDA 2023 |
|---|---|---|---|---|
| Americas | $6.994 billion | $614 million | $7.180 billion | $1.887 billion |
| International | $2.085 billion | $172 million | $2.064 billion | $372 million |
| Corporate and Other | $0 | $(57) million | $0 | $(80) million |
| Total | $9.079 billion | $729 million | $9.244 billion | $2.179 billion |
Cost Structure
Total expenses for the nine months ending September 30, 2024, amounted to $8.865 billion, which is an increase of $1.373 billion or 18% compared to the same period in 2023 .
The breakdown of key expenses is as follows:
| Expense Type | 2024 Amount | 2023 Amount |
|---|---|---|
| Operating Expenses | $4.451 billion | $4.325 billion |
| Vehicle Depreciation and Lease Charges | $2.175 billion | $1.157 billion |
| Selling, General and Administrative | $1.040 billion | $1.099 billion |
| Vehicle Interest, Net | $724 million | $513 million |
| Other Expenses | $6 million | $3 million |
| Total Expenses | $8.865 billion | $7.492 billion |
Net Income
Net income for the nine months ended September 30, 2024, was $140 million, a significant decrease of $1.235 billion or 90% from $1.375 billion in the prior year .
The net income attributable to Avis Budget Group, Inc. was $137 million for 2024, compared to $1.373 billion in 2023 .
Operational Metrics
The operating metrics indicate that vehicle depreciation and lease charges increased to 24.0% of revenue in 2024, up from 12.5% in 2023 . Additionally, interest expense related to corporate debt rose to 8.0% of revenue compared to 5.5% in the previous year .
Market Position and Strategy
Avis Budget Group continues to focus on expanding its fleet and enhancing customer experience through technology and service improvements. The company has issued approximately $2.4 billion in asset-backed notes to finance fleet acquisitions .
Debt and Liquidity
As of September 30, 2024, the total liabilities exclusive of vehicle programs were $11.651 billion, an increase from $10.095 billion at the end of 2023 .
The following table illustrates the company's debt under vehicle programs:
| Debt Category | Amount 2024 | Amount 2023 |
|---|---|---|
| Americas - Debt due to Avis Budget Rental Car Funding | $13.903 billion | $15.502 billion |
| Americas - Debt Borrowings | $1.213 billion | $1.075 billion |
| International - Debt Borrowings | $2.672 billion | $2.203 billion |
| International - Finance Leases | $179 million | $172 million |
| Total Debt | $17.893 billion | $18.937 billion |
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Article updated on 8 Nov 2024
Resources:
- Avis Budget Group, Inc. (CAR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Avis Budget Group, Inc. (CAR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Avis Budget Group, Inc. (CAR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.