Today Avis Budget Group reported positive adjusted EBITDA of $220 million in the third quarter of 2020, despite revenue being down 44% compared to the same period in the prior year.
Avis reported net income of $45 million and adjusted net income of $79 million on a sequential improvement in rental demand and by rightsizing its vehicle fleet. This turnaround compares to a net loss of $481 million in the second quarter, where total revenues were down 67% year-over-year.
The company said it benefited from the strong global used vehicle market and sold over 100,000 vehicles globally and 75,000 vehicles in the U.S., exceeding the prior year's vehicle dispositions by 50%. A record 49,000 vehicles were sold through alternative channels.
Fleet for the quarter was down 29% year-over-year with global utilization peaking in the 70% range.
During the quarter Avis removed about $1 billion of costs, bringing the total to $2 billion year to date and on track for more than $2.5 billion of cost removal for the full year, the company said.
Avis reported $2.4 billion in liquidity at the end of the quarter, which it said is now robust enough to return the excess equity accessed earlier in the year back into its ABS facilities. “This will position us to fund the purchase of our 2021 fleet appropriately,” the company said in a statement.
The company said it continues to expand contactless rentals for Avis Preferred customers through its app.