Avis Budget Group, Inc. saw strong demand and seasonal revenue per day increase as 2023 invites a travel resurgence, according to second quarter results the company released July 31.
Avis ended the quarter with revenues of $3.1 billion. Net income was $436 million and its adjusted EBITDA was $737 million. Usage was up 50 basis points compared to second-quarter 2022, at 70.5%, as its fleet continues to be well positioned to meet growing demand.
The Parsippany, New Jersey-based company said it had profit of $11.01 per share, according to The Washington Post. The results surpassed Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $9.79 per share, the Post reported.
The Avis liquidity position at the end of Q2 was about $1.1 billion, with an additional $1.1 billion of fleet funding capacity. The company has well-laddered corporate debt, and after giving effect to its euro note repayment in September 2023, will have no meaningful maturities until mid-2025.
“Our strong second quarter results continued to showcase the earnings power of our company,” said Joe Ferraro, Avis Budget Group CEO. “These results reflect the hard work of our team and their exceptional ability to capitalize on a strong and increasing travel demand environment. Summer travel has continued to be robust with elevated peak period demand and seasonally improved pricing. Our teams remain focused and ready as we transition into our busiest season of the year.”
Q2 Financial Performance Highlights
- Revenues were $3.1 billion with rental days up 4% compared to second-quarter 2022.
- Adjusted EBITDA in the Americas was $631 million, driven by strong demand and improved usage.
- Adjusted EBITDA in the international division was $126 million, driven by strong seasonally increasing volume.
- Voluntary cash contribution of nearly $400 million to vehicle programs in the quarter.
- In July 2023, Avis issued €400 million senior notes due July 2030 primarily to redeem our outstanding €300 million senior notes due November 2024.