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Avis Budget Group Reports Positive EBITDA for Q4

Despite historically low revenues for the fourth quarter, Avis achieved a historically high earnings margin after cutting $500 million in expenses.

February 16, 2021
Avis Budget Group Reports Positive EBITDA for Q4

Avis Budget Group reported a positive adjusted EBITDA for the second quarter in a row.

Photo by Atomic Taco/flickr

2 min to read


For the fourth quarter of 2020, Avis Budget Group reported a positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $74 million, despite revenue dropping to $1.355 billion, down 37% compared to the prior year. Net loss for the quarter was $90 million.

In the Americas region specifically, Avis achieved its best fourth quarter adjusted EBITDA margin on the lowest fourth quarter revenue base in the company’s history, said Avis Budget Group CEO Joe Ferraro in a statement. This comes after removing more than $500 million in the quarter and $2.5 billion in costs for the full-year 2020.

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Full-year revenue in 2020 was down to $5.4 billion, a 41% drop compared to 2019, with a net loss of $684 million and an adjusted EBITDA loss of $175 million, due to the effects of the COVID-19 pandemic.

The company was aided by an unusually strong used car market in 2020 on short wholesale supply. Avis said it “profitably” disposed of about 250,000 vehicles for the full year, with over half sold through alternative channels as physical auctions were shut down for most of the year.

Avis also reported successfully amending its credit agreements, gaining additional liquidity, and lowering its interest rate on asset-backed securities for 2020.

The company said it is continuing to expand contactless rentals for Avis Preferred customers through its app.

Due to the continued uncertainties of travel, Avis declined to provide guidance. “However, we remain optimistic about those factors we can control in 2021 and specifically around our ability to minimize cost accretion as revenues return,” the company said in a statement.

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