Avis Budget Group reported a 45% annual drop in third-quarter net income as revenue slipped, while vehicle utilization improved across its fleet and reached a regional record, according to its Nov. 3 results release.
Companywide vehicle utilization was 74%, up two percentage points year over year. In the Americas, the rate rose 2.8 points to 74.1%. Choi said fleet use in the Americas set a new third-quarter mark, even as travel demand weakened.
Consolidated net income was $199 million, compared with $360 million in the same quarter a year earlier. Revenue declined 2% to $3.436 billion for the three months ended Sept. 30. Net income attributable to Avis Budget Group was $183 million, down from $359 million in the year-ago quarter.
Total expenses rose to $3.127 billion from $3.046 billion, while income before taxes fell to $309 million from $473 million. Adjusted EBITDA, a non-GAAP measure, declined 8% to $513 million from $559 million. Its decline was less steep than the change in consolidated net income.
Choi said the company’s fleet management and field operations work is intended to strengthen the economics of each transaction and support more profitable, consistent performance.
Avis Budget said it received $650 million on Oct. 5 under a previously reported settlement with Pentwater Capital Management LP and certain affiliated persons. The company said the payment would be recognized in the fourth quarter. On Nov. 2, it gave notice that it would redeem the remaining $350 million principal on its 5.750% senior notes due 2027 before year-end.
Avis Budget filed a Form 8-K with the U.S. Securities and Exchange Commission (SEC) on Nov. 3. The SEC index lists Item 2.02, results of operations and financial condition, and Item 9.01, financial statements and exhibits.
The company scheduled a call to discuss the results for 8:30 a.m. ET Wednesday, Nov. 4.
