Avis Budget (CAR) 2 May 242024 Q1 Earnings call transcript

Greetings. Welcome to the Avis Budget Group First Quarter Earnings Release Conference Call. [Operator Instructions] As a reminder, today's conference is being recorded.

At this time, I'll turn the conference over to David Calabria, Treasurer and Senior Vice President of Corporate Finance. Mr. your begin may you presentation. Calabria,

and Good for us. you morning, everyone, joining thank

are call our our Financial the with Joe Izzy Chief On me Officer. Martins, and Ferraro, Officer; Chief Executive

I including potential and materially our in other results assumptions, and financial that begin, uncertainties Before uncertainties other remind of our to is our to from risks future non-GAAP refer SEC these results measures. earnings identified all like could to well no not Relations be measures will and to release actual available discussing for forward-looking filings information. Such information, be the and differ assumptions performance, everyone statements that should or define we we we forward-looking we as update periodic guarantees would subject call, will release earnings make to forward-looking prove undertake revise prediction closest comparable how risks, forward-looking the statements. which on may our such measures. and to is our factors our actual and relied the website. with any Investor to financial are statements be as discuss section and Accordingly, of of we inaccurate can obligation this which or about press no in our website as upon On performance. We statements certain GAAP Please future a reconciliations forward-looking cause

over to call turn to like I'd the that, Joe. With

and I'd business a moment to amount stronger fleet But exit their for record billion quarter efforts call, far now, interest future this a record call $XXX business to by of EBITDA hard our need of increased the the of vehicles in joining and to $XX environment fleet Conversely, a gains, today. peak. portray first results, we and bifurcate revenue though, vehicle demonstrated down a saw takeaways. At sequential adjusted healthy ourselves quarter first Thank is positive as quarter on than this this we volume, rightsize selling accurately spend like quarter, of underlying we allow to quarterly our we quarter throughout higher nonrecurring time and summer the earnings and a We flexibility. rightsize the you, first greater into March by everyone, to our will our overall size from and fleet, EBITDA worked our discussed our comparisons reported XXXX get RPD discussing pricing. We'll to this costs ongoing impacts decline of David. Yesterday, call. which first the high appropriately on we you employees the later necessary operating fleet thus took utilization X% adjusted morning, our of quarter steps This our thank $X.X us and to the in and manage to million, a across Good believe right remains impacts sign million. substantial and of our delivered with for the level demand revenue potential. We which as take past quarter improvements thank the a versus position environment finishing last decisions our months to with made both and in robust beyond, we detail for in our rental with for and to on more order world second for is trends, XXXX. the

capture season, But be I and what move a thanks now to to efforts, peak will their strong internationally. I we ready are domestically and both believe believe forward

with billion of $XX with The million Americas first Let's adjusted quarter earned of Americas our do, in around details begin, $X the EBITDA. segment. usually nearly as the we revenue

said earlier, of calls, amount our in transaction higher first season. XXXX. I days for even the were up quarter, As We've planes, when was mentioned volume in people X% record the year-over-year. off-peak volumes the Americas being a with previous in get cars. And on consistently PSA This demand strong quarter they than on our in of the get showed

as Our our sales in bleisure while activity, In the customers busy team has a that continuing seen commercial growth we tech improved business to with of day with leisure activity. renewing add the margins. all partnerships the professional key to and rental trip general, growth to have been to well industries as continue combination a support aerospace, contributing

commercial nearly company. our the loyalty our XXX%, retention partners Our demonstrating rate in and trust customer is have

as down We the quarter starting in first quarter a past the with than down XXXX. When quarter X%. year-over-year, to to up for and third the quarter, begin into which finishing improvement compared sequentially, will we of April, this point pricing continued the continued also the quarter flat we was to us as roughly X% a pricing, we throughout improvement year. continued the first less progressed, exit has a X% of is second the saw January March compared Pricing down allowing in but and our trend we believe busiest saw the fourth This continue, XXXX good we looking is XX% saw ended quarter what of quarter. which

accelerate we that inside industry a We to have to utilization benefits more past said we is closer dispositions maintain made in normalized decision We so fleet conscious and currently, of in this happening pricing norms. our market. see fleet historical demand, can the when the the

at of be costs and vehicle. with $XX,XXX have step of disposed than price us size and Demand We issue a plan consumers the it utilization. behind than our historic our while record will vehicles -- to XX% first to a annual a quarter represent both our driving over attack Our vehicles that April's dispositions, we our in of still a was get the new sales. quickly in number sold we value this can used and keeping critical of of anticipated U.S., and type near- less believe a for in was this point longer-term persists cars control. In more fleet mostly

help build We car this used generators are need. consumer and

the Our while disposition flexibility seasons. the sets the fleet optimize summer allowing foundation first transition strategy base spring the to and year months X into the of the for in our

the Our XX%, was quarter the does utilization but that the for approximately of quarter. not picture give full

As cars, to our of dispose we utilization improve. continued

line XX%, and the we Our March was norms closer of second where quarter goal started being quarter with historic last approximately utilization the bringing to the us exiting in first year. at

to are finished with be utilization to and keep action month focused this expect hyper We around our deep our historic levels. leading seasonally

our as ultimately and eclipse summer year's improve quarter the anticipate we fact, to utilization progresses last In quarterly peak.

that leave I talk fleet but upcoming fleet take about me negotiations. They're fleet, the Before let a be beginning, are and signs just there more affordable. will buy the moment our

OEMs the make well. more from as continue cost-effective that to benefit As vehicles to consumers, for we expect

the OEM regarding As in partners more year the around getting right our XXXX prices. It's purchases. but focused affordable we'll most are vehicles discussions business future have with our always, our at calls model information for early stages,

better for exiting of So recap, the billion increased to had actions $X the second vehicles in in us down down to trends a quarter, to allowing million. to fleet than EBITDA improved These fourth ending Americas the from sequentially the the of the X% align necessary flat. quarter year-over-year allow revenue record quarter, exit X% utilization and first $XX flexibility. On number that. price a anticipate by nearly and the with which quarter about basis, took We strong March of adjusted --

year. of summer as the our start to earlier, that's the a I busiest and And said quarter good place

to the be expect We could over that given third improve demand robust. year, the travel quarter prior continues pricing that

shift international. Let's gears to

see only year, to in pandemic. of fourth XXXX. pace. first We improvement down from down country to compared XX% XX% quarter compared quarter travel returning slow volumes the in to quarter continue were steady of has XXXX, but X% a is the at improvement said up Rental of first the we country been This XXXX. Last to a an slower post from days

However, year. up XX% last travel to inter-European cross-border compared being improvements we are seeing with

was compared last our international volume Additionally, inbound year. XX% up to

our keep have utilizing propensity take in higher-margin to of type, cars the the power North and we of additional the customers As team sales a as was this Americas, to from especially generate products. our ancillary America, busy longer brands stated volume

slightly positive and compared volume into early year summer our into increased cross-border X% peak. Pricing revenues bookings and advantage number. volume just increase generated behind being But like to March down to $XXX we are initial of XXXX of or higher-priced down January heading Europe from and year as of to as X% we a story to last million the rebounding positively a the volumes and the was and to quarter compared in year see for demand compared as the there's last growth, the for off inbound last X% compared With less continuing trending improve being greater activity. the in second well to year. improved cross-border prior Americas, started than took pricing in quarter improved we

of we start rollout. rollout and expect with in our benefits to system our in be proprietary fleet completed June, international demand will Additionally, this pricing seeing

has demand was cars into utilization into second Americas for and quarter, and utilized to as as the been will years which utilization the with many season. positive improve well system, Our in inventory maximizing it now, summer this the and down as both specific prices locations, aligns to margin in contribution the also is designed price. Fleet continue quarter

there that for is the recovery region team it to in believe substantial and returns. capture continue opportunity We is as it to this ready

our are talked where our for we technology, to enhance and leaders Last in expenses. consistently productivity executing projects that believe and industry we and efficiency. could ways to improve looking call, Turning operating about we our

call. wanted have these we of this few a highlight I While to many, on

inflation of outsourced full-time, productivity. jobs and and to processes throughput and vehicles as We such and day These mix locations. In first of location part time needs from better the like have forecasting we using quarter, to wage down to scheduling quarter our X% to data and enhance been compared optimize systems to labor shuttling the and ground for the the increase systems XXXX. faced first nearly opportunities on and allow for by analytics

by However, our labor nearly XX%. initiatives improved productivity

these savings balance analytics year. We parts. costs to at vehicle tires, through glass and using the in-line the looking of such We're expect when also flow as

parts and throughout enables leverage XX% improved vendors, we ensuring on part purchasing car against took use the continuing year. it now also In parts with continue we costs us about savings improves past, decreased expect by connected In we control vehicles. talked manage to but these collection our to insight more gas We're the from actions our these better and power customers, This analytics to optimize most these the variable our asset visibility also we've on service. to over for better each fact, this costs. The quarter, purchase have capability. cost-effective we

that as center these angles reporting The where reducing cameras vehicle designed functionality, with also and better with service We shared of from incidents. We're the recovery system of improved our vehicle both well provides exit loss improved assists downtime return our new types of prevention of piloting have the provide process reduce capture and vehicles. associated an automated as for multiple the we our the costs vehicles, rental. have insights at to

Our the in damage our the dependencies our estimated damage identified, amount time provide out and is our system utilization talk we through downtime recommendations code solution collection on improve asset. the to calls, damage Avis necessary QuickPass to process repair customer costs any reviews detecting, damage of damage a of with our using chain success gates. supply process, after of customers' our unique incremental recoveries. On length access our shortens When each the damage the and to overall shortens to ability each vehicle damage. The feed increase about is events portal, of and to typically I video our system our showing to the video and move submits management check are the at check discovered will reduces rental their to exit on QR new

line. We have the look are utilize to are new of while quickly continually year. adding out assistance needs an where can attend smartphone their and We to customer to the remainder on roll testing a throughout of this currently their associate features a the new form

has service QuickPass Avis preferred the over customer invest years, this and we'll Our continue last been the experience to few in product.

initiatives team enhancing in the to will has obtain unsecured more keys our their excited European biometrics XX also These counter to overall by and customer with say to using who while self-service they experience. kiosks a identify reduce out than locations rolled an to lot bypass allowing the customer now environment I'm help are. costs

the into demand give highest revenue So we demand all the and first while our we to of our us most strong peak. better move maintaining be supply continues with history align to in conclude, our cost first disposed discipline. Travel second summer vehicles history, as in flexibility quarter achieved quarter to We strong.

aligned with is utilization historic Our norms.

quarter and seasons we Our to that head that and busiest to price spring to seasons year. focused price with to as be we performance, to the of continues is stabilize, second believe I continue know and flat our And the expect the into will our exit the especially drive summer prior we year, strong. team

over and I'll outlook. our to With turn liquidity to that, Izzy it discuss earnings,

Thank you, everyone. in results, from which morning, will on today Joe, and reconciled focus our release. comments adjusted press good My numbers our are GAAP our

quarter. in in reflected earned $XX million of our earnings the EBITDA As release, we adjusted

$XXX holdover gains which byproduct year, quarter. was the had of a in in Let these were more given start we million supply post-pandemic the than the year-over-year by replicate of out detailing in were me XXXX fleet not coming costs. interest first gains and and fleet will of Last $XXX oversized the of a imbalance. variances million chain gains, the pandemic, that These fleet

One as driving of sales. of million record quarter $XXX our approximately the gain to rightsize vehicle small compared priorities possible million fleet our sales a last was year. $XX as generated loss These by soon to in as

decline million nearly So was this $XXX year-over-year of alone. quarterly item line our from

our declining impact primary to mix vehicles year-over-year of additional a $XXX is XXXX moved $XXX, this values. our in from In addition, resulting $XX negative model The of into year increase absorption driver million. and straight-line fleet residual the of depreciation

fourth second to $XXX quarters roughly and straight-line in-fleet the to the as potentially stabilizing before model vehicles to CAP third the more at depreciation and per costs. in month increase we throughout 'XX quarter expect year start decreasing We attractive

have we XXXX, may to in the a and vehicles early, conversations go-forward appear OEM U.S. in on have partners our been affordable less model seen year on that is be it with Europe suggest While basis. more the expensive, which

is shifting first Now last throughout of year's interest. vehicle rates this financing XXXX. interest gears on debt all full vehicle a at our vehicle as refinanced quarter The to year was impact in reflected higher

completed In than first notes addition, financings securitization our our billion X for the EMEA funding quarter. we totaling during $X AESOP AESOP renewed issuances, term renewed variable more and

higher came at base the financings drove rates. increase interest these all expected, As the and rates in $XXX higher quarter. These financings million

the position are where team has our materially this busy in and treasury funding Our needs been for complete. put us strong year

be first ultimate experienced fleet costs the other to we quarter year expect and similar We which we be during our quarterly financings the flexibility. any interest evaluate to what opportunistic, in would us gives

revenue X operating a and quarter of direct less prior in points our and by Our SG&A to yet to as largely dispositions due than record percentage percentage well year, expenses the limited grew million. improved removal our increase cost below and volume X% Joe surrounding and to as this outcome activities actions growth by enabled other mitigating our mentioned earlier, compared productivity our technology $XX cost year-over-year

our factors, result adjusted quarter. of EBITDA these million a $XX As for the was

fleet reductions year. quarter, we us more a However, our the successful including for we remainder and strategies, the have positioned took cost of actions during the believe mitigation

is our to strategy When invest improvements margin facilities in allocation, continually efficiencies comes capital experience, cost while changing. to not it customer operational contribution. drive implementing continuously to We technological and our enhance our

and XXX This used quarter, we in $XX to into in the EUR million XXXX. senior XXXX a note first note with than core down remainder XXX same the redeem we've to debt. more maturing our utilized in business, pay issued reinvested quarter our vehicle We million quarter the million amount of the the April, proceeds EUR invested senior

of ABS XX, $X.X March capacity had approximately $XXX facilities. borrowing additional over we with in billion liquidity As million of our of available

laddered ratio continues to the with and until was maturities corporate no leverage Eurobond our redemption, having corporate X.Xx, net XXXX. well debt, including be Our

compliance Additionally, facilities. our we are financing of in all secured with

I Let's move on are outlook. give to what into seeing wanted we quarter. for to you insights second the

expect we with strong and being earlier, digits. in up mentioned single single the to Joe demand low digits the high be As international rental up Americas

month summer each which year. about second sequentially of to the place to be quarter busiest year, our pricing We season good do and prior to is a to the expect exit the better flat and quarter start

keep in the said have should when improve. past, inside we demand, of As we fleet pricing

putting while expect Travel amount largest to summer navigated a we spring in In to stabilize fleet higher well and with appropriate which in our price history, in above optimal representing by peak we discipline. quarter cars the volume, had larger past quarter of fleet third to levels, our our of company while We closing, strong, as gives cost us position the quarter have the achieved into continues highest peak. and we seen first challenges second took the to expense. great the inflationary perform us quarters strong the more first first reduce confidence continues actions more a with XXXX remainder that demand interest year, quarter the and summer we exiting the another head quarter continue through size and be seasons. We for being pressures, with seasonality necessary the the the the to than in maintaining being costs

With any questions. for that, up it let's open

Instructions] is from [Operator first line the of with question Ryan Our Brinkman JPMorgan.

from With to of the over corporate pay allocation buy would or relative down year, to attractiveness rate debt the debt or regard using how to you capital fleet back the operations either shares? of cash balance

or into to year what or of the option progresses or you do makes attractive parts about the year beyond? time? how the the your market price this as see And valuing And operating at at other evolving you one structure that performance and your next capital environment, the own is different which maybe more

earnings future trajectory. around believe still are shares undervalued and our the that We to relative fundamentals current

disposition improvements in rates. interest needed and rising we our to However, our of take technological offset invest fleet strategy, care

the be year it would we in So think of care of. taking what half that's would I the about first

As for half to available continue second all and are of shareholders. opportunities to monitor will year, course, of the that us we the our

spectrum CapEx, options, I M&A, and, earlier. be it or debt repayment, of mentioned share course, onetime evaluate always We regular will as including repurchases, the of full dividend

the all will capital those opportunistically allocate that benefit company. to of stakeholders we best always So our areas of

are. They're then then wanted XXXX, you'd or and back regards $XXX no some to so management check if normalized plan pre-pandemic. been a lot time I that and a Okay. XXXX $X less closer what year about opined submitted for earnings normalized because million than Curious having deemed updated if billion. round be normalized EBITDA be $X the relative billion to trip structurally maybe you here think company billion doing would thoughts Board trying you commentary Great. that about the believe to the just what and the since you you might really in. in done the $X for to in also expected to haven't obviously And But to year, think have than just any EBITDA what billion, changed has were went or the now with maybe to earnings be what updated maybe on in to upcoming earning $X for under I by normalized acceptable amount? the earn call that It's you in

Thanks follow-up for question. the

I would really I'll there's make to mean quite billion say just it to that is has below be acceptable going us. changed. think nothing I $X simply I simple. nothing

leave So that's I really it. where would

then, I hasn't this wasn't changed. although the back role in So strategy

of of the from John Babcock, line America. comes question Bank next Our

seeing what kind you on have cars I some what of go couple about guess of and in just both curious talk seeing residual little older terms of values? just fleet. the a questions just there? out, bit, of you're kind on cars could in here. through could also I newer of trends was starting your If you're you a I

way -- that the you is, cars higher the much cost the pre-pandemic little if bit -- know what fact are stable though of think said the residual our so costs best the the also depreciation, levels. about cost values a quarter, to think and the think think I of I to about holding higher. really think We don't the continues Manheim relates although cap relatively during were it to be than do I I

persists we're the highest So as the year, of pertain throughout call residual curve. it, the point values -- behind,

in amount, have in call, $XX that fleet. We vehicles expect progresses. nominal yet, actually, -- really certain the this the through but do after we potentially today, as you So you to we the first that record within experience with will -- are of million about did heard cohorts be obviously, year decline filing are be and we'll And probably values It's seen our as residual because losses amount our SEC a quarter, challenged still that may may Joe certainly as we the -- there disposed filing we of say, mid-May. with as continue probably quarter. of continue we will a not

The lot is, marketplace know have know. the you do We thing many we noise other I surrounding don't EVs -- EVs. in of a there's as

EVs from consideration. challenged take that, hope of need the to into a so do are was still that irrespective However, helpful. you But that residual value perspective, I

I And Or may think Are of that around last just quarter, unit reasons or sticking Yes, XXXX. that, been think guidance? downwards? it then provided that I for was. $XXX any upwards guidance to depreciation adjusted for are have per you there you also

as first going that and And $XXX, up. we second comments ramp is $XX think still progress in up likely by do my tail we guidance normalize. the is from would we to of about to straight at came say depreciation in most believe I the as that that into said of in -- that loss. I and -- seeing process, negotiation in-fleet it's should my should you said, within model up be told that my fourth about see calendar I the quarter, that important quarter, that, we the 'XX, what's we tell it, prepared the given But in that, the on comments, $XXX. the and you more came going that prepared now how those remarks, expect in more line from $XXX is the I quarters prepared it's to the do year our third. But year of the million we end think in 'XX $XXX early Tell I affordable remarks I can second quarter. the in will tail we're what and

I 'XXs the then it with just And the least affordable. OEMs sorry, just into they play or more become But on Okay. enter will on. one to will pass negotiations? curious, something more that the providing discounts before I more that here indicating have prices this is indication follow-up year? Are those come -- at that probably those offering that Or you next year as you some

that. the the the of Yes, will half expect affordability, is prices cars we about past the when and let year priced this sources that. to into year cars they level public little our we'll color new been lowest this buy year. And I'll of take me add It's that. -- year, being model it question certainly year, on throughout X just are those be buy commit arrive in a back this we to and it's as years. in XXXX I various the that we'll share get mean afforded And next reported buy fair

later. in little in Those bit a little have I like -- my bit. for XXXXs, come Europe, what but quite early in it's we buy down they prices have because example, So come a remarks, said the saw they to

question next Susquehanna. Chris is with Our line from the of Stathoulopoulos

back per go this cost. -- to want fleet the to unit I per Izzy, just

is perhaps depending to February, could negotiations off that you in you're saying you towards out, full I be a lower. and trail XQ these $XXX, little that, at, X So but how I higher XQ going for better think -- year $XXX now said around taper on did towards and shape had think at $XXX, looking than we're XQ and and move in

item? for changed of that just since understand here next moving last parts kind year, the what's in the and you I updated -- So to want around

summarized Well, you said. what exactly certainly I

that. So I agree with

there a I sooner we that's we have anticipated. dispositions than our that. believe not as our changed that rates you interest we see monthly the this what last down the always think used next be. And the thing -- as may cars we yes, is fact that, market. We come accelerated we're maybe And but also only residual always -- would is was the is and car changed are on The thing evaluating a least, bit that we one bit. continue still values the basis, attractive hope little in know, a would do still as that that

I think the bit to purchase what's car different little are. for used consumer a where rates a interest is as

given interest high, cars the becoming more So -- on sales still little those rates proceeds interest moving are just a very that consumer bit is challenging.

the it So be second going it say And the I'd you well quarter, the third. guidance there's changed and anticipate in gave was it's would since I of say up in the I below that a first that things $XXX. combination of think would it. to I prudent

follow-up. a Joe, And Okay.

So stages and this here, point are kiosks. revenue in the and your system detail there's these initiatives anticipated rollout costs about technology. enterprise-level remarks, of contribution margins. There frictionless There's Could you put ultimately with Europe, margins respect was around enhancing some you that the you of prepared sounds early to benefits? X/X technology like in on kind how we with see or benefiting a finer to spoke

for Yes. Yes. have -- a stages group we by call, benefit in the review, say, staff. transformation talked our talked first of them. lot And CFO. But little good quarter. I've headed frontline the have it, And some for in we're enhance about this meaningful up but that We we created previous our last improvement. us on like productivity we're some a things for would I we about I early yes, -- probably bit a the brought improvements cost that particularly seeing scheduling have technology how we've

through I get less process cars, more clean say more you can So productivity, when customers with get you you staff.

us And a have years. couple have that There's to than that's the so different level full-time and last coming enables part-time. technology people of of we more different the workforce, into

we but inflation wage productivity we helped So had have first deter the which that wage certainly X%, of in inflation, up XX%. quarter

light a cost in that's with to have maintenance of technology procurement place. margin systems around sure. In definite and rising for to inventory, deal we add-on So vehicle in

to A $XX tell product, closer optimal whether $XXX. most existing best tire. to involved So went by us We example. it to whether to you on, have which repair it also I'll give an put something us or cost. a call we it's up to the is be or the an But manufacturer systems by tire from tire get have now use procurement tire

lot whole a there's of So effort.

take we energy I create think insights is kind I a actions, give of around want way technology outcome when the differentiate it. it what you then at look think see to through the is our to the us to process and solve, provide about

We we're that have detection damage deploying.

you think like us, is one cost a million collections like does damage point damage $X in benefit. what a about improvement If

can do of have to start on downtime, as at math, the small, but It's to but that compared overall an car the fleet why You life. bin Utilization, idea, of various down, not it rental level. to it's a utilization just you down cars. of stages sounds multiplying its volume, by the utilization

$XX utilization, a If by X it's utilization you point and improve million point, just between million. of $XX right,

think So very those are that are things attractive. I

that are others We modeling have prevention. loss

a pricing put and us United in we get up continue and in the many best year, the business the when went And Last there. And side, revenue believe in the the U.S., get ours. think fleet iterate years vehicles early that inventory the started of in price gives going our far and you that that that differentiated of a States price, indications use it benefit us I out designed we off it price and to we we've allows it But to you we to model that we demand is all rolled as decided ago, went demand to something many, which with, we're put versus Europe. up hadn't segments to States, off optimal well. as we as how drive outcome. airport were airport on on price saw We built based we on had put past. then And system advantage the out levels United

of Chris line Deutsche Woronka the from is question next with Our Bank.

and maybe market of that, about know, us investors to And of in be I that. you funding been a think just one, you talk requirements and terms a then coming don't market? ABS a recently, I whether have first some Izzy. of where and this quick any and are noise things the things understanding give provide coverage are like gain you The to might color the overview better I follow-up. like your trying There's in see for little a and to can kind just

-- going Chris, just for I'm the question. to thanks

going just bat we off I have if to have front. any on issues right I'm first release, well, don't it earnings I billion. And on the the we mean the look table it to purposes. answer GAAP of billion that of report think report that at, AESOP of is you cushion nonconsolidated entity. about we a because cushion, just treated for how $X.X a The have true cushion that as actually, the that's $X.X is way

million. $XXX about to need add back really you So

that the advance if think it, hope our of XXs question, net can we that, XXs. I your I So there. rate is but you in, I high that answers into we the go headroom about and the simple answer mean call mean plenty low have makes

volume pretty it's if just impressive was basis reduced build on second that to I your some by that? done of can question And great. continue initiatives is, going you in your that's number. you And if and No, it's X.X% transaction decline DOE be Joe per math then to outlook on That's What's think a not a the a that about? for quarter. directionally, Yes. work number, the globally correctly, I've reported as about talking these

a we to continue where us should Brian cost particular we the that And at you. But as Joe the cars know, would that's benefits. incur out this, went And an to we as of new It's the made that I'm number leading don't expect it initial you it stated, for record, the whatever already through. to just multiply this disposition. you You're saw And to take team. may vehicles in going go quarter, advantage. be, it what just the because you exact DOE as right? to tremendous up as transition spot quarter, though and as you seeing exactly is Even we're it, have you in stages, on. give prepare I for had that all-time amount more locations, as you

and up we're you saw took X, going dispositions you went technology by up scaling X, only instead, But record and through. that by volume started in by up our DOE just improvements getting all Joe these enabled

Antor question with next from of Jefferies. comes Our Harold line the

guess does fleet, to high company there Stephanie levels additions on expectation Harold manage that? year? any how Josh, demand for this now, is is the the on fleet Moore. plan right I And with This just so Antor for

although be the I think it add the dispose X single say, plenty of continuing first month, this think or, way, new the fleet. we'll first dispositions months, to and half you fleet accelerated into we the every of

So it's just always continuous a cycle.

that that just is say the wouldn't actually may maybe more year. the in simply it we anything deletes season accelerated I what changed. So even earlier bit has efficiencies say create little I given that would significantly a this peak

Look, Yes, I'll I utilization that's tremendous in here. opportunity. we think to important jump us, norms. our back historic I got utilization think was And for a so

think quarter the us we and prior Some third high, of benefit more see over in the utilizations of are improvements year cost our vehicles get we manage the on and how us and level. mentioned that going early can that efficient to levels manage, fleet things to productivity not you're about a I is some and of this initiatives volume. to I believe deter going things and year. Price I up

appears throughout expected Got on great. months capital guess, comment we this, expectations missed the you rate what guys managing it. and rate environment sorry I interest few are be interest Got how that given, would it. ago, costs, a If a than higher just be but And seeing I could guess I'm the to that, I you -- on if year?

little time. why Yes, depreciation had bit our what be adjust than that's we a higher last guided to to we exactly

that revised, think this think I gave call use it, we if I numbers today, So you that issue. addresses that

question the Research. with from John Healy of is Our next Northcoast line

could summer what fleet I we Is in have could get last just grow there maybe statement wanted about be QX we talk have positive in the a in previous QX you potentially, utilization your basis to some you First, above to levels. a and and talk if just you'd hope potentially reason guys for could I Joe, think RPD QX? little think in an you said, on but that to might pricing I if that's know think you case, this, bit willing QX? the the expectations. do And don't to

in And mean of the us annual to know chance frankly. think We I you about quickly. does think consideration in sales X way our Look, a I behind have But coming XX% sizes to it remarkable in gives I it did I that think, Yes. -- scrapes there, I that like level. I we effort pricing optimistic we get it That's concerted say. into our removed our initial trends, the us price, cars best us. about the we a think marketplace. months, get on quite in took everybody that in fleet I'm the you couple little and I line, to when of right? a John. pretty to first that And see ways. that's the is may price get would exited. that we more it cars wanted taking the and new to wanted be -- fact That's And you

on of the actually leisure, car you the exclusive or many is whether it's whether what it's commercial achieve? not different us, whether or or what and strategy segmentation partners based factors, behind it's what's size There's mix. price price For

see all affect we those it. think I how

at an we came least, year, well, quarter. exiting fourth down to was March, pricing little the X% And was in demand, more Easter vehicles. if trends, we the and We was in is were it compare just the about X% last think down when a trends, you down in possibly. -- general, started helpful COVID because demand just order in and the Like which than to year go in that a before fourth was exit. And that. first quarter I would of to the XXXX, we mean better years. And But there say, the I understand the the supply was everything you probably think back happen. of there I XXXX, quarter way. The March in happened acceleration be like other was that didn't it to there you that with in way Americas short maybe bit

Omicron didn't supply. didn't the really we this until in then So of you got of like you February actually kind over short X, the past That XXXX. end it go February had until demand -- because increase and

of decline and months accelerated us. price the in lot of think quarter. all that early last of behind And think I that a I fourth So is year took the we

comparisons going If a why the to you and XXXX the the biggest to saying in we up. compared believe that That's us. prior third flat have what don't I'm and to fleet think about in And shot to you get had of be know is year that I factor and potentially for quarter. we decline XXXX, second were kind inhibiting

cards to and get to price we enable to places the the place event. allows way that us us DFP cars that it in that matter systems in our most, have put priced needs to We before be the think system we

the encouraged with pricing there, I'm John. pretty So yes, trends

at value" terms disposition price maybe outlaid side then the any on where Izzy, Great. side of back things, Good on and I system? for you those of maybe they the side, change after and those being can a end initiatives bit hear. remarketing maybe to of things. talk of on kind little car get you're kind But the of on to through potentially that way of kind point rolling wanted the progress to And "residual higher a sort selling fleet or maybe just that you the in out we're through of the and of cars maybe run

John. I think that, take I'll

way. a So now and an allow e-commerce at platform And number e-commerce lots. yes, in I'll sell to direct and on or number some years of you early to are sell our in of retail of looking a asked, cars phases we've here market we we will the really been whether that digitally certain a for say, we connect, since us strategy direct-to-consumer have disposition dealers

believe have that. we to even about know that, releases. you. And that your we And called to on, it's to I residual have think by better we might said, get It's and a it we at we can I available car always wrote in because direct to our in have you think of sell say selling -- by the one very participate right I we're you higher that like early that Avis, if RubyCar aftermarket reason we data why you direct that looking like is consumer, consumer, the values

buy a these manufacture right? cars, differentiate We ourselves. new, all we used we all, of of cars lot First

cars. We lot used of have a

have we inventory. So

we locations deploy. to Second, have

locations around our We of vehicles and airport that fixed nature. and have that locations, lot a deliver, can of we supply things chain deploy

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Lizzie from is question line with Goldman last Sachs. the Dove Our of

hear incredibly in kind of the you now just I'll might U.S. of you you terms in give international think in versus And that on see also helpful. to XXXX just DPU is color any terms normal be improvements is can my It's thought help of there. kind great the follow-up I of ask you what to able think DPU

question. the for you thank Lizzie,

XXXX. you year we expect I think any mean, to give just as see year insights -- to it's really to for what unfortunately, calendar early model in too way I

we in 'XX. And what from in improve I it kind was But said, a to the the comes very, it walk expect As stages for fleet in remarks And discussions, my give we're model negotiations still really, the down what what's to of cost. we're year hope of I year-over-year. my do you at. early as I down of tried to I changing to the where said is very

said, you're -- that I it be okay, anticipate on, the spot to we're bit a year do what better is than as too than what that in early same to out, trying little trying to it's to other it's thing which should figure today. But So really be is cost. try we're could next on is the where at

not think volume for bit. And your our commissioned third, segments it's the was the take volume largely however, think an the the I pleased, about reacting. a I due us. now. to I'll to -- to part back States. We've sales calls improve that's Look, business United the of question. we've seen We how our are team being we've And of a opportunity drive been international with to transition from number levels talking XXXX the for of quarter fourth out

have amount a comes through utilize We partners here tremendous actually in greater this can of pricing better at keeps a that ancillary, lot system our cars cross-border the particularly flown we business longer. way. And business also that our buys have of we corporate and in

And and improvement part business. has of a price utilization, much volume. quarters the effect it bigger becomes it as international progress, So material the of a on book

looking right to And leaving that if made to business reservation you're go Europe impressive the from a seen year. to looking now, improvements you're into to some and prior you're we've reservation United books summer. If book the going compared right? early, pretty one to And you you're either or States, make

in I system definitely system, pricing. and pricing it's it's all for we're international which the -- developing manages countries, And segmented is plead by demand our the called our countries us thing bigger think centrally

big for going I think a to that's be benefit us.

of inventory, to to deployed at the this different looking the think year, countries over to and be benefit and that going business. price We'll based have meaningful used initiate we've strategies, able on margin we and haven't in overall it's and price segments it something I there, a various and demand it's

the we've closing remarks. session. of back At you. end turn question-and-answer call Ferraro the I'll Thank time, our this reached for to Joe

you. Thank

reduce and in strong to So as improved the a fleet, us better we summer reported Americas. we move the flexibility quarter through up the volume necessary to actions took record first with We utilization for our setting demand recap, peak.

tireless pricing and what you in for be to saw We demand believe continue always for our around our want the the continue quarter. successful will employees will this want company. technology sets and in I efforts for with travel mitigate to time your and costs and season. our locations. All our I we spring interest thank We And to we up stabilize actions believe their thank field are to all strong, another and us world summer throughout

This will today's conclude conference. you. Thank

your disconnect Thank You may lines participation. for your at time. this you