Avis Budget (CAR) 1 Nov 242024 Q3 Earnings call transcript

Greetings, and welcome to the Avis Budget Group Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. At this time, it is now my pleasure to introduce David Calabria, Treasurer and Senior Vice President, Corporate Finance. Thank you, sir.

You may begin.

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

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

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

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

of which we $X.X quarterly morning, nearly everyone, $XXX our revenue David. Good you EBITDA results joining and today. Thank thank delivered adjusted million. billion reported you, for us third quarter and Yesterday, of

gains, to vehicle impacts call, utilization. we improve interest of our and on nonrecurring to need discussed made last bifurcate we our decisions the high fleet As

has inside always to Our demand. of primary fleet keep goal been

high is finishing level throughout costs. our the which fleet year's utilization with prior year. quarter the We carrying adjust Driving the us fleet to continue utilization steps to allowed this necessary X year, improve points nearly to necessary size of our given this have taken above

model continuing of a outcome expected to the We in focused in is the we reducing what segment. achieved also We'll drive XXXX are going below year this on fleet profitable talk years. the costs well the more forward. buy have The progress with recent Americas buy for costs holding to overall about holding more

The global our third demand with quarter volume quarter line for robust XXXX. business remains with third in rental

lower to consistent and cost are We electing this we the vehicle to flat business, priced the X-point on second when, higher incremental Price with it rental. a improvement the in X% was have year's with to focus we higher-margin environment, fleet particularly as an rationalize take a for quarter. nearly a down than more quarter sense from overall, believe and been Americas makes industry,

prioritize necessary strategy We to higher-margin execute as will to this continue business.

detail, in Promoter dive service I greater Through peak exceptional into the to Before for deliver results thank season to Net we record continue I'd customers. during summer efficiencies. and driving generate from further like our while to efforts, hard Scores work their our operational employees the continuing our

than usually X% million the we XXXX. adjusted Rental EBITDA. of generated our of third with third do, as begin with in let's segment. around were Americas $XXX The of to $X.X quarter that, With more details Americas days in down quarter the the Americas revenue billion compared

to business. business. balance to demand. higher-margin on volume the and We this forgo both earlier, measured to price we doing so, and approach took mentioned made I is lower-margin As we where choice the In elected focused

brand-agnostic costs priced to especially pass in on business, utilization times and become where said is fleet for from to I customers. our more this to our outliers costs as fleet earlier, attain makes able we volume target like be more going We sense to discretionary, this, are meet historic and believe normalized. it lower always vehicle As this forward demand norms, would us scale

make industry demand to XX% compared strength points by this XXXX, same fleet prioritize third compared Pricing pricing industry. to to to showing of was the the the in our we improved pricing peak. continue in up quarter period system. the it price to but calculated proprietary decisions to monitor third transitioned XXXX, over by our as will the the nearly of mind, the XXXX third in makes we sense Price flat quarter our Keeping quarter utilizing to and volume from of summer in sequentially X relative second compared when

quarter. the business most which has the We a flat outcome. closer optimal kept utilization. was U.S. inside to of improvements As the in resulted fleet This ongoing our price in fact, our in of demand, vehicle matter our for allows strategy

the nearly X which utilization than XX%, third Americas in is Our than was the XXXX. quarter higher point more of

quarter remain will and enhancements improve in We fourth to we discipline. continue on further that We our in fourth any as utilization surpasses laser-focused operational quarter the anticipate history. fleet strong vehicle implement our

are start substantially with fewer XXXX. than we in We started to on cars track XXXX

fleet year take progressing to want buy, ongoing about talk to I well. a is XXXX which our moment model

closer While year model yet target. our complete, we're fully not we to are moving anticipated

said we the and past, become in affordable, believe we this has to that will proven As be cars new more true.

years what constraints achieved normalized. below be supply production will prices purchase have OEM during and pandemic we as expect schedules We the

the market partners are in are for we vehicles. OEM aware Our fully that

we regards stay rates to to acceptable need return. of our return with commit to only on invested capital, that deals disciplined However, meet also fleet and

buy over the is structured once both vehicles on the companies strong and happy of appropriately. make when with to decades. details appreciate cycle XXXX The our deals approach a committed that our remain and Overall, goals completed. ever both share allow to criteria. as our and partners year We model the out are model We year fully more new buy, progress will company continue meet have array collaborative next to the there's cars similar for their productive support vehicles. been had win and partnership our the Thankfully, this room older and we've we'll OEMs wide to of on call I'm

So revenue billion of $X.X to $XXX of had million. Americas recap. more and The EBITDA than adjusted

necessary our utilizations by discipline on holding selective prioritize to volume fleet steps align costs allows we maintain have We quarter, our the the are year demand, positioned robust we taking ensuring brand-agnostic fleet and drives to buy, as well remain our with margin Based regarding rotate we profitability. and model customers. in continue the lower in We to business maximize a us XXXX higher to fleet as new we'll fleet. continue lower-margin saw higher to

the back normalized we As fourth the towards half the hurricane. month the into shift October after quarter, of effects the of

looks normally Thanksgiving and the in for fourth surrounding based the the from holiday third to on transition periods price holiday reservations. season particularly However, believe strong seasonally the quarter. Americas the it does And demand as will Christmas the current

up adjusted Let's million third was shift international. generated rental million prior in by quarter. compared gears to in year, International Revenue of days. EBITDA and increase a driven revenue the to $XXX $XXX X% of X%

cross-border products. see in keep generates continue as and calls. inbound our about and more often on talked customers ancillary travelers, cars have as to than intra-European robust We we longer book additional travel to tend these advance strategy higher-margin domestic international previous the business take This

to and but quarter, our a inbound This only Europe, business. the travel period This year-over-year grew leisure not increase volumes X% our drove was year. by European same in cross-border into our as in higher-margin domestic approximately last of compared XX%

the and advanced with cross-border to inbound from transition positively, we again. travelers trending demand reservations As quarter, inter-European fourth are and stemming once strong

to in XX% to of pricing compared year, impacts pricing currency International's the third showing was again industry. strength XXXX, our compared down quarter and last the the for up X%, quarter of excluding relative

a compared quarter showing anticipate to XXXX. to best the the fourth pricing on of the basis, be year-over-year quarter sequentially, with flat pricing improved nearly However, fourth in September improvement. quarter's We

proprietary utilization noted pricing fully As our is operational business. focuses we in price on and margin. the realized as system system as demand European on benefits now calls, contribution both previous And expected, our fleet

Vehicle be utilization periods X of in of first utilization XXXX we compared XXXX. continues higher the priority the a each to in quarters same to as realize

quarter of XXXX. over to This utilization X compared points was XX.X%, the quarter's up third

is size that our the meet of for room vehicles. fall new Americas, making XXXX and year to year's model the prior our under ready be positioned to continue believe winter and adequately at similar We to level, beginning we fleet fleet our demand. And the to expect

quarter Europe destination I launched for October. popular showed an is is app the fourth to travel. Technology and our like new us would customer improvement. experience, a in and we was reservation and continue strength customer cross-border price of our discuss do to And everything I to enhance mentioned that enables part our before, as integral

downloads, are app a trip exit growth new will them further rental customers exciting Our dynamic app our boost user a will released touchless features vehicles dashboard a also refreshed their continue at the choose actions number to The account the planned from other will customers' that have details increase rates their every more to use Customers through features their all our to experience, the direct The feel points reservations. and with customer to of ancillary We new gate our app and that drive quick to adapts be believe experience to that product better step. revenue their providing look loyalty relevant updates information continue experience their we be our from rental has in and journey, enhance the new give which by integrating of book and reservation rental searches, easy enhance app track a phone new able progression, access future, reservations, their manage with and of offerings. conversion to screen. the the previous do in pipeline home aim channel key and

enjoyable. experience make are that smoother these enhancements our and We confident more will customers'

also efficiencies. an our improving I operational on give update want our to progress

improve scheduling systems to processes better on for continue data enhance process to location by These analytics optimize our systems mix. allow our and leveraging and needs forecasting throughput and the productivity. to labor by We increase ground and

pressures. face continue initiatives these We to on to inflation labor helped offset and wage focus

realize the these expect the savings remainder of through year. We continue to to

delivered vehicle all timely repairs to analytics and more target teams our disposition dispositions, understanding our our available I utilization control. on the every of more maintenance performance vehicle believe we will drive and vehicle fleet. create We of of better allow goals set sustainable through As within task-based ambitious call, mentioned designed vehicle the last to understanding improve operations our better have to movements,

We are These a in and and us enabled of third throughout efficiency are achievement tools quarter on cities operational the expenses basis, last year, SG&A operating given a maintain digital inflationary pressures. rental with strategies key day the to other early country consistent currently great piloting these promising. results per

adjusted $XXX generated we conclude, the EBITDA to million of quarter. for So third

us which to vehicle allowed maintain discipline, year-over-year. utilization to has fleet We improve continue

We quarter in fourth Americas. in expect the historically high utilizations the

complete. Our largely fleet model year XXXX buy is

which levels, sustainably lower our position enter pre-pandemic fleet. to closer into prices lower will us seen as they have We holding costs with

us We holiday business will a the seasonally in our expect prioritize are well and teams operating rental balancing help price SG&A The Americas out The inflationary strong. high-margin cost Overall, positioned we the flatten demand looks and close while day transition Americas a basis. and efficiencies out international internationally. year and pressures per mitigate to expenses scale. level and of on on certain will strong, prepared

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

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

impact stated, with third earned were the third will again, of of in the pandemic, of million not in byproduct alone. discussing the coming let quarter greater $XXX gains were by fleet million the Once supply than post-pandemic replicate a holdover that I interest. had adjusted quarter gains me gains These and we gains previously fleet the these we in more as start have Last chain quarter. our out imbalance. $XXX the usual, $XXX nonrecurring fleet of a earnings. of million to given need We EBITDA oversized bifurcate year, vehicle As

ongoing business maximize Our with size consistently is to to fleet priority and day. demand in line strengthen higher-margin our per revenue

units was approximately these sales more than than The rental $XXX $XX a to these less we fleet anticipated. more million the compared the we forecasted. our as quarter, than quarterly year-over-year focused as on were loss strategies, million In forward slightly days from of During gains alone last order in the variance demand, originally $XXX of vehicles million. quarter Pulling align disposition generated year. sold to we of

in unit Our per straight-line increase and more approximately expense holding per year-over-year. from in depreciation million $XXX in resulted $XXX The month. increased costs to fleet $XXX than incremental

prices. As and any In the always, year we as needed. we adjustments to expect fourth at buy constantly favorable make the monitor the vehicles to quarter, late market model opportunity have

vehicle more $XXX but total our in into Therefore, quarter, the take anticipate pulling opportunities, gross sales approximate depreciation we unit quarter. estimate based fourth of month on advantage could we will per for the Assuming vary we per forward the these presented fourth current year. the opportunities company

to fleet will discipline as plus our continue fleet of inside remain will have required adding dispose to in We flexible we demand, the and new continue cars.

Our our negotiations, on Since we rate which model affordable. is supply-constrained believe, are a 'XX the improve. should as about we holding more levels costs we our and our years the year-end In the purchased return can more insulate have model 'XX, our complete we impact buy. call, we year historic to represents say depreciation earnings. purchase more our will model will fleet, normalized pandemic during fleet to the have 'XX which fleet older buy say year of with time, largely rotate over We out will year

vehicle Last period gears was Now compared to it a as $XX shifting million vehicle headwind, XXXX. was this to same the quarter year, $XX interest million interest. while in

unit of expense We vehicle of amount fourth interest quarter looking When in to the rental a In interest more than of day, direct in for our total, inflationary as operating to at the of third account to quarter EBITDA. despite compared year-over-year our XXXX. costs rental expect adjusted expense the our XXXX per per be inclusive and month per flat SG&A fourth quarter $XXX holding fleet as compared million pressures. day decrease our remained expenses similar per

to end improvements nearly in other nearly quarter, invest reduction million contribution margin efficiencies, strategy nearly of drive million revenue is improved In revenue operational revenue. our majority into was volume relatively the $XXX flat, core The million drive result to to $XX cost day X%. through higher generating reinvested our technological and We efficiencies our We but or continue in contribution. year-to-date. The business capital in our was allocation further was per business. year-over-year $XX down designed

$XXX cost mitigation of quarter. throughout has million taken adjusted our our factors, we was The us going EBITDA result As reducing and these well forward. including have year, a actions size for the this strategies fleet positioned

decision comes calls, for we are previous the shares As our back-half mentioned October when approximately allocators through conscious to share We $XX made nearly XX. normally to repurchases. we on repurchase it million XXX,XXX

As returning always, balance continue capital the capital between company and our we to our allocation shareholders. will to reinvesting in

outstanding in proceeds flexibility our and This issued October our under fee. we secured to us in reduce of term quarter, provide future. the senior borrowings million During our $XXX to in allowed loan notes, used the refinance repay and to the borrowings secured more us ability

September ratio November had As facilities. to billion financing uncommitted our effective reduction net loan capacity effect After repayment. giving to borrowing asset-backed and facilities, additional liquidity of over fee our committed a approximately of we funding ABS the X.Xx with in effect after corporate facilities $X.X including XX, available $X.X X, variable term of our leverage in billion, giving was

meaningful until debt, well maturities We our XXXX. laddered be no having corporate continue to with

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

will company. prior In investments strong the This and out total, our operational the our of X represents priority investing driving can our forward. use capital further we our for ability the issue debt in provides you issue our form financing we of ESOP than liquidity have months the in continue this in debt first cushion $X As and evaluate billion ongoing amount capital plus more quarters, we appropriate structure, best are the against of in flexibility, which efficiencies to going of us to the remains fleet through of size. The fleet. investment fleet reducing see

Now let's outlook. on to move

to use us our continued of higher allow year. this drive will which and in with As start year allow keep with utilizations fleet efficient we line Joe our next cars assets, more demand, less is to focus mentioned, than did

as our We will should well flexibility acquire to maintain the of as opportunity new vehicles arise. dispose others

'XX almost going and is Our well buy complete.

periods around will normally look lower fleet. as expect the the We quarter Demand it price move as holiday fourth seasonally does. our vehicles into we transition holding costs in strong and these

This mentioned have day. as EBITDA our putting pressure we unprecedented overfleeted, year with highest fleet in below of to vehicle being adjusted the year, costs broader revenue a industry year, per and us. the challenges started they is I experienced $X earlier history acceptable are on As in nothing interest the and billion in

However, of in year, this still adjusted these nearly despite losses. million focused $XXX adjusted losses. have achieved billion million, challenges, fleet we million excluding or nearly $X in $XXX on EBITDA uncharacteristic approximately achieving remain $XXX fleet EBITDA excluding We

give costs will details our more regarding We and in earnings call. future fleet our next potential

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

Deutsche question First with Instructions] Bank. Woronka the of line comes Chris [Operator from

is per not think you closer that one quarter think But your XXXX, fleet quarter, once. you I the fourth begin where in fourth look I your trend that benchmark trending do So think, back that knowing but next and it levels, know towards? think fleet -- I any that BPU 'XX we month, the at can Joe, to at you on that as a to way all year, to again, fair mentioned about XXX. is comments towards in your happen cost for mean Americas historical it? what about I back to is buys just expect when or know period, not won't might I Is sub-XXX the

know you I directed Chris, Joe. your question,

half first So let it. me of take the

where about we where given out to were But of fourth of the your be what But a materially I don't XXXX. 'XX there's you're are the us. to in think lot are still opportunities right? There's correctly, go presented are complete in It's we we I think year that of think with thinking things thinking buy. all to figure may we quarter model a still analysis lot it math given about the I think through. --

closer $XXX. levels to for guided flexibility fleet wouldn't $XXX try to seeing. bit compared think last I And low least, we're more room still to math that thing we demand. it, significantly of normalized next quarter, most call keeping rather gross were down in have later. us inside comes becomes is level. the than for for the too give than the saw, to what to XXXX not I our But This this a forecasted better example, right? quarter, at important quarter, though cost. anything, initially keep to to how to depreciation figure Make I more was out mind the the bottom but in and a come we right XXXX, sell XXXX for Yes, business all fleet And than to but sooner more say maybe now. the what

follow-up, in going bit, Okay. in there's table also that in a that would We're taxi of hearing a that? possibly ride forward? is guys position And could as to autonomous. going and is as on Appreciate something Avis I robo that. it's the to another the extend closer of, was hoping what little possibly to obviously the share. for landscape And you And you as about be I comment a that on monitoring evolves moving industry as maybe a then much haven't lot guess growth? industry. but a participate I more little you're done And on avenue

I'll Joe. answer Chris, this is that.

couple that last on ride active share. pretty business someone look substantially. growing We've of ago I'll point basis. been asked So when -- in but ride the a like with segment. up I business share year-over-year that are a said talk We years don't start And it margin about at we much, on we the

basis, to as look the of that to of business add participant on unit happy certainly keep with is And as and days so group our cars pretty are does sure that that. period we're for So rental a profitable we a a good a as customers say far grows, in pleased And that. we on results I'm time. for it those business per growing. that

one answer that I'll way. So that

perfectly we monitoring tech-related and you of in nature, to situated company about that. And progress autonomous far we're cars you when As start think because to our that and handle are depots the talk fix fits. We other to we have something always States, as general, like them as things as about cars. to around stuff, things know them we We move of -- that United ability the cars. we, the all, have in how see all hold first and

our thinking probably we're I home So to prevalent, supply that more depots a More as position earlier, in delivered said in area that, is where one cars, would taking to because our starts of it what's picking Manhattan about we perfect right be or like which the it's it gets and of it you and of a to that, the now, over a do or manage having like up something that. a to something we and to so. infrastructure, participating where obviously. New because our difference going with your the view how also and how of about all knowledge develop to are at can But all logistics demand to us deal of on you York see and personal depot from car come

Our next of of John Babcock Bank the line is with America. from question

all, about also it's Avis, hurricanes more sorry, also I going of and well, going the is first just -- talk guess you to the the but if going car hurricanes. so how -- you at it's could all? a the dynamics But didn't call just thing. to impact Florida guess out, the rental the to be broader XQ I impact I impact but assume it actually, know of I on for of market, how impact

that or we're that end predominantly when In not hit you sure. the canceled particular September, actually And business, which then in that. case, second they you quarter, later. going Florida of one, another followed what the the a the one hurricanes very And was first And up Hurricanes, week being surges significant the one have us. through for with bit Yes, of which off good I'll X since rhetoric up especially Carolinas. of North happen, because start on the a took tidal difficult effect flights pretty hit because Florida, anybody an into one surrounding the has rental this was nature. challenging sequence planes, we it take on be little airport because and to historic that and and quarter airport-related damage of things a of the based a happened the day they shutdown, had this had that.

think a I active nature. in were things sure of municipalities evacuations took role making the very that there and

have into X is after think something to and But So get problems happens those in evacuate that whether related flights areas. a when other areas. restricted problems hurricanes want not they positive, and right? people to company, this before happens, what about to period through certain rented days As like X normally aspects cars of them we've also back many days during the home, you go that a or case, particular are where traveling, cancellation as from you later, then to people time have start then and unsure people for of

an to the cars like course, So leave. But rental We a to we car you of traveling have had benefit, that company. felt ability always public. were obligation have we

make we to they thought people so safe. And And vehicles our them took was wherever available.

time, the different see of of to airport have you other areas demand mitigate places, airports. that you faced happens places rent in is those cars hit, dynamic always early lastly, a right are people And whether Cross for tend different to in road or is tight those number like the in at or supply which I in this, or comes Red The on. helpful. the which what using There's relief of on the think period place reasons. those the which will municipalities also various Florida is for now got long I there whether helps be And that a we've for changes for a who a state tell vehicles, continue cars, workers, hurricanes after second that shutdowns of the fleets dynamic we tight that and it normally and for be Florida, example, reasons. of will various aspect FEMA

initially, that segments how throughout be go time it to and Early that, So fleet other remaining tightness or it's to hope usually it the tend whether that we of the in through going occurs. that's transition quarter. effective after I as be but while the lose to of you through, matter up, tell that a make will you part rentals helps. periods of

then just last perfect. question. That's And

mix As forward, about you're what control come of and -- some you know that as the can pricing thinking you other costs And you confidence that moving hold kind I that and of talked gives for that. margin generally, you'll volume benefit about about pricing how us so on cost ultimately operating space? focusing car in you higher rental have the from up. could DPU get some think But mean, down I would lower broader a environment

-- is, with I days focused days, were And with. us, rental line our dealing our which impacts that costs a good pretty for result right? on thought, inflationary in our incredibly the our Look, been we're we've margin, Yes. considering rental

every number day that lines. a we cost We initiatives of have with manage our internally deal to

those just related supplies. are look costs, parts and in-life lines, to example, our vehicle in when at we For

areas it of on things we that with and We have location going nature. how parts procure that down We efficiency glass deal level. and and to look tires at the

We enabled We productivity by scheduling. by inflation to systems to having down location. and offset ships being more during proper wage by go have that have us able to productivity scheduling

things we at. So there number are a -- that looked we're that of

a better gas on recovery. gives We us which have connected performance car,

improving gas through or they initiative go know big able whether be mentioned gas gas location of we our to the that that every level we'll able on as our disposition recover cars more. not, to vehicle allow We get to believe our and us gas aspects text-based the to without have pretty team, I that cost. analytics prices, that on do that digital a that allows we're in fleet. do buy to that more at So working we're our increase vehicle if vehicle us improve overall management to road a utilization on having

are I that teams things think over a stable And about our post of I point level, what the in on allow in some business our we of we great particular do putting about flows if the us leaders and about have happened that and initiatives of manage pre execute some Lucky these the been price, how of given the ebbs are experienced the those So high it's we and business through. pretty last very that you believe very, to industry, that day-to-day. COVID. in price years, think

of line the from Lizzy with are questions next Our Dove Sachs. Goldman

competition latest the ask higher from in We've where the in trends, about just It how we've to particularly of of big forward? quarters have than how like I a competition your in and -- been Americas that just had you volumes. terms you share volume nonpublic kind like of kind going seeing couple about industry. there what think kind feels wanted PSA talk seen lower of Could impacts of what just you're the of competitor. Americas volumes

which our -- keep higher-margin wanted tight, price, the We Yes. utilization. target and focus we fleets quarter plan drove on this to past business was,

exactly would first you the wanted when at couple quarters, of have company the where it. think we looked our I over utilization wasn't

car And this costs when a a RPD. in environment, get that. quarter. in for been on have to pass or unit of calls and outcome interest on our in believe able and it a number our So It this as lot. we unused in And I costs would an to where the rental maybe were that a believe model that more to we drives certain high per be talking well. environment low rising even about were to comes We've

that. process fleet so And were running to highly And critical success. do efficient able is to we our a

our get out of vehicles goal early year. this and to our and with fleet in in also get Our transitioned a demand fleet we lot line the of part younger, was

Now just have we we about you if business TSA want. up felt was digits. different the compared ask time potentially taken any years. compared of where if well. was if ahead it at are and on competitors scale, XXXX, we might volumes get we of things well And think protective to And stand. discretionary know nature, of ways as couple you we business about look you if that our we're we our over past and quarterly -- it business, could And are our to double 'XX, that brand-agnostic business business, pass that we we of that's somewhat We

is things? liked. we else to Of that our cars prices those course. everyone us at buy But of and out lower in I and 'XX put do behooves year cars, So wanted conscious the And I more the prices, -- as a think does because on the because holding to going our into pressure And cars in comment in materially spot. it and just is other made think have effort buy high to cars. in this cars our I'll 'XX than keep going went We out. 'XX in bought good we they quarter everyone fleet actions and took we're at one rid get about well line and would -- with other a probably add minimize and to cost, that get better, transition

So the if over think quarter, this it way my of while this kind on we me we in industry in you're I way the saw normalizes a acted opinion, time. asking whole

That's the color. appreciate helpful. I

You outlook also of the misremembering. I commentary BPU, all lot of kind hope helpful I'm a guess together, costs. for that around and putting I gave not pricing,

billion billion of the forward. that floor past I think you -- $X.X is anything changed Has going of you've that kind how EBITDA about outlook? normalized said X see in the

Izzy. It's

consolidate changed historic a Just that in can today, at questions interest some that we've high. and it came fleet and had you nothing the even thoughts in maybe to As costs see, up are the be prepared just has right? on I'll remarks our clear, outlook. of

we'll really normalize, benefits. the been power operational we've our Plus Joe last pricing as improved mentioned. tighter we that not to as fleets will that the we said last are prepared course, remarks, least, not started see intend efficiencies where the underway that we year. provide are talking that but mention benefits, about keep So And in just -- to of than they well too

we'll have cars less new starting So the year.

are things billion being laser a focused of those have company. no in all seen we So issue sustainable combined, and us $X

is line JPMorgan. of Brinkman Our Ryan with next question the from

a amount and -- inflation even considerable the are you're the the record Just towards curious bit cash parking in shortage, allocated I interest towards back capital if the facilities? share given thought there. higher. the high equity result your more is during with again, coming seemingly? fleet free interest cushion share the towards allocation, about you lower any your interest cash you price built of lower, when of options interest And things the again changing after pivoted the those available including were just although higher, down tranches price a fleet in as rates, the were shares repurchases, all low you've that feeling just even your either costliest a made pandemic chip check and Subsequently, your expense. on flow to that you, you the your rates than you curious to when much up flow pivot those rates on including saving retaining right, or securitization of ongoing now, I'm differently

theme think you our main about it, been when remain think has I always flexible. to

So that's to flexibility to priority going comes that in always bigger a for continues allocation. be us. when was continue was, capital to and a our change. priority Investing We obviously, it to not fleet, but want

start think mentioned this operational our to thing those about those we year. as other and say progress to of were also is investing call the We ourselves it, to you those wouldn't year, allocating started the All reaping think in investment. allocators, I right? just about through type efficiencies, some I of heavy we rewards. require cash

bring top and I be in really in We continue to also invest But of also about think back list. now the on as buying ourselves do stock it's the more how efficiencies operational And through future. more and we our always, will that.

was you of in quarter Okay. a that what of the that to impact in the the the could and occurred there maybe disruption would with What about And historically I think versus third? occur that rate Obviously, hurricane. fourth it had election? has might know mentioned big sort sort deal. how had anything to Is in the quarter fourth

than There we've past. that. than about has I take of the this I'll it, national The way talk election lot different election and businesses. in seen nothing the see a Yes, there's travel-related been

they is in disrupt November years. way But X one Day, month I before holiday, years one the going like have is to today it every X I relevant, that happened during say and but the Thanksgiving, from ago, COVID, have that a what in so happens the a And results that last not what stay they think either was Veterans I one happens. will national quarter. X want people is have a the and the having It tend doesn't it and similar which been abnormal Thanksgiving frankly, years mean worth I the that. volume it is to about to out. week, There's the calendar of during they which last see general -- possible about the X which be days nothing suspect X the to election on X Monday, week, -- you or of vote we it will big falls quite be years could may want similar. to watch I happens by home, travel. say weeks' in

Thursday I'm you Year's fact it's the bullish you that think kind where is and pretty a you not come get that I week holiday an some period of longer. gives high Friday, going have demand great you extra holiday be the back on work, Wednesday. Day on Having good November. of people in to Most or -- pricing. on and will usually time So Christmas a length which New -- can a to

election, that disruption there those that in activities, will happening mitigate a and of said just certainly as quarter the when and I to now. while national things there comes been are disruption So hurricanes notable has some it are some

next The Group. Chris Susquehanna the International Stathoulopoulos is question of line from with

cycle So predictable you of a Obviously, the fleet know how beyond. here this outcomes and kind is and where Joe, kind you're more of into from ultimately, sort costs guess, more of 'XX about But a correct lot kind buy say, of this the versus fleet since me to dynamics about I should and perhaps just are at a go the think four I'm reasons. able are course, of in very chain realize I'm to buying let's understand read and point, those wrong of this a point, here, OEMs. if but we we prior, the XXXX this through better the different with negotiations feels And at trying we cycle or supply I question. of realize general holding where outcomes. for these for for

vehicles. with I lot the -- a the years. of the buying think the well cycles, as And fleet supply abnormality do couple mentioned, long had the imbalances, as to shortage with as as as you suggest, past chain of as you

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has Okay. for in this And year been so so. as role my a Brian or think I now follow-up, about

and workaround analytics. this so pricing demand seen we've all And

at or And beyond mentioned in You look the we things that initiatives perhaps of should the around some we are app. as it this what transformation? think to about or and apps we Where relates revenue fleet of 'XX are as journey locations.

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sheet, of that So and things buy. the nature and much Brian how very cetera, residual involved the fleet team data as et with as affects looking our is curves at balance it analytics on well and value

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

ask to question, wanted just philosophical a kind I Joe. you of

up that rate, capacity. is guys of down cars I is come going have what you about tightened from buy to benefit you optimism off guys be next fleet cost The and hearing is number we're the going and on to the think call year, that better. the sold it

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be that So helpful. would

completing Yes, the Sure. we're now. buy just

about business about that the we complete calculations be exact talking in those our you're will thought as plan. So next --

out the of of good One buy year. tell this And vehicles right. totality story, number cycle start. a may You're the we took not it's a but early

average of at you our guys -- think you sizes. -- fleet fleet If our look

a out So couple of a cars, thousand get rotated or hundred and year take, come give out.

head certainly to more as so us the us, out still I more do try those there's at of next of that to couple think for getting So with nimble and is that start as happen now, get challenges. well But both year. that will buys Their we some how to we by as thing a enable our think than rotate we right I But flexible can look a dispositions out actually quicker. spot -- as be would buys.

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So out 'XX bit that early the come business as plan we a flushing in it you give did as we lot hands this kind we next that. expected longer of year, a of us take but to for to will call, our get our around DPUs More John.

year. kind lower, pricing next And in costs in as your a kind of year of rental create like the the about that you fleet maybe to being situation important up opposed business, Sure. be if a does the think investors a should are lower, costs are guess financing about When thinking -- just spread I business about where you thinking next the on direction. your metric is follow same

costs it lower, RPD model for deflating levels in have It's higher. similar inventory be flat you RPD, going we're should if inventory guys. that or cost a that So is an up misguided investors expectation going about talking the for

would and it business really I measure way call how it we think I think is the the those metrics shouldn't change. of

fleet take So important have So and totality, in to to you're thing. interest right? is one everything going obviously,

being have revenue. although day that important mitigate we offset expense thing to -- is to we per all stabilizes. supposed operational supposed that talk of also it. revenue most is components expense cost, people lines rent increases the it's is efficiencies think not about continue I We all And the the to by and those mitigating the And

to in all importantly, the to the quarter for all but I come one they metrics took positions and could more actions over over-indexing not us other, think to that quarters going how our you around the in we line. down on always come the that. discipline It's margin bottom on see and the contribute really to

is Our from Levy the line final Barclays. question of with Dan

on to question fleet wanted with your I start a buy.

clearing the competitors inventory. from And you any -- and that on is backdrop some and we aggressive on your disciplined OEMs could the few seem in take then right pricing think auto that, side, to extra I extent the more on that side? now getting maybe there a just you automakers of what but heavier a is be industry extra bit OEMs the deals on know fleet fleet be the are are the that that there's follow-up especially wondering your that as maybe side, there little to of an that willingness is inventory amongst some TX, keen a risk good on are on exceedingly have more because a fairly to

that. take I'll

and which opinion. We all overall have was why speak 'XX we that important. in with extremely because are say We have put are that diverse same are And that's give into as And or It's it amount of is our deals that the fleet. I 'XX. procure is there think I as models what allocation almost happening. and there deals different happening take, deal I a going basically, we certain makes portfolio. be the in to and think we're OEMs, we industry are complete my about vehicles the That's

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the to there So is provide think rental industry. that by discipline and OEMs they the I what do

believe SAAR sold or as the going of as at be You as is I industry, what an year-over-year, internationally. And it relatively look see to take. unchanged give they can the indication for

to buy criteria said, for 'XX like and work I as capital a and way, I me, so deals any are off And best fleet we're return on participant they both investment as in our on our come that that started well is historic see it. where we to norms, meet long parties. all why really work back looks our And deals

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maybe is committed you're related, about follow-up, fleet what on One a on just that's maybe from talk off-airport and could moved cars tightness. fleet you liquidity. facing The some other one I don't questions to fleet somewhat heavier as competitors little extent the that your contract. to a having just And is fleet. it on on some seeing the clearly know what a tight is you're Maybe impacting from

broader and any tightness, appreciated. fleet maybe So just color be the would industry

Sure. Yes.

of for values residual business. cars higher would end the and earlier, our 'XX and highly out of to due than like, did them to right everyone of towards cars We of As decided bit get cars were challenges out And and they in year. was I that quickly. get last bought -- said a in more 'XX those probably the largely we that went with priced little

it With they the are makes well. that get to past, for hands coming more cars in do and sense their in new had kind than as that around advantageous everyone that of the

to as rationalize. I that earlier, think time, I over said So starts

industry. of for I brands we businesses all that participate have believe have just us, our in and -- to well So us do that areas we that -- allow

the appeals that customer. have and brand We Avis business the leisure to both

We have that brand predominantly budget was the leisure.

want to We rent have who more brand, people infrequently.

proprietary we think partners, the relationships in positioning the and with that and brand we exclusive direct investment both plus I channels the associations. and the airlines and relationships our have big do our app have with So

that us ability think bodes a meaningful on road our cars us the well way. to to I put for allow in

fact in to industry, the year-over-year. fleet the I are will that the business, combination our our of of So buys the well going as different start fleets book I brands believe to the as as be we rationalize that believe don't have far much

bodes I think of all that for well us.

I'd Ferraro At this the question-and-answer time, our end the floor session. we've back reached for Joe remarks. to like turn of closing to

you. Yes. Thank

through a strong third quarter fleet So we to improved recap, reported with discipline. utilization ongoing vehicle

high-margin year buy these on as lower Our vehicles we fleet. while business holding largely strong, looks costs substantially to model transition to expect XXXX complete, The our balancing We'll volume. holiday rotate and we have expect seasonally. demand prioritize and is continue price to

for company. interest I the always, And world to prepared close well thank positioned around are and you your want our year. the time in Our out as and to teams

does This We you. Thank you for your conclude teleconference. thank today's participation.

disconnect your time. You may this now at lines