=Avis Budget (CAR) reported earnings on Tue 28 July 20 (a/h)

Avis Budget beats by $0.24, beats on revs, reports cash burn of $580 mln, 36% better than company forecasted

Reports Q2 (Jun) loss of $5.60 per share, $0.24 better than the S&P Capital IQ Consensus of ($5.84); revenues fell 67.5% year/year to $760 mln vs the $732.05 mln S&P Capital IQ Consensus.

Liquidity & Cash Burn: CAR's liquidity at the end of the quarter was $1.5 billion. Co estimated cash burn would be approximately $900 million, including $100 million in previously scheduled debt retirements. CAR's second quarter cash burn was $580 million, an improvement of $320 million, or 36%, to prior estimates, due to continued vigilance around expense control and stronger than anticipated vehicle fleet disposals.

Expense Reduction: CAR reduced its cost base to match current revenue trends, removing more than $2.5 billion of annualized costs compared to the initial $400 million we announced in late March. Second quarter expenses were 47% lower than prior year, as co removed over $1 billion of costs.

Outlook: Revenues in the second quarter showed sequential improvement, down 78% in April and finished June down 59% from prior year. Revenue improvement has been more robust in our off-airport locations and is close to pre-pandemic levels. CAR expects the velocity of improvement to moderate in the third quarter but anticipates utilization will continue to improve as we further match fleet with demand.