Avis Budget Stock Price, News & Analysis

Zipcar has released its second annual Impact Report, highlighting the crucial role of car-sharing services amidst the COVID-19 pandemic. The findings indicate that 80% of urban residents view car access as essential, with many contemplating vehicle purchases due to the pandemic. The report emphasizes the environmental benefits of car sharing, noting that each Zipcar can replace 13 personally owned vehicles, thus reducing congestion and pollution. Moreover, Zipcar members save an average of $633 monthly compared to car owners, demonstrating a strong financial incentive for urban dwellers.

Avis Budget Group (NASDAQ: CAR) announced a leadership transition as John F. North III steps down as Chief Financial Officer, effective August 24, 2020. Brian Choi will take over the CFO role, resigning from the Board. North will remain as an advisor until year-end. CEO Joe Ferraro acknowledged North's contributions during challenging times, expressing confidence in the company's financial position. Choi, experienced in the car rental sector, is expected to help reshape the company post-pandemic. The Board will decrease from seven to six members following Choi’s resignation.

Avis Budget Group (NASDAQ: CAR) announced a private offering of $350 million in 5.75% senior notes due 2027, priced at 92% of their face value. The offering is an addition to previously issued senior notes from July 2019, totaling $400 million. Proceeds will be used to redeem $100 million of existing 5.50% senior notes due 2023, with the remainder allocated for corporate purposes. The offering is intended for qualified institutional buyers and will close on August 6, 2020, subject to conditions.

Avis Budget Group (NASDAQ: CAR) announced plans to offer $350 million in 5.75% senior notes due 2027. This move follows a previous issuance of $400 million in similar notes. The proceeds will primarily be used to redeem $100 million of existing 5.50% senior notes due 2023, with remaining funds allocated for general corporate purposes. The offering is targeted at qualified institutional buyers under Rule 144A, and the notes will not be registered under the Securities Act. Risks related to market conditions, including those stemming from the COVID-19 pandemic, may affect the offering.

Avis Budget Group (NASDAQ: CAR) reported a second quarter 2020 net loss of $481 million, a significant decline in revenues by 67% year-over-year. Adjusted EBITDA was a loss of $382 million, but improved monthly, with June showing a loss of $28 million. The company targeted over $2.5 billion in annual cost reductions and ended the quarter with $1.5 billion liquidity. Cash burn reduced to $580 million, with over 100,000 vehicle disposals and strong sales in June. The company anticipates continued revenue improvement and positive cash flow as demand recovers.

Avis Budget Group (NASDAQ: CAR) will report its Q2 2020 results on July 28, 2020, post-market close. A conference call for investors is scheduled for July 29, 2020, at 8:30 a.m. ET to discuss the findings. Investors can access the call by dialing (877)-407-2991 or through their website. A replay will be available after the call until August 12, 2020. Avis Budget Group operates over 11,000 rental locations across around 180 countries and is recognized for its Avis, Budget, and Zipcar brands.

Avis Budget Group (CAR) launched a coalition to enhance cleanliness and disinfection at its rental facilities, partnering with RB (Lysol), medical experts, and Hip Hop Public Health. This initiative aims to optimize hygiene protocols amid COVID-19, incorporating Lysol products into their rental process. Led by Dr. Olajide Williams, the Medical Advisory Council will guide the implementation of effective practices. CEO Joe Ferraro emphasized the commitment to customer safety and the introduction of the Avis Safety Pledge and Budget Worry-Free Promise as part of this effort.

Zipcar has launched Instant Access, enabling new members to sign up and book a car within minutes via their smartphones. This enhancement addresses member requests for quicker access to vehicles, especially during economic uncertainty amid the coronavirus pandemic. The service confirms identity through a driver’s license and selfie. Zipcar also offers Dedicated Zipcar and Stay Local Plan options for essential driving needs. Members can save an estimated $633 per month compared to traditional car ownership, as all related costs are included in the Zipcar reservation.

Avis Budget Group (NASDAQ: CAR) announced the pricing of $500 million in 10.500% senior secured notes due 2025, increasing the offering size by $100 million. The notes will mature on May 15, 2025, and are priced at 97% of their face value. The funds will be used for general corporate purposes. The offering is exclusively for qualified institutional buyers under Rule 144A of the Securities Act. The company faces uncertainties related to market conditions and potential impacts from the COVID-19 pandemic that may affect the offering.