Avis Budget Group, Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, total revenues were $3,480 million, down from $3,564 million in the prior year, marking a decrease of 2%. For the nine months ended September 30, 2024, revenues totaled $9,079 million, a decrease of $165 million (2%) from $9,244 million in 2023. The decline in revenue was attributed to a 4% decrease in revenue per day, despite a 2% increase in rental volume.
Total expenses for the third quarter increased significantly to $3,151 million, up from $2,807 million, reflecting a rise of 12%. This increase was primarily driven by higher fleet and interest costs. Consequently, income before income taxes for the third quarter fell to $329 million, a 57% decrease from $757 million in the same period last year. Net income for the third quarter was $238 million, down 62% from $627 million in 2023, resulting in earnings per share of $6.67, compared to $16.96 in the prior year.
For the nine months ended September 30, 2024, net income was $140 million, a significant drop of 90% from $1,375 million in 2023. The effective tax rate for this period increased to 34.6%, compared to 21.5% in the previous year. Adjusted EBITDA for the nine months also saw a substantial decline, falling to $729 million from $2,179 million in 2023.
On the balance sheet, total current assets increased to $2,319 million as of September 30, 2024, from $2,139 million at the end of 2023. However, total liabilities exclusive of vehicle programs rose to $11,651 million, up from $10,095 million. Long-term debt increased to $5,465 million, compared to $4,791 million at the end of 2023. Stockholders’ equity attributable to Avis Budget Group improved to $(238) million from $(349) million.
Strategically, the company initiated a global restructuring plan in Q1 2024, with expected costs of approximately $10 million, continuing into 2025. Additionally, Avis Budget Group has been active in the debt markets, issuing various senior notes and redeeming existing debt to manage its capital structure effectively. The company also reported a decrease in cash flows from operating activities, which totaled $2,746 million for the nine months ended September 30, 2024, down from $3,035 million in the same period of 2023.
About AVIS BUDGET GROUP, INC.
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