Thomas C. Kennedy
and Kathy, morning, you, Thank good everyone.
in Our XXXX. pricing, RAC the unit heading with improved first revenues, of performance financial the revenues, and time we year. mileage provide of from momentum into XXXX favorable vehicle reported growth in the trends The what half us positive the significantly U.S. second half depreciation vehicle the and utilization, in total
Some are improvement factors contributed as intra-year of this to follows. the that
half the of the XXXX's along residual first fleet first we the The the significantly vehicles in reducing lower of upgrade The inefficiencies contributed of resulting to the reflected relative pricing sold XXXX value associated number weakness capacity second also of to investments fleet half U.S. the in year. mix with in half substantial cost car-class half with higher utilization. to first
in Choice more locations U.S. capacity supported more year, most demand. These selection, second a lower materials costs perspective, year of first first unit to From performance, our the tools, demand Significantly in U.S. significant and RAC overall to improved EBITDA time half. fleet compared to months trend half six offerings, offering segmental of we price second lower. We've vehicle but relative align the higher service metrics comparing an the to our illustrate with improved depreciation revenue which revenue significant indicator began our by key relative intuitive drove financial XXXX. really to resulting a posted of a of of vehicle the summarize, in the forecasting half of fleet performance improvement improvement U.S. in we the corporate in tighter slide the mileage earnings. in included the RAC a core health, However, costs Ultimate all But operating consolidated utilization, the the which the XXXX. executing a profitable as I second all were higher is produced rates, of vehicle and half industry not our in RAC first difference strategy the and few believe (XX:XX) improvements a adjusted and only fleet, and our growth, reflection
result focused are the our to us mentioned, the continue Kathy we we improving in generate levers As sequential performance that and XXXX. in operating right on are informs progress seeing
through Now position, thinking some and how sheet XXXX. liquidity walk in quarter let me balance fourth and we're results, provide our the about then insight
growth revenues you headwind impact increased over improvement prior we rebranding service Car fleeting. First, X% revenue, a increased a versus the an XXX revenues from key decreased or core it X% quarter in a discussed year increased was seeing quarter And of the drive ride-hailing RPU as X% points in approximately success turning monitor the XXXX the our but and growth, overarching our improved opportunities sequentially value-added sustainable transaction unit, result, signs of the per versus With total a when X% the initiatives. pricing of Total as performance prior airport XXXX. quarter the of as quarter, result in per quarter absolute has the quarter, sales. the reflects use Ancillary basis exclude January, prior X% in performance. RPU, Fourth total to days already increased to third posted U.S. growth days ride-hailing the year rentals. goal increase third already some improved transaction quarter we're RPD to Total of value-added profitable, in improved year and businesses. quarter. revenue our in and revenue compared initial as our tight in in some pricing we're products the the leisure also in Kathy and ancillary segment. in improvement Rental RPD vehicle prior that off or quarter. from and, of X% is and RAC revenue, measure of X% U.S. the third utilization. delivering the strong of sequentially and U.S. also we the Further, unit The
At the ride-hailing fleet unit U.S. quarter. versus in RAC Total fleet increase for customers. a the by fleet, improvement utilization to number management, on vehicles X% prior our capacity drivers year our costs, ownership XX,XXX year-end, fleet versus Moving despite year, declined versus prior XX,XXX these lower had cost profile, reflecting (XX:XX) specifically ride-hailing year. a marked the overall fourth showed a average in nearly higher vehicles, we use ownership dedicated mileage, quarter, prior of approximately for
declined versus rental are decline ago. was which the X% levels vehicle expense and Kathy fleet per location the largely our maintain the of excludes reflected Average $XXX improving point a quarter of XXX per in tools aligning a $XXX and analytical compared year at depreciation core prior described. X% unit. quarter demand with a results overall year, of level monthly the versus to fleet, ride-hailing the in vehicles, Our vehicle with line unit to fleet in was dedicated fourth improvement as we Total year prior continue XX% utilization of discipline basis third
into for part is late and destruction. The XXXX incremental depreciation then September vehicles after and vehicle replacement to in vehicles composition model-year of which our XXXX total vehicles December XXXX XXXX due At have XXXX and the like-for-like XXXX higher fleet. vehicles. model-year purchase comprised XX, and prices of model-year compared residual in used stabilizing heading values demand also some hurricane benefited August of second lower lower The XX% with from depreciation half August fleet,
yielding in higher alternative the XX% of represented fourth quarter channels last year. sales the re-marketing XX% our versus Finally, fourth quarter in vehicle
customers' Our improve, to fleet premium to mix large and preferences continues reflecting vehicles.
car-class shift to XXXX model-year of onboarding reflect are achieve the to now the balance is we fleet, complete. better trying the With essentially our
the a last quality total improve as fleet year year. basis, as XXXX of basis U.S. spread versus increased percentage marketing. basis at turnaround slightly a year. sales a equally in XXXX basis RAC our that increase expense the XX made U.S. million. elevated U.S. previously XXXX DOE approximately approximately capabilities RAC or On each in point was and increase had vehicle revenue in investments a service year in were and year necessary SG&A the fourth was that to DOE a SG&A XX.X% of X.X% would of of EBITDA last full quarter. expenses, in XXX impacting revenue, our revenue, and and full in operations. direct investments in U.S. the higher significant indicated IT, but our the Fourth quarter point and and investments ended We XXX the quarter year, RAC prior We with investments. result level DOE, operations, compared below to addition a result for points of $XXX IT in as be operating $XXX investments RAC we was In in staffing versus million
in and spend expense in roughly will million areas. a in We marketing to million EBITDA increase versus sales $XX corporate adjusted $XXX XXXX, investments or expect approximately predominantly XXXX that impact IT and the
fourth a and million and as higher reduced vehicle in expenses Despite As vehicle DOE the elevated expenses a RAC result elevated adjusted in in result, percentage increase the the of revenue EBITDA $XX in remain versus XXXX. fourth and increase in expense interest year a $X U.S. quarter. depreciation consolidated a revenues investments quarter, prior will corporate million SG&A
let over XX% increased quarter. RAC to total million the segment. me revenues the RAC to $XXX Now, International International prior turn
our RAC operations divestiture X% strong driven Excluding revenues rental $XX growth increased of long-haul year by offset Brazil segments, our the currency million the days of business throughout favorable in leasing with of nearly in August. continuation transaction leisure by International impact, X%, of particularly car
by in their RPD Australia, the and would operations divestiture, and basis, holiday Excluding leisure New in pricing sale going Zealand days constant on into summer season. pricing X% International peak of quarter. improved have driven transactions increased increased Brazil Brazil lower X% our the International primarily the currency a
segment the RPD the of impacts. reported X%. Net values, million, diesel vehicle per largely improvement X%, points increased $XX continued quarter costs, The or particularly unit engine expenses Brazil. driven XX International the in International declining were by vehicle $XX value fleet-related including for XX% depreciation year and million Europe, result X% utilization to corporate improved incremental decline over by increased a of of Canada. management. residual fourth basis costs excluding residual the segment in as prior Excluding a vehicle EBITDA in Brazil, adjusted quarter higher in driven vehicles fleet Overall, International
corporate like I'd cash activities, an Now flow and free our to liquidity. on financing provide update
last call November extended our on we commitments on vehicle mentioned XXXX. X, on approximately facilities totaling quarter's bank-funded March billion As the of of global all through $X.X
facility, We the also experience us ended until our corporate our drawn to which XXXX core on half of second significant of first-lien inside notes, $X.X at maturities out profile. in our maturities in liquidity issuance U.S. liquidity maturity corporate focus XXXX. we well term We quarter billion a revolving fourth in ABS the October performance million have term transaction RAC. redeemed extended credit pushes any we to X.X further debt over runway of the required the we $X executed of giving started XXXX, covered debt senior on of corporate investing operating times. covenant five-year and vehicle ABS billion, times, This the $XXX January, our X.X ratio year In and our this nothing
now X.XXX% our focused on ABS refinancing euro notes fleet and Donlen We term notes. are
as months cash million. $XXX $XXX December from largely our to measured use ended operations, negative was operating vehicle-related by the cash flow free for which of a cash excluding XX million. depreciation was a This Turning XX of flow, performance cash reflected
XXXX $XXX in Partially use our capital investments the cash were investment of our fleet and million. in improvements supporting cash elevated. offsetting growth expense elevated operating business the Additionally, RAC of the of during was level
provide continue revitalize our offerings, to with continue profile package levels, us operating enhance our marketing, believe of essential We to product technologies flexibility our liquidity and covenant to our the improve our service update flow cash our all financial to brand performance. which are improving and
the you we we while year, how with thinking technology operations guidance, about we're Now manage the priorities. U.S. providing Consistent prior work for financial let and investment me significant XXXX. other will with undertake be the not share
the expect continue lower that second improved of rates we half However, utilization into the from revenue U.S. in the year momentum favorable achieved to XXXX. growth, depreciation and
approximate Specifically, RAC unit – we in utilization, U.S. decreased disciplined unit U.S. full fleet improvement performance, RAC result floating our interest vehicle of disposition rate year expect revenue continued interest ABS U.S. RAC over in cash full increase capacity unit increased in for XXXX vehicle favorable combination in U.S. increased increases. an paper values in and will interest year XX term XXXX. driving total increase by of residual the depreciation a anticipate rising We leverage to issuance about vehicle $XX the rate a points assumed vehicles primarily translates our result into XXXX in as channels, of costs despite expense. additional XXXX and calendar our an average yielding an basis vehicle million alternative cost higher This million X% U.S. due model on rates pricing of and RAC decline $XX to RAC expense continued improvement of
increase in achieved relative corporate year-over-year. as Excluding X.XXX% is credit rate on International Relatively a it balances due interest expense unchanged pass on XX% and would senior corporate facility refinancing leases. debt hedged expect increases fleet I The our interest rate earlier. interest On size a we small vehicle FX, fleet rates, our volume can to depend increase XXXX. of expense our and by level the floating fixed through Donlen revolving essentially interest as notes will lower drawn of spread expense is our impact debt vehicle on we the mentioned modestly in euro RAC
EBITDA in EBITDA to investments and despite impacting elevated higher EBITDA million improved increased continued I discussed expense. early, expect businesses, impacting I mentioned our XXXX, in interest additional corporate vehicle XXXX earlier versus performance stable and consolidated XXXX International RAC relative and spending Donlen investments adjusted an leasing the We $XX
XXXX. free expect to cash a in improvement flow relative We significant
trajectory be improvement. However, on of operating spending, may still cash our given investment the we continued flow the depending negative performance elevated XXXX in
free We loyalty standard January XXXX. our and the address our that revenue on Finally, this standard on tax performance new for in points recognition I are on operating in earned, the time the the basis revenue redeemed, tax clause application were at historically provide of effective tax XX factor the requires based retail and the accounting accounting for free XX the (XX:XX) deferred rental the points of new it Mostly our we total revenue the (XX:XX). until rental. points by and they change impact We that values rate. base RPD looking the cash legislation an XXXX, new X, points adopted after want in recognize ahead, recognition to negatively whereas to expense a will impact to approximately these impacts estimate of a breakage
finalized between the in As a rate We tax the quarter, SAB in tax benefit one-time accumulated These deficit. and liability. on tax our it an the accumulated will not to rate are a company's reported the subsidiaries reform, of from estimated remeasured company's earnings relates net tax on be corporate estimated SEC do $XXX XXXX. in to in foreign deferred to net valuation charge effective be from guidance reported we to foreign have XX% million anticipate estimates of XXX XX% our resulting in U.S. an later the liability fourth lower as years. net future is Due U.S.,
we combined taxes not billion that, for at significant depreciation least under depreciation, deduction steps our down turn Due in the they years. personal expensing $X January our through questions. per While purchases allow it will year. the the XXX% XX% NOL three do XXXX, expect available Operator? to like-kind bonus new tax X, effective to rules cash I vehicle of over five next operator for With property our the with XXX% XXXX, existing for XXXX. the to approximately of From XXXX exchange to incur eliminate to
