Greetings, and welcome to the Avis Budget Group third quarter 2022 Conference Call. At this time, all participants are in listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star then zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, David Calabria, Treasurer and Senior Vice President of Corporate Finance. Thank you, sir. You may begin.
Good morning, everyone, and thank you for joining us. On the call with me are Joe Ferraro, our Chief Executive Officer, and Brian Choi, our Chief Financial Officer. Before we begin, I would like to remind everyone that we will be discussing forward-looking information, including potential future financial performance, which is subject to risks, uncertainties and assumptions that could cause actual results to differ materially from such forward-looking statements and information. Such risks and assumptions, uncertainties and other factors are identified in our earnings release and other periodic filings with the SEC, as well as the investor relations section of our website. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results, and to any or all of our forward-looking statements may prove to be inaccurate, and we can make no guarantees about our future performance.
We undertake no obligation to update or revise our forward-looking statements. On this call, we will discuss certain non-GAAP financial measures. Please refer to our earnings press release, which is available on our website for how we define these measures and reconciliations to the closest comparable GAAP measures. With that, I'd like to turn the call over to Joe.
Thank you, David. Good morning, everyone, and thank you for joining us today. Yesterday, we reported our best quarterly results in our company's history, making this our sixth consecutive earnings report, where we delivered record high Adjusted EBITDA for that given quarter. For over a year and a half now, our team has shown incredible dedication and drive by continuously setting new benchmarks quarter after quarter. I wanna start off this call as I usually do, by thanking the 25,000 employees of Avis Budget Group who helped make this possible. Last quarter, I said we were in the busiest summer travel season I've ever seen, with demand materializing in both robust bookings and a healthy rate. We didn't just rely on strong demand to generate earnings. We acted decisively by selling aged fleet for solid gains and maintaining our stringent cost discipline.
When you combine a favorable travel environment with operational excellence, this is the result, $1.5 billion in Adjusted EBITDA for the third quarter. That's over 20% sequential growth from our second quarter of 2022 Adjusted EBITDA, which is the previous record high Adjusted EBITDA in any quarter in our company's history. This puts us at $3.5 billion of Adjusted EBITDA thus far to 2022, which is already over $1 billion more than our record full year Adjusted EBITDA of $2.4 billion in 2021, and we still have the fourth quarter to go. Before we talk about the fourth, let's go through the highlights of the third quarter results, and as usual, let's begin with the Americas segment.
The Americas continued to build off a strong second quarter, and the results across all business metrics reflect an operation that is humming. Travel demand was strong for both commercial and leisure segments with volume well over 2019 levels. This is the second time that our Americas segment alone was able to generate over $1 billion in Adjusted EBITDA in a given quarter. We're able to meet the strong demand of our customers by servicing over 33 million rental days in the quarter, a record for our company. This wouldn't have been possible without the work of our supply chain team, who overcame parts shortages and OEM recalls to find a way to get our cars safely back on the road. This resulted in a sequential increase in utilization back to the low 70s%, where we've been operating historically in the third quarter.
RPD of $81.06 was down year-over-year and slightly up from the second quarter, but I don't believe this tells the whole story. While we don't typically get into the month-to-month results of RPD, I do feel it's important to provide some color on this quarter. On our last call, I mentioned that we started to see a return to normal seasonality month-to-month in RPD trends. That continued this quarter, with August RPD coming in sequentially lower than July and September RPD coming in sequentially lower than August. That's what happens in a normal summer and implies stabilization in industry supply and demand dynamics. This new normal allows us to compete on operational efficiency, which is welcomed by us.
Commercial business was strong in the quarter, well above the 2019 levels and especially post Labor Day, with new signings of accounts and partnerships powering robust midweek demand. However, even with more corporate travel in September versus the rest of the summer, pricing in the month was up compared to September of last year, allowing for good exit trends. Moving on to fleet, we executed on the strategy we laid out on our last call. Back in August, I said that given macroeconomic uncertainties and with the arrival of newer fleet, we would rotate out of our older fleet and trim our vehicle size in order to ensure a proper return on invested capital while continuing to align our fleet with customer demand. That's exactly what we did throughout the summer.
We were able to exit high-mileage vehicles at healthy gains relative to the net book value. Excluding the early part of COVID, this is the most number of vehicles we sold in a normal quarter. I'll get into more detail around this topic during the fleet section, but I wanted to quickly acknowledge our Americas fleet team for mobilizing quickly and working tirelessly throughout the summer to take advantage of favorable window in the used car market while allowing the business to have enough fleet to handle peak period volume. Moving on to the income statement results of these metrics. In the Americas, revenue increased by $300 million year-over-year. Americas Adjusted EBITDA during the same period increased by roughly $233 million for an incremental margin of 78%.
If you compare our most recent results to the third quarter of 2019, Americas revenue increased by roughly $835 million, while Adjusted EBITDA increased by $864 million for an incremental margin of 103%. Gains on disposed vehicles contributed approximately $360 million to our results, reflecting our proactive decision to take advantage of a robust used car market while we saw demand. However, even excluding fleet gains, it's evident that the earnings power in our America segment is still objectively impressive. Consistent with recent prior quarters, our focus around costs allowed all the benefits of a strong revenue and used car environment to fall to the bottom line. This was a historic quarter for the America segment, and I believe the results showcase a business that's nimble, lean, and focused.
Since exiting the COVID era, we've been saying we're a transformed company, and this quarter reflects what the Americas team is capable of. With that, let's move over to our international segment, which had a historic quarter as well. I've been consistent in our message that the stringent cost control our international segment sets up for an outsized EBITDA recovery as revenue returns. The international team built on a strong second quarter and took full advantage of a robust summer travel season in the third quarter. While we believe rental days were hampered due to airport constraints and flight cancellations, our international team was able to service 22% more rental days versus the third quarter of 2021, with significantly higher RPDs.
The return of inbound travelers, our most profitable segment, contributed to higher RPDs, and with the strength of the US dollar, we believe that the segment will continue to grow. The strong demand, combined with tight cost control, resulted in over $290 million of international Adjusted EBITDA. This means that despite $39 million of headwinds from foreign currency exchange, the international team was almost able to generate as much Adjusted EBITDA in one quarter than any prior full year in company's history. Let me illustrate the magnitude of this transformation in another way. In the first three quarters of 2022, our international segment generated roughly $500 million of Adjusted EBITDA. In the first three quarters of 2019, we generated roughly $500 million of Adjusted EBITDA from our Americas segment.
We acquired Avis Europe in 2011 because we believe the true global reach would be a sustainable competitive advantage. No other car rental company in the world matches our footprint and the infrastructure investments we made in our global network ensures that our customers can rely on consistent quality and convenience no matter where they travel. The results this quarter demonstrate how valuable an asset we built over the past 10 years. Moving on to fleet, where consistent with last quarter, we'll focus more on the Americas segment. In the Americas, our average fleet size in the quarter was basically flat, moving from 500,000 vehicles in the second quarter to 507,000 vehicles in the third. As mentioned early in the call, we aggressively disposed of high-mileage vehicles throughout the summer as we took on delivery of new vehicles.
I've always said that fleet management is at the heart of what we do. This quarter demonstrates how agile we can be quickly taking advantage of a strong used car market while demand was at its highest. In the first quarter of 2022, our average fleet size was 50% higher than the first quarter of 2021. The second quarter, our average fleet size was 32% higher than the second quarter of 2021. In the third quarter, our average fleet size was 17% higher than the third quarter of 2021. The growth has slowed from 50% to 32% to 17% during the first three quarters this year. Our objective is to optimize return on invested capital, and we match our fleet size to demand in order to achieve that objective.
For the past five quarters, we've sequentially grown our fleet in the Americas to take advantage of pent-up travel demand. However, given the return of normal seasonality, stabilizing industry supply, and mounting macroeconomic uncertainties, we believe in order to optimize return on invested capital, we will need to manage a sequential decline in Americas fleet, consistent with what we've historically done in pre-pandemic years from the third to the fourth quarter. We had roughly $360 million in gains from dispositions in the quarter by pulling forward sales that we typically would have spread across third and the fourth quarter.
If you adjust for fleet gains, you'll see that our straight-line depreciation has increased from $210 in the second quarter of 2022 to over $230 in the third quarter of 2022. As we deplete older model year vehicles and in fleet current model year vehicles, you'll see this straight-line depreciation continue to increase. Also, given that we've already harvested the fleet gains we initially expected for the fourth quarter, gains will decrease significantly next quarter. The used car market is currently in flux, but given our remarketing strategy, along with our conservative nature of how we account for our fleet assets, we believe the ceiling for monthly per unit fleet costs in the fourth quarter will be similar to where we straight-line monthly depreciation in the third quarter.
Let me wrap up the fleet section with a few comments on our 2023 fleet buy. While we have many contracts in place at this time, a portion of our fleet buy is still pending. Conversations have been productive with our OEM partners, and while we do have more visibility in terms of availability and allocations of supply, chip and part shortages along with vehicle delays are still very evident, and we believe the 2023 industry fleet buy will be tight. Fleet purchases are the largest use of our capital in our business, and we realize that optimizing for return on that capital is our responsibility as stewards of this business. Therefore, we are taking a measured approach to our 2023 fleet buy, both in terms of number of vehicles and purchase price of those vehicles.
We are taking on a broader mix of makes and models with our OEM partners in order to showcase an exciting new lineup of vehicles to our rental customers around the world. While we won't get into specific figures, new electric vehicles will make up a growing portion of our 2023 fleet buy. Next, I wanna discuss our progress on our electric vehicle implementation strategies. When I talked about this last year, I said it was very important to make sure we follow consumer demand, maintain targeted utilization, and ensure the stability of the economics throughout the life cycle of a vehicle from purchase to vehicle use and maintenance to end of life residual values.
We've been working hard with our partners to build out the infrastructure required in many of our locations, and I am pleased with our progress to date on our plans going forward. We have done extensive modeling of anticipated fleet size and rental demand by location by day of the week to determine the exact number of charging units and laid out an execution plan to get to the levels needed from both airports and city municipalities along with public utilities. We are confident in our ability to operate, service, and maintain the EVs, and we've been working hard with our OEM partners and are pleased with our ability to purchase a diversified portfolio of vehicles this year and the years to follow. It's an exciting time, and we will be ready to take on this change in consumer preference. Moving on to technology.
We increased our Avis QuickPass offering at a majority of our airports. For those unfamiliar with this product, it enables our customers to select from a choice of vehicles on their phone, proceed directly to their car, or even exchange their car if they like, and drive to the exit gate utilizing a QR code for an automated exit. Upon return, customers can close out their rental on their own utilizing our connected car technologies. Our customers are responding favorably to this contactless and stress-free experience. Those that utilize Avis QuickPass score us 10 points higher on our Net Promoter scores. As I mentioned last time, we were early adopters of vehicle telematics into our core operating systems. Gas readings in our vehicles are registered before and after each rental and calculate down to the tenth of a gallon, allowing us to neutralize the rising cost of gas.
DFP, our Demand Fleet Pricing system, now several years in use, is continually getting more intuitive while forecasting supply and demand down to the lowest location levels, allowing for both demand and price optimization. Productivity notification systems are being used to reduce labor and wage pressures, and we've seen good results driving significant improvements in our operating performance. We will continue to integrate both customer and operational systems with our existing processes to further enhance our ability to drive results and exceed our customer expectations. I'll pause here and wrap up my prepared remarks by once again saying how proud I am of our team and the results we have been able to achieve. We had a terrific summer season. September was the strongest September on record with demand at double-digit increases over last year.
Fall is off to a great start with both our commercial and leisure bookings trending to be greater than last year in 2019, and we remain optimistic around the holiday season. In conclusion, we reported $3.5 billion of Adjusted EBITDA over nine months in 2022, and our entire organization is operating with intensity to make sure we run through the tape in the fourth quarter. With that, I'll turn it over to Brian to discuss our liquidity and our outlook.
Thank you, Joe, and good morning, everyone. I will now discuss our liquidity and near-term outlook. My comments today will focus on our adjusted results, which are reconciled from our GAAP numbers in our press release. I'd like to start off by addressing capital allocation. As you'll recall, our pace of share repurchases slowed significantly in the second quarter, and that continued into the third quarter as well. Only 590,000 shares were retired in the months of May, June, July, and August, reflecting a wait and see approach to both summer cash flow dynamics and the trading levels of our stock. We pivoted quickly from this strategy toward the end of summer and deployed over $1 billion over 45 days to repurchase 6.3 million shares at an average price of $164.
That means since we've last reported, we've retired an additional 14% of our shares, bringing our current outstanding share count to 41.5 million. We've been consistent in saying that we'll be opportunistic in repurchasing our shares. This quarter was an example of that. We continue to find ourselves in the privileged position of being in the strongest financial standing in the history of our company. In the past four quarters, our LTM Adjusted EBITDA has grown from $2.4 billion in 4Q 2021, to $3.2 billion in 1Q 2022, to $3.8 billion in 2Q 2022, and now, as of the third quarter of 2022, we sit at $4.2 billion in LTM Adjusted EBITDA.
Which means that since the pandemic began 11 quarters ago in the first quarter of 2020, we've repurchased $4.4 billion of shares, invested $1.6 billion back into our vehicle programs, and brought our net leverage ratio to less than 1x, the lowest in company history. As of September 30th, we had available liquidity of approximately $1.7 billion, with additional borrowing capacity of $2.6 billion in our ABS facilities. Our corporate debt is well-laddered with approximately 88% of our corporate debt having maturities in 2026 or beyond, and we are in compliance with all of our secured financing facilities around the world with significant headroom on our maintenance covenant tests as of the end of September. Let's move on to outlook.
As you know, we've made the decision as a management team to forgo giving formal annual guidance to allow ourselves the flexibility to make agile decisions as the business environment changes. I do wanna provide a bit of color on what we're currently seeing for the fourth quarter. As Joe mentioned earlier on the call, we're continuing to see normal seasonality in both the Americas and international segments. The travel demand for the fall is robust, and we are optimistic this will continue through the holiday season. In the Americas, we believe sequential RPD decline from 3Q 2022 to 4Q 2022 will be similar to the sequential RPD decline we saw in 3Q 2021 to 4Q 2021.
We've pulled forward fleet gains, so the benefit will be normalizing with per unit fleet costs in the Americas expected to be closer to $200 per month on a reported basis. In our international segment, due to business mix returning and leisure travel slowing, we believe both RPD and per unit fleet costs in 4Q 2022 will be relatively flat with 4Q 2021. One notable change from prior year that I'd like to point out will be in our vehicle interest expense line. As you know, our vehicle debt is made up of roughly two-thirds fixed term debt and one-third variable floating rate notes. We'll be absorbing the full impact of Fed rate hikes on our variable floating notes in the fourth quarter, which should sequentially increase our vehicle interest expense by $20-$30 million versus where we were in the third quarter.
We'll give further guidance on full year 2023 interest when we next report. As we refinance tranches of our fixed vehicle term debt, the vehicle interest burden will continue to be a headwind going forward. In this rising interest rate environment, we'll have to optimize for what advance rates we use, how deep we go on tranches for our term debt, and how much fleet equity we fund into vehicle programs. The internal operational adjustments alone cannot offset the magnitude of these exogenous interest rate increases. We believe there are only two responsible ways to address this macro headwind. One, we have to factor in this additional cost when evaluating the appropriate return we require for the capital we deploy. Two, if we can't control interest rate hikes from the Federal Reserve, we have to remain hypervigilant around all the costs that are in our control.
Fortunately, that's exactly what we've been doing day in and day out since the pandemic began over two years ago, so we're ready. I have full confidence that our team will continue to demonstrate discipline and excellence across both these dimensions. That's what we mean when we say we're a transformed company. I think this gives you a sense of where we see most of the major variables of our business for the fourth quarter. What does that all mean for Adjusted EBITDA? We've mentioned several times on this call that we're seeing normal seasonality return, and we all know that car rental is a seasonal business with the peak being in the third quarter.
In a normal pre-COVID year, as reflected in fiscal years 2017, 2018, and 2019, the drop off in Adjusted EBITDA from 3Q to 4Q is fairly consistent. In each of those years, the fourth quarter was 70% down from the previous third quarter. That is the floor we've set for ourselves for the upcoming fourth quarter of 2022. Despite the difficult sequential comp in monthly vehicle depreciation, we are targeting to deliver more than $450 million in Adjusted EBITDA next quarter, which means that at this point, we believe that we'll generate approximately $4 billion in Adjusted EBITDA for full year 2022. With that, let's open it up for questions.
Thank you, sir. Ladies and gentlemen, we will now be conducting a question and answer session. Participants are limited to one question and one follow-up question at a time.
If you would like to ask a question, please press star and then one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and then two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. The first question we have is from Ryan Brinkman from JPMorgan Chase.
Great. Thanks for taking my questions. You know, with regard to the equity investment in the vehicle portfolio decreasing the fleet leverage, should we regard this as more of an earnings efficient place to park liquidity, reducing vehicle interest expense, or do you maybe intend to operate with a different level of fleet equity going forward, such as, for example, I think Enterprise has?
Yeah, Ryan, this is Brian here. We're gonna be fairly nimble about this. It is definitely an efficient place to park cash because we have a double benefit. One, it reduces our leverage on the vehicle program side, and it also reduces our vehicle interest expense, which we factor into EBITDA. So we've been parking excess cash flow in vehicle programs versus putting it as cash on the balance sheet. But as we've proven during the pandemic, that we can pull cash quickly in and out of the vehicle program. So we're not setting exactly what levels we wanna keep over there. We're gonna be fairly nimble with how we fund that.
Okay, thanks. I think one of the key questions investors are attempting to get their arms around is, you know, what the new normal level of EBITDA may be at the company as we cycle past the current imbalance of supply and demand for rental cars and as used vehicle prices, you know, potentially normalize lower, et cetera. I remember it was just last year when you said that, you know, that the board of directors wouldn't accept a plan for the year ahead that would include, you know, less than $1 billion of EBITDA. Here you're doing $4 billion.
Do you think the fact that you're doing $4 billion instead of the $2 billion that was expected by analysts at the start of the year, the $2.2 billion, I think that was expected, is that reason to believe that, you know, out year earnings in 2025 or 2026 may be higher than was estimated a year ago or so? How do you go about thinking what the normalized earnings potential of the business might be, or when might you think you may be in a position to comment on that?
Sure. Ryan, why don't I start and Joe can add his thoughts. We've made the decision as a management team to forego giving formal guidance for one year out, so we're like, we're definitely not giving long-term guidance on this call. But I'll reiterate what we said in our prepared remarks. We're seeing normalization in key variables that drive our business, like you said, RPD, rental days, used car values. But the question is, what does normalization mean, and what does a glide path towards normalization look like? Is it a hard reset back to 2019 levels, or is it a gentle slope with a longer runway that settles at a level materially higher than 2019? You'll have to make your call. Joe?
Yeah, I'll listen to Brian. We're a different company than we were in 2019, as you can see by some of the action we've taken, some of the growth that we've seen. We'll be prudent on how we manage our costs and be certainly in line with our vehicle demand when it comes to what our fleet sizes should be. We've taken a lot of action on cost control over the past couple of years, some you know due to the pandemic and things of that nature, but we managed to operate our business in a different level of capacity.
We've used a lot of technology to help us administer both the volume revenue side of our business as well as the cost side.
Great. Thanks. Just lastly, I'm curious if you have a view on when you think supply and demand of rental cars may return to a more normal balance, say, in the United States. I think I heard you say that you expect fleets to remain tight going forward. I don't know if that was a comment for all of 2023, you know, just given the lingering impact of chip shortages and recalls. On the other hand, I think, you know, it does seem like you were able to buy more vehicles during the third quarter. How should we think about revenue per day tracking?
I mean, I would think as you rent, you know, any asset and if that asset were to decline in price, whether we're talking about houses or cars, that the amount which you know, could rent it for, you know, may track in line with the asset value. But of course, it's not so simple, right? There's the supply and demand, you know, for the asset itself. Should we think about revenue per day tracking more in line with the trend of used vehicles or more in line with the trend of, you know, consumer prices going forward or the supply and demand for rental cars?
I don't know if I could give, you know, RPD guidance for 2023, but, you know, what are the most important factors you think will enter into where it does shake out?
Let me start off with the fleet side. You know, as I mentioned on the last call and earlier in my prepared remarks, we've seen a normalization as it pertains to business trends and seasonality, and that's very different than we had leading up to this year, frankly. You know, we aggressively de-fleeted cars in 2020 due to the nature of demand, and we spent all of 2021 increasing our fleet size. Not just us, I think the majority of the industry. Some through, you know, the early part of 2022. We saw very quickly that things were starting to normalize it a bit at a higher level. I have to say that, at a much higher level than 2019.
The seasonality that we saw in the second quarter existed into the third. If you think about how we manage our fleet and the fleet dynamics, you know, July is the month that we have the most business, the most rental days, and thus the most fleet. The fleet sizes start to taper down as you get through the remainder of the year. You add one other interesting aspect to this year, and that's the fact that we rotated our fleet quite regularly with the arrival of new cars. This allowed us to take advantage of the really strong dynamics in the used car business this past quarter.
We certainly exited a good number of vehicles this quarter, the most that we've been since, you know, probably one year in the pandemic year. We see that trend continuing. I have to say demand going out is still very strong. We see that continuing into, you know, at least the early part of next year when we have some pretty seemingly good visibility. As I said, the month of September was the busiest September on record. Now some of the airlines talked about that as well, having seen a differentiated September. There are a number of factors to that.
Our increase in commercial business was pretty significant, and as a result, you know, of business associated with maybe people working from home for a couple of days and maybe remotely from offices helped contribute to that level of growth. We've seen a strong influx of leisure business. I don't see those trends disappearing, and that's what we see going forward. As far as our fleet size, I do believe based on the insights that I get from what we do with our OEM partners and our buying that fleet allocations will be tight going into next year. Now what happens during the course of the year and then, you know, as you know, the 2024 model year buy starts mid next year is anyone's guess.
Right now, we see those dynamics and those allocations being tight. With that comes, you know, what happens to price. Price was elevated in September compared to prior year and month that we had some pretty significant commercial improvement. Looks like price the rest of the way is certainly gonna be, you know, elevated for our company on a go-forward basis, and demand seems pretty high. We're, you know, we are seeing some, you know, a good deal of demand coming through our doors. The fall was great. October I thought was really a good precursor to our winter season, and we see those dynamics continuing.
Ryan, just to add to that, the used car prices is just one factor that we consider. Assets all across our cost structure are getting more expensive. I mentioned vehicle interest in our prepared remarks. Labor costs are going up, and we're in just the highest inflationary environment that we've seen. All assets are getting more expensive, and that's true for across our entire industry. We believe that we're gonna require higher prices to maintain an appropriate return on invested capital.
Thank you, sir. Ladies and gentlemen, just a reminder, participants are limited to one question and one follow-up question at a time. The next question we have is from Adam Jonas from Morgan Stanley.
Thanks everybody. Can you hear me?
Yep.
Very impressive work you guys are doing. My first question is on the EVs. I know you're not gonna elaborate on targets, but can you tell us factually right now, roughly what percentage of your fleet is EV?
I'll take that, Brian. Here's what I'll say, Adam. I will say that we have EVs on our fleet currently. We have EVs that we are scheduled to receive in the fourth quarter, and I'm quite pleased with our EV purchases for next year. Not gonna go into exact number of cars. We don't do that for the various cars we have in our fleet. You know, we've had conversations with all our OEM partners. We're gonna get different makes and models and cars from, you know, as we normally do, all our OEM partners, which gives us a good variation of fleet to offer the general public. You know, I believe that.
Thanks, Joe.
Okay.
What? It's okay. No, I don't mean to cut you off, Joe. Keep going.
No, I believe that it's important for us to execute on our EV strategy at the most challenging environment, which is our airports. We believe we get the best return on our investment, the best rent revenue per day, the best expense control. As you know, you know, we run a system that we gas up a car, it takes 20 minutes. We have to be pretty knowledgeable of how long it will take to do an EV car. We spent a lot of time investing in our airport businesses, and we have did some incredibly modeling to generate the thought process to say, at any given time, at any given week, at any different day, what would our inventory be and when will that car be rented?
With that knowledge, we've started to contract with our EV suppliers and software providers to determine the best course of action. As I said, we've implemented a good number this quarter, and we have a good number going into the next quarter and the months to follow.
Thank you, Joe. Just as a follow-up, can you confirm your competitor Hertz said that OPEX for EVs is something like 50% or maintenance costs or half an internal combustion car. I'm not. I don't know if that's something you and your detailed analysis leading up to this EV strategy could also broadly agree with. Just remind me your program versus risk mix right now. Thanks, guys.
Great job.
Okay. Thank you. Program versus risk on EVs is entirely risk. As a matter of fact, program versus risk for our total fleet is majority risk, if that helps. As far as the net benefits, we're seeing higher rate per day than we would in a normal gas car. I'm gonna tell you, Adam, it is very early, right? We are seeing a higher rate per day than a normal gas car, and it's really early to determine, you know, the overall maintenance trends would be. I'll talk more about that as time goes on.
Thank you, sir. Ladies and gentlemen, just a reminder, if you would like to ask a question, please press star and then one now. The next question we have is from Chris Woronka from Deutsche Bank.
Hey, good morning, guys, and congratulations on another great quarter. You know, so my question does kind of relate to fleet, not to beat a dead horse and maybe go in a little bit of a different direction. But how quickly we know you guys can pivot very quickly if you need to, if economic conditions, you know, change, and that's especially true on the sales side, right? But on the purchase commitments, you know, can you give us a little bit of commentary maybe on your macro view for the next year or so, and how quickly can you pivot on the purchase decisions if you need to?
Well, I think if you're talking about, you know, what happens if volume goes up, we've certainly proved that this past year as we were able to take advantage of pretty significant demand and have enough cars to do that. I was quite pleased with our ability to fleet up. You know, as far as, you know, insights about what we see from manufacturers and deliveries, you know, I think it's still spotty. We put orders in for certain months, and those orders get delayed or pushed out to other months, so we have to be, you know, certainly nimble on how we manage our day-to-day fleet assets.
We've proven in the pandemic and probably even during the recession of 2008 and 2009 that should things turn the other way, we are very quick to de-fleet as we did in this quarter. Like I said, we've taken out more cars this quarter as far as fleet sales than we did any time in the third quarter if you take out the pandemic years. In this quarter, we had high rental demand. When you combine high rental demand and the logistical challenge associated with de-fleeting cars, we were able to do both. I feel that we've proven over the years our ability to exercise that. We have a strong leadership team in our field organization and certainly a strong supply chain team that is able to juggle multiple initiatives.
That being said, I do think the fleet dynamics on a go-forward basis, the allocations that we will be getting for the industry, will be tight.
Okay. That's helpful. Thanks, Joe. My follow-up is, I think Brian mentioned the current share count being down around 41.5 million. Obviously, you know, I think if we do the math with your big shareholder, you know, the float's getting smaller. I try to triangulate your comments around what fourth quarter might look like and the opportunistic approach to share repurchase. My question would be, at what level is there a point at which it just becomes more difficult to buy stock mechanically from a float perspective, even if it's at a level you think is attractive?
Yeah, Chris, it's Brian here. I don't think so. That's been true for many quarters now, and we've proven that when we want to, we can go get the shares we want. We've not seen any issue on that front. We've been consistent saying we're not gonna be formulaic in terms of share repurchases, given rising interest rates, like I said, and just general macroeconomic uncertainties. We're also focused on corporate debt paydown and fleet equity contribution, as you've seen in this quarter, as well. Listen, when we see an opportunity to create permanent shareholder value through repurchases, we're not shy about it. We're gonna continue to be nimble with both the timing and the magnitude, when it comes to repurchases.
Thank you, sir. The next question we have is from Stephanie Moore from Jefferies.
Hi, good morning.
Good morning.
Good morning. I appreciate the color on 4Q expectations. You know, I wanted to dig in a little bit further, you know, about the kind of rebound in business travel and what you're seeing on the commercial side. Is there a potential that, you know, a return to more business travel could cause normal seasonality from 3Q to 4Q to differ?
Yeah, that's a great question. This is Joe. Most you know, travel organizations are reporting declines in commercial travel compared to 2019. We have not seen that. We've seen terrific growth in government, defense contracting, aerospace, tech companies, logistic companies, and it's actually was very robust in the quarter, especially in the month of September. Companies are getting together now more frequently than they had probably you know, in the pandemic and maybe prior. Trade organizations are having meetings, associations are having meetings. If you know, if you think pandemic, everything was you know, centered around beaches and leisure activities. Those states that were involved in that did very well. Well, now there's a resurgent more into the cities.
We've seen it in a lot of our city-owned operations that, you know, those places are doing quite well in the middle of the week. It used to be like everything was centered around the weekend. I don't see that trend changing in the fourth quarter, even though there are significant holidays of Thanksgiving and Christmas, which tend to dominate the quarter. That gives us confidence that, you know, in the shoulder periods, which are equally as important as in the peaks that we just came out of, that we have enough asset utilization and revenue generation to support the business. I'm quite bullish on our commercial trends of late.
Great. No, I appreciate that. Then, you know, maybe with kind of what you just walked through and more of the, you know, seeing a little bit more of a balance in the demand throughout the week in the shoulder season, how did that kind of play into your decisions in the third quarter to maybe take more cars out and defleet a little bit more aggressively than you have the last couple of quarters? I'm just trying to kind of, you know, reconcile the kind of the strategy between the two.
Yeah. Like, make no mistake about it, we wanted to do both. Both drive our rental volume that we saw in the quarter and also trim our fleet size down. I think the thing that we have to take into consideration is our fleet asset. When you think about fleet and fleet costs over a long period of time, it's not just about the buy or the sell, it's how you actually use the car during the course of time. It's important to rotate that fleet asset out. We saw a tremendous opportunity to do that in the third quarter. We probably didn't do that in previous normalized years. But the demand for used cars was at an all-time high.
The rates were significantly higher than we've probably ever seen. It made a lot of sense to insulate ourselves and our fleet costs over the long haul to do that and exit some higher mileage vehicles. We will always do that to ensure that we have the right fleet size, take advantage of what opportunities that we see in the marketplace, and put pressure on the infrastructure to drive the same-day rental business as well.
Thank you, sir. Ladies and gentlemen, just a reminder, if you would like to ask a question, please press star and then one now. The next question we have is from John Healy from Northcoast Research.
Hi, good morning, everyone. This is Drew Meyer on for John Healy. Can you guys hear me?
Hey, Drew. Yes, go ahead.
Hey. Good morning. Apologies, I joined on a little late, so I'm not sure if you touched on this. As you guys kind of look at the outlook for residuals, can you help us understand, like, how much equity you have in your ABS facilities? You know, at what time or what, you know, decline in the market would cause you to reallocate more meaningful levels of cash into the ABS structure to service collateral?
We're actually in, like, the best position we've ever been in in the vehicle programs, since we've gone public. There's more equity in there than ever before. I think the easiest way to do it is look at the press release. You'll see the assets under vehicle programs, and you'll see debt against the vehicle programs to see what that ratio is. We did mention early on in the call that we've been funding excess free cash flow that we haven't deployed in other areas of capital allocation back into vehicle programs, because, you know, it's just a more efficient place to park cash than on the balance sheet.
Great. Super helpful. Thank you, guys.
Mm-hmm.
Thank you, sir. At this time, there are no further questions. I would like to turn the floor back over to Joe Ferraro for closing comments. Please go ahead, sir.
Yes, thank you. To recap, we reported our best quarterly earnings in our company history. Our team delivered in every business metric, including enhanced revenue generation, diligent fleet management, and stringent cost control. These efforts were highlighted by the Americas reporting over $1 billion of Adjusted EBITDA in a quarter, and the international team achieving their highest ever third quarter Adjusted EBITDA. Most importantly, I want to acknowledge and thank all the employees for their continuous tireless efforts in helping us achieve these results, and we're not done. We continue to be on track to deliver the highest full-year Adjusted EBITDA in our company's history, and I wanna thank everyone for your time and interest in our company.
Thank you, sir. This concludes today's conference. Thank you for joining us. You may now disconnect your lines.