Greetings, welcome to the Avis Budget Group fourth quarter 2022 conference call. At this time, all participants are on a 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 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. Please go ahead. 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 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 the best annual results in our company's history. We delivered over $4.1 billion of Adjusted EBITDA in fiscal year 2022 and set a new standard for what excellence means at this company. I want to thank our 24,000 employees for the work they put in last year to achieve this milestone. When it comes to our business, our operators focus on one checkout at a time, but it's worth stepping back and reflecting on what's possible when an entire organization brings their best day in and day out. This focus and dedication is ingrained in how our team operates, and it doesn't stop at the end of a calendar year. We're bringing the same level of intensity to 2023. I'm looking forward to showing everyone what we can accomplish this coming year. Before we get into that, let's review our fourth quarter, and as usual, let's start with our Americas segment. On our last call, I spoke about a stabilization happening within the industry, where we're seeing a return of normal demand seasonality. We saw this continue into the fourth quarter. The business metrics reflect what we typically see in the last three months of the year. The quarter showed strong commercial demand. In fact, it was the highest amount of commercial volume we have seen during the fourth quarter in company history and well above levels we achieved in 2019. It's apparent that the commercial customer is traveling and using our brands at an elevated level. Our commercial re-signings for the year are approximately 100% and on average coming in at an increased price. Leisure followed the traditional patterns that exist in the fourth quarter, which is mostly around holiday periods, with Christmas being the largest. While there were challenges surrounding travel late into December, we were able to offset air travel disruptions with robust one-way rentals as customers in need of reaching their destinations used our cars to get where they were going. We have great airline partners and work well together for the best possible outcome for our customers in times of need. The fourth quarter always represents a pullback from the height of the third quarter, and this year was no different. Like I said, we are seeing a return to more normal seasonal trends, which allows for better forecasting and matching of supply to demand. Price in the quarter was up 1% from 2022 and rebounded from the 3% decline we saw in the third quarter. Peak period pricing and improved ancillary sales helped to fuel this growth. We are supported by great technology with a proprietary demand fleet pricing system, which forecasts demand down to the car level by location, by day of the week and time of day and prices accordingly. This technology, combined with our experienced team of operators both in our headquarters and our field, allow us to capture this opportunity. While it may be early to say whether the industry has found an equilibrium between supply and demand, what we saw in the last quarter is encouraging. The holiday travel disruptions, combined with supply chain challenges and a desire to rotate older units so as to position us better heading into January, had a slight impact this quarter to utilization. As usual, our teams didn't abdicate responsibilities due to factors out of their control. We continue to focus on cost discipline and deliver results that showcase the streamlined and lean operating structures we built during the pandemic. We're keenly aware of the inflationary pressures we face in 2023, and we'll continue to combat rising costs with sustainable productivity gains driven by technology and data. Moving on to the income statement results of these metrics. In the Americas, revenue increased by $104 million year-over-year. Americas Adjusted EBITDA during the same period decreased by $46 million, primarily due to a $68 million headwind in vehicle depreciation and interest. If you compare our most recent results to the fourth quarter of 2019, Americas revenue increased by $674 million, while Adjusted EBITDA increased by $480 million, for an incremental margin of 71%. Gain on dispositions contributed $163 million to our results this quarter. As I said on our previous call, we were nimble and proactive when it comes to fleet dispositions. If we see an opportunity in the market, I'll get into more detail during the fleet portion of our prepared remarks, but again, this quarter, we ensured proper fleet rotation by exiting high-mileage vehicles at favorable prices as we brought in new fleet. Overall, the Americas had a great quarter and a terrific year. We see positive trends going into January and February. Demand is strong and forward-looking reservations show this. Our price discipline we saw in the fourth quarter is continuing into the first. Lastly, there's improved demand for our car sales. The prices have shown improvement, which is encouraging. With that, let's move over to our international segment, which had an historic fourth quarter and full year. Our international story and playbook for the fourth quarter is consistent with what you've seen out of the team the entire year. A strong rate and volume environment was met with stringent cost discipline in order to maximize the results to Adjusted EBITDA. Rental days in the fourth quarter were 15% higher than the fourth quarter of 2021. Still 22% below the fourth quarter of 2019, which signals a lengthy runway for volume recovery. RPD in the fourth quarter of 2022 was 5% higher year-over-year, or a significant 18% excluding exchange rate effects. Similarly to the Americas, we are seeing normal seasonality return to much of EBITDA as well. Adjusted EBITDA in the fourth quarter of 2022 was a record $63 million on a reported basis, including $16 million negative impact from currency exchange rate movements. This brought our full-year Adjusted EBITDA to $560 million on a reported basis, including a $79 million negative impact from currency exchange rate movements, and marks the highest full-year Adjusted EBITDA achieved by our international segment. We're proud of what this team achieved in 2022, and expect continued excellence out of this segment in the coming year. Moving on to fleet, where consistent with last quarter, we'll focus more on the Americas segment. Our fleet disposition teams maintained busy this quarter and continued to rotate the fleet, exiting high-mileage vehicles to make room for our new 2023 model year vehicles. In fact, we sold more cars this fourth quarter than any fourth quarter prior, which shows the elevated demand for our product. The selling price of our disposed vehicles remains above net book value. As discussed on earlier calls, we are seeing a moderation in the used car market and do not expect gains at these same levels in 2023. Moderating gains on sales combined with higher straight-line depreciation resulted in a higher monthly depreciation cost than we recently experienced. We reported monthly per unit in the Americas of $175 versus $170 per month in the fourth quarter of 2021. Due to rising interest rate environment, our vehicle interest per month per unit went from $50 in the fourth quarter of 2021 to $73 in the fourth quarter of 2022. Our AESOP facilities include a floating-rate conduit facility, which impact our vehicle interest negatively in a rising rate environment. As we pointed out on our last call, we expect this to continue into the full year of 2023. With rising interest costs and moderating used car values, making sure that we have the optimal fleet size where utilization is more important than ever. This fleet cost environment severely penalizes excess fleet capacity and will not risk putting ourselves in that position. Our disciplined fleet disposition this quarter illustrates how we're constantly trying to match our supply to industry demand. We're demonstrating that same discipline to taking on new vehicles as well. As I mentioned on our last call, fleet purchases are the largest use of 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 being very conscious with both the number of vehicles and the purchase price of those vehicles for our 2023 buy. On the margin, we'd rather run out of an incremental vehicle than have an unutilized vehicle on our lot. Our fleet plan for 2023 reflects this stance. We're not trying to maximize the number of units we can absorb. Instead, we're optimizing the overall health of our fleet, which means younger and lower-mileage cars. We're also optimizing the overall vehicle mix of our fleet, which means having a product portfolio that our renters demand. Thankfully, our key OEM partners are coming out with exciting new launches in 2023, and we secured key allocations for both traditional internal combustion vehicles and, of course, electric vehicles. Going into the first quarter, we've seen continued demand for our used cars and prices have continued to improve. Our fleet size is currently just under demand levels, showing improved utilization and a continued rationalized approach to fleet levels in our industry. While we're on the subject of EVs, let me reference the press release we issued on January 26th jointly with SK Group's EverCharge. For those who haven't seen it, allow me to recap the key takeaways, as I believe this partnership clearly represents our vision and strategy around rental fleet electrification. Electric vehicle share is increasing as a percentage of new car sales, a macro industry trend that nobody disputes. However, how to take advantage of this trend, specifically within the car rental industry, is less obvious. At Avis, we believe the road to electrification rests on a foundation of charging infrastructure. An optimal charging framework is a necessary condition to support an electrified fleet. Our approach to creating this infrastructure at scale involves four key pillars that build upon each other. The first is power availability. This means coordinating with the appropriate utilities and airport municipalities to secure access to enough power to support a large rental fleet. The second pillar is hardware. Each site has its own specific needs, both in terms of physical footprint and customer composition. A covered garage will have different hardware requirements versus an open air lot. The check-in, checkout dynamics can vary dramatically from a leisure-heavy airport versus a commercial-heavy airport. These factors, along with many others, need to be considered before developing a thoughtful portfolio of L2 chargers, DC fast chargers, and energy storage solutions. Having unified hardware that can dynamically manage electrical loads is necessary to optimize the power availability. The third pillar is software. The majority of residual value in an electric vehicle resides in its battery. Therefore, it's necessary to monitor and optimize charging history while meeting the turnaround time for our customer's demand. We need software solutions to draw on the grid at off-peak times, store for peak times, and load manage throughout the day to minimize cost per kilowatt. The daily movement and life cycle of a rental car is fundamentally different from a retail owned personal vehicle, which is why we require purpose-built software that offers visibility and guidance around the unique challenges we face. Comprehensive data capture that powers the right software is the only way you'll get the most out of your hardware portfolio. The fourth and last pillar is operations process. A normal ICE vehicle can be gassed in three minutes, and any pump can be used for any car. That's not the case for an EV fleet. The operations flow changes based on the state of charge of the vehicle. There's an optimal charging port for certain vehicles based on when it's expected to be rented next. Variables change as new vehicles enter the lot or charging thresholds are met. The legacy methods in our handbooks won't work for this. We require new tools and better real-time connection with technology for the vehicle journey to adapt an electrified world. Without the right operational process, all the kilowatts, charging stations, and dashboards in the world won't help you. These are daunting challenges. We at Avis have been working quietly through them for years. We've engaged the foremost subject matter experts on developing airport-specific roadmaps, we've been in constant dialogue with our OEM partners to forecast our upcoming EV mix, which in my opinion, is extremely diverse and a fleet that our customers will enjoy. We've waited to show what we've been working on until we felt confident that the product has reflected the meticulous consideration and substantial effort given by our internal team and external partners. We believe what we have installed in Houston, together with SK Group and EverCharge, represent the most advanced large-scale charging system in the fleet ecosystem. It addresses all our four of our key EV pillars and serves as proof point of what we've been developing as an example of what's yet to come. I want to thank the SK Group and the EverCharge teams for helping us achieve this milestone, and convey how excited I am for the additional airports we have slated to launch this year. I'll pause here and wrap up my prepared remarks by once again saying how proud I am of our team and the results of 2022. It's definitely one for the record books, and marks an incredible turnaround from the challenges we faced just two years ago, and I'm excited what we can still accomplish in 2023. Demand is strong. Industry fleets are rationalized. Prices started the year performing well, and there continues to be demand for our used vehicles at improved prices. With that, I'll turn it over to Brian to discuss our liquidity and outlook. Thank you, Joe Ferraro, 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. In conjunction with our earnings release yesterday, we also announced the authorization of an additional $1 billion to our share repurchase program, which brings our total available authorization for buybacks to $1.7 billion. Last quarter, we bought nearly 4 million shares for roughly $750 million, which comes to an average purchase price of $192 per share. Avis's share repurchase program has led to substantial value creation over time for its long-term shareholders. Since the program began in 2013, Avis has retired 96 million shares and converts at an average price of $71. That's over 70% of the original shares outstanding, retired at a 67% discount to the closing share price as of February 10th. We firmly believe that our share price today does not fully reflect the fair value of the company we've transformed into post-pandemic. It's why we believe it's our fiduciary responsibility to ensure that our repurchase program continues unimpeded for the benefit of all shareholders. I'm pleased to announce that along with the $1 billion increase in authorization, we also clarified language in our credit agreement to ensure we could do just that. Let me point out that this new authorization and amendment simply gives us the option to deploy cash towards share repurchases. As I've said in the past, we will be nimble with how we allocate capital at Avis. Just because we viewed share repurchase as the best use of capital in 2022, does not mean we will formulaically allocate a similar amount of capital to this area in 2023. We will opportunistically allocate capital to those areas that best benefit all stakeholders of Avis Budget Group. We continue to find ourselves in the privileged position of being in the strongest financial standing in the history of our company. Our Adjusted EBITDA has grown from $2.4 billion in 2021 to $4.1 billion in 2022. During the year, we've repurchased $3.3 billion of shares, invested nearly $1 billion back into our vehicle programs, deployed over $300 million into investments in our systems and operations, customer experience, and electrical vehicle capabilities, all while having a net leverage ratio of less than one time. As of December 31st, we had available liquidity of approximately $1.6 billion, with additional borrowing capacity of $1.9 billion in our ABS facilities. Our corporate debt is well-laddered with approximately 86% of our corporate debt having maturities in 2026 or beyond. 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 December. Let's move on to outlook. As you know, we've made the decision as a management team to forego giving formal annual guidance to allow ourselves the flexibility to make agile decisions as the business environment changes. I do want to provide a bit of color on what we're currently seeing for the first quarter. As Joe mentioned earlier on the call, we are seeing a return to normal seasonality in the business, which means that for the first quarter of 2023, we believe RPD will see a seasonal decline from 4Q 2022 as we enter a shoulder period in our leisure segment and commercial rates make up a greater portion of our business mix. Our best estimate at this point is that RPD in 1Q 2023 will be in between 1Q 2022 and 1Q 2021. However, due to the commercial accounts we signed in the Americas throughout 2022, we believe sequential rental days and average fleet size will be close to flat for our consolidated company. Depreciation costs in the first quarter will see a sequential increase as our fleet mix continues to weigh more heavily to model year 23 vehicles. Our straight-line depreciation in the fourth quarter was in the high two hundreds, and we expect this figure to settle in the $300-$320 range for 2023. As Joe mentioned, while the used car market is currently healthy, we do not expect to realize anywhere near the gains we realized in 2022. Therefore, you should expect a convergence in reported depreciation net of gains and our straight-line depreciation as the year progresses. Let me shift over to vehicle interest expense, which I touched on during our last call. I'll focus more on the Americas segment. In the Americas, vehicle interest sequentially rose from $62 per month in 3Q 2022 to $73 per month in 4Q 2022. Due to rising interest rates and increased cap costs of incoming vehicles, we expect monthly per unit interest expense in the Americas to be approximately $100 in 2023. Increases to straight-line depreciation and interest expense means that the cost to deliver a rental day will be going up in 2023. We must be prudent with how much capital we allocate towards fleet growth and carefully evaluate the appropriate return we require on the capital we deploy. I'll reiterate something that Joe said in his prepared remarks. On the margin, we'd rather run out of the incremental vehicle than have an unutilized vehicle on the lot. This reflects the ROI-driven rigor we hold ourselves to when making fleet decisions. We apply that same rigor towards price optimization, cost discipline, and asset utilization every day across every location in our business, which is what gives us confidence that despite certain macroeconomic headwinds, we will continue to deliver strong EBITDA and free cash flow throughout 2023 and beyond. With that, let's open it up for questions. Thank you. The floor is now open for questions. If you would like to ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate your line is in the question queue. You may press star 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. In the interest of time, we do ask that you please limit yourself to one question and one follow-up. Again, that is star one to register a question at this time. The first question today is coming from Chris Woronka of Deutsche Bank. Please go ahead. Good morning, guys, and congratulations on a fabulous year. Question is, I guess, Joe, you know, when we look back to the twenty-teens, you guys were always in this kind of hundred-ish million dollar range of EBITDA, much, much smaller numbers, of course. If we, you know, if we look at what you did in 2022, and we strip out the gains, which we can figure out. Do you think you go back to being in a range of $100 million or $200 million of EBITDA, whatever that might be? I mean, is that a, is that a realistic way to just think about it at the, at the highest level? Yeah. Hi, Chris, and thank you. You know, we're a structurally different company than we were back in, I think you said in the teens. I was the President of Americas then, so I could tell you that's for a fact. The way we look at our business, how we use our, how we manage our fleets, how we look at our demand, how we use data and technology to infer some of our decisions is completely different than we had in the past. If you recall, you know, during the height of the pandemic, we had to take, you know, a good amount of cost out of this business. While some comes back over time, yes, but you know, we've managed to have stringent cost controls to drive, you know, to drive our output. You know, what we're seeing is, you know, if you go back to those teen years, we didn't quite see the demand that we see, you know, that we have today. You know, as I reported, we have high commercial demand. In like in this period, which I would call a shoulder period for, you know, for travel as you come off the, you know, the busy, you know, fourth quarter and holiday season, it started off really well. You know, if you look at TSA volume compared to 2019, which is interesting, in the month of January, first week actually started off relatively flat compared to 2019, and the last week finished flat compared to 2019. Over the last couple of years, you've seen that we've run, you know, our volume as, you know, a little bit higher than TSA volume as it stands. Yeah, I think we're in a different place than we were back in the teens, Chris, and that's the way I would think about it. Okay. Thanks, Joe. As a follow-up, and appreciate all the detail you guys gave on the approach to bringing EVs into the fleet. The question would be, as those do become more significant, and you're, you know, prepared to bring on a larger number, how do you think about the economics of those in terms of lower maintenance costs, but maybe longer hold periods and depreciation? It's not necessarily a specific number, but just high-level thoughts on the economics. Yeah, I think the best way to categorize it is we're learning. There's every indication that these cars should perform better from a maintenance standpoint, less moving parts and things of that nature. As far as life, you know, and mileage, we'll, we're gonna get in, you know, that as time goes on. My early indications are probably the cars should run a little bit longer, as we see it. I'll tell you know, you know, as we go forward, we're gonna most likely learn a little bit more about what the maintenance costs are. We haven't seen hardly any so far right yet. I do say it's kinda early to tell on that. We will start increasing our fleet sizes over the year. We have a good array of new models coming in. Like I said early in my prepared remarks, I think the infrastructure designs that we have and the layouts will ultimately determine our success. At the end of the day, Chris, we look at, you know, our per unit economics, you know, what we can drive in revenue for the car, how that, you know, how long we use it, and how it drops through to determine, you know, our overall success of that entity. Great. Thanks, guys. Thanks, Chris. Thank you. The next question is coming from John Healy of Northcoast Research. Please go ahead. Thank you. Wanted to ask you guys a little bit about fleet for the year. Your competitor kind of gave us some perspective of how they were thinking about fleet from just kind of a quarter-to-quarter and, kind of year-over-year standpoint. Would just love to get your perspective on how you're thinking about the fleet size in Q1 relative to a year ago. Maybe as you look out to the summer, maybe what the kind of initial thought process is in terms of fleet commitments and what we might see and kind of the scenarios that you're developing to kind of strategize for that. Yeah. John, this is Brian. I'm gonna start and then hand it over to Joe. I think we said in our prepared remarks, that fleet costs are increasing this year. Vehicle in-interest is increasing this year. We would rather have a tighter fleet going forward, and our fleet plan in 2023 reflects that. We're not trying to maximize the number of units we can absorb, as Joe said. I think from our perspective, what we're trying to do is match our fleet to industry demand. Given that the costs to hold this fleet are higher this year, I think maximizing utilization and being very tight on that front is more important than ever. Let me get to Joe. Yeah. Thanks, Brian. I, you know, I certainly agree with that. You know, John, we made a concerted effort over the last two quarters to rotate our fleet out. It did a couple of things for us. One was it allowed us to exit higher mileage cars that you know come with a, you know, higher maintenance platform, and we were able to do that in the third and the fourth quarter. The third quarter, we sold more cars than we did in any other quarter prior to, you know, if you exclude the pandemic year when we got rid of a lot of cars. The fourth quarter was the best we've ever had in the fourth quarter. It was really designed to set ourselves up. Those six months were designed to set ourselves up for entry into January. We wanted to go into January with a fleet size that we thought would generate the demand and also generate utilization to give us the best possible outcome, you know, as we started the year up early. I think as Brian said, we're gonna look very heavily at what our, you know, our forecasted periods are, including the peak, obviously as we get closer. I think what we did in the third and fourth quarter gives us the agility and nimbleness to take action should the peak develop bigger than we thought or should it not, and then we could be at a place that's probably, you know, you know, a little best to jump off for if we had a lower fleet size. I think you'll see us look at that very critically. We have DFP, which I mentioned in my earlier remarks, that give us good forecasting insight and, you know, we've been tracking both leisure and commercial trends for a long period of time that should help us develop our strategies. Great. That's super helpful. Just wanted to ask just on the capital allocation front, clearly buyback has been a successful lever you've pulled. The environment's changed a little bit in terms of maybe assets that are out there that are distressed. As you look at kind of the landscape, is there any facets of the business where you look at things and say, "Hey, you know, there might be some strategic transformational M&A out there that might fit us," you know, maybe even in the mobility space or the auto remarketing space or retail space. Like, are those things, you know, what I would say, relevant in your thought process? Are you guys looking at 2023 and just saying, "Hey, we're just gonna keep running the same playbook that we've done the last couple years," and putting those things a little bit off to the future? Just would love to hear how you're thinking about that. Yeah. John, I think, you know, we've been consistent in saying that we won't be formulaic in terms of share repurchases. As we look at the free cash flow that we generate, we look, you know, across, like, all platforms in terms of where we can reinvest that. Yes, M&A is one of them. Obviously, reinvesting in ourselves has been a significant portion of our free cash flow usage, and we think that'll continue this year as well. Given rising interest rates and just general macroeconomic uncertainties, we're focused on corporate debt paydown and fleet equity contribution as well. When it comes to M&A, we're always looking. We do look at adjacencies, and as opportunities arise, you know, we're not gonna be shy about acting proactively. You know, that's something that we evaluate on a case-by-case basis. Understood. Thanks, guys. Thank you. Once again, ladies and gentlemen, that is star one if you would like to register a question at this time. The next question is coming from Diego Ortega of Morgan Stanley. Please go ahead. Hi. Good morning. I had a very quick one in terms of average fleet age. Do you have a metric for that in terms of months or miles, and how does that compare versus history, and how long, do you think you can extend that? Thank you. Hi, this is Joe. Let me try to answer that the best way I can. You know, over the pandemic, obviously the car rental companies had to, you know, increase the hold periods on their cars. We did a whole lot to try to reduce that in the second half of this year, as I mentioned, in the amount of cars that we sold. You know, I set up to say on average, is our age, you know, increased tremendously, you know, over the previous past time of pandemic? I would say it really hasn't. As far as mileage, we have, we've developed technology a while back that we called Mileage Optimization. Basically, the technology allows us to deploy a car to a customer based on their anticipated mileage needs. Over the years, as that starts to learn and get smarter, we've managed to, you know, to reduce our monthly per unit mileage a little bit over time, which helped our over-mileage attrition. As I said before in our earlier commentary, we spent a lot of time these past two quarters exiting higher mileage cars at pretty high gains, I would think, to get our fleet back in line so that we have a fleet size that's, you know, right for the time of year and also a product that's commercially acceptable to our customers. we keep getting new cars in, which is gonna obviously help the, you know, the per unit mileage and the, overall mileage of the health of our cars and the average mileage of our fleet. Got it. Thank you. Thanks. Thank you. The next question is coming from Ryan Brinkman of JPMorgan. Please go ahead. Hi, thanks for taking my question. I'd thought to ask on the trend in revenue per day, after it tracked stronger than we expected in the fourth quarter. I heard the comments on 1Q, but what are your thoughts on, like, what the new normal might be here or what the structural versus cyclical drivers of RPD may be and how that could shake out going forward? I mean, it seems like there's so much focus on what's happened with new and used vehicle prices and what the split of structural versus cyclical drivers there might be, which of course is somewhat related. With used prices down 15% in 2022, but your U.S. RPD up, you know, is that still driven by, like, present, you know, like, cyclical factors? Joe, I remember you saying in 2021 that the rental car industry will be at the bottom of the totem pole for receiving vehicles from the automakers when they do get their semiconductors. I guess I'm just trying to ask, like, how much of this good news on RPD do you think is driven by still present cyclical factors, such as shortage of rental cars, et cetera, versus how much might be driven more by structural factors, such as discipline on the part of the rental car firms even after supply normalizes or anything else? Okay, thanks. Let's take a look at a couple of factors. First of all, over the years, the amount of cars that the car rental companies have bought are certainly a lot less than they were. I don't see that changing in this year. You know, what things go in the years to come, hard to say, but I don't see that changing as the demand for new cars continues to, you know, continues to be robust. There's a lot of demand out there, a lot of travel-related demand. There are things that in our environment that, you know, may be causing that. Obviously, we have more commercial business than we had in the past. If you take a look at what's happening to the traveling consumer, I think that, you know, hybrid work has some significant effect on potentially travel. You work in your office three days a week, and you have off maybe Monday and Tuesday. That allows someone to look at their life maybe differently and say, "You know what? I'm gonna work remotely for two days and experience the benefits of enhanced experience or improved, you know, through travel and go see, you know, go to a sporting event or see a show or things of that nature." I also think bleisure is much more prominent than it was in the past. Bleisure being someone who goes on a business trip and then decides to stay over a couple of more days. I think that has increased, and that's structurally different than what we saw, you know, pre-pandemic. I think that has a heightened effect on demand. When demand is high and supply is somewhat constrained, you're always gonna see, you know, the improvement in price. I think we'll see that. You know, we have seen that in January and February. You know, what happens, you know, in the future is hard to say. We intend to stay disciplined. Yeah, Ryan, without getting to any kind of, like, specific guidance here, I think you mentioned discipline in the rental car industry about kind of the demand of absorbing new vehicles. I think another thing to consider is discipline in the OEM industry as well. The automakers are just making fewer cars, and they're allocating a fewer portion of that to the rental car providers. That's one thing that we view as structural. Also from our perspective, we're laser-focused on just a return on invested capital, our RPD will reflect that. Does that move lockstep quarter to quarter as depreciated? No. Over the course of time, we do require an appropriate return on our invested capital, we're gonna price our assets to reflect that. Okay, very helpful. Thank you. Then just lastly, did you share or are you able to say how much buyback you might have done here so far in year-to-date 2023? we haven't said that yet, but our 10-K will come out, and you'll see that, our total shares outstanding is 39.5 million shares, right around there, so, nothing in the first quarter. Thank you very much. Thank you. The next question is coming from Stephanie Moore of Jefferies. Please go ahead. Hi. Good morning. Thank you. I wanted to touch on the commercial travel business. It continues to be quite robust and I think a nice upside, you know, over the last couple quarters here. Can you really talk about what you're seeing with your commercial customers? Is there anything that we can kind of glean through this where you're able to kinda take incremental share because of either additional programs that you have running or, you know, we'd love just to get a sense of what's driving such a strong outperformance here beyond what I think we all realize is a return to some normal business travel behavior. Any other color that's more in your control would be helpful. Thank you. Okay, thanks. We've seen a good abundance of commercial travel. We said when we came out of September, at least I said it was the best September I've seen. It was largely due to, you know, an abundance of commercial travel that continued into October. It didn't slow down. We had pretty good commercial travel in November and December, which is usually, you know, those months are usually predicated on holiday and holiday travel. We came out of the gate in January, as I mentioned, with travel being strong, especially commercial. We're seeing growth from a good number of our partners in aerospace, defense contracting, healthcare, tech companies. As I said, there's probably some leisure in there as customers who travel commercially then stay a little bit extra and take in some leisure activities, which has certainly helped. We've had, over the past couple of years, a 100% retention rate in our commercial accounts, and I think that's important because we resign, you know, hundreds and hundreds of these every year. Over the years, we've had people attracted to our company due to some of the, you know, product offerings that we have. I mentioned in a previous, in a previous call, you know, our QuickPass. For those of you who don't know what it is, it's a product that allows a customer to choose a car on their phone prior to their landing at one of our airports. They can exchange it if they'd like through the use of their phone. They can bypass the counter due to facial technology that we have to say that you are who you say you are. You can exit the gate using your phone and over an exit gate reader that allows you to leave the gate. When you come back, our connected car technology will allow you to check you in and give you a receipt in seconds. Our commercial accounts like that opportunity for us. If they need help, there's always someone that they can go to. More so than not, it's kind of a contactless experience. We have plans to enhance our Budget Fastbreak offering, which is kind of more small business related. We've been working heavily on our digital properties, you know, to, you know, how you deploy and get reservations and things of that nature so that we can continue to enhance the customer experience, which allows, I guess, our retention rate and the fact that people have come to our company, you know, of late and travel the way they have. Absolutely. That's helpful. You know, I think depending on, you know, who you listen to or your own opinions, you know, there's a good number of people that are assuming the U.S. is in some kind of a recession either right now or hits, or hits one at some point in 2023. Would love to just kinda hear what you view would be your recessionary playbook, if we do indeed, enter one here in 2023. Thanks. Yeah. Listen, we're keenly aware of that. You're talking to someone who's been around for the last recession and who also managed through this pandemic. Our antennas are always up as far as that concerns. You know, you hear a lot of that, you know, especially, you know, as on TV and the like. We haven't seen it yet. We just haven't. Not in travel. Does that mean it won't happen? No, we have not yet seen it. I think there's one other element of travel that's that we haven't spoke about, and that's inbound business, right? I think that's gonna be, you know, pretty powerful this, you know, this coming year as well. It started last year as countries started to open up and people started to travel. As you remember, you know, there wasn't many flights, and capacities were challenged in last year's summer, and airports were challenged. I think you're gonna have people who now have the confidence to book, and I think that will help, which will increase the travel opportunities as we get to midyear. You know, to answer your question, we are keenly aware. We reacted really quickly in 2020 with, you know, getting costs out of the business. As I said earlier, we took out $2.5 billion. We made some tough decisions as it pertains to what we were doing back at that time. We were faced with an 80% or 90% decline in revenue, and we reacted, and we came through it on the other side. I'm fully confident in the team that we would be able to, you know, do what we needed to get through it and come back a stronger company as we are today. Great. Just one follow-up to that, to that point. Could you quantify, you know, what% of your business, you know, pre-COVID was that inbound business? Yeah, I don't recall that as it stands right now, but I will tell you this past year, our inbound business was up quite a bit. We think that we will be exploring the opportunity to better that going into this year. Understood. Thanks so much. Thanks. Thank you. Our next question is coming from Christopher Stathoulopoulos of Susquehanna. Please go ahead. Morning, everyone. Just one question for me. Joe, in your prepared remarks throughout the call, you talk about supply-demand dynamic gradually moving back towards equilibrium. Curious to hear your thoughts as we think about demand and some of the arguably structural changes within airlines, hybrid work, bleisure travel, uneven recovery in international travel and view from some that capacity is gonna remain tighter for some time. Given these dynamics, how are you thinking about... I understand about seasonality moving closer towards a more typical patterns, but if these dynamics persist here with your airline partners or just with travel in general, how are you thinking about managing the fleet under this kind of new construct, if you will? Thank you. Yeah. Well, listen, you know, we've been managing fleet here, and certainly I have for a long period of time, and we are keenly aware of both close in and longer-term patterns that we might see. We have systems that help us understand what they could be based on reservation demand and trend and what holidays look like and what peak period summer travel might be. I think if you were to ask me, we are going in with a, you know, cautious amount of optimism. We're gonna keep the fleets, as the way I see it, tight for a number of reasons as we said earlier. You know, fleet costs are higher, interest costs are higher. We don't wanna get ahead of ourselves. I believe our success over the past years has been our ability to react. Whether it be 2020, react to the fact that we needed to get out of cars and get out of cars in a very, very quick fashion and sell them in the ways we did through the channels that we had. As we did, you know, last year, to react and say, "You know what? The peak is gonna be bigger than we actually thought, and is there an opportunity to have more fleet?" The beauty of it is we have terrific relationships with our OEM partners. We deal with all of them. We have a large array of vehicles coming in that are both gas and EVs. You know, we've been able to sell cars in the last two quarters and allow us to go into January with the fleet size is at the right level. I do believe that gives us a tipping point to say, you know, should demand get up, come up, we can react, and should it go down, we could certainly react. I'm pretty positive where we are with our fleet size, and I think we have the experience and technologies at our disposal to ensure that that goes on throughout the rest of the year. Okay. Thank you. Thank you. At this time, I'd like to turn the floor back over to Mr. Ferraro for closing comments. Sure. Thank you. To recap, we reported our best yearly earnings in our company's history. Our team continues to deliver in every business metric, including enhanced revenue generation, diligent fleet management, and stringent cost control. These efforts were highlighted by the Americas reporting over $3.6 billion of Adjusted EBITDA during the year and International achieving historic fourth quarter and full year results. Most importantly, I really want to acknowledge and thank all the employees for their continued tireless efforts in helping us achieve these results. I'm excited for what we can accomplish in 2023 with this same level of intensity. Thank you all for your time and interest in our company. Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your lines at this time or log off the webcast and enjoy the rest of your day.