AA - no surprise, significant focus on cost savings going forward

All,

Given the Company released a shorter statement in March with headline numbers, there was nothing new on past performance.  Guidance limited going forward.  Membership retention slightly down and new membership sales have softened but should be mitigated by substantially lower costs due to lower garaging costs and significantly higher parts/battery sales.  Insurance business performing in line with expectation. As reminder, no exposure to direct claims from COVID19.  

Company have highlighted the refinancing issues surrounding the B notes, and they are examining all possibilities in relation to refinancing these notes.  They expect to be in position to refinance the balance of the A3 notes later this year.  

We will update our model later, but the Company continues to show its stability and resilience of revenue and EBITDA as expected.  

Any questions, please do not hesitate to contact us.

Tomas