• Avis Budget Group Reports Second Quarter Results

    来源: Nasdaq GlobeNewswire / 05 8月 2024 15:00:42   America/Chicago

    PARSIPPANY, N.J., Aug. 05, 2024 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) announced financial results for second quarter 2024 today.

    We ended the quarter with revenues of more than $3.0 billion, driven by sequential monthly improvement in revenue per day. Net income was $15 million and our Adjusted EBITDA1 was $214 million.

    “As the second quarter progressed, demand elevated with pricing and vehicle utilization sequentially improving. June pricing finished down slightly and vehicle utilization up a point in the Americas compared to June 2023,” said Joe Ferraro, Avis Budget Group Chief Executive Officer. “Our actions to get our fleet size in-line with demand enabled us to start the third quarter with strong pricing around the Fourth of July holiday, setting us up well to take advantage of the summer peak.”

    Q2 HIGHLIGHTS

    • Revenues of more than $3.0 billion with rental days up 2% compared to second quarter 2023, and revenue per day sequentially improved throughout the quarter.
    • Adjusted EBITDA in the Americas was $186 million, with rental days up 1% compared to the second quarter 2023, and revenue per day improving month to month with June revenue per day finishing down 2% compared to June 2023.
    • Adjusted EBITDA in International was $48 million, driven by improved vehicle utilization while rental days increased by 5% compared to second quarter 2023.
    • Vehicle utilization was 70.2% in the quarter, with June improving by approximately one point compared to June 2023.

    Our liquidity position, including committed and uncommitted facilities, at the end of the quarter was $822 million, with an additional $2.9 billion of fleet funding capacity. We have well-laddered corporate debt and have no meaningful maturities until 2027.

    ____________________
    1 Adjusted EBITDA and certain other measures in this release are non-GAAP financial measures. See "Non-GAAP Financial Measures and Key Metrics" and the tables that accompany this release for the definitions and reconciliations of these non-GAAP measures to the most comparable GAAP measures.

    INVESTOR CONFERENCE CALL

    We will host a conference call to discuss our second quarter results on August 6, 2024, at 8:30 a.m. (ET). Investors may access the call on our investor relations website at ir.avisbudgetgroup.com or by dialing (877) 407-2991. A replay of the call will be available on our website and at (877) 660-6853 using conference code 13743682.

    ABOUT AVIS BUDGET GROUP

    We are a leading global provider of mobility solutions, both through our Avis and Budget brands, which have approximately 10,250 rental locations in approximately 180 countries around the world, and through our Zipcar brand, which is the world's leading car sharing network. We operate most of our car rental locations in North America, Europe and Australasia directly, and operate primarily through licensees in other parts of the world. We are headquartered in Parsippany, N.J. More information is available at avisbudgetgroup.com.

    NON-GAAP FINANCIAL MEASURES AND KEY METRICS

    This release includes financial measures such as Adjusted EBITDA and Adjusted Free Cash Flow, as well as other financial measures, that are not considered generally accepted accounting principle (“GAAP”) measures as defined under SEC rules. Important information regarding such non-GAAP measures is contained in the tables within this release and in Appendix I, including the definitions of these measures and reconciliations to the most comparable GAAP measures.

    We measure performance principally using the following key metrics: (i) rental days, (ii) revenue per day, (iii) vehicle utilization, and (iv) per-unit fleet costs. Our rental days, revenue per day and vehicle utilization metrics are all calculated based on the actual rental of the vehicle during a 24-hour period. We believe that this methodology provides management with the most relevant metrics in order to effectively manage the performance of our business. Our calculations may not be comparable to the calculations of similarly-titled metrics by other companies. We present currency exchange rate effects on our key metrics to provide a method of assessing how our business performed excluding the effects of foreign currency rate fluctuations. Currency exchange rate effects are calculated by translating the current-period's results at the prior-period average exchange rates plus any related gains and losses on currency hedges.

    FORWARD-LOOKING STATEMENTS

    Certain statements in this press release constitute “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained herein are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by any such forward-looking statements. Forward-looking statements include information concerning our future financial performance, business strategy, projected plans and objectives. These statements may be identified by the fact that they do not relate to historical or current facts and may use words such as “believes,” “expects,” “anticipates,” “will,” “should,” “could,” “may,” “would,” “intends,” “projects,” “estimates,” “plans,” “forecasts,” “guidance,” and similar words, expressions or phrases. The following important factors and assumptions could affect our future results and could cause actual results to differ materially from those expressed in such forward-looking statements. These factors include, but are not limited to:

    • the high level of competition in the mobility industry, including from new companies or technology, and the impact such competition may have on pricing and rental volume;
    • a change in our fleet costs, including as a result of a change in the cost of new vehicles, resulting from inflation or otherwise, manufacturer recalls, disruption in the supply of new vehicles, including due to labor actions or otherwise, shortages in semiconductors used in new vehicle production, and/or a change in the price at which we dispose of used vehicles either in the used vehicle market or under repurchase or guaranteed depreciation programs;
    • the results of operations or financial condition of the manufacturers of our vehicles, which could impact their ability to perform their payment obligations under our agreements with them, including repurchase and/or guaranteed depreciation arrangements, and/or their willingness or ability to make vehicles available to us or the mobility industry as a whole on commercially reasonable terms or at all;
    • levels of and volatility in travel demand, including future volatility in airline passenger traffic;
    • a deterioration in economic conditions, resulting in a recession or otherwise, particularly during our peak season or in key market segments;
    • an occurrence or threat of terrorism, pandemic diseases such as COVID-19, natural disasters, military conflicts, including the ongoing military conflicts in the Middle East and Eastern Europe, or civil unrest in the locations in which we operate, and the potential effects of sanctions on the world economy and markets and/or international trade;
    • any substantial changes in the cost or supply of fuel, vehicle parts, energy, labor or other resources on which we depend to operate our business, including as a result of a global pandemic such as COVID-19, inflation, the ongoing military conflicts in the Middle East and Eastern Europe, and any embargoes on oil sales imposed on or by the Russian government;
    • our ability to successfully implement or achieve our business plans and strategies, achieve and maintain cost savings and adapt our business to changes in mobility;
    • political, economic or commercial instability in the countries in which we operate, and our ability to conform to multiple and conflicting laws or regulations in those countries;
    • the performance of the used vehicle market from time to time, including our ability to dispose of vehicles in the used vehicle market on attractive terms;
    • our dependence on third-party distribution channels, third-party suppliers of other services and co-marketing arrangements with third parties;
    • risks related to completed or future acquisitions or investments that we may pursue, including the incurrence of incremental indebtedness to help fund such transactions and our ability to promptly and effectively integrate any acquired businesses or capitalize on joint ventures, partnerships and other investments;
    • our ability to utilize derivative instruments, and the impact of derivative instruments we utilize, which can be affected by fluctuations in interest rates, fuel prices and exchange rates, changes in government regulations and other factors;
    • our exposure to uninsured or unpaid claims in excess of historical levels and our ability to obtain insurance at desired levels and the cost of that insurance;
    • risks associated with litigation or governmental or regulatory inquiries, or any failure or inability to comply with laws, regulations or contractual obligations or any changes in laws, regulations or contractual obligations, including with respect to personally identifiable information and consumer privacy, labor and employment, and tax;
    • risks related to protecting the integrity of, and preventing unauthorized access to, our information technology systems or those of our third-party vendors, licensees, dealers, independent operators and independent contractors, and protecting the confidential information of our employees and customers against security breaches, including physical or cybersecurity breaches, attacks, or other disruptions, compliance with privacy and data protection regulation, and the effects of any potential increase in cyberattacks on the world economy and markets and/or international trade;
    • any impact on us from the actions of our third-party vendors, licensees, dealers, independent operators and independent contractors and/or disputes that may arise out of our agreements with such parties;
    • any major disruptions in our communication networks or information systems;
    • risks related to tax obligations and the effect of future changes in tax laws and accounting standards;
    • risks related to our indebtedness, including our substantial outstanding debt obligations, recent and future interest rate increases, which increase our financing costs, downgrades by rating agencies and our ability to incur substantially more debt;
    • our ability to obtain financing for our global operations, including the funding of our vehicle fleet through the issuance of asset-backed securities and use of the global lending markets;
    • our ability to meet the financial and other covenants contained in the agreements governing our indebtedness, or to obtain a waiver or amendment of such covenants should we be unable to meet such covenants;
    • significant changes in the assumptions and estimates that are used in our impairment testing for goodwill or intangible assets, which could result in a significant impairment of our goodwill or intangible assets; and
    • other business, economic, competitive, governmental, regulatory, political or technological factors affecting our operations, pricing or services.

    We operate in a continuously changing business environment and new risk factors emerge from time to time. New risk factors, factors beyond our control, or changes in the impact of identified risk factors may cause actual results to differ materially from those set forth in any forward-looking statements. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. Moreover, we do not assume responsibility if future results are materially different from those forecasted or anticipated. Other factors and assumptions not identified above, including those discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” set forth in Part II, Item 7, in "Risk Factors," set forth in Part I, Item 1A, and in other portions of our 2023 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 16, 2024 (the “2023 Form 10-K”), as well as in similarly titled sections set forth in Part I, Item 2 and Part II, Item 1A of our subsequently filed quarterly reports, may cause actual results to differ materially from those projected in any forward-looking statements.

    Although we believe that our assumptions are reasonable, any or all of our forward-looking statements may prove to be inaccurate and we can make no guarantees about our future performance. Should unknown risks or uncertainties materialize or underlying assumptions prove inaccurate, actual results could differ materially from past results and/or those anticipated, estimated or projected. We undertake no obligation to release any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events. For any forward-looking statements contained in any document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. For additional information concerning forward-looking statements and other important factors, refer to our 2023 Form 10-K, Quarterly Reports on Form 10-Q and other filings with the SEC.

    Investor Relations Contact:Media Relations Contact:
    David Calabria, IR@avisbudget.comJames Tomlinson, ABGPress@edelman.com
      
    *** Tables 1 - 6 and Appendix I attached ***


    Table 1

    Avis Budget Group, Inc.
    SUMMARY DATA SHEET (Unaudited)
    (In millions, except per share data)

     Three Months Ended
    June 30,    		  Six Months Ended
    June 30,    		 
      2024  2023 % Change   2024   2023  % Change 
    Income Statement and Other Items             
    Revenues$3,048 $3,123 (2)% $5,599  $5,680  (1)%
    Income (loss) before income taxes 27  598 (95)%  (115)  995  (112)%
    Net income (loss) 15  436 (97)%  (98)  748  (113)%
    Earnings (loss) per share - diluted 0.41  11.01 (96)%  (2.80)  18.93  (115)%
                  
    Adjusted EBITDA(a) 214  737 (71)%  226   1,272  (82)%
                  
            As of   
            June 30,
    2024    		 December 31,
    2023    		   
    Balance Sheet Items             
    Cash and Cash Equivalents       $511  $555    
    Program cash and restricted cash        72   89    
    Vehicles, net        22,474   21,240    
    Debt under vehicle programs        19,534   18,937    
    Corporate debt        5,261   4,823    
    Stockholders' equity attributable to Avis Budget Group, Inc.        (490)  (349)   


     Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
      2024   2023  % Change  2024   2023  % Change
    Segment Results           
                
    Revenues           
    Americas$2,361  $2,428  (3)% $4,354  $4,444  (2)%
    International 687   695  (1)%  1,245   1,236  1%
    Corporate and Other -   -  n/m  -   -  n/m
    Total Company$3,048  $3,123  (2)% $5,599  $5,680  (1)%
                
    Adjusted EBITDA(a)           
    Americas$186  $631  (71)% $230  $1,147  (80)%
    International 48   126  (62)%  33   176  (81)%
    Corporate and Other (20)  (20) -%  (37)  (51) 27%
    Total Company$214  $737  (71)% $226  $1,272  (82)%


    _______
    n/mNot meaningful.
    (a)Refer to Table 5 for the reconciliation of net income to Adjusted EBITDA and Appendix I for the related definition of the non-GAAP financial measure.



    Table 2

    Avis Budget Group, Inc.
    CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
    (In millions, except per share data)

     Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
      2024  2023  2024   2023
    Revenues$3,048 $3,123 $5,599  $5,680
            
    Expenses       
    Operating 1,532  1,475  2,876   2,782
    Vehicle depreciation and lease charges, net 733  375  1,369   640
    Selling, general and administrative 348  378  673   702
    Vehicle interest, net 244  172  483   305
    Non-vehicle related depreciation and amortization 58  52  119   108
    Interest expense related to corporate debt, net:       
    Interest expense 88  68  171   141
    Early extinguishment of debt 1  -  1   -
    Restructuring and other related charges 14  1  17   5
    Transaction-related costs, net 1  -  2   -
    Other (income) expense, net 2  4  3   2
    Total expenses 3,021  2,525  5,714   4,685
            
    Income (loss) before income taxes 27  598  (115)  995
    Provision for (benefit from) income taxes 12  162  (17)  247
    Net income (loss) 15  436  (98)  748
    Less: net income attributable to non-controlling interests 1  1  2   1
    Net income (loss) attributable to Avis Budget Group, Inc.$14 $435 $(100) $747
            
    Earnings (loss) per share       
    Basic$0.41 $11.13 $(2.80) $19.16
    Diluted$0.41 $11.01 $(2.80) $18.93
            
    Weighted average shares outstanding       
    Basic 35.6  39.1  35.6   39.0
    Diluted 35.7  39.5  35.6   39.5



    Table 3

    Avis Budget Group, Inc.
    KEY METRICS SUMMARY (Unaudited)

     Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
      2024   2023  % Change  2024   2023  % Change
    Americas           
                
    Rental Days (000’s) 32,940   32,708  1%  62,632   60,982  3%
    Revenue per Day$71.67  $74.23  (3)% $69.51  $72.87  (5)%
    Revenue per Day, excluding exchange rate effects$71.74  $74.23  (3)% $69.55  $72.87  (5)%
    Average Rental Fleet 515,852   506,232  2%  506,583   479,383  6%
    Vehicle Utilization 70.2%  71.0% (0.8) pps  67.9%  70.3% (2.4) pps
    Per-Unit Fleet Costs per Month$361  $168  115% $344  $149  131%
    Per-Unit Fleet Costs per Month, excluding exchange rate effects$362  $168  115% $344  $149  131%
                
    International           
                
    Rental Days (000’s) 12,094   11,504  5%  22,454   21,466  5%
    Revenue per Day$56.85  $60.47  (6)% $55.47  $57.60  (4)%
    Revenue per Day, excluding exchange rate effects$57.47  $60.47  (5)% $55.82  $57.60  (3)%
    Average Rental Fleet 189,293   183,251  3%  179,682   175,774  2%
    Vehicle Utilization 70.2%  69.0% 1.2 pps  68.7%  67.5% 1.2 pps
    Per-Unit Fleet Costs per Month$305  $219  39% $299  $200  50%
    Per-Unit Fleet Costs per Month, excluding exchange rate effects$308  $219  41% $299  $200  50%
                
    Total           
                
    Rental Days (000’s) 45,034   44,212  2%  85,086   82,448  3%
    Revenue per Day$67.69  $70.65  (4)% $65.81  $68.90  (4)%
    Revenue per Day, excluding exchange rate effects$67.91  $70.65  (4)% $65.93  $68.90  (4)%
    Average Rental Fleet 705,145   689,483  2%  686,265   655,157  5%
    Vehicle Utilization 70.2%  70.5% (0.3) pps  68.1%  69.5% (1.4) pps
    Per-Unit Fleet Costs per Month$346  $182  90% $332  $163  104%
    Per-Unit Fleet Costs per Month, excluding exchange rate effects$347  $182  91% $333  $163  104%
    _______      
    Refer to Table 6 for key metrics calculations and Appendix I for key metrics definitions.



    Table 4
    Avis Budget Group, Inc.
    CONSOLIDATED CONDENSED SCHEDULE OF CASH FLOW AND ADJUSTED FREE CASH FLOW (Unaudited)
    (In millions)

    CONSOLIDATED CONDENSED SCHEDULE OF CASH FLOWSix Months Ended
    June 30, 2024
    Operating Activities 
    Net cash provided by operating activities$1,473 
    Investing Activities 
    Net cash used in investing activities exclusive of vehicle programs (99)
    Net cash used in investing activities of vehicle programs (2,456)
    Net cash used in investing activities (2,555)
    Financing Activities 
    Net cash provided by financing activities exclusive of vehicle programs 447 
    Net cash provided by financing activities of vehicle programs 589 
    Net cash provided by financing activities 1,036 
    Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash (15)
    Net change in cash and cash equivalents, program and restricted cash (61)
    Cash and cash equivalents, program and restricted cash, beginning of period 644 
    Cash and cash equivalents, program and restricted cash, end of period$583 


    ADJUSTED FREE CASH FLOW(a)
    Adjusted EBITDA(b)$226 
    Interest expense related to corporate debt, net (excluding early extinguishment of debt) (171)
    Working capital and other 88 
    Capital expenditures(c) (108)
    Tax payments, net of refunds (23)
    Vehicle programs and related(d) (480)
    Adjusted Free Cash Flow(b)$(468)
    Acquisition and related payments, net of acquired cash (1)
    Borrowings, net of debt repayments 479 
    Repurchases of common stock (16)
    Change in program and restricted cash (15)
    Other receipts (payments), net (10)
    Foreign exchange effects, financing costs and other (30)
    Net change in cash and cash equivalents, program and restricted cash (per above)$(61)


    _______
    Refer to Appendix I for the definitions of non-GAAP financial measures Adjusted EBITDA and Adjusted Free Cash Flow.
    (a)This presentation demonstrates the relationship between Adjusted EBITDA and Adjusted Free Cash Flow. We believe it is useful to understand this relationship because it demonstrates how cash generated by our operations is used. This presentation is not intended to be reconciliations of these non-GAAP measures, which are provided on Table 5.
    (b)Refer to Table 5 for the reconciliations of net income (loss) to Adjusted EBITDA and net cash provided by operating activities to Adjusted Free Cash Flow.
    (c)Includes $10 million of cloud computing implementation costs.
    (d)Includes vehicle-backed borrowings (repayments) that are incremental to amounts required to fund vehicle and vehicle-related assets.



    Table 5

    Avis Budget Group, Inc.
    RECONCILIATION OF NON-GAAP MEASURES (Unaudited)
    (In millions)

     Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
      2024  2023  2024   2023
    Reconciliation of Net income (loss) to Adjusted EBITDA:       
            
    Net income (loss)$15 $436 $(98) $748
    Provision for (benefit from) income taxes 12  162  (17)  247
    Income (loss) before income taxes 27  598  (115)  995
    Non-vehicle related depreciation and amortization 58  52  119   108
    Interest expense related to corporate debt, net:       
    Interest expense 88  68  171   141
    Early extinguishment of debt 1  -  1   -
    Restructuring and other related charges 14  1  17   5
    Transaction-related costs, net 1  -  2   -
    Other (income) expense, net 2  4  3   2
    Reported within operating expenses:       
    Cloud computing costs 11  9  21   16
    Legal matters, net 12  5  7   5
    Adjusted EBITDA$214 $737 $226  $1,272
                 
    Reconciliation of Net cash provided by operating activities to Adjusted Free Cash Flow:            
                 
    Net cash provided by operating activities      $1,473    
    Net cash used in investing activities of vehicle programs       (2,456)   
    Net cash provided by financing activities of vehicle programs       589    
    Capital expenditures       (98)   
    Proceeds received on sale of assets and nonmarketable equity securities       1    
    Acquisition and disposition-related payments       (2)   
    Change in program and restricted cash       15    
    Other receipts (payments), net       10    
    Adjusted Free Cash Flow      $(468)   


    _______
    Refer to Appendix I for the definitions of Adjusted EBITDA and Adjusted Free Cash Flow, non-GAAP financial measures. Adjusted EBITDA includes stock-based compensation expense and vehicle related deferred financing fee amortization in the aggregate totaling $16 million and $14 million in the three months ended June 30, 2024 and 2023, respectively, and $31 million and $29 million in the six months ended June 30, 2024 and 2023, respectively.



    Table 6

    Avis Budget Group, Inc.
    KEY METRICS CALCULATIONS (Unaudited)
    ($ in millions, except as noted)

     Three Months Ended
    June 30, 2024    		 Three Months Ended
    June 30, 2023
     Americas International Total Americas International Total
    Revenue per Day (RPD)
    Revenue$2,361  $687  $3,048  $2,428  $695  $3,123 
    Currency exchange rate effects 2   8   10   -   -   -
    		 
    Revenue excluding exchange rate effects$2,363  $695  $3,058  $2,428  $695  $3,123 
    Rental days (000's) 32,940   12,094   45,034   32,708   11,504   44,212 
    RPD excluding exchange rate effects (in $'s)$71.74  $57.47  $67.91  $74.23  $60.47  $70.65 
                
    Vehicle Utilization
    Rental days (000's) 32,940   12,094   45,034   32,708   11,504   44,212 
    Average rental fleet 515,852   189,293   705,145   506,232   183,251   689,483 
    Number of days in period 91   91   91   91   91   91 
    Available rental days (000's) 46,943   17,226   64,169   46,067   16,676   62,743 
    Vehicle utilization 70.2%  70.2%  70.2%  71.0%  69.0%  70.5%
                
    Per-Unit Fleet Costs
    Vehicle depreciation and lease charges, net$559  $174  $733  $255  $120  $375 
    Currency exchange rate effects 1   1   2   -   -   - 
    Vehicle depreciation excluding exchange rate effects$560  $175  $735  $255  $120  $375 
    Average rental fleet 515,852   189,293   705,145   506,232   183,251   689,483 
    Per-unit fleet costs (in $'s)$1,085  $924  $1,042  $504  $657  $545 
    Number of months in period 3   3   3   3   3   3 
    Per-unit fleet costs per month excluding exchange rate effects (in $'s)$362  $308  $347  $168  $219  $182 


     Six Months Ended
    June 30, 2024    		 Six Months Ended
    June 30, 2023
     Americas International Total Americas International Total
    Revenue per Day (RPD)           
    Revenue$4,354  $1,245  $5,599  $4,444  $1,236  $5,680 
    Currency exchange rate effects 2   8   10   -   -   - 
    Revenue excluding exchange rate effects$4,356  $1,253  $5,609  $4,444  $1,236  $5,680 
    Rental days (000's) 62,632   22,454   85,086   60,982   21,466   82,448 
    RPD excluding exchange rate effects (in $'s)$69.55  $55.82  $65.93  $72.87  $57.60  $68.90 
                
    Vehicle Utilization           
    Rental days (000's) 62,632   22,454   85,086   60,982   21,466   82,448 
    Average rental fleet 506,583   179,682   686,265   479,383   175,774   655,157 
    Number of days in period 182   182   182   181   181   181 
    Available rental days (000's) 92,198   32,702   124,900   86,768   31,815   118,583 
    Vehicle utilization 67.9%  68.7%  68.1%  70.3%  67.5%  69.5%
                
    Per-Unit Fleet Costs           
    Vehicle depreciation and lease charges, net$1,046  $323  $1,369  $429  $211  $640 
    Currency exchange rate effects 1   -   1   -   -   - 
    Vehicle depreciation excluding exchange rate effects$1,047  $323  $1,370  $429  $211  $640 
    Average rental fleet 506,583   179,682   686,265   479,383   175,774   655,157 
    Per-unit fleet costs (in $'s)$2,066  $1,796  $1,995  $895  $1,199  $977 
    Number of months in period 6   6   6   6   6   6 
    Per-unit fleet costs per month excluding exchange rate effects (in $'s)$344  $299  $333  $149  $200  $163 


    Our calculation of rental days and revenue per day may not be comparable to the calculation of similarly-titled metrics by other companies. Currency exchange rate effects are calculated by translating the current-period's results at the prior-period average exchange rates plus any related gains and losses on currency hedges.

    Appendix I

    Avis Budget Group, Inc.
    DEFINITIONS OF NON-GAAP MEASURES AND KEY METRICS

    Adjusted EBITDA
    The accompanying press release presents Adjusted EBITDA, which is a non-GAAP measure most directly comparable to net income (loss). Adjusted EBITDA is defined as income (loss) from continuing operations before non-vehicle related depreciation and amortization; any impairment charges; restructuring and other related charges; early extinguishment of debt costs; non-vehicle related interest; transaction-related costs, net; legal matters, which includes amounts recorded in excess of $5 million related to class action lawsuits and personal injury matters; non-operational charges related to shareholder activist activity, which includes third-party advisory, legal and other professional fees; COVID-19 charges, net; cloud computing costs; other (income) expense, net; and income taxes.

    We believe Adjusted EBITDA is useful to investors as a supplemental measure in evaluating the performance of our operating businesses and in comparing our results from period to period. We also believe that Adjusted EBITDA is useful to investors because it allows them to assess our results of operations and financial condition on the same basis that management uses internally. Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with U.S. GAAP. Our presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. A reconciliation of Adjusted EBITDA from net income (loss) recognized under GAAP is provided on Table 5.

    Adjusted Free Cash Flow
    Represents net cash provided by operating activities adjusted to reflect the cash inflows and outflows relating to capital expenditures, the investing and financing activities of our vehicle programs, asset sales, if any, and to exclude debt extinguishment costs, transaction-related costs, restructuring and other related charges, charges for legal matters, net, which includes amounts recorded in excess of $5 million related to class action lawsuits and personal injury matters, COVID-19 charges, other (income) expense, and non-operational charges related to shareholder activist activity. We believe that Adjusted Free Cash Flow is useful to management and investors in measuring the cash generated that is available to be used to repay debt obligations, repurchase stock, pay dividends and invest in future growth through new business development activities or acquisitions. Adjusted Free Cash Flow should not be construed as a substitute in measuring operating results or liquidity, and our presentation of Adjusted Free Cash Flow may not be comparable to similarly-titled measures used by other companies. A reconciliation of Adjusted Free Cash Flow from net cash provided by operating activities recognized under GAAP is provided on Table 5.

    Adjusted EBITDA Margin
    Represents Adjusted EBITDA as a percentage of revenues.

    Available Rental Days
    Defined as Average Rental Fleet times the numbers of days in a given period.

    Average Rental Fleet
    Represents the average number of vehicles in our fleet during a given period of time.

    Currency Exchange Rate Effects
    Represents the difference between current-period results as reported and current-period results translated at the prior-period average exchange rates plus any related currency hedges.

    Net Corporate Debt
    Represents corporate debt minus cash and cash equivalents.

    Net Corporate Leverage
    Represents Net Corporate Debt divided by Adjusted EBITDA for the twelve months prior to the date of calculation.

    Per-Unit Fleet Costs
    Represents vehicle depreciation, lease charges and gain or loss on vehicles sales, divided by Average Rental Fleet.

    Rental Days
    Represents the total number of days (or portion thereof) a vehicle was rented during a 24-hour period.

    Revenue per Day
    Represents revenues divided by Rental Days.

    Vehicle Utilization
    Represents Rental Days divided by Available Rental Days.


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