• Avis Budget Group Reports Record Revenues, Net Income and Adjusted EBITDA

    Источник: Nasdaq GlobeNewswire / 14 фев 2022 15:05:01   America/Chicago

    PARSIPPANY, N.J., Feb. 14, 2022 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) today announced financial results for fourth quarter and full year ended December 31, 2021.

    We ended 2021 with fourth quarter revenues 90% above prior year and 19% above fourth quarter of 2019, at $2.6 billion. Our revenues were driven by increased revenue per day and rental days as demand continued from the third quarter. Net income was $381 million and Adjusted EBITDA was $683 million, our best fourth quarter Adjusted EBITDA in Company history. Utilization for the quarter was 68.2%, showing that our fleet was well positioned to meet demand.

    Full year revenues increased 72% compared to the prior year and 2% above 2019, at $9.3 billion. Net income was $1.3 billion and Adjusted EBITDA was $2.4 billion, both new full year records for the Company. The significant increase in revenues suggests a steady return to historic travel levels.

    Our liquidity position at the end of the quarter was approximately $757 million with an additional $2.6 billion of fleet funding capacity. We have well-laddered corporate debt and no meaningful maturities until 2024.

    “Our strong performance continued in the fourth quarter with all of our key metrics beating pre-pandemic levels in the Americas,” said Joe Ferraro, Avis Budget Group Chief Executive Officer. “We were able to achieve these results and deliver the best year in our Company's history despite the emergence of Omicron. This wouldn't have been possible without the tireless effort of our entire organization and I want to thank the team for helping us achieve these milestones.”

    Q4 and Full Year Highlights

    • Total Company revenues for the fourth quarter increased by 90% and 19% compared to fourth quarter 2020 and 2019, respectively.
    • Adjusted EBITDA in the Americas was $670 million for the fourth quarter and $2.4 billion for the year ended 2021 driven by strong pricing, increased demand and sustained cost discipline.
    • Adjusted EBITDA in International was $32 million for the fourth quarter and $118 million for the year ended 2021 driven by strong pricing, continued recovering volume and strong cost mitigating actions.
    • We repurchased approximately 2.6 million shares of common stock in the fourth quarter at an average cost of $170, bringing our total repurchases to approximately 14.3 million shares of common stock for 2021.

    Investor Conference Call

    We will host a conference call to discuss fourth quarter and full year ended December 31, 2021 results on February 15, 2022, at 8:30 a.m. (ET). Investors may access the call at ir.avisbudgetgroup.com or by dialing (877) 407-2991 and a replay will available on our website and at (877) 660-6853 using conference code 13726207.

    About Avis Budget Group

    Avis Budget Group, Inc. is a leading global provider of mobility solutions, both through its Avis and Budget brands, which have more than 10,000 rental locations in approximately 180 countries around the world, and through its Zipcar brand, which is the world's leading car sharing network with more than one million members. Avis Budget Group operates most of its car rental offices in North America, Europe and Australasia directly, and operates primarily through licensees in other parts of the world. Avis Budget Group is headquartered in Parsippany, N.J. More information is available at avisbudgetgroup.com.

    Forward-Looking Statements

    Certain statements in this press release constitute “forward-looking statements.” Any statements that refer to outlook, expectations or other characterizations of future events, circumstances or results, including all statements related to our future results, impact from the COVID-19 outbreak, future travel levels, cost-saving actions, the global semiconductor shortage and cash flows are forward-looking statements. Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this press release include, but are not limited to, the severity and duration of the COVID-19 outbreak, which is expected to continue to have a significant impact on our operations, and resulting economic conditions and related restrictions, the high level of competition in the mobility industry, changes in our fleet costs, including as a result of a change in the cost of new vehicles, manufacturer recalls and/or the value of used vehicles, disruption in the supply of new vehicles, disposition of vehicles not covered by manufacturer repurchase programs, our ability to realize our estimated cost savings on a timely basis, or at all, the financial condition of the manufacturers that supply our rental vehicles, including as a result of the global semiconductor shortage, which could affect their ability to perform their obligations under our repurchase and/or guaranteed depreciation arrangements, the significant decline in travel demand as a result of COVID-19, including the current and any further disruptions in airline passenger traffic, the absence of an improvement in or any further deterioration in economic conditions generally, particularly during our peak season and/or in key market segments, any occurrence or threat of terrorism, the current and any future pandemic diseases or other natural disasters, any changes to the cost or supply of fuel, risks related to acquisitions or integration of acquired businesses, risks associated with litigation, including class action lawsuits, governmental or regulatory inquiries or investigations, risks related to the security of our information technology systems, disruptions in our communication networks, changes in tax or other regulations, a significant increase in interest rates or borrowing costs, our ability to obtain financing for our global operations, including the funding of our vehicle fleet via asset-backed securities markets, any fluctuations related to the mark-to-market of derivatives which hedge our exposure to exchange rates, interest rates and fuel costs, our ability to meet the covenants contained in the agreements governing our indebtedness, and our ability to accurately estimate our future results and implement our cost savings actions. Other unknown or unpredictable factors could also have material adverse effects on the Company’s performance or achievements. Important assumptions and other important factors that could cause actual results to differ materially from those in the forward-looking statements are specified in Avis Budget Group’s Annual Report on Form 10-K for the year ended December 31, 2020, Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2021 and in other filings and furnishings made by the Company with the Securities and Exchange Commission (the "SEC") from time to time. The Company undertakes no obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.

    Non-GAAP Financial Measures and Key Metrics

    This release includes financial measures such as Adjusted EBITDA, Adjusted net income and Adjusted free cash flow, as well as other financial measures that are not considered generally accepted accounting principles (“GAAP”) measures as defined under SEC rules. Important information regarding such measures is contained in the financial tables to this release and in Appendix I, including the definitions of these measures and reconciliations to the closest comparable GAAP measures. The Company and its management believe that these non-GAAP measures are useful to investors in measuring the comparable results of the Company period-over-period. The GAAP measures most directly comparable to Adjusted EBITDA, Adjusted free cash flow, Adjusted pretax income (loss), Adjusted net income (loss) and Adjusted diluted earnings (loss) per share are net income (loss), net cash provided by operating activities, income (loss) before income taxes, net income (loss) attributable to Avis Budget Group, Inc. and diluted earnings (loss) per share, respectively. Foreign currency translation effects on the Company’s results are quantified by translating the current period’s non-U.S. dollar-denominated results using the currency exchange rates of the prior period of comparison including any related gains and losses on currency hedges. Per-unit fleet costs, which represent vehicle depreciation, lease charges and gain or loss on vehicle sales, divided by average rental fleet, are calculated on a per-month basis.

    Contact
    David Calabria
    IR@avisbudget.com
    PR@avisbudget.com

    Tables Follow

     
    Table 1
    Avis Budget Group, Inc.
    SUMMARY DATA SHEET
    (In millions, except per share data)
         
      Three Months Ended December 31, Year Ended December 31,
       2021   2020  % Change  2021  2020  % Change
    Income Statement and Other Items           
     Revenues$2,569  $1,355  90% $9,313 $5,402  72%
     Income (loss) before income taxes 543   (135) 502%  1,708  (956) 279%
     Net income (loss) 381   (90) 523%  1,283  (684) 288%
     Earnings (loss) per share - diluted 6.63   (1.29) 614%  19.44  (9.71) 300%
                  
     Adjusted Earnings Measures (non-GAAP) (A)            
     Adjusted EBITDA$683  $74  823% $2,411 $(175) n/m 
     Adjusted pretax income (loss) 578   (46) n/m   1,980  (626) 416%
     Adjusted net income (loss) 408   (26) n/m   1,486  (438) 439%
     Adjusted earnings (loss) per share - diluted 7.08   (0.36) n/m   22.49  (6.21) 462%
                 
      As of        
      December
    31, 2021    		 December
    31, 2020    		        
    Balance Sheet Items           
     Cash and Cash Equivalents$534  $692         
     Vehicles, net 12,866   8,153         
     Debt under vehicle programs 11,390   6,857         
     Corporate debt 4,009   4,210         
     Stockholders' equity attributable to Avis Budget Group, Inc. (220)  (155)        


    Segment Results           
     Three Months Ended December 31, Year Ended December 31,
      2021   2020  % Change  2021   2020  % Change
    Revenues           
    Americas$2,100  $1,029  104% $7,557  $3,965  91%
    International 469   326  44%  1,756   1,437  22%
    Corporate and Other —   —  n/m   —   —  n/m 
    Total Company$2,569  $1,355  90% $9,313  $5,402  72%
                   
    Adjusted EBITDA            
    Americas$670  $113  493% $2,364  $72  n/m 
    International 32   (28) 214%  118   (202) 158%
    Corporate and Other (19)  (11) n/m   (71)  (45) n/m 
    Total Company$683  $74  823% $2,411  $(175) n/m 


    _______
    n/mNot meaningful.
    (A)See Table 5 for reconciliations of non-GAAP measures and Appendix I for definitions.


    Table 2
    Avis Budget Group, Inc.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (In millions, except per share data)
     
      Three Months Ended
    December 31,    		 Year Ended
    December 31,
       2021   2020   2021   2020 
    Revenues$2,569  $1,355  $9,313  $5,402 
             
    Expenses       
     Operating 1,166   817   4,255   3,322 
     Vehicle depreciation and lease charges, net 328   279   1,197   1,368 
     Selling, general and administrative 308   154   1,145   703 
     Vehicle interest, net 81   71   313   318 
     Non-vehicle related depreciation and amortization 73   72   272   286 
     Interest expense related to corporate debt, net:       
     Interest expense 51   68   218   231 
     Early extinguishment of debt —   —   136   9 
     Restructuring and other related charges 17   29   64   118 
     Transaction-related costs, net 2   —   5   3 
    Total expenses 2,026   1,490   7,605   6,358 
             
    Income (loss) before income taxes 543   (135)  1,708   (956)
    Provision for (benefit from) income taxes 162   (45)  425   (272)
    Net income (loss) 381   (90)  1,283   (684)
    Less: net loss attributable to non-controlling interests (1)  —   (2)  — 
    Net income (loss) attributable to Avis Budget Group, Inc.$382  $(90) $1,285  $(684)
             
    Earnings (loss) per share       
     Basic$6.78  $(1.29) $19.79  $(9.71)
     Diluted$6.63  $(1.29) $19.44  $(9.71)
             
    Weighted average shares outstanding       
     Basic 56.4   69.7   64.9   70.5 
     Diluted 57.7   69.7   66.1   70.5 


    Table 3
    Avis Budget Group, Inc.
    KEY METRICS SUMMARY
     
        Three Months Ended December 31, Year Ended December 31,
         2021   2020  % Change  2021   2020  % Change
                   
    Americas            
                   
      Rental Days (000’s)  27,996   17,314  62%  99,763   72,029  39%
      Revenue per Day, excluding exchange rate effects (A) $74.92  $59.41  26% $75.61  $55.05  37%
      Average Rental Fleet  435,403   310,676  40%  385,610   372,222  4%
      Vehicle Utilization  69.9%  60.6% 9.3pps  70.9%  52.9% 18.0pps
      Per-Unit Fleet Costs per Month, excluding exchange rate effects (A) $170  $216  (21)%  $183  $217  (16)%
                   
    International            
                   
      Rental Days (000’s)  9,251   7,764  19%  34,931   34,397  2%
      Revenue per Day, excluding exchange rate effects (A) $52.07  $41.97  24% $48.38  $41.76  16%
      Average Rental Fleet  157,883   129,861  22%  143,300   160,439  (11)%
      Vehicle Utilization  63.7%  65.0% -1.3 pps  66.8%  58.6% 8.2pps
      Per-Unit Fleet Costs per Month, excluding exchange rate effects (A) $232  $200  16% $195  $208  (6)%
                   
    Total            
                   
      Rental Days (000’s)  37,247   25,078  49%  134,694   106,426  27%
      Revenue per Day, excluding exchange rate effects (A) $69.25  $54.01  28% $68.55  $50.75  35%
      Average Rental Fleet  593,286   440,537  35%  528,910   532,661  (1)%
      Vehicle Utilization  68.2%  61.9% 6.3pps  69.8%  54.6% 15.2pps
      Per-Unit Fleet Costs per Month, excluding exchange rate effects (A) $186  $211  (12)% $187  $214  (13)%
    _______      
    Refer to Table 6 for key metrics calculations and Appendix I for key metrics definitions.
    (A)The following metrics include changes in currency exchange rates:
                   
        Three Months Ended December 31, Year Ended December 31,
         2021   2020  % Change  2021   2020  % Change
                   
    Americas            
                   
      Revenue per Day $75.02  $59.41  26% $75.75  $55.05  38%
      Per-Unit Fleet Costs per Month $170  $216  (21)% $184  $217  (15)%
                   
    International            
                   
      Revenue per Day $50.69  $41.97  21% $50.27  $41.76  20%
      Per-Unit Fleet Costs per Month $225  $200  13% $201  $208  (3)%
                   
    Total            
                   
      Revenue per Day $68.97  $54.01  28% $69.14  $50.75  36%
      Per-Unit Fleet Costs per Month $185  $211  (12)% $189  $214  (12)%


    Table 4 (page 1 of 2)
    Avis Budget Group, Inc.
    CONSOLIDATED CONDENSED SCHEDULES OF CASH FLOWS AND ADJUSTED FREE CASH FLOWS
    (In millions)
     
    CONSOLIDATED CONDENSED SCHEDULE OF CASH FLOWS
     
     Year Ended
    December 31, 2021
    Operating Activities 
    Net cash provided by operating activities$3,491 
      
    Investing Activities 
    Net cash used in investing activities exclusive of vehicle programs$(154)
    Net cash used in investing activities of vehicle programs (6,152)
    Net cash used in investing activities$(6,306)
      
    Financing Activities 
    Net cash used in financing activities exclusive of vehicle programs$(1,699)
    Net cash provided by financing activities of vehicle programs 4,386 
    Net cash provided by financing activities$2,687 
      
    Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash (11)
    Net change in cash and cash equivalents, program and restricted cash (139)
    Cash and cash equivalents, program and restricted cash, beginning of period (A) 765 
    Cash and cash equivalents, program and restricted cash, end of period (B)$626 


     CONSOLIDATED SCHEDULE OF ADJUSTED FREE CASH FLOWS (C)
     
     Year Ended
    December 31, 2021
    Income before income taxes$1,708 
    Add-back of non-vehicle related depreciation and amortization (D) 279 
    Add-back of debt extinguishment costs 136 
    Add-back of restructuring and other related costs 64 
    Add-back of transaction-related costs, net 5 
    Add-back of unprecedented personal-injury and other legal matters, net 3 
    Add-back of COVID-19 charges, net (2)
    Working capital and other 390 
    Capital expenditures (E) (165)
    Tax payments, net of refunds (75)
    Vehicle programs and related (F) (632)
    Adjusted free cash flow$1,711 
      
    Acquisition and related payments, net of acquired cash (G) (24)
    Borrowings, net of debt repayments (253)
    Restructuring and other related payments (46)
    COVID-19 payments, net (39)
    Unprecedented personal-injury and other legal matter payments, net (8)
    Transaction-related payments (5)
    Repurchases of common stock (1,460)
    Change in program cash 21 
    Change in restricted cash 2 
    Foreign exchange effects, financing costs and other (38)
    Net change in cash and cash equivalents, program and restricted cash (per above)$(139)



    Table 4 (page 2 of 2)
    RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW
     
     Year Ended
    December 31, 2021
    Net cash provided by operating activities (per above)$3,491 
    Investing activities of vehicle programs (6,152)
    Financing activities of vehicle programs 4,386 
    Capital expenditures (108)
    Proceeds received on sale of assets and nonmarketable equity securities 3 
    Change in program cash (21)
    Change in restricted cash (2)
    Acquisition and disposition-related payments (22)
    Non-controlling interest contributions (distributions), net 38 
    Restructuring and other related payments 46 
    COVID-19 payments, net 39 
    Unprecedented personal-injury and other legal matter payments, net 8 
    Transaction-related payments 5 
    Adjusted free cash flow (per above)$1,711 


     _______
    (A)Consists of cash and cash equivalents of $692 million, program cash of $72 million and restricted cash of $1 million.
    (B)Consists of cash and cash equivalents of $534 million, program cash of $89 million and restricted cash of $3 million.
    (C)See Appendix I for the definition of Adjusted free cash flow.
    (D)Includes $7 million of cloud computing costs.
    (E)Includes $57 million of cloud computing implementation costs.
    (F)Includes vehicle-backed borrowings (repayments) that are incremental to amounts required to fund incremental (reduced) vehicle and vehicle-related assets.
    (G)Excludes $22 million of vehicles purchased as a part of North America licensee acquisitions, which were financed through incremental vehicle-backed borrowings.
      

    Table 5

    Avis Budget Group, Inc.
    DEFINITIONS AND RECONCILIATIONS OF NON-GAAP MEASURES
    (In millions, except per share data)

    The accompanying press release includes certain non-GAAP (generally accepted accounting principles) financial measures as defined under SEC rules. To the extent not provided in the press release or accompanying tables, we have provided the reasons we present these non-GAAP financial measures and a description of what they represent in Appendix I. For each non-GAAP financial measure a reconciliation to the most comparable GAAP financial measure is calculated and presented below with reconciliations of net income (loss), income (loss) before income taxes and diluted earnings (loss) per share to Adjusted EBITDA and our Adjusted earnings measures.

       Three Months Ended December 31, Year Ended December 31,
    Reconciliation of Net income (loss) to Adjusted EBITDA: 2021   2020   2021   2020 
             
     Net income (loss)$381  $(90) $1,283  $(684)
     Add: Provision for (benefit from) income taxes 162   (45)  425   (272)
     Income (loss) before income taxes 543   (135)  1,708   (956)
     Add certain items:       
     Acquisition-related amortization expense 21   20   66   66 
     Transaction-related costs, net 2   —   5   3 
     Restructuring and other related charges 17   29   64   118 
     Early extinguishment of debt —   —   136   9 
     COVID-19 charges, net (A) (14)  32   (2)  122 
     Non-operational charges related to shareholder activist activity (B) —   —   —   4 
     Unprecedented personal-injury and other legal matters, net (C) 9   8   3   8 
     Adjusted pretax income (loss) 578   (46)  1,980   (626)
     Add:Non-vehicle related depreciation and amortization (excluding acquisition-related amortization expense) (D) 54   52   213   220 
      Interest expense related to corporate debt, net (excluding early extinguishment of debt) 51   68   218   231 
     Adjusted EBITDA$683  $74  $2,411  $(175)
              
    Reconciliation of Net income (loss) attributable to Avis Budget Group, Inc. to Adjusted net income (loss):       
              
     Net income (loss) attributable to Avis Budget Group, Inc.$382  $(90) $1,285  $(684)
     Add certain items, net of tax:       
     Acquisition-related amortization expense 17   14   50   48 
     Transaction-related costs, net 1   —   3   2 
     Restructuring and other related charges 12   21   47   90 
     Early extinguishment of debt —   —   101   7 
     COVID-19 charges, net (10)  23   (2)  90 
     Non-operational charges related to shareholder activist activity —   —   —   3 
     Unprecedented personal-injury and other legal matters, net 6   6   2   6 
     Adjusted net income (loss)$408  $(26) $1,486  $(438)
              
     Earnings (loss) per share - diluted$6.63  $(1.29) $19.44  $(9.71)
     Adjusted diluted earnings (loss) per share$7.08  $(0.36) $22.49  $(6.21)
     Shares used to calculate Adjusted diluted earnings (loss) per share 57.7   69.7   66.1   70.5 


    _______       
    (A)The following table presents the unusual, direct and incremental costs due to the COVID-19 pandemic:
      Three Months Ended December 31, Year Ended December 31,
       2021   2020  2021   2020
     Minimum annual guaranteed rent in excess of concession fees, net$(14) $19 $(2) $60
     Vehicles damaged in overflow parking lots, net of insurance proceeds —   —  (7)  14
     Incremental cleaning supplies to sanitize vehicles and facilities, and over flow parking for idle vehicles —   13  —   48
     Other charges —   —  7   —
     Operating expenses (14)  29  (3)  116
     Vehicle depreciation and lease charges —   —  —   1
     Selling, general and administrative expenses —   3  1   5
     COVID-19 charges, net$(14) $32 $(2) $122
             
    (B)Reported within selling, general and administrative expenses in our Consolidated Statements of Operations.
    (C)Reported within operating expenses in our Consolidated Statements of Operations.
    (D)For the quarter and year ended December 31, 2021 consists of $2 million and $7 million, respectively, within operating expenses in our Consolidated Statements of Operations related to cloud computing costs.


    Table 6
    Avis Budget Group, Inc.
    KEY METRICS CALCULATIONS
    ($ in millions, except as noted)
     
      Three Months Ended December 31, 2021 Three Months Ended December 31, 2020
      Americas International Total Americas International Total
    Revenue per Day (RPD)           
     Revenue$2,100  $469  $2,569  $1,029  $326  $1,355 
     Currency exchange rate effects (3)  13   10   —   —   — 
     Revenue excluding exchange rate effects 2,097   482   2,579   1,029   326   1,355 
     Rental days (000's) 27,996   9,251   37,247   17,314   7,764   25,078 
     RPD excluding exchange rate effects
    (in $'s)    		$74.92  $52.07  $69.25  $59.41  $41.97  $54.01 
                 
    Vehicle Utilization           
     Rental days (000's) 27,996   9,251   37,247   17,314   7,764   25,078 
     Average rental fleet 435,403   157,883   593,286   310,676   129,861   440,537 
     Number of days in period 92   92   92   92   92   92 
     Available rental days (000's) 40,057   14,525   54,582   28,582   11,947   40,529 
     Vehicle utilization 69.9%  63.7%  68.2%  60.6%  65.0%  61.9%
                 
    Per-Unit Fleet Costs           
     Vehicle depreciation and lease charges, net$222  $106  $328  $201  $78  $279 
     Currency exchange rate effects —   3   3   —   —   — 
      $222  $109  $331  $201  $78  $279 
     Average rental fleet 435,403   157,883   593,286   310,676   129,861   440,537 
     Per-unit fleet costs (in $'s)$509  $697  $559  $647  $600  $633 
     Number of months in period 3   3   3   3   3   3 
     Per-unit fleet costs per month excluding exchange rate effects (in $'s)$170  $232  $186  $216  $200  $211 


      Year Ended December 31, 2021 Year Ended December 31, 2020
      Americas International Total Americas International Total
    Revenue per Day (RPD)           
     Revenue$7,557  $1,756  $9,313  $3,965  $1,437  $5,402 
     Currency exchange rate effects (14)  (66)  (80)  —   —   — 
     Revenue excluding exchange rate effects 7,543   1,690   9,233   3,965   1,437   5,402 
     Rental days (000's) 99,763   34,931   134,694   72,029   34,397   106,426 
     RPD excluding exchange rate effects
    (in $'s)    		$75.61  $48.38  $68.55  $55.05  $41.76  $50.75 
                 
    Vehicle Utilization           
     Rental days (000's) 99,763   34,931   134,694   72,029   34,397   106,426 
     Average rental fleet 385,610   143,300   528,910   372,222   160,439   532,661 
     Number of days in period 365   365   365   366   366   366 
     Available rental days (000's) 140,748   52,304   193,052   136,233   58,721   194,954 
     Vehicle utilization 70.9%  66.8%  69.8%  52.9%  58.6%  54.6%
                 
    Per-Unit Fleet Costs           
     Vehicle depreciation and lease charges, net$851  $346  $1,197  $968  $400  $1,368 
     Currency exchange rate effects (3)  (11)  (14)  —   —   — 
      $848  $335  $1,183  $968  $400  $1,368 
     Average rental fleet 385,610   143,300   528,910   372,222   160,439   532,661 
     Per-unit fleet costs (in $'s)$2,201  $2,338  $2,238  $2,599  $2,493  $2,567 
     Number of months in period 12   12   12   12   12   12 
     Per-unit fleet costs per month excluding exchange rate effects (in $'s)$183  $195  $187  $217  $208  $214 


    _______   
    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-year 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 represents 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, charges for unprecedented personal-injury and other legal matters, net, which includes amounts recorded in excess of $5 million related to class action lawsuits, non-operational charges related to shareholder activist activity, which include third party advisory, legal and other professional service fees, gain on sale of equity method investment in China, COVID-19 charges and income taxes. COVID-19 charges include unusual, direct and incremental costs due to the COVID-19 pandemic, such as minimum annual guaranteed rent in excess of concession fees for the period, overflow parking for idle vehicles and related shuttling costs, incremental cleaning supplies to sanitize vehicles and facilities, and losses associated with vehicles damaged in overflow parking lots, net of insurance proceeds. We have revised our definition of Adjusted EBITDA to exclude amounts recorded in excess of $5 million related to class action lawsuits. We did not revise prior years’ Adjusted EBITDA because there were no costs similar in nature to these costs. Adjusted EBITDA includes stock-based compensation expense and deferred financing fee amortization totaling $11 million and $9 million in fourth quarter 2021 and 2020, respectively and totaling $52 million and $31 million in the year ended December 31, 2021 and 2020, respectively.

    We believe that Adjusted EBITDA is useful to investors as a supplemental measure in evaluating the aggregate performance of our operating businesses and in comparing our results from period to period. Adjusted EBITDA is the measure that is used by our management, including our chief operating decision maker, to perform such evaluation. Adjusted EBITDA is also a component in the determination of management's compensation. Adjusted EBITDA should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with GAAP and 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 Earnings Non-GAAP Measures
    The accompanying press release and tables present Adjusted pretax income (loss), Adjusted net income (loss) and Adjusted diluted earnings (loss) per share, which exclude certain items. We believe that these measures referred to above are useful to investors as supplemental measures in evaluating the aggregate performance of the Company. We exclude restructuring and other related charges, transaction-related costs, costs related to early extinguishment of debt and certain other items as such items are not representative of the results of operations of our business less a provision for income taxes derived utilizing applicable statutory tax rates for each item. A reconciliation of our Adjusted earnings Non-GAAP measures from the appropriate measures 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 unprecedented personal-injury and other legal matters, COVID-19 charges and non-operational charges related to shareholder activist activity. We have revised our definition of Adjusted Free Cash Flow to exclude amounts recorded in excess of $5 million related to class action lawsuits and have not revised prior years' Adjusted Free Cash Flow amounts as there were no other charges similar in nature to these. We believe this change is meaningful to investors as it brings the measurement in line with our other non-GAAP measures. 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 to the appropriate measure recognized under GAAP is provided on Table 4.

    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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