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Avis Budget Group Reports Record Second Quarter Results

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Avis Budget Group, Inc.
Avis Budget Group, Inc.

PARSIPPANY, N.J., Aug. 01, 2022 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) today announced financial results for second quarter 2022.

We ended the quarter with revenues 37% above second quarter 2021, at $3.2 billion, making it our best quarter revenue in Company history. Our revenues were driven by continued strong demand and increased revenue per day.

Net income was $774 million and our Adjusted EBITDA was $1.2 billion, our best quarterly net income and Adjusted EBITDA in our history.

Our liquidity position at the end of the quarter was approximately $850 million, with an additional $1.9 billion of fleet funding capacity. We have well-laddered corporate debt and no meaningful maturities until 2024.

“Through enhanced revenue generation, diligent fleet management and stringent cost control, we generated another record quarter for the Company, highlighted by the Americas reporting over one billion of Adjusted EBITDA for the first time in a quarter and International achieving their highest second quarter Adjusted EBITDA ever,” said Joe Ferraro, Avis Budget Group Chief Executive Officer. “Our team continues to excel at managing the increased demand of our customers while supplying the outstanding service they have come to expect. I want to thank all the employees for their continued tireless efforts in helping us achieve this milestone.”

Q2 Highlights

  • Total Company revenues increased by 37% and 39% compared to second quarter 2021 and 2019, respectively.

  • Adjusted EBITDA in the Americas was $1.0 billion for the second quarter 2022 driven by the highest quarter demand in history and strong pricing. It is the best Adjusted EBITDA in Americas' history.

  • Adjusted EBITDA in International was $183 million for the second quarter 2022 driven by increased pricing and volume, the best second quarter Adjusted EBITDA in International's history.

Investor Conference Call

We will host a conference call to discuss our second quarter results on August 2, 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 13730889.

About Avis Budget Group

Avis Budget Group, Inc. is a leading global provider of mobility solutions, both through our Avis and Budget brands, which have more than 10,000 rental locations in approximately 180 countries around the world, and through our Zipcar brand, which is the world's leading car sharing network. Avis Budget Group operates most of our 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, impacts from the COVID-19 outbreak, future travel levels, cost-saving actions, the global semiconductor shortage and liquidity 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 volatility 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 our performance or achievements, such as the potential effects on the world economy and markets, elections and government shutdowns, as a result of Russia’s recent invasion of Ukraine. 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, 2021, Quarterly Report on Form 10-Q for the three months ended March 31, 2022 and in other filings and furnishings made by us with the Securities and Exchange Commission (the "SEC") from time to time. We undertake 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 our comparable period-over-period results. 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 our 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.

Contacts

Investor Relations Contact:

David Calabria

IR@avisbudget.com

 

Media Relations Contact:

James Tomlinson

ABGPress@edelman.com

 

Tables Follow


Table 1

Avis Budget Group, Inc.

SUMMARY DATA SHEET

(In millions, except per share data)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

Income Statement and Other Items

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

3,244

 

 

$

2,371

 

 

37

%

 

$

5,676

 

$

3,743

 

52

%

 

Income before income taxes

 

1,083

 

 

 

486

 

 

123

%

 

 

1,778

 

 

236

 

653

%

 

Net income

 

774

 

 

 

398

 

 

94

%

 

 

1,301

 

 

228

 

471

%

 

Earnings per share - diluted

 

15.71

 

 

 

5.63

 

 

179

%

 

 

25.14

 

 

3.23

 

678

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Earnings Measures (non-GAAP)(A)

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

1,205

 

 

 

624

 

 

93

%

 

 

2,015

 

 

671

 

200

%

 

Adjusted pretax income

 

1,098

 

 

 

512

 

 

114

%

 

 

1,811

 

 

448

 

304

%

 

Adjusted net income

 

790

 

 

 

417

 

 

89

%

 

 

1,334

 

 

385

 

246

%

 

Adjusted earnings per share - diluted

 

15.94

 

 

 

5.90

 

 

170

%

 

 

25.65

 

 

5.45

 

371

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

 

 

 

 

 

 

 

 

June 30,
2022

 

December
31, 2021

 

 

 

 

 

 

 

 

Balance Sheet Items

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

$

579

 

 

$

534

 

 

 

 

 

 

 

 

 

 

Vehicles, net

 

16,315

 

 

 

12,866

 

 

 

 

 

 

 

 

 

 

Debt under vehicle programs

 

14,098

 

 

 

11,390

 

 

 

 

 

 

 

 

 

 

Corporate debt

 

4,651

 

 

 

4,009

 

 

 

 

 

 

 

 

 

 

Stockholders' equity attributable to Avis Budget Group, Inc.

 

(654

)

 

 

(220

)

 

 

 

 

 

 

 

 


Segment Results

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

Revenues

 

 

 

 

 

 

 

 

 

 

 

Americas

$

2,567

 

 

$

1,974

 

 

30

%

 

$

4,567

 

 

$

3,054

 

 

50

%

International

 

677

 

 

 

397

 

 

71

%

 

 

1,109

 

 

 

689

 

 

61

%

Corporate and Other

 

 

 

 

 

 

n/m

 

 

 

 

 

 

 

n/m

Total Company

$

3,244

 

 

$

2,371

 

 

37

%

 

$

5,676

 

 

$

3,743

 

 

52

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

Americas

$

1,041

 

 

$

634

 

 

64

%

 

$

1,851

 

 

$

742

 

 

149

%

International

 

183

 

 

 

8

 

 

n/m

 

 

206

 

 

 

(42

)

 

590

%

Corporate and Other

 

(19

)

 

 

(18

)

 

n/m

 

 

(42

)

 

 

(29

)

 

n/m

Total Company

$

1,205

 

 

$

624

 

 

93

%

 

$

2,015

 

 

$

671

 

 

200

%

 

 

 

 

 

 

 

 

 

 

 

 


_______

n/m

Not 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
June 30,

 

Six Months Ended
June 30,

 

 

2022

 

2021

 

2022

 

2021

Revenues

$

3,244

 

 

$

2,371

 

$

5,676

 

 

$

3,743

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Operating

 

1,349

 

 

 

1,032

 

 

2,496

 

 

 

1,864

 

Vehicle depreciation and lease charges, net

 

234

 

 

 

338

 

 

345

 

 

 

592

 

Selling, general and administrative

 

359

 

 

 

294

 

 

642

 

 

 

476

 

Vehicle interest, net

 

97

 

 

 

77

 

 

174

 

 

 

152

 

Non-vehicle related depreciation and amortization

 

51

 

 

 

62

 

 

109

 

 

 

130

 

Interest expense related to corporate debt, net:

 

 

 

 

 

 

 

 

Interest expense

 

64

 

 

 

59

 

 

117

 

 

 

120

 

Early extinguishment of debt

 

 

 

 

 

 

 

 

 

129

 

Restructuring and other related charges

 

6

 

 

 

22

 

 

14

 

 

 

42

 

Transaction-related costs, net

 

1

 

 

 

1

 

 

1

 

 

 

2

Total expenses

 

2,161

 

 

 

1,885

 

 

3,898

 

 

 

3,507

 

 

 

 

 

 

 

 

 

Income before income taxes

 

1,083

 

 

 

486

 

 

1,778

 

 

 

236

Provision for income taxes

 

309

 

 

 

88

 

 

477

 

 

 

8

Net income

 

774

 

 

 

398

 

 

1,301

 

 

 

228

 

Less: net loss attributable to non-controlling interests

 

(4

)

 

 

 

 

(6

)

 

 

Net income attributable to Avis Budget Group, Inc

$

778

 

 

$

398

 

$

1,307

 

 

$

228

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

Basic

$

16.05

 

 

$

5.69

 

$

25.74

 

 

$

3.26

 

Diluted

$

15.71

 

 

$

5.63

 

$

25.14

 

 

$

3.23

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

48.5

 

 

 

69.9

 

 

50.8

 

 

 

69.9

 

Diluted

 

49.5

 

 

 

70.6

 

 

52.0

 

 

 

70.6


Table 3

Avis Budget Group, Inc.

KEY METRICS SUMMARY

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental Days (000’s)

 

 

31,788

 

 

 

24,910

 

 

28

%

 

 

59,270

 

 

 

42,931

 

 

38

%

 

Revenue per Day, excluding exchange rate effects(A)

 

$

80.91

 

 

$

79.26

 

 

2

%

 

$

77.13

 

 

$

71.14

 

 

8

%

 

Average Rental Fleet

 

 

500,653

 

 

 

377,987

 

 

32

%

 

 

472,004

 

 

 

336,310

 

 

40

%

 

Vehicle Utilization

 

 

69.8%

 

 

 

72.4%

 

 

(2.6) pps

 

 

69.4%

 

 

 

70.5%

 

 

(1.1) pps

 

Per-Unit Fleet Costs per Month, excluding exchange rate effects(A)

$

86

 

 

$

229

 

 

(62)

%

 

$

55

 

 

$

219

 

 

(75)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental Days (000’s)

 

 

10,798

 

 

 

8,135

 

 

33

%

 

 

19,379

 

 

 

14,960

 

 

30

%

 

Revenue per Day, excluding exchange rate effects(A)

 

$

70.17

 

 

$

48.72

 

 

44

%

 

$

62.91

 

 

$

46.06

 

 

37

%

 

Average Rental Fleet

 

 

168,108

 

 

 

131,416

 

 

28

%

 

 

159,448

 

 

 

124,443

 

 

28

%

 

Vehicle Utilization

 

 

70.6%

 

 

 

68.0%

 

 

2.6 pps

 

 

67.1%

 

 

 

66.4%

 

 

0.7 pps

 

Per-Unit Fleet Costs per Month, excluding exchange rate effects(A)

$

238

 

 

$

200

 

 

19

%

 

$

219

 

 

$

199

 

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental Days (000’s)

 

 

42,586

 

 

 

33,045

 

 

29

%

 

 

78,649

 

 

 

57,891

 

 

36

%

 

Revenue per Day, excluding exchange rate effects(A)

 

$

78.19

 

 

$

71.74

 

 

9

%

 

$

73.63

 

 

$

64.66

 

 

14

%

 

Average Rental Fleet

 

 

668,761

 

 

 

509,403

 

 

31

%

 

 

631,452

 

 

 

460,753

 

 

37

%

 

Vehicle Utilization

 

 

70.0%

 

 

 

71.3%

 

 

(1.3) pps

 

 

68.8%

 

 

 

69.4%

 

 

(0.6) pps

 

Per-Unit Fleet Costs per Month, excluding exchange rate effects(A)

$

124

 

 

$

221

 

 

(44)

%

 

$

96

 

 

$

214

 

 

(55)

%

_______

 

 

 

 

 

 

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 June 30,

 

Six Months Ended June 30,

 

 

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue per Day

 

$

80.76

 

 

$

79.26

 

 

2

%

 

$

77.05

 

 

$

71.14

 

 

8

%

 

Per-Unit Fleet Costs per Month

 

$

85

 

 

$

229

 

 

(63)

%

 

$

55

 

 

$

219

 

 

(75)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue per Day

 

$

62.69

 

 

$

48.72

 

 

29

%

 

$

57.26

 

 

$

46.06

 

 

24

%

 

Per-Unit Fleet Costs per Month

 

$

212

 

 

$

200

 

 

6

%

 

$

200

 

 

$

199

 

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue per Day

 

$

76.18

 

 

$

71.74

 

 

6

%

 

$

72.17

 

 

$

64.66

 

 

12

%

 

Per-Unit Fleet Costs per Month

 

$

117

 

 

$

221

 

 

(47)

%

 

$

91

 

 

$

214

 

 

(57)

%


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

 

 

Six Months Ended
June 30, 2022

Operating Activities

 

Net cash provided by operating activities

$

2,371

 

 

 

Investing Activities

 

Net cash used in investing activities exclusive of vehicle programs

$

(52

)

Net cash used in investing activities of vehicle programs

 

(3,818

)

Net cash used in investing activities

$

(3,870

)

 

 

Financing Activities

 

Net cash used in financing activities exclusive of vehicle programs

$

(1,036

)

Net cash provided by financing activities of vehicle programs

 

2,618

 

Net cash provided by financing activities

$

1,582

 

 

 

Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash

$

(25

)

Net change in cash and cash equivalents, program and restricted cash

 

58

 

Cash and cash equivalents, program and restricted cash, beginning of period(A)

 

626

 

Cash and cash equivalents, program and restricted cash, end of period(B)

$

684

 


CONSOLIDATED SCHEDULE OF ADJUSTED FREE CASH FLOWS (C)

 

 

Six Months Ended
June 30, 2022

Income before income taxes

$

1,778

 

Add-back of non-vehicle related depreciation and amortization(D)

 

113

 

Add-back of restructuring and other related costs

 

14

 

Add-back of transaction-related costs, net

 

1

 

Add-back of COVID-19 charges, net

 

(9

)

Add-back of unprecedented personal-injury and other legal matters, net

 

1

 

Working capital and other

 

315

 

Capital expenditures(E)

 

(102

)

Tax payments, net of refunds

 

(104

)

Vehicle programs and related(F)

 

(896

)

Adjusted free cash flow

$

1,111

 

 

 

Acquisition and related payments, net of acquired cash

$

(1

)

Borrowings, net of debt repayments

 

718

 

Restructuring and other related payments

 

(11

)

Transaction-related payments

 

(1

)

Repurchases of common stock

 

(1,748

)

Change in program cash

 

19

 

Change in restricted cash

 

(1

)

Foreign exchange effects, financing costs and other

 

(28

)

Net change in cash and cash equivalents, program and restricted cash (per above)

$

58

 


Table 4 (page 2 of 2)

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW

 

 

Six Months Ended
June 30, 2022

Net cash provided by operating activities (per above)

$

2,371

 

Investing activities of vehicle programs

 

(3,818

)

Financing activities of vehicle programs

 

2,618

 

Capital expenditures

 

(76

)

Proceeds received on sale of assets and nonmarketable equity securities

 

2

 

Change in program cash

 

(19

)

Change in restricted cash

 

1

 

Acquisition and disposition-related payments

 

20

 

Restructuring and other related payments

 

11

 

Transaction-related payments

 

1

 

Adjusted free cash flow (per above)

$

1,111

 


 

_______

(A)

Consists of cash and cash equivalents of $534 million, program cash of $89 million and restricted cash of $3 million.

(B)

Consists of cash and cash equivalents of $579 million, program cash of $103 million and restricted cash of $2 million.

(C)

See Appendix I for the definition of Adjusted free cash flow.

(D)

Includes $4 million of cloud computing costs.

(E)

Includes $26 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. Also includes $17 million of vehicles sold in the divestiture of our operations in the United States Virgin Islands and the Netherlands.


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 June 30,

 

Six Months Ended June 30,

Reconciliation of Net income to Adjusted EBITDA:

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

Net income

$

774

 

 

$

398

 

 

$

1,301

 

 

$

228

 

 

 

Add: Provision for income taxes

 

309

 

 

 

88

 

 

 

477

 

 

 

8

 

 

Income before income taxes

 

1,083

 

 

 

486

 

 

 

1,778

 

 

 

236

 

 

Add certain items:

 

 

 

 

 

 

 

 

 

Acquisition-related amortization expense

 

10

 

 

 

14

 

 

 

26

 

 

 

32

 

 

 

Restructuring and other related charges

 

6

 

 

 

22

 

 

 

14

 

 

 

42

 

 

 

Unprecedented personal-injury and other legal matters, net(A)

 

 

 

 

(11

)

 

 

1

 

 

 

(11

)

 

 

Transaction-related costs, net

 

1

 

 

 

1

 

 

 

1

 

 

 

2

 

 

 

Early extinguishment of debt

 

 

 

 

 

 

 

 

 

 

129

 

 

 

COVID-19 charges, net(B)

 

(2

)

 

 

 

 

 

(9

)

 

 

18

 

 

Adjusted pretax income

 

1,098

 

 

 

512

 

 

 

1,811

 

 

 

448

 

 

Add:

Non-vehicle related depreciation and amortization (excluding acquisition-related amortization expense)(C)

 

43

 

 

 

53

 

 

 

87

 

 

 

103

 

 

 

Interest expense related to corporate debt, net (excluding early extinguishment of debt)

 

64

 

 

 

59

 

 

 

117

 

 

 

120

 

 

Adjusted EBITDA

$

1,205

 

 

$

624

 

 

$

2,015

 

 

$

671

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net income attributable to Avis Budget Group, Inc. to adjusted net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Avis Budget Group, Inc.

$

778

 

 

$

398

 

 

$

1,307

 

 

$

228

 

 

Add certain items, net of tax:

 

 

 

 

 

 

 

 

 

Acquisition-related amortization expense

 

7

 

 

 

11

 

 

 

19

 

 

 

24

 

 

 

Restructuring and other related charges

 

5

 

 

 

16

 

 

 

12

 

 

 

31

 

 

 

Unprecedented personal-injury and other legal matters, net

 

 

 

 

(8

)

 

 

1

 

 

 

(8

)

 

 

Transaction-related costs, net

 

1

 

 

 

 

 

 

1

 

 

 

1

 

 

 

Early extinguishment of debt

 

 

 

 

 

 

 

 

 

 

96

 

 

 

COVID-19 charges, net

 

(1

)

 

 

 

 

 

(6

)

 

 

13

 

 

Adjusted net income

$

790

 

 

$

417

 

 

$

1,334

 

 

$

385

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - Diluted

$

15.71

 

 

$

5.63

 

 

$

25.14

 

 

$

3.23

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted diluted earnings per share

$

15.94

 

 

$

5.90

 

 

$

25.65

 

 

$

5.45

 

 

 

 

 

 

 

 

 

 

 

 

Shares used to calculate Adjusted diluted earnings per share

 

49.5

 

 

 

70.6

 

 

 

52.0

 

 

 

70.6

 


_______

 

 

 

 

 

 

 

(A)

Reported within operating expenses in our Consolidated Statements of Operations.

(B)

The following table presents the unusual, direct and incremental costs due to the COVID-19 pandemic.

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

2021

 

2022

 

2021

 

Minimum annual guaranteed rent in excess of concession fees, net

$

(2

)

 

$

(3

)

 

$

(9

)

 

$

16

 

 

Vehicles damaged in overflow parking lots, net of insurance proceeds

 

 

 

 

2

 

 

 

 

 

 

(4

)

 

Other charges

 

 

 

 

1

 

 

 

 

 

 

6

 

 

Operating expenses

$

(2

)

 

$

 

 

$

(9

)

 

$

17

 

 

Selling, general and administrative expenses

$

 

 

$

 

 

$

 

 

$

1

 

 

COVID-19 charges, net

$

(2

)

 

$

 

 

$

(9

)

 

$

18

 

(C)

For the three and six months ended June 30, 2022 consists of $2 million and $4 million, respectively, within operating expenses in our Consolidated Statements of Operations related to cloud computing costs. For the three and six months ended June 30, 2021 consists of $3 million within operating expenses and $2 million within selling, general and administrative 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 June 30, 2022

 

Three Months Ended June 30, 2021

 

Americas

 

International

 

Total

 

Americas

 

International

 

Total

Revenue per Day (RPD)

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

2,567

 

 

$

677

 

 

$

3,244

 

 

$

1,974

 

 

$

397

 

 

$

2,371

 

 

Currency exchange rate effects

 

5

 

 

 

81

 

 

 

86

 

 

 

 

 

 

 

 

 

 

 

Revenue excluding exchange rate effects

$

2,572

 

 

$

758

 

 

$

3,330

 

 

$

1,974

 

 

$

397

 

 

$

2,371

 

 

Rental days (000's)

 

31,788

 

 

 

10,798

 

 

 

42,586

 

 

 

24,910

 

 

 

8,135

 

 

 

33,045

 

 

RPD excluding exchange rate effects
(in $'s)

$

80.91

 

 

$

70.17

 

 

$

78.19

 

 

$

79.26

 

 

$

48.72

 

 

$

71.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle Utilization

 

 

 

 

 

 

 

 

 

 

 

 

Rental days (000's)

 

31,788

 

 

 

10,798

 

 

 

42,586

 

 

 

24,910

 

 

 

8,135

 

 

 

33,045

 

 

Average rental fleet

 

500,653

 

 

 

168,108

 

 

 

668,761

 

 

 

377,987

 

 

 

131,416

 

 

 

509,403

 

 

Number of days in period

 

91

 

 

 

91

 

 

 

91

 

 

 

91

 

 

 

91

 

 

 

91

 

 

Available rental days (000's)

 

45,559

 

 

 

15,298

 

 

 

60,857

 

 

 

34,397

 

 

 

11,959

 

 

 

46,356

 

 

Vehicle utilization

 

69.8

%

 

 

70.6

%

 

 

70.0

%

 

 

72.4

%

 

 

68.0

%

 

 

71.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Per-Unit Fleet Costs

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle depreciation and lease charges, net

$

128

 

 

$

106

 

 

$

234

 

 

$

259

 

 

$

79

 

 

$

338

 

 

Currency exchange rate effects

 

1

 

 

 

14

 

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

$

129

 

 

$

120

 

 

$

249

 

 

$

259

 

 

$

79

 

 

$

338

 

 

Average rental fleet

 

500,653

 

 

 

168,108

 

 

 

668,761

 

 

 

377,987

 

 

 

131,416

 

 

 

509,403

 

 

Per-unit fleet costs (in $'s)

$

257

 

 

$

713

 

 

$

372

 

 

$

686

 

 

$

599

 

 

$

664

 

 

Number of months in period

 

3

 

 

 

3

 

 

 

3

 

 

 

3

 

 

 

3

 

 

 

3

 

 

Per-unit fleet costs per month excluding exchange rate effects (in $'s)

$

86

 

 

$

238

 

 

$

124

 

 

$

229

 

 

$

200

 

 

$

221

 


 

 

Six Months Ended June 30, 2022

 

Six Months Ended June 30, 2021

 

 

Americas

 

International

 

Total

 

Americas

 

International

 

Total

Revenue per Day (RPD)

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

4,567

 

 

$

1,109

 

 

$

5,676

 

 

$

3,054

 

 

$

689

 

 

$

3,743

 

 

Currency exchange rate effects

 

5

 

 

 

110

 

 

 

115

 

 

 

 

 

 

 

 

 

 

 

Revenue excluding exchange rate effects

$

4,572

 

 

$

1,219

 

 

$

5,791

 

 

$

3,054

 

 

$

689

 

 

$

3,743

 

 

Rental days (000's)

 

59,270

 

 

 

19,379

 

 

 

78,649

 

 

 

42,931

 

 

 

14,960

 

 

 

57,891

 

 

RPD excluding exchange rate effects
(in $'s)

$

77.13

 

 

$

62.91

 

 

$

73.63

 

 

$

71.14

 

 

$

46.06

 

 

$

64.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle Utilization

 

 

 

 

 

 

 

 

 

 

 

 

Rental days (000's)

 

59,270

 

 

 

19,379

 

 

 

78,649

 

 

 

42,931

 

 

 

14,960

 

 

 

57,891

 

 

Average rental fleet

 

472,004

 

 

 

159,448

 

 

 

631,452

 

 

 

336,310

 

 

 

124,443

 

 

 

460,753

 

 

Number of days in period

 

181

 

 

 

181

 

 

 

181

 

 

 

181

 

 

 

181

 

 

 

181

 

 

Available rental days (000's)

 

85,433

 

 

 

28,860

 

 

 

114,293

 

 

 

60,872

 

 

 

22,524

 

 

 

83,396

 

 

Vehicle utilization

 

69.4

%

 

 

67.1

%

 

 

68.8

%

 

 

70.5

%

 

 

66.4

%

 

 

69.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Per-Unit Fleet Costs

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle depreciation and lease charges, net

$

154

 

 

$

191

 

 

$

345

 

 

$

443

 

 

$

149

 

 

$

592

 

 

Currency exchange rate effects

 

1

 

 

 

19

 

 

 

20

 

 

 

 

 

 

 

 

 

 

 

 

$

155

 

 

$

210

 

 

$

365

 

 

$

443

 

 

$

149

 

 

$

592

 

 

Average rental fleet

 

472,004

 

 

 

159,448

 

 

 

631,452

 

 

 

336,310

 

 

 

124,443

 

 

 

460,753

 

 

Per-unit fleet costs (in $'s)

$

329

 

 

$

1,314

 

 

$

578

 

 

$

1,317

 

 

$

1,196

 

 

$

1,284

 

 

Number of months in period

 

6

 

 

 

6

 

 

 

6

 

 

 

6

 

 

 

6

 

 

 

6

 

 

Per-unit fleet costs per month excluding exchange rate effects (in $'s)

$

55

 

 

$

219

 

 

$

96

 

 

$

219

 

 

$

199

 

 

$

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, 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. Adjusted EBITDA includes stock-based compensation expense and deferred financing fee amortization totaling $11 million and $16 million in second quarter 2022 and 2021, respectively, and totaling $23 million and $25 million in the six months ended June 30, 2022 and 2021, 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 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 our aggregate performance. 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 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.