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/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 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 |
% |
|
9.3 |
pps |
|
|
70.9 |
% |
|
|
52.9 |
% |
|
18.0 |
pps |
|
|
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 |
% |
|
8.2 |
pps |
|
|
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 |
% |
|
6.3 |
pps |
|
|
69.8 |
% |
|
|
54.6 |
% |
|
15.2 |
pps |
|
|
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 EBITDAThe 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
MeasuresThe 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
FlowRepresents 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
MarginRepresents Adjusted EBITDA as a percentage of
revenues.
Available Rental DaysDefined as
Average Rental Fleet times the numbers of days in a given
period.
Average Rental FleetRepresents
the average number of vehicles in our fleet during a given period
of time.
Currency Exchange Rate
EffectsRepresents 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 DebtRepresents
corporate debt minus cash and cash equivalents.
Net Corporate
LeverageRepresents Net Corporate Debt divided by Adjusted
EBITDA for the twelve months prior to the date of calculation.
Per-Unit Fleet CostsRepresents
vehicle depreciation, lease charges and gain or loss on vehicles
sales, divided by Average Rental Fleet.
Rental DaysRepresents the total
number of days (or portion thereof) a vehicle was rented during a
24-hour period.
Revenue per DayRepresents
revenues divided by Rental Days.
Vehicle UtilizationRepresents
Rental Days divided by Available Rental Days.
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