Avis Budget Group, Inc. (
NASDAQ: CAR) today
announced financial results for first quarter 2022.
We ended the quarter with revenues 77% above the
first quarter 2021, at $2.4 billion. Our revenues were driven by
rental days as demand improved throughout the quarter and increased
revenue per day.
Net income was $527 million and our Adjusted
EBITDA was $810 million, our best first quarter Adjusted EBITDA in
our history. Utilization for the quarter was 67.4% and in-line with
first quarter 2021, showing our fleet is well positioned to meet
seasonal peak demand.
Our liquidity position at the end of the quarter
was approximately $900 million, with an additional $1.7 billion of
fleet funding capacity. We have well-laddered corporate debt and no
meaningful maturities until 2024.
“Despite the impact of Omicron on the first half
of the quarter, our team was able to quickly pivot to manage the
significantly increasing demand during the back half of the
quarter,” said Joe Ferraro, Avis Budget Group Chief Executive
Officer. “We focused on diligent fleet management and continued
cost optimization to generate a new record first quarter Adjusted
EBITDA. I want to thank all the employees for their continued
tireless efforts in helping us achieve this milestone.”
Q1 and April Highlights
- Total Company
revenues increased by 77% and 27% compared to first quarter 2021
and 2019, respectively.
- Adjusted EBITDA in
the Americas was $810 million for the first quarter 2022 driven by
strong pricing and volume as demand increased throughout the
quarter. Utilization for the quarter was 68.9% and in-line with
first quarter 2019.
- Adjusted EBITDA in
International was $23 million for the first quarter 2022 driven by
pricing and volume along with strong cost optimization, the best
first quarter Adjusted EBITDA in International's history.
- Our Board of
Directors approved a $1.0 billion and $2.0 billion increase to our
existing share repurchase authorization in March and May,
respectively, bringing our available authorization under the stock
repurchase program to $2.3 billion.
Investor Conference Call
We will host a conference call to discuss our
first quarter results on May 3, 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 13728961.
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 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 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 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.
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 March 31, |
|
|
|
2022 |
|
2021 |
|
% Change |
Income
Statement and Other Items |
|
|
|
|
|
|
Revenues |
$ |
2,432 |
|
|
$ |
1,372 |
|
|
77 |
% |
|
Income (loss)
before income taxes |
|
695 |
|
|
|
(250 |
) |
|
378 |
% |
|
Net income
(loss) |
|
527 |
|
|
|
(170 |
) |
|
410 |
% |
|
Earnings (loss)
per share - diluted |
|
9.71 |
|
|
|
(2.43 |
) |
|
500 |
% |
|
|
|
|
|
|
|
|
|
Adjusted
Earnings Measures (non-GAAP) (A) |
|
|
|
|
|
|
Adjusted
EBITDA |
|
810 |
|
|
|
47 |
|
|
n/m |
|
|
Adjusted pretax
income (loss) |
|
713 |
|
|
|
(64 |
) |
|
n/m |
|
|
Adjusted net
income (loss) |
|
544 |
|
|
|
(32 |
) |
|
n/m |
|
|
Adjusted earnings
(loss) per share - diluted |
|
9.99 |
|
|
|
(0.46 |
) |
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
|
Balance
Sheet Items |
|
|
|
|
|
|
Cash and Cash
Equivalents |
$ |
550 |
|
|
$ |
534 |
|
|
|
|
Vehicles, net |
|
13,987 |
|
|
|
12,866 |
|
|
|
|
Debt under vehicle
programs |
|
12,099 |
|
|
|
11,390 |
|
|
|
|
Corporate
debt |
|
4,705 |
|
|
|
4,009 |
|
|
|
|
Stockholders' equity attributable to Avis Budget Group, Inc. |
|
(992 |
) |
|
|
(220 |
) |
|
|
Segment Results |
|
|
|
|
|
|
Three Months Ended March 31, |
|
2022 |
|
2021 |
|
% Change |
Revenues |
|
|
|
|
|
Americas |
$ |
2,000 |
|
|
$ |
1,080 |
|
|
85 |
% |
International |
|
432 |
|
|
|
292 |
|
|
48 |
% |
Corporate and Other |
|
— |
|
|
|
— |
|
|
n/m |
|
Total Company |
$ |
2,432 |
|
|
$ |
1,372 |
|
|
77 |
% |
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
Americas |
$ |
810 |
|
|
$ |
108 |
|
|
650 |
% |
International |
|
23 |
|
|
|
(50 |
) |
|
146 |
% |
Corporate and Other |
|
(23 |
) |
|
|
(11 |
) |
|
n/m |
|
Total Company |
$ |
810 |
|
|
$ |
47 |
|
|
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 March 31, |
|
|
2022 |
|
2021 |
Revenues |
$ |
2,432 |
|
|
$ |
1,372 |
|
|
|
|
|
|
Expenses |
|
|
|
|
Operating |
|
1,147 |
|
|
|
832 |
|
|
Vehicle depreciation and lease charges, net |
|
111 |
|
|
|
254 |
|
|
Selling, general and administrative |
|
283 |
|
|
|
182 |
|
|
Vehicle interest, net |
|
77 |
|
|
|
75 |
|
|
Non-vehicle related depreciation and amortization |
|
58 |
|
|
|
68 |
|
|
Interest expense related to corporate debt, net: |
|
|
|
|
Interest expense |
|
53 |
|
|
|
61 |
|
|
Early extinguishment of debt |
|
— |
|
|
|
129 |
|
|
Restructuring and other related charges |
|
8 |
|
|
|
20 |
|
|
Transaction-related costs, net |
|
— |
|
|
|
1 |
|
Total
expenses |
|
1,737 |
|
|
|
1,622 |
|
|
|
|
|
|
Income
(loss) before income taxes |
|
695 |
|
|
|
(250 |
) |
Provision for (benefit from) income taxes |
|
168 |
|
|
|
(80 |
) |
Net income
(loss) |
|
527 |
|
|
|
(170 |
) |
Less: net loss attributable to non-controlling interests |
|
(2 |
) |
|
|
— |
|
Net income
(loss) attributable to Avis Budget Group, Inc |
$ |
529 |
|
|
$ |
(170 |
) |
|
|
|
|
|
Earnings
(loss) per share |
|
|
|
|
Basic |
$ |
9.96 |
|
|
$ |
(2.43 |
) |
|
Diluted |
$ |
9.71 |
|
|
$ |
(2.43 |
) |
|
|
|
|
|
Weighted
average shares outstanding |
|
|
|
|
Basic |
|
53.1 |
|
|
|
69.9 |
|
|
Diluted |
|
54.5 |
|
|
|
69.9 |
|
|
|
|
|
|
|
|
|
|
Table 3
Avis Budget Group,
Inc.KEY METRICS SUMMARY
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
2022 |
|
2021 |
|
% Change |
|
|
|
|
|
|
|
|
|
Americas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental Days (000’s) |
|
|
27,482 |
|
|
|
18,021 |
|
|
52 |
% |
|
|
Revenue per Day, excluding
exchange rate effects (A) |
|
$ |
72.76 |
|
|
$ |
59.92 |
|
|
21 |
% |
|
|
Average Rental Fleet |
|
|
443,356 |
|
|
|
294,634 |
|
|
50 |
% |
|
|
Vehicle Utilization |
|
|
68.9 |
% |
|
|
68.0 |
% |
|
0.9 |
pps |
|
|
Per-Unit Fleet
Costs per Month, excluding exchange rate effects
(A) |
$ |
20 |
|
|
$ |
208 |
|
|
(90) |
% |
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental Days (000’s) |
|
|
8,581 |
|
|
|
6,825 |
|
|
26 |
% |
|
|
Revenue per Day, excluding
exchange rate effects (A) |
|
$ |
53.76 |
|
|
$ |
42.88 |
|
|
25 |
% |
|
|
Average Rental Fleet |
|
|
150,788 |
|
|
|
117,470 |
|
|
28 |
% |
|
|
Vehicle Utilization |
|
|
63.2 |
% |
|
|
64.6 |
% |
|
(1.4) |
pps |
|
|
Per-Unit Fleet
Costs per Month, excluding exchange rate effects
(A) |
$ |
198 |
|
|
$ |
199 |
|
|
(1) |
% |
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental Days (000’s) |
|
|
36,063 |
|
|
|
24,846 |
|
|
45 |
% |
|
|
Revenue per Day, excluding
exchange rate effects (A) |
|
$ |
68.24 |
|
|
$ |
55.24 |
|
|
24 |
% |
|
|
Average Rental Fleet |
|
|
594,144 |
|
|
|
412,104 |
|
|
44 |
% |
|
|
Vehicle Utilization |
|
|
67.4 |
% |
|
|
67.0 |
% |
|
0.4 |
pps |
|
|
Per-Unit Fleet
Costs per Month, excluding exchange rate effects
(A) |
$ |
65 |
|
|
$ |
205 |
|
|
(68) |
% |
_______ |
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 March 31, |
|
|
|
|
2022 |
|
2021 |
|
% Change |
|
|
|
|
|
|
|
|
|
Americas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per Day |
|
$ |
72.76 |
|
|
$ |
59.92 |
|
|
21 |
% |
|
|
Per-Unit Fleet Costs per Month |
|
$ |
20 |
|
|
$ |
208 |
|
|
(90) |
% |
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per Day |
|
$ |
50.42 |
|
|
$ |
42.88 |
|
|
18 |
% |
|
|
Per-Unit Fleet Costs per Month |
|
$ |
186 |
|
|
$ |
199 |
|
|
(7) |
% |
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per Day |
|
$ |
67.44 |
|
|
$ |
55.24 |
|
|
22 |
% |
|
|
Per-Unit Fleet Costs per Month |
|
$ |
62 |
|
|
$ |
205 |
|
|
(70) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
Three Months Ended March 31, 2022 |
Operating
Activities |
|
Net cash provided by operating activities |
$ |
1,148 |
|
|
|
Investing
Activities |
|
Net cash used in investing activities exclusive of vehicle
programs |
$ |
(14 |
) |
Net cash used in investing activities of vehicle programs |
|
(1,151 |
) |
Net cash used in investing activities |
$ |
(1,165 |
) |
|
|
Financing
Activities |
|
Net cash used in financing activities exclusive of vehicle
programs |
$ |
(581 |
) |
Net cash provided by financing activities of vehicle programs |
|
611 |
|
Net cash provided by financing activities |
$ |
30 |
|
|
|
Effect of changes in exchange
rates on cash and cash equivalents, program and restricted
cash |
$ |
(2 |
) |
Net change in cash and cash
equivalents, program and restricted cash |
|
11 |
|
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) |
$ |
637 |
|
CONSOLIDATED SCHEDULE OF ADJUSTED FREE
CASH FLOWS (C)
|
Three Months Ended March 31, 2022 |
Income before income taxes |
$ |
695 |
|
Add-back of non-vehicle
related depreciation and amortization (D) |
|
60 |
|
Add-back of restructuring and
other related costs |
|
8 |
|
Add-back of COVID-19
charges |
|
(7 |
) |
Add-back of unprecedented
personal-injury and other legal matters, net |
|
1 |
|
Working capital and other |
|
279 |
|
Capital expenditures
(E) |
|
(46 |
) |
Tax payments, net of
refunds |
|
(10 |
) |
Vehicle programs and related
(F) |
|
(379 |
) |
Adjusted free cash
flow |
$ |
601 |
|
|
|
Acquisition and related
payments, net of acquired cash |
$ |
(1 |
) |
Borrowings, net of debt
repayments |
|
724 |
|
Restructuring and other
related payments |
|
(5 |
) |
Transaction-related
payments |
|
(1 |
) |
Repurchases of common
stock |
|
(1,299 |
) |
Change in program cash |
|
(2 |
) |
Change in restricted cash |
|
(1 |
) |
Foreign exchange effects,
financing costs and other |
|
(5 |
) |
Net change in cash and
cash equivalents, program and restricted cash (per
above) |
$ |
11 |
|
|
Table 4 (page 2 of 2)
RECONCILIATION OF NET CASH PROVIDED BY
OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW
|
Three Months Ended March 31, 2022 |
Net cash provided by operating activities (per
above) |
$ |
1,148 |
|
Investing activities of vehicle programs |
|
(1,151 |
) |
Financing activities of vehicle programs |
|
611 |
|
Capital expenditures |
|
(37 |
) |
Proceeds received on sale of assets and nonmarketable equity
securities |
|
1 |
|
Change in program cash |
|
2 |
|
Change in restricted cash |
|
1 |
|
Acquisition and disposition-related payments |
|
20 |
|
Restructuring and other related payments |
|
5 |
|
Transaction-related payments |
|
1 |
|
Adjusted free cash
flow (per above) |
$ |
601 |
|
|
_______ |
(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 $550 million, program cash of $85 million and
restricted cash of $2 million. |
(C) |
See Appendix I for the definition
of Adjusted free cash flow. |
(D) |
Includes $2 million of cloud
computing costs. |
(E) |
Includes $9 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 March 31, |
Reconciliation of Net income (loss) to Adjusted
EBITDA: |
2022 |
|
2021 |
|
|
|
|
|
|
Net income
(loss) |
$ |
527 |
|
|
$ |
(170 |
) |
|
|
Add: Provision for (benefit from) income taxes |
|
168 |
|
|
|
(80 |
) |
|
Income
(loss) before income taxes |
|
695 |
|
|
|
(250 |
) |
|
|
|
|
|
|
|
Add certain
items: |
|
|
|
|
Acquisition-related amortization expense |
|
16 |
|
|
|
18 |
|
|
Restructuring and other related charges |
|
8 |
|
|
|
20 |
|
|
Unprecedented personal-injury and other legal matters, net
(A) |
|
1 |
|
|
|
— |
|
|
Early extinguishment of debt |
|
— |
|
|
|
129 |
|
|
Transaction-related costs, net |
|
— |
|
|
|
1 |
|
|
COVID-19 charges (B) |
|
(7 |
) |
|
|
18 |
|
|
Adjusted
pretax income (loss) |
|
713 |
|
|
|
(64 |
) |
|
|
|
|
|
|
Add: |
Non-vehicle related
depreciation and amortization (excluding acquisition-related
amortization expense) (C) |
|
44 |
|
|
|
50 |
|
|
|
Interest expense related to
corporate debt, net (excluding early extinguishment of debt) |
|
53 |
|
|
|
61 |
|
|
Adjusted
EBITDA |
$ |
810 |
|
|
$ |
47 |
|
|
|
|
|
|
|
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. |
$ |
529 |
|
|
$ |
(170 |
) |
|
Add certain items,
net of tax: |
|
|
|
|
|
Acquisition-related
amortization expense |
|
12 |
|
|
|
13 |
|
|
|
Restructuring and other
related charges |
|
7 |
|
|
|
15 |
|
|
|
Unprecedented personal-injury
and other legal matters, net |
|
1 |
|
|
|
— |
|
|
|
Early extinguishment of
debt |
|
— |
|
|
|
96 |
|
|
|
Transaction-related costs,
net |
|
— |
|
|
|
1 |
|
|
|
COVID-19 charges |
|
(5 |
) |
|
|
13 |
|
|
Adjusted
net income (loss) |
$ |
544 |
|
|
$ |
(32 |
) |
|
|
|
|
|
|
|
Earnings
(loss) per share - Diluted |
$ |
9.71 |
|
|
$ |
(2.43 |
) |
|
|
|
|
|
|
|
Adjusted
diluted earnings (loss) per share |
$ |
9.99 |
|
|
$ |
(0.46 |
) |
|
|
|
|
|
|
|
Shares
used to calculate Adjusted diluted earnings (loss) per
share |
|
54.5 |
|
|
|
69.9 |
|
_______ |
|
|
|
(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 March 31, |
|
|
2022 |
|
2021 |
|
Minimum annual guaranteed rent in excess of concession fees,
net |
$ |
(7 |
) |
|
$ |
19 |
|
|
Vehicles damaged in overflow parking lots, net of insurance
proceeds |
|
— |
|
|
|
(6 |
) |
|
Other charges |
|
— |
|
|
|
5 |
|
|
Operating expenses |
$ |
(7 |
) |
|
$ |
17 |
|
|
Selling, general and
administrative expenses |
$ |
— |
|
|
$ |
1 |
|
|
COVID-19 charges, net |
$ |
(7 |
) |
|
$ |
18 |
|
(C) |
For the three months
ended March 31, 2022 consists of $2 million within operating
expenses in our Consolidated Statements of Operations related to
cloud computing costs. |
|
|
Table 6
Avis Budget Group,
Inc.KEY METRICS CALCULATIONS($ in
millions, except as noted)
|
|
Three Months Ended March 31, 2022 |
|
Three Months Ended March 31, 2021 |
|
|
Americas |
|
International |
|
Total |
|
Americas |
|
International |
|
Total |
Revenue
per Day (RPD) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
2,000 |
|
|
$ |
432 |
|
|
$ |
2,432 |
|
|
$ |
1,080 |
|
|
$ |
292 |
|
|
$ |
1,372 |
|
|
Currency exchange rate
effects |
|
— |
|
|
|
29 |
|
|
|
29 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Revenue excluding exchange rate effects |
$ |
2,000 |
|
|
$ |
461 |
|
|
$ |
2,461 |
|
|
$ |
1,080 |
|
|
$ |
292 |
|
|
$ |
1,372 |
|
|
Rental days (000's) |
|
27,482 |
|
|
|
8,581 |
|
|
|
36,063 |
|
|
|
18,021 |
|
|
|
6,825 |
|
|
|
24,846 |
|
|
RPD excluding exchange rate
effects (in $'s) |
$ |
72.76 |
|
|
$ |
53.76 |
|
|
$ |
68.24 |
|
|
$ |
59.92 |
|
|
$ |
42.88 |
|
|
$ |
55.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle
Utilization |
|
|
|
|
|
|
|
|
|
|
|
|
Rental days (000's) |
|
27,482 |
|
|
|
8,581 |
|
|
|
36,063 |
|
|
|
18,021 |
|
|
|
6,825 |
|
|
|
24,846 |
|
|
Average rental fleet |
|
443,356 |
|
|
|
150,788 |
|
|
|
594,144 |
|
|
|
294,634 |
|
|
|
117,470 |
|
|
|
412,104 |
|
|
Number of days in period |
|
90 |
|
|
|
90 |
|
|
|
90 |
|
|
|
90 |
|
|
|
90 |
|
|
|
90 |
|
|
Available rental days
(000's) |
|
39,902 |
|
|
|
13,571 |
|
|
|
53,473 |
|
|
|
26,517 |
|
|
|
10,572 |
|
|
|
37,089 |
|
|
Vehicle utilization |
|
68.9 |
% |
|
|
63.2 |
% |
|
|
67.4 |
% |
|
|
68.0 |
% |
|
|
64.6 |
% |
|
|
67.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Per-Unit
Fleet Costs |
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle depreciation and lease
charges, net |
$ |
26 |
|
|
$ |
85 |
|
|
$ |
111 |
|
|
$ |
184 |
|
|
$ |
70 |
|
|
$ |
254 |
|
|
Currency exchange rate
effects |
|
— |
|
|
|
5 |
|
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
$ |
26 |
|
|
$ |
90 |
|
|
$ |
116 |
|
|
$ |
184 |
|
|
$ |
70 |
|
|
$ |
254 |
|
|
Average rental fleet |
|
443,356 |
|
|
|
150,788 |
|
|
|
594,144 |
|
|
|
294,634 |
|
|
|
117,470 |
|
|
|
412,104 |
|
|
Per-unit fleet costs (in
$'s) |
$ |
59 |
|
|
$ |
595 |
|
|
$ |
195 |
|
|
$ |
623 |
|
|
$ |
597 |
|
|
$ |
615 |
|
|
Number of months in
period |
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
Per-unit fleet costs per month
excluding exchange rate effects (in $'s) |
$ |
20 |
|
|
$ |
198 |
|
|
$ |
65 |
|
|
$ |
208 |
|
|
$ |
199 |
|
|
$ |
205 |
|
_______ |
|
|
|
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 $12 million and $9
million in first quarter 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
MeasuresThe 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
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 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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