Avis Budget Group Reports Third Quarter Results

PARSIPPANY, N.J., Oct. 31, 2024 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) announced financial results for third quarter 2024 today. We ended the quarter with revenues of nearly $3.5 billion, net income of $238 million, and Adjusted EBITDA1 of $503 million. “We maintained a strong focus on pricing throughout the quarter, prioritizing higher margin business which allowed us to keep our revenue per day stable with the Americas nearly flat,” said Joe Ferraro, Avis Budget Group Chief Executive Officer. “Vehicle utilization improved by approximately 2 points throughout the Company as we exercised strong fleet discipline. Our U.S. model year 2025 buy is well underway and expected to drive significant savings as these vehicles are rotated into our fleet. Lastly, the holidays look strong, and we believe we are well positioned to capitalize on this demand.” Q3 HIGHLIGHTS Revenues of nearly $3.5 billion with pricing down 2% and rental days in line with third quarter 2023.Adjusted EBITDA in the Americas was $384 million, driven by an improvement of vehicle utilization of more than one point and strong summer pricing, offset by higher fleet costs as compared to third quarter 2023.Adjusted EBITDA in International was $139 million, driven by a 5% increase in rental days as well as vehicle utilization improvement of more than three points as compared to third quarter 2023.Issued $700 million of unsecured Senior Notes and used the proceeds to repay outstanding borrowings under our secured floating rate term loan due 2029 in October with the additional proceeds invested in our fleet.We repurchased approximately 526,000 shares of common stock for a total of nearly $43 million through October 30th. Our liquidity position, including committed and uncommitted facilities, at the end of the quarter was over $1.2 billion, with an additional $3.2 billion of fleet funding capacity after giving effect to a reduction in our asset-backed variable-funding financing facilities effective November 1. We have well-laddered corporate debt and have no meaningful maturities until 2027. ______________________1Adjusted EBITDA and certain other measures in this release are non-GAAP financial measures. See "Non-GAAP Financial Measures and Key Metrics" and the tables that accompany this release for the definitions and reconciliations of these non-GAAP measures to the most comparable GAAP measures. INVESTOR CONFERENCE CALL We will host a conference call to discuss our third quarter results on November 1, 2024, at 8:30 a.m.(ET). Investors may access the call on our investor relations website at ir.avisbudgetgroup.com or by dialing (877) 407-2991. A replay of the call will be available on our website and at (877) 660-6853 using conference code 13743687. ABOUT AVIS BUDGET GROUP We are a leading global provider of mobility solutions, both through our Avis and Budget brands, which have approximately 10,250 rental locations in approximately 180 countries around the world, and through our Zipcar brand, which is the world's leading car sharing network. We operate most of our car rental locations in North America, Europe and Australasia directly, and operate primarily through licensees in other parts of the world. We are headquartered in Parsippany, N.J. More information is available at avisbudgetgroup.com. NON-GAAP FINANCIAL MEASURES AND KEY METRICS This release includes financial measures such as Adjusted EBITDA and Adjusted Free Cash Flow, as well as other financial measures, that are not considered generally accepted accounting principle (“GAAP”) measures as defined under SEC rules. Important information regarding such non-GAAP measures is contained in the tables within this release and in Appendix I, including the definitions of these measures and reconciliations to the most comparable GAAP measures. We measure performance principally using the following key metrics: (i) rental days, (ii) revenue per day, (iii) vehicle utilization, and (iv) per-unit fleet costs. Our rental days, revenue per day and vehicle utilization metrics are all calculated based on the actual rental of the vehicle during a 24-hour period. We believe that this methodology provides management with the most relevant metrics in order to effectively manage the performance of our business. Our calculations may not be comparable to the calculations of similarly-titled metrics by other companies. We present currency exchange rate effects on our key metrics to provide a method of assessing how our business performed excluding the effects of foreign currency rate fluctuations. Currency exchange rate effects are calculated by translating the current-period's results at the prior-period average exchange rates plus any related gains and losses on currency hedges. FORWARD-LOOKING STATEMENTS Certain statements in this press release constitute “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained herein are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by any such forward-looking statements. Forward-looking statements include information concerning our future financial performance, business strategy, projected plans and objectives. These statements may be identified by the fact that they do not relate to historical or current facts and may use words such as “believes,” “expects,” “anticipates,” “will,” “should,” “could,” “may,” “would,” “intends,” “projects,” “estimates,” “plans,” “forecasts,” “guidance,” and similar words, expressions or phrases. The following important factors and assumptions could affect our future results and could cause actual results to differ materially from those expressed in such forward-looking statements. These factors include, but are not limited to: the high level of competition in the mobility industry, including from new companies or technology, and the impact such competition may have on pricing and rental volume; a change in our fleet costs, including as a result of a change in the cost of new vehicles, resulting from inflation or otherwise, manufacturer recalls, disruption in the supply of new vehicles, including due to labor actions or otherwise, shortages in semiconductors used in new vehicle production, and/or a change in the price at which we dispose of used vehicles either in the used vehicle market or under repurchase or guaranteed depreciation programs; the results of operations or financial condition of the manufacturers of our vehicles, which could impact their ability to perform their payment obligations under our agreements with them, including repurchase and/or guaranteed depreciation arrangements, and/or their willingness or ability to make vehicles available to us or the mobility industry as a whole on commercially reasonable terms or at all; levels of and volatility in travel demand, including future volatility in airline passenger traffic; a deterioration in economic conditions, resulting in a recession or otherwise, particularly during our peak season or in key market segments; an occurrence or threat of terrorism, pandemics, severe weather events or natural disasters, military conflicts, including the ongoing military conflicts in the Middle East and Eastern Europe, or civil unrest in the locations in which we operate, and the potential effects of sanctions on the world economy and markets and/or international trade; any substantial changes in the cost or supply of fuel, vehicle parts, energy, labor or other resources on which we depend to operate our business, including as a result of pandemics, inflation, the ongoing military conflicts in the Middle East and Eastern Europe, and any embargoes on oil sales imposed on or by the Russian government; our ability to successfully implement or achieve our business plans and strategies, achieve and maintain cost savings and adapt our business to changes in mobility; political, economic or commercial instability in the countries in which we operate, and our ability to conform to multiple and conflicting laws or regulations in those countries; the performance of the used vehicle market from time to time, including our ability to dispose of vehicles in the used vehicle market on attractive terms; our dependence on third-party distribution channels, third-party suppliers of other services and co-marketing arrangements with third parties; risks related to completed or future acquisitions or investments that we may pursue, including the incurrence of incremental indebtedness to help fund such transactions and our ability to promptly and effectively integrate any acquired businesses or capitalize on joint ventures, partnerships and other investments; our ability to utilize derivative instruments, and the impact of derivative instruments we utilize, which can be affected by fluctuations in interest rates, fuel prices and exchange rates, changes in government regulations and other factors; our exposure to uninsured or unpaid claims in excess of historical levels and our ability to obtain insurance at desired levels and the cost of that insurance; risks associated with litigation or governmental or regulatory inquiries, or any failure or inability to comply with laws, regulations or contractual obligations or any changes in laws, regulations or contractual obligations, including with respect to personally identifiable information and consumer privacy, labor and employment, and tax; risks related to protecting the integrity of, and preventing unauthorized access to, our information technology systems or those of our third-party vendors, licensees, dealers, independent operators and independent contractors, and protecting the confidential information of our employees and customers against security breaches, including physical or cybersecurity breaches, attacks, or other disruptions, compliance with privacy and data protection regulation, and the effects of any potential increase in cyberattacks on the world economy and markets and/or international trade; any impact on us from the actions of our third-party vendors, licensees, dealers, independent operators and independent contractors and/or disputes that may arise out of our agreements with such parties; any major disruptions in our communication networks or information systems; risks related to tax obligations and the effect of future changes in tax laws and accounting standards; risks related to our indebtedness, including our substantial outstanding debt obligations, recent and future interest rate increases, which increase our financing costs, downgrades by rating agencies and our ability to incur substantially more debt; our ability to obtain financing for our global operations, including the funding of our vehicle fleet through the issuance of asset-backed securities and use of the global lending markets; our ability to meet the financial and other covenants contained in the agreements governing our indebtedness, or to obtain a waiver or amendment of such covenants should we be unable to meet such covenants; significant changes in the assumptions and estimates that are used in our impairment testing for goodwill or intangible assets, which could result in a significant impairment of our goodwill or intangible assets; and other business, economic, competitive, governmental, regulatory, political or technological factors affecting our operations, pricing or services. We operate in a continuously changing business environment and new risk factors emerge from time to time. New risk factors, factors beyond our control, or changes in the impact of identified risk factors may cause actual results to differ materially from those set forth in any forward-looking statements. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. Moreover, we do not assume responsibility if future results are materially different from those forecasted or anticipated. Other factors and assumptions not identified above, including those discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” set forth in Part II, Item 7, in "Risk Factors," set forth in Part I, Item 1A, and in other portions of our 2023 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 16, 2024 (the “2023 Form 10-K”), as well as in similarly titled sections set forth in Part I, Item 2 and Part II, Item 1A of our subsequently filed quarterly reports, may cause actual results to differ materially from those projected in any forward-looking statements. Although we believe that our assumptions are reasonable, any or all of our forward-looking statements may prove to be inaccurate and we can make no guarantees about our future performance. Should unknown risks or uncertainties materialize or underlying assumptions prove inaccurate, actual results could differ materially from past results and/or those anticipated, estimated or projected. We undertake no obligation to release any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events. For any forward-looking statements contained in any document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. For additional information concerning forward-looking statements and other important factors, refer to our 2023 Form 10-K, Quarterly Reports on Form 10-Q and other filings with the SEC. Investor Relations Contact:Media Relations Contact:David Calabria, IR@avisbudget.comMedia Relations Team, ABGPress@edelman.com *** Tables 1 - 6 and Appendix I attached *** Table 1 Avis Budget Group, Inc.SUMMARY DATA SHEET (Unaudited)(In millions, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 % Change 2024 2023 % ChangeIncome Statement and Other Items Revenues$3,480 $3,564 (2)% $9,079 $9,244 (2)%Income before income taxes 329 757 (57)% 214 1,752 (88)%Net income 238 627 (62)% 140 1,375 (90)% Adjusted EBITDA (a) 503 907 (45)% 729 2,179 (67)% As of September 30, 2024 December 31, 2023 Balance Sheet Items Cash and cash equivalents $602 $555 Program cash and restricted cash 47 89 Vehicles, net 21,352 21,240 Debt under vehicle programs 17,893 18,937 Corporate debt 6,005 4,823 Stockholders' equity attributable to Avis Budget Group, Inc. (238) (349) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 % Change 2024 2023 % ChangeSegment Results Revenues Americas$2,640 $2,736 (4)% $6,994 $7,180 (3)%International 840 828 1% 2,085 2,064 1%Corporate and Other — — n/m — — n/mTotal Company$3,480 $3,564 (2)% $9,079 $9,244 (2)% Adjusted EBITDA (a) Americas$384 $740 (48)% $614 $1,887 (67)%International 139 196 (29)% 172 372 (54)%Corporate and Other (20) (29) 31% (57) (80) 29%Total Company$503 $907 (45)% $729 $2,179 (67)% _______n/mNot meaningful.(a)Refer to Table 5 for the reconciliation of net income to Adjusted EBITDA and Appendix I for the related definition of the non-GAAP financial measure. Table 2 Avis Budget Group, Inc.CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)(In millions, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023Revenues$3,480 $3,564 $9,079 $9,244 Expenses Operating 1,575 1,543 4,451 4,325Vehicle depreciation and lease charges, net 806 517 2,175 1,157Selling, general and administrative 367 397 1,040 1,099Vehicle interest, net 241 208 724 513Non-vehicle related depreciation and amortization 58 55 177 163Interest expense related to corporate debt, net: Interest expense 95 80 266 221Early extinguishment of debt — 1 1 1Restructuring and other related charges 6 2 23 7Transaction-related costs, net — 3 2 3Other (income) expense, net 3 1 6 3Total expenses 3,151 2,807 8,865 7,492 Income before income taxes 329 757 214 1,752Provision for income taxes 91 130 74 377Net income 238 627 140 1,375Less: net income attributable to non-controlling interests 1 1 3 2Net income attributable to Avis Budget Group, Inc.$237 $626 $137 $1,373 Earnings per share Basic$6.67 $16.96 $3.86 $35.11Diluted$6.65 $16.78 $3.84 $34.71 Weighted average shares outstanding Basic 35.5 36.9 35.6 39.1Diluted 35.7 37.3 35.8 39.5 Table 3 Avis Budget Group, Inc.KEY METRICS SUMMARY (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 % Change 2024 2023 % ChangeAmericas Rental Days (000’s) 34,922 35,670 (2)% 97,554 96,652 1%Revenue per Day$75.61 $76.70 (1)% $71.70 $74.29 (3)%Revenue per Day, excluding exchange rate effects$75.71 $76.70 (1)% $71.75 $74.29 (3)%Average Rental Fleet 531,261 551,739 (4)% 514,809 503,502 2%Vehicle Utilization 71.5% 70.3% 1.2 pps 69.2% 70.3% (1.1) ppsPer-Unit Fleet Costs per Month$384 $219 75% $358 $175 105%Per-Unit Fleet Costs per Month, excluding exchange rate effects$385 $219 76% $358 $175 105% International Rental Days (000’s) 13,864 13,160 5% 36,318 34,626 5%Revenue per Day$60.52 $62.86 (4)% $57.40 $59.60 (4)%Revenue per Day, excluding exchange rate effects$59.86 $62.86 (5)% $57.36 $59.60 (4)%Average Rental Fleet 204,580 202,700 1% 187,981 184,750 2%Vehicle Utilization 73.7% 70.6% 3.1 pps 70.5% 68.7% 1.8 ppsPer-Unit Fleet Costs per Month$316 $254 24% $305 $220 39%Per-Unit Fleet Costs per Month, excluding exchange rate effects$312 $254 23% $304 $220 38% Total Rental Days (000’s) 48,786 48,830 —% 133,872 131,278 2%Revenue per Day$71.32 $72.97 (2)% $67.82 $70.41 (4)%Revenue per Day, excluding exchange rate effects$71.21 $72.97 (2)% $67.85 $70.41 (4)%Average Rental Fleet 735,841 754,439 (2)% 702,790 688,252 2%Vehicle Utilization 72.1% 70.4% 1.7 pps 69.5% 69.9% (0.4) ppsPer-Unit Fleet Costs per Month$365 $228 60% $344 $187 84%Per-Unit Fleet Costs per Month, excluding exchange rate effects$364 $228 60% $344 $187 84%_______ Refer to Table 6 for key metrics calculations and Appendix I for key metrics definitions. Table 4 Avis Budget Group, Inc.CONSOLIDATED CONDENSED SCHEDULE OF CASH FLOW AND ADJUSTED FREE CASH FLOW (Unaudited)(In millions) CONSOLIDATED CONDENSED SCHEDULE OF CASH FLOWNine Months Ended September 30, 2024Operating Activities Net cash provided by operating activities$2,746 Investing Activities Net cash used in investing activities exclusive of vehicle programs (124)Net cash used in investing activities of vehicle programs (2,572)Net cash used in investing activities (2,696)Financing Activities Net cash provided by financing activities exclusive of vehicle programs 1,121 Net cash used in financing activities of vehicle programs (1,164)Net cash used in financing activities (43)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 5 Cash and cash equivalents, program and restricted cash, beginning of period 644 Cash and cash equivalents, program and restricted cash, end of period$649 ADJUSTED FREE CASH FLOW (a)Nine Months Ended September 30, 2024Adjusted EBITDA (b)$729 Interest expense related to corporate debt, net (excluding early extinguishment of debt) (266)Working capital and other (51)Capital expenditures (c) (148)Tax payments, net of refunds (36)Vehicle programs and related (d) (1,296)Adjusted Free Cash Flow (b)$(1,068)Acquisition and related payments, net of acquired cash (2)Borrowings, net of debt repayments 1,173 Repurchases of common stock (25)Change in program and restricted cash (42)Other receipts (payments), net (8)Foreign exchange effects, financing costs and other (23)Net change in cash and cash equivalents, program and restricted cash (per above)$5 _______ (a)This presentation demonstrates the relationship between Adjusted EBITDA and Adjusted Free Cash Flow. We believe it is useful to understand this relationship because it demonstrates how cash generated by our operations is used. This presentation is not intended to be reconciliations of these non-GAAP measures, which are provided on Table 5.(b)Refer to Table 5 for the reconciliations of net income to Adjusted EBITDA and net cash provided by operating activities to Adjusted Free Cash Flow.(c)Includes $13 million of cloud computing implementation costs.(d)Includes vehicle-backed borrowings (repayments) that are incremental to amounts required to fund vehicle and vehicle-related assets. Table 5 Avis Budget Group, Inc.RECONCILIATION OF NON-GAAP MEASURES (Unaudited)(In millions) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023Reconciliation of Net income to Adjusted EBITDA: Net income$238 $627 $140 $1,375Provision for income taxes 91 130 74 377Income before income taxes 329 757 214 1,752Non-vehicle related depreciation and amortization 58 55 177 163Interest expense related to corporate debt, net: Interest expense 95 80 266 221Early extinguishment of debt — 1 1 1Restructuring and other related charges 6 2 23 7Transaction-related costs, net — 3 2 3Other (income) expense, net 3 1 6 3Reported within operating expenses: Cloud computing costs 12 8 33 24Legal matters, net — — 7 5Adjusted EBITDA$503 $907 $729 $2,179 Reconciliation of Net cash provided by operating activities to Adjusted Free Cash Flow: Net cash provided by operating activities$2,746 Net cash used in investing activities of vehicle programs (2,572) Net cash used in financing activities of vehicle programs (1,164) Capital expenditures (135) Proceeds received on sale of assets and nonmarketable equity securities 2 Acquisition and disposition-related payments (2) Change in program and restricted cash 42 Dividends from equity method investments 7 Other receipts (payments), net 8 Adjusted Free Cash Flow$(1,068) _______Refer to Appendix I for the definitions of Adjusted EBITDA and Adjusted Free Cash Flow, non-GAAP financial measures. Adjusted EBITDA includes stock-based compensation expense and vehicle related deferred financing fee amortization in the aggregate totaling $9 million and $15 million in the three months ended September 30, 2024 and 2023, respectively, and $40 million and $44 million in the nine months ended September 30, 2024 and 2023, respectively. Table 6 Avis Budget Group, Inc.KEY METRICS CALCULATIONS (Unaudited)($ in millions, except as noted) Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 Americas International Total Americas International TotalRevenue per Day (RPD)Revenue$2,640 $840 $3,480 $2,736 $828 $3,564 Currency exchange rate effects 4 (10) (6) — — — Revenue excluding exchange rate effects$2,644 $830 $3,474 $2,736 $828 $3,564 Rental days (000's) 34,922 13,864 48,786 35,670 13,160 48,830 RPD excluding exchange rate effects (in $'s)$75.71 $59.86 $71.21 $76.70 $62.86 $72.97 Vehicle UtilizationRental days (000's) 34,922 13,864 48,786 35,670 13,160 48,830 Average rental fleet 531,261 204,580 735,841 551,739 202,700 754,439 Number of days in period 92 92 92 92 92 92 Available rental days (000's) 48,876 18,821 67,697 50,760 18,648 69,408 Vehicle utilization 71.5% 73.7% 72.1% 70.3% 70.6% 70.4% Per-Unit Fleet CostsVehicle depreciation and lease charges, net$613 $193 $806 $362 $155 $517 Currency exchange rate effects — (2) (2) — — — Vehicle depreciation excluding exchange rate effects$613 $191 $804 $362 $155 $517 Average rental fleet 531,261 204,580 735,841 551,739 202,700 754,439 Per-unit fleet costs (in $'s)$1,154 $935 $1,093 $657 $763 $685 Number of months in period 3 3 3 3 3 3 Per-unit fleet costs per month excluding exchange rate effects (in $'s)$385 $312 $364 $219 $254 $228 Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Americas International Total Americas International TotalRevenue per Day (RPD) Revenue$6,994 $2,085 $9,079 $7,180 $2,064 $9,244 Currency exchange rate effects 6 (2) 4 — — — Revenue excluding exchange rate effects$7,000 $2,083 $9,083 $7,180 $2,064 $9,244 Rental days (000's) 97,554 36,318 133,872 96,652 34,626 131,278 RPD excluding exchange rate effects (in $'s)$71.75 $57.36 $67.85 $74.29 $59.60 $70.41 Vehicle Utilization Rental days (000's) 97,554 36,318 133,872 96,652 34,626 131,278 Average rental fleet 514,809 187,981 702,790 503,502 184,750 688,252 Number of days in period 274 274 274 273 273 273 Available rental days (000's) 141,058 51,507 192,565 137,456 50,437 187,893 Vehicle utilization 69.2% 70.5% 69.5% 70.3% 68.7% 69.9% Per-Unit Fleet Costs Vehicle depreciation and lease charges, net$1,659 $516 $2,175 $791 $366 $1,157 Currency exchange rate effects 1 (2) (1) — — — Vehicle depreciation excluding exchange rate effects$1,660 $514 $2,174 $791 $366 $1,157 Average rental fleet 514,809 187,981 702,790 503,502 184,750 688,252 Per-unit fleet costs (in $'s)$3,224 $2,734 $3,093 $1,574 $1,977 $1,681 Number of months in period 9 9 9 9 9 9 Per-unit fleet costs per month excluding exchange rate effects (in $'s)$358 $304 $344 $175 $220 $187 _______ Our calculation of rental days and revenue per day may not be comparable to the calculation of similarly-titled metrics by other companies. Currency exchange rate effects are calculated by translating the current-period's results at the prior-period average exchange rates plus any related gains and losses on currency hedges. Appendix I Avis Budget Group, Inc.DEFINITIONS OF NON-GAAP MEASURES AND KEY METRICS Adjusted EBITDAThe accompanying press release presents Adjusted EBITDA, which is a non-GAAP measure most directly comparable to net income (loss). Adjusted EBITDA is defined as income (loss) from continuing operations before non-vehicle related depreciation and amortization; any impairment charges; restructuring and other related charges; early extinguishment of debt costs; non-vehicle related interest; transaction-related costs, net; legal matters, which includes amounts recorded in excess of $5 million related to class action lawsuits and personal injury matters; non-operational charges related to shareholder activist activity, which includes third-party advisory, legal and other professional fees; COVID-19 charges, net; cloud computing costs; other (income) expense, net; and income taxes. We believe Adjusted EBITDA is useful to investors as a supplemental measure in evaluating the performance of our operating businesses and in comparing our results from period to period. We also believe that Adjusted EBITDA is useful to investors because it allows them to assess our results of operations and financial condition on the same basis that management uses internally. Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with U.S. GAAP. Our presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. A reconciliation of Adjusted EBITDA from net income (loss) recognized under GAAP is provided on Table 5. Adjusted Free Cash 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 legal matters, net, which includes amounts recorded in excess of $5 million related to class action lawsuits and personal injury matters, COVID-19 charges, other (income) expense, and non-operational charges related to shareholder activist activity. We believe that Adjusted Free Cash Flow is useful to management and investors in measuring the cash generated that is available to be used to repay debt obligations, repurchase stock, pay dividends and invest in future growth through new business development activities or acquisitions. Adjusted Free Cash Flow should not be construed as a substitute in measuring operating results or liquidity, and our presentation of Adjusted Free Cash Flow may not be comparable to similarly-titled measures used by other companies. A reconciliation of Adjusted Free Cash Flow from net cash provided by operating activities recognized under GAAP is provided on Table 5. Adjusted EBITDA 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.

Avis Budget Group Reports Third Quarter Results

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