EX-99.2 4 ex-992revisedselectedfinan.htm EXHIBIT 99.2 Ex-99.2 Revised Selected Financial Data



EX-99.2 REVISED SELECTED FINANCIAL DATA
 ITEM 6. SELECTED FINANCIAL DATA
Note: The information contained in this Item has been updated for the change to the definition of Adjusted EBITDA, as discussed in the Notes to the Consolidated Financial Statements. This Item has not been updated for any other changes since the filing of the 2013 Annual Report on Form 10-K. For significant developments since the filing of the 2013 Form 10-K, refer to Avis Budget Group’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014.
 
 
As of or For the Year Ended December 31,
 
 
2013
 
2012
 
2011
 
2010
 
2009
 
 
 
 
(In millions, except per share data)
 
 
Results of Operations
 
 
 
 
 
 
 
 
 
Net revenues
$
7,937

 
$
7,357

 
$
5,900

 
$
5,185

 
$
5,131

 
 
 
 
 
 
 
 
 
 
Net income (loss)
$
16

 
$
290

 
$
(29
)
 
$
54

 
$
(47
)
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA (a)
$
769

 
$
840

 
$
610

 
$
409

 
$
225

 
 
 
 
 
 
 
 
 
 
Earnings (loss) Per Share
 
 
 
 
 
 
 
 
 
 
Basic
$
0.15

 
$
2.72

 
$
(0.28
)
 
$
0.53

 
$
(0.46
)
 
Diluted
0.15

 
2.42

 
(0.28
)
 
0.49

 
(0.46
)
 
 
 
 
 
 
 
 
 
 
 
Financial Position
 
 
 
 
 
 
 
 
 
Total assets
$
16,284

 
$
15,218

 
$
12,938

 
$
10,327

 
$
10,093

Assets under vehicle programs
10,452

 
10,099

 
9,090

 
6,865

 
6,522

Corporate debt
3,394

 
2,905

 
3,205

 
2,502

 
2,131

Debt under vehicle programs (b)
7,337

 
6,806

 
5,564

 
4,515

 
4,374

Stockholders’ equity
771

 
757

 
412

 
410

 
222

__________
(a) 
The following table reconciles Adjusted EBITDA to Net income (loss) within our Selected Financial Data, which we define as income from continuing operations before non-vehicle related depreciation and amortization, any impairment charge, restructuring expense, early extinguishment of debt costs, non-vehicle related interest, transaction-related costs and income taxes. Our presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.
 
For the Year Ended December 31,
 
2013
 
2012
 
2011
 
2010
 
2009
Adjusted EBITDA
$
769

 
$
840

 
$
610

 
$
409

 
$
225

Less: Non-vehicle related depreciation and amortization
152

 
125

 
95

 
90

 
96

Interest expense related to corporate debt, net
228

 
268

 
219

 
170

 
153

Early extinguishment of debt
147

 
75

 
—

 
52

 
—

Restructuring expense
61

 
38

 
5

 
11

 
20

Transaction-related costs
51

 
34

 
255

 
14

 
—

Impairment
33

 
—

 
—

 
—

 
33

Income (loss) before income taxes
97

 
300

 
36

 
72

 
(77
)
Provision for (benefit from) income taxes
81

 
10

 
65

 
18

 
(30
)
Net income (loss)
$
16

 
$
290

 
$
(29
)
 
$
54

 
$
(47
)
__________

(b) 
Includes related-party debt due to Avis Budget Rental Car Funding (AESOP) LLC (“Avis Budget Rental Car Funding”). See Note 14 to our Consolidated Financial Statements.
In presenting the financial data above in conformity with GAAP, we are required to make estimates and assumptions that affect the amounts reported. See “Critical Accounting Policies” under Item 7 of this Report on Form 8-K for a detailed discussion of the accounting policies that we believe require subjective and complex judgments that could potentially affect reported results.

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TRANSACTION RELATED-COSTS, RESTRUCTURING AND OTHER ITEMS
During 2013, 2012, 2011 and 2010, we recorded $51 million, $34 million, $255 million and $14 million, respectively, of transaction-related costs, primarily related to our acquisition of Avis Europe and Zipcar, the integration of acquired businesses with our operations and expenses related to our previous efforts to acquire Dollar Thrifty Automotive Group, Inc. (“Dollar Thrifty”). In 2013, these costs were primarily related to the acquisition of Zipcar and the integration of acquired businesses. During 2012, these costs were primarily related to the integration of Avis Europe’s operations with the Company’s. In 2011, these costs included (i) a $117 million non-cash charge related to the unfavorable license rights reacquired by the Company through the acquisition of Avis Europe, which provided Avis Europe with royalty-free license rights within certain territories, (ii) $89 million of expenses related to due-diligence, advisory and other costs, and (iii) $49 million for losses on foreign-currency transactions related to the Avis Europe purchase price. In 2010, these costs related to due-diligence and other cost for our previous efforts to acquire Dollar Thrifty. See Notes 2 and 5 to our Consolidated Financial Statements.
In 2012, we implemented a restructuring initiative related to our Truck Rental segment, and in 2011, we implemented a restructuring initiative subsequent to the acquisition of Avis Europe. In 2010 and 2009, we implemented cost-reduction and efficiency improvement plans to reduce costs, enhance organizational efficiency and consolidate and rationalize existing processes and facilities. We recorded expenses related to these and other restructuring initiatives of $61 million in 2013, $38 million in 2012, $5 million in 2011, $11 million in 2010, and $20 million in 2009. See Note 4 to our Consolidated Financial Statements.
In 2013, 2012 and 2010, we recorded $147 million, $75 million, and $52 million, respectively, of expense related to the early extinguishment of corporate debt.
In 2013, we recorded a charge of $33 million ($33 million, net of tax) for the impairment of our equity-method investment in our Brazilian licensee. In 2009, we recorded a $33 million ($20 million, net of tax) non-cash charge for the impairment of investments, to reflect the other-than-temporary decline of the investments’ fair value below their carrying value.


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