EX-99.2 4 exhibit992revisedselectedf.htm EXHIBIT 99.2 Exhibit 99.2 Revised Selected Finanical 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 reportable segments discussed in the Notes to the Consolidated Financial Statements. This Item has not been updated for any other changes since the filing of the 2014 Annual Report on Form 10-K. For significant developments since the filing of the 2014 Form 10-K, refer to Avis Budget Group's Quarterly Report on Form 10-Q for the quarter ended March 31, 2015.
 
 
As of or For the Year Ended December 31,
 
 
2014
 
2013
 
2012
 
2011
 
2010
 
 
 
 
(In millions, except per share data)
 
 
Results of Operations
 
 
 
 
 
 
 
 
 
Net revenues
$
8,485

 
$
7,937

 
$
7,357

 
$
5,900

 
$
5,185

 
 
 
 
 
 
 
 
 
 
Net income (loss)
$
245

 
$
16

 
$
290

 
$
(29
)
 
$
54

 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA (a)
$
876

 
$
769

 
$
840

 
$
610

 
$
409

 
 
 
 
 
 
 
 
 
 
Earnings (loss) per share
 
 
 
 
 
 
 
 
 
 
Basic
$
2.32

 
$
0.15

 
$
2.72

 
$
(0.28
)
 
$
0.53

 
Diluted
2.22

 
0.15

 
2.42

 
(0.28
)
 
0.49

 
 
 
 
 
 
 
 
 
 
 
Financial Position
 
 
 
 
 
 
 
 
 
Total assets
$
16,969

 
$
16,284

 
$
15,218

 
$
12,938

 
$
10,327

Assets under vehicle programs
11,058

 
10,452

 
10,099

 
9,090

 
6,865

Corporate debt
3,420

 
3,394

 
2,905

 
3,205

 
2,502

Debt under vehicle programs (b)
8,116

 
7,337

 
6,806

 
5,564

 
4,515

Stockholders’ equity
665

 
771

 
757

 
412

 
410

Ratio of debt under vehicle programs to assets under vehicle programs
73
%
 
70
%
 
67
%
 
61
%
 
66
%
__________
(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, net 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,
 
2014
 
2013
 
2012
 
2011
 
2010
Adjusted EBITDA
$
876

 
$
769

 
$
840

 
$
610

 
$
409

Less: Non-vehicle related depreciation and amortization
180

 
152

 
125

 
95

 
90

Interest expense related to corporate debt, net
209

 
228

 
268

 
219

 
170

Early extinguishment of corporate debt
56

 
147

 
75

 

 
52

Restructuring expense
26

 
61

 
38

 
5

 
11

Transaction-related costs, net

13

 
51

 
34

 
255

 
14

Impairment

 
33

 

 

 

Income before income taxes
392

 
97

 
300

 
36

 
72

Provision for income taxes
147

 
81

 
10

 
65

 
18

Net income (loss)
$
245

 
$
16

 
$
290

 
$
(29
)
 
$
54

__________
(b) 
Includes related-party debt due to Avis Budget Rental Car Funding (AESOP) LLC (“Avis Budget Rental Car Funding”). See Note 13 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 15(A)(1) of this Current Report for a detailed discussion of the accounting policies that we believe require subjective and complex judgments that could potentially affect reported results.

1



TRANSACTION-RELATED COSTS, RESTRUCTURING AND OTHER ITEMS
During 2014, 2013, 2012, 2011 and 2010, we recorded $13 million, $51 million, $34 million, $255 million and $14 million, respectively, of transaction-related costs, primarily related to the acquisition and integration of acquired businesses with our operations. In 2014, these costs were primarily related to acquisition- and integration-related costs of acquired businesses, including a non-cash gain recognized in connection with the acquisition of our Budget license rights, and contingent consideration related to our Apex Car Rentals acquisition. 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 2014, we committed to various strategic initiatives to identify best practices and drive efficiency throughout our organization, by reducing headcount, improving processes and consolidating functions. In 2012, we implemented a restructuring initiative related to our truck rental operations in the United States, and in 2011, we implemented a restructuring initiative subsequent to the acquisition of Avis Europe. In 2010, 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 $26 million in 2014, $61 million in 2013, $38 million in 2012, $5 million in 2011, and $11 million in 2010. See Note 4 to our Consolidated Financial Statements.
In 2014, 2013, 2012 and 2010, we recorded $56 million, $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 for the impairment of our equity-method investment in our Brazilian licensee.


2