We ended the third quarter with revenues almost double the prior year and 9% above the third quarter 2019, at
Net income was
Our liquidity position at the end of the quarter was approximately
“Our third quarter results are a testament to our team’s on-going focus around cost discipline and ability to execute operationally,” said
Q3 Highlights
Total Company revenues increased by 96% and 9% compared to third quarter 2020 and 2019, respectively.- Adjusted EBITDA in the
Americas was$952 million for the third quarter 2021 driven by strong pricing and sustained cost discipline. - Adjusted EBITDA in International was
$128 million for the third quarter 2021 driven by pricing and volume beginning to recover along with strong cost mitigating actions. - We repurchased approximately 11.6 million shares of common stock in the third quarter at an average cost of
$86 , bringing our outstanding share count down by 16% fromJune 30, 2021 . - We redeemed
$235 million of our 5.25% Senior Notes dueMarch 2025 with cash on hand.
Investor Conference Call
We will host a conference call to discuss the Company's third quarter results on
About
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, 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
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
Contact | |
IR@avisbudget.com | |
PR@avisbudget.com |
Table 1
SUMMARY DATA SHEET
(In millions, except per share data)
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||||||||||
Income Statement and Other Items | |||||||||||||||||||||||
Revenues | $ | 3,001 | $ | 1,534 | 96 | % | $ | 6,744 | $ | 4,047 | 67 | % | |||||||||||
Income (loss) before income taxes | 929 | 53 | n/m | 1,165 | (821 | ) | 242 | % | |||||||||||||||
Net income (loss) | 674 | 45 | n/m | 902 | (594 | ) | 252 | % | |||||||||||||||
Earnings (loss) per share - diluted | 10.45 | 0.63 | n/m | 13.16 | (8.40 | ) | 257 | % | |||||||||||||||
Adjusted Earnings Measures (non-GAAP) (A) | |||||||||||||||||||||||
Adjusted EBITDA | 1,057 | 220 | 380 | % | 1,728 | (249 | ) | 794 | % | ||||||||||||||
Adjusted pretax income (loss) | 954 | 99 | 864 | % | 1,402 | (580 | ) | 342 | % | ||||||||||||||
Adjusted net income (loss) | 693 | 79 | 777 | % | 1,078 | (412 | ) | 362 | % | ||||||||||||||
Adjusted earnings (loss) per share - diluted | 10.74 | 1.13 | 850 | % | 15.72 | (5.83 | ) | 370 | % | ||||||||||||||
As of | |||||||||||||||||||||||
Balance Sheet Items | |||||||||||||||||||||||
Cash and Cash Equivalents | $ | 886 | $ | 692 | |||||||||||||||||||
Vehicles, net | 11,925 | 8,153 | |||||||||||||||||||||
Debt under vehicle programs | 10,749 | 6,857 | |||||||||||||||||||||
Corporate debt | 4,027 | 4,210 | |||||||||||||||||||||
Stockholders' equity | (198 | ) | (155 | ) |
Segment Results | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||||||||||
Revenues | |||||||||||||||||||||||
$ | 2,403 | $ | 1,114 | 116 | % | $ | 5,457 | $ | 2,936 | 86 | % | ||||||||||||
International | 598 | 420 | 42 | % | 1,287 | 1,111 | 16 | % | |||||||||||||||
Corporate and Other | — | — | n/m | — | — | n/m | |||||||||||||||||
$ | 3,001 | $ | 1,534 | 96 | % | $ | 6,744 | $ | 4,047 | 67 | % | ||||||||||||
Adjusted EBITDA | |||||||||||||||||||||||
$ | 952 | $ | 222 | 329 | % | $ | 1,694 | $ | (41 | ) | n/m | ||||||||||||
International | 128 | 6 | n/m | 86 | (174 | ) | 149 | % | |||||||||||||||
Corporate and Other | (23 | ) | (8 | ) | n/m | (52 | ) | (34 | ) | n/m | |||||||||||||
$ | 1,057 | $ | 220 | 380 | % | $ | 1,728 | $ | (249 | ) | 794 | % |
_______ | |
n/m | Not meaningful. |
(A) | See Table 5 for reconciliations of non-GAAP measures and Appendix I for definitions. |
Table 2
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
Three Months Ended | Nine Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues | $ | 3,001 | $ | 1,534 | $ | 6,744 | $ | 4,047 | ||||||||
Expenses | ||||||||||||||||
Operating | 1,225 | 825 | 3,089 | 2,505 | ||||||||||||
Vehicle depreciation and lease charges, net | 277 | 256 | 869 | 1,089 | ||||||||||||
Selling, general and administrative | 361 | 166 | 837 | 549 | ||||||||||||
Vehicle interest, net | 80 | 77 | 232 | 247 | ||||||||||||
Non-vehicle related depreciation and amortization | 69 | 74 | 199 | 214 | ||||||||||||
Interest expense related to corporate debt, net: | ||||||||||||||||
Interest expense | 47 | 64 | 167 | 163 | ||||||||||||
Early extinguishment of debt | 7 | 2 | 136 | 9 | ||||||||||||
Restructuring and other related charges | 5 | 17 | 47 | 89 | ||||||||||||
Transaction-related costs, net | 1 | — | 3 | 3 | ||||||||||||
Total expenses | 2,072 | 1,481 | 5,579 | 4,868 | ||||||||||||
Income (loss) before income taxes | 929 | 53 | 1,165 | (821 | ) | |||||||||||
Provision for (benefit from) income taxes | 255 | 8 | 263 | (227 | ) | |||||||||||
Net income (loss) | 674 | 45 | 902 | (594 | ) | |||||||||||
Less: net loss attributable to non-controlling interests | (1 | ) | — | (1 | ) | — | ||||||||||
Net income (loss) attributable to | $ | 675 | $ | 45 | $ | 903 | $ | (594 | ) | |||||||
Earnings (loss) per share | ||||||||||||||||
Basic | $ | 10.58 | $ | 0.64 | $ | 13.31 | $ | (8.40 | ) | |||||||
Diluted | $ | 10.45 | $ | 0.63 | $ | 13.16 | $ | (8.40 | ) | |||||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 63.7 | 69.7 | 67.8 | 70.8 | ||||||||||||
Diluted | 64.6 | 70.2 | 68.6 | 70.8 |
Table 3
KEY METRICS SUMMARY
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||||||||||||
Rental Days (000’s) | 28,836 | 19,289 | 49 | % | 71,768 | 54,715 | 31 | % | |||||||||||||||||
Revenue per Day, excluding exchange rate effects (A) | $ | 83.15 | $ | 57.79 | 44 | % | $ | 75.88 | $ | 53.67 | 41 | % | |||||||||||||
Average Rental Fleet | 434,416 | 362,192 | 20 | % | 369,012 | 392,737 | (6 | ) | % | ||||||||||||||||
Vehicle Utilization | 72.2 | % | 57.9 | % | 14.3 pps | 71.2 | % | 50.8 | % | 20.4 pps | |||||||||||||||
Per-Unit Fleet Costs per Month, excluding exchange rate effects (A) | $ | 143 | $ | 152 | (6 | ) | % | $ | 189 | $ | 217 | (13 | ) | % | |||||||||||
International | |||||||||||||||||||||||||
Rental Days (000’s) | 10,720 | 9,542 | 12 | % | 25,679 | 26,633 | (4 | ) | % | ||||||||||||||||
Revenue per Day, excluding exchange rate effects (A) | $ | 54.91 | $ | 43.98 | 25 | % | $ | 47.06 | $ | 41.70 | 13 | % | |||||||||||||
Average Rental Fleet | 166,431 | 154,781 | 8 | % | 138,439 | 170,632 | (19 | ) | % | ||||||||||||||||
Vehicle Utilization | 70.0 | % | 67.0 | % | 3 pps | 67.9 | % | 57.0 | % | 10.9 pps | |||||||||||||||
Per-Unit Fleet Costs per Month, excluding exchange rate effects (A) | $ | 179 | $ | 195 | (8 | ) | % | $ | 181 | $ | 210 | (14 | ) | % | |||||||||||
Total | |||||||||||||||||||||||||
Rental Days (000’s) | 39,556 | 28,831 | 37 | % | 97,447 | 81,348 | 20 | % | |||||||||||||||||
Revenue per Day, excluding exchange rate effects (A) | $ | 75.50 | $ | 53.22 | 42 | % | $ | 68.28 | $ | 49.75 | 37 | % | |||||||||||||
Average Rental Fleet | 600,847 | 516,973 | 16 | % | 507,451 | 563,369 | (10 | ) | % | ||||||||||||||||
Vehicle Utilization | 71.6 | % | 60.6 | % | 11 pps | 70.3 | % | 52.7 | % | 17.6 pps | |||||||||||||||
Per-Unit Fleet Costs per Month, excluding exchange rate effects (A) | $ | 153 | $ | 165 | (7 | ) | % | $ | 187 | $ | 215 | (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 | Nine Months Ended | ||||||||||||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||||||||||||
Revenue per Day | $ | 83.33 | $ | 57.79 | 44 | % | $ | 76.04 | $ | 53.67 | 42 | % | |||||||||||||
Per-Unit Fleet Costs per Month | $ | 143 | $ | 152 | (6 | ) | % | $ | 190 | $ | 217 | (12 | ) | % | |||||||||||
International | |||||||||||||||||||||||||
Revenue per Day | $ | 55.79 | $ | 43.98 | 27 | % | $ | 50.12 | $ | 41.70 | 20 | % | |||||||||||||
Per-Unit Fleet Costs per Month | $ | 181 | $ | 195 | (7 | ) | % | $ | 192 | $ | 210 | (9 | ) | % | |||||||||||
Total | |||||||||||||||||||||||||
Revenue per Day | $ | 75.86 | $ | 53.22 | 43 | % | $ | 69.21 | $ | 49.75 | 39 | % | |||||||||||||
Per-Unit Fleet Costs per Month | $ | 154 | $ | 165 | (7 | ) | % | $ | 190 | $ | 215 | (12 | ) | % |
Table 4 (page 1 of 2)
CONSOLIDATED CONDENSED SCHEDULES OF CASH FLOWS AND ADJUSTED FREE CASH FLOWS
(In millions)
CONSOLIDATED CONDENSED SCHEDULE OF CASH FLOWS
Nine Months Ended | |||||
Operating Activities | |||||
Net cash provided by operating activities | $ | 2,548 | |||
Investing Activities | |||||
Net cash used in investing activities exclusive of vehicle programs | $ | (74 | ) | ||
Net cash used in investing activities of vehicle programs | (4,857 | ) | |||
Net cash used in investing activities | $ | (4,931 | ) | ||
Financing Activities | |||||
Net cash used in financing activities exclusive of vehicle programs | $ | (1,230 | ) | ||
Net cash provided by financing activities of vehicle programs | 3,808 | ||||
Net cash provided by financing activities | $ | 2,578 | |||
Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash | $ | (15 | ) | ||
Net change in cash and cash equivalents, program and restricted cash | 180 | ||||
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) | $ | 945 |
CONSOLIDATED SCHEDULE OF ADJUSTED FREE CASH FLOWS (C)
Nine Months Ended | |||||
Income before income taxes | $ | 1,165 | |||
Add-back of non-vehicle related depreciation and amortization (D) | 204 | ||||
Add-back of debt extinguishment costs | 136 | ||||
Add-back of restructuring and other related costs | 47 | ||||
Add-back of transaction-related costs, net | 3 | ||||
Add-back of COVID-19 charges | 12 | ||||
Add-back of unprecedented personal-injury and other legal matters, net | (6 | ) | |||
Working capital and other | 384 | ||||
Capital expenditures (E) | (93 | ) | |||
Tax payments, net of refunds | (63 | ) | |||
Vehicle programs and related (F) | (206 | ) | |||
Adjusted free cash flow | $ | 1,583 | |||
Acquisition and related payments, net of acquired cash | $ | (14 | ) | ||
Borrowings, net of debt repayments | (250 | ) | |||
Restructuring and other related payments | (28 | ) | |||
Transaction-related payments | (4 | ) | |||
COVID-19 payments, net | (52 | ) | |||
Unprecedented personal-injury and other legal matter payments, net | (8 | ) | |||
Repurchases of common stock | (997 | ) | |||
Change in program cash | (13 | ) | |||
Change in restricted cash | 2 | ||||
Foreign exchange effects, financing costs and other | (39 | ) | |||
Net change in cash and cash equivalents, program and restricted cash (per above) | $ | 180 |
Table 4 (page 2 of 2)
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW
Nine Months Ended | |||||
Net cash provided by operating activities (per above) | $ | 2,548 | |||
Investing activities of vehicle programs | (4,857 | ) | |||
Financing activities of vehicle programs | 3,808 | ||||
Capital expenditures | (57 | ) | |||
Proceeds received on sale of assets and nonmarketable equity securities | 3 | ||||
Change in program cash | 13 | ||||
Change in restricted cash | (2 | ) | |||
Acquisition and disposition-related payments | (3 | ) | |||
Non-controlling interest (distributions) contributions, net | 38 | ||||
COVID-19 payments, net | 52 | ||||
Restructuring and other related payments | 28 | ||||
Unprecedented personal-injury and other legal matter payments, net | 8 | ||||
Transaction-related payments | 4 | ||||
Adjusted free cash flow (per above) | $ | 1,583 |
_______ | |
(A) | Consists of cash and cash equivalents of |
(B) | Consists of cash and cash equivalents of |
(C) | See Appendix I for the definition of Adjusted free cash flow. |
(D) | Includes |
(E) | Includes |
(F) | Includes vehicle-backed borrowings (repayments) that are incremental to amounts required to fund incremental (reduced) vehicle and vehicle-related assets. |
Table 5
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
Three Months Ended | Nine Months Ended | ||||||||||||||||
Reconciliation of net income to Adjusted EBITDA: | 2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income (loss) | $ | 674 | $ | 45 | $ | 902 | $ | (594 | ) | ||||||||
Add: | Provision for (benefit from) income taxes | 255 | 8 | 263 | (227 | ) | |||||||||||
Income (loss) before income taxes | 929 | 53 | 1,165 | (821 | ) | ||||||||||||
Add certain items: | |||||||||||||||||
Early extinguishment of debt | 7 | 2 | 136 | 9 | |||||||||||||
Restructuring and other related charges | 5 | 17 | 47 | 89 | |||||||||||||
Acquisition-related amortization expense | 13 | 17 | 45 | 46 | |||||||||||||
COVID-19 charges (A) | (6 | ) | 10 | 12 | 90 | ||||||||||||
Transaction-related costs, net | 1 | — | 3 | 3 | |||||||||||||
Non-operational charges related to shareholder activist activity (B) | — | — | — | 4 | |||||||||||||
Unprecedented personal-injury and other legal matters, net (C) | 5 | — | (6 | ) | — | ||||||||||||
Adjusted pretax income (loss) | 954 | 99 | 1,402 | (580 | ) | ||||||||||||
Add: | Non-vehicle related depreciation and amortization (excluding acquisition-related amortization expense) (D) | 56 | 57 | 159 | 168 | ||||||||||||
Interest expense related to corporate debt, net (excluding early extinguishment of debt) | 47 | 64 | 167 | 163 | |||||||||||||
Adjusted EBITDA | $ | 1,057 | $ | 220 | $ | 1,728 | $ | (249 | ) | ||||||||
Reconciliation of net income attributable to | |||||||||||||||||
Net income (loss) attributable to | $ | 675 | $ | 45 | $ | 903 | $ | (594 | ) | ||||||||
Add certain items, net of tax: | |||||||||||||||||
Early extinguishment of debt | 5 | 1 | 101 | 7 | |||||||||||||
Restructuring and other related charges | 4 | 14 | 35 | 69 | |||||||||||||
Acquisition-related amortization expense | 9 | 12 | 33 | 34 | |||||||||||||
COVID-19 charges | (5 | ) | 7 | 8 | 67 | ||||||||||||
Transaction-related costs, net | 1 | — | 2 | 2 | |||||||||||||
Non-operational charges related to shareholder activist activity | — | — | — | 3 | |||||||||||||
Unprecedented personal-injury and other legal matters, net | 4 | — | (4 | ) | — | ||||||||||||
Adjusted net income (loss) | $ | 693 | $ | 79 | $ | 1,078 | $ | (412 | ) | ||||||||
Earnings (loss) per share - Diluted | $ | 10.45 | $ | 0.63 | $ | 13.16 | $ | (8.40 | ) | ||||||||
Adjusted diluted earnings (loss) per share | $ | 10.74 | $ | 1.13 | $ | 15.72 | $ | (5.83 | ) | ||||||||
Shares used to calculate Adjusted diluted earnings (loss) per share | 64.6 | 70.2 | 68.6 | 70.8 |
_______ | ||||||||||||||||
(A) | The following table presents the unusual, direct and incremental costs due to the COVID-19 pandemic. | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Minimum annual guaranteed rent in excess of concession fees, net | $ | (4 | ) | $ | 11 | $ | 12 | $ | 41 | |||||||
Vehicles damaged in overflow parking lots, net of insurance proceeds | (3 | ) | (19 | ) | (7 | ) | 14 | |||||||||
Incremental cleaning supplies to sanitize vehicles and facilities, and over flow parking for idle vehicles | — | 18 | — | 35 | ||||||||||||
Other charges | 1 | — | 7 | — | ||||||||||||
Operating expenses | $ | (6 | ) | $ | 8 | $ | 11 | $ | 87 | |||||||
Vehicle depreciation and lease charges | $ | — | $ | 1 | $ | — | $ | 1 | ||||||||
Selling, general and administrative expenses | $ | — | $ | 1 | $ | 1 | $ | 2 | ||||||||
(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 nine months ended |
Table 6
KEY METRICS CALCULATIONS
($ in millions, except as noted)
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||
International | Total | International | Total | |||||||||||||||||||||||||
Revenue per Day (RPD) | ||||||||||||||||||||||||||||
Revenue | $ | 2,403 | $ | 598 | $ | 3,001 | $ | 1,114 | $ | 420 | $ | 1,534 | ||||||||||||||||
Currency exchange rate effects | (5 | ) | (10 | ) | (15 | ) | — | — | — | |||||||||||||||||||
Revenue excluding exchange rate effects | $ | 2,398 | $ | 588 | $ | 2,986 | $ | 1,114 | $ | 420 | $ | 1,534 | ||||||||||||||||
Rental days (000's) | 28,836 | 10,720 | 39,556 | 19,289 | 9,542 | 28,831 | ||||||||||||||||||||||
RPD excluding exchange rate effects (in $'s) | $ | 83.15 | $ | 54.91 | $ | 75.50 | $ | 57.79 | $ | 43.98 | $ | 53.22 | ||||||||||||||||
Vehicle Utilization | ||||||||||||||||||||||||||||
Rental days (000's) | 28,836 | 10,720 | 39,556 | 19,289 | 9,542 | 28,831 | ||||||||||||||||||||||
Average rental fleet | 434,416 | 166,431 | 600,847 | 362,192 | 154,781 | 516,973 | ||||||||||||||||||||||
Number of days in period | 92 | 92 | 92 | 92 | 92 | 92 | ||||||||||||||||||||||
Available rental days (000's) | 39,966 | 15,312 | 55,278 | 33,322 | 14,240 | 47,562 | ||||||||||||||||||||||
Vehicle utilization | 72.2 | % | 70.0 | % | 71.6 | % | 57.9 | % | 67.0 | % | 60.6 | % | ||||||||||||||||
Per-Unit Fleet Costs | ||||||||||||||||||||||||||||
Vehicle depreciation and lease charges, net | $ | 187 | $ | 90 | $ | 277 | $ | 166 | $ | 90 | $ | 256 | ||||||||||||||||
Currency exchange rate effects | (1 | ) | (1 | ) | (2 | ) | — | — | — | |||||||||||||||||||
$ | 186 | $ | 89 | $ | 275 | $ | 166 | $ | 90 | $ | 256 | |||||||||||||||||
Average rental fleet | 434,416 | 166,431 | 600,847 | 362,192 | 154,781 | 516,973 | ||||||||||||||||||||||
Per-unit fleet costs (in $'s) | $ | 428 | $ | 536 | $ | 458 | $ | 456 | $ | 584 | $ | 494 | ||||||||||||||||
Number of months in period | 3 | 3 | 3 | 3 | 3 | 3 | ||||||||||||||||||||||
Per-unit fleet costs per month excluding exchange rate effects (in $'s) | $ | 143 | $ | 179 | $ | 153 | $ | 152 | $ | 195 | $ | 165 |
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
International | Total | International | Total | |||||||||||||||||||||||||
Revenue per Day (RPD) | ||||||||||||||||||||||||||||
Revenue | $ | 5,457 | $ | 1,287 | $ | 6,744 | $ | 2,936 | $ | 1,111 | $ | 4,047 | ||||||||||||||||
Currency exchange rate effects | (11 | ) | (79 | ) | (90 | ) | — | — | — | |||||||||||||||||||
Revenue excluding exchange rate effects | $ | 5,446 | $ | 1,208 | $ | 6,654 | $ | 2,936 | $ | 1,111 | $ | 4,047 | ||||||||||||||||
Rental days (000's) | 71,768 | 25,679 | 97,447 | 54,715 | 26,633 | 81,348 | ||||||||||||||||||||||
RPD excluding exchange rate effects (in $'s) | $ | 75.88 | $ | 47.06 | $ | 68.28 | $ | 53.67 | $ | 41.70 | $ | 49.75 | ||||||||||||||||
Vehicle Utilization | ||||||||||||||||||||||||||||
Rental days (000's) | 71,768 | 25,679 | 97,447 | 54,715 | 26,633 | 81,348 | ||||||||||||||||||||||
Average rental fleet | 369,012 | 138,439 | 507,451 | 392,737 | 170,632 | 563,369 | ||||||||||||||||||||||
Number of days in period | 273 | 273 | 273 | 274 | 274 | 274 | ||||||||||||||||||||||
Available rental days (000's) | 100,740 | 37,794 | 138,534 | 107,610 | 46,753 | 154,363 | ||||||||||||||||||||||
Vehicle utilization | 71.2 | % | 67.9 | % | 70.3 | % | 50.8 | % | 57.0 | % | 52.7 | % | ||||||||||||||||
Per-Unit Fleet Costs | ||||||||||||||||||||||||||||
Vehicle depreciation and lease charges, net | $ | 630 | $ | 239 | $ | 869 | $ | 767 | $ | 322 | $ | 1,089 | ||||||||||||||||
Currency exchange rate effects | (3 | ) | (14 | ) | (17 | ) | — | — | — | |||||||||||||||||||
$ | 627 | $ | 225 | $ | 852 | $ | 767 | $ | 322 | $ | 1,089 | |||||||||||||||||
Average rental fleet | 369,012 | 138,439 | 507,451 | 392,737 | 170,632 | 563,369 | ||||||||||||||||||||||
Per-unit fleet costs (in $'s) | $ | 1,700 | $ | 1,625 | $ | 1,679 | $ | 1,951 | $ | 1,887 | $ | 1,932 | ||||||||||||||||
Number of months in period | 9 | 9 | 9 | 9 | 9 | 9 | ||||||||||||||||||||||
Per-unit fleet costs per month excluding exchange rate effects (in $'s) | $ | 189 | $ | 181 | $ | 187 | $ | 217 | $ | 210 | $ | 215 |
_______ | |||
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
DEFINITIONS OF NON-GAAP MEASURES AND
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
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 Measures
The 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 Flow
Represents 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, COVID-19 charges and non-operational charges related to shareholder activist activity. We have revised our definition of Adjusted Free Cash Flow to exclude COVID-19 charges 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 Margin
Represents Adjusted EBITDA as a percentage of revenues.
Available Rental Days
Defined as Average Rental Fleet times the numbers of days in a given period.
Average Rental Fleet
Represents the average number of vehicles in our fleet during a given period of time.
Currency Exchange Rate Effects
Represents 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 Debt
Represents corporate debt minus cash and cash equivalents.
Net Corporate Leverage
Represents Net Corporate Debt divided by Adjusted EBITDA for the twelve months prior to the date of calculation.
Per-Unit Fleet Costs
Represents vehicle depreciation, lease charges and gain or loss on vehicles sales, divided by Average Rental Fleet.
Rental Days
Represents the total number of days (or portion thereof) a vehicle was rented during a 24-hour period.
Revenue per Day
Represents revenues divided by Rental Days.
Vehicle Utilization
Represents Rental Days divided by Available Rental Days.
Source:
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