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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Avis Budget Group Reports Third Quarter 2019 Results

October 31, 2019 GMT

PARSIPPANY, N.J., Oct. 31, 2019 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) today reported results for its third quarter ended September 30, 2019.

Third Quarter 2019 over Third Quarter 2018 Highlights:

-- Revenues of $2.8 billion were comparable to prior year, up 1% excluding currency exchange rate movements -- Net income was $189 million or $2.50 per diluted share and Adjusted net income was $223 million or $2.96 per diluted share -- Adjusted EBITDA increased 1%, excluding a negative impact of 2% from currency exchange rate movements -- Per-Unit Fleet Costs improved 6% excluding exchange rate effects -- Repurchased approximately 2.1 million shares for a total of $59 million during the quarter

Total Company

Third quarter revenues increased 1% compared to prior year excluding a $44 million impact from currency exchange rate movements, primarily due to a 2% increase in Rental Days, partially offset by a 1% decrease in Revenue per Day. Per-Unit Fleet Costs, excluding exchange rate effects, improved by 6% year-over-year and utilization improved 20 basis points. For the quarter, net income was $189 million, or $2.50 per diluted share. Adjusted EBITDA was $471 million including a $9 million impact from currency exchange rate movements and Adjusted net income was $223 million, or $2.96 per diluted share.

“Our Adjusted EBITDA margin was more than 17% for the quarter. Our Americas segment had record Adjusted EBITDA performance. Our operations achieved record Net Promoter Scores for the second quarter in a row, showing the impact of our efforts to improve our customer experience,” said Larry De Shon, Avis Budget Group President and Chief Executive Officer. “In addition, we made further progress on our strategic partnerships with Uber, Lyft and Via where we increased our ride-hail fleet by nearly 60% from prior quarter. We remain focused on improving our core rental car business, while driving innovation to continue our transformation into a mobility service provider.”

Americas Segment

Third quarter revenues increased 1% to a record $1,868 million compared to prior year primarily due to a 3% increase in Rental Days, partially offset by a 2% decrease in Revenue per Day. Per-Unit Fleet Costs improved by 9%, with utilization improving 30 basis points. As a result, Adjusted EBITDA increased to a record $321 million.

Joe Ferraro, President, Americas commented, “Positive revenue growth in the quarter, along with strong ancillary performance and corporate account volume growth contributed to our success. Also, stable residual values and a record 70% of our vehicle dispositions through alternative channels drove fleet cost improvements. Altogether, this generated all time record revenue and Adjusted EBITDA.”

International Segment

Third quarter revenues decreased 1% compared to prior year, excluding a 4% negative impact from currency exchange rate movements, primarily due to a 1% decrease in Rental Days. Revenue per Day, excluding exchange rate effects improved compared to prior year. Per-Unit Fleet Costs were up 1%, excluding exchange rate effects, and utilization was flat. As a result, Adjusted EBITDA was flat to prior year, excluding a $9 million negative impact from currency exchange rate movements, primarily due to mitigating cost reduction actions.

“We focused on higher rate rentals in a challenging environment to improve our pricing, and we were able to increase our customer approval ratings to record highs,” said Keith Rankin, President, International.

Capital Allocation and Liquidity

In September 2019, we called $75 million of our 5.5% Senior Notes due 2023 for early redemption, which we paid in October 2019 with cash on hand. We also repurchased approximately 2.1 million shares during third quarter 2019, for approximately $59 million under our share repurchase program.

As of September 30, 2019, our corporate debt was approximately $3,483 million and cash and cash equivalents totaled $615 million, bringing net corporate debt to $2,868 million, and our net corporate leverage ratio to 3.6x.

Weighted average diluted shares outstanding were 75.7 million in the quarter compared to 79.5 million in the prior year, a 5% year-over-year reduction.

Investor Conference Call

We will host a conference call to discuss third quarter results and its outlook on November 1, 2019, 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 13695307.

Outlook

Our full-year 2019 outlook includes non-GAAP financial measures and excludes the effect of future changes in currency exchange rates. We believe that it is impracticable to provide a reconciliation to the most comparable GAAP measures due to the forward-looking nature of these forecasted Adjusted earnings measures and the degree of uncertainty associated with forecasting the reconciling items and amounts. We further believe that providing estimates of the amounts that would be required to reconcile the forecasted adjusted measures to forecasted GAAP measures would imply a degree of precision that would be confusing or misleading to investors. The after-tax effect of such reconciling items could be significant to our future quarterly or annual results.

2019 guidance:

$ millions * 2019 Estimates ------------------------------------------------- --------------- Revenues $9,000 - $9,200 Adjusted EBITDA $750 - $800 Non-vehicle related depreciation and amortization $200 - $215 Interest expense related to corporate debt, net $180 - $190 Adjusted pretax income $350 - $450 Adjusted net income $260 - $320 Adjusted diluted earnings per share $3.35 - $4.20 Capital expenditures $230 - $250 Cash taxes, vehicle programs and other $70 - $120 Adjusted free cash flow $250 - $300 ------------------------------------------------- ---------------

* Excluding Adjusted diluted earnings per share.Non-vehicle related depreciation and amortization excludes acquisition-related amortization expense.Interest expense related to corporate debt, net excludes early extinguishment of debt.

$ change millions (better)/worse vs prior year ---------------------------------------- ------------- Vehicle interest expense (rate impact) $25 - $35 Adjusted EBITDA net currency translation $15 - $25 ---------------------------------------- -------------

Americas

% change vs prior year ------------------------------ ------------- -- Rental Days 1.0% - 2.0 % Revenue per Day 0.0% - 1.0 % Per-Unit Fleet Costs per Month (6.0%) - (8.0 %) ------------------------------ ------------- --

Revenue per Day and Per-Unit Fleet Costs per Month exclude exchange rate effects.

International

% change vs prior year ------------------------------ ------------- -- Rental Days 2.0% - 3.0 % Revenue per Day (1.0%) - (2.0 %) Per-Unit Fleet Costs per Month 1.0% - 2.0 % ------------------------------ ------------- --

Revenue per Day and Per-Unit Fleet Costs per Month exclude exchange rate effects.

About Avis Budget Group

Avis Budget Group, Inc. is a leading global provider of mobility solutions, both through its Avis and Budget brands, which have more than 11,000 rental locations in approximately 180 countries around the world, and through its Zipcar brand, which is the world’s leading car sharing network with more than one million members. Avis Budget Group operates most of its car rental offices in North America, Europe and Australasia directly, and operates primarily through licensees in other parts of the world. Avis Budget Group has approximately 30,000 employees and 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, future fleet costs, acquisition synergies, cost-saving initiatives, cash flows and future share repurchases 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 high level of competition in the mobility industry, changes in our fleet costs 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, the financial condition of the manufacturers that supply our rental vehicles which could affect their ability to perform their obligations under our repurchase and/or guaranteed depreciation arrangements, any change in economic conditions generally, particularly during our peak season and/or in key market segments, any change in travel demand, including changes in airline passenger traffic, any occurrence or threat of terrorism, any changes to the cost or supply of fuel, risks related to acquisitions or integration of acquired businesses, risks associated with litigation, 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 strategy for growth and cost savings. 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 December 31, 2018 and in other filings and furnishings made by the Company with the Securities and Exchange Commission (the “SEC”) from time to time. The Company undertakes 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 and Adjusted free cash flow, as well as other financial measures that exclude certain items that are not considered generally accepted accounting principles (“GAAP”) measures as defined under SEC rules. Important information regarding such measures is contained on Table 1, Table 4, Table 5 and Appendix I of this release. The Company and its management believe that these non-GAAP measures are useful to investors in measuring the comparable results of the Company period-over-period. 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) and diluted earnings (loss) per share, respectively. Foreign currency translation effects on the Company’s 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.

Share Repurchase Program

The Company’s share repurchases may occur through open market purchases or trading plans pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934. The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements and other factors. The repurchase program may be suspended, modified or discontinued at any time without prior notice. The repurchase program has no set expiration or termination date.

Tables Follow

Table 1

Avis Budget Group, Inc.SUMMARY DATA SHEET(In millions, except per share data)

Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 % 2019 2018 % Change Change ------------------ ----------------- ------ -------- -------- ------ Income Statement and Other Items Revenues $ 2,753 $ 2,778 (1 %) $ 7,010 $ 7,074 (1 %) Income before income taxes 328 355 (8 %) 273 264 3 % Net income 189 213 (11 %) 160 152 5 % Earnings per share - diluted 2.50 2.68 (7 %) 2.10 1.88 12 % Adjusted Earnings Measures (non-GAAP) (A) Adjusted EBITDA 471 476 (1 %) 645 639 1 % Adjusted pretax income 373 384 (3 %) 355 356 0 % Adjusted net income 223 265 (16 %) 225 251 (10 %) Adjusted earnings per share - 2.96 3.33 (11 %) 2.95 3.10 (5 %) diluted As of September 30, 2019 December 31, 2018 ------------------ ----------------- Balance Sheet Items Cash and cash equivalents $ 615 $ 615 Vehicles, net 12,752 11,474 Debt under vehicle programs 11,592 10,232 Corporate debt 3,483 3,551 Stockholders’ equity 495 414

Segment Results Three Months Ended September Nine Months Ended September 30, 30, 2019 2018 % 2019 2018 % Change Change --------- --------- ------ --------- --------- ------ Revenues Americas $ 1,868 $ 1,844 1 % $ 4,822 $ 4,782 1 % International 885 934 (5 %) 2,188 2,292 (5 %) Corporate and Other — — n/m — — n/m Total Company $ 2,753 $ 2,778 (1 %) $ 7,010 $ 7,074 (1 %) - ----- - - ----- - - ----- - - ----- - Adjusted EBITDA Americas $ 321 $ 313 3 % $ 508 $ 435 17 % International 169 178 (5 %) 187 252 (26 %) Corporate and Other (19 ) (15 ) n/m (50 ) (48 ) n/m Total Company $ 471 $ 476 (1 %) $ 645 $ 639 1 % - ----- - - ----- - - ----- - - ----- -

__________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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 -------- ---------------------- -------- --------------------- Revenues $ 2,753 $ 2,778 $ 7,010 $ 7,074 - ----- - ----- -------------- - ----- - ----- ------------- Expenses Operating 1,291 1,294 3,534 3,561 Vehicle depreciation and lease charges, net 551 587 1,579 1,693 Selling, general and administrative 350 336 947 953 Vehicle interest, net 90 85 261 237 Non-vehicle related depreciation and 62 62 195 190 amortization Interest expense related to corporate debt, net: Interest expense 49 44 139 139 Early extinguishment of debt 10 — 10 5 Restructuring and other related charges 22 4 66 14 Transaction-related costs, net — 11 6 18 Total expenses 2,425 2,423 6,737 6,810 ------- ------- -------------- ------- ------- ------------- Income before income taxes 328 355 273 264 Provision for income taxes 139 142 113 112 ------- ------- -------------- ------- ------- ------------- Net income $ 189 $ 213 $ 160 $ 152 - ----- - ----- -------------- - ----- - ----- ------------- Earnings per share - diluted Basic $ 2.52 $ 2.71 $ 2.12 $ 1.90 Diluted $ 2.50 $ 2.68 $ 2.10 $ 1.88 Weighted average shares outstanding Basic 75.2 78.8 75.6 80.1 Diluted 75.7 79.5 76.2 81.0

Table 3

Avis Budget Group, Inc.KEY METRICS SUMMARY

Three Months Ended September Nine Months Ended September 30, 30, 2019 2018 % Change 2019 2018 % Change --------- --------- --------- --------- --------- --------- Americas Rental Days (000’s) 31,374 30,413 3 % 85,249 84,085 1 % Revenue per Day, excluding exchange rate $ 59.61 $ 60.64 (2 %) $ 56.70 $ 56.87 0 % effects (A) Average Rental Fleet 469,863 457,066 3 % 440,493 436,074 1 % Vehicle Utilization 72.6 % 72.3 % 30 bps 70.9 % 70.6 % 30 bps Per-Unit Fleet Costs per Month, excluding $ 267 $ 294 (9 %) $ 284 $ 313 (9 %) exchange rate effects (A) International Rental Days (000’s) 18,056 18,216 (1 %) 45,389 44,105 3 % Revenue per Day, excluding exchange rate $ 51.33 $ 51.28 0 % $ 51.17 $ 51.96 (2 %) effects (A) Average Rental Fleet 263,420 265,939 (1 %) 229,892 224,524 2 % Vehicle Utilization 74.5 % 74.5 % 0 bps 72.3 % 72.0 % 30 bps Per-Unit Fleet Costs per Month, excluding $ 233 $ 231 1 % $ 234 $ 231 1 % exchange rate effects (A) Total Rental Days (000’s) 49,430 48,629 2 % 130,638 128,190 2 % Revenue per Day, excluding exchange rate $ 56.59 $ 57.13 (1 %) $ 54.78 $ 55.18 (1 %) effects (A) Average Rental Fleet 733,283 723,005 1 % 670,385 660,598 1 % Vehicle Utilization 73.3 % 73.1 % 20 bps 71.4 % 71.1 % 30 bps Per-Unit Fleet Costs per Month, excluding $ 255 $ 271 (6 %) $ 267 $ 285 (6 %) exchange rate effects (A) _______ 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 September Nine Months Ended September 30, 30, 2019 2018 % Change 2019 2018 % Change --------- --------- --------- --------- --------- --------- Americas Revenue per Day $ 59.56 $ 60.64 (2 %) $ 56.57 $ 56.87 (1 %) Per-Unit Fleet Costs per Month $ 267 $ 294 (9 %) $ 283 $ 313 (10 %) International Revenue per Day $ 49.04 $ 51.28 (4 %) $ 48.20 $ 51.96 (7 %) Per-Unit Fleet Costs per Month $ 222 $ 231 (4 %) $ 221 $ 231 (4 %) Total Revenue per Day $ 55.71 $ 57.13 (2 %) $ 53.66 $ 55.18 (3 %) Per-Unit Fleet Costs per Month $ 251 $ 271 (7 %) $ 262 $ 285 (8 %)

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

Nine Months Ended September 30, 2019 --------- Operating Activities Net cash provided by operating activities $ 1,931 - ----- - Investing Activities Net cash used in investing activities exclusive of vehicle programs (159 ) Net cash used in investing activities of vehicle programs (2,879 ) Net cash used in investing activities (3,038 ) ------- - Financing Activities Net cash provided by (used in) financing activities exclusive of vehicle programs (96 ) Net cash provided by (used in) financing activities of vehicle programs 1,186 Net cash provided by (used in) financing activities 1,090 ------- - Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash (10 ) ------- - Net change in cash and cash equivalents, program and restricted cash (27 ) Cash and cash equivalents, program and restricted cash, beginning of period (A) 735 Cash and cash equivalents, program and restricted cash, end of period (B) $ 708 - ----- -

_____(A) Consists of cash and cash equivalents of $615 million, program cash of $115 million and restricted cash of $5 million.(B) Consists of cash and cash equivalents of $615 million, program cash of $89 million and restricted cash of $4 million.

CONSOLIDATED SCHEDULE OF ADJUSTED FREE CASH FLOWS (C)

Nine Months Ended Septembe r 30, 2019 ------- Income before income taxes $ 273 Add-back of non-vehicle related depreciation and amortization 195 Add-back of debt extinguishment costs 10 Add-back of restructuring and other related costs 66 Add-back of transaction-related costs 6 Working capital and other (48 ) Capital expenditures (178 ) Tax payments, net of refunds (69 ) Vehicle programs and related(D) (139 ) ----- - Adjusted free cash flow 116 Acquisition and related payments, net of acquired cash (E) (45 ) Dispositions, net of tax payments (F) 64 Borrowings, net of debt repayments (25 ) Restructuring and other related payments (25 ) Transaction-related payments (10 ) Repurchases of common stock (65 ) Change in program cash (23 ) Change in restricted cash (2 ) Foreign exchange effects, financing costs and other (12 ) Net change in cash and cash equivalents, program and restricted cash (per above) $ (27 ) - --- -

_____(C) The Company has revised its definition of Adjusted free cash flow to exclude payments for restructuring and other related charges. Our calculation of Adjusted free cash flow may not be comparable to the calculation of similarly-titled measures used by other companies. See Appendix I for the definition of Adjusted free cash flow.(D) Includes vehicle-backed borrowings (repayments) that are incremental to amounts required to fund incremental (reduced) vehicle and vehicle-related assets.(E) Excludes $26 million of vehicles purchased as a part of North America licensee acquisitions, which were financed through incremental vehicle-backed borrowings, and includes equity method investment of $3 million in our licensee in Greece.(F) Proceeds received on the sale of our equity method investment in Anji Car Rental & Leasing Company Limited (“Anji”), net of cross-border withholding taxes of $4 million.

Table 4 (page 2 of 2)

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW

Nine Months Ended September 30, 2019 --------- Net cash provided by operating activities (per above) $ 1,931 Investing activities of vehicle programs (2,879 ) Financing activities of vehicle programs 1,186 Capital expenditures (178 ) Proceeds received on sale of assets and nonmarketable equity securities 19 Change in program cash 23 Change in restricted cash 2 Acquisition and disposition-related payments (23 ) Restructuring and other related payments 25 Transaction-related payments 10 ------- - Adjusted free cash flow (per above) $ 116 - ----- -

Table 5 (page 1 of 2)

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, income before income taxes and diluted earnings per share to Adjusted EBITDA and our Adjusted earnings measures.

Three Months Ended September 30, Reconciliation of net income to Adjusted EBITDA: 2019 2018 ------- ----------------------- Net income $ 189 $ 213 Provision for income taxes 139 142 Income before income taxes 328 355 Add certain items: Restructuring and other related charges 22 4 Acquisition-related amortization expense 13 14 Early extinguishment of debt 10 — Transaction-related costs, net — 11 Adjusted pretax income 373 384 Add: Non-vehicle related depreciation and amortization (excluding 49 48 acquisition-related amortization expense) Interest expense related to corporate debt, net (excluding early 49 44 extinguishment of debt) Adjusted EBITDA $ 471 $ 476 - ---- - ---- ---------------- Reconciliation of net income to adjusted net income: Net income $ 189 $ 213 Add certain items, net of tax: Restructuring and other related charges 17 3 Acquisition-related amortization expense 10 11 Early extinguishment of debt 7 — Transaction-related costs, net — 8 Income tax provision from the Tax Act (A) — 30 Adjusted net income $ 223 $ 265 - ---- - ---- ---------------- Earnings per share - Diluted $ 2.50 $ 2.68 - ---- - ---- ---------------- Adjusted diluted earnings per share $ 2.96 $ 3.33 - ---- - ---- ---------------- Shares used to calculate Adjusted diluted earnings per share 75.7 79.5 ------ ------ ----------------

_____(A) As a result of the Tax Act, the adjustment of incremental tax expense related to cumulative foreign earnings initially recorded in the fourth quarter of 2017.

Table 5 (page 2 of 2)

Nine Months Ended September 30, Reconciliation of net income to Adjusted EBITDA: 2019 2018 -------- --------------------- Net income $ 160 $ 152 Provision for income taxes 113 112 Income before income taxes 273 264 Add certain items: Restructuring and other related charges 66 14 Acquisition-related amortization expense 44 46 Early extinguishment of debt 10 5 Transaction-related costs, net 6 18 Non-operational charges related to shareholder activist activity (A) — 9 Gain on sale of equity method investment in Anji (B) (44 ) — ------ - ------ -------------- Adjusted pretax income 355 356 Add: Non-vehicle related depreciation and amortization (excluding 151 144 acquisition-related amortization expense) Interest expense related to corporate debt, net (excluding early 139 139 extinguishment of debt) Adjusted EBITDA $ 645 $ 639 - ---- - - ---- -------------- Reconciliation of net income to adjusted net income: Net income $ 160 $ 152 Add certain items, net of tax: Restructuring and other related charges 51 11 Acquisition-related amortization expense 32 33 Early extinguishment of debt 7 4 Transaction-related costs, net 5 14 Non-operational charges related to shareholder activist activity — 7 Income tax provision from the Tax Act (C) — 30 Gain on sale of equity method investment in Anji (30 ) — ------ - ------ -------------- Adjusted net income $ 225 $ 251 - ---- - - ---- -------------- Earnings per share - Diluted $ 2.10 $ 1.88 - ---- - - ---- -------------- Adjusted diluted earnings per share $ 2.95 $ 3.10 - ---- - - ---- -------------- Shares used to calculate Adjusted diluted earnings per share 76.2 81.0 ------ - ------ --------------

_____(A) Reported within selling, general and administrative expenses in our Consolidated Statements of Operations.(B) Reported within operating expenses in our Consolidated Statements of Operations.(C) As a result of the Tax Act, the adjustment of incremental tax expense related to cumulative foreign earnings initially recorded in the fourth quarter of 2017.

Table 6

Avis Budget Group, Inc.KEY METRICS CALCULATIONS($ in millions, except as noted)

Three Months Ended September Three Months Ended September 30, 2019 30, 2018 Americas Internatio Total Americas Internatio Total nal nal --------- --------- --------- --------- --------- --------- Revenue per Day (RPD) Revenue $ 1,868 $ 885 $ 2,753 $ 1,844 $ 934 $ 2,778 Currency exchange rate effects 2 42 44 — — — ------- - ------- - ------- - ------- - ------- - ------- - Revenue excluding exchange rate effects $ 1,870 $ 927 $ 2,797 $ 1,844 $ 934 $ 2,778 Rental days (000′s) 31,374 18,056 49,430 30,413 18,216 48,629 RPD excluding exchange rate effects (in $’s) $ 59.61 $ 51.33 $ 56.59 $ 60.64 $ 51.28 $ 57.13 - ----- - - ----- - - ----- - - ----- - - ----- - - ----- - Vehicle Utilization Rental days (000’s) 31,374 18,056 49,430 30,413 18,216 48,629 Average rental fleet 469,863 263,420 733,283 457,066 265,939 723,005 Number of days in period 92 92 92 92 92 92 ------- - ------- - ------- - ------- - ------- - ------- - Available rental days (000′s) 43,227 24,235 67,462 42,050 24,466 66,516 Vehicle utilization 72.6 % 74.5 % 73.3 % 72.3 % 74.5 % 73.1 % Per-Unit Fleet Costs Vehicle depreciation and lease charges, net $ 376 $ 175 $ 551 $ 403 $ 184 $ 587 Currency exchange rate effects 1 9 10 — — — ------- - ------- - ------- - ------- - ------- - ------- - $ 377 $ 184 $ 561 $ 403 $ 184 $ 587 Average rental fleet 469,863 263,420 733,283 457,066 265,939 723,005 ------- - ------- - ------- - ------- - ------- - ------- - Per-unit fleet costs (in $’s) $ 801 $ 698 $ 764 $ 883 $ 693 $ 813 Number of months in period 3 3 3 3 3 3 ------- - ------- - ------- - ------- - ------- - ------- - Per-unit fleet costs per month excluding $ 267 $ 233 $ 255 $ 294 $ 231 $ 271 exchange rate effects (in $’s) - ----- - - ----- - - ----- - - ----- - - ----- - - ----- -

Nine Months Ended September 30, Nine Months Ended September 30, 2019 2018 Americas Internatio Total Americas Internatio Total nal nal --------- --------- --------- --------- --------- --------- Revenue per Day (RPD) Revenue $ 4,822 $ 2,188 $ 7,010 $ 4,782 $ 2,292 $ 7,074 Currency exchange rate effects 11 135 146 — — — ------- - ------- - ------- - ------- - ------- - ------- - Revenue excluding exchange rate effects $ 4,833 $ 2,323 $ 7,156 $ 4,782 $ 2,292 $ 7,074 Rental days (000′s) 85,249 45,389 130,638 84,085 44,105 128,190 RPD excluding exchange rate effects (in $’s) $ 56.70 $ 51.17 $ 54.78 $ 56.87 $ 51.96 $ 55.18 - ----- - - ----- - - ----- - - ----- - - ----- - - ----- - Vehicle Utilization Rental days (000’s) 85,249 45,389 130,638 84,085 44,105 128,190 Average rental fleet 440,493 229,892 670,385 436,074 224,524 660,598 Number of days in period 273 273 273 273 273 273 ------- - ------- - ------- - ------- - ------- - ------- - Available rental days (000′s) 120,255 62,760 183,015 119,048 61,295 180,343 Vehicle utilization 70.9 % 72.3 % 71.4 % 70.6 % 72.0 % 71.1 % Per-Unit Fleet Costs Vehicle depreciation and lease charges, net $ 1,123 $ 456 $ 1,579 $ 1,226 $ 467 $ 1,693 Currency exchange rate effects 2 29 31 — — — ------- - ------- - ------- - ------- - ------- - ------- - $ 1,125 $ 485 $ 1,610 $ 1,226 $ 467 $ 1,693 Average rental fleet 440,493 229,892 670,385 436,074 224,524 660,598 ------- - ------- - ------- - ------- - ------- - ------- - Per-unit fleet costs (in $’s) $ 2,554 $ 2,108 $ 2,401 $ 2,813 $ 2,081 $ 2,564 Number of months in period 9 9 9 9 9 9 ------- - ------- - ------- - ------- - ------- - ------- - Per-unit fleet costs per month excluding $ 284 $ 234 $ 267 $ 313 $ 231 $ 285 exchange rate effects (in $’s) - ----- - - ----- - - ----- - - ----- - - ----- - - ----- -

_____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 EBITDAThe 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 legal matters, non-operational charges related to shareholder activist activity, gain on sale of equity method investment in Anji and income taxes. Net charges for unprecedented personal-injury legal matters and gain on sale of equity method investment in Anji are recorded within operating expenses in our consolidated condensed statement of operations. Non-operational charges related to shareholder activist activity include third party advisory, legal and other professional service fees and are recorded within selling, general and administrative expenses in our consolidated results of operations. We have revised our definition of Adjusted EBITDA to exclude the gain on sale of equity method investment in Anji. We did not revise prior years’ Adjusted EBITDA amounts because there were no gains similar in nature to this gain. Adjusted EBITDA includes stock-based compensation expense and deferred financing fee amortization totaling $11 million and $12 million in third quarter 2019 and 2018, respectively, and totaling $34 million and $32 million in the nine months ended September 30, 2019 and 2018, 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 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 other certain 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 and non-operational charges related to shareholder activist activity. We have revised our definition of Adjusted Free Cash Flow to exclude restructuring and other related charges and have revised prior years’ Adjusted Free Cash Flow amounts accordingly. 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.

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.

Contacts Media Contact: Katie McCall PR@avisbudget.com Investor Contact: David Calabria IR@avisbudget.com