Avis Budget Group Reports Record 2012 Results

Avis Budget Group Reports Record 2012 Results

  *For the year, revenue grew to $7.4 billion, a 25% increase from 2011.
  *Adjusted EBITDA increased 38% to $840 million in 2012, excluding certain
    items, the highest level in the Company's history.
  *Full-year pretax income was $463 million, excluding certain items, and
    $300 million on a reported basis.
  *Diluted earnings per share increased 47%, excluding certain items, to
    $2.43.
  *Company issues estimates of its full-year 2013 results.

PARSIPPANY, N.J., Feb. 13, 2013 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc.
(Nasdaq:CAR) today reported results for its fourth quarter and year ended
December 31, 2012. The Company reported full-year revenue of $7.4 billion, an
increase of 25% compared with 2011. Excluding certain items, Adjusted EBITDA
increased 38% to $840 million and pretax income increased to $463 million. The
Company's Adjusted EBITDA margin expanded by more than 100 basis points to
11.4% in 2012, excluding certain items. Reported pretax income of $300 million
was impacted by acquisition-related expenses and debt extinguishment costs as
well as restructuring charges primarily in its International segment.

For the fourth quarter, the Company reported revenue of $1.7 billion, a 4%
increase compared with the prior-year fourth quarter. Excluding certain items,
Adjusted EBITDA increased 22% to $78 million. The Company reported a pretax
loss of $11 million in the traditionally slower fourth quarter, excluding
certain items, and a GAAP pretax loss of $63 million primarily due to
acquisition-related expenses, debt extinguishment costs and restructuring
initiatives.

"We delivered record results in 2012, aided by the robust used car market in
the first half of the year. Our results reflected organic revenue growth
augmented by the additions of Avis Europe and Apex, continued margin
expansion, and record earnings per share, excluding certain items," said
Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer. "As
we look forward, not only are we looking to deliver solid results in 2013; we
have also set our sights on reaching $1 billion of Adjusted EBITDA by 2015 by
focusing relentlessly on profitable growth, enhancing our customers'
experience and driving efficiencies throughout our organization."

Executive Summary

Revenue increased 4% in fourth quarter 2012 compared to fourth quarter 2011
primarily due to a 6% increase in rental day volume and a 2% decrease in
pricing. Ancillary revenues, excluding gas and customer recoveries, increased
8% driven by higher sales of insurance products and emergency roadside
protection. Fourth quarter Adjusted EBITDA, excluding certain items, increased
22% to $78 million driven by strong growth in North America.

Full-year revenue increased 25% to $7.4 billion, primarily due to the
acquisition of Avis Europe in October 2011. The increase was driven by 26%
growth in rental days and a 33% increase in ancillary revenues, partially
offset by a 3% decline in pricing. Excluding the acquisition of Avis Europe,
revenues increased 3% during 2012, primarily due to a 5% increase in rental
days.

Business Segment Discussion

The following discussion of fourth quarter operating results focuses on
revenue and Adjusted EBITDA for each of our operating segments.Revenue and
Adjusted EBITDA are expressed in millions.

North America
(Consisting of the Company's U.S. car rental and Canadian vehicle rental
operations)
                                                           
                      2012                2011               % change
Revenue                $1,060            $1,011           5%
Adjusted EBITDA        $47               $16              194%

Revenue increased 5% primarily due to a 5% increase in volume, while pricing
declined less than 1%.Pricing improved over the course of the quarter, and
was up 1% in December 2012 compared to December 2011.Adjusted EBITDA
increased $31 million primarily due to higher revenue, a 4% decline in
per-unit fleet costs and lower vehicle interest costs.Adjusted EBITDA
includes $2 million of restructuring costs in fourth quarter 2011.

International
(Consisting of the Company's international vehicle rental operations)
                                                   
                      2012           2011           % change
Revenue                 $550         $532         3%
Adjusted EBITDA         $24          $37          (35%)

Revenue increased 3% primarily due to a 6% increase in volume and a 5%
decrease in pricing partially due to the strong growth of Budget in Europe and
the inclusion of New Zealand-based Apex Car Rentals, which was acquired in
October 2012. Adjusted EBITDA declined $13 million compared to fourth quarter
2011, but increased $2 million excluding restructuring costs and $7 million of
unfavorable currency effects.Adjusted EBITDA includes $11 million of
restructuring costs in fourth quarter 2012 versus $3 million in fourth quarter
2011.

Truck Rental
(Consisting of the Company's U.S. truck rental operations)
                                          
                     2012        2011       % change
Revenue               $87       $86      1%
Adjusted EBITDA       $1        $9       (89%)

Truck rental revenue increased 1% primarily due to a 2% increase in volume, a
4% decrease in pricing and a 5% increase in ancillary revenue.Adjusted EBITDA
declined $8 million due to higher fleet and fleet maintenance costs.Adjusted
EBITDA includes $1 million of restructuring costs in fourth quarter 2012.

Other Items

  *Zipcar Acquisition – On January 2, we announced that we have entered into
    a definitive agreement to acquire Zipcar, Inc., the world's leading car
    sharing network, for $12.25 per share in cash, or approximately $500
    million in aggregate.The transaction is subject to approval by Zipcar
    shareholders and other customary closing conditions, and is expected to be
    completed in March or April 2013.We expect to generate $50 to $70
    million in annual synergies as a result of the transaction.
    
  *Corporate Debt Repayment – In the fourth quarter, the Company utilized
    available cash and the proceeds of its issuance of $300 million principal
    amount of 4.875% senior notes due 2017 to retire $16 million of its
    convertible notes due 2014 and all $325 million of its outstanding 7.75%
    senior notes due 2016.
    
  *Annual Stockholders Meeting – We have scheduled our 2013 Annual Meeting of
    Stockholders for May 22, 2013 in Wilmington, Del.Stockholders of record
    as of the close of business on March 25, 2013 will be entitled to vote at
    the annual meeting.

Outlook

The Company today published estimates of its full-year 2013 results.For
comparison purposes, these estimates exclude the effects of our pending
acquisition of Zipcar.

The Company expects its full-year 2013 revenue to be approximately $7.6 to
$7.8 billion, a 3% to 6% increase compared to 2012.The Company expects its
Adjusted EBITDA to be approximately $725 million to $825 million, excluding
certain items, a decline of 2% to 14%, reflecting increased revenue and the
anticipated normalization of per-unit fleet costs.

The Company expects per-unit fleet costs in its North America segment to
increase approximately 15% to 20%, to roughly $275 to $290 per month in
2013.Total Company fleet costs are also expected to be $275 to $290 per unit
per month in 2013, an increase of approximately 11% to 17% compared to 2012.

The Company expects interest expense related to corporate debt to be
approximately $230 to $235 million, a decline of $30 to $35 million compared
to 2012.The Company also expects that its 2013 non-vehicle depreciation and
amortization expense (excluding the amortization of intangible assets related
to the acquisition of Avis Europe) will be approximately $125 to $130
million.As a result, the Company estimates that its pretax income will be
approximately $360 million to $470 million, excluding certain items.

The Company expects that its effective tax rate in 2013 will be approximately
37% to 38%, excluding items, and that its diluted share count will be
approximately 120 million.Based on these expectations, the Company estimates
that its 2013 diluted earnings per share, excluding certain items, will be
approximately $1.90 to $2.45.

The Company is continuing its award-winning efforts to reduce costs and
enhance productivity through its Performance Excellence process-improvement
initiative.The Company estimates that these efforts generated more than $50
million in benefits in 2012 compared to 2011 and expects that such initiatives
will provide incremental benefits of more than $50 million in 2013, including
roughly $10 million in the Company's European operations.

Investor Conference Call

Avis Budget Group will host a conference call to discuss fourth quarter
results on February 14, 2013, at 8:30 a.m. (ET).Investors may access the call
live at ir.avisbudgetgroup.com or by dialing (415) 228-4734 and providing the
access code "Avis Budget."Investors are encouraged to dial in approximately
10 minutes prior to the call.A web replay will be available at
ir.avisbudgetgroup.com following the call.A telephone replay will be
available from 11:00 a.m. (ET) on February 14 until 8:00 p.m. (ET) on February
28 at (203) 369-1542, access code: "Avis Budget."

About Avis Budget Group, Inc.

Avis Budget Group, Inc. is a leading global provider of vehicle rental
services through its Avis and Budget brands, with more than 10,000 rental
locations in approximately 175 countries around the world.Avis Budget Group
operates most of its car rental offices in North America, Europe and Australia
directly, and operates primarily through licensees in other parts of the
world.Avis Budget Group has approximately 28,000 employees and is
headquartered in Parsippany, N.J. Formore information, visit
www.avisbudgetgroup.com.

The Avis Budget Group, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=8891

Forward-Looking Statements

Certain statements in this press release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995.Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements.Statements preceded by, followed by or that
otherwise include the words "believes", "expects", "anticipates", "intends",
"projects", "estimates", "plans", "may increase", "forecast" and similar
expressions or future or conditional verbs such as "will", "should", "would",
"may" and "could" are based upon then current assumptions and expectations and
are generally forward-looking in nature and not historical facts.Any
statements that refer to outlook, expectations or other characterizations of
future events, circumstances or results, including all statements related to
future results, future fleet costs, acquisition synergies and cost-saving
initiatives are also forward-looking statements.

There can be no assurance that the proposed acquisition of Zipcar will occur
as currently contemplated, or at all, or that the expected benefits from the
transaction will be realized on the timetable currently contemplated, or at
all.Additional risks and uncertainties relating to the proposed acquisition
of Zipcar include, but are not limited to, uncertainties as to the
satisfaction of closing conditions to the acquisition, including timing and
receipt of regulatory approvals, receipt of approval by the shareholders of
Zipcar, the respective parties' performance of their obligations under the
merger agreement relating to the acquisition, the status of capital markets,
including availability and cost of capital, and other factors affecting the
execution of the transaction.

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 Company's ability to promptly and effectively
integrate the businesses of Zipcar and Avis Budget (if and when the
acquisition of Zipcar is completed), any change in economic conditions
generally, particularly during our peak season or in key market segments, the
high level of competition in the vehicle rental industry, a change in our
fleet costs as a result of a change in the cost for new vehicles 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
impact their ability to perform their obligations under our repurchase and/or
guaranteed depreciation arrangements, any reduction in travel demand,
including any reduction in airline passenger traffic, any occurrence or threat
of terrorism, a significant increase in interest rates or borrowing costs, our
ability to obtain financing for our operations, including the funding of our
vehicle fleet via the asset-backed securities market, any changes to the cost
or supply of fuel, any fluctuations related to the mark-to-market of
derivatives which hedge our exposure to exchange rates, interest rates and
fuel costs, the Company's ability to meet the financial and other covenants
contained in the agreements governing our indebtedness, risks associated with
litigation, regulation or governmental or regulatory inquiries or
investigations involving the Company, and the Company's ability to accurately
estimate its future results and implement its strategy for cost savings and
growth.Other unknown or unpredictable factors could also have material
adverse effects on Avis Budget Group's performance or achievements.In light
of these risks, uncertainties, assumptions and factors, the forward-looking
events discussed in this press release may not occur.You are cautioned not to
place undue reliance on these forward-looking statements, which speak only as
of the date stated, or if no date is stated, as of the date of this press
release.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, 2011, included under headings such as
"Forward-Looking Statements", "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations", its most recently
filed Form 10-Q, and in other filings and furnishings made by the Company with
the SEC from time to time.Except for the Company's ongoing obligations to
disclose material information under the federal securities laws, the Company
undertakes no obligation to release publicly any revisions to any
forward-looking statements, to report events or to report the occurrence of
unanticipated events unless required by law.

This release includes certain financial measures such as Adjusted EBITDA,
pretax income and diluted earnings per share, which exclude certain items
under each measure and are not considered generally accepted accounting
principles ("GAAP") measures as defined under SEC rules.Important information
regarding such measures is contained on Table 1 and Table 5 to this
release.The Company believes that these non-GAAP measures are useful in
measuring the comparable results of the Company period-over-period.The GAAP
measures most directly comparable to Adjusted EBITDA, pretax income and
diluted earnings per share, excluding certain items under each measure, are
net income, pretax income and diluted earnings per share.Because of the
forward-looking nature of the Company's forecasted non-GAAP Adjusted EBITDA,
pretax income and diluted earnings per share, excluding certain items,
specific quantifications of the amounts that would be required to reconcile
forecasted net income, pretax income and diluted earnings per share are not
available.The Company believes that there is a degree of volatility with
respect to certain of the Company's GAAP measures which preclude the Company
from providing accurate forecasted GAAP to non-GAAP reconciliations.Based on
the above, the Company believes that providing estimates of the amounts that
would be required to reconcile the range of the non-GAAP Adjusted EBITDA,
pretax income and diluted earnings per share, excluding certain items, to
forecasted net income, pretax income, and diluted earnings per share would
imply a degree of precision that would be confusing or misleading to investors
for the reasons identified above.

                                                                 
                                                                 Table 1
                                                                 
Avis Budget Group, Inc.
SUMMARY DATA SHEET
(In millions, except per share data)
                                                                 
                                                                 
                     Three Months Ended December    Year Ended December 31,
                      31,
                     2012        2011       %       2012     2011     %
                                             Change                    Change
Income Statement and                                              
Other Certain Items
Net revenues         $1,698    $1,630   4%      $7,357 $5,900 25%
Adjusted EBITDA       66         59        12%     802     605     33%
(non-GAAP)
Income (loss) before  (63)       (200)      *       300     36       733%
income taxes
Net income (loss)     (46)       (170)     *       290     (29)    *
Earnings (loss) per   (0.43)     (1.62)    *       2.42    (0.28)  *
share - Diluted
                                                                 
Excluding Certain                                                 
Items (non-GAAP) (A)
Net revenues         $1,698    $1,630   4%      $7,357 $5,900 25%
Adjusted EBITDA       78         64        22%     840     610     38%
Income (loss) before  (11)       (35)       *       463     324      43%
income taxes
Net income (loss)     (6)        (14)       *       291     206      41%
Earnings (loss) per   (0.07)     (0.14)    *       2.43    1.65     47%
share - Diluted
                                                                 
                     As of December 31,                            
                     2012        2011                              
Balance Sheet Items                                               
Cash and cash         $606      $534                            
equivalents
Vehicles, net         9,274      8,356                            
Debt under vehicle    6,806      5,564                            
programs
Corporate debt        2,905      3,205                            
Stockholders' equity  757        412                              
                                                                 
Segment Results                                                   
                     Three Months Ended December    Year Ended December 31,
                      31,
                     2012        2011       %       2012     2011     %
                                             Change                    Change
Net Revenues                                                      
North America         $1,060    $1,011   5%      $4,640 $4,495 3%
International        550        532       3%      2,342   1,028   128%
Truck Rental          87         86        1%      374     376     (1%)
Corporate and Other   1          1         *       1       1       *
Total Company         $1,698    $1,630   4%      $7,357 $5,900 25%
                                                                 
Adjusted EBITDA (B)                                               
North America         $47       $16      194%    $556   $442   26%
International        24         37        (35%)   234     127     84%
Truck Rental          1          9         (89%)   33      49      (33%)
Corporate and Other   (6)        (3)       *       (21)    (13)    *
Total Company         $66       $59      12%     $802   $605   33%
                                                                 
Reconciliation of Adjusted EBITDA to Pretax                         
Income (loss)
Total Company         $66       $59             $802   $605   
Adjusted EBITDA
Less:Non-vehicle
related depreciation  34         29               125     95      
and amortization
Interest expense related to                                        
corporate debt, net:
Interest expense      59         77               268     219     
Early extinguishment  23         -               75      -      
of debt
Transaction-related   13         153              34      255     
costs
Income (loss) before  $(63)     $(200)   69%     $300   $36    733%
income taxes
_________                                                         
*Not meaningful.                                                 
(A) During the three months and year ended December 31, 2012, we recorded
certain items in our operating results before income taxes of $52 million and
$163 million ($40 million and $129 million, net of tax), respectively, and for
the full-year period, a $128 million non-cash income tax benefit for
pre-Separation taxes. During the three months ended December 31, 2012, these
items consisted of $23 million ($16 million, net of tax) for the early
extinguishment of corporate debt, $13 million ($13 million, net of tax) of
transaction-related costs primarily related to the integration of Avis Europe,
$12 million ($9 million, net of tax) in restructuring expense and $4 million
($2 million, net of tax) for amortization expense related to intangible assets
recognized in the Avis Europe acquisition. During the year ended December 31,
2012, certain items consisted of $75 million ($61 million, net of tax) for the
early extinguishment of corporate debt, $38 million ($27 million, net of tax)
in restructuring expense, $34 million ($30 million, net of tax) in
transaction-related costs primarily related to the integration of Avis Europe
and $16 million ($11 million, net of tax) for amortization expense related to
intangible assets recognized in the Avis Europe acquisition.
During the three months and year ended December 31, 2011, we recorded certain
items of $165 million and $288 million, respectively. For the three months
ended December 31, 2011, these items consisted of (i) $160 million ($153
million, net of tax) of expenses related to the acquisition of Avis Europe and
our previous efforts to acquire Dollar Thrifty, including $117 million ($117
million, net of tax) for a non-cash charge related to the unfavorable license
rights reacquired by us, $39 million ($33 million, net of tax) related to due
diligence, advisory and other expenses, and $4 million ($3 million, net of
tax) for amortization expense related to intangible assets recognized in the
Avis Europe acquisition; and (ii) $5 million ($3 million, net of tax) for
restructuring expense. For the year ended December 31, 2011, these items
consisted of (i) $283 million ($232 million, net of tax) of expenses related
to the acquisition of Avis Europe and our previous efforts to acquire Dollar
Thrifty, including $117 million ($117 million, net of tax) for a non-cash
charge related to the unfavorable license rights reacquired by us; $49 million
($30 million, net of tax) in losses on foreign-currency transactions related
to the Avis Europe purchase price, $113 million ($82 million, net of tax)
related to due diligence, advisory and other expenses, and $4 million ($3
million, net of tax) for amortization expense related to intangible assets
recognized in the Avis Europe acquisition; and (ii) $5 million ($3 million,
net of tax) for restructuring expense.
(B)See Table 5 for a description of Adjusted EBITDA. Adjusted EBITDA includes
stock-based compensation expense and deferred financing fee amortization of
$10 million and $9 million in fourth quarter 2012 and 2011, respectively, and
$39 million and $39 million in the year ended December 31, 2012 and 2011,
respectively.

                                                         
                                                         Table 2
                                                         
Avis Budget Group, Inc.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In millions, except per share data)
                                                         
                                                         
                           Three Months Ended   Year Ended December
                             December 31,         31,
                           2012       2011       2012       2011
Revenues                                                  
Vehicle rental              $1,213   $1,175   $5,297   $4,338
Other                       485       455       2,060     1,562
Net revenues                1,698     1,630     7,357     5,900
                                                         
Expenses                                                  
Operating                   942       858       3,824     3,025
Vehicle depreciation and     383       384       1,471     1,223
lease charges, net
Selling, general and         229       243       925       756
administrative
Vehicle interest, net       66        81        297       286
Non-vehicle related
depreciation and             34        29        125       95
amortization
Interest expense related to                                
corporate debt, net:
Interest expense            59        77        268       219
Early extinguishment of debt 23        -        75        -
Transaction-related costs    13        153       34        255
(A)
Restructuring expense       12        5         38        5
Total expenses              1,761     1,830     7,057     5,864
                                                         
Income (loss) before income  (63)      (200)     300       36
taxes
Provision for (benefit from) (17)      (30)      10        65
income taxes
Net income (loss)           $(46)    $(170)   $290     $(29)
                                                         
Earnings (loss) per                                       
share
Basic                       $(0.43)  $(1.62)  $2.72    $(0.28)
Diluted (B)                 $(0.43)  $(1.62)  $2.42    $(0.28)
                                                         
Weighted average shares                                    
outstanding
Basic                       106.9     105.5     106.6     105.2
Diluted (B)                 106.9     105.5     121.6     105.2
_________                                                 
(A) The three months and year ended December 31, 2011 include $117
million for a non-cash charge related to the unfavorable license rights   
reacquired by the Company, which granted Avis Europe royalty-free license
rights in certain territories.
(B) For the year ended December 31, 2012, diluted earnings per share and
diluted weighted average shares outstanding include the dilutive effect   
of shares issuable upon conversion of the Company's senior convertible
debentures, stock options and restricted stock units.

                                                                 
                                                                 Table
                                                                       3
                                                                 
Avis Budget Group, Inc.
SEGMENT REVENUE DRIVER ANALYSIS
                                                                 
                                                                 
                   Three Months Ended December    Year Ended December 31,
                    31,
                   2012       2011      % Change  2012      2011      %
                                                                       Change
CAR RENTAL                                                        
                                                                 
North America                                                     
                                                                 
Rental Days (000's) 19,746     18,723    5%        85,954    81,515    5%
Time and Mileage    $39.95   $40.17  (1%)      $40.22  $41.23  (2%)
Revenue per Day
Average Rental      303,238   289,478  5%        329,146   310,682   6%
Fleet
                                                                 
International                                                    
                                                                 
Rental Days         8,149      7,656     6%        35,551    13,600    161%
(000's)
Time and Mileage    $43.44   $45.84  (5%)      $43.27  $49.31  (12%)
Revenue per Day (A)
Average Rental      134,165   127,523  5%        139,769   56,249    148%
Fleet
                                                                 
Total Car Rental                                                  
                                                                 
Rental Days         27,895    26,379   6%        121,505  95,115   28%
(000's)
Time and Mileage    $40.97   $41.81  (2%)      $41.11  $42.39  (3%)
Revenue per Day
Average Rental      437,403   417,001  5%        468,915  366,931  28%
Fleet
                                                                 
TRUCK RENTAL                                                      
SEGMENT
                                                                 
Rental Days         1,103      1,082     2%        4,215     4,303     (2%)
(000's)
Time and Mileage    $63.82   $66.18  (4%)      $71.64  $71.15  1%
Revenue per Day
Average Rental      27,226    25,504   7%        26,774    25,895    3%
Fleet
                                                                 
_________                                                         
Rental days and time and mileage revenue per day are calculated based on the
actual rental of the vehicle during a 24-hour period. Our calculation of
rental days and time and mileage revenue per day may not be comparable to the
calculation of similarly-titled statistics by other companies.
                                                                 
(A) Of the change in time and mileage revenue per day, 1 percentage point and
5 percentage points are due to changes in foreign-exchange rates in the three
months and year ended December 31, 2012, respectively, with time and mileage
revenue per day decreasing 4 percentage points and 7 percentage points, in the
three months and year ended December 31, 2012, respectively, excluding
foreign-exchange effects.

                                                          
                                                          Table 4
                                                          
Avis Budget Group, Inc.
CONSOLIDATED SCHEDULES OF CASH FLOWS AND FREE CASH FLOWS
(In millions)
                                                          
                                                          
CONSOLIDATED SCHEDULE OF CASH FLOWS
                                                          
                                                          Year Ended
                                                           December 31, 2012
Operating Activities                                       
Net cash provided by operating activities                  $1,889
                                                          
Investing Activities                                       
Net cash used in investing activities exclusive of vehicle (189)
programs
Net cash used in investing activities of vehicle programs  (1,884)
Net cash used in investing activities                      (2,073)
                                                          
Financing Activities                                       
Net cash used in financing activities exclusive of vehicle (340)
programs
Net cash provided by financing activities of vehicle       590
programs
Net cash provided by financing activities                  250
                                                          
Effect of changes in exchange rates on cash and cash       6
equivalents
Net increase in cash and cash equivalents                  72
Cash and cash equivalents, beginning of period             534
Cash and cash equivalents, end of period                   $606
                                                          
                                                          
CONSOLIDATED SCHEDULE OF FREE CASH FLOWS (A)
                                                          
                                                          Year Ended
                                                           December 31, 2012
Pretax income                                              $300
Add-back of non-vehicle related depreciation and           125
amortization
Add-back of debt extinguishment costs                      75
Transaction-related costs                                  34
Working capital and other                                  135
Capital expenditures                                       (132)
Tax payments, net of refunds                               (65)
Vehicle programs and related (B)                           46
Free Cash Flow                                             518
                                                          
Borrowings, net of debt repayments                         (378)
Net assets acquired (net of cash acquired) (C)             (36)
Transaction-related payments                               (33)
Financing costs, foreign exchange effects and other        1
Net increase in cash and cash equivalents (per above)      $72
                                                          
_____________________________                              
(A) See Table 5 for a description of Free Cash Flow.
(B) Primarily reflects vehicle-backed borrowings (repayments) that are
incremental to vehicle-backed borrowings (repayments) required to fund
incremental (reduced) vehicle and vehicle-related assets.
(C) Excludes $33 million of vehicle assets purchased in the acquisition of
Apex Car Rentals included within vehicle programs and related.
                                                          
RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES
                                                          
                                                          Year Ended
                                                           December 31, 2012
Free Cash Flow (per above)                                 $518
Cash (inflows) outflows included in Free Cash Flow but not 
reflected in
Net Cash Provided by Operating Activities (per above)      
Investing activities of vehicle programs                   1,884
Financing activities of vehicle programs                   (590)
Capital expenditures                                       132
Early extinguishment of debt                               (39)
Acquisition of Apex Car Rentals' vehicles                  33
Proceeds received on asset sales                           (21)
Transaction-related payments                               (33)
Change in restricted cash                                  1
Purchases of GPS navigational units                        4
Net Cash Provided by Operating Activities (per above)      $1,889

                                                         
                                                         Table 5
                                                         
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 below the reasons we present these non-GAAP financial measures, a
description of what they represent and a reconciliation to the most comparable
financial measure calculated and presented in accordance with GAAP.
                                                         
DEFINITIONS
Adjusted EBITDA
The accompanying press release presents Adjusted EBITDA, which represents
income (loss) before non-vehicle related depreciation and amortization, any
impairment charge, transaction-related costs, non-vehicle related interest and
income taxes. The presentation of Adjusted EBITDA reflects this change for all
periods presented. We believe that Adjusted EBITDA is useful as a supplemental
measure in evaluating the aggregate performance of our operating businesses.
Adjusted EBITDA is the measure that is used by our management, including our
chief operating decision maker, to perform such evaluation. It is also a
component of our financial covenant calculations under our credit facilities,
subject to certain adjustments. Adjusted EBITDA should not be considered in
isolation or as a substitute for net income (loss) 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 to income (loss) before income taxes can
be found on Table 1 and a reconciliation of income (loss) before income taxes
to net income (loss) can be found on Table 2.
                                                         
Certain items
The accompanying press release and tables present Adjusted EBITDA, income
(loss) before income taxes, provision for (benefit from) income taxes, net
income (loss) and diluted earnings per share for the three months and year
ended December 31, 2012, excluding certain items. For the three months ended
December 31, 2012, certain items consisted of $23 million ($16 million, net of
tax) of expense for the early extinguishment of corporate debt, $13 million
($13 million, net of tax) of transaction-related costs primarily related to
the integration of the operations of Avis Europe, $12 million ($9 million, net
of tax) in restructuring expense and $4 million ($2 million, net of tax) for
amortization expense related to intangible assets recognized in the Avis
Europe acquisition.
For the year ended December 31, 2012, certain items consisted of $75 million
($61 million, net of tax) of expense for the early extinguishment of corporate
debt, $38 million ($27 million, net of tax) in restructuring expense, $34
million ($30 million, net of tax) of transaction-related costs primarily
related to the integration of the operations of Avis Europe, $16 million ($11
million, net of tax) for amortization expense related to intangible assets
recognized in the Avis Europe acquisition and a $128 million non-cash income
tax benefit for pre-Separation taxes.
We believe that the measures referred to above are useful as supplemental
measures in evaluating the aggregate performance of the Company. We exclude
restructuring-related expenses, 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 for the three months and year ended December 31,
2012.
                                                         
Reconciliation of Avis Budget Group, Inc. Adjusted EBITDA and income (loss)
before income taxes, excluding certain items to net income (loss):
                                                         
                                    Three Months Ended   Year Ended
                                    December 31, 2012     December 31, 2012
Adjusted EBITDA, excluding certain   $78                 $840
items
Less:Non-vehicle related
depreciation and amortization        30                   109
(excluding acquisition-related
amortization expense)
Interest expense related to
corporate debt, net (excluding early 59                   268
extinguishment of debt)
Income (loss) before income taxes,   (11)                 463
excluding certain items
Less certain items:                                       
Early extinguishment of debt         23                   75
Restructuring expense                12                   38
Transaction-related costs            13                   34
Acquisition-related amortization     4                    16
expense
Income (loss) before income taxes    (63)                 300
Provision for (benefit from) income  (5)                  172
taxes, excluding certain items
Benefit from income taxes on certain (12)                 (162)
items
Provision for (benefit from) income  (17)                 10
taxes
Net income (loss)                    $(46)               $290
                                                         
Reconciliation of net income
excluding certain items to net                            
income:
Net income (loss), excluding certain $(6)                $291
items
Less certain items, net of tax:                           
Early extinguishment of debt         16                   61
Restructuring expense                9                    27
Transaction-related costs            13                   30
Acquisition-related amortization     2                    11
expense
Non-cash income tax benefit for      -                   (128)
pre-Separation taxes
Net income (loss)                    $(46)               $290
Earnings (loss) per share, excluding $(0.07)             $2.43
certain items (diluted)
Earnings (loss) per share (diluted)  $(0.43)             $2.42
Shares used to calculate Earnings
(loss)per share, excluding certain  106.9                121.6
items (diluted)
                                                         
The accompanying press release and tables present Adjusted EBITDA, income
(loss) before income taxes, net income (loss) and diluted earnings per share
for the three months and year ended December 31, 2011, excluding certain
items. For the three months ended December 31, 2011, certain items consisted
of $160 million ($153 million, net of tax) of expenses related to the
acquisition of Avis Europe and our previous efforts to acquire Dollar Thrifty,
including $117 million ($117 million, net of tax) for a non-cash charge
related to the unfavorable license rights reacquired by the Company, $39
million ($33 million, net of tax) related to due diligence, advisory and other
expenses, and $4 million ($3 million, net of tax) for amortization expense
related to intangible assets recognized in the Avis Europe acquisition; and $5
million ($3 million, net of tax) in restructuring charges.
For the year ended December 31, 2011, certain items consisted of $283 million
($232 million, net of tax) of expenses related to the acquisition of Avis
Europe and our previous efforts to acquire Dollar Thrifty, including $117
million ($117 million, net of tax) for a non-cash charge related to the
unfavorable license rights reacquired by the Company, $49 million ($30
million, net of tax) of losses on foreign-currency hedges related to the Avis
Europe purchase price, $113 million ($82 million, net of tax) related to due
diligence, advisory and other expenses, and $4 million ($3 million, net of
tax) for amortization expense related to intangible assets recognized in the
Avis Europe acquisition; and $5 million ($3 million, net of tax) in
restructuring expense. Reconciliations of Adjusted EBITDA and net income,
excluding certain items to net income are presented below.
We believe that the measures referred to above are useful as supplemental
measures in evaluating the aggregate performance of the Company. We exclude
restructuring-related expenses, 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 for the three months and year ended December 31,
2011.
                                                         
Reconciliation of Avis Budget Group, Inc. Adjusted EBITDA, excluding certain
items to net income (loss):
                                                         
                                    Three Months Ended   Year Ended
                                    December 31, 2011     December 31, 2011
Adjusted EBITDA, excluding certain   $64                 $610
items
                                                         
Less:Non-vehicle related
depreciation and amortization        25                   91
(excluding acquisition-related
amortization expense)
Interest expense related to
corporate debt, net (excluding       74                   195
pre-closing interest related to
acquisition financing)
Income (loss) before income taxes,   (35)                 324
excluding certain items
                                                         
Less certain items:                                       
Transaction-related costs            153                  255
Acquisition-related amortization     4                    4
expense
Acquisition-related interest         3                    24
Restructuring charges                5                    5
Income (loss) before income taxes    (200)                36
Provision for (benefit from) income  (30)                 65
taxes
Net loss                             $(170)              $(29)
                                                         
Reconciliation of net income (loss),                      
excluding certain items to net loss:
Net income (loss), excluding certain $(14)               $206
items
Less certain items, net of tax:                           
Transaction-related costs            148                  215
Acquisition-related amortization     3                    3
expense
Acquisition-related interest         2                    14
Restructuring charges                3                    3
Net loss                             $(170)              $(29)
Earnings (loss) per share, excluding $(0.14)             $1.65
certain items (diluted)
Earnings (loss) per share (diluted)  $(1.62)             $(0.28)
Shares used to calculate Earnings
(loss) per share, excluding certain  105.5                128.9
items (diluted)
                                                         
Free Cash Flow                                            
Represents Net Cash Provided by Operating Activities adjusted to reflect the
cash inflows and outflows relating to capital expenditures and GPS
navigational units, the investing and financing activities of our vehicle
programs, asset sales, if any, and to exclude debt extinguishment costs,
transaction-related costs and vehicles purchased in the acquisition of Apex
Car Rentals. We believe that Free Cash Flow is useful to management and
investors in measuring the cash generated that is available to be used to
repurchase stock, repay debt obligations, pay dividends and invest in future
growth through new business development activities or acquisitions. Free Cash
Flow should not be construed as a substitute in measuring operating results or
liquidity, and our presentation of Free Cash Flow may not be comparable to
similarly-titled measures used by other companies. A reconciliation of Free
Cash Flow to the appropriate measure recognized under GAAP is provided on
Table 4.

CONTACT: Media Contact:
         John Barrows
         (973) 496-7865
         PR@avisbudget.com
        
         Investor Contact:
         Neal Goldner
         (973) 496-5086
         IR@avisbudget.com

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