Avis Budget Group Reports First Quarter 2013 Results

Avis Budget Group Reports First Quarter 2013 Results

  *Revenue increased 4% to $1.7 billion.
  *Pricing in North America increased 4% year-over-year.
  *Adjusted EBITDA declined 22% to $93 million, excluding certain items.
  *Company reported net income, excluding certain items, of $9 million in the
    seasonally slower first quarter, and a GAAP net loss of $46 million.
  *Company completed acquisition of Zipcar, the world's leading car sharing
    network.

PARSIPPANY, N.J., May 1, 2013 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc.
(Nasdaq:CAR) today reported results for its first quarter ended March 31,
2013. For the quarter, the Company reported revenue of $1.7 billion, a 4%
increase compared with the prior-year first quarter. Excluding certain items,
Adjusted EBITDA declined 22% to $93 million.The Company reported net income
of $9 million, excluding certain items, and a GAAP net loss of $46 million due
to debt-extinguishment expenses, transaction-related charges and restructuring
costs.

As previously announced, the Company completed its acquisition of Zipcar,
Inc., the world's leading car sharing network, on March 14, 2013.For the
quarter ended March 31, 2013, the acquisition was immaterial to the Company's
results of operations, contributing approximately $14 million to revenues and
$1 million to Adjusted EBITDA.

"The first quarter progressed largely as we had anticipated, highlighted by
strong year-over-year pricing trends in North America, which helped offset
expected increases in fleet costs, and marked by challenging economic
conditions in Europe," said Ronald L. Nelson, Avis Budget Group Chairman and
Chief Executive Officer."Our acquisition of Zipcar is progressing as planned,
and we are already implementing actions to capture the benefits we expect to
realize from this transaction."

Executive Summary

Total Company revenue increased 4% in first quarter 2013 compared to first
quarter 2012 primarily due to a 2% increase in rental days and a 2% increase
in pricing.First quarter Adjusted EBITDA decreased 22% to $93 million,
excluding certain items, primarily due to increased costs incurred in the
Company's International, Truck Rental and Corporate & Other operations.Higher
pricing and reduced vehicle-related interest expense largely offset increased
fleet costs in North America.

Business Segment Discussion

The following discussion of first 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 operations, Canadian vehicle
rental operations and Zipcar business)

               2013   2012   % change
Revenue         $1,100 $1,038 6%
Adjusted EBITDA $90    $93    (3%)

Revenue increased 6% primarily due to a 1% increase in volume and a 4%
increase in pricing, including an 8% increase in leisure pricing.Adjusted
EBITDA decreased 3% primarily due to a 28% increase in per-unit fleet costs
largely offset by higher pricing and reduced vehicle-related interest
expense.Excluding the acquisition of Zipcar, revenue increased 5% and
Adjusted EBITDA decreased 4%.Adjusted EBITDA includes $3 million of
restructuring costs in first quarter
2013.

International
(Consisting of the Company's international vehicle rental operations)

               2013 2012 % change
Revenue         $515 $510 1%
Adjusted EBITDA $14  $22  (36%)

Revenue increased 1% primarily due to the October 2012 acquisition of Apex Car
Rentals.Volume increased 2% and pricing declined 4%.Adjusted EBITDA declined
$8 million primarily due to lower pricing and inflationary cost
increases.Adjusted EBITDA includes $3 million of restructuring costs in first
quarter 2013 compared to $7 million in first quarter 2012.

Truck Rental
(Consisting of the Company's U.S. truck rental operations)

               2013 2012 % change
Revenue         $76  $75  1%
Adjusted EBITDA $(9) $1   NM

Truck rental revenue increased 1% due to a 4% increase in pricing, partially
offset by a 3% decrease in volume. Adjusted EBITDA declined by $10 million
primarily due to our previously announced strategic initiative to reposition
the business, which resulted in higher maintenance and damage costs, higher
fleet costs and $4 million of restructuring costs. We continue to expect that
we will incur restructuring and other costs of approximately $20 million in
2013 in conjunction with this initiative.

Acquisition of Zipcar

The Company completed the acquisition of Zipcar on March 14, 2013.For the
three months ended March 31, 2013, Zipcar's revenue increased 10%
year-over-year, to $65 million. Zipcar had approximately 792,000 members as of
March 31, 2013, an increase of 12% from a year earlier.

During the first quarter, the Company completed approximately $525 million in
debt financing to fund its acquisition of Zipcar.The financing has a
weighted-average interest rate of 5.1% and is comprised of €250 million
(approximately $325 million) of 6% senior notes due 2021 and $200 million in
term loan borrowings due 2019, which will initially bear interest at a rate of
3.75%. In connection with the incremental term loan borrowings, the Company
also reduced the interest rate on its approximately $700 million of
pre-existing 2019 term loan borrowings by 50 basis points, to LIBOR plus
2.75%, subject to a LIBOR floor of 1%.

The Company expects Zipcar to contribute approximately $260 million to revenue
in 2013.The Company also expects Zipcar will contribute $25 to $30 million to
Adjusted EBITDA this year, including synergies.Primarily because of the
estimated $22 million of incremental interest expense associated with the
transaction, the Company does not expect the Zipcar acquisition to
significantly impact its pretax or net income in 2013, excluding certain
items.

The Company continues to expect to achieve annual synergies of $50 million to
$70 million within the first two years of the acquisition.

Other Items

  *Convertible Debt Repurchases – During the first quarter, the Company
    repurchased approximately $50 million principal amount of its outstanding
    3.5% convertible senior notes due 2014, at a net cash cost of
    approximately $80 million.The repurchases reduced the Company's diluted
    shares outstanding by approximately 3 million shares.
    
  *Debt Refinancing – In April, the Company completed an offering of $500
    million of 5.5% senior notes due 2023.The Company used proceeds from the
    offering to purchase, at a premium, $325 million principal amount of its
    outstanding 9.625% senior notes due 2018 and $25 million principal amount
    of its outstanding 9.75% notes due 2020.
    
  *European Vehicle-Backed Securitization – In March, the Company entered
    into a three-year, €500 million (approximately $640 million) European
    rental fleet securitization program, providing the Company's subsidiaries
    in Germany, Italy and Spain increased capacity to finance its fleet.This
    program, which matures in March 2016, replaced the Company's previous €350
    million European variable fleet financing facility at more attractive
    terms.
    
  *Annual Stockholders Meeting – The Company has scheduled its 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 updated its estimates of its full-year 2013 results to
include the acquisition of Zipcar.

The Company expects its full-year 2013 revenue to be approximately $7.8
billion to $8.0 billion, a 6% to 9% increase compared to 2012.The Company
expects its Adjusted EBITDA to be approximately $750 million to $855 million,
excluding certain items.The changes in the Company's expected 2013 revenue
and Adjusted EBITDA are entirely due to the acquisition of Zipcar.

The Company continues to expect 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 $240 million, a decline of $30 million compared to 2012.The
increase in projected interest expense compared to our prior outlook reflects
the costs of financing the acquisition of Zipcar, partially offset by the
benefits of the refinancings the Company has completed.The Company also
expects that its 2012 non-vehicle depreciation and amortization expense
(excluding the amortization of intangible assets related to the acquisitions
of Avis Europe and Zipcar) will be approximately $130 million to $135
million.As a result, the Company estimates that its pretax income will be
approximately $375 million to $485 million, excluding certain items.

The Company expects that its effective tax rate in 2013 will be approximately
37% to 38%, excluding certainitems, and that its diluted share count will be
approximately 118 million.Based on these expectations, the Company now
estimates that its 2013 diluted earnings per share, excluding certain items,
will be approximately $2.00 to $2.60.

Investor Conference Call

Avis Budget Group will host a conference call to discuss first quarter results
on May 2, 2013, at 8:30 a.m. (ET).Investors may access the call live at
ir.avisbudgetgroup.com or by dialing (630) 395-0021 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 May 2 until 8:00 p.m. (ET) on May 16 at
(203) 369-3192, access code: "Avis Budget."

About Avis Budget Group, Inc.

Avis Budget Group, Inc. is a leading global provider of vehicle rental
services, both through its Avis and Budget brands, which have more than 10,000
rental locations in approximately 175 countries around the world, and through
its Zipcar brand, which is the world's leading car sharing network, with more
than 790,000 members.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 29,000 employees and is headquartered in Parsippany, N.J.More
information is available at www.avisbudgetgroup.com.

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.

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, 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, 2012, included under headings such as
"Forward-Looking Statements", "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations", 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 March 31,
                                2013              2012            % Change
Income Statement and Other                                       
Certain Items
Net revenues                    $1,691          $1,623        4%
Adjusted EBITDA (non-GAAP)       83               112            (26%)
Loss before income taxes         (57)             (26)            *
Net loss                         (46)             (23)           *
Earnings (loss) per share -      (0.43)           (0.22)         *
Diluted
                                                                
Excluding Certain Items                                          
(non-GAAP) (A)
Net revenues                    $1,691          $1,623        4%
Adjusted EBITDA                  93               119            (22%)
Income before income taxes       5                19              (74%)
Net income                       9                14              (36%)
Earnings per share - Diluted     0.08             0.12           (33%)
                                                                
                                As of                            
                                March 31, 2013    December 31,    
                                                   2012
Balance Sheet Items                                              
Cash and cash equivalents       $569            $606          
Vehicles, net                    10,162           9,274          
Debt under vehicle programs      7,462            6,806          
Corporate debt                   3,347            2,905          
Stockholders' equity             694              757            
                                                                
Segment Results                                                  
                                Three Months Ended March 31,
                                2013              2012            % Change
Net Revenues                                                     
North America                    $1,100          $1,038        6%
International                   515              510            1%
Truck Rental                     76               75             1%
Corporate and Other              -               -             *
Total Company                    $1,691          $1,623        4%
                                                                
Adjusted EBITDA (B)                                              
North America                    $90             $93           (3%)
International                   14               22             (36%)
Truck Rental                     (9)              1              *
Corporate and Other              (12)             (4)            *
Total Company                    $83             $112          (26%)
                                                                
Reconciliation of Adjusted                                       
EBITDA to Pretax Loss
Total Company Adjusted EBITDA    $83             $112          
Less: Non-vehicle related        34               32             
depreciation and amortization
 Interest expense related to                                    
corporate debt, net:
 Interest expense          58               73             
 Early           40               27             
extinguishment of debt
Transaction-related costs        8                6              
Loss before income taxes         $(57)           $(26)         *
_________                                                        
* Not meaningful.                                                
(A) During the three months ended March 31, 2013, we recorded certain items of
$62 million, consisting of $40 million ($39 million, net of tax) for costs
related to the early extinguishment of debt, $10 million ($7 million, net of
tax) in restructuring costs, $8 million ($6 million, net of tax) for
transaction-related costs primarily related to the integration of Avis Europe
and the acquisition of Zipcar, and $4 million ($3 million, net of tax) for
purchase-accounting effects related to the acquisitions of Avis Europe and
Zipcar.
During the three months ended March 31, 2012, we recorded certain items of $45
million, consisting of $27 million ($23 million, net of tax) for costs related
to the early extinguishment of debt, $7 million ($5 million, net of tax) in
restructuring costs, $6 million ($5 million, net of tax) for
transaction-related costs related to the integration of Avis Europe and $5
million ($4 million, net of tax) for amortization expense related to
intangible assets recognized in the Avis Europe acquisition.
(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 in first quarter 2013 and 2012.
                                                                

                                                              Table 2
                                                              
Avis Budget Group, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
                                                              
                                                              
                                               Three Months Ended March 31,
                                               2013            2012
Revenues                                                       
Vehicle rental                                  $1,217        $1,168
Other                                           474            455
Net revenues                                    1,691          1,623
                                                              
Expenses                                                       
Operating                                       931            893
Vehicle depreciation and lease charges, net    386            318
Selling, general and administrative             224            219
Vehicle interest, net                           57             74
Non-vehicle related depreciation and            34             32
amortization
Interest expense related to corporate debt,                    
net:
Interest expense                              58             73
Early extinguishment of debt                   40             27
Restructuring charges                           10             7
Transaction-related costs                       8              6
Total expenses                                  1,748          1,649
                                                              
Loss before income taxes                        (57)           (26)
Benefit from income taxes                       (11)           (3)
Net loss                                        $(46)         $(23)
                                                              
Earnings (loss) per share                                      
Basic                                           $(0.43)       $(0.22)
Diluted                                         $(0.43)       $(0.22)
                                                              
Weighted average shares outstanding                            
Basic                                           107.7          105.9
Diluted                                         107.7          105.9

                                                         Table 3
                                                         
Avis Budget Group, Inc.
SEGMENT REVENUE DRIVER ANALYSIS
                                                         
                                                         
                             Three Months Ended March 31,
                             2013           2012           % Change
CAR RENTAL                                                
                                                         
North America Segment (A)                                 
                                                         
Rental Days (000's)           19,723         19,440         1%
Time and Mileage Revenue per  $41.34       $39.77       4%
Day
Average Rental Fleet          312,604       305,129       2%
                                                         
International Segment (B)                                 
                                                         
Rental Days (000's)          7,500          7,339          2%
Time and Mileage Revenue per  $43.89       $45.57       (4%)
Day (C)
Average Rental Fleet          122,250       117,524       4%
                                                         
Total Car Rental (A) (B)                                  
                                                         
Rental Days (000's)          27,223        26,779        2%
Time and Mileage Revenue per  $42.05       $41.36       2%
Day
Average Rental Fleet          434,854       422,653       3%
                                                         
TRUCK RENTAL SEGMENT                                      
                                                         
Rental Days (000's)          853            877            (3%)
Time and Mileage Revenue per  $71.03       $68.56       4%
Day
Average Rental Fleet          26,632        25,127        6%
                                                         
_________                                                 
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) Excludes Zipcar.          
(B) 2012 amounts have been adjusted to conform and correct Avis Budget
EMEA's calculation of first quarter rental days (by -180,000), time and
mileage revenue per day and average rental fleet, having no effect on      
revenue, Adjusted EBITDA, net income or any other reported financial
results.
(C) Of the change in time and mileage revenue per day, changes in
currency exchange rates had no impact in the three months ended March      
31, 2013, with time and mileage revenue per day decreasing 4 percentage
points excluding currency exchange effects.

                                                       Table 4
                                                       
Avis Budget Group, Inc.
CONSOLIDATED CONDENSED SCHEDULES OF CASH FLOWS AND FREE CASH FLOWS
(In millions)
                                                       
CONSOLIDATED CONDENSED SCHEDULE OF CASH FLOWS
                                                       
                                                       Three Months Ended
                                                        March 31, 2013
Operating Activities                                    
Net cash provided by operating activities               $300
                                                       
Investing Activities                                    
Net cash used in investing activities exclusive of      (467)
vehicle programs
Net cash used in investing activities of vehicle        (741)
programs
Net cash used in investing activities                   (1,208)
                                                       
Financing Activities                                    
Net cash provided in financing activities exclusive of  407
vehicle programs
Net cash provided by financing activities of vehicle    466
programs
Net cash provided by financing activities               873
                                                       
Effect of changes in exchange rates on cash and cash    (2)
equivalents
Net change in cash and cash equivalents                 (37)
Cash and cash equivalents, beginning of period          606
Cash and cash equivalents, end of period                $569
                                                       
                                                       
CONSOLIDATED SCHEDULE OF FREE CASH FLOWS (A)
                                                       Three Months Ended
                                                        March 31, 2013
Pretax loss                                             $(57)
Add-back of non-vehicle related depreciation and        34
amortization
Add-back of debt extinguishment costs                   40
Add-back of transaction-related costs                   8
Working capital and other                              (53)
Capital expenditures                                    (21)
Tax payments, net of refunds                           (10)
Vehicle programs and related (B)                        109
Free Cash Flow                                          50
                                                       
Acquisition and related payments, net of acquired cash  (494)
(C)
Borrowings, net of debt repayments                      406
Transaction-related payments                            (14)
Financing costs, foreign exchange effects and other     15
Net change in cash and cash equivalents (per above)     $(37)
                                                       
_____________________________                           
(A) See Table 5 for a description of Free Cash Flow.    
(B) Includes vehicle-backed borrowings (repayments) that are incremental to
vehicle-backed borrowings (repayments) required to fund incremental          
(reduced) vehicle and vehicle-related assets.
(C) Includes acquisition-related payments incurred as a 
result of the acquisition of Zipcar.
                                                       
RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED BY OPERATING
ACTIVITIES

                                                       Three Months Ended
                                                        March 31, 2013
Free Cash Flow (per above)                              $50
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                741
Financing activities of vehicle programs                (466)
Capital expenditures                                    21
Change in restricted cash                               (10)
Acquisition-related payments                            (18)
Proceeds received on asset sales                        (4)
Transaction-related payments                            (14)
Net Cash Provided by Operating Activities (per above)   $300

                                                        
                                                        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 before non-vehicle related depreciation and amortization, any
impairment charge, transaction-related costs, non-vehicle related interest,
transaction-related costs and income taxes. 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, net income (loss) and diluted earnings per share
for the three months ended March 31, 2013, excluding certain items. For the
three months ended March 31, 2013, certain items consisted of $40 million ($39
million, net of tax) for costs related to the early extinguishment of debt,
$10 million ($7 million, net of tax) in restructuring charges, $8 million ($6
million, net of tax) of expenses primarily related to the integration of Avis
Europe and the acquisition of Zipcar, and $4 million ($3 million, net of tax)
for purchase-accounting effects related to the acquisitions of Avis Europe and
Zipcar.
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 ended March 31, 2013.
                                                        
Reconciliation of Avis Budget Group, Inc. Adjusted       
EBITDA, excluding certain items to net loss:
                                                        
                                                        
                                                        Three Months Ended
                                                         March 31, 2013
Adjusted EBITDA, excluding certain items                 $93
                                                        
Less: Non-vehicle related depreciation and amortization  
(excluding
 acquisition-related amortization expense)         30
 Interest expense related to corporate debt, net   
(excluding early
 extinguishment of debt)                           58
 Income before income taxes, excluding certain     5
items
                                                        
Less certain items:                                      
Early extinguishment of debt                             40
Restructuring charges                                    10
Transaction-related costs                                8
Acquisition-related amortization expense                 4
Loss before income taxes                                 (57)
Benefit from income taxes                                (11)
Net loss                                                 $(46)
                                                        
Reconciliation of net income, excluding certain items to 
net loss:
                                                        
Net income, excluding certain items                      $9
Less certain items, net of tax:                          
Early extinguishment of debt                             39
Restructuring charges                                    7
Transaction-related costs                                6
Acquisition-related amortization expense                 3
Net loss                                                 $(46)
                                                        
Earnings per share, excluding certain items (diluted)    $0.08
                                                        
Earnings (loss) per share (diluted)                      $(0.43)
                                                        
Shares used to calculate earnings per share, excluding   110.2
certain items (diluted)
_________                                                
The diluted shares used to calculate earnings per share,
excluding certain items, do not include the shares       
underlying our convertible notes, which in this case
have an anti-dilutive effect.
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 ended March 31, 2012, excluding certain
items. For the three months ended March 31, 2012,
certain items consisted of $27 million ($23 million, net
of tax) for costs related to early extinguishment of     
debt, $7 million ($5 million, net of tax) in
restructuring charges, $6 million ($5 million, net of
tax) of expenses related to the integration of Avis
Europe and $5 million ($4 million, net of tax) for
amortization expense related to intangible assets
recognized in the Avis Europe acquisition.
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, transaction-related      
costs and other certain items as such items are not
representative of the results of operations of our
business for the three months ended March 31, 2012.
                                                        
Reconciliation of Avis Budget Group, Inc. Adjusted       
EBITDA, excluding certain items to net loss:
                                                        
                                                        Three Months Ended
                                                         March 31, 2012
Adjusted EBITDA, excluding certain items                 $119
                                                        
Less: Non-vehicle related depreciation and amortization  
(excluding
 acquisition-related amortization expense)         27
 Interest expense related to corporate debt, net   
(excluding early
 extinguishment of debt)                           73
 Income before income taxes, excluding certain     19
items
                                                        
Less certain items:                                      
Early extinguishment of debt                             27
Restructuring charges                                    7
Transaction-related costs                                6
Acquisition-related amortization expense                 5
Loss before income taxes                                 (26)
Benefit from income taxes                                (3)
Net loss                                                $(23)
                                                        
Reconciliation of net income, excluding certain items to 
net loss:
                                                        
Net income, excluding certain items                      $14
Less certain items, net of tax:                          
Early extinguishment of debt                             23
Restructuring charges                                    5
Transaction-related costs                                5
Acquisition-related amortization expense                 4
Net loss                                                 $(23)
                                                        
Earnings per share, excluding certain items (diluted)    $0.12
                                                        
Earnings (loss) per share (diluted)                      $(0.22)
                                                        
Shares used to calculate earnings per share, excluding   127.6
certain 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 and
transaction-related costs. 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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