Avis Budget Group Reports Record Fourth Quarter 2013 Results

Avis Budget Group Reports Record Fourth Quarter 2013 Results

  *For the quarter, revenue increased 9% to $1.8 billion.

  *Adjusted EBITDA increased 46% to $114 million, excluding certain items.

  *Diluted earnings per share were $0.15, excluding certain items, on a GAAP
    net loss of $28 million.

  *Full-year diluted earnings per share were $2.20, excluding certain items,
    on GAAP net income of $16 million.

  *Free Cash Flow exceeds $400 million.
  *Company issues estimates of its full-year 2014 results.

PARSIPPANY, N.J., Feb. 19, 2014 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc.
(Nasdaq:CAR) today reported results for its fourth quarter and year ended
December 31, 2013. For the quarter, the Company reported revenue of $1.8
billion, a 9% increase compared with the prior-year fourth quarter. Excluding
certain items, Adjusted EBITDA increased 46% to $114 million, net income
increased to $17 million, and diluted earnings per share increased to $0.15.
The Company reported a GAAP net loss of $28 million in the traditionally
slower fourth quarter primarily due to restructuring costs incurred in Europe
and debt-extinguishment expenses.

For the year, the Company reported revenue of $7.9 billion, an increase of 8%
compared with 2012. Excluding certain items, Adjusted EBITDA decreased 8% to
$769 million, the second-highest total in the Company's history, and net
income was $256 million, or $2.20 per diluted share. The Company reported GAAP
net income of $16 million.

"We had a strong year as we continued to realize the benefits of our long-term
strategic plan. Our initiatives to accelerate growth in higher-profit customer
segments and channels drove both strong volume and positive pricing. We also
made a number of investments that not only expanded our global footprint, but
also positioned us to benefit from faster-growing markets, highlighted by our
acquisition of Zipcar," said Ronald L. Nelson, Avis Budget Group Chairman and
Chief Executive Officer. "We capped the year by delivering a 46% increase in
Adjusted EBITDA in the fourth quarter, reflecting strong revenue growth and
margin expansion, while continuing to return cash to shareholders through
share repurchases."

Executive Summary

Revenue increased 9% in fourth quarter 2013 compared to fourth quarter 2012
primarily due to a 6% increase in rental days and the acquisition of Zipcar.
Excluding Payless and the effect of currency movements, pricing in North
America was essentially unchanged year-over-year. Fourth quarter Adjusted
EBITDA increased 46% to $114 million, excluding certain items, primarily due
to increased earnings in our North America segment.

Full-year revenue increased 8% to $7.9 billion. The increase was driven by 4%
growth in rental days, a 1% increase in North American pricing, and an 11%
increase in ancillary revenues. Adjusted EBITDA was $769 million for the full
year, excluding certain items, a decline of 8% compared to 2012 primarily due
to below-trend fleet costs in 2012 that normalized in 2013. The Company
generated free cash flow of $460 million during 2013, bringing its total free
cash flow over the last 24 months to $978 million.

Zipcar, acquired by the Company in March 2013, contributed approximately $74
million to revenue and $11 million to Adjusted EBITDA in the fourth quarter.
For the full year, Zipcar contributed approximately $246 million to revenue
and $25 million to Adjusted EBITDA, excluding certain items. Zipcar entered
six new metropolitan markets in 2013.

Payless Car Rental, acquired by the Company in July 2013, contributed $21
million to revenue in the fourth quarter and $44 million to revenue for the
full year. Payless' contribution to Adjusted EBITDA was not significant.

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 operations, Canadian vehicle
rental operations and Zipcar business)

               2013     2012     % change
Revenue         $1,178 $1,060 11%
Adjusted EBITDA $73    $47    55%

Revenue increased 11% primarily due to the acquisition of Zipcar and a 6%
increase in volume.Adjusted EBITDA increased 55% primarily due to higher
revenue and lower marketing costs, partially offset by an 8% increase in
per-unit fleet costs.Excluding the acquisitions of Zipcar and Payless,
revenue grew 2% and Adjusted EBITDA increased 34%.Adjusted EBITDA includes $1
million of restructuring costs in fourth quarter 2013.

International

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

               2013   2012   % change
Revenue         $586 $550 7%
Adjusted EBITDA $29  $24  21%

Revenue increased 7% primarily due to a 6% increase in rental days and a 1%
increase in total revenue per rental day (which excludes licensee revenues and
was comprised of a 13% increase in ancillary revenue per day and a 2% decline
in reported pricing). Adjusted EBITDA increased 21% primarily due to revenue
growth and synergies from the integration of our European operations. Adjusted
EBITDA includes restructuring costs of $19 million in fourth quarter 2013 and
$11 million in fourth quarter 2012.

Truck Rental

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

               2013  2012  % change
Revenue         $85 $87 (2%)
Adjusted EBITDA $3  $1  200%

Truck Rental revenue declined 2% due to a 5% decrease in volume, as our truck
rental fleet was 14% smaller in 2013. Adjusted EBITDA more than doubled in
the fourth quarter to $5 million, excluding restructuring costs related to our
previously announced initiative to reposition this business. 

Other Items

  *Share Repurchases – The Company repurchased approximately 720,000 shares
    of its common stock at a cost of $26 million in the fourth quarter, under
    the $200 million share repurchase program authorized in August.For the
    full year, the Company's share repurchases totaled 1.6 million shares at a
    cost of approximately $50 million.
    
  *Debt Refinancing – In November, the Company completed a private offering
    of $250 million of senior notes due 2017 with an interest rate of LIBOR
    plus 2.75%.The Company used the proceeds from the offering to redeem all
    of its $150 million outstanding floating rate senior notes due 2014, to
    repay approximately $45 million of its floating rate term loan due 2016,
    and to repurchase approximately $48 million of other outstanding corporate
    debt.
    
  *Asset-Backed Debt Offering – In February 2014, the Company's Avis Budget
    Rental Car Funding subsidiary issued approximately $675 million in
    five-year asset-backed notes with a weighted-average interest of 2.6%.The
    proceeds from the borrowing will provide funds for the repayment of
    maturing vehicle-backed debt and the acquisition of cars in the United
    States.
    
  *Annual Stockholders Meeting – We have scheduled our 2014 Annual Meeting of
    Stockholders for May 23, 2014 in Wilmington, Del. Stockholders of record
    as of the close of business on March 27, 2014 will be entitled to vote at
    the annual meeting.

Outlook

The Company today issued its estimates of its full-year 2014 results.The
Company expects:

  *Full-year 2014 revenue will be approximately $8.3 billion to $8.5 billion,
    a 5% to 7% increase compared to 2013. In the Company's North America
    segment, rental days are expected to increase 3% to 5%, and pricing is
    expected to increase approximately 1% in 2014.
    
  *Adjusted EBITDA will increase 7% to 17%, to approximately $825 million to
    $900 million, excluding certain items.
    
  *Per-unit fleet costs in its North America segment will be approximately
    $300 to $310 per month in 2014, compared to $299 per month in 2013.Total
    Company fleet costs are expected to be $295 to $305 per unit per month in
    2014, an increase of approximately 2% to 5% compared to 2013.
    
  *Interest expense related to corporate debt will be approximately $220
    million, a reduction of $8 million compared to 2013.
    
  *2014 non-vehicle depreciation and amortization expense (excluding the
    amortization of intangible assets related to the acquisitions of Avis
    Europe and Zipcar) will be approximately $150 million to $155 million.
    
  *Pretax income will be approximately $450 million to $530 million,
    excluding certain items.
    
  *Its effective tax rate in 2014 will be approximately 38%, excluding
    certain items, and its diluted share count will be approximately 114
    million, including the effect of completing the remainder of the Company's
    existing $200 million share repurchase authorization in 2014. 

Based on these expectations, the Company estimates that its 2014 diluted
earnings per share, excluding certain items, will increase approximately 11%
to 30% compared to 2013, to $2.45 to $2.85.

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 2013 compared to 2012 and expects that such initiatives
will provide incremental benefits of more than $50 million in 2014.In
addition, the Company expects to achieve incremental synergy benefits in 2014
from its acquisition and continued integration of Avis Europe, Payless and
Zipcar.

The Company also continues to target $1 billion or more of Adjusted EBITDA,
excluding certain items, in 2015.

Investor Conference Call

Avis Budget Group will host a conference call to discuss fourth quarter
results on February 20, 2014, 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 February 20 until 8:00 p.m. (ET) on March 7
at (203) 369-3578, access code: "Avis Budget."

Investor Day

Avis Budget Group will host an Investor Day meeting on February 24, 2014 in
New York City.The day will include presentations by members of the Company's
senior leadership team, a question-and-answer period, and an informal lunch
providing institutional investors the opportunity to interact with
management.Advance registration is required to attend the event.The Investor
Day will be webcast live and a replay will be available following the
conclusion of the event.To register or to access the webcast, please visit
ir.avisbudgetgroup.com.

About Avis Budget Group

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 860,000 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
our outlook, 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, Payless 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 change in
travel demand, including any change 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 global 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, our 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 our 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 the Company'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 and quarterly report on Form 10-Q for the
quarter ended September 30, 2013, 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, free
cash flow, 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, free cash flow, pretax income and
diluted earnings per share, excluding certain items under each measure, are
net income, net cash provided by operating activities, income (loss) before
income taxes and diluted earnings per share.Because of the forward-looking
nature of the Company's forecasted non-GAAP Adjusted EBITDA, free cash flow,
pretax income and diluted earnings per share, excluding certain items,
specific quantifications of the amounts that would be required to reconcile
forecasted net income, net cash provided by operating activities, 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 measures to forecasted GAAP measures 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,
                        2013       2012      %      2013     2012     %
                                              Change                   Change
Income Statement and Other Certain                                 
Items
Net revenues            $1,849   $1,698  9%     $7,937 $7,357 8%
Adjusted EBITDA          92        66       39%    708     802     (12%)
(non-GAAP)
Income (loss) before     (38)      (63)      *      97      300      (68%)
income taxes
Net income (loss)        (28)      (46)     *      16      290     (94%)
Earnings (loss) per      (0.26)    (0.43)   *      0.15    2.42    (94%)
share - Diluted
                                                                 
Excluding Certain Items (non-GAAP)                                 
(A)
Net revenues            $1,849   $1,698  9%     $7,937 $7,357 8%
Adjusted EBITDA          114       78       46%    769     840     (8%)
Income (loss) before     21        (11)      *      413     463      (11%)
income taxes
Net income (loss)        17        (6)       *      256     291      (12%)
Earnings (loss) per      0.15      (0.07)   *      2.20    2.43     (9%)
share - Diluted
                                                                 
                        As of                                     
                         December   December
                        31,        31,                             
                         2013       2012
Balance Sheet Items                                               
Cash and cash            $693     $606                          
equivalents
Vehicles, net            9,582     9,274                          
Debt under vehicle       7,337     6,806                          
programs
Corporate debt           3,394     2,905                          
Stockholders' equity     771       757                            
                                                                 
Segment Results                                                   
                        Three Months Ended December Year Ended December 31,
                         31,
                        2013       2012      %      2013     2012     %
                                              Change                   Change
Net Revenues                                                      
North America            $1,178   $1,060  11%    $5,083 $4,640 10%
International           586       550      7%     2,481   2,342   6%
Truck Rental             85        87       (2%)   373     374     0%
Corporate and Other      -        1        *      -      1       *
Total Company            $1,849   $1,698  9%     $7,937 $7,357 8%
                                                                 
Adjusted EBITDA (B)                                               
North America            $73      $47     55%    $500   $556   (10%)
International           29        24       21%    240     234     3%
Truck Rental             3         1        *      15      33      (55%)
Corporate and Other      (13)      (6)      *      (47)    (21)    *
Total Company            $92      $66     39%    $708   $802   (12%)
                                                                 
Reconciliation of Adjusted EBITDA to Pretax                         
Income (loss)
Total Company Adjusted   $92      $66           $708   $802   
EBITDA
Less: Non-vehicle
related depreciation and 42        34             152     125     
amortization
Interest expense related to                                        
corporate debt, net:
Interest expense        58        59             228     268     
Early extinguishment of  16        23             147     75      
debt
Transaction-related      14        13             51      34      
costs
Impairment               -        -             33      -      
Income (loss) before     $(38)    $(63)   *      $97    $300   (68%)
income taxes
_________                                                         
* Not meaningful.                                              


(A) During the three months and year ended December 31, 2013, we recorded
certain items in our operating results before income taxes of $59 million and
$316 million ($45 million and $240 million, net of tax), respectively. For the
three months ended December 31, 2013, these items consisted of $16 million
($14 million, net of tax) for the early extinguishment of corporate debt, $22
million ($15 million, net of tax) in restructuring expenses, $14 million ($12
million, net of tax) for transaction-related costs primarily related to the
integration of Avis Europe and Zipcar and $7 million ($4 million, net of tax)
for amortization expense related to intangible assets recognized in the
acquisitions of Avis Europe and Zipcar. For the year ended December 31, 2013,
these items consisted of $147 million ($110 million, net of tax) for costs
related to the early extinguishment of corporate debt, $61 million ($40
million, net of tax) in restructuring expenses, $51 million ($41 million, net
of tax) for transaction-related costs primarily related to the integration of
Avis Europe and the acquisition and integration of Zipcar, $24 million ($16
million, net of tax) for amortization expense related to intangible assets
recognized in the acquisitions of Avis Europe and Zipcar and $33 million ($33
million, net of tax) for the impairment of our equity-method investment in our
Brazilian licensee.

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-2007
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 expenses 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 expenses, $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.

(B) See Table 5 for a description of Adjusted EBITDA. Adjusted EBITDA includes
stock-based compensation expense and deferred financing fee amortization of
$12 million and $10 million in fourth quarter 2013 and 2012, respectively, and
$45 million and $39 million in the year ended December 31, 2013 and 2012,
respectively.

                                                                 
                                                                 Table 2
                                                                 
Avis Budget Group, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
                                                                 
                                                                 
                                     Three Months Ended Year Ended December
                                      December 31,       31,
                                     2013      2012      2013       2012
Revenues                                                          
Vehicle rental                        $1,318  $1,213  $5,707   $5,297
Other                                 531      485      2,230     2,060
Net revenues                          1,849    1,698    7,937     7,357
                                                                 
Expenses                                                          
Operating                             994      942      4,074     3,824
Vehicle depreciation and lease        424      383      1,811     1,471
charges, net
Selling, general and administrative   248      229      1,019     925
Vehicle interest, net                 69       66       264       297
Non-vehicle related depreciation and  42       34       152       125
amortization
Interest expense related to corporate                             
debt, net:
Interest expense                      58       59       228       268
Early extinguishment of debt          16       23       147       75
Restructuring expense                 22       12       61        38
Transaction-related costs             14       13       51        34
Impairment (A)                        -       -       33        -
Total expenses                        1,887    1,761    7,840     7,057
                                                                 
Income (loss) before income taxes     (38)     (63)     97        300
Provision for (benefit from) income   (10)     (17)     81        10
taxes
Net income (loss)                     $(28)   $(46)   $16       $290
                                                                 
Earnings (loss) per share                                         
Basic                                 $(0.26) $(0.43) $0.15    $2.72
Diluted                               $(0.26) $(0.43) $0.15    $2.42
                                                                 
Weighted average shares outstanding                               
Basic                                 107.1    106.9    107.6     106.6
Diluted                               107.1    106.9    116.6     121.6
_________                                                         

    We recorded a charge of $33 million ($33 million, net of tax) in third
(A) quarter 2013 for the impairment of our equity-method investment in our
    Brazilian licensee.

                                                                
                                                                Table 3
                                                                
Avis Budget Group, Inc.
SEGMENT REVENUE DRIVER ANALYSIS
                                                                
                                                                
                   Three Months Ended December 31, Year Ended December 31,
                   2013       2012       % Change  2013     2012     % Change
CAR RENTAL (A)                                                   
                                                                
North America                                                    
Segment (B)
                                                                
Rental Days (000's) 20,836     19,746     6%        89,086   85,954   4%
Time and Mileage    $39.38   $39.95   (1%)      $40.55 $40.22 1%
Revenue per Day (C)
Average Rental      317,210   303,238   5%        342,430 329,146 4%
Fleet
                                                                
International                                                    
Segment
                                                                
Rental Days         8,638      8,149      6%        37,400   35,371   6%
(000's)
Time and Mileage    $42.50   $43.44   (2%)      $42.48 $43.49 (2%)
Revenue per Day (D)
Average Rental      138,303   134,165   3%        145,263 139,769 4%
Fleet
                                                                
Total Car Rental                                                 
(B)
                                                                
Rental Days         29,474    27,895    6%        126,486 121,325 4%
(000's)
Time and Mileage    $40.29   $40.97   (2%)      $41.12 $41.17 0%
Revenue per Day
Average Rental      455,513   437,403   4%        487,693 468,915 4%
Fleet
                                                                
TRUCK RENTAL                                                     
SEGMENT
                                                                
Rental Days         1,053      1,103      (5%)      3,953    4,215    (6%)
(000's)
Time and Mileage    $68.36   $63.82   7%        $76.85 $71.64 7%
Revenue per Day
Average Rental      23,386    27,226    (14%)     24,692  26,774  (8%)
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) Amounts exclude Zipcar.
(B) Excluding the July 2013
acquisition of Payless, the results
for North America and Total Car
Rental would have been as follows:

                  Three Months Ended December 31,  Year Ended December 31,
North America
(excluding         2013        2012       % Change  2013     2012     % Change
Payless)
Rental Days        20,326      19,746     3%        88,120   85,954   3%
(000's)
Time and Mileage   $39.74    $39.95   (1%)      $40.70 $40.22 1%
Revenue per Day *
Average Rental     309,505    303,238   2%        338,676 329,146 3%
Fleet
                                                                
Total Car Rental
(excluding                                                       
Payless)
Rental Days        28,964      27,895     4%        125,520  121,325  3%
(000's)
Time and Mileage   $40.56    $40.97   (1%)      $41.23 $41.17 0%
Revenue per Day
Average Rental     447,808     437,403    2%        483,939  468,915  3%
Fleet
                                                                
                                                                
* Excluding currency exchange effects, time and mileage revenue per day
remained unchanged and increased 1 percentage point in the three months and
year ended December 31, 2013, respectively.

(C) Excluding currency exchange effects, time and mileage revenue per day
decreased 1 and increased 1 percentage point in the three months and year
ended December 31, 2013, respectively.
(D) Excluding currency exchange effects, time and mileage revenue per day
decreased 2 and 3 percentage points in the three months and year ended
December 31, 2013. Reported time and mileage revenue per day for the three
months and year ended December 31, 2013 has been negatively impacted by the
Company's implementation of unbundled pricing strategies in the United
Kingdom, Switzerland and Austria, which has favorably impacted total revenues
per rental day.

                                                            
                                                            Table 4
                                                            
Avis Budget Group, Inc.
CONSOLIDATED CONDENSED SCHEDULES OF CASH FLOWS AND FREE CASH FLOWS
(In millions)
                                                            
CONSOLIDATED CONDENSED SCHEDULE OF CASH FLOWS
                                                            
                                                            Year Ended
                                                             December 31, 2013
Operating Activities                                         
Net cash provided by operating activities                    $2,253
                                                            
Investing Activities                                         
Net cash used in investing activities exclusive of vehicle   (665)
programs
Net cash used in investing activities of vehicle programs    (1,569)
Net cash used in investing activities                        (2,234)
                                                            
Financing Activities                                         
Net cash providedby financing activities exclusive of       272
vehicle programs
Net cash used in financing activities of vehicle programs    (196)
Net cash provided by financing activities                    76
                                                            
Effect of changes in exchange rates on cash and cash         (8)
equivalents
Net change in cash and cash equivalents                      87
Cash and cash equivalents, beginning of period               606
Cash and cash equivalents, end of period                     $693
                                                            
                                                            
CONSOLIDATED SCHEDULE OF FREE CASH FLOWS (A)
                                                            Year Ended
                                                             December 31, 2013
Pretax income                                                $97
Add-back of non-vehicle related depreciation and             152
amortization
Add-back of debt extinguishment costs                        147
Add-back of transaction-related costs and impairment         84
Working capital and other                                    109
Capital expenditures                                         (154)
Tax payments, net of refunds                                 (58)
Vehicle programs and related (B)                             83
Free Cash Flow                                               460
                                                            
Acquisition and related payments, net of acquired cash (C)   (612)
Borrowings, net of debt repayments                           328
Transaction-related payments                                 (61)
Repurchases of common stock                                  (48)
Financing costs, foreign exchange effects and other          20
Net change in cash and cash equivalents (per above)          $87
                                                            

(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 the acquisitions of Zipcar and Payless Car Rental, our equity
investment in our existing Brazilian licensee and settlement of a litigation
judgment related to our acquisition of the Budget vehicle rental business in
2002, and excludes $9 million of vehicle assets purchased in the acquisition
of licensees included within vehicle programs and related.

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

                                                     Year Ended
                                                      December 31, 2013
Free Cash Flow (per above)                            $460
Investing activities of vehicle programs              1,569
Financing activities of vehicle programs              196
Capital expenditures                                  154
Proceeds received on asset sales                      (22)
Change in restricted cash                             (14)
Acquisition-related payments                          (29)
Transaction-related payments                          (61)
Net Cash Provided by Operating Activities (per above) $2,253

                                                
                                                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, early extinguishment of debt, 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 (loss) per
share for the three months and year ended December 31, 2013, excluding certain
items. For the three months ended December 31, 2013, these items consisted of
$16 million ($14 million, net of tax) for costs related to the early
extinguishment of corporate debt, $22 million ($15 million, net of tax) in
restructuring expenses, $14 million ($12 million, net of tax) for
transaction-related costs primarily related to the integration of Avis Europe
and Zipcar, and $7 million ($4 million, net of tax) for amortization expense
related to intangible assets recognized in the acquisitions of Avis Europe and
Zipcar.

For the year ended December 31, 2013, these items consisted of $147 million
($110 million, net of tax) for costs related to the early extinguishment of
corporate debt, $61 million ($40 million, net of tax) in restructuring
expenses, $51 million ($41 million, net of tax) for transaction-related costs
primarily related to the integration of Avis Europe and the acquisition and
integration of Zipcar, $24 million ($16 million, net of tax) for amortization
expense related to intangible assets recognized in the acquisitions of Avis
Europe and Zipcar, and $33 million ($33 million, net of tax) for the
impairment of our equity-method investment in our Brazilian licensee.

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,
2013.
                                                
Reconciliation of Avis Budget Group, Inc. Adjusted EBITDA, excluding certain
items to net income (loss):

                                                                
                                               Three Months Ended Year Ended
                                              December 31, 2013  December 31,
                                                                  2013
Adjusted EBITDA, excluding certain items       $114             $769
                                                                
Less: Non-vehicle related depreciation and
amortization (excluding acquisition-related    35                128
amortization expense)
Interest expense related to corporate debt,    58                228
net (excluding early extinguishment of debt)
Income before income taxes, excluding certain  21                413
items
                                                                
Less certain items:                                              
Early extinguishment of debt                   16                147
Restructuring expense                          22                61
Transaction-related costs                      14                51
Acquisition-related amortization expense       7                 24
Impairment                                     -                33
Income (loss) before income taxes              (38)              97
Provision for (benefit from) income taxes      (10)              81
Net income (loss)                              $(28)            $16
                                                                
Reconciliation of net income, excluding                          
certain items to net income (loss):
                                                                
Net income, excluding certain items            $17              $256
Less certain items, net of tax:                                   
Early extinguishment of debt                   14                110
Restructuring expense                          15                40
Transaction-related costs                      12                41
Acquisition-related amortization expense       4                 16
Impairment                                     -                33
Net income (loss)                              $(28)            $16
                                                                
Earnings per share, excluding certain items    $0.15            $2.20
(diluted)
                                                                
Earnings (loss) per share (diluted)            $(0.26)          $0.15
                                                                
Shares used to calculate earnings per share,   115.4             116.6
excluding certain items (diluted)

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) for costs related to 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) for costs related to 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
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-2007 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, excluding certain
items to net income (loss):
                                                                
                                               Three Months Ended Year Ended
                                              December 31, 2012  December 31,
                                                                  2012
Adjusted EBITDA, excluding certain items       $78              $840
                                                                
Less: Non-vehicle related depreciation and
amortization (excluding acquisition-related    30                109
amortization expense)
Interest expense related to corporate debt,    59                268
net (excluding early extinguishment of debt)
Income (loss) before income taxes, excluding   (11)              463
certain items
                                                                
Less certain items:                                              
Early extinguishment of debt                   23                75
Restructuring expense                          12                38
Transaction-related costs                      13                34
Acquisition-related amortization expense       4                 16
Income (loss) before income taxes              (63)              300
                                                                
Provision for (benefit from) income taxes,     (5)               172
excluding certain items
Benefit from income taxes on certain items     (12)              (162)
Provision for (benefit from) income taxes      (17)              10
Net income (loss)                              $(46)            $290
                                                                
Reconciliation of net income (loss), excluding                   
certain items to net income (loss):
                                                                
Net income (loss), excluding certain items     $(6)             $291
Less certain items, net of tax:                                  
Early extinguishment of debt                   16                61
Restructuring expense                          9                 27
Transaction-related costs                      13                30
Acquisition-related amortization expense       2                 11
Non-cash income tax benefit for pre-2007 taxes -                (128)
Net income (loss)                              $(46)            $290
                                                                
Earnings (loss) per share, excluding certain   $(0.07)          $2.43
items (diluted)
                                                                
Earnings (loss) per share (diluted)            $(0.43)          $2.42
                                                                
Shares used to calculate earnings per share,   106.9             121.6
excluding 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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