PARSIPPANY, N.J., Aug. 07, 2018 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) today reported results for its second quarter ended June 30, 2018.

-- Revenue grew 4% to a record $2.3 billion in the second quarter -- Significant improvements in per-unit fleet costs and utilization -- Net Income improved to $26 million and Adjusted Net Income increased 84% to $46 million, or $0.57 per diluted share -- Adjusted EBITDA increased 15% to $161 million -- Company authorizes additional $250 million of future share repurchases and updates its full-year projected 2018 results

"Our strong second quarter results reflect continued global volume growth and higher underlying pricing in the Americas leading to meaningful margin improvement," said Larry De Shon, Avis Budget Group President and Chief Executive Officer. "We made a number of strategically important tuck-in acquisitions during the quarter and are also very excited about our recent announcements regarding Amazon, Lyft and Luxury Retreats, which was acquired by Airbnb in February 2017, as we expand our reach to include some of the leading innovators in their respective industries."

$ millions 2018 2017 % change --------------- ----- ----- -------- - Revenues 2,328 2,238 4 % Net Income 26 3 n/m Adjusted EBITDA 161 140 15 % --------------- ----- ----- -------- -

Revenue growth in the quarter was driven by a 4% increase in volume, higher Americas underlying pricing under our historical T&M per day metric and a 2% benefit from currency exchange rates. This strong revenue performance combined with a 5% reduction in local currency per-unit fleet costs and a 50 basis point improvement in utilization enabled the Company to drive a 15% increase in Adjusted EBITDA. Net Income was $26 million, or $0.32 per diluted share and Adjusted net income improved 84% to $46 million, or $0.57 per diluted share.

Business Segment Discussion

Americas

$ millions 2018 2017 % change --------------- ----- ----- -------- - Revenues 1,590 1,565 2 % Adjusted EBITDA 107 96 11 % --------------- ----- ----- -------- -

Revenue growth in the quarter was driven by a 2% increase in volume. Revenue per Day was 1% lower, primarily due to lower ancillary revenue and the change in loyalty accounting, but was 1% higher under our historical T&M per day metric. This revenue growth together with 7% lower per-unit fleet costs and a 70 basis point improvement in utilization resulted in Adjusted EBITDA increasing 11% to $107 million in the quarter.

International

$ millions 2018 2017 % change --------------- ---- ---- -------- - Revenues 738 673 10 % Adjusted EBITDA 71 59 20 % --------------- ---- ---- -------- -

Revenue growth in the quarter was driven by 6% higher volume and a $40 million benefit from foreign currency rates, partially offset by 2% lower local currency Revenue per Day (also 2% lower under our historical T&M metric). The strong revenue growth, unchanged per-unit fleet costs, improved utilization and a $19 million benefit from currency resulted in Adjusted EBITDA improving by 20% to $71 million for the quarter.

Balance Sheet

The Company's corporate debt was approximately $3.6 billion at the end of the second quarter of 2018 and cash and cash equivalents totaled $489 million, compared to $3.6 billion of corporate debt and $611 million of cash and cash equivalents at December 31, 2017.

Other Items

The Company repurchased 1.6 million shares of its common shares in the second quarter, or 2% of its shares outstanding, at a cost of $67 million. Weighted average diluted shares outstanding (as used to calculate Adjusted diluted earnings per share) were 81.5 million in the second quarter compared to 85.2 million the prior year, a 4% year-over-year reduction.

The Company also announced that its share repurchase authorization has been increased by an additional $250 million, which gives it $283 million of available repurchase authorization from July 1, 2018 going forward.

OutlookOur full-year 2018 outlook includes non-GAAP financial measures and excludes the effect of future changes in currency exchange rates. The Company believes that it is impracticable to provide a reconciliation to the most comparable GAAP measures due to the forward-looking nature of these forecasted Adjusted earnings metrics and the degree of uncertainty associated with forecasting the reconciling items and amounts. The Company further believes that providing estimates of the amounts that would be required to reconcile the forecasted adjusted measures to forecasted GAAP measures would imply a degree of precision that would be confusing or misleading to investors. The after-tax effect of reconciling items could be significant to the Company’s future quarterly or annual results.

The Company today updated its estimated full-year 2018 results as follows:

$ millions * 2018 Estimates ----------------------------------- --------------- Revenues $9,050 - $9,300 Adjusted EBITDA $740 - $820 Adjusted pretax income $340 - $420 Adjusted net income $245 - $315 Adjusted diluted earnings per share $3.00 - $3.85 Adjusted free cash flow $325 - $375 ----------------------------------- --------------- *Excluding Adjusted diluted earnings per share.

Additional Guidance Details:

Americas

% change vs prior year ------------------------------ --------------- Rental days 1.0% - 3.0% Revenue per Day (1.0%) - 1.0% Per-Unit Fleet Costs per Month (3.0%) - (1.0%) ------------------------------ --------------- Revenue per day and per-unit fleet costs exclude the effect of changes in currency exchange rates. Revenue per day also reflects the effect of the newly adopted revenue recognition standard pertaining to customer loyalty programs.

International

% change vs prior year ------------------------------ --------------- Rental days 5.0% - 7.0% Revenue per Day (3.0%) - (1.0%) Per-Unit Fleet Costs per Month 0.0% - 2.0% ------------------------------ --------------- Revenue per day and per-unit fleet costs exclude the effect of changes in currency exchange rates.

Investor Conference CallAvis Budget Group will host a conference call to discuss second quarter results and its outlook on August 8, 2018, at 8:30 a.m. (ET). Investors may access the call at ir.avisbudgetgroup.com or by dialing (630) 395-0021 and providing the participant passcode 2995545. The supporting presentation will also be available at ir.avisbudgetgroup.com. 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 August 8 until 10:00 p.m. (ET) on August 22 at (203) 369-1607.

About Avis Budget GroupAvis Budget Group, Inc. is a leading global provider of mobility solutions, both through its Avis and Budget brands, which have more than 11,000 rental locations in approximately 180 countries around the world, and through its Zipcar brand, which is the world’s leading car sharing network, with more than one million members. Avis Budget Group operates most of its car rental offices in North America, Europe and Australasia directly, and operates primarily through licensees in other parts of the world. Avis Budget Group has approximately 31,000 employees and is headquartered in Parsippany, N.J. More information is available at www.avisbudgetgroup.com.

Forward-Looking StatementsCertain 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, cost-saving initiatives and future share repurchases 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 acquired businesses, 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 of new vehicles, manufacturer recalls and/or the value of used vehicles, disruption in the supply of new vehicles, disposition of vehicles not covered by manufacturer repurchase programs, the financial condition of the manufacturers that supply our rental vehicles, which could effect their ability to perform their obligations under our repurchase and/or guaranteed depreciation arrangements, any change in travel demand, including changes 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, governmental or regulatory inquiries or investigations involving the Company, changes in tax or other regulations, changes to our share repurchase plans, risks related to acquisitions, and our ability to accurately estimate our future results and implement our 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, 2017 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 Securities and Exchange Commission (the "SEC") from time to time. 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.

Non-GAAP Financial MeasuresThis release includes financial measures such as Adjusted EBITDA and Adjusted free cash flow, as well as metrics that exclude certain items that are not considered generally accepted accounting principles (“GAAP”) measures as defined under SEC rules. Important information regarding such measures is contained on Table 1, Table 4,Table 5 and Appendix I of this release. The Company and its management believe that these non-GAAP measures are useful to investors in measuring the comparable results of the Company period-over-period. The GAAP measures most directly comparable to Adjusted EBITDA, Adjusted free cash flow, Adjusted pretax income (loss), Adjusted net income (loss) and Adjusted diluted earnings (loss) per share are net income (loss), net cash provided by operating activities, income(loss) before income taxes, net income (loss) and diluted earnings (loss) per share, respectively. Foreign currency translation effects on the Company’s results are quantified by translating the current period’s non-U.S.-dollar-denominated results using the currency exchange rates of the prior period of comparison plus any related gains and losses on currency hedges. Per-unit fleet costs, which represent vehicle depreciation, lease charges and gain or loss on vehicle sales, divided by average rental fleet, is calculated on a per-month basis.

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

Table 1

Avis Budget Group, Inc. SUMMARY DATA SHEET (In millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, % % 2018 2017 Change 2018 2017 Chang e -------- ------------ ----- --------- --------- ---- Income Statement and Other Items Revenues $ 2,328 $ 2,238 4 % $ 4,296 $ 4,077 5 % Income (loss) before income taxes 38 11 n/m (91 ) (154 ) 41 % Net income (loss) 26 3 n/m (61 ) (104 ) 41 % Earnings (loss) per share - Diluted 0.32 0.04 n/m (0.75 ) (1.22 ) 39 % Adjusted Earnings Metrics (non-GAAP) (A) Adjusted EBITDA 161 140 15 % 163 113 44 % Adjusted pretax income (loss) 64 42 52 % (28 ) (83 ) 66 % Adjusted net income (loss) 46 25 84 % (14 ) (56 ) 75 % Adjusted earnings (loss) per share - Diluted 0.57 0.30 90 % (0.17 ) (0.65 ) 74 % As of June 30, December 31, 2018 2017 -------- ------------ Balance Sheet Items Cash and cash equivalents $ 489 $ 611 Vehicles, net 13,867 10,626 Debt under vehicle programs 11,776 9,221 Corporate debt 3,568 3,599 Stockholders’ equity 372 573

Segment Results Three Months Ended June 30, Six Months Ended June 30, 2018 2017 % 2018 2017 % Change Change --------- --------- ----- --------- --------- ----- Revenues Americas $ 1,590 $ 1,565 2 % $ 2,938 $ 2,879 2 % International 738 673 10 % 1,358 1,198 13 % Corporate and Other — — n/m — — n/m Total Company $ 2,328 $ 2,238 4 % $ 4,296 $ 4,077 5 % - ----- - - ----- - - ----- - - ----- - Adjusted EBITDA (A) Americas $ 107 $ 96 11 % $ 122 $ 76 61 % International 71 59 20 % 74 66 12 % Corporate and Other (17 ) (15 ) n/m (33 ) (29 ) n/m Total Company $ 161 $ 140 15 % $ 163 $ 113 44 % - ----- - - ----- - - ----- - - ----- -

_______ n/m Not meaningful. (A) See Table 5 for reconciliations of non-GAAP measures and Appendix I for definitions.

Table 2

Avis Budget Group, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 -------- ----------------- --------- --------- Revenues $ 2,328 $ 2,238 $ 4,296 $ 4,077 - ----- - ----- --------- - ----- - - ----- - Expenses Operating 1,175 1,108 2,267 2,157 Vehicle depreciation and lease charges, net 591 597 1,106 1,101 Selling, general and administrative 321 293 617 555 Vehicle interest, net 80 73 152 137 Non-vehicle related depreciation and amortization 67 65 128 128 Interest expense related to corporate debt, net: Interest expense 49 48 95 97 Early extinguishment of debt — — 5 3 Restructuring and other related charges 4 38 10 45 Transaction-related costs, net 3 5 7 8 Total expenses 2,290 2,227 4,387 4,231 ------- ------- --------- ------- - ------- - Income (loss) before income taxes 38 11 (91 ) (154 ) Provision for (benefit from) income taxes 12 8 (30 ) (50 ) Net income (loss) $ 26 $ 3 $ (61 ) $ (104 ) - ----- - ----- --------- - ----- - - ----- - Earnings (loss) per share Basic $ 0.33 $ 0.04 $ (0.75 ) $ (1.22 ) Diluted $ 0.32 $ 0.04 $ (0.75 ) $ (1.22 ) Weighted average shares outstanding Basic 80.7 84.0 80.8 84.9 Diluted 81.5 85.2 80.8 84.9

Table 3

Avis Budget Group, Inc. SEGMENT DRIVER ANALYSIS Three Months Ended June 30, Six Months Ended June 30, 2018 2017 % Change 2018 2017 % Change --------- --------- --------- --------- --------- --------- Americas Rental Days (000’s) 28,729 28,047 2 % 53,671 52,318 3 % Revenue per Day excluding exchange rate $ 55.29 $ 55.79 (1 %) $ 54.68 $ 55.02 (1 %) effects (A) Average Rental Fleet 452,526 446,104 1 % 425,578 420,408 1 % Vehicle Utilization 69.8 % 69.1 % 70 bps 69.7 % 68.8 % 90 bps Per-Unit Fleet Costs per Month $ 322 $ 345 (7 %) $ 322 $ 340 (5 %) excluding exchange rate effects (A) International Rental Days (000’s) 14,375 13,574 6 % 25,889 24,152 7 % Revenue per Day excluding exchange rate $ 48.51 $ 49.60 (2 %) $ 48.55 $ 49.63 (2 %) effects (A) Average Rental Fleet 222,826 210,734 6 % 203,816 190,635 7 % Vehicle Utilization 70.9 % 70.8 % 10 bps 70.2 % 70.0 % 20 bps Per-Unit Fleet Costs per Month $ 217 $ 216 0 % $ 213 $ 213 0 % excluding exchange rate effects (A) Total Rental Days (000’s) 43,104 41,621 4 % 79,560 76,470 4 % Revenue per Day excluding exchange rate $ 53.03 $ 53.78 (1 %) $ 52.68 $ 53.32 (1 %) effects (A) Average Rental Fleet 675,352 656,838 3 % 629,394 611,043 3 % Vehicle Utilization 70.1 % 69.6 % 50 bps 69.8 % 69.1 % 70 bps Per-Unit Fleet Costs per Month $ 287 $ 303 (5 %) $ 287 $ 300 (4 %) excluding exchange rate effects (A) _______ Rental days, revenue per day and vehicle utilization are calculated based on the actual rental of the vehicle during a 24-hour period. Our calculation of rental days and revenue per day may not be comparable to the calculation of similarly-titled statistics by other companies. Refer to Table 6 for segment driver calculations and Appendix I for driver definitions. (A) The following metrics include changes in currency exchange rates: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 % Change 2018 2017 % Change --------- --------- --------- --------- --------- --------- Americas Revenue per Day $ 55.35 $ 55.79 (1 %) $ 54.74 $ 55.02 (1 %) Per-Unit Fleet Costs per Month $ 322 $ 345 (7 %) $ 322 $ 340 (5 %) International Revenue per Day $ 51.31 $ 49.60 3 % $ 52.44 $ 49.63 6 % Per-Unit Fleet Costs per Month $ 230 $ 216 6 % $ 231 $ 213 8 % Total Revenue per Day $ 54.00 $ 53.78 0 % $ 53.99 $ 53.32 1 % Per-Unit Fleet Costs per Month $ 292 $ 303 (4 %) $ 293 $ 300 (2 %)

Table 4

Avis Budget Group, Inc. CONSOLIDATED CONDENSED SCHEDULES OF CASH FLOWS AND ADJUSTED FREE CASH FLOWS (In millions) CONSOLIDATED CONDENSED SCHEDULE OF CASH FLOWS Six Months Ended June 30, 2018 --------- Operating Activities Net cash provided by operating activities $ 1,121 - ----- - Investing Activities Net cash used in investing activities exclusive of vehicle programs (174 ) Net cash used in investing activities of vehicle programs (3,574 ) Net cash used in investing activities (3,748 ) ------- - Financing Activities Net cash provided by (used in) financing activities exclusive of vehicle programs (100 ) Net cash provided by (used in) financing activities of vehicle programs 2,489 Net cash provided by (used in) financing activities 2,389 ------- - Effect of changes in exchange rates on cash and cash equivalents, program and restricted cash (2 ) ------- - Net change in cash and cash equivalents, program and restricted cash (240 ) Cash and cash equivalents, program and restricted cash, beginning of period 901 Cash and cash equivalents, program and restricted cash, end of period (A) $ 661 - ----- -

_______ (A) Consists of cash and cash equivalents of $489 million, program cash of $161 million and restricted cash of $11 million as of June 30, 2018.

CONSOLIDATED SCHEDULE OF ADJUSTED FREE CASH FLOWS (B) Six Months Ended June 30, 2018 -------- Loss before income taxes $ (91 ) Add-back of non-vehicle related depreciation and amortization 128 Add-back of debt extinguishment costs 5 Add-back of transaction-related costs 7 Add-back of non-operational charges related to shareholder activist activity 9 Working capital and other 11 Capital expenditures (115 ) Tax payments, net of refunds (19 ) Vehicle programs and related(C) 122 ------ - Adjusted Free Cash Flow 57 Acquisition and related payments, net of acquired cash (D) (62 ) Borrowings, net of debt repayments (15 ) Transaction-related payments (5 ) Non-operational payments related to shareholder activist activity (9 ) Repurchases of common stock (78 ) Change in program cash (124 ) Change in restricted cash 4 Foreign exchange effects, financing costs and other (8 ) Net change in cash and cash equivalents, program and restricted cash (per above) $ (240 ) - ---- -

_______ (B) See Appendix I for a description of Adjusted Free Cash Flow. (C) Includes vehicle-backed borrowings (repayments) that are incremental to amounts required to fund incremental (reduced) vehicle and vehicle-related assets. Includes equity method investment of $37 million in our licensee in Greece, and excludes $4 million of (D) vehicles purchased as part of a domestic licensee, which was financed through incremental vehicle-backed borrowings.

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW Six Months Ended June 30, 2018 --------- Net cash provided by operating activities (per above) $ 1,121 Investing activities of vehicle programs (3,574 ) Financing activities of vehicle programs 2,489 Capital expenditures (115 ) Proceeds received on asset sales 6 Change in program cash 124 Change in restricted cash (4 ) Acquisition-related payments (4 ) Non-operational payments related to shareholder activist activity 9 Transaction-related payments 5 Adjusted Free Cash Flow (per above) $ 57 - ----- -

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 the reasons we present these non-GAAP financial measures and a description of what they represent in Appendix I. A reconciliation to the most comparable financial measure is calculated and presented below in accordance with GAAP for each non-GAAP financial measure.

Reconciliations of net income (loss), income (loss) before income taxes and diluted earnings (loss) per share to Adjusted EBITDA and our Adjusted earnings metrics are as follows:

Three Months Ended June 30, Reconciliation of net income to Adjusted EBITDA: 2018 2017 ------- -------- Net income $ 26 $ 3 Provision for income taxes 12 8 Income before income taxes 38 11 Add certain items: Acquisition-related amortization expense 19 15 Restructuring and other related charges 4 38 Transaction-related costs, net 3 5 Charges for legal matter, net (A) — (27 ) Adjusted pretax income 64 42 Add: Non-vehicle related depreciation and amortization (excluding acquisition-related 48 50 amortization expense) Interest expense related to corporate debt, net (excluding early extinguishment of 49 48 debt) Adjusted EBITDA $ 161 $ 140 - ---- - ---- - Reconciliation of net income to adjusted net income: Net income $ 26 $ 3 Add certain items, net of tax: Acquisition-related amortization expense 13 11 Restructuring and other related charges 4 23 Transaction-related costs, net 3 4 Charges for legal matter, net — (16 ) ------ ------ - Adjusted net income $ 46 $ 25 - ---- - ---- - Earnings per share - Diluted $ 0.32 $ 0.04 - ---- - ---- - Adjusted diluted earnings per share $ 0.57 $ 0.30 - ---- - ---- - Shares used to calculate Adjusted diluted earnings per share 81.5 85.2 ------ ------ -

_______ (A) Reported within operating expenses in our Consolidated Statements of Operations.

Six Months Ended June 30, Reconciliation of net loss to Adjusted EBITDA: 2018 2017 --------- --------- Net loss $ (61 ) $ (104 ) Benefit from income taxes (30 ) (50 ) Loss before income taxes (91 ) (154 ) Add certain items: Acquisition-related amortization expense 32 29 Restructuring and other related charges 10 45 Non-operational charges related to shareholder activist activity (A) 9 — Transaction-related costs, net 7 8 Early extinguishment of debt 5 3 Charges for legal matter, net (B) — (14 ) ------- - ------- - Adjusted pretax loss (28 ) (83 ) Add: Non-vehicle related depreciation and amortization (excluding acquisition-related 96 99 amortization expense) Interest expense related to corporate debt, net (excluding early extinguishment of 95 97 debt) Adjusted EBITDA $ 163 $ 113 - ----- - - ----- - Reconciliation of net loss to Adjusted net loss: Net loss $ (61 ) $ (104 ) Add certain items, net of tax: Acquisition-related amortization expense 22 20 Restructuring and other related charges 8 28 Non-operational charges related to shareholder activist activity 7 — Transaction-related costs, net 6 6 Early extinguishment of debt 4 2 Charges for legal matter, net — (8 ) ------- - ------- - Adjusted net loss $ (14 ) $ (56 ) - ----- - - ----- - Loss per share - Diluted $ (0.75 ) $ (1.22 ) - ----- - - ----- - Adjusted diluted loss per share $ (0.17 ) $ (0.65 ) - ----- - - ----- - Shares used to calculate Adjusted diluted loss per share 80.8 84.9 ------- - ------- -

_______ (A) Reported within selling, general and administrative expenses in our Consolidated Statements of Operations. (B) Reported within operating expenses in our Consolidated Statements of Operations.

Table 6

Avis Budget Group, Inc. SEGMENT DRIVER CALCULATIONS ($ in millions, except as noted) Three Months Ended June 30, Three Months Ended June 30, 2018 2017 Americas Internatio Total Americas Internatio Total nal nal --------- --------- --------- --------- --------- --------- Revenue per Day (RPD) Revenue $ 1,590 $ 738 $ 2,328 $ 1,565 $ 673 $ 2,238 Currency exchange rate effects (1 ) (40 ) (41 ) — — — ------- - ------- - ------- - ------- - ------- - ------- - Revenue excluding exchange rate effects $ 1,589 $ 698 $ 2,287 $ 1,565 $ 673 $ 2,238 Rental days (000's) 28,729 14,375 43,104 28,047 13,574 41,621 RPD excluding exchange rate effects (in $'s) $ 55.29 $ 48.51 $ 53.03 $ 55.79 $ 49.60 $ 53.78 - ----- - - ----- - - ----- - - ----- - - ----- - - ----- - Vehicle Utilization Rental days (000's) 28,729 14,375 43,104 28,047 13,574 41,621 Average rental fleet 452,526 222,826 675,352 446,104 210,734 656,838 Number of days in period 91 91 91 91 91 91 ------- - ------- - ------- - ------- - ------- - ------- - Available rental days (000's) 41,180 20,277 61,457 40,595 19,177 59,772 Vehicle utilization (A) 69.8 % 70.9 % 70.1 % 69.1 % 70.8 % 69.6 % Per-Unit Fleet Costs Vehicle depreciation and lease charges, net $ 437 $ 154 $ 591 $ 461 $ 136 $ 597 Currency exchange rate effects — (10 ) (10 ) — — — ------- - ------- - ------- - ------- - ------- - ------- - $ 437 $ 144 $ 581 $ 461 $ 136 $ 597 Average rental fleet 452,526 222,826 675,352 446,104 210,734 656,838 ------- - ------- - ------- - ------- - ------- - ------- - Per-unit fleet costs (in $'s) $ 965 $ 650 $ 861 $ 1,034 $ 648 $ 910 Number of months in period 3 3 3 3 3 3 ------- - ------- - ------- - ------- - ------- - ------- - Per-unit fleet costs per month excluding $ 322 $ 217 $ 287 $ 345 $ 216 $ 303 exchange rate effects (in $'s) - ----- - - ----- - - ----- - - ----- - - ----- - - ----- -

Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Americas Internatio Total Americas Internatio Total nal nal --------- --------- --------- --------- --------- --------- Revenue per Day (RPD) Revenue $ 2,938 $ 1,358 $ 4,296 $ 2,879 $ 1,198 $ 4,077 Currency exchange rate effects (3 ) (101 ) (104 ) — — — ------- - ------- - ------- - ------- - ------- - ------- - Revenue excluding exchange rate effects $ 2,935 $ 1,257 $ 4,192 $ 2,879 $ 1,198 $ 4,077 Rental days (000's) 53,671 25,889 79,560 52,318 24,152 76,470 RPD excluding exchange rate effects (in $'s) $ 54.68 $ 48.55 $ 52.68 $ 55.02 $ 49.63 $ 53.32 - ----- - - ----- - - ----- - - ----- - - ----- - - ----- - Vehicle Utilization Rental days (000's) 53,671 25,889 79,560 52,318 24,152 76,470 Average rental fleet 425,578 203,816 629,394 420,408 190,635 611,043 Number of days in period 181 181 181 181 181 181 ------- - ------- - ------- - ------- - ------- - ------- - Available rental days (000's) 77,029 36,891 113,920 76,094 34,505 110,599 Vehicle utilization (A) 69.7 % 70.2 % 69.8 % 68.8 % 70.0 % 69.1 % Per-Unit Fleet Costs Vehicle depreciation and lease charges, net $ 823 $ 283 $ 1,106 $ 857 $ 244 $ 1,101 Currency exchange rate effects (1 ) (23 ) (24 ) — — — ------- - ------- - ------- - ------- - ------- - ------- - $ 822 $ 260 $ 1,082 $ 857 $ 244 $ 1,101 Average rental fleet 425,578 203,816 629,394 420,408 190,635 611,043 ------- - ------- - ------- - ------- - ------- - ------- - Per-unit fleet costs (in $'s) $ 1,932 $ 1,277 $ 1,720 $ 2,040 $ 1,278 $ 1,802 Number of months in period 6 6 6 6 6 6 ------- - ------- - ------- - ------- - ------- - ------- - Per-unit fleet costs per month excluding $ 322 $ 213 $ 287 $ 340 $ 213 $ 300 exchange rate effects (in $'s) - ----- - - ----- - - ----- - - ----- - - ----- - - ----- -

_______ Currency exchange rate effects are calculated by translating the current-year results at the prior-period average exchange rate. (A) Calculated as rental days divided by available rental days.

Appendix I

Avis Budget Group, Inc.DEFINITIONS OF NON-GAAP MEASURES AND DRIVERS

Adjusted EBITDAThe accompanying press release presents Adjusted EBITDA, which represents income (loss) from continuing operations before non-vehicle related depreciation and amortization, any impairment charges, restructuring and other related charges, early extinguishment of debt costs, non-vehicle related interest, transaction-related costs, net charges for unprecedented personal-injury legal matters, non-operational charges related to shareholder activist activity and income taxes. Net charges for unprecedented personal-injury legal matters are recorded within operating expenses in our consolidated statement of operations. We have revised our definition of Adjusted EBITDA to exclude non-operational charges related to shareholder activist activity. Non-operational charges related to shareholder activist activity include third party advisory, legal and other professional service fees and are recorded within selling, general and administrative expenses in our consolidated statement of operations. We did not revise prior years’ Adjusted EBITDA amounts because there were no costs similar in nature to these costs. Adjusted EBITDA includes stock-based compensation expense and deferred financing fee amortization totaling $8 million and $10 million in second quarter 2018 and 2017, respectively, and totaling $20 million and $17 million in the six months ended June 30, 2018 and 2017, respectively.

We and our management believe that Adjusted EBITDA is useful to investors as a supplemental measure in evaluating the aggregate performance of our operating businesses and in comparing our results from period to period. Adjusted EBITDA is the measure that is used by our management, including our chief operating decision maker, to perform such evaluation. Adjusted EBITDA is also a component in the determination of management's compensation. Adjusted EBITDA should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with GAAP and our presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies. A reconciliation of Adjusted EBITDA from net loss recognized under GAAP is provided on Table 5.

Adjusted Earnings MetricsThe accompanying press release and tables present Adjusted pretax income (loss), Adjusted net income (loss) and Adjusted diluted earnings (loss) per share, which exclude certain items. We and our management believe that these measures referred to above are useful to investors as supplemental measures in evaluating the aggregate performance of the Company. We exclude restructuring and other related charges, transaction-related costs, costs related to early extinguishment of debt and other certain items as such items are not representative of the results of operations of our business less a provision for income taxes derived utilizing applicable statutory tax rates for each item. A reconciliation of our Adjusted Earnings Metrics from the appropriate measures recognized under GAAP is provided on Table 5.

Adjusted Free Cash FlowRepresents Net Cash Provided by Operating Activities adjusted to reflect the cash inflows and outflows relating to capital expenditures, the investing and financing activities of our vehicle programs, asset sales, if any, and to exclude debt extinguishment costs, transaction-related costs and non-operational charges related to shareholder activist activity. We have revised our definition of Adjusted Free Cash Flow to exclude non-operational charges related to shareholder activist activity. We did not revise prior years’ Adjusted Free Cash Flow amounts because there were no costs similar in nature to these costs. We believe that Adjusted Free Cash Flow is useful to management and investors in measuring the cash generated that is available to be used to repurchase stock, repay debt obligations, pay dividends and invest in future growth through new business development activities or acquisitions. Adjusted Free Cash Flow should not be construed as a substitute in measuring operating results or liquidity, and our presentation of Adjusted Free Cash Flow may not be comparable to similarly-titled measures used by other companies. A reconciliation of Adjusted Free Cash Flow to the appropriate measure recognized under GAAP is provided on Table 4.

Available Rental DaysDefined as Average Rental Fleet times the numbers of days in a given period.

Average Rental FleetRepresents the average number of vehicles in our fleet during a given period of time.

Currency Exchange Rate EffectsRepresents the difference between current-period results as reported and current-period results translated at the prior-period average exchange rate.

Per-Unit Fleet CostsRepresents vehicle depreciation, lease charges and gain or loss on vehicles sales, divided by Average Rental Fleet.

Rental DaysRepresents the total number of days (or portion thereof) a vehicle was rented during a 24-hour period.

Revenue per DayRepresents revenues divided by Rental Days.

Vehicle UtilizationRepresents Rental Days divided by Available Rental Days.

Contacts Media Contact: Alice Pereira (973) 496-3916 PR@avisbudget.com Investor Contact: Neal Goldner (973) 496-5086 IR@avisbudget.com