Dollar Rent A Car 2011 Annual Report Download - page 35

Corporate Adjusted EBITDA means earnings, excluding the impact of the (increase) decrease in fair value of derivatives, before non-vehicle interest expense,
income taxes, non-vehicle depreciation, amortization, and certain other items as shown below. The Company believes Corporate Adjusted EBITDA is
important as it provides a supplemental measure of the Company's liquidity by adjusting earnings to exclude certain non-cash items, taxes and corporate-level
capital structure decisions (i.e. non-vehicle interest), thus, allowing the Company’s management, including the chief operating decision maker, as well as
investors and analysts, to evaluate the Company’s operating cash flows based on the core operations of the Company. Additionally, the Company believes
Corporate Adjusted EBITDA is a relevant measure of operating performance in providing a measure of profitability that focuses on the core operations of the
Company while excluding certain items that do not directly reflect ongoing operating performance. The Company’s management, including the chief operating
decision maker, uses Corporate Adjusted EBITDA to evaluate the Company’s performance and in preparing monthly operating performance reviews and
annual operating budgets. The items excluded from Corporate Adjusted EBITDA, but included in the calculation of the Company’s reported net income, are
significant components of its consolidated statements of income, and must be considered in performing a comprehensive assessment of overall financial
performance. Corporate Adjusted EBITDA is not defined under GAAP and should not be considered as an alternative measure of the Company's net income,
cash flow or liquidity. Corporate Adjusted EBITDA amounts presented may not be comparable to similar measures disclosed by other companies. See the
table below for a reconciliation of non-GAAP to GAAP results.
Year Ended December 31,
2011 2010 2009
(in thousands)
Reconciliation of net income to
Corporate Adjusted EBITDA
Net income - as reported $ 159,550 $ 131,216 $ 45,022
Increase in fair value of derivatives (3,244) (28,694) (28,848)
Non-vehicle interest expense 10,699 9,647 12,797
Income tax expense 101,692 90,202 35,986
Non-vehicle depreciation 19,381 20,190 19,200
Amortization 7,505 7,290 7,994
Non-cash stock incentives 3,234 4,785 4,698
Long-lived asset impairment - 1,057 2,592
Other (249) (25) (6)
Corporate Adjusted EBITDA $ 298,568 $ 235,668 $ 99,435
Reconciliation of Corporate Adjusted EBITDA
to Cash Flows From Operating Activities
Corporate Adjusted EBITDA $ 298,568 $ 235,668 $ 99,435
Vehicle depreciation, net of gains/losses from disposal 270,927 299,149 425,574
Non-vehicle interest expense (10,699) (9,647) (12,797)
Change in assets and liabilities and other 8,498 (63,229) 23,712
Net cash provided by operating activities $ 567,294 $ 461,941 $ 535,924
Memo:
Net cash provided by (used in) investing activites $ (402,501) $ (59,094) $ 278,955
Net cash used in financing activities $ (119,298) $ (340,098) $ (644,111)
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