Avis 2013 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 2013 Avis annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 146

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146

47
• Vehicle interest costs declined to 4.0% of revenue, compared to 4.8% in the prior-year period, principally
due to lower borrowing rates.
Following is a more detailed discussion of the results of each of our reportable segments:
Revenues Adjusted EBITDA
2012 2011 % Change 2012 2011 % Change
North America $ 4,640 $4,495 3% $ 556 $ 442 26%
International 2,342 1,028 128% 234 127 84%
Truck Rental 374 376 (1%) 33 49 (33%)
Corporate and Other (a) 11* (21) (13) *
Total Company $ 7,357 $5,900 25% 802 605 33%
Less: Non-vehicle related depreciation and amortization 125 95
Interest expense related to corporate debt, net:
Interest expense 268 219
Early extinguishment of debt 75 —
Transaction-related costs (b) 34 255
Income before income taxes $ 300 $ 36
__________
* Not meaningful
(a) Includes unallocated corporate overhead and the elimination of transactions between segments.
(b) For 2012, primarily represents costs related to the integration of the operations of Avis Europe and, for 2011, primarily
represents costs related to our acquisition of Avis Europe and our previous efforts to acquire Dollar Thrifty.
North America
2012 2011 % Change
Revenue $ 4,640 $ 4,495 3%
Adjusted EBITDA 556 442 26%
Revenues increased 3% during 2012 compared with 2011, primarily due to a 5% increase in rental days, partially
offset by a 2% decrease in pricing.
Adjusted EBITDA increased 26% during 2012 compared with 2011, primarily due to the increase in revenue and
an 8% decline in per-unit fleet costs.
In the year ended December 31, 2012:
• Operating expenses decreased to 50.4% of revenue versus 50.6% in the prior year, highlighting our cost-
reduction efforts in an environment where our T&M revenue per day declined.
• Vehicle depreciation and lease costs declined to 20.3% of revenue in 2012 from 21.5% in the prior year,
primarily due to lower per-unit fleet costs amid strong used-car residual values during the first half of
2012.
• Selling, general and administrative costs decreased to 12.0% of revenue, compared to 12.1% of revenue
for 2011.
• Vehicle interest expense decreased to 5.3% of revenue versus 5.9% in the prior year, principally due to
lower borrowing rates.