Avis 2014 Annual Report Download - page 49

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42
In the year ended December 31, 2014:
• Operating expenses decreased to 50.1% of revenue from 51.3% in 2013, driven by increased rental
volumes and higher pricing.
• Vehicle depreciation and lease charges increased to 23.5% of revenue from 22.8% in 2013, principally
due to higher per-unit fleet costs.
• Selling, general and administrative costs decreased to 12.7% of revenue from 12.8% in 2013.
• Vehicle interest costs, at 3.3% of revenue, remained level compared to the prior year.
Following is a more detailed discussion of the results of each of our reportable segments:
Revenues Adjusted EBITDA
2014 2013 % Change 2014 2013 % Change
North America $ 5,533 $ 5,042 10% $ 607 $ 508 19%
International 2,588 2,522 3% 290 272 7%
Truck Rental 364 373 (2%) 39 36 8%
Corporate and Other (a) —— * (60) (47) *
Total Company $ 8,485 $ 7,937 7% 876 769 14%
Less: Non-vehicle related depreciation and amortization 180 152
Interest expense related to corporate debt, net:
Interest expense 209 228
Early extinguishment of debt 56 147
Restructuring expense 26 61
Transaction-related costs, net (b) 13 51
Impairment — 33
Income before income taxes $ 392 $ 97
__________
* Not meaningful.
(a) Includes unallocated corporate overhead which is not attributable to a particular segment.
(b) Primarily comprised of acquisition- and integration-related expenses.
North America
2014 2013 % Change
Revenue $ 5,533 $ 5,042 10%
Adjusted EBITDA 607 508 19%
Revenues increased 10% in 2014 compared with 2013, primarily due to 7% growth in rental volumes and a 2%
increase in pricing, and $54 million of incremental revenue from Zipcar.
Adjusted EBITDA increased 19% in 2014 compared with 2013, primarily due to increased rental volumes and
pricing as well as the acquisition of Zipcar, partially offset by 5% higher per-unit fleet costs.
In the year ended December 31, 2014:
• Operating expenses were 48.5% of revenue, a decrease from 49.4% in the prior year, driven by
increased rental volumes and higher pricing.
• Vehicle depreciation and lease charges increased to 25.5% of revenue from 24.9% in 2013, due to higher
per-unit fleet costs and a decrease in fleet utilization as a result of increased manufacturer recalls.