Avis 2015 Annual Report Download - page 55

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47
International
2014 2013 % Change
Revenue $ 2,524 $ 2,457 3%
Adjusted EBITDA 280 256 9%
Revenues increased 3% during 2014 compared with 2013, primarily due to an 8% increase in ancillary revenues.
Adjusted EBITDA increased 9% in 2014 compared with 2013, driven by increased revenue, partially offset by a
$12 million negative impact from currency exchange rate changes.
In the year ended December 31, 2014:
• Operating expenses were 52.0% of revenue, a decrease from 53.1% in the prior year, primarily due to
increased revenues.
• Vehicle depreciation and lease charges decreased to 20.0% of revenue from 20.2% compared to the prior
year.
• Selling, general and administrative costs increased to 15.0% of revenue from 14.4% in the prior year,
primarily due to our planned increase in advertising and brand investment.
• Vehicle interest costs, at 1.9% of revenue, remained level compared to the prior year.
Corporate and Other
2014 2013 % Change
Revenue $ — $ — *
Adjusted EBITDA (60) (47) *
__________
* Not meaningful
Adjusted EBITDA decreased $13 million in 2014 compared with 2013, primarily due to greater selling, general and
administrative expenses which are not attributable to a particular segment.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
We present separately the financial data of our vehicle programs. These programs are distinct from our other
activities as the assets under vehicle programs are generally funded through the issuance of debt that is
collateralized by such assets. The income generated by these assets is used, in part, to repay the principal and
interest associated with the debt. Cash inflows and outflows relating to the generation or acquisition of such
assets and the principal debt repayment or financing of such assets are classified as activities of our vehicle
programs. We believe it is appropriate to segregate the financial data of our vehicle programs because, ultimately,
the source of repayment of such debt is the realization of such assets.
FINANCIAL CONDITION
As of December 31,
2015 2014 Change
Total assets exclusive of assets under vehicle programs $ 5,918 $ 5,784 $ 134
Total liabilities exclusive of liabilities under vehicle programs 5,680 5,610 70
Assets under vehicle programs 11,716 11,058 658
Liabilities under vehicle programs 11,515 10,567 948
Stockholders’ equity 439 665 (226)