UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): April 21, 2014 (April 21, 2014)
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Avis Budget Group, Inc.
(Exact Name of Registrant as Specified in its Charter)
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Delaware | 001-10308 | 06-0918165 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
6 Sylvan Way Parsippany, NJ | 07054 |
(Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code (973) 496-4700
N/A
(Former name or former address if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
In conjunction with a change in the Company's management structure, the financial results of the Company’s Zipcar operations outside of North America will now be reported in the Company’s International segment, rather than in the Company’s North America segment. In addition, the Company has revised its definition of Adjusted EBITDA to exclude restructuring expense, to be consistent with the manner in which management assesses performance and allocates resources. Adjusted EBITDA represents income before non-vehicle related depreciation and amortization, any impairment charge, restructuring expense, early extinguishment of debt costs, transaction-related costs, non-vehicle related interest and income taxes. The Company's consolidated results for the year ended December 31, 2013 are not affected by such changes.
The information in this item, including Exhibit 99.1, is being furnished, not filed. Accordingly, the information in this item will not be incorporated by reference into any registration statement filed by Avis Budget Group, Inc., under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are furnished as part of this report:
Exhibit No. | Description |
99.1 | Revised Segment Results dated April 21, 2014. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
AVIS BUDGET GROUP, INC. | ||
By: | /s/ Izilda P. Martins | |
Izilda P. Martins Senior Vice President and Acting Chief Accounting Officer | ||
Date: April 21, 2014
EXHIBIT INDEX
Exhibit No. | Description |
99.1 | Revised Segment Results dated April 21, 2014. |
In conjunction with a change in the Company's management structure, the financial results of the Company’s Zipcar operations outside of North America will now be reported in the Company’s International segment, rather than in the Company’s North America segment. In addition, the Company has revised its definition of Adjusted EBITDA to exclude restructuring expense, to be consistent with the manner in which management assesses performance and allocates resources. Adjusted EBITDA represents income before non-vehicle related depreciation and amortization, any impairment charge, restructuring expense, early extinguishment of debt costs, transaction-related costs, non-vehicle related interest and income taxes. The Company's consolidated results for the year ended December 31, 2013 are not affected by such changes. The table below illustrates the impact of these changes to Revenue and Adjusted EBITDA for 2013.
Avis Budget Group, Inc. | |||||||||||||||||||||||||||||||||||||||
Segment Results | |||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||||||||||||||
As Previously Reported | |||||||||||||||||||||||||||||||||||||||
Revenue | Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||||||||||||||||||||
North America | $ | 1,100 | $ | 1,292 | $ | 1,513 | $ | 1,178 | $ | 5,083 | $ | 90 | $ | 114 | $ | 223 | $ | 73 | $ | 500 | |||||||||||||||||||
International | 515 | 608 | 773 | 586 | 2,481 | 14 | 53 | 144 | 29 | 240 | |||||||||||||||||||||||||||||
Truck Rental | 76 | 102 | 109 | 85 | 373 | (9 | ) | 8 | 13 | 3 | 15 | ||||||||||||||||||||||||||||
Corporate and Other | — | — | — | — | — | (12 | ) | (11 | ) | (11 | ) | (13 | ) | (47 | ) | ||||||||||||||||||||||||
Total | 1,691 | 2,002 | 2,395 | 1,849 | 7,937 | 83 | 164 | 369 | 92 | 708 | |||||||||||||||||||||||||||||
Adjustments for Segment Reclassification | |||||||||||||||||||||||||||||||||||||||
Revenue | Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||||||||||||||||||||
North America | $ | (2 | ) | $ | (13 | ) | $ | (13 | ) | $ | (13 | ) | $ | (41 | ) | $ | — | $ | 1 | $ | — | $ | — | $ | 1 | ||||||||||||||
International | 2 | 13 | 13 | 13 | 41 | — | (1 | ) | — | — | (1 | ) | |||||||||||||||||||||||||||
Truck Rental | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Corporate and Other | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Adjustments to Exclude Restructuring Expense from Adjusted EBITDA Definition | |||||||||||||||||||||||||||||||||||||||
Revenue | Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||||||||||||||||||||
North America | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3 | $ | — | $ | 3 | $ | 1 | $ | 7 | |||||||||||||||||||
International | — | — | — | — | — | 3 | 6 | 5 | 19 | 33 | |||||||||||||||||||||||||||||
Truck Rental | — | — | — | — | — | 4 | 9 | 6 | 2 | 21 | |||||||||||||||||||||||||||||
Corporate and Other | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total | — | — | — | — | — | 10 | 15 | 14 | 22 | 61 | |||||||||||||||||||||||||||||
As Adjusted | |||||||||||||||||||||||||||||||||||||||
Revenue | Adjusted EBITDA (a) | ||||||||||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||||||||||||||||||||
North America | $ | 1,098 | $ | 1,279 | $ | 1,500 | $ | 1,165 | $ | 5,042 | $ | 93 | $ | 115 | $ | 226 | $ | 74 | $ | 508 | |||||||||||||||||||
International | 517 | 621 | 786 | 599 | 2,522 | 17 | 58 | 149 | 48 | 272 | |||||||||||||||||||||||||||||
Truck Rental | 76 | 102 | 109 | 85 | 373 | (5 | ) | 17 | 19 | 5 | 36 | ||||||||||||||||||||||||||||
Corporate and Other | — | — | — | — | — | (12 | ) | (11 | ) | (11 | ) | (13 | ) | (47 | ) | ||||||||||||||||||||||||
Total | $ | 1,691 | $ | 2,002 | $ | 2,395 | $ | 1,849 | $ | 7,937 | $ | 93 | $ | 179 | $ | 383 | $ | 114 | $ | 769 | |||||||||||||||||||
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The sum of the quarters does not necessarily equal the full year due to rounding.
(a)The following table reconciles Adjusted EBITDA to Income (loss) before taxes.
Reconciliation of Adjusted EBITDA to Income (loss) before Income Taxes | |||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | |||||||||||||||
Adjusted EBITDA | $ | 93 | $ | 179 | $ | 383 | $ | 114 | $ | 769 | |||||||||
Less: Non-vehicle related depreciation and amortization | 34 | 37 | 39 | 42 | 152 | ||||||||||||||
Interest expense related to corporate debt, net | 58 | 55 | 57 | 58 | 228 | ||||||||||||||
Early extinguishment of debt | 40 | 91 | — | 16 | 147 | ||||||||||||||
Transaction-related costs | 8 | 19 | 10 | 14 | 51 | ||||||||||||||
Impairment | — | — | 33 | — | 33 | ||||||||||||||
Restructuring expense | 10 | 15 | 14 | 22 | 61 | ||||||||||||||
Income (loss) before income taxes | $ | (57 | ) | $ | (38 | ) | $ | 230 | $ | (38 | ) | $ | 97 | ||||||
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