Avis Budget Group Reports Reclassification of Previously Announced Cash Flows for First Quarter 2007
PARSIPPANY, N.J., May 10, 2007 -- Avis Budget Group, Inc. today reported a modification to the presentation of its cash flows contained on the tables that accompanied the Company's May 2 announcement of its results for its first quarter, which ended March 31, 2007. Such modification results from a reclassification of $45 million from cash provided by operations to cash provided by (used in) investing activities. The reclassified amount represents cash payments received from Realogy and Wyndham for the settlement of reimbursable transactions in connection with the separation of Cendant Corporation in 2006. The Company has included in this release a revised table to its first quarter earnings announcement reflecting this reclassification. The Company's aggregate cash flows, income statement and balance sheet for first quarter 2007 are not impacted by this reclassification. Furthermore, the Company reiterated that, over time, its Free Cash Flow is expected to approximate pretax income and noted that this estimate is unaffected by this reclassification.
About Avis Budget Group, Inc. Avis Budget Group is a leading provider of vehicle rental services, with operations in more than 70 countries. Through its Avis and Budget brands, the Company is the largest general-use vehicle rental company in each of North America, Australia, New Zealand and certain other regions. Avis Budget Group is headquartered in Parsippany, N.J. and has more than 30,000 employees. For more information about Avis Budget Group, visit www.avisbudgetgroup.com.
Table 5
Avis Budget Group, Inc.
CONSOLIDATED SCHEDULES OF CASH FLOWS AND FREE CASH FLOWS
(In millions)
CONSOLIDATED SCHEDULE OF CASH FLOWS
First Quarter
2007 2006
Operating Activities
Net cash provided by (used in) operating
activities exclusive of vehicle programs $3 $(193)
Net cash provided by operating activities
of vehicle programs 352 317
Net cash provided by operating activities 355 124
Investing Activities
Net cash used in investing activities
exclusive of vehicle programs $23 $(44)
Net cash used in investing activities
of vehicle programs (1,414) (863)
Net cash used in investing activities (1,391) (907)
Financing Activities
Net cash used in financing activities
exclusive of vehicle programs $(7) $(110)
Net cash provided by financing activities
of vehicle programs 1,125 574
Net cash provided by financing activities 1,118 464
Effect of changes in exchange rates on cash
and cash equivalents - (1)
Cash used in discontinued operations - (180)
Net increase (decrease) in cash and cash
equivalents 82 (500)
Cash and cash equivalents, beginning
of period 172 546
Cash and cash equivalents, end of period $254 $46
CONSOLIDATED SCHEDULE OF FREE CASH FLOWS (*)
First Quarter
2007 2006
Pretax income (loss) $11 $(98)
Addback of non-cash, non-vehicle related
depreciation and amortization 24 27
Working capital and other (23) -
Capital expenditures (20) (17)
Free Cash Flow before taxes, vehicle
programs and stockholder litigation payments (8) (88)
Tax payments, net of refunds (3) (85)
Vehicle programs (A) 64 28
Stockholder litigation payments - (32)
Free Cash Flow 53 (177)
Payments for acquisitions, net of cash acquired - (15)
Proceeds from disposition of businesses,
net of transaction-related payments - (19)
Net issuance (repurchase) of common stock 13 (221)
Payment of dividends - (113)
Net borrowings (repayments) (19) 225
Investments and other 35 -
Discontinued operations - (180)
Net increase (decrease) in cash and
cash equivalents (per above) $82 $(500)
(*) See Table 6 for a description of Free Cash Flow.
(A) Cash flows related to vehicle programs may fluctuate significantly
from period to period due to the timing of the underlying
transactions.
RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED BY
OPERATING ACTIVITIES
First Quarter
2007 2006
Free Cash Flow (per above) $53 $(177)
Cash (inflows) outflows included
in Free Cash Flow but not reflected in
Net Cash Provided by Operating Activities
(per above)
Investing activities of vehicle programs 1,414 863
Financing activities of vehicle programs (1,125) (574)
Capital expenditures 20 17
Proceeds received on asset sales (4) (4)
Change in restricted cash (3) (1)
Net Cash Provided by Operating Activities
(per above) $355 $124