CAR » Topics » EBITDA excluding unusual items and loss before income taxes excluding unusual items

This excerpt taken from the CAR 8-K filed May 6, 2009.

EBITDA excluding unusual items and loss before income taxes excluding unusual items

The accompanying press release presents EBITDA and loss before income taxes for the three months ended March 31, 2009, excluding unusual items. Table 1 presents loss before income taxes, net loss and earnings per share, excluding unusual items. For the three months ended March 31, 2009, unusual items consisted of (i) $6 million for restructuring-related expenses and (ii) a $1 million impairment charge related to an investment.

We believe that the measures referred to above are useful as supplemental measures in evaluating the aggregate performance of the Company. We exclude restructuring-related expenses and the impairment of an investment as such items are not representative of the results of operations of our business for the three months ended March 31, 2009.

 

Reconciliation of Avis Budget Group, Inc. EBITDA excluding unusual items to net loss:

  
     Three Months Ended
March 31, 2009
 

EBITDA, excluding unusual items

   $ (3 )

Less: Non-vehicle related depreciation and amortization

     22  

Interest expense related to corporate debt, net

     38  
        

Loss before income taxes, excluding unusual items

     (63 )

Less unusual items:

  

Restructuring charges

     6  

Impairment

     1  
        

Loss before income taxes

     (70 )

Benefit from income taxes

     (21 )
        

Net loss

   $ (49 )
        

Reconciliation of net loss, excluding unusual items to net loss:

  

Net loss, excluding unusual items

   $ (45 )

Less unusual items, net of tax:

  

Restructuring charges

     3  

Impairment

     1  
        

Net loss

   $ (49 )
        

Earnings (loss) per share, excluding unusual items (diluted)

   $ (0.44 )
        

Earnings (loss) per share (diluted)

   $ (0.48 )
        

Shares used in non-GAAP per share calculations-diluted (000's)

     101,850  
        
This excerpt taken from the CAR 8-K filed Feb 25, 2009.

EBITDA excluding unusual items and loss before income taxes excluding unusual items

The accompanying press release presents EBITDA and loss before income taxes for the three and twelve months ended December 31, 2008 excluding unusual items. For EBITDA, unusual items consist of separation-related costs, restructuring-related expenses and the settlement of a litigation claim. For loss before income taxes, unusual items include separation-related costs, restructuring-related expenses, the settlement of a litigation claim and the impairment of (i) goodwill, (ii) our tradenames asset and (iii) our investment in Carey Holdings, Inc.

During the three months ended December 31, 2008, we recorded $21 million in unusual items which consisted of (i) $22 million of restructuring costs, primarily related to severance for headcount reductions, the closure of certain facilities and the cancellation of lease contracts, and (ii) $1 million of Separation-related credits. Separation-related costs were expenses incurred in connection with the execution of the plan to separate Cendant Corporation (as we were formerly known) into four independent companies. The credit recorded for the three months ended December 31, 2008 relates to Separation-related tax items.

During the twelve months ended December 31, 2008, we recorded $1,295 million of unusual items which consisted of (i) a charge of $1,262 million for the impairment of goodwill, our tradenames asset and our investment in Carey to reflect a decline in their fair values compared to their carrying values, (ii) $28 million of restructuring costs, primarily related to severance for headcount reductions, the closure of certain facilities and the cancellation of lease contracts and (iii) a $5 million charge for the settlement of a litigation claim. Table 1 presents income (loss) before income taxes, income from continuing operations and EPS from continuing operations (diluted), excluding unusual items.

We believe that EBITDA excluding unusual items and loss before income taxes excluding unusual items are useful as supplemental measures in evaluating the aggregate performance of our operating businesses. We exclude Separation-related costs, restructuring-related expenses, the settlement of the litigation claim, the impairment of goodwill, our tradenames asset and our investment in Carey Holdings, Inc. as such items are not representative of the results generated by our core operations at December 31, 2008.

EXCERPTS ON THIS PAGE:

8-K
May 6, 2009
8-K
Feb 25, 2009

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