GlobeNewswire Inc | Nov 1, 2021 04:05PM EDT

November 01, 2021

PARSIPPANY, N.J., Nov. 01, 2021 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (NASDAQ: CAR) today announced its third quarter 2021 financial results.

We ended the third quarter with revenues almost double the prior year and 9% above the third quarter 2019, at $3.0 billion. Our revenues were driven by increased revenue per day and rental days as demand continued from the second quarter.

Net income was $674 million and our Adjusted EBITDA was $1,057 million, our best quarterly Adjusted EBITDA in our Company's history. Utilization for the quarter was 71.6%, showing sequential quarter improvement and that our fleet was well positioned to meet demand.

Our liquidity position at the end of the quarter was approximately $1.3 billion with an additional $2.7 billion of fleet funding capacity. We have well-laddered corporate debt and no meaningful maturities until 2024.

Our third quarter results are a testament to our teams on-going focus around cost discipline and ability to execute operationally, said Joe Ferraro, Avis Budget Group Chief Executive Officer. We are seeing the benefits of initiatives we began during the early days of the pandemic and look to build on this positive momentum as the travel environment continues to normalize.

Q3 Highlights

-- Total Company revenues increased by 96% and 9% compared to third quarter 2020 and 2019, respectively. -- Adjusted EBITDA in the Americas was $952 million for the third quarter 2021 driven by strong pricing and sustained cost discipline. -- Adjusted EBITDA in International was $128 million for the third quarter 2021 driven by pricing and volume beginning to recover along with strong cost mitigating actions. -- We repurchased approximately 11.6 million shares of common stock in the third quarter at an average cost of $86, bringing our outstanding share count down by 16% from June 30, 2021. -- We redeemed $235 million of our 5.25% Senior Notes due March 2025 with cash on hand.

Investor Conference Call

We will host a conference call to discuss the Company's third quarter results on November 2, 2021, at 8:30 a.m. (ET). Investors may access the call at ir.avisbudgetgroup.com or by dialing (877) 407-2991 and a replay will available on our website and at (877) 660-6853 using conference code 13723926.

About Avis Budget Group

Avis Budget Group, Inc. is a leading global provider of mobility solutions, both through its Avis and Budget brands, which have more than 10,000 rental locations in approximately 180 countries around the world, and through its Zipcar brand, which is the world's leading car sharing network with more than one million members. Avis Budget Group operates most of its car rental offices in North America, Europe and Australasia directly, and operates primarily through licensees in other parts of the world. Avis Budget Group is headquartered in Parsippany, N.J. More information is available at avisbudgetgroup.com.

Forward-Looking Statements

Certain statements in this press release constitute forward-looking statements. Any statements that refer to outlook, expectations or other characterizations of future events, circumstances or results, including all statements related to our future results, impact from the COVID-19 outbreak, cost-saving actions, the global semiconductor shortage and cash flows are forward-looking statements. Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this press release include, but are not limited to, the severity and duration of the COVID-19 outbreak, which is expected to continue to have a significant impact on our operations, and resulting economic conditions and related restrictions, the high level of competition in the mobility industry, changes in our fleet costs, including as a result of a change in the cost of new vehicles, manufacturer recalls and/or the value of used vehicles, disruption in the supply of new vehicles, disposition of vehicles not covered by manufacturer repurchase programs, our ability to realize our estimated cost savings on a timely basis, or at all, the financial condition of the manufacturers that supply our rental vehicles, including as a result of the global semiconductor shortage, which could affect their ability to perform their obligations under our repurchase and/or guaranteed depreciation arrangements, the significant decline in travel demand as a result of COVID-19, including the current and any further disruptions in airline passenger traffic, the absence of an improvement in or any further deterioration in economic conditions generally, particularly during our peak season and/or in key market segments, any occurrence or threat of terrorism, the current and any future pandemic diseases or other natural disasters, any changes to the cost or supply of fuel, risks related to acquisitions or integration of acquired businesses, risks associated with litigation, including class action lawsuits, governmental or regulatory inquiries or investigations, risks related to the security of our information technology systems, disruptions in our communication networks, changes in tax or other regulations, a significant increase in interest rates or borrowing costs, our ability to obtain financing for our global operations, including the funding of our vehicle fleet via asset-backed securities markets, any fluctuations related to the mark-to-market of derivatives which hedge our exposure to exchange rates, interest rates and fuel costs, our ability to meet the covenants contained in the agreements governing our indebtedness, and our ability to accurately estimate our future results and implement our cost savings actions. Other unknown or unpredictable factors could also have material adverse effects on the Companys performance or achievements. Important assumptions and other important factors that could cause actual results to differ materially from those in the forward-looking statements are specified in Avis Budget Groups Annual Report on Form 10-K for the year ended December 31, 2020, Quarterly Report on Form 10-Q for the three and six months ended June 30, 2021 and in other filings and furnishings made by the Company with the Securities and Exchange Commission (the "SEC") from time to time. The Company undertakes no obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.

Non-GAAP Financial Measures and Key Metrics

This release includes financial measures such as Adjusted EBITDA, Adjusted net income and Adjusted free cash flow, as well as other financial measures that are not considered generally accepted accounting principles (GAAP) measures as defined under SEC rules. Important information regarding such measures is contained in the financial tables to this release and in Appendix I, including the definitions of these measures and reconciliations to the closest comparable GAAP measures. The Company and its management believe that these non-GAAP measures are useful to investors in measuring the comparable results of the Company period-over-period. The GAAP measures most directly comparable to Adjusted EBITDA, Adjusted free cash flow, Adjusted pretax income (loss), Adjusted net income (loss) and Adjusted diluted earnings (loss) per share are net income (loss), net cash provided by operating activities, income (loss) before income taxes, net income (loss) attributable to Avis Budget Group, Inc. and diluted earnings (loss) per share, respectively. Foreign currency translation effects on the Companys results are quantified by translating the current periods non-U.S. dollar-denominated results using the currency exchange rates of the prior period of comparison including any related gains and losses on currency hedges. Per-unit fleet costs, which represent vehicle depreciation, lease charges and gain or loss on vehicle sales, divided by average rental fleet, are calculated on a per-month basis.

Contact David Calabria IR@avisbudget.com PR@avisbudget.com

Table 1

Avis Budget Group, Inc.SUMMARY DATA SHEET(In millions, except per share data)

Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 % 2021 2020 % Change ChangeIncome Statement and Other Items Revenues $ 3,001 $ 1,534 96 % $ 6,744 $ 4,047 67 % Income (loss) before income 929 53 n/m 1,165 (821 ) 242 % taxes Net income 674 45 n/m 902 (594 ) 252 % (loss) Earnings (loss) per 10.45 0.63 n/m 13.16 (8.40 ) 257 % share - diluted Adjusted Earnings Measures (non-GAAP)^ (A) Adjusted 1,057 220 380 % 1,728 (249 ) 794 % EBITDA Adjusted pretax income 954 99 864 % 1,402 (580 ) 342 % (loss) Adjusted net 693 79 777 % 1,078 (412 ) 362 % income (loss) Adjusted earnings (loss) per 10.74 1.13 850 % 15.72 (5.83 ) 370 % share - diluted As of September December 30, 2021 31, 2020Balance Sheet Items Cash and Cash $ 886 $ 692 Equivalents Vehicles, net 11,925 8,153 Debt under vehicle 10,749 6,857 programs Corporate 4,027 4,210 debt Stockholders' (198 ) (155 ) equity

Segment Results Three Months Ended September Nine Months Ended September 30, 30, 2021 2020 % 2021 2020 % Change ChangeRevenues Americas $ 2,403 $ 1,114 116 % $ 5,457 $ 2,936 86 %International 598 420 42 % 1,287 1,111 16 %Corporate and ? ? n/m ? ? n/mOtherTotal Company $ 3,001 $ 1,534 96 % $ 6,744 $ 4,047 67 % Adjusted EBITDAAmericas $ 952 $ 222 329 % $ 1,694 $ (41 ) n/mInternational 128 6 n/m 86 (174 ) 149 %Corporate and (23 ) (8 ) n/m (52 ) (34 ) n/mOtherTotal Company $ 1,057 $ 220 380 % $ 1,728 $ (249 ) 794 %

_______n/m Not meaningful.(A) See Table 5 for reconciliations of non-GAAP measures and Appendix I for definitions.

Table 2

Avis Budget Group, Inc.CONSOLIDATED STATEMENTS OF OPERATIONS(In millions, except per share data)

Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Revenues $ 3,001 $ 1,534 $ 6,744 $ 4,047 Expenses Operating 1,225 825 3,089 2,505 Vehicle depreciation and lease 277 256 869 1,089 charges, net Selling, general and 361 166 837 549 administrative Vehicle interest, net 80 77 232 247 Non-vehicle related depreciation 69 74 199 214 and amortization Interest expense related to corporate debt, net: Interest expense 47 64 167 163 Early extinguishment of debt 7 2 136 9 Restructuring and other related 5 17 47 89 charges Transaction-related costs, net 1 ? 3 3 Total expenses 2,072 1,481 5,579 4,868 Income (loss) before income taxes 929 53 1,165 (821 ) Provision for (benefit from) 255 8 263 (227 ) income taxesNet income (loss) 674 45 902 (594 )Less: net loss attributable to (1 ) ? (1 ) ? non-controlling interestsNet income (loss) attributable to $ 675 $ 45 $ 903 $ (594 )Avis Budget Group, Inc. Earnings (loss) per share Basic $ 10.58 $ 0.64 $ 13.31 $ (8.40 ) Diluted $ 10.45 $ 0.63 $ 13.16 $ (8.40 ) Weighted average shares outstanding Basic 63.7 69.7 67.8 70.8 Diluted 64.6 70.2 68.6 70.8

Table 3

Avis Budget Group, Inc.KEY METRICS SUMMARY

Three Months Ended September Nine Months Ended September 30, 30, 2021 2020 % 2021 2020 % Change Change Americas Rental Days 28,836 19,289 49 % 71,768 54,715 31 % (000?s) Revenue per Day, excluding exchange $ 83.15 $ 57.79 44 % $ 75.88 $ 53.67 41 % rate effects ^ (A) Average Rental 434,416 362,192 20 % 369,012 392,737 (6 ) % Fleet Vehicle 72.2 % 57.9 % 14.3 71.2 % 50.8 % 20.4 Utilization pps pps Per-Unit Fleet Costs per Month, excluding $ 143 $ 152 (6 ) % $ 189 $ 217 (13 ) % exchange rate effects ^ (A) International Rental Days 10,720 9,542 12 % 25,679 26,633 (4 ) % (000?s) Revenue per Day, excluding exchange $ 54.91 $ 43.98 25 % $ 47.06 $ 41.70 13 % rate effects ^ (A) Average Rental 166,431 154,781 8 % 138,439 170,632 (19 ) % Fleet Vehicle 70.0 % 67.0 % 3 pps 67.9 % 57.0 % 10.9 Utilization pps Per-Unit Fleet Costs per Month, excluding $ 179 $ 195 (8 ) % $ 181 $ 210 (14 ) % exchange rate effects ^ (A) Total Rental Days 39,556 28,831 37 % 97,447 81,348 20 % (000?s) Revenue per Day, excluding exchange $ 75.50 $ 53.22 42 % $ 68.28 $ 49.75 37 % rate effects ^ (A) Average Rental 600,847 516,973 16 % 507,451 563,369 (10 ) % Fleet Vehicle 71.6 % 60.6 % 11 pps 70.3 % 52.7 % 17.6 Utilization pps Per-Unit Fleet Costs per Month, excluding $ 153 $ 165 (7 ) % $ 187 $ 215 (13 ) % exchange rate effects ^ (A)_______ Refer to Table 6 for key metrics calculations and Appendix I for key metrics definitions.(A) The following metrics include changes in currency exchange rates: Three Months Ended September Nine Months Ended September 30, 30, 2021 2020 % 2021 2020 % Change Change Americas Revenue per $ 83.33 $ 57.79 44 % $ 76.04 $ 53.67 42 % Day Per-Unit Fleet Costs $ 143 $ 152 (6 ) % $ 190 $ 217 (12 ) % per Month International Revenue per $ 55.79 $ 43.98 27 % $ 50.12 $ 41.70 20 % Day Per-Unit Fleet Costs $ 181 $ 195 (7 ) % $ 192 $ 210 (9 ) % per Month Total Revenue per $ 75.86 $ 53.22 43 % $ 69.21 $ 49.75 39 % Day Per-Unit Fleet Costs $ 154 $ 165 (7 ) % $ 190 $ 215 (12 ) % per Month

Table 4 (page 1 of 2)

Avis Budget Group, Inc.CONSOLIDATED CONDENSED SCHEDULES OF CASH FLOWS AND ADJUSTED FREE CASH FLOWS(In millions)

CONSOLIDATED CONDENSED SCHEDULE OF CASH FLOWS

Nine Months Ended September 30, 2021Operating Activities Net cash provided by operating activities $ 2,548 Investing Activities Net cash used in investing activities exclusive of $ (74 )vehicle programsNet cash used in investing activities of vehicle (4,857 )programsNet cash used in investing activities $ (4,931 ) Financing Activities Net cash used in financing activities exclusive of $ (1,230 )vehicle programsNet cash provided by financing activities of vehicle 3,808 programsNet cash provided by financing activities $ 2,578 Effect of changes in exchange rates on cash and cash $ (15 )equivalents, program and restricted cashNet change in cash and cash equivalents, program and 180 restricted cashCash and cash equivalents, program and restricted cash, 765 beginning of period ^(A)Cash and cash equivalents, program and restricted cash, $ 945 end of period^ (B)

CONSOLIDATED SCHEDULE OF ADJUSTED FREE CASH FLOWS (C)

Nine Months Ended September 30, 2021Income before income taxes $ 1,165 Add-back of non-vehicle related depreciation and 204 amortization ^(D)Add-back of debt extinguishment costs 136 Add-back of restructuring and other related costs 47 Add-back of transaction-related costs, net 3 Add-back of COVID-19 charges 12 Add-back of unprecedented personal-injury and other (6 )legal matters, netWorking capital and other 384 Capital expenditures ^(E) (93 )Tax payments, net of refunds (63 )Vehicle programs and related^ (F) (206 )Adjusted free cash flow $ 1,583 Acquisition and related payments, net of acquired cash $ (14 )Borrowings, net of debt repayments (250 )Restructuring and other related payments (28 )Transaction-related payments (4 )COVID-19 payments, net (52 )Unprecedented personal-injury and other legal matter (8 )payments, netRepurchases of common stock (997 )Change in program cash (13 )Change in restricted cash 2 Foreign exchange effects, financing costs and other (39 )Net change in cash and cash equivalents, program and $ 180 restricted cash (per above)

Table 4 (page 2 of 2)

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW

Nine Months Ended September 30, 2021Net cash provided by operating activities (per above) $ 2,548 Investing activities of vehicle programs (4,857 )Financing activities of vehicle programs 3,808 Capital expenditures (57 )Proceeds received on sale of assets and nonmarketable 3 equity securitiesChange in program cash 13 Change in restricted cash (2 )Acquisition and disposition-related payments (3 )Non-controlling interest (distributions) 38 contributions, netCOVID-19 payments, net 52 Restructuring and other related payments 28 Unprecedented personal-injury and other legal matter 8 payments, netTransaction-related payments 4 Adjusted free cash flow (per above) $ 1,583

_______(A) Consists of cash and cash equivalents of $692 million, program cash of $72 million and restricted cash of $1 million.(B) Consists of cash and cash equivalents of $886 million, program cash of $55 million and restricted cash of $4 million.(C) See Appendix I for the definition of Adjusted free cash flow.(D) Includes $5 million of cloud computing costs.(E) Includes $36 million of cloud computing implementation costs. Includes vehicle-backed borrowings (repayments) that are incremental to(F) amounts required to fund incremental (reduced) vehicle and vehicle-related assets.

Table 5

Avis Budget Group, Inc.DEFINITIONS AND RECONCILIATIONS OF NON-GAAP MEASURES(In millions, except per share data)

The accompanying press release includes certain non-GAAP (generally accepted accounting principles) financial measures as defined under SEC rules. To the extent not provided in the press release or accompanying tables, we have provided the reasons we present these non-GAAP financial measures and a description of what they represent in Appendix I. For each non-GAAP financial measure a reconciliation to the most comparable GAAP financial measure is calculated and presented below with reconciliations of net income (loss), income (loss) before income taxes and diluted earnings (loss) per share to Adjusted EBITDA and our Adjusted earnings measures.

Three Months Ended Nine Months Ended September 30, September 30,Reconciliation of net income to 2021 2020 2021 2020Adjusted EBITDA: Net income (loss) $ 674 $ 45 $ 902 $ (594 ) Add: Provision for (benefit 255 8 263 (227 ) from) income taxes Income (loss) before income 929 53 1,165 (821 ) taxes Add certain items: Early extinguishment of debt 7 2 136 9 Restructuring and other related 5 17 47 89 charges Acquisition-related amortization 13 17 45 46 expense COVID-19 charges ^(A) (6 ) 10 12 90 Transaction-related costs, net 1 ? 3 3 Non-operational charges related to shareholder activist activity ? ? ? 4 ^(B) Unprecedented personal-injury and other legal matters, net ^ 5 ? (6 ) ? (C) Adjusted pretax income (loss) 954 99 1,402 (580 ) Non-vehicle related depreciation and Add: amortization (excluding 56 57 159 168 acquisition-related amortization expense) ^(D) Interest expense related to corporate debt, net 47 64 167 163 (excluding early extinguishment of debt) Adjusted EBITDA $ 1,057 $ 220 $ 1,728 $ (249 ) Reconciliation of net incomeattributable to Avis Budget Group, Inc. to adjusted net income: Net income (loss) attributable $ 675 $ 45 $ 903 $ (594 ) to Avis Budget Group, Inc. Add certain items, net of tax: Early extinguishment of 5 1 101 7 debt Restructuring and other 4 14 35 69 related charges Acquisition-related 9 12 33 34 amortization expense COVID-19 charges (5 ) 7 8 67 Transaction-related costs, 1 ? 2 2 net Non-operational charges related to shareholder ? ? ? 3 activist activity Unprecedented personal-injury and other 4 ? (4 ) ? legal matters, net Adjusted net income (loss) $ 693 $ 79 $ 1,078 $ (412 ) Earnings (loss) per share - $ 10.45 $ 0.63 $ 13.16 $ (8.40 ) Diluted Adjusted diluted earnings (loss) $ 10.74 $ 1.13 $ 15.72 $ (5.83 ) per share Shares used to calculate Adjusted diluted earnings (loss) 64.6 70.2 68.6 70.8 per share

_______ (A) The following table presents the unusual, direct and incremental costs due to the COVID-19 pandemic. Three Months Nine Months Ended September Ended September 30, 30, 2021 2020 2021 2020 Minimum annual guaranteed rent in excess of $ (4 ) $ 11 $ 12 $ 41 concession fees, net Vehicles damaged in overflow parking lots, (3 ) (19 ) (7 ) 14 net of insurance proceeds Incremental cleaning supplies to sanitize vehicles and facilities, and over flow ? 18 ? 35 parking for idle vehicles Other charges 1 ? 7 ? Operating expenses $ (6 ) $ 8 $ 11 $ 87 Vehicle depreciation and lease charges $ ? $ 1 $ ? $ 1 Selling, general and administrative expenses $ ? $ 1 $ 1 $ 2 (B) Reported within selling, general and administrative expenses in our Consolidated Statements of Operations.(C) Reported within operating expenses in our Consolidated Statements of Operations. For the nine months ended September 30, 2021 consists of $5 million within(D) operating expenses in our Consolidated Statements of Operations related to cloud computing costs.

Table 6

Avis Budget Group, Inc.KEY METRICS CALCULATIONS($ in millions, except as noted)

Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Americas International Total Americas International TotalRevenue per Day (RPD) Revenue $ 2,403 $ 598 $ 3,001 $ 1,114 $ 420 $ 1,534 Currency exchange rate (5 ) (10 ) (15 ) ? ? ? effects Revenue excluding $ 2,398 $ 588 $ 2,986 $ 1,114 $ 420 $ 1,534 exchange rate effects Rental days 28,836 10,720 39,556 19,289 9,542 28,831 (000's) RPD excluding exchange rate $ 83.15 $ 54.91 $ 75.50 $ 57.79 $ 43.98 $ 53.22 effects (in $'s) Vehicle Utilization Rental days 28,836 10,720 39,556 19,289 9,542 28,831 (000's) Average 434,416 166,431 600,847 362,192 154,781 516,973 rental fleet Number of days in 92 92 92 92 92 92 period Available rental days 39,966 15,312 55,278 33,322 14,240 47,562 (000's) Vehicle 72.2 % 70.0 % 71.6 % 57.9 % 67.0 % 60.6 % utilization Per-Unit Fleet Costs Vehicle depreciation $ 187 $ 90 $ 277 $ 166 $ 90 $ 256 and lease charges, net Currency exchange rate (1 ) (1 ) (2 ) ? ? ? effects $ 186 $ 89 $ 275 $ 166 $ 90 $ 256 Average 434,416 166,431 600,847 362,192 154,781 516,973 rental fleet Per-unit fleet costs $ 428 $ 536 $ 458 $ 456 $ 584 $ 494 (in $'s) Number of months in 3 3 3 3 3 3 period Per-unit fleet costs per month excluding $ 143 $ 179 $ 153 $ 152 $ 195 $ 165 exchange rate effects (in $'s)

Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Americas International Total Americas International TotalRevenue per Day (RPD) Revenue $ 5,457 $ 1,287 $ 6,744 $ 2,936 $ 1,111 $ 4,047 Currency exchange rate (11 ) (79 ) (90 ) ? ? ? effects Revenue excluding $ 5,446 $ 1,208 $ 6,654 $ 2,936 $ 1,111 $ 4,047 exchange rate effects Rental days 71,768 25,679 97,447 54,715 26,633 81,348 (000's) RPD excluding exchange rate $ 75.88 $ 47.06 $ 68.28 $ 53.67 $ 41.70 $ 49.75 effects (in $'s) Vehicle Utilization Rental days 71,768 25,679 97,447 54,715 26,633 81,348 (000's) Average 369,012 138,439 507,451 392,737 170,632 563,369 rental fleet Number of days in 273 273 273 274 274 274 period Available rental days 100,740 37,794 138,534 107,610 46,753 154,363 (000's) Vehicle 71.2 % 67.9 % 70.3 % 50.8 % 57.0 % 52.7 % utilization Per-Unit Fleet Costs Vehicle depreciation $ 630 $ 239 $ 869 $ 767 $ 322 $ 1,089 and lease charges, net Currency exchange rate (3 ) (14 ) (17 ) ? ? ? effects $ 627 $ 225 $ 852 $ 767 $ 322 $ 1,089 Average 369,012 138,439 507,451 392,737 170,632 563,369 rental fleet Per-unit fleet costs $ 1,700 $ 1,625 $ 1,679 $ 1,951 $ 1,887 $ 1,932 (in $'s) Number of months in 9 9 9 9 9 9 period Per-unit fleet costs per month excluding $ 189 $ 181 $ 187 $ 217 $ 210 $ 215 exchange rate effects (in $'s)

_______ Our calculation of rental days and revenue per day may not be comparable to thecalculation of similarly-titled metrics by other companies. Currency exchangerate effects are calculated by translating the current-year results at theprior-period average exchange rates plus any related gains and losses oncurrency hedges.

Appendix I

Avis Budget Group, Inc.DEFINITIONS OF NON-GAAP MEASURES AND KEY METRICS

Adjusted EBITDAThe accompanying press release presents Adjusted EBITDA, which represents income (loss) from continuing operations before non-vehicle related depreciation and amortization, any impairment charges, restructuring and other related charges, early extinguishment of debt costs, non-vehicle related interest, transaction-related costs, net, charges for unprecedented personal-injury and other legal matters, net, which includes amounts recorded in excess of $5 million related to class action lawsuits, non-operational charges related to shareholder activist activity, which include third party advisory, legal and other professional service fees, gain on sale of equity method investment in China, COVID-19 charges and income taxes. COVID-19 charges include unusual, direct and incremental costs due to the COVID-19 pandemic such as minimum annual guaranteed rent in excess of concession fees for the period, overflow parking for idle vehicles and related shuttling costs, incremental cleaning supplies to sanitize vehicles and facilities, and losses associated with vehicles damaged in overflow parking lots, net of insurance proceeds. We have revised our definition of Adjusted EBITDA to exclude amounts recorded in excess of $5 million related to class action lawsuits. We did not revised prior years Adjusted EBITDA because there were no costs similar in nature to these costs. Adjusted EBITDA includes stock-based compensation expense and deferred financing fee amortization totaling $16 million and $9 million in third quarter 2021 and 2020, respectively, and totaling $41 million and $22 million in the nine months ended September 30, 2021 and 2020, respectively.

We believe that Adjusted EBITDA is useful to investors as a supplemental measure in evaluating the aggregate performance of our operating businesses and in comparing our results from period to period. Adjusted EBITDA is the measure that is used by our management, including our chief operating decision maker, to perform such evaluation. Adjusted EBITDA is also a component in the determination of management's compensation. Adjusted EBITDA should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with GAAP and our presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies. A reconciliation of Adjusted EBITDA from net income (loss) recognized under GAAP is provided on Table 5.

Adjusted Earnings Non-GAAP MeasuresThe accompanying press release and tables present Adjusted pretax income (loss), Adjusted net income (loss) and Adjusted diluted earnings (loss) per share, which exclude certain items. We believe that these measures referred to above are useful to investors as supplemental measures in evaluating the aggregate performance of the Company. We exclude restructuring and other related charges, transaction-related costs, costs related to early extinguishment of debt and certain other items as such items are not representative of the results of operations of our business less a provision for income taxes derived utilizing applicable statutory tax rates for each item. A reconciliation of our Adjusted earnings Non-GAAP measures from the appropriate measures recognized under GAAP is provided on Table 5.

Adjusted Free Cash FlowRepresents Net Cash Provided by Operating Activities adjusted to reflect the cash inflows and outflows relating to capital expenditures, the investing and financing activities of our vehicle programs, asset sales, if any, and to exclude debt extinguishment costs, transaction-related costs, restructuring and other related charges, COVID-19 charges and non-operational charges related to shareholder activist activity. We have revised our definition of Adjusted Free Cash Flow to exclude COVID-19 charges and have not revised prior years' Adjusted Free Cash Flow amounts as there were no other charges similar in nature to these. We believe this change is meaningful to investors as it brings the measurement in line with our other non-GAAP measures. We believe that Adjusted Free Cash Flow is useful to management and investors in measuring the cash generated that is available to be used to repay debt obligations, repurchase stock, pay dividends and invest in future growth through new business development activities or acquisitions. Adjusted Free Cash Flow should not be construed as a substitute in measuring operating results or liquidity, and our presentation of Adjusted Free Cash Flow may not be comparable to similarly-titled measures used by other companies. A reconciliation of Adjusted Free Cash Flow to the appropriate measure recognized under GAAP is provided on Table 4.

Adjusted EBITDA MarginRepresents Adjusted EBITDA as a percentage of revenues.

Available Rental DaysDefined as Average Rental Fleet times the numbers of days in a given period.

Average Rental FleetRepresents the average number of vehicles in our fleet during a given period of time.

Currency Exchange Rate EffectsRepresents the difference between current-period results as reported and current-period results translated at the prior-period average exchange rates plus any related currency hedges.

Net Corporate DebtRepresents corporate debt minus cash and cash equivalents.

Net Corporate LeverageRepresents Net Corporate Debt divided by Adjusted EBITDA for the twelve months prior to the date of calculation.

Per-Unit Fleet CostsRepresents vehicle depreciation, lease charges and gain or loss on vehicles sales, divided by Average Rental Fleet.

Rental DaysRepresents the total number of days (or portion thereof) a vehicle was rented during a 24-hour period.

Revenue per DayRepresents revenues divided by Rental Days.

Vehicle UtilizationRepresents Rental Days divided by Available Rental Days.