EXHIBIT 12.1
AVIS RENT A CAR INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS)
(PREDECESSOR COMPANIES)
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CONSOLIDATED
YEARS ENDED OCTOBER 17, 1996 YEAR ENDED YEARS ENDED
DECEMBER 31, JANUARY 1,1996 (DATE OF DECEMBER 31, DECEMBER 31,
-------------------- TO ACQUISITION) TO ---------------- --------------------
1994 1995 OCTOBER 16, 1996 DECEMBER 31, 1996 1996 1997 1998
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EARNINGS
INCOME BEFORE PROVISION
FOR INCOME TAXES..... $ 52,316 $ 60,700 $ 69,799 $ 2,261 $ 72,060 $ 50,323 $ 112,228
FIXED CHARGES.......... 184,436 216,030 186,936 50,071 237,007 248,051 260,881
CAPITALIZED INTEREST... (91) (119) (15) 54 39 (144) (122)
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EARNINGS AS DEFINED.... $ 236,661 $ 276,611 $ 256,720 $ 52,386 $ 309,106 $ 298,230 $ 372,987
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FIXED CHARGES
INCLUDABLE PORTION OF
RENT IN FIXED
CHARGES.............. $ 47,837 $ 53,667 $ 48,696 $ 11,920 $ 60,616 $ 63,646 $ 59,033
INTEREST EXPENSE
(INCLUDING
AMORTIZATION OF DEBT
ISSUANCE COSTS)...... 136,508 162,244 138,225 38,205 176,430 184,261 201,726
CAPITALIZED INTEREST... 91 119 15 (54) (39) 144 122
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TOTAL FIXED CHARGES.... $ 184,436 $ 216,030 $ 186,936 $ 50,071 $ 237,007 $ 248,051 $ 260,881
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RATIO OF EARNINGS TO
FIXED CHARGES........ 1.3X 1.3X 1.4X 1.0X 1.3X 1.2X 1.4X
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SIX MONTHS ENDED
JUNE 30,
--------------------
1998 1999
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EARNINGS
INCOME BEFORE PROVISION
FOR INCOME TAXES..... $ 53,139 $ 74,374
FIXED CHARGES.......... 127,092 133,290
CAPITALIZED INTEREST... (22) (25)
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EARNINGS AS DEFINED.... $ 180,209 $ 207,639
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FIXED CHARGES
INCLUDABLE PORTION OF
RENT IN FIXED
CHARGES.............. $ 30,252 $ 28,903
INTEREST EXPENSE
(INCLUDING
AMORTIZATION OF DEBT
ISSUANCE COSTS)...... 96,818 104,362
CAPITALIZED INTEREST... 22 25
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TOTAL FIXED CHARGES.... $ 127,092 $ 133,290
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RATIO OF EARNINGS TO
FIXED CHARGES........ 1.4X 1.6X
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