Why does Budget believe Adjusted EBITDA is useful?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
We believe Adjusted EBITDA is useful as a supplemental measure in evaluating the performance of our operating businesses and in comparing our results from period to period. We also believe that Adjusted EBITDA is useful to investors because it allows them to assess our results of operations and financial condition on the same basis that management uses internally. Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with LIS CAAP. accordance with U.S. GAAP.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Adjusted EBITDA is considered a useful supplemental measure for evaluating the performance of Budget's operating businesses and comparing results from period to period.
Budget believes that Adjusted EBITDA is also useful to investors. It allows them to assess Budget's results of operations and financial condition on the same basis that management uses internally. This alignment provides transparency and consistency in how the company's financial health is evaluated by both internal stakeholders and external investors.
It is important to note that Adjusted EBITDA is a non-GAAP measure. As such, Budget states that it should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with U.S. GAAP. This means that while Adjusted EBITDA can provide valuable insights, it should be used in conjunction with other standard financial metrics for a comprehensive understanding of Budget's financial performance.