Dollar Thrifty Automotive Group Reports Second Quarter
Results
TULSA, Okla., July 19 Dollar Thrifty Automotive Group,
Inc. , today reported results for the second quarter ended
June 30, 2001. Total revenue for the 2001 second quarter was $281.0 million,
a 2.0 percent decrease from the 2000 second quarter. Net income for the
quarter was $12.4 million, or $.50 per diluted share, based on
24,830,012 weighted average outstanding shares. For the comparable 2000
quarter, net income was $24.8 million, or $1.01 per diluted share based on
24,570,623 weighted average outstanding shares. Earnings for the second
quarter were below guidance due to weaker than anticipated industry conditions
leading to lower than expected pricing, rental volumes, and vehicle
utilization and increased loss reserves for franchisee receivables. Dollar
Thrifty Automotive Group, Inc. owns Dollar Rent A Car Systems, Inc. and
Thrifty, Inc.
For the first six months of 2001, total revenue was $524.8 million, a
0.7 percent increase over the $521.1 million reported for the first half of
2000. Net income for the six-month period was $21.6 million, or $.88 per
diluted share, compared to $36.1 million, or $1.47 per diluted share, for the
first six months of 2000. Results for the first six months of 2001 and 2000
are based on 24,681,399 and 24,561,544 weighted average outstanding shares,
respectively.
"We are pleased that both Dollar and Thrifty operated profitably during
this economic and travel industry slow-down," Joseph E. Cappy, Chairman, CEO
and President, said. "Our strategy of being the industry's low-cost provider,
along with our ability to quickly adjust fleet size to demand, enables us to
produce a solid performance through challenging economic and industry
conditions."
Dollar Rent A Car Systems, Inc.
For the 2001 second quarter, Dollar Rent A Car Systems, Inc. achieved
revenue of $212.9 million, a 2.4 percent decrease from the second quarter of
2000. Impacted by a very competitive pricing environment, Dollar's vehicle
rental revenue was down 1.3 percent from last year's second quarter. Dollar's
rental days increased 3.7 percent during the second quarter, offset by a
4.8 percent decrease in revenue per day. During the quarter Dollar expanded
its partner relationship with Southwest Airlines by enabling Southwest
Airlines customers the ability to book Dollar cars on southwest.com . Dollar
also introduced the DOLLAR TRAVEL CENTER, an interactive kiosk providing
helpful travel information for its customers at key airport locations.
Thrifty, Inc.
For the second quarter of 2001, Thrifty, Inc. reported revenue of
$67.7 million, a 0.7 percent decrease from the 2000 second quarter. Corporate
vehicle rental revenue increased 79.9 percent over the comparable 2000 quarter
driven by growth in Thrifty's Canadian business and the corporate operation of
U.S. markets that were previously franchised. Vehicle leasing revenue
declined 16.6 percent as a result of the shift of locations from franchised to
corporate, and as franchisees made fleet adjustments to operate more
efficiently. Thrifty expanded its marketing partnerships during the second
quarter by being named the exclusive car rental company in Radisson's Look to
Book customer loyalty program. As part of its continuing efforts to increase
Internet bookings, Thrifty became an Expedia Platinum Preferred Partner.
Thrifty Car Sales continues to grow and now has 40 stores in operation.
Regarding the outlook for the rest of the year, Cappy said, "With economic
and industry conditions uncertain, we will remain focused on managing our
fleet size and expenses to ensure we remain our industry's lowest cost
provider. Depending on the state of the economy, the industry pricing and
demand environment and used car market levels, our guidance for the third
quarter is in the range of $.55 to $.70 per share. We currently anticipate
third quarter revenue per day to be down 3 to 4 percent and Dollar's rental
days to be flat with last year, including the impact of franchise
acquisitions. For the full-year, we expect earnings to be in the range of
$1.40 to $1.70 per share."
The Dollar and Thrifty systems have worldwide locations in approximately
70 countries including over 900 corporate and franchised locations in the
United States and Canada. The companies provide car rental services primarily
to value-conscious discretionary and leisure travelers. Dollar has on-airport
locations at major airports throughout the United States with a focus on
serving the leisure and international tour business. Thrifty serves both the
airport and local car rental markets, is a leading lessor of rental vehicles
to car rental franchisees and operates a franchised retail used car sales
network.
The Dollar Thrifty Automotive Group, Inc. second quarter 2001 earnings
conference call will be held on Thursday, July 19, 2001, at 10:00 a.m.
(central time). Those interested in listening to the conference call live may
access the call via Webcast at the corporate Web site, dtag.com , or by
dialing 800-683-1535 (domestic) or 973-633-1010 (international). An audio
replay of the conference call will be available through August 2, 2001, by
calling 888-306-8691 (domestic) or 402-220-2854 (international). The replay
will also be available via the corporate Web site through August 2, 2001.
Some of the statements contained in this press release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Although Dollar Thrifty Automotive Group, Inc.
believes such forward-looking statements are based upon reasonable
assumptions, such statements are not guarantees of future performance and
certain factors could cause results to differ materially from current
expectations. These factors include: price and product competition; economic
and competitive conditions in markets and countries where the companies'
customers reside and where the companies and their franchisees operate;
changes in capital availability or cost; costs and other terms related to the
acquisition and disposition of automobiles and conducting business; and
certain regulatory and environmental matters. Should one or more of these
risks or uncertainties, among others, materialize, actual results could vary
from those estimated, anticipated or projected. Dollar Thrifty Automotive
Group, Inc. undertakes no obligation to update or revise forward-looking
statements to reflect changed assumptions, the occurrence of unanticipated
events or changes to future operating results over time.
Dollar Thrifty Automotive Group, Inc.
Consolidated Statement of Income
(In thousands, except share and per share data)
Unaudited
Three months ended As % of
June 30, Total revenues
2001 2000 2001 2000
Revenues:
Vehicle rentals $ 217,423 $ 213,146 77.4% 74.3%
Vehicle leasing 44,855 54,746 16.0% 19.1%
Fees and services 15,094 15,891 5.4% 5.5%
Other 3,603 2,940 1.2% 1.1%
Total revenues 280,975 286,723 100.0% 100.0%
Costs and Expenses:
Direct vehicle and
operating 94,332 82,357 33.6% 28.7%
Vehicle depreciation and
lease charges, net 96,166 83,943 34.2% 29.3%
Selling, general and
administrative 43,541 50,494 15.5% 17.6%
Interest expense, net 23,544 24,682 8.4% 8.6%
Amortization of cost in
excess of net assets
acquired 1,545 1,462 0.5% 0.5%
Total costs and expenses 259,128 242,938 92.2% 84.7%
Income before income taxes 21,847 43,785 7.8% 15.3%
Income tax expense 9,430 19,024 3.4% 6.7%
Net income $ 12,417 $ 24,761 4.4% 8.6%
Earnings per share:
Basic $0.52 $1.02
Diluted $0.50 $1.01
Weighted average number
of shares outstanding:
Basic 24,079,634 24,163,020
Diluted 24,830,012 24,570,623
Six months ended As % of
June 30, Total revenues
2001 2000 2001 2000
Revenues:
Vehicle rentals $ 408,200 $ 388,009 77.8% 74.5%
Vehicle leasing 81,432 98,032 15.5% 18.8%
Fees and services 27,967 30,042 5.3% 5.8%
Other 7,237 5,063 1.4% 0.9%
Total revenues 524,836 521,146 100.0% 100.0%
Costs and Expenses:
Direct vehicle and
operating 178,513 154,156 34.0% 29.6%
Vehicle depreciation
and lease charges, net 172,195 157,669 32.8% 30.2%
Selling, general and
administrative 89,007 96,691 17.0% 18.6%
Interest expense, net 43,170 45,301 8.2% 8.7%
Amortization of cost in
excess of net assets
acquired 3,089 2,908 0.6% 0.5%
Total costs and expenses 485,974 456,725 92.6% 87.6%
Income before income taxes 38,862 64,421 7.4% 12.4%
Income tax expense 17,236 28,348 3.3% 5.5%
Net income $ 21,626 $ 36,073 4.1% 6.9%
Earnings per share:
Basic $0.90 $1.49
Diluted $0.88 $1.47
Weighted average number
of shares outstanding:
Basic 24,080,306 24,161,797
Diluted 24,681,399 24,561,544
Dollar Thrifty Automotive Group, Inc.
Consolidated Operating Statistics
Three months ended Six months ended
June 30, 2001 June 30, 2001
Vehicle Rental Data:
Average number of vehicles operated 76,657 70,677
% change from prior year (A) 12.1% 13.0%
Number of rental days 5,661,652 10,587,453
% change from prior year 6.9% 9.6%
Vehicle utilization 81.2% 82.8%
Percentage points change from prior year (3.9) p.p. (2.1) p.p.
Average revenue per day $38.40 $38.56
% change from prior year (4.6%) (4.0%)
Monthly average revenue per vehicle $945 $963
% change from prior year (9.0%) (6.9%)
Vehicle Leasing Data:
Average number of vehicles leased 32,393 29,594
% change from prior year (17.1%) (16.0%)
Monthly average revenue per vehicle $462 $459
% change from prior year (1.1%) (1.1%)
(A) Average number of vehicles operated increased 5.6% and 6.0% on a same
store basis for the three months and six months ended June 30, 2001,
respectively.
