Dollar Thrifty Automotive Group Reports Fourth Quarter and Full Year 2002 Results
2002 Full Year Revenue Reaches a Record $1.1 Billion
TULSA, Okla., Feb. 5 -- Dollar Thrifty Automotive Group, Inc. , today announced results for
the full year 2002. Total revenue for 2002 was $1.13 billion, a 7.9 percent
increase over 2001. Net income for 2002 was $46.8 million, or $1.88 per
diluted share, which includes one-time costs totaling $.09 per share recorded
in the fourth quarter, related to the implementation of the company's new
operating structure. Diluted earnings per share, exclusive of these one-time
implementation costs, were $1.97, which was in line with the company's
guidance for the year. Prior year net income was $13.8 million, or $.57 per
diluted share.
For the fourth quarter ended December 31, 2002, total revenue was
$250.3 million, a 24.7 percent increase from the same period in 2001. Net
loss for the fourth quarter of 2002 was $4.0 million, or $.16 per diluted
share, including the one-time implementation costs of $.09 per share. For the
2001 fourth quarter, the company had a net loss of $13.8 million or $.57 per
diluted share.
"We are extremely pleased with our performance in what proved to be
another challenging year for the travel industry," Joseph E. Cappy, Chairman
and CEO, said. "I am especially proud of our management and all of our
employees. They effectively weathered the tough challenges of 2002 and
enabled DTG to generate solid returns for our shareholders."
Dollar Rent A Car Systems, Inc.
For the full year 2002, Dollar Rent A Car Systems, Inc. generated revenue
of $809.4 million, a 1.7 percent increase over the prior year. Fourth quarter
revenue was $172.6 million, a 16.6 percent increase from the 2001 fourth
quarter. Driven by a 10 percent increase in rental days and a 7.4 percent
increase in revenue per day, vehicle rental revenue grew to $166.4 million, an
18.2 percent increase over last year's fourth quarter. During the fourth
quarter, Dollar moved in-terminal at the Corpus Christi, Texas, International
Airport and in January 2003 began in-terminal operations at the Milwaukee
airport, bringing the total number of corporate U.S. in-terminal airport
operations to 68. Also, in January 2003, Dollar reached an agreement to
acquire the master franchise rights for the Dollar brand for all of Canada.
This acquisition is a strategic fit with the company's new corporate structure
and provides a platform for future growth throughout Canada.
Thrifty, Inc.
Thrifty, Inc. reported record revenue of $323.3 million for the full year
2002, a 27.0 percent increase over the prior year. Fourth quarter revenue was
$77.4 million, a 46.8 percent increase over the 2001 fourth quarter. Vehicle
leasing revenue increased 33.8 percent over last year's fourth quarter as a
result of strong franchisee vehicle orders. Thrifty's vehicle rental revenue
increased 97.7 percent primarily as a result of the strategy shift to operate
more U.S. locations corporately. During the 2002 fourth quarter, Thrifty
transitioned its Boston market from franchised operations to corporate
operations. In 2003, Thrifty has acquired from its franchisees the Hawaii
market and the Manchester, New Hampshire, market and will open a greenfield
operation in Charlotte, North Carolina, in the first quarter. These new
operations will bring the total number of U.S. markets operated corporately by
Thrifty to 13. The company is in discussions with additional franchisees
regarding potential acquisition opportunities.
Outlook
"We are pleased with our performance throughout 2002, however, we have
begun 2003 with guarded optimism," Cappy said. "We are currently seeing
weaker travel conditions in the face of a potential war and other economic
uncertainties. We expect first quarter results to fall below last year's
record first quarter results due to weaker pricing, the Easter holiday travel
season shifting back to the second quarter this year and to a weaker used car
market.
"These challenging times in the travel industry are the very reason we
implemented our new operating platform and strategy, which will provide
operational efficiencies and new internal growth opportunities. These
proactive measures to further enhance our operating model, along with our
strong liquidity position and balance sheet, will allow us to continue to
compete effectively during these difficult market conditions and beyond."
The Dollar Thrifty Automotive Group, Inc. fourth quarter/full year 2002
earnings conference call and live audio web cast will be held on Wednesday,
February 5, 2003, at 10:00 a.m. (central time). Those interested in listening
to the conference call live may access the call via web cast at the corporate
website, http://www.dtag.com; or by dialing 888-566-5904 (domestic) or
630-395-0217 (international). An audio replay of the conference call will be
available through February 19, 2003, by calling 800-947-5189 (domestic) or
402-220-3478 (international). The ID and pass code for both the domestic and
international replay is "Dollar Thrifty." The replay will also be available
via the corporate website through February 19, 2003.
The Dollar Thrifty Automotive Group Annual Meeting of Stockholders will be
held on May 29, 2003, at 11:00 a.m. C.D.T. at the Williams Presentation Center
Theatre, 2 East First Street, Tulsa, Oklahoma.
Dollar Thrifty Automotive Group, Inc. is headquartered in Tulsa, Oklahoma,
and has over 5,000 worldwide employees. Focused on being the low-cost provider
in the car rental industry, the company's brands, Dollar Rent A Car and
Thrifty Car Rental, serve value conscious leisure travelers in more than
70 countries. With operations at most major airports, Dollar and Thrifty have
approximately 800 corporate and franchised locations in the United States and
Canada.
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;
airline travel patterns; changes in capital availability or cost; costs and
other terms related to the acquisition and disposition of automobiles; costs
of conducting business and changes in structure or operations; 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 Operations
(In thousands, except share and per share data)
Unaudited
Three months ended As % of
December 31, Total revenues
2002 2001 2002 2001
Revenues:
Vehicle rentals $193,886 $154,680 77.5 % 77.1%
Vehicle leasing 40,832 32,277 16.3% 16.1%
Fees and services 12,345 11,623 4.9% 5.8%
Other 3,238 2,163 1.3% 1.0%
Total revenues 250,301 200,743 100.0% 100.0%
Costs and Expenses:
Direct vehicle
and operating 93,712 84,462 37.4% 42.1%
Vehicle depreciation
and lease charges, net 96,726 80,167 38.6% 39.9%
Selling, general
and administrative 43,124 39,598 17.2% 19.7%
Interest expense, net 23,083 22,272 9.3% 11.1%
Amortization of goodwill -- 1,545 0.0% 0.8%
Total costs and expenses 256,645 228,044 102.5% 113.6%
Loss before income
tax benefit (6,344) (27,301) (2.5%) (13.6%)
Income tax benefit (2,295) (13,474) (0.9%) (6.7%)
Net loss $(4,049) $(13,827) (1.6%) (6.9%)
Loss per share:
Basic ($0.17) ($0.57)
Diluted ($0.16) ($0.57)
Weighted average number
of shares outstanding:
Basic 24,357,612 24,128,867
Diluted 24,945,477 24,401,662
Year ended As % of
December 31, Total revenues
2002 2001 2002 2001
Revenues:
Vehicle rentals $897,384 $821,834 79.2% 78.3%
Vehicle leasing 168,792 162,204 14.9% 15.4%
Fees and services 56,237 56,057 5.0% 5.3%
Other 10,781 10,075 0.9% 1.0%
Total revenues 1,133,194 1,050,170 100.0% 100.0%
Costs and Expenses:
Direct vehicle
and operating 403,946 389,917 35.6% 37.1%
Vehicle depreciation
and lease charges, net 380,760 365,894 33.6% 34.8%
Selling, general
and administrative 177,562 169,599 15.7% 16.2%
Interest expense, net 93,427 92,365 8.3% 8.8%
Amortization of goodwill -- 6,178 0.0% 0.6%
Total costs
and expenses 1,055,695 1,023,953 93.2% 97.5%
Income before income taxes 77,499 26,217 6.8% 2.5%
Income tax expense 30,668 12,380 2.7% 1.2%
Net income $46,831 $13,837 4.1% 1.3%
Earnings per share:
Basic $1.93 $0.57
Diluted $1.88 $0.57
Weighted average number
of shares outstanding:
Basic 24,274,985 24,103,838
Diluted 24,894,381 24,487,543
Dollar Thrifty Automotive Group, Inc.
Consolidated Operating Statistics
Three months ended Year ended
December 31, 2002 December 31, 2002
Vehicle Rental Data:
Average number of
vehicles operated 63,095 69,272
% change from prior year (1) 17.5% 0.8%
Number of rental days 4,721,866 21,056,362
% change from prior year 17.3% 2.0%
Vehicle utilization 81.3% 83.3%
Percentage points
change from prior year (0.2) p.p. 1.0 p.p.
Average revenue per day $41.06 $42.62
% change from prior year 6.9% 7.0%
Monthly average revenue per vehicle $1,024 $1,080
% change from prior year 6.7% 8.3%
Vehicle Leasing Data:
Average number of vehicles leased 29,965 30,917
% change from prior year 20.4% 2.8%
Monthly average revenue per vehicle
$454 $455
% change from prior year 5.1% 1.3%
(1) Average number of vehicles operated on a same store basis
increased 8.4% for the three months ended December 31, 2002
and decreased 5.4% for the year ended December 31, 2002.