Dollar Thrifty Automotive Group Reports Record 1997 Results
5 February 1998
Dollar Thrifty Automotive Group Reports Record 1997 Results
TULSA, Okla., Feb. 5 -- Dollar Thrifty Automotive Group, Inc.
, which successfully completed its initial public offering and
separation from Chrysler on December 23, 1997, today reported record revenue,
net income and earnings per share for the year ended December 31, 1997. Total
revenue was $843.9 million, compared to $705.6 million in 1996, a 19.6 percent
increase. Net income for 1997 was $18.0 million, or $.90 per share compared
to a net loss of $147.3 million in 1996, or $7.36 per share. Net income for
1997 was adversely impacted by a $4.3 million one-time income tax charge
related to the Company's separation from Chrysler. Results for 1996 were
adversely impacted by intangible asset write-downs of $157.8 million,
primarily related to Chrysler's investment in Thrifty Car Rental.
For the quarter ended December 31, 1997, total revenue was $191.1 million,
a 19.9 percent increase over the same period in 1996. The Company reported a
net loss for the 1997 fourth quarter of $6.2 million, or $.30 per share,
including the one-time $4.3 million income tax charge related to the
separation from Chrysler. For the fourth quarter of 1996, the net loss was
$5.9 million, or $.30 per share, including a $2.8 million intangible asset
write-down.
Dollar Thrifty Automotive Group, Inc. owns Dollar Rent A Car and Thrifty
Car Rental. For the year, Dollar Rent A Car reported record revenue of
$617.5 million, up 23.7 percent from 1996. A strong U.S. economy, improved
industry pricing, growth in the international tour business and the
acquisition of franchise operations all contributed to Dollar's impressive
growth. Dollar's revenue in the 1997 fourth quarter increased 22.9 percent to
$140.0 million over the comparable 1996 quarter.
During 1997, Thrifty Car Rental also achieved record revenue of
$225.3 million, a 9.9 percent increase over 1996. Thrifty's revenue growth
was the result of increased vehicle leasing revenue generated from its
franchisees. Thrifty's success in franchising a number of key markets during
the year also contributed to this growth. These key markets include Hawaii;
Miami and Ft. Lauderdale, Florida; and San Diego, California. Thrifty's 1997
fourth quarter revenue of $50.8, million which increased 12.6 percent over the
comparable 1996 quarter, was also driven by strong growth in vehicle leasing
revenue.
Joseph E. Cappy, Chairman, CEO and President said, "We are proud of the
Company's performance during 1997. Our results reflect the positive impact of
a strong economy and improved car rental environment. As the industry remains
focused on improving profitability, we believe we are well positioned to take
advantage of growth opportunities in the leisure, discretionary traveler,
international tour and local markets." Commenting on the Company's recently
completed initial public offering of stock, Cappy also stated, "We are
extremely pleased with the market's reception of the offering and management
will continue to focus on revenue growth, improving efficiencies,
profitability and total return to stockholders."
The Dollar and Thrifty systems have worldwide locations in approximately
75 countries including 887 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 and is a leading lessor of rental
vehicles to car rental franchisees in North America.
Certain items in this press release may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are based on the Company's current
expectations and involve certain risks and uncertainties. Among the factors
that could cause results to differ materially from current expectations are:
(i) economic and competitive conditions in markets and countries where our
customers reside and where our companies and their franchisees operate; (ii)
changes in capital availability or cost; (iii) pricing levels in the
automotive industry for both new and used vehicles; and (iv) regulatory and
environmental matters.
Consolidated Statement of Operations
Dollar Thrifty Automotive Group, Inc.
Unaudited
Three Months Ended Twelve Months Ended
December 31, December 31,
1997 1996 1997 1996
Revenues:
Vehicle rentals $136,166 $113,364 $618,120 $495,598
Vehicle leasing 40,777 33,787 165,560 150,179
Fees and services 11,348 10,506 50,366 50,475
Other 2,771 1,712 9,898 9,342
Total revenues 191,062 159,369 843,944 705,594
Costs and Expenses:
Direct vehicle
and operating 65,025 58,433 284,083 245,895
Vehicle depreciation,
net 69,865 51,703 277,317 213,143
Selling, general, and
administrative 35,660 35,202 147,214 138,363
Interest expense, net 22,096 17,678 87,852 72,868
Amortization of cost
in excess of net
assets acquired 1,506 1,427 6,010 8,169
Intangible asset
impairment losses --- 2,758 --- 157,758
Total costs and
expenses 194,152 167,201 802,476 836,196
Income (loss) before
income taxes (3,090) (7,832) 41,468 (130,602)
Provision (benefit)
for income taxes 3,089 (1,907) 23,427 16,682
Net Income (loss) $ (6,179) $ (5,925) $ 18,041 $(147,284)
Basic and Diluted
Earnings Per Share $ (0.30) $ (0.30) $ 0.90 $ (7.36)
Weighted Average
Outstanding Shares 20,354,620 20,000,000 20,089,384 20,000,000
SOURCE Dollar Thrifty Automotive Group, Inc.