Dollar Thrifty Automotive Group Reports Q1 Revenue
28 April 1998
Dollar Thrifty Automotive Group Reports Record Revenue, Net Income and EPS for First Quarter
TULSA, Okla., April 28 -- Dollar Thrifty Automotive Group,
Inc. , today reported record revenue, net income and earnings per
share for the first quarter ended March 31, 1998. Total revenue for the 1998
first quarter was $191.3 million, an 8 percent increase over the
$177.1 million reported for the 1997 first quarter. Net income for the
quarter was $.8 million, or $.03 per share, a $2.1 million, or $.10 per share
increase from the first quarter a year ago.
Dollar Thrifty Automotive Group, Inc. owns Dollar Rent A Car and Thrifty
Car Rental. For the 1998 first quarter, Dollar Rent A Car achieved record
first quarter revenue of $141.1 million, an increase of 8.8 percent over the
1997 first quarter. Dollar's record results reflect the positive impact of
growth in the international tour business, continuing improvements in industry
pricing and revenue growth from franchise acquisitions. Dollar's vehicle
rental revenue increased 8.4 percent compared to the 1997 first quarter.
During March, Dollar purchased its San Diego location from a former
franchisee. This acquisition, which adds the 15th largest U.S. airport to
Dollar's corporate operations, places Dollar corporate operations in 36 of the
top 50 U.S. airport markets.
During the 1998 first quarter, Thrifty Car Rental generated revenue of
$49.9 million. As a result of Thrifty's strategic focus on growing its
franchisee base, vehicle leasing revenue in the 1998 first quarter increased
37.9 percent over the 1997 first quarter. After adding 30 new U.S.
franchisees during 1997, Thrifty continued the momentum by selling 12
franchise operations during the first quarter.
Commenting on the company's performance, Joseph E. Cappy, Chairman, CEO
and President, said, "Our first quarter earnings reflect improved operating
results at both Dollar and Thrifty. The complementary business mix of these
two companies affords Dollar Thrifty Automotive Group significant advantages.
During the first quarter, growth in Dollar's tour business, combined with a
significant increase in Thrifty's vehicle leasing helped offset the weather-
related impact of reduced retail rental volume in certain geographic areas,
including Florida. The first quarter results also reflect the successful
execution of growth strategies in place for both Dollar and Thrifty. We will
continue our efforts to capitalize on changing industry dynamics, build on the
company's unique strengths in the car rental industry and focus on
opportunities to increase shareholder profitability."
The Dollar and Thrifty systems have worldwide locations in approximately
75 countries including approximately 900 corporate and franchised locations in
the United States and Canada. The companies provide car rental services
primarily to value-conscious discretionary and leisure travelers. Dollar has
on-airport locations at major airports throughout the United States with a
focus on serving the leisure and international tour business. Thrifty serves
both the airport and local car rental markets and is a leading lessor of
rental vehicles to car rental franchisees in North America.
Dollar Thrifty Automotive Group, Inc.
Consolidated Statement of Operations
($ in thousands, except share and per share data)
Unaudited
Three months ended March 31,
1998 1997
Revenue:
Vehicle rentals $ 135,057 $ 132,226
Vehicle leasing 41,566 31,643
Fees and services 12,627 10,908
Other 2,082 2,324
Total revenue 191,332 177,101
Costs and Expenses:
Direct vehicle and operating 66,084 67,422
Vehicle depreciation, net 63,133 52,913
Selling, general, and administrative 39,202 38,415
Interest expense, net 18,644 17,806
Amortization of cost in excess of
net assets acquired 1,352 1,502
Total costs and expenses 188,415 178,058
Income (loss) before income taxes 2,917 (957)
Income tax expense 2,095 362
Net Income (loss) $ 822 $ (1,319)
Earnings (loss) per share:
Basic $ 0.03 $ (0.07)
Diluted $ 0.03 $ (0.07)
Weighted average number of
shares outstanding:
Basic 24,049,360 20,000,000
Diluted 24,137,756 20,000,000
SOURCE Dollar Thrifty Automotive Group, Inc.