Dollar Thrifty Automotive Group Reports Record Revenue
21 April 1999
Dollar Thrifty Automotive Group Reports Record Revenue, Net Income and Earnings Per Share for First Quarter
Earnings Per Share Increases 633 Percent Over Prior Year; Net Income Increases
557 Percent
TULSA, Okla, April 21 -- Dollar Thrifty Automotive Group,
Inc. , today reported record results for the first quarter ended
March 31, 1999. Total revenue for the 1999 first quarter was $211.6 million,
a 10.6 percent increase over the 1998 first quarter. Net income for the
quarter was $5.4 million, or $.22 per share, based on 24,361,143 weighted
average outstanding shares. For the comparable 1998 quarter, net income was
$.8 million, or $.03 per share, based on 24,137,756 weighted average
outstanding shares.
Dollar Thrifty Automotive Group, Inc. owns Dollar Rent A Car Systems, Inc.
and Thrifty, Inc. For the 1999 first quarter, Dollar achieved record first
quarter revenue of $154.6 million, an increase of 9.5 percent over the first
quarter of 1998. Contributing to Dollar's record quarter were a strong
increase in vehicle rental revenue, which was up 12.8 percent over last year's
first quarter and a particularly high level of fleet utilization. The
acquisition of franchise operations and new location openings completed during
1998 also contributed to Dollar's record results during the quarter. On
April 12, Dollar announced a European rental reservations alliance with
Sixt AG, a car rental company based in Germany. As part of the alliance,
which becomes effective March 1, 2000, Dollar and Sixt will exchange
reservations in the territories of each of their operations.
For the first quarter, Thrifty, Inc. also achieved record revenue of
$56.8 million, a 13.8 percent increase over 1998's first quarter revenue. Due
to Thrifty's strategic focus on growing its franchisee base, vehicle leasing
revenue in the 1999 first quarter grew to a record $41.9 million, a
21.4 percent increase over 1998. Thrifty Car Sales, a franchised retail used
car sales network, was officially launched during the first quarter and
approximately 40 locations are expected to be operating by the end of the
year. For the sixth straight year, Thrifty Car Rental was named the best car
rental company by Entrepreneur magazine.
Joseph E. Cappy, Chairman, CEO and President, said, "Obviously, we are
very pleased with the results of both of our operating companies during the
first quarter. Fueled by a strong economy and favorable industry cost trends,
both Dollar and Thrifty performed at a record-setting pace achieving
significant revenue growth and profit margin expansion. We have increased
confidence that we will experience continued growth in the car rental industry
and look forward to increasing the value of our stockholders' investments."
The Dollar and Thrifty systems have worldwide locations in approximately
75 countries including 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.
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: economic and competitive conditions in
markets and countries where our customers reside and where our companies and
their franchisees operate; changes in capital availability or cost; costs and
other terms related to the acquisition and disposition of automobiles; the
ability of the company and its third party providers, vendors, suppliers and
independent franchisees to adequately address the Year 2000 issue; 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 March 31,
1999 1998
Revenue:
Vehicle rentals $ 150,315 $135,057
Vehicle leasing 47,502 41,566
Fees and services 11,687 12,627
Other 2,047 2,082
Total revenue 211,551 191,332
Costs and Expenses:
Direct vehicle and operating 65,995 62,268
Vehicle depreciation and
lease charges, net 69,636 66,949
Selling, general, and
administrative 43,920 39,202
Interest expense, net 19,851 18,644
Amortization of cost
in excess of net assets
acquired 1,540 1,352
Total costs and expenses 200,942 188,415
Income before income taxes 10,609 2,917
Income tax expense 5,212 2,095
Net income $5,397 $822
Earnings per share:
Basic $0.22 $0.03
Diluted $0.22 $0.03
Weighted average number of
shares outstanding:
Basic 24,125,705 24,049,360
Diluted 24,361,143 24,137,756