Dollar Thrifty Automotive Group Reports Record Revenue
21 July 1999
Dollar Thrifty Automotive Group Reports Record Revenue, Net Income and Earnings Per Share for Second Quarter
Second Quarter Net Income Increases 84 Percent; Strong Gains From Sale of Used
Rental Vehicles Drives Pre-Tax Margin Expansion of 430 Basis Points
TULSA, Okla., July 21 -- Dollar Thrifty Automotive Group,
Inc. , today reported record results for the second quarter ended
June 30, 1999. Total revenue for the 1999 second quarter was $259.4 million,
a 14.2 percent increase over the 1998 second quarter. Net income for the
quarter increased 84.4 percent to $17.0 million, or $.69 diluted earnings per
share, based on 24,499,643 weighted average outstanding shares. The company
noted that its second quarter results included particularly strong gains from
the sale of its used rental vehicles, contributing $9.3 million to pre-tax
income. For the comparable 1998 quarter, net income was $9.2 million, or
$.38 diluted earnings per share, based on 24,151,647 weighted average
outstanding shares.
For the first six months of 1999, total revenue was $470.9 million, a
12.5 percent increase over the $418.5 million reported for the first half of
1998. Net income for the six-month period increased 123.1 percent to
$22.4 million, or $.92 diluted earnings per share, compared to $10.0 million,
or $.42 diluted earnings per share reported for the first six months of 1998.
Results for the first six months of 1999 and 1998 are based on 24,445,678 and
24,112,554 weighted average outstanding shares.
Dollar Thrifty Automotive Group, Inc. owns Dollar Rent A Car Systems, Inc.
and Thrifty, Inc. For the 1999 second quarter, Dollar achieved record revenue
of $189.3 million, an increase of 14.5 percent over the second quarter of
1998. Contributing to Dollar's record quarter were a strong increase in
vehicle rental revenue, which was up 15.6 percent over last year's second
quarter and improved fleet utilization. Dollar announced during the quarter
that it formed a Preferred Marketing Partnership Agreement with Southwest
Airlines which has a strong presence in many of Dollar's key leisure markets.
For the second quarter, Thrifty, Inc. also achieved record revenue of
$69.9 million, a 13.3 percent increase over 1998's second quarter revenue.
Due to Thrifty's growing franchisee base, vehicle leasing revenue in the 1999
second quarter grew to a record $51.3 million, a 17.5 percent increase over
1998. During the quarter, Thrifty franchised its Chicago company store
operation, completing its goal to franchise all company stores in the U.S.
except the store located in Tulsa, Oklahoma, the company's headquarters city.
Joseph E. Cappy, Chairman, CEO and President, said, "We are very pleased
with the results of our two operating companies during the second quarter.
The strong U.S. economy and high level of consumer confidence led to strong
growth in leisure travel, where our two companies are focused. We have also
made great strides in managing our vehicles, leading to excellent utilization
of our fleet and positive results from the disposition of our used vehicles."
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 the company's 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; 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 Six months ended
June 30, June 30,
1999 1998 1999 1998
Revenue:
Vehicle rentals $183,636 $159,369 $333,951 $294,426
Vehicle leasing 59,430 52,272 106,932 93,838
Fees and services 14,487 13,091 26,174 25,718
Other 1,797 2,445 3,844 4,527
Total revenue 259,350 227,177 470,901 418,509
Costs and Expenses:
Direct vehicle and
operating 75,647 66,464 141,642 128,732
Vehicle depreciation and
lease charges, net 78,899 78,825 148,535 145,774
Selling, general and
administrative 48,236 40,756 92,156 79,958
Interest expense, net 24,672 22,673 44,523 41,317
Amortization of cost
in excess of net assets
acquired 1,402 1,345 2,942 2,697
Total costs and
expenses 228,856 210,063 429,798 398,478
Income before income
taxes 30,494 17,114 41,103 20,031
Income tax expense 13,506 7,901 18,718 9,996
Net income $16,988 $9,213 $22,385 $10,035
Earnings per share:
Basic $0.70 $0.38 $0.93 $0.42
Diluted $0.69 $0.38 $0.92 $0.42
Weighted average number
of shares outstanding:
Basic 24,127,896 24,127,980 24,126,806 24,088,887
Diluted 24,499,643 24,151,647 24,445,678 24,112,554