Dollar Thrifty Reports Record Revenue, Net Income and EPS For Q4 and Full Year 1999
2 February 2000
Dollar Thrifty Automotive Group Reports Record Revenue, Net Income and EPS For Fourth Quarter and Full Year 1999
Fourth Quarter Net Income Increases 101 Percent;
1999 EPS Increases 56 Percent Over Prior Year
TULSA, Okla., Feb. 2 -- Dollar Thrifty Automotive Group, Inc.
, today announced record results for the 1999 fourth quarter and
full year. For the fourth quarter ended December 31, 1999, total revenue was
$228.5 million, an 11.1 percent increase over the same period in 1998. Net
income for the fourth quarter was $7.0 million, compared to $3.5 million in
the 1998 fourth quarter. Earnings per share on a diluted basis were $.28,
based on 24,539,847 weighted average outstanding shares. In the 1998 fourth
quarter, earnings per share were $.14, based on 24,216,876 weighted average
outstanding shares.
Total revenue for 1999 was $998.8 million, an 11.1 percent increase over
the $899.0 million in 1998. Net income for 1999 was $59.6 million, or
$2.43 per diluted share, based on 24,485,101 weighted average outstanding
shares. Net income for 1998 was $37.7 million, or $1.56 per diluted share in
1998, based on 24,189,953 weighted average outstanding shares.
Dollar Thrifty Automotive Group, Inc. owns Dollar Rent A Car Systems, Inc.
and Thrifty, Inc. Dollar Rent A Car achieved record fourth quarter revenue of
$169.3 million, up 12.8 percent over the 1998 fourth quarter. For the year,
Dollar reported record revenue of $735.0 million, an 11.3 percent increase
over 1998. Contributing to Dollar's record fourth quarter results was a
strong increase in rental revenue, up 14.0 percent over the 1998 fourth
quarter, driven by a 21.7 percent increase in its retail revenue.
Thrifty also achieved record revenue during the 1999 fourth quarter of
$59.0 million, a 6.3 percent increase over the prior year fourth quarter.
Full-year revenue reached a record $263.0 million, a 10.5 percent increase
over 1998. The successful franchising of the Thrifty brand contributed to
Thrifty's growth in vehicle leasing revenue which reached a record
$42.0 million during the fourth quarter. During 1999, Thrifty added 18 U.S.
car rental franchises, including six in the fourth quarter. Thrifty Car
Sales, which was launched in the first quarter of 1999, has signed dealer
agreements for 15 U.S. cities.
Joseph E. Cappy, Chairman, CEO and President, said, "Obviously we're
pleased with the outstanding performance of our operating companies. During
each of the past two years, Dollar Thrifty has delivered over a 50 percent
improvement in pre-tax profits. Looking ahead, the leisure travel market is
being fueled from increasing travel by Baby Boomers, additional airline
capacity and major expansions of hotels and attractions in key leisure
markets. Our two strong brands are uniquely positioned to capitalize on this
growth and we're confident Dollar Thrifty is on the right trail to continued
success."
The Dollar and Thrifty systems have worldwide locations in approximately
75 countries including over 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 companies' 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; 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 Income
(In thousands, except share and per share data)
Unaudited
Three months ended Year ended
December 31, December 31,
1999 1998 1999 1998
Revenues:
Vehicle rentals $ 163,254 $ 143,450 $ 714,407 $ 635,600
Vehicle leasing 48,185 48,751 218,614 202,371
Fees and services 14,238 11,256 57,046 51,770
Other 2,818 2,299 8,685 9,225
Total revenues 228,495 205,756 998,752 898,966
Costs and Expenses:
Direct vehicle and
operating 65,858 64,637 289,129 267,504
Vehicle depreciation
and lease charges,
net 74,504 68,855 311,113 305,169
Selling, general and
administrative 50,152 42,577 190,994 163,256
Interest expense, net 23,100 21,473 95,114 88,726
Amortization of cost
in excess of net
assets acquired 1,460 1,371 5,842 5,417
Total costs and
expenses 215,074 198,913 892,192 830,072
Income before income
taxes 13,421 6,843 106,560 68,894
Income tax expense 6,430 3,364 46,974 31,229
Net income $ 6,991 $ 3,479 $ 59,586 $ 37,665
Earnings per share:
Basic $ 0.29 $ 0.14 $ 2.47 $ 1.56
Diluted $ 0.28 $ 0.14 $ 2.43 $ 1.56
Weighted average
number of shares
outstanding:
Basic 24,145,277 24,125,055 24,136,050 24,105,837
Diluted 24,539,847 24,216,876 24,485,101 24,189,953