Dollar Thrifty Automotive Group Reports Record Revenue
19 April 2000
Dollar Thrifty Automotive Group Reports Record Revenue, Net Income and Earnings Per Share for First Quarter
Net Income Increases 110 Percent, Leading Industry
in Pre-tax Margin and Margin Expansion
TULSA, Okla., April 19 Dollar Thrifty Automotive Group,
Inc. (NYSE: DTG) today reported record results for the first quarter ended
March 31, 2000. Total revenue for the 2000 first quarter was $234.4 million,
a 10.8 percent increase over the 1999 first quarter. Net income for the
quarter was $11.3 million, or $.46 per diluted share, based on 24,552,373
weighted average outstanding shares. For the comparable 1999 quarter, net
income was $5.4 million, or $.22 per diluted share, based on 24,361,143
weighted average outstanding shares.
Dollar Thrifty Automotive Group, Inc. owns Dollar Rent A Car Systems, Inc.
and Thrifty, Inc. For the 2000 first quarter, Dollar achieved record first
quarter revenue of $179.4 million, an increase of 16.0 percent over the first
quarter of 1999. Contributing to Dollar's record quarter was a strong
increase in vehicle rental revenue, up 16.6 percent over the 1999 first
quarter, driven by extremely strong retail revenue per day increases of
6.4 percent and solid growth in rental days. Consistent with its strategy to
be a corporate presence in the top 50 U.S. car rental markets, Dollar acquired
the San Antonio, Texas, franchise as part of a multi-location purchase.
Dollar now operates corporately in 40 of the top 50 markets.
For the 2000 first quarter, Thrifty, Inc. achieved revenue of
$55.0 million. The 3.3 percent decrease from 1999's first quarter revenue was
a result of modifying the vehicle lease program to eliminate certain
incentives with a corresponding decrease in lease rates and shifting vehicles
to direct financing leases. After normalizing for these changes, revenue was
up 1.8 percent including a 10.1 percent increase in corporate vehicle rental
revenue driven by Thrifty's Canadian operations. Thrifty was successful in
adding to its franchisee base during the quarter with the sale of six U.S.
franchises. Thrifty Car Sales, a franchised retail used car sales network,
has signed dealer agreements for 23 U.S. cities and expects to have
approximately 60 dealers by year end.
Joseph E. Cappy, Chairman, CEO and President, said, "Dollar Thrifty
Automotive Group has achieved record operating results in each of the past
nine quarters since becoming a publicly traded company. For the 2000 first
quarter we led the industry with pre-tax margins of 8.8 percent, 380 basis
points above last year's first quarter. We are particularly pleased with the
strong first quarter pricing environment, which is the best we have seen in
over two years. We are uniquely positioned to capitalize on what promises to
be a growing leisure travel market and confident we're 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.
The Dollar Thrifty Automotive Group Web address is http://www.dtag.com .
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 As % of
March 31, Total revenues
2000 1999 2000 1999
Revenues:
Vehicle rentals $174,863 $150,315 74.6% 71.1%
Vehicle leasing 43,286 47,502 18.5% 22.5%
Fees and services 14,151 11,687 6.0% 5.5%
Other 2,123 2,047 0.9% 0.9%
Total revenues 234,423 211,551 100.0% 100.0%
Costs and Expenses:
Direct vehicle and
operating 71,799 65,995 30.6% 31.2%
Vehicle depreciation
and lease charges, net 73,726 69,636 31.4% 32.9%
Selling, general and
administrative 46,197 43,920 19.7% 20.8%
Interest expense, net 20,619 19,851 8.8% 9.4%
Amortization of cost in
excess of net assets
acquired 1,446 1,540 0.7% 0.7%
Total costs and
expenses 213,787 200,942 91.2% 95.0%
Income before income taxes 20,636 10,609 8.8% 5.0%
Income tax expense 9,324 5,212 4.0% 2.5%
Net income $11,312 $5,397 4.8% 2.5%
Earnings per share:
Basic $0.47 $0.22
Diluted $0.46 $0.22
Weighted average number
of shares outstanding:
Basic 24,160,574 24,125,705
Diluted 24,552,373 24,361,143