Dollar Thrifty Automotive Group Reports Record Q3 Results
18 October 2000
Dollar Thrifty Automotive Group Reports Record Third Quarter Results
Company's 11th Consecutive Quarter of Record Operating Results; Net Income
Increases 19 Percent; EPS Exceeds Analysts' Estimates
TULSA, Okla., Oct. 18 Dollar Thrifty Automotive Group,
Inc. , today reported record results for the third quarter ended
September 30, 2000. Total revenue for the 2000 third quarter was
$322.9 million, a 7.9 percent increase over the 1999 third quarter. Net
income for the quarter increased 19 percent to $36 million, or $1.46 per
diluted share, including a favorable adjustment to insurance reserves. The
positive adjustment of $.12 per share was a result of the favorable settlement
of claims. Prior to the insurance adjustment, earnings per share were $1.34
which exceeds the First Call consensus estimate by $.01. The 2000 third
quarter results are based on 24,618,308 weighted average outstanding shares.
For the comparable 1999 quarter, net income was $30.2 million, or
$1.23 diluted earnings per share based on 24,549,887 weighted average
outstanding shares.
For the first nine months of 2000, total revenue was $844.1 million, a
9.6 percent increase over the $770.3 million for the first nine months of
1999. Net income for the nine-month period increased 37 percent to
$72 million, compared to $52.6 million for the first nine months of 1999.
Year to date diluted earnings per share were $2.93 in 2000 and $2.15 in 1999,
based on 24,573,437 and 24,475,186 weighted average outstanding shares,
respectively.
For the third quarter, Thrifty, Inc. achieved revenue of $77.1 million,
compared to $77.3 million in the 1999 third quarter. Thrifty's vehicle
leasing revenue decreased 6.9 percent as 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. On a
normalized basis, leasing revenue increased 1.1 percent over the comparable
1999 quarter. Thrifty continued its focus to locate in-terminal and currently
has 87 in-terminal locations representing over half of the U.S. airports
serviced by Thrifty. Thrifty Car Sales, a franchised retail used car sales
network, has 27 stores in operation with an additional 19 that have signed and
are in various stages of opening. Thrifty expects to have approximately
60 dealers by year-end.
Joseph E. Cappy, Chairman, CEO and President, said, "We are very pleased
to report another quarter of outstanding results including earnings per share
of $1.34, prior to the favorable insurance adjustment, which exceeds the $1.33
First Call consensus estimate. Our forward strategy is to continue our niche
focus on the value-conscious consumer and take advantage of opportunities to
build stockholder value."
For the 2000 fourth quarter, the Company expects Dollar's year-over-year
rental day growth to be in the nine to 10 percent range and revenue per day to
be down two to three percent. Thrifty's vehicle leasing revenue is expected
to be equal with last year's fourth quarter. Based on these expected fourth
quarter market conditions and higher vehicle costs, the Company anticipates
earnings per share to be in the range of $.18 to $.22.
Dollar Thrifty Automotive Group, Inc.
Consolidated Statement of Income
(In thousands, except share and per share data)
Unaudited
Three months ended As % of
September 30, Total revenues
2000 vs.
2000 1999 2000 1999 1999
Revenues:
Vehicle rentals $244,340 $217,202 75.7% 72.5%
Vehicle leasing 58,769 63,497 18.2% 21.2%
Fees and services 17,110 16,634 5.3% 5.6%
Other 2,691 2,023 0.8% 0.7%
Total revenues 322,910 299,356 100.0% 100.0% +7.9%
Costs and Expenses:
Direct vehicle
and operating 85,899 81,629 26.6% 27.3%
Vehicle depreciation
and lease charges,
net 100,161 88,074 31.0% 29.4%
Selling, general
and administrative 44,915 48,686 13.9% 16.3%
Interest expense,
net 29,381 27,491 9.1% 9.2%
Amortization of cost
in excess of net
assets acquired 1,489 1,440 0.5% 0.4%
Total costs
and expenses 261,845 247,320 81.1% 82.6%
Income before income
taxes 61,065 52,036 18.9% 17.4% +17.4%
Income tax expense 25,101 21,826 7.8% 7.3%
Net income $35,964 $30,210 11.1% 10.1% +19.0%
Earnings per share:
Basic $1.49 $1.25
Diluted $1.46 $1.23
Weighted average number
of shares outstanding:
Basic 24,168,156 24,145,008
Diluted 24,618,308 24,549,887
Nine months ended As % of
September 30, Total revenues
2000 vs.
2000 1999 2000 1999 1999
Revenues:
Vehicle rentals $632,349 $551,153 74.9% 71.5%
Vehicle leasing 156,801 170,429 18.6% 22.1%
Fees and services 47,152 42,808 5.6% 5.6%
Other 7,754 5,867 0.9% 0.8%
Total revenues 844,056 770,257 100.0% 100.0% +9.6%
Costs and Expenses:
Direct vehicle and
operating 240,055 223,271 28.4% 29.0%
Vehicle depreciation
and lease charges,
net 257,830 236,609 30.5% 30.7%
Selling, general
and administrative 141,606 140,842 16.8% 18.3%
Interest expense,
net 74,682 72,014 8.9% 9.3%
Amortization of cost
in excess of net
assets acquired 4,397 4,382 0.5% 0.6%
Total costs
and expenses 718,570 677,118 85.1% 87.9%
Income before
income taxes 125,486 93,139 14.9% 12.1% +34.7%
Income tax expense 53,449 40,544 6.4% 5.3%
Net income $72,037 $52,595 8.5% 6.8% +37.0%
Earnings per share:
Basic $2.98 $2.18
Diluted $2.93 $2.15
Weighted average number
of shares outstanding:
Basic 24,163,932 24,132,940
Diluted 24,573,437 24,475,186
Dollar Thrifty Automotive Group, Inc.
Consolidated Operating Statistics
Three months ended
September 30, % change
from 3rd qtr
2000 1999 1999
Vehicle Rental Data
Average number of
vehicles operated 77,018 68,651 12.2%
Number of rental days 6,040,110 5,412,377 11.6%
Utilization 85.2% 85.7% (0.5)% pts. change
Average revenue per day $40.47 $40.13 0.8%
Monthly average revenue
per vehicle $1,058 $1,055 0.3%
Vehicle Leasing Data
Average number of
vehicles leased 41,339 44,435 (7.0%)
Monthly average revenue
per vehicle $474 $476 (0.4%)
Nine months ended
September 30, % change
from
2000 1999 1999
Vehicle Rental Data
Average number of
vehicles operated 67,403 60,451 11.5%
Number of rental days 15,701,720 14,146,307 11.0%
Utilization 85.0% 85.7% (0.7)% pts. change
Average revenue per day $40.28 $38.97 3.4%
Monthly average revenue
per vehicle $1,042 $1,013 2.9%
Vehicle Leasing Data
Average number of
vehicles leased 37,274 40,006 (6.8%)
Monthly average revenue
per vehicle $467 $473 (1.3%)