Dollar Thrifty Automotive Group Reports Record Revenue
31 January 2001
Dollar Thrifty Automotive Group Reports Record Revenue, Net Income and EPS For Full Year 2000
Full Year Net Income and Earnings Per Share Increase 31 Percent
TULSA, Okla., Jan. 31 Dollar Thrifty Automotive Group,
Inc., , today announced record results for the full year 2000.
Total revenue for 2000 was $1.083 billion, an 8.5 percent increase over the
$999 million total revenue in 1999. Net income for 2000 increased
30.9 percent to $78.0 million, or $3.18 per diluted share, based on
24,539,462 weighted average outstanding shares. Net income for 1999 was
$59.6 million, or $2.43 per diluted share, based on 24,485,101 weighted
average outstanding shares.
For the fourth quarter ended December 31, 2000, total revenue was
$239.4 million, a 4.8 percent increase over the same period in 1999. Net
income for the fourth quarter was $6.0 million, compared to $7.0 million in
the 1999 fourth quarter. Earnings per share on a diluted basis were $.24,
based on 24,537,851 weighted average outstanding shares. In the 1999 fourth
quarter, earnings per share were $.28, based on 24,539,847 weighted average
outstanding shares.
Dollar Thrifty Automotive Group, Inc. owns Dollar Rent A Car Systems, Inc.
and Thrifty, Inc. For the full year, Dollar Rent A Car grew revenue by
12.1 percent to $823.9 million. Fourth quarter revenue was $180.6 million, up
6.7 percent over the 1999 fourth quarter. Fourth quarter vehicle rental
revenue increased 8.9 percent over the 1999 quarter driven by solid growth in
rental days. Dollar continues to expand its commanding presence on the
Internet. During the year, over 29.2 percent of total reservations were
booked on dollar.com and other Internet travel sites, a 145 percent increase
over 1999. As a result of strategic acquisitions completed during the year,
Dollar now operates corporately in over 80 percent of the top 50 U.S.
airports, with the balance operated by Dollar licensees.
Thrifty, Inc. achieved full year revenue of $259.1 million. Fourth
quarter revenue was $58.8 million, compared to $59.0 million in the
1999 fourth quarter. During the fourth quarter, Thrifty operated its South
Florida locations as company stores. This shift in operations, combined with
growth in its Canadian operations, resulted in a 59.3 percent increase in
rental revenue and contributed to a 12.0 percent decrease in leasing revenue.
Thrifty continued to increase its visibility at U.S. airports with
13 operations moving in terminal during the year. Currently, over half the
airports serviced by Thrifty in the U.S. are now in terminal. Thrifty Car
Sales now has 35 locations in operation with an additional 18 signed dealer
agreements, and expects to double the size of its car sales network by the end
of 2001. During the year, Thrifty sold over 8,000 of its used rental cars
through its franchised distribution network to Thrifty Car Sales and Thrifty
Car Rental franchisees, a 45 percent increase over 1999.
Joseph E. Cappy, Chairman, CEO and President, said, "Our two strong brands
excel in serving the growing leisure travel market. We continue to attract
value-conscious consumers while achieving record profit margins due to our
focus on being the industry's low-cost provider. Despite the difficult
pricing environment in the fourth quarter, our substantial improvements in the
utilization of our fleet enabled us to achieve a very profitable quarter.
Backed by our solid balance sheet, experienced management team and proven
operating strategies, we'll continue our drive toward increased shareholder
value."
Regarding the outlook for 2001, the Company expects rental day growth of
eight percent to nine percent, including growth from franchise acquisitions.
Revenue per day is expected to decrease in the first quarter by three to four
percent as compared to last year's first quarter. Based on these anticipated
market conditions and higher vehicle costs, the Company expects first quarter
earnings per share to be in the range of $.30 to $.35. The Company has less
visibility on pricing trends beyond the first quarter, but does expect
industry pricing to improve in the second half of the year. The Company
estimates that full year revenue per day could increase as much as one percent
to two percent or could decline by as much as two percent to three percent
from that achieved in 2000. Based on this range of revenue per day estimates
and other anticipated industry and market conditions, including higher vehicle
costs, the Company expects 2001 earnings per share to be in the range of
$2.50 to $3.35.
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 inbound 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, Inc. fourth quarter/full year 2000
earnings conference call will be held on Wednesday, January 31, 2001 at
10:00 a.m. (central time). Those interested in listening to the conference
call live may access the call via webcast at the corporate website,
http://www.dtag.com; or by dialing 800-683-1535 (domestic) or
973-633-1010 (international). An audio replay of the conference call will be
available through February 7, 2001, by calling 888-695-7635 (domestic) or
402-220-0610 (international). The replay will also be available via the
corporate website through February 28, 2001.
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: price and product competition; 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 conducting business; 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
December 31, Total revenues
2000 1999 2000 1999
Revenues:
Vehicle rentals $181,392 $163,254 75.8% 71.5%
Vehicle leasing 41,885 48,185 17.5% 21.1%
Fees and services 14,014 14,238 5.8% 6.2%
Other 2,096 2,818 0.9% 1.2%
Total revenues 239,387 228,495 100.0% 100.0%
Costs and Expenses:
Direct vehicle and
operating 75,109 65,858 31.4% 28.8%
Vehicle depreciation
and lease charges,
net 82,618 74,504 34.5% 32.6%
Selling, general and
administrative 46,105 50,152 19.3% 21.9%
Interest expense, net 23,021 23,100 9.6% 10.1%
Amortization of cost
in excess of net
assets acquired 1,544 1,460 0.6% 0.7%
Total costs and
expenses 228,397 215,074 95.4% 94.1%
Income before income
taxes 10,990 13,421 4.6% 5.9%
Income tax expense 5,018 6,430 2.1% 2.8%
Net income $ 5,972 $ 6,991 2.5% 3.1%
Earnings per share:
Basic $0.25 $0.29
Diluted $0.24 $0.28
Weighted average number
of shares outstanding:
Basic 24,181,111 24,145,277
Diluted 24,537,851 24,539,847
Year ended As % of
December 31, Total revenues 2000 vs.
2000 1999 2000 1999 1999
Revenues:
Vehicle rentals $813,741 $714,407 75.1% 71.5%
Vehicle leasing 198,686 218,614 18.3% 21.9%
Fees and services 61,166 57,046 5.7% 5.7%
Other 9,850 8,685 0.9% 0.9%
Total revenues 1,083,443 998,752 100.0% 100.0% +8.5%
Costs and Expenses:
Direct vehicle and
operating 315,164 289,129 29.1% 28.9%
Vehicle depreciation
and lease charges,
net 340,448 311,113 31.4% 31.2%
Selling, general and
administrative 187,711 190,994 17.3% 19.1%
Interest expense, net 97,703 95,114 9.0% 9.5%
Amortization of cost
in excess of net
assets acquired 5,941 5,842 0.6% 0.6%
Total costs and
expenses 946,967 892,192 87.4% 89.3%
Income before income
taxes 136,476 106,560 12.6% 10.7% +28.1%
Income tax expense 58,467 46,974 5.4% 4.7%
Net income $78,009 $59,586 7.2% 6.0% +30.9%
Earnings per share:
Basic $3.23 $2.47
Diluted $3.18 $2.43
Weighted average number
of shares outstanding:
Basic 24,168,250 24,136,050
Diluted 24,539,462 24,485,101
Dollar Thrifty Automotive Group, Inc.
Consolidated Operating Statistics
Three months ended Year ended
Dec. 31, 2000 Dec. 31, 2000
Vehicle Rental Data:
Average number of vehicles operated 60,636 65,702
% change from prior year 9.1% 10.9%
Number of rental days 4,645,576 20,347,296
% change from prior year 15.9% 12.1%
Vehicle utilization 83.3% 84.6%
Percentage points change from prior year 4.9 p.p. 0.6 p.p.
Average revenue per day $39.04 $40.00
% change from prior year (4.2%) 1.7%
Monthly average revenue per vehicle $997 $1,032
% change from prior year 1.8% 2.7%
Vehicle Leasing Data:
Average number of vehicles leased 30,294 35,520
% change from prior year (12.9%) (8.2%)
Monthly average revenue per vehicle $461 $466
% change from prior year (0.1%) (1.0%)