Dollar Thrifty Automotive Group Reports Record Second Quarter Results
19 July 2000
Company's 10th Consecutive Quarter of Record Operating Results Includes 46 Percent Increase in Both Net Income and EPS; and Pre-Tax Margin Expansion Of 350 Basis Points
TULSA, Okla. - Dollar Thrifty Automotive Group, Inc. today reported record
results for the second quarter ended June 30, 2000. Total revenue for the
2000 second quarter was $286.7 million, a 10.6 percent increase over the 1999
second quarter. Net income for the quarter was $24.8 million, or $1.01
earnings per diluted share, based on 24,570,623 weighted average outstanding
shares. For the comparable 1999 quarter, net income was $17 million, or $.69
earnings per diluted share based on 24,499,643 weighted average outstanding
shares.
Highlights for the second quarter include:
* Pre-tax earnings of $43.8 million, a 43.6 percent increase over the 1999
second quarter, with a record 15.3 percent pre-tax margin and 350 basis
points in margin expansion;
* Both operating companies, Dollar Rent A Car Systems, Inc. and
Thrifty, Inc., contributed to the record pre-tax margin with
15.6 percent and 14.5 percent, respectively.
* A 4.1 percent increase in Dollar Rent A Car's revenue per day;
* Dollar Thrifty generated 24.5 percent of its retail reservations from
the Internet, a 157 percent increase over the 1999 second quarter.
For the first six months of 2000, total revenue was $521.1 million, a
10.7 percent increase over the $470.9 million reported for the first half of
1999. Net income for the six-month period increased 61.1 percent to
$36.1 million, or $1.47 earnings per diluted share, compared to $22.4 million,
or $.92 earnings per diluted share reported for the first six months of 1999.
Results for the first six months of 2000 and 1999 are based on 24,561,544 and
24,445,678 weighted average outstanding shares, respectively.
Dollar Thrifty Automotive Group, Inc. owns Dollar Rent A Car Systems, Inc.
and Thrifty, Inc. For the 2000 second quarter, Dollar achieved record revenue
of $218.3 million, an increase of 15.3 percent over the second quarter of
1999. Contributing to Dollar's record quarter was a 17 percent increase in
vehicle rental revenue, which reached $204.6 million, driven by strong growth
in rental days and excellent growth in revenue per day. Dollar continues to
strengthen its commanding Internet presence. For the second consecutive
quarter, Gomez Advisors recognized dollar.com as the number one ranked
Internet car rental site. On July 17, a new Web site, dollar.co.uk, was
launched offering customers from the United Kingdom pre-paid fully inclusive
rental car packages when traveling to the United States.
For the second quarter, Thrifty, Inc. achieved revenue of $68.2 million.
The 2.4 percent decrease in Thrifty's revenue was attributable to the results
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 by
2.6 percent over the comparable 1999 quarter. Thrifty continued its focus to
locate in-terminal and currently has 84 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 22 stores in operation, and
expects to have approximately 55 dealers by year-end.
Joseph E. Cappy, Chairman, CEO and President, said, "Obviously we are
extremely pleased to report another quarter of record results. The strong
industry pricing environment during the first half of 2000 is the best we've
seen in over two years. We are particularly proud to lead the industry in
pre-tax margin and margin expansion, with both Dollar and Thrifty contributing
to this improvement. Our operations are efficient and our fleet utilization
is high allowing us to offer the expanding surge of leisure travelers an
outstanding car rental value. It's what we do best. Looking ahead, we
believe that the baby boomers will continue to drive the growth in leisure
travel for Dollar Thrifty Automotive Group during the second half of 2000, and
beyond."
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.
Dollar Thrifty Automotive Group, Inc.
Consolidated Statement of Income
(In thousands, except share and per share data)
Unaudited
Three months ended As % of
June 30, Total revenues
2000 1999 2000 1999
Revenues:
Vehicle rentals $213,146 $183,636 74.3% 70.8%
Vehicle leasing 54,746 59,430 19.1% 22.9%
Fees and services 15,891 14,487 5.5% 5.6%
Other 2,940 1,797 1.1% 0.7%
Total revenues 286,723 259,350 100.0% 100.0%
Costs and Expenses:
Direct vehicle and
operating 82,357 75,647 28.7% 29.2%
Vehicle depreciation
and lease
charges, net 83,943 78,899 29.3% 30.4%
Selling, general
and administrative 50,494 48,236 17.6% 18.6%
Interest expense, net 24,682 24,672 8.6% 9.5%
Amortization of cost
in excess of net
assets acquired 1,462 1,402 0.5% 0.5%
Total costs and
expenses 242,938 228,856 84.7% 88.2%
Income before
income taxes 43,785 30,494 15.3% 11.8%
Income tax expense 19,024 13,506 6.7% 5.2%
Net income $24,761 $16,988 8.6% 6.6%
Earnings per share:
Basic $ 1.02 $ 0.70
Diluted $ 1.01 $ 0.69
Weighted average number
of shares outstanding:
Basic 24,163,020 24,127,896
Diluted 24,570,623 24,499,643
Six months ended As % of
June 30, Total revenues
2000 1999 2000 1999
Revenues:
Vehicle rentals $ 388,009 $ 333,951 74.5% 70.9%
Vehicle leasing 98,032 106,932 18.8% 22.7%
Fees and services 30,042 26,174 5.8% 5.6%
Other 5,063 3,844 0.9% 0.8%
Total revenues 521,146 470,901 100.0% 100.0%
Costs and Expenses:
Direct vehicle and
operating 154,156 141,642 29.6% 30.1%
Vehicle depreciation
and lease
charges, net 157,669 148,535 30.2% 31.5%
Selling, general
and administrative 96,691 92,156 18.6% 19.6%
Interest expense,
net 45,301 44,523 8.7% 9.5%
Amortization of cost
in excess of net
assets acquired 2,908 2,942 0.5% 0.6%
Total costs and
expenses 456,725 429,798 87.6% 91.3%
Income before
income taxes 64,421 41,103 12.4% 8.7%
Income tax expense 28,348 18,718 5.5% 4.0%
Net income $36,073 $22,385 6.9% 4.7%
Earnings per share:
Basic $1.49 $ 0.93
Diluted $1.47 $ 0.92
Weighted average number
of shares outstanding:
Basic 24,161,797 24,126,806
Diluted 24,561,544 24,445,678
