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
Terri Willson Snow
Executive Director - Investor Relations
Chief Financial Officer
TULSA, OKLAHOMA, January 31, 2001: Dollar Thrifty Automotive Group, Inc., (NYSE:DTG), 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.