Dollar Thrifty Automotive Group Reports Strong Third Quarter Results
Net income up 251 percent for quarter and up 84 percent year to date
Terri Willson Snow
Executive Director - Investor Relations
Chief Financial Officer
TULSA, OKLAHOMA, October 23, 2002: Dollar Thrifty Automotive Group, Inc. (NYSE:DTG), today reported results for the third quarter ended September 30, 2002. Total revenue for the 2002 third quarter was $337.7 million, a 9.7 percent increase over the 2001 third quarter. Net income for the quarter was $21.2 million, a 251 percent increase over the $6.0 million earned for the 2001 quarter. Earnings per diluted share were $.85 for the 2002 quarter compared to $.25 for the 2001 quarter. The Company's earnings were in line with its guidance for the quarter of a range of $.80 to $.90 per share. Dollar Thrifty Automotive Group, Inc. owns Dollar Rent A Car Systems, Inc. and Thrifty, Inc.
For the first nine months of 2002, total revenue was $882.9 million, a 3.9 percent increase over the first nine months of 2001. Net income for the first nine months of 2002 was $50.9 million, up 84 percent from the 2001 comparable period. Earnings per diluted share were $2.05 for the first nine months of 2002 compared to $1.13 for the same period last year.
"We are very pleased with our third quarter financial results," Joseph E. Cappy, Chairman, CEO and President, said. "Our Company continues to benefit from tight cost controls and our ability to manage our fleet size to market demand achieving high utilization. As a result, we were able to maximize pricing opportunities and deliver impressive results for our stockholders. Our healthy balance sheet and strong liquidity position provide us with the financial strength to manage through uncertain times as well as invest in our Company's future."
Dollar Rent A Car Systems, Inc.-For the 2002 third quarter, Dollar Rent A Car Systems, Inc. earned revenue of $236.6 million, a 2.0 percent increase over the third quarter of 2001. Vehicle rental revenue increased 4.2 percent over the third quarter of last year as a result of a 7.0 percent increase in revenue per day, partially offset by a slight decline in rental days of 2.6 percent. Dollar reduced its fleet size by 4.8 percent from last year's third quarter allowing for high fleet utilization and increased pricing opportunities. During the third quarter, 46 percent of Dollar's reservations came through the Internet with approximately 19 percent booked through dollar.com. Consistent with its expanded growth strategy, Dollar began operations at Norfolk International Airport during July.
Thrifty, Inc.-For the third quarter of 2002, Thrifty, Inc. reported record revenue of $101.5 million, an impressive 32.9 percent increase over the 2001 third quarter. The corporate operation of several key markets that were previously franchised, combined with an increase in rental rates, enabled Thrifty to achieve a 73.8 percent increase in vehicle rental revenue. Vehicle leasing revenue grew 16.1 percent as a result of increased vehicle orders from franchisees. Thrifty's increase in Internet bookings continued during the third quarter with 50 percent of total reservations being made through the Internet, including 23 percent on thrifty.com.
Outlook-"We are pleased with our Company's strong performance, particularly given the difficult operating conditions for travel-related companies," Cappy said. "However, the rental car industry continues to benefit from a rational pricing environment. Going forward, there are still significant uncertainties regarding the condition of the economy and airline travel patterns. Depending on the travel environment and industry factors, our guidance for the fourth quarter is in the range of a break-even to a $.10 loss per share, based on Dollar's fourth quarter revenue per day increasing 7 percent to 8 percent and rental days increasing 9 percent to 10 percent over very weak conditions in last year's fourth quarter. This would result in 2002 earnings per share in the range of $1.95 to $2.05. Our prior guidance for the year was a range of $1.90 to $2.10."
Conference Call-The Dollar Thrifty Automotive Group, Inc. third quarter 2002 earnings conference call will be held on Wednesday, October 23, 2002, at 10:00 a.m. (central time). Those interested in listening to the conference call live may access the call via Web cast at the corporate Web site, dtag.com, or by dialing 877-891-6973 (domestic) or 630-395-0074 (international). An audio replay of the conference call will be available by calling 800-873-2148 (domestic) or 402-220-4760 (international). The pass code for the call is "Dollar Thrifty." The replay of the call, as well as an archive of the call on the Company's Web site, will be available through November 6.
About Dollar Rent A Car
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; airline travel patterns; 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.