Dollar Thrifty Automotive Group Reports Second Quarter Results
Earnings Per Share Jump 84 Percent
Executive Director - Corporate Communications
Tulsa, Oklahoma, July 25, 2006: Dollar Thrifty Automotive Group, Inc. (NYSE:DTG), today reported results for the second quarter ended June 30, 2006. Total revenue for the 2006 second quarter was $426 million, a 15.8 percent increase over the 2005 second quarter. Net income for the quarter was $20.3 million, or $.79 per diluted share. For the comparable 2005 quarter, net income was $11.3 million, or $.43 per diluted share.
For the first six months of 2006, total revenue was $788 million, an 11.0 percent increase over the first half of 2005. Net income for the six-month period was $37.3 million, or $1.44 per diluted share. For the first six months of 2005, net income was $24.3 million or $.92 per diluted share.
For the 2006 second quarter, DTG achieved vehicle rental revenue of $393.7 million, a 17.3 percent increase over the 2005 second quarter as a result of a 9.9 percent increase in rental days and a 6.7 percent increase in revenue per day. Same store rental days were up 6.9 percent for the quarter.
“We are exceptionally pleased with our results for the second quarter,” Gary L. Paxton, President and Chief Executive Officer, said. “We achieved very strong revenue growth, operated at high levels of vehicle utilization, made good progress on our franchise acquisition program and significantly increased the bottom line. We are particularly pleased with the strong increase in revenue per day, the highest year over year increase we have achieved since 2002, which was sufficient to offset significantly higher vehicle costs.
“Our strong rental day growth benefited from the shift of Easter from March last year to April this year and also reflects the recovery of volume from our repositioning on Expedia in May 2005 which negatively impacted last year’s second quarter. Our growth was further boosted by our franchise acquisition program.
“During the quarter, we acquired the Thrifty Car Rental franchises in Cincinnati; Milwaukee and Madison, Wisconsin; Providence, Rhode Island; and Little Rock, Arkansas; and the Dollar Rent A Car franchises in Minneapolis-St. Paul and Madison. Earlier this month, we completed the acquisition of the Thrifty Car Rental franchise in Pensacola, Florida. Our franchise acquisition strategy has been very successful and we will continue to acquire locations as they become available at values that meet our return on investment goals.”
During the second quarter, DTG purchased 589,000 shares under its $300 million share repurchase program at a total cost of $27.6 million and has $247 million of remaining authorization to be completed by December 31, 2008.
“Regarding the outlook for the remainder of the year, we expect the travel environment to remain healthy,” Paxton said. “We also expect significantly higher vehicle costs as we operate the higher cost 2006 model vehicles and begin to incur additional cost increases for the 2007 model vehicles in the fourth quarter. We expect another year of significant cost increases for the 2007 model year as the automobile manufacturers constrain vehicle sales to the car rental industry. While year over year pricing trends remain positive, price increases will likely not be sufficient to offset the higher vehicle costs for the second half of this year. For the full year 2006, we are increasing our earnings per share guidance to a range of $2.25 to $2.55 from our previous range of $2.15 to $2.45. Our guidance is based on achieving a 3 percent to 4 percent year over year increase in both revenue per day and same store rental days for the second half of the year.”
Web cast and conference call information
The Dollar Thrifty Automotive Group, Inc. second quarter 2006 earnings release conference call will be held on Tuesday, July 25, 2006, 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 888-809-8966 (domestic) or 210-234-0012 (international), using the pass code “Dollar Thrifty.” An audio replay of the conference call will be available through August 8, 2006, by calling 800-925-4993 (domestic) or 402-220-4329 (international). The replay will also be available via the corporate Web site for one year.
About Dollar Thrifty Automotive Group, Inc.
Dollar Thrifty Automotive Group, Inc. is a Fortune 1000 Company headquartered in Tulsa, Oklahoma. Driven by the mission “Value Every Time,” the Company's brands, Dollar Rent A Car and Thrifty Car Rental, serve value-conscious travelers in approximately 70 countries. Dollar and Thrifty have over 800 corporate and franchised locations in the United States and Canada including operations at most major airports. The Company's more than 8,500 employees are located mainly in North America, but global service capabilities exist through an expanding international franchise network. For additional information, visit dtag.com.
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; access to reservation distribution channels; economic and competitive conditions in markets and countries where the companies' customers reside and where the companies and their franchisees operate; natural hazards or catastrophes; incidents of terrorism; airline travel patterns; changes in capital availability or cost; costs and other terms related to the acquisition and disposition of automobiles; systems or communications failures; costs of conducting business and changes in structure or operations; and certain regulatory and environmental matters and litigation risks. 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.