Dollar Thrifty Automotive Group Reports Second Quarter Results

Date AddedAugust 26, 2009 01:59:39 AM

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TULSA, Okla., Aug 04, 2009 /PRNewswire-FirstCall via COMTEX/ ----Dollar Thrifty Automotive Group, Inc. (NYSE: DTG: 22.88, 0.48, 2.14%) today reported results for the second quarter ended June 30, 2009. Net income for the 2009 second quarter was $12.4 million, or $0.55 per diluted share, compared to net income of $10.8 million, or $0.49 per diluted share, for the comparable 2008 quarter. The net income for the second quarter of 2009 included income of $0.24 per diluted share, compared to income of $0.72 per diluted share in last year's second quarter, both of which related to increases in fair value of derivatives.

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Non-GAAP net income for the 2009 second quarter was $6.9 million, or $0.30 per diluted share, compared to a non-GAAP net loss of $5.0 million, or $0.23 loss per diluted share for the 2008 second quarter. Non-GAAP net income (loss) excludes the (increase) decrease in fair value of derivatives, net of related tax impact. A reconciliation of non-GAAP to GAAP results is included in Table 3.

"We were pleased with this quarter's operating results, particularly in light of the contracting economy and the bankruptcy of Chrysler, one of our major suppliers," said Scott L. Thompson, Chief Executive Officer and President. "Over the past two quarters, we have taken a number of steps to enhance our operating performance and cash flow, and those actions, combined with improved used vehicle residual values and firmer rental pricing, drove our improved second quarter performance."

For the quarter ended June 30, 2009, the Company's total revenue was $399.6 million, as compared to $445.7 million for the comparable 2008 period. The decline in revenue was primarily driven by a 20.3 percent decrease in rental days, partially offset by a 12.1 percent improvement in revenue per day. The second quarter average fleet was down approximately 15 percent compared to last year's second quarter.

"Revenue for the quarter was in line with our previously announced expectations and these results are consistent with our focus on maximizing return on assets, rather than on the revenue growth strategy employed in 2008," said Thompson. "As we have previously stated, our focus for 2009 and beyond is on improving the quality of our revenue by concentrating on enhancing rate per day and, at times, sacrificing transaction days as necessary to achieve the optimal revenue mix."

Per vehicle depreciation cost of $365 per month in the second quarter of 2009 was approximately 1.1 percent lower than the comparable quarter of 2008. On a sequential basis, per vehicle depreciation cost per month declined approximately 6.9 percent, primarily due to a lower proportion of program vehicles, escalating vehicle residual values and improved fleet management. Vehicle utilization, a measure of fleet efficiency, was 80.6 percent, down 5.1 percentage points from last year's second quarter as normal vehicle dispositions were disrupted by the Chrysler bankruptcy and management focused on enhancing the quality of revenues. Direct vehicle operating expenses and selling, general and administrative expenses were lower in the second quarter of 2009 compared to the same quarter in 2008 as a result of transaction declines and cost reduction initiatives. Interest expense for the second quarter declined due to significant debt reductions year over year.

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