8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

July 25, 2006

Date of Report (Date of earliest event reported)

DOLLAR THRIFTY AUTOMOTIVE GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction
of incorporation) 1-13647
(Commission
File Number) 73-1356520
(I.R.S. Employer
Identification No.)

5330 East 31st Street, Tulsa, Oklahoma 74135

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (918) 660-7700

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
	(17 CFR 240.14d-2(b))

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
	CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 25, 2006, Dollar Thrifty Automotive Group, Inc., a Delaware corporation (the “Company”), issued the news release attached hereto as Exhibit 99.30 reporting financial results of the Company for the quarter ended June 30, 2006.

All of the information furnished in Item 2.02 of this report and the accompanying exhibit shall not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended.

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ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits

Exhibit No. Description

99.30 News release reporting Second Quarter Financial Results for 2006, issued by Dollar Thrifty Automotive Group, Inc. on July 25, 2006

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

DOLLAR THRIFTY AUTOMOTIVE GROUP, INC.
	(Registrant)

July 25, 2006	By:	/s/ STEVEN B. HILDEBRAND
		Steven B. Hildebrand
		Senior Executive Vice President, Chief Financial
		Officer, Principal Financial Officer and Principal
		Accounting Officer

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INDEX TO EXHIBITS

Exhibit No. Description

99.30 News release reporting Second Quarter Financial Results for 2006, issued by Dollar Thrifty Automotive Group, Inc. on July 25, 2006

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EX-99

Exhibit 99.30

Press Release

Contacts:

Media:	Terri Snow				Financial:	Steve Hildebrand
		Executive Director -					Chief Financial Officer
			Corporate Communications				(918) 669-2288
			(918) 669-2743
				tsnow@dtag.com

FOR IMMEDIATE RELEASE

DOLLAR THRIFTY AUTOMOTIVE GROUP REPORTS SECOND QUARTER RESULTS

Earnings Per Share Jump 84 Percent

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.

Outlook

“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.

Table 1

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
			2006			2005			2006			2005
Revenues:
	Vehicle rentals			$	393,711		$	335,562		92.5	%		91.3	%
	Vehicle leasing				15,549			15,311		3.7	%		4.2	%
	Fees and services				12,187			12,454		2.9	%		3.4	%
	Other				4,354			4,349		0.9	%		1.1	%
		Total revenues			425,801			367,676		100.0	%		100.0	%
Costs and Expenses:
	Direct vehicle and operating				220,236			209,934		51.7	%		57.1	%
	Vehicle depreciation and lease charges, net				80,375			54,236		18.9	%		14.8	%
	Selling, general and administrative				66,919			60,129		15.7	%		16.3	%
	Interest expense, net				23,772			23,518		5.6	%		6.4	%
		Total costs and expenses			391,302			347,817		91.9	%		94.6	%
Income before income taxes					34,499			19,859		8.1	%		5.4	%
Income tax expense					14,171			8,513		3.3	%		2.3	%
Net income				$	20,328		$	11,346		4.8	%		3.1	%
Earnings per share:
	Basic			$	0.83		$	0.45
	Diluted			$	0.79		$	0.43
Weighted average number
of shares outstanding:
	Basic				24,431,884			25,061,135
	Diluted				25,615,171			26,452,991

Table 1 (Continued)

Dollar Thrifty Automotive Group, Inc.
Consolidated Statement of Income
(In thousands, except share and per share data)
Unaudited

			Six months ended						As % of
			June 30,						Total revenues
			2006			2005			2006			2005
Revenues:
	Vehicle rentals			$	726,435		$	648,515		92.1	%		91.3	%
	Vehicle leasing				28,006			29,837		3.6	%		4.2	%
	Fees and services				24,721			24,730		3.1	%		3.5	%
	Other				9,230			7,394		1.2	%		1.0	%
		Total revenues			788,392			710,476		100.0	%		100.0	%
Costs and Expenses:
	Direct vehicle and operating				414,948			400,611		52.6	%		56.4	%
	Vehicle depreciation and lease charges, net				138,801			107,823		17.6	%		15.2	%
	Selling, general and administrative				128,917			114,984		16.4	%		16.2	%
	Interest expense, net				39,877			43,012		5.0	%		6.0	%
		Total costs and expenses			722,543			666,430		91.6	%		93.8	%
Income before income taxes					65,849			44,046		8.4	%		6.2	%
Income tax expense					28,595			19,725		3.7	%		2.8	%
Net income				$	37,254		$	24,321		4.7	%		3.4	%
Earnings per share:
	Basic			$	1.51		$	0.97
	Diluted			$	1.44		$	0.92
Weighted average number
of shares outstanding:
	Basic				24,747,536			25,055,929
	Diluted				25,867,802			26,379,235

Table 2

Dollar Thrifty Automotive Group, Inc.
Selected Operating and Financial Data

	Three months ended			Six months ended
	June 30, 2006			June 30, 2006
OPERATING DATA:
Vehicle Rental Data: (includes new stores)
Average number of vehicles operated		126,793			116,308
% change from prior year		10.3%			7.2%
Number of rental days		9,647,805			17,745,966
% change from prior year		9.9%			7.5%
Vehicle utilization		83.6%			84.3%
Percentage points change from prior year		(0.3) p.p.			0.2 p.p.
Average revenue per day		$40.81			$40.94
% change from prior year		6.7%			4.3%
Monthly average revenue per vehicle		$1,035			$1,041
% change from prior year		6.4%			4.5%
Same Store Vehicle Rental Data: (excludes new stores)
Average number of vehicles operated		123,329			113,402
% change from prior year		7.3%			4.5%
Number of rental days		9,383,147			17,315,158
% change from prior year		6.9%			4.8%
Vehicle Leasing Data:
Average number of vehicles leased		11,212			10,126
% change from prior year		(8.8%	)		(15.1%	)
Monthly average revenue per vehicle		$462			$461
% change from prior year		11.3%			10.6%
FINANCIAL DATA: (in millions) (unaudited)
Non-vehicle depreciation and amortization	$	6		$	13
Non-vehicle capital expenditures (excludes acquisitions)		6			17
Franchise acquisitions		9			11
Cash paid for income taxes		3			13

Selected Balance Sheet Data
(In millions)

	June 30,						December 31,
	2006			2005			2005
	(Unaudited)
Cash and cash equivalents		$	242		$	185		$	274
Restricted cash and investments			108			102			785
Revenue-earning vehicles, net			3,349			3,052			2,215
Total debt (all vehicle debt)			3,109			2,857			2,725
Stockholders' equity			693			637			685