EX-99 2 exhibit9930.htm

 

 

 


 



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