Dollar Thrifty Automotive Group, Inc. (NYSE: DTG – news), has reported record results for the third quarter ended September 30, 2000. Total revenue for the 2000 third quarter was $322.9 million, a 7.9 percent increase over the 1999 third quarter. Net income for the quarter increased 19 percent to $36 million, or $1.46 per diluted share, including a favorable adjustment to insurance reserves. The positive adjustment of $.12 per share was a result of the favorable settlement of claims. Prior to the insurance adjustment, earnings per share were $1.34 which exceeds the First Call consensus estimate by $.01. The 2000 third quarter results are based on 24,618,308 weighted average outstanding shares. For the comparable 1999 quarter, net income was $30.2 million, or $1.23 diluted earnings per share based on 24,549,887 weighted average outstanding shares.
For the first nine months of 2000, total revenue was $844.1 million, a 9.6 percent increase over the $770.3 million for the first nine months of 1999. Net income for the nine-month period increased 37 percent to $72 million, compared to $52.6 million for the first nine months of 1999. Year to date diluted earnings per share were $2.93 in 2000 and $2.15 in 1999, based on 24,573,437 and 24,475,186 weighted average outstanding shares, respectively.
Dollar Thrifty Automotive Group, Inc. owns Dollar Rent A Car Systems, Inc. and Thrifty, Inc. For the 2000 third quarter, Dollar achieved record revenue of $245.6 million, an increase of 10.7 percent over the third quarter of 1999. Contributing to Dollar’s record quarter was an 11.8 percent increase in vehicle rental revenue, which reached $230.3 million. During the third quarter, Dollar acquired the Atlanta and Memphis operations and now operates corporately in 42 of the top 50 U.S. airports. Dollar continues to increase its commanding presence on the Internet. During the third quarter, over 30 percent of total reservations were booked on dollar.com and other Internet travel sites. Reservations on Dollar’s award-winning website, dollar.com, increased 130 percent over the 1999 third quarter.
For the third quarter, Thrifty, Inc. achieved revenue of $77.1 million, compared to $77.3 million in the 1999 third quarter. Thrifty’s vehicle leasing revenue decreased 6.9 percent as a result of modifying the vehicle lease program to eliminate certain incentives with a corresponding decrease in lease rates, and shifting vehicles to direct financing leases. On a normalized basis, leasing revenue increased 1.1 percent over the comparable 1999 quarter. Thrifty continued its focus to locate in-terminal and currently has 87 in-terminal locations representing over half of the U.S. airports serviced by Thrifty. Thrifty Car Sales, a franchised retail used car sales network, has 27 stores in operation with an additional 19 that have signed and are in various stages of opening. Thrifty expects to have approximately 60 dealers by year-end.
Joseph E. Cappy, Chairman, CEO and President, said, “We are very pleased to report another quarter of outstanding results including earnings per share of $1.34, prior to the favorable insurance adjustment, which exceeds the $1.33 First Call consensus estimate. Our forward strategy is to continue our niche focus on the value-conscious consumer and take advantage of opportunities to build stockholder value.”
For the 2000 fourth quarter, the Company expects Dollar’s year-over-year rental day growth to be in the nine to 10 percent range and revenue per day to be down two to three percent. Thrifty’s vehicle leasing revenue is expected to be equal with last year’s fourth quarter. Based on these expected fourth quarter market conditions and higher vehicle costs, the Company anticipates earnings per share to be in the range of $.18 to $.22.
The Dollar and Thrifty systems have worldwide locations in approximately 75 countries including over 900 corporate and franchised locations in the United States and Canada. The companies provide car rental services primarily to value-conscious discretionary and leisure travelers. Dollar has on-airport locations at major airports throughout the United States with a focus on serving the leisure and inbound international tour business. Thrifty serves both the airport and local car rental markets, is a leading lessor of rental vehicles to car rental franchisees and operates a franchised retail used car sales network.
The Dollar Thrifty Automotive Group, Inc. website is www.dtag.com.