TULSA, Okla., Aug. 4 /PRNewswire-FirstCall/ -- Dollar Thrifty
Automotive Group, Inc. (NYSE:DTG) 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. (Logo:
http://www.newscom.com/cgi-bin/prnh/20020412/DTGLOGO) 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. Six Month Results
For the six months ended June 30, 2009, net income was $3.5
million, or $0.15 per diluted share, compared to a net loss of
$287.2 million, or $13.49 loss per diluted share for the comparable
period in 2008. The net income for the six months ended June 30,
2009 included income of $0.38 per diluted share related to an
increase in fair value of derivatives, compared to a loss of $0.04
per diluted share for the six months ended June 30, 2008 related to
a decrease in fair value of derivatives. In addition, the net loss
for the six months ended June 30, 2008 included non-cash charges of
$12.45 per diluted share related to the impairment of goodwill and
long-lived assets. The non-GAAP loss per diluted share for the six
months ended June 30, 2009 was $0.23, compared to a non-GAAP loss
per diluted share of $1.00 for the same period in 2008. Non-GAAP
net loss excludes the (increase) decrease in fair value of
derivatives and the non-cash charges related to the impairment of
goodwill and long-lived assets, net of related tax impact. A
reconciliation of non-GAAP to GAAP results is included in Table 3.
Liquidity and Capital Resources As of June 30, 2009, the Company
had $263 million in cash and cash equivalents, including $100
million that represents a required minimum balance to be maintained
as part of an amendment to the Company's Senior Secured Credit
Facilities. As of June 30, 2009, the Company also had $545 million
in restricted cash and investments primarily available for the
purchase of vehicles and/or repayment of vehicle financing
obligations. The Company is in full compliance with all of the
financial covenants under its various financing arrangements with
lenders. Outlook The Company expects the overall environment in the
rental car industry to remain challenging in the second half of
2009, as economic conditions negatively impact consumer confidence
and travel demand. Based on the Company's expected fleet size and
projected industry-wide rental day demand, the Company narrowed its
prior revenue guidance. The Company now expects rental revenues to
decline 8 to 10 percent for the full year of 2009 compared to 2008.
Falling rental days are expected to be somewhat mitigated by an
increase in rate per day. For the remainder of 2009, management
expects the used vehicle market to show year-over-year improvement.
"As we have previously stated, our focus for 2009 is on maximizing
revenue per day, reducing expenses, de-leveraging our balance sheet
and diversifying our fleet investment, all in order to properly
position the Company for an expected economic recovery in 2010.
This quarter represents another step forward towards our recovery
and demonstrates the earnings potential of our new strategy," said
Thompson. Web cast and conference call information The Dollar
Thrifty Automotive Group, Inc. second quarter 2009 earnings
conference call will be held on Wednesday, August 5, 2009, at 9:00
a.m. (CDT). Those interested in listening to the conference call
live may access the call via Web cast at the corporate Web site,
http://www.dtag.com/, or by dialing 888-946-7608 (domestic) or
630-395-0278 (international) using the pass code "Dollar Thrifty."
An audio replay of the conference call will be available through
August 19, 2009, by calling 800-944-3317 (domestic) or 402-220-3690
(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 over 70
countries. Dollar and Thrifty have over 700 corporate and
franchised locations in the United States and Canada, operating in
virtually all of the top U.S. and Canadian airport markets. The
Company's approximately 6,800 employees are located mainly in North
America, but global service capabilities exist through an expanding
international franchise network. For additional information, visit
http://www.dtag.com/ or the brand sites at http://www.dollar.com/
and http://www.thrifty.com/. This press release contains
"forward-looking statements" about our expectations, plans and
performance. These statements use such words as "may," "will,"
"expect," "believe," "intend," "should," "could," "anticipate,"
"estimate," "forecast," "project," "plan" and similar expressions.
These statements do not guarantee future performance and Dollar
Thrifty Automotive Group, Inc. assumes no obligation to update
them. Forward-looking statements should be considered in light of
information in this press release and other filings with the
Securities and Exchange Commission (the "SEC"). Risks and
uncertainties that could materially affect future results include:
-- the impact of persistent pricing and demand pressures,
particularly in light of the continuing volatility in the global
financial markets, constrained credit markets and concerns about
global economic prospects, which have continued to depress consumer
confidence and spending levels and could affect the ability of our
customers to meet their payment obligations to us; -- whether
efforts to stabilize and revitalize the U.S. automotive industry
are successful and the impact of further federal initiatives to
support the U.S. automotive industry, including the potential
adverse impact on residual values of vehicles in our fleet of the
recently enacted program to promote the replacement of high fuel
consumption vehicles with more fuel efficient vehicles; -- the
impact of pricing and other actions by competitors, particularly if
demand deteriorates further; -- airline travel patterns, including
further disruptions or reductions in air travel resulting from
airline bankruptcies, industry consolidation, capacity reductions
and pricing actions; -- the cost and other terms of acquiring and
disposing of automobiles, and whether improved conditions in the
used car market will be sustained; -- our ability to defer gain on
the disposition of our vehicles under our like-kind exchange
program, which will be affected by the recent significant
downsizing of our fleet, and the level of increased cash payments
for federal and state income taxes we may be required to make if we
are unable to defer such gain; -- our ability to manage our fleet
mix to match demand and reduce vehicle depreciation costs,
particularly as we increase the level of Non-Program Vehicles
(those without a guaranteed residual value) and our exposure to the
used car market; -- the impact of our strategy to increase holding
periods for vehicles in our fleet, including potential adverse
customer perceptions of the quality of our fleet and increased
servicing costs; -- volatility in gasoline prices; -- our ability
to obtain cost-effective financing as needed without unduly
restricting operational flexibility, particularly if global
economic conditions deteriorate further; -- our ability to comply
with financial covenants or to obtain necessary amendments or
waivers, and the impact of the terms of those amendments, such as
potential reductions in lender commitments; -- our ability to
manage the consequences under our financing agreements of an event
of bankruptcy with respect to any of the monoline insurers that
provide credit support for $1.5 billion of debt under our asset
backed financing structures; -- whether counterparties under our
derivative instruments will continue to perform as required; --
whether ongoing governmental and regulatory initiatives in the
United States and elsewhere to stabilize the financial markets will
be successful; -- the effectiveness of other actions we take to
manage costs and liquidity and whether further reductions in the
scope of our operations will be necessary; -- disruptions in
information and communication systems we rely on, including those
relating to methods of payment; -- access to reservation
distribution channels; -- the cost of regulatory compliance and the
outcome of pending litigation; -- local market conditions where we
and our franchisees do business, including whether franchisees will
continue to have access to capital as needed; and -- the impact of
natural catastrophes and terrorism. This release includes certain
non-GAAP financial measures as defined under SEC rules. As required
by SEC rules, important information regarding such measures is
contained on Tables 3 and 4 to this release. Table 1 Dollar Thrifty
Automotive Group, Inc. Consolidated Statement of Operations
------------------------------------ (In thousands, except share
and per share data) Unaudited Three months ended As % of June 30,
Total revenues 2009 2008 2009 2008 ---- ---- ---- ---- Revenues:
Vehicle rentals $379,194 $424,366 94.9% 95.2% Other 20,419 21,364
5.1% 4.8% ------- ------- ----- ----- Total revenues 399,613
445,730 100.0% 100.0% ------- ------- ----- ----- Costs and
Expenses: Direct vehicle and operating 191,674 224,234 48.0% 50.3%
Vehicle depreciation and lease charges, net 122,254 146,567 30.6%
32.9% Selling, general and administrative 52,118 55,011 13.0% 12.3%
Interest expense, net 22,922 29,721 5.7% 6.7% ------- ------- -----
----- Total costs and expenses 388,968 455,533 97.3% 102.2% -------
------- ---- ----- (Increase) decrease in fair value of derivatives
(9,409) (26,793) (2.3%) (6.0%) ------- ------- ----- ----- Income
before income taxes 20,054 16,990 5.0% 3.8% Income tax expense
7,650 6,225 1.9% 1.4% ------- ------- ----- ----- Net income
$12,404 $10,765 3.1% 2.4% ======= ======= ===== ===== Earnings per
share: Basic $0.58 $0.50 Diluted $0.55 $0.49 Weighted average
number of shares outstanding: Basic 21,561,578 21,412,826 Diluted
22,719,628 21,851,652 Six months ended As % of June 30, Total
revenues 2009 2008 2009 2008 ---- ---- ---- ---- Revenues: Vehicle
rentals $724,507 $802,337 95.1% 95.3% Other 37,528 39,899 4.9% 4.7%
------- --------- ----- ----- Total revenues 762,035 842,236 100.0%
100.0% ------- --------- ----- ----- Costs and Expenses: Direct
vehicle and operating 376,690 439,597 49.4% 52.2% Vehicle
depreciation and lease charges, net 242,238 269,229 31.8% 32.0%
Selling, general and administrative 99,005 108,683 13.0% 12.9%
Interest expense, net 49,076 51,858 6.5% 6.1% Goodwill and
long-lived asset impairment 261 350,144 0.0% 41.6% -------
--------- ----- ----- Total costs and expenses 767,270 1,219,511
100.7% 144.8% ------- --------- ----- ----- (Increase) decrease in
fair value of derivatives (14,454) 1,354 (1.9%) 0.2% -------
--------- ----- ----- Income (loss) before income taxes 9,219
(378,629) 1.2% (45.0%) Income tax expense (benefit) 5,755 (91,452)
0.7% (10.9%) ------- --------- ----- ----- Net income (loss) $3,464
$(287,177) 0.5% (34.1%) ======= ========= ===== ===== Earnings
(loss) per share: (a) (b) Basic $0.16 $(13.49) Diluted $0.15
$(13.49) Weighted average number of shares outstanding: (a) Basic
21,522,527 21,293,902 Diluted 22,416,229 21,293,902 (a) Because the
Company incurred a loss from continuing operations during the six
months ended June 30, 2008, outstanding stock options, performance
awards and employee and director compensation shares deferred are
anti-dilutive. Accordingly, basic and diluted weighted average
shares outstanding are equal for such period. (b) The underlying
diluted per share information is calculated from the weighted
average common and common stock equivalents outstanding during each
quarter, which may fluctuate based on quarterly income levels and
market prices. Therefore, the sum of the quarters' per share
information may not equal the year-to-date amounts. Table 2 Dollar
Thrifty Automotive Group, Inc. Selected Operating and Financial
Data ------------------------------------- Three months ended Six
months ended June 30, 2009 June 30, 2009 ------------------
---------------- OPERATING DATA: Vehicle Rental Data: Average
number of vehicles operated 109,368 104,648 % change from prior
year (15.2%) (12.9%) Number of rental days 8,019,299 15,401,477 %
change from prior year (20.3%) (16.6%) Vehicle utilization 80.6%
81.3% Percentage points change from prior year (5.1) p.p. (3.2)
p.p. Average revenue per day $47.29 $47.04 % change from prior year
12.1% 8.3% Monthly average revenue per vehicle $1,156 $1,154 %
change from prior year 5.5% 3.7% Average depreciable fleet 111,727
106,857 % change from prior year (15.7%) (12.6%) Monthly average
depreciation (net)per vehicle $365 $378 % change from prior year
(1.1%) 3.0% FINANCIAL DATA: (in millions)(unaudited) Non-vehicle
depreciation and amortization $7 $14 Non-vehicle interest expense 2
7 Non-vehicle interest income - (1) Non-vehicle capital
expenditures 2 4 Cash paid for income taxes 5 10 Selected Balance
Sheet Data --------------------------- (In millions) June 30,
December 31, 2009 2008 2008 ---- ---- ---- (unaudited) Cash and
cash equivalents (c) $263 $80 $230 Restricted cash and investments
545 252 597 Revenue-earning vehicles, net 1,465 2,599 1,946 Vehicle
debt 1,685 2,307 2,310 Non-vehicle debt (corporate debt) 158 188
178 Stockholders' equity 228 293 215 Adjusted Tangible Net Worth
Calculation --------------------------------------- (In millions)
June 30, December 31, 2009 2008 2008 ---- ---- ---- (unaudited)
Stockholders' equity $228 $293 $215 Less: Intangible assets, net
(28) (35) (30) Plus: Accumulated other comprehensive loss 22 2 29
---- ---- ---- Adjusted tangible net worth $222 $260 $214 ==== ====
==== (c) Under the terms of an amendment to the Senior Secured
Credit Facilities, the Company is required to maintain a minimum
cash balance of $100 million at all times, such minimum balance is
included in cash and cash equivalents herein. Table 3 Dollar
Thrifty Automotive Group, Inc. Non-GAAP Measures -----------------
Non-GAAP pretax income (loss), Non-GAAP net income (loss) and
Non-GAAP EPS exclude the impact of the (increase) decrease in fair
value of derivatives and the impact of goodwill and long-lived
asset impairments, net of related tax impact (as applicable), from
the reported GAAP measure. Due to volatility resulting from the
mark-to-market treatment of the derivatives and the nature of the
non-cash impairments, the Company believes non-GAAP measures
provide an important assessment of year over year operating
results. See table below for a reconciliation of non-GAAP to GAAP
results. The following table reconciles reported GAAP pretax income
(loss) per the income statement to non-GAAP pretax income (loss):
Three months ended Six months ended June 30, June 30, 2009 2008
2009 2008 ---- ---- ---- ---- (in thousands) (in thousands) Income
(loss) before income taxes -as reported $20,054 $16,990 $9,219
$(378,629) (Increase) decrease in fair value of derivatives (9,409)
(26,793) (14,454) 1,354 Goodwill and long-lived asset impairment -
- 261 350,144 ------- ------- ------- -------- Pretax income (loss)
- non-GAAP $10,645 $(9,803) $(4,974) $(27,131) ======= =======
======= ======== The following table reconciles reported GAAP net
income (loss) per the income statement to non-GAAP net income
(loss): Three months ended Six months ended June 30, June 30, 2009
2008 2009 2008 ---- ---- ---- ---- (in thousands) (in thousands)
Net income (loss) - as reported $12,404 $10,765 $3,464 $(287,177)
(Increase) decrease in fair value of derivatives, net of tax
(5,533) (15,746) (8,500) 796 Goodwill and long-lived asset
impairment, net of tax - - 114 265,183 ------ ------- -------
-------- Net income (loss) - non-GAAP $6,871 $(4,981) $(4,922)
$(21,198) ====== ======= ======= ======== The following table
reconciles reported GAAP diluted earnings (loss) per share ("EPS")
to non-GAAP diluted EPS: Three months ended Six months ended June
30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- EPS, diluted -
as reported $0.55 $0.49 $0.15 $(13.49) EPS impact of (increase)
decrease in fair value of derivatives, net of tax (0.24) (0.72)
(0.38) 0.04 EPS Impact of goodwill and long- lived asset
impairment, net of tax - - 0.01 12.45 ----- ------ ------ ------
EPS, diluted - non-GAAP (d) $0.30 $(0.23) $(0.23) $(1.00) =====
====== ====== ====== (d) Since each category of earnings per share
is computed independently for each period, total per share amounts
may not equal the sum of the respective categories. Table 4 Dollar
Thrifty Automotive Group, Inc. Non-GAAP Measures -----------------
Corporate Adjusted EBITDA means earnings, excluding the impact of
the (increase) decrease in fair value of derivatives, before
non-vehicle interest expense, income taxes, non-vehicle
depreciation, amortization, and certain other items specified in
the Company's Senior Secured Credit Facilities. The Company
believes Corporate Adjusted EBITDA is important as it is utilized
in the calculation of financial covenants in the Company's credit
agreement and provides investors with a supplemental measure of the
Company's liquidity by adjusting earnings to exclude non- cash
items consistent with the requirements in the Company's financial
covenants. The Company has revised its calculation of Corporate
Adjusted EBITDA for all periods presented to be consistent with the
Company's credit agreement. EBITDA is not defined under GAAP and
should not be considered as an alternative measure of the Company's
net income, operating performance, cash flow or liquidity.
Corporate Adjusted EBITDA amounts presented may not be comparable
to similar measures disclosed by other companies. Three months
ended Six months ended June 30, June 30, 2009 2008 2009 2008 ----
---- ---- ---- (in thousands) (in thousands) Reconciliation of Net
Income (Loss) to Corporate Adjusted EBITDA
----------------------------- Net income (loss) - as reported
$12,404 $10,765 $3,464 $(287,177) (Increase) decrease in fair value
of derivatives (9,409) (26,793) (14,454) 1,354 Non-vehicle interest
expense 2,665 4,177 7,419 8,767 Income tax expense (benefit) 7,650
6,225 5,755 (91,452) Non-vehicle depreciation 4,831 5,717 10,171
10,959 Amortization 2,022 1,517 4,020 3,159 Non-cash stock
incentives 788 973 1,906 1,841 Goodwill and long-lived asset
impairment - - 261 350,144 Other (8) 77 (8) 122 ------- ------
------- ------- Corporate Adjusted EBITDA $20,943 $2,658 $18,534
$(2,283) ======= ====== ======= ======= Reconciliation of Corporate
Adjusted EBITDA to Cash Flows From Operating Activities
------------------------------ Corporate Adjusted EBITDA $20,943
$2,658 $18,534 $(2,283) Vehicle depreciation, net of gains/losses
from disposal 121,997 146,229 241,808 268,510 Non-vehicle interest
expense (2,665) (4,177) (7,419) (8,767) Change in assets and
liabilities, net of acquisitions, and other 12,394 39,317 141,444
82,585 ------ ------ ------- ------ Net cash provided by operating
activities $152,669 $184,027 $394,367 $340,045 ======== ========
======== ======== Memo: Net cash provided by (used in) investing
activities $(73,839) $(138,413) $188,987 $(192,293) Net cash used
in financing activities $(9,323) $(101,647) $(650,482) $(168,454)
http://www.newscom.com/cgi-bin/prnh/20020412/DTGLOGO
http://photoarchive.ap.org/ DATASOURCE: Dollar Thrifty Automotive
Group, Inc. CONTACT: H. Clifford Buster III, Chief Financial
Officer, +1-918-669-3277, or Chris Payne, Senior Manager, Corporate
Communications, +1-918-669-2236, , both of Dollar Thrifty
Automotive Group, Inc. Web Site: http://www.dtag.com/
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