Dollar Thrifty Automotive Group Reports on Difficult Operating Trends
TULSA, Okla., July 1 // PRNewswire-FirstCall // -- Dollar Thrifty Automotive Group, Inc. (NYSE: DTG) today commented on recent operating trends. Our second quarter was below our expectations with challenges primarily in the areas of revenue per day and vehicle depreciation costs. In addition, the balance of the year looks less robust than we had forecasted, given overall economic trends, said Gary L. Paxton, President and Chief Executive Officer.
In light of our actual performance to date and our revised outlook for the balance of the year, the Company does not expect to achieve the previously issued guidance for full year non-GAAP earnings per share of $1.00 to $1.50 and Corporate EBITDA of $97 million to $115 million, said Mr. Paxton.
We believe overall fleet capacity has come down in the industry going into the summer travel season, reacting to the anticipated decline in industry wide demand. We believe this may help support pricing in the third quarter, but it is extremely difficult in the current environment to accurately forecast any more than the shortest term outlook, said Mr. Paxton. Our focus in this tough operating environment is on executing our strategy to achieve improvements in revenue diversification, fleet utilization, productivity and cost control.
Based on our present forecast, we expect to remain profitable on a non-GAAP basis, with a minimum of $50 million in Corporate EBITDA for the year, said Mr. Paxton. Additional details on the financial performance of the Company will be provided when the Company releases financial results for the second quarter on August 5, 2008.
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, operating in virtually all of the top U.S. and Canadian airport markets. The Company's approximately 8,500 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.
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. Risks and uncertainties that could materially affect future results include whether and to what extent pricing and demand trends for the remainder of 2008 will improve, particularly in light of low consumer confidence levels and the impact of gasoline prices, which could have a significant adverse effect on leisure travel in the peak rental season; the impact of pricing and other actions by competitors, particularly if demand softens; airline travel patterns, including disruptions or reductions in air travel resulting from recent airline bankruptcies, industry consolidation, capacity reductions and pricing actions; the cost and other terms of acquiring and disposing of automobiles; the financial performance and prospects of our principal vehicle supplier; 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 exposure to fluctuations in the used car market; our ability to comply with financial covenants and to obtain financing as needed without unduly restricting operational flexibility and our ability to manage the consequences under our financing agreements of a default by any of the Monolines that provide credit support for our asset backed financing structures, particularly given recent events involving the credit markets and the downgrade in the credit ratings of certain of the Monolines; the effectiveness of other actions we take to manage costs and liquidity; disruptions in information and communication systems we rely on; 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; and the impact of natural catastrophes and terrorism. Forward-looking statements should be considered in light of information in this press release and other filings with the Securities and Exchange Commission (SEC).
SOURCE: Dollar Thrifty Automotive Group, Inc.