Dollar Thrifty Automotive Group Provides Update on Closure of Non-Strategic Locations
TULSA, Okla., Sept 15, 2009 /PRNewswire-FirstCall via COMTEX/ -- Dollar Thrifty Automotive Group, Inc. (NYSE: DTG) today provided an update on its previously announced location closure plans. As previously announced, as part of the Company's strategy of maximizing return on assets, certain corporate-owned stores that did not meet minimum return on asset and profitability hurdles were targeted for closure. Since October 1, 2008, approximately 115 corporate-owned locations of the Dollar Rent A Car and Thrifty Car Rental brands have been closed in the U.S. and Canada. In addition, there are approximately 10 additional locations to be closed during the remainder of 2009 as the underlying leases at those locations expire. The locations closed to date represented approximately four percent of 2008 rental revenue, and operated an average fleet of about 5,500 vehicles. The Company noted that it did not incur any significant restructuring charges in conjunction with these closures, and does not expect any related restructuring charges in future periods.
"We have worked aggressively to eliminate underperforming and non-profitable locations from our overall portfolio, and I am glad to report based on current economic conditions that we do not anticipate any significant additional closures in future periods," said Scott L. Thompson, President and CEO of Dollar Thrifty Automotive Group, Inc. "Going forward, in the normal course of business, we will closely monitor our operating locations to ensure that they meet our performance objectives, and will cease operations at locations when they do not meet those objectives, or are no longer core to our strategy."
In conjunction with its portfolio rationalization, the Company re-franchised a number of the corporate-owned locations included as part of its location closure efforts. Since Oct. 2008, Dollar Thrifty has re-franchised 11 locations in the U.S.
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.
SOURCE: Dollar Thrifty Automotive Group, Inc.