Dollar Thrifty Automotive Group Provides Third Quarter Update
TULSA, Okla. // PRNewswire-FirstCall // -- Dollar Thrifty Automotive Group, Inc. (NYSE: DTG) today announced that based on preliminary results, it expects vehicle rental revenues for the third quarter of 2009 to decrease approximately 12% compared to the third quarter of 2008, as an approximate 12% improvement in pricing on a year-over-year basis did not fully mitigate an approximate 21% decline in transaction days. Location closures represented approximately 4% of the decline in transaction days, while the remaining decline resulted from lower demand for our services at our current price point and a planned reduction in our fleet capacity as part of our focus on return on assets.
"Optimizing the mix between pricing and volume is a primary focus area for the Company in 2009. I am pleased to report for the second consecutive quarter that the Company achieved a double-digit increase in rate per day compared to the prior year period, and also achieved its revenue targets for the quarter. One other highlight was that for the month of September, rental revenues were down only 3% compared to September 2008, indicating we may have seen the worst of the rental revenue declines for this business cycle," said Scott L. Thompson, Chief Executive Officer and President.
The above data relating to the third quarter results are preliminary estimates based on information available at this time, and will be updated in conjunction with the Company's third quarter earnings release.
About Dollar Thrifty Automotive Group, Inc.
Dollar Thrifty Automotive Group, Inc. is 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 600 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 6,400 employees are located mainly in North America, but global service capabilities exist through an expanding international franchise network.
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:
- 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 revitalize the U.S. automotive industry are successful;
- the impact of pricing and other actions by competitors;
- airline travel patterns, including 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 the impact of conditions in the used car market on our ability to reduce our fleet capacity as and when projected by our plans;
- the potential for significant cash tax payments in 2010 as a result of the reduction in our fleet size and the resulting impact of our inability to defer gains on the disposition of our vehicles under our like-kind exchange program;
- =our ability to manage our fleet mix to match demand and reduce vehicle depreciation costs, particularly in light of the significant increase in the level of Non-Program Vehicles (those without a guaranteed residual value) in our fleet 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 any required amendments or waivers, 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 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 stimulate economic growth 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.
Forward-looking statements should be considered in light of information in this press release and other filings we make with the Securities and Exchange Commission.
SOURCE: Dollar Thrifty Automotive Group, Inc.