TULSA, Okla. /PRNewswire via COMTEX/ -- Dollar Thrifty Automotive Group, Inc. (NYSE: DTG) today provided an update on preliminary estimates for second quarter results and its outlook for the full year of 2010. The Company announced that it expects second quarter Corporate Adjusted EBITDA to be within a range of $70 million to $75 million, up significantly from $20.9 million in the comparable quarter of 2009. The Company further noted that it recorded approximately $5 million of expenses related to the proposed Hertz transaction during the quarter. Excluding these transaction costs, Corporate Adjusted EBITDA for the second quarter is projected to be within a range of $75 million to $80 million.
The Company noted that it is lowering its guidance for vehicle rental revenue for the full year of 2010 to an increase of 1 to 2 percent compared to 2009, down from its prior guidance of 2 to 4 percent. In addition, the Company lowered its expected fleet cost target from $275 per unit per month to a range of $245 to $255 per month.
Based on the Company's estimated results through the second quarter and its outlook for revenue and fleet costs for the remainder of 2010, the Company expects Corporate Adjusted EBITDA, excluding expenses related to the Hertz transaction, to be within a range of $200 million to $220 million for the full year of 2010. The Company's previous guidance range for 2010 was $170 - $190 million, and the Company's 2009 Corporate Adjusted EBITDA was $99.4 million.
The Company also provided an updated outlook for fleet cost per unit per month for 2011, lowering its outlook for fleet cost to a range of $300 to $310 per month, compared to its previous guidance of $325 per month. The Company noted that the ongoing positive effects of changes made in its operations and fleet management, combined with solid macroeconomic factors in the used car market, are expected to impact fleet costs in 2011 and beyond.
The above data relating to the second quarter results are preliminary estimates based on information available at this time, and will be updated in conjunction with the Company's second quarter earnings release.
Through its Dollar Rent A Car and Thrifty Car Rental brands, Dollar Thrifty has been serving value-conscious leisure and business travelers since 1950. Dollar Thrifty maintains a strong presence in domestic leisure travel in virtually all of the top U.S. and Canadian airport markets, and also derives a significant portion of its revenue from international travelers to the U.S. under contracts with various international tour operators. Dollar and Thrifty have approximately 300 corporate locations in the United States and Canada, with approximately 6,000 employees located mainly in North America. In addition to its corporate operations, the Company maintains global service capabilities through an expansive franchise network of over 1,250 franchises in 81 countries.
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:
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.
This document does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. Hertz has filed with the SEC a preliminary registration statement on Form S-4 (registration statement number 333-167085) that includes a preliminary proxy statement of DTG that also constitutes a preliminary prospectus of Hertz. Hertz and DTG also plan to file other documents with the SEC regarding the proposed transaction. After the registration statement has been declared effective by the SEC, a definitive proxy statement/prospectus will be mailed to stockholders of DTG. INVESTORS AND STOCKHOLDERS OF DTG ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and stockholders will be able to obtain free copies of the proxy statement/prospectus and other documents containing important information about Hertz and DTG, once such documents are filed with the SEC, through the website maintained by the SEC at www.sec.gov. Copies of the documents filed with the SEC by Hertz will be available free of charge on Hertz's internet website at hertz.com or by contacting Hertz's Investor Relations Department at 201-307-2100. Copies of the documents filed with the SEC by DTG will be available free of charge on DTG's internet website at www.dtag.com or by contacting DTG's Investor Relations Department at 918-669-2119. Hertz, DTG, their respective directors and certain of their executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of DTG in connection with the proposed transaction. Information about the directors and executive officers of Hertz is set forth in its proxy statement for its 2010 annual meeting of stockholders, which was filed with the SEC on April 9, 2010. Information about the directors and executive officers of DTG is set forth in its proxy statement for its 2010 annual meeting of stockholders, which was filed with the SEC on April 27, 2010. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the preliminary proxy statement/prospectus and will be contained in other relevant materials to be filed with the SEC when they become available.
Dollar Thrifty Automotive Group, Inc.
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 as recapped
below. The Company believes Corporate Adjusted EBITDA is
important as it provides investors with a supplemental measure
of the Company's liquidity by adjusting results to exclude
certain non-cash items. The items excluded from Corporate
Adjusted EBITDA but included in the calculation of the
Company's reported results are significant components of its
consolidated statement of operations, and must be considered in
performing a comprehensive assessment of overall financial
performance. Corporate Adjusted 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.
Reconciliation of Pretax Income to
Corporate Adjusted EBITDA
Pretax income - preliminary estimate $67-$72
(Increase) decrease in fair value of derivatives (8)
Non-vehicle interest expense 2
Non-vehicle depreciation 5
Non-cash stock incentives 2
Long-lived asset impairment -
Corporate Adjusted EBITDA $70-$75
SOURCE: Dollar Thrifty Automotive Group, Inc.