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.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020412/DTGLOGO)
"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.
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Related links:
http://www.dtag.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20020412/DTGLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Financial, Scott L. Thompson, Chief Financial
Officer, +1-918-669-2288, or Media, Fred Fleischner, Executive
Director, Corporate Communications, +1-918-669-3086,
fred.fleischner@dtag.com, or Investors, Todd D. Dallenbach, Staff
Vice President, Investor Relations, +1-918-669-2414,
todd.dallenbach@dtag.com, all of Dollar Thrifty Automotive Group,
Inc.
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