Exhibit 99.5
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DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. LOGO
Press Release
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Contacts:
Media: Terri Snow Financial: Steve Hildebrand
Executive Director - Chief Financial Officer
Investor Relations (918) 669-2288
(918) 669-2743
FOR IMMEDIATE RELEASE
Dollar Thrifty Automotive Group Announces
New Single Operating Company Structure
New platform optimizes cost savings and growth opportunities
TULSA, OKLAHOMA, December 3, 2002: Dollar Thrifty Automotive Group, Inc. (NYSE:
DTG), today unveiled a new corporate platform. Previously functioning as two
separate operating companies (Dollar Rent A Car Systems, Inc. and Thrifty,
Inc.), Dollar Thrifty Automotive Group will be operating as a single company
while continuing to support and grow both of its two strong brands independently
(Dollar Rent A Car and Thrifty Car Rental).
This change, effective January 1, 2003, transforms the company from a brand
structure to a functional structure. This proactive decision will allow the
company to avoid costs and realize cost savings and operating efficiencies.
Additionally, the company anticipates significant opportunities for revenue
growth that will be better accommodated under this new structure. Having
centralized resources available for both brands, best practices can be
implemented quickly and effectively into the operations. Critical elements of
this new structure are:
o leveraging of systems, facilities and expertise;
o shifting Thrifty's strategy to operate U.S. locations corporately;
o keeping all customer touch points brand specific; and
o maintaining each brand's principal focus on the value-conscious
leisure consumer.
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DTG
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This new business model combines functions such as field operations, technology
systems, fleet and administrative management. This platform avoids building a
duplicate infrastructure to support the expanded corporate location strategy.
The integration will be entirely seamless to customers, as both the Dollar and
Thrifty brands will remain separate in the sales, marketing and franchising
areas.
Joseph E. Cappy, DTG chairman and chief executive officer said, "The travel
industry has been operating in a difficult environment, however, DTG has
continued to achieve excellent results. Building on that success, DTG views this
proactive decision to bring both its operating companies under a single
structure as an opportunity to accelerate synergies between brands."
Implementation Costs of New Structure
In the fourth quarter, the company expects to record $4 million in one-time
expenses to implement this new structure, impacting earnings per share by $.09.
Approximately $2 million of these expenses relates to repositioning of assets
and employees. The remaining $2 million relates to the write-off of assets that
will not be utilized under the new operating structure. The company expects to
incur additional one-time costs in 2003, however, these costs should be offset
by cost savings resulting from this initiative.
One-time costs related to implementing this new structure were not included in
the company's previous earnings guidance for the fourth quarter which was a
range of a break-even to a $.10 loss per share and for the full year which was
$1.95 to $2.05 per share. The company is not changing its earnings guidance for
2002, exclusive of these one-time implementation costs.
Conference Call
A conference call to discuss the new DTG structure will be held today, Tuesday,
December 3, 2002, at 12:30 p.m. (CST). Domestic participants should call
888-455-9686 and use the pass code "Dollar Thrifty". The number for
international participants is 630-395-0145. Please call in approximately 10
minutes prior to the beginning of the call. A live audio Web cast of the call
will be available on the company's Web site, www.dtag.com. A replay of the
conference call will be made available one hour following the conclusion of the
call. To access the domestic audio replay, call 800-427-1760. The international
replay number is 402-220-3031. The replay of the call, as well as an archive of
the call on the company's Web site, will be available through December 17.
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DTG
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Dollar Thrifty Automotive Group, Inc. is headquartered in Tulsa, Oklahoma, and
has over 5,000 worldwide employees. Focused on being the low-cost provider in
the car rental industry, the company's brands, Dollar Rent A Car and Thrifty Car
Rental, serve value-conscious leisure travelers in more than 70 countries. With
operations at most major airports, Dollar and Thrifty have approximately 900
corporate and franchised locations in the United States and Canada.
Some of the statements contained in this press release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Although Dollar Thrifty Automotive Group, Inc.
believes such forward-looking statements are based upon reasonable assumptions,
such statements are not guarantees of future performance and certain factors
could cause results to differ materially from current expectations. These
factors include: price and product competition; economic and competitive
conditions in markets and countries where the companies' customers reside and
where the companies and their franchisees operate; airline travel patterns;
changes in capital availability or cost; costs and other terms related to the
acquisition and disposition of automobiles; costs of conducting business and
changes in structure or operations; and certain regulatory and environmental
matters. Should one or more of these risks or uncertainties, among others,
materialize, actual results could vary from those estimated, anticipated or
projected. Dollar Thrifty Automotive Group, Inc. undertakes no obligation to
update or revise forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future operating results over
time.