Exhibit 99.12
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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
Corporate Communications (918) 669-2288
(918) 669-2743
FOR IMMEDIATE RELEASE
DOLLAR THRIFTY AUTOMOTIVE GROUP REPORTS SECOND QUARTER EARNINGS
Board of Directors authorizes stock repurchase program
TULSA, OKLAHOMA, July 30, 2003: Dollar Thrifty Automotive Group, Inc.
(NYSE:DTG), today reported results for the second quarter ended June 30, 2003.
Total revenue for the 2003 second quarter was $304.1 million, a 0.5 percent
increase over the 2002 second quarter. Net income for the quarter was $6.3
million, or $.25 per diluted share. For the comparable 2002 quarter, net income
was $17.5 million, or $.70 per diluted share.
For the first six months of 2003, total revenue was $554.6 million, a 1.7
percent increase over the first half of 2002. Net income for the six-month
period was $6.9 million, or $.28 per diluted share, compared to $29.7 million,
or $1.19 per diluted share, for the first six months of 2002.
DTG is pleased to announce that its Board of Directors has authorized the
repurchase of up to $30 million of the Company's stock over the next two years.
"With improving travel industry conditions, we are confident that DTG's ongoing
cash flow will exceed what is required to operate our business, including our
aggressive internal growth strategy," Joseph E. Cappy, Chairman and CEO, said.
This program will be funded from ongoing excess cash flow after funding business
growth initiatives, including the accelerated franchise acquisition program. The
timing and amount of share repurchases will be subject to market and business
conditions. Repurchases will be made from time to time in the open market or
through privately negotiated transactions.
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For the 2003 second quarter, DTG recorded vehicle rental revenue of $243.7
million, a 1.6 percent increase over the 2002 second quarter. This growth was
driven by an 8.0 percent increase in rental days, partially offset by a 5.9
percent decrease in revenue per day. The rental day growth was driven by a 1.8
percent increase from same stores and a 6.2 percent increase from franchise
acquisitions and greenfield locations. "Lower industry pricing and a weak used
car market, driven by high retail incentives on new cars offered by automobile
manufacturers, continued to negatively impact our results," Cappy said.
DTG remains focused on its growth strategy and recently announced the
acquisition of the Houston, Texas; Atlanta, Georgia; and Ontario, California,
franchise operations of Thrifty. During the second quarter, DTG also announced
that franchisees of Dollar Rent A Car and Thrifty Car Rental brands will be able
to operate franchises of both Dollar and Thrifty in select markets in which the
company has decided not to operate corporately. The first dual franchised
operation opened June 1 in Colorado Springs, Colorado, with a current Dollar
Rent A Car franchisee opening a new in-terminal Thrifty location.
Also, Thrifty franchisees from Des Moines, Iowa; Harrisburg, Pennsylvania; and
Greenville/Spartanburg and Charleston, South Carolina, will soon be opening
Dollar in-terminal locations in their respective cities. In addition, DTG
greenfield operations commenced in Tucson, Arizona, and Daytona Beach, Florida,
during the second quarter. DTG Canada continued its aggressive implementation of
co-branding throughout the Canadian airports. Dollar now operates corporately in
the Toronto, Montreal, Calgary, Winnipeg, Ottawa and Halifax airports on a
co-branding basis with Thrifty thereby increasing the DTG profile throughout
Canada.
"We continue to implement efficiencies through combining our operations and
systems," Cappy said. "In mid-July, we announced that one of our three
reservations centers will close in September and call volume will be redirected
among the two remaining reservation centers. In addition, we now have all U.S.
corporate stores operating on a single operating system with standardized
processing and controls, and have completed the consolidation of our Florida
accounting office into the world headquarters in Tulsa.
"Regarding the outlook, we believe there are particular signs of encouragement,"
Cappy said. "In the short-term, we are seeing increased travel volume during the
peak summer travel season and it appears that we have seen the bottom of used
car prices. In the long-term, we are pleased with our progress on executing our
internal growth strategy and believe our focus on accretive franchise
acquisitions will continue to expand our revenue growth. In addition, we
continue to press for additional efficiencies and costs savings. Our financial
position and our prospects for generating cash flow remain strong. Looking ahead
to the third quarter of this year, while industry pricing has been improving, we
still expect revenue per day in the third quarter to be 2 percent to 3 percent
below last year's third quarter and earnings per share for the third quarter of
2003 to fall below the $.85 earned for the third quarter of 2002."
The Dollar Thrifty Automotive Group, Inc. second quarter 2003 earnings release
conference call will be held on Wednesday, July 30, 2003, at 10:00 a.m. (central
daylight time). Those interested in listening to the conference call live may
access the call via Web cast at the corporate Web site, dtag.com, or by dialing
888-425-9978 (domestic) or 630-395-0027 (international), using the pass code
"Dollar Thrifty." An audio replay of the conference call will be available
through August 13, 2003, by calling 800-333-1767 (domestic) or 402-220-0198
(international). The replay will also be available via the corporate Web site
for one year.
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DTG
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Dollar Thrifty Automotive Group, Inc., a Fortune 1000 Company, is headquartered
in Tulsa, Oklahoma, and has approximately 6,000 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 800 corporate and franchised locations in
the United States and Canada. Additional information can be found by visiting
dtag.com.
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.
DOLLAR THRIFTY AUTOMOTIVE GROUP, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except share and per share data)
Unaudited
Three months ended As % of
June 30, Total revenues
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2003 2002 2003 2002
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Revenues:
Vehicle rentals $ 243,713 $ 239,946 80.1% 79.3%
Vehicle leasing 41,444 43,509 13.6% 14.4%
Fees and services 14,317 15,391 4.7% 5.1%
Other 4,625 3,622 1.6% 1.2%
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Total revenues 304,099 302,468 100.0% 100.0%
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Costs and Expenses:
Direct vehicle and operating 112,185 109,063 36.9% 36.1%
Vehicle depreciation and lease charges, net 109,526 92,583 36.0% 30.6%
Selling, general and administrative 47,706 48,623 15.7% 16.1%
Interest expense, net 22,508 23,432 7.4% 7.7%
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Total costs and expenses 291,925 273,701 96.0% 90.5%
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Income before income taxes 12,174 28,767 4.0% 9.5%
Income tax expense 5,845 11,227 1.9% 3.7%
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Net income $ 6,329 $ 17,540 2.1% 5.8%
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Earnings per share:
Basic $ 0.26 $ 0.72
Diluted $ 0.25 $ 0.70
Weighted average number
of shares outstanding:
Basic 24,492,981 24,257,511
Diluted 25,290,040 25,088,515
Six months ended As % of
June 30, Total revenues
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2003 2002 2003 2002
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Revenues:
Vehicle rentals $ 442,071 $ 435,479 79.7% 79.9%
Vehicle leasing 78,668 75,307 14.2% 13.8%
Fees and services 27,863 28,484 5.0% 5.2%
Other 5,980 5,955 1.1% 1.1%
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Total revenues 554,582 545,225 100.0% 100.0%
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Costs and Expenses:
Direct vehicle and operating 210,768 196,697 38.0% 36.1%
Vehicle depreciation and lease charges, net 198,356 164,792 35.8% 30.2%
Selling, general and administrative 89,796 90,635 16.2% 16.6%
Interest expense, net 41,777 43,278 7.5% 8.0%
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Total costs and expenses 540,697 495,402 97.5% 90.9%
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Income before income taxes 13,885 49,823 2.5% 9.1%
Income tax expense 6,962 20,150 1.3% 3.7%
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Net income $ 6,923 $ 29,673 1.2% 5.4%
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Earnings per share:
Basic $0.28 $1.23
Diluted $0.28 $1.19
Weighted average number
of shares outstanding:
Basic 24,474,926 24,205,672
Diluted 25,164,647 24,838,336
DOLLAR THRIFTY AUTOMOTIVE GROUP, INC.
CONSOLIDATED OPERATING STATISTICS
Three months ended Six months ended
June 30, 2003 June 30, 2003
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Vehicle Rental Data: (includes new stores)
Average number of vehicles operated 78,521 72,340
% change from prior year 6.3% 8.8%
Number of rental days 5,998,645 10,877,664
% change from prior year 8.0% 8.0%
Vehicle utilization 84.0% 83.1%
Percentage points change from prior year 1.4 p.p. (0.6) p.p.
Average revenue per day $ 40.63 $ 40.64
% change from prior year (5.9%) (6.0%)
Monthly average revenue per vehicle $ 1,035 $ 1,019
% change from prior year (4.4%) (6.7%)
Same Store Vehicle Rental Data: (excludes new stores)
Average number of vehicles operated 73,849 67,540
% change from prior year 0.0% 1.6%
Number of rental days 5,653,443 10,166,581
% change from prior year 1.8% 1.0%
Vehicle Leasing Data:
Average number of vehicles leased 30,518 29,156
% change from prior year (3.4%) 4.3%
Monthly average revenue per vehicle $ 453 $ 450
% change from prior year (1.3%) 0.2%
SELECTED BALANCE SHEET DATA
(In thousands)
June 30, December 31,
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2003 2002 2002
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(Unaudited)
Cash and cash equivalents $ 62,488 $ 87,042 $ 143,485
Restricted cash and investments 114,170 61,770 334,849
Revenue-earning vehicles, net 2,697,354 2,480,449 1,994,200
Total assets 3,496,117 3,242,072 3,116,434
Total debt 2,585,642 2,439,491 2,224,303
Stockholders' equity 502,536 490,771 499,481