Tulsa-based Dollar Thrifty to report increased earnings
BY D.R. STEWART World Staff Writer
Tuesday, April 24, 2012
4/24/12 at 6:35 AM
Dollar Thrifty Automotive Group Inc. expects to report first-quarter earnings that more than double its profit in the first three months of last year, company executives said Monday.
In preliminary first-quarter guidance to investors, Dollar Thrifty said it expects earnings per share to range from $1.30 to $1.40 per diluted share, compared with 53 cents per diluted share in the first quarter of 2011.
Tulsa-based Dollar Thrifty said it expects first-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) to range from $75 million to $80 million, compared with $36.3 million in the first quarter of 2011.
Company executives said the significant year-over-year improvement in both earnings per share and corporate adjusted EBITDA was attributable to very favorable fleet costs, combined with lower interest and selling, general and administrative expenses compared with the same quarter last year.
As previously announced, fleet costs for the first quarter benefited from lower base depreciation rates and gains on sales of vehicles in the open market, driven by the continued strength of the domestic used vehicle market, company officials said. The company said it expects first-quarter gains on sales of vehicles sold in the open market to be about $14 million, compared with $8 million in 2011's first quarter.
Dollar Thrifty executives said they expect rental revenue to be up 2 percent in the first quarter, compared with the same period a year ago.
Based on the company's performance in the first quarter and expectations for the domestic used vehicle market and travel volumes during 2012, company executives said the company is revising its full year guidance for diluted earnings per share to be within a range of $5 to $5.60, up from its previous guidance range of $4.60 to $5.20.
The company also said it expects corporate adjusted EBITDA for the full year to be within a range of $285 million to $310 million, up from its previously announced range of $275 million to $300 million.
President and CEO Scott Thompson said the company continues to perform well under its stand-alone plan.
"This quarter's performance again demonstrates the prudence of avoiding unprofitable revenue growth combined with disciplined fleet management," Thompson said. "These important tenants of our management approach are consistent with our overall return-on-asset strategy.
"I currently have nothing to report on any potential merger activity other than to say we did not spend any significant money during the first quarter on it."
During the past two years, Dollar Thrifty was a buyout target of both Hertz Global Holdings Inc., the rental car industry's second largest company, and Avis Budget Group Inc., the third largest rental car firm.
Dollar Thrifty executives said the company will report first-quarter results May 9.
Monday on the New York Stock Exchange, shares of Dollar Thrifty gained 34 cents to finish at $79.45.
Original Print Headline: Dollar Thrifty report to reveal profit boost
D.R. Stewart 918-581-8451
don.stewart@tulsaworld.com
Associated Images:
Dollar Thrifty Automotive Group Inc., with headquaters at Dollar Thrifty Plaza, 5330 E. 31st St., expects a significant improvement in first-quarter earnings. Courtesy
Thompson
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