Dollar Thrifty Automotive Group, Inc. 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.
“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.