Dollar Thrifty Automotive Group Provides Share Repurchase Program Update

Dollar Thrifty Automotive Group Inc. (DTAG) announced the completion of a $100 million forward stock repurchase agreement on Feb. 9 that was first executed on Nov. 3, 2011.

In conjunction with the agreement, DTAG repurchased 1,451,193 shares of stock at an average price of approximately $68.91. After giving effect to the share repurchase, the company noted it now has approximately 28.1 million common shares outstanding.

"We are pleased to announce that we have returned $100 million to shareholders through the share repurchase agreement that was announced during the fourth quarter of 2011," said Scott L. Thompson, chairman, president and CEO of DTAG. "The company repurchased approximately 5% of its common shares outstanding, thereby reducing a portion of the company’s excess cash on hand in an effort to optimize Dollar Thrifty's capital structure over time."

The company's previously authorized share repurchase program provides the company with the ability to repurchase up to an additional $300 million of shares. The share repurchase program is discretionary and has no expiration date. The timing and amount of future share repurchases will be based on market conditions and other factors.

DTAG may repurchase shares under forward stock repurchase agreements, accelerated stock buyback programs, directly in the open market, in privately negotiated transactions, pursuant to derivative instruments or plans complying with SEC Rule 10b5-1 or other types of transactions and arrangements. The share repurchase program may be increased, suspended or discontinued at any time.

"The company continues to have substantial liquidity on hand, has no corporate debt, and based on current market conditions, is expected to generate significant free cash flow in 2012,” Thompson said. “Based on these factors, the company expects to be active in repurchasing shares in 2012."

Update: On Feb. 21, Dollar Thrifty announced the extension of its shareholder rights plan. Click here for the story.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

2017: Fleet Mix Will Be Paramount

Car rental companies are migrating to vehicle segments with better residual values, though not without bumps in the road.

Auto Rental Summit: Five Trend Lines

Taking in the seminars, discussions, and networking at the 2016 Auto Rental Summit, trend lines emerged around shifts in model mix, data protection issues, increasing labor costs, workforce engagement, and new platforms to rent cars.

Job Finder: Access Top Talent. Fill Key Positions.