TULSA, Okla. -- Dollar Thrifty Automotive Group Inc. (DTG) announced its total revenue for 2002 was $1.13 billion, a 7.9% increase over 2001.
Net income for 2002 was $46.8 million, or $1.88 per share, which includes one-time costs totaling $.09 per share recorded in the fourth quarter. These costs were related to implementing the company's new operating structure.
Earnings per share, exclusive of these one-time implementation costs, were $1.97. This was in line with the company's guidance for the year. Prior year net income was $13.8 million, or $.57 per share.
For 2002's fourth quarter, total revenue was $250.3 million, a 24.7% increase from the same period in 2001. Net loss for the fourth quarter of 2002 was $4 million, or $.16 per share, including the one-time implementation costs of $.09 per share. For the 2001 fourth quarter, the company had a net loss of $13.8 million or $.57 per share.
"We are extremely pleased with our performance in what proved to be another challenging year for the travel industry," said Joseph E. Cappy, DTG chairman and CEO. "I am especially proud of our management and all of our employees. They effectively weathered the tough challenges of 2002 and enabled DTG to generate solid returns for our shareholders."
For the full year 2002, Dollar Rent A Car Systems generated revenue of $809.4 million, a 1.7% jump over the prior year. Fourth-quarter revenue was $172.6 million, a 16.6% increase from the 2001 fourth quarter. Driven by a 10% increase in rental days and a 7.4% increase in revenue per day, vehicle rental revenue grew to $166.4 million, an 18.2% increase over 2001's fourth quarter.
During the fourth quarter, Dollar moved in-terminal at the Corpus Christi, Texas, International Airport. In January 2003, Dollar began in-terminal operations at the Milwaukee airport, bringing the total number of corporate U.S. in-terminal airport operations to 68.
Also, in January 2003, Dollar reached an agreement to acquire the master franchise rights for the Dollar brand for all of Canada.
Thrifty Inc. reported record revenue of $323.3 million for the full year 2002, a 27% increase over the prior year. Fourth-quarter revenue was $77.4 million, a 46.8% increase over the 2001 fourth quarter. Vehicle leasing revenue grew 33.8% over 2001's fourth quarter as a result of strong franchisee vehicle orders.
Thrifty's vehicle rental revenue increased 97.7%, primarily as a result of the strategy shift to operate more U.S. locations corporately. During the 2002 fourth quarter, Thrifty transitioned its Boston market from franchised operations to corporate operations.
In 2003, Thrifty has acquired from its franchisees the Hawaii market and the Manchester, N.H., market and will open a greenfield operation in Charlotte, N.C., in the first quarter. These new operations will bring the total number of U.S. markets operated corporately by Thrifty to 13. The company is in discussions with additional franchisees regarding potential acquisition opportunities.
"We are pleased with our performance throughout 2002. However, we have begun 2003 with guarded optimism," Cappy said. "We are currently seeing weaker travel conditions in the face of a potential war and other economic uncertainties. We expect first-quarter results to fall below last year's record first-quarter results due to weaker pricing, the Easter holiday travel season shifting back to the second quarter this year, and to a weaker used car market."
However, Cappy added, DTG's new corporate strategy, in which Dollar and Thrifty corporate operations are consolidated, places the company in a better position to weather ongoing declines in travel.
"These proactive measures to further enhance our operating model, along with our strong liquidity position and balance sheet, will allow us to continue to compete effectively during these difficult market conditions and beyond," Cappy said.