DTAG Q2 Profits Fall 43 Percent

Dollar Thrifty Automotive Group Inc. reported Tuesday its second-quarter profit fell 43 percent as higher costs offset revenue growth.

Dollar Thrifty reported net income of $15.3 million, or $0.63 per diluted share, compared to $26.7 million, or $1.04 per diluted share for the comparable 2006 quarter.

The decrease in second quarter net income year over year included $0.07 per share of transition costs related to the outsourcing of information technology services and call center operations along with one-time charges to write off deferred financing fees for the Company's retired revolving credit facility which was refinanced in June. This was partially offset by $0.03 per share of favorable change in fair value of derivatives, Dollar Thrifty said.

For the first six months of 2007, net income was $20.5 million, or $0.84 per diluted share. For the first six months of 2006, net income was $48.5 million or $1.87 per diluted share. The decrease in net income year over year for the six month period included $0.34 per share of unfavorable change in fair value of derivatives and $0.13 per share of outsourcing transition costs and one-time charges to write off deferred financing fees.

On a same store basis, Dollar Thrifty said total transactions rose 1.6 percent in line with airline traffic increases, but same-store rental days fell by 1.9 percent as a result of a shorter average transaction length, the company said.

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

Five Business Model Trends for 2017

As new forms of mobility take flight, the borders with traditional car rental are starting to erode.

Are Commercial Drone Deliveries Eminent in the U.S.?

Amazon just delivered its first package by drone in England. Will U.S. delivery fleets be able to take advantage soon?

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.

Job Finder: Access Top Talent. Fill Key Positions.