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.