Dollar Thrifty's Q2 Loss Lower than Expected

Because of lower revenue per day and higher vehicle depreciation costs, Dollar Thrifty Automotive Group Inc announced on Aug. 5 a narrower-than-expected quarterly loss of 23 cents a share, according to Reuters.

Vehicle depreciation costs per vehicle rose about 28 percent due to the softness in the used-car market. For the full year, vehicle depreciation costs on a per vehicle basis will be about 15 percent higher than the year ago, the company said.

For the second quarter, net income was $10.8 million, or 49 cents a share, compared with $15.3 million, or 63 cents a share, in the year-ago period.

The company’s loss of 23 cents a share was excluding an income of 72 cents related to an increase in fair value of derivatives. Revenue fell to $445.7 million from $451.6 million, while revenue per day fell 1.3 percent.

Dollar Thrifty said average fleet decreased 4.4 percent during the quarter.

The company expects volatility in used-car pricing, credit markets and reduced airline capacity to continue, according to Reuters.

Gary L. Paxton, president and chief executive officer of Dollar Thrifty, said that the company continues to concentrate on the items that it controls in this tough economic environment, such as maximizing revenue per day, vehicle utilization, cost reduction and service delivery.

Vehicle rental revenue is expected to be down 1 percent to 2 percent for the year.

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

6 Takeaways from the 2018 International Car Rental Show

Technological solutions are finally moving from reality to theory, peer-to-peer platforms are being redefined, China has the biggest room for growth, while Sixt’s U.S. aspirations have only just begun.

The Irony of Customer Service in the Digital Age

Sure, any company would jump at the chance to use technology to reduce labor costs. But it also comes with some big, red, flashing warning lights.

Market Forces Driving Car Rental in 2018

An analysis of the conference calls of Avis Budget Group and Hertz Global Holdings reveal trends and initiatives involving fleet right sizing, pricing, ancillary revenue opportunities, and renting to ride-hailing drivers.

Job Finder: Access Top Talent. Fill Key Positions.

>