Dollar Thrifty Automotive Group Inc. has published results for the fourth quarter and year ended December 31, 2006.
For the year ended December 31, 2006, revenue was recorded at a record high $1.7 billion, a 10.2 percent increase over the prior year. However, net income for 2006 tallied $51.7 million, a drop from the $76.4 million recorded in 2005.
The key trends cited for the fourth quarter were a very strong pricing environment and significantly higher vehicle depreciation and interest costs as compared to the prior year. Dollar Thrifty reports that the tightening of vehicle capacity and raising of rental pricing had negative effects on rental day volume.
For the fourth quarter of 2006, Dollar Thrifty reported total revenue of $392.8 million, up 11.5 percent from the comparable 2005 quarter.
Vehicle rental revenues for the fourth quarter of 2006 rose to $366.1 million, a 12.8 percent increase over 2005, as a result of a 10.8 percent increase in revenue per day and a 1.8 percent increase in rental days.
During this fourth quarter of 2006, the company acquired the Thrifty Car Rental franchises in San Antonio and Reno, and throughout 2006 they acquired a total of 12 Dollar Rent A Car and Thrifty Car Rental franchises throughout 16 cities, adding more than 6,000 vehicles to their rental fleet.
The company estimates that 2007 will bring an earnings per share rate in the range of $2.50 to $2.90, up from 2006’s recorded $2.04.