Dollar Thrifty Automotive Group Inc. today reported results for the first quarter 2012. Net income for the quarter was $40.4 million compared to net income of $16.5 million for the first quarter of 2011. The company also reported corporate adjusted EBITDA for the first quarter of 2012 of $76.8 million, compared to $36.3 million in the first quarter of 2011.
"We are pleased to report another record quarter, and the highest first quarter profit in the company's history," said Scott L. Thompson, chairman, president and CEO. "A strong used car market, combined with continued emphasis in the areas of cost control, productivity initiatives, fleet utilization and balance sheet management enabled us to achieve another record quarter, in spite of a competitive rate environment."
For the quarter, the company's vehicle rental revenue was $339.1 million, compared with $332.3 million for the same period in 2011. The increase was driven by a 6.5% increase in rental days, partially offset by a 4.2% decrease in revenue per day. Vehicle utilization for the first quarter of 2012 was 81%, up from 79.7% during last year's first quarter. Revenue per unit per month for the first quarter of 2012 was $1,115, compared to $1,131 per unit per month in the first quarter of 2011.
"Demand for our value-oriented product offerings is strong, as evidenced by our rental day growth this quarter," Thompson said. "The recovery in the leisure travel market continues to show steady improvement, and as we head into the peak season we are pleased with the strength of our forward reservation bookings."
Fleet cost per vehicle was $136 per month in the first quarter of 2012, compared to $251 per month in the first quarter of 2011. The decrease in fleet cost per vehicle per month resulted primarily from lower overall depreciation rates on the company's fleet due to the ongoing strength of the used vehicle market and improved fleet strategies. Additionally, the company noted that vehicle remarketing volumes increased significantly on a year-over-year basis due to a substantial fleet refresh cycle currently underway.
The company sold approximately 14,400 risk vehicles at a total gain of $14.3 million during the first quarter of 2012, compared to approximately 6,900 risk vehicles at a total gain of $7.9 million in the first quarter of 2011. The average fleet for the quarter was up 3.6% compared to the prior-year period.
As of March 31, 2012, the company's tangible net worth was $635 million, and the company had no corporate debt outstanding.
2012 Outlook Update
As previously announced, based on first quarter performance, current overall economic conditions, expectations for continued strength in the domestic used vehicle market and continued improvement in travel volumes, the company noted that it has revised its full year guidance for diluted earnings per share to be within a range of $5.00 to $5.60. Additionally, corporate adjusted EBITDA for the full year of 2012 is expected to be within a range of $285 million to $310 million.
