TULSA, Okla. -- Dollar Thrifty Automotive Group Inc. announced that third-quarter profits were down 84% compared to the same period in 2000.
The company reported third-quarter revenue of $299.6 million, representing a 7.2% decrease from the 2000 third quarter. Net income for the quarter was $6.0 million, or $.25 per diluted share, based on 24,482,726 weighted average outstanding shares. For the comparable 2000 quarter, net income was $36.0 million, or $1.46 per diluted share based on 24,618,308 weighted average outstanding shares.
The decline in earnings was the result of a slowdown in travel related to weakening economic conditions, as well as lower rental volumes following the Sept. 11 terrorist attacks.
Also, during the quarter, the company increased its 2001 estimated income tax rate, which reduced earnings per share by $.09. Dollar Thrifty Automotive Group Inc. owns Dollar Rent A Car Systems and Thrifty Inc.
For the first nine months of 2001, total revenue was $824.4 million, compared to $844.1 million reported for the first nine months of 2000. Net income for the nine-month period was $27.7 million, or $1.13 per diluted share, compared to $72.0 million, or $2.93 per diluted share, for the first nine months of 2000.
Results for the first nine months of 2001 and 2000 are based on 24,534,417 and 24,573,437 weighted average outstanding shares, respectively.
"Prior to the tragic events of Sept. 11, we were on track to meet earnings expectations for the quarter," said Joseph E. Cappy, chairman, CEO and president. "Following the attacks, we experienced a few days of increased demand as stranded travelers rented cars to return home. We then experienced a dramatic drop in demand as airlines reduced capacity and consumers postponed travel plans. Rental volumes gradually improved and, by the end of the third quarter, were at levels approximately 20% below last year."
