On Oct. 26, Dollar Thrifty Automotive Group Inc. (DTAG) reported results for the third quarter ended Sept. 30, 2009. Net income for the 2009 third quarter was $30.1 million, or $1.29 per diluted share, compared to net income of $18.9 million, or $0.87 per diluted share, for the comparable 2008 quarter. The net income for the third quarter of 2009 included income of $0.15 per diluted share, compared to a loss of $0.02 per diluted share in last year's third quarter, both of which related to changes in fair value of derivatives. Non-GAAP net income for the 2009 third quarter was $26.8 million, or $1.15 per diluted share, compared to non-GAAP net income of $19.3 million, or $0.89 per diluted share for the 2008 third quarter. Non-GAAP net income (loss) excludes the (increase) decrease in fair value of derivatives, net of related tax impact. Corporate Adjusted EBITDA for the third quarter of 2009 was $54.7 million, compared to $43.4 million in the third quarter of 2008. “In spite of the difficult economic environment, we achieved our third consecutive quarter of year-over-year improvement in both non-GAAP net income (loss) and Corporate Adjusted EBITDA,” said Scott L. Thompson, CEO and president. “The difficult steps we have taken over the past 12 months to maximize profitability and cash flow, combined with improvements in residual values, positively impacted this quarter. We expect both of these factors will continue to benefit future operating results.” For the quarter ended Sept. 30, 2009, the company's total revenue was $438.9 million, as compared to $500.6 million for the comparable 2008 period. The decline in revenue was primarily driven by a 21.3 percent decrease in rental days, partially offset by an 11.5 percent improvement in revenue per day. Excluding the impact of location closures, rental days were down approximately 17 percent on a same store basis. The third quarter average fleet was down approximately 20 percent compared to last year's third quarter. “Revenue for the quarter was in line with our expectations and consistent with our strategy of enhancing profitability by maintaining an optimal balance between transaction volume and pricing,” said Thompson. “During the month of September, we experienced rental revenue declines of only 3 percent compared to September 2008, and we currently expect year-over-year rental revenue growth for the month of October as increases in RPD are expected to fully offset volume declines, making October the first month since May of 2008 that the company would experience year-over-year growth in rental revenue. These trends, augmented by our visibility into forward reservations, indicate to us that we may have seen the worst of the rental revenue declines for this business cycle.” Per vehicle depreciation cost of $315 per month in the third quarter of 2009 was approximately 3 percent lower than the comparable quarter of 2008. On a sequential basis, per vehicle depreciation costs declined approximately 14 percent as a result of improved residual values, longer hold periods, mix optimization and more effective remarketing. Vehicle utilization, a measure of fleet efficiency, was 84.2 percent, down 100 basis points from last year's third quarter. On a sequential basis, utilization was up 360 basis points from 80.6 percent in the second quarter of 2009. Direct vehicle and operating expenses and selling, general and administrative expenses were lower in the third quarter of 2009 compared to the same quarter in 2008 as a result of transaction declines and cost reduction initiatives. Interest expense for the third quarter of 2009 declined as debt was reduced by $873 million, or approximately 33 percent, from September 2008 levels.
Dollar Thrifty Ups Q3 Profit on Lower Expenses
Despite a 12.3-percent drop in revenue, Dollar Thrifty Automotive Group posted a 59 percent rise in third-quarter net income.
More Rental Operations

U.S. Rental Length Declines Slightly in Q1 2026, Enterprise Reports
LOR overall continues to trend downward, but ongoing market and economic conditions could affect future results while the industry deals with staffing and productivity challenges.
Read More →
Hertz, Uber Deepen Roles In Self-Driving And Driver-Led Fleet Services
The business arrangement connects demand with scalable fleet management services and supports a range of mobility uses.
Read More →
Why Car Rental Can No Longer Run On Workarounds
The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.
Read More →
Why Car Rental Can No Longer Run On Workarounds
The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.
Read More →
Carwiz Sets Up Rental Operations In Central Asia
The global franchise operation reaches a first in its rental fleet portfolio with new service in Uzbekistan.
Read More →
Where Rental Fleets Must Adjust To Shifting Catastrophe Risks
West Coast disasters pose unique challenges and liabilities for rental fleet operators, who are advised to take steps tailored to their specific situations.
Read More →
Using AI To Find Rental Car Damage
Angry car renters are storming social media, the mainstream media, and online ratings platforms to complain about charges they claim are either unfounded or excessive.
Read More →
Carwiz Opens Car Rental Service In Panama
A Carwiz partner in Puerto Rico is taking on the Panama franchise with operations in the nation's largest airport.
Read More →
Flexways Opens 10 Locations Among Franchise, Affiliate Rental Networks
The integrated business model combines each operator’s local expertise with international standards to boost sales.
Read More →
Traveler Customer Satisfaction Up This Year Data Study Shows
The study looks at customer analytics to size up performance in car rentals, rideshare, airlines, lodging, and OTAs.
Read More →
