Auto Rental News
MenuMENU
SearchSEARCH

Dollar Thrifty's Earnings Surge in Q3

Dollar Thrifty Automotive Group Inc.'s net income grew to $49.16 million in the third quarter compared with $30.09 million in the prior-year period, constituting the best quarterly financial performance in company history, company executives said.

by Staff
November 3, 2010
4 min to read


Dollar Thrifty Automotive Group Inc. reported on Tuesday record results for the third quarter ended Sept. 30, 2010. Net income for the 2010 third quarter was $49.2 million, or $1.62 per diluted share, compared to net income of $30.1 million, or $1.29 per diluted share, for the comparable 2009 quarter.

Non-GAAP net income for the 2010 third quarter was $45.8 million, or $1.51 per diluted share, compared to non-GAAP net income of $26.8 million, or $1.15 per diluted share, for the 2009 third quarter.

Ad Loading...

DTAG noted that both its GAAP and non-GAAP pretax earnings were negatively impacted by $11.9 million of merger-related expenses incurred during the third quarter of 2010. These merger-related expenses represent approximately $0.23 per diluted share for the third quarter of 2010.

DTAG reported corporate adjusted EBITDA for the third quarter of 2010 of $81.8 million, compared to $54.7 million in the third quarter of 2009. Excluding the $11.9 million of merger-related expenses incurred during the quarter, corporate adjusted EBITDA for the third quarter of 2010 was $93.7 million, an increase of 71 percent compared to the third quarter of 2009.

"In spite of a slower than expected economic recovery and a reduction in car sale gains compared to the third quarter of 2009, the company delivered its seventh consecutive quarter of year-over-year double-digit growth in corporate adjusted EBITDA. This quarter is also the best quarterly performance in the company's 60 year history," said president and chief executive officer, Scott L. Thompson.

For the quarter ended Sept. 30, 2010, DTAG's total revenue was $443.5 million, as compared to $438.9 million for the comparable 2009 period. Vehicle rental revenues were up 1.6 percent for the quarter, driven by a 1.4 percent increase in transaction days, and a 20 basis point improvement in revenue per day. The increase in rental revenue was partially offset by a decline in vehicle leasing revenue resulting from the planned reduction in the company's licensee leasing program.

The average fleet for the third quarter of 2010 was up 1.7 percent on a year-over-year basis compared to the third quarter of 2009, while the ending fleet was down 50 basis points from the third quarter of 2009.

Ad Loading...

"We are extremely pleased with the results for the quarter, realizing increases in both transaction days and revenue per day, while continuing to decrease expenses across all areas of the company. In spite of a difficult year-over-year comparison resulting from a 12 percent improvement in revenue per day during the third quarter of 2009, we achieved a modest increase in revenue per day in the third quarter of 2010," Thompson said.

Vehicle depreciation per unit for the third quarter of 2010 totaled $262 per month as DTAG continued to benefit from the overall strength of the used-vehicle market and previously announced changes to fleet planning and remarketing operations. The company noted that gains on sales of risk vehicles, a component of vehicle depreciation, totaled approximately $10 million in the third quarter of 2010, declining from $16.8 million in the third quarter of 2009. Vehicle utilization was 84.0 percent compared to 84.2 percent in the third quarter of 2009.

For the nine months ended Sept. 30, 2010, net income was $118.7 million, or $3.93 per diluted share, compared to net income of $33.6 million, or $1.47 per diluted share, for the comparable period in 2009.

Non-GAAP net income for the nine months ended Sept. 30, 2010 was $106.8 million, or $3.53 per diluted share, compared to non-GAAP net income of $21.9 million, or $0.96 per diluted share, for the same period in 2009. Non-GAAP net income excludes the increase in fair value of derivatives and the non-cash charges related to the impairment of long-lived assets, net of related tax impact.

DTAG noted that both its GAAP and non-GAAP pretax earnings for the nine months ended September 30, 2010 were negatively impacted by $20.4 million of merger-related expenses. These merger-related expenses represent approximately $0.39 per diluted share for the nine months ended Sept. 30, 2010.

Ad Loading...

DTAG reported corporate adjusted EBITDA for the nine months ended Sept. 30, 2010 of $205.5 million, compared to $73.2 million for the nine months ended Sept. 30, 2009. Excluding year-to-date merger-related expenses of $20.4 million, corporate adjusted EBITDA for the nine months ended Sept. 30, 2010 was $225.9 million.

More Rental Operations

Paperwork sits in front of a black Lamborghini
Rental Operations•November 1, 2026

Clean on Paper: Red Flags in Exotic Car Rental Verification

A suspicious $45,000 Lamborghini booking reveals the strengths and limitations of renter verification, from forged insurance documents to coverage gaps and unauthorized drivers. (Part 2 of 3)

Read More →
display of Turo's FSD homepage
Rental Operations•by Chris Brown•October 28, 2026

Turo and Tesla Take the Next Step Toward Autonomous Car Rentals

The partnership brings Tesla's Full Self-Driving (Supervised) technology into the rental experience, offering a glimpse of how increasingly automated vehicles could change car rental.

Read More →
Two identical rental cars, two different prices
Rental Operations•Cover Story•October 26, 2026

How Rental Operators Can Navigate Personalized Pricing Rules

As regulators scrutinize the use of customer data in pricing, rental operators need to know whether they can explain why one renter pays more than another.

Read More →
Ad Loading...
a laptop shows different connectivity paths for car rental supply
Rental Operations•October 23, 2026

Direct, Broker or Hybrid? How Travel Retailers Source Rental Cars

As travel retailers weigh direct supplier relationships against third-party distribution, rental operators need to understand how those decisions affect their business.

Read More →
thumbnail of title and photo of Joel Price and Chris Brown
Rental Operations•by Chris Brown•October 20, 2026

How Did This Independent Rental Operator Grow to 170 Vehicles in 4 Years?

With 170 vehicles across three Kentucky locations, Joel Price relies on an overseas team to handle reservations, payments, and after-hours customer service. It's one part of an unconventional approach to growing an independent rental operation.

Read More →
thumbnail what does it take to succeed in b2b rentals
Rental Operations•by Chris Brown•October 12, 2026

What Does It Take to Succeed in B2B Rentals?

The fundamentals may be familiar to daily car rental operators, but project-based truck rentals put different demands on the fleet and the business.

Read More →
Ad Loading...
Photo of Ana Laborde and world map
Rental Operations•by Chris Brown•October 12, 2026

NPR Builds on International Partnerships to Grow Rental Bookings

With Ana Laborde supporting broker development, NPR Auto Group is tailoring distribution strategies, rate packages, and partnerships to grow international reservations across its three brands.

Read More →
Rental car agent shows woman her choice of rental car
Rental Operations•by Chris Brown•October 7, 2026

Advantage, Sixt Place Among Top Five in Annual Satisfaction Study

While Enterprise and National retain the top spots in JD Power’s 2026 rankings, the latest customer satisfaction results suggest renters can find competitive service beyond the biggest car rental names.

Read More →
an exotic car wrapped in an insurance policy
Rental Operations•October 1, 2026

The $100,000 Insurance Trap in Exotic Car Rentals

Exotic rental agencies often rely on customers’ personal auto policies to protect six-figure vehicles. But policy language can dramatically change the coverage for vehicles over $100,000 MSRP.

Read More →
Ad Loading...
globe of world and drivers license from UK
Rental Operations•September 28, 2026

The Booking Is Confirmed, But Is Your Customer Ready to Drive?

For international renters, a confirmed reservation doesn’t always mean they’re eligible to drive. Earlier checks can help operators catch documentation and payment issues before the customer reaches the counter.

Read More →
Ad Loading...