DTAG: Q3 Revenue to Decrease 12%
Company says an approximate 12 percent improvement in pricing on a year-over-year basis did not fully mitigate an approximate 21 percent decline in transaction days.
Dollar Thrifty Automotive Group Inc. (DTAG) announced that based on preliminary results, it expects vehicle rental revenues for the third quarter of 2009 to decrease approximately 12 percent compared to the third quarter of 2008, as an approximate 12 percent improvement in pricing on a year-over-year basis did not fully mitigate an approximate 21 percent decline in transaction days. Location closures represented approximately 4 percent of the decline in transaction days, while the remaining decline resulted from lower demand for our services at our current price point and a planned reduction in our fleet capacity as part of our focus on return on assets.
"Optimizing the mix between pricing and volume is a primary focus area for the company in 2009. I am pleased to report for the second consecutive quarter that the company achieved a double-digit increase in rate per day compared to the prior year period, and also achieved its revenue targets for the quarter. One other highlight was that for the month of September, rental revenues were down only 3 percent compared to September 2008, indicating we may have seen the worst of the rental revenue declines for this business cycle," said Scott L. Thompson, CEO and president.
The above data relating to the third quarter results are preliminary estimates based on information available at this time, and will be updated in conjunction with the company's third quarter earnings release.
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