Auto Rental News
MenuMENU
SearchSEARCH

DTG 2nd Quarter Revenue Up 3.6%, Earnings Down

TULSA, Okla. --- Dollar Thrifty Automotive Group reported that second-quarter revenue totaled $367.7 million, a 3.6% increase over the 2004 second quarter. But net income was down 25 cents per diluted share.

by Staff
July 28, 2005
3 min to read


TULSA, Okla. --- Dollar Thrifty Automotive Group reported that second-quarter revenue totaled $367.7 million, a 3.6% increase over the 2004 second quarter. But net income was down 25 cents per diluted share.

Net income for the quarter was $11.3 million, or 43 cents per diluted share. For the second quarter last year, net income was $17.9 million, or 68 cents per diluted share.

Ad Loading...

For the first six months of 2005, total revenue was $710.5 million, an 8.7% increase over the first half of 2004. Net income for the six-month period was $24.3 million.

Vehicle rental revenue rose 5.8%, reaching $335.6 million for the 2005 second quarter. Total rental day growth was 8.8%, driven mostly by franchise acquisitions.

Same-store rental days grew by 0.5%, DTG reported. Revenue per day dropped 2.7% during the quarter, primarily because of tighter competition.

"Second-quarter results reflected highly competitive industry conditions and the transitional impact of changes to our Internet reservation strategy," said Gary L. Paxton, president and CEO of Dollar Thrifty. "We benefited from the continued strong used car market allowing us to lower our vehicle costs, but we fell short of our rental day volume expectations and were challenged by competitive industry pricing. In addition, we were impacted by our previously announced change to non-preferred status with Expedia and the year-over-year impact of the shift of Easter from April last year to March of this year."

Dollar Thrifty this spring downgraded its positioning on Expedia, opting for non-preferred status. That decision has freed the company to offer lower rates on its own Web sites.

Ad Loading...

"Since changing our Expedia relationship effective May 1, we have made significant progress in increasing the number of reservations from our lower-cost channels, particularly our two branded Web sites, dollar.com and thrifty.com," Paxton said. "Our decision to move to non-preferred status on Expedia is the right long-term decision for our two brands despite the short-term effects."

During the second quarter, DTG purchased 288,400 shares under its $100 million share repurchase program at a total cost of $10 million. Since announcing the program in July 2003, DTG has purchased 1.5 million shares at a cost of $44.1 million.

Paxton predicted solid third-quarter numbers. "Based on early trends, we expect the company will have stronger performance in the third quarter for rental day growth, revenue-per-day trends and vehicle utilization than we achieved in the second quarter," he said.

Nonetheless, the company is adjusting its performance forecast for 2005.

"Including our second-quarter results, we are lowering our expectation for full-year 2005 same-store rental day growth to a range of 2% to 4%, and lowering our expectation for revenue per day to be about flat with last year," Paxton said. "We are lowering our 2005 earnings-per-share guidance to our original range of $2.00 to $2.20."

Ad Loading...

Industry fleet costs are expected to climb during the fourth quarter and during 2006, as vehicle manufacturers curb vehicle sales to the rental car industry.



More Rental Operations

50 states map showing LOR rates for each state with different shades of light to dark green

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 →
Illustration of a driverless futuristic front seat/dashboard view of other cars on a freeway with city skyline on horizon.

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 →
A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

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 →
Ad Loading...
A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

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 →
A black Audi SUV superimposed on a historic scene from downtown Tashkent, Uzbekistan.

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 →
A raging brushfire in the countryside.
Rental Operationsby Martin RomjueApril 30, 2026

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 →
Ad Loading...
ARN Industry Newsmakers thumbnail page with ARN and ICRS logos and shots of Nick DiPrima and Martin Romjue
Rental Operationsby Martin RomjueApril 27, 2026

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 →
Photo of CEO Krešimir Dobrilović against a gray modernist crooked-tile mural display.

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 →
A world map with Flexways logo and new locations headline.

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 →
Ad Loading...
Photo of a suitcase, passport, and smartphone.

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 →
Ad Loading...