TULSA, Okla. -- Dollar Thrifty Automotive Group Inc. reported that net income for the second quarter dropped 64% compared to the same quarter last year -- from $17.5 million (70 cents per share) to $6.3 million (25 cents per share).

"Lower industry pricing and a weak used car market, driven by high retail incentives on new cars offered by automobile manufacturers, continued to negatively impact our results," said Joseph E. Cappy, DTG's chairman and CEO.

Total revenue for the quarter was $304.1 million, a 0.5% increase over the 2002 second quarter.

For the first six months of 2003, total revenue was $554.6 million, a 1.7% increase over the first half of 2002. Net income for the six-month period was $6.9 million, or 28 cents per share, compared to $29.7 million, or $1.19 per share, for the same period in 2002.

For the 2003 second quarter, DTG recorded vehicle rental revenue of $243.7 million, a 1.6% increase over the 2002 second quarter. This growth was driven by an 8% increase in rental days, partially offset by a 5.9% decrease in revenue per day.

The rental day growth was driven by a 1.8% increase from same stores and a 6.2% increase from franchise acquisitions and greenfield locations.

"Regarding the outlook, we believe there are particular signs of encouragement," Cappy said. "In the short-term, we are seeing increased travel volume during the peak summer travel season, and it appears that we have seen the bottom of used car prices. In the long-term, we are pleased with our progress on executing our internal growth strategy and believe our focus on accretive franchise acquisitions will continue to expand our revenue growth."

However, Cappy warned that the company expects daily revenue in the third quarter to drop 2% to 3% compared to last year's third quarter. Moreover, earnings per share for the third quarter are expected to fall below the 85 cents earned for the same period in 2002.

DTG also announced its board of directors has authorized the repurchase of up to $30 million of the company's stock over the next two years.

"With improving travel industry conditions, we are confident that DTG's ongoing cash flow will exceed what is required to operate our business, including our aggressive internal growth strategy," Cappy said.

The timing and amount of share repurchases will be subject to market and business conditions, the company said. Repurchases will be made from time to time in the open market or through privately negotiated transactions.