TULSA, Okla. -- Dollar Thrifty Automotive Group reported that the company's revenue in 2003 was a record $1.23 billion, an 8.4% increase from 2002's total. Net income was $19.8 million (78 cents per share).
Total revenue for 2003's fourth quarter was $302.9 million, up 21% from 2002's fourth quarter. However, the company recorded a net loss of $8.4 million (33 cents per share) for the quarter. DTG attributed the loss to an accounting procedure change, called for in a new amendment to the company's agreement with an automaker supplying fleet.
The accounting change affects how DTG processes the automaker's purchase and promotion payments. The result was a fourth-quarter non-cash reduction of about $13.3 million (52 cents per share), the company said.
Excluding the negative non-cash impact of the accounting change, the company would have earned $4.8 million (19 cents per share) in the fourth quarter compared to a loss of $4 million (16 cents per share) in the previous year's fourth quarter. Moreover, net earnings for the year would have been $33.1 million ($1.30 per share compared to $1.88 per share earned in 2002).
The strong fourth-quarter revenue growth was driven by a 35.8% jump in vehicle rental revenue, resulting from strong volume increases. Total rental days rose 35.2%, with same-store rental days up 13.8%. Franchise acquisitions and greenfield stores contributed another 21.4% to rental day growth.
Vehicle leasing revenue declined from the previous year's fourth quarter, primarily because of a shift of vehicles from franchise to corporate operations.
During the fourth quarter, DTG acquired the Thrifty franchise operations in Las Vegas, Memphis, Detroit, Cleveland and Hartford, Conn. The company also opened greenfield operations for both Dollar and Thrifty at the airport in Richmond, Va.
On Jan. 12 of this year, the company announced the acquisition of the Vancouver Dollar franchise, completing the franchise acquisition effort in major Canadian markets. In addition, during the first quarter of this year, DTG has acquired the Thrifty franchise operation in Greensboro, N.C., and both the Dollar and Thrifty franchise operations in Aspen, Col.
"We are pleased with the company's fourth-quarter results and the success of our new operating model," said Gary Paxton, president and CEO. "We made impressive progress on the franchise acquisition initiative, achieved excellent same-store growth and operated the vehicle fleet at a record fourth-quarter utilization rate of 84.7%, while achieving the first quarterly increase in revenue per day this year. Our new operating model of managing both brands together and our ability to react quickly to market opportunities resulted in strong fourth quarter performance."
