DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. 
By TULSA, Okla., Feb. 21, 2012 /PRNewswire/ -- Dollar Thrifty Automotive Group, Inc. (NYSE: DTG) today reported results for the fourth quarter and year ended December 31, 2011. Net income for the 2011 fourth quarter was $33.9 million, or $1.08 per diluted share, compared to net income of $12.5 million, or $0.41 per diluted share, in the fourth quarter of 2010. Net income for the fourth quarter of 2011 was negatively impacted by $0.01 per diluted share related to changes in fair value of derivatives, compared to a favorable impact on net income of $0.14 per diluted share related to changes in fair value of derivatives in the fourth quarter of 2010.
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Non-GAAP net income for the 2011 fourth quarter was $34.1 million, or $1.09 per diluted share, compared to non-GAAP net income of $8.3 million, or $0.27 per diluted share, for the 2010 fourth quarter. Non-GAAP net income excludes the (increase) decrease in fair value of derivatives and non-cash charges related to impairments of long-lived assets, net of related tax impact.
The Company reported Corporate Adjusted EBITDA for the fourth quarter of 2011 of $63.5 million, an increase of 110 percent compared to $30.2 million reported for the fourth quarter of 2010. The Company noted that Corporate Adjusted EBITDA in the fourth quarter of 2010 was negatively impacted by $2.1 million of merger-related expenses, while no such expenses were incurred in the fourth quarter of 2011.
"We are pleased to announce that for the second consecutive year, the Company is reporting record earnings," said Scott L. Thompson, Chairman, President and Chief Executive Officer. "During 2011, we benefitted from a robust used vehicle market, a recovering travel market with increasing demand for value-oriented product offerings, and our ongoing focus on expense control and productivity initiatives."
For the quarter ended December 31, 2011, the Company's total revenue was $353.7 million, as compared to $349.1 million for the comparable 2010 period. Vehicle rental revenues for the quarter were up 1.0 percent, driven primarily by a 5.2 percent increase in rental days that was partially offset by a 4.0 percent decrease in revenue per day. Vehicle utilization for the fourth quarter of 2011 was 81.1 percent, up from 79.7 percent during last year's fourth quarter. The average fleet for the quarter was up 3.4 percent.
Per vehicle depreciation cost totaled $218 per month in the fourth quarter of 2011 compared to $308 per vehicle per month in the fourth quarter of 2010. The Company's base depreciation rates continue to benefit from the overall strength of the used vehicle market and the resulting favorable impact on residual values. The Company also noted that gains on sales of risk vehicles, a component of vehicle depreciation, totaled $3.8 million in the fourth quarter of 2011, up from a loss of $0.1 million in the fourth quarter of 2010.
Direct vehicle and operating expenses and selling, general and administrative expenses declined to 60.2 percent of revenues for the fourth quarter of 2011, compared to 61.5 percent of revenues in the fourth quarter of 2010. The decrease in expenses was primarily the result of favorable vehicle-related insurance costs, personnel productivity initiatives and a decline in merger-related expenses compared to the prior year. Interest expense declined to $18.6 million in the fourth quarter of 2011, a decline of $5.3 million from prior year levels.
Full Year Results
For the year ended December 31, 2011, net income was $159.6 million, or $5.11 per diluted share, compared to $131.2 million, or $4.34 per diluted share, for the year ended December 31, 2010. Net income in 2011 and 2010 included net favorable impacts of $0.06 per diluted share and $0.54 per diluted share, respectively, related to favorable changes in fair value of derivatives and long-lived asset impairments.
The Company noted that net income for the full year of 2011 was negatively impacted by $2.7 million of after-tax merger-related expenses, or $0.09 per diluted share, compared to $13.2 million, or $0.44 per diluted share, for the full year of 2010. The Company also noted that rental revenue increased approximately one percent on a year-over-year basis, driven by a 3.8 percent increase in rental days, partially offset by a 2.9 percent decrease in revenue per day.
Non-GAAP net income for the year ended December 31, 2011 was $157.7 million, or $5.05 per diluted share, compared to non-GAAP net income of $115.0 million, or $3.80 per diluted share, for the same period in 2010. Non-GAAP net income excludes the (increase) decrease in fair value of derivatives and non-cash charges related to the impairment of long-lived assets, net of related tax impact. Excluding the impact of merger-related expenses mentioned above, non-GAAP net income for the full year of 2011 would have been $160.4 million, or $5.13 per diluted share, compared to $128.2 million, or $4.24 per diluted share, in the prior year period.
Corporate Adjusted EBITDA for the year ended December 31, 2011, excluding merger-related expenses, was $303.2 million, an increase of approximately $45 million from the $258.3 million reported for the full year of 2010.
Liquidity and Capital Resources
During 2011, the Company repaid all of its outstanding corporate debt totaling $143 million and fully funded its previously announced $100 million forward stock repurchase agreement. The Company ended the year with no corporate leverage and unrestricted cash of $509 million. Additionally, as of December 31, 2011, the Company had $353 million in restricted cash and investments primarily available for the purchase of vehicles and/or repayment of vehicle financing obligations.
The Company further strengthened its liquidity in 2011 by adding or renewing fleet financing capacity totaling $1.5 billion. As a result of these actions, the Company noted that it has effectively pre-funded its upcoming fleet debt maturities for 2012, and has significantly extended its fleet financing maturity profile into 2013 and beyond.
On February 16, 2012, the Company successfully completed a new five-year $450 million senior secured credit facility that increased the Company's available revolving credit capacity by approximately $220 million, and extended the maturity date of the senior secured credit facility to 2017 from 2013. In addition to the incremental financing capacity available for general corporate purposes, the new facility provides the Company with greatly improved flexibility to manage growth initiatives and capital structure initiatives. The new facility contains various financial and other covenants, including, among others, limitations on liens, investments, restricted payments (such as share repurchases and dividend payments), and the incurrence of debt, as well as requirements to maintain a minimum corporate interest coverage ratio, minimum Corporate Adjusted EBITDA and a maximum corporate leverage ratio.
The Company's tangible net worth at December 31, 2011 was $586 million, after considering the impact of the $100 million share repurchase agreement executed and fully funded in the fourth quarter.
Share Repurchase Program
During February 2012, the Company completed its previously announced $100 million forward stock repurchase agreement, repurchasing 1,451,193 shares of Company stock, or approximately 5 percent of the Company's outstanding shares, at an average price of approximately $68.91. After giving effect to the share repurchase, the Company noted it now has approximately 28.1 million common shares outstanding.
The Company's previously authorized share repurchase program provides the Company with the ability to repurchase up to an additional $300 million of shares in future periods. The share repurchase program is discretionary and has no expiration date. The timing and amount of future share repurchases will be based on market conditions, limitations in the senior secured credit facility and other factors. The Company may repurchase shares under forward stock repurchase agreements, accelerated share repurchase programs, directly in the open market, in privately negotiated transactions, pursuant to derivative instruments or plans complying with SEC Rule 10b5-1 or other types of transactions and arrangements. The Company currently expects to repurchase shares in 2012; however, the share repurchase program may be increased, suspended or discontinued at any time.
2012 Outlook
The Company is providing the following guidance for 2012 with respect to key drivers of its business model:
-- Vehicle rental revenues are projected to be up 3 - 5 percent compared to
2011.
-- Vehicle depreciation costs for the full year of 2012 are expected to be
within a range of $220 to $240 per vehicle per month.
-- The Company is utilizing a Manheim index of 124 for the full year of
2012 for purposes of estimating residual values and depreciation
rates.
-- Gains on sales of risk vehicles in 2012 are expected to moderate
significantly on both an aggregate dollar and per unit basis
compared to vehicle gains recorded in 2011. This decrease is the
result of continued refinements of residual value assumptions to
more closely align with market conditions at the time of sale.
-- Interest expense is expected to decline significantly on a
year-over-year basis, primarily as a result of lower overall interest
rates on the Company's fleet financing facilities as compared to the
fixed rates on matured and maturing financing facilities, and the
repayment of all of the Company's corporate debt in 2011. These
decreases will be partially offset by higher rates on the newly
completed revolver and the expected re-leveraging of our Canadian fleet.
Based on the above expectations and the additional information outlined below, for the full year of 2012, the Company is targeting earnings per share (EPS) to be within a range of $4.60 to $5.20 per diluted share, and Corporate Adjusted EBITDA to be within a range of $275 million to $300 million.
Based on its expectations for a significant variance in earnings on a year-over-year basis, the Company is also providing limited guidance for the first quarter of 2012. The Company noted that it expects EPS to be within a range of $1.15 to $1.40 per diluted share, and Corporate Adjusted EBITDA to be within a range of $70 million to $80 million in the first quarter of 2012. EPS and Corporate Adjusted EBITDA in the first quarter of 2011 were $0.53 per diluted share and $36.3 million, respectively. The Company also noted that it expects fleet costs for the first quarter to be within a range of $150 to $170 per unit per month, based on anticipated remarketing activity, and lower overall depreciation rates on its fleet.
"We expect an improving U.S. travel market and a solid used vehicle market in 2012. Our well established value-oriented rental car offerings are positioned well for a slow growth recovery. The Company strives for continuous improvement in all aspects of its operations on a daily basis, and we will continue to push for improvements in profitability, productivity and customer service in 2012. As we have stated before, our primary objective is to maximize return on assets for our shareholders, and we will consider all potential options to achieve that objective," said Thompson.
Web cast and conference call information
The Dollar Thrifty Automotive Group, Inc. fourth quarter and full year 2011 earnings conference call will be held on Tuesday, February( )21st, at 8:00 a.m. (CST). Those interested in listening to the conference call live may access the call via Web cast at the corporate Web site, www.dtag.com, or by dialing 888-603-9215 (domestic) or 203-827-7046 (international) using the pass code "Dollar Thrifty." An audio replay of the conference call will be available through March 6, 2012, by calling 800-677-0973 (domestic) or 203-369-3652 (international). The replay will also be available via the corporate Web site for one year.
About Dollar Thrifty Automotive Group, Inc.
Through its Dollar Rent A Car and Thrifty Car Rental brands, the Company has been serving value-conscious leisure and business travelers since 1950. The Company maintains a strong presence in domestic leisure travel in virtually all of the top U.S. and Canadian airport markets, and also derives a significant portion of its revenue from international travelers to the U.S. under contracts with various international tour operators. Dollar and Thrifty have approximately 280 corporate locations in the United States and Canada, with approximately 5,900 employees located mainly in North America. In addition to its corporate operations, the Company maintains global service capabilities through an expansive franchise network of approximately 1,300 franchises in 82 countries. For additional information, visit www.dtag.com or the brand sites at www.dollar.com and www.thrifty.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking statements" about our expectations, plans and performance. These statements use such words as "may," "will," "expect," "believe," "intend," "should," "could," "anticipate," "estimate," "forecast," "project," "plan" and similar expressions. These statements do not guarantee future performance and Dollar Thrifty Automotive Group, Inc. assumes no obligation to update them. Risks and uncertainties relating to our business that could materially affect our future results include:
-- constraints on our growth and profitability given the challenges we face
in increasing our market share in the key airport and local markets we
serve, high barriers to entry in the insurance replacement market,
capital and other constraints on expanding company-owned stores
internationally and the challenges we would face in further reducing our
expenses;
-- the impact of the continuing volatility in the global financial and
credit markets, particularly in certain countries in the European Union,
and concerns about global economic prospects that could materially
adversely affect consumer discretionary spending, including for
international inbound travel to the United States and for leisure travel
more generally, on which we are substantially dependent;
-- the impact of pending and future U.S. governmental action to address
budget deficits through reductions in spending and similar austerity
measures, which could materially adversely affect unemployment rates and
consumer spending levels;
-- the continuing significant political unrest and other concerns involving
certain oil-producing countries, which has contributed to price
volatility for petroleum products, and in recent periods higher average
gasoline prices, which could affect both broader economic conditions and
consumer spending levels;
-- the impact of pricing and other actions by competitors;
-- our ability to manage our fleet mix to match demand and meet our target
for vehicle depreciation costs, particularly in light of the significant
level of risk vehicles (i.e., those vehicles not acquired through a
guaranteed residual value program) in our fleet and our exposure to the
used vehicle market;
-- the cost and other terms of acquiring and disposing of automobiles and
the impact of conditions in the used vehicle market on our vehicle cost,
including the impact on vehicle depreciation costs in 2012 based on
pricing volatility in the used vehicle market;
-- our ability to reduce our fleet capacity as and when projected by our
plans;
-- the continuing strength of the U.S. automotive industry on which we
depend for vehicle supply;
-- airline travel patterns, including disruptions or reductions in air
travel resulting from capacity reductions, pricing actions, severe
weather conditions, industry consolidation or other events, particularly
given our dependence on leisure travel;
-- access to reservation distribution channels, particularly as the role of
the Internet and mobile applications increases in the marketing and sale
of travel-related services;
-- the effectiveness of actions we take to maintain a low cost structure
and to manage liquidity;
-- the impact of repurchases of our common stock pursuant to our share
repurchase program;
-- our ability to obtain cost-effective financing as needed without unduly
restricting our operational flexibility;
-- our ability to comply with financial covenants, and the impact of those
covenants on our operating and financial flexibility;
-- whether our preliminary expectations about our federal income tax
position, after giving effect to the impact of the Tax Relief,
Unemployment Insurance Reauthorization and Job Creation Act of 2010, are
affected by changes in our expected fleet size or operations or further
legislative initiatives relating to taxes in the United States or
elsewhere;
-- our ability to continue to defer the reversal of prior period tax
deferrals and the availability of accelerated depreciation payments in
future periods, the lack of either of which could result in material
cash federal income tax payments in future periods;
-- the cost of regulatory compliance, costs and other effects of potential
future initiatives, including those directed at climate change and its
effects, and the costs and outcome of pending litigation;
-- disruptions in the operation or development of information and
communication systems that we rely on, including those relating to
methods of payment;
-- local market conditions where we and our franchisees do business,
including whether franchisees will continue to have access to capital as
needed; and
-- the impact of other events that can disrupt consumer travel, such as
natural and man-made catastrophes, pandemics, social unrest and actual
and perceived threats or acts of terrorism.
Forward-looking statements should be considered in light of information in this press release and other filings we make with the Securities and Exchange Commission.
Table 1
-------
Dollar Thrifty Automotive Group, Inc.
Consolidated Statements of Income
---------------------------------
(In thousands, except share and per share data)
Unaudited
Three months ended As % of
December 31, Total revenues
2011 2010 2011 2010
---- ---- ---- ----
Revenues:
Vehicle rentals $338,283 $334,994 95.6% 96.0%
Other 15,447 14,065 4.4% 4.0%
------ ------ --- ---
Total revenues 353,730 349,059 100.0% 100.0%
------- ------- ----- -----
Costs and Expenses:
Direct vehicle
and operating 167,669 168,105 47.4% 48.2%
Vehicle
depreciation
and lease
charges, net 66,974 91,140 18.9% 26.1%
Selling,
general and
administrative 45,402 46,500 12.8% 13.3%
Interest
expense, net 18,563 23,911 5.3% 6.9%
Long-lived
asset
impairment - 115 0.0% 0.0%
--- --- --- ---
Total costs and
expenses 298,608 329,771 84.4% 94.5%
------- ------- ---- ----
(Increase)
decrease in
fair value of
derivatives 123 (7,356) 0.0% (2.1%)
--- ------ --- ------
Income before
income taxes 54,999 26,644 15.6% 7.6%
Income tax
expense 21,098 14,148 6.0% 4.0%
Net income $33,901 $12,496 9.6% 3.6%
======= ======= === ===
Earnings per share:
Basic $1.16 $0.44
Diluted $1.08 $0.41
Weighted average number
of shares outstanding:
Basic 29,239,530 28,699,875
Diluted 31,311,764 30,369,270
Year ended As % of
December 31, Total revenues
2011 2010 2011 2010
---- ---- ---- ----
Revenues:
Vehicle rentals $1,484,324 $1,473,023 95.8% 95.8%
Other 64,604 64,137 4.2% 4.2%
------ ------ --- ---
Total revenues 1,548,928 1,537,160 100.0% 100.0%
--------- --------- ----- -----
Costs and Expenses:
Direct vehicle
and operating 751,468 745,535 48.5% 48.5%
Vehicle
depreciation
and lease
charges, net 270,957 299,200 17.5% 19.5%
Selling,
general and
administrative 191,043 209,341 12.3% 13.6%
Interest
expense, net 77,462 89,303 5.0% 5.8%
Long-lived
asset
impairment - 1,057 0.0% 0.1%
--- ----- --- ---
Total costs and
expenses 1,290,930 1,344,436 83.3% 87.5%
--------- --------- ---- ----
(Increase)
decrease in
fair value of
derivatives (3,244) (28,694) (0.2%) (1.9%)
------ ------- ------ ------
Income before
income taxes 261,242 221,418 16.9% 14.4%
Income tax
expense 101,692 90,202 6.6% 5.9%
Net income $159,550 $131,216 10.3% 8.5%
======== ======== ==== ===
Earnings per share: (a)
Basic $5.51 $4.58
Diluted $5.11 $4.34
Weighted average number
of shares outstanding:
Basic 28,965,187 28,623,108
Diluted 31,241,241 30,245,281
The underlying diluted per share
information is calculated from the
weighted average common and common
stock equivalents outstanding during
each quarter, which may fluctuate
based on quarterly income levels and
market prices. Therefore, the sum
of the quarters' per share
information may not equal the total
(a) year amounts.
Table 2
-------
Dollar Thrifty Automotive Group, Inc.
Selected Operating and Financial Data
-------------------------------------
Three months
ended Year ended
December 31, December 31,
2011 2011
------------- -------------
OPERATING DATA:
Vehicle Rental Data:
Average number
of vehicles
operated 101,175 107,154
% change from
prior year 3.4% 4.8%
Number of rental
days 7,552,240 31,482,339
% change from
prior year 5.2% 3.8%
Vehicle
utilization 81.1% 80.5%
Percentage
points change
from prior year 1.4 p.p. (0.8) p.p.
Average revenue
per day $44.79 $47.15
% change from
prior year (4.0%) (2.9%)
Monthly average
revenue per
vehicle $1,115 $1,154
% change from
prior year (2.3%) (3.8%)
Average
depreciable
fleet 102,195 108,127
% change from
prior year 3.6% 4.8%
Monthly average
depreciation
(net) per
vehicle $218 $209
% change from
prior year (29.2%) (13.6%)
FINANCIAL DATA: (in millions)
(unaudited)
Non-vehicle
depreciation
and
amortization $7 $27
Non-vehicle
interest
expense 2 11
Non-vehicle
interest income - (1)
Non-vehicle
capital
expenditures 6 17
Cash paid for/
(refund of)
income taxes 1 (32)
Selected Balance Sheet Data
---------------------------
(In millions)
December 31,
2011 2010
---- ----
(unaudited)
Cash and cash
equivalents (b) $509 $563
Restricted cash
and investments 353 277
Revenue-earning
vehicles, net 1,468 1,342
Vehicle debt 1,400 1,249
Non-vehicle
debt (corporate
debt) - 148
Stockholders'
equity 608 539
Tangible Net Worth Calculation
------------------------------
(In millions)
December 31,
2011 2010
---- ----
(unaudited)
Stockholders'
equity $608 $539
Less: Software,
net (22) (24)
Tangible net
worth $586 $515
==== ====
Under the terms of certain of its
financing arrangements, the Company
was required to maintain a minimum
cash balance of $100 million at all
times. For the 2010 reporting
period, such minimum balance is
included in cash and cash
equivalents herein. In February
2011, the requirement to maintain
such minimum cash balance was
(b) eliminated.
Table 3
-------
Dollar Thrifty Automotive Group, Inc.
Non-GAAP Measures
-----------------
Non-GAAP pretax income, Non-GAAP net income and Non-GAAP EPS
exclude the impact of the (increase) decrease in fair value of
derivatives and the impact of long-lived asset impairments, net of
related tax impact (as applicable), from the reported GAAP measures
and are further adjusted to exclude merger-related expenses. Due
to volatility resulting from the mark-to-market treatment of the
derivatives and the non-operating nature of the non-cash
impairments and merger-related expenses, the Company believes these
non-GAAP measures provide an important assessment of year-over-
year operating results. See tables below for a reconciliation of
non-GAAP to GAAP results.
The following table reconciles reported GAAP pretax income per
the income statement to non-GAAP pretax income:
Three months ended Year ended
December 31, December 31,
2011 2010 2011 2010
---- ---- ---- ----
(in thousands) (in thousands)
Income before income
taxes -as reported $54,999 $26,644 $261,242 $221,418
(Increase) decrease
in fair value of
derivatives 123 (7,356) (3,244) (28,694)
Long-lived asset
impairment - 115 - 1,057
Pretax income -
non-GAAP $55,122 $19,403 $257,998 $193,781
======= ======= ======== ========
Merger-related
expenses - 2,146 4,600 22,605
Non-GAAP pretax
income, excluding
merger-related
expenses $55,122 $21,549 $262,598 $216,386
======= ======= ======== ========
The following table reconciles reported GAAP net income per the
income statement to non-GAAP net income:
Three months ended Year ended
December 31, December 31,
2011 2010 2011 2010
---- ---- ---- ----
(in thousands) (in thousands)
Net income -as
reported $33,901 $12,496 $159,550 $131,216
(Increase) decrease
in fair value of
derivatives, net of
tax (c) 163 (4,313) (1,811) (16,826)
Long-lived asset
impairment, net of
tax (d) - 70 - 645
Net income - non-GAAP $34,064 $8,253 $157,739 $115,035
======= ====== ======== ========
Merger-related
expenses, net of tax
(e) - 1,251 2,679 13,172
Non-GAAP net income,
excluding merger-
related expenses $34,064 $9,504 $160,418 $128,207
======= ====== ======== ========
The following table reconciles reported GAAP diluted earnings
per share ("EPS") to non-GAAP diluted EPS:
Three months ended Year ended
December 31, December 31,
2011 2010 2011 2010
---- ---- ---- ----
EPS, diluted -as
reported $1.08 $0.41 $5.11 $4.34
EPS impact of
(increase) decrease
in fair value of
derivatives, net of
tax 0.01 (0.14) (0.06) (0.56)
EPS impact of long-
lived asset
impairment, net of
tax - - - 0.02
EPS, diluted - non-
GAAP (f) $1.09 $0.27 $5.05 $3.80
===== ===== ===== =====
EPS impact of merger-
related expenses,
net of tax - 0.04 0.09 0.44
Non-GAAP diluted
EPS, excluding
merger-related
expenses (f) $1.09 $0.31 $5.13 $4.24
===== ===== ===== =====
The tax effect of the (increase)
decrease in fair value of
derivatives is calculated using
the entity-specific, U.S.
federal and blended state tax
rate applicable to the derivative
instruments which amounts are
($40,000) and ($3,043,000) for
the three months ended December
31, 2011 and 2010, respectively,
and ($1,433,000) and
($11,868,000) for the year ended
December 31, 2011 and 2010,
respectively. The three months
ended December 31, 2011, includes
$91,000 related to a cumulative
(c) tax rate adjustment.
The tax effect of the long-lived
asset impairment is calculated
using the tax-deductible portion
of the impairment and applying
the entity-specific, U.S.
federal and blended state tax
rate which amounts are $45,000
and $412,000 for the three months
and year ended December 31, 2010,
(d) respectively.
Merger-related expenses include
legal, litigation, advisory and
other fees related to a potential
merger transaction. The tax
effect of the merger-related
expenses is calculated using the
entity-specific, U.S. federal
and blended state tax rate
applicable to the merger-related
expenses which amounts are
$895,000 for the three months
ended December 31, 2010, and
$1,921,000 and $9,433,000 for the
year ended December 31, 2011 and
(e) 2010, respectively.
Since each category of EPS is
computed independently for each
period, total per share amounts
may not equal the sum of the
(f) respective categories.
Table 4
-------
Dollar Thrifty Automotive Group, Inc.
Non-GAAP Measures
-----------------
Corporate Adjusted EBITDA means earnings, excluding the impact of the
(increase) decrease in fair value of derivatives, before non-
vehicle interest expense, income taxes, non-vehicle depreciation,
amortization, and certain other items as shown below. The Company
believes Corporate Adjusted EBITDA is important as it provides a
supplemental measure of the Company's liquidity by adjusting
earnings to exclude certain non-cash items, taxes and corporate-
level capital structure decisions (i.e. non-vehicle interest),
thus, allowing the Company's management, including the chief
operating decision maker, as well as investors and analysts, to
evaluate the Company's operating cash flows based on the core
operations of the Company. Additionally, the Company believes
Corporate Adjusted EBITDA is a relevant measure of operating
performance in providing a measure of profitability that focuses on
the core operations of the Company while excluding certain items
that do not directly reflect ongoing operating performance. The
Company's management, including the chief operating decision maker,
uses Corporate Adjusted EBITDA to evaluate the Company's performance
and in preparing monthly operating performance reviews and annual
operating budgets. The items excluded from Corporate Adjusted
EBITDA, but included in the calculation of the Company's reported
net income, are significant components of its consolidated
statements of income, and must be considered in performing a
comprehensive assessment of overall financial performance.
Corporate Adjusted EBITDA Margin provides a measure of the Company's
operating profitability. Corporate Adjusted EBITDA is not defined
under GAAP and should not be considered as an alternative measure of
the Company's net income, cash flow or liquidity. Corporate
Adjusted EBITDA and Corporate Adjusted EBITDA Margin amounts
presented may not be comparable to similar measures disclosed by
other companies.
Three months ended Year ended
December 31, December 31,
2011 2010 2011 2010
---- ---- ---- ----
(in thousands) (in thousands)
Reconciliation
of
Net
Income
to
Corporate
Adjusted
EBITDA
------------
Net
income
-
as
reported $33,901 $12,496 $159,550 $131,216
(Increase)
decrease
in
fair
value
of
derivatives 123 (7,356) (3,244) (28,694)
Non-
vehicle
interest
expense 1,646 2,346 10,699 9,647
Income
tax
expense 21,098 14,148 101,692 90,202
Non-
vehicle
depreciation 4,822 5,082 19,381 20,190
Amortization 1,802 1,818 7,505 7,290
Non-
cash
stock
incentives 110 1,531 3,234 4,785
Long-
lived
asset
impairment - 115 - 1,057
Other (6) (3) (249) (25)
Corporate
Adjusted
EBITDA $63,496 $30,177 $298,568 $235,668
======= ======= ======== ========
Reconciliation
of
Corporate
Adjusted
EBITDA
to
Cash
Flows
From
Operating
Activities
----------
Corporate
Adjusted
EBITDA $63,496 $30,177 $298,568 $235,668
Vehicle
depreciation,
net
of
gains/
losses
from
disposal 66,971 91,131 270,927 299,149
Non-
vehicle
interest
expense (1,646) (2,346) (10,699) (9,647)
Change
in
assets
and
liabilities
and
other (20,011) (24,724) 8,498 (63,229)
------- ------- ----- -------
Net
cash
provided
by
operating
activities $108,810 $94,238 $567,294 $461,941
======== ======= ======== ========
Memo:
Net
cash
provided
by
/
(used
in)
investing
activities $(76,093) $88,441 $(402,501) $(59,094)
Net
cash
used
in
financing
activities $(23,542) $(138,533) $(119,298) $(340,098)
First Quarter Full Year
2012 2011 2012 2011 2010
---- ---- ---- ---- ----
(in millions) (in millions)
Reconciliation
of
Pretax
Income
to (forecasted) (actual) (forecasted) (actual) (actual)
Corporate
Adjusted
EBITDA
---------
Pretax
income $60 - $70 $29 $231 - $256 $261 $221
(Increase)
decrease
in
fair
value
of
derivatives
(amounts
not
forecasted
for
2012) - (3) - (3) (29)
Non-
vehicle
interest
expense 2 2 10 11 10
Non-
vehicle
depreciation 4 5 19 19 20
Amortization 2 2 7 7 7
Non-
cash
stock
incentives 2 1 8 3 5
Long-
lived
asset
impairment - - - - 1
Merger-
related
expenses
(g) - - - 5 23
Corporate
Adjusted
EBITDA,
excluding
merger-
related
expenses $70-$80 $36 $275-$300 $303 $258
======= === ========= ==== ====
Corporate Adjusted EBITDA Margin
--------------------------------
(In thousands, except percent)
Three months ended Year ended
December 31, December 31,
2011 2010 2011 2010
---- ---- ---- ----
Corporate
Adjusted
EBITDA $63,496 $30,177 $298,568 $235,668
Total
Revenues 353,730 349,059 1,548,928 1,537,160
Corporate
Adjusted
EBITDA
Margin 18.0% 8.6% 19.3% 15.3%
==== === ==== ====
Merger-related expenses include legal,
litigation, advisory and other fees related
(g) to a potential merger transaction.
SOURCE Dollar Thrifty Automotive Group, Inc.
