Dollar Thrifty Automotive Group Reports Record Quarterly Profit

TULSA, OK - November 2, 2010: Dollar Thrifty Automotive Group, Inc. today reported record results for the third quarter ended September 30, 2010. Net income for the 2010 third quarter was $49.2 million, or $1.62 per diluted share, compared to net income of $30.1 million, or $1.29 per diluted share, for the comparable 2009 quarter. Net income for the third quarter of 2010 included income of $0.13 per diluted share, compared to income of $0.15 per diluted share in last year's third quarter, both of which related to increases in fair value of derivatives.

Non-GAAP net income for the 2010 third quarter was $45.8 million, or $1.51 per diluted share, compared to non-GAAP net income of $26.8 million, or $1.15 per diluted share, for the 2009 third quarter. Non-GAAP net income excludes the increase in fair value of derivatives and the non-cash charges related to the impairment of long-lived assets, net of related tax impact. The Company noted that both its GAAP and non-GAAP pretax earnings were negatively impacted by $11.9 million of merger-related expenses incurred during the third quarter of 2010. These merger-related expenses represent approximately $0.23 per diluted share for the third quarter of 2010.

The Company reported Corporate Adjusted EBITDA for the third quarter of 2010 of $81.8 million, compared to $54.7 million in the third quarter of 2009. Excluding the $11.9 million of merger-related expenses incurred during the quarter, Corporate Adjusted EBITDA for the third quarter of 2010 was $93.7 million, an increase of 71 percent compared to the third quarter of 2009. Reconciliations of non-GAAP to GAAP results are included in Tables 3 and 4.

"In spite of a slower than expected economic recovery and a reduction in car sale gains compared to the third quarter of 2009, the Company delivered its seventh consecutive quarter of year-over-year double-digit growth in Corporate Adjusted EBITDA. This quarter is also the best quarterly performance in the Company's sixty year history," said President and Chief Executive Officer, Scott L. Thompson. "Our employees continued to deliver customer service improvements, while achieving record financial performance, both of which are key to achieving our overall goal of maximizing return on assets," said Thompson.

For the quarter ended September 30, 2010, the Company's total revenue was $443.5 million, as compared to $438.9 million for the comparable 2009 period. Vehicle rental revenues were up 1.6 percent for the quarter, driven by a 1.4 percent increase in transaction days, and a 20 basis point improvement in revenue per day. The increase in rental revenue was partially offset by a decline in vehicle leasing revenue resulting from the planned reduction in the Company's licensee leasing program. The average fleet for the third quarter of 2010 was up 1.7 percent on a year-over-year basis compared to the third quarter of 2009, while the ending fleet was down 50 basis points from the third quarter of 2009.

"We are extremely pleased with the results for the quarter, realizing increases in both transaction days and revenue per day, while continuing to decrease expenses across all areas of the Company. In spite of a difficult year-over-year comparison resulting from a 12 percent improvement in revenue per day during the third quarter of 2009, we achieved a modest increase in revenue per day in the third quarter of 2010," said Thompson.

Vehicle depreciation per unit for the third quarter of 2010 totaled $262 per month as the Company continued to benefit from the overall strength of the used vehicle market and previously announced changes to fleet planning and remarketing operations. The Company noted that gains on sales of risk vehicles, a component of vehicle depreciation, totaled approximately $10 million in the third quarter of 2010, declining from $16.8 million in the third quarter of 2009. Vehicle utilization was 84.0 percent compared to 84.2 percent in the third quarter of 2009.

Selling, general and administrative expenses (SG&A) in the third quarter of 2010 increased $4.6 million compared to the 2009 third quarter due to $11.9 million in merger-related expenses incurred during the quarter, partially offset by timing differences in certain compensation-related accruals. Direct vehicle and operating expenses (DVO) in the third quarter of 2010 declined $9.2 million, or 4.3 percent, on higher revenues, compared to the third quarter of 2009. As a percentage of revenues, operating expenses (both SG&A and DVO) totaled 59.4 percent in the third quarter of 2010, compared to 61.1 percent in the third quarter of 2009. Excluding $11.9 million of merger-related expenses, as a percentage of revenues, operating expenses totaled 56.7 percent in the third quarter of 2010.

Interest expense, net of interest income, for the third quarter of 2010 declined $2.2 million on a year-over-year basis primarily as a result of approximately $260 million in net reduction in the debt outstanding for 2010 compared to 2009, partially offset by reduced interest income as the Company deployed the excess cash balances on hand in 2009 to reduce indebtedness, and to reinvest in the rental fleet.

Nine Month Results

For the nine months ended September 30, 2010, net income was $118.7 million, or $3.93 per diluted share, compared to net income of $33.6 million, or $1.47 per diluted share, for the comparable period in 2009. Net income for the nine months ended September 30, 2010 included income of $0.41 per diluted share, compared to income of $0.53 per diluted share, for the nine months ended September 30, 2009, both of which related to increases in fair value of derivatives.

Non-GAAP net income for the nine months ended September 30, 2010 was $106.8 million, or $3.53 per diluted share, compared to non-GAAP net income of $21.9 million, or $0.96 per diluted share, for the same period in 2009. Non-GAAP net income excludes the increase in fair value of derivatives and the non-cash charges related to the impairment of long-lived assets, net of related tax impact. The Company noted that both its GAAP and non-GAAP pretax earnings for the nine months ended September 30, 2010 were negatively impacted by $20.4 million of merger-related expenses. These merger-related expenses represent approximately $0.39 per diluted share for the nine months ended September 30, 2010.

The Company reported Corporate Adjusted EBITDA for the nine months ended September 30, 2010 of $205.5 million, compared to $73.2 million for the nine months ended September 30, 2009. Excluding year-to-date merger-related expenses of $20.4 million, Corporate Adjusted EBITDA for the nine months ended September 30, 2010 was $225.9 million. Reconciliations of non-GAAP to GAAP results are included in Tables 3 and 4.

Liquidity and Capital Resources

As of September 30, 2010, the Company had $519 million in cash and cash equivalents and an additional $290 million in restricted cash and investments primarily available for the purchase of vehicles and/or repayment of vehicle financing obligations. The Company's tangible net worth as of September 30, 2010 was $497 million.

As previously announced, during October, the Company completed a $450 million, 364-day variable funding note facility, which was completely undrawn upon issuance. With the completion of this facility, the Company has added $950 million of new U.S. fleet financing during 2010, providing significant additional capacity to address future maturities of existing fleet debt. The Company's next scheduled fleet debt maturity is $600 million of medium-term notes that begin amortizing in December 2010.

2010 Outlook €“ Fourth Quarter Update

In addition to announcing results for the quarter, the Company provided additional guidance with respect to its fourth quarter outlook and reaffirmed its previously announced guidance for fleet costs for 2011.

The Company noted that it expects rental revenue for the fourth quarter of 2010 to increase 2 to 4 percent compared to the fourth quarter of 2009, primarily as a result of increased transaction days. The Company noted that gains from vehicle dispositions are expected to continue to decline in the fourth quarter, and as a result, the Company expects depreciation per unit per month to be within a range from $295 to $305 per unit per month during the fourth quarter of 2010.

Based on reported results and the current outlook for the fourth quarter, the Company reaffirmed that it expects Corporate Adjusted EBITDA, excluding merger-related expenses, to be within a range of $240 million to $260 million for the full year of 2010. The Company's 2009 Corporate Adjusted EBITDA was $99.4 million.

The Company reaffirmed its expected fleet cost for 2011 to be within a range of $300 to $310 per unit per month.

"We believe the Company is in the best competitive position in its history as a result of the significant growth in the Company's liquidity and Corporate Adjusted EBITDA, combined with minimal corporate leverage, substantial tangible net worth, a diversified rental fleet, and a dedicated workforce," said Thompson.

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 300 corporate locations in the United States and Canada, with approximately 6,000 employees located mainly in North America. In addition to its corporate operations, the Company maintains global service capabilities through an expansive franchise network of over 1,250 franchises in 81 countries.