Dollar Thrifty Automotive Group Updates Earnings Information
19 May 1998
Dollar Thrifty Automotive Group Updates Earnings Information TULSA, Okla., May 18 -- Dollar Thrifty Automotive Group, Inc.
, today announced that second quarter earnings are expected to be
below current analysts' estimates due to operating results at Dollar Rent A
Car including lower than expected pricing in the western region, and lower
retail and international tour rentals in Florida.
"Both of our operating companies continue to make additional progress in
executing their respective growth strategies and we expect to see improved
operating results on a year-to-year basis," Joseph E. Cappy, Chairman, CEO and
President said. "Dollar's second quarter results will be impacted by a
pricing weakness in the western region, and reduced international tour
business and lower rental volumes in Florida. Increased pricing pressures,
particularly due to new competitors at Los Angeles International Airport, and
reduced rental volumes in Florida combined with lower numbers of European
visitors resulting from the World Cup soccer games being held in Paris during
June, are expected to reduce our second quarter earnings. We still believe
the industry fundamentals are very good and that the summer peak travel season
will be strong."
Dollar Thrifty Automotive Group owns Dollar Rent A Car and Thrifty Car
Rental. The Dollar and Thrifty systems have worldwide locations in
approximately 900 corporate and franchised locations in the United States and
Canada. The companies provide car rental services primarily to value-
conscious discretionary and leisure travelers. Dollar has on-airport locations
at major airports throughout the United States with a focus on serving the
leisure and international tour business. Thrifty serves both the airport and
local car rental markets and is a leading lessor or rental vehicles to car
rental franchisees in North America.
Some of the statements contained in this press release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Although Dollar Thrifty Automotive Group, Inc.
believes such forward-looking statements are based upon reasonable
assumptions, such statements are not guarantees of future performance and
certain factors could cause results to differ materially from current
expectations. These factors include: economic and competitive conditions in
markets and countries where our customers reside and where our companies and
their franchisees operate; changes in capital availability or cost; costs and
other terms related to the acquisition and disposition of automobiles; and
certain regulatory and environmental matters.