TULSA, Okla., June 25 /PRNewswire-FirstCall/ -- Dollar Thrifty Automotive Group, Inc. (NYSE: DTG) today announced that it has opened 15 new U.S. franchise locations and two corporate locations since Jan. 1, 2010.
"We are very pleased with our current expansion efforts, which are expected to augment our organic growth from an improving economy," said Scott Thompson, president and chief executive officer of the Company. "The added franchise locations expand our value brands in a capital efficient way while our new corporate-owned locations represent long-term revenue growth opportunities."
The Company's new corporate stores serve two of the top 100 airports in the U.S. They include the re-establishment of the Dollar and Thrifty brands in Des Moines, Iowa, scheduled to open Aug. 1, 2010, and also the addition of the Thrifty brand to the Company's existing Dollar corporate location in Minneapolis, Minn.
The Company's franchise expansion includes Dollar Rent A Car openings in Savannah, Ga., Panama City Beach, Fla. and Chattanooga, Tenn., as well as Thrifty Car Rental franchises in Panama City Beach, Fla. and Chattanooga, Tenn. The Company franchised its corporate location in Little Rock, Ark., with the licensee operating both the Dollar and Thrifty brands there.
Additionally, Thrifty Car Sales has recently opened a number of dealerships, which provide retail used vehicles sales and serve the rental needs of the local market. These operations will provide the Company with additional brand exposure and incremental income. These new dealerships include Pasco, Wash., Hollidaysburg, Pa, Coopersburg, Pa., Bowling Green, Ky., Hurricane, W.Va., Lexington, Ky., New Carlisle, Ohio and Pensacola, Fla.
Dollar and Thrifty have over 1,550 corporate and franchised worldwide locations including approximately 600 in the U.S. and Canada.
About Dollar Thrifty Automotive Group, Inc.
Dollar Thrifty Automotive Group, Inc. is headquartered in Tulsa, Oklahoma. Driven by the mission "Value Every Time," the Company's brands, Dollar Rent A Car and Thrifty Car Rental, serve value-conscious travelers in over 80 countries. Dollar and Thrifty have over 600 corporate and franchised locations in the United States and Canada, operating in virtually all of the top U.S. and Canadian airport markets. The Company's approximately 6,000 employees are located mainly in North America, but global service capabilities exist through an expanding international franchise network. 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 that could materially affect future results include:
- the impact of our pending acquisition by Hertz Global Holdings, Inc. or developments relating to the proposed transaction, including, among other things, diversion of management's attention from day-to-day operations, a loss of key personnel, disruption of our operations, an inability to obtain regulatory and stockholder approvals on the terms and schedule contemplated, and the impact of pending or future litigation relating to the proposed transaction;
- the impact of persistent pricing and demand pressures, particularly in light of the continuing volatility in the global financial and credit markets and concerns about global economic prospects and the timing and strength of a recovery, and whether consumer confidence and spending levels will continue to improve;
- whether ongoing governmental and regulatory initiatives in the United States and elsewhere to stimulate economic growth will be successful;
- the impact of pricing and other actions by competitors, particularly as they increase fleet sizes in anticipation of seasonal activity;
- our ability to manage our fleet mix to match demand and meet our target for vehicle depreciation costs, particularly in light of the significant increase in the 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 ability to reduce our fleet capacity as and when projected by our plans;
- whether efforts to revitalize the U.S. automotive industry are successful, particularly in light of our dependence on vehicle supply from U.S. automotive manufacturers;
- the effectiveness of actions we take to manage costs and liquidity and whether further reductions in the scope of our operations will be necessary in light of the economic environment;
- our ability to obtain cost-effective financing as needed (including replacement of asset backed notes and other indebtedness as it comes due) without unduly restricting operational flexibility;
- our ability to comply with financial covenants or to obtain necessary amendments or waivers, and the impact of the terms of any required amendments or waivers, such as potential reductions in lender commitments;
- our ability to manage the consequences under our financing agreements of an event of bankruptcy with respect to any of the monoline insurers that provide credit support for our asset backed financing structures, including our ability to obtain any necessary waivers or consents with respect to recent developments involving Ambac;
- the potential for significant cash tax payments in 2010 as a result of the reduction in our fleet size and the resulting impact of our inability to defer gains on the disposition of our vehicles under our like-kind exchange program;
- airline travel patterns, including disruptions or reductions in air travel resulting from airline bankruptcies, industry consolidation, capacity reductions and pricing actions or other events;
- local market conditions where we and our franchisees do business, including whether franchisees will continue to have access to capital as needed;
- volatility in gasoline prices;
- access to reservation distribution channels;
- disruptions in the operation or development of information and communication systems that we rely on, including those relating to methods of payment;
- 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; and
- the impact of natural catastrophes and 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.
H. Clifford Buster III
Chief Financial Officer
Director – Investor Relations
SOURCE Dollar Thrifty Automotive Group, Inc.