Travel rebound boosts Dollar Thrifty Q1 profit - Car Rental News
Travel rebound boosts Dollar Thrifty Q1 profit
Car Rental News - 05/05/2011
Dollar Thrifty Automotive reported market-beating financials for Q1.
US car hire group Dollar Thrifty Automotive has turned in some market-beating results for the first quarter of the year. The positive numbers were driven by a rebound in travel and allowed the group to boost the profit outlook for the whole year.
Dollar Thrifty, which was recently the focus of a long takeover fight between Hertz and Avis Budget, announced a healthy adjusted earnings-per-share figure for the first three months of $0.47, versus a forecast of $0.38.
Dollar Thrifty revised its total revenues for the quarter to 31 March, 2011, to $348.3 million. This was consistent with the same period last year but beat the expected $345.3 million.
The company’s net income in Q1 stood at $16.5 million, compared to $27.3 million in the same period of 2010. Dollar Thrifty said that it had expected the drop in net income and noted the decline was primarily a result of deciding to cut vehicle dispositions in the quarter, which led to lower gains on the sale of vehicles, compared to the same quarter of last year.
The group also adjusted EBITDA for the year. It says 2011 corporate adjusted EBITDA should come in at between $260 million and $285 million. It had previously forecast between $235 million and $260 million.
The company admitted that the winter storms of January and February had hurt the first quarter but business recovered in March. The group operates the Thrifty Car Rental and Dollar Rent A Car hire brands.