TULSA, Okla., Aug. 5 /PRNewswire-FirstCall/ -- Dollar Thrifty Automotive Group, Inc. (NYSE: DTG) today reported results for the second quarter ended June 30, 2008. Net income for the 2008 second quarter was $10.8 million, or $0.49 per diluted share, as compared to net income of $15.3 million, or $0.63 per diluted share, for the comparable 2007 quarter. Net income for the second quarter of 2008 included income of $0.72 per diluted share related to an increase in fair value of derivatives, as compared to income of $0.27 per diluted share in last year's second quarter.

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The non-GAAP net loss for the 2008 second quarter was $5.0 million, or $0.23 loss per diluted share, as compared to net income of $8.7 million, or $0.36 per diluted share for the 2007 second quarter. Non-GAAP net income (loss) excludes the (increase) decrease in fair value of derivatives, net of related tax impact. A reconciliation of non-GAAP to GAAP results is included in Table 3.

'As we previously announced, our second quarter results were below our expectations due to challenges primarily in the areas of revenue per day and vehicle depreciation costs,' said Gary L. Paxton, President and Chief Executive Officer.

For the quarter ended June 30, 2008, the Company's total revenue was $445.7 million, as compared to $451.6 million for the comparable 2007 period. As a result of a 1.3 percent decrease in revenue per day and a slight decrease in rental days, vehicle rental revenue in the 2008 second quarter was $424.4 million, a decrease of 1.6 percent, as compared to the same period in 2007.

Vehicle depreciation costs per vehicle increased approximately 28 percent in the second quarter of 2008 compared to the second quarter of 2007, as the used car market remained soft. The second quarter average fleet decreased 4.4 percent. Vehicle utilization, a measure of fleet efficiency, was 85.7 percent, an improvement of 3.6 percentage points from last year's second quarter. Direct vehicle and operating expenses and selling, general and administrative expenses declined in the second quarter of 2008, as compared to the same period in 2007.

Outlook

The Company expects the operating conditions to remain challenging due to concerns about the strength of the economy, volatility in used car pricing, credit markets and reduced airline capacity. 'In this tough economic environment, we continue to concentrate on the items in our business that we control such as maximizing revenue per day, vehicle utilization, cost reduction and service delivery,' said Mr. Paxton. 'Our focus in today's environment is on executing every day, in every market, with every customer.'

Vehicle rental revenues are estimated to be down one to two percent for the full year of 2008, as compared to last year. The Company estimates that vehicle depreciation costs on a per vehicle basis will be approximately 15 percent higher for the full year 2008 compared to 2007, assuming no disruption in vehicle deliveries from suppliers and stability in the used car market.

The Company reported that as of June 30, 2008, it had $80 million of unrestricted cash and excess vehicle financing capacity of approximately $300 million. The Company is in compliance with all of the financial covenants under its various financing arrangements with lenders as of June 30, 2008.

The Company announced that it is modifying its earnings guidance policy given the lack of visibility in the current operating environment and a desire to focus on longer term business strategies. The Company will no longer provide annual earnings per share or annual Corporate EBITDA guidance, but will continue to provide perspective on management's operating strategies, the business model, and current market trends.

Six Month Results

For the six months ended June 30, 2008, the net loss was $287.2 million, or $13.49 loss per diluted share. For the six months ended June 30, 2007, net income was $20.5 million, or $0.84 per diluted share. The decrease in net income year over year included a $12.45 loss per diluted share related to the impairment of goodwill and other intangible assets and a $0.12 decline in fair value of derivatives in 2008. Total revenue for the period was $842.2 million, a decrease of 0.9 percent over the comparable six months of 2007.

The non-GAAP loss per diluted share for the six months ended June 30, 2008 was $1.00, as compared to $0.76 of non-GAAP earnings per diluted share for the same period in 2007. Non-GAAP net income (loss) excludes the (increase) decrease in fair value of derivatives and the non-cash charges related to the impairment of goodwill and other intangible assets, net of related tax impact. A reconciliation of non-GAAP to GAAP results is included in Table 3.

Web cast and conference call information

The Dollar Thrifty Automotive Group, Inc. second quarter 2008 earnings conference call will be held on Tuesday, August 5, 2008, at 10:00 a.m. (CDT). Those interested in listening to the conference call live may access the call via Web cast at the corporate Web site, http://www.dtag.com, or by dialing 800-988-9640 (domestic) or 210-234-0007 (international) using the pass code 'Dollar Thrifty.' An audio replay of the conference call will be available through August 19, 2008, by calling 888-446-2545 (domestic) or 402-998-1344 (international). The replay will also be available via the corporate Web site for one year.

About Dollar Thrifty Automotive Group, Inc.

Dollar Thrifty Automotive Group, Inc. is a Fortune 1000 Company 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 approximately 70 countries. Dollar and Thrifty have over 800 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 8,500 employees are located mainly in North America, but global service capabilities exist through an expanding international franchise network.