Dollar Thrifty has seen profits edge up as the travel sector continues to rebound from the global financial crisis.
Non-GAAP net income for the fourth quarter at the car rental giant stood at $8.3 million, or $0.27 per diluted share, compared $7.7 million, or $0.28 per diluted share, for the 2009 fourth quarter.
The Company reported Corporate Adjusted EBITDA for the fourth quarter of 2010 of $30.2 million, compared to $26.2 million in the fourth quarter of 2009.
“This quarter marks our eighth consecutive quarter of year-over-year double-digit growth in Corporate Adjusted EBITDA,” explained said Dollar Thrifty president Scott Thompson.
“Additionally, excluding the impact of merger-related expenses, 2010 full year results represent an approximate $100 million improvement in Corporate Adjusted EBITDA compared to the previous best year in the Company’s history.”
The Company noted both its GAAP and non-GAAP earnings were negatively impacted by $2.1 million in merger-related expenses incurred during the fourth quarter of 2010.
For the quarter ended December 31st 2010, the company’s total revenue totalled $349 million, as compared to $345 million for the comparable 2009 period.
Vehicle rental revenues for the quarter were up 1.6 per cent, driven primarily by a 2.8 percent increase in transaction days that was partially offset by a 1.2 percent decrease in revenue per day.
“Revenue for the quarter was in line with our expectations, as overall transaction volumes continued to reflect an improving travel market,” added Thompson.
“We experienced a minor decline in fourth quarter revenue per day as we faced a slightly more competitive market and a very difficult comparison, having achieved a 12 per cent increase in revenue per day in the fourth quarter of 2009.”
Announcing its own financial results for the fourth quarter last week, Avis said it was seeking closure on a proposed merger with Dollar Thrifty.
Regulators are presently assessing whether the proposed deal will require antitrust clearance, with Avis waiting to see what action, if any, it needs to take before the takeover can be cleared.
“Our discussions with the US Federal Trade Commission have been very constructive, although we are not yet at a point of finding a resolution,” Avis chief executive Ronald Nelson said.