Dollar Thrifty First Quarter Loss

Monday, May 12th 2008, 1:25 pm
By: News On 6

TULSA, Okla. (AP) _ Dollar Thrifty Automotive Group Inc., parent company of the Dollar Rent A Car and Thrifty Car Rental brands, said Monday it swung to a first-quarter loss due to a hefty charge related to goodwill and reacquired franchise rights.

The company reported a loss of $297.9 million, or $14.07 per share, compared with a profit of $5.2 million, or 21 cents per share, in the prior year.

Quarterly results included a charge of $12.52 per share related to goodwill and reacquired franchise rights and 78 cents per share for a decline in derivative fair value. Excluding these items, the company's quarterly loss was $16.2 million, or 77 cents per share.

Analysts polled by Thomson Financial expected a loss of 18 cents per share. Estimates typically exclude one-time items.

``As we had anticipated, weakness in demand and pricing in January, coupled with an increase in fleet costs, adversely affected our performance in the quarter,'' President and Chief Executive Gary L. Paxton said in a statement.

For the period ended March 31, revenue dipped 0.4 % to $396.5 million from $398 million a year earlier.

Revenue from vehicle rentals grew to $378 million from $370.6 million during the quarter.