Dollar Rent A Car 2011 Annual Report Download - page 36

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The Company’s operating performance is significantly impacted by increases or decreases in certain key drivers. The table below provides sensitivity to the
Company’s results for changes in these key drivers:
Metric Sensitivity
Estimated
Change in
Corporate
Adjusted EBITDA
Estimated
Change
in EPS
(increase or decrease) (increase or decrease)
Revenue Per Day ("RPD") (a) $1.00 Change in Price
/ RPD $ 26,000,000 $ 0.52
Rental Days (a) (b) 1% Change in Rental
Days $ 4,400,000 $ 0.09
Fleet Costs (c)
$10.00 Change in
Fleet Cost Per Vehicle
Per Month
$ 12,000,000
$ 0.24
Operating Expenses (d)
1% Change in
Operating Expense
Ratio (e)
$ 15,000,000
$ 0.30
Note: All scenarios are on a full year basis and assume an effective consolidated tax rate of 39% and 31.0 million diluted shares.
(a) Assumes 31 million rental days.
(b) Assumes full year revenue per day of $47.15.
(c) Assumes an average fleet of 100,000 vehicles.
(d) Comprised of direct vehicle and operating and selling, general and administrative expenses.
(e) The ratio is derived by dividing operating expenses by total revenue, assuming consolidated total revenue of $1.5 billion.
Results of Operations
The following table sets forth the percentage of total revenues in the Company’s consolidated statements of income:
Year Ended December 31,
2011 2010 2009
Revenues:
Vehicle rentals 95.8% 95.8% 95.3%
Other 4.2 4.2 4.7
Total revenues 100.0 100.0 100.0
Costs and expenses:
Direct vehicle and operating 48.5 48.5 49.7
Vehicle depreciation and lease charges, net 17.5 19.5 27.6
Selling, general and administrative 12.3 13.6 13.0
Interest expense, net 5.0 5.8 6.2
Long-lived asset impairment 0.0 0.1 0.1
Total costs and expenses 83.3 87.5 96.6
(Increase) decrease in fair value of derivatives (0.2) (1.9) (1.8)
Income before income taxes 16.9 14.4 5.2
Income tax expense 6.6 5.9 2.3
Net income 10.3% 8.5% 2.9%
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