Thrifty Car Rental 2006 Annual Report Download - page 33
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Results of Operations
The following table sets forth the percentage of total revenues in the Company’s consolidated statements
of income:
Revenues:
Vehicle rentals 92.7 % 91.6 % 89.5 %
Vehicle leasing 3.4 4.2 5.7
Fees and services 2.8 3.3 3.9
Other 1.1 0.9 0.9
Total revenues 100.0 100.0 100.0
Costs and expenses:
Direct vehicle and operating 49.8 52.3 49.4
Vehicle depreciation and lease charges, net 22.9 19.6 22.5
Selling, general and administrative 15.6 15.6 15.9
Interest expense, net 5.8 5.8 6.4
Total costs and expenses 94.1 93.3 94.2
(Increase) decrease in fair value of derivatives 0.6 (2.0) (1.7)
Income before income taxes 5.3 8.7 7.5
Income tax expense 2.2 3.6 3.0
Income before cumulative effect of
a change in accounting principle 3.1 5.1 4.5
Cumulative effect of a change in
accounting principle - - 0.2
Net income 3.1 % 5.1 % 4.7 %
Year Ended December 31,
2006 2005 2004
The Company’s revenues consist of:
• Vehicle rental revenue generated from renting vehicles to customers through company-owned
stores,
• Vehicle leasing revenue generated from leasing vehicles to franchisees,
• Fees and services revenue generated from continuing franchise fees and providing services to
franchisees, and
• Other revenue generated from miscellaneous sources.
The Company’s expenses consist of:
• Direct vehicle and operating expense related to the rental of revenue-earning vehicles to
customers and the leasing of vehicles to franchisees,
• Vehicle depreciation and lease charges net of gains and losses on vehicle disposal and
payments received on manufacturer promotional and incentive programs,
• Selling, general and administrative expense, which primarily includes headquarters personnel
expenses, advertising and marketing expenses, most information technology expenses and
administrative expenses, and
• Interest expense, net which includes interest expense on vehicle related debt, net of interest
earned on restricted and unrestricted cash.
The Company’s (increase) decrease in fair value of derivatives consists of the changes in the fair market
value of its interest rate swap agreements that did not qualify for hedge accounting treatment.
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