Thrifty Car Rental 2006 Annual Report Download - page 34

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Year Ended December 31, 2006 Compared with Year Ended December 31, 2005
Operating Results
The Company had income before income taxes of $88.4 million for 2006 as compared to $130.5 million in
2005.
Revenues
$ Increase/ % Increase/
2006 2005 (decrease) (decrease)
Vehicle rentals 1,538.7$ 1,380.2$ 158.5$ 11.5%
Vehicle leasing 56.8 63.5 (6.7) (10.5%)
Fees and services 46.8 49.4 (2.6) (5.3%)
Other 18.4 14.5 3.9 27.2%
Total revenues 1,660.7$ 1,507.6$ 153.1$ 10.2%
Vehicle rental metrics:
Number of rental days (including 36,642,026 34,909,560 1,732,466 5.0%
franchise aquisitions)
Number of rental days (excluding 35,280,054 34,909,560 370,494 1.1%
franchise aquisitions)
Average revenue per day $41.99 $39.54 $2.45 6.2%
Vehicle leasing metrics:
Average number of vehicles leased 9,886 12,269 (2,383) (19.4%)
Average monthly lease revenue per unit $479 $431 $48 11.1%
(in millions)
Vehicle rental revenue increased 11.5% due to a 6.2% increase in revenue per day totaling $90.0 million
coupled with a 5.0% increase in rental days totaling $68.5 million. Rental days grew by 3.9% due to 2005
franchisee acquisitions, 2006 franchisee acquisitions and greenfield locations that had not yet annualized,
and by 1.1% from same store growth.
Vehicle leasing revenue decreased 10.5%, due to a 19.4% decrease in the average lease fleet totaling
$12.3 million, partially offset by an 11.1% increase in the average lease rate totaling $5.6 million. The
decline in volume was due to fewer vehicles leased to franchisees, which is primarily attributable to the
shift of several locations from franchised operations to corporate operations, and the lease rates
increased as a result of higher vehicle depreciation and financing costs.
Fees and services revenue decreased 5.3% primarily due to lower revenues from franchisees resulting
from the shift of several locations from franchised operations to corporate operations.
Other revenue increased $3.9 million primarily due to an increase in parking revenue of $2.6 million and
an increase of $2.1 million in the market value of investments in the Company’s deferred compensation
and retirement plans. The revenue related to the market value of investments is attributable to the mark-
to-market valuation of the corresponding investments and is offset in selling, general and administrative
expenses and, therefore, has no impact on net income.
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