Thrifty Car Rental 2009 Annual Report Download - page 34

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Results of Operations
The following table sets forth the percentage of total revenues in the Company’s consolidated statements
of operations:
2007
Revenues:
Vehicle rentals 95.3 % 95.2 % 95.2 %
Other 4.7 4.8 4.8
Total revenues 100.0 100.0 100.0
Costs and expenses:
Direct vehicle and operating 49.7 52.3 50.4
Vehicle depreciation and lease charges, net 27.6 31.8 27.1
Selling, general and administrative 13.0 12.6 13.1
Interest expense, net 6.2 6.5 6.3
Goodwill and long-lived asset impairment 0.1 21.6 0.2
Total costs and expenses 96.6 124.8 97.1
(Increase) decrease in fair value of derivatives (1.8) 2.1 2.2
Income (loss) before income taxes 5.2 (26.9) 0.7
Income tax expense (benefit) 2.3 (6.5) 0.6
Net income (loss) 2.9 % (20.4) % 0.1 %
Year Ended December 31,
2009 2008
The Company’s revenues consist of:
• Vehicle rental revenue generated from renting vehicles to customers through company-
owned stores, and
• Other revenue generated from leasing vehicles to franchisees, continuing franchise and
service fees, parking income and 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,
• Selling, general and administrative expense, which primarily includes headquarters personnel
expenses, advertising and marketing expenses, most IT expenses and administrative
expenses,
• Interest expense, net, which includes interest expense on vehicle related debt and non-
vehicle debt, net of interest earned on restricted and unrestricted cash, and
• Goodwill and long-lived asset impairment relates to the write-off of goodwill, reacquired
franchise rights, software no longer in use and property and equipment deemed to be
impaired.
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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