Thrifty Car Rental 2010 Annual Report Download - page 38

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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:
2008
Revenues:
Vehicle rentals 95.8 % 95.3 % 95.2 %
Other 4.2 4.7 4.8
Total revenues 100.0 100.0 100.0
Costs and expenses:
Direct vehicle and operating 48.5 49.7 52.3
Vehicle depreciation and lease charges, net 19.5 27.6 31.8
Selling, general and administrative 13.6 13.0 12.6
Interest expense, net 5.8 6.2 6.5
Goodwill and long-lived asset impairment 0.1 0.1 21.6
Total costs and expenses 87.5 96.6 124.8
(Increase) decrease in fair value of derivatives (1.9) (1.8) 2.1
Income (loss) before income taxes 14.4 5.2 (26.9)
Income tax expense (benefit) 5.9 2.3 (6.5)
Net income (loss) 8.5 % 2.9 % (20.4) %
Year Ended December 31,
2010 2009
The Company’s revenues consist of:
• Vehicle rental revenue generated from renting vehicles and related ancillary products
and services sold 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 and cap agreements that did not qualify for hedge accounting
treatment.
37