| Dollar Thrifty Automotive Group, Inc. | |||
| Ticker: | DTG | 5330 East 31st Street | |
| Exchange: | New York Stock Exchange | Tulsa, OK 74135 | |
| Industry: | Service (SIC Code 7514) | (918) 660-7700 | |
| # of Employees: | 5400 | ||
| Type of Shares: | Common Shares | Filing Date: | 11/6/97 | |
| U.S. Shares: | 19,125,000 | Offer Date: | 12/16/97 | |
| Non-U.S. Shares: | 3,375,000 | Filing Range: | $19.00 - $22.00 | |
| Primary Shares: | 20,000,000 | Offer Price: | $20.50 | |
| Secondary Shares: | 2,500,000 | Gross Spread: | $1.13 | |
| Offering Amount: | $461,250,000 | Selling: | $0.68 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | 22,500,000 | |||
| Spin out parent firm: | Chrysler Corporation | |||
| Manager | Tier | Phone |
| CS First Boston | Lead Manager | (212) 325-2000 |
| Goldman, Sachs & Co. | Co-manager | (212) 902-5959 |
| J.P. Morgan Securities Inc. | Co-manager | (212) 648-0517 |
| Salomon Brothers Inc. | Co-manager | (212) 783-2947 |
| Issuer's Law Firm: | Debevoise & Plimpton |
| Bank's Law Firm: | Cleary, Gottlieb, Steen & Hamilton |
| Auditor: | Deloitte & Touche |
Dollar amounts in U.S. millions except for per share data | |||||
| 9 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 9/30/97 | 9/30/96 | 9/30/97 | ||
| Revenue: | $705.59 | $652.88 | $546.23 | Assets: | $1,978.98 |
| Net Income: | -$147.28 | $24.22 | -$141.36 | Curr Assets: | |
| EPS: | Liabilities: | $1,770.99 | |||
| Prior EPS: | $229.88 | $231.58 | Curr Liabilities: | ||
| Cash Flow/Oper: | $301.91 | $290.41 | $139.18 | Equity: | $207.99 |
| Cash Flow/Fin: | -$518.54 | -$370.76 | Cash: | $5.16 | |
| Cash Flow/Inv: | -$518.54 | ||||
| Business Description |
| The company two vehicle rental companies, Dollar and Thrifty, operate separate daily vehicle rental businesses. They also license independent franchisees to rent vehicles under their brands. The company operates 833 locations in the U.S. and Canada. Under the Dollar and Thrifty brands, the Group markets value-priced rental vehicles appealing to leisure customers, including foreign tourists, and to small businesses and independent business travelers. While the two companies have similar customers, they have different approaches to the vehicle rental market. In the United States, Dollar derives a majority of its revenue from company-owned stores located at major airports and has a significant market share of international tour and leisure rentals. Thrifty derives its revenue primarily from franchising fees and services. Thrifty's franchisees operate in both the local and airport markets. |
| Competition |
| There is intense competition in the vehicle rental industry on the basis of price, service levels, vehicle quality, the availability of vehicles and the convenience and condition of rental locations. Dollar operates mainly in the U.S. airport market, although compared to its competitors it relies more heavily on discretionary tour and other leisure customers and business customers with no organizational or corporate affiliation programs. Dollar's franchisees have a similar customer profile. In any given location, Dollar may compete with national, regional and local vehicle rental companies, many of which have greater financial resources than the Group. Dollar's principal competitors for discretionary business and leisure travelers are Alamo Rent-a-Car, Inc., Avis Rent A Car, Inc., Budget Group, Inc., Hertz Corporation and National Car Rental System, Inc. Dollar competes primarily on the basis of price and customer service. Thrifty's U.S. franchisees and company-owned stores generally compete for cost-conscious consumers with Alamo, Avis, Budget, Dollar, Hertz and National. Enterprise Rent-A-Car Company and local and regional rental companies are major competitors in the local market. They compete on the basis of location, service and well-established customer relationships. Most Thrifty franchisees and company-owned stores compete in the local market for retail general use business rather than insurance replacement rentals. The Canadian vehicle rental markets are also intensely competitive. The vast majority of the Canadian market is operated either directly or through franchisees of the major U.S. vehicle rental companies, including Budget, Avis, Hertz and National, as well as Dollar and Thrifty. |
| Business Plan |
| The Company's main objectives are to increase revenues and improve profitability by strengthening its value-priced brands. The key elements of this strategy are: (I) Capitalize on Changing Industry Dynamics, (ii) Build on the Company's Niches in the Vehicle Rental Market, (iii) Capitalize on Opportunities for Operating Efficiencies, (iv) Invest in Strategic Information and Reservation Systems, (v) Expand International Operations, (vi) Develop Opportunities for Business Expansion into Related Areas and (vii) Link Compensation to Performance to Encourage Growth. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to provide collateral for fleet financing as part of the financing plan. |
| Name of Shareholder | % Owned Before | % Owned After |
| Chrysler Corporation | 100.00% | 0.00% |
| Officer Name | Title | Age |
| Joseph E. Cappy | Chairman of the Board, Chief Executive Officer, President and Director | 63 |
| Donald M. Himelfarb | Executive Vice President and Director, and President -- Thrifty | 52 |
| Gary L. Paxton | Executive Vice President and Director, and President -- Dollar | 51 |
| Steven B. Hildebrand | Vice President, Chief Financial Officer and Treasurer | 43 |