Despite a 12% drop in revenue, Dollar Thrifty Automotive Group increased its third-quarter profit by 59%, to $30.1 million.

The company slashed costs and expenses by 15%. The line item of vehicle depreciation and lease charges fell 25%, to $103 million.

"The difficult steps we have taken over the past 12 months to maximize profitability and cash flow, combined with improvements in residual values, positively impacted this quarter," said Dollar Thrifty CEO Scott Thompson. "We expect both of these factors will continue to benefit future operating results."

The good news on the revenue side, said Thompson, is that the company in October expects year-over-year growth for the first month since May 2008. Increases in revenue per transaction day are expected to fully offset declines in volume.

"We may have seen the worst of the rental revenue declines for this business cycle," Thompson said.

Dollar Thrifty is looking to increase cash flow by selling 5.75 million new shares of common stock at $19.25 per share. The offering, expected to close Nov. 3, is expected to net Dollar Thrifty $105 million.