Autobytel Inc. Delivers Second Consecutive Quarter of EBITDA Profitability
IRVINE, Calif., 2002, April 25, 2002
Updated
Jun 10, 2004 21:59:09
Rating
27 ( -6 -22.22% )
Description: -- Autobytel Inc. (Nasdaq:ABTL), a leading Internet automotive marketing services company, today announced first quarter 2002 financial results. Highlights include:
-- Pro Forma EBITDA of $0.02 per Share
-- Cash Balance of $27.3 Million
-- Autobytel Europe Restructuring Completed
-- Full Year 2002 EBITDA Guidance of $0.07-$0.09 per Share
-- Expects to Achieve Net Income Profitability in Fourth Quarter "We are pleased that Autobytel delivered its second consecutive quarter of EBITDA profitability on a pro forma basis," said Jeffrey Schwartz, President and CEO of Autobytel Inc. "The benefits of market leadership and our focus on operational efficiency are starting to take hold. In the first quarter, we delivered growth in both revenue and pro forma EBITDA, reported strong dealer coverage with 8,900 relationships, successfully launched a new dealer product, and sent more than one million qualified car buyers to our dealers. By all counts, we view this quarter as a success and are entering the second quarter with momentum." Revenue for the first quarter ended March 31, 2002 totaled $20.7 million, compared with revenue of $16.7 million for the first quarter ended March 31, 2001, and revenue of $20.5 million in the fourth quarter ended Dec. 31, 2001, all on an as reported basis. Pro forma earnings before interest, taxes, depreciation, amortization and one-time charges (EBITDA) for the first quarter of 2002 were $0.6 million or $0.02 per share. This compares with pro forma EBITDA of $(3.5) million or $(0.17) per share for the first quarter ended March 31, 2001 and pro forma EBITDA of $0.2 million or $0.01 per share for the fourth quarter ended Dec. 31, 2001. The company reported a net loss for the first quarter ended March 31, 2002 of $18.5 million or $(0.59) per share, including a one-time charge of $19.2 million related to the restructuring of Autobytel Europe (ABTE). This compares with a net loss for the first quarter ended March 31, 2001 of $4.1 million or $(0.20) per share, and a net loss for the fourth quarter ended Dec. 31, 2001 of $0.9 million or $(0.03) per share. As of March 31, 2002, cash, cash equivalents and restricted cash were $27.3 million, a decrease of $5.7 million from the domestic cash balance at Dec. 31, 2001. The company no longer consolidates the financial results of ABTE and therefore does not show international cash on its balance sheet as of March 31, 2002. Autobytel Europe (ABTE) completed its restructuring in the first quarter. As part of the restructuring of ABTE, the company reduced its ownership in ABTE to 49%. In connection with the restructuring of ABTE, a charge of $19.2 million was recorded in the first quarter of 2002 to write-off part of the investment in ABTE. The company's original cash investment in ABTE was $5 million. Business Outlook "By focusing rigorously on our core business of providing marketing services to automotive manufacturers and dealers, we have set the stage to achieve net income profitability in the fourth quarter of this year," said Schwartz. "In addition, we are comfortable with the high end of our guidance for both revenue and EBITDA for the full year." The company expects revenue for the second quarter of 2002 to be approximately $21 million and EBITDA per share to be approximately $0.02. The company reiterated its guidance for the full year 2002, expecting revenue to be between $85 and $90 million and EBITDA per share to be between $0.07 and $0.09. The company attributes the guidance to the following factors: -- Improved pricing dynamics due to its market leadership position
-- Development and implementation of marketing technology that should yield margin improvements
-- Successful development and launch of new automotive marketing products
-- Ongoing operational efficiencies and business model optimization programs
-- Deepening of automotive manufacturer and major dealer group relationships Highlights for the First Quarter The company continues to recognize revenues in four business categories: Program Fees, Enterprise Sales, Advertising, and Other Products and Services. Revenues: Autobytel reported first quarter revenues of $20.7 million, of which, $15.4 million was related to Program Fees, $2.0 million was related to Enterprise Sales, $1.8 million was related to Advertising and $1.5 million was related to Other Products and Services. Pro Forma Operating Expenses: Total pro forma operating expenses in the first quarter of 2002 were $20.1 million. Sales and marketing expenses totaled $12.2 million. These expenses include online marketing programs and dealer sales costs. Product development and technology costs totaled $4.9 million. General and administrative costs totaled $3.0 million. Unique Visitor Count: Autobytel's four Web site properties, Autobytel.com, Autoweb.com, Carsmart.com and AutoSite.com, received more than 3.3 million unique visitors in March of 2002 according to Nielsen Net Ratings, positioning the company as the number one online car-buying network. Dealer Count: The company reported approximately 8,900 dealer relationships, 6,200 of which are program dealer relationships. The remaining 2,700 were accounted for under the company's enterprise sales initiatives. Purchase Requests: The company delivered more than 1 million purchase requests to its dealers during the first quarter of 2002. The company expects that the development and launch of yield marketing technology should optimize receipt and delivery of purchase requests and enhance revenues and margins. Headcount: As of March 31, 2002, the company had 261 employees down from 264 in the fourth quarter of 2001. Used Car Program: The company continues to focus on its used car program, unique in the industry for its real-time inventory and dealer-backed certified vehicles. Monthly vehicle searches increased 30% from 3.9 million in January to more than 5 million in March. The program had more than 130,000 vehicle listings at the end of the first quarter. "We are pleased with the growth we have seen in the program in the first quarter as both the number of vehicle searches and the number of qualified car buyers increased substantially. Clearly, the market for online used vehicles is expanding and we will continue to develop our used car program to meet this demand, sensibly, efficiently and without sacrificing the quality that both customers and dealers have come to expect from us." New Product Launch: The company launched RPM (Retention-Performance-Marketing), the next generation dealership service reminder program. RPM is a customer relationship management (CRM) program that makes it more affordable for automotive manufacturers and dealers to retain their car-buying and service customers. "It's clear from initial sign-ups that dealerships and manufacturers want more integrated marketing services," commented Schwartz. "They want a single, best-in-class vendor for all profit centers across the e-mail, Web, print and telephony fulfillment channels." Pro Forma Results The pro forma operating results for the first quarter of 2002 exclude the following items on the company's statements of operations: -- International restructuring and related charges -- Depreciation, amortization and stock-based compensation A reconciliation of GAAP (Generally Accepted Accounting Principles) to pro forma is included in the attached financial statements. Conference Call In conjunction with Autobytel's first quarter 2002 earnings release, there will be a conference call broadcast live over the Internet today, April 25, 2002, at 4:30 p.m. EDT. Links to the webcast conference call follow:
The Webcast will be archived within 24 hours of the end of the call until the next quarter earnings announcement. To listen to the archived webcast go to:
Autobytel Inc. CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share and per share data) ASSETS
March 31, December 31, 2002 2001 (unaudited) Current assets: Domestic cash and cash equivalents $ 24,315 $ 30,006 International cash and cash equivalents -- 28,784 Restricted cash 3,017 3,047 Accounts receivable, net of allowance for doubtful accounts of $5,161 and $7,109, respectively 8,850 8,519 Prepaid expenses and other current assets 3,295 4,419 Total current assets 39,477 74,775 Property and equipment, net 2,901 2,889 Capitalized software, net 4,732 4,319 Investment in unconsolidated subsidiary 4,779 -- Goodwill, net 8,644 8,644 Other assets 154 154 Total assets $ 60,687 $ 90,781
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable $ 6,531 $ 9,108 Accrued expenses 4,638 9,005 Deferred revenues 4,634 4,708 Customer deposits 82 92 Other current liabilities 301 300 Total current liabilities 16,186 23,213 Total liabilities 16,186 23,213
Minority interest -- 7,173
Commitments and contingencies
Stockholders' equity: Preferred stock, $0.001 par value; 11,445,187 shares authorized -- -- Common stock, $0.001 par value; 200,000,000 shares authorized; 31,137,099 and 30,969,377 shares issued and outstanding, respectively 31 31 Additional paid-in capital 203,460 203,280 Accumulated other comprehensive loss (45) (2,438) Accumulated deficit (158,945) (140,478) Total stockholders' equity 44,501 60,395 Total liabilities and stockholders' equity $ 60,687 $ 90,781
Note: Balances as of March 31, 2002 exclude Autobytel.Europe.
Autobytel Inc. CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended March 31 (Amounts in thousands, except share and per share data) (unaudited)
First Quarter 2002(a) First Quarter 2001 As Pro Forma Pro As Pro Forma Pro Reported Adjustments Forma Reported Adjustments Forma
Operating expenses: Sales and marketing 12,260 (31)(b) 12,229 13,346 (67)(b) 13,279 Product and technology development 5,753 (834)(b) 4,919 3,988 (202)(b) 3,786 General and administrative 3,057 (56)(b) 3,001 3,604 (519)(b) 3,085 International restructuring and related charges 19,183 (19,183)(c) -- -- -- -- Domestic restructuring and other charges -- -- -- 992 (992)(d) -- Total operating expenses 40,253 (20,104) 20,149 21,930 (1,780) 20,150
Loss from operations, as reported (19,520) (5,277) Pro forma EBITDA(e) 20,104 584 1,780 (3,497)
Interest income, net 391 -- 391 1,150 -- 1,150 Foreign currency exchange gain (loss) 1 -- 1 717 -- 717 Equity loss in unconsolidated subsidiary (200) -- (200) (500) -- (500) Income (loss) before minority interest and income taxes (19,328) 20,104 776 (3,910) 1,780 (2,130) Minority interest 866(f) -- 866 (128) -- (128) Income (loss) before income taxes (18,462) 20,104 1,642 (4,038) 1,780 (2,258) Provision for income taxes 5 -- 5 38 -- 38 Net income (loss) $(18,467)$ 20,104 $ 1,637 $ (4,076)$ 1,780 $(2,296)
Loss from operations/EBITDA per share Basic $ (0.63) $ 0.02 $ (0.26) $ (0.17) Diluted $ (0.63) $ 0.02 $ (0.26) $ (0.17)
Net loss per share Basic $ (0.59) $ 0.05 $ (0.20) $ (0.11) Diluted $ (0.59) $ 0.05 $ (0.20) $ (0.11)
Shares used in computing loss per share Basic 31,069,171 31,069,171 20,354,430 20,354,430 Diluted 31,069,171 35,757,115 20,354,430 20,354,430
Notes:
(a) Results in the first quarter of 2002 include Autoweb which was acquired on Aug. 14, 2001. (b) Adjustments for depreciation, amortization and stock compensation expenses of $921 and $788 in the first quarter of 2002 and 2001, respectively. (c) Charges related to the change in Autobytel.Europe's capital structure of $15,183 and termination of contractual arrangements of $4,000. (d) Adjustment for restructuring of the company's automotive operations group. (e) Pro forma EBITDA equals loss from operations excluding the adjustments described in notes (b), (c) and (d). (f) Represents portion of $4,000 charge allocable to other Autobytel.Europe shareholders recognized as a benefit by the company. The $4,000 charge is described in note (c). Contacts: Geri Weinfeld 949/225-4553 Geriw@autobytel.com Melanie Webber 949/862-3023 Melaniew@autobytel.com
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27 ( -6 -22.22% )