AUTOBYTEL INC. REPORTS THIRD QUARTER 2002 FINANCIAL RESULTS
Positive Cash Flow, Narrowing Net Loss
Updated
Jun 10, 2004 22:13:02
Rating
196 ( 64 +32.65% )
Description: IRVINE, CA - October 24, 2002 - Autobytel Inc. (Nasdaq: ABTL), a leading Internet automotive marketing services company, today announced third quarter 2002 financial results. Highlights for the quarter: · Generates $3.1 Million in Cash, Finishes Quarter with $26.5 million · Narrows Pro Forma Net Loss to $0.2 Million · Pro Forma EBITDA at $0.6 Million, or $0.02 per Share, Fourth Consecutive Positive Quarter · Launches Pilot Program with Major OEM, Adds Over 11,000 Enterprise Dealer Relationships · Dealer Sales Closing Rates Up 35% Since Beginning of Year "We are pleased to report our first quarter of positive cash flow," said Jeffrey Schwartz, President and CEO of Autobytel Inc. "Generating $3.1 million in the third quarter of 2002 is a milestone achievement in the seven-year history of Autobytel. It's a sure sign that improving operations are resulting in improved financial performance." Autobytel's cash balance as of September 30, 2002 was $26.5 million. During the third quarter, the Company generated $3.1 million in cash. On a Generally Accepted Accounting Principles (GAAP) basis, revenue for the third quarter ended September 30, 2002, totaled $19.3 million, an increase of 6% compared to revenue of $18.2 million for the quarter ended September 30, 2001. It decreased 7% from $20.8 million reported for the second quarter ended June 30, 2002. Revenue for the third quarter of 2001 excludes Autoweb results prior to the acquisition on August 14, 2001. Pro forma earnings before interest, taxes, depreciation, amortization and non-recurring charges (pro forma EBITDA) for the third quarter of 2002 were $0.6 million, or $0.02 per share. This compares to pro forma EBITDA of $(1.9) million, or $(0.07) per share, for the third quarter ended September 30, 2001. Pro forma EBITDA was $0.4 million, or $0.01 per share, for the second quarter ended June 30, 2002. On a GAAP basis, the Company reported a net loss for the third quarter ended September 30, 2002 of $2.1 million or $(0.07) per share. This compares to a net loss for the quarter ended September 30, 2001 of $3.2 million or $(0.13) per share, and a net loss for the second quarter ended June 30, 2002 of $0.6 million or $(0.02) per share. Pro forma net loss before a non-recurring charge (pro forma net loss) was $0.2 million or $(0.01) per share. The non-recurring charge was $1.9 million for obsolete international software. "Narrowing our net loss to $200,000 puts us on track for breakeven in the fourth quarter," said Jeffrey Schwartz. Highlights for the Third Quarter Revenues: Autobytel reported third quarter revenues of $19.3 million, of which $14.0 million was related to Program Fees, $2.3 million was related to Enterprise Sales, $2.0 million was related to Advertising, and $1.0 million was related to Other Products and Services. Pro Forma Operating Expenses: Total pro forma operating expenses in the third quarter were $18.7 million. Sales and marketing expenses totaled $11.6 million, including customer acquisition costs. Product development and technology costs totaled $4.9 million. General and administrative costs totaled $2.2 million. Non-recurring Charge: The company took a non-recurring charge of $1.9 million for previously capitalized software that was originally intended to be used for global website development. Unique Visitor Count: Autobytel's four web site properties, Autobytel.com, Autoweb.com, Carsmart.com and AutoSite.com, received unique average monthly site visitors in excess of 4.1 million in the third quarter of 2002 according to Nielsen Net Ratings. This was a significant increase over the 3.6 million average monthly visitors in the second quarter of 2002 and represented the highest rate of average monthly site visitors. Purchase Requests: The Company delivered approximately 800,000 Purchase Requests during the third quarter of 2002. Revenue per Purchase Request increased sequentially 14%, from $17.92 in the second quarter to $20.38 in the third quarter. Dealer Count: The Company reported approximately 20,600 dealer relationships in the third quarter, 5,600 of which were program dealer relationships. Average monthly dealer fees were approximately $800. The Company's remaining 15,000 dealer relationships were accounted for under its enterprise sales category. In this category, the Company reported adding a pilot program with a major OEM during the third quarter of 2002 representing over 11,000 enterprise dealer relationships. The program is renewable in one-month increments. Headcount: As of September 30, 2002, the Company had 227 employees, essentially the same as in the second quarter of 2002. Quality Initiatives: Autobytel furthered its commitment to unmatched product quality by launching three new programs during the quarter. The Company's proprietary Quality Verification SystemSM is designed to ensure that dealers receive Purchase Requests only from serious car buyers. The Dealer Management Report program provides dealers with direct customer feedback to help them improve their sales closing ratios. The Dealer Opportunity Report tracks and ranks each dealer relationship to optimize each customer contact made by the Company's sales force. As a result of these recent initiatives, dealer closing ratios are already showing a marked improvement. "With our close rates up 35% since the beginning of this year, we have dramatically reduced the average cost for dealers of selling cars with Autobytel, which now stands around $120 per sale. This progress has had a positive impact on every aspect of our business," said Jeffrey Schwartz. Pro Forma Results The pro forma operating results for the third quarter of 2002 exclude the following items on the Company's Consolidated Statements of Operations: · Restructuring and other charges and benefits · Depreciation, amortization and stock-based compensation A reconciliation of GAAP to pro forma is included in the attached Consolidated Statements of Operations. Business Outlook The Company expects to report revenues of $80 million for the full fiscal year 2002, with pro forma EBITDA of $0.07 per share, and expects to be cash neutral to cash positive for the fourth quarter of 2002. Conference Call In conjunction with Autobytel Inc.'s third quarter 2002 earnings release, there will be a conference call broadcast live over the Internet today, October 24, 2002, at 4:30 PM EDT. Links to the web cast conference call follow:
The Webcast will be archived within 24 hours of the end of the call until the next quarter's 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 Sept. 30, Dec. 31, 2002 2001 (unaudited) Current assets: Domestic cash and cash equivalents $26,480 $30,006 International cash and cash equivalents - 28,784 Restricted cash 28 3,047 Accounts receivable, net of allowance for doubtful accounts and customer credits of $4,253 and $7,109, respectively 7,998 8,519 Prepaid expenses and other current assets 3,086 4,419 Total current assets 37,592 74,775 Property and equipment, net 2,283 2,889 Capitalized software, net 2,467 4,319 Investment in unconsolidated subsidiary 4,684 - Goodwill, net 8,367 8,644 Other assets 96 154 Total assets $55,489 $90,781 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $4,651 $9,108 Accrued expenses 4,425 9,005 Deferred revenues 3,807 4,708 Customer deposits 83 92 Other current liabilities 255 300 Total current liabilities 13,221 23,213 Long-term liabilities 319 - Total liabilities 13,540 23,213 Minority interest - 7,173 Commitments and contingencies Stockholders' equity: Preferred stock, $0.001 par value; 11,445,187 shares authorized; none outstanding - - Common stock, $0.001 par value; 200,000,000 shares authorized; 31,191,678 and 30,969,377 shares issued and outstanding, respectively 31 31 Additional paid-in capital 203,613 203,280 Accumulated other comprehensive loss (41) (2,438) Accumulated deficit (161,654) (140,478) Total stockholders' equity 41,949 60,395 Total liabilities and stockholders' equity $55,489 $90,781 Note: Balances as of Sept. 30, 2002, exclude consolidation of Autobytel.Europe. Autobytel Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per-share data) (Unaudited) Third Quarter Ended Sept. 30, 2002(a) Pro Forma GAAP Adjustments Pro Forma(b) Revenues: Program fees $14,022 $- $14,022 Enterprise sales 2,253 - 2,253 Advertising 2,025 - 2,025 Other products and services 981 - 981 Total revenues 19,281 - 19,281 Operating expenses: Sales and marketing 11,628 (35) (c) 11,593 Product and technology development 5,733 (793) (c) 4,940 General and administrative 2,206 (41) (c) 2,165 Domestic restructuring and other charges 1,858 (1,858) (d) - Total operating expenses 21,425 (2,727) 18,698 Loss from operations (2,144) Pro forma EBITDA (b) 2,727 583 Interest income, net 96 - 96 Foreign currency exchange gain (loss) 10 - 10 Equity loss in unconsolidated subsidiaries (64) - (64) Income (loss) before minority interest and income taxes (2,102) 2,727 625 Minority interest - - - Income (loss) before income taxes (2,102) 2,727 625 Provision for income taxes - - - Depreciation, amortization and stock compensation expense 869 (c) 869 Pro forma net loss before non-recurring charges $1,858 $(244) Net loss $(2,102) Loss from operations/Pro forma EBITDA per share: Basic $(0.07) $0.02 Net loss/Pro forma net loss before non-recurring charges per share: Basic $(0.07) $(0.01) Shares used in computing income (loss) per share: Basic 31,170,164 31,170,164 Third Quarter Ended Sept. 30, 2001(a) Pro Forma GAAP Adjustments Pro Forma(b) Revenues: Program fees $13,162 $- $13,162 Enterprise sales 1,843 - 1,843 Advertising 1,313 - 1,313 Other products and services 1,864 - 1,864 Total revenues 18,182 - 18,182 Operating expenses: Sales and marketing 11,968 (40) (c) 11,928 Product and technology development 5,567 (622) (c) 4,945 General and administrative 3,345 (124) (c) 3,221 Domestic restructuring and other charges 1,254 (1,254) (e) - Total operating expenses 22,134 (2,040) 20,094 Loss from operations (3,952) Pro forma EBITDA (b) 2,040 (1,912) Interest income, net 717 - 717 Foreign currency exchange gain (loss) (33) - (33) Equity loss in unconsolidated subsidiaries - - - Income (loss) before minority interest and income taxes (3,268) 2,040 (1,228) Minority interest 31 - 31 Income (loss) before income taxes (3,237) 2,040 (1,197) Provision for income taxes 1 - 1 Depreciation, amortization and stock compensation expense 786 (c) 786 Pro forma net loss before non-recurring charges $1,254 $(1,984) Net loss $(3,238) Loss from operations/Pro forma EBITDA per share: Basic $(0.15) $(0.07) Net loss/Pro forma net loss before non-recurring charges per share: Basic $(0.13) $(0.08) Shares used in computing income (loss) per share: Basic 25,795,700 25,795,700 Notes: (a) Results include Autoweb from the date of acquisition on Aug. 14, 2001. (b) The Pro Forma Consolidated Statements of Operations are not presentations in accordance with GAAP (Generally Accepted Accounting Principles) as they exclude the effects of notes (c) through (e). (c) Adjustments for depreciation and amortization expense of $869 in the third quarter of 2002 and depreciation, amortization and stock compensation expense of $786 in the third quarter of 2001. No stock compensation expense was incurred in the third quarter of 2002. (d) Adjustment for the write-off of previously capitalized software related to the development of global baseline technology. (e) Adjustment for restructuring charges related to the integration of Autoweb into Autobytel as a result of the acquisition of Autoweb on Aug. 14, 2001. Autobytel Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per-share data) (Unaudited) Nine Months Ended Sept. 30, 2002(a) Pro Forma GAAP Adjustments Pro Forma(b) Revenues: Program fees $44,875 $- $44,875 Enterprise sales 6,980 - 6,980 Advertising 5,421 - 5,421 Other products and services 3,569 - 3,569 Total revenues 60,845 - 60,845 Operating expenses: Sales and marketing 37,124 (103) (c) 37,021 Product and technology development 17,209 (2,496) (c) 14,713 General and administrative 7,667 (140) (c) 7,527 Goodwill impairment - - - Autobytel.Europe restructuring, impairment and other international charges 15,015 (15,015) (e) - Domestic restructuring and other charges 1,800 (1,800) (g) - Total operating expenses 78,815 (19,554) 59,261 Loss from operations (17,970) Pro forma EBITDA (b) 19,554 1,584 Loss on sale of investment in Autobytel.Europe (4,168) 4,168 (i) - Interest income, net 600 - 600 Foreign currency exchange gain (loss) (2) - (2) Equity loss in unconsolidated subsidiaries (496) - (496) Income (loss) before minority interest and income taxes (22,036) 23,722 1,686 Minority interest 866 - 866 Income (loss) before income taxes (21,170) 23,722 2,552 Provision for income taxes 6 - 6 Depreciation, amortization and stock compensation expense 2,739 (c) 2,739 Pro forma net loss before non-recurring charges $20,983 $(193) Net loss $(21,176) Loss from operations/Pro forma EBITDA per share: Basic $(0.58) $0.05 Net loss/Pro forma net loss before non-recurring charges per share: Basic $(0.68) $(0.01) Shares used in computing income (loss) per share: Basic 31,125,944 31,125,944 Nine Months Ended Sept. 30, 2001(a) Pro Forma GAAP Adjustments Pro Forma(b) Revenues: Program fees $37,537 $- $37,537 Enterprise sales 4,843 - 4,843 Advertising 2,031 - 2,031 Other products and services 6,152 - 6,152 Total revenues 50,563 - 50,563 Operating expenses: Sales and marketing 38,147 (158) (c) 37,989 Product and technology development 14,169 (1,083) (c) 13,086 General and administrative 10,965 (1,172) (c) 9,793 Goodwill impairment 21,614 (21,614) (d) - Autobytel.Europe restructuring, impairment and other international charges 11,202 (11,202) (f) - Domestic restructuring and other charges 3,115 (3,115) (h) - Total operating expenses 99,212 (38,344) 60,868 Loss from operations (48,649) Pro forma EBITDA (b) 38,344 (10,305) Loss on sale of investment in Autobytel.Europe - - - Interest income, net 2,790 - 2,790 Foreign currency exchange gain (loss) 425 - 425 Equity loss in unconsolidated subsidiaries (500) - (500) Income (loss) before minority interest and income taxes (45,934) 38,344 (7,590) Minority interest 2,008 - 2,008 Income (loss) before income taxes (43,926) 38,344 (5,582) Provision for income taxes 29 - 29 Depreciation, amortization and stock compensation expense 2,413 (c) 2,413 Pro forma net loss before non-recurring charges $35,931 $(8,024) Net loss $(43,955) Loss from operations/Pro forma EBITDA per share: Basic $(2.19) $(0.46) Net loss/Pro forma net loss before non-recurring charges per share: Basic $(1.98) $(0.36) Shares used in computing income (loss) per share: Basic 22,191,514 22,191,514 Notes: (a) Results include Autoweb from the date of acquisition on Aug. 14, 2001. (b) The Pro forma Consolidated Statements of Operations are not presentations in accordance with GAAP (Generally Accepted Accounting Principles) as they exclude the effects of notes (c) through (i). (c) Adjustments for depreciation, amortization and stock compensation expenses of $2,739 and $2,413 in the nine months ended 2002 and 2001, respectively. (d) Adjustment for impairment of goodwill related to our acquisition of A.I.N. Corp. (e) Adjustment for the change in Autobytel.Europe's capital structure and impairment of our investment in Autobytel.Europe. (f) Adjustment for the restructuring of Autobytel.Europe, the write-off of obsolete international software and the write-off of investments in European joint ventures. (g) Adjustment for the write-off of previously capitalized software related to the development of global baseline technology, charges related to our reduction in work force, excess facilities and costs related to an abandoned transaction net of benefits related to arbitration recovery and the reduction of legal fees and negotiated settlements. (h) Adjustment for the restructuring of our automotive operations group, contract termination costs related to online advertising and our aftermarket program, as well as the write-off of previously capitalized software related to our aftermarket program and restructuring charges related to the integration of Autoweb into Autobytel as a result of the acquisition of Autoweb on Aug. 14, 2001. (i) Adjustment for loss recognized on reduction of ownership in Autobytel.Europe from 76.5% to 49%. Autobytel Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands, except share and per-share data) (Unaudited) Three Months Ended Nine Months Ended Sept. 30, Sept. 30, 2002 2001 2002 2001 Cash flows from operating activities: Net loss $(2,102)$(3,238)$(21,176)$(43,955) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Non-cash charges: Depreciation and amortization 870 725 2,719 2,228 Provision for bad debt and customer credits 2,249 2,067 6,610 5,992 Loss on disposal of property and equipment 61 19 50 290 Compensation expense recorded for fair market value of stock options in excess of exercise price - 61 20 185 Autobytel.Europe restructuring and impairment - - 15,015 - Loss on recapitalization of Autobytel.Europe - - 4,168 - Equity losses in unconsolidated subsidiaries 63 - 495 500 Minority interest - (31) (866) (2,008) Impairment of goodwill - - - 21,614 Write-down of capitalized software costs 1,858 - 1,858 3,455 Write-off of investments in foreign entities - - - 2,142 Write-down of property and equipment - - - 242 Contract termination costs - (697) - - Changes in assets and liabilities: Accounts receivable 9 (308) (5,861) (4,135) Prepaid expenses and other current assets 949 2,570 1,317 3,082 Other assets - - 58 2 Accounts payable (22) 110 (4,419) 880 Accrued expenses 189 (1,907) (3,576) (3,664) Restructuring liabilities (47) (2,147) (228) 2,723 Deferred revenues (604) 279 (901) (678) Customer deposits (3) (51) (9) (49) Other current liabilities (83) 53 12 (138) Long-term restructuring and other liabilities (47) (435) 319 (482) Net cash provided by (used in) operating activities 3,340 (2,930) (4,395) (11,774) Cash flows from investing activities: Deconsolidation of Autobytel.Europe - - (28,163) - Acquisition of business, net of cash acquired - 5,697 - 5,697 Investment in foreign entities - - - (413) Investment in unconsolidated subsidiary - - (400) - Notes receivable from foreign entity - - - (88) Repayment of notes receivable from foreign entity - - - 292 Purchases of property and equipment (192) (1,616) (915) (1,985) Proceeds from sale of property and equipment 3 - 156 - Capitalized software costs (83) (728) (1,412) (4,493) Net cash provided by (used in) investing activities (272) 3,353 (30,734) (990) Cash flows from financing activities: Net proceeds from sale of common stock 95 66 313 123 Net proceeds from sale of subsidiary company stock - - - 2,000 Net cash provided by financing activities 95 66 313 2,123 Effect of exchange rates on cash (25) 1,743 (513) (1,721) Net increase (decrease) in cash and cash equivalents 3,138 2,232 (35,329) (12,362) Cash and cash equivalents, beginning of period 23,370 67,351 61,837 81,945 Cash and cash equivalents, end of period $26,508 $69,583 $26,508 $69,583 Supplemental disclosure of cash flow information: Cash paid (refunded) during the period for income taxes $- $(25) $6 $1 Cash paid during the period for interest $1 $2 $1 $4 Contact: Investor Relations Sean Collins, Coffin Communications Group, 818.789.0100, ext. 202 (Sean.Collins@CoffinCG.com) Media Relations Melanie Webber, Vice President, Corporate Communications, Autobytel Inc., 949.862.3023 (melaniew@autobytel.com)
Similar news:
Gillette reports record second quarter results - The Gillette Company today reported record net sales, profit from operations, net income and diluted net income per share for the second quarter and first six months of 2004.
Smithfield Foods reports second-quarter results rose 61 per cent - SMITHFIELD, Va. (AP) - Smithfield Foods Inc., the largest U.S. hog producer, said Tuesday its second-quarter earnings rose 61 per cent as live hog prices soared, reflecting strong demand for pork nationally and internationally.
Toys "R" Us reports improved results for fourth quarter as sale approaches - NEWARK, N.J. (AP) - Toys "R" Us Inc., which expects to be sold by the end of July to a private consortium, on Friday released its delayed financial results, showing that its profit surged 67 per cent during its fourth quarter, which includes the critical
196 ( 64 +32.65% )