Description: IRVINE, Calif. - April 24, 2003 - Autobytel Inc. (Nasdaq:ABTL), a leading Internet automotive marketing services company, today announced financial results for the first quarter ended March 31, 2003. Highlights for the quarter: Net income totals $0.9 million, or $0.03 per share, on a GAAP basis, compared to analyst estimate of $0.4 million or $0.01 per shareOutperforms analyst estimate for EBITDA of $0.03 per share, delivering $1.4 million of EBITDA, or $0.04 per shareCash generation of $1.3 million; third consecutive quarter of cash generation; cash balance of $28.8 millionStrong growth in online advertising segment, and RPM customer loyalty and retention program for dealers "Fiscal year 2003 is shaping up very well so far," said Jeffrey Schwartz, president and CEO of Autobytel Inc. "We have now delivered a second consecutive quarter of net income, which reflects the success of our efforts to rebuild and enhance operations during 2002. Our operating metrics, such as closing ratio and gross margin per purchase request, have substantially improved and our customer and affiliate relationships are more solid than ever." Autobytel reported net income for the first quarter ended March 31, 2003 of $0.9 million, or $0.03 per share. This compares to a net loss for the quarter ended March 31, 2002 of $(18.5) million, or $(0.59) per share. It is nearly double the net income reported for the fourth quarter ended December 31, 2002, when net income was $0.5 million, or $0.01 per share. For the first quarter of 2003, EBITDA was $1.4 million, or $0.04 per share, versus a loss of $(17.9) million, or $(0.58) per share, in the first quarter of 2002, and EBITDA of $1.0 million, or $0.03 per share, in the fourth quarter ended December 31, 2002. Revenues for the first quarter ended March 31, 2003 totaled $20.3 million, versus revenues of $20.7 million for the quarter ended March 31, 2002 and fourth quarter 2002 revenues of $20.0 million. During the first quarter of 2003, Autobytel generated $1.3 million in cash, marking its third consecutive quarter of cash generation. The Company's cash balance as of March 31, 2003 was $28.8 million. Jeffrey Schwartz added that "In addition to improved financial results, we are continuing to expand our leadership in automotive marketing services. Our expanded relationship with Yahoo!, and the launch of a co-branded channel targeting Hispanic car buyers, under an agreement with Terra.com, are an important part of our strategy of becoming an indispensable partner in the automotive interactive marketing arena." Highlights for the First Quarter Revenues: Of Autobytel's first quarter revenues of $20.3 million, $13.1 million were related to Program Fees, $3.4 million were related to Enterprise Sales, $2.8 million were related to Advertising, and $0.9 million were related to Other Products and Services. Operating Expenses: Total operating expenses in the first quarter were $19.5 million. Sales and marketing expenses totaled $12.9 million, including traffic acquisition costs. Product development and technology costs totaled $3.9 million. General and administrative costs totaled $2.8 million. Unique Visitor Count: Autobytel was the most visited new-car-buying and research network in Q1 2003. Autobytel's four web site properties -- Autobytel.com, Autoweb.com, Carsmart.com and AutoSite.com -- received about 9.25 million average monthly unique visitors in the first quarter of 2003, versus 7.45 million in the fourth quarter, as reported by comScore Media Metrix. Purchase Requests: The Company delivered approximately 795,000 Purchase Requests during the first quarter of 2003, of which about 612,000 were delivered to program dealers and the remaining 183,000 to enterprise dealers. Closing ratios for Autobytel dealers remained in the range of 16%-18%, roughly a 30% improvement over 12% closing ratios reported for the first quarter of 2002. Dealer Count: The Company reported approximately 20,100 dealer relationships in the first quarter. Included in this number are about 5,200 program dealer relationships and about 200 Retention Performance Marketing (RPM) dealer relationships. The remaining 14,700 dealer relationships were included in the enterprise sales category. The category of program dealer relationships showed the lowest rate of attrition in six quarters, which the Company attributes to the positive effects of its proprietary Quality Verification System(SM) (QVS), instituted in 2002. Advertising Revenues: Revenues from online advertising increased sequentially by 14%, to $2.8 million, in the first quarter of 2003. This revenue segment grew 62% compared to the first quarter of 2002. The Company attributes success in this area in part to its Dynamic Content Placement(SM)(DCP) and showcase marketing features, as well as to the ongoing migration of automotive advertising spending to online media. RPM(SM): Autobytel's customer loyalty and retention program, RPM, added approximately 70 dealers during the first quarter, and average revenue per dealer subscribing to RPM continues to be in the $1,200 per month range. The Company also secured another OEM endorsement of RPM during the quarter, and the Company continues to forecast sustained growth for this program throughout the rest of the year. Headcount: As of March 31, 2003, the Company had 252 employees, versus 229 at the end of the fourth quarter of 2002. Quality Initiatives: Autobytel's proprietary QVS continued to contribute to improved results. This quarter, the Company added another phase to QVS by instituting a "no spam" policy, officially eliminating from its marketing activities any mass e-mail campaigns soliciting vehicle Purchase Requests(1), and announcing to third-party providers that they are no longer to send "spam"-driven Purchase Requests. This initiative, in addition to established programs that provide dealers with direct customer feedback to improve their sales closing ratios and that optimize each dealer contact made by the Company's sales force, resulted in a record high closing rate for the month of March. "Our value proposition continues to be compelling," said Jeffrey Schwartz. "For the first quarter, a dealer's average cost to sell a car through Autobytel was approximately $130, compared to about $475 using traditional media based on NADA data." Business Outlook The Company continues to expect organic revenue growth of 5% to 10% in 2003 versus 2002, and positive net income and positive cash flow from operations for 2003. Non-GAAP Measures In addition to furnishing its consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), Autobytel discloses certain non-GAAP financial measures, including EBITDA and EBITDA per share, which are derived from results based on GAAP. Autobytel believes these non-GAAP measures assist users in understanding its results of operations, cash generated, and resources available for strategic opportunities including reinvestment in the business and acquisitions. The non-GAAP measures are provided to enhance the user's overall understanding of Autobytel's current financial performance and its prospects for the future. As such, these measures should be considered in addition to results prepared in accordance with GAAP and should not be considered a substitute for or superior to GAAP results. A reconciliation of the non-GAAP measures to the nearest GAAP measures is included in the attached Statement of Supplemental Financial Information. Conference Call In conjunction with Autobytel Inc.'s first quarter 2003 earnings release, there will be a conference call broadcast live over the Internet today, April 24, 2003, at 4:30 PM EDT (1:30 PM PDT). The link to the Webcast conference is as follows:
The Webcast will be archived within 2 hours of the end of the call until the next quarter's earnings announcement. To listen to the archived Webcast, please go to the link shown above. Autobytel Inc. CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share and per share data) ASSETS March 31, Dec. 31, 2003 2002 (unaudited) Current assets: Cash and cash equivalents $28,828 $27,543 Restricted cash -- 28 Accounts receivable, net of allowance for doubtful accounts and customer credits of $4,487 and $4,214, respectively 6,953 6,757 Prepaid expenses and other current assets 2,402 3,495 Total current assets 38,183 37,823 Property and equipment, net 1,781 2,088 Capitalized software, net 1,835 2,105 Investment in unconsolidated subsidiary 4,798 4,745 Goodwill, net 8,367 8,367 Other assets 85 96 Total assets $55,049 $55,224 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $3,904 $3,529 Accrued expenses 3,541 5,018 Deferred revenues 3,528 3,575 Customer deposits 69 76 Other current liabilities 331 349 Total current liabilities 11,373 12,547 Accrued restructuring -- non-current 223 255 Total liabilities 11,596 12,802 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 million shares authorized; 31,267,612 and 31,195,681 shares issued and outstanding, respectively 31 31 Additional paid-in capital 203,759 203,623 Accumulated other comprehensive loss (13) (40) Accumulated deficit (160,324) (161,192) Total stockholders' equity 43,453 42,422 Total liabilities and stockholders' equity $55,049 $55,224 Autobytel Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per share data) (unaudited) Three Months Ended March 31, 2003 2002 Revenues: Program fees $13,118 $15,412 Enterprise sales 3,355 1,984 Advertising 2,839 1,757 Other products and services 941 1,580 Total revenues 20,253 20,733 Operating expenses: Sales and marketing 12,858 12,260 Product and technology development 3,862 5,753 General and administrative 2,785 3,057 Autobytel.Europe restructuring and impairment charges -- 15,015 Total operating expenses 19,505 36,085 Income (loss) from operations 748 (15,352) Loss on recapitalization of Autobytel.Europe -- (4,168) Interest income 69 391 Foreign currency exchange gain -- 1 Income (loss) in equity investees 53 (200) Income (loss) before minority interest and income taxes 870 (19,328) Minority interest -- 866 Income (loss) before income taxes 870 (18,462) Provision for income taxes 2 5 Net income (loss) $868 $(18,467) Net income (loss) per share: Basic $0.03 $(0.59) Diluted $0.03 $(0.59) Shares used in computing loss per share: Basic 31,234,243 31,069,171 Diluted 32,167,910 31,069,171 Autobytel Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands, except share and per share data) (unaudited) Three Months Ended March 31, 2003 2002 Cash flows from operating activities: Net income (loss) $868 $(18,467) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Non-cash charges: Depreciation and amortization 608 901 Provision for bad debt 242 746 Loss on disposal of property and equipment -- 1 Amortization of deferred stock based compensation -- 20 Autobytel.Europe restructuring and impairment -- 15,015 Loss on recapitalization of Autobytel.Europe -- 4,168 Income in equity investee (53) -- Minority interest -- (866) Changes in assets and liabilities: Accounts receivable (438) (1,126) Prepaid expenses and other current assets 1,093 1,108 Other assets 11 -- Accounts payable 375 (2,539) Accrued expenses (1,441) (3,560) Accrued restructuring -- current (36) (31) Deferred revenues (47) (74) Customer deposits (7) (10) Other current liabilities (18) 58 Accrued restructuring and other liabilities -- non current (32) -- Net cash provided by (used in) operating activities 1,125 (4,656) Cash flows from investing activities: Deconsolidation of Autobytel.Europe -- (28,163) Decrease in restricted cash 28 -- Purchases of property and equipment (31) (426) Capitalized software costs -- (903) Net cash used in investing activities (3) (29,492) Cash flows from financing activities: Net proceeds from sale of common stock 136 160 Net cash provided by financing activities 136 160 Effect of exchange rates on cash 27 (517) Net increase (decrease) in cash and cash equivalents 1,285 (34,505) Cash and cash equivalents, beginning of period 27,543 61,837 Cash and cash equivalents, end of period $28,828 $27,332 Supplemental disclosure of cash flow information: Cash paid during the period for income taxes $2 $5 Cash paid during the period for interest $-- $-- Autobytel Inc. STATEMENT OF SUPPLEMENTAL FINANCIAL INFORMATION (Amounts in thousands, except share and per share data) (unaudited) Three Months Ended March 31, Dec. 31, 2003 2002 2002 Reconciliation of net income (loss) to EBITDA: Net income (loss) $868 $(18,467) $462 Depreciation and amortization 608 921 648 Interest income (69) (391) (86) Taxes 2 5 -- EBITDA $1,409 $(17,932) $1,024 EBITDA per share: Diluted $0.04 $(0.58) $0.03 Three Months Ended March 31, 2003 As Depreciation and As Reported Amortization Adjusted Operating expenses: Sales and marketing $12,858 $ (20) $12,838 Product and technology development 3,862 (564) 3,298 General and administrative 2,785 (24) 2,761 Total operating expenses $19,505 $(608) $18,897 Three Months Ended March 31, 2002 As Depreciation and As Reported Amortization Adjusted Operating expenses: Sales and marketing $12,260 $ (31) $12,229 Product and technology development 5,753 (834) 4,919 General and administrative 3,057 (56) 3,001 Autobytel.Europe restructuring and impairment 15,015 -- 15,015 Total operating expenses $36,085 $(921) $35,164 Contact: Autobytel Inc., Irvine Melanie Webber, 949/862-3023 melaniew@autobytel.com or Coffin Communications Group Sean Collins, (Investors), 818/789-0100, ext. 202 Sean.Collins@CoffinCG.com
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