AUTOBYTEL INC. REPORTS RECORD THIRD QUARTER REVENUES AND PROFIT
Net Income Increases 48% Sequentially; Cash Balance increases to $58.9 Million
Updated
Jun 10, 2004 22:28:34
Rating
40 ( -6 -15% )
Description: IRVINE, CA - October 23, 2003 - Autobytel Inc. (Nasdaq: ABTL), a leading Internet automotive marketing services company, today announced financial results for the third quarter ended September 30, 2003. Highlights for the quarter: Net income of $1.7 million, or $0.04 per share, on a GAAP basis, meeting consensus estimates Revenues of $23.0 million, representing the highest reported quarterly revenues in the Company's history -- a 19% growth year over year and a 6% growth sequentially Cash generation of $7.2 million, of which $3.3 million was net cash provided by operations Cash balance of $58.9 million at the end of Q3 versus $51.7 million at the end of Q2 Positive turnaround in the number of program dealer relationships; churn rate lowers sequentially by 40%, from 13% to 8% "We are very pleased with this quarter's results. This is our fourth consecutive quarter of delivering increased net income, revenues are at a record high, and we have generated cash for the fifth consecutive quarter," said Jeffrey Schwartz, president and CEO of Autobytel Inc. "In addition, this quarter has brought us to the crossover point in our core business, marking the first time in two years that we have added program dealers on a net basis." Autobytel reported net income for the third quarter ended September 30, 2003 of $1.7 million, or $0.04 per share. This compares to a net loss for the quarter ended September 30, 2002 of $(2.1) million, or $(0.07) per share. Third quarter net income represents a 48% increase over net income of $1.1 million, or $0.03 per share, reported for the second quarter ended June 30, 2003. For the third quarter of 2003, EBITDA was $2.3 million, or $0.06 per share. This compares to an EBITDA loss for the quarter ended September 30, 2002 of $(1.3) million, or $(0.04) per share. Third quarter EBITDA represents a 34% increase over EBITDA of $1.7 million, or $0.05 per share, reported for the second quarter ended June 30, 2003. Revenues for the third quarter ended September 30, 2003 totaled $23.0 million, a 19% increase over revenues of $19.3 million for the quarter ended September 30, 2002, and a 6% sequential increase over revenues of $21.7 million for the second quarter ended June 30, 2003. The Company generated $7.2 million in cash during the third quarter of 2003, of which $3.3 million was generated from operations. In addition, $2.3 million was generated from the exercise of stock options and $2.2 million resulted from a partial return of capital of the Company's investment in Autobytel Europe. The Company's cash balance as of September 30, 2003 was $58.9 million versus $51.7 million in the quarter ended June 30, 2003. Highlights for the Third Quarter Revenues: Third quarter revenues were $23.0 million, of which $14.4 million were related to Program Fees; $4.1 million were related to Enterprise Sales; $2.8 million were related to Advertising, and $1.7 million were related to Other Products and Services. Operating Expenses: Total operating expenses, including depreciation and amortization, in the third quarter were $21.5 million. Sales and marketing expenses totaled $13.3 million, including traffic acquisition costs. Product development and technology costs totaled $5.4 million. General and administrative costs totaled $2.8 million. Unique Visitor Count: Autobytel's four websites - Autobytel.com, Autoweb.com, Carsmart.com and AutoSite.com - ranked as the most visited new car buying and research network for the quarter, with 6.4 million average monthly unique visitors in the third quarter of 2003 as reported by comScore Media Metrix. Purchase Requests: The Company delivered approximately 763,000 Purchase Requests during the third quarter compared to 791,000 Purchase Requests delivered in the second quarter of 2003. The Company attributes this slight decline to the seasonality associated with the model year change over. Dealer Count: The Company reported approximately 25,800 dealer relationships in the third quarter. Included in this number are about 20,800 relationships in the lead referral category and about 5,000 relationships in the CRM tools and services category. Of the 20,800 dealer relationships in the lead referral category, 5,100 were program dealer relationships, including 89 dealer relationships added during the quarter, marking the first net increase in program dealer relationships in two years. The remaining 15,700 were enterprise sales relationships. Of the approximately 5,000 dealer relationships in the CRM tools and services category, 3,200 were dealers using AVV products and services, 1,500 were dealers using the iManager lead management tool, and 337 were dealers using RPM SM, Autobytel's customer loyalty and retention program. Advertising Revenues: Revenues from online advertising were $2.8 million for the third quarter, a 38% increase over revenues of $2.0 million for the quarter ended September 30, 2002. Revenues declined (8)% sequentially from revenues of $3.0 million for the second quarter ended June 30, 2003. Advertising revenues were impacted by the slight decline in Purchase Requests during the quarter, which resulted from seasonality associated with model year change over and advertisers' marketing and promotional schedules. RPM SM: Autobytel's customer loyalty and retention program, RPM, added approximately 57 dealers during the third quarter, and average revenues per dealer subscribing to RPM continues to be in the $1,200 per month range. The Company continues to forecast sustained growth for this program throughout the rest of the year. Headcount: As of September 30, 2003, the Company had 334 employees, including an additional 26 sales people added during the quarter. This compares to 317 employees at the end of the second quarter. Quality Initiatives: Closing ratios for Autobytel's program dealers remained strong at 17.5% as the Company continued to ramp up its Quality Verification SystemSM with the addition of a live call center and an additional layer of consumer purchase intent validation. In addition, Autobytel's new field force of Account Managers, charged with providing monthly in-dealership performance consultations, contributed to the sustained high closing ratios and increased satisfaction of Autobytel's program dealers. Market Opportunity: "Recent studies show that the impact of the Internet on consumers' dealer and vehicle choices is now outpacing the impact of television and newspaper ads," said Schwartz. "With online automotive usage predicted to increase even further as younger, more web-savvy buyers replace older buyers, the outlook for the future of the Automotive Internet continues to be bullish." Business Outlook The Company reiterates and updates its previous guidance and expectations as follows: (a) exit fiscal year 2003 at a $95 million revenue run rate; (b) second half net income is expected to increase over 75% versus the first half, which is an increase from prior guidance; and (c) net cash provided by operations is expected to increase in the second half of the year compared to the first half. 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 third quarter 2003 earnings release, there will be a conference call broadcast live over the Internet today, October 23, 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 (Dollar amounts in thousands, except share and per share data) ASSETS Sept. 30, June 30, Dec. 31, 2003 2003 2002 (unaudited) (unaudited) Current assets: Cash and cash equivalents $58,924 $51,733 $27,571 Accounts receivable, net of allowance for doubtful accounts and customer credits of $3,808, $4,334 and $4,214, respectively 8,265 8,251 6,757 Prepaid expenses and other current assets 1,450 1,984 3,495 Total current assets 68,639 61,968 37,823 Property and equipment, net 2,222 2,021 2,088 Capitalized software, net 1,294 1,564 2,105 Investment in unconsolidated subsidiary 2,689 4,812 4,745 Goodwill 16,930 16,839 8,367 Other assets 443 488 96 Total assets $92,217 $87,692 $55,224 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $4,453 $4,115 $3,529 Accrued expenses 5,110 4,387 4,795 Deferred revenues 3,243 3,641 3,575 Customer deposits -- -- 76 Accrued restructuring - current 178 177 223 Capital lease obligations - current 86 99 -- Other current liabilities 346 397 349 Total current liabilities 13,416 12,816 12,547 Accrued restructuring - non current 127 175 255 Capital lease obligations - non- current 39 50 -- Total liabilities 13,582 13,041 12,802 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; 37,539,529, 37,015,094 and 31,195,681 shares issued and outstanding, respectively 37 37 31 Additional paid-in capital 236,134 233,793 203,623 Accumulated other comprehensive loss -- 23 (40) Accumulated deficit (157,536) (159,202) (161,192) Total stockholders' equity 78,635 74,651 42,422 Total liabilities and stockholders' equity $92,217 $87,692 $55,224 CONSOLIDATED STATEMENTS OF OPERATIONS (Dollar amounts in thousands, except share and per share data) (unaudited) Three Months Ended Nine Months Ended Sept. 30, Sept. 30, 2003 2002 2003 2002 Revenues Program fees $14,465 $14,022 $41,485 $44,875 Enterprise sales 4,085 2,253 10,919 6,980 Advertising 2,787 2,025 8,650 5,421 Other products and services 1,702 981 3,959 3,569 Total revenues 23,039 19,281 65,013 60,845 Operating expenses: Sales and marketing 13,303 11,628 39,270 37,124 Product and technology development 5,435 5,733 13,751 17,209 General and administrative 2,747 2,206 8,638 7,667 Autobytel.Europe restructuring and impairment charges -- -- -- 15,015 Domestic restructuring and other charges -- 1,858 -- 1,800 Total operating expenses 21,485 21,425 61,659 78,815 Income (loss) from operations 1,554 (2,144) 3,354 (17,970) Loss on recapitalization of Autobytel.Europe -- -- -- (4,168) Interest income, net 74 95 204 599 Foreign currency exchange gain (loss) 10 10 10 (2) Income (loss) in equity investees 29 (63) 96 (495) Income (loss) before minority interest and income taxes 1,667 (2,102) 3,664 (22,036) Minority interest -- -- -- 866 Income (loss) before income taxes 1,667 (2,102) 3,664 (21,170) Provision for income taxes 1 -- 8 6 Net income (loss) $1,666 $(2,102) $3,656 $(21,176) Net income (loss) per share: Basic $0.04 $(0.07) $0.11 $(0.68) Diluted $0.04 $(0.07) $0.10 $(0.68) Shares used in computing net income (loss) per share Basic 37,212,616 31,170,164 33,442,305 31,125,944 Diluted 40,929,053 31,170,164 36,074,902 31,125,944 Comprehensive income (loss): Net income (loss) $1,666 $(2,102) $3,656 $(21,176) Translation adjustment (23) (25) 40 (513) Comprehensive income (loss) $1,643 $(2,127) $3,696 $(21,689) Autobytel Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollar amounts in thousands, except share and per share data) (unaudited) Three Months Nine Months Ended Sept. 30, Ended Sept. 30, 2003 2002 2003 2002 Cash flows from operating activities: Net income (loss) $1,666 $(2,102) $3,656 $(21,176) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Non-cash charges: Depreciation and amortization 672 870 1,900 2,719 Provision for bad debt 35 247 349 968 Loss on disposal of property and equipment -- 61 -- 50 Stock based compensation -- -- 51 20 Autobytel.Europe restructuring and impairment -- -- -- 15,015 Loss on recapitalization of Autobytel.Europe -- -- -- 4,168 (Income) loss in equity investees (29) 63 (96) 495 Minority interest -- -- -- (866) Write-down of capitalized software costs -- 1,858 -- 1,858 Changes in assets and liabilities: Accounts receivable (49) 1,937 (1,044) (219) Prepaid expenses and other current assets 534 949 2,070 1,317 Other assets -- -- 23 58 Accounts payable 329 (22) 778 (4,419) Accrued expenses 641 26 (381) (3,739) Accrued restructuring - current 1 116 (45) (65) Deferred revenues (398) (604) (332) (901) Customer deposits -- (3) (76) (9) Other current liabilities (51) (83) (27) 12 Accrued restructuring - non current (48) (47) (128) 319 Net cash provided by (used in) operating activities 3,303 3,266 6,698 (4,395) Cash flows from investing activities: Deconsolidation of Autobytel.Europe -- -- -- (28,163) Acquisition of business, net of cash acquired -- -- (4,952) -- Decrease in restricted cash -- -- 28 -- Return of investment (investment) in foreign entities 2,152 -- 2,152 (400) Purchases of property and equipment (558) (192) (703) (915) Proceeds from sale of property and equipment -- 3 -- 156 Capitalized software costs -- (83) -- (1,412) Net cash provided by (used in) investing activities 1,594 (272) (3,475) (30,734) Cash flows from financing activities: Capital lease payments (24) -- (32) -- Net proceeds from sale of common stock 2,341 95 28,150 313 Net cash provided by financing activities 2,317 95 28,118 313 Effect of exchange rates on cash (23) (25) 40 (513) Net increase (decrease) in cash and cash equivalents 7,191 3,064 31,381 (35,329) Cash and cash equivalents, beginning of period 51,733 23,444 27,543 61,837 Cash and cash equivalents, end of period $58,924 $26,508 $58,924 $26,508 Supplemental disclosure of cash flow information: Cash paid during the period for income taxes $1 $-- $8 $6 Cash paid during the period for interest $3 $1 $5 $1 Autobytel Inc. STATEMENT OF SUPPLEMENTAL FINANCIAL INFORMATION (Dollar amounts in thousands, except share and per share data) (unaudited) Three Months Ended Sept. 30, June 30, 2003 2002 2003 Reconciliation of net income (loss) to EBITDA: Net income (loss) $1,666 $(2,102) $1,122 Depreciation and amortization 672 870 620 Interest income (74) (95) (61) Taxes 1 -- 5 EBITDA $2,265 $(1,327) $1,686 EBITDA per share: Diluted $ 0.06 $ (0.04) $ 0.05 Three Months Ended Sept. 30, 2003 Depreciation As and As Reported Amortization Adjusted Operating expenses: Sales and marketing $13,303 $(25) $13,278 Product and technology development 5,435 (597) 4,838 General and administrative 2,747 (50) 2,697 Domestic restructuring and other charges -- -- Total operating expenses $21,485 $(672) $20,813 Three Months Ended Sept. 30, 2002 Depreciation As and As Reported Amortization Adjusted Operating expenses: Sales and marketing $11,628 $(35) $11,593 Product and technology development 5,733 (794) 4,939 General and administrative 2,206 (41) 2,165 Domestic restructuring and other charges 1,858 -- 1,858 Total operating expenses $21,425 $(870) $20,555
Similar news:
Harrah's reports record profit in second quarter - Strong growth at the company's Nevada properties and increased gambler use of the company's Total Rewards slot club card helped boost second-quarter profit at Harrah's Entertainment Inc. to record levels, executives said today.
Deere Reports Record First Quarter Profits - Deere & Co., the nation's largest maker of farm equipment, posted record first quarter profits Tuesday, matching Wall Street's expectations through continued strong sales of construction equipment and its trademark farm machinery.
Autobytel Inc. Posts Record Revenues and Profits in Q2 - Autobytel Inc. enjoyed record profits and revenues during the second quarter, continuing a now-three-quarter trend of increased positive net income. Net income increased 29% over the net income reported for the first quarter ended March 31, 2003…
40 ( -6 -15% )