Net Loss Cut in Half, Operating Loss Declines Significantly on Stable Revenue, Placing Company on Path to Profitability for Third Quarter of 2001
Updated
Jul 7, 2004 20:36:10
Rating
16 ( -2 -12.5% )
Description: IRVINE, CA -April 26, 2001- Autobytel.com (Nasdaq: ABTL) today reported financial results for the quarter ended March 31, 2001. Revenue for the first quarter was $16.7 million, up 10 percent from revenue of $15.1 million in the same quarter of the prior year, and down 1 percent sequentially from revenue of $16.8 million in the quarter ended December 31, 2000. In the quarter, for the first time, we recognized $1.4 million related to an automotive consulting project. The portion of total revenue from international fees and licenses and from services such as finance, insurance and web site development was 14 percent for the quarter. The operating loss in the quarter declined to $5.3 million, compared with an operating loss of $9.6 million in the same quarter a year ago, and an operating loss of $6.7 million in the quarter ended December 31, 2000. It was the third consecutive quarter Autobytel.com significantly lowered its operating loss. The net loss in the first quarter was $4.1 million, or $0.20 per share, compared with a net loss of $8.1 million, or $0.42 per share, in the same quarter of the prior year, and with a net loss of $3.3 million, or $0.16 per share, in the quarter ended December 31, 2000. As of March 31, 2001, Autobytel.com's cash and cash equivalents were $75.1 million, including $34.6 million that is reserved for the operation of Autobytel Europe. The Company used $6.9 million in cash in the first quarter. "In light of the difficult economic environment, we continue to be pleased with our results and progress," said Mark Lorimer, president and CEO of Autobytel.com. "We maintained stable revenue and significantly reduced our operating loss and cost of customer acquisition by aligning our marketing costs and other expenses with the current opportunities in the marketplace." Outlook for 2001 The Company is providing the following guidance for the second quarter of 2001: revenue in the range of $16.0 to $16.5 million, with a per share loss in the range of $0.09 to $0.11. "We expect to continue to lower our customer acquisition cost, and take further steps to decrease overall expenses," said Lorimer. "Those steps may include continued reduction in advertising, marketing and other costs, and renegotiation of supplier and portal relationships on more favorable terms." "Given an uncertain outlook for both the auto industry and e-commerce in general, and our potential combination with Autoweb, we lack sufficient visibility to provide specific revenue and EPS guidance for the third and fourth quarters at this time," said Lorimer. "However, as a result of our success in reducing costs, we moved closer to our goal of profitability, which we expect to achieve in the third quarter of this year. Our strong cash position, increasingly efficient operations, and market leadership position should allow us to aggressively pursue opportunities as the market improves." First Quarter Highlights According to Lorimer, two recent developments highlight the Company's market leadership position. "Our recent agreement to combine with Autoweb, which we expect to close early in the third quarter, will not only expand our market share lead and extend our dealer network, it should make Autobytel.com a leader in automotive information services and provide us with significant manufacturer relationships," he said. "Furthermore, we reiterate our belief that the combined companies will achieve profitability in the third quarter." "Also, our recent agreement with General Motors to test the locate-to-order business model in the Washington, D.C. market demonstrates our unique ability to partner with and provide valuable services to the auto manufacturers," continued Lorimer. "We believe that our brand and marketing strengths, technology development expertise, and ability to work with dealer networks through training, management and customer services make Autobytel.com an attractive partner for others in the industry, potentially providing a source of high margin growth in the future." Conference Call A conference call to discuss first quarter 2001 financial results will be web cast live on Thursday, April 26, 2001, at 4:30 PM EDT. Links to the web cast conference call follow:
Replays will be available at both links for 90 days. A replay of the call will also be available through May 26, 2001 by dialing (800) 642-1687 or (706) 645-9291, code #790546 autobytel.com inc. CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share and per share data)
ASSETS
March 31,
December 31,
2001
2000
Current assets:
Cash and cash equivalents, includes restricted amounts
of $16,028 and $15,029, respectively
$75,082
$81,945
Accounts receivable, net of allowance for doubtful accounts
of $1,821 and $1,494, respectively
7,405
6,638
Prepaid expenses and other current assets
3,481
4,127
Total current assets
85,968
92,710 Property and equipment, net
2,031
2,537 Investments
1,165
1,353 Goodwill, net
23,334
23,755 Capitalized software in progress
5,603
3,338 Notes receivable
639
530 Other assets
84
86
Total assets
$118,824
$124,309 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Accounts payable
$10,176
$9,828
Accrued expenses
6,175
7,519
Deferred revenues
5,862
6,360
Customer deposits
204
185
Other current liabilities
1,429
371
Total current liabilities
23,846
24,263
Other long-term liabilities
-
47
Total liabilities
23,846
24,310
Minority interest
8,787
8,193
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value; 200,000,000 shares authorized;
20
20
20,364,070 and 20,336,083 shares issued and outstanding,
respectively
Warrants
1,332
1,332
Additional paid-in capital
187,380
186,097
Accumulated other comprehensive loss
(2,838)
(16)
Accumulated deficit
(99,703)
(95,627)
Total stockholders' equity
86,191
91,806
Total liabilities and stockholders' equity
$118,824
$124,309
autobytel.com inc. CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per share data)
Three Months Ended March 31,
2001
2000
Revenue
$16,653
$15,100
Operating expenses:
Sales and marketing
13,346
16,874
Product and technology development
3,988
5,033
General and administrative
3,604
2,766
Restructuring costs
992
-
Total operating expenses
21,930
24,673
Loss from operations
(5,277)
(9,573) Interest income, net
1,150
1,515 Foreign currency exchange gain (loss)
717
- Equity losses in unconsolidated subsidiary
(500)
-
Loss before minority interest losses and
provision for income taxes
(3,910)
(8,058) Minority interest losses
(128)
-
Loss before provision for income taxes
(4,038)
(8,058) Provision for income taxes
38
20
Net loss
$(4,076)
$(8,078)
Basic and diluted net loss per share
$(0.20)
$(0.42)
Shares used in computing basic and
diluted net loss per share
20,354,430
19,263,638
Source: ABT
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A D V E R T I S E M E N T
WARDSAUTO Instead of traveling from showroom to showroom looking for a vehicle, within minutes in the comfort of my home, I had 20 vehicles from which to choose." --Cliff Banks, Ward's Dealer Business Los Angeles Times One of four people shopping for a used car went to the Internet for help, according to a July J.D.Power and Associates study... For them, Irvine-based Autobytel.com was the most popular destination. --The Los Angeles Times CBS News When New York resident Bob Moye decided to buy a car with the help of Autobytel.com, a popular online company, he found the Ford Explorer of his dreams. CBS Market Watch reports that Moye is quickly becoming the rule and not the exception when it comes to car buying. --CBS News "How To Save Thousands Buying Online"
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16 ( -2 -12.5% )