Description:
Irvine, CA - July 29, 1999 -- Autobytel.com (Nasdaq: ABTL), the global leader in automotive e-commerce and services, today announced financial results for the second quarter and six months ended June 30, 1999.
Revenues for the quarter rose to $9.2 million, a 70 percent increase over revenues of $5.4 million in the same quarter a year ago, and a 15 percent increase over revenue of $8.0 million in the first quarter of 1999. The net loss in the second quarter amounted to $6.0 million, or $0.33 per share, compared with a net loss of $3.1 million, or $0.37 per share, in the comparable period a year ago, and a net loss of $6.1 million, or $0.68 per share in the first quarter of 1999.
For the six months, revenues expanded to $17.2 million, up 72 percent over revenues of $10.0 million in the first six months of the prior year. The net loss for the six months was $12.1 million, or $0.90 per share, compared with a net loss of $10.0 million, or $1.19 per share, in the same period of the prior year.
"Our second quarter growth reflects the record number of new paying dealers that joined the Autobytel.com network, as well as expanded revenues derived from new business sectors. During the quarter, we recorded a 12 percent sequential increase in the number of paying dealers in our network, from 2,560 to 2,865," said Mark Lorimer, President and CEO of Autobytel.com. "In addition, we saw a 140% sequential increase in our international and value-added service fees, which grew to 11 percent of total revenue in the second quarter, compared to 5 percent in the first quarter of 1999. Year over year, our international and value added service fees grew by over 700%."
According to Lorimer, the number of vehicle purchase requests sent to dealers in the second quarter reached a record 512,000, a 5 percent increase from the first quarter of 1999, and a 74 percent increase over the same quarter a year ago. "Historically, some seasonality in our business has resulted in a slight dip in purchase requests from the first to second quarter. Our ability to overcome that seasonality this year demonstrates even greater success in reaching our target market - the serious car buyer," he said.
"In the second quarter, 35 percent of Autobytel.com visitors that completed purchase requests came directly to our site, rather than relying on a portal, up from 20 percent in the same quarter last year," said Lorimer. "This is a result of our successful branding and marketing efforts. Recent polls by Opinion Research Corporation indicate that Autobytel.com ranks among the top seven e-commerce companies overall in brand awareness, and is the clear brand awareness leader in the online car buying and service segment. Last week we launched a $15 million advertising campaign to further broaden our brand leadership position."
"In recent months, we've also developed and launched several valuable programs for our customers, including an insurance center where consumers can compare quotes in real time and purchase a policy from one of four leading auto insurers, as well as a service and maintenance site that provides service reminders and allows consumers to schedule dealer visits," said Lorimer. "In early July, through an arrangement with Toyota, we also became the first online auto service to offer an extended manufacturer warranty directly to the consumer. Finally, just last week, we announced an auto finance service that will provide consumers with up to four on-line quotes to either finance a new car purchase or refinance an existing loan. These programs provide both more information and more choices for consumers, and allow Autobytel.com to maintain its relationship with customers throughout the vehicle ownership life cycle. We will be enhancing and expanding all of these services in future months."
Separately, Autobytel.com announced a definitive agreement to acquire the outstanding stock of privately-held W.G. Nichols and a related entity, Marine Information Technology, of West Chester, Pennsylvania for $13 million in cash and 253,923 shares of common stock. W.G. Nichols is the publisher of the highly respected Chilton series of automobile repair manuals, with over 180 titles in publication, and Marine Information Technology publishes repair and maintenance procedures for watercraft. "Autobytel.com's strategy is to leverage our global leadership position in online auto purchasing to provide Internet solutions to consumers over the entire life cycle of a vehicle," said Lorimer. "The highly respected and unique Chilton automotive content, which we expect will prove valuable to consumers and Autobytel.com service partners alike, represents a highly complementary fit with our strategic objectives. This acquisition enables us to accelerate our penetration into the ownership portion of the vehicle life cycle, the cornerstone of which is service, repair and parts." The transaction is expected to close in the third quarter of 1999.
autobytel.com inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
1999
1998
1999
1998
Revenues
$ 9,203
$ 5,405
$ 17,235
$ 10,037
Operating expenses:
Sales and marketing
11,027
5,470
20,984
13,929
Product and technology
development
3,216
1,969
5,582
3,864
General and administrative
1,770
1,190
3,361
2,536
Stock based compensation
282
-
508
-
Total operating expenses
16,295
8,629
30,435
20,329
Loss from operations
(7,092)
(3,224)
(13,200)
(10,292)
Interest and other income, net
1,111
163
1,119
348
Loss before provision for income taxes
(5,981)
(3,061)
(12,081)
(9,944)
Provision for income taxes
3
10
44
25
Net loss
$ (5,984)
$ (3,071)
$ (12,125)
$ (9,969)
Basic and diluted net loss per share
$ (0.33)
$ (0.37)
$ (0.90)
$ (1.19)
Shares used in computing basic and diluted
net loss per share
17,875,150
8,373,772
13,476,613
8,349,244
Autobytel contact
Hoshi Printer
infoearnings@autobytel.com
949-862-3099
CHILTON© is a registered trademark of Cahners Business Information, a division of Reed Elsevier Inc., and has been licensed to W. G. Nichols, Inc. |
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