Autoweb Reports First Quarter Results
SANTA CLARA, Calif., April 25 Autoweb.com ,
a leading consumer automotive Internet service, today announced financial
results for the first quarter ended March 31, 2001.
Net revenues for the first quarter of 2001 were $10.1 million, compared to
$15.8 million for the first quarter of 2000 and $9.8 million for the fourth
quarter of 2000.
Pro-forma net loss for the first quarter of 2001 was $5.6 million, or
$0.19 per share, compared to $7.2 million, or $0.28 per share for the first
quarter of 2000 and $11.3 million, or $0.38 per share for the fourth quarter
of 2000. Pro-forma EBITDA loss for the first quarter was $3.7 million
compared to pro-forma EBITDA losses in the first and fourth quarters of 2000
of $5.3 million and $9.3 million respectively. The pro-forma net loss and
pro-forma EBITDA for the first quarter of 2001 exclude a sales and marketing
settlement charge of $12.6 million related to the favorable restructuring of
the Company's partnership agreements, and acquisition related costs of
$850,000 associated with the recently announced merger agreement with
Autobytel. Net loss for the first quarter, which includes the items noted
above, was $19.1 million, or $0.65 per share, compared to $7.2 million, or
$0.28 per share in the first quarter of 2000 and $14.4 million, or $0.49 per
share in the fourth quarter of 2000.
"We see the first quarter as a success by every measure, as we returned to
sequential revenue growth and improved along key financial metrics, such as
gross profit margins and cash flow. Additionally, we completed the
restructuring of our marketing programs, reducing future obligations at
March 31, 2001 by approximately $40 million," said Jeffrey Schwartz, President
and CEO of Autoweb. "We are also proceeding according to plan with our merger
agreement with Autobytel, which will create a leading force in the online
automotive business."
Autoweb's CFO, Michael Schmidt added, "Our intense focus on increasing the
profitability of our revenues has enabled us to continue our trend toward cash
profitability while maintaining a cash position of $13.2 million at the end of
the first quarter. This is particularly impressive considering that we have
now completed our restructuring and satisfied all related financial
obligations. Both our financial results and cash position at the end of this
quarter reflect a significant reduction in our quarterly cash loss, as well as
improvements in key balance sheet metrics."
First Quarter Conference Call
Autoweb's first quarter 2001 conference call will be held on Wednesday,
April 25, 2001 at 4:30 p.m. ET. To listen to the call over the Internet,
please connect to: http://www.videonewswire.com/AUTOWEB/042501/. A replay of
the call will be available through May 2, 2001 at 800-642-1687.
About Autoweb
Autoweb.com is a leading automotive Internet service, guiding users
through every stage of vehicle ownership. Through its direct and referral
commerce channels, Autoweb.com offers consumers a variety of ways to purchase
new and used vehicles in conjunction with vehicle manufacturers, local Member
Dealers and other commerce partners. The Company's Web site also provides
consumers with a wide range of automotive-related products to support the
complete lifecycle of the vehicle, including finance, insurance and
maintenance. Autoweb.com features comprehensive, unbiased research from its
Automotive Information Center (AIC) division.
Autoweb also continues to set the standard in the business-to-business
marketplace by providing Web sites with the most advanced technology to view
automotive information, and accurate and reliable automotive data and content.
Currently, major automobile manufacturers, including DaimlerChrysler, Ford,
General Motors, Honda and Toyota, use Autoweb's automotive data to power their
sites. Some of the major consumer portals also use Autoweb's content and
technology, including AOL, Yahoo, Lycos, MSN and Carpoint. AutoSuite is
highly configurable for any individual AIC customer, as the interface can
match look and feel, while vehicles (both target and competitor) and specific
features can be limited to desired selections. For more information, please
visit http://www.autoweb.com and http://www.autosite.com.
Safe Harbor Statement:
Certain statements in this news release, including statements that include
words such as "expects," "believes" or other future-oriented statements, are
forward-looking statements. Forward-looking statements involve risks and
uncertainties that could cause actual results to differ from anticipated
results. In particular, factors that could cause Autoweb not to reach
profitability in 2001 include, but are not limited to: our ability to attract
consumers through existing portal relationships; the combined viability of
current and new car buying process on our site; consumer acceptance of online
car buying and our ability to continue to reduce expenses without comparable
or greater revenue reductions; and the effect of the restructuring of certain
marketing agreements; the failure to realize anticipated synergies related to
the proposed merger with Autobytel.com, failure to obtain required stockholder
or regulatory approvals or the merger not closing for any other reason,
failure of the combined company to retain and hire key employees, and
difficulties in successfully integrating the parties' businesses and
technologies. Other risks and uncertainties include the fact that the Company
received a Nasdaq Staff Determination letter on March 1, 2001, indicating that
the Company has failed to comply with the minimum bid price requirement for
continued listing, and is subject to delisting from the Nasdaq National
Market; changes in competitive behavior or market forces; uncertainties
regarding response from the vehicle manufacturers; changes in the legal or
regulatory environment, changes or lack of changes in consumer preferences
over time, technological challenges and an inability to forecast future
traffic and transactions. Further information on risk factors that could
affect results is detailed in Autoweb's filings with the Securities and
Exchanges Commission, including its Registration Statement on Form S-1
(No. 333-71177) and its Form 10-Q for the quarter ended September 30, 2000,
filed with the Securities and Exchanges Commission, including (without
limitation) under the captions, "Risk Factors" and "Management's Discussion
and Analysis of Financial Condition and Results of Operations." Additional
information which is set forth in those sections in Autoweb's Annual Report on
Form 10-K for the year ended December 31, 2000.
AUTOWEB.COM, INC.
CONDENSED BALANCE SHEETS
(In thousands)
March 31, December 31,
2001 2000
ASSETS
Current assets:
Cash, cash equivalents and
short term investments $13,191 $27,137
Accounts receivable, net 8,545 8,518
Prepaid expenses and other
current assets 5,716 10,149
Total current assets 27,452 45,804
Property and equipment, net 1,887 2,285
Intangible assets, net 10,104 11,878
Deposits 177 177
Total assets $39,620 $60,144
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other accrued expenses $2,425 $3,705
Accrued payroll and related expenses 897 991
Deferred revenue 540 773
Current portion of notes and lease
obligations payable 205 314
Total current liabilities 4,067 5,783
Notes and lease obligations, net of
current portion 0 0
Total liabilities 4,067 5,783
Stockholders' equity 35,553 54,361
Total liabilities and stockholders' equity $39,620 $60,144
AUTOWEB.COM, INC.
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended
March 31,
2001 2000
Net revenues $10,094 $15,794
Cost of net revenues 1,919 1,661
Gross profit 8,175 14,133
Operating expenses:
Sales and marketing 8,389 14,667
Sales & marketing -- settlement charge 12,635 0
Product development 1,595 1,926
General and administrative 2,065 2,922
Merger related costs 850 0
Stock based compensation 312 419
Amortization of intangibles 1,775 1,745
Total operating expenses 27,621 21,679
Loss from operations (19,446) (7,546)
Interest and other income, net 325 318
Net loss ($19,121) ($7,228)
Net loss per share:
Basic and diluted $(0.65) $(0.28)
Weighted average shares -- basic and diluted 29,535 25,503
Supplemental Financial Data
Pro forma EBITDA (1) ($3,690) ($5,331)
Pro forma net loss (2) ($5,636) ($7,228)
Weighted average net loss
per share -- basic and diluted (3) $(0.19) $(0.28)
(1) Defined as pro forma net loss before interest, depreciation and
amortization.
(2) Defined as net loss exclusive of merger related costs and sales &
marketing settlement charge.
(3) Defined as pro forma net loss divided by weighted average shares --
basic and diluted.
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