Autobytel.com Reports First Quarter 2001
Results
Net Loss Cut in Half, Operating Loss Declines Significantly on Stable Revenue,
Placing Company on Path to Profitability for Third Quarter of 2001
IRVINE, Calif., April 26 Autobytel.com
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:
http://www.videonewswire.com/AUTOBYTEL/042601/
http://www.vcall.com/NASApp/VCall/EventPage?ID=73440
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
About autobytel.com inc.
autobytel.com inc. , the global leader in online automotive
commerce, brings car buyers, owners, and sellers together in a trusted
environment, empowered by the Internet. Through its extensive automotive
content and multiple purchasing, financing, insurance and service options,
Autobytel.com offers consumers choice and peace of mind throughout the
automotive lifecycle, while providing its network of accredited dealers and
automotive services partners the most efficient way to reach online car buyers
and owners. Autobytel.com and its wholly-owned subsidiary, A.I.N. Corporation
(Carsmart), have a network of dealers nationwide and are the seventh largest
generator of automotive sales in the United States, just behind GM, Ford,
DaimlerChrysler, Toyota, Honda and Nissan. Autobytel.com has been ranked #1
in Dealer Satisfaction with Online Buying Services for three years in a row by
J.D. Power and Associates.(1) Autobytel.com's low-cost, no-haggle car-buying
program is available in the U.S., Canada (http://www.autobytel.ca), the United
Kingdom (http://www.autobytel.co.uk), Sweden (http://www.autobytel.se), Netherlands
(http://www.autobytel.nl), Japan (http://www.autobytel-japan.com), Australia
(http://www.autobytel.com.au) and Spain (http://www.autobytel.es). Headquartered in Irvine,
California, Autobytel.com is recognized as the company that transformed the
$1 trillion new car industry when it invented online car buying.
(1) J.D. Power and Associates 1998 - 2000 Dealer Satisfaction With Online
Buying Services Studies(SM). 2000 study conducted among dealership Internet
specialists who completed 2,144 evaluations of individual services.
http://www.jdpower.com.
The statements contained in this press release that are not historical
facts are forward-looking statements under the federal securities laws. These
forward-looking statements are not guarantees of future performance and
involve certain risks, uncertainties and assumptions that are difficult to
predict. Actual outcomes and results may differ materially from what is
expressed in, or implied by, such forward-looking statements. Autobytel.com
undertakes no obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or otherwise. Among the
important factors that could cause actual results to differ materially from
those expressed in, or implied by, the forward-looking statements are changes
in general economic conditions, increased or unexpected competition, the
failure to realize anticipated synergies related to the proposed merger with
Autoweb, 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, difficulties in successfully integrating the
parties' businesses and technologies and other matters disclosed in
Autobytel.com's filings with the Securities and Exchange Commission.
Investors are strongly encouraged to review our annual report on Form 10-K for
the year ended December 31, 2000, and other reports on file with the
Securities and Exchange Commission for a discussion of risks and uncertainties
that could affect operating results and the market price of our stock.
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 process 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
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