Autobytel Inc. Reports Second Quarter 2002 Financial Results
IRVINE, Calif.--July 25, 2002--Autobytel Inc. , a leading Internet automotive marketing services company, today announced second quarter 2002 financial results.Highlights include:
| -- | Net Loss of $0.02 per Share -- Lowest in company's History |
| -- | Pro Forma EBITDA of $0.01 per Share |
| -- | Cash Balance of $23.4 Million |
| -- | Average Revenue per Purchase Request Increased 11% |
| -- | Average Monthly Dealer Fees Increased 6% |
"We are pleased to report our third consecutive quarter of pro forma EBITDA profitability. Our net loss of $0.6 million, or $0.02 per share, is the lowest in the history of Autobytel. During the quarter, we made measurable improvements in many areas of our business. I believe that this progress continues to set the stage for improved revenue and profit growth in the future," said Jeffrey Schwartz, president and CEO of Autobytel Inc.
On a GAAP (Generally Accepted Accounting Principles) basis, revenue for the second quarter ended June 30, 2002, totaled $20.8 million, compared with revenue of $15.7 million for the second quarter ended June 30, 2001, an increase of 32%, and revenue of $20.7 million in the first quarter ended March 31, 2002. Revenue excludes Autoweb results prior to the acquisition on Aug. 14, 2001.
Pro forma earnings before interest, taxes, depreciation, amortization and one-time charges (EBITDA) for the second quarter of 2002 were $0.4 million or $0.01 per share. This compares with pro forma EBITDA of $(4.9) million, or $(0.24) per share, for the second quarter ended June 30, 2001 and pro forma EBITDA of $0.6 million, or $0.02 per share, for the first quarter ended March 31, 2002. Pro forma EBITDA excludes Autoweb results prior to the acquisition on Aug. 14, 2001.
The company reported a net loss for the second quarter ended June 30, 2002 of $0.6 million or $0.02 per share. This compares with a net loss for the second quarter ended June 30, 2001 of $36.6 million, or $1.80 per share, and a net loss for the first quarter ended March 31, 2002 of $18.5 million or $0.59 per share.
As of June 30, 2002, cash, cash equivalents and restricted cash were $23.4 million, a decrease of $3.9 million from the cash balance at March 31, 2002.
Highlights for the Second Quarter
Revenues: Autobytel reported second quarter revenues of $20.8 million, of which $15.4 million was related to Program Fees, $2.7 million was related to Enterprise Sales, $1.6 million was related to Advertising, and $1 million was related to Other Products and Services.
Pro Forma Operating Expenses: Total pro forma operating expenses in the second quarter were $20.4 million. Sales and marketing expenses totaled $13.2 million, including customer acquisition costs. Product development and technology costs totaled $4.9 million. General and administrative costs totaled $2.4 million.
Unique Visitor Count: Autobytel's four Web site properties, Autobytel.com, Autoweb.com, Carsmart.com and Autosite.com, received more than 3.9 million unique visitors in June of 2002, according to Nielsen Net Ratings, positioning the company as the number one online car-buying and research network.
Purchase Requests: The company delivered approximately 1 million Purchase Requests to its dealers during the second quarter of 2002, which was flat compared with the first quarter of 2002. Revenue per Purchase Request increased 11%, from $16.19 in the first quarter of 2002 to $17.92 in the second quarter of 2002.
Dealer Count: The company reported approximately 9,400 dealer relationships, 5,900 of which were program dealer relationships. Average monthly dealer fees increased 6% from $787 in the first quarter of 2002 to $836 in the second quarter of 2002. The remaining 3,500 dealer relationships were accounted for under the company's enterprise sales initiatives.
Headcount: As of June 30, 2002, the company had approximately 223 employees, down from 261 in the first quarter of 2002. The reduction reflects a continuation of the efforts begun last year to reduce costs and improve operating efficiency subsequent to Autobytel's acquisition of Autoweb.
Used Car Program: The company continues to focus on its used car program, unique in the industry for its real-time inventory and dealer-backed certified vehicles. Used car Purchase Requests increased 16% from approximately 110,000 in the first quarter to 128,000 in the second quarter of 2002. During the quarter, approximately 75% of the used car inventory was less than 30 days old, the highest level in the company's history. Inventory was flat at 130,000 vehicle listings.
New Product Launch: In April, the company launched RPM (Retention-Performance-Marketing), the dealership service reminder program, marking the company's entry into the $400 million service reminder category. Approximately 70 dealerships are on the program and the company expects to build out its sales force in the next quarter to accelerate sales of the product.
"We are very pleased not only with our initial success in rolling out RPM, but also with the results that dealers are having with this product. With consumer response at a rate of 24%, dealers are getting a return on investment of $17 for every $1 they spend," commented Schwartz.
Quality Initiatives: In line with the company's focus on improving the quality of its marketing relationships and customer relations, the company launched Dealer Call Center and enhanced its dealer training programs. The Dealer Call Center was developed to help dealers turn more online leads into showroom sales by promptly responding to Internet customers. To date, more than 100 dealers are using the program.
Pro Forma Results
The pro forma operating results for the second quarter of 2002 exclude the following items on the company's Consolidated Statements of Operations:
| -- | Restructuring and other charges and benefits |
| -- | Depreciation, amortization and stock-based compensation |
A reconciliation of GAAP to pro forma is included in the attached Consolidated Statements of Operations.
Business Outlook
The company reaffirmed previously disclosed guidance for the full year 2002 of revenue between $85 and $90 million and pro forma EBITDA of $0.07 and $0.09 per share.
Conference Call
In conjunction with Autobytel Inc.'s second quarter 2002 earnings release, there will be a conference call broadcast live over the Internet today, July 25, 2002, at 4:30 p.m. EDT. Links to the webcast conference call follow: http://www.irconnect.com/abtl/pages/conference.mhtml
The webcast will be archived within 24 hours of the end of the call until the next quarter's earnings announcement. To listen to the archived webcast go to: http://www.autobytel.com/info/investor.
About Autobytel Inc.
Autobytel, a leading Internet automotive marketing services company, helps retailers sell cars and manufacturers build brands through marketing and CRM (customer relationship management) programs. Autobytel owns and operates the popular Web sites Autobytel.com, Autoweb.com, Carsmart.com and Autosite.com, as well as AIC (Automotive Information Center), a leading provider of automotive marketing data and technology.
Autobytel generated an estimated four percent of all domestic new vehicle sales -- $17 billion in car sales in 2001 -- for dealers through its Web sites. With approximately 9,400 dealer relationships and 30 international automotive manufacturer customers, Autobytel is the largest syndicated car-buying content network, reaching millions of unique visitors as they are making their vehicle buying decisions. Autobytel content and technology has potential exposure to more than 90 percent of total Web traffic.(a)
The statements contained in this news 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 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, the economic impact of recent or future terrorist attacks, increased dealer attrition, pressure on program fees, increased or unexpected competition, that actual costs and expenses exceed the charges taken by the company, the company's failure to realize anticipated synergies related to the merger with Autoweb and difficulties associated with successfully integrating the parties' businesses and technologies, changes in laws and regulations and other matters disclosed in Autobytel'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 Dec. 31, 2001, and other filings with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect operating results and the market price of the company's stock.
(a) Jupiter Media Metrix October 2001 Digital Media Audience Report (Autobytel sites is the unduplicated audience of the Autobytel and Autoweb properties and Carsmart.com. The car-buying and ownership category as defined by Autobytel. Autobytel Inc. provides content to Yahoo! Inc., AOL websites, MSN.com and Lycos.com. The unduplicated audience of these four sites accounts for more than 90 percent of total traffic.)
Autobytel Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)
(unaudited)
Second Quarter Ended June 30, 2002 (a)
Pro Forma
GAAP Adjustments Pro Forma (b)
Revenues
Program fees $ 15,441 $ -- $ 15,441
Enterprise sales 2,743 -- 2,743
Advertising 1,639 -- 1,639
Other products
and services 1,008 -- 1,008
Total
revenues 20,831 -- 20,831
Operating expenses:
Sales and
marketing 13,236 (38) (c) 13,198
Product and
technology
development 5,723 (868) (c) 4,855
General and
administrative 2,404 (43) (c) 2,361
Goodwill
impairment -- -- --
Autobytel.Europe
restructuring
and other international
charges -- -- --
Domestic
restructuring
and other
(benefits)
charges (58) 58 (f) --
Total
operating
expenses 21,305 (891) 20,414
Loss from
operations (474)
Pro forma EBITDA
(b) 891 417
Interest income, net 113 -- 113
Foreign currency
exchange gain
(loss) (13) -- (13)
Equity loss in
unconsolidated
subsidiaries (232) -- (232)
Income (loss)
before minority
interest
and income
taxes (606) 891 285
Minority interest -- -- --
Income (loss)
before income
taxes (606) 891 285
Provision for income
taxes 1 -- 1
Net income (loss) $ (607) $ 891 $ 284
Loss from
operations/Pro forma
EBITDA per share
Basic $ (0.02) $ 0.01
Diluted $ (0.02) $ 0.01
Net income (loss) per
share
Basic $ (0.02) $ 0.01
Diluted $ (0.02) $ 0.01
Shares used in
computing income
(loss) per share
Basic 31,137,392 31,137,392
Diluted 31,137,392 35,767,825
Second Quarter Ended June 30, 2001
Pro Forma
GAAP Adjustments Pro Forma (b)
Revenues
Program fees $ 11,541 $ -- $ 11,541
Enterprise sales 1,600 -- 1,600
Advertising 525 -- 525
Other products
and services 2,062 -- 2,062
Total
revenues 15,728 -- 15,728
Operating expenses:
Sales and
marketing 12,833 (51) (c) 12,782
Product and
technology
development 4,614 (259) (c) 4,355
General and
administrative 4,016 (529) (c) 3,487
Goodwill
impairment 21,614 (21,614) (d) --
Autobytel.Europe
restructuring
and other international
charges 11,202 (11,202) (e) --
Domestic
restructuring
and other
(benefits)
charges 869 (869) (g) --
Total
operating
expenses 55,148 (34,524) 20,624
Loss from
operations (39,420)
Pro forma EBITDA
(b) 34,524 (4,896)
Interest income, net 923 -- 923
Foreign currency
exchange gain
(loss) (259) -- (259)
Equity loss in
unconsolidated
subsidiaries -- -- --
Income (loss)
before minority
interest
and income
taxes (38,756) 34,524 (4,232)
Minority interest 2,105 -- 2,105
Income (loss)
before income
taxes (36,651) 34,524 (2,127)
Provision for income
taxes (10) -- (10)
Net income (loss) $ (36,641) $ 34,524 $ (2,117)
Loss from
operations/Pro forma
EBITDA per share
Basic $ (1.94) $ (0.24)
Diluted $ (1.94) $ (0.24)
Net income (loss) per
share
Basic $ (1.80) $ (0.10)
Diluted $ (1.80) $ (0.10)
Shares used in
computing income
(loss) per share
Basic 20,364,619 20,364,619
Diluted 20,364,619 20,364,619
Notes:
(a) Results in the second quarter of 2002 include Autoweb which
was acquired on Aug. 14, 2001.
(b) The Pro Forma Consolidated Statements of Operations are not
presentations in accordance with GAAP (Generally Accepted Accounting
Principles) as they exclude the effects of notes (c) through (g).
(c) Adjustments for depreciation, amortization and stock
compensation expenses of $949 and $839 in the second quarter of 2002
and 2001, respectively.
(d) Adjustment for impairment of goodwill related to the company's
acquisition of A.I.N. Corp.
(e) Adjustments for the restructuring of Autobytel.Europe, the
write-off of obsolete international software and the write-off of
investments in European joint ventures.
(f) Adjustments for benefits related to arbitration recovery and
the reduction of legal fees and negotiated settlements net of charges
related to the company's reduction in workforce, excess facilites and
costs related to an abandoned transaction.
(g) Adjustments for contract termination costs related to online
advertising and the company's aftermarket program, as well as the
write-off of previously capitalized software related to the company's
aftermarket program.
Autobytel Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)
(unaudited)
Six Months Ended June 30, 2002 (a)
Pro Forma
GAAP Adjustments Pro Forma (b)
Revenues
Program fees $ 30,853 $ -- $ 30,853
Enterprise sales 4,727 -- 4,727
Advertising 3,396 -- 3,396
Other products
and services 2,588 -- 2,588
Total
revenues 41,564 -- 41,564
Operating expenses:
Sales and
marketing 25,496 (69) (c) 25,427
Product and
technology
development 11,476 (1,702) (c) 9,774
General and
administrative 5,461 (99) (c) 5,362
Goodwill
impairment -- -- --
Autobytel.Europe
restructuring,
impairment and
other international
charges 15,015 (15,015) (e) --
Domestic
restructuring
and other
(benefits)
charges (58) 58 (g) --
Total
operating
expenses 57,390 (16,827) 40,563
Loss from
operations (15,826)
Pro forma EBITDA
(b) 16,827 1,001
Loss on
recapitalization of
Autobytel.Europe (4,168) 4,168 (i) --
Interest income, net 504 -- 504
Foreign currency
exchange gain
(loss) (12) -- (12)
Equity loss in
unconsolidated
subsidiaries (432) -- (432)
Income (loss)
before minority
interest
and income
taxes (19,934) 20,995 1,061
Minority interest 866 -- 866
Income (loss)
before income
taxes (19,068) 20,995 1,927
Provision for income
taxes 6 -- 6
Net income (loss) $ (19,074) $ 20,995 $ 1,921
Loss from
operations/Pro Forma
EBITDA per share
Basic $ (0.51) $ 0.03
Diluted $ (0.51) $ 0.03
Net income (loss) per
share
Basic $ (0.61) $ 0.06
Diluted $ (0.61) $ 0.05
Shares used in
computing income
(loss) per share
Basic 31,103,469 31,103,469
Diluted 31,103,469 35,733,902
Six Months Ended June 30, 2001
Pro Forma
GAAP Adjustments Pro Forma (b)
Revenues
Program fees $ 24,375 $ -- $ 24,375
Enterprise sales 3,000 -- 3,000
Advertising 718 -- 718
Other products
and services 4,288 -- 4,288
Total
revenues 32,381 -- 32,381
Operating expenses:
Sales and
marketing 26,179 (118) (c) 26,061
Product and
technology
development 8,602 (461) (c) 8,141
General and
administrative 7,620 (1,048) (c) 6,572
Goodwill
impairment 21,614 (21,614) (d) --
Autobytel.Europe
restructuring,
impairment and
other
international
charges 11,202 (11,202) (f) --
Domestic
restructuring
and other
(benefits)
charges 1,861 (1,861) (h) --
Total
operating
expenses 77,078 (36,304) 40,774
Loss from
operations (44,697)
Pro forma EBITDA
(b) 36,304 (8,393)
Loss on
recapitalization of
Autobytel.Europe -- -- --
Interest income, net 2,073 -- 2,073
Foreign currency
exchange gain
(loss) 458 -- 458
Equity loss in
unconsolidated
subsidiaries (500) -- (500)
Income (loss)
before minority
interest
and income
taxes (42,666) 36,304 (6,362)
Minority interest 1,977 -- 1,977
Income (loss)
before income
taxes (40,689) 36,304 (4,385)
Provision for income
taxes 28 -- 28
Net income (loss) $ (40,717) $ 36,304 $ (4,413)
Loss from
operations/Pro Forma
EBITDA per share
Basic $ (2.20) $ (0.41)
Diluted $ (2.20) $ (0.41)
Net income (loss) per
share
Basic $ (2.00) $ (0.22)
Diluted $ (2.00) $ (0.22)
Shares used in
computing income
(loss) per share
Basic 20,359,553 20,359,553
Diluted 20,359,553 20,359,553
Notes:
(a) Results in the six months ended June 30, 2002 include Autoweb
which was acquired on Aug. 14, 2001.
(b) The Pro Forma Consolidated Statements of Operations are not
presentations in accordance with GAAP (Generally Accepted Accounting
Principles) as they exclude the effects of notes (c) through (i).
(c) Adjustments for depreciation, amortization and stock
compensation expenses of $1,870 and $1,627 in the six months
ended 2002 and 2001, respectively.
(d) Adjustment for impairment
of goodwill related to the company's acquistion of
A.I.N. Corp.
(e) Adjustments for the change in Autobytel.Europe's
capital structure and impairment of the company's investment
in Autobytel.Europe.
(f) Adjustments for the restructuring of
Autobytel.Europe, the write-off of obsolete international software and
the write-off of investments in European joint ventures.
(g) Adjustments for benefits related to arbitration recovery and
the reduction of legal fees and negotiated settlements net of charges
related to the company's reduction in workforce, excess facilites and
costs related to an abandoned transaction.
(h) Adjustments for the restructuring of the company's automotive
operations group, contract termination costs related to online
advertising and the company's aftermarket program, as well as the
write-off of previously capitalized software related to the company's
aftermarket program.
(i) Adjustment for loss recognized on reduction of ownership in
Autobytel.Europe from 76.5% to 49%.
Autobytel Inc.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
ASSETS
June 30, Dec. 31,
2002 2001
(unaudited)
Current assets:
Domestic cash and cash
equivalents $ 23,415 $ 30,006
International cash and
cash equivalents -- 28,784
Restricted cash 29 3,047
Accounts receivable, net
of allowance for doubtful
accounts of $4,552 and
$7,109, respectively 9,905 8,519
Prepaid expenses and other
current assets 4,035 4,419
Total current assets 37,384 74,775
Property and equipment, net 2,599 2,889
Capitalized software, net 4,668 4,319
Investment in unconsolidated
subsidiary 4,747 --
Goodwill, net 8,644 8,644
Other assets 96 154
Total assets $ 58,138 $ 90,781
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,673 $ 9,108
Accrued expenses 4,283 9,005
Deferred revenues 4,411 4,708
Customer deposits 86 92
Other current liabilities 338 300
Total current liabilities 13,791 23,213
Long-term liabilities 366 --
Total liabilities 14,157 23,213
Minority interest -- 7,173
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; 31,138,198 and
30,969,377 shares issued and
outstanding, respectively 31 31
Additional paid-in capital 203,518 203,280
Accumulated other comprehensive
loss (16) (2,438)
Accumulated deficit (159,552) (140,478)
Total stockholders' equity 43,981 60,395
Total liabilities and
stockholders' equity $ 58,138 $ 90,781
Note: Balances as of June 30, 2002 exclude consolidation of
Autobytel.Europe.