Autobytel Inc. Files Form 10-Q Quarterly Report with the SEC and Reports Third Quarter Results
IRVINE, Calif.--Nov. 7, 2005--Autobytel Inc. , a leading Internet automotive marketing services company, today announced it filed with the Securities and Exchange Commission its Form 10-Q Quarterly Report for the third quarter ended September 30, 2005."Autobytel's focus on improving quality began to pay off in the third quarter, and we saw several key metrics move in a positive direction, despite a challenging market environment," said Autobytel President and CEO Rick Post. "We continued to see strength from our finance leads, advertising and CRM business units and a decrease in customer churn across all our business units."
Summary of the Quarter Ended September 30, 2005:
Revenue for the third quarter was $30.6 million, of which $18.6 million was related to Lead Fees, $4.8 million was related to Advertising, $6.2 million was related to CRM services, and $1.1 million was related to Data, Applications and Other.
Operating expenses were $31.4 million in the third quarter. Net loss for the third quarter was $0.3 million, or $0.01 per fully diluted share.
The Company delivered approximately 0.8 million Purchase Requests in the third quarter. Of these, approximately 0.5 million were delivered to retail dealers and approximately 0.3 million were delivered to enterprise dealers. The total number of Purchase Requests delivered to retail and enterprise dealers in the third quarter of 2005 declined by 0.1 million compared to the second quarter of 2005. Additionally, the Company delivered 0.2 million Finance Leads in the third quarter.
As of September 30, 2005, the Company had approximately 6,560 lead referral dealer relationships comprised of approximately 5,850 retail dealer relationships (including approximately 250 suspended dealers) and approximately 710 enterprise dealer relationships attributable to major dealer group customers.
In addition, as of September 30, 2005, the Company had six direct relationships with automotive manufacturers or their automotive buying service affiliates, encompassing 16 vehicle brands representing up to approximately 17,530 enterprise dealer relationships.
As of September 30, 2005, the Company's finance lead referral network included approximately 310 relationships with retail dealers, finance request intermediaries, and automotive finance companies.
In addition, as of September 30, 2005, CRM customer relationships consisted of 2,940 Web Control(R) system and approximately 780 Retention Performance Marketing(R) (RPM(R)) program relationships.
Domestic cash, cash equivalents, and short-term and long-term investments totaled $44.1 million as of September 30, 2005, a reduction of $1 million from June 30, 2005. Net cash used in operations was $0.2 million in the third quarter of 2005.
Business Outlook
"We are committed to being a leader in the very competitive automotive marketing services arena and to innovating the highest quality products and services for our dealer and OEM customers -- as well as for the millions of consumers who use our network," continued Post. "It is imperative that we continue to evaluate strategic alternatives that will help us drive forward our current business to achieve this goal."
Conference Call
A conference call to discuss third quarter 2005 financial results will be webcast live on Monday, November 7, 2005, at 5:00 PM Eastern Time. Participants may listen to a webcast of the live conference call over the Internet by visiting the investor relations section of the Company's website located at: www.autobytel.com. Below is a direct link to the registration page. Please go to the website at least ten minutes prior to the call to register, download, and install any necessary audio software.
http://www.irconnect.com/abtl/conf/3q2005.html
A replay number is available beginning at 8:00 p.m. Eastern Time (5:00 p.m. Pacific Time). The replay of the conference call may be accessed by dialing 800-642-1687 or 706-645-9291 for international callers. The conference ID for the replay is 2255782.
About Autobytel Inc.
Autobytel Inc. , a leading Internet automotive marketing services company, helps retailers sell cars and manufacturers build brands through marketing, advertising, data and CRM products and programs. It's estimated that every 7.4 seconds (a) an American car shopper requests a vehicle through Autobytel, which owns and operates the automotive websites -- Autobytel.com, Autoweb.com, Carsmart.com, Car.com, AutoSite.com, Autoahorros.com, and CarTV.com. This automotive research and buying network reaches millions of car shoppers each month as they make their vehicle buying decisions, generating billions of dollars in sales for dealers. A leader in dealership customer management and CRM solutions, Autobytel also owns and operates AVV, Inc., a top provider of dealership CRM and sales management products, and Retention Performance Marketing, Inc., (RPM(R)), which powers dealerships with cutting-edge customer loyalty and retention marketing programs. Autobytel's (Automotive Information Center) has been a trusted industry source of automotive marketing data and technology for over 20 years. Autobytel Inc. is the only company to achieve top rankings for both its lead management and lead generation services among the nation's top-100 Internet dealers.
(a) Based on 2004 Autobytel Purchase Request data.
AUTOBYTEL INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
(unaudited)
Sept. 30, Dec. 31,
2005 2004
----------- ----------
ASSETS
Current assets:
Domestic cash and cash equivalents $29,149 $24,287
Restricted international cash and cash
equivalents 8,498 9,053
Short-term investments 9,000 16,500
Accounts receivable, net of allowances for
bad debts and customer credits of $1,246
and $1,037, respectively 19,426 17,920
Prepaid expenses and other current assets 3,325 2,344
----------- ----------
Total current assets 69,398 70,104
Long-term investments 6,000 12,000
Property and equipment, net 4,169 3,389
Capitalized internal use software, net 95 225
Goodwill 70,697 70,697
Acquired intangible assets, net 2,651 4,187
Other assets 98 115
----------- ----------
Total assets $153,108 $160,717
=========== ==========
LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $5,205 $5,812
Accrued expenses 7,696 7,990
Current portion of deferred revenues 4,122 4,029
Accrued domestic restructuring - 74
Other current liabilities 2,234 2,216
----------- ----------
Total current liabilities 19,257 20,121
Long-term deferred revenues - 8
----------- ----------
Total liabilities 19,257 20,129
Minority interest 4,247 4,521
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value; 11,445,187
shares authorized; none outstanding - -
Common stock, $0.001 par value; 200,000,000
shares authorized; 42,007,889 and 41,905,848
shares issued and outstanding, respectively 42 42
Additional paid-in capital 282,605 282,287
Accumulated other comprehensive income 1,698 2,099
Accumulated deficit (154,741) (148,361)
----------- ----------
Total stockholders' equity 129,604 136,067
----------- ----------
Total liabilities, minority interest and
stockholders' equity $153,108 $160,717
=========== ==========
AUTOBYTEL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Amounts in thousands, except share and per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------------------------
2005 2004 2005 2004
------------------------------------------------
Revenues $30,595 $32,453 $95,308 $88,193
Costs and expenses:
Cost of revenues 12,811 13,049 38,880 36,465
Sales and marketing 6,069 6,333 21,159 19,416
Product and technology
development 5,713 5,115 18,063 14,925
General and
administrative 6,476 4,411 23,343 11,944
Amortization of
acquired intangible
assets 370 451 1,184 782
------------------------------------------------
Total costs and
expenses 31,439 29,359 102,629 83,532
------------------------------------------------
Income (loss) from
operations (844) 3,094 (7,321) 4,661
Interest income 401 244 1,139 649
Loss in equity investee - - - (84)
Foreign currency
exchange gain 11 - 21 20
Other expense - (10) - (9)
Minority interest - (27) (93) (74)
------------------------------------------------
Income (loss) before
income taxes (432) 3,301 (6,254) 5,163
Benefit (provision)
for income taxes 145 (92) (126) (292)
------------------------------------------------
Net income (loss) $(287) $3,209 $(6,380) $4,871
================================================
Net income (loss) per
share:
Basic $(0.01) $0.08 $(0.15) $0.12
================================================
Diluted $(0.01) $0.07 $(0.15) $0.11
================================================
Shares used in
computing net income
(loss) per share:
Basic 41,955,016 41,757,703 41,922,751 40,413,342
================================================
Diluted 41,955,016 44,300,265 41,922,751 43,917,425
================================================
Comprehensive income
(loss):
Net income (loss) $(287) $3,209 $(6,380) $4,871
Translation
adjustment (87) (61) (401) 6
------------------------------------------------
Comprehensive
income (loss) $(374) $3,148 $(6,781) $4,877
================================================
AUTOBYTEL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(unaudited)
Nine Months Ended
September 30,
-------------------
2005 2004
-------------------
Cash flows from operating activities:
Net income (loss) $(6,380) $4,871
Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating
activities:
Non-cash charges:
Depreciation and amortization 1,315 1,216
Amortization of capitalized internal
use software 202 685
Amortization of acquired intangible assets 1,432 923
Impairment of acquired intangible assets 104 173
Provision for bad debt 621 154
Provision for customer credits 2,330 1,231
Loss (gain) on disposal of property
and equipment (10) 20
Loss in equity investee - 84
Minority interest 93 74
Changes in assets and liabilities, excluding
the effect of acquisitions and consolidation
of Autobytel.Europe:
Accounts receivable (4,457) (2,240)
Prepaid expenses and other current assets (981) (477)
Other assets 17 17
Accounts payable (607) (395)
Accrued expenses (294) (973)
Deferred revenues 85 (616)
Accrued domestic restructuring (74) (137)
Accrued international licensee liabilities - (1,541)
Other current liabilities 18 236
-------------------
Net cash provided by (used in)
operating activities (6,586) 3,305
-------------------
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired - (20,631)
Sale and maturities of short-term and long-term
investments 21,600 17,991
Purchases of short-term and long-term
investments (8,100) (42,500)
Redemptions of long-term investments - 12,000
Changes in restricted international cash and
cash equivalents (213) 2,005
Capitalized internal use software costs (72) -
Purchases of property and equipment (2,177) (1,449)
Proceeds from sale of property and equipment 92 -
-------------------
Net cash provided by (used in)
investing activities 11,130 (32,584)
-------------------
Cash flows from financing activities:
Payments of capital lease obligations - (225)
Net proceeds from sale of common stock 318 3,994
-------------------
Net cash provided by financing
activities 318 3,769
-------------------
Net increase (decrease) in cash and cash
equivalents 4,862 (25,510)
Cash and cash equivalents, beginning of period 24,287 45,643
-------------------
Cash and cash equivalents, end of period $29,149 $20,133
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Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes $588 $84
===================
Cash paid during the period for interest $- $9
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