Autobytel.com Reports Record Financial Results in Fourth Quarter
27 January 2000
Autobytel.com Reports Record Financial Results in Fourth Quarter
Revenue Increases 70 Percent from a Year Ago
IRVINE, Calif., Jan. 27 -- Autobytel.com , the
leading international automotive e-commerce provider, today announced
financial results for the fourth quarter and year ended December 31, 1999.
Revenue for the quarter rose to $12.4 million, a 70 percent increase over
revenue of $7.3 million in the same quarter of the prior year, and a
17 percent sequential increase over revenue of $10.6 million in the quarter
ended September 30, 1999. The percent of total revenue from international
fees and licenses, and from services such as financing and insurance, reached
15 percent, up from 12 percent in the previous quarter.
The net loss in the quarter was $4.9 million, or $0.27 per share, compared
with a net loss of $3.9 million, or $0.46 per share, in the comparable period
a year ago, and a net loss of $6.3 million, or $0.35 per share, in the third
quarter of 1999.
"By achieving record growth while controlling costs, we are making great
progress in building the long term value of our business," said Mark Lorimer,
President and CEO of Autobytel.com. "We continue to outperform all other
online car buying services as we set the standard for serving consumers and
providing innovative ways for our dealers and strategic partners to build
their Internet business."
"With the introduction of AutobytelDIRECT earlier this week, we once again
have leapfrogged the competition," said Lorimer. "With AutobytelDIRECT,
click-and-buy is a reality, making buying a car at Autobytel.com as easy as
buying a book at Amazon.com. Only Autobytel.com has the combination of
experience, infrastructure and resources to successfully implement a true and
scalable direct-to-consumer online sales model."
"Choice is oxygen on the Internet and we now offer consumers three
distinct options for purchasing a vehicle, all on one site. They can buy
direct, selecting a vehicle from thousands upon thousands of pre-priced cars
online, or submit a purchase request for a vehicle through our classic
car-buying program, or participate in the most comprehensive auction service
on the Internet."
According to Lorimer, Autobytel.com continues to expand its international
businesses at a rapid rate. "An obvious indication of Autobytel.com's
industry leadership position is our success in attracting international
partners and investors to leverage our brand name and business model in Europe
and Asia Pacific. With our alliances in Japan, Australia, the United Kingdom
and Sweden, and the newly formed Autobytel Europe, we are the only global
e-commerce auto player. We anticipate launching online services in many
countries, including Finland, Denmark, Norway, the Netherlands, and Belgium,
in 2000," he said.
For the year, revenue reached $40.3 million, a 69 percent increase over
revenue of $23.8 million in 1998. The net loss for the year was
$23.3 million, or $1.48 per share, compared with a net loss of $19.4 million,
or $2.30 per share, in 1998. The Company reported that as of December 31,
1999, cash and cash equivalents totaled $85.5 million.
"We also proved the scalability of our core business by achieving records
in both the size of our dealer network and the monthly subscription fees,"
said Lorimer. The Company reported that its network of paying dealers
increased to 3,323, up 8 percent from the previous quarter, and up 39 percent
for the year. Average monthly dealer fees reached $1,109, a 5 percent
increase from the previous quarter, and an increase of 9 percent from the
comparable period a year ago.
The number of purchase requests sent to dealers in the fourth quarter was
475,000, an increase of 35% over the same period last year, and a decline of
19 percent from the record 590,000 purchase requests in the third quarter.
"We anticipated a decline in purchase requests from the blistering third
quarter pace, and we believe it is also reflective of the enormous ".com"
advertising levels in the fourth quarter, and an accompanying decline in car
sales nationwide," said Lorimer. "What the fourth quarter shows us is that
our blend of subscription and transaction based revenue streams enables us to
vigorously grow and scale our business with great visibility."
About autobytel.com inc.
Internationally-branded Autobytel.com ( http://www.autobytel.com ) is the
acknowledged leader in online automotive commerce(1). The most comprehensive
automotive Internet site, Autobytel.com offers consumers a positive purchasing
and ownership experience, while providing its Accredited Dealer Network with
the most efficient way to reach online car buyers. As it assists consumers
through every aspect of the automotive lifecycle, Autobytel.com provides
continuity into the next vehicle purchase. Launched in March 1995,
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 ),
Japan ( http://www.autobytel-japan.com ) and Sweden ( http://www.autobytel.se ). In 1999,
Autobytel.com was ranked #1 in Dealer Satisfaction with Online Buying Services
for the second year in a row(2).
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 Autobytel.com's 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 close the acquisition of A.I.N. Corporation,
changes in A.I.N. Corporation's financial performance, and other matters
disclosed in Autobytel.com's filings with the Securities and Exchange
Commission.
(1) As reported by J.D. Power and Associates, Autobytel.com accounts for
45% of all new vehicles sold through an online service. (8.23.99).
(2) J.D. Power and Associates 1998-1999 Dealer Satisfaction With Online
Buying Services Studies(SM). 1999 study conducted among dealership
Internet specialists who completed 1,024 individual evaluations.
autobytel.com inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)
Three Months Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
Revenues $12,438 $7,327 $40,298 $23,826
Operating expenses:
Sales and marketing 12,143 7,784 44,176 30,033
Product and technology
development 4,464 2,312 14,262 8,528
General and administrative 1,782 1,892 6,931 5,908
Acquisition costs -- -- 601 --
Stock based compensation 272 -- 1,063 --
Total operating expenses 18,661 11,988 67,033 44,469
Loss from operations (6,223) (4,661) (26,735) (20,643)
Interest and other income, net 1,318 779 3,468 1,280
Loss before provision for
income taxes (4,905) (3,882) (23,267) (19,363)
Provision for income taxes (1) 4 53 35
Net loss $(4,904) $(3,886) $(23,320) $(19,398)
Basic and diluted net loss
per share $(0.27) $(0.46) $(1.48) $(2.30)
Basic and diluted net loss
per share excluding
acquisition costs $(0.27) $(0.46) $(1.44) $(2.30)
Shares used in computing
basic and diluted net loss
per share 18,158,047 8,503,873 15,766,406 8,423,038
autobytel.com inc.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
ASSETS
December 31, December 31,
1999 1998
Current assets:
Cash and cash equivalents $85,457 $27,984
Accounts receivable, net 4,593 2,315
Other current assets 2,819 1,353
Total current assets 92,869 31,652
Property and equipment, net 1,630 2,208
Other assets 373 347
Total assets $94,872 $34,207
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $11,049 $3,830
Deferred revenue 6,147 4,008
Other current liabilities 917 378
Total current liabilities 18,113 8,216
Deferred rent 53 123
Total liabilities 18,166 8,339
Total stockholders' equity 76,706 25,868
Total liabilities and stockholders'
equity $94,872 $34,207