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News Releases
Autobytel.com Reports Second Quarter 2001 ResultsIRVINE, Calif., July 26, 2001 -- Autobytel.com (Nasdaq:ABTL) today reported financial results for the quarter ended June 30, 2001. Revenue for the second quarter was $15.7 million, down 8 percent from revenue of $17.1 million in the same quarter of the prior year, and down 6 percent sequentially from revenue of $16.7 million in the quarter ended March 31, 2001. For the second quarter, $1.6 million of total revenue was related to an agreement with General Motors, $1.2 million was related to international fees and licenses, and $1.4 million was derived from related products. The company reported a net loss, excluding charges, in the second quarter of $3.0 million or $0.15 per common share, compared with a net loss, excluding charges, of $3.1 million, or $0.15 per common share, for the quarter ended March 31, 2001. The company reported EBITDA, excluding charges, for the second quarter of 2001 of $(4.9) million, or $(0.24) per common share, compared with EBITDA, excluding charges, of $(3.5) million or $(0.17) per common share, for the quarter ended March 31, 2001. In the second quarter, the company incurred $33.6 million of charges resulting from a $21.6 million write down of goodwill associated with the company's acquisition of Carsmart, $6.2 million in costs associated with obsolete international software and write-off of investments in certain ventures, $5.0 million in charges related to the restructuring of Autobytel Europe (ABTE), and $0.8 million in charges related to contract terminations and other costs. The company reported a net loss, including the charges, for the second quarter of 2001 of $36.6 million or $1.80 per common share, compared with a net loss of $9.8 million, or $0.48 per common share, in the same quarter of the prior year, and with a net loss, including charges, of $4.1 million, or $0.20 per common share, in the quarter ended March 31, 2001. As of June 30, 2001, Autobytel.com's cash and cash equivalents were $37 million, excluding $30 million of funds of ABTE. Cash on hand at ABTE may be reduced substantially as a result of ongoing discussions with other investors in ABTE. 2001 Outlook Mark Lorimer, President and CEO of Autobytel.com, reiterated his statement from last week, "We believe we will reach EBITDA break-even in the fourth quarter of 2001 on a combined basis with Autoweb." The company intends to provide updated guidance for the third quarter shortly after the expected closing of the Autoweb transaction during the third quarter. Second Quarter Highlights Acquisition: On April 11, 2001 the company announced the proposed acquisition of Autoweb which is expected to close during the third quarter. The combination of the two companies will provide a broad range of marketing, management, and content services to automotive retailers and manufacturers. "Our recent agreement to combine with Autoweb, once completed, 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," commented Lorimer. Program Fees: Due to the economic environment, which has unfavorably impacted dealer expenditures on online marketing, the company experienced some pressure on program fees and dealer count during the quarter. Lorimer said, "We are confident that, as the new measures we have instituted in our dealer sales and support department take hold, dealers will recognize that Autobytel.com provides one of the most cost effective methods of customer acquisition and will prove to be a key tool in the face of the current economic environment." OEM Relationships: On May 1, 2001, Autobytel.com and General Motors launched a 90 day test of locate-to-order online car buying in metropolitan Washington D.C. with Chevrolet dealers. According to Lorimer, "We are very pleased with the results thus far. D.C. metro area consumers appear to like this model. About 80% of all the vehicles on the 22 dealer lots are listed online." International: On June 28, 2001, the company announced a restructuring of Autobytel Europe (ABTE) to enhance efficiencies. ABTE was formed largely to extend into new businesses with new investors in additional European countries at a time when the capital market climate in general was healthier for online investment. The company intends to continue to do business in Europe. According to Lorimer, President and CEO of Autobytel.com and Chairman of ABTE, "Autobytel is committed to exploring opportunities with new and existing partners in the European market and globally on a case-by-case basis." Product Development: The company plans to introduce new products during subsequent quarters to enhance its portfolio of dealer offerings. "Our strategy has been to provide products and services that generate efficiencies for our dealers and OEMs through the use of the Internet. Over the next several quarters we plan to introduce new dealer centric tools directly related to driving such efficiencies as well as continuing to develop our initiatives with OEMs. Our current locate-to-order test in Washington D.C., working with both dealers and a manufacturer, and the key role Autobytel.com-created dealer tools can play in the future of this industry, make a compelling case for the company's continued focus on this strategic direction. The proposed acquisition of Autoweb, and the expanded dealer body, OEM relationships and significant data tools it can bring, will serve to further extend Autobytel's platform for this strategy," concluded Lorimer. About autobytel.com inc. autobytel.com inc. (Nasdaq:ABTL), 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 has networks of dealers nationwide and is the seventh largest generator of automotive sales in the United States, just behind GM, Ford, DaimlerChrysler, Toyota, Honda and Nissan. 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. 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 dealer attrition, increased pressure on program fees, increased or unexpected competition, that actual costs and expenses of the actions discussed above in this press release exceed the charges taken by the company, the company's failure to realize anticipated synergies related to the proposed merger with Autoweb and difficulties associated with successfully integrating the parties' businesses and technologies if the merger is completed, changes in laws and regulations 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 filings 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. Additional Information and Where to Find It. Autobytel filed a registration statement on Form S-4 in connection with the proposed transaction with Autoweb and mailed a joint proxy statement/prospectus to the stockholders of Autobytel containing information about the proposed transaction. Investors and securityholders are advised to read the joint proxy statement/ prospectus regarding the potential transaction because it contains important information. Investors and securityholders may obtain a free copy of the registration statement and the joint proxy statement/prospectus and other reports, documents, proxy statements and other information filed by Autobytel with the Securities and Exchange Commission at the Commission's web site at www.sec.gov. The joint proxy statement/ prospectus and these other documents may also be obtained free of charge from Autobytel at 949-862-1355 or investor@Autobytel.com.
autobytel.com inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)
(unaudited)
Three Months Ended
June 30, March 31, June 30,
2001 2001 2000
Revenue:
Program fees $11,547 $12,864 $13,935
Automotive consulting 1,600 1,400 --
International 1,201 1,253 1,170
Related products and services 1,380 1,136 1,979
Total revenue 15,728 16,653 17,084
Operating expenses:
Sales and marketing 12,781 13,279 17,892
Product and technology
development 4,356 3,786 6,607
General and administrative 3,487 3,086 3,046
Total operating expenses
before depreciation,
amortization, stock
compensation expense
and charges 20,624 20,151 27,545
Operating loss before
depreciation, amortization,
stock compensation expense
and charges (4,896) (3,498) (10,461)
Depreciation, amortization
and stock compensation
expense 839 787 904
Operating loss before charges (5,735) (4,285) (11,365)
Goodwill impairment 21,614 -- --
International restructuring
and related charges 11,202 -- --
Domestic restructuring and
other charges 869 992 --
Total charges 33,685 992 --
Operating loss (39,420) (5,277) (11,365)
Interest income, net 923 1,150 1,603
Foreign currency exchange gain
(loss) (259) 717 (1)
Equity loss in unconsolidated
subsidiary -- (500) --
Loss before minority interest
and provision for income
taxes (38,756) (3,910) (9,763)
Minority interest gain (loss) 2,105 (128) --
Loss before provision for
income taxes (36,651) (4,038) (9,763)
Provision (benefit) for income
taxes (10) 38 21
Net loss $(36,641) $(4,076) $(9,784)
Basic and diluted net loss per
share $(1.80) $(0.20) $(0.48)
Operating loss before
depreciation, amortization,
stock compensation expense and
charges $(4,896) $(3,498) $(10,461)
Basic and diluted operating loss
per share, before depreciation,
amortization, stock compensation
expense and charges $(0.24) $(0.17) $(0.52)
Net loss, excluding charges $(2,956) $(3,084) $(9,784)
Basic and diluted net loss per
share, excluding charges $(0.15) $(0.15) $(0.48)
Shares used in computing basic
and diluted net loss per share 20,364,619 20,354,430 20,251,218
autobytel.com inc.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
ASSETS
June 30, December 31,
2001 2000
(unaudited)
Current assets:
Cash and cash equivalents,
includes restricted amounts of
$3,317 and $15,029, respectively $67,351 $81,945
Accounts receivable, net of
allowance for doubtful accounts
of $1,716 and $1,494, respectively 6,413 6,638
Prepaid expenses and other current
assets 2,490 4,127
Total current assets 76,254 92,710
Property and equipment, net 1,753 2,537
Investments -- 1,353
Goodwill, net 1,300 23,755
Capitalized software, net 3,626 3,338
Notes receivable -- 530
Other assets 84 86
Total assets $83,017 $124,309
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $10,598 $9,828
Accrued expenses 11,000 7,519
Deferred revenues 5,398 6,360
Customer deposits 187 185
Other current liabilities 180 371
Total current liabilities 27,363 24,263
Other long-term liabilities -- 47
Total liabilities 27,363 24,310
Minority interest 6,682 8,193
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value;
200,000,000 shares authorized;
20,366,848 and 20,336,083 shares
issued and outstanding, respectively 20 20
Warrants 1,332 1,332
Additional paid-in capital 187,444 186,097
Accumulated other comprehensive
loss (3,480) (16)
Accumulated deficit (136,344) (95,627)
Total stockholders' equity 48,972 91,806
Total liabilities and
stockholders' equity $83,017 $124,309
Contacts: Geri Weinfeld, Director, Investor Relations
Geriw@autobytel.com
(949) 225-4553
Melanie Webber, Director, Corporate Communications
Melaniew@autobytel.com
(949) 862-3023
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