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News Releases
Autobytel Inc. Delivers Second Consecutive Quarter of EBITDA ProfitabilityIRVINE, Calif., 2002, April 25, 2002 -- Autobytel Inc. (Nasdaq:ABTL), a leading Internet automotive marketing services company, today announced first quarter 2002 financial results. Highlights include: -- Pro Forma EBITDA of $0.02 per Share -- Cash Balance of $27.3 Million -- Autobytel Europe Restructuring Completed -- Full Year 2002 EBITDA Guidance of $0.07-$0.09 per Share -- Expects to Achieve Net Income Profitability in Fourth Quarter "We are pleased that Autobytel delivered its second consecutive quarter of EBITDA profitability on a pro forma basis," said Jeffrey Schwartz, President and CEO of Autobytel Inc. "The benefits of market leadership and our focus on operational efficiency are starting to take hold. In the first quarter, we delivered growth in both revenue and pro forma EBITDA, reported strong dealer coverage with 8,900 relationships, successfully launched a new dealer product, and sent more than one million qualified car buyers to our dealers. By all counts, we view this quarter as a success and are entering the second quarter with momentum." Revenue for the first quarter ended March 31, 2002 totaled $20.7 million, compared with revenue of $16.7 million for the first quarter ended March 31, 2001, and revenue of $20.5 million in the fourth quarter ended Dec. 31, 2001, all on an as reported basis. Pro forma earnings before interest, taxes, depreciation, amortization and one-time charges (EBITDA) for the first quarter of 2002 were $0.6 million or $0.02 per share. This compares with pro forma EBITDA of $(3.5) million or $(0.17) per share for the first quarter ended March 31, 2001 and pro forma EBITDA of $0.2 million or $0.01 per share for the fourth quarter ended Dec. 31, 2001. The company reported a net loss for the first quarter ended March 31, 2002 of $18.5 million or $(0.59) per share, including a one-time charge of $19.2 million related to the restructuring of Autobytel Europe (ABTE). This compares with a net loss for the first quarter ended March 31, 2001 of $4.1 million or $(0.20) per share, and a net loss for the fourth quarter ended Dec. 31, 2001 of $0.9 million or $(0.03) per share. As of March 31, 2002, cash, cash equivalents and restricted cash were $27.3 million, a decrease of $5.7 million from the domestic cash balance at Dec. 31, 2001. The company no longer consolidates the financial results of ABTE and therefore does not show international cash on its balance sheet as of March 31, 2002. Autobytel Europe (ABTE) completed its restructuring in the first quarter. As part of the restructuring of ABTE, the company reduced its ownership in ABTE to 49%. In connection with the restructuring of ABTE, a charge of $19.2 million was recorded in the first quarter of 2002 to write-off part of the investment in ABTE. The company's original cash investment in ABTE was $5 million. Business Outlook "By focusing rigorously on our core business of providing marketing services to automotive manufacturers and dealers, we have set the stage to achieve net income profitability in the fourth quarter of this year," said Schwartz. "In addition, we are comfortable with the high end of our guidance for both revenue and EBITDA for the full year." The company expects revenue for the second quarter of 2002 to be approximately $21 million and EBITDA per share to be approximately $0.02. The company reiterated its guidance for the full year 2002, expecting revenue to be between $85 and $90 million and EBITDA per share to be between $0.07 and $0.09. The company attributes the guidance to the following factors:
-- Improved pricing dynamics due to its market leadership position
-- Development and implementation of marketing technology that
should yield margin improvements
-- Successful development and launch of new automotive marketing
products
-- Ongoing operational efficiencies and business model
optimization programs
-- Deepening of automotive manufacturer and major dealer group
relationships
Highlights for the First Quarter The company continues to recognize revenues in four business categories: Program Fees, Enterprise Sales, Advertising, and Other Products and Services. Revenues: Autobytel reported first quarter revenues of $20.7 million, of which, $15.4 million was related to Program Fees, $2.0 million was related to Enterprise Sales, $1.8 million was related to Advertising and $1.5 million was related to Other Products and Services. Pro Forma Operating Expenses: Total pro forma operating expenses in the first quarter of 2002 were $20.1 million. Sales and marketing expenses totaled $12.2 million. These expenses include online marketing programs and dealer sales costs. Product development and technology costs totaled $4.9 million. General and administrative costs totaled $3.0 million. Unique Visitor Count: Autobytel's four Web site properties, Autobytel.com, Autoweb.com, Carsmart.com and AutoSite.com, received more than 3.3 million unique visitors in March of 2002 according to Nielsen Net Ratings, positioning the company as the number one online car-buying network. Dealer Count: The company reported approximately 8,900 dealer relationships, 6,200 of which are program dealer relationships. The remaining 2,700 were accounted for under the company's enterprise sales initiatives. Purchase Requests: The company delivered more than 1 million purchase requests to its dealers during the first quarter of 2002. The company expects that the development and launch of yield marketing technology should optimize receipt and delivery of purchase requests and enhance revenues and margins. Headcount: As of March 31, 2002, the company had 261 employees down from 264 in the fourth quarter of 2001. 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. Monthly vehicle searches increased 30% from 3.9 million in January to more than 5 million in March. The program had more than 130,000 vehicle listings at the end of the first quarter. "We are pleased with the growth we have seen in the program in the first quarter as both the number of vehicle searches and the number of qualified car buyers increased substantially. Clearly, the market for online used vehicles is expanding and we will continue to develop our used car program to meet this demand, sensibly, efficiently and without sacrificing the quality that both customers and dealers have come to expect from us." New Product Launch: The company launched RPM (Retention-Performance-Marketing), the next generation dealership service reminder program. RPM is a customer relationship management (CRM) program that makes it more affordable for automotive manufacturers and dealers to retain their car-buying and service customers. "It's clear from initial sign-ups that dealerships and manufacturers want more integrated marketing services," commented Schwartz. "They want a single, best-in-class vendor for all profit centers across the e-mail, Web, print and telephony fulfillment channels." Pro Forma Results The pro forma operating results for the first quarter of 2002 exclude the following items on the company's statements of operations: -- International restructuring and related charges -- Depreciation, amortization and stock-based compensation A reconciliation of GAAP (Generally Accepted Accounting Principles) to pro forma is included in the attached financial statements. Conference Call In conjunction with Autobytel's first quarter 2002 earnings release, there will be a conference call broadcast live over the Internet today, April 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 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 8,900 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) (a) Jupiter Media Metrix October 2001 Digital Media Audience Report (Autobytel Inc. 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 Web sites, MSN.com and Lycos.com. The unduplicated audience of these four sites accounts for more than 90 percent of total traffic.) 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, increased 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 the company's 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.
Autobytel Inc.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
ASSETS
March 31, December 31,
2002 2001
(unaudited)
Current assets:
Domestic cash and cash equivalents $ 24,315 $ 30,006
International cash and cash equivalents -- 28,784
Restricted cash 3,017 3,047
Accounts receivable, net of allowance
for doubtful accounts
of $5,161 and $7,109, respectively 8,850 8,519
Prepaid expenses and other current assets 3,295 4,419
Total current assets 39,477 74,775
Property and equipment, net 2,901 2,889
Capitalized software, net 4,732 4,319
Investment in unconsolidated subsidiary 4,779 --
Goodwill, net 8,644 8,644
Other assets 154 154
Total assets $ 60,687 $ 90,781
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,531 $ 9,108
Accrued expenses 4,638 9,005
Deferred revenues 4,634 4,708
Customer deposits 82 92
Other current liabilities 301 300
Total current liabilities 16,186 23,213
Total liabilities 16,186 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; 31,137,099 and
30,969,377 shares issued and
outstanding, respectively 31 31
Additional paid-in capital 203,460 203,280
Accumulated other comprehensive loss (45) (2,438)
Accumulated deficit (158,945) (140,478)
Total stockholders' equity 44,501 60,395
Total liabilities and stockholders'
equity $ 60,687 $ 90,781
Note: Balances as of March 31, 2002 exclude Autobytel.Europe.
Autobytel Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended March 31
(Amounts in thousands, except share and per share data)
(unaudited)
First Quarter 2002(a) First Quarter 2001
As Pro Forma Pro As Pro Forma Pro
Reported Adjustments Forma Reported Adjustments Forma
Revenues
Program fees $ 15,412 $ -- $ 15,412 $ 12,834 $ -- $ 12,834
Advertising 1,757 -- 1,757 193 -- 193
Enterprise sales 1,984 -- 1,984 1,400 -- 1,400
Other products
and services 1,580 -- 1,580 2,226 -- 2,226
Total revenues 20,733 -- 20,733 16,653 -- 16,653
Operating expenses:
Sales and
marketing 12,260 (31)(b) 12,229 13,346 (67)(b) 13,279
Product and
technology
development 5,753 (834)(b) 4,919 3,988 (202)(b) 3,786
General and
administrative 3,057 (56)(b) 3,001 3,604 (519)(b) 3,085
International
restructuring
and related
charges 19,183 (19,183)(c) -- -- -- --
Domestic
restructuring
and other
charges -- -- -- 992 (992)(d) --
Total operating
expenses 40,253 (20,104) 20,149 21,930 (1,780) 20,150
Loss from
operations,
as
reported (19,520) (5,277)
Pro forma
EBITDA(e) 20,104 584 1,780 (3,497)
Interest
income, net 391 -- 391 1,150 -- 1,150
Foreign currency
exchange gain (loss) 1 -- 1 717 -- 717
Equity loss in
unconsolidated
subsidiary (200) -- (200) (500) -- (500)
Income (loss)
before minority
interest
and income
taxes (19,328) 20,104 776 (3,910) 1,780 (2,130)
Minority
interest 866(f) -- 866 (128) -- (128)
Income (loss)
before
income
taxes (18,462) 20,104 1,642 (4,038) 1,780 (2,258)
Provision for
income taxes 5 -- 5 38 -- 38
Net income
(loss) $(18,467)$ 20,104 $ 1,637 $ (4,076)$ 1,780 $(2,296)
Loss from operations/EBITDA per share
Basic $ (0.63) $ 0.02 $ (0.26) $ (0.17)
Diluted $ (0.63) $ 0.02 $ (0.26) $ (0.17)
Net loss per share
Basic $ (0.59) $ 0.05 $ (0.20) $ (0.11)
Diluted $ (0.59) $ 0.05 $ (0.20) $ (0.11)
Shares used in computing loss per share
Basic 31,069,171 31,069,171 20,354,430 20,354,430
Diluted 31,069,171 35,757,115 20,354,430 20,354,430
Notes:
(a) Results in the first quarter of 2002 include Autoweb which was
acquired on Aug. 14, 2001.
(b) Adjustments for depreciation, amortization and stock compensation
expenses of $921 and $788 in the first quarter of 2002 and 2001,
respectively.
(c) Charges related to the change in Autobytel.Europe's capital
structure of $15,183 and termination of contractual arrangements
of $4,000.
(d) Adjustment for restructuring of the company's automotive
operations group.
(e) Pro forma EBITDA equals loss from operations excluding the
adjustments described in notes (b), (c) and (d).
(f) Represents portion of $4,000 charge allocable to other
Autobytel.Europe shareholders recognized as a benefit by the
company. The $4,000 charge is described in note (c).
Contacts: Geri Weinfeld 949/225-4553 Geriw@autobytel.com Melanie Webber 949/862-3023 Melaniew@autobytel.com |
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