Message #24 From:
NewsBot Date: November 9, 2006 01:42:00 PM
ABTL News Autobytel Inc. Files Form 10-Q Quarterly Report with the SEC and Reports Third Quarter 2006 Results
IRVINE, Calif.--(BUSINESS WIRE)--Autobytel Inc. (Nasdaq:ABTL), 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, 2006.
“During the third quarter, we made significant
progress on our new strategic initiatives, our continued efforts to get
the company on a path back toward profitability, and in our endeavors to
position the company for long term growth. Despite some challenges in
the quarter, we were pleased to see a sequential decrease, on an
absolute basis, in our total expense and continued growth in our dealer
count,” said Autobytel President and CEO Jim
Riesenbach. “We continue to work intently to
launch new products and services that we believe will transform the
Automotive Internet, while improving the Company’s
infrastructure and expense structure. Our ongoing priority is to drive
higher margins and leverage the power of new media for consumers and our
network dealers.”
Summary of the Quarter Ended September 30, 2006:
Revenue for the third quarter of 2006 was $28.2 million, of which $16.5
million was related to Lead Fees, $4.3 million was related to
Advertising, $6.4 million was related to CRM services, and $1.0 million
was related to Data, Applications and Other. Total revenue declined $2.4
million, or 8% from revenue of $30.6 million in the third quarter of
2005.
Operating expenses were $36.4 million in the third quarter of 2006, an
increase of $4.9 million from operating expenses of $31.4 million in the
third quarter of 2005.
Net loss for the third quarter of 2006 was $7.9 million, or a loss of
$0.19 per fully diluted share.
The Company delivered approximately 700,000 Purchase Requests in the
third quarter of 2006. Of these, approximately 500,000 were delivered to
retail dealers and approximately 200,000 were delivered to enterprise
dealers. Additionally, the Company delivered 200,000 Finance Leads in
the third quarter of 2006.
During the third quarter of 2006, the Company changed how it calculates
the number of vehicle lead referral customers. The Company now
calculates a vehicle lead referral customer based on the dealership
physical establishment not on the dealer franchise, and it counts a
customer in a single physical establishment who subscribes to more than
one of our new car lead referral programs as one customer.
The Company’s lead referral dealerships
represent domestic and imported makes of vehicles and light trucks sold
in the United States. At September 30, 2006 and 2005, the Company’s
new car lead referral dealerships, excluding lead referral enterprise
dealerships attributable to automotive manufacturers or their automotive
buying service affiliates, totaled approximately 2,550 and 2,580,
respectively. The Company’s used car lead
referral dealerships, excluding lead referral enterprise dealerships
attributable to automotive manufacturers or their automotive buying
service affiliates, totaled approximately 1,630 and 1,530 at September
30, 2006 and 2005, respectively. Additionally, through our enterprise
sales initiatives, the Company has 10 direct relationships with
automotive manufacturers or their automotive buying service affiliates
encompassing 20 brands.
As of September 30, 2006, the Company's finance lead referral network
included approximately 370 relationships with retail dealers, finance
request intermediaries, and automotive finance companies.
In addition, as of September 30, 2006, CRM customer relationships
consisted of approximately 2,610 Web Control®
system and approximately 950 Retention Performance Marketing®
program relationships.
Domestic cash, cash equivalents, and short-term investments totaled
$32.6 million as of September 30, 2006. Net cash used in operations was
$5.1 million in the third quarter of 2006.
Business Outlook
“We are enthusiastic about the future as we
work tirelessly on launching the new Autobytel,”
said Riesenbach. “As we continue to execute
on our key priorities of transitioning the Company toward a
media-centric business model; providing high value internet marketing
services for our dealer and manufacturer customers, and capturing
integration and growth opportunities between our businesses, the mission
of creating shareholder value will be front and center.”
Conference Call
A conference call to discuss third quarter 2006 financial results will
be webcast live on Thursday, November 9, 2006, 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.
A replay number will be 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. (Nasdaq:ABTL) is one of the largest online automotive
marketplaces, empowering consumers to make smart vehicle choices using
objective automotive data and insightful interactive editorial content.
The result is a convenient car-buying process backed by a nationwide
network of dealers who are committed to providing a positive consumer
experience. Every day consumers choose Autobytel-owned and operated
websites —Autobytel.com, Autoweb.com,
CarSmart.com, Car.com, AutoSite.com, Autoahorros.com, and CarTV.com –
to facilitate their car-shopping decisions. Autobytel’s
ability to attract millions of highly qualified, in-market car buyers
and connect them with retailers has made it a leader in facilitating the
entire customer car-buying lifecycle.
The Company’s innovative marketing,
advertising, data and CRM products, including its Web Control®
customer management system, Retention Performance Marketing (RPM®)
service reminder program, Special Finance LeadsSM,
and AIC® data center, are designed to enable
dealers to offer a premium consumer experience. Since pioneering
pro-consumer online automotive content and purchasing in 1995, Autobytel
has helped more than twenty-seven million car buyers, generating
billions of dollars in car sales for dealers.
FORWARD-LOOKING STATEMENT DISCLAIMER
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 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 terrorist attacks
or military actions, increased dealer attrition, pressure on dealer
fees, increased or unexpected competition, the failure to successfully
launch new products and services, the failure to realize anticipated
synergies from acquired entities, costs related to acquisitions, failure
to retain key employees or attract and integrate new employees,
difficulties in successfully integrating the businesses and technologies
of acquired entities and Autobytel, that actual costs and expenses
exceed the charges taken by Autobytel, changes in laws and regulations,
costs of defending lawsuits and undertaking investigations and related
matters 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 December 31,
2005, 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.
AUTOBYTEL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
(unaudited)
September 30,
December 31,
2006
2005
ASSETS
Current assets:
Domestic cash and cash equivalents
$ 23,633
$ 33,353
Restricted international cash and cash equivalents
349
241
Short-term investments
8,998
12,000
Accounts receivable, net of allowance for bad debts and customer
credits of $806 and $1,124, respectively
17,970
19,042
Prepaid expenses and other current assets
2,102
2,456
Total current assets
53,052
67,092
Long-term investments
-
3,000
Property and equipment, net
4,380
4,226
Goodwill
70,697
70,697
Acquired intangible assets, net
1,039
2,189
Other assets
74
124
Total assets
$ 129,242
$ 147,328
LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 8,101
$ 5,709
Accrued expenses
7,752
7,417
Deferred revenues
2,339
3,874
Other current liabilities
1,589
1,666
Total current liabilities
19,781
18,666
Deferred rent - non-current
157
131
Deferred revenues - non-current
-
21
Total liabilities
19,938
18,818
Minority interest
163
163
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;
42,522,014 and 42,133,410 shares issued and outstanding,
respectively
42
42
Additional paid-in capital
287,928
282,924
Accumulated deficit
(178,829)
(154,619)
Total stockholders' equity
109,141
128,347
Total liabilities, minority interest and stockholders' equity
$ 129,242
$ 147,328
AUTOBYTEL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
(Amounts in thousands, except share and per share data)
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2006
2005
2006
2005
Revenues
$ 28,158
$ 30,595
$ 86,602
$ 95,308
Costs and expenses:
Cost of revenues
13,778
12,811
42,990
38,880
Sales and marketing
6,142
6,069
20,982
21,159
Product and technology development
6,461
5,713
18,268
18,063
General and administrative
9,647
6,476
28,806
23,343
Amortization of acquired intangible assets
350
370
1,060
1,184
Total costs and expenses
36,378
31,439
112,106
102,629
Loss from operations
(8,220)
(844)
(25,504)
(7,321)
Interest income
457
401
1,400
1,139
Foreign currency exchange gain
4
11
9
21
Loss before income taxes and minority interest
(7,759)
(432)
(24,095)
(6,161)
(Provision) benefit for income taxes
(115)
145
(115)
(126)
Minority interest
(5)
-
-
(93)
Net loss
$ (7,879)
$ (287)
$ (24,210)
$ (6,380)
Net loss per share - basic and diluted
$ (0.19)
$ (0.01)
$ (0.57)
$ (0.15)
Shares used in computing net loss per share - basic and diluted
42,437,708
41,955,016
42,323,352
41,922,751
Comprehensive loss:
Net loss
$ (7,879)
$ (287)
$ (24,210)
$ (6,380)
Foreign currency translation adjustment
-
(87)
-
(401)
Comprehensive loss
$ (7,879)
$ (374)
$ (24,210)
$ (6,781)
AUTOBYTEL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(unaudited)
Nine Months Ended
September 30,
2006
2005
Cash flows from operating activities:
Net loss
$ (24,210)
$ (6,380)
Adjustments to reconcile net loss to net cash used in operating
activities:
