IRVINE, Calif., Nov 06, 2008 -- Autobytel Inc. (Nasdaq:ABTL), a leadingInternet automotive marketing services company, today announced financialresults for the 2008 third quarter ended September 30, 2008.
Revenue for the 2008 third quarter equaled $17.3 million, compared with$21.9 million last year. The decline was primarily related to a decreasein advertising revenue, reflecting the previously announced elimination oflow quality traffic sources, along with lower advertising rates and fewerconsumer leads resulting primarily from the slowing economy.
As part of an initiative aimed at improving cash flow and attainingprofitability, the company reduced total operating expenses in the thirdquarter of 2008 to $12.2 million, which included an incremental $1.8million in severance and other employee-related costs related to thecompany's previously announced workforce reduction. Excluding theseverance costs, total operating expenses declined nearly 33% to $10.4million from $15.5 million in the prior-year period, and decreasedapproximately 16% on a sequential basis, excluding the $52.1 millionnon-cash goodwill impairment charge taken in the second quarter of 2008.
For purposes of financial reporting, revenues and expenses related to thecompany's Retention Performance Marketing (RPM) and Automotive InformationCenter (AIC) businesses, both divested in 2007, and its AVV business,which was sold in the first quarter of 2008, have been accounted for indiscontinued operations.
Loss from continuing operations was reduced to $5.8 million, or $0.13 pershare, for the 2008 third quarter, from $8.0 million, or $0.18 per share,for the year-ago period.
Non-cash share-based compensation expense was $0.6 million and $1.2million, respectively, for the third quarters of 2008 and 2007.
The company reported a lower net loss for the third quarter of 2008 of$5.6 million, or $0.13 per share, compared with a net loss of $6.6million, or $0.15 per share, for the third quarter of 2007, which included$1.4 million in income from discontinued operations.
Cash and cash equivalents rose to $32.2 million at September 30, 2008,from $28.3 million at December 31, 2007.
"This quarter, we continued to make substantial progress reducing costsand better aligning our organization against our short- and longer-termfinancial and operational goals," said Jim Riesenbach, president and CEOof Autobytel. "These actions, combined with our strong cash position,provide us with a degree of stability in what has become one of the mostchallenging automotive and macro economic environments in our time."
During the third quarter, Autobytel announced that it had retainedinvestment banking firm RBC Capital Markets as its financial advisor toassist the company in exploring and evaluating strategic alternatives tomaximize shareholder value. These alternatives could include the possiblesale of the company or certain of its assets, or strategic partnerships.
Metrics and Key Performance Indicators
(In thousands, except for Page Views per Visit, Advertising Revenue per
Thousand Page Views, Number of Co-Brand Partners and
Ad Network Publishers and Percentages)
Q3 2008 Q2 2008 Q3 2007
Unique Visitors 7,180 7,193 23,976
Page Views per Visit 6.29 6.93 2.68
Total Page Views 49,714 55,293 103,724
Advertising Revenue
per Thousand Page
Views (RPM) $24 $29 $39
Number of Co-Brand
Partners 19 14 9
Ad Network Publishers 12 12 4
Total Auto Leads 771 865 825
Wholesale Auto Leads 47% 46% 40%
Retail Auto Leads 53% 54% 60%
Annualized Revenue
per Employee $424 $335 $261
Conference Call
Autobytel management will host a conference call today at 5:00 p.m.ET/2:00 p.m. PT to discuss its 2008 third quarter financial results. Theconference call will be available to all interested parties through a livewebcast at www.autobytel.com (click on "Investor Relations" and then clickon "Conference Calls"). Please visit the website at least 15 minutes priorto the start of the call to register and download any necessary software.For those unable to listen to the live broadcast, the call will bearchived for one year on Autobytel's website. A telephone replay of thecall will also be available for approximately one week by dialing800-642-1687 (domestic) or 706-645-9291 (international) and enteringconference ID 70170189.
About Autobytel Inc.
Autobytel Inc. (Nasdaq:ABTL) is an Internet automotive marketing servicescompany that helps dealers and manufacturers sell cars and relatedproducts and services. The company owns and operates consumer-facingautomotive websites, including its flagship site, MyRide.com(R), which isdesigned to help consumers find, see, buy and learn anything related toautomobiles. The company's other websites are: Autobytel.com(R),Autoweb.com(R), Car.comsm, CarSmart.com(R), AutoSite.com(R), andCarTV.com(R). By providing a convenient and comprehensive automotiveconsumer experience across the purchase and ownership lifecycle, Autobytelseeks to provide dealerships with opportunities to connect with a steady,diverse stream of motivated, serious shoppers, while providingmanufacturers with precision-targeted brand and product advertisingopportunities. In addition to its websites, the company generates leadsand advertising opportunities for dealers and automakers through itsmarketing network, which includes the AutoReach ad network, co-brands,such as ESPN.com, and marketing affiliates such as AOL, Edmunds and KellyBlue Book.
Forward-Looking Statement Disclaimer
The statements contained in this press release that are not historicalfacts are forward-looking statements under the federal securities laws,including, but not limited to, the ability to enhance shareholder valuethrough the review and exploration of strategic alternatives, amongothers. These forward-looking statements are not guarantees of futureperformance and involve certain assumptions and certain risks anduncertainties that are difficult to predict. Actual outcomes and resultsmay differ materially from what is expressed in, or implied by, suchforward-looking statements. Autobytel undertakes no obligation to updatepublicly any forward-looking statements, whether as a result of newinformation, future events or otherwise. Among the important factors thatcould cause actual results to differ materially from those expressed in,or implied by, the forward-looking statements are changes in generaleconomic conditions, the economic impact of terrorist attacks or militaryactions, increased dealer attrition, pressure on dealer fees, increased orunexpected competition, the failure of new products and services to meetexpectations, failure to retain key employees or attract and integrate newemployees, that actual costs and expenses exceed the charges taken byAutobytel, changes in laws and regulations, costs of legal matters,including, defending lawsuits and undertaking investigations and relatedmatters, and other matters disclosed in Autobytel's filings with theSecurities and Exchange Commission. Investors are strongly encouraged toreview our Annual Report on Form 10-K for the year ended December 31, 2007and other filings with the Securities and Exchange Commission for adiscussion of risks and uncertainties that could affect operating resultsand the market price of our stock.
AUTOBYTEL INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands, except share amounts)
September 30, December 31,
2008 2007
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 32,170 $ 27,601
Accounts receivable, net of
allowances for bad debts and
customer credits of $578 and
$534, respectively 12,698 11,692
Prepaid expenses and other
current assets 1,794 1,739
Assets held for sale - 17,160
Total current assets 46,662 58,192
Property and equipment, net 9,229 10,757
Goodwill - 52,074
Investment and other assets 918 1,133
TOTAL ASSETS $ 56,809 $ 122,156
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4,032 $ 5,852
Accrued expenses 5,009 6,470
Deferred revenues 2,082 1,749
Other current liabilities 1,253 1,199
Liabilities held for sale - 198
Total current liabilities 12,376 15,468
Other non current liabilities 271 436
TOTAL LIABILITIES 12,647 15,904
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;
45,219,679 and 43,788,663
shares issued and outstanding,
respectively 44 44
Additional paid-in capital 299,742 296,964
Unrealized gain 680 686
Accumulated deficit (256,304) (191,442)
TOTAL STOCKHOLDERS' EQUITY 44,162 106,252
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 56,809 $ 122,156
AUTOBYTEL INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(Amounts in thousands, except per-share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
REVENUES:
Lead fees $ 15,571 $ 17,576 $ 50,910 $ 51,485
Advertising 1,640 4,318 5,906 13,971
Other 59 17 137 43
Total revenues 17,270 21,911 56,953 65,499
COSTS AND EXPENSES:
Cost of revenues 11,107 14,934 37,146 39,371
Sales and
marketing 4,001 5,260 13,516 16,181
Technology support 3,651 4,577 11,924 13,389
General and
administrative 4,551 5,599 15,203 20,507
Amortization of
acquired
intangible assets 42 42 125 422
Patent litigation
settlement - - (2,667) (12,000)
Goodwill impairment - - 52,074 -
Total costs and
expenses 23,352 30,412 127,321 77,870
Operating loss (6,082) (8,501) (70,368) (12,371)
Interest and
other income 271 486 1,116 1,425
Foreign currency
exchange loss - - - (7)
Provision for
income taxes - - - -
Loss from
continuing
operations (5,811) (8,015) (69,252) (10,953)
Discontinued
operations, net 184 1,427 4,390 9,980
NET LOSS $ (5,627) $ (6,588) $ (64,862) $ (973)
BASIC LOSS PER
COMMON SHARE:
Loss from
continuing
operations $ (0.13) $ (0.18) $ (1.57) $ (0.25)
Discontinued
operations,
net - 0.03 0.10 0.23
Basic loss
per common
share $ (0.13) $ (0.15) $ (1.47) $ (0.02)
DILUTED LOSS
PER COMMON
SHARE:
Loss from
continuing
operations $ (0.13) $ (0.18) $ (1.57) $ (0.25)
Discontinued
operations,
net - 0.03 0.10 0.23
Diluted loss
per common
share $ (0.13) $ (0.15) $ (1.47) $ (0.02)
Comprehensive
loss
Net loss $ (5,627) $ (6,588) $(64,862) $ (973)
Unrealized
gain (loss) 33 - (6) -
Comprehensive
loss $ (5,594) $ (6,588) $ (64,868) $ (973)