Autobytel Reports 2013 First Quarter Financial Results

  Autobytel Reports 2013 First Quarter Financial Results

  *Retail Channel Revenue Growth Reaches 15%; Highest Quarterly Wholesale
    Revenue
    in Company History, Up 11%
  *Quarterly Revenues Advance to Highest Level in Five Years

Business Wire

IRVINE, Calif. -- May 02, 2013

Autobytel Inc. (Nasdaq: ABTL), a leading provider of online consumer leads and
marketing resources for the automotive industry, today announced financial
results for the first quarter ended March 31, 2013, reflecting the company’s
highest quarterly revenues in five years.

Total revenues for the 2013 first quarter increased more than 9% to $18.3
million from $16.7 million last year. Revenues generated from automotive
leads, the company’s core business, rose 13% to $15.9 million for the 2013
first quarter, up from $14.1 million for the same quarter last year, primarily
reflecting strong demand from automotive dealers (retail) and manufacturers
(wholesale). Total retail revenue increased approximately 15%, and total
wholesale revenue grew more than 11% for the first quarter of 2013, compared
with last year’s first quarter. The number of dealerships purchasing leads
from Autobytel increased by 8% from last year’s first quarter to more than
3,500.

Gross profit totaled $6.6 million for the 2013 first quarter, compared with
$6.8 million one year ago. Gross margin equaled 36.1% of revenues for the
first three months of 2013, versus 40.9% for the first quarter of 2012. The
decline in gross margin was anticipated and resulted from continued, planned
investments to drive increased revenue growth. Autobytel’s longer-term gross
margin target remains above 40%.

Total operating expenses were $6.6 million, or 36.1% of revenues, for the 2013
first quarter, compared with $6.5 million, or 39.0% of revenues, for the 2012
first quarter.

Net income for the 2013 first quarter improved to $334,000, or $0.04 per
diluted share, based on 9.1 million diluted average weighted shares
outstanding. Net income for the 2012 first quarter was $253,000, or $0.03 per
diluted share, based on 9.5 million diluted average weighted shares
outstanding. Per share amounts reflect a 1-for-5 reverse stock split effected
on July 11, 2012.

EBITDA for the first quarter of 2013 totaled $1.0 million, compared with $0.9
million for the first quarter of 2012. Cash net income was $1.1 million, or
$0.12 per diluted share, for the first quarter of 2013, versus $1.0 million,
or $0.11 per diluted share, for last year’s first quarter.

“Our focus on driving top-line growth paid off nicely during the first
quarter,” said Jeffrey H. Coats, President and Chief Executive Officer of
Autobytel. “Strong automotive lead volume, coupled with ongoing investments to
further enhance our ability to generate high-quality leads that convert at
what we believe to be the highest sales conversion rates in the industry,
should allow us to continue generating strong revenue growth. We expect
additional benefits from these investments throughout the year, especially as
we continue to deliver our message about Autobytel’s high sales conversion
rates throughout the automotive marketplace.”

Cash and cash equivalents amounted to $14.7 million at March 31, 2013,
compared with $15.3 million at December 31, 2012. Cash flow used in operations
was $372,000 for the first quarter of 2013, compared with cash flow provided
by operations of $894,000 for the prior-year first quarter. The decrease in
cash related to an increase in working capital resulting from the significant
increase in revenue for the first quarter of 2013 compared with the prior
period.

Business Outlook
Autobytel expects second quarter revenue in the range of $17.0 to $18.0
million and anticipates that second quarter gross margin will improve from the
first quarter of 2013. The company also said it expects continued
profitability for the 2013 second quarter.

Conference Call
Autobytel management will host a conference call today at 5 p.m. ET/2 p.m. PT
to discuss its 2013 first quarter financial results. Interested parties may
participate in the live call by dialing (877) 852-2929, passcode 36684188. An
audio broadcast will also be available through a live webcast at
www.autobytel.com (click on “Investor Relations” and then click on “Events &
Presentations”). Please visit the website at least 15 minutes prior to the
start of the call to register and download any necessary software. For those
unable to listen to the live broadcast, the call will be archived for one year
on Autobytel’s website. A telephone replay of the call will also be available
through May 9, 2013 by dialing (855) 859-2056, passcode 36684188. The slides
that will be referenced during the call will be available on the company’s
website at www.autobytel.com (click on “Investor Relations” and then click on
“Events & Presentations”). The slides will contain disclosures of EBITDA, cash
flow, cash net income and cash net income per diluted share, which are
non-GAAP financial measures as defined by SEC Regulation G. Reconciliations of
these non-GAAP financial measures to the most directly comparable GAAP
financial measures will be included in the slides.

Note about Non-GAAP Financial Measures
Autobytel has disclosed EBITDA, cash net income and cash net income per
diluted share, which are non-GAAP financial measures as defined by SEC
Regulation G, for the 2012 and 2013 first quarter. The company defines EBITDA
as earnings before interest, taxes, depreciation and amortization. The company
defines cash net income as net income plus depreciation and amortization and
non-cash share-based compensation and defines cash net income per diluted
share as cash net income divided by weighted average diluted shares
outstanding. The company’s management believes that presenting EBITDA, cash
net income and cash net income per diluted share provides useful information
to investors regarding the underlying business trends and performance of the
company’s ongoing operations. These non-GAAP financial measures are used in
addition to and in conjunction with results presented in accordance with GAAP
and should not be relied upon to the exclusion of GAAP financial measures.
Management strongly encourages investors to review the company’s consolidated
financial statements in their entirety and to not rely on any single financial
measure. A table providing a reconciliation of EBITDA and cash net income to
the closest GAAP financial measures is included at the end of this press
release.

About Autobytel Inc.
Autobytel Inc., an online leader offering consumer leads and marketing
resources to car dealers and manufacturers and providing consumers with the
information they need to purchase new and used cars, pioneered the automotive
Internet when it launched its flagship website, www.autobytel.com, in 1995.
Autobytel continues to offer innovative products and services to help
consumers buy, and auto dealers and manufacturers sell, more used and new
cars. Autobytel has helped tens of millions of automotive consumers research
vehicles; connected thousands of dealers nationwide with motivated car buyers;
and helped every major automaker market its brand online. Through its flagship
website, network of automotive sites and respected online affiliates,
Autobytel continues its dedication to innovating the industry’s highest
quality Internet programs to provide consumers with a comprehensive and
positive automotive research and purchasing experience, and auto dealers,
dealer groups and auto manufacturers with some of the industry’s most
productive and cost-effective customer referral and marketing programs.

Investors and other interested parties can receive Autobytel news releases and
invitations to special events by accessing the online registration form at
investor.autobytel.com/alerts.cfm.

Forward-Looking Statements 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, including, but not limited to, comments that the
company’s longer-term gross margin target remains above 40%; that strong
automotive lead volume, coupled with leads that convert to what the company
believes to be the highest sales conversion rates in the industry should allow
it to continue generating strong revenue growth; ongoing investments to
further enhance the company’s ability to generate high-quality leads that
convert to sales for our customers, should allow Autobytel to continue to
generate strong revenue growth in the second quarter; regarding the company’s
expectation of additional benefits from these investments throughout the year;
and regarding the company’s expectation that second quarter revenue will be in
the range of $17.0 to $18.0 million, the anticipation that second quarter
gross margin will improve from the first quarter of 2013 and that the company
will achieve continued profitability for the 2013 second quarter, are not
guarantees of future performance and involve assumptions and risks and
uncertainties that are difficult to predict. Actual outcomes and results may
differ materially from what is expressed in, or implied by, these
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 financial condition of automobile manufacturers and dealers;
disruptions in automobile production; changes in fuel prices; the economic
impact of terrorist attacks, political revolutions or military actions;
failure of our internet security measures; dealer attrition; pressure on
dealer fees; increased or unexpected competition; the failure of new products
and services to meet expectations; failure to retain key employees or attract
and integrate new employees; actual costs and expenses exceeding charges taken
by Autobytel; changes in laws and regulations; costs of legal matters,
including, 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 the company’s Annual Report on Form 10-K for the year ended December
31, 2012 and other filings with the Securities and Exchange Commission for a
discussion of risks and uncertainties that could affect the business,
operating results, or financial condition of Autobytel and the market price of
the company’s stock.


AUTOBYTEL INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands, except share and per-share data)
                                                        
                                                                  
                                             March 31,            December 31,
                                              2013               2012     
Assets
Current assets:
  Cash and cash equivalents                  $ 14,718             $ 15,296
  Accounts receivable (net of
  allowances for bad debts and
  customer                                     11,717               10,081
  credits of $443 and $426 at March
  31, 2013 and December 31, 2012,
  respectively)
  Prepaid expenses and other current          498                504      
  assets
  Total current assets                         26,933               25,881
Property and equipment, net                    1,588                1,593
Intangible assets, net                         1,204                1,539
Goodwill                                       11,677               11,677
Other assets                                  148                77       
  Total assets                               $ 41,550            $ 40,767   
                                                                  
Liabilities and Stockholders' Equity
Current liabilities:
  Accounts payable                           $ 5,279              $ 3,837
  Accrued expenses and other current           4,297                5,377
  liabilities
  Deferred revenues                           2                  168      
  Total current liabilities                    9,578                9,382
  Convertible note payable                     5,000                5,000
  Other non-current liabilities               667                620      
  Total liabilities                            15,245               15,002
                                                                  
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;
  8,863,400 and 8,855,400 shares
  issued and outstanding, as of                9                    9
  March
  31, 2013 and December 31, 2012,
  respectively
  Additional paid-in capital                   306,458              306,252
  Accumulated deficit                         (280,162 )          (280,496 )
  Total stockholders' equity                  26,305             25,765   
  Total liabilities and                      $ 41,550            $ 40,767   
  stockholders' equity
                                                                  

AUTOBYTEL INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Amounts in thousands, except per-share data)
                                                          
                                                                    
                                                                    
                                                 Three Months Ended
                                                 March 31,
                                                                    
                                                  2013             2012   
                                                                    
Revenues:
        Lead fees                                $ 17,517           $ 15,794
        Advertising                                715                859
        Other revenues                            29               52     
Total revenues                                     18,261             16,705
Cost of revenues (excludes depreciation
of $28 and $32 for the three months               11,669           9,869  
ended
March 31, 2013 and 2012, respectively)
Gross profit                                       6,592              6,836
                                                                    
Operating expenses:
        Sales and marketing                        2,241              2,345
        Technology support                         1,705              1,828
        General and administrative                 2,290              2,015
        Depreciation and amortization              424                402
        Litigation settlements                    (71    )          (70    )
        Total operating expenses                  6,589            6,520  
Operating income                                   3                  316
        Interest and other income                  402                (1     )
        (expense), net
        Income tax provision                      71               62     
Net income and comprehensive income              $ 334             $ 253    
                                                                    
                                                                    
Basic earnings per common share                  $ 0.04            $ 0.03   
Diluted earnings per common share                $ 0.04            $ 0.03   
                                                                    
                                                                    
Shares used in computing earnings per
common share (in thousands):
        Basic                                     8,856            9,217  
        Diluted                                   9,076            9,496  
                                                                    

AUTOBYTEL INC.
RECONCILIATION OF CASH NET INCOME
(Amounts in thousands, except per-share data)
                                                    
                                              Three Months Ended
                                              March 31,
                                                                
                                               2013             2012
                                                                
Net income                                    $ 334             $ 253
                                                                
Depreciation and amortization                   538               508
                                                                
Share-based compensation                       186              281
                                                                
Cash net income                               $ 1,058           $ 1,042
                                                                
                                                                
Cash net income per diluted share             $ 0.12            $ 0.11
                                                                
Shares used in calculating
cash net income per diluted share              9,076            9,496
                                                                

AUTOBYTEL INC.
RECONCILIATION OF EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION AND AMORTIZATION
(Amounts in thousands)
                                                    
                                               Three Months Ended
                                               March 31,
                                                                 
                                                2013             2012
                                                                 
  Net income                                   $ 334             $ 253
                                                                 
  Net interest                                   73                75
                                                                 
  Income taxes                                   71                62
                                                                 
  Depreciation and amortization                  538               508
                                                                
                                                                 
  Earnings before interest, taxes,
  depreciation and amortization                $ 1,016           $ 898

Contact:

Investors:
Autobytel Inc.
Curt DeWalt
Chief Financial Officer
949-437-4694
curtisd@autobytel.com
or
PondelWilkinson Inc.
Roger Pondel/Laurie Berman
310-279-5980
pwinvestor@pondel.com
or
Media:
Splash Media
Jennifer Lange
949-916-4820
jlange@getsplashmedia.com
 
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