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Autobytel Reports 2013 Second Quarter Financial Results

  Autobytel Reports 2013 Second Quarter Financial Results

          – Generates Highest Second-Quarter Revenue in Five Years –

      – Improves Profit by 67% Year-Over-Year on 13% Revenue Increase –

Business Wire

IRVINE, Calif. -- August 1, 2013

Autobytel Inc. (Nasdaq: ABTL), a leading provider of online consumer leads and
marketing resources for the automotive industry, today announced improved
financial results for the second quarter ended June 30, 2013, including net
income growth of 67% on 13% revenue growth, compared with last year’s second
quarter.

“Our ongoing emphasis on growing revenues, coupled with strong automotive
market conditions, resulted in Autobytel’s highest second-quarter sales in
five years,” said Jeffrey H. Coats, President and Chief Executive Officer.
“Autobytel’s independently verified high sales conversion rates for the leads
we sell have been a game-changer for us and our sector. With robust demand
from both the retail and wholesale channels, we remain confident in our
ability to continue generating improved financial results.”

Total revenues for the second quarter of 2013 increased to $17.8 million from
$15.7 million last year. Revenues generated from automotive leads, the
company’s core business, rose nearly 16% to $15.3 million for the 2013 second
quarter, up from $13.2 million for last year’s second quarter, principally
reflecting strong ongoing demand from automotive dealers (retail) and
manufacturers (wholesale). Total retail revenues grew approximately 9%, and
total wholesale revenues increased 21% for the second quarter of 2013,
compared with the second quarter of 2012. The number of dealerships purchasing
leads from Autobytel grew by over 70 from the first quarter of 2013.

Gross profit grew 10% for the 2013 second quarter to $7.0 million, or 39.1% of
total revenues, from $6.3 million, or 40.3% of total revenues, last year.
Gross profit was $6.6 million, or 36.1% of total revenues, for the 2013 first
quarter. Autobytel’s longer-term gross margin target remains above 40%.

Total operating expenses were $6.4 million, or 36.0% of revenues, for the
second quarter of 2013, compared with $6.0 million, or 38.1% of revenues, for
the second quarter last year.

Net income for the 2013 second quarter improved to $386,000, or $0.04 per
diluted share, based on 9.1 million diluted average weighted shares
outstanding. Net income for the 2012 second quarter was $231,000, or $0.02 per
diluted share, based on 9.3 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 second quarter of 2013 rose to $1.1 million, from $922,000 last
year. Cash net income was $1.1 million, or $0.12 per diluted share, for the
second quarter of 2013, versus $960,000, or $0.10 per diluted share, for last
year’s second quarter.

Six-Month Results
For the six months ended June 30, 2013, revenues rose 11% to $36.0 million
from $32.4 million for the first half of 2012. Auto lead revenues increased
14% for the 2013 year-to-date period from the same period last year. Total
retail revenues grew approximately 12%, and total wholesale revenues improved
16% for the first six months of 2013, compared with the first six months of
2012.

Gross profit increased to $13.5 million, or 37.6% of total revenues, for the
2013 year-to-date period, versus $13.2 million, or 40.6% of total revenues,
for the same period last year.

Total operating expenses for the first half of 2013 amounted to $13.0 million,
or 36.0% of total revenues, versus $12.5 million, or 38.6% of total revenues,
for the first six months of last year.

Net income for the 2013 year-to-date period rose to $721,000, or $0.08 per
diluted share, based on 9.1 million diluted average weighted shares
outstanding. Net income for the year-ago period was $484,000, or $0.05 per
share, based on 9.4 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 six months of 2013 totaled $2.1 million, up from $1.8
million for the first six months of last year. Cash net income totaled $2.2
million, or $0.24 per diluted share, for the first half of 2013, versus $2.0
million, or $0.21 per diluted share, for the same period last year.

Cash and cash equivalents grew to $15.8 million at June 30, 2013, from $15.3
million at December 31, 2012. Cash flow provided by operations was $1.3
million for the second quarter of 2013, compared with $2.0 million last year.
Cash flow provided by operations totaled $918,000 for the first six months of
2013, versus $2.9 million for the first six months of 2012.

Business Outlook
Autobytel expects third quarter revenue in the range of $18.3 million to $19.0
million. The company also said it anticipates generating gross margins of 40%
for the second half of 2013.

Conference Call
Autobytel management will host a conference call today at 5 p.m. ET/2 p.m. PT
to discuss its 2013 second quarter financial results. Interested parties may
participate in the live call by dialing (877) 852-2929, passcode 16699262. 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 August 8, 2013 by dialing (855) 859-2056, passcode 16699262. 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 second quarter and six-month period. 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, cash net income and cash net income per diluted
share 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 with
robust demand from both the retail and wholesale channels, the company remains
confident in its ability to continue generating improved financial results,
regarding the company’s expectation that third quarter revenue will be in the
range of $18.3 to $19.0 million, and regarding the company’s anticipation for
generating gross margins of 40% for the second half of 2013, 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)
                                                             
                                                                  
                                                 June 30,         December 31,
                                                 2013             2012
Assets
Current assets:
Cash and cash equivalents                        $ 15,815         $ 15,296
Accounts receivable (net of allowances for
bad debts and customer credits of $444 and         11,623           10,081
$426 at June 30, 2013 and December 31, 2012,
respectively)
Prepaid expenses and other current assets         787            504      
Total current assets                               28,225           25,881
Property and equipment, net                        1,606            1,593
Intangible assets, net                             869              1,539
Goodwill                                           11,677           11,677
Other assets                                      120            77       
Total assets                                     $ 42,497        $ 40,767   
                                                                  
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable                                 $ 6,741          $ 3,837
Accrued expenses and other current                 3,104            5,377
liabilities
Deferred revenues                                 -              168      
Total current liabilities                          9,845            9,382
Convertible note payable                           5,000            5,000
Other non-current liabilities                     731            620      
Total liabilities                                  15,576           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; 8,875,138 and 8,855,400         9                9
shares issued and outstanding, as of June
30, 2013 and December 31, 2012, respectively
Additional paid-in capital                         306,687          306,252
Accumulated deficit                               (279,775 )      (280,496 )
Total stockholders' equity                        26,921         25,765   
Total liabilities and stockholders' equity       $ 42,497        $ 40,767   
                                                                             
                                                                             

                   
                   
AUTOBYTEL INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Amounts in thousands, except per-share data)
                                                           
                                                                    
                                                                    
                       Three Months Ended            Six Months Ended
                       June 30                       June 30
                       2013           2012           2013           2012
                                                                    
Revenues:
Lead fees              $ 16,843       $ 14,760       $ 34,360       $ 30,554
Advertising              895            927            1,611          1,786
Other revenues          33           44           61           96     
Total revenues           17,771         15,731         36,032         32,436
Cost of revenues
(excludes
depreciation of
$23 and $32 for
the three months
ended June 30,
2013 and 2012,          10,815       9,396        22,485       19,265 
respectively, and
$51 and $64 for
the six months
ended June 30,
2013 and 2012,
respectively)
Gross profit             6,956          6,335          13,547         13,171
                                                                    
Operating
expenses:
Sales and                2,136          2,268          4,376          4,613
marketing
Technology support       1,767          1,619          3,473          3,447
General and              2,146          1,773          4,435          3,788
administrative
Depreciation and         409            401            833            803
amortization
Litigation              (67    )      (67    )      (138   )      (137   )
settlements
Total operating         6,391        5,994        12,979       12,514 
expenses
Operating income         565            341            568            657
Interest and other
income (expense),        (96    )       (3     )       307            (4     )
net
Income tax              83           107          154          169    
provision
Net income and
comprehensive          $ 386         $ 231         $ 721         $ 484    
income
                                                                    
                                                                    
Basic income per       $ 0.04        $ 0.03        $ 0.08        $ 0.05   
common share
Diluted income per     $ 0.04        $ 0.02        $ 0.08        $ 0.05   
common share
                                                                    
                                                                    
Shares used in
computing earnings
per common share
(in thousands):
Basic                   8,865        9,060        8,861        9,140  
Diluted                 9,133        9,276        9,104        9,387  
                                                                             
                                                                             



AUTOBYTEL INC.
RECONCILIATION OF CASH NET INCOME
(Amounts in thousands, except per-share data)
                                                             
                                   Three Months Ended      Six Months Ended
                                   June 30,                June 30,
                                                                       
                                   2013        2012        2013        2012
                                                                       
Net income                         $ 386       $ 231       $ 721       $ 484
                                                                       
Depreciation and                     523         511         1,061       1,020
amortization
                                                                       
Share-based compensation            188        218        374        499
                                                                       
Cash net income                    $ 1,097     $ 960       $ 2,156     $ 2,003
                                                                       
                                                                       
Cash net income per diluted        $ 0.12      $ 0.10      $ 0.24      $ 0.21
share
                                                                       
Shares used in calculating
cash net income per diluted         9,133      9,276      9,104      9,387
share
                                                                         
                                                                         



AUTOBYTEL INC.
RECONCILIATION OF EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION AND AMORTIZATION
(Amounts in thousands)
                                                              
                                    Three Months Ended     Six Months Ended
                                    June 30,               June 30,
                                                                       
                                    2013         2012      2013        2012
                                                                       
Net income                          $  386       $ 231     $ 721       $ 484
                                                                       
Net interest                           73          73        146         146
                                                                       
Income taxes                           83          107       154         169
                                                                       
Depreciation and amortization          523         511       1,061       1,020
                                                                    
                                                                       
Earnings before interest,
taxes, depreciation and             $  1,065     $ 922     $ 2,082     $ 1,819
amortization
                                                                         

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