Autobytel Generates 24% Increase in Revenues for 2013 Third Quarter

  Autobytel Generates 24% Increase in Revenues for 2013 Third Quarter

               – Net Income More than Doubles to $1.3 Million –

Business Wire

IRVINE, Calif. -- November 7, 2013

Autobytel Inc. (Nasdaq: ABTL), the company dedicated to connecting automotive
consumers with dealers, today announced financial results for the third
quarter ended September 30, 2013, that reflect a more than doubling of net
income and 24% growth in total revenues, compared with last year’s third
quarter.

“We are continuing to execute on our strategic initiatives, including
generating high sales conversion rates for our customers from the leads we
deliver to them,” said Jeffrey H. Coats, President and Chief Executive
Officer. “Our strong revenue for the third quarter, combined with appropriate
cost management, allowed Autobytel to post a significant improvement in our
financial results compared with last year. With a steadily expanding
automotive market and ongoing demand for our high-quality leads from both
retail and wholesale customers, we remain enthusiastic about Autobytel’s
prospects.

“We recently completed the acquisition of Advanced Mobile, a leader in
providing mobile technologies to the automotive industry,” Coats added. “We
are excited to be able to provide dealers with a new way to engage with car
shoppers through mobile devices, at the time, place and in a manner preferred
by consumers. Mobile use has exploded over the last several years, and this
acquisition helps us leverage that trend to assist dealers in selling more
cars.”

Total revenues for the 2013 third quarter rose to $21.6 million from $17.5
million last year. Revenues generated from automotive leads advanced 26% to
$19.0 million for the 2013 third quarter, up from $15.1 million for last
year’s third quarter. The improvement primarily reflected strong demand from
automotive dealers (retail) and auto manufacturers (wholesale). Retail
revenues grew approximately 10%, and wholesale revenues increased
approximately 39% for the 2013 third quarter, compared with last year’s third
quarter.

Gross profit increased 31% to $8.8 million, or 40.7% of revenues, for the 2013
third quarter, up from $6.7 million, or 38.5% of revenues, last year.

Total operating expenses were $7.4 million, or 34.3% of revenues, for the
third quarter of 2013, compared with $6.1 million, or 34.9% of revenues, for
the third quarter of last year. Third quarter 2013 total operating expenses
included approximately $250,000 in costs related to the acquisition of
Advanced Mobile as well as increased marketing and branding expenditures.

Net income for the 2013 third quarter more than doubled to $1.3 million, or
$0.13 per diluted share, based on 10.6 million diluted average weighted shares
outstanding. Net income for the 2012 third quarter was $551,000, or $0.06 per
diluted share, based on 10.1 million diluted average weighted shares
outstanding.

EBITDA for the third quarter of 2013 rose to $2.0 million, from $1.3 million
for the same quarter last year. Cash net income grew to $1.9 million, or $0.18
per diluted share, for the third quarter of 2013, up from $1.4 million, or
$0.14 per diluted share, for last year’s third quarter.

Nine-Month Results
For the year-to-date period ended September 30, 2013, revenues grew 16% to
$57.7 million, up from $49.9 million for the first nine months of 2012. Auto
lead revenues increased 18% for the first nine months of 2013, compared with
the same period last year. Retail revenues grew 11%, and wholesale revenues
improved 24% for the first nine months of 2013, versus the first nine months
of 2012.

Gross profit increased to $22.4 million, or 38.8% of revenues, for the 2013
year-to-date period, compared with $19.9 million, or 39.9% of revenues, for
the same period last year.

Total operating expenses for the first nine months of 2013 amounted to $20.4
million, or 35.4% of total revenues, versus $18.6 million, or 37.3% of total
revenues, for the first nine months of last year.

Net income for the 2013 year-to-date period rose to $2.0 million, or $0.21 per
diluted share, based on 10.3 million diluted average weighted shares
outstanding. Net income for the year-ago period was $1.0 million, or $0.11 per
diluted share, based on 9.3 million diluted average weighted shares
outstanding.

EBITDA for the first nine months of 2013 totaled $4.0 million, up from $3.1
million for the first nine months of last year. Cash net income totaled $4.1
million, or $0.40 per diluted share, for the first nine months of 2013, versus
$3.4 million, or $0.36 per diluted share, for the same period last year.

Cash and cash equivalents increased to $17.4 million at September 30, 2013,
from $15.3 million at December 31, 2012.

Cash flow provided by operations was $1.8 million for the third quarter of
2013, compared with $1.5 million last year. Cash flow provided by operations
totaled $2.7 million for the first nine months of 2013, versus $4.4 million
for the first nine months of 2012. The nine months decrease in cash flow
provided by operations is related to an increase in working capital resulting
from the significant increase in revenue compared with the prior period.

Recent Business Developments
During the third quarter of 2013, Autobytel made a $2.5 million strategic
investment in AutoWeb, a new, pay-per-click, auction-driven automotive
advertising marketplace that will help automotive content publishers monetize
traffic that has previously been under-monetized. In addition to the $2.5
million cash investment, Autobytel also assigned to AutoWeb Autobytel’s rights
to the AutoWeb trademarks and domain name (valued by the parties at $1.5
million). The investment represents Autobytel’s ongoing commitment to deliver
serious car buyers to customers and a personalized online experience to
consumers.

Autobytel teamed with SaleMove, whose patent-pending technology allows auto
dealers and manufacturers to enhance the online shopping experience by
interacting with consumers in real-time, using the method most comfortable to
them, including live video, audio, text-based chat or phone. During the 2013
third quarter, Autobytel made an initial investment in SaleMove and plans to
support the company in SaleMove’s ongoing development of its innovative
technology.

Subsequent to the end of the third quarter, the company acquired Advanced
Mobile, LLC for an initial consideration of $2.5 million. Advanced Mobile can
earn up to an additional $1.5 million in contingent payments based on the
revenue and gross profit performance of the acquired business over a
three-year period beginning on January 1, 2014. Advanced Mobile’s suite of
services, which helps facilitate communication between dealers and car buyers
through smart phones and tablets, forms the basis of a collection of mobile
services that Autobytel plans to offer to auto dealer and manufacturer
customers, as well as to consumers through Autobytel’s own websites.

Business Outlook
Based on current business trends, Autobytel estimates 2013 fourth quarter
revenues in the range of $19 million to $20 million, representing solid
year-over-year growth and the usual, expected seasonal softening, and
anticipates gross margin of 40%.

Conference Call
Autobytel management will host a conference call today at 5 p.m. ET/2 p.m. PT
to discuss its 2013 third quarter financial results. Interested parties may
participate in the live call by dialing (877) 852-2929, passcode 86973459. 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 November 14, 2013 by dialing (855) 859-2056, passcode 86973459. 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 third quarter and nine-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. provides high quality consumer leads and associated marketing
services to automotive dealers and manufacturers throughout the United States
and offers consumers robust and original online automotive content to help
them make informed car-buying decisions. The company pioneered the automotive
internet in 1995 with its flagship website www.autobytel.com and has since
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.

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
a steadily expanding automotive market and ongoing demand for the company’s
high-quality leads from both retail and wholesale customers, the company
remains enthusiastic about its prospects, regarding the company's estimates
that fourth quarter revenue will be in the range of $19 to $20 million, and
regarding the company's estimates for generating gross margins of 40% for the
fourth quarter 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)
                                                              
                                                                  
                                                  September 30,   December 31,
                                                    2013         2012     
Assets
Current assets:
  Cash and cash equivalents                       $  17,373       $ 15,296
  Accounts receivable (net of allowances for
  bad debts and customer credits of $463 and         14,297         10,081
  $426 at September 30, 2013 and December 31,
  2012, respectively)
  Prepaid expenses and other current assets         558          504      
  Total current assets                               32,228         25,881
Property and equipment, net                          1,677          1,593
Intangible assets, net                               575            1,539
Long-term investment                                 2,500          -
Goodwill                                             11,677         11,677
Other assets                                        2,084        77       
  Total assets                                    $  50,741      $ 40,767   
                                                                  
Liabilities and Stockholders' Equity
Current liabilities:
  Accounts payable                                $  6,110        $ 3,837
  Accrued expenses and other current                 6,067          5,377
  liabilities
  Deferred revenues                                 -            168      
  Total current liabilities                          12,177         9,382
  Convertible note payable                           5,000          5,000
  Borrowings under credit facility                   4,250          -
  Other non-current liabilities                     794          620      
  Total liabilities                                  22,221         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; 55,000,000
  shares authorized; 8,907,331 and 8,855,400
  shares issued and outstanding, as of               9              9
  September 30, 2013 and December 31, 2012,
  respectively
  Additional paid-in capital                         307,013        306,252
  Accumulated deficit                               (278,502 )    (280,496 )
  Total stockholders' equity                        28,520       25,765   
  Total liabilities and stockholders' equity      $  50,741      $ 40,767   
                                                                             
                                                                             

AUTOBYTEL INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Amounts in thousands, except per-share data)
                                                              
                                                                    
                             Three Months Ended        Nine Months Ended
                             September 30              September 30
                                                                    
                              2013       2012       2013       2012   
                                                                    
Revenues:
     Lead fees               $ 20,653     $ 16,523     $ 55,013     $ 47,077
     Advertising               956          884          2,567        2,670
     Other revenues           26         47         88         144    
Total revenues                 21,635       17,454       57,668       49,891
Cost of revenues (excludes
depreciation of $18 and
$25 for the three months
ended September 30, 2013
and 2012, respectively,       12,826     10,739     35,311     30,004 
and $70 and $90 for the
nine months ended
September 30, 2013 and
2012, respectively)
Gross profit                   8,809        6,715        22,357       19,887
                                                                    
Operating expenses:
     Sales and marketing       2,745        2,035        7,122        6,648
     Technology support        1,855        1,651        5,328        5,098
     General and               2,526        1,983        6,961        5,772
     administrative
     Depreciation and          362          492          1,196        1,295
     amortization
     Litigation               (66    )    (68    )    (205   )    (205   )
     settlements
     Total operating          7,422      6,093      20,402     18,608 
     expenses
Operating income               1,387        622          1,955        1,279
     Interest and other        24           16           331          12
     income (expense), net
     Income tax provision     138        87         292        256    
Net income and               $ 1,273     $ 551       $ 1,994     $ 1,035  
comprehensive income
                                                                    
                                                                    
Basic income per common      $ 0.14      $ 0.06      $ 0.22      $ 0.11   
share
Diluted income per common    $ 0.13      $ 0.06      $ 0.21      $ 0.11   
share
                                                                    
                                                                    
Shares used in computing
earnings per common share
(in thousands):
     Basic                    8,901      8,853      8,874      9,043  
     Diluted                  10,586     10,098     10,310     9,258  
                                                                             
                                                                             

AUTOBYTEL INC.
RECONCILIATION OF CASH NET INCOME
(Amounts in thousands, except per-share data)
                                                                  
                                      Three Months Ended    Nine Months Ended
                                      September 30,         September 30,
                                                                       
                                       2013      2012      2013      2012
                                                                       
Net income                            $ 1,273    $ 551      $ 1,994    $ 1,035
                                                                       
Depreciation and amortization           467        607        1,528      1,626
                                                                       
Share-based compensation               182       209       556       708
                                                                       
Cash net income                       $ 1,922    $ 1,367    $ 4,078    $ 3,369
                                                                       
                                                                       
Cash net income per diluted share     $ 0.18     $ 0.14     $ 0.40     $ 0.36
                                                                       
Shares used in calculating cash net    10,586    10,098    10,310    9,258
income per diluted share
                                                                         
                                                                         

AUTOBYTEL INC.
RECONCILIATION OF EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION AND AMORTIZATION
(Amounts in thousands)
                                                                  
                                        Three Months Ended   Nine Months Ended
                                        September 30,        September 30,
                                                                       
                                          2013     2012     2013     2012
                                                                       
Net income                              $  1,273   $ 551     $ 1,994   $ 1,035
                                                                       
Net interest                               79        61        225       208
                                                                       
Income taxes                               138       87        292       256
                                                                       
Depreciation and amortization              467       607       1,528     1,626
                                                                    
                                                                       
Earnings before interest, taxes,        $  1,957   $ 1,306   $ 4,039   $ 3,125
depreciation and amortization

Contact:

Investor Relations:
Autobytel Inc.
Curtis E. DeWalt
SVP, Chief Financial Officer
949-437-4694
curtisd@autobytel.com
or
PondelWilkinson Inc.
Roger Pondel/Laurie Berman
310-279-5980
pwinvestor@pondel.com
 
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