Autobytel Reports 48% Increase in 2014 First Quarter Revenues

Autobytel Reports 48% Increase in 2014 First Quarter Revenues

                   – Substantial Revenue Improvement Driven
      by Gains in Core Business, Contribution From AutoUSA Acquisition –

           – Company Sees Momentum and Positive Trends Continuing –

IRVINE, Calif., May 1, 2014 (GLOBE NEWSWIRE) -- Autobytel Inc. (Nasdaq:ABTL),
pioneer of the automotive Internet and the company dedicated to connecting
automotive consumers with dealers, today announced significantly improved
financial results for the first quarter ended March 31, 2014.

"Autobytel's unwavering commitment to providing our auto manufacturer and
dealer customers with high-quality leads and value-added products and services
is helping drive our success," said Jeffrey H. Coats, President and Chief
Executive Officer. "Our strong first-quarter performance beat our prior
forecast on both the top and bottom lines. More than half of our revenue
growth resulted from ongoing improvements in our core leads business, and the
remainder from AutoUSA, which we acquired earlier this year. A healthy auto
market, combined with our ability to deliver serious, in-market car shoppers
to our customers, presents a solid opportunity for Autobytel to continue
growing into the future."

Total revenues for the 2014 first quarter increased 48% to $27.0 million from
$18.3 million a year ago, and included a $5.3 million contribution from
AutoUSA, which was owned by Autobytel for 11 of the 13 weeks of the quarter.
The company recognized $4.2 million of this revenue from AutoUSA as a result
of eliminations of approximately $1.1 million related to intercompany
transactions and direct delivery to wholesale channels. Excluding the AutoUSA
contribution, revenues grew 25%.

Revenues generated from automotive leads for the 2014 first quarter increased
55% to $24.7 million, from $15.9 million for last year's first quarter. The
improvement primarily reflected ongoing strong demand from automotive dealers
(retail) and auto manufacturers (wholesale). Retail revenues grew
approximately 77%, and wholesale revenues advanced approximately 38% for the
2014 first quarter, compared with the corresponding prior-year
period.Excluding AutoUSA, retail revenues grew approximately 18% and
wholesale revenues increased approximately 37%, compared with last year.

Gross profit increased 53% to $10.1 million, or 37.4% of total revenues, for
the 2014 first quarter, from $6.6 million, or 36.1% of total revenues, last
year. 

Total operating expenses were $9.3 million, or 34.6% of total revenues, for
the first quarter of 2014, which included approximately $1.2 million in
operating expenses associated with AutoUSA.The company said it expects to
eliminate remaining duplicative AutoUSA expenses by the end of the second
quarter of 2014.First quarter 2014 total operating expenses also included
approximately $984,000 in acquisition-related costs.Total operating expenses
were $6.6 million, or 36.1% of revenues, for the first quarter of last year.

Net income for the 2014 first quarter totaled $370,000, or $0.04 per diluted
share. Net income for the 2013 first quarter was $334,000, or $0.04 per
diluted share.The per share calculations were based on 10.3 million diluted
average weighted shares outstanding for the 2014 first quarter and 9.1 million
diluted average weighted shares outstanding for last year's first quarter.The
increase in share count related to the increase in price of Autobytel's common
stock and the company's acquisition-related warrants being included in the
diluted share calculation as a result of the stock price increase.The company
said that the diluted share calculation can be influenced quarter-to-quarter
by the interplay between net income and interest expense on the
acquisition-related convertible debt in determining whether those shares are
included in the calculation.

EBITDA was $1.3 million for the first quarter of 2014, up from $1.0 million
for last year's first quarter.Adjusted EBITDA excluding acquisition expenses
grew to $2.6 million, or $0.25 per diluted share, for the first quarter of
2014, versus $1.2 million, or $0.13 per diluted share, for last year's first
quarter.Autobytel is providing EBITDA and Adjusted EBITDA as the company
believes these are better metrics for monitoring the company's financial
performance given its net operating loss (NOL) tax credits.

Cash and cash equivalents increased to $19.3 million at March 31, 2014, up
from $18.9 million at December 31, 2013. 

Cash flow provided by operations was $875,000 for the 2014 first quarter,
compared with cash flow used in operations of $372,000 for the same period
last year. 

Business Outlook

Based on current business trends, Autobytel estimates that 2014 second quarter
revenue growth will be in the range of 47% to 53%, compared with the 2013
second quarter, and that earnings per diluted share will be in the range of
$0.04 to $0.06, based on 11.5 million diluted average weighted shares
outstanding. The diluted share calculation can be influenced
quarter-to-quarter by the interplay between net income and interest expense on
the company's acquisition-related convertible debt in determining whether
those shares are included in the calculation.The company also said it
currently has no plans for raising additional capital.

Conference Call
Autobytel management will host a conference call today at 5 p.m. ET/2 p.m. PT
to discuss its 2014 first quarter financial results. Interested parties may
participate in the live call by dialing (877) 852-2929, passcode 30905465.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 8, 2014 by dialing (855) 859-2056, passcode 30905465. 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,
Adjusted EBITDA and Adjusted EBITDA 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, Adjusted EBITDA and Adjusted EBITDA per
diluted share, which are non-GAAP financial measures as defined by SEC
Regulation G, for the 2014 and 2013 first quarter.The company defines EBITDA
as earnings before interest, taxes, depreciation and amortization.Adjusted
EBITDA is defined as EBITDA including stock-based compensation.The company's
management believes that presenting EBITDA, Adjusted EBITDA and Adjusted
EBITDA per diluted share provides useful information to investors regarding
the underlying business trends and performance of the company's ongoing
operations and are better metrics for monitoring the company's performance
given the company's net operating loss (NOL) tax credits.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, Adjusted EBITDA and Adjusted EBITDA 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 the
company sees momentum and positive trends continuing, a healthy auto market,
combined with the company's ability to deliver serious, in-market car shoppers
to its customers, presents a solid opportunity for the company to continue
growing into the future, that the company expects to eliminate remaining
duplicative AutoUSA expenses by the end of the second quarter of 2014, and
that based on current business trends the company estimates that 2014 second
quarter revenue growth will be in the range of 47% to 53%, compared with the
2013 second quarter and that earnings per diluted share will be in the range
of $0.04 to $0.06, based on 11.5 million diluted average weighted shares
outstanding, 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, 2013, as amended by Amendment No. 1 on Form 10-K/A, 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.

                          (Financial Tables Follow)


AUTOBYTEL INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands, except share and per-share data)
                                                              
                                                              
                                                   March 31, December 31,
                                                   2014      2013
Assets                                                         
Current assets:                                                
Cash and cash equivalents                           $19,257   $18,930
Accounts receivable (net of allowances for bad
debts and customer credits of $405 and $405 at      16,072     14,178
March 31, 2014 and December 31, 2013, respectively)
Deferred tax asset                                  3,348      3,517
Prepaid expenses and other current assets           592        506
Total current assets                               39,269     37,131
Property and equipment, net                         1,676      1,548
Equity investment                                   2,500      2,500
Intangible assets, net                              5,233      1,821
Goodwill                                            20,948     13,602
Deferred tax asset                                  31,135     31,135
Other assets                                        757        456
Total assets                                       $101,518  $88,193
                                                              
Liabilities and Stockholders' Equity                           
Current liabilities:                                           
Accounts payable                                    $7,727    $5,267
Accrued expenses and other current liabilities      6,510      7,649
Deferred revenues                                   10         (1)
Total current liabilities                          14,247     12,915
Convertible note payable                            6,000      5,000
Term loan payable                                   8,438      --
Borrowings under credit facility                    5,250      4,250
Other non-current liabilities                       975        1,200
Total liabilities                                  34,910     23,365
                                                              
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;8,981,340 and 8,909,737 shares issued   9          9
and outstanding, as of March 31, 2014 and December
31, 2013, respectively
Additional paid-in capital                          308,581    307,171
Accumulated deficit                                 (241,982)  (242,352)
Total stockholders' equity                         66,608     64,828
Total liabilities and stockholders' equity         $101,518  $88,193


AUTOBYTEL INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
(Amounts in thousands, except per-share data)
                                                                   
                                                                   
                                                  Three Months Ended
                                                  March 31
                                                                   
                                                  2014              2013
                                                                   
Revenues:                                                           
Lead fees                                          $26,013         $17,517
Advertising                                        673              715
Other revenues                                     273              29
Total revenues                                     26,959           18,261
Cost of revenues                                   16,874           11,669
Gross profit                                       10,085           6,592
                                                                   
Operating expenses:                                                 
Sales and marketing                                4,017            2,241
Technology support                                 1,924            1,705
General and administrative                         3,022            2,290
Depreciation and amortization                      434              424
Litigation settlements                             (68)             (71)
Total operating expenses                          9,329            6,589
Operating income                                   756              3
Interest and other income (expense), net           (166)            402
Income tax provision                               220              71
Net income and comprehensive income                $370            $334
                                                                   
Basic earnings per common share                    $0.04           $0.04
Diluted earnings per common share                  $0.04           $0.04
                                                                   
Shares used in computing earnings per common share (in thousands):   
Basic                                            8,928            8,856
Diluted                                          10,282           9,076



AUTOBYTEL INC.
(Amounts in thousands, except per share amounts)
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA
                                                               
                                    Three Months Ended Three Months Ended
                                    March 31            March 31            
                                    2014      2013      2014      2013
                                                      (EPS Impact)
                                                               
Net income                           $370    $334    $0.04   $0.04
Interest                             171      73       $0.02   $0.01
Depreciation and amortization        527      538      $0.05   $0.06
Taxes                                220      71       $0.02   $0.01
Earnings before interest, taxes,
depreciation and amortization        1,288    1,016    $0.13   $0.11
("EBITDA")
Non-cash stock based compensation    286      186      $0.03   $0.02
Adjusted EBITDA                      1,574    1,202    $0.15   $0.13
Acquisition expenses                 984      --      $0.10   $--
Adjusted EBITDA excluding            $2,558  $1,202  $0.25   $0.13
acquisition expenses
Weighted average diluted shares      10,282   9,076             

CONTACT:  Investor Relations:
          Autobytel Inc.
          Curtis E. DeWalt
          SVP, Chief Financial Officer
          949-437-4694
          curtisd@autobytel.com

          PondelWilkinson Inc.
          Roger Pondel/Laurie Berman
          310-279-5980
          pwinvestor@pondel.com

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