Lowers Revenue and Raises Earnings Guidance for Full Year 2009
DealerTrack Holdings, Inc. (Nasdaq: TRAK) today reported financial
results for the second quarter and the six months ended June 30, 2009.
GAAP Results for the Second Quarter 2009
-
Revenue for the quarter was $57.9 million, as compared to $63.2
million for the second quarter of 2008.
-
GAAP net income for the quarter was $2.2 million, as compared to GAAP
net income of $3.1 million for the second quarter of 2008.
-
GAAP diluted net income per share for the quarter was $0.05, as
compared to GAAP diluted net income of $0.07 per share for the second
quarter of 2008.
Non-GAAP Results for the Second Quarter 2009
-
Adjusted EBITDA for the quarter was $9.4 million, as compared to $13.9
million for the second quarter of 2008.
-
Cash net income for the quarter was $7.3 million, as compared to $9.4
million for the second quarter of 2008.
-
Diluted cash net income per share for the quarter was $0.18, as
compared to $0.22 per share for the second quarter of 2008.
GAAP Results for the Six Months Ended June 30, 2009
-
Revenue for the six months was $113.6 million, as compared to $127.5
million for the same period in 2008.
-
GAAP net loss for the six months was $(3.4) million, as compared to
GAAP net income of $5.4 million for the same period in 2008.
-
GAAP net loss per share for the six months was $(0.09), as compared to
GAAP diluted net income of $0.12 per share for the same period in 2008.
Non-GAAP Results for the Six Months Ended June 30, 2009
-
Adjusted EBITDA for the six months was $15.5 million, as compared to
$27.7 million for the same period in 2008.
-
Cash net income for the six months was $8.9 million, as compared to
$18.6 million for the same period in 2008.
-
Diluted cash net income per share for the six months was $0.22, as
compared to $0.43 per share for the same period in 2008.
Both GAAP and cash net income in the second quarter were favorably
impacted by an approximately $1.1 million tax benefit as a result of
filing several amended prior year state tax returns. Additionally, cash
net income was favorably impacted by a realized gain of approximately
$0.9 million relating to the sale of securities.
Guidance for 2009 Annual Performance
DealerTrack has lowered revenue and raised GAAP and non-GAAP earnings
guidance for the full year 2009 as follows:
Expected GAAP Results
-
Revenue for the year is expected to be between $228.0 million and
$232.0 million, compared to the previous estimate of $232.0 million to
$238.0 million.
-
GAAP net loss for the year is expected to be between $(4.3) million
and $(2.8) million, compared to the previous estimate of $(7.0)
million to $(5.5) million.
-
GAAP net loss per share for the year is expected to be between $(0.11)
and $(0.07), compared to the previous estimate of $(0.18) to $(0.14).
Expected Non-GAAP Results
-
Adjusted EBITDA for the year is expected to be between $32.0 million
and $34.0 million, compared to the previous estimate of $31.0 million
to $33.0 million.
-
Cash net income for the year is expected to be between $17.9 million
and $19.4 million, compared to the previous estimate of $16.7 million
to $18.2 million.
-
Diluted cash net income per share for the year is expected to be
between $0.43 and $0.47, compared to the previous estimate of $0.40 to
$0.44.
GAAP net loss guidance for the year is based on an assumed 40.3 million
basic weighted average shares outstanding. Cash net income per share
guidance for the year is based on an assumed 41.3 million diluted
weighted average shares outstanding.
The revised guidance assumes that available credit for auto financing,
lender to dealer relationships, and new and used car sales are similar
to the second quarter. The guidance also includes the expected impact of
the Chrysler and General Motors bankruptcies and related franchise
terminations.
Mark O’Neil, chairman and chief executive officer of DealerTrack,
commented, “The year began with a great deal of uncertainty in the
automotive retail industry. We have seen signs of modest improvement in
both car sales and credit that we hope will continue. Despite any
challenges, we are pleased with our subscription revenue growth. We
believe our value proposition differentiates us from the competition and
that we will continue to have success in subscription sales.” O’Neil
continued, “With effective cost control, we are raising our earnings
guidance for the year and remain confident with our ability to generate
strong cash flows.”
Other Activity
Lastly, on June 17, 2009, DealerTrack’s stockholders approved a proposal
for a one-time stock option exchange. DealerTrack expects to commence
the tender offer on or about August 7, 2009. The exchange has been
designed to make the grant of replacement options accounting expense
neutral.
Conference Call
DealerTrack will host a conference call to discuss its second quarter
2009 results, 2009 guidance and other matters on August 6, 2009 at 5:00
p.m. Eastern Time. The conference call will be webcast live on the
Internet at http://ir.dealertrack.com/eventdetail.cfm?eventid=49570.
In addition, a live audio of the call will be accessible to the public
by calling 877-795-3648 (domestic) or 719-325-4843 (international); no
access code is necessary. Callers should dial in approximately 10
minutes before the call begins. A replay will be available on the
DealerTrack website until August 24, 2009.
Non-GAAP Financial Measures
The non-GAAP measures of adjusted EBITDA and cash net income disclosures
are not presented in accordance with generally accepted accounting
principles (GAAP) and are not intended to be used in lieu of GAAP
presentations of net income (loss). Adjusted EBITDA is a non-GAAP
financial measure that represents GAAP net income (loss) excluding
interest, taxes, depreciation and amortization expenses and excludes
restructuring charges, acquisition related professional service fees and
a realized gain on securities. Cash net income is a non-GAAP financial
measure that represents GAAP net income (loss) excluding non-cash
stock-based compensation expense (net of taxes), the amortization of
acquired identifiable intangibles (net of taxes) and net non-cash
realized gain on securities (non-taxable). Adjusted EBITDA and cash net
income are presented because management believes they provide additional
information with respect to the performance of our fundamental business
activities as the purchase accounting treatment of acquisitions can have
a negative impact on our net income as the depreciation and amortization
expenses associated with acquired assets, as well as particular
intangibles (which tend to have a relatively short useful life), can be
substantial in the first several years following an acquisition. As a
result, we monitor our adjusted EBITDA and other business statistics as
a measure of operating performance in addition to net income (loss) and
the other measures included in our consolidated financial statements.
Management believes the adjusted EBITDA and cash net income information
is useful to investors for these reasons. Adjusted EBITDA and cash net
income are non-GAAP financial measures and should not be viewed as an
alternative to GAAP measures of performance. Management believes the
most directly comparable GAAP financial measure for adjusted EBITDA and
cash net income is GAAP net income (loss) and has provided a
reconciliation of adjusted EBITDA to GAAP net income (loss) and cash net
income to GAAP net income (loss), in Attachment 4 to this press release.
About DealerTrack (www.dealertrack.com)
DealerTrack's high-value software solutions enhance efficiency and
profitability for all major segments of the automotive retail industry,
including dealers, lenders, OEMs, agents and aftermarket providers.
DealerTrack operates the industry's largest online credit application
network, connecting approximately 18,000 dealers with over 750 financing
sources. Our solution set for dealers is the industry's most
comprehensive. Our Dealer Management System (DMS) enables dealers to
effectively manage data and operations from a system with an open
integration interface. With DealerTrack Inventory Optimization, dealers
get better data along with the tools to make smarter, more profitable
inventory decisions. Our Sales and F&I solution enables dealers to
streamline the entire sales process, quickly structuring all types of
deals from a single integrated platform. DealerTrack's Compliance
solution helps dealers meet legal and regulatory requirements and
protect their hard-earned assets. DealerTrack's family of companies also
includes data and consulting services providers, ALG (Automotive Lease
Guide) and Chrome Systems. For more information, visit www.dealertrack.com.
Safe Harbor for Forward-Looking and Cautionary Statements
Statements in this press release regarding DealerTrack’s expected 2009
performance; assumptions relating to the number of active lender to
dealer relationships, the availability of credit for auto financing, new
and used car sales, and the impact of the Chrysler and General Motors
bankruptcies and related franchise terminations in 2009, assumptions
relating to the development, expansion and benefits of DealerTrack’s
network, solutions and services, and DealerTrack’s growth and cash flow
expectations; and all other statements in this release other than the
recitation of historical facts are forward-looking statements (as
defined in the Private Securities Litigation Reform Act of 1995). These
statements involve a number of risks, uncertainties and other factors
that could cause actual results, performance or achievements of
DealerTrack to be materially different from any future results,
performance or achievements expressed or implied by these
forward-looking statements.
Factors that might cause such a difference include: economic trends that
affect the automotive retail industry or the indirect automotive
financing industry; reductions in auto dealerships by General Motors and
Chrysler in the United States; increased competitive pressure from other
industry participants, including Open Dealer Exchange, RouteOne, CUDL,
Finance Express and AppOne; the impact of some vendors of software
products for automotive dealers making it more difficult for
DealerTrack’s customers to use DealerTrack’s solutions and services;
security breaches, interruptions, failures and/or other errors involving
DealerTrack’s systems or networks; the failure or inability to execute
any element of DealerTrack’s business strategy, including selling
additional products and services to existing and new customers; the
volatility of DealerTrack’s stock price; new regulations or changes to
existing regulations; the integration of recent acquisitions and the
expected benefits, as well as the integration and expected benefits of
any future acquisitions that DealerTrack may pursue; DealerTrack’s
success in expanding its customer base and product and service
offerings, the impact of recent economic trends, including the
inaccessibility of funds associated with DealerTrack’s auction rate
securities, the potential for impairment charges on certain assets, and
difficulties and increased costs associated with raising additional
capital and other risks listed in DealerTrack’s reports filed with the
Securities and Exchange Commission (SEC), including its 2008 Annual
Report on Form 10-K. These filings can be found on DealerTrack’s website
at www.dealertrack.com
and the SEC’s website at www.sec.gov.
Forward-looking statements included herein speak only as of the date
hereof and DealerTrack disclaims any obligation to revise or update such
statements to reflect events or circumstances after the date hereof or
to reflect the occurrence of unanticipated events or circumstances.
|
Attachment (1) Actual Results: Three-Month Period
|
|
DEALERTRACK HOLDINGS, INC.
|
|
Consolidated Statements of Operations
|
|
(Dollars in thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
June 30,
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
57,870
|
|
|
$
|
63,181
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
28,852
|
|
|
|
27,879
|
|
|
Product development
|
|
|
3,514
|
|
|
|
3,084
|
|
|
Selling, general and administrative
|
|
|
25,280
|
|
|
|
28,010
|
|
|
Total operating costs and expenses
|
|
|
57,646
|
|
|
|
58,973
|
|
|
Income from operations
|
|
|
224
|
|
|
|
4,208
|
|
|
Interest and other income, net
|
|
|
267
|
|
|
|
1,071
|
|
|
Realized gain on security
|
|
|
930
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Income before benefit (provision) for income taxes
|
|
|
1,421
|
|
|
|
5,279
|
|
|
Benefit (provision) for income taxes
|
|
|
766
|
|
|
|
(2,213
|
)
|
|
Net income
|
|
$
|
2,187
|
|
|
$
|
3,066
|
|
|
|
|
|
|
|
|
Basic net income per share applicable to common stockholders (a)
(b)
|
|
$
|
0.05
|
|
|
$
|
0.07
|
|
|
Diluted net income per share applicable to common stockholders (a)
(b)
|
|
$
|
0.05
|
|
|
$
|
0.07
|
|
|
Weighted average shares outstanding (c)
|
|
|
39,499,313
|
|
|
|
41,505,451
|
|
|
Weighted average shares outstanding assuming dilution (c)
|
|
|
40,458,174
|
|
|
|
42,609,342
|
|
|
|
|
|
|
|
|
EBITDA (non-GAAP) (d)
|
|
$
|
10,315
|
|
|
$
|
13,894
|
|
|
EBITDA margin (non-GAAP) (e)
|
|
|
18
|
%
|
|
|
22
|
%
|
|
Adjusted EBITDA (non-GAAP) (d)
|
|
$
|
9,424
|
|
|
$
|
13,894
|
|
|
Adjusted EBITDA margin (non-GAAP) (e)
|
|
|
16
|
%
|
|
|
22
|
%
|
|
Cash net income (non-GAAP) (d)
|
|
$
|
7,338
|
|
|
$
|
9,351
|
|
|
Diluted cash net income per share applicable to common stockholders
(non-GAAP) (f) (g)
|
|
$
|
0.18
|
|
|
$
|
0.22
|
|
|
(a)
|
|
Basic net income per share applicable to common stockholders for the
three months ended June 30, 2009 was calculated in accordance with
FSP No. EITF 03-6-1, and assumes approximately $2,154,000 of net
income applicable to common stockholders. The computation of diluted
net income per share applicable to common stockholders of $0.05
under FSP No. EITF 03-6-1 assumes net income applicable to common
stockholders of approximately $2,155,000 divided by weighted average
shares assuming dilution of 40,458,174.
|
|
(b)
|
|
Basic net income per share applicable to common stockholders for the
three months ended June 30, 2008 was calculated in accordance with
FSP No. EITF 03-6-1, and assumes approximately $3,002,000 of net
income applicable to common stockholders. The computation of diluted
net income per share applicable to common stockholders of $0.07
under FSP No. EITF 03-6-1 assumes net income applicable to common
stockholders of approximately $3,004,000 divided by weighted average
shares assuming dilution of 42,609,342.
|
|
(c)
|
|
Weighted average shares outstanding and weighted average shares
outstanding assuming dilution for the three months ended June 30,
2009 and 2008 exclude 598,000 and 882,000, respectively, outstanding
shares of restricted common stock as they are considered
“participating securities” under FSP No. EITF 03-6-1.
|
|
(d)
|
|
See Reconciliation Data in Attachment 4.
|
|
(e)
|
|
Represents EBITDA and adjusted EBITDA as a percentage of net revenue.
|
|
(f)
|
|
For the three months ended June 30, 2009, the computation of diluted
cash net income per share of $0.18 under FSP No. EITF 03-6-1 assumes
cash net income applicable to common stockholders of approximately
$7,231,000 divided by weighted average shares assuming dilution of
40,458,174.
|
|
(g)
|
|
For the three months ended June 30, 2008, the computation of diluted
cash net income per share of $0.22 under FSP No. EITF 03-6-1 assumes
cash net income applicable to common stockholders of approximately
$9,161,000 divided by weighted average shares assuming dilution of
42,609,342.
|
|
|
|
Attachment (1) Actual Results: Six-Month Period
|
|
DEALERTRACK HOLDINGS, INC.
|
|
Consolidated Statements of Operations
|
|
(Dollars in thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
113,570
|
|
|
$
|
127,489
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
57,973
|
|
|
|
56,491
|
|
|
Product development
|
|
|
7,646
|
|
|
|
6,226
|
|
|
Selling, general and administrative
|
|
|
57,598
|
|
|
|
57,742
|
|
|
Total operating costs and expenses
|
|
|
123,217
|
|
|
|
120,459
|
|
|
(Loss) income from operations
|
|
|
(9,647
|
)
|
|
|
7,030
|
|
|
|
|
|
|
|
|
Interest and other income, net
|
|
|
669
|
|
|
|
2,542
|
|
|
Realized gain on securities
|
|
|
1,393
|
|
|
|
-
|
|
|
(Loss) income before benefit (provision) for income taxes
|
|
|
(7,585
|
)
|
|
|
9,572
|
|
|
Benefit (provision) for income taxes
|
|
|
4,147
|
|
|
|
(4,168
|
)
|
|
Net (loss) income
|
|
$
|
(3,438
|
)
|
|
$
|
5,404
|
|
|
|
|
|
|
|
|
Basic net (loss) income per share applicable to common stockholders (a)
(b)
|
|
$
|
(0.09
|
)
|
|
$
|
0.13
|
|
|
Diluted net (loss) income per share applicable to common
stockholders (a) (b)
|
|
$
|
(0.09
|
)
|
|
$
|
0.12
|
|
|
Weighted average shares outstanding (c)
|
|
|
39,298,637
|
|
|
|
41,569,417
|
|
|
Weighted average shares outstanding assuming dilution (c)
|
|
|
39,298,637
|
|
|
|
42,704,862
|
|
|
|
|
|
|
|
|
EBITDA (non-GAAP) (d)
|
|
$
|
9,686
|
|
|
$
|
27,238
|
|
|
EBITDA margin (non-GAAP) (e)
|
|
|
9
|
%
|
|
|
21
|
%
|
|
Adjusted EBITDA (non-GAAP) (d)
|
|
$
|
15,501
|
|
|
$
|
27,724
|
|
|
Adjusted EBITDA margin (non-GAAP) (e)
|
|
|
14
|
%
|
|
|
22
|
%
|
|
Cash net income (non-GAAP) (d)
|
|
$
|
8,873
|
|
|
$
|
18,625
|
|
|
Diluted cash net income per share applicable to common stockholders
(non-GAAP) (f) (g)
|
|
$
|
0.22
|
|
|
$
|
0.43
|
|
|
(a)
|
|
In accordance with FSP No. EITF 03-6-1, the two-class method of
computing EPS is an earnings allocation formula that treats a
participating security as having rights to earnings that would
otherwise have not been available to common stockholders. As
previously described, the two class method is an earnings allocation
formula; as such the net loss of $3.4 million for the six months
ended June 30, 2009 is entirely allocated to common stockholders.
|
|
(b)
|
|
Basic net income per share applicable to common stockholders for the
six months ended June 30, 2008 was calculated in accordance with FSP
No. EITF 03-6-1, and assumes approximately $5,292,000 of net income
applicable to common stockholders. The computation of diluted net
income per share applicable to common stockholders of $0.12 under
FSP No. EITF 03-6-1 assumes net income applicable to common
stockholders of approximately $5,295,000 divided by weighted average
shares assuming dilution of 42,704,862.
|
|
(c)
|
|
Weighted average shares outstanding and weighted average shares
outstanding assuming dilution for the six months ended June 30, 2009
and 2008 exclude 594,000 and 876,000, respectively, outstanding
shares of restricted common stock as they are considered
“participating securities” under FSP No. EITF 03-6-1.
|
|
(d)
|
|
See Reconciliation Data in Attachment 4.
|
|
(e)
|
|
Represents EBITDA and adjusted EBITDA as a percentage of net revenue.
|
|
(f)
|
|
For the six months ended June 30, 2009, the computation of diluted
cash net income per share of $0.22 under FSP No. EITF 03-6-1 assumes
cash net income applicable to common stockholders of approximately
$8,744,000 divided by weighted average shares assuming dilution of
40,151,742.
|
|
(g)
|
|
For the six months ended June 30, 2008, the computation of diluted
cash net income per share of $0.43 under FSP No. EITF 03-6-1 assumes
cash net income applicable to common stockholders of approximately
$18,251,000 divided by weighted average shares assuming dilution of
42,704,862.
|
|
|
|
Attachment (2) Condensed Consolidated Balance Sheets
|
|
DEALERTRACK HOLDINGS, INC.
|
|
Condensed Consolidated Balance Sheets
|
|
(Dollars in thousands)
|
|
(Unaudited)
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2009
|
|
2008
|
|
ASSETS
|
|
|
|
|
Cash and cash equivalents
|
$
|
178,254
|
|
$
|
155,456
|
|
Short-term investments
|
|
1,108
|
|
|
43,350
|
|
Accounts receivable, net
|
|
19,729
|
|
|
18,462
|
|
Prepaid expenses and other current assets
|
|
16,230
|
|
|
11,961
|
|
Total current assets
|
|
215,321
|
|
|
229,229
|
|
|
|
|
|
|
Property and equipment, net
|
|
14,350
|
|
|
13,448
|
|
Software and web site development costs, net
|
|
16,560
|
|
|
12,705
|
|
Intangible assets, net
|
|
50,899
|
|
|
44,405
|
|
Goodwill
|
|
131,084
|
|
|
114,886
|
|
Deferred taxes and other long-term assets
|
|
25,540
|
|
|
22,542
|
|
Total assets
|
$
|
453,754
|
|
$
|
437,215
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
Accounts payable and accrued expenses
|
$
|
26,600
|
|
$
|
23,723
|
|
Deferred revenue
|
|
5,213
|
|
|
5,609
|
|
Due to acquirees and other current liabilities
|
|
959
|
|
|
2,100
|
|
Total current liabilities
|
|
32,772
|
|
|
31,432
|
|
|
|
|
|
|
Long-term liabilities
|
|
11,263
|
|
|
9,563
|
|
Total liabilities
|
|
44,035
|
|
|
40,995
|
|
Total stockholders’ equity
|
|
409,719
|
|
|
396,220
|
|
Total liabilities and stockholders’ equity
|
$
|
453,754
|
|
$
|
437,215
|
|
|
|
Attachment (3) Condensed Consolidated Statements of Cash Flow
|
|
DEALERTRACK HOLDINGS, INC.
|
|
Condensed Consolidated Statements of Cash Flow
|
|
(Dollars in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
2009
|
|
2008
|
|
Cash flows from operating activities
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(3,438
|
)
|
|
$
|
5,404
|
|
|
Adjustments to reconcile net (loss) income
|
|
|
|
|
|
to net cash provided by operating activities
|
|
|
|
|
|
Depreciation and amortization
|
|
|
17,888
|
|
|
|
20,208
|
|
|
Stock-based compensation expense
|
|
|
10,812
|
|
|
|
6,995
|
|
|
Deferred tax benefit
|
|
|
(3,675
|
)
|
|
|
(1,135
|
)
|
|
Provision for doubtful accounts and sales credits
|
|
|
4,749
|
|
|
|
3,572
|
|
|
Realized gain on securities
|
|
|
(1,393
|
)
|
|
|
-
|
|
|
Changes in operating assets and liabilities, net of effects of
acquisitions
|
|
|
(4,901
|
)
|
|
|
(10,736
|
)
|
|
Other
|
|
|
(1,399
|
)
|
|
|
(12
|
)
|
|
Net cash provided by operating activities
|
|
|
18,643
|
|
|
|
24,296
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
Payment for acquisition of acquired businesses and intangible
assets,
net of acquired cash
|
|
|
(34,621
|
)
|
|
|
(2,358
|
)
|
|
Sale of investments, net
|
|
|
44,569
|
|
|
|
120,828
|
|
|
Capitalized software and web site development costs
|
|
|
(6,327
|
)
|
|
|
(4,410
|
)
|
|
Capitalized expenditures
|
|
|
(3,239
|
)
|
|
|
(2,991
|
)
|
|
Other
|
|
|
192
|
|
|
|
2
|
|
|
Net cash provided by investing activities
|
|
|
574
|
|
|
|
111,071
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
Proceeds from stock-based plans
|
|
|
2,166
|
|
|
|
1,891
|
|
|
Purchase of treasury stock
|
|
|
(334
|
)
|
|
|
(19,131
|
)
|
|
Other
|
|
|
901
|
|
|
|
(264
|
)
|
|
Net cash provided by (used in) financing activities
|
|
|
2,733
|
|
|
|
(17,504
|
)
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
21,950
|
|
|
|
117,863
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
848
|
|
|
|
(389
|
)
|
|
Cash, beginning of period
|
|
|
155,456
|
|
|
|
50,564
|
|
|
Cash, end of period
|
|
|
178,254
|
|
|
|
168,038
|
|
|
|
|
Attachment (4) Reconciliation Data
|
|
DEALERTRACK HOLDINGS, INC.
|
|
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
|
|
(Dollars in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
June 30,
|
|
|
|
2009
|
|
2008
|
|
GAAP net income
|
|
$
|
2,187
|
|
|
$
|
3,066
|
|
|
Interest income
|
|
|
(341
|
)
|
|
|
(1,145
|
)
|
|
Interest expense
|
|
|
76
|
|
|
|
74
|
|
|
(Benefit) provision for income taxes
|
|
|
(766
|
)
|
|
|
2,213
|
|
|
Depreciation and amortization
|
|
|
4,023
|
|
|
|
3,185
|
|
|
Amortization of acquired identifiable intangibles
|
|
|
5,136
|
|
|
|
6,501
|
|
|
EBITDA (non-GAAP)
|
|
|
10,315
|
|
|
|
13,894
|
|
|
Restructuring (a)
|
|
|
(22
|
)
|
|
|
-
|
|
|
Acquisition related professional fees (b)
|
|
|
61
|
|
|
|
-
|
|
|
Realized gain on security
|
|
|
(930
|
)
|
|
|
-
|
|
|
Adjusted EBITDA (non-GAAP)
|
|
$
|
9,424
|
|
|
$
|
13,894
|
|
|
(a)
|
|
Includes adjustments to the first quarter 2009 costs related to a
reduction in workforce.
|
|
(b)
|
|
Effective with the adoption of FAS 141R, Business Combinations,
acquisition related costs are expensed as incurred.
|
|
|
|
DEALERTRACK HOLDINGS, INC.
Reconciliation of GAAP Net Income to Non-GAAP Cash Net Income
(Dollars in thousands)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
June 30,
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
GAAP net income
|
|
$
|
2,187
|
|
$
|
3,066
|
|
Non-cash stock-based compensation charges, net of taxes
|
|
|
2,023
|
|
|
2,184
|
|
Amortization of acquired identifiable intangibles, net of taxes
|
|
|
3,128
|
|
|
4,101
|
|
Cash net income (non-GAAP) (a)
|
|
$
|
7,338
|
|
$
|
9,351
|
|
(a)
|
|
The three months ended June 30, 2009, includes $930,000 in realized
gain relating to the sale of a security.
|
|
|
|
Attachment (4) Reconciliation Data
|
|
DEALERTRACK HOLDINGS, INC.
|
|
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Adjusted
EBITDA
|
|
(Dollars in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
GAAP net (loss) income
|
|
$
|
(3,438
|
)
|
|
$
|
5,404
|
|
|
Interest income
|
|
|
(743
|
)
|
|
|
(2,708
|
)
|
|
Interest expense
|
|
|
126
|
|
|
|
166
|
|
|
(Benefit) provision for income taxes
|
|
|
(4,147
|
)
|
|
|
4,168
|
|
|
Depreciation and amortization
|
|
|
7,466
|
|
|
|
6,081
|
|
|
Amortization of acquired identifiable intangibles
|
|
|
10,422
|
|
|
|
14,127
|
|
|
EBITDA (non-GAAP)
|
|
$
|
9,686
|
|
|
$
|
27,238
|
|
|
Restructuring (a)
|
|
|
6,709
|
|
|
|
-
|
|
|
Acquisition related professional fees (b)
|
|
|
499
|
|
|
|
486
|
|
|
Realized gain on securities
|
|
|
(1,393
|
)
|
|
|
-
|
|
|
Adjusted EBITDA (non-GAAP)
|
|
$
|
15,501
|
|
|
$
|
27,724
|
|
|
(a)
|
|
Includes costs related to a reduction in workforce, a plant
relocation related to DealerTrack’s Digital Services business and a
gain related to DealerTrack’s exit from the SCS business.
|
|
(b)
|
|
Effective with the adoption of FAS 141R, Business Combinations,
acquisition related costs are expensed as incurred.
|
|
|
|
DEALERTRACK HOLDINGS, INC.
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Cash Net
Income
(Dollars in thousands)
(Unaudited)
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
GAAP net (loss) income
|
|
$
|
(3,438
|
)
|
|
$
|
5,404
|
|
Non-cash stock-based compensation charges, net of taxes (a)
|
|
|
6,422
|
|
|
|
4,323
|
|
Amortization of acquired identifiable intangibles, net of taxes
|
|
|
6,352
|
|
|
|
8,898
|
|
Realized non-cash gain on conversion of security (b)
|
|
|
(463
|
)
|
|
|
-
|
|
Cash net income (non-GAAP)(c)
|
|
$
|
8,873
|
|
|
$
|
18,625
|
|
(a)
|
|
The six months ended June 30, 2009, includes $3.9 million in
non-cash charges related to the restructuring ($2.3 million, net of
taxes).
|
|
(b)
|
|
Non-taxable.
|
|
(c)
|
|
The six months ended June 30, 2009, includes $930,000 in realized
gain relating to the sale of a security.
|
|
|
|
Attachment (4) Reconciliation Data - (continued)
|
|
DEALERTRACK HOLDINGS, INC.
|
|
Reconciliation of Forward-looking GAAP Net Loss to
|
|
Forward-looking Non-GAAP Adjusted EBITDA
|
|
(Dollars in millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Year Ending
|
|
|
|
December 31, 2009
|
|
|
|
Expected Range
|
|
|
|
|
|
|
|
GAAP net loss
|
|
$
|
(4.3
|
)
|
|
$
|
(2.8
|
)
|
|
Interest income
|
|
|
(1.9
|
)
|
|
|
(1.9
|
)
|
|
Interest expense
|
|
|
0.3
|
|
|
|
0.3
|
|
|
Benefit from income taxes (a)
|
|
|
(4.2
|
)
|
|
|
(3.7
|
)
|
|
Depreciation and amortization
|
|
|
15.9
|
|
|
|
15.9
|
|
|
Amortization of acquired identifiable intangibles
|
|
|
20.3
|
|
|
|
20.3
|
|
|
EBITDA (non-GAAP)
|
|
|
26.1
|
|
|
|
28.1
|
|
|
Restructuring (b)
|
|
|
6.8
|
|
|
|
6.8
|
|
|
Acquisition related professional fees (c)
|
|
|
0.5
|
|
|
|
0.5
|
|
|
Realized gain on securities
|
|
|
(1.4
|
)
|
|
|
(1.4
|
)
|
|
Adjusted EBITDA (non-GAAP)
|
|
$
|
32.0
|
|
|
$
|
34.0
|
|
|
(a)
|
|
Includes an approximately $1.1 million tax benefit as a result of
filing several amended prior year state tax returns.
|
|
(b)
|
|
Includes costs related to a reduction in workforce, a plant
relocation related to DealerTrack’s Digital Services business and a
gain related to DealerTrack’s exit from the SCS business.
|
|
(c)
|
|
Effective with the adoption of FAS 141R, Business Combinations,
acquisition related costs are expensed as incurred.
|
|
|
|
DEALERTRACK HOLDINGS, INC.
Reconciliation of Forward-looking GAAP Net Loss to
Forward-looking Non-GAAP Cash Net Income
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
Year Ending
|
|
|
|
December 31, 2009
|
|
|
|
Expected Range
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
$
|
(4.3
|
)
|
|
$
|
(2.8
|
)
|
|
Non-cash stock-based compensation charges, net of taxes (a)
|
|
|
10.3
|
|
|
|
10.3
|
|
|
Amortization of acquired identifiable intangibles, net of taxes
|
|
|
12.4
|
|
|
|
12.4
|
|
|
Realized non-cash gain on conversion of a security (b)
|
|
|
(0.5
|
)
|
|
|
(0.5
|
)
|
|
Cash net income (non-GAAP) (c)
|
|
$
|
17.9
|
|
|
$
|
19.4
|
|
|
(a)
|
|
Includes $3.9 million in non-cash charges related to the
restructuring ($2.3 million, net of taxes).
|
|
(b)
|
|
Non-taxable.
|
|
(c)
|
|
Includes $930,000 in realized gain relating to the sale of a
security.
|
|
|
|
Attachment (5)
|
|
Summary of Business Statistics (Unaudited)
|
|
DEALERTRACK HOLDINGS, INC.
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
Sept 30,
|
|
June 30,
|
|
|
|
2009
|
|
2009
|
|
2008
|
|
2008
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active U.S. dealers (a)
|
|
18,047
|
|
18,998
|
|
19,652
|
|
21,001
|
|
21,735
|
|
Active U.S. financing
|
|
|
|
|
|
|
|
|
|
|
|
sources (b)
|
|
755
|
|
736
|
|
733
|
|
706
|
|
659
|
|
Transactions
|
|
|
|
|
|
|
|
|
|
|
|
processed (c)
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
13,157
|
|
14,327
|
|
14,296
|
|
19,219
|
|
22,251
|
|
Active U.S. lender to
|
|
|
|
|
|
|
|
|
|
|
|
dealer relationships (d)
|
|
123,885
|
|
134,475
|
|
156,437
|
|
179,102
|
|
195,886
|
|
Subscribing dealers (e)
|
|
14,115
|
|
14,646
|
|
14,342
|
|
14,229
|
|
13,957
|
|
(a)
|
|
We consider a dealer to be active as of a date if the dealer
completed at least one revenue-generating credit application
processing transaction using the DealerTrack network during the most
recently ended calendar month.
|
|
(b)
|
|
We consider a financing source to be active in our DealerTrack
network as of a date if it is accepting credit application data
electronically from U.S. dealers in the DealerTrack network.
|
|
(c)
|
|
Represents revenue-generating transactions processed in the
DealerTrack, DealerTrack Digital Services and DealerTrack Canada
networks at the end of a given period.
|
|
(d)
|
|
Each lender to dealer relationships represents a pair between an
active U.S. financing source and an active U.S. dealer.
|
|
(e)
|
|
Dealers with one or more active subscription on the U.S. and
Canadian networks.
|
|
|
|
|
|
Three months ended
|
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
Sept 30,
|
|
June 30,
|
|
|
|
2009
|
|
2009
|
|
2008
|
|
2008
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction revenue
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
$24,645
|
|
$24,041
|
|
$24,924
|
|
$33,007
|
|
$36,321
|
|
Subscription revenue
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
$29,028
|
|
$27,943
|
|
$25,630
|
|
$23,797
|
|
$22,877
|
|
Other revenue
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
$4,197
|
|
$3,716
|
|
$4,138
|
|
$3,721
|
|
$3,983
|
|
Average transaction
|
|
|
|
|
|
|
|
|
|
|
|
price
|
|
$1.87
|
|
$1.68
|
|
$1.74
|
|
$1.72
|
|
$1.63
|
|
Average monthly
|
|
|
|
|
|
|
|
|
|
|
|
subscription revenue
|
|
|
|
|
|
|
|
|
|
|
|
per subscribing
|
|
|
|
|
|
|
|
|
|
|
|
dealership (a)
|
|
$686
|
|
$635
|
|
$595
|
|
$557
|
|
$546
|
|
(a)
|
|
Represents subscription revenue divided by subscribing dealers at
the end of a given period in the DealerTrack and DealerTrack Canada
networks.
|
|
|
|
|
TRAK-E
DealerTrack
Investor Relations, 888-450-0478
investorrelations@dealertrack.com
