Autobytel Inc. reported October 25th financial results for the quarter ended September 30, 2001. The reported results include Autoweb.com financials from the date of its acquisition on August 14, 2001.

Revenue for the third quarter was $18.2 million, up 4 percent from revenue of $17.5 million in the same quarter of the prior year, and up 16 percent sequentially from revenue of $15.7 million in the quarter ended June 30, 2001. For the third quarter, of the total revenue, $13.7 million was related to program fees; $1.3 million was automotive manufacturer data and technology fees, including fees from General Motors, Ford, Toyota and Honda; $0.9 million was from international fees and licenses, and $2.3 million was from related products.

The company reported EBITDA, excluding acquisition related charges, for the third quarter of 2001 of $(1.9) million, or $(0.07) per share, compared with EBITDA, excluding special charges, of $(4.9) million or $(0.24) per share, for the quarter ended June 30, 2001.

The company reported a net loss, excluding acquisition related charges, for the third quarter of $2.0 million or $0.08 per share, compared with a net loss excluding special charges, of $3.0 million, or $0.15 per share, for the quarter ended June 30, 2001.

In the third quarter, the company incurred $1.3 million of charges as a result of the acquisition of Autoweb. The company reported a net loss, including the charges, for the third quarter of 2001 of $3.2 million, or $0.13 per share, compared with a net loss of $7.9 million, or $0.39 per share, in the same quarter of the prior year, and compared with a net loss, including charges, of $36.6 million, or $1.80 per share, in the quarter ended June 30, 2001.

As of September 30, 2001, the domestic cash and cash equivalents were $39.5 million. Additionally, cash on hand at Autobytel Europe (ABTE) was $30.1 million, although this amount may be reduced substantially as a result of ongoing discussions with other investors in ABTE.

"Considering the difficult business environment during the third quarter, we are very pleased with our results. Our substantial reduction of losses, our 16% sequential revenue growth to $18.2 million and our healthy cash balance are particularly heartening," said Mark Lorimer, president and CEO of Autobytel Inc.

Q4 2001 Outlook

"As we stated earlier, we belive that, excluding any charges, we will reach EBITDA break-even in the fourth quarter of 2001," continued Lorimer. "Needless to say, our dealers in the Northeast have been significantly impacted by the September 11th events and there continues to be volatility in the automotive industry; however, we continue to monitor all aspects of our business very closely and are encouraged by the recent Opinion Research survey showing that the vast majority of American adults (83%) say that, in light of recent events, there has been no change in their plans to purchase or lease a new or used vehicle."

Third Quarter Highlights

Acquisition: On August 14, 2001 the company completed its acquisition of Autoweb.com and its division Automotive Information Center (AIC). The combination created one of the largest online automotive marketing and information companies providing auto distributors and manufacturers with marketing, data, technology and management services. "We are pleased to report that the integration of Autoweb is on track. Our decision to prepare for the integration immediately after signing in April has allowed us to quickly and effectively combine our businesses and to achieve almost immediate cross-company synergies," commented Lorimer.

Program Fees: Program fees increased sequentially from $11.5 million to $13.7 million or 19% from the second quarter this year. "We are very pleased with the progress we have made in our lead referral business. Prior to September 11th, program fees and dealer counts were stabilizing due to both the acquisition of Autoweb and the measures we instituted in our dealer sales and support department," said Lorimer. "Purchase Requests and site visits were down in the first week after September 11th but appear to be heading back to normal levels."

Automotive Manufacturer Relationships:With the integration of Autoweb.com and AIC into the company's businesses, Autobytel Inc. now counts 25 major automotive manufacturers among its customer base.

Unique Visitors: Autobytel Inc. sites receive more unique visitors than any other car-buying and ownership site on the web with over 3.5 million in August, according to Jupiter Media Metrix.

International: During the second quarter, the company announced a restructuring of Autobytel Europe (ABTE) to enhance efficiencies. The company is currently discussing the capital structure of ABTE with the other investors of ABTE. Changes to the capital structure of ABTE could substantially reduce the cash on hand at ABTE and could require Autobytel Inc. to take additional non-cash charges that may be material. The company does not anticipate any reductions to domestic cash-on-hand as a result of such changes. The company intends to continue to do business in Europe.

Product Development: On October 10, 2001, the company announced that it will offer AutoSuiteTM Dealer, a customoized package of automotive website and data tools, to all U.S. dealerships. Developed by AIC, the company's data and technology division, AutoSuiteTM Dealer is one of the most comprehensive packages of online vehicle research tools ever offered to individual dealers. AIC data and technology currently powers 22 of the major manufacturer websites. The company plans to continue to introduce new products during subsequent quarters to enhance its portfolio of dealer, dealer group and automotive manufacturer offerings.

About Autobytel Inc.

Autobytel Inc., an online automotive marketing and information company, owns and operates Autobytel.com, Autoweb.com, Carsmart.com, Autosite.com, and AIC (Automotive Information Center). Autobytel Inc.'s mission is to provide marketing, data, technology and management services to benefit every manufacturer and dealership. The company powers manufacturer and portal auto channels with data and tools to help customers buy cars; provides advertising programs for manufacturers and dealers to target customers; develops technology to drive one of the most advanced inventory-based manufacturer's online car selling programs to date and generates billions of dollars in car sales for dealers through the company's websites.

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