LAKE SUCCESS, N.Y. — In another example of impact of the credit crisis on the auto industry, dealership solutions provider DealerTrack said the number of lender-to-dealer relationships declined by about 48,000 from the beginning of the year. The news was part of the company’s third-quarter earnings call with investors.
The number of lender-to-dealer relationships stood at about 227,000 at the beginning of the year. That number dropped to about 179,000 in the third quarter. The amount of dealers on the DealerTrack network also declined: 21,001 dealers were on the network when the report was issued, down 7 percent from the 22,551 reported a year ago.
Transactions processed during the third quarter were approximately 19.2 million, down 19 percent from the 23.8 million processed during the same period last year. Additionally, total subscriptions were up 21 percent compared to the year-ago period, with the average monthly revenue for subscribing dealers increasing 5 percent from the same period last year.
DealerTrack executives also said the number of active financing sources on its network jumped 43 percent from the prior-year period.
The company’s revenue for the quarter was $60.5 million, a 4 percent decrease form the third-quarter 2007. Generally accepted accounting principles (GAAP) net loss was $2.6 million, a decrease of $4.5 million from the year-ago period. The company also reported an impairment charge of $5.7 million, which was related to certain auction rate securities.
The company also lowered its outlook for the year, with executives estimating that revenue for the year will be between $240 million and $243 million, rather than its original estimate of $246 to $253 million. GAAP net income for the year is also expected to be between $1.2 and $1.7 million instead of its original estimate of $9.4 to $12.8 million.