LAKE SUCCESS, N.Y. — DealerTrack Holdings Inc. reported revenue of $91.6 million for the first quarter, up from $77.2 million for the first quarter of 2011.
Net income for the quarter was $17 million vs. $24.7 million for the year-ago period. It was positively impacted by $16.1 million (net of tax) from a non-cash gain related to the contribution of Chrome to the Chrome Data Solutions, LP joint venture., as well as a $24.5 million non-cash reduction in the valuation allowance against the company's net U.S. deferred tax assets.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were $19.4 million vs. $15.5 million in the year-ago period. Adjusted net income for the quarter was $9.4 million, compared to $7.5 million for the first quarter of 2011
The company also raised its guidance for the year, reporting that it expects revenue to be between $375 million and $382 million, an increase from prior guidance of between $365.0 to $372.0 million . Net income for the year is expected to be between $27 million and $30 million, a decrease from prior guidance of between $33 million and $36 million
Adjusted EBITDA for the year is expected to be between $94 million and $97 million, an increase from prior guidance of between $91 and $95 million. Adjusted net income for the year is expected to be between $46 million and $49 million, an increase from prior guidance of between $44 and $47 million
The guidance assumes that new-car sales by franchised dealers will be approximately 14.2 million units, up from our previous expectation of 13.5 million units, officials said. The company also expects used-car sales by franchised dealers to reach approximately 14.0 million units.
"We are pleased with our strong performance in the first quarter,” said Mark F. O'Neil, chairman and CEO of DealerTrack. “Transaction revenue grew at a multiple of growth in car sales as we increased the average transaction revenue per car sold. Our subscription business also performed well, as we saw particularly strong interest in our Inventory solution."