LAKE SUCCESS, N.Y.,
Nov. 7, 2011 /PRNewswire/ --
DealerTrack Holdings, Inc. (Nasdaq: TRAK) today reported financial
results for the third quarter ended September 30, 2011.
(Logo:
http://photos.prnewswire.com/prnh/20101028/DEALERTRACKLOGO
)
GAAP Results for the Third Quarter 2011
- Revenue for the quarter was $95.8
million, as compared to $63.1
million for the third quarter of 2010.
- GAAP net income for the quarter was $5.4
million, as compared to $1.2
million for the third quarter of 2010.
- Diluted GAAP net income per share for the quarter was
$0.13, as compared to $0.03 for the third quarter of 2010.
Non-GAAP Results for the Third Quarter 2011
- Adjusted EBITDA for the quarter was $23.0 million, as compared to $12.9 million for the third quarter of 2010.
- Adjusted net income for the quarter was $14.7 million, as compared to $6.6 million for the third quarter of 2010.
- Diluted adjusted net income per share was $0.34 for the quarter, as compared to
$0.16 for the third quarter of 2010.
GAAP Results for the Nine Months Ended September 30, 2011
- Revenue for the nine months was $262.0
million, as compared to $181.8
million for the same period in 2010.
- GAAP net income for the nine months was $32.3 million, as compared to a GAAP net loss of
$(1.4) million for the same period in
2010.
- Diluted GAAP net income per share for the nine months was
$0.76, as compared to a GAAP net loss
of $(0.03) per share for the same
period in 2010.
GAAP net income for 2011 has been positively impacted by a
$22.4 million, or $0.53 per share, non-cash reduction in the
valuation allowance against the company's net U.S. deferred tax
assets.
Non-GAAP Results for the Nine Months Ended September 30, 2011
- Adjusted EBITDA for the nine months was $57.0 million, as compared to $27.6 million for the same period in 2010.
- Adjusted net income for the nine months was $33.2 million, as compared to $13.7 million for the same period in 2010.
- Diluted adjusted net income per share for the nine months was
$0.78, as compared to $0.33 per share for the same period in 2010.
Guidance for 2011 Annual Performance
DealerTrack raises revenue and both GAAP and non-GAAP earnings
guidance for the full year 2011 as follows:
Expected GAAP Results
- Revenue for the year is expected to be between $344.0 million and $347.0 million, compared to
the previous estimate of between $336.0
million and $340.0 million.
- GAAP net income for the year is expected to be between
$65.0 million and $67.0 million,
compared to the previous estimate of between $24.5 and $27.0 million.
- Diluted GAAP net income per share for the year is expected to
be between $1.53 and $1.58, compared
to the previous estimate of between $0.57
and $0.63.
The revised GAAP earnings guidance reflects an expected pre-tax
gain of approximately $47.5 million
($28.8 million net of tax, or
$0.68 per share) to be recognized in
the fourth quarter related to the sale of DealerTrack's wholly
owned subsidiary, ALG, Inc.
Expected Non-GAAP Results
- Adjusted EBITDA for the year is expected to be between
$72.0 million and $75.0 million, compared to the previous estimate
of between $66.0 million and
$70.0 million.
- Adjusted net income for the year is expected to be between
$40.0 million and $42.0 million,
compared to the previous estimate of between $34.5 million and $37.0 million.
- Diluted adjusted net income per share for the year is expected
to be between $0.94 and $0.99
compared to the previous estimate of between $0.81 and $0.86.
Diluted GAAP net income and adjusted net income per share
guidance for the year are based on an assumed 42.4 million diluted
weighted average shares outstanding, compared to a previous
estimate of 42.8 million shares. The guidance assumes that
new car sales will be approximately 12.8 million units and used car
sales will be approximately 13.8 million units for 2011. The
assumptions for car sales are unchanged from DealerTrack's prior
estimates. The revised guidance implies an adjusted EBITDA margin
of approximately 21% for the full year, up from approximately
20%.
Mark O'Neil, chairman and chief executive officer of
DealerTrack, commented, "We are very pleased with our record
revenue and non-GAAP earnings results for the third quarter as our
transaction businesses continue to benefit from the improvement in
auto credit availability, an increase in car sales year over year,
the addition of new lenders to our network, and the performance of
DealerTrack Processing Solutions. Additionally, our
subscription business benefitted from our recent eCarlist
acquisition."
Conference Call
DealerTrack will host a conference call to discuss its third
quarter 2011 results and other matters on November 7, 2011 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=95733. In
addition, a live audio of the call will be accessible to the public
by calling 877-303-6648 (domestic) or 970-315-0443 (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 November 30, 2011.
Non-GAAP Financial Measures
The non-GAAP measures of adjusted EBITDA and adjusted 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. Adjusted EBITDA is
a non-GAAP financial measure that represents GAAP net income (loss)
excluding interest, taxes, depreciation and amortization expenses,
contra-revenue and may exclude certain items such as:
impairment charges, restructuring charges,
acquisition-related compensation expense and professional service
fees, realized gains or (losses) on securities and certain other
non-recurring items. Adjusted net income is a non-GAAP
financial measure that represents GAAP net income (loss) excluding
stock-based compensation expense, the amortization of acquired
identifiable intangibles, contra-revenue and may also exclude
certain items such as: impairment charges, restructuring charges,
acquisition-related compensation expense and professional service
fees, realized gains or (losses) on securities, adjustments to the
deferred tax asset valuation allowance and certain other
non-recurring items. These adjustments to net income, which
are shown before taxes, are adjusted for their tax impact.
Adjusted EBITDA and adjusted net income are presented because
management believes they provide additional information with
respect to the performance of our fundamental business activities
principally because the purchase accounting treatment of
acquisitions can have a negative impact on our GAAP results because
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 adjusted net income and other business
statistics as a measure of operating performance in addition to net
income and the other measures included in our consolidated
financial statements. Management believes the adjusted EBITDA
and adjusted net income information is useful to investors for
these reasons. Adjusted EBITDA and adjusted net income are
nonGAAP 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 adjusted net income is GAAP net income (loss)
and has provided a reconciliation of adjusted EBITDA to GAAP net
income (loss) and adjusted net income to GAAP net income (loss) in
Attachment 4 to this press release.
About DealerTrack (www.dealertrack.com)
DealerTrack's intuitive and high-value software solutions and
services enhance efficiency and profitability for all major
segments of the retail automotive industry, including dealers,
lenders, OEMs, agents and aftermarket providers. DealerTrack,
whose solution set for dealers is the industry's most
comprehensive, operates the largest online credit application
network in the United States,
connecting over 17,000 dealers with more than 1,100 lenders.
DealerTrack's Dealer Management System (DMS) provides dealers with
easy-to-use tools and real-time data access to enhance their
efficiency. DealerTrack's Inventory offerings provide vehicle
inventory management and merchandising solutions to help dealers
drive higher in-store and online traffic with state-of-the-art,
real-time listings — leading to accelerated used-vehicle turn rates
and higher dealer profits. DealerTrack's Sales and F&I
solutions allow dealers to streamline the entire sales process as
they structure deals from a single integrated platform. Its
Compliance offering helps dealers meet legal and regulatory
requirements, and protect their assets. DealerTrack also
offers additional solutions for the automotive industry, including
electronic motor vehicle registration and titling applications,
paper title storage, and digital document services.
DealerTrack's family of companies also includes Chrome Systems, a
data provider to the auto industry. For more information, visit
www.dealertrack.com.
Safe Harbor for Forward-Looking and Cautionary
Statements
Statements in this press release regarding DealerTrack's
expected 2011 performance based on both GAAP and non-GAAP measures,
the long-term outlook for its business, 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 including the number of new and used
cars sold; credit availability; reductions in auto dealerships;
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; DealerTrack's success in implementing an ERP system; 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, and
difficulties and increased costs associated with raising additional
capital; the impairment of intangible assets, such as trademarks
and goodwill; and other risks listed in DealerTrack's reports filed
with the Securities and Exchange Commission (SEC), including its
most recent 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, except as required by
law.
Attachment (1) Actual
Results
|
|
Three-Month
Period
|
|
DEALERTRACK
HOLDINGS, INC.
|
|
Consolidated
Statements of Operations
|
|
(Dollars in
thousands, except share and per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Net revenue
|
$
95,793
|
|
$
63,128
|
|
Cost of revenue (a)
|
52,803
|
|
32,837
|
|
Product development
|
3,661
|
|
3,354
|
|
Selling, general and
administrative (a)
|
32,285
|
|
24,526
|
|
Total
operating expenses
|
88,749
|
|
60,717
|
|
Income from
operations
|
7,044
|
|
2,411
|
|
Interest and other (expense)
income, net
|
(191)
|
|
286
|
|
Income before provision
for income taxes
|
6,853
|
|
2,697
|
|
Provision for income taxes,
net
|
(1,492)
|
|
(1,515)
|
|
Net income
|
$
5,361
|
|
$
1,182
|
|
|
|
|
|
|
Basic net income per
share
|
$
0.13
|
|
$
0.03
|
|
Diluted net income per
share
|
$
0.13
|
|
$
0.03
|
|
Weighted average shares
outstanding (basic)
|
41,396,431
|
|
40,404,126
|
|
Weighted average shares
outstanding (diluted)
|
42,497,367
|
|
41,354,680
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP)
(b)
|
$
23,041
|
|
$
12,855
|
|
Adjusted EBITDA margin
(non-GAAP) (c)
|
24%
|
|
20%
|
|
Adjusted net income (non-GAAP)
(b)
|
$
14,654
|
|
$
6,631
|
|
Diluted adjusted net income per
share (non-GAAP)
|
$
0.34
|
|
$
0.16
|
|
|
|
|
|
|
Stock-based compensation expense
was classified as follows:
|
|
|
|
|
Cost of revenue
|
$
456
|
|
$
438
|
|
Product
development
|
$
176
|
|
$
164
|
|
Selling, general and
administrative
|
$
2,113
|
|
$
2,248
|
|
|
|
|
|
|
(a) We have reclassed
approximately $1.2 million of salary and benefit costs for the
three months
|
|
ended September 30, 2010 from
selling, general and administrative to cost of revenue.
|
|
(b) See Reconciliation
Data in Attachment 4.
|
|
(c) Represents adjusted
EBITDA as a percentage of net revenue.
|
|
|
|
|
|
|
Attachment (1) Actual
Results
|
|
|
|
|
Nine-Month
Period
|
|
DEALERTRACK
HOLDINGS, INC.
|
|
Consolidated
Statements of Operations
|
|
(Dollars in
thousands, except share and per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Net revenue
|
$
262,035
|
|
$
181,820
|
|
Cost of revenue (a)
|
145,942
|
|
96,977
|
|
Product development
|
10,903
|
|
10,291
|
|
Selling, general and
administrative (a)
|
93,340
|
|
77,036
|
|
Total
operating expenses
|
250,185
|
|
184,304
|
|
Income (loss) from
operations
|
11,850
|
|
(2,484)
|
|
Interest and other (expense)
income, net
|
(132)
|
|
1,316
|
|
Realized gain on
securities
|
409
|
|
582
|
|
Income (loss) before
benefit from income taxes
|
12,127
|
|
(586)
|
|
Benefit from (provision for)
income taxes, net
|
20,128
|
|
(800)
|
|
Net income
(loss)
|
$
32,255
|
|
$
(1,386)
|
|
|
|
|
|
|
Basic net income (loss) per
share
|
$
0.78
|
|
$
(0.03)
|
|
Diluted net income (loss) per
share
|
$
0.76
|
|
$
(0.03)
|
|
Weighted average shares
outstanding (basic)
|
41,146,197
|
|
40,246,374
|
|
Weighted average shares
outstanding (diluted)
|
42,366,861
|
|
40,246,374
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP)
(b)
|
$
56,996
|
|
$
27,597
|
|
Adjusted EBITDA margin
(non-GAAP) (c)
|
22%
|
|
15%
|
|
Adjusted net income (non-GAAP)
(b)
|
$
33,194
|
|
$
13,703
|
|
Diluted adjusted net income per
share (non-GAAP) (d)
|
0.78
|
|
$
0.33
|
|
|
|
|
|
|
Stock-based compensation expense
was classified as follows:
|
|
|
|
|
Cost of revenue
|
$
1,308
|
|
$
1,279
|
|
Product
development
|
$
548
|
|
$
471
|
|
Selling, general and
administrative
|
$
6,857
|
|
$
6,929
|
|
|
|
|
|
|
(a) We have reclassed
approximately $3.3 million of salary and benefit costs for the nine
months
|
|
ended September 30, 2010 from
selling, general and administrative to cost of revenue.
|
|
(b) See Reconciliation
Data in Attachment 4.
|
|
(c) Represents adjusted
EBITDA as a percentage of net revenue.
|
|
(d) For the nine months ended
September 30, 2010, the adjusted net income per share of
approximately $0.33
|
|
is based on 41,201,433
diluted weighted average shares
outstanding.
|
|
|
|
|
|
Attachment (2) Condensed
Consolidated Balance Sheets
|
|
|
DEALERTRACK
HOLDINGS, INC.
|
|
Condensed
Consolidated Balance Sheets
|
|
(Dollars in
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30, 2011
|
|
December 31,
2010
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
64,951
|
|
$
192,563
|
|
Investments
|
44
|
|
490
|
|
Customer funds
|
2,054
|
|
-
|
|
Customer funds
receivable
|
19,135
|
|
-
|
|
Accounts receivable,
net
|
40,532
|
|
24,273
|
|
Prepaid expenses and other
current assets
|
25,092
|
|
17,929
|
|
Total current
assets
|
151,808
|
|
235,255
|
|
|
|
|
|
|
Investments -
long-term
|
-
|
|
2,254
|
|
Property and equipment,
net
|
20,780
|
|
18,875
|
|
Software and website development
costs, net
|
36,538
|
|
29,875
|
|
Intangible assets,
net
|
100,978
|
|
23,163
|
|
Goodwill
|
233,428
|
|
136,408
|
|
Deferred taxes and other
long-term assets
|
39,336
|
|
13,133
|
|
Total assets
|
$
582,868
|
|
$
458,963
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
Accounts payable and accrued
expenses
|
$
38,732
|
|
$
28,575
|
|
Customer funds
payable
|
21,189
|
|
-
|
|
Deferred revenue
|
8,298
|
|
5,010
|
|
Other current
liabilities
|
317
|
|
728
|
|
Total current
liabilities
|
68,536
|
|
34,313
|
|
Long-term liabilities
|
59,851
|
|
15,733
|
|
Total
liabilities
|
128,387
|
|
50,046
|
|
Total stockholders'
equity
|
454,481
|
|
408,917
|
|
Total liabilities and
stockholders' equity
|
$
582,868
|
|
$
458,963
|
|
|
|
|
|
Attachment (3) Consolidated
Statements of Cash Flows
|
|
|
|
|
DEALERTRACK
HOLDINGS, INC.
|
|
Consolidated
Statements of Cash Flows
|
|
(Dollars in
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
Operating
activities:
|
|
|
|
|
Net income (loss)
|
$
32,255
|
|
$
(1,386)
|
|
Adjustments to reconcile net
income (loss) to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
37,620
|
|
27,475
|
|
Deferred tax
benefit
|
(22,813)
|
|
(2,650)
|
|
Stock-based compensation
expense
|
8,713
|
|
8,679
|
|
Provision for doubtful
accounts and sales credits
|
4,828
|
|
4,015
|
|
Loss on sale of property
and equipment
|
-
|
|
19
|
|
Amortization of deferred
interest
|
15
|
|
68
|
|
Deferred
compensation
|
150
|
|
-
|
|
Stock-based compensation
windfall tax benefit
|
(2,255)
|
|
(1,398)
|
|
Realized gain on
securities
|
(409)
|
|
(582)
|
|
Amortization of debt
issuance costs
|
213
|
|
-
|
|
Changes in operating
assets and liabilities, net of effects of acquisitions:
|
|
|
|
|
Accounts
receivable
|
(16,449)
|
|
(10,938)
|
|
Prepaid expenses and other
current assets
|
(1,649)
|
|
(4,108)
|
|
Accounts payable and
accrued expenses
|
(3,969)
|
|
(5,121)
|
|
Deferred
revenue
|
1,726
|
|
115
|
|
Other liabilities —
long-term
|
965
|
|
6
|
|
Deferred rent
|
37
|
|
89
|
|
Other assets —
long-term
|
(223)
|
|
(11,408)
|
|
Net cash provided by operating
activities
|
38,755
|
|
2,875
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
Capital expenditures
|
(6,860)
|
|
(9,669)
|
|
Sale of investments
|
2,935
|
|
1,420
|
|
Capitalized software and website
development costs
|
(14,807)
|
|
(13,369)
|
|
Payment for acquisition of
business and intangible assets, net of acquired cash
|
(151,962)
|
|
(3,028)
|
|
Net cash used in investing
activities
|
(170,694)
|
|
(24,646)
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
Financing
activities:
|
|
|
|
|
Principal payments on capital
lease obligations
|
(387)
|
|
(388)
|
|
Proceeds from the exercise of
employee stock options
|
5,177
|
|
1,024
|
|
Proceeds from employee stock
purchase plan
|
509
|
|
556
|
|
Purchase of treasury
stock
|
(446)
|
|
(612)
|
|
Payment for debt issuance
costs
|
(1,909)
|
|
-
|
|
Stock-based compensation
windfall tax benefit
|
2,255
|
|
1,398
|
|
Net cash provided by
financing activities
|
5,199
|
|
1,978
|
|
|
|
|
|
|
Net decrease in cash and cash
equivalents
|
(126,740)
|
|
(19,793)
|
|
Effect of exchange rate changes
on cash and cash equivalents
|
(872)
|
|
108
|
|
Cash and cash equivalents,
beginning of period
|
192,563
|
|
197,509
|
|
Cash and cash equivalents, end
of period
|
$
64,951
|
|
$
177,824
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure:
|
|
|
|
|
Cash paid for:
|
|
|
|
|
Income taxes
|
$
5,125
|
|
$
5,421
|
|
Interest
|
141
|
|
47
|
|
Non-cash investing and financing
activities:
|
|
|
|
|
Consideration issued for
acquisition of eCarList
|
12,956
|
|
-
|
|
Accrued capitalized
hardware, software and fixed assets
|
1,756
|
|
2,697
|
|
Deferred compensation
reversal to equity
|
150
|
|
-
|
|
Capitalized stock-based
compensation
|
98
|
|
46
|
|
Assets acquired under
capital leases
|
34
|
|
289
|
|
|
|
|
|
Attachment (4) Reconciliation
Data
|
|
|
|
|
DEALERTRACK
HOLDINGS, INC.
|
|
Reconciliation of GAAP Net
Income to Non-GAAP Adjusted EBITDA
|
|
(Dollars in
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
GAAP net income
|
$
5,361
|
|
$
1,182
|
|
Interest income
|
(71)
|
|
(132)
|
|
Interest expense
|
334
|
|
36
|
|
Provision for income taxes,
net
|
1,492
|
|
1,515
|
|
Depreciation of property and
equipment and amortization of capitalized software and website
costs
|
5,338
|
|
4,510
|
|
Amortization of acquired
identifiable intangibles
|
7,543
|
|
4,661
|
|
EBITDA (non-GAAP)
|
19,997
|
|
11,772
|
|
Adjustments:
|
|
|
|
|
Contra-revenue
|
1,175
|
|
605
|
|
Integration and other
related costs (including amounts related to stock-based
compensation)
|
51
|
|
-
|
|
Acquisition related
and other professional fees
|
1,390
|
|
478
|
|
Acquisition related
compensation expense
|
428
|
|
-
|
|
Adjusted EBITDA
(non-GAAP)
|
$
23,041
|
|
$
12,855
|
|
|
|
|
|
|
Attachment (4) Reconciliation
Data
|
|
|
|
|
DEALERTRACK
HOLDINGS, INC.
|
|
Reconciliation of GAAP Net
Income (Loss) to Non-GAAP Adjusted EBITDA
|
|
(Dollars in
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
32,255
|
|
$
(1,386)
|
|
Interest income
|
(270)
|
|
(381)
|
|
Interest expense
|
578
|
|
155
|
|
(Benefit from) provision for
income taxes, net
|
(20,128)
|
|
800
|
|
Depreciation of property and
equipment and amortization of capitalized software and website
costs
|
15,509
|
|
12,651
|
|
Amortization of acquired
identifiable intangibles
|
22,111
|
|
14,824
|
|
EBITDA (non-GAAP)
|
50,055
|
|
26,663
|
|
Adjustments:
|
|
|
|
|
Contra-revenue
|
3,232
|
|
801
|
|
Integration and other
related costs (including amounts related to stock-based
compensation)
|
1,009
|
|
-
|
|
Acquisition related
and other professional fees
|
2,606
|
|
715
|
|
Acquisition related
compensation expense
|
503
|
|
-
|
|
Realized gain on
securities
|
(409)
|
|
(582)
|
|
Adjusted EBITDA
(non-GAAP)
|
$
56,996
|
|
$
27,597
|
|
|
|
|
|
|
Attachment (4) Reconciliation
Data
|
|
|
|
|
DEALERTRACK
HOLDINGS, INC.
|
|
Reconciliation of GAAP Net
Income to Non-GAAP Adjusted Net Income
|
|
(Dollars in
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
GAAP net income
|
$
5,361
|
|
$
1,182
|
|
Adjustments:
|
|
|
|
|
Deferred tax asset
valuation allowance (non-taxable)
|
1,197
|
|
-
|
|
Amortization of acquired
identifiable intangibles
|
7,543
|
|
4,661
|
|
Stock-based compensation
(excluding amounts included in integration and other related
costs)
|
2,745
|
|
2,850
|
|
Contra-revenue
|
1,175
|
|
605
|
|
Integration and other
related costs (including amounts related to stock based
compensation)
|
51
|
|
-
|
|
Acquisition related and
other professional fees
|
1,390
|
|
478
|
|
Acquisition related
compensation expense
|
428
|
|
-
|
|
Amended state tax return
impact (non-taxable)
|
(271)
|
|
101
|
|
Tax impact of adjustments
(a)
|
(4,965)
|
|
(3,246)
|
|
Adjusted net income
(non-GAAP)
|
$
14,654
|
|
$
6,631
|
|
|
|
|
|
|
|
|
|
|
|
(a) The tax impact of
adjustments for the three months ended September 30, 2011, are
based on a U.S. statutory tax rate of 37.4% applied to taxable
adjustments other than amortization of acquired identifiable
intangibles and stock-based compensation expense, which are based
on a blended tax rate of 37.3% and 37.0%, respectively. The tax
impact of adjustments for the three months ended September 30,
2010, are based on a U.S. effective tax rate of 38.3% applied to
taxable adjustments other than amortization of acquired
identifiable intangibles and stock-based compensation expense,
which are based on a blended tax rate of 37.4% and 38.1%,
respectively.
|
|
|
|
|
|
|
|
Attachment (4) Reconciliation
Data
|
|
|
|
|
DEALERTRACK
HOLDINGS, INC.
|
|
Reconciliation of GAAP Net
Income (Loss) to Non-GAAP Adjusted Net Income
|
|
(Dollars in
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
32,255
|
|
$
(1,386)
|
|
Adjustments:
|
|
|
|
|
Deferred tax asset
valuation allowance (non-taxable)
|
(22,350)
|
|
-
|
|
Amortization of acquired
identifiable intangibles
|
22,111
|
|
14,824
|
|
Stock-based compensation
(excluding amounts included in integration and other related
costs)
|
8,595
|
|
8,679
|
|
Contra-revenue
|
3,232
|
|
801
|
|
Integration and other
related costs (including amounts related to stock based
compensation)
|
1,009
|
|
-
|
|
Acquisition related and
other professional fees
|
2,606
|
|
715
|
|
Acquisition related
compensation expense (a)
|
503
|
|
-
|
|
Amended state tax return
impact (non-taxable)
|
(239)
|
|
101
|
|
Realized gain on
securities (non-taxable)
|
(409)
|
|
(582)
|
|
Tax impact of adjustments
(b)
|
(14,119)
|
|
(9,449)
|
|
Adjusted net income
(non-GAAP)
|
$
33,194
|
|
$
13,703
|
|
|
|
|
|
|
|
|
|
|
|
(a) $45 thousand of the
acquisition related compensation expense is non-taxable.
|
|
|
(b) The tax impact of
adjustments for the nine months ended September 30, 2011, are based
on a U.S. statutory tax rate of 37.4% applied to taxable
adjustments other than amortization of acquired identifiable
intangibles and stock-based compensation expense, which are based
on a blended tax rate of 37.1% and 37.0%, respectively. The tax
impact of adjustments for the nine months ended September 30, 2010,
are based on a U.S. effective tax rate of 38.3% applied to taxable
adjustments other than amortization of acquired identifiable
intangibles and stock-based compensation expense, which are based
on a blended tax rate of 37.5% and 38.2%, respectively.
|
|
|
|
|
|
|
|
Attachment (4) Reconciliation
Data
|
|
|
|
|
DEALERTRACK
HOLDINGS, INC.
|
|
Reconciliation of
Forward-looking GAAP Net Income to Forward-looking Non-GAAP
Adjusted EBITDA
|
|
(Dollars in
millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Year Ending
December 31, 2011
|
|
|
Expected
Range
|
|
|
|
|
|
|
GAAP net income
|
$
65.0
|
|
$
67.0
|
|
Interest, net
|
0.6
|
|
0.6
|
|
Benefit from income taxes,
net
|
(7.0)
|
|
(5.9)
|
|
Depreciation and
amortization
|
21.0
|
|
20.9
|
|
Amortization of acquired
identifiable intangibles
|
29.6
|
|
29.6
|
|
EBITDA (non-GAAP)
|
109.2
|
|
112.2
|
|
Adjustments:
|
|
|
|
|
Non-recurring costs
(a)
|
6.2
|
|
6.2
|
|
Gain on sale of
subsidiary
|
(47.5)
|
|
(47.5)
|
|
Contra-revenue
|
4.1
|
|
4.1
|
|
Adjusted EBITDA
(non-GAAP)
|
$
72.0
|
|
$
75.0
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes certain
professional fees, integration and other related costs, acquisition
related compensation
|
|
|
expense and gain on sale of
securities.
|
|
|
|
|
|
|
|
Attachment (4) Reconciliation
Data
|
|
|
|
|
DEALERTRACK
HOLDINGS, INC.
|
|
Reconciliation of
Forward-looking GAAP Net Income to Forward-looking Non-GAAP
Adjusted Net Income
|
|
(Dollars in
millions)
|
|
(Unaudited)
|
|
|
Year Ending
December 31, 2011
|
|
|
Expected
Range
|
|
|
|
|
|
|
GAAP net income
|
$
65.0
|
|
$
67.0
|
|
Adjustments:
|
|
|
|
|
Stock-based
compensation
|
11.5
|
|
11.5
|
|
Amortization of acquired
identifiable intangibles
|
29.6
|
|
29.6
|
|
Non-recurring costs
(a)
|
6.2
|
|
6.2
|
|
Gain on sale of
subsidiary, net of tax (b)
|
(28.8)
|
|
(28.8)
|
|
Deferred tax asset
valuation allowance (non-taxable)
|
(28.5)
|
|
(28.5)
|
|
Contra-revenue
|
4.1
|
|
4.1
|
|
Tax impact of adjustments
(c)
|
(19.1)
|
|
(19.1)
|
|
Adjusted net income
(non-GAAP)
|
$
40.0
|
|
$
42.0
|
|
|
|
|
|
|
(a) Includes certain
professional fees, integration and other related costs, acquisition
related compensation
|
|
|
expense and gain on sale of
securities.
|
|
|
(b) Gain on sale of ALG,
Inc. is reflected net of $18.7 million in taxes.
|
|
|
(c) The tax impact of
adjustments are based on a blended tax rate of 37.2% applied to
taxable adjustments.
|
|
|
|
|
|
|
Attachment (5) Summary of
Business Statistics
|
|
|
|
|
|
|
|
|
|
|
DEALERTRACK
HOLDINGS, INC.
|
|
Summary of
Business Statistics (Unaudited)
|
|
Three months
ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep
30,
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Sep
30,
|
|
2011
|
|
2011
|
|
2011
|
|
2010
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Active U.S. dealers
(a)
|
17,629
|
|
17,660
|
|
17,373
|
|
16,829
|
|
16,961
|
|
Active U.S. lenders
(b)
|
1,103
|
|
1,062
|
|
1,010
|
|
970
|
|
921
|
|
Transactions processed (in
thousands) (c)
|
19,772
|
|
19,135
|
|
16,774
|
|
11,997
|
|
13,296
|
|
Active U.S. lender to dealer
relationships (d)
|
150,514
|
|
149,398
|
|
146,660
|
|
137,058
|
|
137,388
|
|
Subscribing dealers
(e)
|
15,860
|
|
14,488
|
|
14,239
|
|
13,996
|
|
13,856
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 U.S. DealerTrack network during the most recently ended
calendar month. The number of active U.S. dealers is based on
the number of dealer accounts as communicated by lenders on the
DealerTrack network.
|
|
(b) We consider a lender
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 Aftermarket, DealerTrack Processing Solutions and
DealerTrack Canada networks at the end of a given period.
|
|
(d) Each lender to dealer
relationship represents a pair between an active U.S. lender and an
active U.S. dealer.
|
|
(e) Represents the number
of dealerships with one or more active subscriptions on the
DealerTrack or DealerTrack Canada networks at the end of a given
period.
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment (5) Summary of
Business Statistics
|
|
|
|
|
|
|
|
|
|
|
DEALERTRACK
HOLDINGS, INC.
|
|
Summary of
Business Statistics (Unaudited)
|
|
Three months
ended
|
|
|
Sep
30,
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Sep
30,
|
|
2011
|
|
2011
|
|
2011
|
|
2010
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction revenue (in
thousands)
|
$50,411
|
|
$48,505
|
|
$38,435
|
|
$25,091
|
|
$27,188
|
|
Subscription revenue (in
thousands)
|
$39,261
|
|
$34,716
|
|
$33,865
|
|
$32,205
|
|
$31,273
|
|
Other revenue (in
thousands)
|
$6,121
|
|
$5,830
|
|
$4,891
|
|
$4,710
|
|
$4,667
|
|
Average transaction price
(a)
|
$2.60
|
|
$2.58
|
|
$2.35
|
|
$2.16
|
|
$2.09
|
|
Average monthly subscription
revenue per subscribing dealership (b)
|
$834
|
|
$807
|
|
$798
|
|
$769
|
|
$759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Represents the average
revenue earned per transaction processed in the DealerTrack,
DealerTrack Aftermarket, DealerTrack Processing Solutions and
DealerTrack Canada networks during a given period. Revenue
used in calculation adds back transaction related
contra-revenue.
|
|
(b) Revenue used in the
calculation adds back subscription related
contra-revenue.
|
|
|
|
|
|
|
|
|
|
|
|
TRAK-E
SOURCE DealerTrack Holdings, Inc.