Dealertrack Technologies, Inc. (NASDAQ: TRAK) today reported
financial results for the third quarter ended September 30, 2012.
The Company changed its name from DealerTrack Holdings, Inc. on
November 7, 2012.
GAAP Results for the Third Quarter 2012
- Revenue for the quarter was $99.1
million, as compared to $95.8 million for the third quarter of
2011.
- GAAP net loss for the quarter was
$(2.9) million, as compared to GAAP net income of $5.4 million for
the third quarter of 2011.
- Diluted GAAP net loss per share for the
quarter was $(0.07), as compared to GAAP net income per share of
$0.13 for the third quarter of 2011.
GAAP net loss for the three months ended September 30, 2012
includes a $3.3 million, or $0.08 per share, non-cash charge (net
of taxes) from an adjustment to fair value relating to a
warrant.
Non-GAAP Results for the Third Quarter 2012
- Adjusted EBITDA for the quarter was
$27.0 million, as compared to $25.8 million for the third quarter
of 2011.
- Adjusted net income for the quarter was
$12.5 million, as compared to $14.7 million for the third quarter
of 2011.
- Diluted adjusted net income per share
for the quarter was $0.28, as compared to $0.34 for the third
quarter of 2011. As a result of updating the Company's full year
expected effective tax rate, a tax benefit that was realized in the
prior quarter was reversed in the third quarter, negatively
impacting diluted adjusted net income per share by $0.02. Adjusted
net income per share for the third quarter would have been $0.30
without the impact of this reversal.
GAAP Results for the Nine Months Ended September 30,
2012
- Revenue for the nine months was $287.1
million, as compared to $262.0 million for the same period in
2011.
- GAAP net income for the nine months was
$20.0 million, as compared to $32.3 million for the same period in
2011.
- Diluted GAAP net income per share for
the nine months was $0.45, as compared to $0.76 for the same period
in 2011.
GAAP net income for the nine months ended September 30, 2012
includes a $15.9 million, or $0.36 per share, gain (net of taxes)
for the contribution of the net assets of Chrome to the Chrome Data
Solutions joint venture; a $3.4 million, or $0.08 per share, gain
(net of taxes) from the sale of certain Chrome branded assets that
were not contributed to our Chrome Data joint venture; and a $3.9
million, or $0.09 per share, non-cash charge (net of taxes) from an
adjustment to fair value relating to a warrant. GAAP net income for
the nine months ended September 30, 2011 was 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,
2012
- Adjusted EBITDA for the nine months was
$71.5 million, as compared to $65.6 million for the same period in
2011.
- Adjusted net income for the nine months
was $35.4 million, as compared to $33.2 million for the same period
in 2011.
- Diluted adjusted net income per share
for the nine months was $0.81, as compared to $0.78 for the same
period in 2011.
Mark F. O’Neil, chairman and chief executive officer of
Dealertrack Technologies, Inc., commented, “Our healthy third
quarter performance allows us to remain squarely on track to
achieve our full-year revenue expectations and our adjusted EBITDA
margin target of approximately 25%, with revenue from recent
acquisitions further contributing to our results. In addition to
organic growth in our transaction and subscription businesses in
the quarter, we are excited to further broaden our market
opportunity with the addition of ClickMotive to our digital
retailing suite. ClickMotive significantly strengthens
Dealertrack’s existing eCarList digital retailing capabilities with
an expanded website and digital marketing platform. Importantly, it
gives Dealertrack access to a part of dealership advertising
budgets, in addition to their technology budgets. We believe
investments we are making to both broaden and deepen our product
portfolio are improving our market leadership and position us for
long-term growth.”
Updated Guidance for 2012
Dealertrack updated its 2012 annual guidance based on its third
quarter results and for the acquisitions of ClickMotive and the
assets of Ford Motor Company of Canada Limited’s iCONNECT Direct
DMS business as follows:
Expected GAAP Results
- Revenue for the year is expected to be
between $387.0 million and $390.0 million, an increase from prior
guidance of between $381.0 million and $385.0 million.
- GAAP net income for the year is
expected to be between $21.5 million and $23.0 million, a decrease
from prior guidance of between $24.5 million and $26.5
million.
- Diluted GAAP net income per share for
the year is expected to be between $0.49 and $0.52, a decrease from
prior guidance of between $0.55 and $0.60 per share.
Expected Non-GAAP Results
- Adjusted EBITDA for the year is
expected to be between $96.5 million and $98.0 million, an increase
from prior guidance of between $96.0 million and $98.0
million.
- Adjusted net income for the year is
expected to be between $48.0 million and $49.5 million, an increase
from prior guidance of between $47.5 million and $49.5
million.
- Diluted adjusted net income per share
for the year is expected to be between $1.08 and $1.12, an increase
from prior guidance of between $1.07 and $1.12.
The updated guidance assumes car sales will be generally
consistent with what we have seen during the first nine months of
2012, with new car sales by franchised dealers of approximately
14.3 million units and used car sales by franchised dealers of
approximately 14.5 million units for 2012, an increase from our
previous assumptions of 14.2 million units and 14.0 million units,
respectively. Diluted GAAP net income and adjusted net income per
share guidance for the year continue to be based on an estimated
44.3 million diluted weighted average shares outstanding. The
updated guidance assumes an effective tax rate of 39% for the full
year, a decrease from prior guidance of 39.5% at the mid-point.
Conference Call
Dealertrack will host a conference call to discuss its third
quarter 2012 results and other matters on November 8, 2012 at 5:00
p.m. Eastern Time. The conference call will be webcast live on the
Internet at ir.dealertrack.com. 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
Technologies, Inc. website until November 30, 2012.
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,
stock-based compensation, and contra-revenue and may exclude
certain items such as: impairment charges, restructuring charges,
impact of acquisition-related activity (including contingent
consideration changes, compensation expense, basis difference
amortization, and professional service fees), realized gains on
sales of previously impaired securities, gains or losses on sales
or disposals of subsidiaries and other assets, and certain
other non-recurring items.
All stock-based compensation expense is excluded from the
calculation of the adjusted EBITDA non-GAAP measure. This may
reduce the comparability with prior periods. This non-cash expense
was included in presentations prior to fourth quarter 2011.
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, and contra-revenue, and may also exclude certain items
such as: impairment charges, restructuring charges, impact of
acquisition-related activity (including contingent consideration
changes, compensation expense, basis difference amortization, and
professional service fees), realized gains on sales of previously
impaired securities, gains or losses on sales or disposals of
subsidiaries and other assets, adjustments to deferred tax asset
valuation allowances, non-cash interest expense and certain other
non-recurring items. These adjustments to net income (loss), which
are shown before taxes, are adjusted for their tax impact.
Adjusted EBITDA and adjusted net income are presented because
management believes that they provide additional information with
respect to the performance of our fundamental business activities
and are also frequently used by securities analysts, investors and
other interested parties in the evaluation of comparable companies.
Adjusted EBITDA and adjusted net income are also presented 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, in
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 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 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 this press release.
About Dealertrack Technologies
(www.dealertrack.com)
Dealertrack's intuitive and high-value web-based software
solutions and services enhance efficiency and profitability for all
major segments of the automotive retail industry, including
dealers, lenders, OEMs, third-party retailers, agents, and
aftermarket providers. In addition to the industry’s largest online
credit application network, connecting more than 19,000 dealers
with more than 1,200 lenders, Dealertrack delivers the industry’s
most comprehensive solution set for automotive retailers, including
Dealer Management System (DMS), Inventory, Sales and F&I,
Interactive, and Registration and Titling solutions. For more
information visit www.dealertrack.com.
Safe Harbor for Forward-Looking and Cautionary
Statements
Statements in this press release regarding Dealertrack’s
expected 2012 performance based on both GAAP and non-GAAP measures,
the long-term outlook for its business, the benefits of the
ClickMotive acquisition 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.
DEALERTRACK TECHNOLOGIES, INC. Consolidated
Statements of Operations (In thousands, except per share
amounts) (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30, 2012
2011 2012
2011 Net revenue $ 99,084 $ 95,793
$ 287,097 $ 262,035 Cost of revenue 55,475
52,129 162,337 145,121 Product development 2,874 3,278 8,812 9,749
Selling, general and administrative 35,307
33,342 103,502 95,317 Total
operating expenses 93,656 88,749
274,651 250,187 Income from operations 5,428
7,044 12,446 11,848 Interest expense, net (3,033 ) (263 ) (6,984 )
(308 ) Other income (expense), net (5,271 ) 72 (6,121 ) 171 Gain on
disposal of subsidiary and sale of other assets - - 33,193 -
Earnings from equity method investment, net 429 - 737 - Realized
gain on securities 4 - 4
409 Income (loss) before (provision for) benefit from
income taxes, net (2,443 ) 6,853 33,275 12,120 (Provision for)
benefit from income taxes, net (488 ) (1,492 )
(13,320 ) 20,135 Net (loss) income $ (2,931 ) $ 5,361
$ 19,955 $ 32,255 Basic net (loss)
income per share $ (0.07 ) $ 0.13 $ 0.47 $ 0.78 Diluted net (loss)
income per share $ (0.07 ) $ 0.13 $ 0.45 $ 0.76 Weighted average
common stock outstanding (basic) 42,661 41,396 42,413 41,146
Weighted average common stock outstanding (diluted) 42,661 42,497
43,909 42,367 Adjusted EBITDA - previous presentation
(non-GAAP) (a) $ 23,554 $ 23,041 $ 61,298 $ 56,989 Adjusted EBITDA
margin - previous presentation (non-GAAP) (b) 24 % 24 % 21 % 22 %
Adjusted EBITDA (non-GAAP) (a) $ 27,044 $ 25,786 $ 71,500 $ 65,584
Adjusted EBITDA margin (non-GAAP) (b) 27 % 27 % 25 % 25 % Adjusted
net income (non-GAAP) (a) $ 12,455 $ 14,654 $ 35,396 $ 33,194
Diluted adjusted net income per share (non-GAAP) $ 0.28 $ 0.34 $
0.81 $ 0.78 Stock-based compensation expense was classified
as follows: Cost of revenue $ 603 $ 456 $ 1,828 $ 1,308 Product
development 169 176 589 548 Selling, general and administrative
2,718 2,113 7,785
6,857 $ 3,490 $ 2,745 $ 10,202 $ 8,713
(a) See Reconciliation Data.(b) Represents adjusted EBITDA as a
percentage of net revenue.(c) For the three months ended September
30, 2012, the diluted adjusted net income per share of
approximately $0.28 is based on 44,081,500 diluted weighted average
shares outstanding.
DEALERTRACK TECHNOLOGIES, INC. Condensed
Consolidated Balance Sheets (Dollars in thousands)
(Unaudited)
September 30,2012
December 31,2011
ASSETS Cash and cash equivalents $ 163,700 $ 78,709
Marketable securities 45,413 46 Customer funds 3,861 1,097 Customer
funds receivable 20,822 18,695 Accounts receivable, net 46,772
37,588 Deferred tax assets 9,019 9,171 Prepaid expenses and other
current assets 24,488 23,011 Total current assets
314,075 168,317 Marketable securities - long-term 8,192 -
Property and equipment, net 22,702 21,637 Software and website
development costs, net 40,348 37,341 Investments 124,179 89,000
Intangible assets, net 99,289 96,441 Goodwill 242,082 200,840
Deferred tax assets, net 31,654 34,421 Other assets - long-term
14,308 12,356 Total assets $ 896,829 $ 660,353
LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued
expenses $ 36,781 $ 41,194 Customer funds payable 24,683 19,792
Deferred revenue 10,103 9,115 Deferred tax liabilities 3,473 3,443
Due to acquirees 10,966 - Capital leases payable 122
255 Total current liabilities 86,128 73,799 Long-term liabilities
246,162 91,798 Total liabilities 332,290
165,597 Total stockholders' equity 564,539
494,756 Total liabilities and stockholders' equity $ 896,829 $
660,353
DEALERTRACK TECHNOLOGIES, INC.
Consolidated Statements of Cash Flows (Dollars in
thousands) (Unaudited)
Nine Months Ended September 30, 2012
2011 Operating activities: Net
income $ 19,955 $ 32,255 Adjustments to reconcile net income to net
cash provided by operating activities: Depreciation and
amortization 37,659 37,620 Deferred tax provision (benefit) 9,261
(22,813 ) Stock-based compensation expense 10,202 8,713 Provision
for doubtful accounts and sales credits 5,520 4,828 Earnings from
equity method investment, net (737 ) - Deferred compensation 112
150 Stock-based compensation windfall tax benefit (4,226 ) (2,255 )
Gain on disposal of subsidiary and sale of other assets (33,193 ) -
Realized gain on securities (4 ) (409 ) Amortization of debt
issuance costs and debt discount 5,244 213 Change in contingent
consideration (900 ) - Change in fair value of warrant 6,310 -
Amortization of deferred interest 574 15 Changes in operating
assets and liabilities, net of effects of acquisitions: Accounts
receivable (17,312 ) (16,449 ) Prepaid expenses and other current
assets 2,848 (1,649 ) Other assets — long-term 6,796 (223 )
Accounts payable and accrued expenses (5,186 ) (3,969 ) Deferred
rent 151 37 Deferred revenue 1,912 1,726 Other liabilities —
long-term (2,190 ) 965 Net cash provided by
operating activities 42,796 38,755
Consolidated
Statements of Cash Flows (continued)
Nine Months Ended September 30, 2012
2011 Investing
activities: Capital expenditures (6,610 ) (6,860 ) Capitalized
software and website development costs (14,824 ) (14,807 ) Proceeds
from sale of Chrome-branded asset 5,500 - Purchases of marketable
securities (70,175 ) - Proceeds from sales and maturities of
marketable securities 16,106 2,935 Cash contributed for equity
method investment (1,750 ) - Payment for acquisition of businesses
and intangible assets, net of acquired cash (73,994 )
(151,962 ) Net cash used in investing activities (145,747 )
(170,694 )
Financing activities: Principal payments
on capital lease obligations and financing arrangements (496 ) (387
) Proceeds from the exercise of employee stock options 5,500 5,177
Proceeds from employee stock purchase plan 592 509 Proceeds from
issuance of senior convertible notes 200,000 - Payments for debt
issuance costs (7,723 ) (1,909 ) Payments for convertible note
hedges (43,940 ) - Proceeds from issuance of warrants 29,740 -
Purchases of treasury stock (784 ) (446 ) Stock-based compensation
windfall tax benefit 4,226 2,255
Net cash provided by financing
activities
187,115 5,199 Net increase (decrease) in cash and cash
equivalents 84,164 (126,740 ) Effect of exchange rate changes on
cash and cash equivalents 827 (872 ) Cash and cash equivalents,
beginning of period 78,709 192,563 Cash
and cash equivalents, end of period $ 163,700 $ 64,951
Supplemental disclosure: Cash paid for:
Income taxes $ 2,708 $ 5,125 Interest 1,965 141 Non-cash investing
and financing activities: Non-cash consideration issued for
investment in Chrome Data Solutions 42,301 - Non-cash consideration
issued for acquisition of eCarList - 12,956 Accrued capitalized
hardware, software and fixed assets 2,603 1,756 Assets acquired
under capital leases and financing arrangements 772 34 Capitalized
stock-based compensation - 98 Deferred compensation reversal to
equity 112 150
DEALERTRACK TECHNOLOGIES, INC.
Reconciliation of GAAP Net Income to Non-GAAP Adjusted
EBITDA (Dollars in thousands) (Unaudited)
Three Months Ended
Nine Months Ended September 30, September 30,
2012 2011
2012 2011 GAAP net (loss)
income $ (2,931 ) $ 5,361 $ 19,955 $ 32,255 Interest income (181 )
(71 ) (595 ) (270 ) Interest expense - cash 984 334 2,426 578
Interest expense - non-cash 2,230 - 5,153 - Provision for (benefit
from) income taxes, net 488 1,492 13,320 (20,135 ) Depreciation of
property and equipment and amortization of capitalized software and
website costs 5,780 5,338 17,175 15,509 Amortization of acquired
identifiable intangibles 6,952 7,543
20,484 22,111 EBITDA (non-GAAP) 13,322
19,997 77,918 50,048 Adjustments: Gain on disposal of subsidiary
and sale of other assets - - (33,193 ) - Acquisition-related and
other professional fees 1,385 1,390 2,122 2,606 Contra-revenue
1,092 1,175 3,190 3,232 Integration and other related costs
(including amounts related to stock-based compensation) 483 51 704
1,009 Acquisition-related contingent consideration changes and
compensation expense, net 445 428 403 503 Amortization of equity
method investment basis difference 996 - 2,989 - Rebranding expense
521 - 855 - Change in fair value of warrant 5,310 - 6,310 -
Realized gain on securities - -
- (409 ) Adjusted EBITDA - previous presentation
(non-GAAP) $ 23,554 $ 23,041 $ 61,298 $ 56,989 Stock-based
compensation (excluding amounts included in integration and other
related costs) 3,490 2,745
10,202 8,595 Adjusted EBITDA (non-GAAP) $
27,044 $ 25,786 $ 71,500 $ 65,584
DEALERTRACK TECHNOLOGIES, INC.
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net
Income (Dollars in thousands) (Unaudited)
Three Months Ended
Nine Months Ended September 30, September 30,
2012 2011
2012 2011 GAAP net (loss)
income $ (2,931 ) $ 5,361 $ 19,955 $ 32,255 Adjustments: Deferred
tax asset valuation allowance (non-taxable) - 1,197 - (22,350 )
Amortization of acquired identifiable intangibles 6,952 7,543
20,484 22,111 Stock-based compensation (excluding integration and
other related costs) 3,490 2,745 10,202 8,595 Gain on disposal of
subsidiary and sale of other assets - - (33,193 ) - Contra-revenue
1,092 1,175 3,190 3,232 Integration and other related costs
(including amounts related to stock-based compensation) 536 51 757
1,009 Interest expense - non-cash (not tax-impacted) 2,230 - 5,153
- Amortization of equity method investment basis difference 996 -
2,989 - Acquisition-related and other professional fees 1,385 1,390
2,122 2,606 Acquisition-related contingent consideration changes
and compensation expense, net 445 428 403 503 Rebranding expense
521 - 855 - Realized gain on securities (non-taxable) - - - (409 )
Accelerated depreciation of certain technology assets 75 - 1,004 -
Change in fair value of warrant 5,310 - 6,310 - Amended state tax
return impact (non-taxable) - (271 ) - (239 ) Tax impact of
adjustments (a) (7,646 ) (4,965 ) (4,835 )
(14,119 ) Adjusted net income (non-GAAP) $ 12,455 $
14,654 $ 35,396 $ 33,194
(a) The tax impact of adjustments for the three and nine months
ended September 30, 2012 are based on a U.S. statutory tax rate of
38.2% 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 38.1% and 37.6%,
respectively, for the three months ended September 30, 2012, and
38.1% and 37.6%, respectively, for the nine months ended September
30, 2012. The tax impact of adjustments for the three and nine
months ended September 30, 2011 were 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, for the three months ended September
30, 2011, and 37.1% and 37.0%, respectively, for the nine months
ended September 30, 2011.
DEALERTRACK TECHNOLOGIES, INC.
Reconciliation of Forward-looking GAAP Net Income to
Forward-looking Non-GAAP Adjusted EBITDA (Dollars in
millions) (Unaudited)
Year Ending December 31, 2012 Expected Range
GAAP net income $ 21.5 $ 23.0 Interest, net 10.3 10.3 Income taxes,
net 13.5 14.5 Amortization of basis difference from joint venture
4.0 4.0 Depreciation and amortization 23.7 22.7 Amortization of
acquired identifiable intangibles 28.2 28.2
EBITDA (non-GAAP) 101.2 102.7 Adjustments: Non-recurring
costs (a) 11.0 11.0 Realized gains (33.2 ) (33.2 ) Contra-revenue
4.0 4.0 Adjusted EBITDA - previous
presentation (non-GAAP) $ 83.0 $ 84.5 Stock-based compensation
(excluding amounts included in integration and other related costs)
13.5 13.5 Adjusted EBITDA - (non-GAAP)
$ 96.5 $ 98.0
(a) Includes certain professional fees, integration and other
related costs, acquisition-related compensation expense, rebranding
and fair value adjustments.
DEALERTRACK TECHNOLOGIES, INC.
Reconciliation of Forward-looking GAAP Net Income to
Forward-looking Non-GAAP Adjusted Net Income (Dollars in
millions) (Unaudited)
Year Ending December 31, 2012 Expected Range
GAAP net income $ 21.5 $ 23.0 Adjustments: Stock-based compensation
13.5 13.5 Amortization of acquired identifiable intangibles 28.2
28.2 Amortization of basis difference from joint venture 4.0 4.0
Non-cash interest expense (not tax-impacted) 7.5 7.5 Non-recurring
costs (a) 12.0 12.0 Realized gains, net of taxes (19.3 ) (19.3 )
Contra-revenue 4.0 4.0 Tax impact of adjustments (b) (23.4 )
(23.4 ) Adjusted net income (non-GAAP) $ 48.0 $ 49.5
(a) Includes certain professional fees, integration and other
related costs, acquisition-related compensation expense,
rebranding, accelerated depreciation and fair value adjustments.(b)
The tax impact of adjustments are based on a blended tax rate of
38% applied to taxable adjustments.
DEALERTRACK TECHNOLOGIES, INC. Summary of
Business Statistics (Unaudited) Three months ended
Sep 30,
Jun 30, Mar 31, Dec 31, Sep 30,
2012 2012 2012 2011 2011
Active U.S. dealers (a) 19,107 18,638 18,345 17,543 17,629 Active
U.S. lenders (b) 1,237 1,212 1,165 1,120 1,103 Transactions
processed (in thousands) (c) 22,738 22,562 21,751 18,769 19,772
Active U.S. lender to dealer relationships (d) 178,809 177,570
172,075 164,776 161,400 Subscribing dealers (e) 16,421 16,280
16,143 16,003 15,860
(a) We consider a dealer to be active in our U.S. network 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 U.S. Dealertrack
network.(b) We consider a lender to be active in our U.S. network
as of a date if it is accepting credit application data
electronically from U.S. dealers in the U.S. Dealertrack
network.(c) Represents revenue-generating transactions processed in
the U.S. Dealertrack, Dealertrack Aftermarket Services, 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 at the
end of a given period. 2011 results are recalculated to reflect an
improved methodology of accumulating relationships. As previously
reported: December 31, 2011 - 151,126, September 30, 2011 -
150,514.(e) Represents the number of dealerships in the U.S. and
Canada with one or more active subscriptions at the end of a given
period.
DEALERTRACK TECHNOLOGIES, INC. Summary of
Business Statistics (Unaudited) Three months ended
Sep 30, Jun 30,
Mar 31, Dec 31, Sep 30,
2012 2012 2012
2011 2011 Transaction revenue (in
thousands) $ 58,729 $ 57,433 $ 54,079 $ 47,541 $ 50,411
Subscription revenue (in thousands) $ 35,723 $ 33,932 $ 33,231 $
38,779 $ 39,261 Other revenue (in thousands) $ 4,632 $ 5,031 $
4,307 $ 4,939 $ 6,121 Average transaction price (a) $ 2.63 $ 2.59 $
2.53 $ 2.58 $ 2.60 Transaction revenue per car sold (b) $ 6.47 $
6.12 $ 8.61 $ 7.17 $ 6.20 Average monthly subscription revenue per
subscribing dealership (c) (d) $ 694 $ 697 $ 690 $ 813 $ 834
Average monthly subscription revenue per subscribing dealership
(excluding Chrome & ALG) (e) $ 694 $ 697 $ 690 $ 690 $ 684
(a) Represents the average revenue earned per transaction
processed in the U.S. 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) Represents transaction
revenue (includes contra-revenue) divided by our estimate of total
new and used car sales for the period in the U.S. and Canada.(c)
Revenue used in the calculation adds back subscription related
contra-revenue.(d) Subscribing dealers and subscription revenue
from Dealertrack CentralDispatch have been excluded from the
calculation as a majority of these customers are not dealers.(e)
Excludes subscription revenue from Chrome and ALG.
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