Achieved High-End of Guidance
Continued Growth in ARPD, Dealer Customers and
Revenue
CHICAGO, Aug. 3, 2022
/PRNewswire/ -- Cars.com Inc. (NYSE: CARS) ("CARS" or the
"Company"), the leading digital automotive platform that provides a
robust set of digital solutions, today released its financial
results for the second quarter ended June
30, 2022.
Q2 2022 Financial and Key Metric Highlights
- Revenue of $162.9 million, up
$7.3 million, or 5%
year-over-year
- Net income of $5.5 million, or
$0.08 per diluted share, compared to
Net income of $6.0 million, or
$0.08 per diluted share, in the prior
year
- Adjusted EBITDA of $45.3 million,
or 28% of revenue, down $3.2 million,
year-over-year
- Average Monthly Unique Visitors ("UVs") of 27.1 million, up 3%
year-over-year
- Traffic ("Visits") of 148.0 million, down 7%
year-over-year
- Monthly Average Revenue Per Dealer ("ARPD") of $2,326, up 1% from $2,299 in the prior year period
- Dealer Customers[1] of 19,517 as of
June 30, 2022, 17 higher compared to
19,500 as of March 31, 2022, and up
672, or 4%, compared to June 30,
2021
Operational Highlights
- Dealer Inspire was named by Subaru as a Certified Website and
Technology Platform Provider for its 570+ U.S. retailers, helping
them increase sales and efficiency through a platform of
industry-leading technology solutions
- Accu-Trade continues to gain momentum as dealers adopt digital
vehicle appraisal and acquisition solutions
- Instant Offer is now available on Cars.com, connecting shoppers
with the Company's nearly 20,000 dealers, enabling consumers to
sell their cars quickly and efficiently
- The Company continued to bolster its editorial content with the
annual publication of its 2022 American Made Index, which showcases
the most American-made vehicles, that announced Tesla as the winner
for the second year in a row, driving more than 500 media
stories
"Momentum continued into the second quarter, as we delivered
revenue and ARPD growth and robust sequential margin expansion. Our
newest integrations are enabling consumers and dealers to connect
and facilitate faster sales leveraging technology to speed
transactions," said Alex Vetter,
Chief Executive Officer of CARS. "We are well-positioned to further
our growth in the second half of 2022 and beyond, reflective of our
reliable marketplace platform, dealer friendly solutions and the
growing opportunity from our recent acquisitions that further
expand our end-to-end capabilities."
Q2 2022 Results
Revenue for the second quarter totaled $162.9 million, an increase of $7.3 million, or 5%, compared to the prior year
period. Dealer revenue grew 5% year-over-year, driven by 4% growth
in Dealer Customers and 1% growth in ARPD, primarily related to
continued penetration of the Company's digital solutions. As
anticipated, solid growth in Dealer and Other revenue was offset by
a 13% year-over-year decrease in OEM and national revenue,
reflecting delayed production by OEMs and lower advertising
investments.
Total operating expenses for the second quarter were
$147.5 million, compared to
$139.9 million for the prior year
period. Adjusted Operating Expenses for the quarter were
$138.9 million, a $6.5 million increase compared to the prior year
period driven by increased Product and technology expenses,
primarily due to higher compensation and consulting costs related
to the Accu-Trade and CreditIQ acquisitions, and increased
Marketing and sales investments to help drive traffic generation,
partially offset by a decrease in Depreciation and
amortization.
Net income for the quarter was $5.5
million, or $0.08 per diluted
share, compared to Net income of $6.0
million, or $0.08 per diluted
share, in the second quarter of 2021.
Adjusted EBITDA for the quarter totaled $45.3 million, or 28% of revenue, compared to
$48.5 million, or 31% of revenue, for
the prior year period.
For the quarter, we delivered 3% growth in Average Monthly
Unique Visitors, compared to the prior year, while total Traffic
was 7% lower compared to the second quarter of 2021. The decline in
Traffic was primarily due to elevated traffic in the prior year
period related to an increase in consumer confidence and heightened
consumer demand from the federal economic stimulus program that ran
during the prior year period.
As of June 30, 2022, Dealer
Customers totaled 19,517, an increase of 672, or 4%,
year-over-year, driven by sustained strong retention rates and new
sales to Dealer Customers. Compared to the first quarter of
2022, Dealer Customers increased by 17, due to growth in
traditional dealers and the inclusion of 180 Accu-Trade only
dealers and cancellations related to a single digital dealer.
Excluding these two items, Dealer Customers would have still grown
during the quarter.
Second quarter ARPD was $2,326, up
1% year-over-year, driven by continued growth in digital
solutions.
Cash Flow and Balance Sheet
Net cash provided by operating activities for the six-month
period ended June 30, 2022 was
$42.3 million, compared to
$79.6 million in the prior year. Free
Cash Flow in the first six months totaled $33.7 million compared to $66.5 million in the prior year. This decline was
primarily due to a $9.1 million
income tax refund received in the first quarter of 2021 related to
the carryback of NOLs, as well as, the impact of unfavorable
changes in working capital in the current year driven by the timing
of vendor payments, in that the current year period reflected an
additional cycle of vendor payments.
The Company made $5.0 million in
debt payments during the first six months of 2022, thereby reducing
total debt outstanding to $517.5
million as of June 30, 2022.
Total net leverage at quarter end was 2.8x, compared to 2.4x as of
June 30, 2021. Total liquidity was
$203.1 million, including cash and
cash equivalents of $18.1 million and
$185.0 million revolver capacity, as
of June 30, 2022.
The Company repurchased 1.7 million of its common shares for
$18.3 million during the second
quarter of 2022 and 2.1 million shares for $23.3 million during the six months ended
June 30, 2022.
"We delivered another quarter of robust performance. The
strength of our cash flow and balance sheet provided us the
financial flexibility to return $23.3
million to shareholders through share repurchases during the
first half of the year, and enables us to maintain modest leverage
while investing in both organic and inorganic growth drivers," said
Jandy Tomy, Interim Chief Financial
Officer of CARS.
2022 Outlook
For the third quarter of 2022, the Company expects to deliver
Revenue of approximately $163.5
million to $165.5 million,
representing year-over-year and sequential growth. Guidance
reflects strong first half 2022 performance balanced against the
continuation of the impact of the macro-economic environment,
including the industry-wide inventory shortages, rising inflation
and interest rates.
Adjusted EBITDA margin for the third quarter is expected to
be between 29% and 31%, reflecting sequential margin expansion and
diligent expense management with a continued focus on investing in
the integration and launch of our recently acquired dealer
solutions, marketing and our people.
The Company expects revenue growth to accelerate and projects
growth of 6% to 8% year-over-year in the second half of 2022,
assuming inventory shortages do not begin to recover until 2023.
This reflects a continued acceleration of revenue growth driven by
the Company's execution of its solutions strategy.
Q2 2022 Earnings Call
As previously announced, management will hold a conference call
and webcast today at 8:00 a.m. CT.
This webcast may be accessed at investor.cars.com. A replay of the
webcast will be available at this website following the
conclusion of the call until August 17,
2022.
About CARS
CARS is the leading automotive marketplace platform that
provides a robust set of digital solutions to connect car shoppers
with sellers. Launched in 1998 with the flagship marketplace
Cars.com and headquartered in Chicago, the Company empowers shoppers with
the data, resources and digital tools needed to make informed
buying decisions and seamlessly connect with automotive retailers
and OEMs. In a rapidly changing market, CARS enables dealerships
and OEMs with innovative technical solutions and data-driven
intelligence to better reach and influence ready-to-buy shoppers,
increase inventory turn and gain market share.
In addition to Cars.com, CARS brands include Dealer Inspire, a
technology provider building solutions that future-proof
dealerships with more efficient operations and connected digital
experiences; FUEL, which gives dealers and OEMs the opportunity to
harness the untapped power of digital video by leveraging
Cars.com's pure audience of in-market car shoppers, DealerRater, a
leading car dealer review and reputation management platform,
automotive fintech platform CreditIQ, and Accu-Trade, a leading
provider of vehicle acquisition technology and valuation data.
The full suite of CARS properties includes Cars.com™, Dealer
Inspire®, FUEL™, DealerRater®, CreditIQ™, Accu-Trade™, Auto.com™,
PickupTrucks.com™ and NewCars.com®. For more information,
visit www.Cars.com.
Non-GAAP Financial Measures
This earnings release discusses Adjusted EBITDA, Adjusted EBITDA
margin, Free Cash Flow and Adjusted Operating Expenses. These
financial measures are not prepared in accordance with generally
accepted accounting principles in the
United States ("GAAP"). These financial measures are
presented as supplemental measures of operating performance because
the Company believes they provide meaningful information regarding
the Company's performance and provide a basis to compare operating
results between periods. In addition, the Company uses Adjusted
EBITDA as a measure for determining incentive compensation targets.
Adjusted EBITDA also is used as a performance measure under the
Company's credit agreement and includes adjustments such as the
items defined below and other further adjustments, which are
defined in the credit agreement. These non-GAAP financial measures
are frequently used by the Company's lenders, securities analysts,
investors and other interested parties to evaluate companies in the
Company's industry. For a reconciliation of the non-GAAP measures
presented in this earnings release to their most directly
comparable financial measure prepared in accordance with GAAP, see
"Non-GAAP Reconciliations" below.
Other companies may define or calculate these measures
differently, limiting their usefulness as comparative measures.
Because of these limitations, non-GAAP financial measures should
not be considered in isolation or as substitutes for performance
measures calculated in accordance with GAAP. Definitions of these
non-GAAP financial measures and reconciliations to the most
directly comparable GAAP financial measures are presented in the
tables below.
The Company defines Adjusted EBITDA as net income (loss) before
(1) interest expense, net, (2) income tax (benefit) expense, (3)
depreciation, (4) amortization of intangible assets, (5)
stock-based compensation expense, (6) unrealized mark-to-market
adjustments and cash transactions related to derivative
instruments, and (7) certain other items, such as
transaction-related items, severance, transformation and other exit
costs and write-off and impairments of goodwill, intangible assets
and other long-lived assets.
Transaction-related items result from actual or potential
transactions such as business combinations, mergers, acquisitions,
dispositions, spin-offs, financing transactions, and other
strategic transactions, including, without limitation, (1)
transaction-related bonuses and (2) expenses for advisors and
representatives such as investment bankers, consultants, attorneys
and accounting firms. Transaction-related items may also include,
without limitation, transition and integration costs such as
retention bonuses and acquisition-related milestone payments to
acquired employees, consulting, compensation and other incremental
costs associated with integration projects, and amortization of
deferred revenue related to the Accu-Trade acquisition.
The Company defines Free Cash Flow as net cash provided by
operating activities less capital expenditures, including purchases
of property and equipment and capitalization of internal-use
software and website development costs.
The Company defines Adjusted Operating Expenses as total
operating expenses adjusted to exclude stock-based compensation,
write-off and impairments of goodwill, intangible assets,
long-lived assets, severance, transformation and other exit costs
and transaction-related items.
Key Metric Definitions
Traffic ("Visits"). Traffic is fundamental to the
Company's business. Traffic to the CARS network of websites and
mobile apps provides value to the Company's advertisers in terms of
audience, awareness, consideration and conversion. In addition to
tracking traffic volume and sources, the Company monitors activity
on its properties, allowing the Company to innovate and refine its
consumer-facing offerings. Traffic is defined as the number of
visits to CARS desktop and mobile properties (responsive sites and
mobile apps), measured using Adobe Analytics. Traffic does not
include traffic to Dealer Inspire websites. Traffic provides an
indication of the Company's consumer reach. Although the Company's
consumer reach does not directly result in revenue, the Company
believes its ability to reach in-market car shoppers is attractive
to its dealer customers and national advertisers.
Average Monthly Unique Visitors ("UVs"). Growth in unique
visitors and consumer traffic to the Company's network of websites
and mobile apps increases the number of impressions, clicks, leads
and other events it can monetize to generate revenue. The Company
defines UVs in a given month as the number of distinct visitors
that engage with its platform during that month. Visitors are
identified when a user first visits an individual CARS property on
an individual device/browser combination or installs one of its
mobile apps on an individual device. If a visitor accesses more
than one of the Company's web properties or apps or uses more than
one device or browser, each of those unique
property/browser/app/device combinations counts toward the number
of UVs. UVs do not include Dealer Inspire UVs. The Company measures
UVs using Adobe Analytics.
Average Revenue Per Dealer ("ARPD"). The Company believes
that its ability to grow ARPD is an indicator of the value
proposition of its platform. The Company defines ARPD as Dealer
revenue, excluding digital advertising services, during the period
divided by the monthly average number of Dealer Customers during
the same period. For the three months ended June 30, 2022, Accu-Trade is included in our ARPD
metric, which had an immaterial impact on ARPD; however, no prior
period has been recast as it would be impracticable to do so.
Dealer Customers. Dealer Customers represent dealerships
using the Company's products as of the end of each reporting
period. Each physical or virtual dealership location is counted
separately, whether it is a single-location proprietorship or part
of a large, consolidated dealer group. Multi-franchise dealerships
at a single location are counted as one dealer. As of June 30, 2022, this key operating metric includes
Accu-Trade; however, no prior period has been recast as it would be
impracticable to do so.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the federal securities laws. All statements other
than statements of historical facts are forward-looking statements.
Forward-looking statements include information concerning the
Company's industry, Dealer Customers, results of operations,
business strategies, plans and objectives, market potential,
outlook, trends, future financial performance, planned operational
and product improvements, potential strategic transactions, recent
acquisitions, such as CreditIQ and Accu-Trade, liquidity, including
draws from the Company's revolving credit facility, expense
management and other matters and involve known and unknown risks
that are difficult to predict. These statements often include words
such as "believe," "expect," "project," "anticipate," "outlook,"
"intend," "strategy," "plan," "estimate," "target," "seek," "will,"
"may," "would," "should," "could," "forecasts," "mission,"
"strive," "more," "goal" or similar expressions. As a result,
the Company's actual financial results, performance, achievements,
strategic actions or prospects may differ materially from those
expressed or implied by these forward-looking statements.
Forward-looking statements are based on the Company's current
expectations, beliefs, strategies, estimates, projections and
assumptions, based on its experience in the industry as well as the
Company's perceptions of historical trends, current conditions,
expected future developments, current developments regarding the
COVID-19 pandemic and other factors the Company thinks are
appropriate. Such forward-looking statements are necessarily based
upon estimates and assumptions that, while considered reasonable by
the Company and its management based on their knowledge and
understanding of the business and industry, are inherently
uncertain. These statements are expressed in good faith and the
Company believes these judgments are reasonable. However, you
should understand that these statements are not guarantees of
strategic action, performance or results. The Company's actual
results and strategic actions could differ materially from those
expressed in the forward-looking statements. Given these
uncertainties, forward-looking statements should not be relied on
in making investment decisions. Comparisons of results between
current and prior periods are not intended to express any future
trends, or indications of future performance, unless expressed as
such, and should only be viewed as historical data. Whether or not
any such forward-looking statement is in fact achieved will depend
on future events, some of which are beyond the Company's
control.
Forward-looking statements are subject to a number of risks,
uncertainties and other important factors, many of which are beyond
the Company's control, that could cause its actual results and
strategic actions to differ materially from those expressed in the
forward-looking statements contained in this press release. For a
detailed discussion of many of these and other risks and
uncertainties, see the Company's Annual Report on Form 10-K, its
Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K and
its other filings with the Securities and Exchange Commission,
available on the Company's website at investor.cars.com or via
EDGAR at www.sec.gov. All forward-looking statements contained in
this press release are qualified by these cautionary statements.
You should evaluate all forward-looking statements made in this
press release in the context of these risks and uncertainties. The
forward-looking statements contained in this press release are
based only on information currently available to the Company and
speak only as of the date of this press release. The Company
undertakes no obligation, other than as may be required by law, to
update or revise any forward-looking or cautionary statements to
reflect changes in assumptions, the occurrence of events,
unanticipated or otherwise, or changes in future operating results
over time or otherwise.
The forward-looking statements in this report are intended to be
subject to the safe harbor protection provided by the federal
securities laws.
CARS Investor Relations Contact:
Robbin Moore-Randolph
rmr@cars.com
312.601.5929
CARS Media Contact:
Marita
Thomas
mthomas@cars.com
312.601.5692
1 As of June 30,
2022, this key metric includes Accu-Trade; however, no prior
period has been recast as it would be impracticable to do so. For
the second quarter 2022, this metric includes 180 Accu-Trade only
customers.
Cars.com
Inc.
|
Consolidated
Statements of Income
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenue:
|
|
|
|
|
|
|
|
|
Dealer
|
|
$
143,987
|
|
$
136,866
|
|
$
284,403
|
|
$
269,824
|
OEM and
National
|
|
14,144
|
|
16,329
|
|
29,318
|
|
34,398
|
Other
|
|
4,742
|
|
2,335
|
|
7,359
|
|
4,603
|
Total
revenue
|
|
162,873
|
|
155,530
|
|
321,080
|
|
308,825
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of revenue
and operations
|
|
29,504
|
|
28,219
|
|
57,256
|
|
56,050
|
Product and
technology
|
|
23,117
|
|
19,434
|
|
44,424
|
|
36,194
|
Marketing and
sales
|
|
54,655
|
|
51,309
|
|
111,749
|
|
104,520
|
General and
administrative
|
|
17,211
|
|
15,615
|
|
33,771
|
|
28,881
|
Depreciation and
amortization
|
|
23,001
|
|
25,298
|
|
47,554
|
|
50,978
|
Total operating
expenses
|
|
147,488
|
|
139,875
|
|
294,754
|
|
276,623
|
Operating income
|
|
15,385
|
|
15,655
|
|
26,326
|
|
32,202
|
Nonoperating
expense:
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
(9,047)
|
|
(9,839)
|
|
(18,377)
|
|
(19,840)
|
Other (expense)
income, net
|
|
(54)
|
|
(39)
|
|
154
|
|
(1)
|
Total nonoperating expense,
net
|
|
(9,101)
|
|
(9,878)
|
|
(18,223)
|
|
(19,841)
|
Income before
income taxes
|
|
6,284
|
|
5,777
|
|
8,103
|
|
12,361
|
Income tax
expense (benefit)
|
|
739
|
|
(189)
|
|
(1,782)
|
|
1,117
|
Net income
|
|
$
5,545
|
|
$
5,966
|
|
$
9,885
|
|
$
11,244
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
69,194
|
|
68,869
|
|
69,329
|
|
68,328
|
Diluted
|
|
70,257
|
|
70,694
|
|
70,505
|
|
70,790
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.08
|
|
$
0.09
|
|
$
0.14
|
|
$
0.16
|
Diluted
|
|
0.08
|
|
0.08
|
|
0.14
|
|
0.16
|
|
|
|
|
|
|
|
|
|
Cars.com
Inc.
|
Consolidated Balance
Sheets
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
June 30,
2022
|
|
December 31, 2021
(1)
|
|
|
(unaudited)
|
|
|
Assets:
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
18,134
|
|
$
39,069
|
Accounts receivable,
net
|
|
104,402
|
|
98,893
|
Prepaid
expenses
|
|
11,330
|
|
7,810
|
Other current
assets
|
|
3,796
|
|
1,665
|
Total current
assets
|
|
137,662
|
|
147,437
|
Property and equipment,
net
|
|
43,529
|
|
43,005
|
Goodwill
|
|
103,194
|
|
26,227
|
Intangible assets,
net
|
|
745,405
|
|
769,424
|
Investments and other
assets, net
|
|
21,669
|
|
21,112
|
Total assets
|
|
$
1,051,459
|
|
$
1,007,205
|
Liabilities and
stockholders' equity:
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
13,212
|
|
$
15,420
|
Accrued
compensation
|
|
13,708
|
|
23,612
|
Current portion of
long-term debt, net
|
|
11,522
|
|
8,941
|
Other accrued
liabilities
|
|
46,383
|
|
46,317
|
Total current
liabilities
|
|
84,825
|
|
94,290
|
Noncurrent
liabilities:
|
|
|
|
|
Long-term debt,
net
|
|
495,968
|
|
457,383
|
Other noncurrent
liabilities
|
|
79,278
|
|
57,512
|
Total noncurrent
liabilities
|
|
575,246
|
|
514,895
|
Total
liabilities
|
|
660,071
|
|
609,185
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred Stock at par,
$0.01 par value; 5,000 shares authorized; no shares
issued and outstanding as of June 30, 2022 and
December 31, 2021,
respectively
|
|
—
|
|
—
|
Common Stock at par,
$0.01 par value; 300,000 shares authorized; 68,244 and
69,170 shares issued and outstanding as of June 30,
2022 and
December 31, 2021, respectively
|
|
682
|
|
692
|
Additional paid-in
capital
|
|
1,526,203
|
|
1,544,712
|
Accumulated
deficit
|
|
(1,135,497)
|
|
(1,145,382)
|
Accumulated other
comprehensive loss
|
|
—
|
|
(2,002)
|
Total stockholders'
equity
|
|
391,388
|
|
398,020
|
Total liabilities and
stockholders' equity
|
|
$
1,051,459
|
|
$
1,007,205
|
|
|
|
|
|
|
(1)
During the six months ended June 30,
2022, the Company identified a $30.8 million overstatement of the
valuation allowance recorded against deferred tax assets that
originated in 2020. The Company also recorded an immaterial income
tax adjustment relating to a prior period. The Company has
concluded these items are not material to the previously issued
Consolidated Financial Statements and has therefore corrected these
prior period amounts as presented in the current period
Consolidated Financial Statements. See further discussion within
the Company's Form 10-Q for the period ended June 30,
2022.
|
|
|
|
|
|
Cars.com
Inc.
|
Consolidated
Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2022
|
|
2021
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
|
$
9,885
|
|
$
11,244
|
Adjustments to
reconcile Net income to Net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
|
7,857
|
|
7,980
|
Amortization of
intangible assets
|
|
39,697
|
|
42,998
|
Amortization of
Accumulated other comprehensive loss on interest rate
swap
|
|
2,362
|
|
2,835
|
Stock-based
compensation
|
|
11,628
|
|
10,670
|
Deferred income
taxes
|
|
(92)
|
|
(442)
|
Provision for doubtful
accounts
|
|
463
|
|
211
|
Amortization of debt
issuance costs
|
|
1,630
|
|
1,657
|
Amortization of
deferred revenue related to Accu-Trade Acquisition
|
|
(1,767)
|
|
—
|
Other, net
|
|
173
|
|
(44)
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
Accounts
receivable
|
|
(4,383)
|
|
(7,053)
|
Prepaid expenses and
other assets
|
|
(6,683)
|
|
7,829
|
Accounts
payable
|
|
(2,422)
|
|
8,888
|
Accrued
compensation
|
|
(9,904)
|
|
(4,393)
|
Other
liabilities
|
|
(6,164)
|
|
(2,761)
|
Net cash provided by
operating activities
|
|
42,280
|
|
79,619
|
Cash flows from
investing activities:
|
|
|
|
|
Payments for acquisitions,
net of cash acquired
|
|
(64,770)
|
|
—
|
Purchase of property and
equipment
|
|
(8,555)
|
|
(13,095)
|
Net cash used in
investing activities
|
|
(73,325)
|
|
(13,095)
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from Revolving Loan
borrowings
|
|
45,000
|
|
—
|
Payments of long-term
debt
|
|
(5,000)
|
|
(75,000)
|
Payments for stock-based
compensation plans, net
|
|
(6,838)
|
|
(7,049)
|
Repurchases of common
stock
|
|
(23,052)
|
|
—
|
Payments of debt issuance
costs and other fees
|
|
—
|
|
(9)
|
Net cash provided by
(used in) financing activities
|
|
10,110
|
|
(82,058)
|
Net decrease in cash
and cash equivalents
|
|
(20,935)
|
|
(15,534)
|
Cash and cash
equivalents at beginning of period
|
|
39,069
|
|
67,719
|
Cash and cash
equivalents at end of period
|
|
$
18,134
|
|
$
52,185
|
Supplemental cash
flow information:
|
|
|
|
|
Cash paid (received)
for income taxes
|
|
$
629
|
|
$
(8,875)
|
Cash paid for interest
and swap
|
|
17,664
|
|
19,634
|
|
|
|
|
|
Cars.com
Inc.
|
Non-GAAP
Reconciliations
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Reconciliation of
Net income to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
5,545
|
|
$
5,966
|
|
$
9,885
|
|
$
11,244
|
Interest expense,
net
|
|
9,047
|
|
9,839
|
|
18,377
|
|
19,840
|
Income tax expense
(benefit)
|
|
739
|
|
(189)
|
|
(1,782)
|
|
1,117
|
Depreciation and
amortization
|
|
23,001
|
|
25,298
|
|
47,554
|
|
50,978
|
Stock-based
compensation
|
|
6,581
|
|
6,029
|
|
11,998
|
|
11,137
|
Write-off of long-lived
assets and other
|
|
15
|
|
94
|
|
(31)
|
|
79
|
Severance,
transformation and other exit costs
|
|
1,419
|
|
927
|
|
1,811
|
|
1,707
|
Transaction-related
items
|
|
(1,043)
|
|
512
|
|
(486)
|
|
512
|
Adjusted
EBITDA
|
|
$
45,304
|
|
$
48,476
|
|
$
87,326
|
|
$
96,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net cash provided by operating activities to Free cash
flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
11,922
|
|
$
29,257
|
|
$
42,280
|
|
$
79,619
|
Purchase of property
and equipment
|
|
(4,547)
|
|
(6,876)
|
|
(8,555)
|
|
(13,095)
|
Free cash
flow
|
|
$
7,375
|
|
$
22,381
|
|
$
33,725
|
|
$
66,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating expenses to Adjusted operating expenses for the Three
Months Ended June 30, 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustments
(1)
|
|
Stock-Based
Compensation
|
|
As
Adjusted
|
Cost of revenue and
operations
|
|
$
29,504
|
|
$
—
|
|
$
(324)
|
|
$
29,180
|
Product and
technology
|
|
23,117
|
|
—
|
|
(2,092)
|
|
21,025
|
Marketing and
sales
|
|
54,655
|
|
—
|
|
(1,467)
|
|
53,188
|
General and
administrative
|
|
17,211
|
|
(2,027)
|
|
(2,698)
|
|
12,486
|
Depreciation and
amortization
|
|
23,001
|
|
—
|
|
—
|
|
23,001
|
Total operating
expenses
|
|
$
147,488
|
|
$
(2,027)
|
|
$
(6,581)
|
|
$
138,880
|
|
|
|
|
|
|
|
|
|
(1)
Includes severance, transformation and
other exit costs, transaction related items, and write-off of
long-lived assets and other.
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating expenses to Adjusted operating expenses for the Three
Months Ended June 30, 2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustments
(1)
|
|
Stock-Based
Compensation
|
|
As
Adjusted
|
Cost of revenue and
operations
|
|
$
28,219
|
|
$
—
|
|
$
(189)
|
|
$
28,030
|
Product and
technology
|
|
19,434
|
|
—
|
|
(1,795)
|
|
17,639
|
Marketing and
sales
|
|
51,309
|
|
—
|
|
(1,448)
|
|
49,861
|
General and
administrative
|
|
15,615
|
|
(1,456)
|
|
(2,597)
|
|
11,562
|
Depreciation and
amortization
|
|
25,298
|
|
—
|
|
—
|
|
25,298
|
Total operating
expenses
|
|
$
139,875
|
|
$
(1,456)
|
|
$
(6,029)
|
|
$
132,390
|
|
|
|
|
|
|
|
|
|
(1)
Includes severance, transformation and
other exit costs, transaction related costs, and write-off of
long-lived assets and other.
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating expenses to Adjusted operating expenses for the Six
Months Ended June 30, 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustments
(1)
|
|
Stock-Based
Compensation
|
|
As
Adjusted
|
Cost of revenue and
operations
|
|
$
57,256
|
|
$
—
|
|
$
(519)
|
|
$
56,737
|
Product and
technology
|
|
44,424
|
|
—
|
|
(3,332)
|
|
41,092
|
Marketing and
sales
|
|
111,749
|
|
—
|
|
(2,772)
|
|
108,977
|
General and
administrative
|
|
33,771
|
|
(3,443)
|
|
(5,375)
|
|
24,953
|
Depreciation and
amortization
|
|
47,554
|
|
—
|
|
—
|
|
47,554
|
Total operating
expenses
|
|
$
294,754
|
|
$
(3,443)
|
|
$
(11,998)
|
|
$
279,313
|
|
|
|
|
|
|
|
|
|
(1)
Includes severance, transformation and
other exit costs, transaction related items, and write-off of
long-lived assets and other.
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating expenses to Adjusted operating expenses for the Six
Months Ended June 30, 2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustments
(1)
|
|
Stock-Based
Compensation
|
|
As
Adjusted
|
Cost of revenue and
operations
|
|
$
56,050
|
|
$
—
|
|
$
(543)
|
|
$
55,507
|
Product and
technology
|
|
36,194
|
|
—
|
|
(3,076)
|
|
33,118
|
Marketing and
sales
|
|
104,520
|
|
—
|
|
(2,761)
|
|
101,759
|
General and
administrative
|
|
28,881
|
|
(2,218)
|
|
(4,757)
|
|
21,906
|
Depreciation and
amortization
|
|
50,978
|
|
—
|
|
—
|
|
50,978
|
Total operating
expenses
|
|
$
276,623
|
|
$
(2,218)
|
|
$
(11,137)
|
|
$
263,268
|
|
|
|
|
|
|
|
|
|
(1)
Includes severance, transformation and
other exit costs, transaction related costs, and write-off of
long-lived assets and other.
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/cars-reports-second-quarter-2022-results-301599017.html
SOURCE Cars.com Inc.