DealerTrack Discusses 4Q, Full-Year Performance, 2010 Outlook
LAKE SUCCESS, N.Y. — DealerTrack executives remained upbeat about their company's financial standing despite some year-over-year softening in revenue and income.
When discussing fourth quarter data, DealerTrack indicated that revenue to close 2009 came in at $53.2 million as compared to $54.7 million for the fourth quarter of 2008. However, executives pointed out that the GAAP net loss for the quarter was $0.7 million, an improvement over the figure for the same time span in 2008. The GAAP net loss was of $1.1 million for the fourth quarter of 2008.
In other financial news from the fourth quarter, DealerTrack stated that adjusted EBITDA was $8.2 million. During the same period in 2008, the figure was $7.8 million.
Meanwhile, company executives found that their adjusted net income for the quarter was $4.8 million. They mentioned that this total was off from the same quarter of 2008 when it was $6.3 million.
Moving onto full-year data, DealerTrack again noted how revenue dipped in 2009 as compared to the previous year.
The company said revenue for the year was $225.6 million. DealerTrack posted $242.7 million in revenue in 2008.
Those figures calculated into GAAP net loss for 2009 of $4.3 million. Executives pointed out that they had GAAP net income of $1.7 million for 2008.
DealerTrack also mentioned that adjusted EBITDA for the year was $34.4 million as compared to $47.9 million for 2008. Furthermore, the company noted that adjusted net income for 2009 was $20 million, down from $34.7 million during the previous year.
Looking into guidance for its 2010 annual performance, DealerTrack said revenue for the year is expected to be between $240 million and $246 million with a net of approximately $1.5 to $2 million of contra-revenue related to its GMAC Financial Services agreement.
Company officials also predicted that GAAP net income for the year is expected to be between $2 million and $4 million while adjusted EBITDA is forecasted to be between $41 million and $45 million. They also noted that adjusted net income in 2010 is expected to be between $21.5 million and $24 million.
"GAAP net income and adjusted net income per share guidance for the year are based on an assumed 42.3 million diluted weighted average shares outstanding," DealerTrack executives stressed.
"The guidance assumes that for 2010 new-car sales will be 11.5 million units and used-car sales will be 13.5 million units," they continued.
"The guidance also includes the expected ongoing impact of the Chrysler and General Motors bankruptcies and related franchise terminations, including the Saturn wind down. Also included in our guidance is the strategic agreement that we recently announced with GMAC," DealerTrack officials added.
To recap, earlier this month GMAC Financial Services was added to DealerTrack's credit application network. The lender said teaming up with DealerTrack will help expand its customer base, as GMAC will have access to retail auto financing applications from "essentially all" dealers in the U.S. and Canada from any OEM.
Mark O'Neil, chairman and chief executive officer of DealerTrack, elaborated about the company's future potential as well as a look back on 2009 performances.
"While revenues were below our expectations for the quarter, primarily due to the strength of captive lenders not on our network, we are pleased with our ability to contain costs to achieve solid results." O'Neil emphasized.
"Looking ahead, we believe that we are extremely well-positioned to benefit from a pick-up in auto sales, as well as continued growth in our subscription business," he continued.
"We are also very excited about our recently announced strategic agreement with GMAC which we believe will have substantial long-term benefits," O'Neil concluded.