DealerTrack Touts 2Q Revenue Rise
LAKE SUCCESS, N.Y. — DealerTrack Holdings cheered its second-quarter financial performance although a healthy quarterly revenue gain translated into a slight GAAP net loss.
As executives discussed their most recent financial report, they shared their revenue figure for the second quarter totaled $61.9 million. The amount marked a jump from DealerTrack's revenue compiled during the second quarter of last year, which was $57.9 million.
However, the company determined it sustained a GAAP net loss for the quarter of $0.1 million. During the second quarter of last year, DealerTrack posted $2.2 million in GAAP net income.
As a result, management determined GAAP per share results for the quarter were breakeven. In the year-ago period, GAAP net income per share was 5 cents.
Looking at non-GAAP results for the second quarter, DealerTrack again shared mixed performances.
The company indicated adjusted EBITDA for the quarter was $9.8 million. A year ago, it was $9.4 million.
Executives found adjusted net income in the second quarter came in at $5.3 million. This marked a slight dip from the second quarter of 2009 when it was $5.4 million.
Furthermore, DealerTrack revealed that diluted adjusted net income per share was 13 cents for the most recent quarter, the same level as a year ago.
The company next discussed its GAAP results for the six-month span that ended June 30.
Again, the company's revenue climbed. For the first six months of 2010, the company compiled $118.7 million in revenue, up from $113.6 million for the same period a year ago.
Despite sustaining a GAAP net loss during the first six months this year and in 2009, DealerTrack lowered the figure. In 2009, its GAAP net loss totaled $3.4 million. During the most recent six-month span, DealerTrack dropped it to $2.6 million.
Showing a similar pattern, executives noted their GAAP net loss per share for the past six months was 6 cents as compared to a GAAP net loss of 9 cents per share for the same period in 2009.
Continuing on with the details from the last six months, DealerTrack shared non-GAAP results.
Management indicated adjusted EBITDA during the past six months totaled $14.7 million. During the same period in 2009, it was $15.5 million.
The company said its adjusted net income was $7.3 million, a figure lower than the year-ago total, which was $8.8 million.
Finally, DealerTrack mentioned diluted adjusted net income per share was 18 cents during the most recent six-month span. In 2009, it was 22 cents per share for the same period.
DealerTrack wrapped up its latest financial report by offering some guidance for its 2010 annual performance.
The company reaffirmed its revenue and GAAP and non-GAAP earnings guidance for the full year by reiterating several points.
For expected GAAP results, DealerTrack believes:
—Revenue for the year is expected to be between $240.0 million and $246.0 million, net of approximately $1.5 to $2.0 million of contra-revenue.
—GAAP net income for the year is expected to be between $2.0 million and $4.0 million.
—Diluted GAAP net income per share for the year is expected to be between 5 cents and 9 cents.
For expected non-GAAP results, DealerTrack asserts:
—Adjusted EBITDA for the year is expected to be between $41.0 million and $45.0 million.
—Adjusted net income for the year is expected to be between $21.5 million and $24.0 million.
—Diluted adjusted net income per share for the year is expected to be between 51 cents and 57 cents.
Executives insisted that 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.
They also pointed out the guidance assumes that this year's new-vehicle sales will be 11 million units and used-vehicle sales will be 13.5 million units.
After all of the financial details came out, DealerTrack's chairman and chief executive officer offered his assessment.
"We are extremely pleased with our results for the quarter as our transaction business benefited from the completion of the roll-out of Ally Financial on our credit application network." Mark O'Neil declared.
"We believe that DealerTrack is well-positioned to continue to grow revenue and generate higher margins," O'Neil added.
DealerTrack Connects 900th Financing Source
In addition to second-quarter results, DealerTrack also announced that the number of active financing sources connected to its network reached 900.
DealerTrack reiterated that its member dealers can electronically submit credit applications to a diverse network of banks, independent finance companies, captive finance companies, credit unions and regional banks.
"We're pleased to have connected our 900th lender — substantially more than other auto finance networks," O'Neil asserted.
"Growth of the number of lenders on the DealerTrack network has clearly accelerated over the last year, reflecting the renewed interest of lenders in the auto financing market, as well as our continued success in bringing regional banks and credit unions on board," he continued.
"By providing dealers with free online access to such a broad lender universe, we are helping them sell more cars by expanding their financing relationships," O'Neil concluded.