DealerTrack’s 1Q Performance Enhances Financial Outlook for 2010
LAKE SUCCESS, N.Y. — DealerTrack Holdings enjoyed revenue gains in the first quarter of 2010, helping the company to maintain its financial guidance forecast for the year.
Executives noted that their revenue for the quarter was $56.8 million as compared with $55.7 million for the first quarter of 2009. The figure computed into a GAAP net loss of $2.5 million. To open 2009, DealerTrack sustained a GAAP net loss of $5.6 million.
When looking at the data per share, DealerTrack pointed out positive trends despite a GAAP net loss per share. This past quarter, the loss was 6 cents per share as compared with 14 cents per share in the first quarter of 2009.
Moving on to a discussion about non-GAAP results for the first quarter, DealerTrack reported adjusted EBITDA of $4.9 million. In the first quarter of last year, the company indicated it was $6.1 million.
Meanwhile, executives mentioned that their first quarter adjusted net income stood at $2.1 million. They compiled $3.8 million in the time frame a year earlier.
As a result, the company indicated diluted adjusted net income per share for the quarter was 5 cents as compared to 9 cents per share for the first quarter of 2009.
When pouring over its guidance for this year's annual performance, DealerTrack reaffirmed its revenue as well as its GAAP and non-GAAP earnings guidance. The company shared a breakdown of its guidance position, beginning first with expected GAAP results:
—Revenue for the year is expected to be between $240 million and $246 million, net of approximately $1.5 to $2.0 million of contra-revenue related to the GMAC agreement.
—GAAP net income for the year is expected to be between $2 million and $4 million.
—Diluted GAAP net income per share for the year is expected to be between 5 cents and 9 cents.
Turning to expected non-GAAP results, DealerTrack maintained several assertions:
—Adjusted EBITDA for the year is expected to be between $41 million and $45 million.
—Adjusted net income for the year is expected to be between $21.5 million and $24 million.
—Diluted adjusted net income per share for the year is expected to be between 51 cents and 57 cents.
Executives went on to emphasize 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.
DealerTrack stressed that its guidance assumes that 2010 new-vehicle sales will be 11 million units and used-vehicle sales will total 13.5 million units. The company conceded its guidance originally assumed 11.5 million new-vehicle sales.
"The guidance also includes the expected ongoing impact of the Chrysler and General Motors bankruptcies and related franchise terminations, including the Saturn wind down," DealerTrack executives pointed out.
"Also included in our guidance is the strategic agreement that we recently announced with GMAC," they added.
Mark O'Neil, chairman and chief executive officer of DealerTrack, also maintained upbeat assessments of both the company's first-quarter performance as well as how it could perform during the rest of 2010.
"Results for the quarter were in line with our expectations, and we expect our business to continue to improve throughout the year." O'Neil stated.
"Looking ahead, we believe that the auto industry has begun to rebound, and DealerTrack is extremely well-positioned to benefit in both our transaction and subscription businesses," he concluded.