NADA Used Car Guide Values to Be Offered in New DealerTrack Product for Lenders
McLEAN, Va. — NADA Used Car Guide announced this week it has been tapped to provide used-vehicle values for a newly launched product by DealerTrack Inc. that is designed to enhance lenders' efficiency and further streamline the auto lending process.
Basically, lenders nationwide can depend on used-vehicle values from NADA to determine collateral value.
Now, with DealerTrack's new "BookOut for Lenders," officials can access values directly through the credit application system. Values are provided based on the year, make and model, as well as the condition of the vehicle. The new product also saves time and helps reduce errors by eliminating the need for a lender to manually "bookout" vehicles or "cut and paste" into an application, officials noted.
"We are pleased to expand our partnership with NADA through the launch of our new BookOut for Lenders solution," said Robert Granados, vice president and general manager at DealerTrack.
"In today's volatile market, lenders need the easiest possible access to accurate, up-to-date bookout values, and that's why we designed a solution that is fully integrated with the DealerTrack network," he added.
Mike Stanton, vice president and chief operating officer of NADA Used Car Guide, said, "It's critical that vehicle values reflect the dynamics of short-term market volatility, as well as longer-term cyclical patterns, for the most complete picture. DealerTrack recognizes that NADA's values do that, and we're very pleased to team up to provide this information to lenders in an easy-to-use, automated delivery method."
DealerTrack Reports 2Q Results
In other recent news, DealerTrack Holdings reported second-quarter GAAP revenue of $57.9 million, compared with $63.2 million in the same period of 2008.
Meanwhile, GAAP net income for the period was $2.2 million, compared with $3.1 million in the same time frame of last year.
On a non-GAAP basis, adjusted EBITDA for the quarter was $9.4 million, compared with $13.9 million in the previous year. Cash net-income for the period was $7.3 million, compared to $9.4 million.
For the six-month time frame, GAAP revenue was $113.6 million, compared with $127.5 million in 2008. The GAAP net loss for the six month period was $3.4 million, compared with GAAP net income of $5.4 million in 2008 period.
As for the non-GAAP results, adjusted EBITDA for the six months was $15.5 million, compared with $27.7 million in the same period of last year. Cash net income, meanwhile, was $8.9 million, compared with $18.6 million.
"Both GAAP and cash net income in the second quarter were favorably impacted by an approximately $1.1 million tax benefit as a result of filing several amended prior-year state tax returns. Additionally, cash net income was favorably impacted by a realized gain of approximately $0.9 million relating to the sale of securities," officials explained.
Also, on June 17, the company's shareholders approved a proposal for a one-time stock options exchange. DealerTrack indicates that it expected to commence the tender offer on or about Aug. 7. Officials said the exchange has been designed to make the grant of replacement options accounting expense natural.
Discussing the results, Mark O'Neil, chairman and chief executive officer, said, "The year began with a great deal of uncertainty in the automotive retail industry. We have seen signs of modest improvement in both car sales and credit that we hope will continue.
"Despite any challenges, we are pleased with our subscription revenue growth," he continued. "We believe our value proposition differentiates us from the competition and that we will continue to have success in subscription sales. With effective cost control, we are raising our earnings guidance for the year and remain confident with our ability to generate strong cash flows."
Looking ahead, the company said it expects revenue to come in at $228 million and $232 million, compared to the previous estimate of $232 million and $238 million.
The GAAP net loss for the year is anticipated to be between $4.3 million and $2.8 million, compared to the previous estimate of a loss of $7 million to $5.5 million.
GAAP net loss per share is predicted to be between $0.11 and $0.07, compared to the previous estimate of a loss of $0.18 to $0.14.
Officials explained, "GAAP net loss guidance for the year is based on the assumed 40.3 million basic weighted average shares outstanding. Cash net income per share guidance for the year is based on an assumed 41.3 million diluted weighted average shares outstanding.
"The revised guidance assumes that available credit for auto financing, lender-to-dealer relationships, and new- and used-car sales are similar to the second quarter," they continued. "The guidance also includes the expected impact of the Chrysler and General Motors bankruptcies and related franchise terminations."