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Dealertrack Technologies, Inc. Reports Third Quarter 2012 Financial Results

Stocks in this article: TRAK

Non-GAAP Results for the Nine Months Ended September 30, 2012

  • Adjusted EBITDA for the nine months was $71.5 million, as compared to $65.6 million for the same period in 2011.
  • Adjusted net income for the nine months was $35.4 million, as compared to $33.2 million for the same period in 2011.
  • Diluted adjusted net income per share for the nine months was $0.81, as compared to $0.78 for the same period in 2011.

Mark F. O’Neil, chairman and chief executive officer of Dealertrack Technologies, Inc., commented, “Our healthy third quarter performance allows us to remain squarely on track to achieve our full-year revenue expectations and our adjusted EBITDA margin target of approximately 25%, with revenue from recent acquisitions further contributing to our results. In addition to organic growth in our transaction and subscription businesses in the quarter, we are excited to further broaden our market opportunity with the addition of ClickMotive to our digital retailing suite. ClickMotive significantly strengthens Dealertrack’s existing eCarList digital retailing capabilities with an expanded website and digital marketing platform. Importantly, it gives Dealertrack access to a part of dealership advertising budgets, in addition to their technology budgets. We believe investments we are making to both broaden and deepen our product portfolio are improving our market leadership and position us for long-term growth.”

Updated Guidance for 2012

Dealertrack updated its 2012 annual guidance based on its third quarter results and for the acquisitions of ClickMotive and the assets of Ford Motor Company of Canada Limited’s iCONNECT Direct DMS business as follows:

Expected GAAP Results

  • Revenue for the year is expected to be between $387.0 million and $390.0 million, an increase from prior guidance of between $381.0 million and $385.0 million.
  • GAAP net income for the year is expected to be between $21.5 million and $23.0 million, a decrease from prior guidance of between $24.5 million and $26.5 million.
  • Diluted GAAP net income per share for the year is expected to be between $0.49 and $0.52, a decrease from prior guidance of between $0.55 and $0.60 per share.

Expected Non-GAAP Results

  • Adjusted EBITDA for the year is expected to be between $96.5 million and $98.0 million, an increase from prior guidance of between $96.0 million and $98.0 million.
  • Adjusted net income for the year is expected to be between $48.0 million and $49.5 million, an increase from prior guidance of between $47.5 million and $49.5 million.
  • Diluted adjusted net income per share for the year is expected to be between $1.08 and $1.12, an increase from prior guidance of between $1.07 and $1.12.

The updated guidance assumes car sales will be generally consistent with what we have seen during the first nine months of 2012, with new car sales by franchised dealers of approximately 14.3 million units and used car sales by franchised dealers of approximately 14.5 million units for 2012, an increase from our previous assumptions of 14.2 million units and 14.0 million units, respectively. Diluted GAAP net income and adjusted net income per share guidance for the year continue to be based on an estimated 44.3 million diluted weighted average shares outstanding. The updated guidance assumes an effective tax rate of 39% for the full year, a decrease from prior guidance of 39.5% at the mid-point.

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