Dealertrack Technologies, Inc. Reports Third Quarter 2012 Financial Results

Dealertrack Technologies, Inc. (NASDAQ: TRAK) today reported financial results for the third quarter ended September 30, 2012. The Company changed its name from DealerTrack Holdings, Inc. on November 7, 2012.

GAAP Results for the Third Quarter 2012
  • Revenue for the quarter was $99.1 million, as compared to $95.8 million for the third quarter of 2011.
  • GAAP net loss for the quarter was $(2.9) million, as compared to GAAP net income of $5.4 million for the third quarter of 2011.
  • Diluted GAAP net loss per share for the quarter was $(0.07), as compared to GAAP net income per share of $0.13 for the third quarter of 2011.

GAAP net loss for the three months ended September 30, 2012 includes a $3.3 million, or $0.08 per share, non-cash charge (net of taxes) from an adjustment to fair value relating to a warrant.

Non-GAAP Results for the Third Quarter 2012
  • Adjusted EBITDA for the quarter was $27.0 million, as compared to $25.8 million for the third quarter of 2011.
  • Adjusted net income for the quarter was $12.5 million, as compared to $14.7 million for the third quarter of 2011.
  • Diluted adjusted net income per share for the quarter was $0.28, as compared to $0.34 for the third quarter of 2011. As a result of updating the Company's full year expected effective tax rate, a tax benefit that was realized in the prior quarter was reversed in the third quarter, negatively impacting diluted adjusted net income per share by $0.02. Adjusted net income per share for the third quarter would have been $0.30 without the impact of this reversal.

GAAP Results for the Nine Months Ended September 30, 2012
  • Revenue for the nine months was $287.1 million, as compared to $262.0 million for the same period in 2011.
  • GAAP net income for the nine months was $20.0 million, as compared to $32.3 million for the same period in 2011.
  • Diluted GAAP net income per share for the nine months was $0.45, as compared to $0.76 for the same period in 2011.

GAAP net income for the nine months ended September 30, 2012 includes a $15.9 million, or $0.36 per share, gain (net of taxes) for the contribution of the net assets of Chrome to the Chrome Data Solutions joint venture; a $3.4 million, or $0.08 per share, gain (net of taxes) from the sale of certain Chrome branded assets that were not contributed to our Chrome Data joint venture; and a $3.9 million, or $0.09 per share, non-cash charge (net of taxes) from an adjustment to fair value relating to a warrant. GAAP net income for the nine months ended September 30, 2011 was positively impacted by a $22.4 million, or $0.53 per share, non-cash reduction in the valuation allowance against the Company's net U.S. deferred tax assets.

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