DealerTrack Holdings, Inc. Reports First Quarter 2012 Financial Results

PR Newswire
Share
Tuesday, May 8th 2012
Advanced

Raises 2012 Revenue and Non-GAAP Earnings Guidance

LAKE SUCCESS, N.Y., May 8, 2012 /PRNewswire/ -- DealerTrack Holdings, Inc. (Nasdaq: TRAK) today reported financial results for the first quarter ended March 31, 2012.

Logo

GAAP Results for the First Quarter 2012

  • Revenue for the quarter was $91.6 million, as compared to $77.2 million for the first quarter of 2011
  • GAAP net income for the quarter was $17.0 million, as compared to $24.7 million for the first quarter of 2011
  • Diluted GAAP net income per share for the quarter was $0.39, as compared to $0.59 for the first quarter of 2011

GAAP net income for the first quarter of 2012 was positively impacted by $16.1 million (net of tax), or $0.37 per share, from a non-cash gain related to the contribution of Chrome to the Chrome Data Solutions, LP joint venture.  GAAP net income for the first quarter of 2011 was positively impacted by $24.5 million, or $0.58 per share, from a non-cash reduction in the valuation allowance against the company's net U.S. deferred tax assets. 

Non-GAAP Results for the First Quarter 2012

  • Adjusted EBITDA for the quarter was $19.4 million, as compared to $15.5 million for the first quarter of 2011
  • Adjusted net income for the quarter was $9.4 million, as compared to $7.5 million for the first quarter of 2011
  • Diluted adjusted net income per share for the quarter was $0.22, as compared to $0.18 for the first quarter of 2011

Guidance for 2012 Annual Revenue Performance

DealerTrack raised annual guidance for revenue and non-GAAP earnings to reflect its stronger outlook for the year, and adjusted its expected GAAP earnings to further reflect certain interest expense and costs related to the company's issuance of $200 million in senior convertible notes in March 2012, as follows:

Expected GAAP Results

  • Revenue for the year is expected to be between $375.0 million and $382.0 million, an increase from prior guidance of between $365.0 to $372.0 million
  • GAAP net income for the year is expected to be between $27.0 million and $30.0 million, a decrease from prior guidance of between $33.0 million and $36.0 million
  • Diluted GAAP net income per share for the year is expected to be between $0.61 and $0.68, a decrease from prior guidance of between $0.75 and $0.81 per share

Expected Non-GAAP Results

  • Adjusted EBITDA for the year is expected to be between $94.0 million and $97.0 million, an increase from prior guidance of between $91.0 and $95.0 million
  • Adjusted net income for the year is expected to be between $46.0 million and $49.0 million, an increase from prior guidance of between $44.0 and $47.0 million
  • Diluted adjusted net income per share for the year is expected to be between $1.04 and $1.11, an increase from prior guidance of between $0.99 and $1.06

The guidance assumes that new car sales by franchised dealers will be approximately 14.2 million units, up from our previous expectation of 13.5 million units, and used car sales by franchised dealers will be approximately 14.0 million units for 2012, an amount unchanged from our previous estimate.  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.