Cars.com (CARS) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Cars.com Inc.
Quarterly Financial Information
Unaudited (in thousands)
	Three months ended									Year ended		Three months ended								Year to date
	March 31, 2016			June 30, 2016		September 30, 2016		December 31, 2016		December 31, 2016		March 31, 2017		June 30, 2017			September 30, 2017			September 30, 2017
Revenues:
Retail:
Direct revenue	$	81,805		$	82,123	$	84,651	$	84,845	$	333,424	$	83,635	$	83,273		$	82,504		$	249,412
National advertising revenue		24,251			27,756		31,214		31,114		114,335		24,936		28,441			32,002			85,379
Other revenue		3,549			3,701		3,963		3,804		15,017		3,674		3,996			4,319			11,989
Total retail revenue		109,605			113,580		119,828		119,763		462,776		112,245		115,710			118,825			346,780
Wholesale revenue		42,884			43,070		42,467		41,909		170,330		40,929		40,914			41,074			122,917
Total revenues		152,489			156,650		162,295		161,672		633,106		153,174		156,624			159,899			469,697
Operating expenses:
Cost of revenue and operations (a)		13,559			13,628		15,033		14,574		56,794		15,902		15,540			18,176			49,618
Product and technology (a)		19,150			19,575		17,436		16,909		73,070		18,917		19,522			18,422			56,861
Marketing and sales		58,342			53,263		48,670		50,757		211,032		59,001		50,512			50,733			160,246
General and administrative (b)		5,421			5,987		5,736		6,781		23,925		7,739		17,445			9,180			34,364
Affiliate revenue share		1,994			2,108		2,162		2,265		8,529		2,361		2,355			2,121			6,837
Depreciation and amortization (b)		20,245			20,214		21,090		21,557		83,106		22,073		22,377			21,893			66,343
Total operating expenses		118,711			114,775		110,127		112,843		456,456		125,993		127,751			120,525			374,269
Operating income		33,778			41,875		52,168		48,829		176,650		27,181		28,873			39,374			95,428
Nonoperating income (expense):
Interest income (expense), net		-			12		41		41		94		41		(1,770	)		(5,431	)		(7,160	)
Other income (loss), net		(79	)		133		88		72		214		84		51			64			199
Income before taxes		33,699			42,020		52,297		48,942		176,958		27,306		27,154			34,007			88,467
Provision for income taxes		-			-		452		136		588		418		2,345			13,019			15,782
Net income	$	33,699		$	42,020	$	51,845	$	48,806	$	176,370	$	26,888	$	24,809		$	20,988		$	72,685

Exhibit 99.1

Net income	$	33,699	$	42,020		$	51,845		$	48,806		$	176,370		$	26,888		$	24,809	$	20,988	$	72,685
Non-GAAP reconciliation to adjusted EBITDA
Interest (income) expense, net		-		(12	)		(41	)		(41	)		(94	)		(41	)		1,770		5,431		7,160
Provision for income taxes		-		-			452			136			588			418			2,345		13,019		15,782
Depreciation and amortization (c)		20,245		20,214			21,090			21,557			83,106			22,073			22,377		21,893		66,343
Stock-based compensation		-		-			-			-			-			-			481		1,012		1,493
Transaction related costs and other		-		-			-			-			-			104			4,560		317		4,981
Restructuring costs		-		-			-			-			-			-			1,671		280		1,951
Costs related to the headquarters move		-		-			-			-			-			697			2,731		130		3,558
Write-off and loss on assets		-		-			-			-			-			-			1,383		63		1,446
Adjusted EBITDA	$	53,944	$	62,222		$	73,346		$	70,458		$	259,970		$	50,139		$	62,127	$	63,133	$	175,399
The presentation changes have no impact on Total operating expenses, Net income, and Adjusted EBITDA.
(a) Cost of revenue and operations has been reclassified from Product support, technology and operations into a separate line item.  Product support, technology and operations has been renamed Product and technology.
(b) Depreciation has been reclassified from General and administrative into a new line item named Depreciation and amortization.
(c) Depreciation and amortization have been combined in the Non-GAAP reconciliation to adjusted EBITDA.  Previously, these balances were presented separately.