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Filed by autobytel.com inc.
Pursuant to Rule 425 under the
Securities Act of 1933 and deemed
filed pursuant to Rule 14a-12 of the
Securities Exchange Act of 1934
Subject Company:Autoweb.com, Inc.
Commission File No. 000-25577
AT AUTOBYTEL.COM:
Amit Kothari, Vice President, Corporate Controller
infoearnings@autobytel.com
949/862-1362
Melanie Webber, Director, Corporate Communications
melaniew@autobytel.com
949/862-3023
AUTOBYTEL.COM REPORTS FIRST QUARTER 2001 RESULTS
Net Loss Cut in Half, Operating Loss Declines Significantly on Stable Revenue,
Placing Company on Path to Profitability for Third Quarter of 2001
IRVINE, CA -APRIL 26, 2001- Autobytel.com (Nasdaq: ABTL) today reported
financial results for the quarter ended March 31, 2001.
Revenue for the first quarter was $16.7 million, up 10 percent from revenue of
$15.1 million in the same quarter of the prior year, and down 1 percent
sequentially from revenue of $16.8 million in the quarter ended December 31,
2000. In the quarter, for the first time, we recognized $1.4 million related to
an automotive consulting project. The portion of total revenue from
international fees and licenses and from services such as finance, insurance and
web site development was 14 percent for the quarter.
The operating loss in the quarter declined to $5.3 million, compared with an
operating loss of $9.6 million in the same quarter a year ago, and an operating
loss of $6.7 million in the quarter ended December 31, 2000. It was the third
consecutive quarter Autobytel.com significantly lowered its operating loss.
The net loss in the first quarter was $4.1 million, or $0.20 per share, compared
with a net loss of $8.1 million, or $0.42 per share, in the same quarter of the
prior year, and with a net loss of $3.3 million, or $0.16 per share, in the
quarter ended December 31, 2000.
As of March 31, 2001, Autobytel.com's cash and cash equivalents were $75.1
million, including $34.6 million that is reserved for the operation of Autobytel
Europe. The Company used $6.9 million in cash in the first quarter.
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Autobytel.com Reports First Quarter Results
April 26, 2001
Page 2
"In light of the difficult economic environment, we continue to be pleased with
our results and progress," said Mark Lorimer, president and CEO of
Autobytel.com. "We maintained stable revenue and significantly reduced our
operating loss and cost of customer acquisition by aligning our marketing costs
and other expenses with the current opportunities in the marketplace."
OUTLOOK FOR 2001
The Company is providing the following guidance for the second quarter of 2001:
revenue in the range of $16.0 to $16.5 million, with a per share loss in the
range of $0.09 to $0.11. "We expect to continue to lower our customer
acquisition cost, and take further steps to decrease overall expenses," said
Lorimer. "Those steps may include continued reduction in advertising, marketing
and other costs, and renegotiation of supplier and portal relationships on more
favorable terms."
"Given an uncertain outlook for both the auto industry and e-commerce in
general, and our potential combination with Autoweb, we lack sufficient
visibility to provide specific revenue and EPS guidance for the third and fourth
quarters at this time," said Lorimer. "However, as a result of our success in
reducing costs, we moved closer to our goal of profitability, which we expect to
achieve in the third quarter of this year. Our strong cash position,
increasingly efficient operations, and market leadership position should allow
us to aggressively pursue opportunities as the market improves."
FIRST QUARTER HIGHLIGHTS
According to Lorimer, two recent developments highlight the Company's market
leadership position.
"Our recent agreement to combine with Autoweb, which we expect to close early in
the third quarter, will not only expand our market share lead and extend our
dealer network, it should make Autobytel.com a leader in automotive information
services and provide us with significant manufacturer relationships," he said.
"Furthermore, we reiterate our belief that the combined companies will achieve
profitability in the third quarter."
"Also, our recent agreement with General Motors to test the locate-to-order
business model in the Washington, D.C. market demonstrates our unique ability to
partner with and provide valuable services to the auto manufacturers," continued
Lorimer. "We believe that our brand and marketing strengths, technology
development expertise, and ability to work with dealer networks through
training, management and customer services make Autobytel.com an attractive
partner for others in the industry, potentially providing a source of high
margin growth in the future."
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Autobytel.com Reports First Quarter Results
April 26, 2001
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CONFERENCE CALL
A conference call to discuss first quarter 2001 financial results will be web
cast live on Thursday, April 26, 2001, at 4:30 PM EDT. Links to the web cast
conference call follow:
http://www.videonewswire.com/AUTOBYTEL/042601/
http://www.vcall.com/NASApp/VCall/EventPage?ID=73440
Replays will be available at both links for 90 days. A replay of the call will
also be available through May 26, 2001 by dialing (800) 642-1687 or (706)
645-9291, code #790546
ABOUT AUTOBYTEL.COM INC.
autobytel.com inc. (Nasdaq:ABTL), the global leader in online automotive
commerce, brings car buyers, owners, and sellers together in a trusted
environment, empowered by the Internet. Through its extensive automotive content
and multiple purchasing, financing, insurance and service options, Autobytel.com
offers consumers choice and peace of mind throughout the automotive lifecycle,
while providing its network of accredited dealers and automotive services
partners the most efficient way to reach online car buyers and owners.
Autobytel.com and its wholly-owned subsidiary, A.I.N. Corporation (Carsmart),
have a network of dealers nationwide and are the seventh largest generator of
automotive sales in the United States, just behind GM, Ford, DaimlerChrysler,
Toyota, Honda and Nissan. Autobytel.com has been ranked #1 in Dealer
Satisfaction with Online Buying Services for three years in a row by J.D. Power
and Associates.(1) Autobytel.com's low-cost, no-haggle car-buying program is
available in the U.S., Canada (www.autobytel.ca), the United Kingdom
(www.autobytel.co.uk), Sweden (www.autobytel.se), Netherlands
(www.autobytel.nl), Japan (www.autobytel-japan.com), Australia
(www.autobytel.com.au) and Spain (www.autobytel.es). Headquartered in Irvine,
California, Autobytel.com is recognized as the company that transformed the $1
trillion new car industry when it invented online car buying.
- -----------
(1) J.D. Power and Associates 1998 - 2000 Dealer Satisfaction With Online Buying
Services Studies(SM). 2000 study conducted among dealership Internet
specialists who completed 2,144 evaluations of individual services.
www.jdpower.com.
The statements contained in this press release that are not historical facts are
forward-looking statements under the federal securities laws. These
forward-looking statements are not guarantees of future performance and involve
certain risks, uncertainties and assumptions that are difficult to predict.
Actual outcomes and results may differ materially from what is expressed in, or
implied by, such forward-looking statements. Autobytel.com undertakes no
obligation to update publicly any forward-looking statements, whether as a
result of new information, future events or otherwise. Among the important
factors that could cause actual results to differ materially from those
expressed in, or implied by, the forward-looking statements are changes in
general economic conditions, increased or unexpected competition, the failure to
realize anticipated synergies related to the proposed merger with Autoweb,
failure to obtain required stockholder or regulatory approvals or the merger not
closing for any other reason, failure of the combined company to retain and hire
key employees, difficulties in successfully integrating the parties' businesses
and technologies and other matters disclosed in Autobytel.com's filings with the
Securities and Exchange Commission. Investors are strongly encouraged to review
our annual report on Form 10-K for the year ended December 31, 2000, and other
reports on file with the Securities and Exchange Commission for a discussion of
risks and uncertainties that could affect operating results and the market price
of our stock.
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AUTOBYTEL.COM INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
ASSETS
March 31, December 31,
2001 2000
--------- ------------
Current assets:
Cash and cash equivalents, includes restricted
amounts of $16,028 and $15,029, respectively $ 75,082 $ 81,945
Accounts receivable, net of allowance for doubtful
accounts of $1,821 and $1,494, respectively 7,405 6,638
Prepaid expenses and other current assets 3,481 4,127
--------- ---------
Total current assets 85,968 92,710
Property and equipment, net 2,031 2,537
Investments 1,165 1,353
Goodwill, net 23,334 23,755
Capitalized software in process 5,603 3,338
Notes receivable 639 530
Other assets 84 86
--------- ---------
Total assets $ 118,824 $ 124,309
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 10,176 $ 9,828
Accrued expenses 6,175 7,519
Deferred revenues 5,862 6,360
Customer deposits 204 185
Other current liabilities 1,429 371
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Total current liabilities 23,846 24,263
Other long-term liabilities -- 47
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Total liabilities 23,846 24,310
Minority interest 8,787 8,193
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value; 200,000,000 shares
authorized; 20,364,070 and 20,336,083 shares
issued and outstanding, respectively 20 20
Warrants 1,332 1,332
Additional paid-in capital 187,380 186,097
Accumulated other comprehensive loss (2,838) (16)
Accumulated deficit (99,703) (95,627)
--------- ---------
Total stockholders' equity 86,191 91,806
--------- ---------
Total liabilities and stockholders' equity $ 118,824 $ 124,309
========= =========
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AUTOBYTEL.COM INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)
Three Months Ended March 31,
----------------------------
2001 2000
------------ ------------
Revenue $ 16,653 $ 15,100
Operating expenses:
Sales and marketing 13,346 16,874
Product and technology development 3,988 5,033
General and administrative 3,604 2,766
Restructuring costs 992 --
----------- -----------
Total operating expenses 21,930 24,673
----------- -----------
Loss from operations (5,277) (9,573)
Interest income, net 1,150 1,515
Foreign currency exchange gain (loss) 717 --
Equity losses in unconsolidated subsidiary (500) --
----------- -----------
Loss before minority interest losses
and provision for income taxes (3,910) (8,058)
Minority interest losses (128) --
----------- -----------
Loss before provision for income taxes (4,038) (8,058)
Provision for income taxes 38 20
----------- -----------
Net loss $ (4,076) $ (8,078)
=========== ===========
Basic and diluted net loss per share $ (0.20) $ (0.42)
=========== ===========
Shares used in computing basic and
diluted net loss per share 20,354,430 19,263,638
=========== ===========
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