8-K 1 d8k.htm AUTOBYTEL INC. FORM 8-K Prepared by R.R. Donnelley Financial -- Autobytel Inc. Form 8-K
 
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: July 25, 2002
 
 
Autobytel Inc.
(Exact name of registrant as specified in its charter)
 
0-22239
(Commission File Number)
 
Delaware
  
33-0711569
(State or other jurisdiction of
incorporation or organization)
  
(I.R.S. Employer
Identification No.)
 
18872 MacArthur Boulevard
Irvine, California 92612
(Address of principal executive offices, with zip code)
 
(949) 225-4500
(Registrant’s telephone number, including area code)
 

 
Item 5.    OTHER EVENTS
 
On July 25, 2002, Autobytel Inc., a Delaware corporation (“Autobytel”), announced its financial results for the quarter ended June 30, 2002. A copy of Autobytel’s press release announcing these financial results is attached as Exhibit 99.1 hereto and incorporated by reference herein.
 
The press release filed as an exhibit to this report includes “safe harbor” language, pursuant to the Private Securities Litigation Reform Act of 1995, indicating that certain statements about Autobytel’s business contained in the press release are “forward-looking” rather than “historic.”
 
Item 7.    FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
 
(c)    EXHIBITS
 
99.1    Press Release dated July 25, 2002
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
    
Autobytel Inc.
      
Date: July 25, 2002                                                     
   
By: /s/ Hoshi Printer
      ____________________________
    
Hoshi Printer
Executive Vice President and Chief Financial
Officer (Principal Financial Officer)
 

2

 
INDEX TO EXHIBITS
 
Exhibit Number
   
Description
99.1
   
Press Release dated July 25, 2002

3

Autobytel Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)
(unaudited)
 
    
Second Quarter Ended
June 30, 2002 (a)
     
Second Quarter Ended
June 30, 2001
  
    
GAAP
       
Pro Forma
Adjustments
     
Pro Forma(b)
     
GAAP
     
Pro Forma
Adjustments
     
Pro Forma(b)
  
Revenues
                                                        
Program fees
   
$
15,441
 
     
$
—
 
   
$
15,441
 
   
$
11,541
 
   
$
—  
 
   
$
11,541
 
Enterprise sales
   
 
2,743
 
     
 
—
 
   
 
2,743
 
   
 
1,600
 
   
 
—  
 
   
 
1,600
 
Advertising
   
 
1,639
 
     
 
—
 
   
 
1,639
 
   
 
525
 
   
 
—  
 
   
 
525
 
Other products and services
   
 
1,008
 
     
 
—
 
   
 
1,008
 
   
 
2,062
 
   
 
—  
 
   
 
2,062
 
    
    
  
  
  
  
Total revenues
   
 
20,831
 
     
 
—
 
   
 
20,831
 
   
 
15,728
 
   
 
—  
 
   
 
15,728
 
    
    
  
  
  
  
Operating expenses:
                                                        
Sales and marketing
   
 
13,236
 
     
 
(38
)(c)
   
 
13,198
 
   
 
12,833
 
   
 
(51
)(c)
   
 
12,782
 
Product and technology development
   
 
5,723
 
     
 
(868
)(c)
   
 
4,855
 
   
 
4,614
 
   
 
(259
)(c)
   
 
4,355
 
General and administrative
   
 
2,404
 
     
 
(43
)(c)
   
 
2,361
 
   
 
4,016
 
   
 
(529
)(c)
   
 
3,487
 
Goodwill impairment
   
 
—  
 
     
 
—
 
   
 
—  
 
   
 
21,614
 
   
 
(21,614
)(d)
   
 
—  
 
Autobytel.Europe restructuring and other
international charges
   
 
—  
 
     
 
—
 
   
 
—  
 
   
 
11,202
 
   
 
(11,202
)(e)
   
 
—  
 
Domestic restructuring and other (benefits) charges
   
 
(58
)
     
 
58
(f)
   
 
—  
 
   
 
869
 
   
 
(869
)(g)
   
 
—  
 
    
    
  
  
  
  
Total operating expenses
   
 
21,305
 
     
 
(891
)
   
 
20,414
 
   
 
55,148
 
   
 
(34,524
)
   
 
20,624
 
    
    
  
  
  
  
Loss from operations
   
 
(474
)
                       
 
(39,420
)
                  
Pro forma EBITDA (b)
              
 
891
 
   
 
417
 
            
 
34,524
 
   
 
(4,896
)
Interest income, net
   
 
113
 
     
 
—
 
   
 
113
 
   
 
923
 
   
 
—  
 
   
 
923
 
Foreign currency exchange gain (loss)
   
 
(13
)
     
 
—
 
   
 
(13
)
   
 
(259
)
   
 
—  
 
   
 
(259
)
Equity loss in unconsolidated subsidiaries
   
 
(232
)
     
 
—
 
   
 
(232
)
   
 
—  
 
   
 
—  
 
   
 
—
 
    
    
  
  
  
  
Income (loss) before minority interest
and income taxes
   
 
(606
)
     
 
891
 
   
 
285
 
   
 
(38,756
)
   
 
34,524
 
   
 
(4,232
)
Minority interest
   
 
—  
 
     
 
—
 
   
 
—  
 
   
 
2,105
 
   
 
—  
 
   
 
2,105
 
    
    
  
  
  
  
Income (loss) before income taxes
   
 
(606
)
     
 
891
 
   
 
285
 
   
 
(36,651
)
   
 
34,524
 
   
 
(2,127
)
Provision for income taxes
   
 
1
 
     
 
—
 
   
 
1
 
   
 
(10
)
   
 
—
 
   
 
(10
)
    
    
  
  
  
  
Net income (loss)
   
$
(607
)
     
$
891
 
   
$
284
 
   
$
(36,641
)
   
$
34,524
 
   
$
(2,117
)
    
    
  
  
  
  
                                                         
Loss from operations/Pro forma EBITDA per share
                                                        
Basic
   
$
(0.02
)
              
$
0.01
 
   
$
(1.94
)
            
$
(0.24
)
Diluted
   
$
(0.02
)
              
$
0.01
 
   
$
(1.94
)
            
$
(0.24
)
                                                         
Net income (loss) per share
                                                        
Basic
   
$
(0.02
)
              
$
0.01
 
   
$
(1.80
)
            
$
(0.10
)
Diluted
   
$
(0.02
)
              
$
0.01
 
   
$
(1.80
)
            
$
(0.10
)
                                                         
Shares used in computing income (loss) per share
                                                        
Basic
   
 
31,137,392
 
              
 
31,137,392
 
   
 
20,364,619
 
            
 
20,364,619
 
Diluted
   
 
31,137,392
 
              
 
35,767,825
 
   
 
20,364,619
 
            
 
20,364,619
 
 
Notes:
(a)
 
Results in the second quarter of 2002 include Autoweb which was acquired on August 14, 2001.
(b)
 
The Pro Forma Consolidated Statements of Operations are not presentations in accordance with GAAP (Generally Accepted Accounting Principles) as they exclude the effects of notes (c) through (g).
(c)
 
Adjustments for depreciation, amortization and stock compensation expenses of $949 and $839 in the second quarter of 2002 and 2001, respectively.
(d)
 
Adjustment for impairment of goodwill related to our acquisition of A.I.N. Corporation.
(e)
 
Adjustments for the restructuring of Autobytel.Europe, the write-off of obsolete international software and the write-off of investments in European joint ventures.
(f)
 
Adjustments for benefits related to arbitration recovery and the reduction of legal fees and negotiated settlements net of charges related to our reduction in workforce, excess facilites and costs related to an abandoned transaction.
(g)
 
Adjustments for contract termination costs related to online advertising and our aftermarket program, as well as the write-off of previously capitalized software related to our aftermarket program.

4

 
Autobytel Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)
 
(unaudited)
 
    
Six Months Ended June 30, 2002 (a)
     
Six Months Ended June 30, 2001
  
    
GAAP
     
Pro Forma
Adjustments
     
Pro Forma  (b)
     
GAAP
     
Pro Forma
Adjustments
     
Pro Forma  (b)
  
Revenues
                                                      
Program fees
   
$
30,853
 
   
$
—  
 
   
$
30,853
 
   
$
24,375
 
   
$
—  
 
   
$
24,375
 
Enterprise sales
   
 
4,727
 
   
 
—  
 
   
 
4,727
 
   
 
3,000
 
   
 
—  
 
   
 
3,000
 
Advertising
   
 
3,396
 
   
 
—  
 
   
 
3,396
 
   
 
718
 
   
 
—  
 
   
 
718
 
Other products and services
   
 
2,588
 
   
 
—  
 
   
 
2,588
 
   
 
4,288
 
   
 
—  
 
   
 
4,288
 
    
  
  
  
  
  
Total revenues
   
 
41,564
 
   
 
—  
 
   
 
41,564
 
   
 
32,381
 
   
 
—  
 
   
 
32,381
 
    
  
  
  
  
  
Operating expenses:
                                                      
Sales and marketing
   
 
25,496
 
   
 
(69
)  (c)
   
 
25,427
 
   
 
26,179
 
   
 
(118
)  (c)
   
 
26,061
 
Product and technology development
   
 
11,476
 
   
 
(1,702
)  (c)
   
 
9,774
 
   
 
8,602
 
   
 
(461
)  (c)
   
 
8,141
 
General and administrative
   
 
5,461
 
   
 
(99
)  (c)
   
 
5,362
 
   
 
7,620
 
   
 
(1,048
)  (c)
   
 
6,572
 
Goodwill impairment
   
 
—  
 
   
 
—  
 
   
 
—  
 
   
 
21,614
 
   
 
(21,614
)  (d)
   
 
—  
 
Autobytel.Europe restructuring, impairment and other international charges
   
 
15,015
 
   
 
(15,015
)  (e)
   
 
—  
 
   
 
11,202
 
   
 
(11,202
)  (f)
   
 
—  
 
Domestic restructuring and other (benefits) charges
   
 
(58
)
   
 
58
   (g)
   
 
—  
 
   
 
1,861
 
   
 
(1,861
)  (h)
   
 
—  
 
    
  
  
  
  
  
Total operating expenses
   
 
57,390
 
   
 
(16,827
)
   
 
40,563
 
   
 
77,078
 
   
 
(36,304
)
   
 
40,774
 
    
  
  
  
  
  
Loss from operations
   
 
(15,826
)
                     
 
(44,697
)
                  
Pro forma EBITDA (b)
            
 
16,827
 
   
 
1,001
 
            
 
36,304
 
   
 
(8,393
)
Loss on recapitalization of Autobytel.Europe
   
 
(4,168
)
   
 
4,168
   (i)
   
 
—
 
   
 
—  
 
   
 
—  
 
   
 
—  
 
Interest income, net
   
 
504
 
   
 
—  
 
   
 
504
 
   
 
2,073
 
   
 
—  
 
   
 
2,073
 
Foreign currency exchange gain (loss)
   
 
(12
)
   
 
—  
 
   
 
(12
)
   
 
458
 
   
 
—  
 
   
 
458
 
Equity loss in unconsolidated subsidiaries
   
 
(432
)
   
 
—  
 
   
 
(432
)
   
 
(500
)
   
 
—  
 
   
 
(500
)
    
  
  
  
  
  
Income (loss) before minority interest
and income taxes
   
 
(19,934
)
   
 
20,995
 
   
 
1,061
 
   
 
(42,666
)
   
 
36,304
 
   
 
(6,362
)
Minority interest
   
 
866
 
   
 
—  
 
   
 
866
 
   
 
1,977
 
   
 
—  
 
   
 
1,977
 
    
  
  
  
  
  
Income (loss) before income taxes
   
 
(19,068
)
   
 
20,995
 
   
 
1,927
 
   
 
(40,689
)
   
 
36,304
 
   
 
(4,385
)
Provision for income taxes
   
 
6
 
   
 
—  
 
   
 
6
 
   
 
28
 
   
 
—  
 
   
 
28
 
    
  
  
  
  
  
Net income (loss)
   
$
(19,074
)
   
$
20,995
 
   
$
1,921
 
   
$
(40,717
)
   
$
36,304
 
   
$
(4,413
)
    
  
  
  
  
  
Loss from operations/Pro Forma EBITDA per share
                                                      
Basic
   
$
(0.51
)
            
$
0.03
 
   
$
(2.20
)
            
$
(0.41
)
Diluted
   
$
(0.51
)
            
$
0.03
 
   
$
(2.20
)
            
$
(0.41
)
Net income (loss) per share
                                                      
Basic
   
$
(0.61
)
            
$
0.06
 
   
$
(2.00
)
            
$
(0.22
)
Diluted
   
$
(0.61
)
            
$
0.05
 
   
$
(2.00
)
            
$
(0.22
)
Shares used in computing income (loss) per share
                                                      
Basic
   
 
31,103,469
 
            
 
31,103,469
 
   
 
20,359,553
 
            
 
20,359,553
 
Diluted
   
 
31,103,469
 
            
 
35,733,902
 
   
 
20,359,553
 
            
 
20,359,553
 
 
Notes:
(a)
 
Results in the six months ended June 30, 2002 include Autoweb which was acquired on August 14, 2001.
(b)
 
The Pro Forma Consolidated Statements of Operations are not presentations in accordance with GAAP (Generally Accepted Accounting Principles) as they exclude the effects of notes (c) through (i).
(c)
 
Adjustments for depreciation, amortization and stock compensation expenses of $1,870 and $1,627 in the six months ended 2002 and 2001, respectively.
(d)
 
Adjustment for impairment of goodwill related to our acquistion of A.I.N. Corporation.
(e)
 
Adjustments for the change in Autobytel.Europe’s capital structure and impairment of our investment in Autobytel.Europe.
(f)
 
Adjustments for the restructuring of Autobytel.Europe, the write-off of obsolete international software and the write-off of investments in European joint ventures.
(g)
 
Adjustments for benefits related to arbitration recovery and the reduction of legal fees and negotiated settlements net of charges related to our reduction in workforce, excess facilites and costs related to an abandoned transaction.
(h)
 
Adjustments for the restructuring of our automotive operations group, contract termination costs related to online advertising and our aftermarket program, as well as the write-off of previously capitalized software related to our aftermarket program.
(i)
 
Adjustment for loss recognized on reduction of ownership in Autobytel.Europe from 76.5% to 49%.

5

 
Autobytel Inc.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
 
ASSETS
              
    
June 30,
2002
     
December 31,
2001
  
    
 
(unaudited
)
         
Current assets:
                  
Domestic cash and cash equivalents
   
$
23,415
 
   
$
30,006
 
International cash and cash equivalents
   
 
—  
 
   
 
28,784
 
Restricted cash
   
 
29
 
   
 
3,047
 
Accounts receivable, net of allowance for doubtful accounts
of  $4,552 and $7,109, respectively
   
 
9,905
 
   
 
8,519
 
Prepaid expenses and other current assets
   
 
4,035
 
   
 
4,419
 
    
  
Total current assets
   
 
37,384
 
   
 
74,775
 
Property and equipment, net
   
 
2,599
 
   
 
2,889
 
Capitalized software, net
   
 
4,668
 
   
 
4,319
 
Investment in unconsolidated subsidiary
   
 
4,747
 
   
 
—  
 
Goodwill, net
   
 
8,644
 
   
 
8,644
 
Other assets
   
 
96
 
   
 
154
 
    
  
Total assets
   
$
58,138
 
   
$
90,781
 
    
  
LIABILITIES AND STOCKHOLDERS’ EQUITY
                  
Current liabilities:
                  
Accounts payable
   
$
4,673
 
   
$
9,108
 
Accrued expenses
   
 
4,283
 
   
 
9,005
 
Deferred revenues
   
 
4,411
 
   
 
4,708
 
Customer deposits
   
 
86
 
   
 
92
 
Other current liabilities
   
 
338
 
   
 
300
 
    
  
Total current liabilities
   
 
13,791
 
   
 
23,213
 
Long-term liabilities
   
 
366
 
   
 
—  
 
    
  
Total liabilities
   
 
14,157
 
   
 
23,213
 
    
  
                   
Minority interest
   
 
—  
 
   
 
7,173
 
                   
Commitments and contingencies
                  
                   
Stockholders’ equity:
                  
Preferred stock, $0.001 par value; 11,445,187 shares authorized
   
 
—  
 
   
 
—  
 
Common stock, $0.001 par value; 200,000,000 shares authorized; 31,138,198 and 30,969,377 shares issued and outstanding, respectively
   
 
31
 
   
 
31
 
Additional paid-in capital
   
 
203,518
 
   
 
203,280
 
Accumulated other comprehensive loss
   
 
(16
)
   
 
(2,438
)
Accumulated deficit
   
 
(159,552
)
   
 
(140,478
)
    
  
Total stockholders’ equity
   
 
43,981
 
   
 
60,395
 
    
  
Total liabilities and stockholders’ equity
   
$
58,138
 
   
$
90,781
 
    
  
 
Note:
Balances as of June 30, 2002 exclude consolidation of Autobytel.Europe.

6