SEC Connect
AUTOBYTEL BOARD AUTHORIZES ADDITIONAL
$3.0 MILLION FOR SHARE REPURCHASES
Irvine, Calif. – September 6, 2017 – Autobytel
Inc. (Nasdaq:ABTL), a
pioneer and leading provider of digital automotive services
connecting in-market car buyers with dealers and OEMs, today
announced that its Board of Directors has authorized the company to
repurchase up to $3.0 million of the company’s common stock.
This new authorization follows the completion of an earlier stock
repurchase program.
The
company may repurchase shares of its common stock from time to time
on the open market and/or in private transactions. The company will
fund any repurchases through the use of available cash. The timing
and actual number of shares repurchased will depend upon a variety
of factors, including price, market conditions and other legal,
regulatory and corporate considerations at the company’s sole
discretion. The repurchase authorizations do not obligate the
company to repurchase any particular number of shares. The
authorizations may be increased or otherwise modified, renewed,
suspended or terminated by the company at any time, without prior
notice.
Tax Benefit Preservation Plan
At
December 31, 2016, the company had approximately $75.8 million in
available net operating loss carryforwards (“NOLs”) for U.S. federal income tax
purposes. In light of the recent stock repurchases, the company
reminds stockholders about the company’s Tax Benefit
Preservation Plan dated May 26, 2010, as amended on April 14, 2014
and May 26, 2017 (as amended, the “Plan”) between the company and
Computershare Trust Company, N.A., as rights agent. The Plan was
adopted by the company’s Board of Directors to preserve the
company’s NOLs and other tax attributes and thus reduce the
risk of a possible change of ownership under Section 382 of the
Internal Revenue Code. Any such change of ownership under Section
382 would limit or eliminate the ability of the company to use its
existing NOLs for federal income tax purposes. In general, an
ownership change will occur if the company’s “5-percent
shareholders,” for purposes of Section 382, collectively
increase their ownership in the company by an aggregate of more
than 50 percentage points over a rolling three-year period. The
Plan is designed to reduce the likelihood that the company
experiences such an ownership change by discouraging any person or
group from becoming a new 5-percent shareholder under Section 382.
Rights issued under the Plan could be triggered upon the
acquisition by any person or group of 4.9% or more of the
company’s outstanding common stock and could result in
substantial dilution of the acquirer’s percentage ownership
in the company. There is no guarantee that the Plan will achieve
the objective of preserving the value of the company’s
NOLs.
As of
September 1, 2017, there were 12,722,948 shares of the
company’s common stock, $0.001 par value, outstanding.
Persons or groups considering the acquisition of shares of
beneficial ownership of the company’s common stock should
first evaluate their percentage ownership based on this revised
outstanding share number to ensure that the acquisition of shares
does not result in beneficial ownership of 4.9% or more of
outstanding shares.
For
more information regarding the Plan, please visit http://investor.autobytel.com/tax.cfm.
About Autobytel Inc.
Autobytel
Inc. provides high-quality consumer leads, clicks and associated
marketing services to automotive dealers and manufacturers
throughout the United States. The company also provides consumers
with robust and original online automotive content to help them
make informed car-buying decisions. The company pioneered the
automotive Internet in 1995 with its flagship website www.autobytel.com and
has since helped tens of millions of automotive consumers research
vehicles; connected thousands of dealers nationwide with motivated
car buyers; and has helped every major automaker market its brand
online.
Investors
and other interested parties can receive Autobytel news alerts and
special event invitations by accessing the online registration form
at investor.autobytel.com/alerts.cfm.
Forward-Looking Statements Disclaimer
The
statements contained in this press release that are not historical
facts are forward-looking statements under the federal securities
laws. Words such as “anticipates,” “could,”
“may,” “estimates,” “expects,”
“projects,” “intends,”
“pending,” “plans,” “believes,”
“will” and words of similar substance, or the negative
of those words, used in connection with any discussion of future
operations or financial performance identify forward-looking
statements. In particular, statements regarding expectations and
opportunities, new product expectations and capabilities, and our
outlook regarding our performance and growth are forward-looking
statements. These forward-looking statements are not guarantees of
future performance and involve assumptions and risks and
uncertainties that are difficult to predict. Actual outcomes and
results may differ materially from what is expressed in, or implied
by, these forward-looking statements. The company 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; the financial condition of automobile manufacturers and
dealers; disruptions in automobile production; changes in fuel
prices; the economic impact of terrorist attacks, political
revolutions or military actions; failure of our internet security
measures; dealer attrition; pressure on dealer fees; increased or
unexpected competition; the failure of new products and services to
meet expectations; failure to retain key employees or attract and
integrate new employees; actual costs and expenses exceeding
charges taken by the company; changes in laws and regulations;
costs of legal matters, including, defending lawsuits and
undertaking investigations and related matters; and other matters
disclosed in the company’s filings with the Securities and
Exchange Commission. Investors are strongly encouraged to review
the company’s Annual Report on Form 10-K for the year ended
December 31, 2016 and other filings with the Securities and
Exchange Commission for a discussion of risks and uncertainties
that could affect the business, operating results or financial
condition of the company and the market price of the
company’s stock.
Company Contact
Kimberly
Boren
Chief
Financial Officer
949-862-1396
kimb@autobytel.com
Investor Relations Contact
Sean
Mansouri or Cody Slach
Liolios
Investor Relations
949-574-3860
ABTL@liolios.com
