Delaware
|
000-51653
|
52-2336218
|
||
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
||
1111 Marcus Ave., Suite M04, Lake Success, NY
|
11042
|
|
(Address of principal executive offices)
|
(Zip Code)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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|
||||||||
EX-10.1: OMNIBUS AGREEMENT, dated as of December 20, 2011, among Chrome Systems, Inc., Autodata Solutions, Inc., Autodata Solutions Company and AutoChrome Company (incorporated by reference to DealerTrack’s current report on Form 8-K filed on December 21, 2011).
|
||||||||
EX-99.1: Unaudited pro forma condensed combined financial information of DealerTrack Holdings, Inc.
|
||||||||
Exhibit
No.
|
Description
|
|
10.1
|
OMNIBUS AGREEMENT, dated as of December 20, 2011, among Chrome Systems, Inc., Autodata Solutions, Inc., Autodata Solutions Company and AutoChrome Company (incorporated by reference to DealerTrack’s current report on Form 8-K filed on December 21, 2011).
|
|
99.1
|
Unaudited pro forma condensed combined financial information of DealerTrack Holdings, Inc.
|
DealerTrack Holdings, Inc.
|
|
By:
|
|
Eric D. Jacobs
|
|
Senior Vice President, Chief Financial and Administrative Officer
|
Exhibit
No.
|
Description
|
|
10.1
|
OMNIBUS AGREEMENT, dated as of December 20, 2011, among Chrome Systems, Inc., Autodata Solutions, Inc., Autodata Solutions Company and AutoChrome Company (incorporated by reference to DealerTrack’s current report on Form 8-K filed on December 21, 2011).
|
|
99.1
|
Unaudited pro forma condensed combined financial information of DealerTrack Holdings, Inc.
|
DealerTrack
September 30, 2011
(Note 2)
|
triVIN
(Note 3)
|
triVIN
Pro Forma
Adjustments
(Note 3)
|
ALG
(Note 4)
|
ALG
Pro Forma
Adjustments
(Note 5)
|
Chrome
(Note 6)
|
Chrome
Pro Forma
Adjustments
(Note 7)
|
Pro Forma
Combined
|
|||||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||||
Current Assets
|
||||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
$ | 64,951 | $ | - | $ | - | $ | (7,500 | ) | $ | - | $ | (1,750 | ) | $ | - | $ | 55,701 | ||||||||||||||||
Investments
|
44 | - | - | - | - | - | - | 44 | ||||||||||||||||||||||||||
Customer funds
|
2,054 | - | - | - | - | - | - | 2,054 | ||||||||||||||||||||||||||
Customer funds receivable
|
19,135 | - | - | - | - | - | - | 19,135 | ||||||||||||||||||||||||||
Accounts receivable, net of allowances
|
40,532 | - | - | (1,526 | ) | - | (2,806 | ) | - | 36,200 | ||||||||||||||||||||||||
Prepaid expenses and other current assets
|
25,092 | - | - | (720 | ) | - | (387 | ) | - | 23,985 | ||||||||||||||||||||||||
Total current assets
|
151,808 | - | - | (9,746 | ) | - | (4,943 | ) | - | 137,119 | ||||||||||||||||||||||||
Investments - long-term
|
- | - | - | - | 88,000 |
(a)
|
- | 44,051 |
(aa)
|
132,051 | ||||||||||||||||||||||||
Property and equipment, net
|
20,780 | - | - | (229 | ) | - | (467 | ) | - | 20,084 | ||||||||||||||||||||||||
Software and website development costs, net
|
36,538 | - | - | (1,524 | ) | - | (3,844 | ) | - | 31,170 | ||||||||||||||||||||||||
Intangible assets, net
|
100,978 | - | - | (2,531 | ) | 5,600 |
(b)
|
(2,223 | ) | - | 101,824 | |||||||||||||||||||||||
Goodwill
|
233,428 | - | - | (33,128 | ) | - | (8,087 | ) | - | 192,213 | ||||||||||||||||||||||||
Deferred tax assets - long-term
|
25,387 | - | - | - | 6,946 |
(c)
|
- | - | 32,333 | |||||||||||||||||||||||||
Other assets - long-term
|
13,949 | - | - | (32 | ) | - | (30 | ) | - | 13,887 | ||||||||||||||||||||||||
Total assets
|
$ | 582,868 | $ | - | $ | - | $ | (47,190 | ) | $ | 100,546 | $ | (19,594 | ) | $ | 44,051 | $ | 660,681 | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||||||||||||
Current liabilities
|
||||||||||||||||||||||||||||||||||
Accounts payable
|
$ | 5,959 | $ | - | $ | - | $ | - | $ | 2,636 |
(d)
|
$ | (249 | ) | $ | 513 |
(bb)
|
$ | 8,859 | |||||||||||||||
Accrued compensation and benefits
|
15,493 | - | - | (394 | ) | - | (1,042 | ) | - | 14,057 | ||||||||||||||||||||||||
Accrued liabilites - other
|
17,280 | - | - | (295 | ) | 1,129 |
(e)
|
(409 | ) | 190 |
(cc)
|
17,895 | ||||||||||||||||||||||
Customer funds payable
|
21,189 | - | - | - | - | - | - | 21,189 | ||||||||||||||||||||||||||
Deferred revenue
|
8,298 | - | - | (330 | ) | - | (1,330 | ) | - | 6,638 | ||||||||||||||||||||||||
Capital leases payable
|
317 | - | - | - | - | - | - | 317 | ||||||||||||||||||||||||||
Total current liabilities
|
68,536 | - | - | (1,019 | ) | 3,765 | (3,030 | ) | 703 | 68,955 | ||||||||||||||||||||||||
Long-term liabilities
|
||||||||||||||||||||||||||||||||||
Capital leases payable
|
126 | - | - | - | - | - | - | 126 | ||||||||||||||||||||||||||
Deferred tax liabilities
|
38,590 | - | - | (3,221 | ) | 14,370 |
(f)
|
(256 | ) | 8,400 |
(dd)
|
57,883 | ||||||||||||||||||||||
Deferred revenue
|
6,008 | - | - | (8 | ) | - | (373 | ) | - | 5,627 | ||||||||||||||||||||||||
Due to acquirees
|
10,336 | - | - | - | - | - | - | 10,336 | ||||||||||||||||||||||||||
Other liabilities
|
4,791 | - | - | (42 | ) | - | - | - | 4,749 | |||||||||||||||||||||||||
Total liabilities
|
128,387 | - | - | (4,290 | ) | 18,135 | (3,659 | ) | 9,103 | 147,676 | ||||||||||||||||||||||||
Total stockholders' equity
|
454,481 | - | - | (42,900 | ) | 82,411 |
(g)
|
(15,935 | ) | 34,948 |
(ee)
|
513,005 | ||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$ | 582,868 | $ | - | $ | - | $ | (47,190 | ) | $ | 100,546 | $ | (19,594 | ) | $ | 44,051 | $ | 660,681 |
DealerTrack
Nine Months Ended
September 30, 2011
(Note 2)
|
triVIN
One Month Ended
January 31, 2011
(Note 3)
|
triVIN
Pro Forma
Adjustments
(Note 8)
|
ALG
Nine Months Ended
September 30, 2011
(Note 4)
|
ALG
Pro Forma
Adjustments
(Note 9)
|
Chrome
Nine Months Ended
September 30, 2011
(Note 6)
|
Chrome
Pro Forma
Adjustments
(Note 10)
|
Pro Forma
Combined
|
||||||||||||||||||||||||||||
(in thousands, except share and per share amounts)
|
|||||||||||||||||||||||||||||||||||
Revenue
|
|||||||||||||||||||||||||||||||||||
Net revenue
|
$ | 262,035 | $ | 4,779 | $ | - | $ | (7,580 | ) | $ | 1,500 |
(I)
|
$ | (16,893 | ) | $ | - | $ | 243,841 | ||||||||||||||||
Operating expenses:
|
|||||||||||||||||||||||||||||||||||
Cost of revenue
|
145,942 | 3,996 | 1,557 |
(A)
|
(4,000 | ) | 1,028 |
(J)
|
(9,667 | ) | 375 |
(AA)
|
139,231 | ||||||||||||||||||||||
Product development
|
10,903 | 308 | - | (106 | ) | - | (1,148 | ) | - | 9,957 | |||||||||||||||||||||||||
Selling, general and administrative
|
93,340 | 5,315 | (4,900 | ) |
(B)
|
(1,524 | ) | (917 | ) |
(K)
|
(5,035 | ) | - | 86,279 | |||||||||||||||||||||
Total operating expenses
|
250,185 | 9,619 | (3,343 | ) | (5,630 | ) | 111 | (15,850 | ) | 375 | 235,467 | ||||||||||||||||||||||||
Income (loss) from operations
|
11,850 | (4,840 | ) | 3,343 | (1,950 | ) | 1,389 | (1,043 | ) | (375 | ) | 8,374 | |||||||||||||||||||||||
Interest income
|
270 | - | - | - | - | - | - | 270 | |||||||||||||||||||||||||||
Interest expense
|
(578 | ) | (352 | ) | 350 |
(C)
|
- | - | - | - | (580 | ) | |||||||||||||||||||||||
Other income
|
176 | (103 | ) | - | - | - | - | - | 73 | ||||||||||||||||||||||||||
Realized gain on securities
|
409 | - | - | - | - | - | - | 409 | |||||||||||||||||||||||||||
Income (loss) before (provision for) benefit from income taxes
|
12,127 | (5,295 | ) | 3,693 | (1,950 | ) | 1,389 | (1,043 | ) | (375 | ) | 8,546 | |||||||||||||||||||||||
(Provision for) benefit from income taxes, net
|
20,128 | 2,455 | (26,022 | ) |
(D)
|
523 | (513 | ) |
(L)
|
(14 | ) | 139 |
(BB)
|
(3,304 | ) | ||||||||||||||||||||
Net income (loss)
|
$ | 32,255 | $ | (2,840 | ) | $ | (22,329 | ) | $ | (1,427 | ) | $ | 876 | $ | (1,057 | ) | $ | (236 | ) | $ | 5,242 | ||||||||||||||
Basic net income per share
|
$ | 0.78 | $ | 0.13 | |||||||||||||||||||||||||||||||
Diluted net income per share
|
$ | 0.76 | $ | 0.12 | |||||||||||||||||||||||||||||||
Shares used in the calculation of net income per share:
|
|||||||||||||||||||||||||||||||||||
Basic
|
41,146,197 | 41,146,197 | |||||||||||||||||||||||||||||||||
Diluted
|
42,366,861 | 42,366,861 |
DealerTrack
Year Ended
December 31, 2010
(Note 2)
|
triVIN
Year Ended
December 31, 2010
(Note 3)
|
triVIN
Pro Forma
Adjustments
(Note 8)
|
ALG
Year Ended
December 31, 2010
(Note 4)
|
ALG
Pro Forma
Adjustments
(Note 9)
|
Chrome
Year Ended
December 31, 2010
(Note 6)
|
Chrome
Pro Forma
Adjustments
(Note 10)
|
Pro Forma
Combined
|
||||||||||||||||||||||||||||
(in thousands, except share and per share amounts)
|
|||||||||||||||||||||||||||||||||||
Revenue
|
|||||||||||||||||||||||||||||||||||
Net revenue
|
$ | 243,826 | $ | 56,353 | $ | - | $ | (8,574 | ) | 2,000 |
(I)
|
$ | (20,307 | ) | - | $ | 273,298 | ||||||||||||||||||
Operating expenses:
|
|||||||||||||||||||||||||||||||||||
Cost of revenue
|
124,070 | 37,260 | 9,172 |
(E)
|
(5,932 | ) | 1,370 |
(M)
|
(8,450 | ) | 500 |
(AA)
|
157,990 | ||||||||||||||||||||||
Product development
|
13,386 | 546 | - | (226 | ) | - | (2,333 | ) | - | 11,373 | |||||||||||||||||||||||||
Selling, general and administrative
|
105,715 | 16,907 | (240 | ) |
(F)
|
(1,891 | ) | - | (5,819 | ) | - | 114,672 | |||||||||||||||||||||||
Total operating expenses
|
243,171 | 54,713 | 8,932 | (8,049 | ) | 1,370 | (16,602 | ) | 500 | 284,035 | |||||||||||||||||||||||||
Income (loss) from operations
|
655 | 1,640 | (8,932 | ) | (525 | ) | 630 | (3,705 | ) | (500 | ) | (10,737 | ) | ||||||||||||||||||||||
Interest income
|
525 | - | - | - | - | - | - | 525 | |||||||||||||||||||||||||||
Interest expense
|
(175 | ) | (4,968 | ) | 4,937 |
(G)
|
68 | - | - | - | (138 | ) | |||||||||||||||||||||||
Other income
|
1,177 | 59 | - | - | - | - | - | 1,236 | |||||||||||||||||||||||||||
Realized gain on securities
|
582 | - | - | - | - | - | - | 582 | |||||||||||||||||||||||||||
Income (loss) before (provision for) benefit from income taxes
|
2,764 | (3,269 | ) | (3,995 | ) | (457 | ) | 630 | (3,705 | ) | (500 | ) | (8,532 | ) | |||||||||||||||||||||
(Provision for) benefit from income taxes, net
|
(30,597 | ) | 924 | 28,615 |
(H)
|
3,672 | (234 | ) |
(N)
|
4,358 | 186 |
(CC)
|
6,924 | ||||||||||||||||||||||
Net (loss) income
|
$ | (27,833 | ) | $ | (2,345 | ) | $ | 24,620 | $ | 3,215 | $ | 396 | $ | 653 | $ | (314 | ) | $ | (1,608 | ) | |||||||||||||||
Basic net (loss) per share
|
$ | (0.69 | ) | $ | (0.04 | ) | |||||||||||||||||||||||||||||
Diluted net (loss) per share
|
$ | (0.69 | ) | $ | (0.04 | ) | |||||||||||||||||||||||||||||
Shares used in the calculation of net income per share:
|
|||||||||||||||||||||||||||||||||||
Basic
|
40,322,939 | 40,322,939 | |||||||||||||||||||||||||||||||||
Diluted
|
40,322,939 | 40,322,939 |
(a)
|
The components of pro forma adjustment (a) are as follows (in thousands):
|
To record the investment in TrueCar.
|
$
|
75,000
|
||
To record the cash investment in TrueCar.
|
7,500
|
|
||
To record warrants received at the preliminary estimate of fair value.
|
5,500
|
|||
Total of pro forma adjustment (a)
|
$
|
88,000
|
(b)
|
To record perpetual, royalty-free data license at the preliminary estimate of fair value.
|
(c)
|
To record deferred tax asset valuation allowance adjustment as a result of the deferred tax liabilities generated from the disposition.
|
(d)
|
To record an accrual for unpaid professional fees related to the disposition as if it occurred on September 30, 2011.
|
(e)
|
To record impact to current taxes payable at a statutory tax rate of 37.0%.
|
(f)
|
To record deferred tax liabilities resulting from the transaction.
|
(g)
|
The components of pro forma adjustment (g) are as follows (in thousands):
|
To record the estimated gain on the disposition.
|
$
|
50,700
|
||
To record the elimination of the net assets of ALG.
|
42,900
|
|
||
To record the tax impact of the disposition.
|
(8,553
|
)
|
||
To record an accrual for unpaid professional fees related to the disposition as if it occurred on September 30, 2011.
|
(2,636
|
)
|
||
Total of pro forma adjustment (g)
|
$
|
82,411
|
(aa)
|
To record the total investment in the Joint Venture at the preliminary estimate of fair value.
|
(bb)
|
To record an accrual for unpaid professional fees related to the contribution as if it occurred on September 30, 2011.
|
(cc)
|
To record impact to current taxes payable at a statutory tax rate of 37.0%.
|
(dd)
|
To record deferred tax liabilities resulting from the transaction.
|
(ee)
|
The components of pro forma adjustment (ee) are as follows (in thousands):
|
To record the estimated gain on the contribution.
|
$
|
27,328
|
||
To record the elimination of the net assets of Chrome.
|
16,723
|
|
||
To record the tax impact of the contribution.
|
(8,590
|
)
|
||
To record an accrual for unpaid professional fees related to the contribution as if the transaction occurred on September 30, 2011.
|
(513
|
)
|
||
Total of pro forma adjustment (ee)
|
$
|
34,948
|
(A)
|
The components of pro forma adjustment (A) are as follows (in thousands):
|
To reflect amortization expense related to the acquired identifiable intangible assets, calculated over the estimated useful lives as if the triVIN acquisition occurred on January 1, 2010.
|
$
|
2,322
|
||
To eliminate triVIN's amortization expense included within the operating results of triVIN for the one month ended January 31, 2011.
|
(765
|
)
|
||
Total of pro forma adjustment (A)
|
$
|
1,557
|
(B)
|
The components of pro forma adjustment (B) are as follows (in thousands):
|
To eliminate non-recurring professional fees related to the triVIN acquisition included within the operating results of DealerTrack for the nine months ended September 30, 2011.
|
$
|
(300
|
) | |
To eliminate amounts accrued for management incentive plan. This liability was not acquired by DealerTrack.
|
(4,600
|
)
|
||
Total of pro forma adjustment (B)
|
$
|
(4,900
|
) |
(C)
|
To eliminate interest expense on debt not acquired by DealerTrack which is included within the operating results of triVIN for the one month ended January 31, 2011. In accordance with the merger agreement, the proceeds from the transaction were used by the seller to pay off the outstanding debt as of the acquisition date.
|
(D)
|
The components of pro forma adjustment (D) are as follows (in thousands):
|
Adjustment represents the tax effect of pro forma adjustments (A), (B) and (C) at the triVIN 2011 statutory tax rate of 39.9%.
|
$
|
(1,474
|
) | |
To adjust DealerTrack’s valuation allowance by the amount of triVIN’s deferred tax liabilities that can be utilized to offset DealerTrack deferred tax assets.
|
(24,548
|
)
|
||
Total of pro forma adjustment (D)
|
$
|
(26,022
|
)
|
(E)
|
The components of pro forma adjustment (E) are as follows (in thousands):
|
To reflect amortization expense related to the acquired identifiable intangible assets, calculated over the estimated useful lives as if the triVIN acquisition occurred on January 1, 2010.
|
$
|
18,153
|
||
To eliminate triVIN's amortization expense included within the operating results of triVIN for the year ended December 31, 2010.
|
(8,981
|
)
|
||
Total of pro forma adjustment (E)
|
$
|
9,172
|
(F)
|
To eliminate non-recurring professional fees related to the triVIN acquisition included within the operating results of DealerTrack for the year ended December 31, 2010.
|
(G)
|
To eliminate interest expense on debt not acquired by DealerTrack which is included within the operating results of triVIN for the year ended December 31, 2010. In accordance with the merger agreement, the proceeds from the transaction were used by the seller to pay off the outstanding debt as of the acquisition date.
|
(H)
|
The components of pro forma adjustment (H) are as follows (in thousands):
|
Adjustment represents the tax effect of pro forma adjustments (E), (F) and (G) at the triVIN 2010 statutory tax rate of 39.9%.
|
$
|
1,595
|
||
To adjust DealerTrack’s valuation allowance by the amount of triVIN’s deferred tax liabilities that can be utilized to offset DealerTrack deferred tax assets.
|
27,020
|
|
||
Total of pro forma adjustment (H)
|
$
|
28,615
|
(I)
|
To record revenue expected from the commercial arrangements related to ALG. Revenue for other commercial arrangements is not included.
|
(J)
|
The components of pro forma adjustment (J) are as follows (in thousands):
|
To record intangible amortization expense on the perpetual, royalty free data license received by DealerTrack as if the ALG transaction occurred on January 1, 2010. The fair value of the license was determined based upon discounted cash flows and is being amortized on a straight-line basis, which approximates asset use, over a useful life of five years.
|
840
|
|||
To record ALG costs related to providing services for commercial arrangements in pro forma adjustment (I).
|
188
|
|||
Total of pro forma adjustment (J)
|
$
|
1,028
|
(K)
|
To eliminate non-recurring professional fees related to the ALG transaction included within the operating results of DealerTrack for the year ended September 30, 2011.
|
(L)
|
Adjustment represents the tax effect of pro forma adjustments (I), (J) and (K) at the ALG 2011 statutory tax rate of 37.0%.
|
(M)
|
The components of pro forma adjustment (M) are as follows (in thousands):
|
To record intangible amortization expense on the perpetual, royalty free data license received by DealerTrack as if the ALG transaction occurred on January 1, 2010. The fair value of the license was determined based upon discounted cash flows and is being amortized on a straight-line basis, which approximates asset use, over a useful life of five years.
|
1,120
|
|||
To record ALG costs related to providing services for commercial arrangements in pro forma adjustment (I).
|
250
|
|||
Total of pro forma adjustment (M)
|
$
|
1,370
|
(N)
|
Adjustment represents the tax effect of pro forma adjustments (I) and (M) at the ALG 2010 statutory tax rate of 37.1%.
|
(AA)
|
To reflect the annual license cost of data received from the Joint Venture.
|
(BB)
|
Adjustment represents the tax effect of pro forma adjustments (AA) at the statutory tax rate of 37.0%.
|
(CC)
|
Adjustment represents the tax effect of pro forma adjustments (AA) at the statutory tax rate of 37.1%.
|