EX-99.1 2 v367377_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1 - Financing Disclosure

 

 

Pro forma historical revenue ($mm)

 

 

Note: 2013E revenue based on midpoint of Dealertrack public guidance and management estimate for DDC

 

 
 

 

Pro forma historical EBITDA ($mm)

 

 

Note: 2013E EBITDA based on midpoint of Dealertrack’s Adj. EBITDA public guidance and management estimate for DDC’s EBITDA (refer to Section 13 for DDC’s EBITDA bridge).

   

 

Pro forma historical cash flows (EBITDA – capex), excluding synergies

 

 

% EBITDA 54%      61% 59%[1]    

  

 

Note: Dealertrack 2013E figures based on midpoint of Dealertrack’s Adj. EBITDA public guidance and management estimate for DDC’s EBITDA (refer to Section 13 for DDC’s EBITDA bridge).

1 Does not include synergies.

 

 
 

  

Dealer.com stand-alone summary financial information

 

Revenue ($mm)

 

 

 

% growth NA 44% 30%          

 

 

 
 

  

EBITDA ($mm)

 

% margin 22%          20% 19%   

 

  

EBITDA - Capex ($mm)

  

% EBITDA 29%           66%   65%

   

 
 

 

1.Dealer.com historical financial overview

 

Balance sheet

 

   December 31, 
($000s)   2013Est.    2012Act.    2011Act. 
Assets               
Current assets               
Cash and cash equivalents  $50,803   $46,734   $23,455 
Accounts receivable–net   29,658    20,500    12,349 
Prepaid expenses and other current assets   8,294    2,855    2,055 
Income tax receivable   2,087    2,072    6,427 
Deferred income taxes   1,500    1,656    2,241 
Total current assets  $92,342   $73,817   $46,527 
Property and equipment–net   42,490    37,684    35,584 
Internal use software–net   7,953    5,938    5,950 
Goodwill   6,948    949    850 
Intangibles, net   5,499    -    - 
Other assets   339    762    520 
Total assets  $155,571   $119,150   $89,431 
                
Liabilities and stockholder’s equity               
Current liabilities               
Current portion of notes payable  $626   $605   $581 
Accounts payable   21,937    9,501    5,484 
Accrued expenses   14,296    16,622    12,330 
Deferred revenue   4,045    7,138    3,074 
Other liabilities   3,793    1,024    914 
Total current liabilities  $44,697   $34,890   $22,383 
Income tax payable   2,009    5,448    4,686 
Deferred revenue–net of current portion   252    551    2,636 
Notes payable–net of current portion   9,949    10,575    11,179 
Deferred income taxes   2,962    1,291    3,190 
Other long-term liabilities   1,599    702    - 
Total liabilities  $61,468   $53,457   $44,074 
Stockholder’s equity               
Common stock  $15   $14   $14 
Additional paid-in capital   42,328    31,379    18,144 
Retained earnings   63,574    46,114    29,619 
Treasury stock, at cost   (11,814)   (11,814)   (2,420)
Total stockholder’s equity  $94,103   $65,693   $45,357 
Total  $155,571   $119,150   $89,431 

  

 
 

  

Statement of operations

 

   Year ended December 31, 
($000s)   2013Est.    2012Act.    2011Act. 
Revenue               
Website services  $131,316   $109,164   $86,961 
Advertising and media services   107,775    73,473    40,110 
Total revenue  $239,091   $182,637   $127,071 
Cost of revenue               
Website services  $36,976   $28,609   $20,166 
Advertising and media services   91,458    60,816    32,499 
Total cost of revenue  $128,434   $89,425   $52,665 
                
Gross profit  $110,657   $93,212   $74,406 
                
Operating expenses               
Sales and marketing  $38,317   $29,304   $24,771 
Research and development   20,048    17,529    10,450 
General and administrative   20,608    19,442    17,770 
Total operating expenses  $78,973   $66,275   $52,991 
                
                
                
Income from operations  $31,684   $26,937   $21,415 
                
Other (expense) income               
Interest expense–net  $(505)  $(426)  $(391)
Other income (expense)   (8)   10    (2)
Total other expense  $(513)  $(416)  $(393)
Income before provision for income taxes  $31,171   $26,521   $21,022 
Provision for income taxes   (13,711)   (10,027)   (9,380)
Net income  $17,460   $16,494   $11,642 

 

 

EBITDA reconciliation

 

   Year ended December 31, 
($000s)   2013Est.    2012Act.    2011Act. 
Net income  $17,460   $16,494   $11,642 
Provision for income taxes   13,711    10,027    9,380 
Interest expense–net   505    426    391 
Other income (expense)   8    (10)   2 
Depreciation and amortization   10,743    8,928    6,263 
EBITDA  $42,427   $35,865   $27,678 

 

 
 

 

Statement of cash flows

 

   Year ended December 31, 
($000)   2013Est.    2012Act.    2011Act. 
Cash flows from operating activities:               
Net income  $17,460   $16,494   $11,642 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization  $10,743   $8,928   $6,263 
Loss on impairment of internal use software   130    317    - 
Bad debt expense   194    (38)   364 
Amortization of debt issuance costs   41    -    - 
Stock based compensation   3,929    3,241    1,683 
Deferred income taxes   1,828    (1,316)   1,454 
Excess tax benefit of options exercised   (1,331)   (2,620)   (2,061)
Changes in operating assets and liabilities:
Accounts receivable  $(9,352)  $(8,113)  $(4,722)
Prepaid expenses and other current assets   (3,867)   (799)   (689)
Income taxes   (2,122)   7,737    (3,032)
Other assets   424    (242)   (352)
Accounts payable   8,487    4,806    (2,018)
Accrued expenses   (3,684)   4,293    4,708 
Deferred revenue   (3,392)   1,980    1,134 
Other liabilities   2,916    812    186 
Net cash provided by operating activities  $22,404   $35,480   $14,560 
                
Cash flows from investing activities:               
Decrease in restricted cash  $-   $-   $4,334 
Purchase of property and equipment   (7,388)   (7,568)   (14,520)
Capitalization of internal use software   (6,314)   (4,552)   (5,233)
Payments for acquisitions, net of cash acquired   (7,614)   (100)   (850)
Net cash used in investing activities  $(21,316)  $(12,220)  $(16,269)
                
Cash flows from financing activities:               
Repurchase of common stock  $-   $(2,750)  $- 
Proceeds from exercise of stock options   2,809    730    664 
Tax benefit of exercised stock options   1,331    2,620    2,061 
Repayment on notes payable and capital leases   (962)   -    - 
Debt issuance costs   (198)   (580)   (565)
Net cash provided by financing activities  $2,980   $20   $2,160 
                
Increase in cash and cash equivalents  $4,068   $23,280   $451 
Cash and cash equivalents, beginning of period  $46,735   $23,455   $23,004 
Cash and cash equivalents, end of period  $50,803   $46,735   $23,455