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As Of Filer Filing For·On·As Docs:Size 8/08/19 TrueCar, Inc. 8-K:2,9 8/08/19 2:307K |
Document/Exhibit Description Pages Size 1: 8-K Current Report HTML 18K 2: EX-99.1 Miscellaneous Exhibit HTML 114K
2019 08-08-19 Ex. 99.1 |
• | Second quarter total revenue relatively flat from a year ago at $88.1 million. |
• | Second
quarter net loss of $(24.1) million, or $(0.23) per share, compared to net loss of $(6.6) million, or $(0.07) per share, in the second quarter of 2018. |
• | Second quarter Non-GAAP net loss(1) of $(2.2) million, or $(0.02) per share, compared to Non-GAAP net income of $3.2 million,
or $0.03 per share, in the second quarter of 2018. |
• | Second quarter Adjusted EBITDA(2) of $3.7 million, representing an Adjusted EBITDA margin(3) of 4.1%, compared to Adjusted EBITDA of $8.7 million, representing an Adjusted EBITDA margin of 9.9%, in the second
quarter of 2018. |
• | Average monthly unique visitors(4) decreased 7% to 7.2 million in the second quarter of 2019, down from 7.8 million in the second quarter of 2018. |
• | Units(5) were
249,856 in the second quarter of 2019, compared to 250,269 in the second quarter of 2018. |
• | Monetization(6) was $333 during the second quarter of 2019, compared to $332 during the second quarter of 2018. |
• | Franchise
dealer count(7) was 12,681 as of June 30, 2019, compared to 12,368 as of June 30, 2018. |
• | Independent dealer count(8) was 4,014 as of June 30, 2019, compared to 3,166 as of June
30, 2018. |
(1) | Non-GAAP net (loss) income is a Non-GAAP financial measure. Refer to its definition and accompanying reconciliation to GAAP net (loss) income below. |
(2) | Adjusted EBITDA is a Non-GAAP financial measure. Refer to its definition and accompanying reconciliation
to GAAP net (loss) income below. |
(3) | Adjusted EBITDA margin is a Non-GAAP financial measure, calculated as Adjusted EBITDA divided by total revenue. |
(4) | We define a monthly unique visitor as an individual who has visited our website, our landing page on our affinity group marketing partner sites or our mobile applications within a calendar month. We calculate average monthly unique visitors as the sum of the monthly unique visitors
divided by the number of months in the period. |
(5) | We define units as the number of automobiles purchased from TrueCar Certified Dealers that are matched to users of TrueCar.com, our mobile applications or the car-buying sites and mobile applications we maintain for our affinity group marketing partners. |
(6) | We define monetization as the average transaction revenue per unit, which we calculate by dividing all of our transaction revenue (dealer revenue and OEM incentives revenue) in a given period by the number of units in that period. |
(7) | We
define franchise dealer count as the number of franchise dealers in the network of TrueCar Certified Dealers at the end of a given period. This number is calculated by counting the number of brands of new cars sold at each individual location, or rooftop, regardless of the size of the dealership that owns the rooftop. Note that this number excludes Genesis franchises on our program due to Hyundai’s transition of Genesis to a stand-alone brand. In order to facilitate period over period comparisons, we have continued to count each Hyundai franchise that also has a Genesis franchise as one franchise dealer rather than two. |
(8) | We define independent dealer count as the number of dealers in the network of TrueCar Certified Dealers at the end of a given
period that exclusively sell used vehicles and are not directly affiliated with a new car manufacturer. This number is calculated by counting each location, or rooftop, individually, regardless of the size of the dealership that owns the rooftop. |
• | Revenues
are expected to be in the range of $87.0 million to $89.0 million. |
• | Adjusted EBITDA is expected to be in the range of $1.0 million to $3.0 million.(9) |
• | Revenues
are expected to be in the range of $345 million to $350 million. |
• | Adjusted EBITDA is expected to be in the range of $10.0 million to $14.0 million.(9) |
(9) | We
are unable to provide reconciliations of forward-looking Adjusted EBITDA without unreasonable effort because of the uncertainty and potential variability in amount and timing of stock-based compensation, certain transaction expenses and certain litigation costs, which are reconciling items between GAAP net (loss) income and Adjusted EBITDA and could significantly impact GAAP results. |
• | Adjusted EBITDA does not reflect the payment or receipt of interest or the payment of income taxes; |
• | neither Adjusted EBITDA nor Non-GAAP net (loss) income reflects changes in, or cash requirements for, our working capital needs; |
• | although depreciation and amortization are non-cash
charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditures or any other contractual commitments; |
• | neither Adjusted EBITDA nor Non-GAAP net (loss) income reflects severance charges associated with the departures of certain of our former executives in the second quarter of 2019; |
• | neither
Adjusted EBITDA nor Non-GAAP net (loss) income reflects the severance charges associated with a restructuring plan initiated and completed in the first quarter of 2019 to improve efficiency and reduce expenses; |
• | neither Adjusted EBITDA nor Non-GAAP net (loss) income reflects the legal, accounting, consulting and other third-party fees and costs we incurred in connection with the evaluation and negotiation of potential merger and acquisition transactions; |
• | neither Adjusted EBITDA nor Non-GAAP net (loss) income reflects the
costs to advance our claims in certain litigation or the costs to defend ourselves in various complaints filed against us; |
• | neither Adjusted EBITDA nor Non-GAAP net (loss) income considers the potentially dilutive impact of shares issued or to be issued in connection with stock-based compensation; and |
• | other companies, including companies in our own industry, may calculate Adjusted EBITDA and Non-GAAP net (loss) income differently than we do, limiting their usefulness as comparative measures. |
Three Months Ended June 30, | Six
Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues | $ | 88,075 | $ | 87,850 | $ | 173,657 | $ | 168,911 | |||||||
Costs
and operating expenses: | |||||||||||||||
Cost of revenue | 8,332 | 7,752 | 17,268 | 15,204 | |||||||||||
Sales
and marketing | 60,233 | 52,014 | 114,971 | 100,432 | |||||||||||
Technology and development | 16,045 | 15,694 | 31,699 | 31,288 | |||||||||||
General
and administrative | 21,382 | 13,494 | 36,486 | 26,975 | |||||||||||
Depreciation and amortization | 6,767 | 5,641 | 13,182 | 10,816 | |||||||||||
Total
costs and operating expenses | 112,759 | 94,595 | 213,606 | 184,715 | |||||||||||
Loss from operations | (24,684 | ) | (6,745 | ) | (39,949 | ) | (15,804 | ) | |||||||
Interest
income | 966 | 750 | 1,967 | 1,354 | |||||||||||
Interest expense | — | (662 | ) | — | (1,323 | ) | |||||||||
Loss
from equity method investment | (273 | ) | — | (273 | ) | $ | — | ||||||||
Loss before income taxes | (23,991 | ) | (6,657 | ) | (38,255 | ) | (15,773 | ) | |||||||
Provision
for (benefit from) income taxes | 69 | (35 | ) | 170 | (96 | ) | |||||||||
Net loss | $ | (24,060 | ) | $ | (6,622 | ) | $ | (38,425 | ) | $ | (15,677 | ) | |||
Net
loss per share: | |||||||||||||||
Basic and diluted | $ | (0.23 | ) | $ | (0.07 | ) | $ | (0.37 | ) | $ | (0.16 | ) | |||
Weighted
average common shares outstanding, basic and diluted | 105,485 | 101,150 | 105,139 | 100,862 |
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 176,565 | $ | 196,128 | |||
Accounts
receivable, net | 49,286 | 47,760 | |||||
Prepaid expenses | 9,006 | 7,468 | |||||
Other current assets | 34,002 | 4,103 | |||||
Total
current assets | 268,859 | 255,459 | |||||
Property and equipment, net | 32,282 | 61,511 | |||||
Operating lease right-of-use assets | 39,066 | — | |||||
Goodwill | 73,311 | 73,311 | |||||
Intangible
assets, net | 20,353 | 23,451 | |||||
Equity method investment | 22,901 | — | |||||
Other assets | 4,738 | 7,228 | |||||
Total
assets | $ | 461,510 | $ | 420,960 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities | |||||||
Accounts
payable | $ | 20,400 | $ | 26,305 | |||
Accrued employee expenses | 10,361 | 4,349 | |||||
Operating
lease liabilities, current | 6,933 | — | |||||
Accrued expenses and other current liabilities | 49,387 | 10,908 | |||||
Total current liabilities | 87,081 | 41,562 | |||||
Deferred
tax liabilities | 695 | 568 | |||||
Lease financing obligations, net of current portion | — | 22,987 | |||||
Operating lease liabilities, net of current portion | 39,851 | — | |||||
Other
liabilities | 2,484 | 9,290 | |||||
Total liabilities | 130,111 | 74,407 | |||||
Stockholders’ Equity | |||||||
Common
stock | 10 | 10 | |||||
Additional paid-in capital | 746,986 | 720,025 | |||||
Accumulated deficit | (415,597 | ) | (373,482 | ) | |||
Total
stockholders’ equity | 331,399 | 346,553 | |||||
Total liabilities and stockholders’ equity | $ | 461,510 | $ | 420,960 |
Three Months Ended June 30, | Six
Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net loss | $ | (24,060 | ) | $ | (6,622 | ) | $ | (38,425 | ) | $ | (15,677 | ) | |||
Non-GAAP
adjustments: | |||||||||||||||
Interest income | (966 | ) | (750 | ) | (1,967 | ) | (1,354 | ) | |||||||
Interest
expense | — | 662 | — | 1,323 | |||||||||||
Depreciation and amortization | 6,767 | 5,641 | 13,182 | 10,816 | |||||||||||
Stock-based
compensation (1) | 15,556 | 8,972 | 24,191 | 18,069 | |||||||||||
Loss from equity method investment | 273 | — | 273 | — | |||||||||||
Certain
litigation costs (2) | 351 | 862 | 1,279 | 1,661 | |||||||||||
Executive departure costs (3) | 4,681 | — | 4,681 | — | |||||||||||
Restructuring
charges (4) | — | — | 3,280 | — | |||||||||||
Transaction costs (5) | 832 | — | 1,926 | — | |||||||||||
Change
in the fair value of contingent consideration | 150 | — | 150 | — | |||||||||||
Provision for (benefit from) income taxes | 69 | (35 | ) | 170 | (96 | ) | |||||||||
Adjusted
EBITDA | $ | 3,653 | $ | 8,730 | $ | 8,740 | $ | 14,742 |
(1) | The
excluded amounts include stock-based compensation of $7.2 million incurred in the second quarter of 2019 associated with the acceleration of certain equity awards and the extension of the exercise period for certain vested stock options related to the departures of certain executives, including our former chief executive officer. |
(2) | The excluded amounts relate to legal costs incurred in connection with complaints filed by non-TrueCar dealers and the California New Car Dealers Association against TrueCar and consumer class action lawsuits. We believe the exclusion of these costs is appropriate to facilitate comparisons of our core operating performance on a period-to-period basis. Based on the nature of the specific claims underlying the excluded
litigation matters, once these matters are resolved, we do not believe our operations are likely to entail defending against the types of claims raised by these matters. We expect the cost of defending these claims to continue to be significant pending that resolution. |
(3) | The excluded amounts represent severance charges associated with the separation of our former chief executive officer and the termination of executive-level employees in connection with a change in chief executive officer of $4.6 million in the second quarter of 2019, as well as related recruiting fees of $0.1 million for the search for a new chief executive officer. We believe excluding the impact of these terminations and the associated chief executive officer recruiting fees
is consistent with our use of these non-GAAP measures as we do not believe they are a useful indicator of our ongoing operating results. We expect to incur an additional $0.4 million in executive recruiting fees in the second half of 2019. |
(4) | The excluded amounts represent charges associated with a restructuring plan initiated and completed in the first quarter of 2019 to improve efficiency and reduce expenses. We believe excluding the impact of these charges is consistent with our use of these non-GAAP measures as we do not believe they are a useful indicator of our ongoing operating results. |
(5) | The
excluded amounts represent external legal, accounting, consulting and other third-party fees and costs we incurred in connection with the evaluation and negotiation of potential acquisition transactions. These expenses are included in general and administrative expenses in our consolidated statements of comprehensive loss. We consider these fees and costs, which are associated with potential merger and acquisition transactions outside the normal course of our operations, to be unrelated to our underlying results of operations and believe that their exclusion provides investors with a more complete understanding of the factors and trends affecting our business operations. We also incurred $0.6 million of such transaction expenses in the three months ended December 31, 2018 and will recast our prior-period Adjusted EBITDA presented in previous filings to reflect the exclusion of such expenses in future filings that present
Adjusted EBITDA figures for such three-month period. |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net loss | $ | (24,060 | ) | $ | (6,622 | ) | $ | (38,425 | ) | $ | (15,677 | ) | |||
Non-GAAP
adjustments: | |||||||||||||||
Stock-based compensation (1) | 15,556 | 8,972 | 24,191 | 18,069 | |||||||||||
Loss
from equity method investment | 273 | — | 273 | — | |||||||||||
Certain litigation costs (2) | 351 | 862 | 1,279 | 1,661 | |||||||||||
Executive
departure costs (3) | 4,681 | — | 4,681 | — | |||||||||||
Restructuring charges (4) | — | — | 3,280 | — | |||||||||||
Transaction
costs (5) | 832 | — | 1,926 | — | |||||||||||
Change in the fair value of contingent consideration | 150 | — | 150 | — | |||||||||||
Non-GAAP
net (loss) income (6) | $ | (2,217 | ) | $ | 3,212 | $ | (2,645 | ) | $ | 4,053 | |||||
Non-GAAP
net (loss) income per share: | |||||||||||||||
Basic | $ | (0.02 | ) | $ | 0.03 | $ | (0.03 | ) | $ | 0.04 | |||||
Diluted | $ | (0.02 | ) | $ | 0.03 | $ | (0.03 | ) | $ | 0.04 | |||||
Weighted
average common shares outstanding: | |||||||||||||||
Basic | 105,485 | 101,150 | 105,139 | 100,862 | |||||||||||
Diluted | 105,485 | 102,771 | 105,139 | 102,886 |
(1) | The
excluded amounts include stock-based compensation of $7.2 million incurred in the second quarter of 2019 associated with the acceleration of certain equity awards and the extension of the exercise period for certain vested stock options related to the departures of certain executives, including our former chief executive officer. |
(2) | The excluded amounts relate to legal costs incurred in connection with complaints filed by non-TrueCar dealers and the California New Car Dealers Association against TrueCar and consumer class action lawsuits. We believe the exclusion of these costs is appropriate to facilitate comparisons of our core operating performance on a period-to-period basis. Based on the nature of the specific claims underlying the excluded
litigation matters, once these matters are resolved, we do not believe our operations are likely to entail defending against the types of claims raised by these matters. We expect the cost of defending these claims to continue to be significant pending that resolution. |
(3) | The excluded amounts represent severance charges associated with the separation of our former chief executive officer and the termination of executive-level employees in connection with a change in chief executive officer of $4.6 million in the second quarter of 2019, as well as related recruiting fees of $0.1 million for the search for a new CEO. We believe excluding the impact of these terminations and the associated chief executive officer recruiting fees is consistent with
our use of these non-GAAP measures as we do not believe they are a useful indicator of our ongoing operating results. We expect to incur an additional $0.4 million in executive recruiting fees in the second half of 2019. |
(4) | The excluded amounts represent charges associated with a restructuring plan initiated and completed in the first quarter of 2019 to improve efficiency and reduce expenses. We believe excluding the impact of these charges is consistent with our use of these non-GAAP measures as we do not believe they are a useful indicator of our ongoing operating results. |
(5) | The
excluded amounts represent external legal, accounting, consulting and other third-party fees and costs we incurred in connection with the evaluation and negotiation of potential acquisition transactions. These expenses are included in general and administrative expenses in our consolidated statements of comprehensive loss. We consider these fees and costs, which are associated with potential merger and acquisition transactions outside the normal course of our operations, to be |
(6) | There is no income tax impact related to the adjustments made to calculate Non-GAAP net (loss) income because of our available net operating loss carryforwards and the full valuation allowance recorded against our net deferred tax assets at June 30, 2019 and 2018. |
This ‘8-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
12/31/19 | ||||
9/30/19 | ||||
8/22/19 | ||||
Filed on / For Period end: | 8/8/19 | |||
6/30/19 | ||||
3/31/19 | 10-Q | |||
12/31/18 | 10-K, 4 | |||
6/30/18 | 10-Q, 4 | |||
List all Filings |