EX-99.1 2 d240171dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Cars.com, Inc.

Quarterly Financial Information and Key Operating Metrics

(in thousands, except key operating metrics)

 

    Three months ended
(unaudited)		     Year ended
(audited)		     Three months ended
(unaudited)		     Year ended
(audited)		  
    Mar 31, 2015     Jun 30, 2015     Sep 30, 2015     Dec 31, 2015     Dec 31, 2015     Mar 31, 2016     Jun 30, 2016     Sep 30, 2016     Dec 31, 2016     Dec 31, 2016  

Revenues:

                    

Retail

   $ 100,276     $ 105,408     $ 107,525     $ 111,423     $ 424,632     $ 109,605     $ 113,580     $ 119,828     $ 119,763     $ 462,776  

Wholesale

     43,715       42,798       42,548       42,817       171,878       42,884       43,070       42,467       41,909       170,330  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

     143,991       148,206       150,073       154,240       596,510       152,489       156,650       162,295       161,672       633,106  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating expenses:

                    

Product support, technology and operations

     28,215       28,732       28,842       30,901       116,690       32,709       33,203       32,469       31,483       129,864  

Marketing and sales

     54,277       51,167       51,017       55,318       211,779       58,342       53,263       48,670       50,757       211,032  

General and administrative

     7,550       7,682       7,467       8,225       30,924       7,502       8,037       7,738       8,925       32,202  

Affiliate revenue share

     1,519       1,598       1,711       1,898       6,726       1,994       2,108       2,162       2,265       8,529  

Amortization of intangible assets

     18,164       18,164       18,164       18,166       72,658       18,164       18,164       19,088       19,413       74,829  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

     109,725       107,343       107,201       114,508       438,777       118,711       114,775       110,127       112,843       456,456  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

     34,266       40,863       42,872       39,732       157,733       33,778       41,875       52,168       48,829       176,650  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Other income (loss), net

     186       (8 )      (123 )      50       105       (79 )      145       129       113       308  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before taxes

     34,452       40,855       42,749       39,782       157,838       33,699       42,020       52,297       48,942       176,958  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Provision for income taxes

     —         —         —         —         —         —         —         452       136       588  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Income

   $ 34,452     $ 40,855     $ 42,749     $ 39,782     $ 157,838     $ 33,699     $ 42,020     $ 51,845     $ 48,806     $ 176,370  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP reconciliation to adjusted EBITDA

                    

Provision for income taxes

     —         —         —         —         —         —         —         452       136       588  

Depreciation

     2,041       2,079       1,875       2,165       8,160       2,081       2,050       2,002       2,144       8,277  

Amortization of intangible assets

     18,164       18,164       18,164       18,166       72,658       18,164       18,164       19,088       19,413       74,829  

Other non-operating items

     (186 )      8       123       (50 )      (105 )      79       (145 )      (129 )      (113 )      (308 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

   $ 54,471     $ 61,106     $ 62,911     $ 60,063     $ 238,551     $ 54,023     $ 62,089     $ 73,258     $ 70,386     $ 259,756  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Key Operating Metrics

                    

Traffic (Visits)

     115,270,000       108,311,000       106,634,000       98,917,000       429,132,000       113,479,000       105,375,000       102,723,000       90,756,000       412,333,000  

Dealer customers

     20,348       20,385       20,545       20,918       20,918       20,833       20,450       21,743       21,572       21,572  

Average vehicle listings

     4,407,000       4,444,000       4,371,000       4,631,000       4,463,000       4,713,000       4,768,000       4,614,000       4,880,000       4,744,000  

Cars.com, Inc.

Non-GAAP Financial Measures

Adjusted EBITDA Definition

Adjusted EBITDA

We use Adjusted EBITDA as a non-GAAP financial performance measure to supplement the financial information presented on a GAAP basis. This non-GAAP financial measure should not be considered in isolation from or as a substitute for the related GAAP measure, nor should it be considered superior to the related GAAP measure, and should be read together with financial information presented on a GAAP basis. Also, our non-GAAP measure may not be comparable to similarly titled measures of other companies. We define Adjusted EBITDA as net income before (1) interest expense, (2) income taxes, (3) non-operating items (which are primarily comprised of gains on marketable securities held in trust and interest income), (4) depreciation and (5) amortization. When Adjusted EBITDA is discussed in reference to performance, the most directly comparable GAAP financial measure is net income. We use Adjusted EBITDA, a non-GAAP financial performance measure, for purposes of evaluating our performance. Therefore, we believe that this measure provides useful information to investors by allowing them to view our businesses through the eyes of our management and board of directors, facilitating comparison of results across historical periods, and providing a focus on the underlying ongoing operating performance of our businesses. Investors should consider the limitations of using Adjusted EBITDA, including the fact that such measure does not provide a complete measure of our operating performance. Adjusted EBITDA is not intended to be an alternative to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. In particular, Adjusted EBITDA is not intended to be a measure of free cash flow available for management’s discretionary use, as Adjusted EBITDA does not consider certain cash requirements, such as working capital needs, capital expenditures, and contractual commitments.

Metric Definitions

Traffic (Visits)

Traffic is an internal metric representing the number of visits to Cars.com desktop and mobile properties (web browser and apps). Visits refer to the number of times visitors accessed Cars.com properties during the period, no matter how many visitors make up those visits. Traffic (Visits) numbers provide an indication of our consumer reach. Although our consumer reach does not directly result in revenue, we believe our ability to reach diverse demographic audiences is attractive to our dealers and national advertisers.

Dealer customers

Dealer customers represents the car dealerships using our products as of the end of each reporting period. Each dealership location is counted separately, whether it is a single-location proprietorship or part of a large consolidated dealer group. Multi-franchise dealerships at a single location are counted as one dealer.

Average vehicle listings

Average vehicle listings represents the daily average of vehicles listed for sale on Cars.com properties. The daily average is calculated on a monthly basis and averaged for the reporting period.