CARS Reports Third Quarter 2020 Results
Cars.com Inc. (CARS) reported Q3 2020 financial results with revenue of $144.4 million, a decline of 5% year-over-year. However, the net loss significantly improved to $12.3 million, or $0.18 per diluted share, compared to a prior-year loss of $426.2 million, which included a goodwill impairment charge. Adjusted net income rose to $34.6 million, up 63% from last year. Average monthly unique visitors increased by 10% to 25.3 million. Free cash flow reached $84.3 million, up 29% year-over-year, indicating strong operational cash generation and robust dealer retention amidst heightened demand for digital solutions.
- Adjusted net income rose to $34.6 million, or $0.50 per diluted share, up 63% year-over-year.
- Free cash flow increased by 29% to $84.3 million for the nine months ended September 30, 2020.
- Average monthly unique visitors grew by 10% to 25.3 million, indicating strong user engagement.
- Adjusted EBITDA increased by 7% to $49.0 million, representing 34% of revenue.
- Dealer customers rose to 18,130, reflecting increased adoption of digital solutions.
- Revenue decreased by $7.7 million, or 5%, compared to the prior year, largely due to a decline in national advertising revenue.
- Net loss of $12.3 million still reflects operational challenges despite significant improvement from last year's losses.
CHICAGO, Nov. 9, 2020 /PRNewswire/ -- Cars.com Inc. (NYSE: CARS) ("CARS" or the "Company"), a leading digital marketplace and solutions provider for the automotive industry, today released its financial results for the quarter ended September 30, 2020.
Q3 Financial Highlights
- Revenue of
$144.4 million , down$7.7 million , or5% year over year - GAAP Net Loss of
$12.3 million , or$0.18 per diluted share, compared to GAAP Net Loss of$426.2 million , or$6.38 per diluted share in the prior-year period. The prior year GAAP net loss included a Goodwill and Intangible impairment charge of$431.3 million , net of tax - Adjusted Net Income of
$34.6 million , or$0.50 per diluted share, compared to Adjusted Net Income of$21.3 million , or$0.32 per diluted share in the prior-year period - Adjusted EBITDA of
$49.0 million , or34% of Revenue, up$3.1 million , or7% year over year - Net cash provided by operating activities of
$96.9 million for the nine months ended September 30, 2020 up20% compared to the prior year period - Free Cash Flow of
$84.3 million for the nine months ended September 30, 2020, up29% compared to the prior year period $43.8 million of cash and cash equivalents and total liquidity of$258.8 million , including availability under our revolving credit facility, as of September 30, 2020
Q3 Key Metrics Highlights
- Average Monthly Unique Visitors of 25.3 million, up
10% year over year - Traffic (visits) of 158.8 million, up
10% year over year - Dealer Customers grew to 18,130 at September 30, 2020 from 18,033 at June 30, 2020 and included growth in both marketplace and solutions only customers
- Monthly average revenue per dealer ("ARPD") was
$2,183 , rebounding to pre-COVID levels and up slightly compared to the prior-year period
Operational Highlights
- Continued robust organic traffic and lead generation leading to strong dealer retention and growth
- Strong growth and increased penetration of Conversations, Online Shopper, and FUEL solutions leading to ARPD growth
- Dealer Inspire remains on track to launch half of the contracted GM websites in 2020
- In October 2020, refinanced our debt facilities on favorable terms extending maturity dates from 2022 to 2025 for the credit facility and 2028 for the new senior unsecured notes
"Revenue rebounded sequentially with meaningful growth in ARPD and increased dealer customers as dealers are more rapidly adopting digital solutions in response to accelerated consumer demand because of the COVID pandemic. The launch of new dealer websites, and further growth and penetration of our FUEL, Online Shopper, and Conversations solutions, are driving growth in both ARPD and dealer count which will allow us to start 2021 with strong momentum," said Alex Vetter, President and Chief Executive Officer of CARS.
Q3 Results
Revenue for the third quarter of 2020 was
Total operating expenses for the third quarter of 2020 were
Net loss for the third quarter of 2020 was
Adjusted EBITDA for the third quarter of 2020 was
For the third quarter, Average Monthly Unique Visitors and Traffic grew
Dealer customers were 18,130 as of September 30, 2020, an increase of
ARPD was
"Strong top-line trends, focused execution, and thoughtful cost discipline drove year-over-year growth in Adjusted EBITDA and free cash flow. Increased investments in the business coupled with continued growth in digital solutions will position us to exit the year with a strengthened competitive and financial position. In addition, the refinancing of our debt improves our flexibility to invest in and grow our business," said Sonia Jain, Chief Financial Officer of CARS.
Cash Flow and Balance Sheet
Net cash provided by operating activities for the nine-month period ended September 30, 2020 was
Cash and cash equivalents was
Q3 Earnings call
As previously announced, management will hold a conference call and webcast today at 9:00 a.m. Central Time. This webcast may be accessed at investor.cars.com. A replay of the webcast and the slideshow will be available at this website following the conclusion of the call until November 23, 2020.
About CARS
CARS is a leading digital marketplace and solutions provider for the automotive industry that connects car shoppers with sellers. Launched in 1998 with the flagship marketplace Cars.com and headquartered in Chicago, the Company empowers shoppers with the data, resources and digital tools needed to make informed buying decisions and seamlessly connect with automotive retailers. In a rapidly changing market, CARS enables dealerships and OEMs with innovative technical solutions and data-driven intelligence to better reach and influence ready-to-buy shoppers, increase inventory turn and gain market share.
In addition to Cars.com, CARS companies include Dealer Inspire, a technology provider building solutions that future-proof dealerships with more efficient operations and connected digital experiences; FUEL, which gives dealers and OEMs the opportunity to harness the untapped power of digital video by leveraging Cars.com's pure audience of in-market car shoppers, and DealerRater, a leading car dealer review and reputation management platform.
The full suite of CARS properties include Cars.com™, Dealer Inspire®, DealerRater®, FUEL™, Auto.com™, PickupTrucks.com™ and NewCars.com®. For more information, visit www.Cars.com.
Non-GAAP Financial Measures
This earnings release discusses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income per diluted share and Free Cash Flow. These financial measures are not prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). These financial measures are presented as supplemental measures of operating performance because we believe they provide meaningful information regarding our performance and provide a basis to compare operating results between periods. In addition, we use Adjusted EBITDA as a measure for determining incentive compensation targets. Adjusted EBITDA also is used as a performance measure under our credit agreement and includes adjustments such as the items defined below and other further adjustments, which are defined in the credit agreement. These non-GAAP financial measures are frequently used by our lenders, securities analysts, investors and other interested parties to evaluate companies in our industry. For a reconciliation of the non-GAAP measures presented in this earnings release to their most directly comparable financial measure prepared in accordance with GAAP, see "Non-GAAP Reconciliations" below.
Other companies may define or calculate these measures differently, limiting their usefulness as comparative measures. Because of these limitations, these non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP. Definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are presented in the tables below.
We define Adjusted EBITDA as net income (loss) before (1) interest expense (income), net, (2) income tax expense (benefit), (3) depreciation, (4) amortization of intangible assets, (5) stock-based compensation expense, (6) unrealized mark-to-market adjustments related to derivative instruments, and (7) certain other items, such as transaction-related costs, costs associated with the stockholder activist campaign, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets. Amortization of unfavorable contracts liability is not adjusted out of Adjusted EBITDA.
We define Adjusted Net Income as net income (loss) excluding the after-tax impact of (1) amortization of intangible assets, (2) stock-based compensation expense, (3) unrealized mark-to-market adjustments related to derivative instruments, and (4) certain other items, such as transaction-related costs, costs associated with the stockholder activist campaign, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets. Amortization of unfavorable contracts liability is not adjusted out of Adjusted Net Income.
Transaction-related costs are certain expense items resulting from actual or potential transactions such as business combinations, mergers, acquisitions, dispositions, spin-offs, financing transactions, and other strategic transactions, including, without limitation, (1) transaction-related bonuses and (2) expenses for advisors and representatives such as investment bankers, consultants, attorneys and accounting firms. Transaction-related costs may also include, without limitation, transition and integration costs such as retention bonuses and acquisition-related milestone payments to acquired employees, in addition to consulting, compensation and other incremental costs associated with integration projects.
We define Free Cash Flow as net cash provided by operating activities less capital expenditures, including purchases of property and equipment and capitalization of internal-use software and website development costs.
Key Metric Definitions
Traffic (Visits). Traffic is fundamental to our business. Traffic to the CARS network of websites and mobile apps provides value to our advertisers in terms of audience, awareness, consideration and conversion. In addition to tracking traffic volume and sources, we monitor activity on our properties, allowing us to innovate and refine our consumer-facing offerings. Traffic is defined as the number of visits to CARS desktop and mobile properties (responsive sites and mobile apps), measured using Adobe Analytics. Traffic does not include traffic to Dealer Inspire websites. Visits refers to the number of times visitors accessed CARS properties during the period, no matter how many visitors make up those visits. Traffic provides an indication of our consumer reach. Although our consumer reach does not directly result in revenue, we believe our ability to reach in-market car shoppers is attractive to our dealer customers and national advertisers.
Average Monthly Unique Visitors ("UVs"). Growth in unique visitors and consumer traffic to our network of websites and mobile apps increases the number of impressions, clicks, leads and other events. We define UVs in a given month as the number of distinct visitors that engage with our platform during that month. Visitors are identified when a user first visits an individual CARS property on an individual device/browser combination or installs one of our mobile apps on an individual device. If a visitor accesses more than one of our web properties or apps or uses more than one device or browser, each of those unique property/browser/app/device combinations counts towards the number of UVs. UVs do not include Dealer Inspire UVs. We measure UVs using Adobe Analytics.
Dealer Customers. Dealer Customers represent dealerships using our products as of the end of each reporting period. Each physical or virtual 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 Revenue Per Dealer ("ARPD"). We believe our ability to grow ARPD is an indicator of the value proposition of our products. We define ARPD as Direct retail revenue during the period divided by the monthly average number of direct dealer customers during the same period.
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of the federal securities laws. All statements other than statements of historical facts are forward-looking statements. Forward-looking statements include information concerning the impact of the COVID-19 pandemic on our industry, our dealer customers and our results of operations, our business strategies, strategic alternatives, plans and objectives, market potential, outlook, trends, future financial performance, planned operational and product improvements, potential strategic transactions, liquidity, including expense reduction and draws from our revolving credit facility, and other matters and involve known and unknown risks that are difficult to predict. As a result, our actual financial results, performance, achievements, strategic actions or prospects may differ materially from those expressed or implied by these forward-looking statements. These statements often include words such as "believe," "expect," "project," "anticipate," "outlook," "intend," "strategy," "plan," "estimate," "target," "seek," "will," "may," "would," "should," "could," "forecasts," "mission," "strive," "more," "goal" or similar expressions. Forward-looking statements are based on our current expectations, beliefs, strategies, estimates, projections and assumptions, based on our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments, current developments regarding the COVID-19 pandemic and other factors we think are appropriate. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by the Company and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. These statements are expressed in good faith and we believe these judgments are reasonable. However, you should understand that these statements are not guarantees of strategic action, performance or results. Our actual results and strategic actions could differ materially from those expressed in the forward-looking statements. Given these uncertainties, forward-looking statements should not be relied on in making investment decisions. Comparisons of results between current and prior periods are not intended to express any future trends, or indications of future performance, unless expressed as such, and should only be viewed as historical data. Whether or not any such forward-looking statement is in fact achieved will depend on future events, some of which are beyond our control.
Forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results and strategic actions to differ materially from those expressed in the forward-looking statements contained in this press release. For a detailed discussion of many of these and other risks and uncertainties, see our Annual Report on Form 10-K for the year ended December 31, 2019, our subsequent Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K and our other filings with the Securities and Exchange Commission, available on our website at investor.cars.com or via EDGAR at www.sec.gov. All forward-looking statements contained in this press release are qualified by these cautionary statements. You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties. The forward-looking statements contained in this press release are based only on information currently available to us and speak only as of the date of this press release. We undertake no obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.
The forward-looking statements in this report are intended to be subject to the safe harbor protection provided by the federal securities laws.
Cars.com Inc. | ||||||||
Consolidated Statements of Loss | ||||||||
(In thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2020 | 2019 | 2020 | 2019 | |||||
Revenue: | ||||||||
Direct | $ 123,955 | $ 122,878 | $ 332,558 | $ 349,162 | ||||
National advertising | 17,753 | 20,161 | 53,167 | 59,752 | ||||
Other | 2,684 | 3,642 | 8,770 | 11,215 | ||||
Retail | 144,392 | 146,681 | 394,495 | 420,129 | ||||
Wholesale | — | 5,409 | — | 34,366 | ||||
Total revenue | 144,392 | 152,090 | 394,495 | 454,495 | ||||
Operating expenses: | ||||||||
Cost of revenue and operations | 25,434 | 25,089 | 74,376 | 74,987 | ||||
Product and technology | 15,455 | 14,923 | 42,359 | 48,125 | ||||
Marketing and sales | 45,776 | 50,789 | 132,734 | 164,872 | ||||
General and administrative | 13,289 | 13,414 | 43,866 | 59,265 | ||||
Affiliate revenue share | — | 5,158 | 10,970 | 9,788 | ||||
Depreciation and amortization | 25,375 | 28,970 | 87,529 | 86,761 | ||||
Goodwill and intangible asset impairment | — | 461,463 | 905,885 | 461,463 | ||||
Total operating expenses | 125,329 | 599,806 | 1,297,719 | 905,261 | ||||
Operating income (loss) | 19,063 | (447,716) | (903,224) | (450,766) | ||||
Nonoperating expense: | ||||||||
Interest expense, net | (10,779) | (7,712) | (26,229) | (22,989) | ||||
Other income (expense), net | 1,957 | 1,402 | (6,987) | 1,530 | ||||
Total nonoperating expense, net | (8,822) | (6,310) | (33,216) | (21,459) | ||||
Income (loss) before income taxes | 10,241 | (454,026) | (936,440) | (472,225) | ||||
Income tax expense (benefit) | 22,502 | (27,869) | (112,101) | (31,011) | ||||
Net loss | $ (12,261) | $ (426,157) | $ (824,339) | $ (441,214) | ||||
Weighted-average common shares outstanding: | ||||||||
Basic | 67,295 | 66,769 | 67,163 | 67,043 | ||||
Diluted | 67,295 | 66,769 | 67,163 | 67,043 | ||||
Loss per share: | ||||||||
Basic | $ (0.18) | $ (6.38) | $ (12.27) | $ (6.58) | ||||
Diluted | (0.18) | (6.38) | (12.27) | (6.58) | ||||
Cars.com Inc. | ||||
Consolidated Balance Sheets | ||||
(In thousands, except per share data) | ||||
September 30, 2020 | December 31, 2019 | |||
(unaudited) | ||||
Assets: | ||||
Current assets: | ||||
Cash and cash equivalents | $ 43,769 | $ 13,549 | ||
Accounts receivable, net | 89,094 | 101,762 | ||
Prepaid expenses | 10,615 | 6,526 | ||
Other current assets | 10,571 | 603 | ||
Total current assets | 154,049 | 122,440 | ||
Property and equipment, net | 41,072 | 43,696 | ||
Goodwill | — | 505,885 | ||
Intangible assets, net | 857,055 | 1,329,499 | ||
Investments and other assets | 16,274 | 26,471 | ||
Total assets | $ 1,068,450 | $ 2,027,991 | ||
Liabilities and stockholders' equity: | ||||
Current liabilities: | ||||
Accounts payable | $ 19,896 | $ 12,431 | ||
Accrued compensation | 16,949 | 16,738 | ||
Current portion of long-term debt | 32,654 | 31,391 | ||
Other accrued liabilities | 43,377 | 38,246 | ||
Total current liabilities | 112,876 | 98,806 | ||
Noncurrent liabilities: | ||||
Long-term debt | 558,720 | 611,277 | ||
Deferred tax liability | 30,865 | 132,996 | ||
Other noncurrent liabilities | 43,616 | 43,844 | ||
Total noncurrent liabilities | 633,201 | 788,117 | ||
Total liabilities | 746,077 | 886,923 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Preferred Stock at par, | — | — | ||
Common Stock at par, | 672 | 668 | ||
Additional paid-in capital | 1,525,114 | 1,515,109 | ||
Accumulated deficit | (1,191,406) | (367,067) | ||
Accumulated other comprehensive loss | (12,007) | (7,642) | ||
Total stockholders' equity | 322,373 | 1,141,068 | ||
Total liabilities and stockholders' equity | $ 1,068,450 | $ 2,027,991 | ||
Cars.com Inc. | ||||
Consolidated Statements of Cash Flows | ||||
(In thousands) | ||||
(Unaudited) | ||||
Nine Months Ended September 30, | ||||
2020 | 2019 | |||
Cash flows from operating activities: | ||||
Net loss | $ (824,339) | $ (441,214) | ||
Adjustments to reconcile Net loss to Net cash provided by operating activities: | ||||
Depreciation | 15,085 | 13,427 | ||
Amortization of intangible assets | 72,444 | 73,334 | ||
Amortization of unfavorable contracts liability | — | (18,885) | ||
Goodwill and intangible asset impairment | 905,885 | 461,463 | ||
Impairment of non-marketable security | 9,447 | — | ||
Unrealized gain on interest rate swap | (2,482) | — | ||
Amortization of accumulated other comprehensive loss on interest rate swap | 2,101 | — | ||
Stock-based compensation | 10,338 | 5,258 | ||
Deferred income taxes | (102,199) | (52,741) | ||
Provision for doubtful accounts | 3,854 | 3,844 | ||
Amortization of debt issuance costs | 2,420 | 959 | ||
Other, net | 121 | 411 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | 8,814 | 3,295 | ||
Prepaid expenses | (4,089) | 1,672 | ||
Other current assets | (9,968) | 9,992 | ||
Other assets | 819 | -16,517 | ||
Accounts payable | 7,465 | -5,363 | ||
Accrued compensation | 211 | -2,233 | ||
Other accrued liabilities | 4,349 | 28,627 | ||
Other noncurrent liabilities | (3,410) | 15,221 | ||
Net cash provided by operating activities | 96,866 | 80,550 | ||
Cash flows from investing activities: | ||||
Purchase of property and equipment | (12,603) | (15,409) | ||
Other, net | — | (599) | ||
Net cash used in investing activities | (12,603) | (16,008) | ||
Cash flows from financing activities: | ||||
Proceeds from revolving loan borrowings | 165,000 | 10,000 | ||
Payments of debt issuance costs and other fees | (3,402) | — | ||
Payments of long-term debt | (215,312) | (39,688) | ||
Stock-based compensation plans, net | (329) | (352) | ||
Repurchases of common stock | — | (40,000) | ||
Other | — | (192) | ||
Net cash used in financing activities | (54,043) | (70,232) | ||
Net increase (decrease) in cash and cash equivalents | 30,220 | (5,690) | ||
Cash and cash equivalents at beginning of period | 13,549 | 25,463 | ||
Cash and cash equivalents at end of period | $ 43,769 | $ 19,773 | ||
Supplemental cash flow information: | ||||
Cash paid for income taxes, net of refunds | $ 478 | $ 168 | ||
Cash paid for interest | 21,512 | 22,413 | ||
Cars.com Inc. | ||||||||
Non-GAAP Reconciliations | ||||||||
(In thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2020 | 2019 | 2020 | 2019 | |||||
Reconciliation of Net loss to Adjusted EBITDA | ||||||||
Net loss | $ (12,261) | $ (426,157) | $ (824,339) | $ (441,214) | ||||
Interest expense, net | 10,779 | 7,712 | 26,229 | 22,989 | ||||
Income tax expense (benefit) | 22,502 | (27,869) | (112,101) | (31,011) | ||||
Depreciation and amortization | 25,375 | 28,970 | 87,529 | 86,761 | ||||
Goodwill and intangible asset impairment | — | 461,463 | 905,885 | 461,463 | ||||
Stock-based compensation | 4,189 | (1,160) | 10,476 | 5,404 | ||||
Write-off of long-lived assets and other | 2 | (111) | 9,580 | 529 | ||||
Severance, transformation and other exit costs | 289 | 2,114 | 6,457 | 9,625 | ||||
Transaction-related costs | 59 | — | 176 | 4,623 | ||||
Costs associated with the stockholder activist campaign | — | 905 | — | 8,825 | ||||
Unrealized gain on interest rate swap | (1,924) | — | (2,482) | — | ||||
Adjusted EBITDA* | $ 49,010 | $ 45,867 | $ 107,410 | $ 127,994 | ||||
Reconciliation of Net loss to Adjusted net income | ||||||||
Net loss | $ (12,261) | $ (426,157) | $ (824,339) | $ (441,214) | ||||
Amortization of intangible assets | 21,889 | 24,621 | 72,444 | 73,334 | ||||
Goodwill and intangible asset impairment | — | 461,463 | 905,885 | 461,463 | ||||
Stock-based compensation | 4,189 | (1,160) | 10,476 | 5,404 | ||||
Write-off of long-lived assets and other | 2 | (111) | 9,580 | 529 | ||||
Severance, transformation and other exit costs | 289 | 2,114 | 6,457 | 9,625 | ||||
Transaction-related costs | 59 | — | 176 | 4,623 | ||||
Costs associated with the stockholder activist campaign | — | 905 | — | 8,825 | ||||
Unrealized gain on interest rate swap | (1,924) | — | (2,482) | — | ||||
Tax impact of adjustments | 22,323 | (40,347) | (113,903) | (60,565) | ||||
Adjusted net income* | $ 34,566 | $ 21,328 | $ 64,294 | $ 62,024 | ||||
Adjusted net income per share, diluted | $ 0.50 | $ 0.32 | $ 0.94 | $ 0.92 | ||||
Weighted-average common shares outstanding, diluted** | 68,903 | 66,935 | 68,147 | 67,395 | ||||
Reconciliation of Net cash provided by operating activities to Free cash flow | ||||||||
Net cash provided by operating activities | $ 39,237 | $ 29,795 | $ 96,866 | $ 80,550 | ||||
Purchase of property and equipment | (3,878) | (6,055) | (12,603) | (15,409) | ||||
Free cash flow | $ 35,359 | $ 23,740 | $ 84,263 | $ 65,141 | ||||
* There was no unfavorable contract liability amortization during 2020 as it was fully amortized as of September 30, 2019. Additionally for 2019, amortization of unfavorable contracts liability is not adjusted out of Adjusted EBITDA or Adjusted net income. | ||||||||
** Weighted-average common shares outstanding, diluted, includes shares excluded from GAAP loss per share due to the net loss position for the three and nine months ended September 30, 2020 and September 30, 2019. |
Cars.com Inc. | ||||||||
Supplemental Information | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Expense category for the Three Months Ended September 30, 2020: | ||||||||
As Reported | Adjustments (1) | Stock-Based | As Adjusted | |||||
Cost of revenue and operations | $ 25,434 | $ — | $ (165) | $ 25,269 | ||||
Product and technology | 15,455 | — | (943) | 14,512 | ||||
Marketing and sales | 45,776 | — | (1,010) | 44,766 | ||||
General and administrative | 13,289 | (350) | (2,071) | 10,868 | ||||
Affiliate revenue share | — | — | — | — | ||||
Depreciation and amortization | 25,375 | — | — | 25,375 | ||||
Goodwill and intangible asset impairment | — | — | — | — | ||||
Total operating expenses | $ 125,329 | $ (350) | $ (4,189) | $ 120,790 | ||||
Total nonoperating expense, net | $ (8,822) | $ — | $ — | $ (8,822) | ||||
(1) Includes severance, transformation and other exit costs, transaction-related costs, and write-off of long-lived assets and other. | ||||||||
Expense category for the Three Months Ended September 30, 2019: | ||||||||
As Reported | Adjustments (1) | Stock-Based | As Adjusted | |||||
Cost of revenue and operations | $ 25,089 | $ — | $ 79 | $ 25,168 | ||||
Product and technology | 14,923 | — | 893 | 15,816 | ||||
Marketing and sales | 50,789 | — | (172) | 50,617 | ||||
General and administrative | 13,414 | (4,308) | 360 | 9,466 | ||||
Affiliate revenue share | 5,158 | — | — | 5,158 | ||||
Depreciation and amortization | 28,970 | — | — | 28,970 | ||||
Goodwill and intangible asset impairment | 461,463 | (461,463) | — | — | ||||
Total operating expenses | $ 599,806 | $ (465,771) | $ 1,160 | $ 135,195 | ||||
Total nonoperating expense, net | $ (6,310) | $ (1,400) | $ — | $ (7,710) | ||||
(1) Includes write-off and impairments of goodwill, intangible assets and other long-lived assets and other, severance, | ||||||||
Expense category for the Nine Months Ended September 30, 2020: | ||||||||
As Reported | Adjustments (1) | Stock-Based | As Adjusted | |||||
Cost of revenue and operations | $ 74,376 | $ — | $ (366) | $ 74,010 | ||||
Product and technology | 42,359 | — | (2,430) | 39,929 | ||||
Marketing and sales | 132,734 | — | (2,489) | 130,245 | ||||
General and administrative | 43,866 | (6,766) | (5,191) | 31,909 | ||||
Affiliate revenue share | 10,970 | — | — | 10,970 | ||||
Depreciation and amortization | 87,529 | — | — | 87,529 | ||||
Goodwill and intangible asset impairment | 905,885 | (905,885) | — | — | ||||
Total operating expenses | $ 1,297,719 | $ (912,651) | $ (10,476) | $ 374,592 | ||||
Total nonoperating expense, net | $ (33,216) | $ 9,447 | $ — | $ (23,769) | ||||
(1) Includes write-off and impairments of goodwill, intangible assets and other long-lived assets and other, severance, | ||||||||
Expense category for the Nine Months Ended September 30, 2019: | ||||||||
As Reported | Adjustments (1) | Stock-Based | As Adjusted | |||||
Cost of revenue and operations | $ 74,987 | $ — | $ (68) | $ 74,919 | ||||
Product and technology | 48,125 | — | (658) | 47,467 | ||||
Marketing and sales | 164,872 | — | (1,170) | 163,702 | ||||
General and administrative | 59,265 | (25,002) | (3,508) | 30,755 | ||||
Affiliate revenue share | 9,788 | — | — | 9,788 | ||||
Depreciation and amortization | 86,761 | — | — | 86,761 | ||||
Goodwill and intangible asset impairment | 461,463 | (461,463) | — | — | ||||
Total operating expenses | $ 905,261 | $ (486,465) | $ (5,404) | $ 413,392 | ||||
Total nonoperating expense, net | $ (21,459) | $ (1,400) | $ — | $ (22,859) | ||||
(1) Includes write-off and impairments of goodwill, intangible assets and other long-lived assets and other, severance, transformation and other exit costs, costs associated with the stockholder activist campaign and transaction-related costs. |
CARS Investor Relations Contact:
Kamal Hamid
khamid@cars.com
312.601.5110
CARS Media Contact:
Marita Thomas
mthomas@cars.com
312.601.5692
View original content to download multimedia:http://www.prnewswire.com/news-releases/cars-reports-third-quarter-2020-results-301168374.html
SOURCE Cars.com Inc.
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