CarGurus(US:CARG)2021-11-08 16:00PART I. FINANCIAL INFORMATION This section provides a comprehensive overview of the company's financial performance, position, and management's analysis Item 1. Financial Statements This section presents unaudited condensed consolidated financial statements, including balance sheets, income, comprehensive income, equity, cash flows, and detailed notes Unaudited Condensed Consolidated Balance Sheets This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | Sep 30, 2021 | Dec 31, 2020 | Change | % Change | | :------------------------------------- | :----------- | :----------- | :----- | :------- | | Total Assets | $819,917 | $502,298 | $317,619 | 63.23% | | Current Assets | $441,509 | $331,976 | $109,533 | 33.00% | | Goodwill | $155,707 | $29,129 | $126,578 | 434.57% | | Intangible Assets, net | $92,421 | $10,862 | $81,559 | 750.87% | | Total Liabilities | $176,028 | $128,712 | $47,316 | 36.76% | | Total Stockholders' Equity | $589,256 | $373,586 | $215,670 | 57.73% | - The significant increase in total assets, particularly goodwill and intangible assets, is largely attributable to the acquisition of a 51% interest in CarOffer, LLC118692 Unaudited Condensed Consolidated Income Statements This section details the company's financial performance over specific periods, presenting revenues, expenses, and net income Condensed Consolidated Income Statement Highlights (in thousands) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Revenue | $222,915 | $147,472 | $612,031 | $399,898 | | Gross Profit | $162,882 | $137,710 | $477,623 | $368,646 | | Income from Operations | $40,076 | $43,567 | $104,344 | $64,295 | | Consolidated Net Income | $29,267 | $32,563 | $76,214 | $52,390 | | Net Income Attributable to Common Stockholders | $29,199 | $32,563 | $79,612 | $52,390 | | Basic EPS | $0.25 | $0.29 | $0.68 | $0.46 | | Diluted EPS | $0.24 | $0.29 | $0.66 | $0.46 | - Revenue increased significantly by 51% for the three months and 53% for the nine months ended September 30, 2021, compared to the prior year, while consolidated net income for the three-month period decreased by 10.12% year-over-year, and for the nine-month period, it increased by 45.47%14 Unaudited Condensed Consolidated Statements of Comprehensive Income This section presents the company's comprehensive income, including net income and other comprehensive income items Condensed Consolidated Statements of Comprehensive Income (in thousands) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Consolidated Net Income | $29,267 | $32,563 | $76,214 | $52,390 | | Foreign Currency Translation Adjustment | $(738) | $1,013 | $(1,573) | $1,001 | | Consolidated Comprehensive Income | $28,529 | $33,576 | $74,641 | $53,391 | | Comprehensive Income Attributable to Common Stockholders | $28,461 | $33,576 | $78,039 | $53,391 | - Consolidated comprehensive income decreased by 15.03% for the three months ended September 30, 2021, primarily due to a negative foreign currency translation adjustment, while for the nine-month period, it increased by 39.80%19 Unaudited Condensed Consolidated Statements of Redeemable Noncontrolling Interest and Stockholders' Equity This section details changes in equity, including redeemable noncontrolling interest and stockholders' equity components Key Changes in Equity and Noncontrolling Interest (in thousands) | Metric | Dec 31, 2020 | Sep 30, 2021 | Change | | :------------------------------------- | :----------- | :----------- | :----- | | Redeemable Noncontrolling Interest | $0 | $54,633 | $54,633 | | Additional Paid-in Capital | $242,181 | $379,808 | $137,627 | | Retained Earnings | $129,412 | $209,024 | $79,612 | | Total Stockholders' Equity | $373,586 | $589,256 | $215,670 | - The Redeemable Noncontrolling Interest of $54.6 million at September 30, 2021, is a new item resulting from the acquisition of a 51% interest in CarOffer, LLC2352 - Additional paid-in capital increased significantly, partly due to the issuance of common stock for the CarOffer acquisition ($103.6 million)2387 Unaudited Condensed Consolidated Statements of Cash Flows This section outlines the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) – Nine Months Ended Sep 30 | Activity | 2021 | 2020 | Change | % Change | | :------------------------------------- | :----------- | :----------- | :----- | :------- | | Net Cash Provided by Operating Activities | $135,063 | $108,806 | $26,257 | 24.13% | | Net Cash (Used in) Provided by Investing Activities | $(63,353) | $84,859 | $(148,212) | -174.66% | | Net Cash Used in Financing Activities | $(25,056) | $(7,741) | $(17,315) | 223.68% | | Net Increase in Cash, Cash Equivalents, and Restricted Cash | $46,295 | $186,095 | $(139,800) | -75.12% | - Investing activities shifted from providing cash in 2020 to using cash in 2021, primarily due to $64.3 million cash paid for acquisitions (net of cash acquired) in 202127259 - Financing activities used significantly more cash in 2021, driven by a $14.3 million repayment of CarOffer's line of credit and $11.3 million in withholding taxes for stock settlements27262 Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements Note 1. Organization and Business Description This note describes the company's operational structure, key brands, and business activities - CarGurus, Inc. operates as a multinational online automotive platform, enhancing its listings marketplace with digital retail solutions and the CarOffer online wholesale platform31 - Key brands include CarGurus marketplace, Autolist (wholly owned), and CarOffer (51% interest) in the United States, and CarGurus and PistonHeads (wholly owned) in Canada and the United Kingdom33 - The company ceased online