Cars.com(US:CARS)2021-11-03 16:00Financial Performance - Total revenue for the three months ended September 30, 2021, was $156,553 thousand, an increase of 8.0% from $144,392 thousand in the same period of 2020[14]. - Net income for the three months ended September 30, 2021, was $2,431 thousand, compared to a net loss of $12,261 thousand in the same period of 2020[17]. - Operating income for the three months ended September 30, 2021, was $12,074 thousand, down from $19,063 thousand in the same period of 2020[14]. - Total revenue for the third quarter of 2021 was $156.6 million, a 8.0% increase from $144.4 million in the same quarter of 2020[34]. - The company reported a comprehensive income of $3,633 thousand for the three months ended September 30, 2021, compared to a comprehensive loss of $9,170 thousand in the same period of 2020[17]. - Net income for the nine months ended September 30, 2021, was $13.675 million, a significant improvement compared to a net loss of $824.339 million for the same period in 2020[24]. - For the nine months ended September 30, 2021, revenue reached $465.4 million, compared to $394.5 million in the same period of 2020, marking an 18.0% increase[91]. - The net income for the nine months ended September 30, 2021, was $13.7 million, contrasting with a net loss of $824.3 million in the same period of 2020, primarily due to a goodwill impairment[91]. Assets and Liabilities - Total current assets decreased to $161,710 thousand as of September 30, 2021, from $178,081 thousand as of December 31, 2020, representing a decline of 9.2%[11]. - Total liabilities decreased to $631,567 thousand as of September 30, 2021, from $735,536 thousand as of December 31, 2020, a reduction of 14.1%[11]. - Long-term debt decreased to $470,520 thousand as of September 30, 2021, from $576,143 thousand as of December 31, 2020, a decrease of 18.3%[11]. - The balance of accumulated deficit as of September 30, 2021, was $(1,170.512) million, reflecting ongoing challenges in profitability[24]. - Cash and cash equivalents at the end of the period were $51.507 million, compared to $43.769 million at the end of the same period in 2020[24]. - The outstanding aggregate principal amount of debt was $490.0 million as of September 30, 2021, with an effective interest rate of 5.7%[147]. Cash Flow - Cash provided by operating activities for the nine months ended September 30, 2021, was $116.226 million, compared to $96.866 million for the same period in 2020[24]. - The company reported a net cash decrease of $16.212 million for the nine months ended September 30, 2021, compared to an increase of $30.220 million in the same period of 2020[24]. - The company made $107.500 million in payments of long-term debt during the nine months ended September 30, 2021, compared to $215.312 million in the same period of 2020[24]. - Cash used in investing activities increased to $(17.9) million in 2021 from $(12.6) million in 2020, a change of $(5.3) million[153]. - Cash used in financing activities was $(114.6) million in 2021, primarily due to $107.5 million of debt repayments, compared to $(54.0) million in 2020[155]. Stockholders' Equity - Total stockholders' equity increased to $366,560 thousand as of September 30, 2021, from $340,176 thousand as of December 31, 2020, an increase of 7.8%[11]. - The company reported a stockholders' equity of $366.560 million as of September 30, 2021, indicating a slight increase from previous periods[24]. Digital Solutions and Strategy - The company has a diverse portfolio of brands including Cars.com, Dealer Inspire, and Auto.com, focusing on digital solutions for the automotive marketplace[27]. - The company’s digital solutions strategy aims to enhance dealer inventory visibility and connect sellers with potential buyers, leveraging rich data from its marketplace[27]. - The company’s digital solutions strategy leverages rich data and audience engagement to drive growth and efficiency in the automotive industry[90]. Customer Metrics - Dealer Customers increased by 1% to 19,029 as of September 30, 2021, compared to 18,845 as of June 30, 2021, and up 5% from 18,130 as of September 30, 2020[100][109]. - Dealer revenue, which represents 89.0% of total revenue, increased by $15.4 million or 12% year-over-year, driven by a 7% increase in Average Revenue Per Dealer (ARPD) and a 5% increase in Dealer Customers[115]. - Average Revenue Per Dealer (ARPD) increased by 1% from June 30, 2021, and by 7% from September 30, 2020, primarily due to growth in FUEL revenue and digital solutions[107]. Expenses - Operating expenses for the three months ended September 30, 2021, totaled $144,479 thousand, an increase of 15.3% from $125,329 thousand in the same period of 2020[14]. - Marketing and sales expense represented 33.6% of total revenue for the nine months ended September 30, 2021, reflecting continued investment in marketing[135]. - General and administrative expense increased to 10.1% of total revenue for the nine months ended September 30, 2021, due to increased compensation costs[136]. - Product and technology expense increased to 12.1% of total revenue for the nine months ended September 30, 2021, due to continued investment in the business[134]. Tax and Refunds - The effective income tax rate for the nine months ended September 30, 2021, was 8.4%, down from 12.0% in the same period of 2020[60]. - The company received a $9.1 million tax refund during the nine months ended September 30, 2021, related to the carryback of federal and state income tax net operating loss due to the CARES Act[59]. Acquisitions - In November 2021, the company signed an agreement to acquire CreditIQ, Inc. for $30 million, with potential additional payments of up to $50 million based on future performance[62].