DealerTrack’s First Quarter Profit Increase Driven by Improving Market Conditions
LAKE SUCCESS — Strong car sales and an improving credit environment led to a first quarter revenue increase for DealerTrack Holdings Inc., company officials reported today.
Revenue increased to $77.2 million from $56.9 million in the year ago quarter. The company’s net profit for the quarter stood at $24.7 million, a turnaround from the $2.5 million net loss it reported a year ago.
“We are very pleased with our results for the first quarter as our transaction business benefited from strong car sales and a significant improvement in the credit environment, particularly subprime lending,” Mark O’Neil, chairman and CEO of DealerTrack, stated in a company press release. “In addition, the momentum in our subscription business is very strong, as dealers are feeling more confident and increasingly willing to invest in solutions that will improve their operations.”
Adjusted earnings before interest, taxes, depreciation and amortization stood at $12.9 million for the quarter, up from $4.9 million in the year-ago period. Adjusted net income was $7.5 million, up from $2.1 million in the first quarter last year.
Based on its first quarter results, the company raised its revenue and earnings outlook for 2011. Revenue, officials said, should end the year between $324 million and $330 million. The company’s initial estimate for full-year revenue was between $316 million and $324 million.
Company officials also raised net income estimates from between $2.9 million and $5.4 million to a range of $24 million and $26.5 million.
The new estimates, officials said, assume that new- and used-car sales will end the year at approximately 12.8 million and 13 million units, respectively.
“Today’s results illustrate the leverage in our business model, which, if car sales and credit availability continue to improve, will enable us to continue to deliver strong results,” O’Neil said.
More Industry
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
Consumer Outlook on the Rise
Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.
Read More →
Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →