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EX-10.1 - TRANSITIONAL LICENSE AND LINKING AGREEMENT, MADE AS OF JANUARY 1, 2017, BY AND A - AutoWeb, Inc. | ex10-1.htm |
8-K - FORM 8-K - AutoWeb, Inc. | abtl8k_dec312016.htm |
Exhibit 99.1
Autobytel Completes Sale of Specialty Finance Leads Product to
Internet Brands
IRVINE, California – January 3, 2017 – Autobytel
Inc. (NASDAQ: ABTL), a pioneer and leading provider of digital
automotive services connecting in-market car buyers with dealers
and OEMs, has completed the sale of its specialty finance leads
(SFL) product to Internet Brands, Inc.
Total
consideration includes $3.2 million of cash as well as additional
transition licensing income totaling $1.6 million over a five-year
period.
SFL
revenue in 2016 is expected to be $6.4 million with $0.5 million of
contribution to operating income. In 2015, SFL revenue and
operating income contribution was $6.5 million and $0.5 million,
respectively.
With
the sale, Autobytel will dedicate further resources to its
fastest-growing core vehicle lead and click products.
Tax Benefit Preservation Plan
At
December 31, 2015, the company had approximately $88.2 million in
available net operating loss carryforwards ("NOLs") for U.S.
federal income tax purposes. The company's Tax Benefit Preservation
Plan ("Plan") was adopted by the company's Board of Directors to
preserve the company's NOLs and other tax attributes and thus
reduce the risk of a possible change of ownership under Section 382
of the Internal Revenue Code. Any such change of ownership under
Section 382 would limit or eliminate the ability of the company to
use its existing NOLs for federal income tax purposes. Rights
issued under the Plan could be triggered upon the acquisition by
any person or group of 4.9% or more of the company's outstanding
common stock and could result in substantial dilution of the
acquirer's percentage ownership in the company. As of October 31,
2016, there were 10,962,330 shares of the company’s common
stock, $0.001 par value, outstanding. There is no guarantee that
the Plan will achieve the objective of preserving the value of the
company's NOLs. For more information, please visit http://investor.autobytel.com/tax.cfm.
About Autobytel Inc.
Autobytel
Inc. provides high quality consumer leads and associated marketing
services to automotive dealers and manufacturers throughout the
United States. The company also provides consumers with robust and
original online automotive content to help them make informed
car-buying decisions. The company pioneered the automotive Internet
in 1995 with its flagship website www.autobytel.com and has since
helped tens of millions of automotive consumers research vehicles;
connected thousands of dealers nationwide with motivated car
buyers; and has helped every major automaker market its brand
online.
Forward-Looking Statements Disclaimer
The
statements contained in this press release that are not historical
facts are forward-looking statements under the federal securities
laws. Words such as "anticipates," "could," "may," "estimates,"
"expects," "projects," "intends," pending," "plans," "believes,"
"will" and words of similar substance, or the negative of those
words, used in connection with any discussion of future operations
or financial performance identify forward-looking statements. In
particular, statements regarding expectations and opportunities,
new product expectations and capabilities, and our outlook
regarding our performance and growth are forward-looking
statements. These forward-looking statements, including that for
calendar year 2016, SFL revenue is expected to be $6.4 million with
$0.5 million of contribution to operating profit, are not
guarantees of future performance and involve assumptions and risks
and uncertainties that are difficult to predict. Actual outcomes
and results may differ materially from what is expressed in, or
implied by, these forward-looking statements. Autobytel undertakes
no obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or otherwise.
Among the important factors that could cause actual results to
differ materially from those expressed in, or implied by, the
forward-looking statements are changes in general economic
conditions; the financial condition of automobile manufacturers and
dealers; disruptions in automobile production; changes in fuel
prices; the economic impact of terrorist attacks, political
revolutions or military actions; failure of our internet security
measures; dealer attrition; pressure on dealer fees; increased or
unexpected competition; the failure of new products and services to
meet expectations; failure to retain key employees or attract and
integrate new employees; actual costs and expenses exceeding
charges taken by Autobytel; changes in laws and regulations; costs
of legal matters, including, defending lawsuits and undertaking
investigations and related matters; and other matters disclosed in
Autobytel's filings with the Securities and Exchange Commission.
Investors are strongly encouraged to review the company's Annual
Report on Form 10-K for the year ended December 31, 2015 and other
filings with the Securities and Exchange Commission for a
discussion of risks and uncertainties that could affect the
business, operating results or financial condition of Autobytel and
the market price of the company's stock. Investors and other
interested parties can receive Autobytel news alerts and special
event invitations by accessing the online registration form at
investor.autobytel.com/alerts.cfm.
Company Contact
Kimberly
Boren
Chief
Financial Officer
949-862-1396
kimb@autobytel.com
Investor Relations
Liolios
Cody
Slach or Sean Mansouri
949-574-3860
ABTL@liolios.com