CBLT's earnings reported a few days ago really isn't that bad, really. (COMTEX) B: Cobalt Announces Third Quarter 1999 Financial Results; Re
B: Cobalt Announces Third Quarter 1999 Financial Results; Record Revenues Increase 30% Over Q2 1999; Up 328% Over Q3 1998
SEATTLE, Oct 19, 1999 (BUSINESS WIRE) -- The Cobalt Group, Inc.
(NASDAQ:CBLT), a leading provider of automotive e-commerce products and
services to automobile dealers and manufacturers, today announced
financial results for its third quarter, ended September 30, 1999.
Revenues for the third quarter 1999 increased to $7.0 million, an
increase of 30% from revenues of $5.4 million in the second quarter of
1999, and a 328% increase over $1.6 million for the third quarter of
1998. For the nine months ended September 30, 1999, revenues increased
274% to $14.9 million, from $4.0 million during the comparable
nine-month period in 1998. During the third quarter of 1999, $4.2
million of revenues were derived from Internet marketing services. This
compares to $3.6 million for the second quarter of 1999. The remaining
$2.8 million of third quarter revenues is attributable to Cobalt's
PartsVoice subsidiary, which was acquired on April 30, 1999. PartsVoice
accounted for $1.8 million of second quarter revenues.
Net loss for the third quarter of 1999 was $5.5 million, or $0.37 per
share, compared with a second quarter 1999 net loss of $3.8 million, or
$0.33 per share, and a net loss of $1.7 million or $0.22 per share in
the third quarter of 1998. Net loss for the nine months ended September
30, 1999 was $11.7 million, or $0.94 per share, compared to a net loss
of $1.5 million, or $0.19 per share, for the comparable nine-month
period in 1998. Net loss for the third quarter of 1999 excluding
depreciation, amortization of goodwill and deferred compensation and
net interest expense was $2.5 million or $0.16 per share. All per-share
amounts are computed on a pro forma diluted basis, which assumes
conversion of the convertible preferred stock from the original date of
issuance.
"Record revenues were driven by strong growth in Cobalt's automobile
dealer client base, particularly for our Internet marketing services,"
commented Geof Barker, Cobalt's co-Chief Executive Officer. "Successful
launches of Internet marketing services to the dealer networks of three
auto manufacturers as well as sales of additional services to existing
clients spurred both increased client acquisition and higher average
revenues per client."
With nearly 1,000 new client additions during the third quarter 1999,
Cobalt managed and maintained Web sites for approximately 4,600 dealer
clients as of September 30, 1999, including more than 50 of the 100
largest dealer groups in the U.S. Average revenue per client for Web
site services increased to $214 per month for the third quarter 1999
compared to $190 per month for the second quarter 1999.
"We are very pleased with the results of the quarter," said John Holt,
co-Chief Executive Officer. "With the PartsVoice integration underway
and our IPO complete, we have new opportunities and the resources to
continue investing in the Company. We will continue to develop new
products, grow our customer base and scale our operations to support
our clients. The more value we can bring to each of our clients, the
more revenue we can generate."
On August 5, 1999, Cobalt completed an initial public offering of 4.5
million shares of common stock at an initial public offering price of
$11.00 per share. On August 11, 1999, Cobalt completed a direct sale of
454,545 shares of common stock to GE Financial Assurance Holdings, Inc.
for an aggregate purchase price of $5.0 million. All of the shares were
offered by the Company. BancBoston Robertson Stephens Inc., Bear,
Stearns & Co. Inc., SG Cowen Securities Corporation, and Wit Capital
Corporation underwrote the offering. Proceeds from the IPO and direct
sale were partially used to fully repay debt associated with the
PartsVoice acquisition.
In October, the Company retained Golin/Harris International, a
full-service public relations firm. Golin/Harris clients include
DaimlerChrysler, Michelin, McDonald's Corporation, Texas Instruments
and Nintendo of America Inc. In addition, the Company also retained The
Snyder Buscher Group, a Seattle-based investor relations firm.
About The Cobalt Group, Inc.
The Cobalt Group(TM) (NASDAQ:CBLT), based in Seattle, is a leading
provider of automotive e-commerce products and services. Through Web
development and hosting, data management and online car shopping
services, Cobalt drives value to automotive consumers, dealers and
manufacturers nationwide.
With approximately 4,600 dealer clients, the Company has been endorsed
by 12 automotive manufacturers and more than 50 of the 100 largest
dealer groups in the United States. Cobalt operates DealerNet(R)
(www.dealernet.com), one of the best-known automotive destination sites
on the Web, and PartsVoice(R) (www.partsvoice.com), a leading
aftermarket auto parts locating service. For more information, please
visit The Cobalt Group at www.cobaltgroup.com.
The Cobalt Group's headquarters are at 2030 First Avenue, Suite 300,
Seattle, WA 98121; 800/909-8244 or 206/269-6363. |
