2015 Q3 Form 10-Q Financial Statement

#000132731815000007 Filed on August 12, 2015

View on sec.gov

Income Statement

Concept 2015 Q3 2015 Q2 2014 Q2
Revenue $72.41M $65.29M $50.50M
YoY Change 27.58% 29.3% 61.75%
Cost Of Revenue $5.950M $5.930M $4.140M
YoY Change 27.41% 43.24% 12.81%
Gross Profit $66.45M $59.36M $46.36M
YoY Change 27.57% 28.04% 68.28%
Gross Profit Margin 91.78% 90.92% 91.81%
Selling, General & Admin $60.44M $58.86M $49.73M
YoY Change 17.77% 18.36% 123.41%
% of Gross Profit 90.95% 99.16% 107.27%
Research & Development $12.34M $10.98M $8.510M
YoY Change 13.11% 29.02% 51.42%
% of Gross Profit 18.57% 18.5% 18.36%
Depreciation & Amortization $4.450M $4.120M $2.960M
YoY Change 32.84% 39.19% 5.34%
% of Gross Profit 6.7% 6.94% 6.38%
Operating Expenses $60.44M $58.86M $49.73M
YoY Change 17.77% 18.36% 61.78%
Operating Profit -$10.80M -$14.60M -$14.86M
YoY Change -20.16% -1.74% 365.71%
Interest Expense $159.0K $118.0K $131.0K
YoY Change 488.89% -9.92% -127.29%
% of Operating Profit
Other Income/Expense, Net $0.00 $3.000K $10.00K
YoY Change -100.0% -70.0% 0.0%
Pretax Income -$10.93M -$14.69M -$14.97M
YoY Change -19.14% -1.86% 307.82%
Income Tax $173.0K $50.00K $67.00K
% Of Pretax Income
Net Earnings -$11.11M -$14.74M -$15.03M
YoY Change -18.59% -1.96% 295.63%
Net Earnings / Revenue -15.34% -22.57% -29.77%
Basic Earnings Per Share
Diluted Earnings Per Share -$134.8K -$179.7K -$221.7K
COMMON SHARES
Basic Shares Outstanding 82.38M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q3 2015 Q2 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $123.7M $126.0M $111.8M
YoY Change 9.47% 12.7%
Cash & Equivalents $123.7M $126.0M $111.8M
Short-Term Investments
Other Short-Term Assets $1.848M $3.106M $9.400M
YoY Change -76.0% -66.96%
Inventory
Prepaid Expenses $5.076M $8.533M
Receivables $37.39M $30.63M $24.80M
Other Receivables $0.00 $0.00 $700.0K
Total Short-Term Assets $168.0M $168.2M $146.7M
YoY Change 11.72% 14.68%
LONG-TERM ASSETS
Property, Plant & Equipment $67.98M $60.36M $17.10M
YoY Change 136.86% 252.99%
Goodwill $53.27M $53.27M
YoY Change
Intangibles $24.85M $25.88M
YoY Change
Long-Term Investments
YoY Change
Other Assets $989.0K $691.0K $500.0K
YoY Change 147.25% 38.2%
Total Long-Term Assets $147.1M $140.2M $100.9M
YoY Change 32.03% 38.95%
TOTAL ASSETS
Total Short-Term Assets $168.0M $168.2M $146.7M
Total Long-Term Assets $147.1M $140.2M $100.9M
Total Assets $315.1M $308.4M $247.6M
YoY Change 20.36% 24.57%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $22.73M $12.68M $9.200M
YoY Change 83.33% 37.86%
Accrued Expenses $13.31M $14.09M $21.00M
YoY Change -36.92% -32.92%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $41.84M $32.59M $30.20M
YoY Change 8.96% 7.91%
LONG-TERM LIABILITIES
Long-Term Debt $27.00M $26.50M $0.00
YoY Change 350.0%
Other Long-Term Liabilities $546.0K $572.0K $500.0K
YoY Change 9.2% 14.4%
Total Long-Term Liabilities $546.0K $572.0K $500.0K
YoY Change -91.6% 14.4%
TOTAL LIABILITIES
Total Short-Term Liabilities $41.84M $32.59M $30.20M
Total Long-Term Liabilities $546.0K $572.0K $500.0K
Total Liabilities $72.07M $62.19M $32.90M
YoY Change 53.01% 89.03%
SHAREHOLDERS EQUITY
Retained Earnings -$248.5M -$237.4M
YoY Change
Common Stock $491.5M $483.6M
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $243.0M $246.2M $214.7M
YoY Change
Total Liabilities & Shareholders Equity $315.1M $308.4M $247.6M
YoY Change 20.36% 24.57%

Cashflow Statement

Concept 2015 Q3 2015 Q2 2014 Q2
OPERATING ACTIVITIES
Net Income -$11.11M -$14.74M -$15.03M
YoY Change -18.59% -1.96% 295.63%
Depreciation, Depletion And Amortization $4.450M $4.120M $2.960M
YoY Change 32.84% 39.19% 5.34%
Cash From Operating Activities $2.750M -$9.300M -$4.150M
YoY Change 79.74% 124.1% -299.52%
INVESTING ACTIVITIES
Capital Expenditures -$5.600M -$8.860M -$2.570M
YoY Change -25.83% 244.75% 35.98%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00 -$60.00K
YoY Change -100.0% -100.0% -120.69%
Cash From Investing Activities -$5.600M -$8.860M -$2.640M
YoY Change 0.9% 235.61% 65.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 590.0K 1.060M 76.06M
YoY Change -88.59% -98.61% -3960.91%
NET CHANGE
Cash From Operating Activities 2.750M -9.300M -4.150M
Cash From Investing Activities -5.600M -8.860M -2.640M
Cash From Financing Activities 590.0K 1.060M 76.06M
Net Change In Cash -2.260M -17.10M 69.27M
YoY Change -296.52% -124.69% -4748.99%
FREE CASH FLOW
Cash From Operating Activities $2.750M -$9.300M -$4.150M
Capital Expenditures -$5.600M -$8.860M -$2.570M
Free Cash Flow $8.350M -$440.0K -$1.580M
YoY Change -8.04% -72.15% -139.8%

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0 USD
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CY2015Q2 us-gaap Line Of Credit Facility Remaining Borrowing Capacity
LineOfCreditFacilityRemainingBorrowingCapacity
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us-gaap Net Cash Provided By Used In Continuing Operations
NetCashProvidedByUsedInContinuingOperations
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us-gaap Net Cash Provided By Used In Continuing Operations
NetCashProvidedByUsedInContinuingOperations
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us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
75895000 USD
us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
4919000 USD
us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
-1439000 USD
us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
-14032000 USD
us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
-6430000 USD
us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
-12457000 USD
CY2014Q2 us-gaap Net Income Loss
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-15034000 USD
us-gaap Net Income Loss
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CY2015Q2 us-gaap Net Income Loss
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us-gaap Net Income Loss
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us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 Segment
CY2014Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-14856000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
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CY2015Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-14598000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
-25998000 USD
CY2014Q2 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
700000 USD
us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
1300000 USD
CY2015Q2 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
1100000 USD
us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
2100000 USD
CY2014Q4 us-gaap Other Assets Current
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3040000 USD
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OtherAssetsCurrent
3106000 USD
CY2014Q4 us-gaap Other Assets Noncurrent
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CY2015Q2 us-gaap Other Assets Noncurrent
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691000 USD
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us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
-24955000 USD
CY2015Q2 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
-14739000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
-26362000 USD
CY2014Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
562000 USD
CY2015Q2 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
572000 USD
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OtherNonoperatingIncomeExpense
10000 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
10000 USD
CY2015Q2 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
3000 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
14000 USD
us-gaap Payments For Advance To Affiliate
PaymentsForAdvanceToAffiliate
60000 USD
us-gaap Payments For Advance To Affiliate
PaymentsForAdvanceToAffiliate
0 USD
us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
-69674000 USD
us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
0 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
0 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
610000 USD
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
350000 USD
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
0 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
4790000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
14032000 USD
CY2014Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2015Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
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CY2014Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
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CY2015Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
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CY2014Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2015Q2 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2014Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2015Q2 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2014Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
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PreferredStockValue
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us-gaap Proceeds From Collection Of Longterm Loans To Related Parties
ProceedsFromCollectionOfLongtermLoansToRelatedParties
0 USD
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us-gaap Proceeds From Warrant Exercises
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PropertyPlantAndEquipmentGross
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RepaymentsOfLinesOfCredit
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us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
0 USD
CY2014Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-210989000 USD
CY2015Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
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CY2014Q2 us-gaap Sales Revenue Net
SalesRevenueNet
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us-gaap Sales Revenue Net
SalesRevenueNet
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CY2015Q2 us-gaap Sales Revenue Net
SalesRevenueNet
65291000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
123845000 USD
CY2014Q2 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
33292000 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
61059000 USD
CY2015Q2 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
40457000 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
72166000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
11540000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
18620000 USD
CY2014Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
7717000 USD
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
12154000 USD
CY2015Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
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us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
19295000 USD
us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
4596000 USD
CY2014Q4 us-gaap Stockholders Equity
StockholdersEquity
249198000 USD
CY2015Q2 us-gaap Stockholders Equity
StockholdersEquity
246247000 USD
CY2014Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
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us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
63962000 shares
CY2015Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
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us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
81241000 shares
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:8px;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Assets and liabilities which are subject to judgment and use of estimates include sales allowances and allowances for doubtful accounts, the fair value of assets and liabilities assumed in business combinations, fair value of the capitalized facility leases, the recoverability of goodwill and long-lived assets, valuation allowances with respect to deferred tax assets, useful lives associated with property and equipment and intangible assets, contingencies, and the valuation and assumptions underlying stock-based compensation and other equity instruments. On an ongoing basis, the Company evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. In addition, the Company engaged valuation specialists to assist with management&#8217;s determination of the valuation of its capitalized facility leases, fair values of assets and liabilities assumed in business combinations, and in periods prior to the Company&#8217;s initial public offering, valuation of common stock.</font></div></div>
us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Organization and Nature of Business</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">TrueCar, Inc. (&#8220;TrueCar&#8221;) is an Internet-based information, technology, and communication services company. Hereinafter, TrueCar, Inc. and its wholly owned subsidiaries TrueCar.com, Inc. and ALG, Inc. are collectively referred to as &#8220;TrueCar&#8221; or the &#8220;Company&#8221;; TrueCar.com, Inc. is referred to as &#8220;TrueCar.com&#8221; and ALG, Inc. is referred to as &#8220;ALG&#8221;. TrueCar was incorporated in the state of Delaware in February 2005 and began business operations in April 2005. Its principal corporate offices are located in Santa Monica, California.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">TrueCar has established an intelligent, data driven platform that allows users to obtain market based pricing data on new and used cars and to connect with TrueCar&#8217;s network of Certified Dealers. TrueCar&#8217;s platform operates on a common technology infrastructure, powered by proprietary data and analytics. Users access TrueCar&#8217;s platform through the TrueCar.com website and TrueCar mobile applications or through the car buying websites and mobile applications that TrueCar operates for its affinity group marketing partners (&#8220;Auto Buying Programs&#8221;). An affinity group is comprised of a network of members or employees that provide discounts to its members.</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:8px;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">ALG provides forecasts and consulting services regarding determination of the residual value of an automobile at future given points in time, which are used to underwrite automotive loans and leases and by financial institutions to measure exposure and risk across loan, lease, and fleet portfolios. ALG also obtains automobile purchase data from a variety of sources and uses this data to provide consumers and dealers with highly accurate, geographically specific, real-time pricing information.</font></div></div>
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Revision of Prior Period Amounts</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:8px;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company has identified and corrected immaterial errors in its prior period disclosures of related party cost of revenue and related party sales and marketing expense. The parenthetical information within the consolidated statement of comprehensive loss for the </font><font style="font-family:inherit;font-size:10pt;">three and six months ended June 30, 2014</font><font style="font-family:inherit;font-size:10pt;"> and Note 12 presented herein have been revised to reflect the correction of this error. The results of this correction were a decrease to related party sales and marketing expenses of </font><font style="font-family:inherit;font-size:10pt;">$2.3 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$3.2 million</font><font style="font-family:inherit;font-size:10pt;">, respectively, for the </font><font style="font-family:inherit;font-size:10pt;">three and six months ended June 30, 2014</font><font style="font-family:inherit;font-size:10pt;">.</font></div></div>

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