2016 Q4 Form 10-Q Financial Statement

#000132731816000060 Filed on November 09, 2016

View on sec.gov

Income Statement

Concept 2016 Q4 2016 Q3 2015 Q3
Revenue $74.08M $75.14M $72.41M
YoY Change 16.5% 3.78% 27.58%
Cost Of Revenue $6.260M $6.320M $5.950M
YoY Change 4.51% 6.22% 27.41%
Gross Profit $67.82M $68.82M $66.45M
YoY Change 17.74% 3.57% 27.57%
Gross Profit Margin 91.55% 91.59% 91.78%
Selling, General & Admin $56.26M $56.32M $60.44M
YoY Change -13.07% -6.81% 17.77%
% of Gross Profit 82.95% 81.84% 90.95%
Research & Development $13.27M $13.15M $12.34M
YoY Change -11.18% 6.56% 13.11%
% of Gross Profit 19.57% 19.11% 18.57%
Depreciation & Amortization $5.460M $6.030M $4.450M
YoY Change 13.75% 35.51% 32.84%
% of Gross Profit 8.05% 8.76% 6.7%
Operating Expenses $75.06M $56.32M $60.44M
YoY Change -11.46% -6.81% 17.77%
Operating Profit -$7.240M -$6.691M -$10.80M
YoY Change -73.36% -38.05% -20.16%
Interest Expense -$560.0K $645.0K $159.0K
YoY Change 522.22% 305.66% 488.89%
% of Operating Profit
Other Income/Expense, Net $0.00 $0.00 $0.00
YoY Change -100.0%
Pretax Income -$7.790M -$7.245M -$10.93M
YoY Change -71.43% -33.73% -19.14%
Income Tax $160.0K $191.0K $173.0K
% Of Pretax Income
Net Earnings -$7.950M -$7.436M -$11.11M
YoY Change -71.03% -33.04% -18.59%
Net Earnings / Revenue -10.73% -9.9% -15.34%
Basic Earnings Per Share
Diluted Earnings Per Share -$92.75K -$87.72K -$134.8K
COMMON SHARES
Basic Shares Outstanding 85.46M shares 84.61M shares 82.38M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2016 Q4 2016 Q3 2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $107.7M $103.0M $123.7M
YoY Change -4.18% -16.73% 9.47%
Cash & Equivalents $107.7M $103.0M $123.7M
Short-Term Investments
Other Short-Term Assets $2.278M $1.417M $1.848M
YoY Change 192.43% -23.32% -76.0%
Inventory
Prepaid Expenses $6.044M $7.205M $5.076M
Receivables $36.87M $35.87M $37.39M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $152.9M $147.5M $168.0M
YoY Change -0.03% -12.23% 11.72%
LONG-TERM ASSETS
Property, Plant & Equipment $66.94M $67.24M $67.98M
YoY Change -6.23% -1.09% 136.86%
Goodwill $53.27M $53.27M $53.27M
YoY Change 0.0% 0.0%
Intangibles $19.77M $20.74M $24.85M
YoY Change -16.97% -16.53%
Long-Term Investments
YoY Change
Other Assets $1.553M $1.251M $989.0K
YoY Change 65.21% 26.49% 147.25%
Total Long-Term Assets $141.5M $142.5M $147.1M
YoY Change -5.27% -3.12% 32.03%
TOTAL ASSETS
Total Short-Term Assets $152.9M $147.5M $168.0M
Total Long-Term Assets $141.5M $142.5M $147.1M
Total Assets $294.4M $290.0M $315.1M
YoY Change -2.62% -7.98% 20.36%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $13.83M $13.01M $22.73M
YoY Change -26.76% -42.77% 83.33%
Accrued Expenses $12.58M $11.81M $13.31M
YoY Change 1.27% -11.27% -36.92%
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 $35.36M $33.37M $41.84M
YoY Change -9.57% -20.24% 8.96%
LONG-TERM LIABILITIES
Long-Term Debt $28.80M $28.80M $27.00M
YoY Change 6.67% 6.67% 350.0%
Other Long-Term Liabilities $2.679M $2.574M $546.0K
YoY Change 127.42% 371.43% 9.2%
Total Long-Term Liabilities $2.679M $2.574M $546.0K
YoY Change 127.42% 371.43% -91.6%
TOTAL LIABILITIES
Total Short-Term Liabilities $35.36M $33.37M $41.84M
Total Long-Term Liabilities $2.679M $2.574M $546.0K
Total Liabilities $69.87M $67.57M $72.07M
YoY Change 0.27% -6.24% 53.01%
SHAREHOLDERS EQUITY
Retained Earnings -$318.2M -$310.3M -$248.5M
YoY Change 15.34% 24.89%
Common Stock $542.8M $532.7M $491.5M
YoY Change 6.73% 8.38%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $224.6M $222.4M $243.0M
YoY Change
Total Liabilities & Shareholders Equity $294.4M $290.0M $315.1M
YoY Change -2.62% -7.98% 20.36%

Cashflow Statement

Concept 2016 Q4 2016 Q3 2015 Q3
OPERATING ACTIVITIES
Net Income -$7.950M -$7.436M -$11.11M
YoY Change -71.03% -33.04% -18.59%
Depreciation, Depletion And Amortization $5.460M $6.030M $4.450M
YoY Change 13.75% 35.51% 32.84%
Cash From Operating Activities $5.370M -$530.0K $2.750M
YoY Change -423.49% -119.27% 79.74%
INVESTING ACTIVITIES
Capital Expenditures -$3.770M -$3.080M -$5.600M
YoY Change -63.08% -45.0% -25.83%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change -100.0%
Cash From Investing Activities -$3.770M -$3.080M -$5.600M
YoY Change -63.08% -45.0% 0.9%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 3.140M 3.480M 590.0K
YoY Change 492.45% 489.83% -88.59%
NET CHANGE
Cash From Operating Activities 5.370M -530.0K 2.750M
Cash From Investing Activities -3.770M -3.080M -5.600M
Cash From Financing Activities 3.140M 3.480M 590.0K
Net Change In Cash 4.740M -130.0K -2.260M
YoY Change -141.8% -94.25% -296.52%
FREE CASH FLOW
Cash From Operating Activities $5.370M -$530.0K $2.750M
Capital Expenditures -$3.770M -$3.080M -$5.600M
Free Cash Flow $9.140M $2.550M $8.350M
YoY Change 6.9% -69.46% -8.04%

Facts In Submission

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us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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-9712000 USD
us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
-2602000 USD
CY2015Q3 us-gaap Net Income Loss
NetIncomeLoss
-11105000 USD
us-gaap Net Income Loss
NetIncomeLoss
-37467000 USD
CY2016Q3 us-gaap Net Income Loss
NetIncomeLoss
-7436000 USD
us-gaap Net Income Loss
NetIncomeLoss
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us-gaap Number Of Operating Segments
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1
CY2015Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-10800000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
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CY2016Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-6691000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
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CY2015Q4 us-gaap Other Assets Current
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779000 USD
CY2016Q3 us-gaap Other Assets Current
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CY2015Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
940000 USD
CY2016Q3 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
1251000 USD
CY2015Q3 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
-11105000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
-37467000 USD
CY2016Q3 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
-7436000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
-33758000 USD
CY2015Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
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CY2016Q3 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
2574000 USD
CY2015Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
0 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
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CY2016Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
0 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
0 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
683000 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
751000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
12872000 USD
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CY2016Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
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CY2016Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
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CY2015Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
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CY2016Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2015Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2016Q3 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2015Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
6048000 USD
CY2016Q3 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
7205000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
5566000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
5406000 USD
CY2015Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
101001000 USD
CY2016Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
111394000 USD
CY2015Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
71390000 USD
CY2016Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
67238000 USD
CY2015Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-275900000 USD
CY2016Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-310285000 USD
CY2015Q3 us-gaap Sales Revenue Net
SalesRevenueNet
72405000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
196250000 USD
CY2016Q3 us-gaap Sales Revenue Net
SalesRevenueNet
75139000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
203426000 USD
CY2015Q3 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
43969000 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
116135000 USD
CY2016Q3 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
42557000 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
112797000 USD
CY2016Q3 us-gaap Severance Costs1
SeveranceCosts1
0 USD
us-gaap Severance Costs1
SeveranceCosts1
1783000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
26151000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
18033000 USD
CY2015Q3 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
7920000 USD
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
27215000 USD
CY2016Q3 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
6533000 USD
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
18793000 USD
us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
4655000 USD
CY2015Q4 us-gaap Stockholders Equity
StockholdersEquity
232692000 USD
CY2016Q3 us-gaap Stockholders Equity
StockholdersEquity
222395000 USD
CY2015Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
82417000 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
81637000 shares
CY2016Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
84822000 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
84075000 shares
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 is a digital automotive marketplace that (i) provides pricing transparency about what other people paid for their cars and enables consumers to engage with TrueCar Certified Dealers who are committed to providing a superior purchase experience; (ii) empowers Certified Dealers to attract these informed, in-market consumers in a cost-effective, accountable manner; and (iii) allows automobile manufacturers ("OEMs") to more effectively target their incentive spending at deep-in-market consumers during their purchase process. TrueCar has established an intelligent, data-driven online platform operating on a common technology infrastructure, powered by proprietary data and analytics. Consumers 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 provides discounts to its members.</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;">ALG provides forecasts, consulting, and other 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 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, lease exit liabilities, 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, the fair value of reporting units in connection with annual goodwill impairment testing, and in periods prior to the Company&#8217;s initial public offering, valuation of common stock.</font></div></div>

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