Dealertrack revenue rises, net income down
Dealertrack Technologies Inc., a provider of software for auto retailers, said Monday its revenues in last year's fourth quarter rose in a strong finish for the year, while earnings fell because of extraordinary gains a year earlier.
The Lake Success-based company said revenue for the quarter rose 11.5 percent from the year-earlier period, to $101.8 million. Net income fell from $32.9 million, or 76 cents a share, in the fourth quarter of 2011 to $500,000, or one cent a share.
The year-earlier quarter benefited from a pretax gain of $26.8 million from the sale for an equity stake of ALG Inc. to TrueCar Inc. of Santa Monica, Calif.; and a $2.8 million noncash federal tax benefit.
Revenue for all of 2012 "was significantly above our original expectations," and quarterly revenue "exceeded $100 million for the first time," Mark F. O'Neil, chairman and chief executive, said.
The company said it expected revenue this year to be between $447 million and $456 million, with net income from $10 million to $13 million, or between 22 cents and 29 cents a share.
Separately, the company announced plans for a $21.1 million acquisition of Casey & Casey NPS Inc., which does business as Auto Title Express, a Louisiana provider of electronic vehicle registration, lien and title services.
Dealertrack said the move would strengthen its electronic processing presence in the southern United States.
Auto dealers use Dealertrack's software to submit credit applications, process motor vehicle registrations and perform other functions.
The company employs about 1,800 people, including more than 300 on Long Island.
Shares of Dealertrack fell 13 cents to $31.79 in after-hours trading Monday following its earnings.