Cars.com Inc. · NYSE:CARS
Cars.com — FY2017 Earnings Presentation
21 slides from Cars.com's earnings presentation, Mar 6, 2018
Slide 1: Fourth Quarter and Full Year 2017 Earnings
CARS.COM Fourth Quarter and Full Year 2017 Earnings March 6, 2017 EXHIBIT 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws. All statements other than statements of historical facts are forward-looking statements. Forward-looking statements include information concerning our business strate
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains adjusted EBITDA, adjusted EBITDA margin, adjusted net income and free cash flow. These are not financial measures as defined by GAAP. These financial measures are presented as supplemental measures of operating performance because we believe the
Slide 4: Corporate Actions since Spin-off
Corporate Actions since Spin-off Spin-off May 31, 2017 Strategic Acquisitions Accelerated Affiliate Conversions Completed tax-free spinoff on May 31, 2017, began trading on NYSE, regular way, June 1, 2017 Recruited 8 person board, 7 independent members including Chairman, Scott Forbes Consummated $9
Slide 5: Operational Highlights since Spin-off
Operational Highlights since Spin-off Product Innovation SEO & Traffic Investments Marketing Mobile Leadership Attribution Salesperson Connect: makes the consumer experience more personable, intelligent and impactful Price Badging: gives better context about the price of a car to help simplify and e
Slide 6: Acquisition of Dealer Inspire/LDM: Compelling Strategic & Financial Rationale
Integrates rapidly growing digital dealer product suite Broadens Cars.com’s capabilities, deepens dealer connections and improves attribution Acquisition of Dealer Inspire/LDM: Compelling Strategic & Financial Rationale 1 Combines complementary assets to create a unique, end-to-end car shopping expe
Slide 7: Acquisitions – Expand Dealer Product Offerings
Launch Digital Marketing Customized marketing and customer acquisition solutions Dealer Inspire Flexible, custom designed website platforms supporting highly personalized digital campaigns Online Shopper End-to-end digital retailing solution empowers shoppers to compare a wide range of financial con
Slide 8: Dealer Inspire and Launch Digital Marketing Financial Summary
Dealer Inspire and Launch Digital Marketing Financial Summary Note: This outlook is forward looking and is subject to change 1 Revenue and Adj. EBITDA exclude synergies 2 Transaction closed February 21, 2018 Revenue1 % to prior year Adj. EBITDA1 2017 Twelve Month 2018 Outlook2 $41 million ~$55 milli
Slide 9: Acquisition Improves Penetration of Fastest-Growing Industry Channels
Acquisition Improves Cars.com’s Penetration of Fastest-Growing Industry Channels $41BN U.S. Auto Ad Market in 2022 $27BN Digital Auto Ad Market in 2022 3% Total market Addressable market CARS current market share Dealer Websites Social Media Paid Search SEO 15% 12% 11% 3% Category Annual Growth Cate
Slide 10: Q4 Key Performance Metrics
Q4 Key Performance Metrics Average Monthly Unique Visitors flat YOY Traffic (Visits) 89.3 million Mobile Traffic1 Affiliate Dealer Customers 6,940 Average Vehicle Listings 4.9 million 60% 1 Mobile traffic includes mobile browser, mobile app and tablet. Dealer Customers 21,296
Slide 11: 2017 Full Year Financial Highlights
2017 Full Year Financial Highlights EPS, Diluted $3.13 Revenue $626.3 Total Operating Expenses $492.0 Net Income $224.4 Adjusted Net Income $165.7 Adjusted Net Income per Diluted Share $2.31 Adjusted EBITDA $238.9 ($ in millions, except per share data) Adjusted EBITDA as a % of Revenue 38.2% $3.50 $
Slide 12: Q4 Financial Highlights
Q4 Financial Highlights EPS, Diluted $2.11 Revenue $156.6 Total Operating Expenses $117.7 Net Income $151.8 Adjusted Net Income $34.2 Adjusted Net Income per Diluted Share $0.48 Adjusted EBITDA $63.5 ($ in millions, except per share data) Adjusted EBITDA as a % of Revenue 40.6% $0.95 $70.5 43.6% $0.
Slide 13: Balance Sheet, Cash Flow & Capitalization
December 31, 2017 Balance Sheet, Cash Flow & Capitalization Shares Outstanding2 71.9 million Cash Debt $583.8 million Net Leverage Ratio1 2.4x Enterprise Value3 $2.6 billion 1 Net Leverage Ratio calculated as debt outstanding less cash and cash equivalents at 12/31/17 divided by adjusted EBITDA for
Slide 14: Cars.com 2018 Outlook
Total revenue growth ~10-11% 2018 Outlook Base business revenue growth1 ~3-4% Revenue from DI and LDM2 ~$45 million Adj. EBITDA margin3 ~34% Note: This outlook is forward looking and is subject to change 1 Includes previously announced transitions of the tronc and McClatchy affiliate markets 2 Trans
Slide 15: Road to Growth
Road to Growth Data & Attribution Leadership Affiliate Opportunity Traffic and Engagement Adjacencies & Extensions
Slide 16: Questions
Questions vi _ _ a At
Slide 17: Appendix
Appendix
Slide 18: Successful early conversion of two major affiliate agreements
Successful early conversion of two major affiliate agreements Thirty key markets incorporated into Cars.com’s direct retail channel McClatchy affiliate conversion highlights tronc affiliate conversion highlights Conversion of seventeen markets and over 1,200 dealer customers, announced on January 4,
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations Unaudited and in thousands * Amortization of unfavorable contract liability is not adjusted out of adjusted EBITDA or adjusted net income.
Slide 20: Definitions
Definitions Traffic (Visits). Traffic (Visits) and our ability to generate traffic are key to our business. Tracking our traffic performance is a critical measure. Traffic to the Cars.com network of websites and mobile apps provides value to our advertisers in terms of audience, awareness, considera
Slide 21: Important Shareholder Information and Where You Can Find It
Important Shareholder Information and Where You Can Find It Cars.com plans to file with the Securities and Exchange Commission (the “SEC”) and mail to its shareholders a definitive proxy statement and accompanying definitive WHITE proxy card in connection with the Company's 2018 Annual Meeting of St