DealerTrack Holdings Reports Third Quarter 2009 Financial Results

http://www.businesswire.com/news/home/20091104006433/en

Updates Guidance for Full Year 2009
LAKE SUCCESS, N.Y.--(Business Wire)--
DealerTrack Holdings, Inc. (Nasdaq: TRAK) today reported financial results for
the three and nine month periods ended September 30, 2009.

GAAP Results for the Third Quarter 2009

* Revenue for the quarter was $58.8 million, as compared to $60.5 million for
the third quarter of 2008.
* GAAP net loss for the quarter was $(0.2) million, as compared to GAAP net loss
of $(2.6) million for the third quarter of 2008.
* GAAP net loss per share for the quarter was $(0.01), as compared to GAAP net
loss of $(0.07) per share for the third quarter of 2008.

Non-GAAP Results for the Third Quarter 2009

* Adjusted EBITDA for the quarter was $10.8 million, as compared to $12.4
million for the third quarter of 2008.
* Cash net income for the quarter was $5.2 million, as compared to $8.8 million
for the third quarter of 2008.
* Diluted cash net income per share for the quarter was $0.13, as compared to
$0.21 per share for the third quarter of 2008.

GAAP Results for the Nine Months Ended September 30, 2009

* Revenue for the nine months was $172.4 million, as compared to $188.0 million
for the same period in 2008.
* GAAP net loss for the nine months was $(3.7) million, as compared to GAAP net
income of $2.8 million for the same period in 2008.
* GAAP net loss per share for the nine months was $(0.09), as compared to GAAP
diluted net income of $0.07 per share for the same period in 2008.

Non-GAAP Results for the Nine Months Ended September 30, 2009

* Adjusted EBITDA for the nine months was $26.3 million, as compared to $40.1
million for the same period in 2008.
* Cash net income for the nine months was $15.6 million, as compared to $28.0
million for the same period in 2008.
* Diluted cash net income per share for the nine months was $0.38, as compared
to $0.65 per share for the same period in 2008.

GAAP net loss and cash net income for the third quarter, as well as the first
nine months of 2009, were negatively impacted by a $0.8 million (net of taxes),
or approximately $0.02 per share, contingent earn out compensation expense
associated with our 2007 acquisition of AutoStyleMart. Additionally, for the
first nine months of 2009, both GAAP net loss and cash net income were favorably
impacted by an approximately $1.1 million, or $0.03 per share, tax benefit as a
result of filing several amended prior year state tax returns, and were
negatively impacted by an approximately $4.5 million (net of taxes) or $0.11 per
share, restructuring charge, of which $2.6 million (net of taxes), or $0.06 per
share, was a non-cash expense. Additionally, cash net income for the first nine
months of 2009, was favorably impacted by a realized gain of approximately $0.9
million (non-taxable), or $0.02 per share, relating to the sale of securities.
The tax benefit and the realized gain on the sale of securities were recognized
during the second quarter of 2009 and the restructuring charge was in the first
quarter of 2009.

For the first nine months of 2008, GAAP net income includes a realized loss of
$5.7 million (non-taxable), or $0.13 per share, related to the impairment of
certain auction rate securities. Both cash net income and Adjusted EBITDA
exclude this loss.

Guidance for 2009 Annual Performance

Due to our performance in the third quarter, the impact of the government`s Cash
for Clunkers program, and the acquisition related earn-out payment, DealerTrack
has updated revenue and GAAP and non-GAAP earnings guidance for the full year
2009 as follows:

Expected GAAP Results

* Revenue for the year is expected to be between $227.0 million and $229.0
million, compared to the previous guidance of $228.0 million to $232.0 million
* GAAP net loss for the year is expected to be between $(4.9) million and $(3.4)
million, compared to the previous estimate of $(4.3) million to $(2.8) million.
* GAAP net loss per share for the year is expected to be between $(0.12) and
$(0.08), compared to the previous estimate of $(0.11) to $(0.07).

Expected Non-GAAP Results

* Adjusted EBITDA for the year is expected to be between $33.0 million and $35.0
million, compared to the previous estimate of $32.0 million to $34.0 million.
* Cash net income for the year is expected to be between $19.9 million and $21.4
million, compared to the previous estimate of $17.9 million to $19.4 million.
* Diluted cash net income per share for the year is expected to be between $0.48
and $0.52, compared to the previous estimate of $0.43 to $0.47.

GAAP net loss per share guidance for the year is based on an assumed 40.3
million basic weighted average shares outstanding. Diluted cash net income per
share guidance for the year is based on an assumed 41.3 million diluted weighted
average shares outstanding.

The revised guidance assumes that for 2009 new car sales will be 10.5 million
units and used car sales will be 12.5 million units. The guidance also includes
the expected impact of the Chrysler and General Motors bankruptcies and related
franchise terminations, including the Saturn wind down.

Mark O`Neil, chairman and chief executive officer of DealerTrack, commented, "We
are pleased with our results for the quarter which we believe clearly illustrate
the operating leverage in our business. For the third quarter, we posted an
adjusted EBITDA margin of 18%, our highest level in the past twelve months as we
benefitted from increased volumes from the Cash for Clunkers program." O`Neil
continued, "Despite the near-term headwinds associated with the `hangover`
effect from the Cash for Clunkers program and additional dealership closures, we
are constructive on the long-term outlook for our business. We are seeing signs
of modest improvement in both new car sales and credit. We believe DealerTrack
is extremely well positioned to benefit from a pick up in auto sales, as well as
continued growth in our subscription business. Given our performance in the
third quarter and our continued focus on cost controls, we are raising our
non-GAAP earnings guidance for the year and remain confident with our ability to
generate strong cash flows."

Conference Call

DealerTrack will host a conference call to discuss its third quarter 2009
results, 2009 guidance and other matters on November 4, 2009 at 5:00 p.m.
Eastern Time. The conference call will be webcast live on the Internet at
http://ir.dealertrack.com/eventdetail.cfm?EventID=71993. In addition, a live
audio of the call will be accessible to the public by calling 888-510-1762
(domestic) or 719-325-2431 (international); no access code is necessary. Callers
should dial in approximately 10 minutes before the call begins. A replay will be
available on the DealerTrack website until November 19, 2009.

Non-GAAP Financial Measures

The non-GAAP measures of adjusted EBITDA and cash net income disclosures are not
presented in accordance with generally accepted accounting principles (GAAP) and
are not intended to be used in lieu of GAAP presentations of net income (loss).
Adjusted EBITDA is a non-GAAP financial measure that represents GAAP net income
(loss) excluding interest, taxes, depreciation and amortization expenses and
excludes restructuring charges, acquisition related compensation earn out
expense and professional service fees and a realized gain or (loss) on
securities. Cash net income is a non-GAAP financial measure that represents GAAP
net income (loss) excluding non-cash stock-based compensation expense (net of
taxes), the amortization of acquired identifiable intangibles (net of taxes) and
net non-cash realized gain or (loss) on securities (non-taxable). Adjusted
EBITDA and cash net income are presented because management believes they
provide additional information with respect to the performance of our
fundamental business activities as the purchase accounting treatment of
acquisitions can have a negative impact on our net income because the
depreciation and amortization expenses associated with acquired assets, as well
as particular intangibles (which tend to have a relatively short useful life),
can be substantial in the first several years following an acquisition. As a
result, we monitor our adjusted EBITDA and other business statistics as a
measure of operating performance in addition to net income (loss) and the other
measures included in our consolidated financial statements. Management believes
the adjusted EBITDA and cash net income information is useful to investors for
these reasons. Adjusted EBITDA and cash net income are non-GAAP financial
measures and should not be viewed as an alternative to GAAP measures of
performance. Management believes the most directly comparable GAAP financial
measure for adjusted EBITDA and cash net income is GAAP net income (loss) and
has provided a reconciliation of adjusted EBITDA to GAAP net income (loss) and
cash net income to GAAP net income (loss), in Attachment 4 to this press
release.

About DealerTrack (www.dealertrack.com)

DealerTrack`s intuitive and high-value software solutions enhance efficiency and
profitability for all major segments of the automotive retail industry,
including dealers, lenders, OEMs, agents and aftermarket providers. Our solution
set for dealers is the industry`s most comprehensive. DealerTrack operates the
industry`s largest online credit application network, connecting over 17,000
dealers with over 750 financing sources. Our Dealer Management System (DMS)
provides dealers with easy-to-use tools with real-time data access that will
streamline any automotive business. With DealerTrack Inventory Optimization,
dealers get better data along with the tools to make smarter, more profitable
inventory decisions. Our Sales and F&I solution enables dealers to streamline
the entire sales process, quickly structuring all types of deals from a single
integrated platform. DealerTrack`s Compliance solution helps dealers meet legal
and regulatory requirements and protect their hard-earned assets. DealerTrack`s
family of companies also includes data and consulting services providers, ALG
(Automotive Lease Guide) and Chrome Systems. For more information, visit
www.dealertrack.com.

Safe Harbor for Forward-Looking and Cautionary Statements

Statements in this press release regarding DealerTrack`s expected 2009
performance; assumptions relating to the improvement in both car sales and
credit, the long-term outlook for its business, and DealerTrack`s growth and
cash flow expectations; and all other statements in this release other than the
recitation of historical facts are forward-looking statements (as defined in the
Private Securities Litigation Reform Act of 1995). These statements involve a
number of risks, uncertainties and other factors that could cause actual
results, performance or achievements of DealerTrack to be materially different
from any future results, performance or achievements expressed or implied by
these forward-looking statements.

Factors that might cause such a difference include: economic trends that affect
the automotive retail industry or the indirect automotive financing industry
including the number of new and used cars sold; reductions in auto dealerships
by General Motors and Chrysler in the United States; increased competitive
pressure from other industry participants, including Open Dealer Exchange,
RouteOne, CUDL, Finance Express and AppOne; the impact of some vendors of
software products for automotive dealers making it more difficult for
DealerTrack`s customers to use DealerTrack`s solutions and services; security
breaches, interruptions, failures and/or other errors involving DealerTrack`s
systems or networks; the failure or inability to execute any element of
DealerTrack`s business strategy, including selling additional products and
services to existing and new customers; the volatility of DealerTrack`s stock
price; new regulations or changes to existing regulations; the integration of
recent acquisitions and the expected benefits, as well as the integration and
expected benefits of any future acquisitions that DealerTrack may pursue;
DealerTrack`s success in expanding its customer base and product and service
offerings, the impact of recent economic trends, and difficulties and increased
costs associated with raising additional capital and other risks listed in
DealerTrack`s reports filed with the Securities and Exchange Commission (SEC),
including its 2008 Annual Report on Form 10-K. These filings can be found on
DealerTrack`s website at www.dealertrack.com and the SEC`s website at
www.sec.gov. Forward-looking statements included herein speak only as of the
date hereof and DealerTrack disclaims any obligation to revise or update such
statements to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events or circumstances.

Attachment (1)Actual Results: Three-Month Period
DEALERTRACK HOLDINGS, INC.

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended
September 30,
2009 2008

Net revenue $ 58,809 $ 60,525

Cost of revenue 28,665 27,940
Product development 3,391 2,875
Selling, general and administrative 25,471 26,654
Total operating expenses 57,527 57,469
Income from operations 1,282 3,056
Interest and other income, net 168 1,160
Realized loss on securities - (5,664 )

Income (loss) before provision for income taxes 1,450 (1,448 )
Provision for income taxes (1,665 ) (1,155 )
Net loss $ (215 ) $ (2,603 )

Basic net loss per share applicable to common stockholders $ (0.01 ) $ (0.07 )
Diluted net loss per share applicable to common stockholders $ (0.01 ) $ (0.07 )
Weighted average shares outstanding (a) 39,705,553 39,769,935
Weighted average shares outstanding assuming dilution (a) 39,705,553 39,769,935

EBITDA (non-GAAP) (b) $ 9,683 $ 6,713
EBITDA margin (non-GAAP) (c) 16 % 11 %
Adjusted EBITDA (non-GAAP) (b) $ 10,760 $ 12,377
Adjusted EBITDA margin (non-GAAP) (c) 18 % 20 %
Cash net income (non-GAAP) (b) $ 5,243 $ 8,844
Diluted cash net income per share applicable to common stockholders (non-GAAP) (d) (e) $ 0.13 $ 0.21

(a) Weighted average shares outstanding and weighted average shares outstanding
assuming dilution for the three months ended September 30, 2009 and 2008 exclude
636,000 and 889,000, respectively, outstanding shares of restricted common stock
as they are considered "participating securities" under ASC Topic 260-10-45.

(b) See Reconciliation Data in Attachment 4.

(c) Represents EBITDA and adjusted EBITDA as a percentage of net revenue.

(d) For the three months ended September 30, 2009, the computation of diluted
cash net income per share of $0.13 under ASC Topic 260-10-45 assumes cash net
income applicable to common stockholders of approximately $5,163,000 divided by
weighted average shares assuming dilution of 40,827,079.

(e) For the three months ended September 30, 2008, the computation of diluted
cash net income per share of $0.21 under ASC Topic 260-10-45 assumes cash net
income applicable to common stockholders of approximately $8,656,000 divided by
weighted average shares assuming dilution of 40,832,829.

Attachment (1)Actual Results: Nine-Month Period
DEALERTRACK HOLDINGS, INC.

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

(Unaudited)

Nine Months Ended
September 30,
2009 2008

Net revenue $ 172,379 $ 188,014

Cost of revenue 86,638 84,431
Product development 11,037 9,101
Selling, general and administrative 83,069 84,396
Total operating expenses 180,744 177,928
(Loss) income from operations (8,365 ) 10,086
Interest and other income, net 837 3,702
Realized gain (loss) on securities 1,393 (5,664 )
(Loss) income before benefit (provision) for income taxes (6,135 ) 8,124
Benefit (provision) for income taxes 2,482 (5,323 )
Net (loss) income $ (3,653 ) $ 2,801

Basic net (loss) income per share applicable to common stockholders (a) $ (0.09 ) $ 0.07
Diluted net (loss) income per share applicable to common stockholders (a) $ (0.09 ) $ 0.07
Weighted average shares outstanding (b) 39,435,766 40,965,069
Weighted average shares outstanding assuming dilution (b) 39,435,766 42,085,358

EBITDA (non-GAAP) (c) $ 19,369 $ 33,951
EBITDA margin (non-GAAP) (d) 11 % 18 %
Adjusted EBITDA (non-GAAP) (c) $ 26,261 $ 40,101
Adjusted EBITDA margin (non-GAAP) (d) 15 % 21 %
Cash net income (non-GAAP) (c) $ 15,575 $ 27,954
Diluted cash net income per share applicable to common stockholders (non-GAAP) (e) (f) $ 0.38 $ 0.65

(a) Basic net income per share applicable to common stockholders for the nine
months ended September 30, 2008 was calculated in accordance with ASC Topic
260-10-45, and assumes approximately $2,743,000 of net income applicable to
common stockholders. The computation of diluted net income per share applicable
to common stockholders of $0.07 under ASC Topic 260-10-45 assumes net income
applicable to common stockholders of approximately $2,745,000 divided by
weighted average shares assuming dilution of 42,085,358.

(b) Weighted average shares outstanding and weighted average shares outstanding
assuming dilution for the nine months ended September 30, 2009 and 2008 exclude
599,000 and 865,000, respectively, outstanding shares of restricted common stock
as they are considered "participating securities" under ASC Topic 260-10-45.

(c) See Reconciliation Data in Attachment 4.

(d) Represents EBITDA and adjusted EBITDA as a percentage of net revenue.

(e) For the nine months ended September 30, 2009, the computation of diluted
cash net income per share of $0.38 under ASC Topic 260-10-45 assumes cash net
income applicable to common stockholders of approximately $15,347,000 divided by
weighted average shares assuming dilution of 40,375,786

(f) For the nine months ended September 30, 2008, the computation of diluted
cash net income per share of $0.65 under ASC Topic 260-10-45 assumes cash net
income applicable to common stockholders of approximately $27,391,000 divided by
weighted average shares assuming dilution of 42,085,358.

Attachment (2)Condensed Consolidated Balance Sheets
DEALERTRACK HOLDINGS, INC.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

September 30, December 31,
2009 2008
ASSETS
Cash and cash equivalents $ 189,576 $ 155,456
Short-term investments 1,399 43,350
Accounts receivable, net 21,090 18,462
Prepaid expenses and other current assets 13,673 11,961
Total current assets 225,738 229,229

Property and equipment, net 14,133 13,448
Software and web site development costs, net 19,535 12,705
Intangible assets, net 46,431 44,405
Goodwill 132,955 114,886
Deferred taxes and other long-term assets 26,462 22,542
Total assets $ 465,254 $ 437,215

LIABILITIES AND STOCKHOLDERS` EQUITY
Accounts payable and accrued expenses $ 29,999 $ 23,723
Deferred revenue 4,943 5,609
Due to acquirees and other current liabilities 1,016 2,100
Total current liabilities 35,958 31,432

Long-term liabilities 10,860 9,563
Total liabilities 46,818 40,995
Total stockholders` equity 418,436 396,220
Total liabilities and stockholders` equity $ 465,254 $ 437,215

Attachment (3)Condensed Consolidated Statements of Cash Flow
DEALERTRACK HOLDINGS, INC.

Condensed Consolidated Statements of Cash Flow

(Dollars in thousands)

(Unaudited)

Nine Months Ended
September 30,
2009 2008
Cash flows from operating activities
Net (loss) income $ (3,653 ) $ 2,801
Adjustments to reconcile net (loss) income
to net cash provided by operating activities
Depreciation and amortization 26,288 29,387
Stock-based compensation expense 13,988 10,428
Deferred tax benefit (4,848 ) (1,866 )
Provision for doubtful accounts and sales credits 6,478 5,980
Realized (gain) loss on securities (1,393 ) 5,664
Changes in operating assets and liabilities, net of effects of acquisitions (2,989 ) (8,158 )
Other (1,746 ) 94
Net cash provided by operating activities 32,125 44,330

Cash flows from investing activities
Payment for acquisition of acquired businesses and intangible assets, net of acquired cash (34,680 ) (3,489 )
Sale of investments, net 44,569 99,179
Capitalized software and web site development costs (9,977 ) (6,797 )
Capitalized expenditures (4,197 ) (4,909 )
Other 225 262
Net cash (used in) provided by investing activities (4,060 ) 84,246

Cash flows from financing activities
Proceeds from stock-based plans 2,852 2,334
Purchase of treasury stock (352 ) (44,820 )
Other 1,046 (293 )
Net cash provided by (used in) financing activities 3,546 (42,779 )

Net increase in cash and cash equivalents 31,611 85,797
Effect of exchange rate changes on cash and cash equivalents 2,509 (1,057 )
Cash, beginning of period 155,456 50,564
Cash, end of period 189,576 135,304

Attachment (4)Reconciliation Data
DEALERTRACK HOLDINGS, INC.

Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA

(Dollars in thousands)

(Unaudited)

Three Months Ended
September 30,
2009 2008

GAAP net loss $ (215 ) $ (2,603 )
Interest income (194 ) (1,105 )
Interest expense 27 87
Provision for income taxes 1,665 1,155
Depreciation and amortization 3,429 3,704
Amortization of acquired identifiable intangibles 4,971 5,475
EBITDA (non-GAAP) 9,683 6,713
Restructuring (a) (17 ) -
Acquisition related professional fees (b) 94 -
Acquisition-related earn-out compensation expense (c) 1,000 -
Realized loss on securities - 5,664
Adjusted EBITDA (non-GAAP) $ 10,760 $ 12,377

(a) Includes adjustments to the first quarter 2009 costs related to a reduction
in workforce.

(b) Acquisition related costs are expensed as incurred.

(c) Contingent earn-out compensation expense associated with the 2007
acquisition of AutoStyleMart.

DEALERTRACK HOLDINGS, INC.

Reconciliation of GAAP Net Loss to Non-GAAP Cash Net Income

(Dollars in thousands)

(Unaudited)

Three Months Ended
September 30,
2009 2008

GAAP net loss $ (215 ) $ (2,603 )
Non-cash stock-based compensation charges, net of taxes 2,131 2,218
Amortization of acquired identifiable intangibles, net of taxes 3,327 3,565
Realized loss on securities - 5,664
Cash net income (non-GAAP) (a) $ 5,243 $ 8,844

(a) The three months ended September 30, 2009, includes $1.0 million contingent
earn-out compensation expense ($0.8 million, net of taxes) associated with the
2007 acquisition of AutoStyleMart.

Attachment (4)Reconciliation Data
DEALERTRACK HOLDINGS, INC.

Reconciliation of GAAP Net (Loss) Income to Non-GAAP Adjusted EBITDA

(Dollars in thousands)

(Unaudited)

Nine Months Ended
September 30,
2009 2008

GAAP net (loss) income $ (3,653 ) $ 2,801
Interest income (937 ) (3,813 )
Interest expense 153 253
(Benefit) provision for income taxes (2,482 ) 5,323
Depreciation and amortization 10,895 9,785
Amortization of acquired identifiable intangibles 15,393 19,602
EBITDA (non-GAAP) 19,369 33,951
Restructuring (a) 6,692 -
Acquisition related professional fees (b) 593 486
Realized (gain) loss on securities (1,393 ) 5,664
Acquisition related earn-out compensation expense (c) 1,000 -
Adjusted EBITDA (non-GAAP) $ 26,261 $ 40,101

(a) Includes costs related to a reduction in workforce, a plant relocation
related to DealerTrack`s Digital Services business and a gain related to
DealerTrack`s exit from the SCS business.

(b) Acquisition related costs are expensed as incurred.

(c) Contingent earn-out compensation expense associated with the 2007
acquisition of AutoStyleMart.

Attachment (4)Reconciliation Data - (continued)
DEALERTRACK HOLDINGS, INC.

Reconciliation of GAAP Net (Loss) Income to Non-GAAP Cash Net Income

(Dollars in thousands)

(Unaudited)

Nine Months Ended
September 30,
2009 2008

GAAP net (loss) income $ (3,653 ) $ 2,801
Non-cash stock-based compensation charges, net of taxes (a) 9,387 6,736
Amortization of acquired identifiable intangibles, net of taxes 10,304 12,753
Realized loss on securities - 5,664
Realized non-cash gain on conversion of security (b) (463 ) -
Cash net income (non-GAAP)(c) $ 15,575 $ 27,954

(a) The nine months ended September 30, 2009, includes $3.9 million in non-cash
charges related to the restructuring ($2.6 million, net of taxes).

(b) Non-taxable.

(c) The nine months ended September 30, 2009, includes $930,000 in realized gain
relating to the sale of a security and $1.0 million contingent earn-out
compensation expense ($0.8 million, net of taxes) associated with the 2007
acquisition of AutoStyleMart.

DEALERTRACK HOLDINGS, INC.

Reconciliation of Forward-looking GAAP Net Loss to

Forward-looking Non-GAAP Adjusted EBITDA

(Dollars in millions)

(Unaudited)

Year Ending December 31, 2009
Expected Range

GAAP net loss $ (4.9 ) $ (3.4 )
Interest income (1.1 ) (1.1 )
Interest expense 0.3 0.3
Benefit from income taxes(a) (2.9 ) (2.4 )
Depreciation and amortization 14.6 14.6
Amortization of acquired identifiable intangibles 20.1 20.1
EBITDA (non-GAAP) 26.1 28.1
Restructuring (b) 6.7 6.7
Acquisition related professional fees (c) 0.6 0.6
Acquisition related earn-out compensation expense (d) 1.0 1.0
Realized gain on securities (1.4 ) (1.4 )
Adjusted EBITDA (non-GAAP) $ 33.0 $ 35.0

(a) Includes an approximately $1.1 million tax benefit as a result of filing
several amended prior year state tax returns.

(b) Includes costs related to a reduction in workforce, a plant relocation
related to DealerTrack`s Digital Services business and a

gain related to DealerTrack`s exit from the SCS business.

(c) Acquisition related costs are expensed as incurred.

(d) Contingent earn-out compensation expense associated with the 2007
acquisition of AutoStyleMart.

DEALERTRACK HOLDINGS, INC.

Reconciliation of Forward-looking GAAP Net Loss to

Forward-looking Non-GAAP Cash Net Income

(Dollars in millions)

Unaudited)

Year Ending
December 31, 2009

Expected Range

GAAP net loss $ (4.9 ) $ (3.4 )
Non-cash stock-based compensation charges, net of taxes (a) 11.7 11.7
Amortization of acquired identifiable intangibles, net of taxes 13.6 13.6
Realized non-cash gain on conversion of a security (b) (0.5 ) (0.5 )
Cash net income (non-GAAP) (c) $ 19.9 $ 21.4

(a) Includes $3.9 million in non-cash charges related to the restructuring ($2.6
million, net of taxes).

(b) Non-taxable.

(c) Includes $930,000 in realized gain relating to the sale of a security and
$1.0 million contingent earn-out compensation expense ($0.8 million, net of
taxes) associated with the 2007 acquisition of AutoStyleMart.

Attachment (5)Summary of Business Statistics (Unaudited)
DEALERTRACK HOLDINGS, INC.

Three months ended
Sept 30, June 30, March 31, Dec 31, Sept 30,
2009 2009 2009 2008 2008

Active U.S. dealers (a) 17,241 18,047 18,998 19,652 21,001
Active U.S. financing sources (b) 790 755 736 733 706
Transactions processed (c) 13,804 13,157 14,327 14,296 19,219
(in thousands)
Active U.S. lender to dealer relationships (d) 120,305 123,885 134,475 156,437 179,102
Subscribing dealers (e) 13,959 14,115 14,646 14,342 14,229

(a) We consider a dealer to be active as of a date if the dealer completed at
least one revenue-generating credit application processing transaction using the
DealerTrack network during the most recently ended calendar month.

(b) We consider a financing source to be active in our DealerTrack network as of
a date if it is accepting credit application data electronically from U.S.
dealers in the DealerTrack network.

(c) Represents revenue-generating transactions processed in the DealerTrack,
DealerTrack Digital Services and DealerTrack Canada networks at the end of a
given period.

(d) Each lender to dealer relationships represents a pair between an active U.S.
financing source and an active U.S. dealer.

(e) Dealers with one or more active subscription on the U.S. and Canadian
networks.

Three months ended
Sep 30, June 30, March 31, December 31, Sept 30,
2009 2009 2009 2008 2008

Transaction revenue $25,483 $24,645 $24,041 $24,924 $33,007
(in thousands)
Subscription revenue $28,978 $29,028 $27,943 $25,630 $23,797
(in thousands)
Other revenue $4,348 $4,197 $3,716 $4,138 $3,721
(in thousands)
Average transaction price $1.85 $1.87 $1.68 $1.74 $1.72
Average monthly subscription revenue per subscribing dealership (a) $692 $686 $635 $595 $557

(a) Represents subscription revenue divided by subscribing dealers at the end of
a given period in the DealerTrack and DealerTrack Canada networks.

TRAK-E

DealerTrack
Investor Relations:
888-450-0478
investorrelations@dealertrack.com

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