Earnings Plunge AtDealerTrack
LAKE SUCCESS, N.Y. - (03/17/06) DealerTrack Holdings, theprovider of online vehicle financing services, said net income forthe fourth quarter of 2005 declined to just $700,000, or two centsa share, from $6.3 million in the fourth quarter of 2004. Thecompany, which went public in the fourth quarter, attributed mostof the decline in earnings to a reversal of a deferred taxvaluation allowance of $4.7 million. Otherwise, revenues grew astrong 75% for the quarter to $33.4 million. Fourth quarter resultsincluded expenses of $600,000 related to the companysinitial public offering and the repayment of debit; $500,000 ofdeferred tax expense resulting from a change in the effective taxrate; and $400,000 in discretionary bonuses. For the year,DealerTrack reported a 70% surge in revenues to $120.2 million, buta 60% drop off in earnings to $4.5 million, or 12 cents a share,due to the $4 million tax charge.