CARS.COM INC. CARS is offering a robust program of immediate dealer incentives and unique digital solutions aimed at driving dealer profitability, service capabilities and sales to a growing segment of consumers who are seeking more digital car-shopping options such as home delivery, virtual appointments, chat tools and video.
Vetter continued, 'To date, first quarter 2020 results have been tracking in line with internal expectations, with 7 business days remaining. However, the significant uncertainty of the impact of COVID-19 to our customers, business closures across the country and the resulting impact on the broader economy demand that we aggressively respond to support our customers going forward. It is therefore prudent to suspend our 2020 guidance at this time. Our response to help support our dealer partners in the current environment will have a near-term impact on our revenue, and accordingly, we have taken immediate actions to mitigate the impact on our financial performance.'
Customer actions include:
Immediate Financial Relief to Dealers: Dealer customers will receive 50% off April and 30% off May and June bills automatically applied across
Virtual Retail Solutions: In addition to our existing range of digital solutions that help dealers serve car buyers from home, we have launched a collection of new, no-cost merchandising and digital solutions including Home Delivery and Virtual Appointment badging, chat and video. These products drive traffic and improve dealership digital operations.
CARS Cares: We are monitoring the COVID-19 situation in real time and have launched the CARS Cares website to keep our customers up to date on the retail solutions and real-time actions and decisions
Federal Aid and Support: We are working with policymakers and industry groups to help dealerships get the local and federal support needed to manage through this time, including federal stimulus and essential business status.
Company actions include:
Substantial reduction of expenses.
Prudent draw down on our revolving credit facility to provide additional liquidity of
Vetter concluded, 'As we continue to navigate through this challenging business environment, we remain committed to prudent management of our financial resources and a heightened focus on our stated capital allocation objectives of de-leveraging and continuing to invest in initiatives that connect our dealer and OEM customers to our in-market car shoppers. We believe our actions are aligned with building long-term shareholder value, as well as fortifying our position as the fastest growing online automotive marketplace and true dealer advocates.'
Abo ut CARS
CARS is a leading digital marketplace and solutions provider for the automotive industry that connects car shoppers with sellers. Launched in 1998 with the flagship marketplace site
CARS properties include
Forward Looking Statements
This press release 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 the impact of COVID-19 on our industry, our dealer customers and our results of operations, our business strategies, strategic alternatives, plans and objectives, market potential, outlook, trends, future financial performance, planned operational and product improvements, potential strategic transactions, liquidity, including expense reduction and the status of our credit facility, and other matters and involve known and unknown risks that are difficult to predict. As a result, our actual financial results, performance, achievements, strategic actions or prospects may differ materially from those expressed or implied by these forward-looking statements. These statements often include words such as 'believe,' 'expect,' 'project,' 'anticipate,' 'outlook,' 'intend,' 'strategy,' 'plan,' 'estimate,' 'target,' 'seek,' 'will,' 'may,' 'would,' 'should,' 'could,' 'forecasts,' 'mission,' 'strive,' 'more,' 'goal' or similar expressions. Forward-looking statements are based on our current expectations, beliefs, strategies, estimates, projections and assumptions, based on our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments, current developments regarding the COVID-19 pandemic and other factors we think are appropriate. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by the Company and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. These statements are expressed in good faith and we believe these judgments are reasonable. However, you should understand that these statements are not guarantees of strategic action, performance or results. Our actual results and strategic actions could differ materially from those expressed in the forward-looking statements. Given these uncertainties, forward-looking statements should not be relied on in making investment decisions. Comparisons of results between current and prior periods are not intended to express any future trends, or indications of future performance, unless expressed as such, and should only be viewed as historical data. Whether or not any such forward-looking statement is in fact achieved will depend on future events, some of which are beyond our control.
Forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results and strategic actions to differ materially from those expressed in the forward-looking statements contained in this press release. For a detailed discussion of many of these and other risks and uncertainties, see our Annual Report on Form 10-K for the year ended
The forward-looking statements in this report are intended to be subject to the safe harbor protection provided by the federal securities laws.
CARS Media Contact:
312-601-5692
mthomas@cars.com
CARS Investor Relations Contact:
312-601-5110
khamid@cars.com
SOURCE
(C) 2020 Electronic News Publishing, source
