IRVINE, Calif.--Autobytel Inc. (Nasdaq: ABTL), a leading automotive marketing services company, today provided additional information regarding its Tax Benefit Preservation Plan ("Plan"), which the Company's board of directors ("Board") adopted last month. The Plan was adopted to protect stockholder value by seeking to preserve the Company's substantial net operating loss carryovers and other tax attributes for United States federal income tax purposes ("Tax Benefits") that can generally be used to offset future taxable income and therefore reduce federal income tax obligations. These Tax Benefits would be substantially limited if there was to occur an "ownership change" of Autobytel as defined in Section 382 of the Internal Revenue Code ("Section 382").
The Board determined to adopt the Plan following a period of unusually high trading volume in the Company's stock in May 2010 that highlighted concerns that an "ownership change," as defined under Section 382, could occur unless prompt action was taken to prevent such an event. This concern was also raised by certain significant stockholders of the Company in discussions with the Company's management. Autobytel intends to submit the Plan to a vote of stockholders at the 2011 annual meeting of stockholders. If the Plan is not approved at that meeting, it will terminate at the end of the calendar month in which that meeting is held. For a more complete description of the Plan, please see the Company's Report on Form 8-K, filed with the Securities and Exchange Commission on June 2, 2010.
About Autobytel
Autobytel Inc. (NASDAQ: ABTL), a leader in providing online consumer leads and marketing resources to auto dealers and manufacturers, pioneered the automotive Internet when it launched autobytel.com in 1995. Today, the company is continuing to offer innovative products and services to help auto dealers and manufacturers sell more new and used cars. Autobytel has helped tens of millions of automotive consumers research vehicles; connected thousands of dealers nationwide with motivated car buyers; and helped every major automaker market its brand online. Through its flagship website Autobytel.com(R), its network of automotive sites including Autoweb.com(R), AutoSite.com(R), Car.comsm, CarSmart.com(R), CarTV.com(R), and MyRide.com(R), and its respected online partners, Autobytel continues its dedication to innovating the industry's highest quality Internet programs to provide consumers with a comprehensive and positive automotive research and purchasing experience, and auto dealers, dealer groups and auto manufacturers with one of the industry's most productive and cost-effective customer referral and marketing programs.
Forward-Looking Statements
The statements contained in this press release that are not historical facts are forward-looking statements under the federal securities laws. These forward-looking statements are not guarantees of future performance and involve certain assumptions and certain risks and uncertainties that are difficult to predict. Actual outcomes and results may differ materially from what is expressed in, or implied by, such forward-looking statements. Autobytel undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements are changes in general economic conditions, the financial condition of automobile manufacturers and dealers, the economic impact of terrorist attacks or military actions, increased dealer attrition, pressure on dealer fees, increased or unexpected competition, the failure of new products and services to meet expectations, failure to retain key employees or attract and integrate new employees, actual costs and expenses exceeding the charges taken by Autobytel, changes in laws and regulations, costs of legal matters, including, defending lawsuits and undertaking investigations and related matters, and other matters disclosed in Autobytel's filings with the Securities and Exchange Commission. Investors are strongly encouraged to review the Annual Report on Form 10-K for the year ended December 31, 2009 and other filings with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect operating results and the market price of the stock.