LAKE SUCCESS, N.Y. — Triggered by significant income and revenue turnarounds, DealerTrack Holdings raised its revenue and earnings guidance after releasing its first-quarter financial performance.

Company executives said Monday their GAAP net income for the quarter came in at $24.7 million as compared to a GAAP net loss of $2.5 million for the first quarter of last year. They indicated GAAP net income was positively impacted by a $24.5 million non-cash reduction in the valuation allowance against the company's net U.S. deferred tax assets. 

DealerTrack also determined diluted GAAP net income per share for the quarter settled at 59 cents compared to GAAP net loss per share of 6 cents during the opening quarter of last year. Similar to its other net income measure, DealerTrack stressed its diluted GAAP net income per share was positively impacted by 58 cents per share for a non-cash reduction in the valuation allowance against the company's net U.S. deferred tax assets. 

The company arrived at these income levels thanks to a first-quarter revenue total of $77.2 million, up from the same time period a year ago when DealerTrack generated $56.8 million.

DealerTrack also shared three non-GAAP results for the first quarter:

—Adjusted EBITDA for the quarter was $12.9 million, as compared to $4.9 million for the first quarter of 2010.     

—Adjusted net income for the quarter was $7.5 million, as compared to $2.1 million for the first quarter of 2010. 

—Diluted adjusted net income per share was 18 cents for the quarter, as compared to 5 cents for the first quarter of 2010. 

Guidance for 2011 Annual Performance

DealerTrack specified how it raised revenue, GAAP and non-GAAP earnings guidance for the full year. The company began with expected GAAP results:

—Revenue for the year is expected to be between $324.0 million and $330.0 million, net of approximately $3.7 million of contra-revenue, compared to the previous estimate of between $316.0 million and $324.0 million.

—GAAP net income for the year is expected to be between $24.0 million and $26.5 million, compared to the previous estimate of between $2.9 million and $5.4 million.

—Diluted GAAP net income per share for the year is expected to be between $0.56 and $0.62, compared to the previous estimate of between $0.07 and $0.13.

Executives moved on to what they're projecting in terms of non-GAAP results:

—Adjusted EBITDA for the year is expected to be between $62.0 million and $66.0 million, compared to the previous estimate of between $57.0 million and $61.0 million.

—Adjusted net income for the year is expected to be between $33.2 million and $35.7 million, compared to the previous estimate of between $29.2 million and $31.7 million.

—Diluted adjusted net income per share for the year is expected to be between 78 cents and 83 cents compared to the previous estimate of between 68 cents and 74 cents.

The company reiterated its GAAP net income and adjusted net income per share guidance is based on an assumed 42.8 million diluted weighted average shares outstanding. DealerTrack also insisted its guidance assumes that new-vehicles sales will be approximately 12.8 million units, and used-vehicle sales will be approximately 13.0 million units for 2011.

"The assumptions for diluted weighted average shares outstanding and new- and used-car sales are unchanged from our prior estimates," company executives pointed out.

In assessing the first-quarter results and adjusted projections, DealerTrack chairman and chief executive officer Mark O'Neil said, "We are very pleased with our results for the first quarter as our transaction businesses benefitted from strong car sales and a significant improvement in the credit environment, particularly subprime lending. 

"In addition, the momentum in our subscription business is very strong, as dealers are feeling more confident and increasingly willing to invest in solutions that will improve their operations," O'Neil continued.

"Today's results illustrate the leverage in our business model, which, if car sales and credit availability continue to improve, will enable us to continue to deliver strong results," he concluded.