Restructuring Expected to Streamline
Organization and Reduce Annualized Expenses by Over $20 Million
Jantoon Reigersman
Appointed President and Chief Executive
Officer
Michael Darrow to
Depart from Company
SANTA
MONICA, Calif., June 14,
2023 /PRNewswire/ -- TrueCar, Inc. (NASDAQ:
TRUE) today announced a strategic restructuring to streamline the
organization, including a workforce reduction impacting
approximately 102 positions, or 24% of the Company's headcount, and
the appointment of Jantoon Reigersman as President and Chief
Executive Officer. Mr. Reigersman succeeds Michael Darrow, who is departing TrueCar and
vacating his position on the Board.
The restructuring is expected to result in non-recurring cash
payments of approximately $7 million,
primarily in the second and third quarters of 2023, and an
annualized reduction in expenses exclusive of stock-based
compensation of over $20 million. As
of May 31, 2023, TrueCar had cash and
cash equivalents of approximately $146.5
million. Although management expects that in the near term
this aggregate cash balance could drop below $125 million, it continues to anticipate
breakeven or positive Adjusted EBITDA[1] and double-digit
year-over-year revenue growth in the fourth quarter of 2023.
"The restructuring announced today better aligns our cost
structure with our revenue base and is designed to make TrueCar a
nimbler, more efficient company," said Barbara Carbone, incoming Chair of the Board.
"We made this difficult decision after an extensive review and
believe that it is necessary to enable TrueCar to achieve its
strategic priorities and create long-term shareholder value."
"As part of the reorganization, the Board has appointed Jantoon
Reigersman as TrueCar's new President and Chief Executive Officer.
Jantoon has been with us for over two years, first as our Chief
Financial Officer and more recently as our Chief Operating Officer,
during which time he has worked tirelessly to ensure TrueCar's
success and improve its financial condition. The Board is confident
that he is well suited to successfully navigate a challenging
macroeconomic environment while positioning the Company for
profitable growth. He has a clear vision for TrueCar's future and I
and the rest of the Board look forward to working together with him
to execute on it," said Carbone.
Ms. Carbone continued, "On behalf of the Board of Directors, I
thank Mike Darrow for his steadfast
leadership and many contributions to TrueCar, including leading us
since 2019 through unprecedented challenges for our Company and
industry. We are grateful to him for his passion and dedication to
TrueCar over more than six years of service and wish him all the
best."
Mr. Darrow said, "Leading this great company for the last four
years has been a tremendous honor. Through it all, TrueCar has
remained guided by its north star, building the industry's most
personalized and efficient auto shopping experience and bringing
more of the process online. I am proud of the groundwork that has
been laid as the Company's transformation is underway. Furthermore,
we have established a strong leadership team to take the Company to
the next chapter. I wish Jantoon and the rest of the leadership
team the best of luck in writing that chapter."
Mr. Reigersman said, "I am honored to be named TrueCar's CEO and
I want to thank Mike for his partnership during our time together.
I am grateful for the opportunity to lead this extraordinary
organization into the future. I am confident that our strong
balance sheet and talented colleagues position us well to execute
effectively on our priorities and create significant shareholder
value."
About Jantoon Reigersman
Jantoon Reigersman recently served as TrueCar's Chief Operating
Officer since March 2022. From
January 2021 to February 2023, he also served as our Chief
Financial Officer. Before joining TrueCar, he served from
December 2017 to May 2020 as the Chief Financial Officer of Leaf
Group, Ltd., a diversified Internet, media and e-commerce company,
and from January 2014 until joining
Leaf, he served as Chief Financial officer of Ogin, Inc., a clean
technology company. Before then, he was in the Special Situations
Group at Goldman Sachs and in M&A investment banking at Morgan
Stanley.
Mr. Reigersman holds an M.S. and a B.S. in International
Business Administration from the Rotterdam School of Management at
Erasmus University, a CEMS Masters in
International Management from Rotterdam School of Management and
the École des Hautes Études Commerciales de Paris and is a graduate of the General
Management Program at the Harvard Business
School.
Forward-Looking Statements
This press release contains forward-looking statements. All
statements contained in this press release other than statements of
historical fact are forward-looking statements, including
statements regarding the amount and timing of non-recurring
expenses related to the restructuring, the annualized expense
reductions we expect to realize from the restructuring and our
expectations regarding our future cash balances and future
financial performance. These forward-looking statements are subject
to a number of risks, uncertainties and assumptions that may prove
incorrect, any of which could cause our results to differ
materially from those expressed or implied by such forward-looking
statements, and include, among others, those risks and
uncertainties described under the heading "Risk Factors" in our
Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and
Exchange Commission, or SEC, and our Quarterly Report on Form 10-Q
for the quarter ended March 31, 2023
filed with the SEC. Moreover, we operate in a very competitive and
rapidly-changing environment. New risks emerge from time to time.
It is not possible for our management to predict all risks, nor can
management assess the impact of all factors on our business or the
extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statements we may make. All forward-looking
statements in this press release are based on information available
to our management as of the date of this press release and, except
as required by law, management assumes no obligation to update
those forward-looking statements, which speak only as of their
respective dates.
Use of Non-GAAP Financial Measure
This press release includes the non-GAAP financial measure we
refer to as Adjusted EBITDA. We defined Adjusted EBITDA as net
income (loss) adjusted to exclude interest income, depreciation and
amortization, stock-based compensation, gain (loss) from equity
method investment including impairment charges, changes in the fair
value of contingent consideration liability, goodwill impairment
charges, other income, lease exit costs, impairment of ROU
assets, transaction costs and income taxes. Adjusted EBITDA should
not be considered as an alternative to GAAP net loss or any other
measure of financial performance calculated and presented in
accordance with GAAP.
About TrueCar
TrueCar is a leading automotive digital marketplace that lets
auto buyers and sellers connect to our nationwide network of
Certified Dealers. With access to an expansive inventory provided
by our Certified Dealers, we are building the industry's most
personalized and efficient auto shopping experience as we seek to
bring more of the process online. Consumers who visit our
marketplace will find a suite of vehicle discovery tools, price
ratings and market context on new, used and Certified Pre-Owned
vehicles. When they are ready, shoppers in TrueCar's
marketplace can connect with a Certified Dealer in our network, who
shares our belief that truth, transparency and fairness are the
foundation of a great auto shopping experience. As part of our
marketplace, TrueCar powers auto-buying programs for over 250
leading brands, including AARP, Sam's Club, Navy Federal Credit
Union and American Express.
For more information, please visit www.truecar.com, and follow
us on LinkedIn, Facebook or Twitter.
1 Adjusted EBITDA is a non-GAAP financial measure.
Refer to its definition set forth below. We are unable to provide a
reconciliation of forward-looking Adjusted EBITDA to GAAP net loss,
the most comparable financial measure calculated and presented in
accordance with GAAP, without unreasonable effort because of the
uncertainty and potential variability in amount and timing of
stock-based compensation, lease exit costs and impairment of
right-of-use assets, which are reconciling items between GAAP net
loss and Adjusted EBITDA and could significantly impact GAAP
results.
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SOURCE TrueCar.com
