 Sustained Improvements Drive Second Consecutive Month of Positive Cash FlowTAMPA, Fla., Aug. 19, 2020 GLOBE NEWSWIRE -- AutoWeb, Inc. Nasdaq: AUTO, a robust digital marketing platform providing advertising solutions for automotive dealers and OEMs, is reporting select preliminary unaudited results for July 2020. July 2020 Preliminary Unaudited Results in millions, excl. gross margin items July 2020July 2019 Total Revenues6.1 10.2 Gross Profit2.3 1.9 Gross Margin37.5 18.8 Net IncomeLoss0.1 1.1 Adjusted EBITDA0.4 0.2 Cash, cash equivalents and restricted cash12.4 6.0 We are providing our stockholders another intra-quarter update amid the coronavirus pandemic, said Jared Rowe, President and CEO of AutoWeb. Our improved results over the past several months are further evidence of the strength of our turnaround. Gross margin has continued to hold above 35, and we generated positive cash flow and adjusted EBITDA in both June and July. In fact, we drove a higher level of adjusted EBITDA in July than we did for the entire second quarter. This performance reflects the strength, resiliency, and sustainability of our strategy despite the challenging automotive environment.I am extremely proud of our teams ability to navigate through the pandemic, and we will continue to support our dealer and OEM customers by delivering high-quality matches that better engage both buyer and seller alike.The preliminary unaudited financial results for July 2020 and the unaudited financial results for July 2019, as well as the non-GAAP reconciliation tables related to these periods at the end of this press release, are based on calculations or figures prepared internally by the Company and have not been reviewed or audited by the Companys independent registered public accounting firm. The Companys actual results for the month of July 2020 represent the most current information available to the Company and may differ materially from the preliminary unaudited financial results and related non-GAAP reconciliation due to the completion of the Companys financial closing procedures and reviews.About AutoWeb, Inc. AutoWeb, Inc. provides high-quality consumer leads, clicks and associated marketing services to automotive dealers and manufacturers throughout the United States. The company also provides consumers with robust and original online automotive content to help them make informed car-buying decisions. The company pioneered the automotive Internet in 1995 and has since helped tens of millions of automotive consumers research vehicles; connected thousands of dealers nationwide with motivated car buyers; and has helped every major automaker market its brand online.Investors and other interested parties can receive AutoWeb news alerts by accessing the online registration form at investor.autoweb.comemail-alerts.Note about Non-GAAP Financial Measures AutoWeb has disclosed Adjusted EBITDA in this press release, which is a non-GAAP financial measure as defined by SEC Regulation G. The company defines Adjusted EBITDA as net loss before interest, taxes, depreciation, amortization, non-cash stock-based compensation, non-cash gains or losses, and other extraordinary items. A table providing a reconciliation of Adjusted EBITDA is included at the end of this press release.The companys management believes that presenting Adjusted EBITDA provides useful information to investors regarding the underlying business trends and performance of the companys ongoing operations, as well as providing for more consistent period-over-period comparisons. This non-GAAP measure assists management in its operational and financial decision-making and monitoring the companys performance. In addition, we use Adjusted EBITDA as a measure for determining incentive compensation targets. Adjusted EBITDA is used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management strongly encourages investors to review the companys consolidated financial statements in their entirety and to not rely on any single financial measure.Tax Benefit Preservation Plan At December 31, 2019, the company had approximately 100.5 million in available net operating loss carryforwards NOLs for U.S. federal income tax purposes. AutoWeb reminds stockholders about its Tax Benefit Preservation Plan dated May 26, 2010, as amended the Plan between the company and Computershare Trust Company, N.A., as rights agent.The Plan was adopted by the companys board of directors to preserve the companys NOLs and other tax attributes, and thus reduce the risk of a possible change of ownership under Section 382 of the Internal Revenue Code. Any such change of ownership under Section 382 would limit or eliminate the ability of the company to use its existing NOLs for federal income tax purposes. In general, an ownership change will occur if the companys 5 shareholders, for purposes of Section 382, collectively increase their ownership in the company by an aggregate of more than 50 percentage points over a rolling three-year period. The Plan is designed to reduce the likelihood that the company experiences such an ownership change by discouraging any person or group from becoming a new 5 shareholder under Section 382. Rights issued under the Plan could be triggered upon the acquisition by any person or group of 4.9 or more of the companys outstanding common stock and could result in substantial dilution of the acquirers percentage ownership in the company. There is no guarantee that the Plan will achieve the objective of preserving the value of the companys NOLs.As of June 30, 2020, there were 13,146,831 shares of the companys common stock, 0.001 par value, outstanding. Persons or groups considering the acquisition of shares of beneficial ownership of the companys common stock should first evaluate their percentage ownership based on this revised outstanding share number to ensure that the acquisition of shares does not result in beneficial ownership of 4.9 or more of outstanding shares. For more information about the Plan, please visit investor.autoweb.comfinancial-informationtax.Forward-Looking Statements Disclaimer The statements contained in this press release or that may be made during the conference call described above that are not historical facts are forward-looking statements under the federal securities laws. Words such as anticipates, could, may, estimates, expects, projects, intends, pending, plans, believes, will and words of similar substance, or the negative of those words, used in connection with any discussion of future operations or financial performance identify forward-looking statements. In particular, statements regarding expectations and opportunities, new product expectations and capabilities, projections, statements regarding future events, and our outlook regarding our performance and growth are forward-looking statements. These forward-looking statements, including, that the company will continue to support its dealer and OEM customers by delivering high-quality matches that better engage both buyer and seller alike, are not guarantees of future performance and involve assumptions and risks and uncertainties that are difficult to predict. Actual outcomes and results may differ materially from what is expressed in, or implied by, these forward-looking statements. AutoWeb 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; disruptions in automobile production; changes in fuel prices; the economic impact of terrorist attacks, political revolutions or military actions; failure of our internet security measures; 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; the economic impact of epidemics or pandemics; actual costs and expenses exceeding charges taken by AutoWeb; changes in laws and regulations; costs of legal matters, including, defending lawsuits and undertaking investigations and related matters; and other matters disclosed in AutoWebs filings with the Securities and Exchange Commission. Investors are strongly encouraged to review the companys Annual Report on Form 10-K for the year ended December 31, 2019 and other filings with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect the business, operating results or financial condition of AutoWeb and the market price of the companys stock.Company Contact J.P. Hannan Chief Financial Officer 1-949-437-4651 Relations Contact Sean Mansouri, CFA or Cody Slach Gateway Investor Relations 1-949-574-3860 AUTOWEB, INC. RECONCILIATION OF ADJUSTED EBITDA Amounts in thousands For the Month Ended For the Month Ended July 31, 2020 July 31, 2019 Net loss74 1,055 Depreciation and amortization 236 573 Interest income 21 8 Interest expense 86 90 Other income expense 10 2 Federal, state and local taxes 18 13 Non-cash stock compensation expense 167 189 Adjusted EBITDA422 222 