 Business Performs Better than Expected Given COVID-19 Impacts; Annual Revenues Up 2 PercentHOFFMAN ESTATES, Ill., Aug. 04, 2020 GLOBE NEWSWIRE -- CDK Global, Inc. NASDAQ:CDK today announced financial results for its fiscal 2020 fourth quarter and year ended June 30, 2020.We exceeded our expectations during the quarter, even given the challenges that faced the industry and the support we gave our customers, highlighting the strength and resilience of our business model, said Brian Krzanich, CDK chief executive officer. CDK is leading the digital transformation that was accelerated within the industry by the COVID-19 pandemic and we continued to bring integrated and accurate digital solutions to our dealers.We delivered 450 million in revenue for the quarter, with about 82 from subscription-based recurring revenue. Our annual results came in at the high end or exceeded our guidance, said Joe Tautges, CDK chief financial officer. We came through the quarter in a much better position than expected and our underlying business remains strong. Our investment strategy continues to provide the solutions and capabilities necessary to deliver solid revenue growth.Fourth Quarter and Fiscal 2020 Results CDK Global, Inc. Q4 2020 Change from Q4 2019 FY 2020 Change from 2019 million except per share GAAP Revenues 449.6 -8 1,960.1 2 GAAP Earnings before income taxes 74.8 476 424.2 40 Non-GAAP Adjusted earnings before income taxes 110.7 -19 522.0 -7 GAAP Diluted earnings attributable to CDK per share 0.37 129 1.70 73 Non-GAAP Adjusted diluted earnings attributable to CDK per share 0.67 -24 3.17 -5 GAAP Net earnings attributable to CDK 45.6 129 207.5 67 GAAP Net earnings attributable to CDK margin 10.1 4180 bps 10.6 410 bps Non-GAAP Adjusted EBITDA 169.8 -12 750.9 -3 Non-GAAP Adjusted EBITDA margin 37.8 -190 bps 38.3 -220 bps The non-GAAP adjusted results and guidance presented in this press release represent non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP measures are provided in the tables at the end of this press release.Fourth Quarter Highlights: New products and enhancements launched to help dealers transition to digital retailing Six quarters in a row with year-over-year site growth in North America Auto Highest sales month over last two years in North America Auto in June Fortellis Platform achieves 12 million transaction milestone CDK releases updated data on market trends for Auto, Marine and Powersports Financial impacts related to COVID-19 come in at low end of expected rangeImpacts to the Fourth Quarter and Fiscal 2020: Foreign exchange rates: Growth in revenues was negatively impacted by 1 percentage point by foreign exchange rates for both the quarter and full year, and the percentage growth in adjusted earnings before income taxes was negatively impacted by 1 percentage point for the quarter and for the full year remained unchanged by foreign exchange rates. Tax rate: The GAAP effective tax rate for the quarter was 18.2, compared to 116.6 in last years fourth quarter. The adjusted effective tax rate for the quarter was 25.2, compared to 19.2 in last years fourth quarter. The GAAP effective tax rate for the full year of fiscal 2020 was 28.4 compared to 20.5 last year. The adjusted effective tax rate for the full year of fiscal 2020 was 24.3 compared to 23.7 last year. CDK Segment Information - North America CDK North America Q4 2020 Change from Q4 2019 FY 2020 Change from 2019 million Revenues 376.7 -8 1,639.0 3 GAAP Earnings before income taxes 130.2 193 587.6 14 GAAP Earnings before income taxes margin 34.6 2370 bps 35.9 340 bps Non-GAAP Adjusted earnings before income taxes 141.8 -16 647.1 -6 Non-GAAP Adjusted earnings before income taxes margin 37.6 -390 bps 39.5 -360 bps CDK Segment Information - International CDK International Q4 2020 Change from Q4 2019 FY 2020 Change from 2019 million Revenues 72.9 -9 321.1 Constant currency revenues 75.6 -6 330.6 3 GAAP Earnings before income taxes 2.9 -86 58.1 -25 GAAP Earnings before income taxes margin 4.0 -2220 bps 18.1 -590 bps Non-GAAP Adjusted earnings before income taxes 17.3 -18 73.1 -6 Non-GAAP Adjusted earnings before income taxes margin 23.7 -280 bps 22.8 -140 bps Website SchedulesOther financial information, including financial statements and supplementary schedules presented on a GAAP and adjusted basis, and the schedule of quarterly revenues and pretax earnings by reportable segment have been updated for the fourth quarter and year ended June 30, 2020 and will be posted to the CDK Investor Relations website, in the Financial Information section.Webcast and Conference CallAn analyst conference call will be held today, Tuesday, August 4, 2020 at 4:00 p.m. CT. A live webcast of the call will be available on a listen-only basis. To listen to the webcast, go to the CDK Investor Relations website, and click on the webcast icon. An supplemental slide presentation will be available to download and print about 30 minutes before the webcast at the CDK Investor Relations website at CDK financial news releases, current financial information, SEC filings and Investor Relations presentations are accessible at the same website.About CDK GlobalWith 2 billion in revenues, CDK Global NASDAQ:CDK is a leading global provider of integrated information technology solutions to the automotive retail and adjacent industries. Focused on enabling end-to-end automotive commerce, CDK Global provides solutions to dealers in more than 100 countries around the world, serving approximately 30,000 retail locations and most automotive manufacturers. CDK solutions automate and integrate all parts of the dealership and buying process, including the acquisition, sale, financing, insuring, parts supply, repair and maintenance of vehicles. Visit cdkglobal.com. CDK Global, Inc. Consolidated Statements of Operations In millions, except per share amounts Three Months Ended Fiscal Year Ended June 30, June 30, 2020 2019 2020 2019 Revenues449.6 488.6 1,960.1 1,914.8 Expenses: Cost of revenues240.8 236.6 966.5 899.8 Selling, general and administrative expenses100.6 122.2 429.9 444.7 Restructuring expenses14.2 7.9 14.2 28.0 Litigation provision 90.0 90.0 Total expenses355.6 456.7 1,410.6 1,462.5 Operating earnings94.0 31.9 549.5 452.3 Interest expense35.1 37.2 144.3 139.1 Loss from equity method investment2.7 17.0 2.7 17.0 Other income, net18.6 2.4 21.7 7.7 Earnings Loss before income taxes74.8 19.9 424.2 303.9 Provision for income taxes13.6 23.2 120.4 62.2 Net earnings loss from continuing operations61.2 3.3 303.8 241.7 Net earnings loss from discontinued operations14.4 156.3 89.3 109.8 Net earnings loss46.8 153.0 214.5 131.9 Less: net earnings attributable to noncontrolling interest1.2 2.1 7.0 7.9 Net earnings loss attributable to CDK45.6 155.1 207.5 124.0 Net earnings loss attributable to CDK per share - basic: Continuing operations0.49 0.01 2.44 1.86 Discontinued operations0.12 1.29 0.73 0.87 Total net earnings loss attributable to CDK per share - basic0.37 1.28 1.71 0.99 Net earnings loss attributable to CDK per share - diluted: Continuing operations0.49 0.01 2.43 1.85 Discontinued operations0.12 1.28 0.73 0.87 Total net earnings loss attributable to CDK per share - diluted0.37 1.27 1.70 0.98 Weighted-average common shares outstanding: Basic121.7 121.6 121.6 125.5 Diluted122.1 122.4 122.1 126.4 CDK Global, Inc. Consolidated Balance Sheets In millions June 30, June 30, 2020 2019 Assets Current assets: Cash and cash equivalents215.7 311.4 Accounts receivable, net of allowances300.0 290.4 Other current assets169.9 164.8 Current assets held for sale 220.5 Total current assets685.6 987.1 Property, plant and equipment, net109.1 144.8 Other assets475.7 284.9 Goodwill1,348.5 1,356.3 Intangible assets, net235.2 225.9 Total assets2,854.1 2,999.0 Liabilities and Stockholders Deficit Current liabilities: Current maturities of long-term debt and finance lease liabilities20.7 270.8 Accounts payable39.4 38.0 Accrued expenses and other current liabilities223.8 178.5 Litigation liability57.0 90.0 Accrued payroll and payroll-related expenses78.0 89.2 Short-term deferred revenues107.9 124.8 Current liabilities held for sale 48.9 Total current liabilities526.8 840.2 Long-term debt and capital finance lease liabilities2,655.1 2,659.4 Long-term deferred revenues52.8 68.4 Deferred income taxes78.4 80.5 Other liabilities121.7 65.0 Total liabilities3,434.8 3,713.5 Stockholders Deficit: Preferred stock Common stock1.6 1.6 Additional paid-in-capital687.9 688.5 Retained earnings1,045.5 911.6 Treasury stock, at cost2,305.2 2,324.6 Accumulated other comprehensive loss25.9 6.7 Total CDK stockholders deficit596.1 729. 