ABTL: 4Q11 Results Ahead; Auto Sales Outlook Bright ABTL is poised to benefit from a resurgence in auto sales as pent up demand and increased accessibility to financing is drawing consumers back to dealerships at the highest levels since 2007. We believe the company’s higher sales close rates will continue to lead to market share gains in 2012. Reiterate Buy rating and $2 price target. Rebounding auto sales support purchase request growth: Purchase request revenue improved 9.8% y/y to $15.1M as the company benefited from a significant rebound in light vehicle sales and pricing improvements on its purchase requests. Light vehicle sales volumes improved 10% y/y in 4Q11 according to JD Power, ahead of expectations. ABTL delivered approx. 1.0M auto purchase requests in 4Q11, up from approx. 917k in 4Q10. We believe the company’s purchase requests continue to outpace its competitors in regards to sales close rates and expect a larger portion of budget to flow towards ABTL in 2012. 4Q11 results ahead; in-house lead drives gross margin higher: 4Q11 revenue of $16.2M , up 10.7% y/y, was above our estimate of $15.9M and GAAP EPS of $0.01 was in-line with our estimate. 4Q11 gross margin of 42.5% improved from that of 39.3% in 4Q10 and was ahead of our estimate of 40.7%, due to a favorable shift towards internally generated purchase leads and a 26% y/y improvement in high-margin advertising revenue to $1.1M. In 4Q11, ABTL generated approx. 70% of leads internally, compare to approx. 43% in 4Q10. GAAP EPS of $0.01 in 4Q11 improved from GAAP loss per share of ($0.06) in 4Q10. We are slightly lowering our FY12 estimates to reflect mix shift from higher margin retail leads to lower margin wholesale leads as demand from OEM's outpaces dealer purchase request demand. ABTL to benefit from y/y vehicle sales growth in 2012: JD Power recently increased its 2012 light vehicle sales estimate to 15.1M units, up from 14.0M previously as improved access to consumer credit and pent up demand draw new auto purchasers back to dealerships. The current 15.1M SAAR estimate represents the highest level of light vehicle sales since 2007. In addition to purchase request growth, we expect advertising revenue to increase approx. 20% y/y as auto manufacturers, in particular Japanese OEM’s, attempt to gain market share. Introducing FY13 estimates. Reiterate Buy rating and $2.00 price target.