Slide 1: Second Quarter 2022 Earnings Slides
Second Quarter 2022 Earnings Slides August 2, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward looking statements are based on management’s current expectations, are not guarantees of future performance and are subject t
Slide 3: Second Quarter & Year-to-Date Results
S e c o n d Q u a r t e r & Ye a r - t o - D a t e Results 3
Slide 4: KAR Q2 & YTD 2022 Highlights
KAR Q2 & YTD 2022 Highlights* ($ in millions, except per share amounts) KAR Q2 2022 Q2 2021 YTD 2022 YTD 2021 Total operating revenues from continuing operations $384.2 $376.0 $753.6 $745.8 Gross profit** $172.3 $167.2 $330.9 $333.2 % of revenue** 44.8% 44.5% 43.9% 44.7% SG&A $124.1 $106.4 $243.0 $2
Slide 5: Marketplace Q2 & YTD 2022 Highlights
Marketplace Q2 & YTD 2022 Highlights* ($ in millions, except RPU) Marketplace Q2 2022 Q2 2021 YTD 2022 YTD 2021 Auction fees $99.2 $106.3 $200.6 $208.8 Service revenue $147.3 $141.0 $284.8 $287.3 Purchased vehicle sales $45.8 $60.1 $92.1 $115.3 Total Marketplace revenue from continuing operations $2
Slide 6: Finance Q2 & YTD 2022 Highlights
Finance Q2 & YTD 2022 Highlights* ($ in millions, except for revenue per loan transaction) Finance Q2 2022 Q2 2021 YTD 2022 YTD 2021 Interest income $46.5 $33.1 $89.7 $64.6 Fee income $42.7 $35.1 $82.9 $72.2 Other revenue $2.6 $2.2 $4.8 $4.2 Net recovery (provision) for credit losses $0.1 ($1.8) ($1
Slide 7: June 30, 2022 Leverage
June 30, 2022 Leverage (US$ in millions) Balance Maturity Term Loan B-6 (Adjusted LIBOR + 2.25%) $- 2026 Revolving Credit Facility (Adjusted LIBOR + 1.75%) - 2024 Senior Notes (Fixed 5.125%) 950 2025 Finance Leases & Other 15 Total 965 Less: Available Cash* (800) Net Debt 165 Senior Secured Net Leve
Slide 8: Historical Data
AUCTION SERVICES. HISTORICAL DATA
Slide 9: Consolidated Statement of Income – 2020
Consolidated Statement of Income – 2020 Marketplace Finance Consolidated Operating revenues $1,059.3 $267.6 $1,326.9 Operating expenses Cost of services (exclusive of depreciation & amortization) 665.2 79.1 744.3 Selling, general, and administrative 337.9 36.6 374.5 Depreciation and amortization 96.
Slide 10: Consolidated Statement of Income – Q1 2021
Consolidated Statement of Income – Q1 2021 Marketplace Finance Consolidated Operating revenues $304.0 $65.8 $369.8 Operating expenses Cost of services (exclusive of depreciation & amortization) 190.3 13.5 203.8 Selling, general, and administrative 98.5 8.8 107.3 Depreciation and amortization 24.5 2.
Slide 11: Consolidated Statement of Income – Q2 2021
Consolidated Statement of Income – Q2 2021 Marketplace Finance Consolidated Operating revenues $307.4 $68.6 $376.0 Operating expenses Cost of services (exclusive of depreciation & amortization) 195.1 13.7 208.8 Selling, general, and administrative 97.6 8.8 106.4 Depreciation and amortization 24.9 2.
Slide 12: Consolidated Statement of Income – Q3 2021
Consolidated Statement of Income – Q3 2021 Marketplace Finance Consolidated Operating revenues $271.5 $75.6 $347.1 Operating expenses Cost of services (exclusive of depreciation & amortization) 171.9 13.8 185.7 Selling, general, and administrative 96.3 8.5 104.8 Depreciation and amortization 25.2 2.
Slide 13: Consolidated Statement of Income – Q4 2021
Consolidated Statement of Income – Q4 2021 Marketplace Finance Consolidated Operating revenues $278.5 $79.2 $357.7 Operating expenses Cost of services (exclusive of depreciation & amortization) 179.8 14.4 194.2 Selling, general, and administrative 93.1 9.1 102.2 Depreciation and amortization 25.9 2.
Slide 14: Consolidated Statement of Income – 2021
Consolidated Statement of Income – 2021 Marketplace Finance Consolidated Operating revenues $1,161.4 $289.2 $1,450.6 Operating expenses Cost of services (exclusive of depreciation & amortization) 737.1 55.4 792.5 Selling, general, and administrative 385.5 35.2 420.7 Depreciation and amortization 100
Slide 15: Marketplace Metrics
Marketplace Metrics 2Q22 1Q22 2021 4Q21 3Q21 2Q21 1Q21 2020 Revenue1 $292.3 $285.2 $1,161.4 $278.5 $271.5 $307.4 $304.0 $1,059.3 Commercial vehicles sold 177 174 948 162 192 274 320 1,444 Dealer consignment 166 177 651 180 165 168 138 347 vehicles sold Total vehicles sold 343 351 1,599 342 357 442 4
Slide 16: Finance Metrics
Finance Metrics 2Q22 1Q22 2021 4Q21 3Q21 2Q21 1Q21 2020 Interest income $46.5 $43.2 $139.7 $39.7 $35.4 $33.1 $31.5 $117.5 Fee income $42.7 $40.2 $144.4 $36.4 $35.8 $35.1 $37.1 $148.6 Other revenue $2.6 $2.2 $8.6 $2.2 $2.2 $2.2 $2.0 $40.11 Net recovery (provision) for $0.1 ($1.4) ($3.5) $0.9 $2.2 ($1
Slide 17: Appendix
AUCTION SERVICES. APPENDIX
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit), depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items of income and expense and expected incremental revenue and cost savings as
Slide 19: 2020 Adjusted EBITDA Reconciliation
2020 Adjusted EBITDA Reconciliation ($ in millions) Year ended December 31, 2020 Marketplace Finance Consolidated Income (loss) from continuing operations ($133.2) $79.6 ($53.6) Add back: Income taxes (33.1) 21.9 (11.2) Interest expense, net of interest income 87.6 39.0 126.6 Depreciation and amorti
Slide 20: Q1 2021 Adjusted EBITDA Reconciliation
Q1 2021 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended March 31, 2021 Marketplace Finance Consolidated Income (loss) from continuing operations ($30.5) $56.7 $26.2 Add back: Income taxes 5.0 19.5 24.5 Interest expense, net of interest income 21.3 9.3 30.6 Depreciation and amortiza
Slide 21: Q2 2021 Adjusted EBITDA Reconciliation
Q2 2021 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended June 30, 2021 Marketplace Finance Consolidated Income (loss) from continuing operations ($32.0) $16.7 ($15.3) Add back: Income taxes (3.3) 5.7 2.4 Interest expense, net of interest income 21.4 9.4 30.8 Depreciation and amortiz
Slide 22: Q3 2021 Adjusted EBITDA Reconciliation
Q3 2021 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended September 30, 2021 Marketplace Finance Consolidated Income (loss) from continuing operations ($49.9) $23.0 ($26.9) Add back: Income taxes 3.4 6.9 10.3 Interest expense, net of interest income 21.4 10.3 31.7 Depreciation and am
Slide 23: Q4 2021 Adjusted EBITDA Reconciliation
Q4 2021 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended December 31, 2021 Marketplace Finance Consolidated Income (loss) from continuing operations ($13.8) $29.0 $15.2 Add back: Income taxes (31.5) 9.4 (22.1) Interest expense, net of interest income 21.2 10.5 31.7 Depreciation and
Slide 24: 2021 Adjusted EBITDA Reconciliation
2021 Adjusted EBITDA Reconciliation ($ in millions) Year ended December 31, 2021 Marketplace Finance Consolidated Income (loss) from continuing operations ($126.2) $125.4 ($0.8) Add back: Income taxes (26.4) 41.5 15.1 Interest expense, net of interest income 85.3 39.5 124.8 Depreciation and amortiza
Slide 25: Q1 2022 Adjusted EBITDA Reconciliation
Q1 2022 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended March 31, 2022 Marketplace Finance Consolidated Income (loss) from continuing operations ($39.4) $31.0 ($8.4) Add back: Income taxes (15.1) 10.4 (4.7) Interest expense, net of interest income 13.2 12.3 25.5 Depreciation and am
Slide 26: Q2 2022 Adjusted EBITDA Reconciliation
Q2 2022 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended June 30, 2022 Marketplace Finance Consolidated Income (loss) from continuing operations ($36.3) $30.9 ($5.4) Add back: Income taxes (20.2) 10.3 (9.9) Interest expense, net of interest income 9.0 16.2 25.2 Depreciation and amor
Slide 27: YTD 2022 Adjusted EBITDA Reconciliation
YTD 2022 Adjusted EBITDA Reconciliation ($ in millions) Six Months ended June 30, 2022 Marketplace Finance Consolidated Income (loss) from continuing operations ($75.7) $61.9 ($13.8) Add back: Income taxes (35.3) 20.7 (14.6) Interest expense, net of interest income 22.2 28.5 50.7 Depreciation and am
Slide 28: YTD 2021 Adjusted EBITDA Reconciliation
YTD 2021 Adjusted EBITDA Reconciliation ($ in millions) Six Months ended June 30, 2021 Marketplace Finance Consolidated Income (loss) from continuing operations ($62.5) $73.4 $10.9 Add back: Income taxes 1.7 25.2 26.9 Interest expense, net of interest income 42.7 18.7 61.4 Depreciation and amortizat
Slide 29: Operating Adjusted Net Income (Loss) per Share Reconciliation
Operating Adjusted Net Income (Loss) per Share Reconciliation ($ in millions, except per share amounts), (unaudited) Three Months ended Six Months ended June 30, June 30, 2022 2021 2022 2021 Net income (loss) from continuing operations (1) ($5.4) ($15.3) ($13.8) $10.9 Acquired amortization expense 8