Slide 1: First Quarter 2022 Earnings Slides
First Quarter 2022 Earnings Slides May 3, 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: First Quarter Summary
First Quarter Summary ❑ Basis of Presentation for KAR Financial Information o KAR’s financial performance represents the continuing operations of the business, excluding the discontinued operations of the ADESA U.S. physical auctions (based on management’s intention to sell the business). The result
Slide 4: First Quarter Results
WANS AUCTION SERVICES« First Quarter Results
Slide 5: KAR Q1 2022 Highlights
KAR Q1 2022 Highlights* ($ in millions, except per share amounts) KAR Q1 2022 Q1 2021 Total operating revenues from continuing operations $369.4 $369.8 Gross profit** $158.6 $166.0 % of revenue** 42.9% 44.9% SG&A $118.9 $107.3 Other (income) expense, net $1.2 ($49.7) EBITDA $38.4 $108.2 Adjusted EBI
Slide 6: ADESA Q1 2022 Highlights
ADESA Q1 2022 Highlights* ($ in millions, except RPU) ADESA Q1 2022 Q1 2021 Auction fees $101.4 $102.5 Service revenue $137.5 $146.3 Purchased vehicle sales $46.3 $55.2 Total ADESA revenue from continuing operations $285.2 $304.0 Gross profit** $89.4 $113.7 % of revenue, excluding purchased vehicles
Slide 7: AFC Q1 2022 Highlights
AFC Q1 2022 Highlights* ($ in millions, except for revenue per loan transaction) AFC Q1 2022 Q1 2021 Interest and fee income $83.4 $68.6 Other revenue $2.2 $2.0 Provision for credit losses ($1.4) ($4.8) Total AFC revenue $84.2 $65.8 Gross profit** $69.2 $52.3 % of revenue** 82.2% 79.5% SG&A $10.5 $8
Slide 8: March 31, 2022 Leverage
March 31, 2022 Leverage (US$ in millions) Balance Maturity Term Loan B-6 (Adjusted LIBOR + 2.25%) $926 2026 Revolving Credit Facility (Adjusted LIBOR + 1.75%) 101 2024 Senior Notes (Fixed 5.125%) 950 2025 Finance Leases & Other 20 Total 1,997 Less: Available Cash* (137) Net Debt $1,860 Senior Secure
Slide 9: Appendix
AUCTION SERVICES. APPENDIX
Slide 10: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit), depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items of income and expense and expected incremental revenue and cost savings as
Slide 11: Q1 2022 Adjusted EBITDA Reconciliation
Q1 2022 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended March 31, 2022 ADESA AFC Consolidated Net income (loss) from continuing operations ($39.4) $31.0 ($8.4) Add back: Income taxes (15.1) 10.4 (4.7) Interest expense, net of interest income 13.2 12.3 25.5 Depreciation and amortiza
Slide 12: Q1 2021 Adjusted EBITDA Reconciliation
Q1 2021 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended March 31, 2021 ADESA AFC Consolidated Net income (loss) from continuing operations ($30.5) $56.7 $26.2 Add back: Income taxes 5.0 19.5 24.5 Interest expense, net of interest income 21.3 9.3 30.6 Depreciation and amortization 2
Slide 13: Operating Adjusted Net Income (Loss) from Continuing Operations per Share Reconciliation
Operating Adjusted Net Income (Loss) from Continuing Operations per Share Reconciliation ($ in millions, except per share amounts), (unaudited) Three Months ended March 31, 2022 2021 Net income (loss) ($0.3) $50.9 Less: income from discontinued operations (8.1) (24.7) Net income (loss) from continui