Openlane, Inc. · NYSE:OPLN
Openlane — Q4 2020 Earnings Presentation
32 slides from Openlane's earnings presentation, Feb 16, 2021
Slide 1: Q4 2020 & Annual Earnings Slides
Q4 2020 & Annual Earnings Slides February 16, 2021
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: Fourth Quarter Summary
Fourth Quarter Summary ❑ Financial Performance – Year-to-Date o Consolidated revenue of $2,187.7M, vehicles sold of 3.1M o Adjusted EBITDA of $375.3M o Operating adjusted EPS of $0.51 ❑ Operations o 100% of transactions online o Completed BacklotCars acquisition o Permanently reduced operating expen
Slide 4: 2021 Guidance
2021 Guidance ANNUAL GUIDANCE (in millions, except per share amounts) 2021 2020 Net income from continuing operations $90 $0.5 Add back: Income tax expense $38 $4.9 Interest expense, net of interest income $125 $127.3 Depreciation and amortization $205 $191.3 EBITDA $458 $324.0 Total Adjusted EBITDA
Slide 5: December 31, 2020 Leverage
December 31, 2020 Leverage (US$ in millions) Balance Maturity Term Loan B-6 (Adjusted LIBOR + 2.25%) $938 2026 Revolving Credit Facility (Adjusted LIBOR + 1.75%) - 2024 Senior Notes (Fixed 5.125%) 950 2025 Finance Leases & Other 31 Total 1,919 Less: Available Cash* (700) Net Debt $1,219 Senior Secur
Slide 6: Fourth Quarter & Year-to-Date Results
Fourth Quarter & Ye a r - t o - D a t e Results 6
Slide 7: KAR 2020 Highlights
KAR 2020 Highlights ($ in millions, except per share amounts) KAR Q4 2020 Q4 2019 YTD 2020 YTD 2019 Total operating revenues $529.6 $671.3 $2,187.7 $2,781.9 Gross profit** $204.2 $276.4 $902.9 $1,164.8 % of revenue 38.6% 41.2% 41.3% 41.9% SG&A $139.7 $164.7 $545.4 $662.0 EBITDA $60.4 $113.0 $324.0 $
Slide 8: ADESA 2020 Highlights
ADESA 2020 Highlights ($ in millions, except RPU) ADESA Q4 2020 Q4 2019 YTD 2020 YTD 2019 Auction fees $207.0 $261.0 $887.7 $1,115.3 Service revenue $173.5 $243.0 $737.4 $1,018.2 Purchased vehicle sales $83.7 $79.3 $295.0 $295.5 Total ADESA Revenue $464.2 $583.3 $1,920.1 $2,429.0 Gross profit** $155
Slide 9: AFC 2020 Highlights
AFC 2020 Highlights ($ in millions, except for revenue per loan transaction) AFC Q4 2020 Q4 2019 YTD 2020 YTD 2019 Interest and fee income $61.4 $86.0 $266.1 $342.1 Other revenue $1.9 $2.8 $8.7 $10.9 Provision for credit losses ($2.7) ($9.8) ($38.6) ($35.3) Warranty contract revenue $4.8 $9.0 $31.4
Slide 10: Auction Services. Historical Data
AUCTION SERVICES. HISTORICAL DATA
Slide 11: ADESA Statements of Income (Loss) – 2020 & 2019
ADESA Statements of Income (Loss) – 2020 & 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 YTD 2020 Operating revenues $ 567.0 $ 362.2 $ 526.7 $ 464.2 $ 1,920.1 Operating expenses Cost of services (exclusive of depreciation & amortization) 370.7 217.2 309.4 308.4 1,205.7 Selling, general, and administrative 15
Slide 12: ADESA Revenue
ADESA Revenue 2020 4Q20 3Q20 2Q20 1Q20 2019 4Q19 3Q19 2Q19 1Q19 Auction Fees $887.7 $207.0 $247.6 $177.8 $255.3 $1,115.3 $261.0 $276.0 $294.5 $283.8 Service Revenue $737.4 $173.5 $192.9 $134.8 $236.2 $1,018.2 $243.0 $258.5 $258.6 $258.1 Purchased Vehicle $295.0 $83.7 $86.2 $49.6 $75.5 $295.5 $79.3 $
Slide 13: ADESA Metrics - Annual
ADESA Metrics - Annual 2020 2019 2018 2017 2016 Revenue1 $1,920.1 $2,429.0 $2,101.9 $1,937.5 $1,765.3 On-premise vehicles sold 1,511 2,137 2,124 2,189 2,112 Off-premise vehicles sold 1,551 1,647 1,348 991 773 Total vehicles sold 3,062 3,784 3,472 3,180 2,885 Auction fees per vehicle sold $290 $295 $
Slide 14: ADESA Metrics - Quarter
ADESA Metrics - Quarter 4Q20 3Q20 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 Revenue1 $464.2 $526.7 $362.2 $567.0 $583.3 $613.6 $632.4 $599.7 On-premise vehicles sold 328 403 312 468 502 527 553 555 Off-premise vehicles sold 353 468 336 394 385 431 441 390 Total vehicles sold 681 871 648 862 887 958 994 945 Auct
Slide 15: AFC Statements of Income – 2020 & 2019
AFC Statements of Income – 2020 & 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 YTD 2020 Operating revenues $ 78.5 $ 56.8 $ 66.9 $ 65.4 $ 267.6 Operating expenses Cost of services (exclusive of depreciation & amortization) 23.9 17.9 20.3 17.0 79.1 Selling, general, and administrative 10.0 8.6 8.9 9.1 36.6 De
Slide 16: AFC Metrics - Annual
AFC Metrics - Annual 2020 2019 2018 2017 2016 Revenue $267.6 $352.9 $340.9 $301.3 $286.8 Loan Transaction Units (LTU) 1,519 1,783 1,760 1,688 1,718 Revenue per Loan Transaction, Excluding $156 $178 $175 $159 $148 “Warranty Contract Revenue” Ending Managed Finance Receivables $1,911.0 $2,115.2 $2,014
Slide 17: AFC Metrics - Quarter
AFC Metrics - Quarter 4Q20 3Q20 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 Revenue $65.4 $66.9 $56.8 $78.5 $88.0 $88.3 $86.7 $89.9 Loan Transaction Units (LTU) 327 324 420 448 443 442 437 461 Revenue per Loan Transaction, Excluding “Warranty Contract $186 $179 $115 $155 $178 $180 $178 $177 Revenue” Ending Manage
Slide 18: AFC Provision for Credit Losses - Annual
AFC Provision for Credit Losses - Annual 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Ending Managed $1,911.0 $2,115.2 $2,014.8 $1,912.6 $1,792.2 $1,641.0 $1,371.1 $1,107.6 $1,004.2 $883.2 $771.6 $613.0 $506.6 $847.9 Receivables Average Managed $1,854.8 $2,059.9 $1,959.8 $1,
Slide 19: AFC Provision for Credit Losses - Quarterly
AFC Provision for Credit Losses - Quarterly 4Q20 3Q20 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 Ending Managed $1,911.0 $1,744.8 $1,548.3 $1,954.8 $2,115.2 $2,110.4 $2,070.1 $1,989.1 Receivables Average Managed $1,827.9 $1,646.6 $1,751.6 $2,035.0 $2,112.8 $2,090.3 $2,029.6 $2,002.0 Receivables Provision for Cre
Slide 20: Appendix
AUCTION SERVICES. APPENDIX
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit), depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items of income and expense and expected incremental revenue and cost savings as
Slide 22: Q1 2020 Adjusted EBITDA Reconciliation
Q1 2020 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended March 31, 2020 ADESA AFC Consolidated Net income (loss) from continuing operations ($18.6) $21.4 $2.8 Add back: Income taxes (5.2) 7.2 2.0 Interest expense, net of interest income 23.7 13.5 37.2 Depreciation and amortization 4
Slide 23: Q2 2020 Adjusted EBITDA Reconciliation
Q2 2020 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended June 30, 2020 ADESA AFC Consolidated Net income (loss) from continuing operations ($45.5) $13.2 ($32.3) Add back: Income taxes (9.5) 4.9 (4.6) Interest expense, net of interest income 21.4 9.2 30.6 Depreciation and amortizatio
Slide 24: Q3 2020 Adjusted EBITDA Reconciliation
Q3 2020 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended September 30, 2020 ADESA AFC Consolidated Net income (loss) from continuing operations $23.5 $23.6 $47.1 Add back: Income taxes 7.4 3.5 10.9 Interest expense, net of interest income 21.7 7.5 29.2 Depreciation and amortization
Slide 25: Q4 2020 Adjusted EBITDA Reconciliation
Q4 2020 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended December 31, 2020 ADESA AFC Consolidated Net income (loss) from continuing operations ($38.5) $21.4 ($17.1) Add back: Income taxes (9.7) 6.3 (3.4) Interest expense, net of interest income 21.5 8.8 30.3 Depreciation and amortiz
Slide 26: YTD 2020 Adjusted EBITDA Reconciliation
YTD 2020 Adjusted EBITDA Reconciliation ($ in millions) Year ended December 31, 2020 ADESA AFC Consolidated Net income (loss) from continuing operations ($79.1) $79.6 $0.5 Add back: Income taxes (17.0) 21.9 4.9 Interest expense, net of interest income 88.3 39.0 127.3 Depreciation and amortization 17
Slide 27: Q1 2019 Adjusted EBITDA Reconciliation
Q1 2019 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended March 31, 2019 ADESA AFC Consolidated Net income (loss) from continuing operations ($11.4) $26.7 $15.3 Add back: Income taxes (3.2) 9.7 6.5 Interest expense, net of interest income 39.1 16.8 55.9 Depreciation and amortization
Slide 28: Q2 2019 Adjusted EBITDA Reconciliation
Q2 2019 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended June 30, 2019 ADESA AFC Consolidated Net income (loss) from continuing operations $3.5 23.9 $27.4 Add back: Income taxes (1.6) 10.3 8.7 Interest expense, net of interest income 38.9 16.1 55.0 Depreciation and amortization 44.6
Slide 29: Q3 2019 Adjusted EBITDA Reconciliation
Q3 2019 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended September 30, 2019 ADESA AFC Consolidated Net income (loss) from continuing operations $6.9 $27.5 $34.4 Add back: Income taxes 4.1 9.1 13.2 Interest expense, net of interest income 21.6 15.6 37.2 Depreciation and amortization
Slide 30: Q4 2019 Adjusted EBITDA Reconciliation
Q4 2019 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended December 31, 2019 ADESA AFC Consolidated Net income (loss) from continuing operations ($12.6) $27.9 $15.3 Add back: Income taxes 0.6 8.7 9.3 Interest expense, net of interest income 23.3 15.0 38.3 Depreciation and amortization
Slide 31: YTD 2019 Adjusted EBITDA Reconciliation
YTD 2019 Adjusted EBITDA Reconciliation ($ in millions) Year ended December 31, 2019 ADESA AFC Consolidated Net income (loss) from continuing operations ($13.6) $106.0 $92.4 Add back: Income taxes (0.1) 37.8 37.7 Interest expense, net of interest income 122.9 63.5 186.4 Depreciation and amortization
Slide 32: Operating Adjusted Net Income from Continuing Operations per Share Reconciliation
Operating Adjusted Net Income from Continuing Operations per Share Reconciliation ($ in millions, except per share amounts), (unaudited) Three Months ended Year ended December 31, December 31, 2020 2019 2020 2019 Net income (loss) ($17.1) $19.8 $0.5 $188.5 Less: Income from discontinued operations -