Openlane, Inc. · NYSE:OPLN
Openlane — KAR Auction Services — Q1 2021 Earnings Presentation
22 slides from Openlane's earnings presentation, May 4, 2021
Slide 1: First Quarter 2021 Earnings Slides
First Quarter 2021 Earnings Slides May 4, 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: First Quarter Summary
First Quarter Summary ❑ Financial Performance o Consolidated revenue of $581.6M ($488.9M excluding purchased vehicles); vehicles sold of 753K o ADESA gross profit percentage, excluding purchased vehicles of 47.0%*; gross profit/vehicle sold of $264* o Adjusted EBITDA of $123.2M ▪ Includes $17.0M in
Slide 4: 2021 Guidance
2021 Guidance ANNUAL GUIDANCE ACTUAL (in millions, except per share amounts) 2021 2020 Net income $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 addbacks, net $17 $
Slide 5: March 31, 2021 Leverage
March 31, 2021 Leverage (US$ in millions) Balance Maturity Term Loan B-6 (Adjusted LIBOR + 2.25%) $936 2026 Revolving Credit Facility (Adjusted LIBOR + 1.75%) - 2024 Senior Notes (Fixed 5.125%) 950 2025 Finance Leases & Other 35 Total 1,921 Less: Available Cash* (699) Net Debt $1,222 Senior Secured
Slide 6: First Quarter Results
WANS AUCTION SERVICES« First Quarter Results
Slide 7: KAR Q1 2021 Highlights
KAR Q1 2021 Highlights* ($ in millions, except per share amounts) KAR Q1 2021 Q1 2020 Total operating revenues $581.6 $645.5 Gross profit** $251.2 $250.9 % of revenue** 43.2% 38.9% SG&A $149.0 $162.4 Other income, net $50.2 $2.0 EBITDA $152.2 $89.7 Adjusted EBITDA $123.2 $88.6 Net income $50.9 $2.8
Slide 8: ADESA Q1 2021 Highlights
ADESA Q1 2021 Highlights* ($ in millions, except RPU) ADESA Q1 2021 Q1 2020 Auction fees $235.5 $255.3 Service revenue $187.6 $236.2 Purchased vehicle sales $92.7 $75.5 Total ADESA Revenue $515.8 $567.0 Gross profit** $198.9 $196.3 % of revenue, excluding purchased vehicles** 47.0% 39.9% SG&A $140.2
Slide 9: AFC Q1 2021 Highlights
AFC Q1 2021 Highlights* ($ in millions, except for revenue per loan transaction) AFC Q1 2021 Q1 2020 Interest and fee income $68.6 $83.8 Other revenue $2.0 $2.7 Provision for credit losses ($4.8) ($16.9) Warranty contract revenue $-- $8.9 Total AFC revenue $65.8 $78.5 Gross profit** $52.3 $54.6 % of
Slide 10: Historical Data
AUCTION SERVICES. HISTORICAL DATA
Slide 11: ADESA Revenue
ADESA Revenue 1Q21 2020 4Q20 3Q20 2Q20 1Q20 2019 4Q19 3Q19 2Q19 Auction Fees $235.5 $887.7 $207.0 $247.6 $177.8 $255.3 $1,115.3 $261.0 $276.0 $294.5 Service Revenue $187.6 $737.4 $173.5 $192.9 $134.8 $236.2 $1,018.2 $243.0 $258.5 $258.6 Purchased Vehicle $92.7 $295.0 $83.7 $86.2 $49.6 $75.5 $295.5 $
Slide 12: 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 13: ADESA Metrics - Quarter
ADESA Metrics - Quarter 1Q21 4Q20 3Q20 2Q20 1Q20 4Q19 3Q19 2Q19 Revenue1 $515.8 $464.2 $526.7 $362.2 $567.0 $583.3 $613.6 $632.4 On-premise vehicles sold 349 328 403 312 468 502 527 553 Off-premise vehicles sold 404 353 468 336 394 385 431 441 Total vehicles sold 753 681 871 648 862 887 958 994 Auct
Slide 14: 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 $2,014.8
Slide 15: AFC Metrics - Quarter
AFC Metrics - Quarter 1Q21 4Q20 3Q20 2Q20 1Q20 4Q19 3Q19 2Q19 Revenue $65.8 $65.4 $66.9 $56.8 $78.5 $88.0 $88.3 $86.7 Loan Transaction Units (LTU) 372 327 324 420 448 443 442 437 Revenue per Loan Transaction, Excluding “Warranty Contract $177 $186 $179 $115 $155 $178 $180 $178 Revenue” Ending Manage
Slide 16: 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 17: AFC Provision for Credit Losses - Quarterly
AFC Provision for Credit Losses - Quarterly 1Q21 4Q20 3Q20 2Q20 1Q20 4Q19 3Q19 2Q19 Ending Managed $1,984.4 $1,911.0 $1,744.8 $1,548.3 $1,954.8 $2,115.2 $2,110.4 $2,070.1 Receivables Average Managed $1,947.7 $1,827.9 $1,646.6 $1,751.6 $2,035.0 $2,112.8 $2,090.3 $2,029.6 Receivables Provision for Cre
Slide 18: Appendix
AUCTION SERVICES. APPENDIX
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit), depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items of income and expense and expected incremental revenue and cost savings as
Slide 20: Q1 2021 Adjusted EBITDA Reconciliation
Q1 2021 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended March 31, 2021 ADESA AFC Consolidated Net income (loss) ($5.8) $56.7 $50.9 Add back: Income taxes 4.1 19.5 23.6 Interest expense, net of interest income 21.4 9.3 30.7 Depreciation and amortization 44.6 2.4 47.0 Intercompany in
Slide 21: Q1 2020 Adjusted EBITDA Reconciliation
Q1 2020 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended March 31, 2020 ADESA AFC Consolidated Net income (loss) ($18.6) $21.4 $2.8 Add back: Income taxes (5.2) 7.2 2.0 Interest expense, net of interest income 23.7 13.5 37.2 Depreciation and amortization 44.4 3.3 47.7 Intercompany i
Slide 22: Operating Adjusted Net Income per Share Reconciliation
Operating Adjusted Net Income per Share Reconciliation ($ in millions, except per share amounts), (unaudited) Three Months ended March 31, 2021 2020 Net income (1) $50.9 $2.8 Acquired amortization expense 15.6 14.3 Contingent consideration adjustment 11.2 - Income taxes (2) (4.9) (6.0) Operating adj