Slide 1: Q4 2022 & Annual Earnings Slides
Q4 2022 & Annual Earnings Slides February 21, 2023
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: 2023 Guidance
2023 Guidance 2023 GUIDANCE (in millions, except per share amounts) Low High Income from continuing operations $33 $48 Add back: Income taxes 16 23 Interest expense, net of interest income 170 180 Depreciation and amortization 95 100 EBITDA $314 $351 Total deductions, net (64) (81) Adjusted EBITDA $
Slide 4: Fourth Quarter & Year-to-Date Results
F o u r t h Q u a r t e r & Ye a r - t o - D a t e Results 4
Slide 5: KAR 2022 Highlights
KAR 2022 Highlights* ($ in millions, except per share amounts) KAR Q4 2022 Q4 2021 YTD 2022 YTD 2021 Total operating revenues from continuing operations $372.8 $357.7 $1,519.4 $1,450.6 Gross profit** $170.8 $163.5 $685.1 $658.1 % of revenue** 45.8% 45.7% 45.1% 45.4% SG&A $93.0 $102.2 $445.1 $420.7 O
Slide 6: Marketplace 2022 Highlights
Marketplace 2022 Highlights* ($ in millions, except RPU) Marketplace Q4 2022 Q4 2021 YTD 2022 YTD 2021 Auction fees $80.8 $100.8 $370.3 $399.2 Service revenue $146.3 $125.8 $590.3 $541.3 Purchased vehicle sales $45.0 $51.9 $182.9 $220.9 Total Marketplace revenue from continuing operations $272.1 $27
Slide 7: Finance 2022 Highlights
Finance 2022 Highlights* ($ in millions, except for revenue per loan transaction) Finance Q4 2022 Q4 2021 YTD 2022 YTD 2021 Interest income $59.7 $39.7 $202.8 $139.7 Fee income $44.7 $36.4 $171.9 $144.4 Other revenue $3.3 $2.2 $11.0 $8.6 Net recovery (provision) for credit losses ($7.0) $0.9 ($9.8)
Slide 8: December 31, 2022 Leverage
December 31, 2022 Leverage (US$ in millions) Balance Maturity Term Loan B-6 (Adjusted LIBOR + 2.25%) $- 2026 Revolving Credit Facility (Adjusted LIBOR + 1.75%) 145 2024 Senior Notes (Fixed 5.125%) 350 2025 Finance Leases & Other 7 Total 502 Less: Available Cash* 180 Net Debt 322 Senior Secured Net L
Slide 9: Historical Data
AUCTION SERVICES. HISTORICAL DATA
Slide 10: 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: Marketplace Metrics
Marketplace Metrics 2022 4Q22 3Q22 2Q22 1Q22 2021 4Q21 3Q21 Revenue1 $1,143.5 $272.1 $293.9 $292.3 $285.2 $1,161.4 $278.5 $271.5 Commercial vehicles sold 661 151 159 177 174 948 162 192 Dealer consignment 636 138 155 166 177 651 180 165 vehicles sold Total vehicles sold 1,297 289 314 343 351 1,599 3
Slide 17: Finance Metrics
Finance Metrics 2022 4Q22 3Q22 2Q22 1Q22 2021 4Q21 3Q21 Interest income $202.8 $59.7 $53.4 $46.5 $43.2 $139.7 $39.7 $35.4 Fee income $171.9 $44.7 $44.3 $42.7 $40.2 $144.4 $36.4 $35.8 Other revenue $11.0 $3.3 $2.9 $2.6 $2.2 $8.6 $2.2 $2.2 Net recovery (provision) for ($9.8) ($7.0) ($1.5) $0.1 ($1.4)
Slide 18: Appendix
AUCTION SERVICES. APPENDIX
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit), depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items of income and expense and expected incremental revenue and cost savings as
Slide 20: 2020 Adjusted EBITDA Reconciliation
2020 Adjusted EBITDA Reconciliation ($ in millions) Year ended December 31, 2020 Marketplace Finance Consolidated Income (loss) from continuing operations ($133.2) $79.6 ($53.6) Add back: Income taxes (33.1) 21.9 (11.2) Interest expense, net of interest income 87.6 39.0 126.6 Depreciation and amorti
Slide 21: Q1 2021 Adjusted EBITDA Reconciliation
Q1 2021 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended March 31, 2021 Marketplace Finance Consolidated Income (loss) from continuing operations ($30.5) $56.7 $26.2 Add back: Income taxes 5.0 19.5 24.5 Interest expense, net of interest income 21.3 9.3 30.6 Depreciation and amortiza
Slide 22: Q2 2021 Adjusted EBITDA Reconciliation
Q2 2021 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended June 30, 2021 Marketplace Finance Consolidated Income (loss) from continuing operations ($32.0) $16.7 ($15.3) Add back: Income taxes (3.3) 5.7 2.4 Interest expense, net of interest income 21.4 9.4 30.8 Depreciation and amortiz
Slide 23: Q3 2021 Adjusted EBITDA Reconciliation
Q3 2021 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended September 30, 2021 Marketplace Finance Consolidated Income (loss) from continuing operations ($49.9) $23.0 ($26.9) Add back: Income taxes 3.4 6.9 10.3 Interest expense, net of interest income 21.4 10.3 31.7 Depreciation and am
Slide 24: Q4 2021 Adjusted EBITDA Reconciliation
Q4 2021 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended December 31, 2021 Marketplace Finance Consolidated Income (loss) from continuing operations ($13.8) $29.0 $15.2 Add back: Income taxes (31.5) 9.4 (22.1) Interest expense, net of interest income 21.2 10.5 31.7 Depreciation and
Slide 25: 2021 Adjusted EBITDA Reconciliation
2021 Adjusted EBITDA Reconciliation ($ in millions) Year ended December 31, 2021 Marketplace Finance Consolidated Income (loss) from continuing operations ($126.2) $125.4 ($0.8) Add back: Income taxes (26.4) 41.5 15.1 Interest expense, net of interest income 85.3 39.5 124.8 Depreciation and amortiza
Slide 26: Q1 2022 Adjusted EBITDA Reconciliation
Q1 2022 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended March 31, 2022 Marketplace Finance Consolidated Income (loss) from continuing operations ($39.4) $31.0 ($8.4) Add back: Income taxes (15.1) 10.4 (4.7) Interest expense, net of interest income 13.2 12.3 25.5 Depreciation and am
Slide 27: Q2 2022 Adjusted EBITDA Reconciliation
Q2 2022 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended June 30, 2022 Marketplace Finance Consolidated Income (loss) from continuing operations ($36.3) $30.9 ($5.4) Add back: Income taxes (20.2) 10.3 (9.9) Interest expense, net of interest income 9.0 16.2 25.2 Depreciation and amor
Slide 28: Q3 2022 Adjusted EBITDA Reconciliation
Q3 2022 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended September 30, 2022 Marketplace Finance Consolidated Income (loss) from continuing operations ($35.8) $36.3 $0.5 Add back: Income taxes (5.6) 12.3 6.7 Interest expense, net of interest income 8.6 22.3 30.9 Depreciation and amor
Slide 29: Q4 2022 Adjusted EBITDA Reconciliation
Q4 2022 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended December 31, 2022 Marketplace Finance Consolidated Income (loss) from continuing operations $5.8 $36.1 $41.9 Add back: Income taxes 4.5 13.4 17.9 Interest expense, net of interest income 6.8 28.1 34.9 Depreciation and amortiza
Slide 30: YTD 2022 Adjusted EBITDA Reconciliation
YTD 2022 Adjusted EBITDA Reconciliation ($ in millions) Year ended December 31, 2022 Marketplace Finance Consolidated Income (loss) from continuing operations ($105.7) $134.3 $28.6 Add back: Income taxes (36.4) 46.4 10.0 Interest expense, net of interest income 37.6 78.9 116.5 Depreciation and amort
Slide 31: Operating Adjusted Net Income (Loss) per Share Reconciliation
Operating Adjusted Net Income (Loss) per Share Reconciliation ($ in millions, except per share amounts), (unaudited) Three Months ended Year ended December 31, December 31, 2022 2021 2022 2021 Net income (loss) from continuing operations (1) $41.9 $15.2 $28.6 ($0.8) Acquired amortization expense 8.0