Slide 1: Q2 2016 & Year-to-Date Earnings Slides
Q2 2016 & Year-to-Date Earnings Slides August 2, 2016
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 subject to certain risks, trends, and uncertainties that could cause actual results to differ material
Slide 3: Second Quarter 2016 Highlights
Second Quarter 2016 Highlights Summary Revenue: +17% Adjusted EBITDA: +16% Operating Adjusted EPS: +8% ADESA Revenue: +26% Volume: +18% Physical volume: +15% (+3% excluding acquisitions) Online only volume: +29% Dealer consignment volume: +9% (-3% excluding acquisitions) Adjusted E
Slide 4: KAR Q2 2016 Highlights
KAR Q2 2016 Highlights 4 ($ in millions, except per share amounts) KAR Q2 2016 Q2 2015 Highlights* Total operating revenues $771.8 $658.3 -$4.3M CAD currency Gross profit** $340.9 $291.8 SG&A $146.9 $123.5 +$8.5M acquired SG&A, -$0.6M CAD currency EBITDA $194.2 $167.9 -$1.8M CAD currency Adjusted EB
Slide 5: ADESA Q2 2016 Highlights
ADESA Q2 2016 Highlights 5 ($ in millions, except RPU) ADESA Q2 2016 Q2 2015 Highlights* Revenue $434.1 $345.0 +18% volume, +6% RPU (includes -$3.1M CAD currency), +$41.4M acquisitions Gross profit** $191.6 $153.2 +$17.1M acquisitions Gross profit % 44.1% 44.4% SG&A $80.6 $67.5 +7.9M acquired SG&A,
Slide 6: IAA Q2 2016 Highlights
IAA Q2 2016 Highlights 6 ($ in millions) IAA Q2 2016 Q2 2015 Highlights* Revenue $264.8 $248.6 +6% volume, +$9.1M HBC, -$1.0M CAD currency Gross profit** $97.5 $93.5 +$0.7M HBC Gross profit % 36.8% 37.6% SG&A $26.5 $24.9 +$0.6M HBC, +$0.6M bad debt, +$0.6M employee education and training, and -$0.5M
Slide 7: AFC Q2 2016 Highlights
($ in millions, except for revenue per loan transaction) AFC Q2 2016 Q2 2015 Highlights* Revenue $72.9 $64.7 +10% LTUs, +16% in "Other service revenue", +2% revenue per LTU (includes -$0.2M CAD currency) Other service revenue $8.1 $7.0 Provision for credit losses ($5.5) ($4.3) Gross profit** $51.8 $
Slide 8: ADESA Incremental Operating Profit Margin Analysis – Q2 2016
ADESA Incremental Operating Profit Margin Analysis – Q2 2016 8 ($ in millions) Reported Impact of Acquisitions ADESA Excluding Acquisitions Q2 2016 Revenue $434.1 $41.4 $392.7 Operating profit $86.2 $5.9 $80.3 Operating profit % 19.9% 14.3% 20.4% Q2 2015 Revenue $345.0 Operating profit $64.4 Operati
Slide 9: Year-to-Date Slides
KAR Year-to-Date Slides AUCTION SERVICES.
Slide 10: KAR Six Months Ended June 30, 2016 Highlights
KAR Six Months Ended June 30, 2016 Highlights 10 ($ in millions, except per share amounts) KAR YTD 2016 YTD 2015 Highlights* Total operating revenues $1,516.8 $1,290.7 -$12.6M CAD currency Gross profit** $667.2 $572.1 SG&A $288.0 $245.0 +$12.2M acquired SG&A, -$1.7M CAD currency EBITDA $376.7 $328.8
Slide 11: ADESA Six Months Ended June 30, 2016 Highlights
ADESA Six Months Ended June 30, 2016 Highlights 11 ($ in millions, except RPU) ADESA YTD 2016 YTD 2015 Highlights* Revenue $835.6 $673.0 +18% volume, +6% RPU (includes -$9.1M CAD currency), +$58.1M acquisitions Gross profit** $368.0 $294.1 +$22.9M acquisitions Gross profit % 44.0% 43.7% SG&A $157.2
Slide 12: IAA Six Months Ended June 30, 2016 Highlights
IAA Six Months Ended June 30, 2016 Highlights 12 ($ in millions) IAA YTD 2016 YTD 2015 Highlights* Revenue $534.4 $486.6 +10% volume, +$23.0M HBC, -$2.9M CAD currency Gross profit** $193.6 $184.9 +$2.0M HBC Gross profit % 36.2% 38.0% SG&A $52.2 $47.0 +$1.5M HBC, +$0.9M bad debt, +$0.7M stock-based c
Slide 13: AFC Six Months Ended June 30, 2016 Highlights
($ in millions, except for revenue per loan transaction) AFC YTD 2016 YTD 2015 Highlights* Revenue $146.8 $131.1 +10% LTUs, +15% in "Other service revenue", +1% revenue per LTU (includes -$0.6M CAD currency) Other service revenue $15.7 $13.7 Provision for credit losses ($11.0) ($7.8) Gross profit**
Slide 14: ADESA Incremental Operating Profit Margin Analysis – Six Months 2016
ADESA Incremental Operating Profit Margin Analysis – Six Months Ended June 30, 2016 14 ($ in millions) Reported Impact of Acquisitions ADESA Excluding Acquisitions YTD 2016 Revenue $835.6 $58.1 $777.5 Operating profit $163.5 $7.6 $155.9 Operating profit % 19.6% 13.1% 20.1% YTD 2015 Revenue $673.0 Op
Slide 15: Appendix
KAR ; AUCTION Appendix SERVICES.
Slide 16: EBITDA and Adjusted EBITDA definitions
EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit), depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items of income and expense and expected incremental revenue and cost savings as described in the company's
Slide 17: Q2 2016 Adjusted EBITDA Reconciliation
17 Q2 2016 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended June 30, 2016 ADESA IAA AFC Corporate Consolidated Net income (loss) $46.2 $25.2 $23.0 ($32.6) $61.8 Add back: Income taxes 27.1 15.1 14.0 (18.5) 37.7 Interest expense, net of interest income – – 8.2 27.5 35.7 Depreciation
Slide 18: Q2 2015 Adjusted EBITDA Reconciliation
18 Q2 2015 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended June 30, 2015 ADESA IAA AFC Corporate Consolidated Net income (loss) $32.0 $24.6 $18.7 ($15.8) $59.5 Add back: Income taxes 17.5 14.6 11.5 (8.8) 34.8 Interest expense, net of interest income 0.2 – 5.5 16.1 21.8 Depreciation
Slide 19: YTD 2016 Adjusted EBITDA Reconciliation
19 YTD 2016 Adjusted EBITDA Reconciliation ($ in millions) Six Months ended June 30, 2016 ADESA IAA AFC Corporate Consolidated Net income (loss) $85.5 $50.1 $47.0 ($60.1) $122.5 Add back: Income taxes 50.4 30.0 28.6 (34.6) 74.4 Interest expense, net of interest income 0.1 – 16.0 48.3 64.4 Depreciati
Slide 20: YTD 2015 Adjusted EBITDA Reconciliation
20 YTD 2015 Adjusted EBITDA Reconciliation ($ in millions) Six Months ended June 30, 2015 ADESA IAA AFC Corporate Consolidated Net income (loss) $54.5 $49.6 $39.7 ($29.8) $114.0 Add back: Income taxes 32.4 29.9 24.3 (17.2) 69.4 Interest expense, net of interest income 0.3 – 10.6 31.8 42.7 Depreciati