Slide 1: KAR Auction Services, Inc. Q3 2015 Earnings Slides
KAR Auction Services, Inc. Q3 2015 Earnings Slides November 4, 2015
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: Third Quarter and YTD 2015 Highlights
Third Quarter and YTD 2015 Highlights Summary • 13% revenue growth, 9% Adjusted EBITDA growth and 4% growth in Adjusted Net Income • For the first nine months of year, returned $342.4 million to shareholders via dividend and common stock repurchases, retiring approximately 5.3 million shares • 5% gr
Slide 4: KAR Q3 2015 Highlights
KAR Q3 2015 Highlights (in millions, except per share amounts) KAR Q3 2015 Q3 2014 Highlights* Total operating revenues $ 666.7 $ 589.1 -$15.2M CAD currency Gross profit** $ 288.6 $ 261.1 SG&A $ 128.5 $ 116.5 +$3.8M acquired SG&A, +1.4M professional fees, -$2.4M CAD currency EBITDA $ 160.3 $ 145.0 -
Slide 5: ADESA Q3 2015 Highlights
ADESA Q3 2015 Highlights ($ in millions except RPU) ADESA Q3 2015 Q3 2014 Highlights* +15% volume, -1% RPU (includes -$11.3M CAD currency), Revenue $ 351.4 $ 308.1 +$15.0M acquisitions Gross profit** $ 152.2 $ 133.5 +$5.2M acquisitions Gross profit % 43.3% 43.3% SG&A $ 71.3 $ 64.1 +$3.0M acquired SG
Slide 6: IAA Q3 2015 Highlights
IAA Q3 2015 Highlights ($ in millions) IAA Q3 2015 Q3 2014 Highlights* Revenue $ 246.2 $ 217.5 +16% volume, -3% RPU (includes -$3.1M CAD currency) +$9.8M HBC Gross profit** $ 87.3 $ 82.1 +$0.7M HBC Gross profit % 35.5% 37.7% SG&A $ 25.6 $ 23.5 +$1.0M telecom expenses, +$0.9M compensation expense, +$
Slide 7: AFC Q3 2015 Highlights
AFC Q3 2015 Highlights ($ in millions except for revenue per loan transaction) AFC Q3 2015 Q3 2014 Highlights* Revenue $ 69.1 $ 63.5 +13% LTUs, +6% in "Other service revenue", -3% revenue per LTU ( includes -$0.8M CAD currency) Other service revenue $ 7.1 $ 6.7 Provision for credit losses $ (2.7) $
Slide 8: ADESA Incremental Operating Profit Margin Analysis
ADESA Incremental Operating Profit Margin Analysis ($ in millions) ADESA Impact of Excluding Reported Acquisitions Acquisitions Q3 2015 Revenue $ 351.4 $ 15.0 $ 336.4 Operating Profit $ 58.6 $ 0.5 $ 58.1 Operating Profit % 16.7% 3.3% 17.3% Q3 2014 Revenue $ 308.1 Operating Profit $ 49.7 Operating Pr
Slide 9: Appendix
KAR AUCTION SERVICES. AUCTION SERVICES.
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: Q3 2014 Adjusted EBITDA Reconciliation
Q3 2014 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended September 30, 2014 ADESA IAA AFC Corporate Consolidated Net income (loss) $22.3 $19.1 $20.0 ($13.9) $47.5 Add back: Income taxes 13.4 11.0 12.1 (8.1) 28.4 Interest expense, net of interest income 0.1 – 4.7 15.4 20.2 Depreciati
Slide 12: Q3 2015 Adjusted EBITDA Reconciliation
Q3 2015 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended September 30, 2015 ADESA IAA AFC Corporate Consolidated Net income (loss) $29.6 $19.9 $22.1 ($19.3) $52.3 Add back: Income taxes 16.0 11.4 13.6 (11.4) 29.6 Interest expense, net of interest income 0.1 – 6.6 17.6 24.3 Depreciat