Openlane, Inc. · NYSE:OPLN
Openlane — KAR Auction Services — Q1 2016 Earnings Presentation
12 slides from Openlane's earnings presentation, May 3, 2016
Slide 1: Q1 2016 Earnings Slides
Q1 2016 Earnings Slides May 3, 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: First Quarter 2016 Highlights Summary
First Quarter 2016 Highlights Summary Revenue: +18% Adjusted EBITDA: +17% Operating Adjusted EPS: +17% ADESA Revenue: +22% Volume: +17% Physical volume: +12% Online only volume: +33% Adjusted EBITDA: +35% IAA Revenue: +13% Volume: +14% AFC Revenue: +11% Loan transaction units
Slide 4: KAR Q1 2016 Highlights
KAR Q1 2016 Highlights 4 ($ in millions, except per share amounts) KAR Q1 2016 Q1 2015 Highlights* Total operating revenues $745.0 $632.4 -$8.2M CAD currency Gross profit** $326.3 $280.3 SG&A $141.1 $121.5 +$3.7M acquired SG&A, -$1.1M CAD currency EBITDA $182.5 $160.9 -$3.1M CAD currency Adjusted EB
Slide 5: ADESA Q1 2016 Highlights
ADESA Q1 2016 Highlights 5 ($ in millions, except RPU) ADESA Q1 2016 Q1 2015 Highlights* Revenue $401.5 $328.0 +17% volume, +5% RPU (includes -$5.9M CAD currency), +$16.6M acquisitions Gross profit** $176.4 $140.9 +$5.9M acquisitions Gross profit % 43.9% 43.0% SG&A $76.6 $68.5 +$3.3M compensation ex
Slide 6: IAA Q1 2016 Highlights
IAA Q1 2016 Highlights 6 ($ in millions) IAA Q1 2016 Q1 2015 Highlights* Revenue $269.6 $238.0 +14% volume, +$13.9M HBC, -$1.9M CAD currency Gross profit** $96.1 $91.4 +$1.3M HBC Gross profit % 35.6% 38.4% SG&A $25.7 $22.1 +$0.9M HBC, +$0.7M IT/telecom expenses, +$0.4M incentive-based compensation e
Slide 7: AFC Q1 2016 Highlights
($ in millions, except for revenue per loan transaction) AFC Q1 2016 Q1 2015 Highlights* Revenue $73.9 $66.4 +10% LTUs, +13% in "Other service revenue", +1% revenue per LTU (includes -$0.4M CAD currency) Other service revenue $7.6 $6.7 Provision for credit losses ($5.5) ($3.5) Gross profit** $53.8 $
Slide 8: ADESA Incremental Operating Profit Margin Analysis
ADESA Incremental Operating Profit Margin Analysis 8 ($ in millions) Reported Impact of Acquisitions ADESA Excluding Acquisitions Q1 2016 Revenue $401.5 $16.6 $384.9 Operating profit $77.3 $1.7 $75.6 Operating profit % 19.3% 10.2% 19.6% Q1 2015 Revenue $328.0 Operating profit $52.2 Operating profit
Slide 9: Appendix
KAR ; AUCTION Appendix SERVICES.
Slide 10: EBITDA and Adjusted EBITDA definitions
EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit), depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items of income and expense and expected incremental revenue and cost savings as described in the company's
Slide 11: Q1 2016 Adjusted EBITDA Reconciliation
11 Q1 2016 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended March 31, 2016 ADESA IAA AFC Corporate Consolidated Net income (loss) $39.3 $24.9 $24.0 ($27.5) $60.7 Add back: Income taxes 23.3 14.9 14.6 (16.1) 36.7 Interest expense, net of interest income 0.1 – 7.8 20.8 28.7 Depreciati
Slide 12: Q1 2015 Adjusted EBITDA Reconciliation
12 Q1 2015 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended March 31, 2015 ADESA IAA AFC Corporate Consolidated Net income (loss) $22.5 $25.0 $21.0 ($14.0) $54.5 Add back: Income taxes 14.9 15.3 12.8 (8.4) 34.6 Interest expense, net of interest income 0.1 – 5.1 15.7 20.9 Depreciatio