Slide 1: Third Quarter 2022 Earnings Slides
Third Quarter 2022 Earnings Slides November 1, 2022
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: Third Quarter & Year-to-Date Results
T h i r d Q u a r t e r & Ye a r - t o - D a t e Results 3
Slide 4: KAR Q3 & YTD 2022 Highlights
KAR Q3 & YTD 2022 Highlights* ($ in millions, except per share amounts) KAR Q3 2022 Q3 2021 YTD 2022 YTD 2021 Total operating revenues from continuing operations $393.0 $347.1 $1,146.6 $1,092.9 Gross profit** $183.4 $161.4 $514.3 $494.6 % of revenue** 46.7% 46.5% 44.9% 45.3% SG&A $109.1 $104.8 $352.
Slide 5: Marketplace Q3 & YTD 2022 Highlights
Marketplace Q3 & YTD 2022 Highlights* ($ in millions, except RPU) Marketplace Q3 2022 Q3 2021 YTD 2022 YTD 2021 Auction fees $88.9 $89.6 $289.5 $298.4 Service revenue $159.2 $128.2 $444.0 $415.5 Purchased vehicle sales $45.8 $53.7 $137.9 $169.0 Total Marketplace revenue from continuing operations $2
Slide 6: Finance Q3 & YTD 2022 Highlights
Finance Q3 & YTD 2022 Highlights* ($ in millions, except for revenue per loan transaction) Finance Q3 2022 Q3 2021 YTD 2022 YTD 2021 Interest income $53.4 $35.4 $143.1 $100.0 Fee income $44.3 $35.8 $127.2 $108.0 Other revenue $2.9 $2.2 $7.7 $6.4 Net recovery (provision) for credit losses ($1.5) $2.2
Slide 7: SG&A
SG&A ($ in millions) SG&A Q1 2022 Q2 2022 Q3 2022 Marketplace Segment $108.4 $110.5 $96.9 Finance Segment 10.5 13.6 12.2 Consolidated 118.9 124.1 109.1 Addbacks: Non-Cash Stock-Based Compensation (5.2) (14.5) (3.5) Other 1 (11.6) (5.4) (9.7) $102.1 $104.2 $95.9 1 Other comprises of expenses related
Slide 8: September 30, 2022 Leverage
September 30, 2022 Leverage (US$ in millions) Balance Maturity Term Loan B-6 (Adjusted LIBOR + 2.25%) $- 2026 Revolving Credit Facility (Adjusted LIBOR + 1.75%) 116 2024 Senior Notes (Fixed 5.125%) 350 2025 Finance Leases & Other 21 Total 487 Less: Available Cash* (153) Net Debt 334 Senior Secured N
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 3Q22 2Q22 1Q22 2021 4Q21 3Q21 2Q21 1Q21 Revenue1 $293.9 $292.3 $285.2 $1,161.4 $278.5 $271.5 $307.4 $304.0 Commercial vehicles sold 159 177 174 948 162 192 274 320 Dealer consignment 155 166 177 651 180 165 168 138 vehicles sold Total vehicles sold 314 343 351 1,599 342 357 442 4
Slide 17: Finance Metrics
Finance Metrics 3Q22 2Q22 1Q22 2021 4Q21 3Q21 2Q21 1Q21 Interest income $53.4 $46.5 $43.2 $139.7 $39.7 $35.4 $33.1 $31.5 Fee income $44.3 $42.7 $40.2 $144.4 $36.4 $35.8 $35.1 $37.1 Other revenue $2.9 $2.6 $2.2 $8.6 $2.2 $2.2 $2.2 $2.0 Net recovery (provision) for ($1.5) $0.1 ($1.4) ($3.5) $0.9 $2.2
Slide 18: Appendix
AUCTION SERVICES. APPENDIX
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit), depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items of income and expense and expected incremental revenue and cost savings as
Slide 20: 2020 Adjusted EBITDA Reconciliation
2020 Adjusted EBITDA Reconciliation ($ 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 $0.5 Add back: Income taxes (5.6) 12.3 6.7 Interest expense, net of interest income 8.6 22.3 30.9 Depreciation and amor
Slide 29: YTD 2022 Adjusted EBITDA Reconciliation
YTD 2022 Adjusted EBITDA Reconciliation ($ in millions) Nine Months ended September 30, 2022 Marketplace Finance Consolidated Income (loss) from continuing operations ($111.5) $98.2 ($13.3) Add back: Income taxes (40.9) 33.0 (7.9) Interest expense, net of interest income 30.8 50.8 81.6 Depreciation
Slide 30: YTD 2021 Adjusted EBITDA Reconciliation
YTD 2021 Adjusted EBITDA Reconciliation ($ in millions) Nine Months ended September 30, 2021 Marketplace Finance Consolidated Income (loss) from continuing operations ($112.4) $96.4 ($16.0) Add back: Income taxes 5.1 32.1 37.2 Interest expense, net of interest income 64.1 29.0 93.1 Depreciation and
Slide 31: Operating Adjusted Net Income (Loss) per Share Reconciliation
Operating Adjusted Net Income (Loss) per Share Reconciliation ($ in millions, except per share amounts), (unaudited) Three Months ended Nine Months ended September 30, September 30, 2022 2021 2022 2021 Net income (loss) from continuing operations (1) $0.5 ($26.9) ($13.3) ($16.0) Acquired amortizatio