Slide 1: Third Quarter 2023 Earnings Slides
Third Quarter 2023 Earnings Slides // November 1, 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) (unaudited) Low High Income (loss) from continuing operations ($172) ($158) Add back: Income taxes 2 9 Interest expense, net of interest income 153 151 Depreciation and amortization 102 101 EBITDA $85 $103 Total addbacks/(deductions
Slide 4: Third Quarter & Year-to-Date Results
Third Quarter & Year-to-Date Results Q3 | 2023 4
Slide 5: OPENLANE Q3 & YTD 2023 Highlights
OPENLANE Q3 & YTD 2023 Highlights* ($ in millions, except per share amounts) OPENLANE Q3 2023 Q3 2022 YTD 2023 YTD 2022 Total operating revenues from continuing operations $416.3 $393.0 $1,253.8 $1,146.6 Gross profit** $200.3 $183.4 $591.0 $514.3 % of revenue** 48.1% 46.7% 47.1% 44.9% SG&A $107.4 $1
Slide 6: Marketplace Q3 & YTD 2023 Highlights
Marketplace Q3 & YTD 2023 Highlights* ($ in millions, except RPU) Marketplace Q3 2023 Q3 2022 YTD 2023 YTD 2022 Auction fees $102.1 $88.9 $305.3 $289.5 Service revenue $153.9 $159.2 $475.2 $444.0 Purchased vehicle sales $60.6 $45.8 $176.5 $137.9 Total Marketplace revenue from continuing operations $
Slide 7: Finance Q3 & YTD 2023 Highlights
Finance Q3 & YTD 2023 Highlights* ($ in millions, except for revenue per loan transaction) Finance Q3 2023 Q3 2022 YTD 2023 YTD 2022 Interest income $63.0 $53.4 $185.5 $143.1 Fee income $45.6 $44.3 $137.3 $127.2 Other revenue $2.7 $2.9 $9.8 $7.7 Provision for credit losses ($11.6) ($1.5) ($35.8) ($2
Slide 8: September 30, 2023 Leverage
September 30, 2023 Leverage (US$ in millions) Balance Maturity Revolving Credit Facility (Adjusted Term SOFR + 2.25%) $23 2028 Senior Notes (Fixed 5.125%) 210 2025 Other 19 Total 252 Less: Cash and cash equivalents 110 Net Debt 142 Net Debt Ratio 1 0.5 Corporate Credit Ratings: S&P B, Moodys B1 1 Wh
Slide 9: Historical Data
Historical Data Q3 | 2023 9
Slide 10: Marketplace Metrics
Marketplace Metrics (Volumes in thousands) 3Q23 2Q23 1Q23 2022 4Q22 3Q22 2Q22 1Q22 Revenue1 ($M) $316.6 $319.4 $321.0 $1,143.5 $272.1 $293.9 $292.3 $285.2 Commercial vehicles sold 180 180 167 661 151 159 177 174 Dealer consignment 159 164 163 636 138 155 166 177 vehicles sold Total vehicles sold 339
Slide 11: Finance Metrics
Finance Metrics ($ in millions, except for revenue per loan transaction; LTUs in thousands) 3Q23 2Q23 1Q23 2022 4Q22 3Q22 2Q22 1Q22 Interest income $63.0 $61.9 $60.6 $202.8 $59.7 $53.4 $46.5 $43.2 Fee income $45.6 $44.1 $47.6 $171.9 $44.7 $44.3 $42.7 $40.2 Other revenue $2.7 $3.7 $3.4 $11.0 $3.3 $2.
Slide 12: Appendix
APPENDIX Q3 | 2023 12
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit), depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items of income and expense and expected incremental revenue and cost savings as
Slide 14: Q3 2023 Adjusted EBITDA Reconciliation
Q3 2023 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended September 30, 2023 Marketplace Finance Consolidated Income (loss) from continuing operations ($19.3) $32.0 $12.7 Add back: Income taxes 2.0 10.7 12.7 Interest expense, net of interest income 4.3 34.2 38.5 Depreciation and amor
Slide 15: Q3 2022 Adjusted EBITDA Reconciliation
Q3 2022 Adjusted EBITDA Reconciliation ($ in millions) Three Months ended September 30, 2022 Marketplace Finance Consolidated Income (loss) from continuing operations ($35.8) $36.3 $0.5 Add back: Income taxes (5.6) 12.3 6.7 Interest expense, net of interest income 8.6 22.3 30.9 Depreciation and amor
Slide 16: YTD 2023 Adjusted EBITDA Reconciliation
YTD 2023 Adjusted EBITDA Reconciliation ($ in millions) Nine Months ended September 30, 2023 Marketplace Finance Consolidated Income (loss) from continuing operations ($259.8) $91.4 ($168.4) Add back: Income taxes (37.9) 38.6 0.7 Interest expense, net of interest income 16.8 96.6 113.4 Depreciation
Slide 17: YTD 2022 Adjusted EBITDA Reconciliation
YTD 2022 Adjusted EBITDA Reconciliation ($ in millions) Nine Months ended September 30, 2022 Marketplace Finance Consolidated Income (loss) from continuing operations ($111.5) $98.2 ($13.3) Add back: Income taxes (40.9) 33.0 (7.9) Interest expense, net of interest income 30.8 50.8 81.6 Depreciation
Slide 18: Operating Adjusted Net Income (Loss) per Share Reconciliation
Operating Adjusted Net Income (Loss) per Share Reconciliation ($ in millions, except per share amounts), (unaudited) Three Months ended Nine Months ended September 30, September 30, 2023 2022 2023 2022 Net income (loss) from continuing operations (1) $12.7 $0.5 ($168.4) ($13.3) Acquired amortization