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Mar 31, 2020

OPENLANE Q1 2020 Earnings Report

KAR Auction Services reported a decrease in revenue and net income due to the impact of the COVID-19 pandemic.

Key Takeaways

KAR Auction Services, Inc. reported a decrease in revenue by 6% to $645.5 million compared to Q1 2019. Net income decreased significantly by 82% to $2.8 million, and Adjusted EBITDA decreased by 28% to $88.6 million, primarily due to the impact of the COVID-19 pandemic.

Revenue decreased by 6% compared to the first quarter of 2019.

Net income from continuing operations decreased by 82%.

Adjusted EBITDA decreased by 28% compared to the same period last year.

Company operations were significantly impacted by the COVID-19 pandemic, leading to modified auction processes and temporary suspensions of physical sales.

Total Revenue
$646M
Previous year: $1.05B
-38.3%
EPS
$0.09
Previous year: $0.7
-87.1%
Adjusted EBITDA
$88.6M
Previous year: $123M
-27.9%
Gross Profit
$251M
Previous year: $435M
-42.3%
Cash and Equivalents
$293M
Previous year: $266M
+10.4%
Total Assets
$6B
Previous year: $8.32B
-27.9%

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Forward Guidance

The company has withdrawn its 2020 outlook and financial guidance previously provided on February 18, 2020 given the uncertainty of the business climate as impacted by COVID-19 and the unpredictable timeline of market recovery.