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Mar 31, 2022

OPENLANE Q1 2022 Earnings Report

KAR Auction Services reported first quarter financial results.

Key Takeaways

KAR Auction Services reported total revenue of $369.4 million for the first quarter of 2022, a slight decrease compared to the previous year. The company experienced a net loss from continuing operations of $8.4 million, or $(0.16) per diluted share, and adjusted EBITDA from continuing operations was $49.1 million. The company is focusing on becoming a premier digital marketplace for wholesale used vehicles after the sale of its ADESA U.S. physical auction business to Carvana.

KAR expects to close the transaction selling its ADESA U.S. physical auction business to Carvana, with the proceeds expected to reduce debt

KAR reported consistent revenue from continuing operations

Gross profit per vehicle sold increased year-over-year to $255

Continued growth in digital dealer-to-dealer volumes were driven by industry-leading platforms, BacklotCars and TradeRev

Total Revenue
$369M
Previous year: $582M
-36.5%
EPS
-$0.02
Previous year: $0.45
-104.4%
Adjusted EBITDA
$49.1M
Previous year: $123M
-60.1%
Gross Profit
$159M
Previous year: $251M
-36.9%
Cash and Equivalents
$134M
Previous year: $759M
-82.3%
Total Assets
$7.79B
Previous year: $7.16B
+8.8%

OPENLANE

OPENLANE

Forward Guidance

KAR expects the new simplified KAR to generate $265 million of Adjusted EBITDA in 2022.