OPENLANE Q2 2022 Earnings Report
Key Takeaways
KAR Auction Services, Inc. reported a 2% increase in total revenue, reaching $384.2 million. The company's performance was impacted by reductions in conversion rates across its marketplaces. They are updating their previous guidance for Adjusted EBITDA to a range of $245 to $265 million.
KAR completed the sale of its ADESA U.S. physical auction business to Carvana and is using the proceeds to reduce debt
The company has over $800 million of available cash as of June 30, 2022
Repurchased $82 million of common stock in the second quarter
Marketplace gross profit per vehicle sold increased 11% to $282
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Forward Guidance
Looking ahead, KAR remains highly focused on cost management, pricing and platform consolidation, which they expect to contribute to improved second half results and help position them for future growth. However, if the conversion pressures experienced in the second quarter do not improve, they would expect full year 2022 Adjusted EBITDA may be as low as $245 million as sellers and buyers look for price equilibrium across our marketplaces. Accordingly, they are updating their previous guidance for Adjusted EBITDA to a range of $245 to $265 million.