•
Dec 31, 2022

OPENLANE Q4 2022 Earnings Report

Reported an increase in total revenue and gross profit, completed cost actions, consolidated U.S. dealer-to-dealer marketplaces, migrated European marketplace technology, and repaid corporate debt while repurchasing common stock.

Key Takeaways

KAR Auction Services, Inc. reported a 4% increase in total revenue, reaching $372.8 million for Q4 2022. The company's income from continuing operations was $41.9 million, or $0.21 per diluted share. The company focused on cost management and growth, positioning itself to capture future opportunities.

Total revenue increased by 4% compared to Q4 2021.

Income from continuing operations was $41.9 million, or $0.21 per diluted share.

Operating adjusted net income from continuing operations was $47.6 million, or $0.33 per diluted share.

Marketplace revenue, excluding purchased vehicle sales, increased slightly.

Total Revenue
$373M
Previous year: $549M
-32.1%
EPS
$0.33
Previous year: $0.11
+200.0%
Adjusted EBITDA
$56.5M
Previous year: $97.9M
-42.3%
Gross Profit
$171M
Previous year: $297
+57508317.5%
Cash and Equivalents
$226M
Previous year: $190M
+18.8%
Total Assets
$5.12B
Previous year: $7.42B
-31.0%

OPENLANE

OPENLANE

Forward Guidance

The company provided guidance for the full year 2023.

Positive Outlook

  • Income from continuing operations (in millions) $33 - $48
  • Adjusted EBITDA (in millions) $250 - $270
  • Operating adjusted net income from continuing operations per share - diluted $0.37 - $0.47

Challenges Ahead

  • Income (loss) from continuing operations per share - diluted *($0.08) - $0.02