OPENLANE Inc · Q4 2021 earnings

Briefing

KAR Auction Services, Inc. reported increased revenue and operating adjusted net income per share for 2021, driven by strong gross profit per unit and lower selling, general and administrative expenses (excluding acquisitions).

KAR Auction Services, Inc. reported a 4% increase in revenue for the fourth quarter of 2021, reaching $549.4 million. Adjusted EBITDA increased by 45% to $97.9 million, and operating adjusted net income per diluted share was $0.11, compared to a loss of $(0.01) in the same quarter of the previous year.

• Total revenue for the fourth quarter of 2021 was $549.4 million, an increase of 4% compared with $529.6 million for the fourth quarter of 2020.
• Adjusted EBITDA for the quarter ended December 31, 2021 was $97.9 million, compared with $67.5 million for the quarter ended December 31, 2020, an increase of 45%.
• Operating adjusted net income per diluted share was $0.11 for the quarter ended December 31, 2021, compared with an operating adjusted net loss per diluted share of $(0.01) for the quarter ended December 31, 2020.
• ADESA gross profit per vehicle sold increased 30% to $297 for the quarter ended December 31, 2021, compared with $229 for the quarter ended December 31, 2020.

Headline financials

Revenue & EPS history

KAR is focused on improving gross profit per unit sold and Adjusted EBITDA as a percent of revenue, and continue to take meaningful, deliberate steps to reduce our labor and selling, general and administrative costs. We believe our digital transformation strategy and leaner cost structure position us for faster growth and higher profitability as volumes return.