KAR Auction Services, Inc. Reports Fourth Quarter and Full Year 2010 Results
For Immediate Release
Jonathan Peisner
Vice President and Treasurer
(317) 249-4390
jonathan.peisner@karauctionservices.com
KAR Auction Services, Inc. Reports Fourth Quarter and Full Year 2010 Results
Carmel, Ind. – KAR Auction Services, Inc. (NYSE: KAR) today reported its fourth quarter and annual financial results for the period ended December 31, 2010. For the fourth quarter of 2010, the company reported revenue of $441.3 million as compared with fourth quarter 2009 revenue of $417.9 million, an increase of 6%. Adjusted EBITDA for the fourth quarter of 2010 was $103.0 million as compared with fourth quarter 2009 Adjusted EBITDA of $99.7 million, an increase of 3%. Net income for the fourth quarter of 2010 was $7.3 million, or $0.05 per diluted share, as compared with net income of $5.3 million, or $0.05 per diluted share, in the fourth quarter of 2009. As shown in the attached reconciliation table, adjusted net income per share for the fourth quarter of 2010 was $0.20 versus adjusted net income per share of $0.15 for the fourth quarter of 2009.
For the year ended December 31, 2010, the company reported revenue of $1,815.0 million as compared with revenue of $1,729.6 million for the year ended December 31, 2009, an increase of 5%. Adjusted EBITDA for the year ended December 31, 2010, was $475.2 million as compared with Adjusted EBITDA of $425.9 million for the year ended December 31, 2009, an increase of 12%. Net income for the year ended December 31, 2010, was $69.6 million, or $0.51 per diluted share, as compared with net income of $23.2 million, or $0.21 per diluted share for the year ended December 31, 2009. As shown in the attached reconciliation table, adjusted net income per share for the year ended December 31, 2010, was $1.05 versus adjusted net income per share of $0.76 for the year ended December 31, 2009.
2011 Outlook
KAR Auction Services, Inc. expects 2011 Adjusted EBITDA of approximately
$500 million, net income per share of $0.75—$0.80 and adjusted net
income per share of $1.20—$1.25. Adjusted net income per share
represents GAAP net income per diluted share excluding excess
depreciation and amortization and stock-based compensation, both
resulting from the 2007 merger, net of taxes. In addition, in 2011, KAR
Auction Services, Inc. expects its effective tax rate to be
approximately 30% and its capital expenditures to be approximately $80
million.
Earnings Conference Call Information
KAR Auction Services, Inc. will be hosting an earnings conference call
and webcast on Thursday, February 24th, 2011, at 11 a.m. EST (10 a.m.
CST). The call will be hosted by KAR Auction Services, Inc.’s Chief
Executive Officer Jim Hallett and Executive Vice President and Chief
Financial Officer Eric Loughmiller. The conference call may be accessed
by calling 1-888-312-3051 and entering participant passcode 9499443,
while the live web cast will be available at the investor relations
section of www.karauctionservices.com. Supplemental financial
information for KAR Auction Services’ fourth quarter and full year 2010
results is available at the investor relations section of
www.karauctionservices.com under the financial postings page.
A replay of the call will be available for two weeks via telephone starting approximately 30 minutes after the completion of the call. The replay may be accessed by calling 1-888-203-1112 and entering pass code 9499443. The archive of the web cast will also be available following the call and will be available at the investor relations section of www.karauctionservices.com for a limited time.
About KAR Auction Services, Inc.
KAR Auction Services, Inc. (NYSE: KAR) is the holding company for ADESA,
Inc., a leading provider of wholesale used vehicle auctions whose
operations span North America with 70 used vehicle sites, Insurance Auto
Auctions, Inc. (“IAAI”), a leading salvage auto auction company whose
operations span North America with 159 sites and Automotive Finance
Corporation (“AFC”), a leading provider of floorplan financing to
independent and franchised used vehicle dealers with 88 sites across
North America. For further information on KAR Auction Services, Inc.,
ADESA, Inc., Insurance Auto Auctions, Inc. or Automotive Finance
Corporation, visit the company’s Web site at www.karauctionservices.com.
Forward Looking Statements
Certain statements contained in this release may include
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995 and which are subject to
certain risks, trends and uncertainties. In particular, statements made
that are not historical facts may be forward-looking statements. Words
such as “should,” “may,” “will,” “anticipates,” “expects,” “intends,”
“plans,” “believes,” “seeks,” “estimates,” and similar expressions
identify forward-looking statements. Such statements are not guarantees
of future performance and are subject to risks and uncertainties that
could cause actual results to differ materially from the results
projected, expressed or implied by these forward-looking statements.
Factors that could cause or contribute to such differences include those
matters disclosed in the Company’s Securities and Exchange Commission
filings. The Company does not undertake any obligation to update any
forward-looking statements.
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