KAR Auction Services, Inc. Reports Second Quarter 2010 Results

For Immediate Release
Eric Loughmiller
Executive Vice President and Chief Financial Officer
(317) 249-4254
eric.loughmiller@karauctionservices.com

KAR Auction Services, Inc. Reports Second Quarter 2010 Results

Carmel, Ind. –  KAR Auction Services, Inc. (NYSE: KAR) today reported its second quarter financial results for the three months ended June 30, 2010. For the second quarter of 2010, the company reported revenue of $470.0 million as compared with second quarter 2009 revenue of $439.1 million, an increase of 7%. Adjusted EBITDA for the second quarter of 2010 was $131.0 million as compared with second quarter 2009 Adjusted EBITDA of $115.1 million, an increase of 14%. Net income for the second quarter of 2010 was $28.6 million, or $0.21 per share, as compared with net income of $12.8 million, or $0.12 per share, in the second quarter of 2009. As shown in the attached reconciliation table, adjusted net income per share for the second quarter of 2010 was $0.27 versus adjusted net income per share of $0.23 for the second quarter of 2009.

For the six months ended June 30, 2010, the company reported revenue of $928.4 million as compared with revenue of $881.6 million for the six months ended June 30, 2009, an increase of 5%. Adjusted EBITDA for the six months ended June 30, 2010, was $251.1 million as compared with Adjusted EBITDA of $212.2 million for the six months ended June 30, 2009, an increase of 18%. Net income for the six months ended June 30, 2010, was $36.7 million, or $0.27 per share, as compared with net income of $9.3 million, or $0.09 per share for the six months ended June 30, 2009. As shown in the attached reconciliation table, adjusted net income per share for the six months ended June 30, 2010, was $0.57 versus adjusted net income per share of $0.32 for the six months ended June 30, 2009.

2010 Outlook
KAR Auction Services, Inc. expects Adjusted EBITDA of approximately $470 million, net income per share of $0.40—$0.45 and adjusted net income per share of $0.92—$0.97. Adjusted net income per share represents GAAP net income per share excluding excess depreciation and amortization and stock-based compensation, both resulting from the 2007 merger, as well as the loss on extinguishment of debt, net of taxes.

Earnings Conference Call Information
KAR Auction Services, Inc. will be hosting an earnings conference call and webcast on Wednesday, August 4th, 2010, at 11 a.m. EDT (10 a.m. CDT). 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 1-888-617-5714 and entering participant passcode 8583864, while the live web cast will be available at the investor relations section of www.karauctionservices.com.

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 8583864. 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 62 used vehicle sites, Insurance Auto Auctions, Inc., (“IAAI”) a leading salvage auto auction company whose operations span North America with 158 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.

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