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 4585475. 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. ("ADESA"), Insurance Auto Auctions, Inc. ("IAA") and Automotive Finance Corporation ("AFC"). ADESA is a leading provider of wholesale used vehicle auctions with 67 North American locations and its subsidiary OPENLANE provides a leading Internet automotive auction platform. Insurance Auto Auctions is a leading salvage vehicle auction company with 163 sites across the United States and Canada. Automotive Finance Corporation is a leading provider of floorplan financing to independent and franchise used vehicle dealers with 104 sites across the United States and Canada. Together, KAR Auction Services provides a unique, comprehensive, end-to-end solution for our customers' remarketing needs. Visit karauctionservices.com for additional information.
Forward Looking Statements
Certain statements contained in this release 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.
KAR Auction Services, Inc.
Condensed Consolidated Statements of Income
(In millions) (Unaudited)
Three Months Ended Year Ended December 31, December 31, -------------------- -------------------- 2012 2011 2012 2011 --------- --------- --------- ---------Operating revenues ADESA Auction Services $ 262.1 $ 250.3 $ 1,053.5 $ 1,017.4 IAA Salvage Services 182.0 186.3 716.1 700.1 AFC 49.6 43.2 193.8 168.8 --------- --------- --------- ---------Total operating revenues 493.7 479.8 1,963.4 1,886.3 --------- --------- --------- ---------Operating expenses Cost of services (exclusive of depreciation and amortization) 290.4 269.0 1,087.1 1,035.2 Selling, general and administrative 99.2 106.9 419.1 389.4 Depreciation and amortization 46.8 48.3 190.2 179.8 --------- --------- --------- ---------Total operating expenses 436.4 424.2 1,696.4 1,604.4 --------- --------- --------- ---------Operating profit 57.3 55.6 267.0 281.9Interest expense 29.6 30.8 119.4 143.1Other (income) expense, net (2.4) 1.3 (4.0) (4.7)Loss on extinguishment of debt -- -- -- 53.5 --------- --------- --------- ---------Income before income taxes 30.1 23.5 151.6 90.0Income taxes 7.2 9.0 59.6 17.8 --------- --------- --------- --------- Net income $ 22.9 $ 14.5 $ 92.0 $ 72.2 ========= ========= ========= =========Net income per shareBasic $ 0.17 $ 0.11 $ 0.67 $ 0.53 ========= ========= ========= =========Diluted $ 0.16 $ 0.11 $ 0.66 $ 0.52 ========= ========= ========= =========Dividends paid per common share $ 0.19 $ -- $ 0.19 $ -- ========= ========= ========= =========
