For Immediate Release
Vice President and Treasurer
KAR Auction Services, Inc. Reports First Quarter 2011 Results
Carmel, Ind. – KAR Auction Services, Inc. (NYSE: KAR) today reported financial results for the quarter ended March 31, 2011. For the first quarter of 2011, the company reported revenue of $482.7 million as compared with first quarter 2010 revenue of $458.4 million, an increase of 5%. Adjusted EBITDA for the first quarter of 2011 was $127.3 million as compared with first quarter 2010 Adjusted EBITDA of $120.1 million, an increase of 6%. Net income for the first quarter of 2011 was $39.8 million, or $0.29 per diluted share, as compared with net income of $8.1 million, or $0.06 per diluted share, in the first quarter of 2010. As shown in the attached reconciliation table, adjusted net income per share for the first quarter of 2011 was $0.41 versus adjusted net income per share of $0.29 for the first quarter of 2010. During the first quarter of 2011, the company’s effective tax rate benefited from the reversal of $14.4 million in tax reserves. Excluding the impact of this item, the company’s effective tax rate for the quarter ended March 31, 2011, would have been 37.9%.
KAR Auction Services, Inc. continues to expect 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. Additionally, the company continues to expect its 2011 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 Wednesday, May 4th, 2011, 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 1-888-339-3543 and entering participant passcode 2510093, while the live web cast will be available at the investor relations section of www.karauctionservices.com. Supplemental financial information for KAR Auction Services’ first quarter 2011 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 2510093. 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 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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