For Immediate Release
Vice President and Treasurer
KAR Auction Services, Inc. Reports Preliminary First Quarter 2011 Results
Carmel, Ind. – In order to facilitate its previously announced debt refinancing, KAR Auction Services, Inc. (NYSE: KAR) today reported preliminary financial results for the quarter ended March 31, 2011. Based on preliminary financial results for the first quarter of 2011, the company expects to report 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 is expected to be $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 is expected to be $39.8 million as compared with net income of $8.1 million in the first quarter of 2010. At March 31, 2011, the Company’s consolidated net leverage ratio is expected to be 3.5x based on Adjusted EBITDA of $482.4 million for the last twelve months ended March 31, 2011, and available cash of $186.2 million at March 31, 2011.
1st Quarter 2011 Earnings and Conference Call Information
As previously announced, KAR Auction Services, Inc. will be releasing its first quarter 2011 earnings and supplemental information on May 3, 2011, and will be hosting an earnings conference call and web cast on Wednesday, May 4, 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.
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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