IAA Announces Growth in Key California Markets

Rhea-AI Summary

IAA, Inc. (NYSE: IAA) has announced significant capacity expansions in Fresno and Los Angeles, California, driven by increasing customer demand. The Santa Clarita branch has grown by over 75%, while the Fontana location has expanded by 40%. These expansions aim to enhance customer experience and meet the needs of key markets in the San Joaquin Valley and Los Angeles. IAA continues to focus on leveraging technology to connect vehicle buyers and sellers globally.

Positive

• Expansion of IAA's Santa Clarita branch by over 75%.
• 40% growth in capacity at the Fontana branch.
• Strategic investments aimed at meeting increasing customer demand.

Negative

• None.

More capacity in the Fresno and Los Angeles areas to serve growing demand

WESTCHESTER, Ill.--(BUSINESS WIRE)-- IAA, Inc. (NYSE: IAA), a leading global digital marketplace connecting vehicle buyers and sellers, announces capacity growth in two important California regions. IAA Fresno (CA) has expanded again to meet growing demand in the key market of the San Joaquin Valley. Significant capacity has also been added to meet customer needs in the densely populated Los Angeles market with the IAA Santa Clarita (CA) branch growing by more than 75% and IAA Fontana (CA) expanding by 40% to provide additional capacity in the region.

“By expanding our footprint and investing strategically in property, we are helping to support growing customer demand in these key California markets,” said Tim O’Day, President of U.S. Operations. “IAA will continue to pursue opportunities to enhance the buying and selling experience for our customers.”

About IAA

IAA, Inc. (NYSE: IAA) is a leading global digital marketplace connecting vehicle buyers and sellers. Leveraging leading-edge technology and focusing on innovation, IAA’s unique platform facilitates the marketing and sale of total-loss, damaged and low-value vehicles. Headquartered near Chicago in Westchester, Illinois, IAA has nearly 4,500 employees and more than 210 facilities throughout the U.S., Canada and the United Kingdom. IAA serves a global buyer base – located throughout over 170 countries – and a full spectrum of sellers, including insurers, dealerships, fleet lease and rental car companies, and charitable organizations. Buyers have access to multiple digital bidding and buying channels, innovative vehicle merchandising, and efficient evaluation services, enhancing the overall purchasing experience. IAA offers sellers a comprehensive suite of services aimed at maximizing vehicle value, reducing administrative costs, shortening selling cycle time and delivering the highest economic returns. For more information visit IAAI.com, and follow IAA on Facebook, Twitter, Instagram, YouTube and LinkedIn.

Forward-Looking Statements:

Certain statements contained in this release contain 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 in this release 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 include statements regarding the expected timing and associated benefits with respect to the expanded capacity for IAA Fresno (CA), IAA Santa Clarita (CA) and IAA Fontana (CA) on our business and plans regarding our growth strategies and margin expansion plan, and to our customers and company generally. Such statements are based on management’s current expectations, 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. These risks and uncertainties include, but are not limited to: the impact of COVID-19 and macroeconomic conditions on our business; our future growth; expectations regarding vehicle volume sales, results of operations and capital expenditures; and our continued investment in information technology, the impact of macroeconomic factors, including high fuel prices and rising inflation, on our revenues, gross profit and operating results; the loss of one or more significant vehicle suppliers or a reduction in significant volume from such suppliers; our ability to meet or exceed customers’ demand and expectations; significant current competition and the introduction of new competitors or other disruptive entrants in our industry; the risk that our facilities lack the capacity to accept additional vehicles and our ability to obtain land or renew/enter into new leases at commercially reasonable rates; our ability to effectively maintain or update information and technology systems; our ability to implement and maintain measures to protect against cyberattacks and comply with applicable privacy and data security requirements; our ability to successfully implement our business strategies or realize expected cost savings and revenue enhancements, including from our margin expansion plan; business development activities, including acquisitions and the integration of acquired businesses, and the risks that the anticipated benefits of any acquisitions may not be fully realized or take longer to realize than expected; our expansion into markets outside the U.S. and the operational, competitive and regulatory risks facing our non-U.S. based operations; our reliance on subhaulers and trucking fleet operations; changes in used-vehicle prices and the volume of damaged and total loss vehicles we purchase; economic conditions, including fuel prices, commodity prices, foreign exchange rates and interest rate fluctuations; trends in new- and used-vehicle sales and incentives; uncertainties regarding ongoing surges of COVID-19 infections, including new more contagious and/or vaccine resistant variants, and the impact on the duration and severity of the COVID-19 pandemic and measures intended to reduce its spread, including the availability, rate of public acceptance and efficacy of COVID-19 vaccines; and other risks and uncertainties identified in our filings with the Securities and Exchange Commission (the “SEC”), including under Item 1A “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on February 28, 2022 and Item 1A “Risk Factors” in our Quarterly Report on Form 10-Q filed with the SEC on May 10, 2022, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the SEC, including subsequent Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Many of these risk factors are outside of our control, and as such, they involve risks which are not currently known that could cause actual results to differ materially from those discussed or implied herein. The forward-looking statements in this document are made as of the date on which they are made and we do not undertake to update our forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221020005236/en/

Media Inquiries:

Jeanene O’Brien | IAA, Inc.

SVP, Global Marketing and Communications

(708) 492-7328

jobrien@iaai.com

Analyst Inquiries:

Caitlin Churchill | ICR

(203) 682-8200

investors@iaai.com

Source: IAA, Inc.

FAQ

What is the recent announcement about IAA?

IAA announced capacity expansions in Fresno and Los Angeles to meet growing demand.

How much has IAA expanded its Santa Clarita branch?

IAA's Santa Clarita branch has expanded by over 75%.

What is the growth percentage for IAA's Fontana location?

The Fontana location has expanded by 40%.

Why is IAA expanding in California?

IAA is expanding to support growing customer demand in key California markets.

What is IAA's focus with these expansions?

IAA focuses on enhancing the buying and selling experience for customers.