IAA Expands Inspection Services Platform with Undercarriage Images

Rhea-AI Summary

IAA (NYSE: IAA) has launched a new undercarriage photo service within its Inspection Services® platform, developed in collaboration with major insurance carriers. This enhancement aims to improve estimate accuracy by providing detailed visibility into critical vehicle components, including drivetrain and battery conditions for electric vehicles. The service includes 10 standard images and can be added to any inspection level or requested separately. The initiative reflects IAA's commitment to innovating in virtual estimating processes as the demand for accurate appraisals rises.

Positive

• Launch of undercarriage photo service enhances estimate accuracy.
• Collaboration with insurance carriers strengthens industry relationships.
• Service includes detailed imaging for electric vehicles, addressing growing market needs.

Negative

• Risk of potential delays or impacts due to pending merger with Ritchie Bros.
• Uncertainty surrounding macroeconomic factors that could affect revenues.

Worked with major insurance carriers to greatly enhance imaging and improve estimate accuracy

WESTCHESTER, Ill.--(BUSINESS WIRE)-- IAA, Inc. (NYSE: IAA), a leading global digital marketplace connecting vehicle buyers and sellers, announces the launch of undercarriage photo services within its Inspection Services® platform. This enhanced service, developed in collaboration with a variety of insurance customers, helps to greatly improve estimate accuracy by providing visibility into the condition of major components, such as the drivetrain, suspension, transmission, engine and more. Available for automobiles, light trucks and SUVs, this is also a critical enhancement for the inspection of electric vehicles (EVs), to better understand the condition of the battery or inspect for possible damages.

Providers will receive 10 standard images through IAA’s CSAToday® inventory management system, which will include multiple views showing the vehicle’s entire undercarriage. This undercarriage image service can be added to any level of inspection services or as a separate request.

“Virtual estimating processes are evolving, and IAA is constantly innovating to improve the user experience and provide tools for increased appraisal accuracy – especially given the rise in EVs on the road,” said Justin Mahlik, Senior Vice President and Chief Transformation Officer for IAA. “As the industry leader in this space, we are excited to add undercarriage imaging to our Inspection Services platform to deliver further value to 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:

This release contains 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 expansion of the Inspection Services platform to include undercarriage images 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. Risks and uncertainties related to our pending merger with Ritchie Bros. Auctioneers Incorporated (“Ritchie Bros”) that may cause actual results to differ materially include, but are not limited to: the impact the announcement and pendency of the merger may have on our business, including potential adverse effects on partner and customer relationships and, which could affect our results of operations and financial condition; the extent to which various closing conditions, including regulatory approvals and approvals by our stockholders, are satisfied; the risk that failure to complete the merger, or a delay in the completion of the merger, could negatively impact our business, results of operations, financial condition and stock price; the uncertainty of the ultimate value our stockholders will receive in connection with the merger; the extent to which various interim operating covenants, with which we will be required to comply while the merger remains pending, constrains our business operations and diverts management’s focus from our ongoing business; the possibility of adverse impacts on our ability to retain and hire key personnel during the pendency of the merger; the extent to which potential litigation filed against us or Ritchie Bros. could prevent or delay the completion of the merger or result in the payment of damages following the completion of the merger; the extent to which provisions in the merger agreement limit our ability to pursue alternatives to the merger or discourage a potential competing acquirer of us, or result in any competing proposal being at a lower price than it might otherwise be; and after the merger, Ritchie Bros. may fail to realize the projected benefits and cost savings of the merger, which could adversely affect the value of Ritchie Bros. stock price. Additional risks and uncertainties that may cause actual results to differ materially include, but are not limited to: 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 the impact of possible future surges of COVID-19 infections or other pandemics, epidemics or infectious disease outbreaks on our business operations or the operations of our customers; 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 November 9, 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 release are made as of the date on which they are made and we do not undertake to update our forward-looking statements.

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IAA Contacts

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 new service launched by IAA?

IAA has launched an undercarriage photo service to improve estimate accuracy in its Inspection Services platform.

How many images are included in IAA's new service?

The undercarriage photo service includes 10 standard images showing various views of the vehicle's undercarriage.

How does the new undercarriage imaging service affect electric vehicles?

The service provides detailed imagery to assess the condition of electric vehicle batteries and potential damage.

What company is collaborating with IAA for the new imaging service?

IAA developed the undercarriage photo service in collaboration with various insurance carriers.

What potential risks does IAA face following the announcement?

IAA faces risks related to its pending merger with Ritchie Bros., including operational impacts and uncertainties affecting stockholder value.