OPENLANE, Inc. Reports Second Quarter 2024 Financial Results
OPENLANE, Inc. (NYSE: KAR) reported strong Q2 2024 financial results, demonstrating the power of its differentiated platform and scalability. Key highlights include:
- Total revenue of $432 million, up 4% YoY
- Marketplace revenue of $336 million, up 5% YoY
- Marketplace volumes increased 7% YoY
- Gross Merchandise Value (GMV) of ~$7 billion, up 6% YoY
- Income from continuing operations of $11 million
- Adjusted EBITDA of $71 million
- $138 million cash flow from operating activities YTD
The company updated its 2024 guidance due to Canada's retroactive Digital Services Tax, estimating $5 million in incremental cost of services for 2024.
OPENLANE, Inc. (NYSE: KAR) ha riportato forti risultati finanziari per il secondo trimestre del 2024, dimostrando la potenza della sua piattaforma differenziata e della scalabilità. Tra i punti salienti troviamo:
- Ricavi totali di 432 milioni di dollari, in aumento del 4% rispetto all'anno precedente
- Ricavi del marketplace di 336 milioni di dollari, in aumento del 5% rispetto all'anno precedente
- I volumi del marketplace sono aumentati del 7% rispetto all'anno precedente
- Valore Lordo della Merce (GMV) di circa 7 miliardi di dollari, in aumento del 6% rispetto all'anno precedente
- Reddito dalle operazioni continuative di 11 milioni di dollari
- EBITDA rettificato di 71 milioni di dollari
- Flusso di cassa dalle attività operative di 138 milioni di dollari dall'inizio dell'anno
L'azienda ha aggiornato le sua previsioni per il 2024 a causa della retroattiva Digital Services Tax del Canada, stimando un costo incrementale dei servizi di 5 milioni di dollari per il 2024.
OPENLANE, Inc. (NYSE: KAR) reportó fuertes resultados financieros en el segundo trimestre de 2024, demostrando la potencia de su plataforma diferenciada y escalabilidad. Los puntos destacados incluyen:
- Ingresos totales de 432 millones de dólares, un aumento del 4% interanual
- Ingresos del marketplace de 336 millones de dólares, un incremento del 5% interanual
- Los volúmenes del marketplace aumentaron un 7% interanual
- Valor Bruto de Mercancías (GMV) de aproximadamente 7 mil millones de dólares, un aumento del 6% interanual
- Ingresos de operaciones continuas de 11 millones de dólares
- EBITDA ajustado de 71 millones de dólares
- Flujo de efectivo de actividades operativas de 138 millones de dólares hasta la fecha
La empresa actualizó sus perspectivas para 2024 debido al impuesto retroactivo sobre servicios digitales de Canadá, estimando un costo incremental de servicios de 5 millones de dólares para 2024.
OPENLANE, Inc. (NYSE: KAR)는 2024년 2분기에 강력한 재무 결과를 보고하며 차별화된 플랫폼과 확장성의 힘을 입증하였습니다. 주요 하이라이트는 다음과 같습니다:
- 총 수익 4억 3200만 달러, 전년 대비 4% 증가
- 마켓플레이스 수익 3억 3600만 달러, 전년 대비 5% 증가
- 마켓플레이스 거래량 7% 증가
- 총 상품 가치(GMV) 약 70억 달러, 전년 대비 6% 증가
- 계속 운영으로 인한 수익 1100만 달러
- 조정 EBITDA 7100만 달러
- 올해 현재 운영 활동으로 인한 현금 흐름 1억 3800만 달러
회사는 캐나다의 소급 디지털 서비스 세금으로 인해 2024년 가이던스를 업데이트하였으며, 2024년 서비스 비용이 500만 달러 증가할 것으로 추정하고 있습니다.
OPENLANE, Inc. (NYSE: KAR) a annoncé des résultats financiers solides pour le deuxième trimestre 2024, démontrant la puissance de sa plateforme différenciée et de sa scalabilité. Les points clés incluent :
- Chiffre d'affaires total de 432 millions de dollars, en hausse de 4 % par rapport à l'année précédente
- Chiffre d'affaires du marché de 336 millions de dollars, en hausse de 5 % par rapport à l'année précédente
- Les volumes du marché ont augmenté de 7 % par rapport à l'année précédente
- Valeur Brute des Marchandises (GMV) d'environ 7 milliards de dollars, en hausse de 6 % par rapport à l'année précédente
- Revenu provenant des opérations continues de 11 millions de dollars
- EBITDA ajusté de 71 millions de dollars
- Flux de trésorerie provenant des activités d'exploitation de 138 millions de dollars depuis le début de l'année
L'entreprise a mis à jour ses prévisions pour 2024 en raison de la taxe rétroactive sur les services numériques du Canada, estimant un coût supplémentaire de services de 5 millions de dollars pour 2024.
OPENLANE, Inc. (NYSE: KAR) hat starke Finanzzahlen für das zweite Quartal 2024 veröffentlicht und die Leistungsfähigkeit seiner differenzierten Plattform und Skalierbarkeit demonstriert. Wichtige Punkte sind:
- Gesamtumsatz von 432 Millionen Dollar, ein Anstieg von 4% im Vergleich zum Vorjahr
- Marketplace-Umsatz von 336 Millionen Dollar, ein Anstieg von 5% im Vergleich zum Vorjahr
- Marketplace-Volumen stieg um 7% im Vergleich zum Vorjahr
- Bruttowarenwert (GMV) von ca. 7 Milliarden Dollar, ein Anstieg von 6% im Vergleich zum Vorjahr
- Einkommen aus fortgeführten Betrieben von 11 Millionen Dollar
- Bereinigtes EBITDA von 71 Millionen Dollar
- Cashflow aus operativen Tätigkeiten von 138 Millionen Dollar bisher in diesem Jahr
Das Unternehmen hat seine Prognose für 2024 aufgrund der rückwirkenden Digital Services Tax in Kanada aktualisiert und schätzt einen zusätzlichen Dienstleistungskostenaufwand von 5 Millionen Dollar für 2024.
- Total revenue increased 4% YoY to $432 million in Q2 2024
- Marketplace revenue grew 5% YoY to $336 million in Q2 2024
- Marketplace volumes increased 7% YoY
- Gross Merchandise Value (GMV) grew 6% YoY to approximately $7 billion
- Generated $138 million of cash flow from operating activities year-to-date
- Adjusted EBITDA of $71 million, with Marketplace contributing 46%
- Implemented Canadian Digital Services Tax expected to result in $5 million incremental cost of services in 2024
- Recorded $12 million of Canadian DST in Q2 2024, with $10 million related to 2022 and 2023
Insights
OPENLANE's Q2 2024 results show solid growth and operational efficiency. Key highlights include 7% YoY increase in marketplace volumes,
However, the newly enacted Canadian Digital Services Tax poses a challenge, with a
OPENLANE's Q2 results reflect broader trends in the used vehicle market. The
The company's focus on digital solutions is particularly noteworthy. As the automotive industry continues its digital transformation, OPENLANE's investment in technology positions it well to capture market share. The strong performance of their finance segment (AFC) also suggests effective leveraging of market opportunities in auto financing, a important aspect in the current high-interest rate environment.
The retroactive implementation of Canada's Digital Services Tax (DST) presents a significant legal and financial challenge for OPENLANE. Enacted on June 28, 2024, but retroactive to January 1, 2022, this tax resulted in a
OPENLANE estimates an additional
"OPENLANE's second quarter and year-to-date results clearly demonstrate the power of our differentiated platform and the strong scalability characteristics of our company," said Peter Kelly, CEO of OPENLANE. "During the quarter, we grew marketplace and finance volumes, increased revenue and delivered strong adjusted EBITDA and operating cash flows. I am confident in OPENLANE's strategy, we are investing in technology and people to further accelerate innovation and profitable growth."
"OPENLANE's continued focus on execution and profitable growth delivered solid financial results in the second quarter," said Brad Lakhia, EVP and CFO of OPENLANE. "Consolidated revenue was
Second Quarter 2024 Financial Highlights
- Marketplace volumes increased
7% YoY - Total revenue of
$432 million 4% YoY growth - Marketplace revenue of
$336 million 5% YoY growth - Gross Merchandise Value (GMV) of approximately
$7 billion 6% YoY growth - Income from continuing operations of
$11 million - Adjusted EBITDA of
$71 million 46% ), including the$2 million $138 million
2024 Guidance
As a result of
Annual Guidance | |
Income from continuing operations (in millions) | |
Adjusted EBITDA (in millions) | |
Income from continuing operations per share - diluted * | |
Operating adjusted net income from continuing operations per share - diluted |
* The company uses the two-class method of calculating income from continuing operations per diluted share. Under the two-class method, income from continuing operations is adjusted for dividends and undistributed earnings (losses) to the holders of the Series A Preferred Stock, and the weighted average diluted shares do not assume conversion of the preferred shares to common shares.
Earnings guidance does not contemplate future items such as business development activities, strategic developments (such as restructurings, spin-offs or dispositions of assets or investments), contingent purchase price adjustments, significant expenses related to litigation, tax adjustments and changes in applicable laws and regulations (including significant accounting and tax matters) and intangible impairments. The timing and amounts of these items are highly variable, difficult to predict, and of a potential size that could have a substantial impact on the company's reported results for any given period. Prospective quantification of these items is generally not practicable. Operating adjusted net income from continuing operations per share excludes amortization expense associated with acquired intangible assets, as well as one-time charges, net of taxes. See reconciliations of the company's guidance included below.
Earnings Conference Call Information
OPENLANE will be hosting an earnings conference call and webcast on Wednesday, August 7, 2024 at 5:00 p.m. ET. The call will be hosted by OPENLANE Chief Executive Officer Peter Kelly and Chief Financial Officer Brad Lakhia. The conference call may be accessed by calling 1-833-634-2155 and asking to join the OPENLANE call. A live webcast will be available at the investor relations section of corporate.openlane.com. Supplemental financial information for OPENLANE's second quarter 2024 results is available at the investor relations section of corporate.openlane.com.
The archive of the webcast will be available following the call at the investor relations section of corporate.openlane.com for a limited time.
About OPENLANE
OPENLANE, Inc. (NYSE: KAR), provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. The company's unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services. Our integrated marketplaces reduce risk, improve transparency and streamline transactions for customers around the globe. Headquartered in
Forward-Looking Statements
Certain statements contained in this release include, and the company may make related oral, "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," "would," "anticipate," "expect," "project," "intend," "contemplate," "plan," "believe," "seek," "estimate," "assume," "can," "could," "continue," "of the opinion," "confident," "is set," "is on track," "outlook," "target," "positioned," "predict," "initiative," "goal," "opportunity" and similar expressions identify forward-looking statements. Such statements are based on management's current assumptions, expectations and/or beliefs, are not guarantees of future performance and are subject to substantial risks, uncertainties and changes 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, but are not limited to, those discussed in the section entitled "Risk Factors" in the company's Form 10-K for the year ended December 31, 2023 and in the company's other filings and reports filed with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this release. The company undertakes no obligation to update any forward-looking statements.
OPENLANE, Inc. | |||||||
Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Operating revenues | |||||||
Auction fees | $ 108.7 | $ 103.3 | $ 218.6 | $ 203.2 | |||
Service revenue | 147.1 | 155.7 | 297.3 | 321.3 | |||
Purchased vehicle sales | 80.2 | 60.4 | 138.4 | 115.9 | |||
Finance-related revenue | 95.8 | 97.5 | 193.8 | 197.1 | |||
Total operating revenues | 431.8 | 416.9 | 848.1 | 837.5 | |||
Operating expenses | |||||||
Cost of services (exclusive of depreciation and amortization) | 245.9 | 222.6 | 459.8 | 446.8 | |||
Selling, general and administrative | 106.0 | 111.2 | 214.7 | 219.2 | |||
Depreciation and amortization | 24.1 | 26.8 | 48.4 | 49.8 | |||
Goodwill and other intangibles impairment | — | 250.8 | — | 250.8 | |||
Total operating expenses | 376.0 | 611.4 | 722.9 | 966.6 | |||
Operating profit (loss) | 55.8 | (194.5) | 125.2 | (129.1) | |||
Interest expense | 37.4 | 38.8 | 77.1 | 77.1 | |||
Other (income) expense, net | 0.2 | (21.3) | 0.7 | (14.2) | |||
Loss on extinguishment of debt | — | 1.1 | — | 1.1 | |||
Income (loss) from continuing operations before income taxes | 18.2 | (213.1) | 47.4 | (193.1) | |||
Income taxes | 7.5 | (19.3) | 18.2 | (12.0) | |||
Income (loss) from continuing operations | 10.7 | (193.8) | 29.2 | (181.1) | |||
Income from discontinued operations, net of income taxes | — | — | — | — | |||
Net income (loss) | $ 10.7 | $ (193.8) | $ 29.2 | $ (181.1) | |||
Net income (loss) per share - basic | |||||||
Income (loss) from continuing operations | $ — | $ (1.87) | $ 0.05 | $ (1.86) | |||
Income from discontinued operations | — | — | — | — | |||
Net income (loss) per share - basic | $ — | $ (1.87) | $ 0.05 | $ (1.86) | |||
Net income (loss) per share - diluted | |||||||
Income (loss) from continuing operations | $ — | $ (1.87) | $ 0.05 | $ (1.86) | |||
Income from discontinued operations | — | — | — | — | |||
Net income (loss) per share - diluted | $ — | $ (1.87) | $ 0.05 | $ (1.86) | |||
OPENLANE, Inc. | |||
June 30, | December 31, | ||
Cash and cash equivalents | $ 60.9 | $ 93.5 | |
Restricted cash | 67.7 | 65.4 | |
Trade receivables, net of allowances | 292.1 | 291.8 | |
Finance receivables, net of allowances | 2,220.1 | 2,282.0 | |
Other current assets | 133.3 | 109.2 | |
Total current assets | 2,774.1 | 2,841.9 | |
Goodwill | 1,264.0 | 1,271.2 | |
Customer relationships, net of accumulated amortization | 126.8 | 136.1 | |
Operating lease right-of-use assets | 71.5 | 75.9 | |
Property and equipment, net of accumulated depreciation | 160.2 | 169.8 | |
Intangible and other assets | 221.2 | 231.4 | |
Total assets | $ 4,617.8 | $ 4,726.3 | |
Current liabilities, excluding obligations collateralized by finance receivables and current maturities of debt | $ 730.5 | $ 692.3 | |
Obligations collateralized by finance receivables | 1,573.6 | 1,631.9 | |
Current maturities of debt | 272.0 | 154.6 | |
Total current liabilities | 2,576.1 | 2,478.8 | |
Long-term debt | — | 202.4 | |
Operating lease liabilities | 65.5 | 70.4 | |
Other non-current liabilities | 35.5 | 35.2 | |
Temporary equity | 612.5 | 612.5 | |
Stockholders' equity | 1,328.2 | 1,327.0 | |
Total liabilities, temporary equity and stockholders' equity | $ 4,617.8 | $ 4,726.3 | |
OPENLANE, Inc. | |||
Six Months Ended | |||
2024 | 2023 | ||
Operating activities | |||
Net income (loss) | $ 29.2 | $ (181.1) | |
Net income from discontinued operations | — | — | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 48.4 | 49.8 | |
Provision for credit losses | 29.1 | 28.4 | |
Deferred income taxes | 0.4 | (29.1) | |
Amortization of debt issuance costs | 4.7 | 4.4 | |
Stock-based compensation | 10.1 | 8.9 | |
Contingent consideration adjustment | — | 1.3 | |
Net change in unrealized (gain) loss on investment securities | — | (0.1) | |
Investment and note receivable impairment | — | 11.0 | |
Goodwill and other intangibles impairment | — | 250.8 | |
Loss on extinguishment of debt | — | 1.1 | |
Other non-cash, net | 0.1 | 0.8 | |
Changes in operating assets and liabilities, net of acquisitions: | |||
Trade receivables and other assets | (23.7) | (76.2) | |
Accounts payable and accrued expenses | 39.4 | 75.2 | |
Payments of contingent consideration in excess of acquisition-date fair value | — | (2.6) | |
Net cash provided by operating activities - continuing operations | 137.7 | 142.6 | |
Net cash used by operating activities - discontinued operations | (0.1) | (0.1) | |
Investing activities | |||
Net decrease (increase) in finance receivables held for investment | 33.1 | (24.4) | |
Purchases of property, equipment and computer software | (25.9) | (26.9) | |
Investments in securities | (1.6) | (0.6) | |
Proceeds from the sale of property and equipment | 0.3 | 0.3 | |
Net cash provided by (used by) investing activities - continuing operations | 5.9 | (51.6) | |
Net cash provided by investing activities - discontinued operations | — | 7.0 | |
Financing activities | |||
Net decrease in book overdrafts | (1.6) | (2.2) | |
Net (repayments of) borrowings from lines of credit | (81.2) | 39.2 | |
Net (decrease) increase in obligations collateralized by finance receivables | (56.1) | 33.1 | |
Payments for debt issuance costs/amendments | (2.2) | (5.3) | |
Payment for early extinguishment of debt | — | (140.1) | |
Payments on finance leases | (0.6) | (1.1) | |
Payments of contingent consideration and deferred acquisition costs | — | (12.4) | |
Issuance of common stock under stock plans | 0.8 | 1.6 | |
Tax withholding payments for vested RSUs | (3.4) | (2.5) | |
Dividends paid on Series A Preferred Stock | (22.2) | (22.2) | |
Net cash used by financing activities - continuing operations | (166.5) | (111.9) | |
Net cash provided by financing activities - discontinued operations | — | — | |
Net change in cash balances of discontinued operations | — | — | |
Effect of exchange rate changes on cash | (7.3) | 8.8 | |
Net decrease in cash, cash equivalents and restricted cash | (30.3) | (5.2) | |
Cash, cash equivalents and restricted cash at beginning of period | 158.9 | 277.7 | |
Cash, cash equivalents and restricted cash at end of period | $ 128.6 | $ 272.5 | |
Cash paid for interest | $ 74.6 | $ 72.8 | |
Cash paid for taxes, net of refunds - continuing operations | $ 29.4 | $ 21.4 | |
Cash paid for taxes, net of refunds - discontinued operations | $ — | $ — | |
OPENLANE, Inc.
Reconciliation of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, operating adjusted net income (loss) and operating adjusted net income (loss) per share as presented herein are supplemental measures of our performance that are not required by, or presented in accordance with, generally accepted accounting principles in
EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit), depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items of income and expense and expected incremental revenue and cost savings as described in our senior secured credit agreement covenant calculations. Management believes that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA is appropriate to provide additional information to investors about one of the principal measures of performance used by our creditors. In addition, management uses EBITDA and Adjusted EBITDA to evaluate our performance.
Depreciation expense for property and equipment and amortization expense of capitalized internally developed software costs relate to ongoing capital expenditures; however, amortization expense associated with acquired intangible assets, such as customer relationships, software, tradenames and noncompete agreements are not representative of ongoing capital expenditures, but have a continuing effect on our reported results. Non-GAAP financial measures of operating adjusted net income (loss) and operating adjusted net income (loss) per share, in the opinion of the company, provide comparability of the company's performance to other companies that may not have incurred these types of non-cash expenses or that report a similar measure. In addition, operating adjusted net income (loss) and operating adjusted net income (loss) per share may include adjustments for certain other charges.
EBITDA, Adjusted EBITDA, operating adjusted net income (loss) and operating adjusted net income (loss) per share have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of the results as reported under GAAP. These measures may not be comparable to similarly titled measures reported by other companies.
The following tables reconcile EBITDA and Adjusted EBITDA to income (loss) from continuing operations for the periods presented:
Three Months Ended | Six Months Ended | ||||||
(In millions), (Unaudited) | 2024 | 2023 | 2024 | 2023 | |||
Income (loss) from continuing operations | $ 10.7 | $ (193.8) | $ 29.2 | $ (181.1) | |||
Add back: | |||||||
Income taxes | 7.5 | (19.3) | 18.2 | (12.0) | |||
Interest expense, net of interest income | 37.1 | 37.5 | 76.4 | 74.9 | |||
Depreciation and amortization | 24.1 | 26.8 | 48.4 | 49.8 | |||
EBITDA | 79.4 | (148.8) | 172.2 | (68.4) | |||
Non-cash stock-based compensation | 3.7 | 5.5 | 10.7 | 9.3 | |||
Loss on extinguishment of debt | — | 1.1 | — | 1.1 | |||
Acquisition related costs | 0.2 | 0.3 | 0.5 | 0.6 | |||
Securitization interest | (29.2) | (29.6) | (59.1) | (57.4) | |||
Severance | 6.0 | 1.0 | 7.7 | 1.5 | |||
Foreign currency (gains)/losses | 0.5 | 0.3 | 2.5 | 0.4 | |||
Goodwill and other intangibles impairment | — | 250.8 | — | 250.8 | |||
Contingent consideration adjustment | — | 1.3 | — | 1.3 | |||
Net change in unrealized (gains) losses on investment securities | — | (0.2) | — | (0.1) | |||
Professional fees related to business improvement efforts | 0.7 | 2.1 | 1.5 | 2.8 | |||
Impact for newly enacted Canadian DST related to prior years | 10.0 | — | 10.0 | — | |||
Other | 0.1 | — | 0.2 | 0.8 | |||
Total addbacks/(deductions) | (8.0) | 232.6 | (26.0) | 211.1 | |||
Adjusted EBITDA | $ 71.4 | $ 83.8 | $ 146.2 | $ 142.7 | |||
Three Months Ended June 30, 2024 | |||||
(Dollars in millions), (Unaudited) | Marketplace | Finance | Consolidated | ||
Income (loss) from continuing operations | $ (16.1) | $ 26.8 | $ 10.7 | ||
Add back: | |||||
Income taxes | (1.2) | 8.7 | 7.5 | ||
Interest expense, net of interest income | 5.2 | 31.9 | 37.1 | ||
Depreciation and amortization | 21.1 | 3.0 | 24.1 | ||
Intercompany interest | 3.4 | (3.4) | — | ||
EBITDA | 12.4 | 67.0 | 79.4 | ||
Non-cash stock-based compensation | 3.6 | 0.1 | 3.7 | ||
Acquisition related costs | 0.2 | — | 0.2 | ||
Securitization interest | — | (29.2) | (29.2) | ||
Severance | 5.4 | 0.6 | 6.0 | ||
Foreign currency (gains)/losses | 0.5 | — | 0.5 | ||
Professional fees related to business improvement efforts | 0.6 | 0.1 | 0.7 | ||
Impact for newly enacted Canadian DST related to prior years | 10.0 | — | 10.0 | ||
Other | — | 0.1 | 0.1 | ||
Total addbacks/(deductions) | 20.3 | (28.3) | (8.0) | ||
Adjusted EBITDA | $ 32.7 | $ 38.7 | $ 71.4 | ||
Three Months Ended June 30, 2023 | |||||
(Dollars in millions), (Unaudited) | Marketplace | Finance | Consolidated | ||
Income (loss) from continuing operations | $ (219.4) | $ 25.6 | $ (193.8) | ||
Add back: | |||||
Income taxes | (36.0) | 16.7 | (19.3) | ||
Interest expense, net of interest income | 5.4 | 32.1 | 37.5 | ||
Depreciation and amortization | 24.5 | 2.3 | 26.8 | ||
Intercompany interest | 8.1 | (8.1) | — | ||
EBITDA | (217.4) | 68.6 | (148.8) | ||
Non-cash stock-based compensation | 4.3 | 1.2 | 5.5 | ||
Loss on extinguishment of debt | 1.1 | — | 1.1 | ||
Acquisition related costs | 0.3 | — | 0.3 | ||
Securitization interest | — | (29.6) | (29.6) | ||
Severance | 0.9 | 0.1 | 1.0 | ||
Foreign currency (gains)/losses | 0.5 | (0.2) | 0.3 | ||
Goodwill and other intangibles impairment | 250.8 | — | 250.8 | ||
Contingent consideration adjustment | 1.3 | — | 1.3 | ||
Net change in unrealized (gains) losses on investment securities | — | (0.2) | (0.2) | ||
Professional fees related to business improvement efforts | 1.7 | 0.4 | 2.1 | ||
Total addbacks/(deductions) | 260.9 | (28.3) | 232.6 | ||
Adjusted EBITDA | $ 43.5 | $ 40.3 | $ 83.8 | ||
The following table reconciles operating adjusted net income and operating adjusted net income per diluted share to net income (loss) from continuing operations for the periods presented:
Three Months Ended | Six Months Ended | ||||||
(In millions, except per share amounts), (Unaudited) | 2024 | 2023 | 2024 | 2023 | |||
Net income (loss) from continuing operations (1) | $ 10.7 | $ (193.8) | $ 29.2 | $ (181.1) | |||
Acquired amortization expense | 9.1 | 9.8 | 18.4 | 17.2 | |||
Impact for newly enacted Canadian DST related to prior years | 10.0 | — | 10.0 | — | |||
Loss on extinguishment of debt | — | 1.1 | — | 1.1 | |||
Contingent consideration adjustment | — | 1.3 | — | 1.3 | |||
Goodwill and other intangibles impairment | — | 250.8 | — | 250.8 | |||
Income taxes (2) | (2.1) | (32.4) | (2.5) | (34.2) | |||
Operating adjusted net income from continuing operations | $ 27.7 | $ 36.8 | $ 55.1 | $ 55.1 | |||
Operating adjusted net income from discontinued operations | $ — | $ — | $ — | $ — | |||
Operating adjusted net income | $ 27.7 | $ 36.8 | $ 55.1 | $ 55.1 | |||
Operating adjusted net income from continuing operations per | $ 0.19 | $ 0.25 | $ 0.38 | $ 0.38 | |||
Operating adjusted net income from discontinued operations per | — | — | — | — | |||
Operating adjusted net income per share - diluted | $ 0.19 | $ 0.25 | $ 0.38 | $ 0.38 | |||
Weighted average diluted shares - including assumed conversion | 144.4 | 145.3 | 145.1 | 145.2 | |||
(1) | The Series A Preferred Stock dividends and undistributed earnings allocated to participating securities have not been included in the calculation of operating adjusted net income and operating adjusted net income per diluted share. |
(2) | For the three and six months ended June 30, 2024 and 2023, each tax deductible item was booked to the applicable statutory rate. The deferred tax benefits of |
The following table reconciles EBITDA and Adjusted EBITDA to income from continuing operations for the 2024 guidance presented:
2024 Guidance | |||
(In millions), (Unaudited) | Low | High | |
Income from continuing operations | $ 65 | $ 80 | |
Add back: | |||
Income taxes | 38 | 47 | |
Interest expense, net of interest income | 147 | 145 | |
Depreciation and amortization | 100 | 98 | |
EBITDA | 350 | 370 | |
Total addbacks/(deductions), net | (65) | (65) | |
Adjusted EBITDA | $ 285 | $ 305 | |
The following table reconciles operating adjusted net income from continuing operations and operating adjusted net income from continuing operations per diluted share to income from continuing operations for the 2024 guidance presented:
2024 Guidance | |||
(In millions, except per share amounts), (Unaudited) | Low | High | |
Income from continuing operations | $ 65 | $ 80 | |
Total adjustments, net | 46 | 46 | |
Operating adjusted net income from continuing operations | $ 111 | $ 126 | |
Operating adjusted net income from continuing operations per share – diluted | $ 0.77 | $ 0.87 | |
Weighted average diluted shares - including assumed conversion of preferred | 145 | 145 | |
Analyst Inquiries: | Media Inquiries: |
Itunu Orelaru | Laurie Dippold |
(317) 249-4559 | (317) 468-3900 |
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SOURCE OPENLANE, Inc.
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