KAR Auction Services, Inc. Reports Third Quarter 2014 Results, $300 Million Share Repurchase Program and Dividend of $0.27 per Common Share
(firmenpresse) - CARMEL, IN -- (Marketwired) -- 11/04/14 -- KAR Auction Services, Inc. (NYSE: KAR) today reported its third quarter financial results for the three months ended September 30, 2014. For the third quarter of 2014, the company reported revenue of $589.1 million as compared with revenue of $533.7 million for the third quarter of 2013, an increase of 10%. Adjusted EBITDA for the quarter ended September 30, 2014 increased 14% to $149.1 million, as compared with Adjusted EBITDA of $130.6 million for the quarter ended September 30, 2013. Net income for the third quarter of 2014 increased 108% to $47.5 million, or $0.33 per diluted share, as compared with net income of $22.8 million, or $0.16 per diluted share, in the third quarter of 2013. Adjusted net income per diluted share for the quarter ended September 30, 2014 increased 38% to $0.40 versus adjusted net income per diluted share of $0.29 for the quarter ended September 30, 2013.
For the nine months ended September 30, 2014, the company reported revenue of $1,758.5 million as compared with revenue of $1,632.7 million for the nine months ended September 30, 2013, an increase of 8%. Adjusted EBITDA for the nine months ended September 30, 2014 increased 11% to $450.3 million, as compared with Adjusted EBITDA of $407.0 million for the nine months ended September 30, 2013. Net income increased 40% to $119.0 million, or $0.84 per diluted share, as compared with net income of $85.3 million, or $0.61 per diluted share in the first nine months of 2013. Adjusted net income per diluted share for the nine months ended September 30, 2014 increased 30% to $1.22 versus adjusted net income per diluted share of $0.94 for the nine months ended September 30, 2013.
The company also announced today that its Board of Directors authorized the repurchase of up to $300 million of shares of the Company''s common stock as well as a cash dividend of $0.27 per share on the company''s common stock. The dividend is payable on January 7, 2015, to stockholders of record as of the close of business on December 29, 2014.
The company continues to expect 2014 Adjusted EBITDA of $580 - $600 million. The company now expects net income per share of $1.05 - $1.15 and adjusted net income per share of $1.45 - $1.55, assuming an effective tax rate of approximately 38%. Adjusted net income per share for 2014 represents GAAP net income per diluted share excluding excess depreciation and amortization and stock-based compensation, both resulting from the 2007 merger, and the loss on extinguishment of debt, all net of taxes. Additionally, the company expects 2014 cash taxes of approximately $105 - $115 million, cash interest on corporate debt of approximately $61 million and capital expenditures of approximately $105 million. This would result in free cash flow before dividend payments of approximately $309 to $319 million or $2.17 - $2.24 per share.
KAR Auction Services, Inc. will be hosting an earnings conference call and webcast on Wednesday, November 5, 2014 at 11:00 a.m. EST (10:00 a.m. CST). 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 1-888-389-5987 and entering participant passcode 3597755 while the live web cast will be available at the investor relations section of . Supplemental financial information for KAR Auction Services'' third quarter 2014 results is available at the investor relations section of under the quarterly results 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 3597755. The archive of the web cast will also be available following the call and will be available at the investor relations section of for a limited time.
KAR Auction Services, Inc. (NYSE: KAR), a FORTUNE® 1000 company, operates used vehicle auction services for North American sellers and buyers worldwide. Based in Carmel, Ind., the KAR group of companies is comprised of ADESA, Inc. (ADESA), Insurance Auto Auctions, Inc. (IAA), Automotive Finance Corporation (AFC), and additional business units, with nearly 12,000 employees across the globe.
ADESA operates 65 wholesale used vehicle auctions and IAA has 166 salvage vehicle auctions. Both companies offer leading online auction platforms to provide greater access for customers. AFC provides inventory financing and comprehensive business services primarily to independent used vehicle dealers from its 111 locations. Together, KAR''s complementary businesses provide support, technology and logistics for the used vehicle industry. For more information, visit karauctionservices.com.
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.
EBITDA and Adjusted EBITDA as presented herein are supplemental measures of our performance that are not required by, or presented in accordance with, generally accepted accounting principles in the United States ("GAAP"). They are not measurements of our financial performance under GAAP and should not be considered as substitutes for net income (loss) or any other performance measures derived in accordance with GAAP.
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. EBITDA and Adjusted EBITDA 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 table reconciles EBITDA and Adjusted EBITDA to net income for the periods presented:
The revaluation of certain assets of the company, and resultant increase in depreciation and amortization expense which resulted from the 2007 merger, as well as stock-based compensation expense tied to the 2007 merger, have had a continuing effect on our reported results. Non-GAAP financial measures of adjusted net income and adjusted net income per share, in the opinion of the company, provide comparability to other companies that may have not incurred these types of non-cash expenses. In addition, net income and net income per share have been adjusted for certain other charges, as seen in the following reconciliation.
The following table reconciles adjusted net income and adjusted net income per share to net income and net income per share for the periods presented:
The company provides historical and forward-looking non-GAAP measures called EBITDA, Adjusted EBITDA, free cash flow, adjusted net income and adjusted net income per share. Management believes that these measures provide investors additional meaningful methods to evaluate certain aspects of the company''s results period over period and for the other reasons set forth previously.
Earnings guidance also does not contemplate future items such as business development activities, strategic developments (such as restructurings or dispositions of assets or investments), significant expenses related to litigation and changes in applicable laws and regulations (including significant accounting and tax matters). 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. Forward-looking non-GAAP guidance excludes stock-based compensation under certain equity grants related to the 2007 merger, increased depreciation and amortization expense that resulted from the 2007 revaluation of the company''s assets, as well as one-time charges, net of taxes.
Jonathan Peisner
(317) 249-4390
Darci Valentine
(317) 249-4414
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 04.11.2014 - 15:16 Uhr
Sprache: Deutsch
News-ID 1315482
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
CARMEL, IN
Phone:
Kategorie:
Cars
Anmerkungen:
Diese Pressemitteilung wurde bisher 210 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"KAR Auction Services, Inc. Reports Third Quarter 2014 Results, $300 Million Share Repurchase Program and Dividend of $0.27 per Common Share
"
steht unter der journalistisch-redaktionellen Verantwortung von
KAR Auction Services, Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
