KAR Auction Services Tallies Turnaround
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCarmel-based KAR Auction Services Inc. (NYSE: KAR) is reporting a fourth quarter profit of $50.3 million, compared to a net loss of $17.6 million during the same period a year earlier. The company says its full-year net income was $169.3 million, compared to $67.7 million in 2013. February 17, 2015
News Release
CARMEL, Ind. – KAR Auction Services, Inc. (NYSE: KAR), today reported its fourth quarter financial results for the period ended December 31, 2014. For the fourth quarter of 2014, the company reported revenue of $606.0 million as compared with revenue of $540.6 million for the fourth quarter of 2013, an increase of 12%. Adjusted EBITDA for the quarter ended December 31, 2014 increased 13% to $148.5 million, as compared with Adjusted EBITDA of $131.2 million for the quarter ended December 31, 2013. Net income for the fourth quarter of 2014 increased to $50.3 million, or $0.35 per diluted share, as compared with a net loss of $17.6 million, or $0.13 per diluted share, in the fourth quarter of 2013. Adjusted net income per diluted share for the quarter ended December 31, 2014 increased 54% to $0.40 versus adjusted net income per diluted share of $0.26 for the quarter ended December 31, 2013.
For the year ended December 31, 2014, the company reported revenue of $2,364.5 million as compared with revenue of $2,173.3 million for the year ended December 31, 2013, an increase of 9%. Adjusted EBITDA for the year ended December 31, 2014 increased 11% to $598.8 million, as compared with Adjusted EBITDA of $538.2 million for the year ended December 31, 2013. Net income increased 150% to $169.3 million, or $1.19 per diluted share, as compared with net income of $67.7 million, or $0.48 per diluted share for the year ended December 31, 2013. Adjusted net income per diluted share for the year ended December 31, 2014 increased 36% to $1.62 versus adjusted net income per diluted share of $1.19 for the year ended December 31, 2013.
The company also announced a cash dividend today of $0.27 per share on the company's common stock. The dividend is payable on April 2, 2015, to stockholders of record as of the close of business on March 25, 2015.
2015 Outlook
The company expects 2015 Adjusted EBITDA of $630 million – $660 million. The company also expects net income per share of $1.40 – $1.55 and adjusted net income per share of $1.60 – $1.75, assuming a 2015 effective tax rate of approximately 38%. Adjusted net income per share for 2015 represents GAAP net income per diluted share excluding excess depreciation and amortization resulting from the 2007 merger, net of taxes. Additionally, the company expects 2015 cash taxes of approximately $130 million – $135 million, cash interest on corporate debt of approximately $60 million and capital expenditures of approximately $115 million. This would result in free cash flow before dividend payments of approximately $325 million – $350 million or $2.27 – $2.45 per share.
About KAR Auction Services, Inc.
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 168 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.
Source: KAR Auction Services Inc.