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WESTCHESTER, Ill.--(BUSINESS WIRE)--Nov 7, 2022--
IAA, Inc. (NYSE: IAA) today announced its financial results for the third quarter of fiscal 2022, which ended October 2, 2022.
John Kett, Chief Executive Officer and President, stated, “Our third quarter results reflect the continuation of mixed industry trends as the benefit from increases in revenue per unit were largely offset by volume and cost related headwinds, particularly in the U.K. With that said, we are encouraged by the progress we are seeing with a number of insurance selling partners in the U.S. Most recently, we received high praise from our customers with respect to our response to Hurricane Ian. Our response effort was only made possible because of the consistent preparation activities of our CAT response team, the significant investment we have made in real estate and technology, and the decades of collective knowledge and experience IAA brings to the table. Throughout the response process our access to information and visibility into our operations, capacity and logistical network was exceptional, enabling IAA to react quickly and with precision to this historic storm.”
Mr. Kett continued, “We continue to focus on building operational efficiencies and delivering against our strategic objectives while continuing to navigate a dynamic macro-environment. We are also excited with the announcement of our pending combination with Ritchie Bros.”
Key Third Quarter Measures:
(Dollars in millions, except per share amounts)
| Quarter Ended | % Change | Year to Date Ended | % Change | ||
October 2, | September 26, | October 2, | September 26, | |||
Revenues | $497.5 | $420.7 | 18.3% | $1,575.4 | $1,289.3 | 22.2% |
Net Income | $50.3 | $65.7 | (23.4)% | $214.5 | $221.1 | (3.0)% |
Adjusted Net Income | $59.9 | $69.8 | (14.2)% | $231.9 | $241.0 | (3.8)% |
Diluted EPS | $0.38 | $0.49 | (22.4)% | $1.60 | $1.63 | (1.8)% |
Adjusted Diluted EPS | $0.45 | $0.52 | (13.5)% | $1.73 | $1.78 | (2.8)% |
Adjusted EBITDA | $113.3 | $121.1 | (6.4)% | $399.3 | $406.9 | (1.9)% |
Highlights for the Third Quarter Ended October 2, 2022:
Highlights for the Year-to-Date Ended October 2, 2022:
*Through Auto Exchange’s first year anniversary in June 2022
Other Financial Highlights as of October 2, 2022:
Please refer to the accompanying financial tables for a reconciliation of Net Debt, Leverage Ratio and Free Cash Flow to U.S. GAAP.
Conference Call/Webcast Detail
In light of the transaction with Ritchie Bros. Auctioneers Incorporated (“Ritchie Bros.”) announced separately today, IAA will not hold its third quarter 2022 financial results conference call, which was originally scheduled for November 10, 2022. The Company has posted commentary from management regarding its third quarter 2022 financial results online at https://investors.iaai.com/. In addition, IAA will no longer be providing financial outlook for fiscal 2022.
There will be a separate call and webcast hosted by management teams of Ritchie Bros. and IAA to discuss the transaction today at 8:00 a.m. ET.
Analysts and institutional investors may participate via conference call, using the following dial-in information:
Conference ID: 04106719
Participant Toll-Free Dial-In Number:
North America - 1-888-664-6392
UK - 08006522435
Canada: 1-416-764-8659
Media and other interested parties may listen to live webcast of the call at https://investor.ritchiebros.com
About IAA, Inc.
IAA, Inc. (NYSE: IAA) is a leading global 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 for a full spectrum of sellers. 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 include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, statements made that are not historical facts may be forward-looking statements and can be identified by words such as “should,” “may,” “will,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and similar expressions. In this release, such forward-looking statements include statements about our expectations regarding insurance selling partners in the US, our operational plans and macroeconomic environment and industry trends. 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, 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; and 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. 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 seller customers or a reduction in significant volume from such sellers; 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 "Risk Factors" in our Form 10-K for the year ended January 2, 2022 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. Other risks and uncertainties that are not presently known to us or that we currently deem immaterial may also affect our business or operating results. The forward-looking statements included in this release are made as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statement to reflect new information or events, except as required by law.
Non-GAAP Financial Information
We refer to certain financial measures that are not recognized under United States generally accepted accounting principles (“GAAP”). Please see “Note Regarding Non-GAAP Financial Information" and “Reconciliation of GAAP to Non-GAAP Financial Information” for additional information and a reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures.
IAA, Inc.
Consolidated Statements of Income
(Amounts in Millions, Except Per Share)
(Unaudited)
| Three Months Ended |
| Nine Months Ended | ||||||||||
| October 2, |
| September 26, |
| October 2, |
| September 26, | ||||||
|
|
|
|
|
|
|
| ||||||
Revenues: |
|
|
|
|
|
|
| ||||||
Service revenues | $ | 397.9 |
| $ | 359.0 |
| $ | 1,249.5 |
| $ | 1,101.9 |
| |
Vehicle and parts sales |
| 99.6 |
|
| 61.7 |
|
| 325.9 |
|
| 187.4 |
| |
Total revenues |
| 497.5 |
|
| 420.7 |
|
| 1,575.4 |
|
| 1,289.3 |
| |
Operating expenses: |
|
|
|
|
|
|
| ||||||
Cost of services |
| 244.0 |
|
| 198.4 |
|
| 739.0 |
|
| 592.4 |
| |
Cost of vehicle and parts sales |
| 93.3 |
|
| 54.5 |
|
| 293.0 |
|
| 160.5 |
| |
Selling, general and administrative |
| 51.0 |
|
| 49.8 |
|
| 152.8 |
|
| 136.9 |
| |
Depreciation and amortization |
| 25.2 |
|
| 21.2 |
|
| 77.9 |
|
| 61.5 |
| |
Total operating expenses |
| 413.5 |
|
| 323.9 |
|
| 1,262.7 |
|
| 951.3 |
| |
Operating profit |
| 84.0 |
|
| 96.8 |
|
| 312.7 |
|
| 338.0 |
| |
Interest expense, net |
| 13.3 |
|
| 11.1 |
|
| 36.0 |
|
| 46.0 |
| |
Other expense (income), net |
| 3.0 |
|
| 0.2 |
|
| 8.2 |
|
| (0.5 | ) | |
Income before income taxes |
| 67.7 |
|
| 85.5 |
|
| 268.5 |
|
| 292.5 |
| |
Income taxes |
| 17.4 |
|
| 19.8 |
|
| 54.0 |
|
| 71.4 |
| |
Net income | $ | 50.3 |
| $ | 65.7 |
| $ | 214.5 |
| $ | 221.1 |
| |
|
|
|
|
|
|
|
| ||||||
Net income per share: |
|
|
|
|
|
|
| ||||||
Basic | $ | 0.38 |
| $ | 0.49 |
| $ | 1.60 |
| $ | 1.64 |
| |
Diluted | $ | 0.38 |
| $ | 0.49 |
| $ | 1.60 |
| $ | 1.63 |
| |
|
|
|
|
|
|
|
| ||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
| ||||||
Basic |
| 133.7 |
|
| 134.8 |
|
| 134.0 |
|
| 134.8 |
| |
Diluted |
| 133.9 |
|
| 135.3 |
|
| 134.1 |
|
| 135.3 |
|
IAA, Inc.
Consolidated Balance Sheets
(Amounts in Millions)
(Unaudited)
| October 2, |
| January 2, | |||
Assets |
|
|
| |||
|
|
|
| |||
Current assets |
|
|
| |||
Cash and cash equivalents | $ | 145.9 |
| $ | 109.4 | |
Restricted cash |
| — |
|
| 53.0 | |
Accounts receivable, net of allowances of $9.3 and $9.1 |
| 418.0 |
|
| 465.7 | |
Prepaid consigned vehicle charges |
| 60.6 |
|
| 72.2 | |
Other current assets |
| 77.6 |
|
| 69.6 | |
Total current assets |
| 702.1 |
|
| 769.9 | |
|
|
|
| |||
Non-current assets |
|
|
| |||
Operating lease right-of-use assets, net of accumulated amortization of $311.1 and $238.3 |
| 1,146.3 |
|
| 1,024.4 | |
Property and equipment, net of accumulated depreciation of $558.1 and $531.9 |
| 368.0 |
|
| 338.1 | |
Goodwill |
| 748.7 |
|
| 797.5 | |
Intangible assets, net of accumulated amortization of $590.0 and $549.6 |
| 185.1 |
|
| 197.5 | |
Other assets |
| 31.2 |
|
| 26.9 | |
Total non-current assets |
| 2,479.3 |
|
| 2,384.4 | |
Total assets | $ | 3,181.4 |
| $ | 3,154.3 | |
|
|
|
| |||
Liabilities and Stockholders' Equity |
|
|
| |||
|
|
|
| |||
Current liabilities |
|
|
| |||
Accounts payable | $ | 196.3 |
| $ | 163.5 | |
Short-term right-of-use operating lease liability |
| 87.9 |
|
| 94.3 | |
Accrued employee benefits and compensation expenses |
| 27.4 |
|
| 44.2 | |
Other accrued expenses |
| 77.2 |
|
| 124.6 | |
Current maturities of long-term debt |
| 32.5 |
|
| 181.3 | |
Total current liabilities |
| 421.3 |
|
| 607.9 | |
|
|
|
| |||
Non-current liabilities |
|
|
| |||
Long-term debt |
| 1,098.2 |
|
| 1,120.6 | |
Long-term right-of-use operating lease liability |
| 1,104.0 |
|
| 984.8 | |
Deferred income tax liabilities |
| 69.6 |
|
| 74.8 | |
Other liabilities |
| 24.4 |
|
| 32.6 | |
Total non-current liabilities |
| 2,296.2 |
|
| 2,212.8 | |
|
|
|
| |||
Stockholders' equity |
|
|
| |||
Total stockholders' equity |
| 463.9 |
|
| 333.6 | |
Total liabilities and stockholders' equity | $ | 3,181.4 |
| $ | 3,154.3 |
IAA, Inc.
Consolidated Statements of Cash Flows
(Amounts in Millions)
(Unaudited)
| Nine Months Ended | |||||||
| October 2, |
| September 26, | |||||
Operating activities |
|
|
| |||||
Net income | $ | 214.5 |
|
| $ | 221.1 |
| |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
| |||||
Depreciation and amortization |
| 77.9 |
|
|
| 61.5 |
| |
Operating lease expense |
| 132.0 |
|
|
| 113.0 |
| |
Stock-based compensation |
| 8.9 |
|
|
| 8.3 |
| |
Provision for credit losses |
| 0.8 |
|
|
| 0.7 |
| |
Loss on extinguishment of debt |
| — |
|
|
| 10.3 |
| |
Amortization of debt issuance costs |
| 2.1 |
|
|
| 2.6 |
| |
Deferred income taxes |
| (3.1 | ) |
|
| 6.9 |
| |
Change in contingent consideration liabilities |
| 4.9 |
|
|
| — |
| |
Other |
| 6.9 |
|
|
| (0.4 | ) | |
Changes in operating assets and liabilities: |
|
|
| |||||
Operating lease payments |
| (139.4 | ) |
|
| (107.2 | ) | |
Accounts receivable and other assets |
| 53.1 |
|
|
| (75.0 | ) | |
Accounts payable and accrued expenses |
| (43.2 | ) |
|
| 41.6 |
| |
Net cash provided by operating activities |
| 315.4 |
|
|
| 283.4 |
| |
|
|
|
| |||||
Investing activities |
|
|
| |||||
Acquisition of business, net of cash acquired |
| — |
|
|
| (4.0 | ) | |
Purchases of property, equipment and computer software |
| (135.9 | ) |
|
| (80.0 | ) | |
Proceeds from the sale of property and equipment |
| 38.8 |
|
|
| 0.4 |
| |
Other |
| (2.0 | ) |
|
| (2.0 | ) | |
Net cash used by investing activities |
| (99.1 | ) |
|
| (85.6 | ) | |
|
|
|
| |||||
Financing activities |
|
|
| |||||
Net increase in book overdrafts |
| 47.0 |
|
|
| — |
| |
Proceeds from debt issuance |
| — |
|
|
| 650.0 |
| |
Payments of long-term debt |
| (173.1 | ) |
|
| (774.0 | ) | |
Deferred financing costs |
| (0.1 | ) |
|
| (4.8 | ) | |
Finance lease payments |
| (8.9 | ) |
|
| (9.0 | ) | |
Purchase of treasury stock |
| (27.2 | ) |
|
| — |
| |
Issuance of common stock under stock plans |
| 0.4 |
|
|
| 0.6 |
| |
Proceeds from issuance of employee stock purchase plan shares |
| 1.1 |
|
|
| 1.2 |
| |
Tax withholding payments for vested RSUs |
| (7.1 | ) |
|
| (7.3 | ) | |
Payments of contingent consideration |
| (54.7 | ) |
|
| (1.3 | ) | |
Net cash used by financing activities |
| (222.6 | ) |
|
| (144.6 | ) | |
Effect of exchange rate changes on cash and restricted cash |
| (10.2 | ) |
|
| 0.1 |
| |
Net (decrease) increase in cash, cash equivalents and restricted cash |
| (16.5 | ) |
|
| 53.3 |
| |
Cash, cash equivalents and restricted cash at beginning of period |
| 162.4 |
|
|
| 232.8 |
| |
Cash, cash equivalents and restricted cash at end of period | $ | 145.9 |
|
| $ | 286.1 |
| |
Cash paid for interest, net | $ | 28.2 |
|
| $ | 27.1 |
| |
Cash paid for taxes, net | $ | 61.8 |
|
| $ | 68.3 |
|
Note Regarding Non-GAAP Financial Information
This press release includes the following non-GAAP financial measures: organic revenue growth, Adjusted SG&A expenses, Adjusted net income, Adjusted diluted earnings per share (“Adjusted EPS”), Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA"), organic Adjusted EBITDA, free cash flow, and leverage ratio (defined as Net Debt divided by latest twelve month’s (“LTM”) Adjusted EBITDA). These measures are reconciled to their most directly comparable GAAP financial measures as provided in “Reconciliation of GAAP to Non-GAAP Financial Information” below.
Each of the non-GAAP measures disclosed in this press release should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. Management uses these financial measures and key performance indicators to assess the Company’s financial operating performance, and we believe that these measures provide useful information to investors by offering additional ways of viewing the Company’s results, as noted below.
Reconciliation of GAAP to Non-GAAP Financial Information
IAA, Inc.
Reconciliation of Organic Revenue Growth
(Amounts in Millions)
(Unaudited)
| Three Months Ended |
| Nine Months Ended | |||||
|
|
|
| |||||
Revenue Growth | $ | 76.8 |
|
| $ | 286.1 |
| |
Add: |
|
|
| |||||
Acquisitions revenue |
| (36.5 | ) |
|
| (125.5 | ) | |
Foreign currency impact |
| 4.5 |
|
|
| 9.4 |
| |
Organic Revenue Growth | $ | 44.8 |
|
| $ | 170.0 |
|
IAA, Inc.
Reconciliation of Adjusted Selling, General and Administrative Expenses
(Amounts in Millions)
(Unaudited)
| Three Months Ended |
| Nine Months Ended | |||||||||
| October 2, |
| September 26, |
| October 2, |
| September 26, | |||||
|
|
|
|
|
|
|
| |||||
Selling, general and administrative expenses | $ | 51.0 |
| $ | 49.8 |
| $ | 152.8 |
| $ | 136.9 | |
Less non-GAAP adjustments: |
|
|
|
|
|
|
| |||||
Non-income, tax related accrual |
| — |
|
| — |
|
| — |
|
| 2.7 | |
Fair value adjustments related to contingent consideration |
| 1.9 |
|
| — |
|
| 4.9 |
|
| — | |
Retention / severance / restructuring |
| 0.5 |
|
| 1.3 |
|
| 0.6 |
|
| 1.9 | |
Professional fees |
| 0.4 |
|
| — |
|
| 1.7 |
|
| 1.0 | |
Acquisition costs |
| 1.2 |
|
| 1.7 |
|
| 1.7 |
|
| 1.8 | |
Adjusted selling, general and administrative expenses | $ | 47.0 |
| $ | 46.8 |
| $ | 143.9 |
| $ | 129.5 |
IAA, Inc.
Reconciliation of Adjusted Net Income
(Amounts in Millions, Except Per Share)
(Unaudited)
| Three Months Ended |
| Nine Months Ended | |||||||||||||
| October 2, |
| September 26, |
| October 2, |
| September 26, | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net Income | $ | 50.3 |
|
| $ | 65.7 |
|
| $ | 214.5 |
|
| $ | 221.1 |
| |
Add back non-GAAP adjustments |
|
|
|
|
|
|
| |||||||||
Loss on extinguishment of debt |
| — |
|
|
| — |
|
|
| — |
|
|
| 10.3 |
| |
Non-income, tax related accrual |
| — |
|
|
| — |
|
|
| — |
|
|
| 2.7 |
| |
Fair value adjustments related to contingent consideration |
| 1.9 |
|
|
| — |
|
|
| 4.9 |
|
|
| — |
| |
Retention / severance / restructuring |
| 0.5 |
|
|
| 1.3 |
|
|
| 0.6 |
|
|
| 1.9 |
| |
Gain on sale of assets |
| (0.1 | ) |
|
| (0.2 | ) |
|
| (0.7 | ) |
|
| (0.4 | ) | |
Professional fees |
| 0.4 |
|
|
| — |
|
|
| 1.7 |
|
|
| 1.0 |
| |
Acquisition costs |
| 1.2 |
|
|
| 1.7 |
|
|
| 1.7 |
|
|
| 1.8 |
| |
Non-operating foreign exchange loss/(gain) |
| 3.2 |
|
|
| 0.5 |
|
|
| 8.7 |
|
|
| (0.1 | ) | |
Amortization of acquired intangible assets |
| 5.4 |
|
|
| 3.4 |
|
|
| 16.8 |
|
|
| 9.8 |
| |
Non-GAAP adjustments to income before income taxes |
| 12.5 |
|
|
| 6.7 |
|
|
| 33.7 |
|
|
| 27.0 |
| |
|
|
|
|
|
|
|
| |||||||||
Income tax impact of Non-GAAP adjustments to income before income taxes |
| (2.0 | ) |
|
| (1.5 | ) |
|
| (6.8 | ) |
|
| (6.6 | ) | |
Discrete tax items |
| (0.9 | ) |
|
| (1.1 | ) |
|
| (9.5 | ) |
|
| (0.5 | ) | |
Non-GAAP adjustments to net income |
| 9.6 |
|
|
| 4.1 |
|
|
| 17.4 |
|
|
| 19.9 |
| |
Adjusted net income | $ | 59.9 |
|
| $ | 69.8 |
|
| $ | 231.9 |
|
| $ | 241.0 |
| |
|
|
|
|
|
|
|
| |||||||||
GAAP diluted EPS | $ | 0.38 |
|
| $ | 0.49 |
|
| $ | 1.60 |
|
| $ | 1.63 |
| |
EPS impact of Non-GAAP Adjustments |
| 0.07 |
|
|
| 0.03 |
|
|
| 0.13 |
|
|
| 0.15 |
| |
Adjusted diluted EPS | $ | 0.45 |
|
| $ | 0.52 |
|
| $ | 1.73 |
|
| $ | 1.78 |
|
Note: Amounts will not always recalculate due to rounding
IAA, Inc.
Reconciliation of Adjusted EBITDA and Organic Adjusted EBITDA
(Amounts in Millions)
(Unaudited)
| Three Months Ended |
| Nine Months Ended | |||||||||||||
| October 2, |
| September 26, |
| October 2, |
| September 26, | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net income | $ | 50.3 |
|
| $ | 65.7 |
|
| $ | 214.5 |
|
| $ | 221.1 |
| |
Add: income taxes |
| 17.4 |
|
|
| 19.8 |
|
|
| 54.0 |
|
|
| 71.4 |
| |
Add: interest expense, net |
| 13.3 |
|
|
| 11.1 |
|
|
| 36.0 |
|
|
| 46.0 |
| |
Add: depreciation & amortization |
| 25.2 |
|
|
| 21.2 |
|
|
| 77.9 |
|
|
| 61.5 |
| |
EBITDA |
| 106.2 |
|
|
| 117.8 |
|
|
| 382.4 |
|
|
| 400.0 |
| |
Add back non-GAAP adjustments |
|
|
|
|
|
|
| |||||||||
Non-income, tax related accrual |
| — |
|
|
| — |
|
|
| — |
|
|
| 2.7 |
| |
Fair value adjustments related to contingent consideration |
| 1.9 |
|
|
| — |
|
|
| 4.9 |
|
|
| — |
| |
Retention / severance / restructuring |
| 0.5 |
|
|
| 1.3 |
|
|
| 0.6 |
|
|
| 1.9 |
| |
Gain on sale of assets |
| (0.1 | ) |
|
| (0.2 | ) |
|
| (0.7 | ) |
|
| (0.4 | ) | |
Professional fees |
| 0.4 |
|
|
| — |
|
|
| 1.7 |
|
|
| 1.0 |
| |
Acquisition costs |
| 1.2 |
|
|
| 1.7 |
|
|
| 1.7 |
|
|
| 1.8 |
| |
Non-operating foreign exchange loss/(gain) |
| 3.2 |
|
|
| 0.5 |
|
|
| 8.7 |
|
|
| (0.1 | ) | |
Adjusted EBITDA |
| 113.3 |
|
|
| 121.1 |
|
|
| 399.3 |
|
|
| 406.9 |
| |
Currency movements |
| (0.1 | ) |
|
| — |
|
|
| — |
|
|
| — |
| |
Acquisitions EBITDA |
| 0.4 |
|
|
| — |
|
|
| (10.2 | ) |
|
| — |
| |
Organic Adjusted EBITDA | $ | 113.6 |
|
| $ | 121.1 |
|
| $ | 389.1 |
|
| $ | 406.9 |
|
Note: Amounts will not always recalculate due to rounding
IAA, Inc.
Reconciliation of Adjusted LTM EBITDA
(Amounts in millions)
(Unaudited)
| Quarter Ended |
| LTM Ended | ||||||||||||||||
| 1/2/22 |
| 4/3/22 |
| 7/3/22 |
| 10/2/22 |
| 10/2/22 | ||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||
Net income | $ | 73.3 |
| $ | 81.5 |
|
| $ | 82.7 |
|
| $ | 50.3 |
|
| $ | 287.8 |
| |
Add: income taxes |
| 22.2 |
|
| 26.5 |
|
|
| 10.1 |
|
|
| 17.4 |
|
|
| 76.2 |
| |
Add: interest expense, net |
| 11.7 |
|
| 11.2 |
|
|
| 11.5 |
|
|
| 13.3 |
|
|
| 47.7 |
| |
Add: depreciation & amortization |
| 25.0 |
|
| 26.1 |
|
|
| 26.6 |
|
|
| 25.2 |
|
|
| 102.9 |
| |
EBITDA |
| 132.2 |
|
| 145.3 |
|
|
| 130.9 |
|
|
| 106.2 |
|
|
| 514.6 |
| |
Add back non-GAAP adjustments |
|
|
|
|
|
|
|
|
| ||||||||||
Fair value adjustments related to contingent consideration |
| 2.3 |
|
| 1.8 |
|
|
| 1.2 |
|
|
| 1.9 |
|
|
| 7.2 |
| |
Retention / severance / restructuring |
| 0.4 |
|
| 0.1 |
|
|
| — |
|
|
| 0.5 |
|
|
| 1.0 |
| |
Loss / (Gain) on sale of assets |
| 0.3 |
|
| (0.2 | ) |
|
| (0.4 | ) |
|
| (0.1 | ) |
|
| (0.4 | ) | |
Acquisition costs |
| 4.8 |
|
| 0.5 |
|
|
| — |
|
|
| 1.2 |
|
|
| 6.5 |
| |
Professional fees |
| — |
|
| 0.4 |
|
|
| 0.9 |
|
|
| 0.4 |
|
|
| 1.7 |
| |
Non-operating foreign exchange loss |
| 0.4 |
|
| 1.9 |
|
|
| 3.6 |
|
|
| 3.2 |
|
|
| 9.1 |
| |
Adjusted EBITDA | $ | 140.4 |
| $ | 149.8 |
|
| $ | 136.2 |
|
| $ | 113.3 |
|
| $ | 539.7 |
|
Note: Amounts will not always recalculate due to rounding
IAA, Inc.
Reconciliation of Net Debt
(Amounts in Millions)
(Unaudited)
|
| October 2, | |
Term Loan |
| $ | 641.9 |
Senior Notes |
|
| 500.0 |
Capital Leases |
|
| 25.5 |
Total Debt |
|
| 1,167.4 |
Less: Cash |
|
| 145.9 |
Net Debt |
| $ | 1,021.5 |
IAA, Inc.
Reconciliation of Free Cash Flow
(Amounts in Millions)
(Unaudited)
|
| Three Months Ended |
| Nine Months Ended | ||||||||||||
|
| October 2, |
| September 26, |
| October 2, |
| September 26, | ||||||||
|
|
|
|
|
|
|
|
| ||||||||
Net cash provided by operating activities |
| $ | 85.1 |
|
| $ | 32.7 |
|
| $ | 315.4 |
|
| $ | 283.4 |
|
Proceeds from the sale of property and equipment |
|
| 0.1 |
|
|
| — |
|
|
| 38.8 |
|
|
| 0.4 |
|
Less: Purchases of property, equipment and computer software |
|
| (60.8 | ) |
|
| (22.2 | ) |
|
| (135.9 | ) |
|
| (80.0 | ) |
Free cash flow |
| $ | 24.4 |
|
| $ | 10.5 |
|
| $ | 218.3 |
|
| $ | 203.8 |
|
View source version on businesswire.com:https://www.businesswire.com/news/home/20221107005390/en/
CONTACT: Media Inquiries:
Jeanene O’Brien
SVP Marketing and Communications
jobrien@iaai.com | (708) 492-7328
Investor Inquiries:
Farah Soi/Caitlin Churchill
ICR
IAA_ICR@icrinc.com| (203) 682-8200
KEYWORD: ILLINOIS UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: SOFTWARE OTHER RETAIL ONLINE RETAIL INTERNET OFF-ROAD TRUCKS & SUVS FLEET MANAGEMENT ELECTRONIC COMMERCE GENERAL AUTOMOTIVE TECHNOLOGY AFTERMARKET AUTOMOTIVE RETAIL OTHER AUTOMOTIVE
SOURCE: IAA, Inc.
Copyright Business Wire 2022.
PUB: 11/07/2022 06:31 AM/DISC: 11/07/2022 06:32 AM
http://www.businesswire.com/news/home/20221107005390/en