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KAR KAR Auction Services

KAR Auction Services, Inc. d/b/a KAR Global, provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. KAR Global's unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services, including the sale of nearly 3.1 million units valued at approximately $30 billion through its auctions in 2020. The Company's integrated physical, online and mobile marketplaces reduce risk, improve transparency and streamline transactions for customers in about 75 countries. Headquartered in Carmel, Indiana, KAR Global has employees across the United States, Canada, Mexico, Uruguay, U.K. and Europe.

Company profile

Ticker
KAR
Exchange
CEO
James Hallett
Employees
Incorporated
Location
Fiscal year end
Former names
KAR Holdings, Inc.
SEC CIK
Subsidiaries
ADESA, Inc. • ADESA Corporation, LLC • A.D.E. of Ark-La-Tex, Inc. • A.D.E. of Knoxville, LLC • ADESA Ark-La-Tex, LLC • ADESA Arkansas, LLC • ADESA Atlanta, LLC • ADESA Birmingham, LLC • ADESA California, LLC • ADESA Charlotte, LLC ...
IRS number
208744739

KAR stock data

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Calendar

4 Aug 21
17 Oct 21
31 Dec 21
Quarter (USD)
Jun 21 Mar 21 Dec 20 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 675.4M 675.4M 675.4M 675.4M 675.4M 675.4M
Cash burn (monthly) 45.37M 28.59M (positive/no burn) (positive/no burn) (positive/no burn) (positive/no burn)
Cash used (since last report) 162.54M 102.44M n/a n/a n/a n/a
Cash remaining 512.86M 572.96M n/a n/a n/a n/a
Runway (months of cash) 11.3 20.0 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
30 Sep 21 Jacoby Stefan Common Stock Grant Acquire A No No 16.39 1,297 21.26K 3,925
30 Sep 21 Smith Mary Ellen Common Stock Grant Acquire A No No 16.39 1,411 23.13K 21,138
30 Jun 21 Smith Mary Ellen Common Stock Grant Acquire A No No 17.55 1,243 21.81K 19,727
30 Jun 21 Jacoby Stefan Common Stock Grant Acquire A No No 17.55 1,211 21.25K 2,628

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

13F holders
Current Prev Q Change
Total holders 254 264 -3.8%
Opened positions 35 50 -30.0%
Closed positions 45 68 -33.8%
Increased positions 74 78 -5.1%
Reduced positions 99 89 +11.2%
13F shares
Current Prev Q Change
Total value 2.8B 3.34B -16.2%
Total shares 160.43M 159.56M +0.5%
Total puts 123.4K 484K -74.5%
Total calls 736.5K 481.9K +52.8%
Total put/call ratio 0.2 1.0 -83.3%
Largest owners
Shares Value Change
Ignition Acquisition 28.17M $480.28M 0.0%
BLK Blackrock 14.71M $258.09M -5.3%
Vanguard 11.63M $204.18M -3.5%
Wellington Management 8.89M $155.95M -30.2%
Cardinal Capital Management 6.23M $109.42M +7.0%
Snyder Capital Management L P 5.78M $101.46M +5.7%
American Century Companies 5.08M $89.13M +4.7%
Boston Partners 4.6M $80.6M +5.9%
Marathon Asset Management 4.12M $72.39M -4.9%
Paradice Investment Management 4.05M $71M +1810.3%
Largest transactions
Shares Bought/sold Change
Wellington Management 8.89M -3.85M -30.2%
Paradice Investment Management 4.05M +3.83M +1810.3%
Kornitzer Capital Management 0 -1.46M EXIT
FMR 1.12M +1.12M +249708.0%
JHG Janus Henderson 4.04M -892.61K -18.1%
BLK Blackrock 14.71M -829.6K -5.3%
Zuckerman Investment 768.03K +768.03K NEW
Two Sigma Advisers 1.45M +739.3K +104.3%
Schroder Investment Management 0 -613.37K EXIT
Two Sigma Investments 1.36M +592.29K +76.8%

Financial report summary

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Competition
CarmaxCarvana
Risks
  • We may not properly leverage or make the appropriate investment in technology advancements, which could result in the loss of any sustainable competitive advantage in products, services and processes.
  • If we are unable to successfully execute on our business strategy, if our strategy proves to be ineffective, or if we improperly align new strategies with our vision, our business, financial performance and growth could be adversely affected.
  • Unsuccessful implementation of business initiatives to reduce costs and align our business to our digital operating model, or unintended consequences of the implementation of such initiatives, may adversely affect our business.
  • We may be unable to meet our customers’ expectations, which could impact customer retention and adversely affect our operating results and financial condition.
  • If we fail to effectively identify, value, manage, complete and integrate acquisitions, our operating results, financial condition and growth prospects could be adversely affected.
  • Our expansion into markets outside the U.S. and our non-U.S. based operations subject us to unique operational, competitive and regulatory risks.
  • Significant disruptions of information technology systems could adversely affect our business and reputation.
  • Data security concerns relating to our technology or breaches of information technology systems, could adversely affect our business and reputation.
  • Compliance with U.S. and global privacy and data security requirements could result in additional costs and liabilities or inhibit our ability to collect, transmit and/or store data, and the failure to comply with such requirements could subject us to significant fines and penalties, which could adversely affect our business, financial condition and reputation.
  • Decreases in the supply of used vehicles coming to auction may impact auction sales volumes, which may adversely affect our revenues and profitability. In addition, a decrease in the number of used vehicles sold at on-premise marketplaces could adversely affect our revenue growth, operating results and financial condition.
  • Our business and operating results would be adversely affected if we lose one or more significant customers.
  • If we fail to attract and retain key personnel, or have inadequate succession planning, we may not be able to execute our business strategies and our financial results could be negatively affected.
  • Used vehicle prices impact fee revenue per unit and may impact the supply of used vehicles, loan losses at AFC and could adversely affect our profitability.
  • If our facilities lack the capacity to accept additional vehicles, then our relationships with vehicle suppliers could be adversely affected.
  • Adverse economic conditions may negatively affect our business and results of operations.
  • AFC is exposed to credit risk with our dealer borrowers, which could adversely affect our profitability and financial condition.
  • If we are unable to protect our intellectual property, the value of our brand and other intangible assets may be diminished, and our business may be adversely affected.
  • We rely on third-party technology for key components of our business, and if these or other third parties do not perform adequately or terminate their relationships with us, our business and results of operations could be harmed.
  • We may be subject to patent or other intellectual property infringement claims, which could have an impact on our business or operating results due to a disruption in our business operations, the incurrence of significant costs and other factors.
  • A portion of our net income is derived from our international operations, primarily Canada, which exposes us to foreign exchange risks that may impact our financial statements. In addition, increases in the value of the U.S. dollar relative to certain foreign currencies may negatively impact foreign buyer participation in our marketplaces.
  • Environmental, health and safety risks could adversely affect our operating results and financial condition.
  • We have a substantial amount of debt, which could impair our financial condition and adversely affect our ability to react to changes in our business.
  • Changes in interest rates or market conditions could adversely impact our profitability and business.
  • We assume the settlement risk for vehicles sold through our marketplaces.
  • We are subject to a complex framework of federal, state, local and foreign laws and regulations, including vehicle brokerage and auction laws and currency reporting obligations, which have in the past, and could in the future, subject us to claims, challenge our business model, or otherwise harm our business.
  • We are subject to risks associated with legal and regulatory proceedings. If the outcomes of these proceedings are adverse to us, it could have a material adverse effect on our business, financial condition and results of operations.
  • We are partially self-insured for certain losses.
  • We depend on the continued and uninterrupted service from our workforce.
  • We have a significant amount of goodwill and other intangible assets which, if they become impaired, would result in a reduction in our net income.
  • New accounting pronouncements or new interpretations of existing standards could require us to make adjustments to accounting policies that could adversely affect the financial statements.
  • If the IAA spin-off does not qualify as a tax-free transaction for U.S. federal income tax purposes, the Company and its stockholders could be subject to substantial tax liabilities.
  • We may be exposed to claims and liabilities as a result of the IAA spin-off, and IAA’s indemnification obligations may not fully protect us.
  • The market price and trading volume of our common stock may be volatile, which could result in rapid and substantial losses for our stockholders and could expose us to securities class action litigation.
  • The issuance of shares of our Series A Preferred Stock reduces the relative voting power of holders of our common stock, and the conversion and sale of those shares would dilute the ownership of such holders and may adversely affect the market price of our common stock.
  • Apax and the other holders of our Series A Preferred Stock may exercise influence over us.
  • Future offerings of debt or equity securities, which would rank senior to our common stock, may adversely affect the market price of our common stock.
  • The market price of our common stock could be negatively affected by sales of substantial amounts of our common stock in the public market.
  • Provisions in our amended and restated certificate of incorporation and by-laws, and of Delaware law, may prevent or delay an acquisition of us, which could decrease the trading price of our common stock.
  • You may not receive any future dividends on our common stock.
  • Our share repurchase program could affect the price of our common stock and increase volatility. In addition, it may be suspended or discontinued at any time, which could result in a decrease in the trading price of our common stock.
Management Discussion
  • Overview of Results of KAR Auction Services, Inc. for the Three Months Ended June 30, 2021 and 2020:
  • For the three months ended June 30, 2021, we had revenue of $585.4 million compared with revenue of $419.0 million for the three months ended June 30, 2020, an increase of 40%. Businesses acquired in the last twelve months accounted for an increase in revenue of $39.7 million or 7% of revenue. For a further discussion of revenues, gross profit and selling, general and administrative expenses, see the segment results discussions below.
  • Depreciation and amortization decreased $1.1 million, or 2%, to $45.4 million for the three months ended June 30, 2021, compared with $46.5 million for the three months ended June 30, 2020. The decrease in depreciation and amortization was primarily the result of fixed assets that have become fully depreciated and a reduction in assets placed in service.
Content analysis
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New words: center, check, deductible, degree, fewer, forecasted, forma, largely, length, license, lifted, preliminary, pro, reimposed, reimposition, relaxed, repossessed, royalty, shortage, slight, synergistic
Removed: auctioneer, audio, automated, began, disbursement, easing, evolving, imposition, interacting, introduce, live, mandated, operated, released, return, sequential, simulate, tighter, treat, varying, virtually, visual, workforce