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IAA (IAA)

IAA, Inc. is a leading global digital 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. Headquartered near Chicago in Westchester, Illinois, IAA has nearly 4,000 employees and more than 200 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.

Company profile

Ticker
IAA
Exchange
CEO
John Kett
Employees
Location
Fiscal year end
Former names
IAA Spinco Inc.
SEC CIK
Subsidiaries
Auto Disposal Systems, Inc. • Automotive Recovery Services, Inc. • Axle Holdings Acquisition Company LLC • Axle Holdings, Inc. • DDI MVS Group, LLC • Decision Dynamics, LLC • IAA Acquisition Corp. • IAA Holdings, Inc. • IAA Services, Inc. • Impact Texas, LLC ...
IRS number
831030538

IAA stock data

Calendar

9 Aug 22
1 Oct 22
29 Dec 22
Quarter (USD) Jul 22 Apr 22 Jan 22 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Jan 22 Dec 20 Dec 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 137.6M 137.6M 137.6M 137.6M 137.6M 137.6M
Cash burn (monthly) (no burn) 12.04M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) n/a 35.63M n/a n/a n/a n/a
Cash remaining n/a 101.97M n/a n/a n/a n/a
Runway (months of cash) n/a 8.5 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
29 Jul 22 Sidney Peryar Common Stock Payment of exercise Dispose F No No 37.73 150 5.66K 26,131.527
29 Jul 22 John W Kett Common Stock Payment of exercise Dispose F No No 37.73 301 11.36K 177,527.65
29 Jul 22 Maju Abraham Common Stock Payment of exercise Dispose F No No 37.73 115 4.34K 15,696
29 Jul 22 Timothy J. O'Day Common Stock Payment of exercise Dispose F No No 37.73 243 9.17K 39,098
21 Jul 22 Christopher Carlson Common Stock Payment of exercise Dispose F No No 37.14 98 3.64K 7,075.796
52.4% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 325 334 -2.7%
Opened positions 38 56 -32.1%
Closed positions 47 80 -41.3%
Increased positions 115 121 -5.0%
Reduced positions 121 115 +5.2%
13F shares Current Prev Q Change
Total value 4.38B 5.11B -14.4%
Total shares 133.52M 132.8M +0.5%
Total puts 1.16M 1.45M -19.9%
Total calls 3.67M 5.06M -27.4%
Total put/call ratio 0.3 0.3 +10.4%
Largest owners Shares Value Change
Vanguard 12.25M $401.3M +0.5%
BLK Blackrock 11.29M $370.12M -1.3%
Cooke & Bieler 7.77M $254.68M +4.7%
Atlanta Capital Management Co L L C 5.8M $190.21M -0.5%
ATAC Neuberger Berman 5.63M $184.46M +45.5%
Brown Advisory 4.65M $152.45M +12.4%
JPM JPMorgan Chase & Co. 4.31M $141.3M +1.4%
Discerene 4.25M $139.23M +14.5%
Mawer Investment Management 4.03M $132.14M +0.3%
STT State Street 3.53M $115.66M +0.8%
Largest transactions Shares Bought/sold Change
Melvin Capital Management 0 -5.48M EXIT
Marshall Wace 2.7M +1.79M +195.6%
ATAC Neuberger Berman 5.63M +1.76M +45.5%
Royce & Associates 1.49M +1.22M +457.8%
JHG Janus Henderson 45.38K -1.11M -96.1%
Adage Capital Partners GP, L.L.C. 1.5M +1.1M +275.0%
First Manhattan 1.67M -1.01M -37.8%
Canada Pension Plan Investment Board 2.27M -1M -30.7%
London Co Of Virginia 884.11K +884.11K NEW
Burgundy Asset Management 799.9K +705.56K +747.9%

Financial report summary

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Competition
Copart
Risks
  • Our business is subject to risks arising from epidemic and pandemic diseases, such as the COVID-19 illness. The COVID-19 pandemic and measures intended to reduce its spread has affected, and may continue to, adversely affect our business, results of operations and financial condition.
  • Our business and operating results would be adversely affected due to: loss of one or more significant suppliers, reduction in significant volume from suppliers, an adverse change in our supplier relationships, or a disruption to our supply of damaged, total loss and low-value vehicles.
  • Our business and operating results would be adversely affected if we are unable to meet or exceed our buyer customers’ demand and expectations or due to a disruption in demand of damaged, total loss and low-value vehicles.
  • If our facilities lack the capacity to accept additional vehicles, then our relationships with insurance companies or other vehicle suppliers could be adversely affected.
  • We may be unable to keep existing facilities or open new facilities in desirable locations and on favorable terms, which could materially and adversely affect our results of operations.
  • We may not be successful in the implementation of our business strategy or we may improperly align new strategies with our vision, which could lead to the misapplication of our resources.
  • 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 fail to identify, manage, complete and integrate acquisitions, our operating results, financial condition and growth prospects could be adversely affected.
  • Weather-related and other events beyond our control may adversely impact operations.
  • An increase in the number of damaged and total loss vehicles we purchase could adversely affect our profitability.
  • If we fail to attract and retain key personnel, have inadequate succession planning, or manage labor shortages, we may not be able to execute our business strategies and our financial results could be negatively affected.
  • A significant change in used-vehicle prices could impact the proceeds and revenue from the sale of damaged and total loss vehicles.
  • We are partially self-insured for certain losses.
  • We have a material amount of goodwill which, if it becomes impaired, would result in a reduction in our net income.
  • We assume the settlement risk for vehicles sold through our marketplaces.
  • 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. Also, 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.
  • Significant disruptions of information technology systems, infrastructure and business information could adversely affect our business and reputation.
  • Cyber attacks, including breaches of information technology systems and other cybersecurity incidents, could cause interruptions, malfunctions or other failures that could materially adversely affect our business and reputation and create data security risks.
  • Our business is exposed to risks associated with online commerce security and credit card fraud.
  • Compliance with U.S. and global privacy and data security requirements could result in additional costs and liabilities to us or inhibit our ability to collect and 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.
  • Changes in laws affecting the import and export of damaged and total loss vehicles may have an adverse effect on our business and financial condition.
  • We are subject to certain governmental regulations, including vehicle brokerage and auction laws and currency reporting obligations. Our business is subject to risks related to litigation and regulatory actions.
  • Environmental, health and safety risks could adversely affect our operating results and financial condition.
  • A portion of our net income is derived from our international operations, primarily Canada and the United Kingdom, 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.
  • The separation and distribution agreement (the "Separation Agreement") that we entered into with KAR limits our ability to compete in certain markets for a period of time following the Separation, and in certain instances, requires that we make revenue and profit sharing payments to KAR related to specific customer segments.
  • If the Separation and Distribution fail to qualify as a tax-free transaction for U.S. federal income tax purposes, then IAA, KAR and KAR’s stockholders could be subject to significant tax liability or tax indemnity obligations.
  • We may have received better terms from unaffiliated third parties than the terms we receive in our agreements with KAR.
  • 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.
Management Discussion
  • United States service revenues increased by $21.9 million due to an increase in revenue per unit of 11%, which primarily resulted from higher average selling prices due to increased buyer participation, enhanced product and service offerings and higher used car prices. This increase was partially offset by a lower volume of vehicles sold, which decreased by 5% primarily due to the previous loss of significant volume from a single vehicle supplier, partially offset by volume gains from other vehicle suppliers.
  • International service revenues increased by $12.2 million due to incremental revenue of $5.6 million from the SYNETIQ acquisition, and a higher volume of vehicles sold, which increased by 23% primarily due to higher miles driven in Canada. These increases were partially offset by a decrease in revenue per unit of 1% mainly due to a change in mix of vehicles sold.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Avg
New words: anniversary, buying, chain, earlier, elevated, environment, extreme, FDII, stability, supplier, supply, uncertainty
Removed: amortize, assignment, distribution, KAR, online, separation