CARMEL, Ind., Feb. 19, 2025 /PRNewswire/ — OPENLANE, Inc. (NYSE: KAR), today reported its fourth quarter and annual financial results for the period ended December 31, 2024.
“OPENLANE delivered positive fourth quarter and full-year 2024 results, driven by another strong quarter in our marketplace business,” said Peter Kelly, CEO. “The Marketplace grew year-over-year volume for the seventh straight quarter, including 15% growth in dealer volumes, and grew Adjusted EBITDA by an impressive 30%. Our customers are clearly responding to our unique offerings and our differentiated value proposition that delivers ease, speed and improved outcomes. We remain focused on our strategy – delivering the best marketplace, technology and customer experience, and are well positioned for continued growth.”
“OPENLANE’s consistent growth and financial performance clearly demonstrate the strong scalability characteristics of our asset-light, digital model,” said Brad Lakhia, Chief Financial Officer. “Our culture of innovation, growth and financial discipline increased revenue, reduced cost and delivered $293 million in Adjusted EBITDA. We will continue to lean into our marketplace go-to-market investments to drive growth while leveraging our leading, high-performing finance business.”
Fourth Quarter Highlights
Full Year Highlights
2025 Guidance
Annual
Guidance
Income from continuing operations (in millions)
$100 – $114
Adjusted EBITDA (in millions)
$290 – $310
Income from continuing operations per share – diluted *
$0.38 – $0.48
Operating adjusted net income from continuing operations per share – diluted
$0.90 – $1.00
*
The company uses the two-class method of calculating income from continuing operations per diluted share.
Under the two-class method, income from continuing operations is adjusted for dividends and undistributed
earnings (losses) to the holders of the Series A Preferred Stock, and the weighted average diluted shares do
not assume conversion of the preferred shares to common shares.
The December 2024 divestiture of the company’s automotive key business is reflected in the 2025 guidance.
Earnings guidance does not contemplate future items such as business development activities, strategic developments (such as restructurings, spin-offs or dispositions of assets or investments), contingent purchase price adjustments, significant expenses related to litigation, tax adjustments, adverse changes in the value of foreign currencies relative to the U.S. dollar, changes in applicable laws and regulations (including significant accounting and tax matters) and intangible impairments. 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. Operating adjusted net income from continuing operations per share excludes amortization expense associated with acquired intangible assets, as well as one-time charges, net of taxes. See reconciliations of the company’s guidance included below.
Earnings Conference Call Information
OPENLANE will be hosting an earnings conference call and webcast on Wednesday, February 19, 2025 at 5:00 p.m. ET. The call will be hosted by OPENLANE Chief Executive Officer Peter Kelly and Chief Financial Officer Brad Lakhia. The conference call may be accessed by calling 1-833-634-2155 and asking to join the OPENLANE call. A live webcast will be available at the investor relations section of corporate.openlane.com. Supplemental financial information for OPENLANE’s fourth quarter 2024 results is available at the investor relations section of corporate.openlane.com.
The archive of the webcast will be available following the call at the investor relations section of corporate.openlane.com for a limited time.
About OPENLANE
OPENLANE, Inc. (NYSE: KAR), provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. OPENLANE’s unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services. Our integrated marketplaces reduce risk, improve transparency and streamline transactions for customers around the globe. Headquartered in Carmel, Indiana, OPENLANE has employees across the United States, Canada, Europe, Uruguay and the Philippines. For more information and the latest OPENLANE news, visit corporate.openlane.com.
Forward-Looking Statements
Certain statements contained in this release include, and the company may make related oral, “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 (including but not limited to statements regarding our growth opportunities and strategies, industry outlook, competitive position, business and investment plans and initiatives, and 2025 financial guidance) may be forward-looking statements. Words such as “should,” “may,” “will,” “would,” “anticipate,” “expect,” “project,” “intend,” “contemplate,” “plan,” “believe,” “seek,” “estimate,” “assume,” “can,” “could,” “continue,” “of the opinion,” “confident,” “is set,” “is on track,” “outlook,” “target,” “position,” “predict,” “initiative,” “goal,” “opportunity” and similar expressions identify forward-looking statements. Such statements are based on management’s current assumptions, expectations and/or beliefs, are not guarantees of future performance and are subject to substantial risks, uncertainties and changes 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, but are not limited to, those discussed in the section entitled “Risk Factors” in the company’s annual and quarterly periodic reports, and in the company’s other filings and reports filed with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this release. The company undertakes no obligation to update any forward-looking statements.
OPENLANE, Inc.
Condensed Consolidated Statements of Income
(In millions) (Unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
Operating revenues
Auction fees
$ 112.0
$ 90.0
$ 443.8
$ 395.3
Service revenue
141.2
144.5
586.6
619.7
Purchased vehicle sales
95.6
60.2
327.0
236.7
Finance revenue
106.2
111.4
431.1
444.0
Total operating revenues
455.0
406.1
1,788.5
1,695.7
Operating expenses
Cost of services (exclusive of depreciation and amortization)
244.5
204.8
956.3
867.6
Finance interest expense
28.3
34.0
123.5
130.6
Provision for credit losses
12.1
17.2
54.3
59.2
Selling, general and administrative
99.7
101.4
408.6
421.8
Depreciation and amortization
23.0
25.3
95.2
101.5
Gain on sale of business
(31.6)
—
(31.6)
—
Goodwill and other intangibles impairment
—
—
—
250.8
Total operating expenses
376.0
382.7
1,606.3
1,831.5
Operating profit (loss)
79.0
23.4
182.2
(135.8)
Interest expense
4.6
5.3
21.8
25.2
Other expense (income), net
5.4
(3.1)
2.5
(15.6)
Loss on extinguishment of debt
—
—
—
1.1
Income (loss) from continuing operations before income taxes
69.0
21.2
157.9
(146.5)
Income taxes
16.7
7.6
48.0
8.3
Income (loss) from continuing operations
52.3
13.6
109.9
(154.8)
Income from discontinued operations, net of income taxes
—
0.7
—
0.7
Net income (loss)
$ 52.3
$ 14.3
$ 109.9
$ (154.1)
Net income (loss) per share – basic
Income (loss) from continuing operations
$ 0.29
$ 0.02
$ 0.46
$ (1.83)
Income from discontinued operations
—
—
—
0.01
Net income (loss) per share – basic
$ 0.29
$ 0.02
$ 0.46
$ (1.82)
Net income (loss) per share – diluted
Income (loss) from continuing operations
$ 0.29
$ 0.02
$ 0.45
$ (1.83)
Income from discontinued operations
—
—
—
0.01
Net income (loss) per share – diluted
$ 0.29
$ 0.02
$ 0.45
$ (1.82)
OPENLANE, Inc.
Condensed Consolidated Balance Sheets
(In millions) (Unaudited)
December 31,
2024
December 31,
2023
Cash and cash equivalents
$ 143.0
$ 93.5
Restricted cash
40.7
65.4
Trade receivables, net of allowances
248.2
291.8
Finance receivables, net of allowances
2,322.7
2,282.0
Other current assets
96.9
109.2
Total current assets
2,851.5
2,841.9
Goodwill
1,222.9
1,271.2
Customer relationships, net of accumulated amortization
117.7
136.1
Operating lease right-of-use assets
67.1
75.9
Property and equipment, net of accumulated depreciation
149.3
169.8
Intangible and other assets
213.8
231.4
Total assets
$ 4,622.3
$ 4,726.3
Current liabilities, excluding obligations collateralized by
finance receivables and current maturities of debt
$ 682.7
$ 692.3
Obligations collateralized by finance receivables
1,660.3
1,631.9
Current maturities of debt
222.5
154.6
Total current liabilities
2,565.5
2,478.8
Long-term debt
—
202.4
Operating lease liabilities
60.4
70.4
Other non-current liabilities
41.2
35.2
Temporary equity
612.5
612.5
Stockholders’ equity
1,342.7
1,327.0
Total liabilities, temporary equity and stockholders’ equity
$ 4,622.3
$ 4,726.3
OPENLANE, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions) (Unaudited)
Year Ended
December 31,
2024
2023
Operating activities
Net income (loss)
$ 109.9
$ (154.1)
Net income from discontinued operations
—
(0.7)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
95.2
101.5
Provision for credit losses
54.3
59.2
Deferred income taxes
1.7
(29.8)
Amortization of debt issuance costs
9.1
8.7
Stock-based compensation
14.7
16.5
Contingent consideration adjustment
—
1.3
Investment and note receivable impairment
—
10.3
