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Financial Data and Key Metrics Changes - KAR Global generated $535 million in revenue for Q3 2021, a decline of 10% from Q3 2020 [8] - Total gross profit was $222 million, representing 50.1% of revenue, excluding purchased vehicles [8] - Adjusted EBITDA was $96.6 million, with cash generated from operations amounting to $57 million [9] - Gross profit per vehicle sold in the ADESA segment was $274, which is 10% higher than Q3 2020 [10][36] - SG&A expenses for the quarter were $134 million, with ADESA segment SG&A at $126 million, down $14 million from Q1 2021 [11] Business Line Data and Key Metrics Changes - ADESA facilitated the sale of 586,000 vehicles, down 33% year-over-year, with commercial volume down 51% [9] - Dealer consigned volume increased by 20%, totaling 274,000 vehicles sold in Q3 2021 [17] - Digital dealer-to-dealer platforms sold 118,000 vehicles, a 105% increase compared to Q3 2020 [18] - AFC had 351,000 loan transactions, an 8% increase year-over-year, with revenue per loan transaction up 20% [12][38] Market Data and Key Metrics Changes - Commercial seller volumes were down 51% compared to Q3 2020, primarily due to disruptions in new vehicle production [14] - Repossession volumes are stable at about 70% of normal levels, indicating potential for recovery [15] - The average selling price for vehicles in various segments increased, with commercial off-premise at $21,500 compared to $19,400 in Q3 2020 [34] Company Strategy and Development Direction - The company is focused on reducing its cost structure to adapt to a more digital marketplace, with an SG&A opportunity of at least $30 million identified [26][23] - The acquisition of CARWAVE is expected to enhance the digital dealer-to-dealer business and strengthen market presence [19][20] - The company anticipates a gradual recovery in commercial seller volumes, with expectations for improvement in 2023 and beyond [16] Management's Comments on Operating Environment and Future Outlook - Management believes the company is at the bottom of the volume challenges, with expectations for gradual improvement [30] - The current supply constraints are expected to persist through the first half of next year, with a small improvement anticipated in the second half [16] - Management remains cautious about providing guidance until visibility into vehicle supply improves [29] Other Important Information - The company welcomed Sanjeev Mehra to the Board of Directors, bringing valuable industry knowledge [32] - The total leverage ratio is currently at 3.2x adjusted EBITDA, with a target of 3x or less [44] Q&A Session Summary Question: Thoughts on CARWAVE acquisition and network effect - Management believes the network effect is significant and that the acquisition is additive rather than duplicative, enhancing market presence [46][48] Question: Maintaining or gaining market share - Management is confident in maintaining or potentially increasing market share as commercial volumes recover, supported by strong customer relationships [52][54] Question: Update on repossession activity - Repossession volumes are currently at 70% of normal, with potential for recovery independent of new vehicle production [56] Question: Coverage of franchise dealers in the U.S. - Management confirmed strong nationwide coverage of franchise dealers in the U.S. and Canada through digital platforms [60][61] Question: Impact of off-lease vehicles and leasing expectations - Management expects a shift in dealer behavior regarding off-lease vehicles and anticipates leasing penetration to remain strong despite lower overall vehicle sales [64][70]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-34568 KAR Auction Services, Inc. (Exact name of Registrant as specified in its charter) Delaware 20-8744739 (State or other jurisdiction of incorporat ...

Second Quarter 2021 Earnings Slides August 3, 2021 Forward-Looking Statements This presentation includes forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward looking statements are based on management's current expectations, are not guarantees of future performance and are subject to certain risks, trends, and uncertainties that could cause actual results to differ materially from those projected, expressed or implied by such forward-lookin ...

KAR Auction Services, Inc. (NYSE:KAR) Q2 2021 Earnings Conference Call August 4, 2021 8:30 AM ET Company Participants Mike Eliason - Treasurer and Vice President, Investor Relations Peter Kelly - Chief Executive Officer Eric Loughmiller - Chief Financial Officer Conference Call Participants Ryan Brinkman - JPMorgan Craig Kennison - Baird Andrew Ryan - Stephens Bank Bret Jordan - Jefferies Bob Labick - CJS Securities Stephanie Moore - Truist Ali Faghri - Guggenheim Operator Good day and thank you for standin ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Table of Contents (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-34568 KAR Auction Services, Inc. (Exact name of Registr ...

KAR Auction Services, Inc. (NYSE:KAR) Q1 2021 Results Conference Call May 5, 2021 8:30 AM ET Company Participants Mike Eliason - Treasurer and VP, IR Jim Hallett - Executive Chairman Peter Kelly - CEO Eric Loughmiller - CFO Conference Call Participants Ryan Brinkman - JP Morgan John Murphy - Bank of America Craig Kennison - Baird Daniel Imbro - Stephens Inc. Bob Labick - CJS Securities Operator Ladies and gentlemen, thank you for standing by, and welcome to the KAR Auction Services Quarter 1 2021 Earnings C ...

First Quarter 2021 Earnings Slides May 4, 2021 Forward-Looking Statements This presentation includes forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward looking statements are based on management's current expectations, are not guarantees of future performance and are subject to certain risks, trends, and uncertainties that could cause actual results to differ materially from those projected, expressed or implied by such forward-looking st ...

Financial Performance - Total revenues for the three months ended March 31, 2021, were $581.6 million, a decrease of 10% compared to $645.5 million for the same period in 2020[104] - Net income for the three months ended March 31, 2021, was $50.9 million, significantly up from $2.8 million in the same period of 2020[104] - For the three months ended March 31, 2021, total revenue from ADESA decreased by $51.2 million, or 9%, to $515.8 million compared to $567.0 million for the same period in 2020[116] - The number of vehicles sold decreased by 13%, with on-premise vehicle sales down by 25% and off-premise vehicle sales up by 3%[117] - Gross profit for ADESA increased by $2.6 million, or 1%, to $198.9 million, representing 38.6% of revenue, compared to 34.6% for the same period in 2020[119] - AFC revenue decreased by $12.7 million, or 16%, to $65.8 million, primarily due to a 17% decrease in loan transactions[123] - Cash flow from operations for the three months ended March 31, 2021, was $164.5 million, a significant improvement compared to $(49.2) million for the same period in 2020[129] - The company reported a net income of $50.9 million for the three months ended March 31, 2021, with Adjusted EBITDA of $123.2 million[151] - Adjusted EBITDA for the three months ended March 31, 2021, was $123.2 million, an increase from $67.5 million in the same period of 2020[152] - Operating cash flow was $164.5 million for the three months ended March 31, 2021, compared to cash used of $49.2 million for the same period in 2020[153] Expenses and Costs - Auction fees decreased to $235.5 million from $255.3 million, while service revenue fell to $187.6 million from $236.2 million[104] - Selling, general and administrative expenses for ADESA decreased by $12.2 million, or 8%, to $140.2 million, primarily due to reductions in various expense categories[121] - Interest expense decreased by $7.1 million, or 19%, to $30.9 million due to a lower average interest rate and reduced corporate debt[107] - The provision for credit losses decreased to 1.0% of average managed receivables for the three months ended March 31, 2021, down from 3.3% for the same period in 2020[125] Market and Operational Insights - The company expects the total addressable market for dealer-to-dealer transactions to expand to 15 million units from approximately 5 million units in 2019[97] - The COVID-19 pandemic has caused significant volatility and uncertainty in the whole car auction industry, impacting future volume estimates[97] - The company implemented various measures to mitigate the impact of COVID-19, including suspending non-essential services and temporarily halting quarterly dividends[89] - The company acquired Auction Frontier, LLC for $80 million in cash, with an additional $15 million contingent on certain terms, enhancing its auction technology capabilities[158] Cash and Liquidity - As of March 31, 2021, the company had $180.4 million in available cash held by foreign subsidiaries, with minimal expected taxes upon repatriation[132] - The company believes its liquidity sources are sufficient to meet operating needs and capital requirements for the foreseeable future[141] - The company managed total finance receivables of $1,984.4 million as of March 31, 2021, an increase from $1,911.0 million at December 31, 2020[145] - The company had $935.7 million outstanding on Term Loan B-6 as of March 31, 2021, with an interest rate of 2.38%[136] - The company has a $950 million Term Loan B-6 and a $325 million Revolving Credit Facility, with no borrowings outstanding on the Revolving Credit Facility as of March 31, 2021[137] Foreign Currency and Interest Rate Exposure - Fluctuations in foreign currency exchange rates contributed an increase of $5.6 million in revenue from the European exchange rate and $3.8 million from the Canadian exchange rate[111] - Foreign currency losses on intercompany loans were approximately $2.2 million for the three months ended March 31, 2021, compared to $0.4 million in 2020[163] - A hypothetical 100 basis point increase in short-term rates would have resulted in an increase in interest expense of approximately $1.1 million for the three months ended March 31, 2021[166] - The company entered into three pay-fixed interest rate swaps with an aggregate notional amount of $500 million, bearing a weighted average interest rate of 1.44%[165] - The interest rate swaps have a five-year term, maturing on January 23, 2025[165] - A 1% change in the month-end Canadian exchange rate for Q1 2021 would have impacted foreign currency losses on intercompany loans by $0.9 million and net income by $0.6 million[163] - Currency exposure from U.K., Continental Europe, and Mexican operations is not material to the results of operations[163]

Q4 2020 & Annual Earnings Slides February 16, 2021 Forward-Looking Statements This presentation includes forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward looking statements are based on management's current expectations, are not guarantees of future performance and are subject to certain risks, trends, and uncertainties that could cause actual results to differ materially from those projected, expressed or implied by such forward-lookin ...