OPENLANE(US:KAR)2024-11-06 21:15Financial Performance - Consolidated income from continuing operations for Q3 2024 was $28.4 million, with Marketplace contributing $4.8 million and Finance $23.6 million[2]. - Adjusted EBITDA for Q3 2024 reached $74.5 million, with Marketplace at $35.8 million and Finance at $38.7 million[2]. - For the nine months ended September 30, 2024, consolidated income from continuing operations was $57.6 million, with Marketplace at $(24.2) million and Finance at $81.8 million[5]. - The company reported a net income of $28.4 million for Q3 2024, with a total EBITDA of $100.2 million[9]. - For the nine months ended September 30, 2023, the consolidated income from continuing operations was $(168.4) million, with Marketplace at $(259.8) million and Finance at $91.4 million[7]. - The company incurred $250.8 million in goodwill and other intangibles impairment for the nine months ended September 30, 2023[7]. - The company expects continued growth in Adjusted EBITDA, with a total of $220.7 million for the nine months ended September 30, 2024[5]. Revenue and Profitability - Revenue for the three months ended September 30, 2024, was $448.4 million, an increase of 8% compared to $416.3 million for the same period in 2023[12]. - Total revenues for the nine months ended September 30, 2024, reached $1,296.5 million, reflecting a 3% increase from $1,253.8 million in the prior year[19]. - Gross profit for the three months ended September 30, 2024, was $196.4 million, slightly down from $200.3 million in the same period of 2023[12]. - Operating profit for the three months ended September 30, 2024, was $73.2 million, compared to $66.5 million for the same period in 2023[12]. - Gross profit for the nine months increased by $3.4 million, or 1%, to $347.2 million, with gross profit margin at 34.4% of revenue[44]. Expenses and Costs - Total addbacks for Adjusted EBITDA in Q3 2024 amounted to $(25.7) million, primarily due to securitization interest deductions of $(27.9) million[2]. - Non-cash stock-based compensation for Q3 2024 was $4.1 million, contributing to the overall Adjusted EBITDA[2]. - Selling, general and administrative expenses decreased by $7.1 million, or 7%, to $87.7 million, mainly due to lower information technology costs and professional fees[38]. - Selling, general and administrative expenses decreased by $0.9 million, or 7%, to $11.7 million for the three months ended September 30, 2024[54]. Tax and Valuation - The effective tax rate for the three months ended September 30, 2024, was 31.6%, down from 50.0% in the same period of 2023[16]. - The company recorded a valuation allowance against the U.S. net deferred tax asset of $42.9 million as of September 30, 2024[17]. Segment Performance - Total Marketplace revenue increased by $37.7 million, or 12%, to $354.3 million for the three months ended September 30, 2024, compared to $316.6 million for the same period in 2023[31]. - For the nine months ended September 30, 2024, total Marketplace revenue increased by $51.6 million, or 5%, to $1,008.6 million[39]. - For the three months ended September 30, 2024, finance segment revenue decreased by $5.6 million, or 6%, to $94.1 million compared to $99.7 million for the same period in 2023[51]. - For the nine months ended September 30, 2024, finance segment revenue decreased by $8.9 million, or 3%, to $287.9 million compared to $296.8 million for the same period in 2023[56]. Credit and Loss Provisions - The provision for credit losses increased to 2.1% of average managed receivables for the three months ended September 30, 2024, up from 2.0% for the same period in 2023[52]. - The provision for credit losses increased to 2.2% of average managed receivables for the nine months ended September 30, 2024, up from 2.0% for the same period in 2023[57]. Cash Flow - Cash provided by operating activities for the nine months ended September 30, 2024, was $260.1 million, compared to $216.2 million for the same period in 2023[63]. - Cash used by financing activities for the nine months ended September 30, 2024, was $264.3 million, compared to $312.1 million for the same period in 2023[66].