RB (RBA)2024-02-23 12:30Financial Performance - GTV increased 160% year-over-year to $4.0 billion, including $2.2 billion from the acquisition of IAA, Inc. [4] - Total revenue rose 134% year-over-year to $1.0 billion, with $559.2 million attributed to the IAA acquisition [4] - Service revenue surged 197% year-over-year to $809.1 million, including $488.0 million from IAA [4] - Adjusted EBITDA increased 153% year-over-year to $307.5 million [4] - Net income available to common stockholders grew 65% year-over-year to $74.8 million [4] - Diluted adjusted earnings per share rose 21% year-over-year to $0.82 per share [4] - Operating income for Q4 2023 was $170.8 million, a 160% increase from $65.7 million in Q4 2022; annual operating income was $471.3 million, a slight increase of 4% from $453.5 million [28] - Net income for Q4 2023 was $84.2 million, an 85% increase from $45.4 million in Q4 2022; for the year, net income was $206.0 million, down 36% from $319.8 million [28] - Adjusted net income available to common stockholders for the year ended December 31, 2023, was $502.2 million, an 86% increase from $269.9 million in 2022 [40] - Adjusted EBITDA for Q4 2023 was $307.5 million, a 153% increase from $121.5 million in Q4 2022 [42] Growth Projections - The company projects full-year 2024 GTV growth between 1% and 4% [4] - The company anticipates continued growth opportunities following the acquisition of IAA, with a focus on integrating operations and realizing synergies [23] Revenue Breakdown - Automotive sector GTV for Q4 2023 reached $2.1 billion, a 4,177% increase year-over-year [7] - Total lots sold increased by 6% year-over-year to 786.8 thousand in Q4 2023, with automotive lots sold rising by 7% to 573.2 thousand [12] - Gross transaction value (GTV) surged 160% year-over-year to $4.0 billion, primarily due to the inclusion of $2.2 billion GTV from IAA [18] - Service revenue rose 197% year-over-year to $809.1 million, with $488.0 million attributed to IAA, and a pro forma increase of 14% [18] - Inventory sales revenue grew by 35% year-over-year, largely due to $71.2 million from IAA, but decreased by 10% on a pro forma basis [18] Expenses and Cash Flow - Operating expenses for Q4 2023 totaled $870.6 million, with adjusted operating expenses at $770.4 million [15] - Operating Free Cash Flow (OFCF) for 2023 was $230.4 million, a decrease of 59% compared to $556.6 million in 2022 [49] - Cash provided by operating activities increased to $544.0 million in 2023, up 17% from $463.1 million in 2022 [49] - Net capital spending in 2023 was $(313.6) million, a significant increase from $93.5 million in 2022, reflecting a 435% change [49] Assets and Liabilities - Cash and cash equivalents at the end of 2023 were $576.2 million, up from $494.3 million at the end of 2022 [29] - Total assets increased to $12,037.4 million in 2023 from $2,863.7 million in 2022, driven by significant acquisitions and growth in intangible assets [29] - Total debt increased to $3,089.5 million in 2023, a 406% increase from $610.6 million in 2022 [46] - Adjusted net debt rose to $2,513.3 million, a 2061% increase from $116.3 million in 2022 [46] Shareholder Returns - The company declared a quarterly cash dividend of $0.27 per common share, payable on March 1, 2024 [20] - The company reported a basic earnings per share of $0.41 for Q4 2023, unchanged from Q4 2022, while diluted earnings per share increased by 2% to $0.41 [28] Acquisition Impact - The company completed the acquisition of IAA, impacting cash flows and resulting in a net cash used in investing activities of $(3,108.3) million for 2023 [30] - Acquisition-related and integration costs for the year increased significantly to $216.1 million, a 479% rise from $37.3 million in 2022 [42] - Amortization of acquired intangible assets in 2023 was $76.0 million, including $67.6 million from IAA [55] - Acquisition-related and integration costs for 2023 totaled $46.3 million, primarily related to the acquisition of IAA [55]