OPENLANE(KAR) - 2024 Q4 - Annual Report

Financial Performance - Total operating revenues for the year ended December 31, 2024, were $1,788.5 million, an increase of 5% from$ 1,695.7 million in 2023[194]. - The company recorded a net income of $109.9 million for the year ended December 31, 2024, compared to a net loss of$ 154.1 million in 2023[193]. - Income from continuing operations for the year ended December 31, 2024, was $109.9 million, compared to a loss of$ 154.8 million in 2023[335]. - Adjusted EBITDA for 2024 was $293.4 million, an increase from$ 272.0 million in 2023, reflecting a year-over-year growth of approximately 7.5%[335]. - Net cash provided by operating activities from continuing operations was $292.8 million in 2024, up from$ 237.0 million in 2023, indicating a 23.5% increase[337]. Revenue Breakdown - Auction fees increased to $443.8 million in 2024 from$ 395.3 million in 2023, reflecting a growth of 12%[193]. - Service revenue decreased to $586.6 million in 2024 from$ 619.7 million in 2023, a decline of 5%[193]. - Total Marketplace revenue increased by $105.7 million, or 8%, to$ 1,357.4 million for the year ended December 31, 2024, compared to $1,251.7 million in 2023, driven by a 9% increase in the number of vehicles sold[210]. - Gross profit from the Marketplace segment rose by$ 25.3 million, or 7%, to $393.4 million for the year ended December 31, 2024, compared to$ 368.1 million in 2023[215]. - Purchased vehicle sales increased by $90.3 million, or 38%, to$ 327.0 million for the year ended December 31, 2024, attributed to an increase in purchased vehicles sold in Europe[214]. Expenses and Costs - Total operating expenses decreased to $1,606.3 million in 2024 from$ 1,831.5 million in 2023, a reduction of 12%[193]. - Interest expense decreased to $21.8 million in 2024, down 13% from$ 25.2 million in 2023[200]. - Selling, general and administrative expenses decreased by $0.8 million, or 2%, to$ 49.0 million for the year ended December 31, 2024, mainly due to decreases in IT costs and stock-based compensation[231]. - Cost of services for the Finance segment increased by $1.5 million, or 2%, to$ 67.4 million for the year ended December 31, 2024, primarily due to increases in professional fees, compensation, and travel expenses[230]. Financial Position and Liquidity - Cash and cash equivalents rose to $143.0 million from$ 93.5 million year-over-year[309]. - Amounts available under the Revolving Credit Facilities increased significantly to $397.9 million from$ 133.3 million[309]. - The company had $0.0 million drawn on the Revolving Credit Facilities as of December 31, 2024, compared to$ 137.0 million in the previous year[317]. - The Consolidated Senior Secured Net Leverage Ratio was negative as of December 31, 2024, indicating a strong liquidity position[320]. - The company has committed liquidity of $2.0 billion for U.S. finance receivables as of December 31, 2024[326]. Tax and Impairment - The effective tax rate for the year ended December 31, 2024, was 30.4%, compared to -5.7% in 2023, influenced by goodwill and other intangibles impairment charges[203]. - Goodwill impairment charges totaled$ 218.9 million for the U.S. Dealer-to-Dealer reporting unit and $6.4 million for the Europe reporting unit in 2023[197]. - The company recorded non-cash goodwill impairment charges totaling$ 218.9 million related to the U.S. Dealer-to-Dealer reporting unit and $6.4 million related to the Europe reporting unit in 2023[239]. Audit and Compliance - OPENLANE, Inc. reported consolidated financial statements for the years ended December 31, 2024, 2023, and 2022, indicating a fair presentation of financial position[374]. - The audit opinion expressed by KPMG LLP confirmed the effectiveness of the Company's internal control over financial reporting as of December 31, 2024[375]. - The report emphasizes the importance of internal controls in financial reporting, as assessed by the auditor[375]. - The company adheres to U.S. generally accepted accounting principles in its financial reporting[374].