|
|
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading symbol
|
Name of each exchange on which registered
|
||
|
|
|
Item 2.02
|
Results of Operations and Financial Condition.
|
Item 9.01
|
Financial Statements and Exhibits.
|
Exhibit No.
|
Exhibit Description
|
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
IAA, Inc.
|
|||
(Registrant)
|
|||
Date:
|
February 16, 2021
|
By:
|
/s/ Vance C. Johnston
|
Vance C. Johnston
|
|||
Executive Vice President, Chief Financial Officer
|
|||
(Principal Financial Officer)
|
Q4 Revenue Driven by Sequentially Recovering Volumes and Continued Strength in Revenue Per Unit
Revenue Performance and Benefits of Margin Expansion Plan Drive Increase in Profitability
WESTCHESTER, Ill.--(BUSINESS WIRE)--February 16, 2021--IAA, Inc. (NYSE: IAA) today announced its financial results for the fourth quarter and full year fiscal 2020, which ended December 27, 2020.
John Kett, Chief Executive Officer and President, stated, “We ended an unprecedented year with a fourth quarter return to overall revenue growth, as gradually recovering assignment and volume levels were accompanied by continued strength in revenue per unit. The challenges of this pandemic-impacted year have tested us all personally and professionally, but I could not be prouder of how the entire IAA team rose to these challenges. We executed against our priorities, delivering an improved experience for our buyers and sellers, in large part enabled by the accelerated rollout of our digital only platform and the strides we have made to launch new products, services, tools and functionality.”
Mr. Kett continued, “The work we have done to date has provided a strong foundation for growth in fiscal 2021 and beyond. We are on track with regards to our strategic growth initiatives, with our margin expansion plan a notable callout following the successful accelerated rollout of our Buyer Digital Transformation in fiscal 2020. While much of the macro backdrop remains uncertain given the ongoing pandemic, we continue to benefit from our company specific initiatives, and look forward to making further progress in fiscal 2021.”
Key Fourth Quarter and Full Year Measures: (Dollars in millions, except per share amounts) |
||||||
|
Quarter Ended |
Quarter Ended |
% Growth |
Year Ended |
Year Ended |
% Growth |
Total Revenues1 |
$383.5 |
$355.9 |
7.8% |
$1,384.9 |
$1,436.8 |
(3.6)% |
Net Income1 |
$64.1 |
$45.6 |
40.6% |
$194.8 |
$193.2 |
0.8% |
Adjusted Net Income1 |
$65.3 |
$50.1 |
30.3% |
$207.5 |
$216.9 |
(4.3)% |
Diluted EPS1 |
$0.47 |
$0.34 |
39.3% |
$1.44 |
$1.44 |
0.3% |
Adjusted Diluted EPS1 |
$0.48 |
$0.37 |
29.2% |
$1.54 |
$1.61 |
(4.6)% |
Adjusted EBITDA1 |
$115.8 |
$99.4 |
16.5% |
$398.5 |
$411.7 |
(3.2)% |
1Total Revenues and Adjusted EBITDA for the year ended December 29, 2019 include a benefit of $3.6 million and Net Income and Adjusted Net Income include a benefit of $2.7 million, or a $0.02 benefit to Diluted EPS and Adjusted Diluted EPS, related to a non-cash adjustment for certain revenue agreements.
Highlights for the Fourth Quarter Ended December 27, 2020:
Additional Highlights for the Year Ended December 27, 2020:
Other Financial Highlights as of December 27, 2020:
Please refer to the accompanying financial tables for a reconciliation of Net Debt, Leverage Ratio and Free Cash Flow to U.S. GAAP.
Outlook:
Fiscal 2021 will be a 53-week year, with an extra week during the fourth quarter. Given the continued uncertainties regarding the duration and severity of the COVID-19 pandemic, the Company is not providing a 2021 or long-term outlook at this time.
Conference Call Information:
A conference call to discuss the fourth quarter and fiscal 2020 financial results is scheduled for today, February 16, 2021, at 9:00 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to join a live audio webcast of the conference call. The webcast is available online at https://investors.iaai.com/.
A recorded replay of the conference call will be available within two hours of the conclusion of the call and can be accessed online at https://investors.iaai.com/ for one year.
About IAA, Inc.
IAA, Inc. (NYSE: IAA) is a leading global marketplace connecting vehicle buyers and sellers. Leveraging leading-edge technology and focusing on innovation, IAA’s unique platform facilitates the marketing and sale of total-loss, damaged and low-value vehicles for a full spectrum of sellers. Headquartered near Chicago in Westchester, Illinois, IAA has nearly 4,000 employees and more than 200 facilities throughout the U.S., Canada and the United Kingdom. IAA serves a global buyer base - located throughout over 170 countries - and a full spectrum of sellers, including insurers, dealerships, fleet lease and rental car companies, and charitable organizations. Buyers have access to multiple digital bidding and buying channels, innovative vehicle merchandising, and efficient evaluation services, enhancing the overall purchasing experience. IAA offers sellers a comprehensive suite of services aimed at maximizing vehicle value, reducing administrative costs, shortening selling cycle time and delivering the highest economic returns. For more information, visit IAAI.com and follow IAA on Facebook, Twitter, Instagram, YouTube and LinkedIn.
Forward-Looking Statements: Certain statements contained in this release include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, statements made that are not historical facts may be forward-looking statements and can be identified by words such as “should,” “may,” “will,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and similar expressions. In this release, such forward-looking statements include statements regarding expectations with respect to the COVID-19 pandemic on our business and plans regarding our growth strategies and margin expansion plan. Such statements are based on management’s current expectations, are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results projected, expressed or implied by these forward-looking statements. These risks and uncertainties include: uncertainties regarding the duration and severity of the COVID-19 pandemic, and the measures taken to reduce its spread, on our business and the economy generally; the loss of one or more significant vehicle seller customers or a reduction in significant volume from such sellers; our ability to meet or exceed customers’ demand and expectations; significant current competition and the introduction of new competitors or other disruptive entrants in our industry; the risk that our facilities lack the capacity to accept additional vehicles and our ability to obtain land or renew/enter into new leases at commercially reasonable rates; our ability to effectively maintain or update information and technology systems; our ability to implement and maintain measures to protect against cyberattacks and comply with applicable privacy and data security requirements; our ability to successfully implement our business strategies or realize expected cost savings and revenue enhancements, including from our margin expansion plan; business development activities, including acquisitions and integration of acquired businesses; our expansion into markets outside the U.S. and the operational, competitive and regulatory risks facing our non-U.S. based operations; our reliance on subhaulers and trucking fleet operations; changes in used-vehicle prices and the volume of damaged and total loss vehicles we purchase; economic conditions, including fuel prices, commodity prices, foreign exchange rates and interest rate fluctuations; trends in new- and used-vehicle sales and incentives; and other risks and uncertainties identified in our filings with the Securities and Exchange Commission (the “SEC”), including under "Risk Factors" in our Form 10-K for the year ended December 29, 2019 filed with the SEC on March 18, 2020, as updated in our Form 10-Q for the quarter ended March 29, 2020 filed with the SEC on May 6, 2020. Additional information regarding risks and uncertainties will also be contained in subsequent annual and quarterly reports we file with the SEC, including our Form 10-K for the year ended December 27, 2020, which we expect to file on or near February 19, 2021. The forward-looking statements included in this release are made as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statement to reflect new information or events, except as required by law.
Note Regarding Non-GAAP Financial Information
We refer to certain financial measures that are not recognized under United States generally accepted accounting principles (“GAAP”). Please see “Note Regarding Non-GAAP Financial Information" and “Reconciliation of GAAP to Non-GAAP Financial Information” for additional information and a reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures.
IAA, Inc. Consolidated Statements of Income (Amounts in Millions, Except Per Share) (Unaudited) |
|||||||
|
Three Months Ended |
|
Fiscal Years Ended |
||||
|
December 27, |
|
December 29, |
|
December 27, |
|
December 29, |
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
Service revenues |
$332.8 |
|
$321.5 |
|
$1,233.1 |
|
$1,303.8 |
Vehicle sales |
50.7 |
|
34.4 |
|
151.8 |
|
133.0 |
Total revenues |
383.5 |
|
355.9 |
|
1,384.9 |
|
1,436.8 |
Operating expenses: |
|
|
|
|
|
|
|
Cost of services* |
188.7 |
|
193.1 |
|
721.7 |
|
780.1 |
Cost of vehicle sales* |
42.4 |
|
27.7 |
|
125.2 |
|
108.1 |
Selling, general and administrative |
37.7 |
|
36.2 |
|
144.9 |
|
142.4 |
Depreciation and amortization |
19.6 |
|
22.4 |
|
81.1 |
|
88.4 |
Total operating expenses |
288.4 |
|
279.4 |
|
1,072.9 |
|
1,119.0 |
Operating profit |
95.1 |
|
76.5 |
|
312.0 |
|
317.8 |
Interest expense, net |
12.9 |
|
16.6 |
|
56.0 |
|
55.7 |
Other income, net |
(0.2) |
|
— |
|
(1.0) |
|
(0.1) |
Income before income taxes |
82.4 |
|
59.9 |
|
257.0 |
|
262.2 |
Income taxes |
18.3 |
|
14.3 |
|
62.2 |
|
69.0 |
Net income |
$64.1 |
|
$45.6 |
|
$194.8 |
|
$193.2 |
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
Basic |
$0.48 |
|
$0.34 |
|
$1.45 |
|
$1.45 |
Diluted |
$0.47 |
|
$0.34 |
|
$1.44 |
|
$1.44 |
*Exclusive of depreciation and amortization
IAA, Inc. Consolidated Balance Sheets (Amounts in Millions) (Unaudited) |
|||||||
|
December 27, |
|
December 29, |
||||
Assets |
|
|
|
||||
|
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
232.8 |
|
|
$ |
47.1 |
|
Accounts receivable, net |
374.8 |
|
|
335.9 |
|
||
Prepaid consigned vehicle charges |
53.3 |
|
|
50.1 |
|
||
Other current assets |
31.1 |
|
|
26.9 |
|
||
Total current assets |
692.0 |
|
|
460.0 |
|
||
|
|
|
|
||||
Non-current assets |
|
|
|
||||
Operating lease right-of-use assets, net |
866.8 |
|
|
735.9 |
|
||
Property and equipment, net |
259.8 |
|
|
246.9 |
|
||
Goodwill |
542.3 |
|
|
541.3 |
|
||
Intangible assets, net |
150.6 |
|
|
151.7 |
|
||
Other assets |
17.4 |
|
|
15.4 |
|
||
Total non-current assets |
1,836.9 |
|
|
1,691.2 |
|
||
Total assets |
$ |
2,528.9 |
|
|
$ |
2,151.2 |
|
|
|
|
|
||||
Liabilities and Stockholders' Equity (Deficit) |
|
|
|
||||
|
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
122.6 |
|
|
$ |
96.4 |
|
Short-term right-of-use operating lease liability |
78.1 |
|
|
68.6 |
|
||
Accrued employee benefits and compensation expenses |
23.4 |
|
|
29.4 |
|
||
Other accrued expenses |
54.4 |
|
|
49.3 |
|
||
Current maturities of long-term debt |
4.0 |
|
|
— |
|
||
Total current liabilities |
282.5 |
|
|
243.7 |
|
||
|
|
|
|
||||
Non-current liabilities |
|
|
|
||||
Long-term debt |
1,248.0 |
|
|
1,254.7 |
|
||
Long-term right-of-use operating lease liability |
836.6 |
|
|
709.5 |
|
||
Deferred income tax liabilities |
65.7 |
|
|
63.7 |
|
||
Other liabilities |
26.7 |
|
|
16.8 |
|
||
Total non-current liabilities |
2,177.0 |
|
|
2,044.7 |
|
||
|
|
|
|
||||
Stockholders' equity (deficit) |
|
|
|
||||
Total stockholders' equity (deficit) |
69.4 |
|
|
(137.2) |
|
||
Total liabilities and stockholders' equity (deficit) |
$ |
2,528.9 |
|
|
$ |
2,151.2 |
|
IAA, Inc. Consolidated Statements of Cash Flows (Amounts in Millions) (Unaudited) |
|||||||||
|
Fiscal Years Ended |
|
|
||||||
|
December 27, |
|
December 29, |
|
|
||||
Operating activities |
|
|
|
|
|
||||
Net income |
$ |
194.8 |
|
|
$ |
193.2 |
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
||||
Depreciation and amortization |
81.1 |
|
|
88.4 |
|
|
|
||
Operating lease expense |
136.7 |
|
|
118.3 |
|
|
|
||
Provision for credit losses |
4.4 |
|
|
1.8 |
|
|
|
||
Deferred income taxes |
2.0 |
|
|
0.6 |
|
|
|
||
Amortization of debt issuance costs |
4.2 |
|
|
2.0 |
|
|
|
||
Stock-based compensation |
8.5 |
|
|
4.7 |
|
|
|
||
Gain on disposal of fixed assets |
(0.7) |
|
|
(0.1) |
|
|
|
||
Changes in operating assets and liabilities, net of acquisitions |
|
|
|
|
|
||||
Operating lease payments |
(130.9) |
|
|
(119.3) |
|
|
|
||
Accounts receivable and other assets |
(54.3) |
|
|
(23.0) |
|
|
|
||
Accounts payable and accrued expenses |
64.2 |
|
|
4.6 |
|
|
|
||
Net cash provided by operating activities |
310.0 |
|
|
271.2 |
|
|
|
||
|
|
|
|
|
|
||||
Investing activities |
|
|
|
|
|
||||
Acquisition of businesses (net of cash acquired) |
— |
|
|
(16.7) |
|
|
|
||
Purchases of property, equipment and computer software |
(69.8) |
|
|
(68.5) |
|
|
|
||
Proceeds from the sale of property and equipment |
0.8 |
|
|
0.3 |
|
|
|
||
Net cash used by investing activities |
(69.0) |
|
|
(84.9) |
|
|
|
||
|
|
|
|
|
|
||||
Financing activities |
|
|
|
|
|
||||
Net decrease in book overdrafts |
(33.6) |
|
|
(26.8) |
|
|
|
||
Proceeds from debt issuance |
— |
|
|
1,305.5 |
|
|
|
||
Payments of long-term debt |
(4.0) |
|
|
(27.5) |
|
|
|
||
Dividend paid to KAR |
— |
|
|
(1,278.0) |
|
|
|
||
Net cash transfers to parent and affiliates |
— |
|
|
(117.8) |
|
|
|
||
Deferred financing costs |
(2.9) |
|
|
(25.2) |
|
|
|
||
Payments on finance leases |
(14.3) |
|
|
(13.7) |
|
|
|
||
Issuance of common stock under stock plans |
8.1 |
|
|
1.6 |
|
|
|
||
Proceeds from issuance of employee stock purchase plan shares |
1.0 |
|
|
— |
|
|
|
||
Tax withholding payments for vested RSUs |
(9.1) |
|
|
(0.9) |
|
|
|
||
Payment of contingent consideration |
(1.5) |
|
|
— |
|
|
|
||
Net cash used by financing activities |
(56.3) |
|
|
(182.8) |
|
|
|
||
Effect of exchange rate changes on cash |
1.0 |
|
|
(4.7) |
|
|
|
||
Net increase (decrease) in cash and cash equivalents |
185.7 |
|
|
(1.2) |
|
|
|
||
Cash and cash equivalents at beginning of period |
47.1 |
|
|
48.3 |
|
|
|
||
Cash and cash equivalents at end of period |
$ |
232.8 |
|
|
$ |
47.1 |
|
|
|
Cash paid for interest, net |
$ |
53.7 |
|
|
$ |
29.8 |
|
|
|
Cash paid for taxes, net of refunds |
$ |
59.7 |
|
|
$ |
71.8 |
|
|
|
Note Regarding Non-GAAP Financial Information
This press release includes the following non-GAAP financial measures: Organic revenue growth, Adjusted SG&A expenses, Adjusted net income, Adjusted earnings per share (“Adjusted EPS”), Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA"), organic Adjusted EBITDA, free cash flow, and leverage ratio (defined as Net Debt divided by LTM Adjusted EBITDA). These measures are reconciled to their most directly comparable GAAP financial measures as provided in “Reconciliation of GAAP to Non-GAAP Financial Information” below.
Each of the non-GAAP measures disclosed in this press release should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. Management uses these financial measures and key performance indicators to assess the Company’s financial operating performance, and we believe that these measures provide useful information to investors by offering additional ways of viewing the Company’s results, as noted below.
Reconciliation of GAAP to Non-GAAP Financial Information |
|||||
IAA, Inc. Reconciliation of Organic Revenue Growth |
|||||
|
Three Months Ended |
|
Fiscal Year Ended |
||
|
|
|
|
||
Revenue Growth |
7.8% |
|
(3.6)% |
||
Less: |
|
|
|
||
DDI acquisition revenue |
—% |
|
(0.4)% |
||
Foreign currency impact |
(0.3)% |
|
0.1% |
||
Revenue agreement adjustment |
—% |
|
0.2% |
||
|
|
|
|
||
Organic Revenue Growth |
7.5% |
|
(3.7)% |
IAA, Inc. Reconciliation of Adjusted Selling, General and Administrative Expenses (Amounts in Millions) |
|||||||||||||||
|
Three Months Ended |
|
Fiscal Years Ended |
||||||||||||
|
December 27, |
|
December 29, |
|
December 27, |
|
December 29, |
||||||||
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses |
$ |
37.7 |
|
|
$ |
36.2 |
|
|
$ |
144.9 |
|
|
$ |
142.4 |
|
|
|
|
|
|
|
|
|
||||||||
Less non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Retention / severance / restructuring |
— |
|
|
0.2 |
|
|
3.0 |
|
|
1.7 |
|
||||
COVID-19 related costs |
0.3 |
|
|
— |
|
|
1.0 |
|
|
— |
|
||||
Professional fees |
0.8 |
|
|
— |
|
|
1.4 |
|
|
— |
|
||||
Spinoff costs |
— |
|
|
0.2 |
|
|
— |
|
|
3.5 |
|
||||
Adjusted selling, general and administrative expenses |
$ |
36.6 |
|
|
$ |
35.8 |
|
|
$ |
139.5 |
|
|
$ |
137.2 |
|
IAA, Inc. Reconciliation of Adjusted Net Income (Amounts in Millions, Except Per Share) |
|||||||||||||||
|
Three Months Ended |
|
Fiscal Years Ended |
||||||||||||
|
December 27, |
|
December 29, |
|
December 27, |
|
December 29, |
||||||||
|
|
|
|
|
|
|
|
||||||||
Net Income |
$ |
64.1 |
|
|
$ |
45.6 |
|
|
$ |
194.8 |
|
|
$ |
193.2 |
|
|
|
|
|
|
|
|
|
||||||||
Add back non-GAAP adjustments |
|
|
|
|
|
|
|
||||||||
Spinoff costs |
— |
|
|
0.2 |
|
|
— |
|
|
3.5 |
|
||||
Retention / severance / restructuring |
— |
|
|
0.2 |
|
|
3.0 |
|
|
1.7 |
|
||||
COVID-19 related costs |
0.3 |
|
|
— |
|
|
1.0 |
|
|
— |
|
||||
Gain on sale of assets |
(0.2) |
|
|
(0.1) |
|
|
(0.7) |
|
|
(0.1) |
|
||||
Acquisition costs |
— |
|
|
— |
|
|
— |
|
|
0.2 |
|
||||
Professional fees |
0.8 |
|
|
— |
|
|
1.4 |
|
|
— |
|
||||
Non-operating foreign exchange loss (gain) |
— |
|
|
0.2 |
|
|
(0.3) |
|
|
0.1 |
|
||||
Amortization of acquired intangible assets |
3.2 |
|
|
6.2 |
|
|
15.5 |
|
|
25.8 |
|
||||
Non-GAAP adjustments to income before income taxes |
4.1 |
|
|
6.7 |
|
|
19.9 |
|
|
31.2 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Income tax impact of Non-GAAP adjustments to income |
(0.8) |
|
|
(1.7) |
|
|
(4.8) |
|
|
(8.1) |
|
||||
|
|
|
|
|
|
|
|
||||||||
Discrete tax items |
(2.1) |
|
|
(0.5) |
|
|
(2.4) |
|
|
0.6 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Non-GAAP adjustments to net income |
1.2 |
|
|
4.5 |
|
|
12.7 |
|
|
23.7 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Adjusted net income |
$ |
65.3 |
|
|
$ |
50.1 |
|
|
$ |
207.5 |
|
|
$ |
216.9 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP diluted EPS |
$ |
0.47 |
|
|
$ |
0.34 |
|
|
$ |
1.44 |
|
|
$ |
1.44 |
|
EPS impact of Non-GAAP Adjustments |
0.01 |
|
|
0.03 |
|
|
0.10 |
|
|
0.17 |
|
||||
Adjusted diluted EPS |
$ |
0.48 |
|
|
$ |
0.37 |
|
|
$ |
1.54 |
|
|
$ |
1.61 |
|
Note: Amounts will not always recalculate due to rounding
IAA, Inc. Reconciliation of Adjusted EBITDA and Organic Adjusted EBITDA (Amounts in Millions) |
|||||||||||||||
|
Three Months Ended |
|
Fiscal Years Ended |
||||||||||||
|
December 27, |
|
December 29, |
|
December 27, |
|
December 29, |
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
64.1 |
|
|
$ |
45.6 |
|
|
$ |
194.8 |
|
|
$ |
193.2 |
|
Add: income taxes |
18.3 |
|
|
14.3 |
|
|
62.2 |
|
|
69.0 |
|
||||
Add: interest expense, net |
12.9 |
|
|
16.6 |
|
|
56.0 |
|
|
55.7 |
|
||||
Add: depreciation & amortization |
19.6 |
|
|
22.4 |
|
|
81.1 |
|
|
88.4 |
|
||||
EBITDA |
$ |
114.9 |
|
|
$ |
98.9 |
|
|
$ |
394.1 |
|
|
$ |
406.3 |
|
Add back non-GAAP adjustments |
|
|
|
|
|
|
|
||||||||
Spinoff costs |
— |
|
|
0.2 |
|
|
— |
|
|
3.5 |
|
||||
Retention / severance / restructuring |
— |
|
|
0.2 |
|
|
3.0 |
|
|
1.7 |
|
||||
COVID-19 related costs |
0.3 |
|
|
— |
|
|
1.0 |
|
|
— |
|
||||
Gain on sale of assets |
(0.2) |
|
|
(0.1) |
|
|
(0.7) |
|
|
(0.1) |
|
||||
Acquisition costs |
— |
|
|
— |
|
|
— |
|
|
0.2 |
|
||||
Professional fees |
0.8 |
|
|
— |
|
|
1.4 |
|
|
— |
|
||||
Non-operating foreign exchange loss (gain) |
— |
|
|
0.2 |
|
|
(0.3) |
|
|
0.1 |
|
||||
Adjusted EBITDA |
115.8 |
|
|
99.4 |
|
|
398.5 |
|
|
411.7 |
|
||||
Currency movements |
(0.1) |
|
|
— |
|
|
0.3 |
|
|
— |
|
||||
DDI EBITDA |
— |
|
|
— |
|
|
0.2 |
|
|
— |
|
||||
Non-cash adjustment for certain revenue agreements |
— |
|
|
— |
|
|
— |
|
|
(3.6) |
|
||||
Organic Adjusted EBITDA |
$ |
115.7 |
|
|
$ |
99.4 |
|
|
$ |
399.0 |
|
|
$ |
408.1 |
|
Note: Amounts will not always recalculate due to rounding
IAA, Inc. Reconciliation of Adjusted LTM EBITDA (Amounts in millions) |
|||||||||||||||||||
|
Quarter Ended |
|
LTM Ended |
||||||||||||||||
|
3/29/20 |
|
6/28/20 |
|
9/27/20 |
|
12/27/20 |
|
12/27/20 |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income |
$ |
44.7 |
|
|
$ |
33.2 |
|
|
$ |
52.8 |
|
|
$ |
64.1 |
|
|
$ |
194.8 |
|
Add: income taxes |
15.1 |
|
|
10.7 |
|
|
18.1 |
|
|
18.3 |
|
|
62.2 |
|
|||||
Add: interest expense, net |
16.0 |
|
|
13.8 |
|
|
13.3 |
|
|
12.9 |
|
|
56.0 |
|
|||||
Add: depreciation & amortization |
22.5 |
|
|
19.6 |
|
|
19.4 |
|
|
19.6 |
|
|
81.1 |
|
|||||
EBITDA |
$ |
98.3 |
|
|
$ |
77.3 |
|
|
$ |
103.6 |
|
|
$ |
114.9 |
|
|
$ |
394.1 |
|
Add back non-GAAP adjustments |
|
|
|
|
|
|
|
|
|
||||||||||
Spinoff costs |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Retention / severance / restructuring |
2.3 |
|
|
0.6 |
|
|
0.1 |
|
|
— |
|
|
3.0 |
|
|||||
COVID-19 related costs |
0.2 |
|
|
0.3 |
|
|
0.2 |
|
|
0.3 |
|
|
1.0 |
|
|||||
Gain on sale of assets |
(0.1) |
|
|
— |
|
|
(0.4) |
|
|
(0.2) |
|
|
(0.7) |
|
|||||
Acquisition costs |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Professional fees |
— |
|
|
0.5 |
|
|
0.1 |
|
|
0.8 |
|
|
1.4 |
|
|||||
Non-operating foreign exchange (gain) loss |
(0.7) |
|
|
0.2 |
|
|
0.2 |
|
|
— |
|
|
(0.3) |
|
|||||
Adjusted EBITDA |
$ |
100.0 |
|
|
$ |
78.9 |
|
|
$ |
103.8 |
|
|
$ |
115.8 |
|
|
$ |
398.5 |
|
Note: Amounts will not always recalculate due to rounding
IAA, Inc. Reconciliation of Net Debt (Amounts in Millions) |
||||||||||||||||
|
December 27, |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
Term Loan |
$ |
774.0 |
||||||||||||||
Senior Notes |
500.0 |
|||||||||||||||
Capital Leases |
28.3 |
|||||||||||||||
Total Debt |
1,302.3 |
|||||||||||||||
Less: Cash |
232.8 |
|||||||||||||||
Net Debt |
$ |
1,069.5 |
||||||||||||||
IAA, Inc. Reconciliation of Free Cash Flow (Amounts in Millions) |
||||||||||||||||
|
|
Three Months Ended |
|
Fiscal Years Ended |
||||||||||||
|
|
December 27, |
|
December 29, |
|
December 27, |
|
December 29, |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
|
$ |
44.8 |
|
|
$ |
26.6 |
|
|
$ |
310.0 |
|
|
$ |
271.2 |
|
Less: Purchases of property, equipment and computer software |
|
(27.9) |
|
|
(12.1) |
|
|
(69.8) |
|
|
|
(68.5) |
|
|||
Free cash flow |
|
$ |
16.9 |
|
|
$ |
14.5 |
|
|
$ |
240.2 |
|
|
$ |
202.7 |
|
Contacts
Media Inquiries:
Jeanene O’Brien
SVP Marketing and Communications
jobrien@iaai.com| (708) 492-7328
Investor Inquiries:
Farah Soi/Caitlin Churchill
ICR
investors@iaai.com| (203) 682-8200
Arif Ahmed
Vice President, Treasury
arif.ahmed@iaai.com | (708) 492-7257
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