|
|
|
(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 11, 2022
|
By:
|
/s/ Susan Healy
|
Susan Healy
|
|||
Executive Vice President, Chief Financial Officer
|
|||
(Principal Financial Officer)
|
|
Exhibit 99.1
|
Delivers Record 2021 Results
Introduces Full-Year 2022 Outlook
WESTCHESTER, Ill.--(BUSINESS WIRE)--February 11, 2022--IAA, Inc. (NYSE: IAA) today announced its financial results for the fourth quarter and full year fiscal 2021, which ended January 2, 2022.
John Kett, Chief Executive Officer and President, stated, “We finished the year with a solid fourth quarter performance. Both our initiatives and favorable market conditions resulted in another quarter of record revenue per unit. Our large global buyer network continued to drive significant auction liquidity and the bespoke data analytics we provided to our sellers helped them to maximize their returns.”
Mr. Kett continued, “Our team worked hard throughout the quarter to assist our sellers in successfully managing through the impact of Hurricane Ida. We again received recognition for our responsiveness, sense of urgency and coordination and communication with our providers during this time, and I want to thank our employees for their dedication and teamwork throughout 2021. They managed through the challenges of COVID-19, as well as hurricanes, towing and labor shortages and resulting cost pressures to deliver for our buying and selling customers while promoting a safe environment. As we look to 2022, we will continue to navigate in a dynamic environment and build on many of the initiatives we have in place.”
Key Fourth Quarter and Full Year Measures:
(Dollars in millions, except per share amounts)
|
Quarter Ended |
Quarter Ended |
% |
Year Ended |
Year Ended |
% |
Revenues |
$548.1 |
$383.5 |
42.9% |
$1,837.4 |
$1,384.9 |
32.7% |
Net Income |
$73.3 |
$64.1 |
14.4% |
$294.4 |
$194.8 |
51.1% |
Adjusted Net Income(2) |
$82.0 |
$65.3 |
25.6% |
$323.0 |
$207.5 |
55.7% |
Diluted EPS |
$0.54 |
$0.47 |
15.4% |
$2.18 |
$1.44 |
51.4% |
Adjusted Diluted EPS(2) |
$0.61 |
$0.48 |
27.6% |
$2.39 |
$1.54 |
55.2% |
Adjusted EBITDA(2) |
$140.4 |
$115.8 |
21.2% |
$547.3 |
$398.5 |
37.3% |
1 The quarter ended January 2, 2022 is a 14-week quarter (vs. 13 weeks for the quarter ended December 27, 2020) and the year ended January 2, 2022 is a 53-week year (vs. 52 weeks for the year ended December 27, 2020). |
2 Starting in 2021, we are no longer adding back COVID-19 costs in the calculation of Adjusted Net Income, Adjusted Diluted EPS and Adjusted EBITDA. As a result, our presentation of such metrics for fiscal 2021 may not be directly comparable to the corresponding metrics for prior periods, including fiscal 2020. |
Highlights for the Fourth Quarter Ended January 2, 2022:
Additional Highlights for the Year Ended January 2, 2022:
Other Financial Highlights as of January 2, 2022:
Please refer to the accompanying financial tables for a reconciliation of Net Debt, Leverage Ratio and Free Cash Flow to U.S. GAAP.
Outlook:
For fiscal 2022, the Company expects the following, which includes the full-year impact of actual and expected market share gains and losses:
*Organic revenue growth and organic Adjusted EBITDA growth exclude the impact of acquisitions prior to their first anniversary as well as foreign currency movements.
The Company has not provided a reconciliation of organic revenue, Adjusted EBITDA or organic Adjusted EBITDA outlook for fiscal 2022 to GAAP revenues or net income, respectively, the most directly comparable GAAP financial measures because, without unreasonable efforts, it is unable to predict with reasonable certainty the amount or timing of non-GAAP adjustments that are used to calculate organic revenue, Adjusted EBITDA or organic Adjusted EBITDA, including but not limited to: in the case of organic revenue, (a) sales from acquired businesses recorded prior to the first anniversary of the acquisition and (b) the impact of foreign currency movements; in the case of Adjusted EBITDA, (a) non-income, tax-related accruals, (b) fair value adjustments related to contingent considerations, (c) severance, restructuring and other retention expenses, (d) the net loss or gain on the sale of assets or expenses associated with certain M&A, financing and other transactions, (e) acquisition costs, (f) certain professional fees, (g) other expenses that we do not believe are indicative of our ongoing operations, and (h) gains and losses related to foreign currency exchange rates; and in the case of organic Adjusted EBITDA, the same adjustments that are used to calculate Adjusted EBITDA, as well as (a) EBITDA from acquired businesses recorded prior to the first anniversary of the acquisition, and (b) the impact of foreign currency movements. These adjustments are uncertain, depend on various factors that are beyond our control and could have a material impact on revenues or net income for fiscal 2022.
Conference Call Information:
A conference call to discuss the fourth quarter and full-year fiscal 2021 financial results is scheduled for today, February 11, 2022, 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 4,500 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 our fiscal 2022 outlook, expectations regarding revenue per unit and the impact of towing and labor shortages . 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, but are not limited to: uncertainties regarding ongoing surges of COVID-19 infections, including new more contagious and / or vaccine-resistant variants, and the impact on the duration and severity of the COVID-19 pandemic, and the measures taken to reduce its spread, including the availability, rate of public acceptance and efficacy of COVID-19 vaccines; 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 the integration of acquired businesses, and the risks that the anticipated benefits of any acquisitions may not be fully realized or take longer to realize than expected; risks related to the failure to obtain regulatory approvals related to the acquisition of SYNETIQ Ltd.; changes to our preliminary purchase price allocation for SYNETIQ Ltd. to be finalized during 2022; 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 27, 2020 filed with the SEC on February 22, 2021. 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 January 2, 2022, which we expect to file on or near February 25, 2022. Other risks and uncertainties that are not presently known to us or that we currently deem immaterial may also affect our business or operating results. 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.
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 |
|||||
|
January 2, |
|
December 27, |
|
January 2, |
|
December 27, |
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
Service revenues |
$435.8 |
|
$332.8 |
|
$1,537.7 |
|
$1,233.1 |
|
Vehicle sales |
112.3 |
|
50.7 |
|
299.7 |
|
151.8 |
|
Total revenues |
548.1 |
|
383.5 |
|
1,837.4 |
|
1,384.9 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Cost of services |
259.1 |
|
188.7 |
|
851.5 |
|
721.7 |
|
Cost of vehicle sales |
100.7 |
|
42.4 |
|
261.2 |
|
125.2 |
|
Selling, general and administrative |
55.4 |
|
37.7 |
|
192.3 |
|
144.9 |
|
Depreciation and amortization |
25.0 |
|
19.6 |
|
86.5 |
|
81.1 |
|
Total operating expenses |
440.2 |
|
288.4 |
|
1,391.5 |
|
1,072.9 |
|
Operating profit |
107.9 |
|
95.1 |
|
445.9 |
|
312.0 |
|
Interest expense, net |
11.7 |
|
12.9 |
|
57.7 |
|
56.0 |
|
Other expense (income), net |
0.7 |
|
(0.2) |
|
0.2 |
|
(1.0) |
|
Income before income taxes |
95.5 |
|
82.4 |
|
388.0 |
|
257.0 |
|
Income taxes |
22.2 |
|
18.3 |
|
93.6 |
|
62.2 |
|
Net income |
$73.3 |
|
$64.1 |
|
$294.4 |
|
$194.8 |
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
Basic |
$0.54 |
|
$0.48 |
|
$2.18 |
|
$1.45 |
|
Diluted |
$0.54 |
|
$0.47 |
|
$2.18 |
|
$1.44 |
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
134.6 |
|
134.5 |
|
134.7 |
|
134.1 |
|
Diluted |
135.1 |
|
135.3 |
|
135.3 |
|
135.1 |
|
IAA, Inc. Consolidated Balance Sheets (Amounts in Millions) (Unaudited) |
||||||
|
January 2, 2022 |
|
December 27, 2020 |
|||
Assets |
|
|
|
|||
|
|
|
|
|||
Current assets |
|
|
|
|||
Cash and cash equivalents |
$ 109.4 |
|
$ 232.8 |
|||
Restricted cash |
53.0 |
|
— |
|||
Accounts receivable, net |
465.7 |
|
374.8 |
|||
Prepaid consigned vehicle charges |
72.2 |
|
53.3 |
|||
Other current assets |
69.6 |
|
31.1 |
|||
Total current assets |
769.9 |
|
692.0 |
|||
|
|
|
|
|||
Non-current assets |
|
|
|
|||
Operating lease right-of-use assets, net |
1,024.4 |
|
866.8 |
|||
Property and equipment, net |
338.1 |
|
259.8 |
|||
Goodwill |
797.5 |
|
542.3 |
|||
Intangible assets, net |
197.5 |
|
150.6 |
|||
Other assets |
26.9 |
|
17.4 |
|||
Total non-current assets |
2,384.4 |
|
1,836.9 |
|||
Total assets |
$ 3,154.3 |
|
$ 2,528.9 |
|||
|
|
|
|
|||
Liabilities and Stockholders' Equity |
|
|
|
|||
|
|
|
|
|||
Current liabilities |
|
|
|
|||
Accounts payable |
$ 163.5 |
|
$ 122.6 |
|||
Short-term right-of-use operating lease liability |
94.3 |
|
78.1 |
|||
Accrued employee benefits and compensation expenses |
44.2 |
|
23.4 |
|||
Other accrued expenses |
124.6 |
|
54.4 |
|||
Current maturities of long-term debt |
181.3 |
|
4.0 |
|||
Total current liabilities |
607.9 |
|
282.5 |
|||
|
|
|
|
|||
Non-current liabilities |
|
|
|
|||
Long-term debt |
1,120.6 |
|
1,248.0 |
|||
Long-term right-of-use operating lease liability |
984.8 |
|
836.6 |
|||
Deferred income tax liabilities |
74.8 |
|
65.7 |
|||
Other liabilities |
32.6 |
|
26.7 |
|||
Total non-current liabilities |
2,212.8 |
|
2,177.0 |
|||
|
|
|
|
|||
Stockholders' equity |
|
|
|
|||
Total stockholders' equity |
333.6 |
|
69.4 |
|||
Total liabilities and stockholders' equity |
$ 3,154.3 |
|
$ 2,528.9 |
|||
IAA, Inc. Consolidated Statements of Cash Flows (Amounts in Millions) (Unaudited) |
||||||
|
Fiscal Years Ended |
|||||
|
January 2, |
|
December 27, |
|||
Operating activities |
|
|
|
|||
Net income |
$ 294.4 |
|
$ 194.8 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|||
Depreciation and amortization |
86.5 |
|
81.1 |
|||
Operating lease expense |
153.9 |
|
136.7 |
|||
Provision for credit losses |
1.4 |
|
4.4 |
|||
Deferred income taxes |
(0.7) |
|
2.0 |
|||
Loss on extinguishment of debt |
10.3 |
|
— |
|||
Amortization of debt issuance costs |
3.4 |
|
4.2 |
|||
Stock-based compensation |
11.4 |
|
8.5 |
|||
Change in contingent consideration liabilities |
2.3 |
|
— |
|||
Other non-cash, net |
0.2 |
|
(0.7) |
|||
Changes in operating assets and liabilities, net of acquisitions |
|
|
|
|||
Operating lease payments |
(147.0) |
|
(130.9) |
|||
Accounts receivable and other assets |
(134.4) |
|
(54.3) |
|||
Accounts payable and accrued expenses |
29.4 |
|
64.2 |
|||
Net cash provided by operating activities |
311.1 |
|
310.0 |
|||
|
|
|
|
|||
Investing activities |
|
|
|
|||
Acquisition of businesses (net of cash acquired) |
(257.1) |
|
— |
|||
Purchases of property, equipment and computer software |
(135.6) |
|
(69.8) |
|||
Proceeds from the sale of property and equipment |
0.8 |
|
0.8 |
|||
Other |
(2.0) |
|
— |
|||
Net cash used by investing activities |
(393.9) |
|
(69.0) |
|||
|
|
|
|
|||
Financing activities |
|
|
|
|||
Net increase (decrease) in book overdrafts |
28.8 |
|
(33.6) |
|||
Proceeds from debt issuance |
815.0 |
|
— |
|||
Payments of long-term debt |
(774.0) |
|
(4.0) |
|||
Deferred financing costs |
(4.8) |
|
(2.9) |
|||
Payments on finance leases |
(12.7) |
|
(14.3) |
|||
Purchase of treasury stock |
(34.0) |
|
— |
|||
Issuance of common stock under stock plans |
1.0 |
|
8.1 |
|||
Proceeds from issuance of employee stock purchase plan shares |
1.6 |
|
1.0 |
|||
Tax withholding payments for vested RSUs |
(7.4) |
|
(9.1) |
|||
Payment of contingent consideration |
(1.3) |
|
(1.5) |
|||
Net cash provided (used) by financing activities |
12.2 |
|
(56.3) |
|||
Effect of exchange rate changes on cash and restricted cash |
0.2 |
|
1.0 |
|||
Net (decrease) increase in cash and cash equivalents |
(70.4) |
|
185.7 |
|||
Cash, cash equivalents and restricted cash at beginning of period |
232.8 |
|
47.1 |
|||
Cash, cash equivalents and restricted cash at end of period |
$ 162.4 |
|
$ 232.8 |
|||
Cash paid for interest, net |
$ 45.2 |
|
$ 53.7 |
|||
Cash paid for taxes, net of refunds |
$ 90.0 |
|
$ 59.7 |
|||
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 latest twelve month’s (“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 (Amounts in Millions) (Unaudited) |
||||||
|
Three Months Ended |
|
Fiscal Year Ended |
|||
|
|
|
|
|||
Revenue Growth |
$ 164.6 |
|
$ 452.5 |
|||
Less: |
|
|
|
|||
Acquisitions revenue |
36.6 |
|
38.1 |
|||
Foreign currency impact |
2.1 |
|
15.0 |
|||
|
|
|
|
|||
Organic Revenue Growth |
$ 125.9 |
|
$ 399.4 |
IAA, Inc. Reconciliation of Adjusted Selling, General and Administrative Expenses (Amounts in Millions) (Unaudited) |
||||||||||||
|
Three Months Ended |
|
Fiscal Years Ended |
|||||||||
|
January 2, |
|
December 27, |
|
January 2, |
|
December 27, |
|||||
|
|
|
|
|
|
|
|
|||||
Selling, general and administrative expenses |
$ 55.4 |
|
$ 37.7 |
|
$ 192.3 |
|
$ 144.9 |
|||||
|
|
|
|
|
|
|
|
|||||
Less non-GAAP adjustments: |
|
|
|
|
|
|
|
|||||
Non income, tax related accrual |
— |
|
— |
|
2.7 |
|
— |
|||||
Fair value adjustments related to contingent consideration |
2.3 |
|
— |
|
2.3 |
|
— |
|||||
Retention / severance / restructuring |
0.4 |
|
— |
|
2.3 |
|
3.0 |
|||||
COVID-19 related costs |
— |
|
0.3 |
|
— |
|
1.0 |
|||||
Professional fees |
— |
|
0.8 |
|
1.0 |
|
1.4 |
|||||
Acquisition costs |
4.8 |
|
— |
|
6.6 |
|
— |
|||||
Adjusted selling, general and administrative expenses |
$ 47.9 |
|
$ 36.6 |
|
$ 177.4 |
|
$ 139.5 |
IAA, Inc. Reconciliation of Adjusted Net Income (Amounts in Millions, Except Per Share) (Unaudited) |
||||||||||||
|
Three Months Ended |
|
Fiscal Years Ended |
|||||||||
|
January 2, |
|
December 27, |
|
January 2, |
|
December 27, |
|||||
|
|
|
|
|
|
|
|
|||||
Net Income |
$ 73.3 |
|
$ 64.1 |
|
$ 294.4 |
|
$ 194.8 |
|||||
|
|
|
|
|
|
|
|
|||||
Add back non-GAAP adjustments |
|
|
|
|
|
|
|
|||||
Loss on extinguishment of debt |
— |
|
— |
|
10.3 |
|
— |
|||||
Non income, tax related accrual |
— |
|
— |
|
2.7 |
|
— |
|||||
Fair value adjustments related to contingent consideration |
2.3 |
|
— |
|
2.3 |
|
— |
|||||
Retention / severance / restructuring |
0.4 |
|
— |
|
2.3 |
|
3.0 |
|||||
COVID-19 related costs |
— |
|
0.3 |
|
— |
|
1.0 |
|||||
Loss (gain) on sale of assets |
0.3 |
|
(0.2) |
|
(0.1) |
|
(0.7) |
|||||
Acquisition costs |
4.8 |
|
— |
|
6.6 |
|
— |
|||||
Professional fees |
— |
|
0.8 |
|
1.0 |
|
1.4 |
|||||
Non-operating foreign exchange loss (gain) |
0.4 |
|
— |
|
0.3 |
|
(0.3) |
|||||
Amortization of acquired intangible assets |
5.2 |
|
3.2 |
|
15.0 |
|
15.5 |
|||||
Non-GAAP adjustments to income before income taxes |
13.4 |
|
4.1 |
|
40.4 |
|
19.9 |
|||||
|
|
|
|
|
|
|
|
|||||
Income tax impact of Non-GAAP adjustments to income |
(3.1) |
|
(0.8) |
|
(9.7) |
|
(4.8) |
|||||
Discrete tax items |
(1.6) |
|
(2.1) |
|
(2.1) |
|
(2.4) |
|||||
Non-GAAP adjustments to net income |
8.7 |
|
1.2 |
|
28.6 |
|
12.7 |
|||||
Adjusted net income |
$ 82.0 |
|
$ 65.3 |
|
$ 323.0 |
|
$ 207.5 |
|||||
|
|
|
|
|
|
|
|
|||||
GAAP diluted EPS |
$ 0.54 |
|
$ 0.47 |
|
$ 2.18 |
|
$ 1.44 |
|||||
EPS impact of Non-GAAP Adjustments |
0.07 |
|
0.01 |
|
0.21 |
|
0.10 |
|||||
Adjusted diluted EPS |
$ 0.61 |
|
$ 0.48 |
|
$ 2.39 |
|
$ 1.54 |
|||||
Note: Amounts will not always recalculate due to rounding |
||||||||||||
IAA, Inc. Reconciliation of Adjusted EBITDA and Organic Adjusted EBITDA (Amounts in Millions) (Unaudited) |
||||||||||||
|
Three Months Ended |
|
Fiscal Years Ended |
|||||||||
|
January 2, |
|
December 27, |
|
January 2, |
|
December 27, |
|||||
|
|
|
|
|
|
|
|
|||||
Net income |
$ 73.3 |
|
$ 64.1 |
|
$ 294.4 |
|
$ 194.8 |
|||||
Add: income taxes |
22.2 |
|
18.3 |
|
93.6 |
|
62.2 |
|||||
Add: interest expense, net |
11.7 |
|
12.9 |
|
57.7 |
|
56.0 |
|||||
Add: depreciation & amortization |
25.0 |
|
19.6 |
|
86.5 |
|
81.1 |
|||||
EBITDA |
$ 132.2 |
|
$ 114.9 |
|
$ 532.2 |
|
$ 394.1 |
|||||
Add back non-GAAP adjustments |
|
|
|
|
|
|
|
|||||
Non income, tax related accrual |
— |
|
— |
|
2.7 |
|
— |
|||||
Fair value adjustments related to contingent consideration |
2.3 |
|
— |
|
2.3 |
|
— |
|||||
Retention / severance / restructuring |
0.4 |
|
— |
|
2.3 |
|
3.0 |
|||||
COVID-19 related costs |
— |
|
0.3 |
|
— |
|
1.0 |
|||||
Loss (gain) on sale of assets |
0.3 |
|
(0.2) |
|
(0.1) |
|
(0.7) |
|||||
Acquisition costs |
4.8 |
|
— |
|
6.6 |
|
— |
|||||
Professional fees |
— |
|
0.8 |
|
1.0 |
|
1.4 |
|||||
Non-operating foreign exchange loss (gain) |
0.4 |
|
— |
|
0.3 |
|
(0.3) |
|||||
Adjusted EBITDA |
140.4 |
|
115.8 |
|
547.3 |
|
398.5 |
|||||
Currency movements |
(0.4) |
|
— |
|
(2.5) |
|
— |
|||||
Acquisitions EBITDA |
(2.4) |
|
— |
|
(3.3) |
|
— |
|||||
Organic Adjusted EBITDA |
$ 137.6 |
|
$ 115.8 |
|
$ 541.5 |
|
$ 398.5 |
|||||
Note: Amounts will not always recalculate due to rounding |
||||||||||||
IAA, Inc. Reconciliation of Adjusted LTM EBITDA (Amounts in millions) (Unaudited) |
|||||||||||||||
|
Quarter Ended |
|
LTM Ended |
||||||||||||
|
3/28/21 |
|
6/27/21 |
|
9/26/21 |
|
1/2/22 |
|
1/2/22 |
||||||
|
|
|
|
|
|
|
|
|
|
||||||
Net income |
$ 72.5 |
|
$ 82.9 |
|
$ 65.7 |
|
$ 73.3 |
|
$ 294.4 |
||||||
Add: income taxes |
24.4 |
|
27.2 |
|
19.8 |
|
22.2 |
|
93.6 |
||||||
Add: interest expense, net |
13.0 |
|
21.9 |
|
11.1 |
|
11.7 |
|
57.7 |
||||||
Add: depreciation & amortization |
19.8 |
|
20.5 |
|
21.2 |
|
25.0 |
|
86.5 |
||||||
EBITDA |
$ 129.7 |
|
$ 152.5 |
|
$ 117.8 |
|
$ 132.2 |
|
$ 532.2 |
||||||
Add back non-GAAP adjustments |
|
|
|
|
|
|
|
|
|
||||||
Non income, tax related accrual |
2.7 |
|
— |
|
— |
|
— |
|
2.7 |
||||||
Fair value adjustments related to contingent consideration |
— |
|
— |
|
— |
|
2.3 |
|
2.3 |
||||||
Retention / severance / restructuring |
0.6 |
|
— |
|
1.3 |
|
0.4 |
|
2.3 |
||||||
Gain on sale of assets |
(0.2) |
|
— |
|
(0.2) |
|
0.3 |
|
(0.1) |
||||||
Acquisition costs |
— |
|
0.1 |
|
1.7 |
|
4.8 |
|
6.6 |
||||||
Professional fees |
0.7 |
|
0.3 |
|
— |
|
— |
|
1.0 |
||||||
Non-operating foreign exchange (gain) loss |
(0.3) |
|
(0.3) |
|
0.5 |
|
0.4 |
|
0.3 |
||||||
Adjusted EBITDA |
$ 133.2 |
|
$ 152.6 |
|
$ 121.1 |
|
$ 140.4 |
|
$ 547.3 |
||||||
Note: Amounts will not always recalculate due to rounding |
IAA, Inc. Reconciliation of Net Debt (Amounts in Millions) (Unaudited) |
|||
|
|
January 2, |
|
Term Loan |
|
$ 650.0 |
|
Revolving Facility |
|
165.0 |
|
Senior Notes |
|
500.0 |
|
Capital Leases |
|
34.4 |
|
Total Debt |
|
1,349.4 |
|
Less: Cash |
|
(109.4) |
|
Net Debt |
|
$ 1,240.0 |
IAA, Inc. Reconciliation of Free Cash Flow (Amounts in Millions) (Unaudited) |
||||||||||||
|
|
Three Months Ended |
|
Fiscal Years Ended |
||||||||
|
|
January 2, |
|
December 27, |
|
January 2, |
|
December 27, |
||||
|
|
|
|
|
|
|
|
|
||||
Net cash provided by operating activities |
|
$ 27.7 |
|
$ 44.8 |
|
$ 311.1 |
|
$ 310.0 |
||||
Less: Purchases of property, equipment and computer software |
|
(55.6) |
|
(27.9) |
|
(135.6) |
|
(69.8) |
||||
Free cash flow |
|
$ (27.9) |
|
$ 16.9 |
|
$ 175.5 |
|
$ 240.2 |
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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