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KAR Reports Rough Q2

By Staff Writer August 06, 2020

KAR Auction Services Inc. reported its second quarter financial results for the period ended June 30, 2020. The company reported revenue of $419.0 million as compared with revenue of $719.1 million for the second quarter of 2019, a decrease of 42 percent. For the second quarter of 2020, the company reported a net loss from continuing operations of $32.3 million, or $0.27 per diluted share, as compared with net income from continuing operations of $27.4 million, or $0.20 per diluted share, in the second quarter of 2019. Adjusted EBITDA for the quarter ended June 30, 2020 decreased 41 percent to $80.0 million, as compared with Adjusted EBITDA of $135.9 million for the quarter ended June 30, 2019. Operating adjusted net income from continuing operations per diluted share decreased 73 percent to $0.08 for the quarter ended June 30, 2020, as compared with operating adjusted net income from continuing operations per diluted share of $0.30 for the quarter ended June 30, 2019. The company's operating results for the quarter ended June 30, 2020 were significantly impacted by the COVID-19 pandemic. In addition, the company recorded a $29.8 million charge for the impairment of goodwill and other intangible assets in the second quarter of 2020.

For the six months ended June 30, 2020, the company reported revenue of $1,064.5 million as compared with revenue of $1,408.7 million for the six months ended June 30, 2019, a decrease of 24 percent. For the six months ended June 30, 2020, the company reported a net loss from continuing operations of $29.5 million, or $0.24 per diluted share, as compared with net income from continuing operations of $42.7 million, or $0.32 per diluted share, in the first six months of 2019. Adjusted EBITDA for the six months ended June 30, 2020 decreased 35 percent to $168.6 million, as compared with Adjusted EBITDA of $258.8 million for the six months ended June 30, 2019. Operating adjusted net income from continuing operations per diluted share decreased 60 percent to $0.20 for the six months ended June 30, 2020, as compared with operating adjusted net income from continuing operations per diluted share of $0.50 for the six months ended June 30, 2019. The company's operating results for the six months ended June 30, 2020 were significantly impacted by the COVID-19 pandemic, as further discussed below. In addition, the company recorded a $29.8 million charge for the impairment of goodwill and other intangible assets in the second quarter of 2020.

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Last modified on Thursday, 06 August 2020 14:42

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