CARMEL, Ind., Nov. 3, 2020 /PRNewswire/ -- KAR Auction
Services, Inc. (NYSE: KAR), today reported its third quarter
financial results for the period ended September 30, 2020. For the third quarter of
2020, the company reported revenue of $593.6
million as compared with revenue of $701.9 million for the third quarter of 2019, a
decrease of 15%. For the third quarter of 2020, the company
reported net income from continuing operations of $47.1 million, or $0.23 per diluted share, as compared with net
income from continuing operations of $34.4
million, or $0.26 per diluted
share, in the third quarter of 2019. Adjusted EBITDA for the
quarter ended September 30, 2020
increased 8% to $139.2 million, as
compared with Adjusted EBITDA of $129.2
million for the quarter ended September 30, 2019. Operating adjusted net income
from continuing operations per diluted share increased 29% to
$0.45 for the quarter ended
September 30, 2020, as compared with
operating adjusted net income from continuing operations per
diluted share of $0.35 for the
quarter ended September 30,
2019.
For the nine months ended September 30,
2020, the company reported revenue of $1,658.1 million as compared with revenue of
$2,110.6 million for the nine months
ended September 30, 2019, a decrease
of 21%. For the nine months ended September
30, 2020, the company reported net income from continuing
operations of $17.6 million, or
$0.04 per diluted share, as compared
with net income from continuing operations of $77.1 million, or $0.58 per diluted share, in the first nine months
of 2019. Adjusted EBITDA for the nine months ended September 30, 2020 decreased 21% to $307.8 million, as compared with Adjusted EBITDA
of $388.0 million for the nine months
ended September 30, 2019. Operating
adjusted net income from continuing operations per diluted share
decreased 31% to $0.59 for the nine
months ended September 30, 2020, as
compared with operating adjusted net income from continuing
operations per diluted share of $0.85
for the nine months ended September 30,
2019. The company's operating results for the nine months
ended September 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.
Impact of COVID-19 on Company Operations
The company
has been subject to numerous COVID-19-related orders and directives
that have caused us to modify our business practices. All ADESA
auction locations in the U.S. and Canada are offering vehicles for sale via
ADESA Simulcast, DealerBlock and Simulcast+. Auction locations have
resumed offering ancillary and related services, where possible and
as permitted by government directives. Given the evolving health,
economic, social and governmental environments, the potential
impact that COVID-19 could have on our business remains uncertain.
The extent to which the COVID-19 outbreak impacts our business,
results of operations and financial condition will depend on future
developments, which are highly uncertain and cannot be predicted,
including, but not limited to, the duration and spread of the
outbreak, its severity, the actions to contain the virus or treat
its impact, and how quickly and to what extent normal economic and
operating conditions can resume. Even after the COVID-19 outbreak
has subsided, we may continue to experience materially adverse
impacts to our business as a result of its global economic impact,
including any economic downturn or recession that has occurred or
may occur in the future.
Earnings Conference Call Information
KAR will be
hosting an earnings conference call and webcast on Wednesday, November 4, 2020 at 8:30 a.m. EST. The call will be hosted by KAR's
Chief Executive Officer and Chairman of the Board, Jim Hallett, and Executive Vice President and
Chief Financial Officer, Eric
Loughmiller. The conference call may be accessed by calling
1-844-778-4145 and entering participant passcode 8592422, while the
live web cast will be available at the investors section of
www.karglobal.com. Supplemental financial information for KAR's
third quarter 2020 results is available at the investors section of
www.karglobal.com.
A replay of the call will be available for two weeks via
telephone starting approximately 30 minutes after the completion of
the call. The replay may be accessed by calling
1-855-859-2056 and entering passcode 8592422. The archive of
the webcast will also be available following the call and will be
available at the investors section of www.karglobal.com for a
limited time.
About KAR
KAR Auction Services, Inc. d/b/a KAR Global
(NYSE: KAR), provides sellers and buyers across the global
wholesale used vehicle industry with innovative, technology-driven
remarketing solutions. KAR Global's unique end-to-end platform
supports whole car, financing, logistics and other ancillary and
related services, including the sale of nearly 3.8 million units
valued at approximately $40 billion
through our auctions in 2019. Our integrated physical, online and
mobile marketplaces reduce risk, improve transparency and
streamline transactions for customers in more than 80 countries.
Headquartered in Carmel, Indiana,
KAR Global has employees across the
United States, Canada,
Mexico, U.K. and Europe. For more information and the latest
KAR Global news, go to www.karglobal.com. and follow us on Twitter
@KARSpeaks.
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 and which are subject to certain risks, trends and
uncertainties. In particular, statements made that are not
historical facts may be forward-looking statements. Words such as
"should," "may," "will," "anticipates," "expects," "intends,"
"plans," "believes," "seeks," "estimates," and similar expressions
identify forward-looking statements. 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. Factors that could cause or contribute to such
differences include those uncertainties regarding the impact of the
COVID-19 virus on our business and the economy generally, and those
other matters disclosed in the Company's Securities and Exchange
Commission filings. The Company does not undertake any obligation
to update any forward-looking statements.
Analyst
Inquiries:
|
|
Media
Inquiries:
|
Mike
Eliason
|
|
Stephanie
Freeman
|
(317)
249-4559
|
|
(317)
343-5020
|
mike.eliason@karglobal.com
|
|
stephanie.freeman@karglobal.com
|
KAR Auction
Services, Inc.
|
Condensed
Consolidated Statements of Income
|
(In millions)
(Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Operating
revenues
|
|
|
|
|
|
|
|
Auction fees and
services revenue
|
$
|
440.5
|
|
|
$
|
534.5
|
|
|
$
|
1,244.6
|
|
|
$
|
1,629.5
|
|
Purchased vehicle
sales
|
86.2
|
|
|
79.1
|
|
|
211.3
|
|
|
216.2
|
|
Finance-related
revenue
|
66.9
|
|
|
88.3
|
|
|
202.2
|
|
|
264.9
|
|
Total operating
revenues
|
593.6
|
|
|
701.9
|
|
|
1,658.1
|
|
|
2,110.6
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Cost of services
(exclusive of depreciation and amortization)
|
329.7
|
|
|
410.9
|
|
|
959.4
|
|
|
1,222.2
|
|
Selling, general and
administrative
|
131.0
|
|
|
158.9
|
|
|
405.7
|
|
|
497.3
|
|
Depreciation and
amortization
|
46.5
|
|
|
46.4
|
|
|
140.7
|
|
|
138.6
|
|
Goodwill and other
intangibles impairment
|
—
|
|
|
—
|
|
|
29.8
|
|
|
—
|
|
Total operating
expenses
|
507.2
|
|
|
616.2
|
|
|
1,535.6
|
|
|
1,858.1
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
86.4
|
|
|
85.7
|
|
|
122.5
|
|
|
252.5
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
29.5
|
|
|
37.9
|
|
|
98.4
|
|
|
150.0
|
|
Other income,
net
|
(1.1)
|
|
|
(2.0)
|
|
|
(1.8)
|
|
|
(5.2)
|
|
Loss on
extinguishment of debt
|
—
|
|
|
2.2
|
|
|
—
|
|
|
2.2
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
58.0
|
|
|
47.6
|
|
|
25.9
|
|
|
105.5
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
10.9
|
|
|
13.2
|
|
|
8.3
|
|
|
28.4
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
47.1
|
|
|
34.4
|
|
|
17.6
|
|
|
77.1
|
|
Income from
discontinued operations, net of income taxes
|
—
|
|
|
0.9
|
|
|
—
|
|
|
91.6
|
|
Net income
|
$
|
47.1
|
|
|
$
|
35.3
|
|
|
$
|
17.6
|
|
|
$
|
168.7
|
|
|
|
|
|
|
|
|
|
Net income per share
- basic
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
0.23
|
|
|
$
|
0.26
|
|
|
$
|
0.04
|
|
|
$
|
0.58
|
|
Income from
discontinued operations
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.69
|
|
Net income per share
- basic
|
$
|
0.23
|
|
|
$
|
0.27
|
|
|
$
|
0.04
|
|
|
$
|
1.27
|
|
|
|
|
|
|
|
|
|
Net income per share
- diluted
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
0.23
|
|
|
$
|
0.26
|
|
|
$
|
0.04
|
|
|
$
|
0.58
|
|
Income from
discontinued operations
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.68
|
|
Net income per share
- diluted
|
$
|
0.23
|
|
|
$
|
0.27
|
|
|
$
|
0.04
|
|
|
$
|
1.26
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
—
|
|
|
$
|
0.19
|
|
|
$
|
0.19
|
|
|
$
|
0.89
|
|
KAR Auction
Services, Inc.
|
Condensed
Consolidated Balance Sheets
|
(In millions)
(Unaudited)
|
|
|
September
30,
2020
|
|
December
31,
2019
|
Cash and cash
equivalents
|
$
|
1,276.7
|
|
|
$
|
507.6
|
|
Restricted
cash
|
54.7
|
|
|
53.3
|
|
Trade receivables,
net of allowances
|
494.1
|
|
|
457.5
|
|
Finance receivables,
net of allowances
|
1,722.8
|
|
|
2,100.2
|
|
Other current
assets
|
126.3
|
|
|
125.9
|
|
Total current
assets
|
3,674.6
|
|
|
3,244.5
|
|
|
|
|
|
Goodwill
|
1,798.2
|
|
|
1,821.7
|
|
Customer
relationships, net of accumulated amortization
|
168.6
|
|
|
207.9
|
|
Operating lease
right-of-use assets
|
354.9
|
|
|
364.1
|
|
Property and
equipment, net of accumulated depreciation
|
585.2
|
|
|
609.0
|
|
Intangible and other
assets
|
328.4
|
|
|
334.0
|
|
Total
assets
|
$
|
6,909.9
|
|
|
$
|
6,581.2
|
|
|
|
|
|
Current liabilities,
excluding obligations collateralized by
finance receivables and current maturities
of debt
|
$
|
1,227.1
|
|
|
$
|
1,027.7
|
|
Obligations
collateralized by finance receivables
|
1,101.0
|
|
|
1,461.2
|
|
Current maturities of
debt
|
26.4
|
|
|
28.8
|
|
Total current
liabilities
|
2,354.5
|
|
|
2,517.7
|
|
|
|
|
|
Long-term
debt
|
1,854.8
|
|
|
1,861.3
|
|
Operating lease
liabilities
|
348.6
|
|
|
358.3
|
|
Other non-current
liabilities
|
205.0
|
|
|
193.7
|
|
Temporary
equity
|
540.0
|
|
|
—
|
|
Stockholders'
equity
|
1,607.0
|
|
|
1,650.2
|
|
Total liabilities,
temporary equity and stockholders' equity
|
$
|
6,909.9
|
|
|
$
|
6,581.2
|
|
KAR Auction
Services, Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(In millions)
(Unaudited)
|
|
|
Nine Months
Ended
September
30,
|
|
2020
|
|
2019
|
Operating
activities
|
|
|
|
Net income
|
$
|
17.6
|
|
|
$
|
168.7
|
|
Net income from
discontinued operations
|
—
|
|
|
(91.6)
|
|
Adjustments to reconcile
net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
140.7
|
|
|
138.6
|
|
Provision for credit
losses
|
41.6
|
|
|
28.9
|
|
Deferred income
taxes
|
(3.0)
|
|
|
2.5
|
|
Amortization of debt
issuance costs
|
8.6
|
|
|
9.6
|
|
Stock-based
compensation
|
11.1
|
|
|
14.6
|
|
Goodwill and other
intangibles impairment
|
29.8
|
|
|
—
|
|
Loss on extinguishment of
debt
|
—
|
|
|
2.2
|
|
Other non-cash,
net
|
6.1
|
|
|
7.9
|
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
Trade receivables and other
assets
|
(49.4)
|
|
|
(41.3)
|
|
Accounts payable and accrued
expenses
|
228.8
|
|
|
51.0
|
|
Net cash provided
by operating activities - continuing operations
|
431.9
|
|
|
291.1
|
|
Net cash provided
by operating activities - discontinued operations
|
—
|
|
|
156.7
|
|
Investing
activities
|
|
|
|
Net decrease (increase) in
finance receivables held for investment
|
337.1
|
|
|
(119.0)
|
|
Acquisition of businesses
(net of cash acquired)
|
—
|
|
|
(120.7)
|
|
Purchases of property,
equipment and computer software
|
(74.3)
|
|
|
(127.6)
|
|
Proceeds from the sale of
property and equipment
|
0.8
|
|
|
—
|
|
Net cash provided
by (used by) investing activities - continuing
operations
|
263.6
|
|
|
(367.3)
|
|
Net cash used by
investing activities - discontinued operations
|
—
|
|
|
(37.4)
|
|
Financing
activities
|
|
|
|
Net increase in book
overdrafts
|
20.3
|
|
|
9.2
|
|
Net (decrease) increase in
borrowings from lines of credit
|
(2.4)
|
|
|
17.5
|
|
Net decrease in obligations
collateralized by finance receivables
|
(345.1)
|
|
|
(25.0)
|
|
Proceeds from issuance of
Series A Preferred Stock
|
550.1
|
|
|
—
|
|
Payments for issuance costs
of Series A Preferred Stock
|
(21.9)
|
|
|
—
|
|
Proceeds from long-term
debt
|
—
|
|
|
947.6
|
|
Payments for debt issuance
costs/amendments
|
(18.2)
|
|
|
(13.7)
|
|
Payments on long-term
debt
|
(7.1)
|
|
|
(1,746.6)
|
|
Payments on finance
leases
|
(12.6)
|
|
|
(12.2)
|
|
Payments of contingent
consideration and deferred acquisition costs
|
(22.3)
|
|
|
(0.5)
|
|
Issuance of common stock
under stock plans
|
1.0
|
|
|
4.1
|
|
Tax withholding payments for
vested RSUs
|
(3.9)
|
|
|
(10.5)
|
|
Repurchase and retirement of
common stock
|
—
|
|
|
(119.7)
|
|
Dividends paid to
stockholders
|
(49.0)
|
|
|
(139.8)
|
|
Cash transferred to
IAA
|
—
|
|
|
(50.9)
|
|
Net cash provided
by (used by) financing activities - continuing
operations
|
88.9
|
|
|
(1,140.5)
|
|
Net cash provided
by financing activities - discontinued operations
|
—
|
|
|
1,317.6
|
|
Effect of exchange
rate changes on cash
|
(13.9)
|
|
|
7.0
|
|
Net increase in
cash, cash equivalents and restricted cash
|
770.5
|
|
|
227.2
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
560.9
|
|
|
304.7
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
1,331.4
|
|
|
$
|
531.9
|
|
Cash paid for
interest, net of proceeds from interest rate derivatives
|
$
|
77.7
|
|
|
$
|
120.0
|
|
Cash paid for taxes,
net of refunds - continuing operations
|
$
|
9.7
|
|
|
$
|
27.8
|
|
Cash paid for taxes,
net of refunds - discontinued operations
|
$
|
—
|
|
|
$
|
40.1
|
|
KAR Auction Services, Inc.
Reconciliation of
Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, operating adjusted net income from
continuing operations and operating adjusted net income from
continuing operations per share as presented herein are
supplemental measures of our performance that are not required by,
or presented in accordance with, generally accepted accounting
principles in the United States
("GAAP"). They are not measurements of our financial performance
under GAAP and should not be considered as substitutes for net
income (loss) or any other performance measures derived in
accordance with GAAP. Management believes that these measures
provide investors additional meaningful methods to evaluate certain
aspects of the company's results period over period and for the
other reasons set forth below.
EBITDA is defined as net income (loss), plus interest expense
net of interest income, income tax provision (benefit),
depreciation and amortization. Adjusted EBITDA is EBITDA adjusted
for the items of income and expense and expected incremental
revenue and cost savings as described in our senior secured credit
agreement covenant calculations. Management believes that the
inclusion of supplementary adjustments to EBITDA applied in
presenting Adjusted EBITDA is appropriate to provide additional
information to investors about one of the principal measures of
performance used by our creditors. In addition, management uses
EBITDA and Adjusted EBITDA to evaluate our performance.
Depreciation expense for property and equipment and amortization
expense of capitalized internally developed software costs relate
to ongoing capital expenditures; however, amortization expense
associated with acquired intangible assets, such as customer
relationships, software, tradenames and noncompete agreements are
not representative of ongoing capital expenditures, but have a
continuing effect on our reported results. Non-GAAP financial
measures of operating adjusted net income from continuing
operations and operating adjusted net income from continuing
operations per share, in the opinion of the company, provide
comparability of the company's performance to other companies that
may not have incurred these types of non-cash expenses or that
report a similar measure. In addition, operating adjusted net
income from continuing operations and operating adjusted net income
from continuing operations per share may include adjustments for
certain other charges.
EBITDA, Adjusted EBITDA, operating adjusted net income from
continuing operations and operating adjusted net income from
continuing operations per share have limitations as analytical
tools, and should not be considered in isolation or as a substitute
for analysis of the results as reported under GAAP. These measures
may not be comparable to similarly titled measures reported by
other companies.
The following table reconciles EBITDA and Adjusted EBITDA to net
income for the periods presented:
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
(in
millions), (unaudited)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net
income
|
$
|
47.1
|
|
|
$
|
35.3
|
|
|
$
|
17.6
|
|
|
$
|
168.7
|
|
Less: Income from
discontinued operations
|
—
|
|
|
(0.9)
|
|
|
—
|
|
|
(91.6)
|
|
Net income from
continuing operations
|
47.1
|
|
|
34.4
|
|
|
17.6
|
|
|
77.1
|
|
Add back:
|
|
|
|
|
|
|
|
Income
taxes
|
10.9
|
|
|
13.2
|
|
|
8.3
|
|
|
28.4
|
|
Interest expense, net
of interest income
|
29.2
|
|
|
37.2
|
|
|
97.0
|
|
|
148.1
|
|
Depreciation and
amortization
|
46.5
|
|
|
46.4
|
|
|
140.7
|
|
|
138.6
|
|
EBITDA
|
133.7
|
|
|
131.2
|
|
|
263.6
|
|
|
392.2
|
|
Non-cash stock-based
compensation
|
3.9
|
|
|
4.5
|
|
|
12.1
|
|
|
15.1
|
|
Loss on
extinguishment of debt
|
—
|
|
|
2.2
|
|
|
—
|
|
|
2.2
|
|
Acquisition related
costs
|
2.4
|
|
|
2.7
|
|
|
4.7
|
|
|
10.3
|
|
Securitization
interest
|
(3.7)
|
|
|
(13.3)
|
|
|
(21.1)
|
|
|
(41.9)
|
|
Loss on asset
sales
|
0.1
|
|
|
0.8
|
|
|
1.1
|
|
|
1.7
|
|
Severance
|
2.3
|
|
|
0.9
|
|
|
10.6
|
|
|
5.7
|
|
Foreign currency
(gains)/losses
|
0.1
|
|
|
(0.4)
|
|
|
3.2
|
|
|
(1.0)
|
|
Goodwill and other
intangibles impairment
|
—
|
|
|
—
|
|
|
29.8
|
|
|
—
|
|
IAA allocated
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
Other
|
0.4
|
|
|
0.6
|
|
|
3.8
|
|
|
1.4
|
|
Total
addbacks
|
5.5
|
|
|
(2.0)
|
|
|
44.2
|
|
|
(4.2)
|
|
Adjusted
EBITDA
|
$
|
139.2
|
|
|
$
|
129.2
|
|
|
$
|
307.8
|
|
|
$
|
388.0
|
|
The following table reconciles operating adjusted net income
from continuing operations and operating adjusted net income from
continuing operations per diluted share to net income and net
income from continuing operations per diluted share for the periods
presented:
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
(in millions,
except per share amounts), (unaudited)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
Net income
|
$
|
47.1
|
|
|
$
|
35.3
|
|
|
$
|
17.6
|
|
|
$
|
168.7
|
|
Less: income from
discontinued operations
|
—
|
|
|
(0.9)
|
|
|
—
|
|
|
(91.6)
|
|
Net income from
continuing operations (1)
|
47.1
|
|
|
34.4
|
|
|
17.6
|
|
|
77.1
|
|
Acquired
amortization expense
|
14.0
|
|
|
14.5
|
|
|
42.4
|
|
|
43.9
|
|
IAA allocated
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
Acceleration of debt issuance costs
|
—
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
Loss on
extinguishment of debt
|
—
|
|
|
2.2
|
|
|
—
|
|
|
2.2
|
|
Goodwill
and other intangibles impairment
|
—
|
|
|
—
|
|
|
29.8
|
|
|
—
|
|
Income
taxes (2)
|
(2.6)
|
|
|
(4.6)
|
|
|
(13.6)
|
|
|
(13.5)
|
|
Operating adjusted
net income from continuing operations
|
$
|
58.5
|
|
|
$
|
46.5
|
|
|
$
|
76.2
|
|
|
$
|
113.8
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations per share - diluted
|
$
|
0.36
|
|
|
$
|
0.26
|
|
|
$
|
0.14
|
|
|
$
|
0.58
|
|
Acquired
amortization expense
|
0.11
|
|
|
0.11
|
|
|
0.33
|
|
|
0.33
|
|
IAA allocated
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
Acceleration of debt issuance costs
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Loss on
extinguishment of debt
|
—
|
|
|
0.02
|
|
|
—
|
|
|
0.02
|
|
Goodwill
and other intangibles impairment
|
—
|
|
|
—
|
|
|
0.23
|
|
|
—
|
|
Income
taxes
|
(0.02)
|
|
|
(0.04)
|
|
|
(0.11)
|
|
|
(0.11)
|
|
Operating adjusted
net income from continuing operations per share -
diluted
|
$
|
0.45
|
|
|
$
|
0.35
|
|
|
$
|
0.59
|
|
|
$
|
0.85
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares (1)
|
130.0
|
|
|
132.4
|
|
|
130.0
|
|
|
133.8
|
|
|
|
(1)
|
The Series A
Preferred Stock dividends have not been included in the calculation
of operating adjusted net income from continuing operations and
operating adjusted net income from continuing operations per
diluted share. Likewise, the weighted average diluted share counts
do not include the effect of assumed conversion of the Series A
Preferred Stock.
|
|
|
(2)
|
The effective tax
rate at the end of each period presented was used to determine the
amount of income tax on the adjustments to net income. There was no
income tax benefit related to the goodwill and other intangibles
impairment because these items were not deductible for income tax
purposes.
|
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SOURCE KAR Auction Services, Inc.